Document:

Exhibit 10.18

 

BUSINESS DEVELOPMENT AND CONSULTATION AGREEMENT

 

THIS BUSINESS DEVELOPMENT
AND CONSULTATION AGREEMENT (the “Agreement”) is made and entered into as
of this 25th day of November, 2003, by and between 1st
Century Bank, National Association (In Organization) (the “Bank”), on
one hand, and Alan I. Rothenberg (the “Consultant”), on the other hand.

 

WHEREAS, the parties hereto
wish to enter into a business development and consultation agreement to obtain
certain services from Consultant in addition to his expected role as a director
and Chairman of the Board of Directors of the Bank, and to set forth certain
additional agreements between the Consultant and the Bank, provided that this
Agreements shall be subject to ratification by the full Board of Directors
prior to the opening of the Bank for business.

 

NOW, THEREFORE, in
consideration of the mutual covenants and representations contained herein, the
parties hereto agree as follows:

 

1.     Term.  The Bank will utilize the Consultant’s
services, and the Consultant will serve the Bank under the terms of this
Agreement, for a period of one (1) year (the “Initial Term”),
commencing on the date the Bank opens for business (the “Effective Date”).  However, if the Bank does not open for
business on or before December 31, 2004, this Agreement shall
automatically terminate and be of no further effect. The Initial Term of this
Agreement and the terms of this Agreement may be extended annually for an
additional one (1) year period  (each an “Extended
Term”)  at the discretion of the Board of
Directors by written notice to the Consultant no later than the expiration of
the Initial Term or the effective Extended Term.  Notwithstanding the foregoing, this Agreement
may be terminated earlier by the Consultant at any time, and in the discretion
of the Board, upon one month’s written notice.

 

2.     Consulting Services to
Be Provided. The Bank hereby retains Consultant to perform business
development and related consulting services above and beyond those services
typically expected and provided by a member of the Board of Directors or by the
Chairman of the Board and which shall include, but not be limited to:

 

(a)          Provide leadership and
direction on business development, marketing and public relations activities
related to key industries and sectors in the bank’s market territory.  These sectors will include entertainment,
legal, sports management and professional services.

 

(b)         Oversee and provide guidance
to management on civic, community and philanthropic activities.

 

(c)          Actively participate in
direct calling, customer solicitation, and relationship management to achieve
the Bank’s marketing and business development plan.

 

(d)         Service as spokesperson for
the Bank in key areas of business presentation, civic affairs and public
relations.

 

 

3.     Remuneration.

 

(a)   Fee. During the
Initial Term, the Bank shall pay to Consultant for the performance of the
services described under this Agreement a fee of Seventy Five Thousand Dollars
($75,000), payable in equal monthly installments. If this Agreement is extended
as provided herein, the Board and Consultant shall mutually agree upon, at the
time this Agreement is extended, an appropriate fee for services to be rendered
during the Extended Term.

 

(b)   Business
Expenses. During the effectiveness of the Initial Term of this Agreement or
any Extended Term, the Bank shall advance or reimburse Consultant for all documented reasonable business
expenses incurred by the Consultant in the performance of the services
described under this Agreement, in accordance with policies adopted from time
to time by or under the delegation of the Board of Directors.

 

4.             Confidentiality.
The Consultant agrees that he will not at any time during the term of this
Agreement, or at any time thereafter for any reason, in any fashion, form or
manner, either directly or indirectly, divulge, disclose or communicate to any
person, firm, corporation or other business entity, in any manner whatsoever,
any confidential information or trade secrets concerning the business of the
Bank, including, without limiting the generality of the foregoing, the
techniques, methods or systems of its operation or management, any information
regarding its financial matters, or any other material information concerning the business of the Bank
(including customer lists), any of its customers, governmental relations,
customer contacts, underwriting methodology, loan program configuration and
qualification strategies, marketing strategies and proposals, its manner of
operation, its plans or other material data, or any other information
concerning the business of the Bank, its subsidiaries or affiliates, and the
Bank’s good will (the “Business”). 
The provisions of this Section 4 shall not apply to (i) information
disclosed in the performance of the Consultant’s services to the Bank based on
his good faith belief that such a disclosure is in the best interests of Bank; (ii) information
that is, at the time of the disclosure, public knowledge; (iii) information
disseminated by the Bank to third parties in the ordinary course of business; (iv) information
lawfully received by the Consultant from a third party who, based upon inquiry
by the Consultant, is not bound by a confidential relationship to the Bank or
otherwise improperly received the information; or (v) information
disclosed under a requirement of law or as directed by applicable legal
authority having jurisdiction over the Consultant.

 

5.             Arbitration.  Any dispute or controversy arising under or
in connection with this Agreement, the inception or termination of the
Consultant’s services, including issues raised regarding the Agreement’s
formation, interpretation or breach, shall be settled exclusively by binding
arbitration in accordance with the Commercial Rules of the American
Arbitration Association (“AAA”). The arbitration will be
conducted in Los Angeles County. The arbitrator shall have no authority to add
to or to modify this Agreement, shall apply all applicable law, and shall have
no lesser and no greater remedial authority than would a court of law resolving
the same claim or controversy.  The
arbitrator shall issue a written decision that includes the essential findings
and conclusions upon which the decision is based, which shall be signed and dated.
Consultant and the Bank shall each bear their own respective costs and
attorneys’ fees 

 

 

incurred in conducting the arbitration and
shall split equally the fees and administrative costs charged by the arbitrator
and AAA. Judgment may be entered on the
arbitrator’s award in any court having jurisdiction.

 

6.             Waiver
of Breach.  Any waiver of any breach
of this Agreement shall not be construed to be a continuing waiver or consent
to any subsequent breach on the part either of the Consultant or of the
Bank.  No delay or omission in the exercise
of any power, remedy, or right herein provided or otherwise available to any
party shall impair or affect the right of such party thereafter to exercise the
same.  Any extension of time or other
indulgence granted to a party hereunder shall not otherwise alter or affect any
power, remedy or right of any other party, or the obligations of the party to
whom such extension or indulgence is granted except as specifically waived.

 

7.             Non-Assignment;
Successors. Neither party hereto may assign his or its rights or delegate
his or its duties under this Agreement without the prior written consent of the
other party; provided, however, that: (i) this Agreement shall inure to
the benefit of and be binding upon the successors and assigns of the Bank upon
any sale of all or substantially all of the Bank’s assets, or upon any merger,
consolidation or reorganization of the Bank with or into any other corporation,
all as though such successors and assigns of the Bank and their respective
successors and assigns were the Bank; and (ii) this Agreement shall inure
to the benefit of and be binding upon the heirs, assigns or designees of the
Consultant to the extent of any payments due to him hereunder.  As used in this Agreement, the term “Bank”
shall be deemed to refer to any such successor or assign of the Bank referred
to in the preceding sentence.

 

8.             Severability.  To the extent any provision of this Agreement
or portion thereof shall be invalid or unenforceable, it shall be considered
deleted therefrom (but only for so long as such provision or portion thereof
shall be invalid or unenforceable) and the remainder of such provision and of
this Agreement shall be unaffected and shall continue in full force and effect
to the fullest extent permitted by law if enforcement would not frustrate the
overall intent of the parties (as such intent is manifested by all provisions
of the Agreement including such invalid, void, or otherwise unenforceable
portion).

 

9.             Authority.  Each of the parties hereto hereby represents
that each has taken all actions necessary in order to execute and deliver this
Agreement, provided that this Agreement is subject to ratification by the Board
of Directors of the Bank prior to the opening of the Bank for business.

 

10.           Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

 

11.           Governing
Law.  This Agreement shall be
construed, interpreted and enforced in accordance with the laws of the State of
California, without giving effect to the choice of law principles thereof.

 

12.           Entire
Agreement.  This Agreement and
written agreements, if any, entered into concurrently herewith constitute the
entire agreement by the Bank and the Consultant with 

 

 

respect to the subject
matter hereof and merges and supersedes any and all prior discussions,
negotiations, agreements or understandings between the Consultant and the Bank
with respect to the subject matter hereof, whether written or oral.  This Agreement may be amended or modified
only by a written instrument executed by the Consultant and the Bank. With
regard to such amendments, alterations, or modifications, facsimile signatures
shall be effective as original signatures. 
Any amendment, alteration, or modification requiring the signature of
more than one party may be signed in counterparts.

 

13.           Further
Actions.  Each party agrees to
perform any further acts and execute and deliver any further documents
reasonably necessary to carry out the provisions of this Agreement.

 

14.           No
Third Party Beneficiaries.  This
Agreement and each and every provision hereof is for the exclusive benefit of
the parties and not for the benefit of any third party.

 

15.           Headings.  The headings in this Agreement are inserted
only as a matter of convenience, and in no way define, limit, or extend or
interpret the scope of this Agreement or of any particular provision hereof.

 

 

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

 

 

	
   

  	
  1st
  CENTURY BANK, N.A. (In Organization)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Richard S. Cupp

  	
   

  
	
   

  	
  Richard
  S. Cupp

  
	
   

  	
  Representing
  the Organizing

  
	
   

  	
  Board of
  Directors

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CONSULTANT:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Alan I. Rothenberg

  
	
   

  	
  Alan I.
  Rothenberg

  

 

 

CERTIFICATION OF RATIFICATION

 

I HEREBY CERTIFY THAT this
Agreement was approved and ratified by the Board of Directors of 1st Century
Bank, National Association by action taken on February 24, 2004.

 

 

	
   

  	
  /s/ Jeffrey M. Watson

  
	
   

  	
   

  
	
   

  	
  Jeffrey M. Watson

  
	
   

  	
  Assistant Secretary of
  the BoardExhibit 10.19

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(the “Agreement”) is made and entered into as of this 1st day of June,
2007 (the “Effective Date”), by and between 1st Century Bank, National
Association, Los Angeles, California (the “Bank”), on one hand, and Dan
Kawamoto (the “Executive”), on the other hand.

 

WHEREAS, the parties hereto
wish to enter into an employment agreement to employ Executive as Executive
Vice President and Chief Financial Officer of the Bank and to set forth certain
additional agreements between Executive and the Bank.

 

NOW, THEREFORE, in
consideration of the mutual covenants and representations contained herein, the
parties hereto agree as follows:

 

1.             Term.  The Bank will
employ Executive, and Executive will serve the Bank, under the terms of this
Agreement for an initial term of three (3) years (the “Initial Term”),
commencing  on the Effective Date. 
The Initial Term of this Agreement shall automatically be extended for
an additional one (1) year period  unless, not
later than sixty (60) days prior to the expiration of the Initial Term, either
party hereto shall have given notice to the other that the Initial Term shall
not be so extended. Notwithstanding the foregoing, Executive’s employment
hereunder may be earlier terminated, as provided in Section 4 hereof. The
term of this Agreement, as in effect from time to time in accordance with the
foregoing, shall be referred to herein as the “Term”. The period of time
between the Effective Date and the termination of Executive’s employment
hereunder shall be referred to herein as the “Employment Period.”

 

2.             Position; Authority and Duties.

 

(a)           Positions and Reporting.  Executive
shall serve as Executive Vice President and Chief Financial Officer of the
Bank.  During the Employment Period,
Executive shall report directly to the President or the Chief Executive Officer
of the Bank, as directed by the Board of Directors of the Bank (the “Board”).

 

(b)           Authority and Duties.  Executive
shall exercise such authority, perform such executive duties and functions and
discharge such responsibilities as are reasonably associated with Executive’s
position as Executive Vice President and Chief Financial Officer consistent
with this Agreement and the bylaws of the Bank. 
Executive’s job duties will primarily involve overseeing and managing
the Bank’s finance department, financial policies and procedures and
communicating with the bank regulators and auditors.

 

3.             Compensation and Benefits.

 

(a)           Salary.  During the
Employment Period, the Bank shall pay to Executive, as compensation for the
performance of his duties and obligations under this Agreement, a base salary
at the rate of $15,500 per month, payable in arrears semi-monthly in accordance
with the normal payroll practices of the Bank (the “Base Salary”). Such
Base Salary shall be subject to review within sixty (60) days after each
calendar year during the Employment Period, for 

 

 

possible increases by the
Board based on factors including, but not limited to, market conditions and
performance of Executive and the Bank, in its sole discretion, but shall in no
event be decreased from the levels set forth above or from its then-existing
level during the Employment Period.

 

(b)           Bonus.

 

(i)            Guaranteed Bonus. 
On or before March 31, 2008, Executive shall receive a cash bonus
of no less than 30% of the Base Salary, as a guaranteed bonus, whether or not
he is employed by the Bank on such date (the “Guaranteed Bonus”), unless
Executive’s employment shall have been terminated prior to such date for Cause
or unless Executive shall have resigned from the Bank prior to such date
without Good Reason.

 

(ii)           Annual Bonus. 
After payment of the Guaranteed Bonus, Executive shall be entitled to
receive annual bonus amounts in the form of cash and/or restricted stock awards
based upon the satisfaction of performance criteria (the “Performance Goals”)
that will be established at the beginning of each calendar year by and at the
discretion of the individual to whom Executive reports (pursuant to Section 2(a) hereof),
in consultation with Executive and subject to the approval of the Board.  The relative amounts of cash and restricted
stock awards with which any annual bonus is payable shall be determined by the
Board. It is anticipated that increased levels of achievement of the agreed
upon Performance Goals will correlate to increased levels of annual bonus.
Performance Goals will include goals consistent with the Bank’s business plan
for the year, as established by the Bank’s management and subject to the review
and approval of the Board. The final determinations as to the actual corporate
and individual performance against the Performance Goals shall be made by the
Board in its sole good faith discretion. The Guaranteed Bonus and any bonus
payable thereafter shall be paid or granted, as appropriate, in one lump sum to
Executive at such time as other executive bonuses are paid.  The Board retains the discretion, but shall
have no obligation, to determine whether a pro-rata bonus is appropriate if
Executive is terminated or leaves the employ of the Bank prior to the annual
determination of bonuses.

 

(c)           Other Benefits.  During the
Employment Period, Executive shall receive such life insurance, disability
insurance and health, dental and vision and other insurance benefits, holiday,
paid time off (“PTO”) benefits, 401(k) plan participation, and
other benefits which the Bank extends, as a matter of policy, to all of its
executive employees, except as otherwise provided herein, and shall be entitled
to participate in all deferred compensation and other incentive plans of the
Bank, on the same basis as other like employees of the Bank.  Without limiting the generality of the
foregoing, Executive shall be entitled to thirteen (13) days of PTO through
calendar year 2007 and twenty-three (23) days of PTO per year during the
Employment Period thereafter, which shall be scheduled in Executive’s
discretion, subject to and taking into account applicable banking laws and
regulations and business needs.  Unused
PTO may be accrued up to a maximum of six (6) weeks of unused PTO, at
which time Executive shall cease to accrue unused PTO until used.

 

(d)           Business Expenses.  During the
Employment Period, the Bank shall promptly reimburse Executive for all
documented reasonable business expenses, including travel-related expenses,
incurred by Executive in the performance of his duties under this 

 

 

Agreement, in accordance
with the Bank’s employee manual or policies adopted by the Board from time to
time.  If any of the Business Expenses
are taxable as personal income to Executive, the Bank shall reimburse Executive
the costs grossed up for taxes at the effective personal tax rate of Executive.

 

(e)           Restricted Stock Award.

 

(i)            The Bank agrees to grant to Executive a
total of 50,000 shares of restricted stock (the “Restricted Stock”),
pursuant to a Notice of Grant and Restricted Stock Agreement (the “Award
Agreement”), under and subject to the terms and conditions of the 1st
Century Bank, N.A. Amended 2005 Equity Incentive Plan (“the Plan”).  Of the 50,000 shares of Restricted Stock,
10,000 shares will vest on the first anniversary of the date of the Employment
Agreement, 12,500 shares will vest on the second anniversary of the date of the
Employment Agreement, 12,500 shares will vest on the third anniversary of the
date of the Employment Agreement, and 15,000 shares will vest on the fourth
anniversary of the date of the Employment Agreement.  The vesting of the shares referred to herein
is subject to Executive’s continued employment with the Bank on the relevant
vesting dates, unless Executive is terminated without Cause (as defined in Section 4(a) of
this Agreement) or Executive terminates his employment for Good Reason (as
defined in Section 4(b) of this Agreement) pursuant to Section 5(a) hereof.

 

(ii)           In the event of any termination of
employment for any reason, Executive hereby grants to Bank the right and
option, for a period of thirty (30) days after the effective date of such
termination, to purchase any shares of Restricted Stock owned by him on the
effective date of such termination that have been released from or are not
otherwise subject to any restriction on resales under the Plan at a price equal
to 100% of the volume weighted average closing price of the Bank’s common stock
for the twenty (20) trading days immediately prior to the effective date of
termination of employment as reported on any quotation service or exchange on
which the Bank’s common stock is then quoted or traded.  This provision is limited to shares of
Restricted Stock granted to Executive under this Agreement and subsequent
grants of restricted stock, and it does not include shares acquired by
Executive using personal funds, upon the exercise of stock options under the
Plan, or otherwise.

 

4.             Termination of Employment.

 

(a)           Termination for Cause.  The Board may
terminate Executive’s employment hereunder for Cause or without Cause.  For purposes of this Agreement termination
for “Cause” shall mean termination because (i) Executive: (A) committed
a significant act of dishonesty, deceit or breach of fiduciary duty in the
performance of his duties as an employee of the Bank; (B) grossly
neglected or willfully failed in any way to perform substantially the duties of
such employment after a written demand for performance is given to Executive by
the Board, which demand specifically identifies the manner in which such Board
believes Executive has failed to perform his duties; (C) has committed a
material breach of any provision of this Agreement; (D) willfully acted or
failed to act in any other way that materially and adversely affects the Bank; (E) is
removed and/or permanently prohibited from participating in the conduct of the
Bank’s affairs by an order issued under Section 8(e)(3) or 8(g)(1) of
the Federal Deposit Insurance Act (12 U.S.C. Section 1818(e)(3) or
(g)(1)); or (ii) the Bank has received a final cease-and-desist order that
requires in substance that the Bank retain a qualified chief financial 

 

 

officer acceptable to
bank regulators with the experience, skill and other qualifications required to
ensure compliance with such order and the bank regulators have determined that
Executive does not meet these qualifications.

 

Termination under this Paragraph shall not prejudice
any remedy that the Bank may have at law, in equity, or under this Agreement.

 

(b)           Termination for Good Reason. 
Executive shall have the right at any time to terminate his employment
with the Bank for any reason.  For
purposes of this Agreement, and subject to the Bank’s opportunity to cure as provided
in Section 4(c) hereof, Executive shall have “Good Reason” to
terminate his employment hereunder if such termination shall be the result of:

 

(i)            a material diminution during the
Employment Period in Executive’s title, duties or responsibilities as set forth
in Section 2 hereof, unless such events follow any of the circumstances
described in Section 4(a) regarding termination for Cause;

 

(ii)           a material breach by the Bank of the
compensation and benefits provisions set forth in Section 3 hereof;

 

(iii)          a material breach by the Bank of any
material terms of this Agreement; or

 

(iv)          the relocation of Executive’s principal
place of employment to any location more than 50 miles from the Bank’s
headquarters at the Effective Date.

 

(c)           Notice and Opportunity to Cure. 
Notwithstanding the foregoing, it shall be a condition precedent to the
Bank’s right to terminate Executive’s employment for Cause, and Executive’s
right to terminate his employment for Good Reason that (1) the party
seeking the termination shall first have given the other party written notice
stating with specificity the reason for the termination (“breach”) and (2) if
such breach is susceptible of cure or remedy, a period of thirty (30) days from
and after the giving of such notice to cure the breach.  With respect to terminations because of a
willful violation of any law, rule or regulation or issuance of a final
cease-and-desist order, or because of Executive’s personal dishonesty or breach
of fiduciary duty involving personal profit, the Bank will not be required to
provide a cure period.

 

(d)           Termination Upon Death or Permanent Disability. 
The Employment Period shall automatically be terminated by the death of
Executive. The Employment Period may be terminated by the Bank if Executive
shall be subject to a “permanent disability” as such term is defined in the
disability insurance provided by the Bank, or if such insurance is not provided
by the Bank, the term shall mean that Executive has been unable to perform his
duties under this Agreement for a period of at least ninety (90) consecutive
days or one-hundred twenty (120) days in any one-hundred eighty (180) day
period, and it is not reasonable to believe that he would ever be able to
resume his duties on a full time basis.

 

Termination Upon a Change in Control.  In the event this Agreement or
Executive’s employment is terminated without Cause by the Bank or for Good
Reason by Executive within twelve (12) months after the occurrence of a Change
in Control, (as defined below), Executive shall be entitled to the separation
pay as described in Paragraph 5(a)(ii) below.

 

 

(f)            Definition of Change in
Control.  A “Change in Control”
shall be deemed to have taken place if:

 

(i)            there shall be consummated
any consolidation or merger of the Bank in which the Bank is not the continuing
or surviving corporation or pursuant to which shares of the Bank’s capital
stock are converted into cash, securities or other property (other than a
consolidation or merger of the Bank in which the holders of the Bank’s voting
stock immediately prior to the consolidation or merger shall, upon consummation
of the consolidation or merger, own at least 50% of the voting stock) or any
sale, lease, exchange or other transfer (in one transaction or a series of
transactions contemplated or arranged by any party as a single plan) of all or
substantially all of the assets of the Bank; or

 

(ii)           any person (as such term is
used in Sections 13(d) and 14(d)(2) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)) shall, after the date
hereof, become the beneficial owner (as defined in Rules 13d-3 and 13d-5
under the Exchange Act), directly or indirectly, of securities of the Bank
representing 40% or more of the voting power of all of the then outstanding
securities of the Bank having the right under ordinary circumstances to vote in
an election of the Board (including, without limitation, any securities of the
Bank that any such person has the right to acquire pursuant to any agreement,
or upon exercise of conversion rights, warrants or options, or otherwise, shall
be deemed beneficially owned by such person); or

 

(iii)          individuals who as of the
Effective Date constitute the entire Board and any new directors whose election
by the Bank’s shareholders, or whose nomination for election by the Board,
shall have been approved by a vote of at least a majority of the directors then
in office who either were directors at the date hereof or whose election or
nomination for election shall have been so approved shall cease for any reason
to constitute a majority of the members of the Board.

 

Notwithstanding the foregoing, a Change in Control shall not
be deemed to have occurred in the event the Bank forms a holding company as a
result of which the holders of the Bank’s outstanding voting securities
immediately prior to the transaction hold, in approximately the same relative
proportions as they held prior to the transaction, substantially all of the
outstanding voting securities of a holding company owning all of the Bank’s
outstanding voting securities after the completion of the transaction.

 

5.             Consequences of Termination. 
The following are the separation pay and benefits to which Executive is
entitled upon termination of employment in all positions with the Bank, and
such payments and benefits shall be the exclusive payments and benefits to
which Executive is entitled upon such termination.  Except in the case of termination of
employment by the Bank with Cause, or due to death, the post-termination
payments and benefits shall only be provided if Executive first enters into a
form of release agreement reasonably satisfactory to the Bank releasing the
Bank from any and all claims, known and unknown, related to Executive’s
employment with the Bank or any other claims Executive
may have against the Bank.

 

(a)           Termination Without Cause or for Good Reason. In the event the Bank terminates
Executive’s employment hereunder without Cause (other than upon death or 

 

 

permanent disability) or
Executive terminates his employment for Good Reason, Executive shall become
immediately vested in any of the remaining 50,000 shares of restricted stock
granted to him under the Award Agreement, plus any future grants or restricted
shares or options.  In addition,

 

(i)            Executive will be entitled to separation
pay in a lump sum amount equal to:

 

(A)          Within twelve (12) months from the date of this  Agreement, 50% of the highest amount of
Executive’s annual Base Salary and the highest Annual Bonus paid to Executive
within the three year period preceding the termination;

 

(B)           Within the period between twelve (12) to twenty-four
(24) months from date of this Agreement, 75% of the highest amount of Executive’s
annual Base Salary and the highest Annual Bonus paid to Executive within the
three year period preceding the termination;

 

(C)           After twenty-four (24) months from date of this
Agreement, 100% of the highest amount of Executive’s annual Base Salary and the
highest Annual Bonus paid to Executive within the three year period preceding
the termination.

 

(ii)           In the event of a termination by the Bank
without Cause or Executive for Good Reason within twelve (12) months
following a Change in Control, Executive shall be entitled to the following
separation pay and benefits:

 

(A)          Within twelve
(12) months from the date of this 
Agreement, a lump sum amount equal to 100% of the highest amount of
Executive’s annual Base Salary and the highest Annual Bonus paid to Executive
within the three year period preceding the termination;

 

(B)           The period
between twelve (12) to twenty-four (24) months from date of this  Agreement, a lump sum amount equal to 150% of
the highest amount of Executive’s annual Base Salary and the highest Annual
Bonus paid to Executive within the three year period preceding the termination;

 

(C)           After thirty-six
(36) months from date of this  Agreement,
a lump sum amount equal to 200% of the highest amount of Executive’s annual
Base Salary and the highest Annual Bonus paid to Executive within the three
year period preceding the termination.

 

(iii)          Benefits Continuation – continuation for
six (6) months (the “Separation Period”) of coverage under the group
medical care, disability and life insurance benefit plans or arrangements in
which Executive is participating at the time of termination, with the Bank continuing
to pay its share of premiums and associated costs as if Executive continued in
the employ of the Bank; provided, however, that the Bank’s obligation to
provide such coverage shall be terminated if Executive obtains comparable
substitute coverage from another employer at any time during the Separation
Period.  Executive agrees to advise the
Bank immediately if such comparable substitute coverage is obtained from
another employer.

 

 

Executive shall be
entitled, at the expiration of the Separation Period, to elect continued
coverage under the Bank’s medical benefit plans pursuant to the terms of COBRA.

 

(b)           Termination Upon Disability. 
In the event of termination of Executive’s employment hereunder by the
Bank on account of permanent disability, Executive shall be entitled to the
following separation pay and benefits.

 

(i)            Separation pay – Separation payments in
the form of continuation of Executive’s Base Salary as in effect immediately
prior to such termination for a period of six (6) months paid in equal
installments on the Bank’s regularly schedule payroll dates following the first
date of disability; and

 

(ii)           Benefits Continuation – the same benefits
as provided in Section 5(a)(iii) above, to be provided during the
Employment Period while Executive is suffering from a permanent disability and
for a period of six (6) months following the effective date of termination
of employment by reason of permanent disability.

 

(c)           Termination Upon Death.  In the event
of termination of Executive’s employment hereunder on account of Executive’s
death, the Bank shall pay to Executive’s beneficiary or beneficiaries or his
estate, as the case may be, the accrued Base Salary and accrued and unused PTO
earned through the date of death.  Such
payment shall be made no later than sixty (60) days after the date of death. In
addition, Executive’s beneficiary(ies) or his estate shall be entitled to the
payment of benefits pursuant to any life insurance policy of Executive, as
provided for in Section 3(c) above. 
Executive’s beneficiary or estate shall not be required to remit to the
Bank any payments received pursuant to any life insurance policy purchased
pursuant to Section 3(c) above.

 

(d)           Accrued Rights. 
Notwithstanding the foregoing provisions of this Section 5, in the
event of termination of Executive’s employment hereunder for any reason,
Executive shall be entitled to (i) payment of any unpaid portion of his
Base Salary through the effective date of termination,  (ii) payment of any unreimbursed
reasonable business expenses incurred pursuant to Section 3(d) above,
and (iii) payment of any accrued but unpaid benefits solely in accordance
with the terms of any employee benefit plan or program of the Bank (except for
the Guaranteed Bonus, remuneration under any other bonus plan is not
guaranteed).

 

(e)           Termination for Cause.  In the event
the employment of Executive is terminated by the Bank for Cause, the Bank shall
provide Executive only salary and PTO earned and unreimbursed business expenses
incurred through the date of termination. 
No separation payment or benefit shall be provided in such instance.

 

(f)            Nonassignability.  Neither
Executive nor any other person or entity shall have any power or right to
transfer, assign, anticipate, hypothecate, mortgage, commute, modify, or
otherwise encumber in advance any of the rights or benefits of Executive under
this Section 5.  The terms of this Section 5(f) shall
not affect the interpretation of any provision of this Agreement.

 

(g)           Regulatory Restrictions.  The parties understand
and agree that at the time any payment would otherwise be made or benefit
provided under Sections 5 or 18, depending on 

 

 

the facts and
circumstances existing at such time, the satisfaction of such obligations by
the Bank may be deemed by a regulatory authority to be illegal, an unsafe and
unsound practice, or for some other reason not properly due or payable by the
Bank.  Among other things, the
regulations at 12 C.F.R. Part 30, Appendix A and at
12 C.F.R. Part 359 promulgated pursuant to Sections 18(k) and
39(a) of the Federal Deposit Insurance Act, respectively, or similar
regulations or regulatory action following similar principles may apply at such
time. The parties understand, acknowledge and agree that, notwithstanding any
other provision of this Agreement, the Bank shall not be obligated to make any
payment or provide any benefit, and any such obligation of the Bank to do so
under Sections 5 or 18 shall be extinguished if an appropriate regulatory
authority disapproves or does not acquiesce, if required, and the regulatory
authority’s disapproval or non-acquiescence is documented in a writing from the
regulatory authority, a copy of which is actually provided by the regulatory
authority or the Bank to Executive.

 

(h)           Conditions to Separation Benefits. 
The Bank shall have the right to seek repayment of the separation
payments and benefits or to terminate payments or benefits provided by this Section 5
in the event that Executive fails to honor, in accordance with their terms, the
provisions of Sections 6 or 9 hereof.

 

(i)            Suspension and Removal Orders. 
If Executive is suspended and/or temporarily prohibited from
participating in the conduct of the Bank’s affairs by notice served under Section 8(e)(3) or
8(g)(1) of the Federal Deposit Insurance Act (12 U.S.C. Section 1818(e)(3) and
(g)(1)) or successor provisions, the Bank’s obligations under this Agreement
shall be suspended as of the date of service, unless stayed by appropriate
proceedings.  If the charges in the
notice are dismissed, the Bank may in its discretion:  (i) pay Executive all or part of the
compensation withheld while its obligations under this Agreement were
suspended; and (ii) reinstate (in whole or in part) any of its obligations
which were suspended.  If Executive is
removed and/or permanently prohibited from participating in the conduct of the
Bank’s affairs by an order issued under Section 8(e)(3) or 8(g)(1) of
the Federal Deposit Insurance Act (12 U.S.C. Section 1818(e)(3) or
(g)(1)), all obligations of the Bank under this Agreement shall terminate as of
the effective date of the order, but vested rights of the parties shall not be
affected.

 

(j)            Termination by Default.  If the Bank
is in default (as defined in Section 3(x)(1) of the Federal Deposit
Insurance Act (12 U.S.C. Section 1813(x)(1)), all obligations under
this Agreement shall terminate as of the date of default, but vested rights of
the parties shall not be affected.

 

(k)           Supervisory Assistance or Merger. 
All obligations under this Agreement shall be terminated, except to the
extent that it is determined that continuation of the Agreement is necessary
for the continued operation of the Bank: 
(i) by the Comptroller of the Currency (the “Comptroller”)
or his or her designee, at the time that the Federal Deposit Insurance
Corporation enters into an agreement to provide assistance to or on behalf of
the Bank under the authority contained in Section 11 of the Federal
Deposit Insurance Act (12 U.S.C. Section 1821); or (ii) by the
Comptroller or his or her designee, at the time that the Comptroller or his or
her designee approves a supervisory merger to resolve problems related to the
operation of the Bank or when the Bank is in an unsafe or unsound
condition.  All rights of the parties
that have already vested, however, shall not be affected by such action.

 

 

6.             Confidentiality.  Executive
agrees that he will not at any time during the Employment Period or at any time
thereafter for any reason, in any fashion, form or manner, either directly or
indirectly, divulge, disclose or communicate to any person, firm, corporation
or other business entity, in any manner whatsoever, any confidential
information or trade secrets concerning the business of the Bank, including,
without limiting the generality of the foregoing, the techniques, methods or
systems of its operation or management, any information regarding its financial
matters, or any other material information concerning the business of the Bank
(including customer lists), any of its customers, governmental relations,
customer contacts, underwriting methodology, loan program configuration and
qualification strategies, marketing strategies and proposals, its manner of
operation, its plans or other material data, or any other information
concerning the business of the Bank, its subsidiaries or affiliates, and the Bank’s
good will (the “Business”).  The
provisions of this Section 6 shall not apply to (i) information
disclosed in the performance of Executive’s duties to the Bank based on his
good faith belief that such a disclosure is in the best interests of Bank; (ii) information
that is, at the time of the disclosure, public knowledge; (iii) information
disseminated by the Bank to third parties in the ordinary course of business; (iv) information
lawfully received by Executive from a third party who, based upon inquiry by
Executive, is not bound by a confidential relationship to the Bank or otherwise
improperly received the information; or (v) information disclosed under a
requirement of law or as directed by applicable legal authority having
jurisdiction over Executive.

 

Executive agrees that all
manuals, documents, files, reports, studies or other materials used and/or
developed by Executive for the Bank during the Term of this Agreement are
solely the property of the Bank, and that Executive has no right, title or interest
therein.  Upon termination of Executive’s
employment, Executive or Executive’s representative shall promptly deliver
possession of all such materials (including any copies thereof) to the Bank.

 

7.             Keyman Life Insurance. The Bank shall have the right to obtain and hold a “keyman”
life insurance policy on the life of Executive with the Bank as beneficiary of
the policy. Executive agrees to provide any information required for the
issuance of such policy and submit himself to any physical examination required
for such policy.

 

8.             Unsecured General Creditor. 
Neither Executive nor any other person or entity shall have any legal
right or equitable rights, interests or claims in or to any property or assets
of the Bank under the provisions of this Agreement.  No assets of the Bank shall be held under any
trust for the benefit of Executive or any other person or entity or held in any
way as security for the fulfilling of the obligations of the Bank under this
Agreement.  All of the Bank’s assets
shall be and remain the general, unpledged, unrestricted assets of the Bank.
The Bank’s obligations under this Agreement are unfunded and unsecured
promises, and to the extent such promises involve the payment of money, they
are promises to pay money in the future.  Executive and any person or entity claiming
through him shall be unsecured general creditors with respect to any rights or
benefits hereunder.

 

9.             Business Protection Covenants.

 

(a)           Covenant Not to Compete.  Executive
agrees that he will not, during the Employment Period, voluntarily or
involuntarily, directly or indirectly, (i) engage in any banking or
financial products or service business, loan origination or deposit-taking
business or any other 

 

 

business competitive with
that of the Bank, its subsidiaries or affiliates (“Competitive Business”),
(ii) directly or indirectly own any interest in (other than less than 3%
of any publicly traded company or mutual fund), manage, operate, control, be
employed by, or provide management or consulting services in any capacity to
any firm, corporation, or other entity (other than the Bank or its subsidiaries
or affiliates) engaged in any Competitive Business, or (iii) directly or
indirectly solicit or otherwise intentionally cause any employee, officer, or
member of the Board or any of its subsidiaries or affiliates to engage in any
action prohibited under (i) or (ii) of this Section 9(a).

 

(b)           Inducing Employees To Leave The Bank; Employment of
Employees.  Any attempt on the part of Executive to
induce others to leave the Bank’s employ, or the employ of any of its
subsidiaries or affiliates, or any effort by Executive to interfere with the
Bank’s relationship with its other employees would be harmful and damaging to
the Bank.  Executive agrees that during
the Employment Period and for a period of twelve (12) months thereafter,
Executive will not in any way, directly or indirectly:  (i) induce or attempt to induce any
employee of the Bank or any of its subsidiaries of affiliates to quit
employment with the Bank or the relevant subsidiary or affiliate; (ii) otherwise
interfere with or disrupt the relationships between the Bank and its
subsidiaries and affiliates and their respective employees; (iii) solicit,
entice, or hire away any employee of the Bank or any of its subsidiaries or
affiliates; or (iv) hire or engage any employee of the Bank or any
subsidiary or affiliate, or any former employee of the Bank or any subsidiary
or affiliate whose employment with the Bank or the relevant subsidiary or
affiliate ceased less than one (1) year before the date of such hiring or
engagement.

 

(c)           Nonsolicitation of Business. 
For a period of twelve (12) months from the date of termination of
employment, Executive will not utilize the confidential proprietary or trade
secret information to divert or attempt to divert from the Bank or any of its
subsidiaries or affiliates, any business the Bank or a subsidiary or affiliate
had enjoyed or solicited from its customers, borrowers, depositors or investors
during the twelve (12) months prior to termination of his employment.

 

(d)           Bank’s Ownership of Intellectual Property. 
To the extent that Executive has intellectual property rights of any
kind in any pre-existing works which are subsequently incorporated in any work
or work product produced in rendering services to the Bank, Executive hereby
grants Bank a royalty-free, irrevocable, world-wide, perpetual non-exclusive
license (with the right to sublicense), to make, have made, copy, modify, use,
sell, license, disclose, publish or otherwise disseminate or transfer such
subject matter.  Similarly, Executive
agrees that all inventions, discoveries, improvements, trade secrets, original
works of authorship, developments, formulae, techniques, processes, and
know-how, whether or not patentable, and whether or not reduced to practice,
that are conceived, developed or reduced to practice during Executive’s
employment with the Bank, either alone or jointly with others, if on the Bank’s
time, using the Bank’s facilities, or relating to the Bank shall be owned
exclusively by the Bank, and Executive hereby assigns to the Bank all of
Executive’s right, title and interest throughout the world in all such
intellectual property.  Executive agrees
that the Bank shall be the sole owner of all domestic and foreign patents or
other rights pertaining thereto, and further agrees to execute all documents
that the Bank reasonably determines to be necessary or convenient for use in
applying for, prosecuting, perfecting, or enforcing patents or other
intellectual property rights, including the execution of any assignments,
patent applications, or other documents that the 

 

 

Bank may reasonably
request.  This provision is intended to
apply to the extent permitted by applicable law and is expressly limited by Section 2870
of the California Labor Code, which is set forth in its entirety in Exhibit A
to this Agreement.  By signing this
Agreement, Executive acknowledges that this paragraph shall constitute written
notice of the provisions of Section 2870.

 

(e)           Bank’s Ownership of Copyrights. 
Executive agrees that all original works of authorship not otherwise
within the scope of Paragraph (d) above that are conceived or developed
during Executive’s employment with the Bank, either alone or jointly with
others, if on the Bank’s time, using Bank facilities, or relating to the Bank,
are “works for hire” to the greatest extent permitted by law and shall be owned
exclusively by the Bank, and Executive hereby assigns to the Bank all of
Executive’s right, title, and interest in all such original works of
authorship.  Executive agrees that the
Bank shall be the sole owner of all rights pertaining thereto, and further
agrees to execute all documents that the Bank reasonably determines to be necessary
or convenient for establishing in the Bank’s name the copyright to any such
original works of authorship.

 

10.           No Breach of Prior Agreement. 
Executive represents that his performance of all the terms of this
Agreement and his duties as an executive of the Bank will not breach any agreement
with any former employer or other party. 
Executive represents that he will not bring with him to the Bank or use
in the performance of his duties for the Bank any documents or materials of a
former employer that are not generally available to the public or have not been
legally transferred to the Bank.

 

11.           Resignations.  Executive
agrees that upon termination of employment, for any reason, he will submit his
resignations from all offices and directorships with the Bank and all of its
subsidiaries.

 

12.           Other Agreements.  The parties
further agree that to the extent of any inconsistency between this Agreement
and any employee manual or policy of the Bank, that the terms of this Agreement
shall supersede the terms of such employee manual or policy.

 

13.           Notice.  For the
purposes of this Agreement, notices, demands and all other communications
provided for in this Agreement shall be in writing and shall be personally
delivered or (unless otherwise specified) mailed by United States certified or
registered mail, return receipt requested, postage prepaid, or sent by
facsimile, provided that the facsimile cover sheet contains a notation of the
date and time of transmission, and shall be deemed received:  (i) if personally delivered, upon the
date of delivery to the address of the person to receive such notice, (ii) if
mailed in accordance with the provisions of this Section 13, two (2) business
days after the date placed in the United States mail, (iii) if mailed
other than in accordance with the provisions of this Section 13 or mailed
from outside the United States, upon the date of delivery to the address of the
person to receive such notice, or (iv) if given by facsimile, when
sent.  Notices shall be addressed as
follows:

 

 

If
to the Bank:

 

1st Century Bank, National Association

1875 Century Park East

Suite 1400

Los Angeles, CA  90067

Attn:  Chairman of the Board and
President/COO

 

With
a copy to:

 

Manatt, Phelps & Phillips, LLP

11355 West Olympic Avenue

Los Angeles, CA 90064

Attn: Gordon M. Bava, Esq.

 

If
to Executive, to:

 

Dan Kawamoto

425 Grand Oak Court

Walnut Creek, CA 94598

 

or to such other respective
addresses as the parties hereto shall designate to the other by like notice,
provided that notice of a change of address shall be effective only upon receipt
thereof.

 

14.           Arbitration.  Any dispute
or controversy arising under or in connection with this Agreement, the
inception or termination of Executive’s employment, or any alleged
discrimination or tort claim related to such employment, including issues
raised regarding the Agreement’s formation, interpretation or breach, shall be
settled exclusively by binding arbitration in accordance with the National Rules for
the Resolution of Employment Disputes of the American Arbitration Association (“AAA”).
Without limiting the foregoing, the following potential claims by Executive
would be subject to arbitration under the Arbitration Agreement:  claims for wages or other compensation due;
claims for breach of any contract or covenant (express or implied) under which
Executive believes he would be entitled to compensation or benefits; tort
claims related to such employment; claims for discrimination and harassment
(including, but not limited to, race, sex, religion, national origin, age,
marital status or medical condition, disability, sexual orientation, or any
other characteristic protected by federal, state or local law); claims for
benefits (except where an employee benefit or pension plan specifies that its
claims procedure shall culminate in an arbitration or other procedure different
from this one); and claims for violation of any public policy, federal, state
or other governmental law, statute, regulation or ordinance.  The arbitration will be conducted in Los
Angeles County.  The arbitration shall
provide for written discovery and depositions adequate to give the parties
access to documents and witnesses that are essential to the dispute.  The arbitrator shall have no authority to add
to or to modify this Agreement, shall apply all applicable law, and shall have
no lesser and no greater remedial authority than would a court of law resolving
the same claim or controversy.  The
arbitrator shall issue a written decision that includes the essential findings
and conclusions upon which the decision is based, which shall be signed and
dated.  Executive and the Bank shall each
bear his or its own costs and attorneys’ fees incurred in conducting the 

 

 

arbitration and, except
in such disputes where Executive asserts a claim otherwise under a state or
federal statute prohibiting discrimination in employment (a “Statutory Claim”),
or unless required otherwise by applicable law, shall split equally the fees
and administrative costs charged by the arbitrator and AAA.  For such disputes that do not involve
Statutory Claims, if Executive is determined to be the prevailing party, the
arbitrator shall have the discretion to order the Bank to reimburse Executive for his portion of the arbitrator’s fees
and administrative costs of AAA charged to the parties as a result of the arbitration,
but not his attorneys’ fees or other costs. 
In disputes where Executive asserts a Statutory Claim against the Bank
or where otherwise required by law, Executive shall be required to pay only the
AAA filing fee to the extent such filing fee does not exceed the fee to file a
complaint in state or federal court.  The
Bank shall pay the balance of the arbitrator’s fees and administrative
costs.  If any party prevails on a
Statutory Claim that affords the prevailing party attorneys’ fees, the arbitrator
may award attorneys’ fees to the prevailing party, consistent with applicable
law.  Judgment may be entered on the
arbitrator’s award in any court having jurisdiction.

 

15.           Waiver of Breach.  Any waiver of
any breach of this Agreement shall not be construed to be a continuing waiver
or consent to any subsequent breach on the part either of Executive or of the
Bank.  No delay or omission in the
exercise of any power, remedy, or right herein provided or otherwise available
to any party shall impair or affect the right of such party thereafter to
exercise the same.  Any extension of time
or other indulgence granted to a party hereunder shall not otherwise alter or
affect any power, remedy or right of any other party, or the obligations of the
party to whom such extension or indulgence is granted except as specifically
waived.

 

16.           Non-Assignment; Successors. 
Neither party hereto may assign his or its rights or delegate his or its
duties under this Agreement without the prior written consent of the other party;
provided, however, that: (i) this Agreement shall inure to the benefit of
and be binding upon the successors and assigns of the Bank upon any sale of all
or substantially all of the Bank’s assets, or upon any merger, consolidation or
reorganization of the Bank with or into any other corporation, all as though
such successors and assigns of the Bank and their respective successors and
assigns were the Bank; and (ii) this Agreement shall inure to the benefit
of and be binding upon the heirs, assigns or designees of Executive to the
extent of any payments due to them hereunder. 
As used in this Agreement, the term “Bank” shall be deemed to refer to
any such successor or assign of the Bank referred to in the preceding sentence.

 

17.           Withholding of Taxes. All payments required to be made by the Bank to
Executive under this Agreement shall be subject to the withholding and
deduction of such amounts, if any, relating to tax, and other payroll
deductions as the Bank may reasonably determine it should withhold and/or
deduct pursuant to any applicable law or regulation (including, but not limited
to, Executive’s portion of social security payments and income tax withholding)
now in effect or which may become effective any time during the term of this
Agreement.

 

18.           Excise Tax Provision. 
Notwithstanding anything elsewhere in this Agreement to the contrary, if
any of the payments or benefits provided for in this Agreement, together with
any other payments or benefits which Executive has the right to receive from the
Bank (or its affiliated companies), would constitute a “parachute payment” as
defined in Section 280G(b)(2) 

 

 

of the Internal Revenue
Code of 1986, as amended (the “Code”) or any successor provision, the
parties agree that the payments or benefits provided to Executive pursuant to
this Agreement shall be reduced (in each case, in such manner as Executive in
his sole discretion shall determine) so that the present value of the total
amount received by Executive that would constitute a “parachute payment” will
be $1.00 less than three (3) times Executive’s base amount (as defined in Section 280G
of the Code) and so that no portion of the payment or benefits received by
Executive would be subject to the excise tax imposed by Section 4999 of
the Code.

 

19.           Indemnification.  To the
fullest extent permitted by law, regulation, and the Bank’s Articles of
Incorporation and Bylaws, the Bank shall pay as and when incurred all expenses,
including legal and attorney costs, incurred by, or shall satisfy as and when entered
or levied a judgment or fine rendered or levied against, Executive in an action
brought by a third party against Executive (whether or not the Bank is joined
as a party defendant) to impose a liability or penalty on Executive for an act
alleged to have been committed by Executive while an officer of the Bank,
provided that Executive was acting in good faith, within what Executive
reasonably believed to be the scope of Executive’s employment or authority and
for a purpose which Executive reasonably believed to be in the best interests
of the Bank or the Bank’s shareholders, and in the case of a criminal
proceeding, that Executive had no reasonable cause to believe that Executive’s
conduct was unlawful.  Payments
authorized hereunder include amounts paid and expenses incurred in settling any
such action or threatened action.  All
rights hereunder are limited by any applicable state or Federal laws.

 

20.           Severability.  To the extent
any provision of this Agreement or portion thereof shall be invalid or unenforceable,
it shall be considered deleted therefrom (but only for so long as such
provision or portion thereof shall be invalid or unenforceable) and the
remainder of such provision and of this Agreement shall be unaffected and shall
continue in full force and effect to the fullest extent permitted by law if
enforcement would not frustrate the overall intent of the parties (as such
intent is manifested by all provisions of the Agreement including such invalid,
void, or otherwise unenforceable portion).

 

21.           Payment.  All amounts
payable by the Bank to Executive under this Agreement shall be paid promptly on
the dates required for such payment in this Agreement without notice or demand.

 

22.           Authority.  Each of the
parties hereto hereby represents that each has taken all actions necessary in
order to execute and deliver this Agreement.

 

23.           Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original but all of which together will constitute one and the
same instrument.

 

24.           Governing Law.  This
Agreement shall be construed, interpreted and enforced in accordance with the
National Bank Act and the laws of the State of California, without giving
effect to the choice of law principles thereof.

 

25.           Entire Agreement.  This
Agreement and written agreements, if any, entered into concurrently herewith
constitute the entire agreement by the Bank and Executive with respect to 

 

 

the subject matter hereof
and merges and supersedes any and all prior discussions, negotiations,
agreements or understandings between Executive and the Bank with respect to the
subject matter hereof, whether written or oral. 
This Agreement may be amended or modified only by a written instrument
executed by Executive and the Bank. With regard to such amendments,
alterations, or modifications, facsimile signatures shall be effective as
original signatures.  Any amendment,
alteration, or modification requiring the signature of more than one party may
be signed in counterparts.

 

26.           Further Actions.  Each party
agrees to perform any further acts and execute and deliver any further
documents reasonably necessary to carry out the provisions of this Agreement.

 

27.           Time of Essence.  Time is of
the essence of each and every term, condition, obligation and provision hereof.

 

28.           No Third Party Beneficiaries. 
This Agreement and each and every provision hereof is for the exclusive
benefit of the parties and not for the benefit of any third party.

 

29.           Headings.  The headings
in this Agreement are inserted only as a matter of convenience, and in no way
define, limit, or extend or interpret the scope of this Agreement or of any
particular provision hereof.

 

 

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

 

	
   

  	
  1ST CENTURY BANK, NATIONAL

  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alan I. Rothenberg

  
	
   

  	
   

  	
  Alan I. Rothenberg

  
	
   

  	
   

  	
  Chairman of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason P. DiNapoli

  
	
   

  	
   

  	
  Jason P. DiNapoli

  
	
   

  	
   

  	
  President and Chief
  Operating Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Dan Kawamoto

  
	
   

  	
     Dan Kawamoto

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