Document:

Exhibit 10.5.2

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(“Agreement”) is entered into as of October 27, 2005 by and between Commercial Capital
Bancorp (the “Holding Company”), a corporation organized under the laws of the
State of Nevada, with its headquarters office located in the City of Irvine,
Orange County, California, and James Leonetti, a California resident (the “Employee”).
References herein to “Bank” are references to Commercial Capital Bank, FSB.
References herein to “Bank Employment Agreement” are references to the
employment agreement entered into between the Bank and the Employee dated
October 27, 2005.

 

On the basis of the foregoing facts, for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, and
in further consideration of the mutual covenants and agreements contained
herein, the parties agree as follows:

 

1.             Term.

 

(a)           Effective
as of November 16, 2005, subject to the provisions below, the Holding Company
agrees to employ Employee, and Employee agrees to be employed by the Holding
Company, subject to the terms and conditions of this Agreement, for a term of
three (3) years (“the Term”) unless employment is earlier terminated pursuant
to the termination provisions of this Agreement, commencing of the date first
set forth above (the “Employment Period”).

 

(b)           Subject
to the notice provisions of this paragraph, on the first annual anniversary of
the date first above written and each annual anniversary thereafter, the Term
of this Agreement may be renewed or extended for one (1) additional year after
review and approval by the Board of Directors or a duly authorized committee.
In the event that the Holding Company or the Employee gives written notice to
the other party or parties hereto of such party’s or parties’ election not to
extend the Term, with such notice to be given not less than ninety (9) days
prior to any such anniversary date, then this Agreement shall terminate at the
conclusion of its remaining Term.

 

(c)           References
herein to the Term of this Agreement and/or the Employment Period shall refer
both to the initial Term and successive Terms.

 

2.             Duties
and Authority. During the Employment Period, Employee shall devote all his
productive time, ability and attention to the business and affairs of the
Holding Company and its subsidiaries. Employee shall not directly render
service of a business, commercial or professional nature to any other person or
organization other than the Holding Company and its subsidiaries without the
consent of the Board of Directors. However, nothing in this paragraph prohibits
Employee from, or requires the Board of Directors to approve or consent to
Employee serving as an advisor or Board member of a charitable or nonprofit
organization or serving as an advisor or director of any corporation which does
not compete with the business of the Holding Company, as long as such service
does not materially interfere with the performance of employment duties.
Employee agrees that during the Employment Period, he will use his best
efforts, skill and abilities to promote the Holding Company’s interests and to
serve as the Executive Vice President and Chief Financial Officer of the
Holding Company. Employee shall perform such customary, appropriate and
reasonable executive duties as are normally assigned to such position at other
thrift holding companies, including such duties as are delegated to him from
time to time by the Board of

 

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Directors, including those specifically set forth on Exhibit A herein.
Employee shall report directly to the Holding Company’s Chairman and Chief
Executive Officer.

 

3.             Holding
Company’s Authority. Employee agrees to observe and comply with the Holding
Company’s policies and procedures as adopted by the Board of Directors
regarding performance of his duties and to carry out and to perform orders,
directions and policies stated by the Board of Directors to him periodically,
either orally or in writing.

 

4.             Compensation.

 

(a)           The
Holding Company, through the Bank, agrees to pay to Employee during each year
of this Agreement an annual base salary of $375,000, beginning on the date
first set forth above and payable in accordance with the Bank’s standard
biweekly payroll policy and subject to such withholding as required by law or
policy. The base salary shall be reviewed annually by the Bank’s Board of
Directors or a duly authorized committee thereof, on or before January 31 or
each year for that year, and may be changed by mutual agreement of the parties.

 

(b)           The
Holding Company, through the Bank, also agrees to pay a bonus of $100,000 upon
the execution of the Agreement, which is specifically conditioned on the
Employee’s continued employment with the Bank for three (3) years in accordance
with the terms of this Agreement. Employee hereby acknowledges and agrees that
if either (i) he should voluntarily elect to terminate his employment hereunder
for other than good reason (as defined herein or (ii) if Employee is terminated
by the Holding Company or the Bank for cause (as defined in each employment
agreement), in either circumstances, Employee shall immediately return to the
Bank the portion of the $100,000 bonus which is equal to the product of
$100,000 times the remaining percentage of the three year Term (calculated by
the number of days based on a 365 day year) that Employee did not fulfill with the
Holding Company and the Bank.

 

(c)           The
Employee will become eligible to receive from the Bank a bonus or bonuses,
which may be comprised of Holding Company stock options and restricted stock
awards with an established minimum target of 50% of base compensation, in each
case, in such amount as, in such a manner as, and at such time as, the Board of
Directors of the Holding Company or the Bank or a duly authorized committee
thereof, as the case may be, in its discretion, determines is appropriate.

 

(d)           The
Holding Company, through the Bank, shall provided a car allowance of $1,000 per
month during the Employment Period.

 

(e)           During
the Employment Period, Employee shall be eligible to participate in any
retirement, pension or profit-sharing plan, including any non-qualified,
deferred compensation or salary continuation plan, or similar employee benefit
plan or retirement or bonus program of the Holding Company and its
subsidiaries, to the extent that he is eligible under the provisions of the
plan and commensurate with his position in relationship to other participants
and pursuant to the terms of the plans or programs of the Holding Company and
its subsidiaries.

 

(f)            The
Holding Company, through the Bank, shall provide medical, dental and other
insurance, including key man life and disability, for Employee on the same
terms as provided for all executive officers of the Holding Company and its
subsidiaries.

 

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(g)           In
addition to Employers’ designated holidays, Employee shall be permitted to take
paid personal time off of not less than four (4) weeks per calendar years. None
of such personal time off shall accrue nor shall any balance of such personal
time off be owed to Employee at any time.

 

(h)           Notwithstanding
any provision herein to the contrary, to the extent that payments and benefits,
as provided by this Agreement, including, without limitation, base salary and other
employee benefits paid and provided hereunder pursuant to Section 4, the
Severance Payment paid and provided hereunder pursuant to Section 9, death
benefits provided hereunder pursuant to Section 11, sums owed in respect of
accrued bonus, if any, and reimbursable expenses, are paid to or received by
Employee under the Bank Employment Agreement, all such payments and benefits,
to the extent paid by the Bank, will be subtracted from any amount due
simultaneously to Employee under similar provisions of this Agreement.

 

5.             Reimbursement
of Expenses. The services required by the Holding Company and its
subsidiaries will require Employee to incur business, entertainment and
community relations expenses and the Holding Company or its subsidiaries hereby
agrees to provide credit cards and charge accounts for Employee’s use for such
expenses. The Holding Company or its subsidiaries agrees to reimburse Employee
for all out-of-pocket expenses, which are business related, upon submission of
appropriate documentation and approval by the Chairman and Chief Executive
Officer of the Holding Company. Such expenses may include membership fees and
dues to organizations approved by the Chairman of the Board and Chief Executive
Officer. Each expense, to be reimbursed, must be of a nature qualifying it as a
proper deduction on the income tax returns of the Holding Company as a business
expense and not as deductible compensation to Employee. The records and other
documentary evidence submitted by Employee to the Holding Company or its
subsidiaries with each request for reimbursement of such expenses shall be in
the form required by applicable statutes and regulations issued by appropriate
taxing authorities for the substantiation of such expenditures as deductible
business expenses of the Holding Company and not as deductible compensation to
Employee.

 

6.           Confidential
Information. Employee agrees that he shall not, without the prior written
permission of the Holding Company in each case, publish, disclose or make
available to any other person, firm or corporation, either during or after the
termination of this Agreement, any confidential information which Employee may
obtain during the Employment Period, or which Employee may create prior to the
end of the Employment Period relating to the business of the Holding Company
and its subsidiaries, or to the business of any customer or supplier of any of
them; provided, however, Employee may use such information during the
Employment period for the benefit of the Holding Company and its subsidiaries.
Employee agrees to execute any and all such additional agreements and
instruments that the Holding Company may deem reasonably necessary in order to
protect the confidentiality of such confidential information or otherwise to effectuate
the purpose and intent of this Section 6. Prior to or at the termination of
this Agreement, Employee shall return all documents, files, notes, writings and
other tangible evidence of such confidential information to the Holding Company
and its subsidiaries. This section 6 shall survive the expiration or
termination of this Agreement.

 

7.          Covenant
Not to Solicit Customers or Fellow Employees. Employees agrees that for a
period of eighteen (18) months following the termination employment with the
Holding Company, he will not solicit, directly, or indirectly, divert or
attempt to divert for himself or

 

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for any third
party, the business of any customer with whom the Holding Company and its
subsidiaries had done business during the preceding one year period. Employee
recognizes and acknowledges that any customer list and financial information
concerning any of the Holding Company’s customers, as it may exist from time to
time, is a valuable, special and unique asset of the Holding Company’s business.
Employee further agrees not to solicit or employ, directly or indirectly,
divert or attempt to divert for himself or for any third party, the services of
any officer or employee of the Holding Company and its subsidiaries during such
18-month period. Employee agrees to execute any and all such additional
agreements and instruments that the Holding Company may deem reasonably
necessary in order to effectuate the purpose and intent of this Section 7. This
Section 7 shall survive the expiration or termination of this Agreement.

 

8.             Remedy.
Employee understands that, because of the unique character of the services to
be rendered by Employee hereunder, the Holding Company would not have any
adequate remedy at law for the breach or threatened breach by Employee of any
one or more of the covenants set forth in this Agreement and therefore
expressly agrees that the Holding Company in addition to any other rights or
remedies which may be available to it, shall be entitled to injunctive and
other equitable relief to prevent or remedy a breach of this Agreement by
Employee.

 

9.             Termination
of Employee without Cause.

 

(a)           Upon
the occurrence of an Event of Termination (as herein defined) during Employee’s
Term of employment under this Agreement; the provisions of this Section shall
apply.

 

(b)           As
used in this Agreement, an “Event of Termination” shall mean and include any
one or more of the following: (i) the termination by the Holding Company of
Employee’s full-time employment hereunder for any reason other than a
termination governed by Section 12 below, or Termination for Cause, as defined
in Section 10 below; (ii) Employee’s termination with good reason from the
Holding Company’s employ in accordance with Section 9(c) below upon any (A)
failure to elect or reelect or to appoint or reappoint Employee to the
positions he has been appointed to pursuant to Section 2, unless consented to
by the Employee, (B) a material change in Employee’s function, duties, or
responsibilities with the Holding Company or its subsidiaries, which change
would cause Employee’s position to become one of substantially lesser
responsibility, importance, or scope from the position and attributes thereof
described in Section 2 above, including Exhibit A hereof, unless consented to
by Employee, (C) a relocation of Employee’s 
principal place of employment by more than 30 driving miles from its
location at the effective date of this Agreement, unless consented to by the
Employee, (D) a material reduction in the benefits and perquisites to Employee
from those being provided as of the effective date of this Agreement, unless
consented to by Employee or (E) a liquidation or dissolution of the Holding
Company.

 

(c)           Upon
the occurrence of any event of a type described in clauses (ii)(A), (B), (C),
(D), (E) or (F), of Section 9(b), Employee shall have the right to terminate
with good reason his employment under this Agreement by delivering written
notice to the Holding Company not less than sixty (60) days following the
occurrence of such event, which termination with good reason shall be effective
only if such event shall not be cured within thirty (30) days after Holding
Company’s receipt of such notice. The date of any Event of Termination shall be
referred to herein as the “Date of Termination”

 

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(d)           Upon
the occurrence of an Event of Termination by the Holding Company, the Holding
Company, through the Bank, shall pay to Employee an amount equal to his base
salary for the remaining portion of the Term (such payment, the “Severance
Payment”), as severance pay in lieu of and in substitution for any other claims
for salary and continued benefits hereunder (based on Employee’s base salary
and benefits prevailing at the time of termination). At the election of the
Employee, the Severance Payment shall be made to Employee: (i) in a lump sum on
the Date of Termination, or (ii) on a bi-weekly basis in approximately equal
installments over a period ending not later than the date that is 2-1/2 months
following the last day of the calendar year in which the Date of Termination
occurs. Payment of the Severance Payment shall be in addition to all other sums
owed to Employee under applicable law for all periods prior to the Date of
Termination, including, without limitation, sums owed in respect of accrued
bonus, if any, and reimbursable expenses. Notwithstanding anything in this
Agreement to the contrary, no bonus shall be deemed to have been accrued unless
and until any such bonus has been duly authorized by the Holding Company’s
Board of Directors or a duly authorized committee thereof. Accrued bonuses
shall mean the bonus amount(s) determined in accordance with Section 4(c)
hereof.

 

(e)           With
respect to any stock options issued to the Employee that were outstanding on
the Date of Termination, any options which were not exercisable on the Date of
Termination shall automatically become exercisable upon the Date of
Termination, and shall remain exercisable in full for a period of thirty (30)
days.

 

(f)            Upon
the occurrence of an Event of Termination, the Holding Company, through the
Bank, will cause to be continued for the Employee and his previously covered
dependents life, medical, dental and disability coverage that the Employee
agrees is substantially equivalent to the coverage maintained by the Holding
Company or its subsidiaries for Employee and his dependents prior to the Date
of Termination at no cost to the Employee, to the extent, if any, that the
insurance carrier(s) will allow, and except to the extent such coverage may be
changed in its application to all employees of the Holding Company and its
subsidiaries. If this coverage is not available, the Holding Company will cause
the Bank to pay to Employee an amount equal to the monthly premiums paid to the
carrier for the coverage that was in force prior to the Date of Termination for
the remaining Term of this Agreement.

 

10.           Termination
of Employee for Cause. The Board of Directors may terminate Employee’s
employment at any time, but any termination by the Board of Directors for other
than cause shall not prejudice the Employee’s right to compensation or other
benefits under this Agreement. The Employee shall have no right to receive
compensation or other benefits for any period after termination for cause.
Termination for cause shall include termination because of the Employee’s
personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty
involving personal profit, intentional failure to perform stated duties,
willful violation of any law, rule, or regulation (other than traffic
violations or similar offenses) or final regulatory cease and desist order, or
material breach of any provision of this Agreement.

 

11.           Termination
Upon Employee’s Death: Effect of Termination on Other Plans.
Notwithstanding anything herein contained, if Employee shall die, this
Agreement shall terminate one (1) year from the date of Employee’s death,
whereupon Employee’s estate shall be entitled to receive, through the Bank, his
salary, and any bonus earned up through the date of termination. Such
termination shall not affect any rights which Employee may have at the time of
his death pursuant to any of the Holding Company or its subsidiaries’ plans or
arrangements for

 

5

 

insurance, stock options, or for any other death benefit, bonus, or
retirement benefit, which accrued rights thereafter shall be enjoyed by
Employee’s estate and continue to be governed by the provision of such plans
and arrangements to the extent they are not inconsistent with the terms of this
Agreement. The Holding Company, through the Bank, will cause to be continued
for the Employee’s previously covered dependants life, medical and dental
coverage that is substantially equivalent to the coverage maintained by the
Holding Company or its subsidiaries for Employee’s dependants prior to the
employee’s death at no cost to the Employee. Such coverage shall cease upon the
expiration of the remaining Term of this Agreement. If this coverage is not
available, the Holding Company, through the Bank, will pay to Employee an
amount equal to the monthly premiums paid to the carrier for the coverage that
was in force prior to the date of Employee’s death for the remaining Term of
This Agreement.

 

12.           Change
in Control.

 

(a)           For
purposes of this Agreement, a “Change in Control” of the Bank or Holding
Company shall mean an event of a nature that: (i) would be required to be
reported in response to Item I (a) of the current report on Form 8-K, as in
effect on the date hereof, pursuant to Sections 13 or 15(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”); or (ii) results in a
Change in Control of the Bank or the Holding Company within the meaning of the
Home Owners’ Loan Act of 1933, as amended, the Federal Deposit Insurance Act
and the Rules and Regulations promulgated by the OTS (or its predecessor
agency), as in effect on the date hereof (provided, that in applying the
definition of change in control as set forth under the rules and regulations of
the OTS, the Board of Directors shall substitute its judgment for that of the
OTS); or (iii) without limitation such a Change in Control shall be deemed to
have occurred at such time as (A) any “person” (as the term is used in Sections
13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
voting securities of the Bank or the Holding Company representing 20% or more
of the Bank’s or the Holding Company’s outstanding voting securities or right
to acquire such securities except for any voting securities of the Bank
purchased by the Holding Company and any voting securities purchased by any
employee benefit plan of the Bank or the Holding Company, or (B) individuals
who constitute the Board of Directors on the date hereof (the “Incumbent
Board”) cease for any reason to constitute at least a majority thereof,
provided that any person becoming a director subsequent to the date hereof
whose election was approved by a vote of at least three-quarters of the
directors comprising the Incumbent Board, or whose nomination for election by
the Holding Company’s stockholders was approved by a Nominating Committee
solely comprised of members who are Incumbent Board members, shall be, for
purposes of this clause (B), considered as though he were a member of the
Incumbent Board, (C) a plan of reorganization, merger, consolidation, sale of
all or substantially all the assets of the Bank or the Holding Company or
similar transaction occurs or is effectuated in which the Bank or Holding Company
is not the resulting entity; provided, however, that such an event listed above
will be deemed to have occurred or to have been effectuated upon the receipt of
all required federal regulatory approvals not including the lapse of any
statutory waiting periods, or (D) a proxy statement shall be distributed
soliciting proxies from stockholders of the Holding Company, by someone other
than the current management of the Holding Company, seeking stockholder
approval of a plan or reorganization, merger or consolidation of the Holding
Company or Bank with one or more corporations as a result of which the
outstanding shares of the class of securities then subject to such plan or transaction
are exchanged for or converted into cash or property or securities not issued
by the Bank or the

 

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Holding Company shall be distributed, or (E) a tender offer is made and
accepted for 20% or more of the voting securities of the Bank or Holding
Company then outstanding.

 

(b)           If
a Change in Control has occurred pursuant to Section 12(a) above or the Board
of Directors has determined that a Change in Control has occurred, Employee
shall be entitled to the benefits provided in paragraphs (c) and (d) of this
Section 12 upon his subsequent termination of employment at any time during the
Term of this Agreement due to: (1) Employee’s dismissal or (2) Employee’s
voluntary resignation for good reason unless such termination is because of his
death or Termination for Cause.

 

(c)           Upon
Employee’s entitlement to benefits pursuant to Section 12(b), the Holding
Company, through the Bank, shall pay Employee, or in the event of his
subsequent death, his beneficiary or beneficiaries, or his estate, as the case
may be, as severance pay or liquidated damages, or both, a sum equal to the
greater of: (1) the payments due for the remaining Term of the Agreement; or
(2) three (3) times Employee’s highest annual compensation for the last five
(5) years (such payment, solely for purposes of this Section 12, the “Change in
Control Payment”). Such annual compensation shall include Base Salary,
commissions, bonuses, contributions or accruals on behalf of Employee to any
pension and profit sharing plans, including any non-qualified, deferred
compensation or salary continuation plans, any benefits to be paid or received
under any stock-based benefit plan, severance payments, directors or committee
fees and value of fringe benefits paid or to be paid to the Employee during
such years. At the election of the Employee, the Change in Control Payment
shall be made to Employee: (i) in a lump sum on or as soon as practicable
following the Date of Termination, or (ii) on a bi-weekly basis in approximately
equal installments over a period ending not later than the date that is 2-1/2
months following the last day of the calendar year in which the Date of
Termination occurs. Payment of the Change in Control Payment shall be in
addition to all other sums owed to Employee under applicable law for all
periods prior to the Date of Termination, including, without limitation, sums
owed in respect of accrued bonus, if any, and reimbursable expenses.
Notwithstanding anything in this Agreement to the contrary, no bonus shall be
deemed to have been accrued unless and until any such bonus has been duly
authorized by the Holding Company’s Board of Directors or a duly authorized
committee thereof. Such payments shall 
not be reduced in the event Employee obtains other employment following
termination of employment.

 

(d)           Upon
the Employee’s entitlement to benefits pursuant to Section 12(b), the Holding
Company, through the Bank, will cause to be continued for the Employee and his
previously covered dependents life, medical, dental and disability coverage
that the Employee agrees is substantially equivalent to the coverage maintained
by the Holding Company for Employee and his dependents prior to his termination
at no cost to the Employee. Such coverage and payments shall cease upon the
expiration of thirty-six (36) months following the Date of Termination. If this
converge is not available, the Holding Company, through the Bank, will pay to
Employee an amount equal to the monthly premiums paid to the carrier for the coverage
that was in force prior to the date of Termination for thirty-six (36) months
following the Date of Termination.

 

13.           Parachute
Payment Provision. In each calendar year that the Employee is entitled to
receive payments or benefits under the provisions of this Agreement, the
Holding Company shall determine if an excess parachute payment (as defined in
Section 4999 of the Internal Revenue Code of 1986, as amended and any successor
provision thereto (the “Code”)) exists. Such determination shall be made after
taking any reductions permitted pursuant to Section 280G of the

 

7

 

Code and the regulations there under. Any amount determined to be an
excess parachute payment after taking into account such reductions shall be
hereafter referred to as the “Initial Excess Parachute Payment.” As soon as
practicable after a Change in Control, the Initial Excess Parachute Payment
shall be determined. Upon the Date of Termination following a Change in
Control, the Holding Company shall pay the Employee, subject to applicable
withholding requirements under applicable state or federal law, an amount equal
to:

 

(a)           twenty
(20) percent of the Initial Excess Parachute Payment (or such other amount
equal to the tax imposed under Section 4999 of the Code); and

 

(b)           such
additional amount (tax allowance) as may be necessary to compensate the
Employee for the payment by the Employee of state and local and federal income
and excise taxes on the payment provided under Clause (a) and on any payments
under this Clause (b). In computing such tax allowance, the payment to be made
under Clause (a) shall be multiplied by the “gross up percentage”(“GUP”). The
GUP shall be determined as follows:

 

	
  GUP =

  	
   

  	
  Tax Rate

  	
   

  
	
   

  	
   

  	
  1-Tax Rate

  	
   

  

 

The “Tax Rate” for purposes of computing the GUP shall be the sum of
the highest marginal federal and state and local income and employment-related
tax rates, including any applicable excise tax rates, applicable to the
Employee in the year in which the payment under Clause (a) is made.

 

(c)           Notwithstanding
the foregoing, if it shall subsequently be determined in a final judicial
determination or a final administrative settlement to which the Employee is a
party that the excess parachute payment as defined in Section 4999 of the Code,
reduced as described above, is more than the Initial Excess Parachute Payment
(such different amount being hereafter referred to as the “Determinative Excess
Parachute Payment”) then the Holding Company’s independent accountants shall determine
the amount (the “Adjustment Amount”) the Holding Company must pay to the
Employee in order to put the Employee in the same position as the Employee
would have been if the Initial Excess Parachute Payment had been equal to the
Determinative Excess Parachute Payment. In determining the Adjustment Amount,
independent accountants of the Holding Company shall take into account any and
all taxes (including any penalties and interest) paid by or for the Employee or
refunded to the Employee or for the Employee’s benefit. As soon as practicable
after the Adjustment Amount has been so determined, the Holding Company shall
pay the Adjustment Amount to the Employee. In no event however, shall the
Employee make any payment under this paragraph to the Holding Company.

 

(d)           For
purposes of the foregoing, in the event there is any disagreement between
Employee and the Holding Company as to whether one or more payments to which
Employee becomes entitled under this Agreement constitute parachute payments
under Code Section 280G or as to the determination of the Initial Excess
Parachute Payment or the Determinative Excess Parachute Payment, such dispute
will be resolved as follows:

 

(i)            In
the event temporary, proposed or final Treasury Regulations in effect at the
time under Code Section 280G (or applicable judicial decisions) specifically
address the status of any such payment or the method of valuation therefor, the

 

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characterization afforded to such payment by the Treasury Regulations
(or such decisions) will, together with the applicable valuation methodology,
be controlling.

 

(ii)           In the event Treasury Regulations (or applicable judicial decisions) do
not address the status of any payment in dispute, the matter will be submitted
for resolution to a nationally-recognized independent accounting firm mutually
acceptable to Employee and the Holding Company (“Independent Accountant”). The
resolution reached by the Independent Accountant will be final and controlling,
provided, however, that if in the judgment of the Independent Accountant, the
status of the payment in dispute can be resolved through the obtainment of a
private letter ruling from the Internal Revenue Service, a formal and proper
request for such ruling will be prepared and submitted, and the determination
made by the Internal Revenue Service in the issued ruling will be controlling.
All expenses incurred in connection with the retention of the Independent
Accountant and (if applicable) the preparation and submission of the ruling
request shall be borne by the Holding Company.

 

14.           Modification. The Agreement sets forth the entire
understanding of the parties with respect to the subject matter hereof,
supersedes all existing agreements between them concerning such subject matter,
and may be modified only by written instrument duly executed by each party.
Notwithstanding the foregoing, Employee agrees that if subsequent to the date
hereof, the Holding Company determines in its sole discretion that
modification(s) to this Agreement become necessary solely for the purpose of
ensuring that the Agreement does not provide for the deferral of compensation
as defined under Section 885 of the recently enacted American Jobs Creation Act
of 2004, Pub. Law No. 108-357, 118 Stat. 1418, which added Section 409A to the
Internal Revenue Code, and regulations and other guidance promulgated there
under, such modification(s) may be unilaterally imposed by the Holding Company,
and shall be binding on this Agreement, and the Employee’s consent to such
modification(s) need not be obtained for the purpose of effectuating such
modification(s).

 

15.           Notices. Any notice or other communication required or permitted to be given
hereunder shall be in writing and shall be mailed by certified mail, return
receipt requested or delivered against receipt to the party at the address set
forth following the signature line of this Agreement or to such other address
as the party shall have furnished in writing. Notice to the estate of Employee
shall be sufficient if addressed to Employee as provided in this Section 15.
Any notice or other communication given by certified mail shall be deemed given
at the time of certification thereof, except for a notice changing a party’s
address which shall be deemed given at the time of receipt thereof.

 

16.           Dispute Resolution Procedures. Except with respect to any claim for
equitable relief (the pursuit of which shall not be subject to the provisions
of this Section 16), any controversy or claim arising out of or this Agreement
or the Employee’s employment with the Holding Company or the termination
thereof, including, but not limited to, any claim of discrimination under state
or federal law, shall be settled by binding arbitration in accordance with the
Rules of the American Arbitration Association; and judgment upon the award
rendered in such arbitration shall be final and may be entered in any court
having jurisdiction thereof. Notice of the demand for arbitration shall be
filed in writing with the other party to this Agreement and with the American
Arbitration Association. In no event shall the demand for arbitration be made
after the date when the institution of legal or equitable proceedings based on
such claim, dispute or other matter in question would be barred by the
applicable statute of limitations. This agreement to

 

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arbitrate
shall be specifically enforceable under the prevailing arbitration law. Any
party desiring to initiate arbitration procedures hereunder shall serve written
notice on the other party. The parties agree that an arbitrator shall be
selected pursuant to these provisions within thirty (30) days of the service of
the notice of arbitration. In the event of any arbitration pursuant to these provisions,
the parties shall retain the rights of all discovery provided pursuant to the
California Code of Civil Procedure and the Rules thereunder. Any arbitration
initiated pursuant to these provisions shall be on an expedited basis and the
dispute shall be heard within one hundred twenty (120) days following the
serving of the notice of arbitration and a written decision shall be rendered
within sixty (60) days thereafter. All rights, causes of action, remedies and
defenses available under California law and equity are available to the parties
hereto and shall be applicable as though in a court of law. The parties shall
share equally all costs of any such arbitration.

 

17.           Miscellaneous.

 

(a)           This Agreement is drawn to be effective in the State of California and
shall be construed in accordance with California laws, except to the extent
superseded by federal law. No amendment or variation of the terms of this
Agreement shall be valid unless made in writing and signed by Employee and a
duly authorized representative of the Bank.

 

(b)           Any waiver by either party of a breach of any provision of this
Agreement shall not operate as to be construed to be a waiver of any other
breach of such provision or of any breach of any other provision of this
Agreement. The failure of a party to insist upon strict adherence to any term
of this Agreement on one or more occasions shall not be considered a waiver or
deprive that party of the right thereafter to insist upon strict adherence to
that term or any other term of this Agreement. Any waiver must be in writing.

 

(c)           Employee’s right and obligations under this Agreement shall not be
transferable by assignment or otherwise, such rights shall not be subject to
commutation, encumbrance or the claims of Employee’s creditors, and any attempt
to do any of the foregoing shall be void. The provisions of this Agreement
shall be binding upon and inure to the benefit of the Holding Company and its
successors and those who are its assigns under Section 12.

 

(c)           This Agreement does not create, and shall not be construed as creating,
any rights enforceable by a person not a party to this Agreement (except as
provided in subsection (c) above).

 

(f)            The headings in this Agreement are solely for
the convenience of reference and shall be given no effect on the construction
or interpretation of this Agreement.

 

(g)           This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument. It shall be governed by and construed in
accordance with the laws of the State of California, without giving effect to
conflict of laws, except where federal law governs.

 

10

 

IN WITNESS WHEREOF, the Holding Company and Employee have executed this Agreement to be
effective as of the day and year written above.

 

 

	
   

  	
  HOLDING
  COMPANY:

  	
  COMMERCIAL
  CAPITAL BANCORP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Stephen
  H. Gordon

  	
   

  
	
   

  	
   

  	
   

  	
  Stephen
  H. Gordon

  
	
   

  	
   

  	
   

  	
  Chairman
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
  8105
  Irvine Center Drive

  
	
   

  	
   

  	
   

  	
  Suite
  1500

  
	
   

  	
   

  	
   

  	
  Irvine,
  CA 92618

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  	
  /s/
  James H. Leonetti

  	
   

  
	
   

  	
   

  	
  James
  H. Leonetti

  
							

 

11

 

EXHIBIT A

 

Employment Agreement of James H. Leonetti

 

As
a material inducement to attract Employee to join the Company/Bank, certain
duties, responsibilities and authority, which had previously been performed or
delegated outside the scope of the position of Chief Financial Officer, were
represented as an integral part of the duties for the Employee. For all
purposes of this Exhibit A, the parties hereto agree that for functionalities
described herein as to which Employee has management responsibility, Employee
shall have responsibility to determine the level and adequacy of staffing and
to hire and terminate personnel and manage staff consistent with, among other
things, the Company’s Human Resource Policies and Guidelines.

 

The
duties and responsibilities of the Employee include, but are not limited to,
the following:

 

1.             Management of the Finance and Accounting
staff, including the Corporate Controller and Vice President of Corporate
Finance and the staff reporting thereto.

 

2.             Management and implementation of strategies
relating to accounting and reporting and capital structure.

 

3.             Management of the corporate finance
activities.

 

4.             Management of relationships with independent
auditors and third party tax providers. (i.e., currently, KPMG).

 

5.             Participation in relationships with
investment banks with respect to mergers and acquisitions.

 

6.             Management of external reporting, including
SEC reporting and compliance.

 

7.             Participation in the decision making with
respect to adequate and appropriate levels of capital.

 

8.             Policy responsibility and authority over
Accounting, Treasury, Financial Reporting budgeting, planning and cash
management and the related systems for the Company and all of its subsidiaries.

 

9.             Member of and participation in Executive
Committee activities.

 

10.           Management of investor relations and
communications with analysis, with CEO participation.

 

11.           Participation in risk management function.

 

12.           Management and implementation of federal and
state tax strategies.

 

13.           Management of treasury operation.

 

12

 

14.           Management and development of a budgeting and
planning and strategic planning function.

 

15.           Employee would be assigned an executive
assistant.

 

16.           Other duties consistent with the position of
Executive Vice President and Chief Financial Officer that may be specially
assigned from time to time by the Board of Directors.

 

13Exhibit 10.25

 

Executive Officer Summary Compensation Sheet

 

The
annual base salaries for our executive officers for 2006 are as follows:

 

	
  Executive Officer

  	
   

  	
  Annual

  Base Salary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Randall A. Lipps – President, Chief
  Executive Officer, and Chairman of the Board of Directors

  	
   

  	
  $

  	
  407,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  James T. Judson – Vice President and
  Interim Chief Financial Officer

  	
   

  	
  $

  	
  240,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robin G. Seim – Executive Vice President of
  Finance

  	
   

  	
  $

  	
  220,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gary E. Wright – Executive Vice President
  of Sales, Marketing and Business Development

  	
   

  	
  $

  	
  304,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J. Christopher Drew – Executive Vice
  President of Operations

  	
   

  	
  $

  	
  280,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  John G. Choma – Senior Vice President of
  Human Resources, Employee Learning and Performance

  	
   

  	
  $

  	
  175,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dan S. Johnston – Senior Vice President and
  General Counsel

  	
   

  	
  $

  	
  214,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Renee M. Luhr – Vice President of Sales

  	
   

  	
  $

  	
  200,000

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