Document:

Exhibit 10.11

 

Key Officer Incentive
Compensation Plan

 

City
National Bank  has an ongoing commitment
to pay for performance, seeking to provide selected colleagues who make
meaningful contributions to the Bank’s success with opportunities to earn
incentive pay.

 

Plan Definitions

 

Annual Base Salary

 

The
semi-monthly gross salary paid to the Participant in the last pay period of the
Award Period just concluded, excluding any bonuses (including those that may be
paid under this Plan), commissions, or any similar non-salary item, multiplied
by 24

 

Award

 

A cash distribution to a
Participant in accordance with the provisions of the Plan

 

Bank

 

City National Bank

 

Compensation Committee

 

Compensation, Nominating & Governance
Committee of the Board of Directors of the Bank

 

Corporation

 

City National Corporation,
a Delaware corporation

 

Net Operating Income

 

The amount by which in an accounting period
operating revenue exceeds operating expenses after income taxes.

 

Participant

 

Any eligible colleague of
the Bank who has been designated by the Plan Administrator

 

Plan

 

This Plan as it may be
amended, administered or interpreted from time to time

 

Plan Administrator

 

The Strategy and Planning Committee of the Bank or their designee

 

Plan Year

 

The period from January 1
through December 31 of any year this Plan is in effect

 

Strategy and Planning Committee

 

The officers of the Bank
who are appointed as members of the Strategy and Planning Committee by the
Board of Directors of the Bank

 

Target

 

That amount derived for
each Participant by multiplying Participant’s Annual Base Salary by the Target
percentages applicable to the Participant

 

Eligibility

 

Participants are generally in exempt staff and sales
support roles.  Eligibility to participate in the Plan will be limited to selected
individuals who meet all of the following criteria:

 

·                  Classified as an active colleague of City
National Bank and actively engaged in providing services throughout the Plan
Year and at the time of any payment under the Plan.

 

1

 

·                  Performance at a “3” level (Meets
Expectations) or higher throughout the Plan Year and not have been subject to
written warning at any time during the Plan Year.

 

·                  Not be participating in any other non-equity
compensation plan of the Bank.

 

Award Targets

 

Participants are assigned an Award Target as
recommended by Human Resources with management input based on the job position
of the Participant and market considerations. 
Award Targets as a percentage of base salary are as follows:

 

	
  Key Officer

  	
   

  	
  Minimum

  	
   

  	
  Target

  	
   

  	
  Maximum

  	
   

  
	
  A

  	
   

  	
  0

  	
  %

  	
  20

  	
  %

  	
  40

  	
  %

  
	
  B

  	
   

  	
  0

  	
  %

  	
  15

  	
  %

  	
  30

  	
  %

  
	
  C

  	
   

  	
  0

  	
  %

  	
  10

  	
  %

  	
  20

  	
  %

  
	
  Other

  	
   

  	
  Other targets and ranges may be established by
  the Plan Administrator in its sole discretion

  	
   

  

 

Company Performance and Plan
Funding

 

Funding
for the Plan each Plan Year is based on the performance of the Corporation
relative to the financial goal for the Corporation’s Net Operating Income
established each year by the Plan Administrator and approved by the
Compensation Committee.  When 100% of the
Net Operating Income goal is achieved, the Plan will fund at 100% of Award
Targets.  Funding for the Plan may be
more or less than Targets depending upon the actual Net Operating Income
results achieved.  The Plan Administrator
has discretion in determining overall Plan funding.

 

Individual Performance and Award
Determination

 

Individual
colleague incentive Awards are based on the colleague’s overall performance of
job responsibilities, goals and objectives. 
At the beginning of each Plan Year, managers and colleagues develop
specific goals and objectives that link colleagues’ contributions to the
success of their departments and/or the Bank. 
At the end of each performance period, managers will determine an
overall performance rating by assessing performance against goals and performance
expectations.  Based on the overall
performance, colleagues have an opportunity to earn Awards as follows:

 

	
  Rating

  	
   

  	
  Rating Distribution Guideline

  	
   

  	
  Award Guidelines

  
	
  5 = Outstanding

  	
   

  	
  Extraordinary performance not commonly achieved.This level of performance is generally achieved by only 10% of all colleagues.

  	
   

  	
  125% - 200% of Target

  
	
  4 = Above Expectations

  	
   

  	
  Excellent level of performance. This level of
  performance is generally achieved by 25%
  of all colleagues.

  	
   

  	
  50% - 150% of Target

  
	
  3 = Meeting Expectations

  	
   

  	
  Good performance.This level of performance is
  generally achieved by 50% to 55% %
  of all colleagues.

  	
   

  	
  0% - 75% of Target

  

 

The S&P reserves the right to
review and modify Awards (up or down) for Participants.  A colleague’s actual Award may be more or
less than the Award Guidelines depending on the colleague’s individual
performance, the aggregate amount of funds available for allocation and/or
other factors as the Plan Administrator in its discretion may deem appropriate.
All Awards are subject to approval by the Plan Administrator in its sole
discretion.

 

2

 

Timing and Payment of Award

 

Awards will be calculated
and paid to Participants following the close of the Plan Year and after
performance results are reviewed.

 

·                  Awards,
less any legally required or voluntary withholding, will generally be paid 75
days following the Plan Year for which the Awards are calculated.

 

·                  In order to receive an Award, a Participant
must be employed and actively providing service at the time of the payout.

 

Effective Date of the Plan

 

This Plan is effective as
of January 1, 2008 and will continue in effect, unless and until amended,
modified, suspended or terminated.

 

Administration

 

The
Plan will be administered by the Plan Administrator.  The Plan Administrator shall have sole
discretionary authority to interpret the terms of this Plan, to decide any
questions concerning eligibility, and to resolve any disputes that may arise
under or concerning the Plan or any Plan benefit.  Any disputes arising under or relating in any way to this Plan shall be
first submitted in writing to the Plan Administrator. The decisions of the Plan
Administrator shall be final.

 

No Right of Employment

 

This
Plan shall not constitute a contract of employment between the Bank and any person
eligible for participation in the Plan. 
Each Participant is an at-will employee. 
Nothing contained in this Plan (or any Award made pursuant to this Plan)
shall confer upon any eligible Participant any right to continue in the
employment of the Bank, guarantee payment of any future incentives, or
interfere with, affect or restrict in any way, the rights of the Bank, which
are expressly reserved, to discharge any employee, at any time for any reason
whatsoever, with or without cause.

 

Partial Period Participation

 

Transfer or Promotion

 

A
Participant who transfers or is promoted during the Plan Year may be eligible
for an Award under one or more Plans as long as he/she meets all eligibility
requirements and is employed and actively providing services at the time of the
payout.

 

Leave
of Absence

 

Colleagues who were on a
Leave of Absence during the Plan Year may be eligible for an Award and may have
their earned incentive amount pro-rated based upon the time worked during the
Plan Year.   Colleagues must meet all
eligibility requirements and be employed and actively providing services at the
time of the payout.

 

New
Hires

 

Colleagues who were
newly hired during the Plan Year may be eligible for an Award and will have
their earned incentive amount pro-rated based upon the time worked during the
Plan Year.  Colleagues must meet all
eligibility requirements and be employed and actively providing services at the
time of the payout.

 

Termination of Employment

 

When
a Participant terminates employment before payment, regardless of the reason
(e.g. voluntary, involuntary, job elimination, staff reduction, retirement,
total disability, etc.), no Award will be granted or paid.

 

3

 

Amendment, Modification, Suspension, Reinstatement, Termination of Plan

 

The
Plan may be amended, modified, suspended, reinstated, or terminated by the Plan
Administrator in its sole discretion without prior notice to the Participant.

 

Miscellaneous

 

No Award shall be deemed salary or compensation for
the purpose of computing benefits under any employee benefit Plan or other
arrangement of the Bank, unless the Plan Administrator, in its sole discretion,
shall determine otherwise.

 

The Human Resources Department shall make available
copies of the Plan and all amendments and any administrative rules or
procedures to all Participants at reasonable times upon request.

 

The Plan and the payment of Awards shall be subject
to all applicable federal and state laws, rules, and regulations, including the
withholding of any federal, state, local or foreign taxes and to such approvals
by any government or regulatory agency as may be required.  The terms of the Plan shall be binding upon
the Bank and its successors and assigns.

 

4Exhibit 10.12

 

RESTRICTED STOCK AWARD AGREEMENT

UNDER THE

CITY NATIONAL CORPORATION

2008 OMNIBUS PLAN

 

RESTRICTED STOCK AWARD
AGREEMENT made as of  , between CITY
NATIONAL CORPORATION, a Delaware corporation (the “Company”), and , an employee
of the Company or a subsidiary of the Company (“Colleague”), with reference to
the following:

 

A.                                        On April 23, 2008 the shareholders of the
Company adopted the City National Corporation 2008 Omnibus Plan as amended from
time to time thereafter, (the “Plan”), pursuant to which the Compensation,
Nominating & Governance Committee of the Board of Directors (the “Committee”)
may award selected officers and other Company or Company subsidiary employees
restricted shares of the Company’s common stock, (the “Common Stock”).

 

B.                                          The
Committee has determined to grant to Colleague an award of restricted shares of
Stock pursuant to the terms and conditions of this Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing recitals and the
performance of the mutual covenants contained herein, it is hereby agreed as
follows:

 

1.                                      Grant
of Restricted Stock Award.

 

(a)                                  Details
of Award. The Company hereby grants a Restricted Stock Award (as defined in
the Plan), upon the terms and conditions set forth in this Agreement, with the
following terms:

 

(i)                                     Number
of Shares to be issued:   Shares (the “Restricted
Shares”) of Stock;

 

(ii)                                  The
date of issuance:    (the “Award Date”); and

 

(iii)                               The
consideration, if any, for the Restricted Shares:  Colleague’s employment with the Company.

 

(b)                                 Issuance
of Restricted Shares.  The Restricted
Shares shall be issued upon acceptance hereof by Colleague and upon
satisfaction of the conditions of this Agreement.

 

2.                                      Restricted
Shares.  Colleague hereby accepts the
Restricted Shares when issued and agrees with respect thereto as follows:

 

1

 

(a)                                  Forfeiture
Restrictions.  The Restricted Shares
may not be sold, assigned, pledged, exchanged, hypothecated or otherwise
transferred, encumbered or disposed of (the “Forfeiture Restrictions”) to the
extent that Forfeiture Restrictions have not lapsed. In the event of
termination of Colleague’s employment with the Company or employing subsidiary
for any reason other than  (i) death
or (ii) Total Disability, except as otherwise provided in the last
sentence of subparagraph (b) of this Paragraph 2, Colleague shall, for no
consideration, forfeit to the Company all Restricted Shares to the extent then
subject to the Forfeiture Restrictions. The Forfeiture Restrictions shall be
binding upon and enforceable against any transferee of Restricted Shares.

 

(b)                                 Lapse
of Forfeiture Restrictions.  The
Forfeiture Restrictions shall lapse as to the Restricted Shares in accordance
with the following schedule provided that Colleague has been continuously
employed by the Company from the Award Date through the lapse date:

 

	
  Time from

  Date of Award

  	
   

  	
  Restricted Stock

  Vesting

  	
   

  	
  Total Percentage of

  Restrictions Lapsed

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  After 1 year

  	
   

  	
  0

  	
  %

  	
  0

  	
  %

  
	
  After 2 years

  	
   

  	
  25

  	
  %

  	
  25

  	
  %

  
	
  After 3 years

  	
   

  	
  25

  	
  %

  	
  50

  	
  %

  
	
  After 4 years

  	
   

  	
  25

  	
  %

  	
  75

  	
  %

  
	
  After 5 years

  	
   

  	
  25

  	
  %

  	
  100

  	
  %

  

 

Notwithstanding the
foregoing, the Forfeiture Restrictions shall lapse as to all of the Restricted
Shares on the earlier of (i) subject to the discretion of the Committee,
the occurrence of a Change in Control Event (as such term is defined in the
Plan), or (ii) the date Colleague’s employment with the Company is
terminated by reason of death or Total Disability. In the event Colleague’s
employment is terminated for any other reason, the Committee or its delegate,
as appropriate, may, in the Committee’s or such delegate’s sole discretion,
approve the lapse of Forfeiture Restrictions as to any or all Restricted Shares
still subject to such restrictions, such lapse to be effective on the date of
such approval or Colleague’s termination date, if later.

 

(c)                                  Certificates/Shareholder
Rights. Shares of Restricted Stock will be evidenced by memorandum entries
on the records of the Company’s transfer agent. Colleague shall have voting
rights and shall be entitled to receive all dividends unless and until the
Restricted Shares are forfeited pursuant to the provisions of this Agreement.
Cash dividends paid on Shares of Common Stock will be paid to Colleague for the
Restricted Shares on the same date as paid to other Shareholders.  Upon request of the Committee or its
delegate, Colleague shall deliver to the Company a stock power, endorsed in
blank, relating to the Restricted Shares then subject to the Forfeiture
Restrictions.  Upon the lapse of the
Forfeiture Restrictions, the Company shall cause the shares to be issued to you
or your broker, per your election on file, in the name of the colleague, or
such other name as provided in the Plan, for the Shares upon which Forfeiture
Restrictions lapsed.  

 

2

 

Notwithstanding any other provisions of this Agreement, the issuance or
delivery of any shares of Common Stock (whether subject to restrictions or
unrestricted) may be postponed for such period as may be required to comply
with applicable requirements of any national securities exchange or any
requirements under any law or regulation applicable to the issuance or delivery
of such Shares.  The Company shall not be
obligated to issue or deliver any shares of Common Stock if the issuance or
delivery thereof shall constitute a violation of any provision of any law or of
any regulation of any governmental authority or any national securities
exchange.

 

3.                                      Withholding
of Tax.  The receipt of Restricted
Shares or the lapse of any Forfeiture Restrictions may result in income to you
for federal or state tax purposes.  To
the extent that you become subject to taxation, you shall deliver to the
Company at the time of such receipt or lapse, as the case may be, such amount
of money or Shares of unrestricted Common Stock, as the Company may require to
meet its withholding obligation under applicable tax laws or regulations.  If you fail to do so, the Company is
authorized to withhold from any cash or stock remuneration then or thereafter
payable to you any tax required to be withheld by reason of such resulting
compensation income.  Your delivery of
Shares to meet the tax withholding obligation is subject to the Company’s
Securities Trading Policy as may be in effect from time to time.  You must have owned any Common Stock you
deliver for at least six months.   Any
Common Stock you deliver or which is withheld by the Company will be valued on
the date of which the amount of tax to be withheld is determined.  Any fractional Shares of Common Stock
resulting from withholding of taxes will be paid to you in cash.

 

4.                                      Status
of Common Stock.  Colleague agrees
that the Restricted Shares to which the restrictions have lapsed will not be
sold or otherwise disposed of in any manner which would constitute a violation
of any applicable federal or state securities laws.  Colleague also agrees (i) that the
certificates representing the Shares may bear such legend or legends as the
Company deems appropriate in order to assure compliance with applicable
securities laws, (ii) that the Company may refuse to register the transfer
of the Shares on the stock transfer records of the Company if such proposed
transfer would be in the opinion of counsel satisfactory to the Company
constitute a violation of any applicable securities law and (iii) that the
Company may give related instructions to its transfer agent, if any, to stop
registration of the transfer of the Shares.

 

5.                                      Limitation on Transfer.  Other
than upon death or pursuant to a DRO, the Restricted Shares and all rights
granted under this Agreement are personal to Colleague and cannot be
transferred, assigned, pledged or hypothecated in any way (whether by operation
of law or otherwise) and will not be subject to execution, attachment or
similar processes.

 

6.                                      Employment
Relationship.  For purposes of this
Agreement, Colleague shall be considered to be in the employment of the Company
as long as Colleague remains a Colleague of either the Company, any successor
corporation or a parent or subsidiary corporation (as defined in section 424 of
the Internal Revenue Code) of the Company or any successor corporation.

 

3

 

Any question as to
whether and when there has been a termination of such employment, and the cause
of such termination, shall be determined by the Committee, or its delegate, as
appropriate, and its determination shall be final.

 

Neither
the Plan nor this Agreement shall constitute a contract of employment between
the Company, including, any successor corporation or a parent or
subsidiary corporation of the Company or any successor corporation and Colleague. 
Colleague is an at-will employee except as
provided in any other written agreement.  Nothing contained in the Plan or the
Agreement (or any Award made pursuant to the Plan) shall confer upon any
eligible Participant any right to continue in the employment of the Company, or
guarantee of payment of future incentives, or shall interfere with, affect or
restrict in any way, the rights of the Company, which are expressly reserved,
to discharge Colleague, any time for any reason whatsoever, with or without
cause.

 

7.                                      Availability
of Plan/Plan Incorporated.  Colleague
acknowledges that the Company has made available a copy of the Plan, and agrees
that this Award of Restricted Shares shall be subject to all of the terms and
conditions set forth in the Plan, including future amendments thereto, if any,
pursuant to the terms thereof, which Plan is incorporated herein by reference
as a part of this Agreement. In the event of any conflict between the Plan and
this Agreement, the provisions of the Plan will prevail.  Colleague’s rights hereunder are subject to
modification or termination in certain events, as provided in the Plan,
including without limitation such rules and regulations as may from time
to time be adopted or promulgated in accordance with paragraph 1.3 of the
Plan.  Capitalized terms not defined in
this Agreement shall have the meanings set forth in the Plan.

 

8.                                      Committee’s
Powers.  No provision contained in
this Agreement shall in any way terminate, modify or alter, or be construed or
interpreted as terminating, modifying or altering any of the powers, rights or
authority vested in the Committee or, to the extent delegated, in its delegate
pursuant to the terms of the Plan or resolutions adopted in furtherance of the
Plan, including, without limitation, the right to make certain determinations
and elections with respect to the Restricted Shares. All decisions of the
Committee (as established pursuant to the Plan) with respect to any questions
concerning the application, administration or interpretation of the Plan will
be conclusive and binding on the Company and Colleague.

 

9.                                      Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of any successors to the Company and all
persons lawfully claiming under Colleague.

 

10.                             Dispute
Resolution.  If a dispute arises between Colleague and Company in connection with the
Restricted Stock Award, the dispute will be resolved by binding arbitration
with the American Arbitration Association (AAA) in accordance with the AAA’s
Commercial Arbitration Rules then in effect.

 

4

 

11.                               Governing
Law.  This Agreement shall be
governed by, and construed in accordance with, the laws of the State of
California.

 

IN WITNESS WHEREOF, the Company has caused this
Agreement to be duly executed by an officer thereunto duly authorized, and
Colleague has executed this Agreement, all as of the date first above written.

 

 

	
  

  	
  CITY NATIONAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Christopher J. Carey,
  Executive Vice

  
	
   

  	
   

  	
  President, Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Colleague

  

 

 

PLEASE RETURN ONE COPY OF THE
SIGNED AGREEMENT TO THE

COMPENSATION SECTION OF HUMAN RESOURCES (86-001)

 

5

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