Document:

Branch Purchase and Assumption Agreement dated August 7, 2006

 Exhibit 10.1 
  
  
  
  
  
  
  
  
  
  
  
 BRANCH PURCHASE AND ASSUMPTION AGREEMENT 
 BETWEEN 
 FIRST BANK 

AND 
 FIRST BANK OF BEVERLY HILLS

  
  
  
  
  
  
  
  
  
  
  
 August 7, 2006 
  

 TABLE OF CONTENTS 
  

 

			
	 Article One—Purchase and Sale of Assets and Assumption of Liabilities
	  	
		
	 Section 1.01. Purchase of Assets
	  	1
	 Section 1.02. Assumption of Liabilities
	  	2
	 Section 1.03. Names and Marks
	  	3
		
	 Article Two—Closing, Calculation of Purchase Price and Closing Deliveries
	  	
		
	 Section 2.01. The Closing
	  	3
	 Section 2.02. The Closing Date
	  	3
	 Section 2.03. Retirement Accounts
	  	3
	 Section 2.04. Calculation and Payment of Purchase Price
	  	4
	 Section 2.05. Prorations
	  	5
	 Section 2.06. Closing Deliveries
	  	5
		
	 Article Three—Representations and Warranties of Seller
	  	
		
	 Section 3.01. Organization
	  	7
	 Section 3.02. Authorization
	  	7
	 Section 3.03. Non-Contravention
	  	7
	 Section 3.04. Consents to Transaction
	  	7
	 Section 3.05. Compliance with Law
	  	7
	 Section 3.06. Regulatory Enforcement Actions
	  	7
	 Section 3.07. Community Reinvestment Act
	  	8
	 Section 3.08. Litigation
	  	8
	 Section 3.09. Employee Contracts.
	  	8
	 Section 3.10. Financial Information
	  	8
	 Section 3.11. Deposit Liabilities
	  	8
	 Section 3.12. Brokerage
	  	8
	 Section 3.13. Environmental Matters
	  	8
	 Section 3.14. Representations and Warranties Regarding the Loans
	  	9
		
	 Article Four—Representations and Warranties of Buyer
	  	
		
	 Section 4.01. Organization
	  	9
	 Section 4.02. Authorization
	  	9
	 Section 4.03. Non-Contravention
	  	9
	 Section 4.04. Consents to Transaction
	  	10
	 Section 4.05. Litigation
	  	10
	 Section 4.06. Financial Information
	  	10
	 Section 4.07. Regulatory Capital
	  	10
	 Section 4.08. Community Reinvestment Act
	  	10
	 Section 4.09. Brokerage
	  	10
	 Section 4.10. Regulatory Enforcement Actions
	  	10

  

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	 Article Five—Agreements of Seller
	  	
		
	 Section 5.01. Business in Ordinary Course
	  	10
	 Section 5.02. Breaches
	  	11
	 Section 5.03. Consummation of Agreement
	  	11
	 Section 5.04. Access to Information
	  	11
	 Section 5.05. Environmental Reports
	  	12
	 Section 5.06. Transfer of Data
	  	12
	 Section 5.07. Further Assurances
	  	13
	 Section 5.08. Covenant Not to Compete
	  	13
		
	 Article Six—Agreements of Buyer
	  	
		
	 Section 6.01. Regulatory Approvals
	  	13
	 Section 6.02. Breaches
	  	14
	 Section 6.03. Consummation of Agreement
	  	14
	 Section 6.04. Access to Information
	  	14
		
	 Article Seven—Conditions Precedent
	  	
		
	 Section 7.01. Conditions to Seller’s Obligations
	  	14
	 Section 7.02. Conditions to Buyer’s Obligations
	  	14
		
	 Article Eight—Termination or Abandonment
	  	
		
	 Section 8.01. Mutual Agreement
	  	15
	 Section 8.02. Breach of Representations or Agreements
	  	15
	 Section 8.03. Failure of Conditions
	  	15
	 Section 8.04. Denial of Regulatory Approval
	  	15
	 Section 8.05. Environmental Reports
	  	16
	 Section 8.06. Elapsed Time
	  	16
		
	 Article Nine—Transitional and Post-Closing Matters
	  	
		
	 Section 9.01. Notification to Customers and Transitional Matters
	  	16
	 Section 9.02. Information Reporting
	  	17
	 Section 9.03. Software Transfer Fees
	  	17
	 Section 9.04. Customer Service
	  	17
	 Section 9.05. Insurance
	  	18
		
	 Article Ten—Indemnification
	  	
		
	 Section 10.01. Indemnification of Buyer
	  	18
	 Section 10.02. Indemnification of Seller
	  	18

  

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	Article Eleven—General	  	
			
	Section 11.01.	 	Confidential Information	  	18
	Section 11.02.	 	Publicity	  	18
	Section 11.03.	 	Return of Documents	  	19
	Section 11.04.	 	Notices	  	19
	Section 11.05.	 	Expenses	  	20
	Section 11.06.	 	Entire Agreement	  	20
	Section 11.07.	 	Headings and Captions	  	20
	Section 11.08.	 	Waiver, Amendment or Modification	  	20
	Section 11.09.	 	Rules of Construction	  	20
	Section 11.10.	 	Counterparts	  	20
	Section 11.11.	 	Successors and Assigns	  	20
	Section 11.12.	 	Governing Law; Assignment	  	20
	Section 11.13.	 	Survival of Warranties	  	20
		
	Signatures	  	21
			
	Exhibit 1	 	Form of Assignment and Assumption of Deposit Liabilities Agreement	  	
	Exhibit 2	 	Form of Assignment and Assumption of Contracts Agreement	  	
	Exhibit 3	 	Form of Assignment, Transfer and Appointment of Successor Custodian for IRA Accounts	  	
	Exhibit 4	 	Form of Bill of Sale	  	
			
	Schedule A	 	Deposit Liabilities	  	
	Schedule B	 	Personal Property	  	
	Schedule C	 	Loans	  	
	Schedule D	 	Assumed Contracts	  	

  

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 BRANCH PURCHASE AND ASSUMPTION AGREEMENT 
 This BRANCH PURCHASE AND ASSUMPTION AGREEMENT (this “Agreement”) is made and executed as of the 7th day of August, 2006, by and between First Bank, a Missouri state bank with its main office located in Creve Coeur, Missouri (“Buyer”), and
First Bank of Beverly Hills, a California banking corporation with its main office located in Calabasas, California (“Seller”). 
 RECITALS: 
 A. Seller owns and operates a branch banking office located at 175 S. Beverly Drive in Beverly Hills,
California (the “Branch Office”). 
 B. Seller desires to sell the Branch Office and assign the deposit liabilities
associated therewith, and Buyer desires to acquire the Branch Office and assume such deposit liabilities, all on the terms and subject to the conditions set forth herein. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the premises and the mutual terms and
provisions set forth in this Agreement, the parties agree as follows: 
 Article One 
 Purchase and Sale of Assets and Assumption of Liabilities 
 Section 1.01.    Purchase of Assets. Upon the terms and subject to the conditions and representations set forth herein, Seller shall sell, convey, assign and transfer to Buyer at the Closing
(as defined in Section 2.01 below), and Buyer shall purchase and accept from Seller, all right, title and interest of Seller in and to the following assets (collectively, the “Assets”) as the same exist on the Closing Date (as defined
in Section 2.02 hereof: 
 (a) Records. All books, records, files and original documents relating to the Assets and the
Assumed Liabilities (as defined in Section 1.02) (the “Records”). 
 (b) Personal Property. The
furniture, fixtures, equipment, improvements and other items of tangible personal property located at the Branch Office as of the close of business on the Closing Date, together with Seller’s leasehold interest in the Branch Office, and all
sign structures (collectively, the “Personal Property”), as set forth on Schedule B to this Agreement, and such additional items of tangible personal property as may be placed at the Branch Office after the date of such Schedule B to
replace damaged or worn items or as may be required for the operation of the Branch office (such additional items not to exceed $5,000 in aggregate cost); provided, however, that Buyer shall have the right not to purchase any software with respect
to which a transfer fee would be payable on transfer. If, prior to the Closing Date, any item of Personal Property which would have been Personal Property at the Closing is stolen, destroyed or otherwise lost, such item shall be excluded from the
sale contemplated hereby, and the term “Personal Property” as used herein shall exclude any such item(s). If, prior to the Closing Date, any item of Personal Property is damaged by fire or other casualty, such item(s), if reasonably
repairable, shall be sold to Buyer (in accordance with the provisions hereof) and the insurance proceeds relating to such item shall be assigned to Buyer, it being understood that if any such item is not reasonably repairable, it shall be excluded
from the sale contemplated hereby. 

 (c) Loans. Overdraft loans of Seller specifically related to the Deposit Liabilities (as
defined in Section 1.02(a) and attributed to the Branch Office, such loans as they exist as of June 30, 2006 being listed on Schedule C to this Agreement, and including accrued interest thereon through the Sunday following the Closing Date
(the “Loans”); provided, that the terms “Loans” shall not include any loans or other extensions of credit which would otherwise be included but, as of the Closing Date, are sixty (60) days or more past due, on non-accrual
status or are internally classified by Seller as substandard or worse. All Loans shall be assigned to Buyer without recourse against Seller and subject to the representations and warranties set forth in Section 3.14 hereof. 
 (d) Assumed Contracts. Seller’s rights under, or created by, the Assumed Contracts (as defined in Section 1.02(c) below).

 (e) Cash on Hand. All teller working cash, petty cash and vault cash at the Branch Office as of the close of business on
the Closing Date (the “Cash on Hand”). 
 Section 1.02.    Assumption of Liabilities. Upon the terms and
subject to the conditions set forth herein, at the Closing Seller shall transfer and assign to Buyer, and Buyer shall assume from Seller and agree to pay, perform and discharge by documentation reasonably satisfactory as to form and substance to
Seller, as of the close of business on the Closing Date, the following liabilities, and none other (collectively, the “Assumed Liabilities”): 
 (a) Deposit Liabilities. All deposit liabilities maintained at the Branch Office, in accordance with the terms of the agreements pertaining to such deposits, as shown on the books and records of Seller as of the close
of business on the Closing Date, including accrued but unpaid interest thereon through the Sunday following the Closing Date, including those deposits subject to overdrafts as of the Closing Date, except as provided in this subsection and in
Section 2.03(c) hereof (the “Deposit Liabilities”). The deposits of Seller that would have constituted Deposit Liabilities on June 30, 2006 are listed and identified on Schedule A hereto. As soon as practicable after
execution of this Agreement, Seller will provide Buyer with a current listing of the deposits of the Branch Office, sorted by postal zip code. Based on this listing and any other information available, Buyer and Seller will jointly determine any
customers who are assigned in Seller’s records to the Branch Office (“Branch Customers”) but who appear to be utilizing Seller’s other office as their primary banking service provider, and Seller will reassign such customers to
the appropriate office. As used herein, the term “Deposit Liabilities” shall include all of the deposit accounts evidencing deposit products offered by Seller from the Branch Office, including, without limitation, savings accounts,
statement accounts, checking accounts, money market accounts, and certificates of deposit; provided, however, that there shall be excluded from the term “Deposit Liabilities” those deposits (i) that are “brokered
deposits” as such term is defined in 12 C. F. R. §337.6, (ii) of customers who are reassigned to another branch office of Seller as described above, (iii) which may not be lawfully transferred, and (iv) which relate to
overdraft loans not purchased by Buyer. All of such excluded deposits shall be retained by Seller. 
 (b) Backup Withholding
Liabilities. All amounts required by any governmental agency to be withheld from any of the Deposit Liabilities (“Withholding Obligations”), to the extent provided in Section 9.01(g) hereof. 
  

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 (c) Contracts. The obligations and liabilities of Seller remaining in existence after the
Closing Date under the contracts and leases relating to the operation or maintenance of the Branch Office and specifically identified on Schedule D hereto, including the Lease (the “Lease”) identified on such Schedule (collectively, the
“Assumed Contracts”). 
 (d) Liabilities Not Assumed by Buyer. Buyer shall not assume any liabilities or
obligations of Seller, whether known or unknown, undisclosed, contingent or otherwise, which have arisen or may arise or be established in connection with the conduct of business at the Branch Office, other than those specifically assumed in this
Agreement. 
 Section 1.03.    Names and Marks. Seller hereby reserves and is not selling, assigning, conveying,
transferring or delivering, nor shall Buyer acquire, any of Seller’s intangible and intellectual property rights and interests in and to (a) the names “First Bank of Beverly Hills” or any derivation thereof, (b) the names,
descriptions and identifications of all account types and other products offered by Seller; (c) logos, service marks, trade names and trademarks, advertising materials, slogans, internet domain names or any similar items used by Seller in
connection with its business, whether or not such is copyrighted or registered; (d) all of Seller’s telephone numbers except 310-228-2162, 310-550-0596 and 800-621-5969; (e) all insurance policies maintained with respect to the Branch
Office and the employees thereof; and (f) all assets not included within the definition of the Assets. On and after the Closing Date, Buyer shall not use any name, logo, insignia, service mark or trade name of Seller in any manner. No activity
conducted by Buyer on or after the Closing Date shall state or imply that Seller is in any way involved as a partner, joint venture or otherwise in the business of Buyer. 
 Article Two 
 Closing, Calculation of Purchase Price and Closing Deliveries 
 Section 2.01.    The Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall
take place, if practicable, by facsimile and mail, or, if not practicable, at such location as the parties may agree, at 12:00 noon central time on the Closing Date described in Section 2.02 of this Agreement. 
 Section 2.02.    The Closing Date. The Closing shall take place on such date as the parties may mutually agree or, in the
absence of such agreement, on November 3, 2006, subject to the prior satisfaction or waiver of all conditions to the obligations of the parties to effect the transactions contemplated by this Agreement (the “Closing Date”). The
transactions contemplated by this Agreement shall become effective at the close of business on the Closing Date. 
 Section
2.03.    Retirement Accounts. 
 (a) At the Closing, Seller shall resign as trustee or custodian with respect to any
individual retirement account (“IRA Account”) as to which Seller acts in such capacity and as to which one or more of the assets included therein is a deposit included within the Deposit Liabilities transferred to Buyer on the Closing
Date. At the Closing, Seller shall designate or appoint Buyer as successor custodian under each such IRA Account. 
 (b) Buyer covenants and
agrees that, following its designation or appointment as successor custodian under the IRA Accounts, it will promptly and faithfully perform, fulfill, and discharge each of the obligations required to be performed by the custodian with respect to
such accounts pursuant to law, or pursuant to the governing documents establishing such IRA Accounts. 
  

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 (c) If an individual depositor with respect to an IRA Account refuses to accept the designation or
appointment of Buyer as successor custodian with respect to any such IRA Account, none of the deposits contained in such IRA Account shall be assumed by Buyer, and they shall remain the liability and obligation of Seller. 
 Section 2.04.    Calculation and Payment of Purchase Price. The calculation and payment of the Purchase Price (defined herein)
shall be made as follows: 
 (a) The “Purchase Price” shall be an amount equal to the following, with the appropriate value of each
category of asset and liability to be calculated as of the close of business on the Closing Date: 
 (i) the aggregate amount
of the principal of and accrued interest on the Deposit Liabilities; plus 
 (ii) the amount of Withholding Obligations, if
any, assumed by Buyer pursuant to Section 1.02(b) hereof; minus 
 (iii) a deposit premium in the amount of 5.5% of the
Deposit Liabilities; minus 
 (iv) the book value of the Assets as reflected in the books and records of Seller in accordance
with generally accepted accounting principles, consistently applied; minus 
 (v) the amount of Cash on Hand; minus

 (vi) the amount of overdrafts on deposits as of the Closing Date; plus or minus, as applicable, 
 (vii) the net amount of any prorated items required by Section 2.05 to be paid by either party to the other party. 
 (b) If the Purchase Price, calculated by Seller as set forth above but based upon the relevant values as of the close of business on the second business
day prior to the Closing Date (the “Measurement Date”), is a positive number, then on the Closing Date Seller shall transfer to Buyer, by wire transfer in immediately available funds to an account designated by Buyer, such amount. If the
Purchase Price, calculated by Seller as set forth above but based upon the relevant values as of the close of business on the Measurement Date, is a negative number, then on the Closing Date Buyer shall transfer to Seller, by wire transfer in
immediately available funds to an account designated by Seller, such amount (the amount so transferred by Buyer or Seller, as the case may be, is referred to herein as the “Estimated Purchase Price”). 
 (c) If necessary, on the fifteenth (15th) business day after the Closing Date or such earlier date as may be agreed to in writing by the parties
(the “Adjustment Payment Date”), an adjustment payment (the “Adjustment Payment”) shall be made either by Seller to Buyer or by Buyer to Seller, as appropriate, so as to correct any difference between the amount of the Estimated
Purchase Price paid pursuant to the preceding paragraph and the Purchase Price calculated as of the close of business on the Closing Date in accordance with this Section 2.04. Seller shall provide a proposed closing statement to Buyer
reflecting the calculation of the Adjustment Payment relative to the Estimated Purchase Price, a reasonable time prior to the Adjustment Payment Date, and Buyer shall have a reasonable opportunity to review and verify the items reflected on such
statement. The Adjustment Payment due to either party 

  

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pursuant to this paragraph shall be paid to such party by the other party on the Adjustment Payment Date by wire transfer in immediately available funds to
an account designated by the payee party, with interest thereon for the period from the Closing Date through the date of payment, calculated at a rate equal to the average of the high and low bids for Federal Funds as reported in the Wall Street
Journal on the Closing Date or, if none, on the date immediately prior to the Closing Date on which such bids were reported in the Wall Street Journal. 
 Section 2.05.    Prorations. The parties intend that Seller shall operate the business conducted at the Branch Office for its own account until the close of business on the Closing Date, and
the Buyer shall operate such business for its own account after the Closing Date. Thus, except as otherwise specifically provided in this Agreement, items of expense directly attributable to the operation of the Branch Office (which shall not
include any general overhead expenses of Seller) shall be prorated as of the close of business on the Closing Date, whether or not such adjustment would normally be made as of such time. Such expenses shall include, without limitation,
(i) telephone, electric, gas, water, and other utility services (to the extent it is not practicable to transfer such services into the name of Buyer as of the Closing Date), (ii) assessments (including, without limitation, assessments
attributable to Federal Deposit Insurance Corporation (“FDIC”) deposit insurance), (iii) payments due on Assumed Contracts, and (iv) similar expenses related to the Assets transferred hereunder. To the extent any such item has
been prepaid by Seller for a period extending beyond the Closing Date, there shall be a proportionate adjustment in favor of Seller. 
 Section 2.06.    Closing Deliveries. 
 (a) At the Closing, Seller shall deliver to Buyer:

 (i) a Certificate executed by an appropriate officer of Seller stating that (A) the representations and warranties
made by Seller in Article Three hereof are true and correct in all material respects on and as of the Closing Date, with the same effect as though such representations and warranties were made on the Closing Date; and (B) the conditions set
forth in Section 7.02(a) have been satisfied or waived as provided therein and, to the best of Seller’s knowledge, the conditions set forth in Section 7.02(b), (c) and (d) have been satisfied or waived; 
 (ii) a certified copy of currently effective resolutions of the Board of Directors of Seller authorizing Seller’s execution and
delivery of this Agreement and the consummation of the transactions contemplated hereby; 
 (iii) a Certificate of the Office
of the Secretary of State of the State of California, dated a recent date, stating that Seller is in good standing; 
 (iv)
an executed Assignment and Assumption of Deposit Liabilities Agreement in substantially the form set forth in Exhibit 1 to this Agreement; 
 (v) an executed Assignment and Assumption of Contracts Agreement in substantially the form set forth in Exhibit 2 hereto; 
 (vi) evidence of payment to Buyer, by wire transfer in immediately available funds to an account designated by Buyer, of the Estimated Purchase Price, if the Estimated Purchase Price is positive; 
  

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 (vii) an executed Assignment, Transfer and Appointment of Successor Custodian with
respect to the transfer of the IRA Accounts, in substantially the form set forth in Exhibit 3 to this Agreement; 
 (viii) a Bill of Sale in substantially the form of Exhibit 4 to this Agreement; 
 (ix) such other endorsements,
assignments, bills of sale, and other instruments and documents of transfer as Buyer may reasonably require as necessary or desirable to transfer and assign to Buyer good, marketable and insurable title to the Assets; 
 (x) listings of the Deposit Liabilities and the Loans as of the close of business on the Measurement Date in an electronic format
designated by Buyer, which listings shall include account number, outstanding principal balance, accrued interest, and other pertinent information; and 
 (xi) such Records as are capable of being delivered to Buyer (it being understood that after the Closing Date, Seller shall provide Buyer with reasonable access to any Records which are not capable of being
transferred to Buyer at the Closing). 
 (b) At the Closing, Buyer shall deliver to Seller: 
 (i) a Certificate executed by an appropriate officer of Buyer stating that (A) the representations and warranties made by Buyer in
Article Four hereof are true and correct in all material respects on and as of the Closing Date, with the same effect as though such representations and warranties were made on the Closing Date; and (B) the conditions set forth in
Section 7.01(a) have been satisfied or waived as provided therein and, to the best of Buyer’s knowledge, the conditions set forth in Section 7.01(b), (c) and (d) have been satisfied or waived; 
 (ii) a certified copy of currently effective resolutions of the Board of Directors of Buyer authorizing Buyer’s execution and
delivery of this Agreement and the consummation of the transactions contemplated hereby; 
 (iii) a Certificate of the State
of Missouri Division of Finance, dated a recent date, stating that Buyer is in good standing; 
 (iv) an executed Assignment
and Assumption of Deposit Liabilities Agreement in substantially the form set forth in Exhibit 1 to this Agreement; 
 (v) an executed Assignment and Assumption of Contracts Agreement in substantially the form set forth in Exhibit 2 hereto; 
 (vi) evidence of payment to Seller, by wire transfer in immediately available funds to an account designated by Seller, of the Estimated Purchase Price, if the Estimated Purchase Price is negative; and 
 (vii) an executed Assignment, Transfer and Appointment of Successor Custodian with respect to the transfer of the IRA Accounts, in
substantially the form set forth in Exhibit 3 to this Agreement. 
  

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 Article Three 
 Representations and Warranties of Seller 
 Seller hereby makes the following representations and
warranties: 
 Section 3.01.    Organization. Seller is a California banking corporation duly organized, validly
existing and in good standing under the laws of the State of California, the deposits of which are insured by the FDIC. Seller has the corporate power to carry on its business as the same is being conducted at the Branch Office and to consummate the
transactions contemplated by this Agreement. 
 Section 3.02.    Authorization. The Board of Directors of Seller
has, by all appropriate action, approved this Agreement and the transactions contemplated herein and authorized the execution and delivery hereof on its behalf by its duly authorized officers and the performance by Seller of its obligations
hereunder. The sole shareholder of Seller has approved the sale of the Branch Office pursuant to this Agreement. This Agreement has been duly and validly executed and delivered by Seller and constitutes a legal, valid and binding obligation of
Seller, enforceable against Seller in accordance with its terms, subject to bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and to general principles of equity, whether
considered in a proceeding at law or in equity. 
 Section 3.03.    Non-Contravention. The execution and delivery
of this Agreement by Seller do not and, subject to the receipt of all required regulatory approvals and consents and the consent of the lessor under the Lease, the consummation of the transactions contemplated by this Agreement will not, constitute
a breach or violation of or default under any law, rule, regulation, judgment, order, governmental permit or license, agreement, indenture, or instrument by which Seller is bound or to which it is subject, which breach, violation, or default would
have a material adverse effect on any of the Assets or the Deposit Liabilities. 
 Section 3.04.    Consents to
Transaction. The consummation of the transactions contemplated by this Agreement does not require Seller to obtain the prior consent or approval of any person, other than any required approval of bank regulatory authorities and the consent of
the lessor under the Lease. Seller is the owner of all of the Assets and has the power to transfer good and marketable title to the Assets to the Buyer without obtaining the consent or approval of any other party other than the consent of the lessor
under the Lease. 
 Section 3.05.    Compliance with Law. Seller has all material licenses, franchises, permits
and other governmental authorizations that are legally required to enable it to conduct its business at the Branch Office as presently conducted. The business and operations of the Branch Office have been and are being conducted in accordance with
all applicable laws, rules, and regulations of all authorities, including all regulations pertaining to the receipt of customer information required by state and federal law concerning taxpayer identification numbers, social security numbers and the
like, except such conduct as would not have a material adverse effect on the business and operations of the Branch Office. 
 Section
3.06.    Regulatory Enforcement Actions. Seller is not subject to, and has not received any notice or advice that it may be subject to, any order, agreement, memorandum of understanding or other regulatory enforcement action
or proceeding with or by any federal or state agency charged with the supervision or regulation of banks or engaged in the insurance of deposits of banks or any other governmental agency having supervisory or regulatory authority with respect to
Seller which could have a material adverse effect on the ability of Seller to consummate the transactions contemplated by this Agreement or any of the Assets or Deposit Liabilities. 
  

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 Section 3.07.    Community Reinvestment Act. Seller is in compliance in all
material respects with the Community Reinvestment Act and its implementing regulations, and there are no pending actions, proceedings or, to the best of Seller’s knowledge, allegations by any person or regulatory agency which may cause any
regulatory authority to deny any application or impose conditions on the approval of any application required to be filed pursuant to Section 6.01 hereof. 
 Section 3.08.    Litigation. There is no litigation, claim or other proceeding pending or, to the best of Seller’s knowledge, threatened, against Seller (a) arising out of
Seller’s operation of the Branch Office or (b) affecting any of the Records or Assumed Liabilities, in either case which would have a material and adverse effect on the value of the business conducted at the Branch Office or the value of
the Assets, or (c) affecting the ability of Seller to consummate the transactions contemplated by this Agreement. 
 Section
3.09.    Employee Contracts. Seller has not entered into any agreement or otherwise made any commitment or representation to any of the employees of the Branch Office with respect to employment by Buyer, nor has Seller taken
any other action which will cause Buyer to have any other obligation to any of Seller’s employees. 
 Section
3.10.    Financial Information. The books and records of Seller regarding the operations of the Branch Office, the Assets and the Deposit Liabilities, and all other financial and other information supplied or made available
by Seller to Buyer prior to the execution hereof, are accurate and complete in all material respects. 
 Section
3.11.    Deposit Liabilities. Seller has properly accrued interest on the Deposit Liabilities, and the Records accurately reflect such accruals of interest. All of the Deposit Liabilities were originated and are in compliance
with the documents governing the relevant type of Deposit Liability and all applicable federal and state laws, rules, regulations, orders, judgments, injunctions, decrees and awards. 
 Section 3.12.    Brokerage. There are no claims, agreements or obligations for brokerage commissions, finders’ fees,
financial advisory fees or similar compensation incurred by Seller or any of its officers, directors, agents or affiliates in connection with the transactions contemplated by this Agreement which will result in Buyer’s incurring any obligation
or expense. 
 Section 3.13.    Environmental Matters. As used in this Agreement, “Environmental Laws”
means all local, state and federal environmental, health and safety laws and regulations in all jurisdictions in which the Branch Office is located, including, without limitation, the Federal Resource Conservation and Recovery Act, the Federal
Comprehensive Environmental Response, Compensation and Liability Act, the Federal Clean Water Act, the Federal Clean Air Act, and the Federal Occupational Safety and Health Act. 
 Neither the conduct nor operation of the Branch Office by Seller nor, to the best of Seller’s knowledge, the condition of the real property on which
the Branch Office is located violates or violated any Environmental Law in any respect material to the business of Seller, and no condition or event has occurred with respect to such property that, with notice or the passage of time, or both, would
constitute a violation material to the business of Seller, of any Environmental Law or obligate (or potentially obligate) Seller or a successor to Seller to remedy, stabilize, neutralize or otherwise alter the environmental condition of such
property, where the aggregate cost of such actions would exceed $100,000. Seller has not received notice from any person or entity that the operation or condition of the Branch office or such real property are or were in violation of any
Environmental Law, or that Seller is responsible (or potentially responsible) for remedying, or the cleanup of, any pollutants, contaminants, or hazardous or toxic wastes, substances or materials at, on or beneath any such property. 
  

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 Section 3.14.    Representations and Warranties Regarding the Loans.
(i) All of the Loans were made for good, valuable and adequate consideration in the ordinary course of the business of Seller, in accordance with sound lending practices, and they are not subject to any known defenses, rights of rescission,
setoffs or counterclaims, including without limitation, any afforded by usury or truth in lending laws, except as otherwise provided by bankruptcy, insolvency or similar laws; (ii) the notes and other instruments evidencing the Loans and all
forms of pledges and other collateral documents and security agreements are in all material respects enforceable, valid, true and genuine and what they purport to be; (iii) Seller has complied and will through the Closing Date comply with all
laws and regulations relating to the Loans, or to the extent there has not been such compliance, Seller’s failure to comply with such laws and regulations will not materially interfere with the collection of any Loan; (iv) the documents
provided by Seller to Buyer in connection with Buyer’s analysis of the Loans are true, complete and genuine versions thereof which do not intentionally omit information necessary in order to make the information contained therein accurate and
complete; and (v) the terms of the Loans have not been impaired, waived or modified, except by written instruments contained in the loan files which have been made available to Buyer. All of the Loans were made in accordance with Seller’s
customary lending standards in the ordinary course of business. Seller does not make any warranties with respect to the collectibility of the Loans or the creditworthiness of any makers, guarantors or obligors thereof. 
 Article Four 
 Representations and
Warranties of Buyer 
 Buyer hereby makes the following representations and warranties: 
 Section 4.01.    Organization. Buyer is a state bank duly organized, validly existing and in good standing under the laws of
the State of Missouri, the deposits of which are insured by BIF. Buyer has the corporate power to carry on its business as the same is being conducted and to consummate the transactions contemplated by this Agreement. 
 Section 4.02.    Authorization. The Board of Directors of Buyer has, by all appropriate action, approved this Agreement and
the transactions contemplated herein and authorized the execution and delivery hereof on its behalf by its duly authorized officers and the performance by Buyer of its obligations hereunder. This Agreement has been duly and validly executed and
delivered by Buyer and constitutes a legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, subject to bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of
creditors’ rights generally and to general principles of equity, whether considered in a proceeding at law or in equity. No approval of this Agreement by the shareholders of Buyer is required. 
 Section 4.03.    Non-Contravention. The execution and delivery of this Agreement by Buyer do not and, subject to the receipt
of all required regulatory approvals and consents, the consummation of the transactions contemplated by this Agreement will not, constitute a breach or violation of or default under any law, rule, regulation, judgment, order, governmental permit or
license, agreement, indenture, or instrument by which Buyer is bound or to which it is subject, which breach, violation, or default would have a material adverse effect on Buyer or a breach or violation of or a default under the Articles of
Incorporation or Bylaws of Buyer or any material contract or other instrument to which it is a party or by which it is bound. 
  

 9 

 Section 4.04.    Consents to Transaction. The consummation of the transactions
contemplated by this Agreement does not require Buyer to obtain the prior consent or approval of any person, other than any required approval of bank regulatory authorities. 
 Section 4.05.    Litigation. There is no litigation, claim or other proceeding pending or, to the best of Buyer’s
knowledge, threatened, against Buyer affecting the ability of Buyer to consummate the transactions contemplated by this Agreement. 
 Section 4.06.    Financial Information. Since the date of Buyer’s most recent Consolidated Report of Condition and Income as submitted to its primary regulatory authority, there has not occurred any material
adverse change in the financial condition, business, prospects or affairs of Buyer. 
 Section 4.07.    Regulatory
Capital. Buyer is in compliance with all applicable regulatory requirements governing capital as of the date hereof and is “well capitalized” under the prompt corrective action rules, and it has no reason to believe that it will be
unable to obtain the required regulatory approvals for the transactions contemplated herein. 
 Section
4.08.    Community Reinvestment Act. Buyer is in compliance with the Community Reinvestment Act and its implementing regulations, and there are no threatened or pending actions, proceedings, or allegations by any person or
regulatory agency which may cause any regulatory authority to deny any application or impose conditions on the approval of any application required to be filed pursuant to Section 6.01 hereof. 
 Section 4.09.    Brokerage. There are no claims or agreements for brokerage commissions, finders’ fees, financial
advisory fees or similar compensation payable by Buyer or any of its officers, directors, agents or affiliates in connection with the transactions contemplated by this Agreement. 
 Section 4.10.    Regulatory Enforcement Actions. Buyer is not subject to, and has not received any notice or advice that it
may be subject to, any order, agreement, memorandum of understanding or other regulatory enforcement action or proceeding with or by any federal or state agency charged with the supervision or regulation of banks or engaged in the insurance of
deposits of banks or any other governmental agency having supervisory or regulatory authority with respect to Buyer which could have a material adverse effect on the ability of Buyer to consummate the transactions contemplated by this Agreement.

 Article Five 
 Agreements of Seller 
 Section 5.01.    Business in Ordinary Course. 
 (a) Seller shall: (i) conduct its business with respect to the Branch Office and the Loans only in the usual, regular and ordinary course of
business, (ii) service and administer the Loans by employing the same procedures and exercising the same degree of care that it customarily employs and exercises in servicing and administering loans for its own account, and (iii) use
reasonable efforts to maintain good relations with employees at and customers of the Branch Office, including all parties to the Loans. 
  

 10 

 (b) Except as may be required to obtain regulatory approvals or as otherwise may be required by any
regulatory authority, after the date of this Agreement, Seller shall not, without the prior written consent of Buyer (which consent shall not be unreasonably withheld): 
 (i) cause or permit the Branch Office to engage or participate in any material transaction or incur any material obligation except in the
ordinary course of business; 
 (ii) offer any special rate promotions to customers of the Branch Office (unless such
promotions are offered to all customers of Seller), or accept any deposits at rates in excess of those being paid generally at other branches of Seller in the general market area in which the Branch Office is located; 
 (iii) except as otherwise provided herein, transfer to or from the Branch Office and any other office of Seller any deposit liabilities;
or 
 (iv) cancel or accelerate any obligation relating to a Loan or waive any right of material value relating to a Loan.

 (c) Seller shall not, without the prior written consent of Buyer, intentionally engage in any transaction or intentionally take any action
that Seller knows would render untrue in any material respect any of the representations and warranties of Seller contained in Article Three hereof, if such representations and warranties were given immediately following such transaction or action.

 (d) Seller shall promptly notify Buyer in writing of the occurrence of any matter or event known to and directly involving Seller that is
materially adverse to the business, operations, properties, assets, condition (financial or otherwise) or prospects of the Branch Office or the value of the Loans. 
 Section 5.02.    Breaches. Seller shall, in the event it has knowledge of the occurrence, or impending or threatened occurrence, of any event or condition which would cause or constitute a
breach (or would have caused or constituted a breach had such event occurred or been known prior to the date hereof) of any of its representations or agreements contained or referred to herein, give prompt written notice thereof to Buyer and use
reasonable efforts to prevent or promptly remedy the same. 
 Section 5.03.    Consummation of Agreement. Seller
shall use its best efforts to perform and fulfill all conditions and obligations on its part to be performed or fulfilled under this Agreement, to obtain the consent required pursuant to the Lease, and to effect the transactions contemplated by this
Agreement in accordance with the terms and provisions hereof. Seller shall furnish to Buyer in a timely manner all information, data and documents in the possession of Seller reasonably requested by Buyer as may be required to obtain all necessary
regulatory or other approvals of the transactions contemplated by this Agreement and shall otherwise cooperate fully with Buyer to carry out the purpose and intent of this Agreement. 
 Section 5.04.    Access to Information. From and after the date of this Agreement through the Closing Date, Seller shall give
Buyer reasonable access, in a manner which will avoid disruption or interference with Seller’s normal operations, to the Branch Office, and shall disclose and make available to Buyer all books, documents, papers and records relating to the
Branch Office, the Assets, and the operations, obligations and liabilities associated with the Branch Office, including but not limited to, all books of account (including the general ledger), tax records, material contracts and agreements, filings
with any regulatory authority, litigation files, and any other business activities or prospects in which Buyer may have a reasonable and legitimate interest in furtherance of the 

  

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transactions contemplated by this Agreement. Within thirty (30) days from the date of this Agreement, Seller will provide Buyer with copies of the forms
of signature cards, deposit account forms, Regulation E disclosures, Truth-in-Savings disclosures, deposit account agreements, and IRA custodian agreements and beneficiary designations, as well as the forms of any other instruments or
agreements presently in use at the Branch Office in connection with the Deposit Liabilities. All of such documents shall be in the form used by Seller for new customers as of the date of this Agreement. Buyer will hold any such information which is
nonpublic in confidence in accordance with the provisions of Section 11.01 hereof. 
 Section
5.05.    Environmental Reports. Seller shall provide to Buyer, as soon as reasonably practicable but in no event more than forty five (45) days after the date of this Agreement, a report of a phase one environmental
investigation of the real property on which the Branch Office is located. If required by the phase one investigation, in Buyer’s reasonable opinion, Seller shall obtain and provide to Buyer a report of a phase two investigation on such property
requiring such additional study. Buyer shall have fifteen (15) business days from the receipt of any such phase two report to notify Seller of any objection to the contents of such report. Should the cost of taking all remedial and corrective
actions and measures (i) required by applicable law or (ii) recommended or suggested by such report or prudent in light of serious life, health or safety concerns, in the aggregate, exceed the sum of $100,000 as reasonably estimated by an
environmental expert retained for such purpose by Buyer and reasonably acceptable to Seller, or if the cost of such actions and measures cannot be so reasonably estimated by such expert to be $100,000 or less with a reasonable degree of certainty,
then Buyer shall have the right pursuant to Section 8.05 hereof, for a period of ten (10) business days following receipt of such estimate or indication that the cost of such actions and measures can not be so reasonably estimated, to
terminate this Agreement, which shall be Buyer’s sole remedy in such event. Upon such a termination, the remaining provisions of this Agreement shall be null and void. 
 Section 5.06.    Transfer of Data. Seller will within thirty (30) days following the date hereof, approximately seven
(7) weeks prior to the estimated Closing Date and immediately prior to the Closing Date, at its sole expense, electronically transfer computer tapes, test files and the like associated with the account data with respect to the Deposit
Liabilities and the Loans (with the first delivery to include electronic master files). The format for the data so transferred will be the format normally used by Seller in the electronic processing of its accounts. Buyer shall be responsible for
any expense of converting the data to a format used by Buyer. Seller shall be responsible for any fees, if any, owing to its data processor for terminating processing at the Branch Office. From the date hereof through the Closing Date, Seller shall
cooperate and work with Buyer to complete the tasks required to facilitate the conversion of the Deposit Liabilities and the accounts associated with the Loans. Such tasks include, but are not limited to, providing Buyer with updated reports and
other items as are necessary to complete the conversion process and related testing procedures. Seller shall provide a written report to Buyer, in a format acceptable to Buyer, detailing account data with respect to the Deposit Liabilities and the
accounts associated with the Loans on the Closing Date. Within thirty (30) days after the date hereof, Seller shall provide Buyer with initial reports and related documentation of all such accounts in a format acceptable to Buyer. Seller agrees
to reasonably cooperate in resolving any conversion-related issues arising from the conversion of the Deposit Liabilities for a period of ninety (90) days following the date that the conversion is completed. 
  

 12 

 Section 5.07.    Further Assurances. On and after the Closing Date, Seller
shall give such reasonable further assurances to Buyer and, upon Buyer’s request, shall (i) execute, acknowledge and deliver all such acknowledgments and other instruments and take such further action as may be necessary and appropriate to
effectively transfer the Assets and the Deposit Liabilities to Buyer in accordance with the terms of this Agreement, and (ii) furnish information reasonably requested by Buyer with respect to historical records of the Assets and Deposit
Liabilities, subject to payment by Buyer of standard rates charged by Seller for providing such information. 
 Section
5.08.    Covenant Not to Compete. For the purposes of this Agreement, an “Affiliate” of a person means another person that (i) controls such first person, (ii) is controlled by such first person or an
immediate family member of such person, (iii) is under common control with such first person, or (iv) is an immediate family member of such person. Seller hereby covenants and agrees that from the date hereof until the earlier to occur of
the termination of this Agreement or December 31, 2008, neither it nor any of its Affiliates will: 
 (a) open,
purchase, operate, control or otherwise have a controlling interest in any office that accepts deposits insured by the FDIC and is located within five (5) miles of the Branch Office (the “Restricted Area”); 
 (b) establish an electronic funds transfer terminal of any type or description within the Restricted Area; provided,
however, Seller and its Affiliates shall be permitted to participate in automated teller machine networks operated by a party not affiliated with Seller and its Affiliates and having locations within the Restricted Area; or 
 (c) target and solicit for deposit accounts or deposit relationships residents of the Restricted Area utilizing any customer or mailing
list that consists primarily of residents of the Restricted Area; provided, however, that the restriction in this subsection (c) shall not restrict statement stuffers or other similar communications directed to persons who remain
customers of Seller or an Affiliate of Seller after the Closing Date, or newspaper, radio or television advertisements that do not specifically target residents of the Restricted Area, or mailers that include residents of the Restricted Area that
are primarily directed at residents outside the Restricted Area, or deposits from borrowers of Seller who are in the Restricted Area. 
 None
of the foregoing restrictions shall apply to an office or offices acquired by Seller or any of its Affiliates as part of the acquisition of another depository institution or depository institution holding company or to the acquisition, operation or
control of such offices by Seller or its Affiliates. 
 Article Six 
 Agreements of Buyer 
 Section 6.01.    Regulatory Approvals. Buyer
shall file all regulatory applications required in order to consummate the transactions contemplated by this Agreement, including but not limited to the necessary applications for the prior approval of the FDIC and the California Department of
Financial Institutions within 30 days after the date of this Agreement. Buyer shall use its best efforts to file all documents required to obtain all necessary approvals required to carry out the transactions contemplated by this Agreement, shall
pay all expenses incident thereto and shall use its best efforts to obtain all such approvals on a timely basis. Buyer shall provide to Seller copies of all such applications and approvals. 
  

 13 

 Section 6.02.    Breaches. Buyer shall, in the event it has knowledge of the
occurrence, or impending or threatened occurrence, of any event or condition which would cause or constitute a breach (or would have caused or constituted a breach had such event occurred or been known prior to the date hereof) of any of its
representations or agreements contained or referred to herein, give prompt written notice thereof to Seller and use reasonable efforts to prevent or promptly remedy the same. 
 Section 6.03.    Consummation of Agreement. Buyer shall use its best efforts to perform and fulfill all conditions and
obligations on its part to be performed or fulfilled under this Agreement and to effect the transactions contemplated by this Agreement in accordance with the terms and conditions hereof. 
 Section 6.04.    Access to Information. Buyer shall disclose and make available to Seller such information of Buyer in which
Seller may have a reasonable and legitimate interest in furtherance of the transactions contemplated by this Agreement. Seller will hold any such information which is nonpublic in confidence in accordance with the provisions of Section 11.01 of
this Agreement. 
 Article Seven 
 Conditions Precedent 
 Section 7.01.    Conditions to Seller’s Obligations.
Seller’s obligations to effect the transactions contemplated by this Agreement shall be subject to the satisfaction (or waiver by Seller) prior to or on the Closing Date of the following conditions: 
 (a) Buyer shall have performed and complied in all material respects with all of its obligations and agreements hereunder required to be
performed prior to the Closing Date under this Agreement; 
 (b) No temporary restraining order, preliminary or permanent
injunction or other order issued by any court of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the transactions contemplated by this Agreement shall be in effect, nor shall any proceeding by any bank
regulatory authority or other governmental agency seeking any of the foregoing be pending. There shall not be any action taken, or any statute, rule, regulation or order enacted, entered, enforced or deemed applicable to the transactions
contemplated by this Agreement which makes the consummation of such transactions illegal; 
 (c) All necessary regulatory
approvals, consents, authorizations and other approvals required by law for consummation of the transactions contemplated by this Agreement shall have been obtained, and all waiting periods required by law shall have expired; and 
 (d) Seller shall have received all documents required to be received from Buyer on or prior to the Closing Date, all in form and
substance reasonably satisfactory to Seller. 
 Section 7.02.    Conditions to Buyer’s
Obligations. Buyer’s obligations to effect the transactions contemplated by this Agreement shall be subject to the satisfaction (or waiver by Buyer) prior to or on the Closing Date of the following conditions: 
 (a) Seller shall have performed and complied in all material respects with all of its obligations and agreements required to be performed
prior to the Closing Date under this Agreement; 
  

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 (b) No temporary restraining order, preliminary or permanent injunction or other order
issued by any court of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the transactions contemplated by this Agreement shall be in effect, nor shall any proceeding by any bank regulatory authority or
other governmental agency seeking any of the foregoing be pending. There shall not be any action taken, or any statute, rule, regulation or order enacted, entered, enforced or deemed applicable to the transactions contemplated by this Agreement
which makes the consummation of such transactions illegal; 
 (c) All necessary regulatory approvals, consents,
authorizations and other approvals required by law for consummation of the transactions contemplated by this Agreement shall have been obtained, and all waiting periods required by law shall have expired; and 
 (d) Buyer shall have received all documents required to be received from Seller on or prior to the Closing Date, all in form and
substance reasonably satisfactory to Buyer. 
 Article Eight 
 Termination or Abandonment 
 Section 8.01.    Mutual
Agreement. This Agreement may be terminated by the mutual written agreement of the parties at any time prior to the Closing Date. 
 Section 8.02.    Breach of Representations or Agreements. In the event that there is a material breach of any of the representations and warranties or agreements of Seller or Buyer, which breach is not cured
within thirty (30) days after notice to cure such breach is given to the breaching party by the non-breaching party, then the non-breaching party may terminate and cancel this Agreement by providing written notice of such action to the other
party hereto. 
 Section 8.03.    Failure of Conditions. In the event that any of the conditions to the
obligations of either party are not satisfied or waived on or prior to the Closing Date, and if any applicable cure period provided in Section 8.02 of this Agreement has lapsed, then the party for whose benefit the condition exists may
terminate and cancel this Agreement by delivery of written notice of such action to the other party on such date. 
 Section
8.04.    Denial of Regulatory Approval. If any regulatory application filed pursuant to Section 6.01 of this Agreement should be finally denied or disapproved by a bank regulatory authority, then this Agreement thereupon
shall be deemed terminated and canceled; provided, however, that a request for additional information from or undertaking by Buyer, as a condition for approval, shall not be deemed to be a denial or disapproval so long as Buyer diligently
provides the requested information or undertaking. Buyer shall make a good faith effort to respond in a timely manner to any requests made by regulatory authorities with respect to applications filed pursuant to Section 6.01. If any regulatory
agency requests that a required application be withdrawn and Buyer, in consultation with Seller, cannot effectively respond to regulatory concerns which have been raised, then the applicable regulatory application shall be deemed to have been
denied. In the event an application is denied pending an appeal, petition for review, or similar such act on the part of Buyer (hereinafter referred to as the “appeal”), then the application will be deemed denied unless Buyer prepares and
timely files such appeal and continues the appellate process for purposes of obtaining the necessary approval. 
  

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 Section 8.05.    Environmental Reports. Buyer may terminate this Agreement to
the extent provided in Section 5.05 by giving written notice of such termination to Seller. 
 Section
8.06.    Elapsed Time. If the transactions contemplated hereby are not completed on or before December 31, 2006, then either party may terminate this Agreement by delivering a written notice of such termination to the other
party, unless the failure of the Closing to have occurred shall be due to a breach of this Agreement by the party seeking to terminate this Agreement. 
 Article Nine 
 Transitional and Post-Closing Matters 
 Section 9.01.    Notification to Customers and Transitional Matters. Buyer shall: 
 (a) On such date as the parties may agree, or in the absence of such an agreement on the date which is thirty (30) days (or if such
date shall not be a business day, the next preceding business day) prior to the expected Closing Date, Seller and Buyer will notify all Branch Customers whose accounts are to be conveyed to and assumed by Buyer of the pending transfer of the
accounts. This notice will be in a form acceptable to both parties and in compliance with all federal regulations. The cost of such notice shall be borne by Buyer. Seller will cooperate with Buyer in providing such other notices to customers of the
Branch Office as Buyer may reasonably request. In addition, Buyer may, at its own expense, after the date on which all regulatory approvals contemplated by this Agreement have been received by the appropriate parties (the “Approval Date”)
or earlier with the written consent of Seller, communicate with and deliver information, brochures, bulletins, press releases and other communications to Branch Customers concerning the transactions contemplated by this Agreement and concerning the
business and operations of Buyer; provided, however, that all such communications shall be subject to the approval by Seller, which shall not be unreasonably withheld. 
 (b) During the sixty (60) day period following the Closing Date, Buyer shall pay, in accordance with law and customary banking
practices, all properly drawn and presented checks, and automated clearinghouse debits and credits, ATM/debit card deposits and withdrawals, drafts and withdrawal orders presented to Buyer by mail, over the counter through the check clearing system
of the banking industry, by depositors of the Deposit Liabilities on checks, drafts or withdrawal order forms provided by Seller, and in all other respects, to discharge, in the usual course of the banking business, the duties and obligations of
Seller with respect to the balances due and owing to the Branch Customers whose deposits are assumed by Buyer. 
 (c) If any
of such depositors draws a check, has or makes an automated clearinghouse generated debit or credit with respect to his, her or its account, makes an ATM/debit card deposit or withdrawal, draft or withdrawal order against the Deposit Liabilities,
including accrued interest, which is presented or charged to Seller within sixty (60) days after the Closing Date, Seller may pay the same and Buyer will reimburse Seller for any such payment or charges. Buyer and Seller shall settle within
twenty-four (24) hours any such deposits paid by Seller and any checks, drafts or orders of withdrawal presented by Seller to Buyer so long as presentment is made by 3:00 p.m. Pacific time on the next business day following the day of
presentment of such item by the depositor whose account is being assumed by Buyer. In order to reduce the continuing charges to Seller through the check clearing system of the banking industry which will result from check forms of Seller being used
after the Closing Date by the depositors whose accounts are assumed, Buyer agrees, at its sole cost and expense, and without charge to such depositors, to notify such depositors, as soon as practicable after the Closing Date, of Buyer’s
assumption of the Deposit Liabilities and to furnish each depositor with checks on the forms of Buyer, and with instructions to utilize Buyer’s checks and to destroy unused checks of Seller. 
  

 16 

 (d) For a period of sixty (60) days after the Closing Date, Seller (within
twenty-four (24) hours of receipt thereof) shall deliver to Buyer a detailed list of checks presented to Seller for payment which are drawn on accounts which are included in the Deposit Liabilities. As soon thereafter as is reasonably
practicable, but no later than 3:00 p.m. Pacific time on the next business day following the day of presentment, Seller shall make available to Buyer the checks detailed on such lists along with an invoice for its expenses reasonably incurred in
performing its obligations under this subsection. Buyer shall reimburse Seller for checks and invoiced expenses via wire transfer by the close of business on the business day the checks have been made available to Buyer. After the end of such sixty
(60) day period, Seller will dishonor and return such items. 
 (e) As of the Closing Date, all ATM/debit access cards
issued by Seller to Branch Customers who will not have ATM/POS-accessible accounts with Seller after the Closing Date, if any, will be void. In connection with the notices to Branch Customers described above, Seller will notify Branch Customers in
writing at least thirty (30) calendar days prior to the Closing Date of such cancellation of the ATM/debit access cards and check guarantee cards, effective on the Closing Date at a time to be agreed upon by Buyer and Seller. Within thirty
(30) days after the date of this Agreement, Seller shall provide Buyer with the information reasonably required, prior to the Closing Date, to accommodate the processing of ATM/debit cards which may be issued but not activated prior to the
Closing Date. 
 (f) Seller and Buyer will use reasonable efforts to transfer all ACH arrangements to Buyer as soon as
possible following the Closing Date. Seller will return all ACH transactions beginning ninety (90) days following the Closing Date. 
 (g) Withholding Obligations will be handled as follows: 
 (i) Withholding Obligations
required to be remitted to a governmental agency prior to the Closing Date will be withheld and remitted by Seller; and 
 (ii) Withholding Obligations required to be remitted to a governmental agency on or after the Closing Date will be remitted by Buyer. At the Closing, Seller will remit to Buyer all sums withheld by Seller with respect to Withholding
Obligations to be remitted to governmental agencies on or after the Closing Date. 
 Section 9.02.    Information
Reporting. With respect to the Loans and Deposits purchased and assumed by Buyer pursuant to this Agreement, Seller shall be responsible for reporting to the customer and to the Internal Revenue Service (and any state or local taxing authority
as required) all interest paid or earned through the Closing Date, and Buyer shall be responsible for such reporting of all such interest paid after the Closing Date. 
 Section 9.03.    Software Transfer Fees. To the extent that the Assets include software, Buyer will be responsible for any costs of transferring such software or licenses relating thereto,
including notification of software vendors and the payment of any applicable transfer fees. 
 Section
9.04.    Customer Service. After the Closing Date, Buyer will be responsible for all customer service for all customers of the Branch Office, subject to the performance by Seller of its obligations after the Closing as set
forth in this Agreement. 
  

 17 

 Section 9.05.    Insurance. No insurance policies are to be prorated. Buyer
will procure or maintain its own insurance with respect to the Branch Office after the Closing Date, and Seller shall have no responsibility to maintain insurance with respect to the Assets or the operations of the Branch Office after the Closing
Date. 
 Article Ten 
 Indemnification 
 Section 10.01.    Indemnification of Buyer. Seller shall indemnify, hold
harmless and defend Buyer and its directors, officers, employees, shareholder, affiliates and agents from and against any and all damage, loss, liability, cost, claim, and expense (including reasonable legal fees and expenses) incurred or suffered
by Buyer as a result of (i) Seller’s operation of the Branch Office through the Closing Date, (ii) any breach of a representation set forth in Article Three hereof, (iii) any breach of any obligation of Seller hereunder, and
(iv) any liability or obligation of Seller that is not an Assumed Liability. 
 Section 10.02.    Indemnification
of Seller. Buyer shall indemnify, hold harmless and defend Seller and its directors, officers, employees, shareholder, affiliates and agents from and against any and all damage, loss, liability, cost, claim, and expense (including reasonable
legal fees and expenses) incurred or suffered by Seller as a result of (i) any breach of a representation set forth in Article Four hereof, (ii) any breach of any obligation of Buyer hereunder, (iii) Buyer’s operation of the
Branch Office after the Closing Date, and (iv) any Assumed Liability. 
 Article Eleven 
 General 
 Section
11.01.    Confidential Information. The parties acknowledge the confidential and proprietary nature of the “Information” (as herein defined) that has heretofore been exchanged and that will be received from each
other hereunder and agree to hold and keep, and to cause their respective agents, representatives, shareholders, affiliates, employees and consultants to hold and keep, such Information confidential. Such Information will include any and all
financial, technical, commercial, marketing, customer or other information concerning the business, operations and affairs of a party or the party’s affiliates that may be provided to the other, irrespective of the form of the communication of
such information, by such party’s employees or agents. Such Information shall not include information that is or becomes generally available to the public other than as a result of a disclosure by a party or its representatives in violation of
this Agreement. The parties agree that the Information will be used solely for the purposes contemplated by this Agreement and that such Information will not be disclosed to any person other than employees and agents of a party who are directly
involved in evaluating the transaction. The Information shall not be used by a party or its affiliates in any way detrimental to the other party or its affiliates, including use directly or indirectly in the conduct of a party’s business or any
business or enterprise in which such party may have an interest, now or in the future, and whether or not now in competition with such other party. 
 Section 11.02.    Publicity. Buyer and Seller shall cooperate with each other in the development and distribution of all news releases and other public disclosures concerning this Agreement and the transactions
contemplated herein and shall not issue any news release or make any other public disclosure without the prior consent of the other party, unless such is required by law upon the written advice of counsel or is in response to published newspaper or
other mass media reports regarding the transaction contemplated hereby, in which such latter event the parties shall consult with each other regarding such responsive public disclosure. 
  

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 Section 11.03.    Return of Documents. Upon termination of this Agreement
without the transactions contemplated by this Agreement becoming effective, each party (i) shall deliver to the other originals and all copies of all Information made available to such party, (ii) will not retain any copies, extracts or
other reproductions in whole or in part of such Information, and (iii) will destroy all memoranda, notes and other writings prepared by either party based on the Information. 
 Section 11.04.    Notices. Any notice or other communication shall be in writing and shall be deemed to have been given or
made on the date of delivery, in the case of hand delivery, or three (3) business days after deposit in the United States Registered Mail, postage prepaid, or upon receipt if transmitted by facsimile telecopy or any other means, addressed (in
any case) as follows: 
 (a) if to Buyer: 
 First Bank 
 600 James S. McDonnell Blvd. 
 Mail Stop—M1-199-014 
 Hazelwood, Missouri 63042 
 Attention: Allen H. Blake 
 Facsimile: (314) 592-6621 
 with copies to: 
 Peter D. Wimmer, Esq. 
 Senior Vice President and General Counsel 
 First Banks, Inc. 
 Mail Stop M1-199-014 
 Hazelwood, Missouri 63042 
 Facsimile: (314) 592-6621 
 and 
 John S. Daniels 
 Attorney at Law 
 3333 Lee Parkway, Suite 1200 
 Dallas, Texas 75219 
 Facsimile: (214) 889-5196 
 (b) if to Seller: 
 First Bank of Beverly Hills 
 23901 Calabasas Road, Suite 1050 
 Calabasas, California 91302 
 Attention: Larry B. Faigin 
 Facsimile: (818) 223-5487 
  

 19 

 with a copy to: 
 Troy & Gould, P.C. 
 1801 Century Park East, Suite 1600 
 Los Angeles, California 90067 
 Attention: Alan B. Spatz 
 Facsimile: (310) 789-1431 
 or to such other address as any party may from time to time designate by notice to the
others. 
 Section 11.05.    Expenses. Except as otherwise specifically provided herein, Seller and Buyer each
shall pay all of their own out-of-pocket expenses incurred in connection with this Agreement, including, without limitation, accounting fees, legal fees and data processing charges, if any, whether or not the transactions contemplated by this
Agreement are consummated. 
 Section 11.06.    Entire Agreement. This Agreement constitutes the entire agreement
between the parties and supersedes and cancels any and all prior discussions, negotiations, undertakings, agreements in principle and other agreements between the parties relating to the subject matter hereof. 
 Section 11.07.    Headings and Captions. The captions of Articles and Sections hereof are for convenience only and shall not
control or affect the meaning or construction of any of the provisions of this Agreement. 
 Section 11.08.    Waiver,
Amendment or Modification. The conditions of this Agreement that may be waived may only be waived by notice from the party waiving such condition to the other party. The failure of any party at any time or times to require performance of any
provision hereof shall in no manner affect the right at a later time to enforce the same. This Agreement shall not be amended or modified except by a written document duly executed by the parties hereto. 
 Section 11.09.    Rules of Construction. Unless the context otherwise requires: (a) a term has the meaning assigned to
it; (b) “or” is not exclusive; and (c) words in the singular may include the plural and in the plural include the singular. 
 Section 11.10.    Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which shall be deemed one and the same instrument. 
 Section 11.11.    Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. There shall be no third party beneficiaries hereof, except as provided in Article Ten of this Agreement. 
 Section 11.12.    Governing Law and Assignment. This Agreement shall be governed by the laws of the State of Missouri, without regard to any applicable conflicts of law, and applicable
federal laws and regulations. This Agreement may not be assigned by either of the parties hereto. 
 Section
11.13.    Survival of Warranties. All representations and warranties made herein shall survive the Closing Date for a period of one year. No action, suit or proceeding may be instituted by one party against the other for
breach of a representation or warranty if not instituted within such one-year period. 
  

 20 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year
first above written. 
  

			
	FIRST BANK
	
	
	
	
	
	
		
	 By
	 	  
	 Its
	 	  
	
	
	
	 FIRST BANK OF BEVERLY HILLS

	
	
	
	
	
	
	
		
	 By
	 	  
	 Its
	 	  

  

 21 

 EXHIBIT 1 
 FORM OF 
 ASSIGNMENT AND ASSUMPTION OF DEPOSIT LIABILITIES AGREEMENT 
 This ASSIGNMENT AND ASSUMPTION OF DEPOSIT LIABILITIES AGREEMENT is made and entered into this
                day of                     , 2006, by and between
FIRST BANK (“Buyer”), and FIRST BANK OF BEVERLY HILLS (“Seller”). 
 RECITALS 
 WHEREAS, Seller and Buyer have entered into a Branch Purchase and Assumption Agreement dated as of August     , 2006 (the
“Agreement”); and 
 WHEREAS, Seller desires to transfer and Buyer desires to assume the Deposit Liabilities maintained at
or for the branch office of Seller located at 175 South Beverly Drive, Beverly Hills, California; and 
 WHEREAS, Seller and Buyer
have obtained all governmental and regulatory approvals required in connection with the consummation of the transactions contemplated by the Agreement. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing, the mutual covenants herein
contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer hereby agree as follows: 
 1. Capitalized terms used but not defined herein shall have the meanings set forth in the Agreement. 
 2. As
of the close of business on the Closing Date, Seller hereby assigns, and Buyer hereby assumes, liability for the Deposit Liabilities together with accrued interest thereon. 
 3. By execution hereof, Buyer agrees to be bound by all of the terms, covenants and conditions of the Agreement, and Buyer agrees to pay, discharge and
perform, in the usual course of the banking business and on a timely basis, the duties and obligations of Seller with respect to the balances due and owing to the depositors with respect to the Deposit Liabilities. 
 4. All of the savings accounts and savings certificates of Seller assumed by Buyer at the Closing shall become savings accounts and savings certificates
of Buyer of the same amount, terms, rate and maturity. 
 5. Nothing contained herein shall preclude Buyer from changing the terms or rates
with respect to the Deposit Liabilities after the date hereof if it may lawfully do so. 
  

 IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement effective as of the date first
written above. 
  

			
	Seller:
	
	 FIRST BANK OF BEVERLY HILLS

	
	
		
	 By:
	 	  
		
	 Print Name:
	 	  
		
	 Title:
	 	  
	
	
	
	
	
	
	 Buyer:

	
	 FIRST BANK

	
	
		
	 By:
	 	  
		
	 Print Name:
	 	  
		
	 Title:
	 	  

  

 2 

 EXHIBIT 2 
 FORM OF 
 ASSIGNMENT AND ASSUMPTION OF CONTRACTS AGREEMENT 
  
 This ASSIGNMENT AND ASSUMPTION OF CONTRACTS AGREEMENT is made and entered
into this                 day of                     , 2006, by and
between FIRST BANK (“Buyer”), and FIRST BANK OF BEVERLY HILLS (“Seller”). 
 RECITALS 
 WHEREAS, Seller and Buyer have entered into a Branch Purchase and Assumption Agreement dated as of August     , 2006 (the
“Agreement”); and 
 WHEREAS, Seller desires to transfer and Buyer desires to assume certain contracts maintained at or for
the branch office of Seller located at 175 South Beverly Drive, Beverly Hills, California; and 
 WHEREAS, Seller and Buyer have
obtained all governmental and regulatory approvals required in connection with the consummation of the transactions contemplated by the Agreement. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing, the mutual covenants herein contained, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller hereby assigns, transfers and sets over to Buyer all of Seller’s rights and interest in and to, and Buyer does hereby assume and agree to pay,
discharge and perform, on a timely basis, all of Seller’s liabilities and obligations with respect to, the Assumed Contracts, as defined in the Agreement. 
 This Assignment and Assumption of Contracts Agreement shall be binding upon and shall inure to the benefit of Seller, Buyer and each of their respective successors and assigns, and shall be subject to the terms and
conditions of the Agreement. In the event of a conflict between any of the terms and provisions hereof and the Agreement, the Agreement shall be deemed to control. 
 This Assignment and Assumption of Contracts Agreement, and the rights and obligations of the parties hereunder, shall be governed by and construed in accordance with the laws of the State of Missouri and any
applicable federal laws and regulations. 
  

 IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement effective as of the date first
written above. 
  

			
	Seller:
	
	 FIRST BANK OF BEVERLY HILLS

	
	
		
	 By:
	 	  
		
	 Print Name:
	 	  
		
	 Title:
	 	  
	
	
	
	
	
	
	 Buyer:

	
	 FIRST BANK

	
	
		
	 By:
	 	  
		
	 Print Name:
	 	  
		
	 Title:
	 	  

  
  

 25 

 EXHIBIT 3 
 FORM OF ASSIGNMENT, TRANSFER AND APPOINTMENT 
 OF SUCCESSOR CUSTODIAN FOR IRA ACCOUNTS

 WHEREAS, FIRST BANK OF BEVERLY HILLS (“Seller”) and FIRST BANK (“Buyer”) are parties to that certain
Branch Purchase and Assumption Agreement dated August     , 2006 (the “Agreement”), pursuant to which Seller has agreed to assign and Buyer has agreed to assume the custodianship of certain of Seller’s IRA Accounts
(as such term is defined in the Agreement) maintained [under the custody of/as trustee by] Seller, and Buyer has agreed to assume such IRA Accounts upon the terms and conditions contained in the Agreement; 
 NOW, THEREFORE, for good and valuable consideration paid by Buyer, Seller does hereby sell, assign, and transfer to Buyer all of Seller’s right,
title and interest as [trustee or custodian] in: 
 1. The IRA Accounts as of the close of business on the Closing Date (as
such term is defined in the Agreement); and 
 2. All records, files and correspondence, and documentation relating to the
IRA Accounts. 
 Buyer hereby represents that it has adopted or will adopt the Individual Retirement Trust Account documents consistent with
the requirements of the Internal Revenue Service (the “Plan”), and that Buyer assumes the responsibilities as Successor Custodian. Buyer warrants to Seller that it will adhere to all provisions contained in the Plan as now written, and
shall only amend such applicable plan to the extent permitted by its terms or as otherwise permitted by law. Based upon the representations and warranties made by Buyer, Seller hereby appoints Buyer as Successor Custodian. 
 IN WITNESS WHEREOF, Seller and Buyer have caused this Assignment to be executed by their duly authorized officers as of this     day
of                    , 2006. 
  

			
	Seller:
	
	 FIRST BANK OF BEVERLY HILLS

	
	
		
	 By:
	 	  
		
	 Print Name:
	 	  
		
	 Title:
	 	  
	
	
	
	
	
	
	 Buyer:

	
	 FIRST BANK

	
	
		
	 By:
	 	  
		
	 Print Name:
	 	  
		
	 Title:
	 	  

  
  

 EXHIBIT 4 
 FORM OF BILL OF SALE 
 FIRST BANK OF BEVERLY HILLS (“Seller”), for good and valuable
consideration paid and delivered by FIRST BANK (“Buyer”), the receipt of which is hereby acknowledged, does sell to Buyer the Assets (as such term is defined in that certain Branch Purchase and Assumption Agreement dated August
    , 2006 between Seller and Buyer) (the “Assets”), including but not limited to the assets listed on any schedules attached hereto. 
 Receipt of delivery of the Assets is hereby acknowledged. 
 IN WITNESS WHEREOF, Seller and Buyer have caused
this Assignment to be executed by their duly authorized officers as of this             day of
                    , 2006. 
  

			
	Seller:
	
	 FIRST BANK OF BEVERLY HILLS

	
	
		
	 By:
	 	  
		
	 Print Name:
	 	  
		
	 Title:
	 	  
	
	
	
	
	
	
	 Buyer:

	
	 FIRST BANK

	
	
		
	 By:
	 	  
		
	 Print Name:
	 	  
		
	 Title:
	 	  

 SCHEDULE A 
  
  
 DEPOSIT LIABILITIES 
  

 SCHEDULE B 
  
  
 PERSONAL PROPERTY 
  

 SCHEDULE C 
  
  
 LOANS 

 SCHEDULE D 
  
  
 ASSUMED CONTRACTSForm of Stock Appreciation Right Agreement dated September 28, 2006

 EXHIBIT 10.2 
 BEVERLY HILLS BANCORP INC. 
 STOCK APPRECIATION RIGHT CERTIFICATE (SAR) 
 THIS IS TO CERTIFY that Beverly Hills Bancorp Inc., a Delaware corporation (the “Company”), has granted to the director and/or officer
named below (“Holder”) a stock appreciation right (“SAR”) with respect to the number of shares of the Company’s common stock (the “Common Stock”) set forth below (the “Shares”)
to receive cash as of each exercise equal to the excess of the fair market value of a Share at that time over the fair market value of a Share at the Date of Grant of the SAR (the “Base Value”) upon the terms and conditions set
forth below: 
  

					
	 Name of Holder:
	 	  	 	
			
	 Address of Holder:
	 	  	 	
			
	 Number of Shares:
	 	                 shares
	 	
			
	 Base Value (Fair Market
     Value as of the Date
     of Grant) Per Share:
	 	  	 	  
		
	 Date of Grant:
	 	 September 28, 2006

		
	 Expiration Date:
	 	 September 28, 2011

 Exercise Schedule: The SAR shall become exercisable (“vest”) as follows:

  

			
	Exercise Date	  	No. of Shares
	 September 28, 2007
	  	
	 September 28, 2008
	  	
	 September 28, 2009
	  	

 IN WITNESS WHEREOF, the Company has granted to Holder the SAR as of the Date of Grant set forth
above. 
  

					
	 HOLDER
  
  
  
	 		  	 BEVERLY HILLS BANCORP INC.
 23901 Calabasas Road, Suite 1050
 Calabasas, CA 91302
  
  
 By                                      
                                        
                                  
 Its    Chairman of the Board

  

 STOCK APPRECIATION RIGHT AGREEMENT 
 This STOCK APPRECIATION RIGHT AGREEMENT (this “Agreement”) is made and entered into as of the Date of Grant set forth in the Stock
Appreciation Right Certificate to which this Agreement is attached (the “Certificate”) by and between Beverly Hills Bancorp Inc., a Delaware corporation (the “Company”), and the holder (the
“Holder”) named in the Certificate. 
 Capitalized terms not otherwise defined in this Agreement shall have the meanings
ascribed to them in the Certificate. 
 The Company and Holder agree as follows: 
 1. Grant of SAR. The Company hereby grants to Holder, upon the terms and subject to the conditions set forth in this Agreement, a
stock appreciation right (the “SAR”) to receive upon each exercise cash in the amount equal to the number of Shares with respect to which the SAR is exercised multiplied by the amount by which the Fair Market Value exceeds the Base
Value set forth in the Certificate. 
 2. Fair Market Value. The “Fair Market Value” shall be
determined as follows: 
 2.1. If on the date of exercise (or deemed exercise) of the SAR the Common Stock is listed or
traded on a national securities exchange, the Nasdaq Stock Market, the OTC Bulletin Board, or similar trading market, or is regularly quoted by a recognized securities dealer and selling prices are reported, the Fair Market Value shall be the
closing price of the Common Stock on the date of exercise or if, a closing sales price is not reported, the Fair Market Value shall be the mean between the high bid and low asked quotations for the Common Stock on the date of exercise. If the
exercise occurs on a date that the securities markets are not open, the Fair Market Value shall be determined as of the first date after the date of exercise that the securities markets are open. 
 2.2. If the Fair Market Value cannot be determined in accordance with Section 2.1, the Fair Market Value shall be determined in good
faith by the Board of Directors (or a committee of the Board authorized to make such determination) (the “Administrator”), with reference to various factors determined to be appropriate by the Administrator, which might include the
Company’s net worth, amounts paid for stock of the Company in financings involving sophisticated investors, prospective earning power, dividend-paying capacity, and other relevant factors, including the goodwill of the Company, the economic
outlook in the Company’s industry, the Company’s position in the industry, the Company’s management, and the values of stock of other corporations in the same or a similar line of business. 
 3. Vesting 
 3.1. The SAR shall “vest” and become exercisable in installments upon and after the date[s] set forth under the caption “Exercise Schedule” in the Certificate. The installments shall be cumulative; i.e., the SAR
may be exercised, with respect to any or all Shares covered by an installment, at any time or times after the installment first becomes exercisable and until the Expiration Date. 

 3.2. No vesting shall occur after the Service Termination Date (as defined in
Section 4.5 of this Agreement). 
 4. Exercise of the SAR 
 4.1. Except in circumstances where the SAR is deemed exercised, the SAR may be exercised, in whole or in part, only by delivery to the
Company of written notice of the exercise of the SAR substantially in the form of Exhibit “A” attached to this Agreement stating the number of Shares with respect to which the SAR is being exercised. 
 4.2. The SAR may only be exercised during such period that under policies approved by the Board of Directors of the Company, directors
and officers of the Company may publicly sell securities of the Company. If the Board of Directors does not have such a policy, the SAR may not be exercised during the period commencing 15 days before the end of each calendar quarter and ending two
business days after the first to occur of the filing of the Form 10-Q with the Securities and Exchange Commission for such quarter (or Form 10-K with respect to the fourth quarter of the fiscal year) or the public announcement of the Company’s
earnings for such period. This limitation shall not be applicable in connection with a deemed exercise upon consummation of a Corporate Transaction or upon the Expiration Date or Service Termination Date. 
 4.3. Following receipt of the exercise notice, the Company shall, within five days, make the cash payment provided for in this Agreement,
without interest; provided, however, that if the determination of the Fair Market Value must be made by the Administrator in accordance with Section 2.2 of this Agreement, the payment may be deferred until that Administrator makes the
determination, but not more than 35 days after the date of exercise. 
 4.4. Upon request, Holder shall also deliver this
Agreement and Certificate to the Secretary of the Company, who shall endorse a notation of the exercise and return the Agreement and Certificate to Holder. 
 4.5. Termination of SAR; Deemed Exercise. The SAR shall terminate and expire upon the earliest to occur of: (a) the
Expiration Date; (b) the date Holder ceases to be in the service (as a director or employee) of the Company (or its successor by reason of a merger or consolidation) and any subsidiary of the Company (the “Service Termination
Date”); and (c) the consummation of a Corporate Transaction. For purposes of clarification, if Holder is a director of the Company and of a subsidiary of the Company, the fact that the Holder ceases being a director only of the
subsidiary shall not trigger the Service Termination Date. If on the Expiration Date or the Service Termination Date the Fair Market Value exceeds the Base Value, notwithstanding the limitations under Section 4.2 of this Agreement, the SAR
shall be deemed exercised (to the extent vested) immediately prior to such termination and the Company shall pay Holder (or his estate) the amount contemplated by Section 1 of this Agreement. For this purpose, if the Corporate Transaction is a
merger or consolidation in which the shareholders of the Company receive only cash for their shares of Common Stock, the Fair Market Value shall be deemed to be the amount of cash per share to which the common shareholders are entitled to receive in
the transaction (excluding any funds held back or deposited into an escrow for indemnification claims). 
  

 2 

 5. Changes in Capital Structure 
 5.1. If outstanding shares of Common Stock shall be subdivided into a greater number of shares, or a dividend in Common Stock shall be
paid in respect of Common Stock, the Base Value of the SAR in effect immediately prior to such subdivision or at the record date of such dividend shall, simultaneously with the effectiveness of such subdivision or immediately after the record date
of such dividend, be proportionately reduced, and conversely, if outstanding shares of the Common Stock shall be combined into a smaller number of shares, the Base Value of the SAR in effect immediately prior to such combination shall,
simultaneously with the effectiveness of such combination, be proportionately increased. 
 5.2. When any adjustment is
required to be made in the Base Value, the number of Shares with respect to which the SAR is then unexercised shall be adjusted to that number of Shares determined by dividing (a) an amount equal to the number of such Shares immediately prior
to such adjustment, multiplied by the Base Value in effect immediately prior to such adjustment, by (b) the Base Value in effect immediately after such adjustment. 
 6. Corporate Transactions 
 6.1. In the event of a Corporate Transaction, the SAR shall be deemed exercised in full as of the consummation of the Corporate Transaction, irrespective of the vesting provisions, and for this purpose, the Fair
Market Value shall be determined as if the exercise date was the trading day immediately preceding the consummation of the Corporate Transaction. 
 6.2. A “Corporate Transaction” means: 
 6.2.1 a liquidation or dissolution
of the Company; 
 6.2.2 a merger or consolidation of the Company with or into another corporation or entity in which the
Company is not the surviving corporation (other than a merger with a wholly owned subsidiary); 
 6.2.3 a merger or
consolidation of the Company (or a triangular merger involving a subsidiary of the Company) where the Company is the surviving corporation but with respect to which the shareholders of the Company immediately prior to the merger or consolidation
hold less than 50% of the outstanding Common Stock of the Company immediately following the merger or consolidation; or 
 6.2.4 the sale of all or substantially all of the assets of the Company in a single transaction or a series of related transactions. 
 7. General Provisions 
 7.1. Notices. All notices, requests, demands and other
communications (collectively, “Notices”) given pursuant to this Agreement shall be in writing, and shall be delivered by personal service, courier, or by United States first class, registered or certified mail, postage prepaid,
addressed to the party at the address set forth on the signature page of this Agreement. Any Notice, other than a Notice sent by registered or certified mail, shall be effective when received; a Notice sent by 

  

 3 

 
registered or certified mail, postage prepaid return receipt requested, shall be effective on the earlier of when received or the third day following deposit
in the United States mails. Any party may from time to time change its address for further Notices hereunder by giving notice to the other party in the manner prescribed in this section. 
 7.2. Failure to Enforce Not a Waiver. The failure of the Company to enforce any provision of this Agreement shall is no way be
construed to be a waiver of such provision or of any other provision hereof. 
 7.3. Governing Law. This Agreement
shall be governed by and construed in accordance with the law of the State of California applicable to contracts made in, and to be performed within, that State. 
 7.4. SAR Non-transferable. Holder may not sell, transfer, assign or otherwise dispose of the SAR except by will or the laws of
descent and distribution, and only Holder or his or her legal representative or guardian may exercise the SAR during Holder’s lifetime. 
 7.5. Successors and Assigns. Except to the extent specifically limited by the terms and provision of this Agreement, this Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors, assigns, heirs and personal representatives. 
 7.6. Miscellaneous. Titles and captions
contained in this Agreement are inserted for convenience of reference only and do not constitute a part of this Agreement for any other purpose. Except as specifically provided herein, neither this Agreement nor any right pursuant hereto or interest
herein shall be assignable by any of the parties hereto without the prior written consent of the other party hereto. 
 7.7.
Tax Treatment. Holder understands that the exercise of the SAR will give rise to ordinary taxable income to him or her. The Company makes no representations with respect to and hereby disclaims all responsibility as to the tax treatment of
the SAR. 
 The signature page of this Agreement consists of the last page of the Certificate. 
  

 4 

 EXHIBIT “A” 
 NOTICE OF EXERCISE 
 (To be signed only upon exercise of the SAR) 
 TO: Beverly Hills Bancorp Inc. 
 The undersigned, the holder of the Stock Appreciation Right (SAR), Date of Grant                      ,
20    . hereby irrevocably elects to exercise the SAR to receive in cash the appreciation with respect to              shares of Common Stock of Beverly
Hills Bancorp Inc. 
  

									
					
	 Dated:
	 	  	 		 		 	
				
		 		 		 	  
		 		 		 	(Signature must conform in all respects to name of holder as specified on the face of the SAR)
				
		 		 		 	  
				
		 		 		 	  
		 		 		 	(Address)
				
		 		 		 	  
		 		 		 	Social Security Number

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