Document:

Exhibit 10.2

 

TERMINATION OF THE

SALARY CONTINUATION AGREEMENT

DATED [*]

BETWEEN

SANTA LUCIA BANK

AND

[*]

This Termination Agreement (the “Termination”) by and between Santa Lucia Bank, a California corporation, (the “Bank”) and [*] (the “Executive”), is made this ___ day of [*], 2011.

 

WITNESSETH:

 

WHEREAS, the Bank and the Executive are parties to a Salary Continuation Agreement dated [*] (the “Agreement”); and

 

WHEREAS, the Bank and the Executive wish to terminate the Agreement;

 

NOW THEREFORE, in consideration of the premises and of the mutual promises herein contained, the Bank and the Executive agree as follows.

 

AGREEMENT

 

1.           Termination.  The Bank and the Executive agree to terminate the Agreement effective as of the first day of January, 2011.

 

2.           Payment.  During the period between May 1, 2012 and April 30, 2013, the Bank shall pay the Executive the full amount of the Accrued Liability Balance, calculated as of January 1, 2011.

 

3.           Complete Liquidation of Executive’s Interest.  The payment described in the Section 2 fully and completely liquidates the Executive’s interest in the Agreement.

 

4.           Compliance with Tax and Regulatory Requirements.

 

a.      Internal Revenue Code Section 409A.  The Bank and Executive both intend for this Termination to meet the requirements of Treasury Regulations Section 1.409A-3(j)(ix)(C).  Consequently, the Bank is entering into substantially similar termination agreements with respect to all the non-qualified deferred compensation agreements to which the Bank is a party such that i) all the non-qualified deferred compensation agreements to which the Bank is a party will be terminated, and ii) each of the executives and directors who are party to a non-qualified deferred compensation agreements will receive full payment for their entire interest in the agreements within twelve (12) months following such terminations. Furthermore, the Bank warrants and represents that i) this Termination is not being made proximate to a downturn in the financial health of the Bank, and ii) the Bank will not implement a new plan which would be aggregated with the Agreement under Treasury Regulations Section 1.409A-1(c) within the three (3) years following the termination of the Agreement.

 

  

  

  

 

b.      FDIC Golden Parachute Restrictions.  The Bank has complied with all the requirements of Section 28(k) of the Federal Deposit Insurance Act (12 U.S.C. Section 1828(k) and Part 359 of the Rules and Regulations of the Federal Deposit Insurance Corporation.

 

5.           Modification.  Any modification of this Termination shall be effective only if it is in writing and signed by each party or such party's authorized representative, and only to the extent that it is compliant with all applicable codes and statutes.  The Bank may not revoke this Termination of its own accord.

 

IN WITNESS WHEREOF, the Executive and a duly authorized representative of the Bank have executed this Termination as indicated below:

 

 

	Executive:   	 	Bank:	 
	 	 	 	 	 
	 	 	 	 	 
	
 

	 	
By: 

	 	 
	 	 	Its:Exhibit 10.3

 

TERMINATION OF THE

FIRST AMENDED AND RESTATED

DEFERRED FEE AGREEMENT

BETWEEN

SANTA LUCIA BANK

AND

[*]

This Termination Agreement (the “Termination”) by and between Santa Lucia Bank, a California corporation, (the “Bank”) and [*] (the “Director”), is made as of the 1st day of May, 2011.

 

WITNESSETH:

 

WHEREAS, the Bank and the Director are parties to a First Amended and Restated Deferred Fee Agreement dated January 1, 2008 (the “Agreement”); and

 

WHEREAS, the Bank and the Director wish to terminate the Agreement;

 

NOW THEREFORE, in consideration of the premises and of the mutual promises herein contained, the Bank and the Director agree as follows.

 

AGREEMENT

 

1.           Termination.  The Bank and the Director agree to terminate the Agreement effective as of the 1st day of May, 2011.

 

2.           Payment.  During the period between May 1, 2012 and April 30, 2013, the Bank shall pay the Director the full balance of the Deferred Compensation Account, calculated as of May 1, 2011.

 

3.           Complete Liquidation of Director’s Interest.  The payment described in the Section 2 fully liquidates and completely the Director’s interest in the Agreement.

 

4.           Compliance with Tax and Regulatory Requirements.

 

a.      Internal Revenue Code Section 409A.  The Bank and Director both intend for this Termination to meet the requirements of Treasury Regulations Section 1.409A-3(j)(ix)(C).  Consequently, the Bank is entering into substantially similar termination agreements with respect to all the non-qualified deferred compensation agreements to which the Bank is a party such that i) all the non-qualified deferred compensation agreements to which the Bank is a party will be terminated, and ii) each of the executives and directors who are party to a non-qualified deferred compensation agreements will receive full payment for their entire interest in the agreements between twelve (12) and twenty-four (24) months following such terminations. Furthermore, the Bank warrants and represents that i) this Termination is not being made proximate to a downturn in the financial health of the Bank, and ii) the Bank will not implement a new plan which would be aggregated with the Agreement under Treasury Regulations Section 1.409A-1(c) within the three (3) years following the termination of the Agreement.

 

  

  

  

 

b.      FDIC Golden Parachute Restrictions.  The Bank has complied with all the requirements of Section 28(k) of the Federal Deposit Insurance Act (12 U.S.C. Section 1828(k) and Part 359 of the Rules and Regulations of the Federal Deposit Insurance Corporation.

 

5.           Modification.  Any modification of this Termination shall be effective only if it is in writing and signed by each party or such party's authorized representative, and only to the extent that it is compliant with all applicable codes and statutes.  The Bank may not revoke this Termination of its own accord.

 

IN WITNESS WHEREOF, the Director and a duly authorized representative of the Bank have executed this Termination as indicated below:

 

	Director: 	 	Bank:	 
	 	 	 	 	 
	 	 	 	 	 
	
 

	 	
By: 

	 	 
	 	 	Its:Exhibit 10.4

 

TERMINATION OF THE

FISRT AMENDED AND RESTATED

DIRECTOR RETIREMENT AGREEMENT

BETWEEN

SANTA LUCIA BANK

AND

[*]

This Termination Agreement (the “Termination”) by and between Santa Lucia Bank, a California corporation, (the “Bank”) and [*] (the “Director”), is made as of the 24th day of April, 2011.

 

WITNESSETH:

 

WHEREAS, the Bank and the Director are parties to a First Amended and Restated Director Retirement Agreement dated January 1, 2008 (the “Agreement”); and

 

WHEREAS, the Bank and the Director wish to terminate the Agreement;

 

NOW THEREFORE, in consideration of the premises and of the mutual promises herein contained, the Bank and the Director agree as follows.

 

AGREEMENT

 

1.           Termination.  The Bank and the Director agree to terminate the Agreement effective as of the first day of January, 2011.

 

2.           Payment.  During the period between May 1, 2012 and April 30, 2013, the Bank shall pay the Director the full amount of the Accrued Liability Balance calculated as of January 1, 2011.

 

3.           Complete Liquidation of Director’s Interest.  The payment described in the Section 2 fully liquidates the Director’s interest in the Agreement.

 

4.           Compliance with Tax and Regulatory Requirements.

 

a.      Internal Revenue Code Section 409A.  The Bank and Director both intend for this Termination to meet the requirements of Treasury Regulations Section 1.409A-3(j)(ix)(C).  Consequently, the Bank is entering into substantially similar termination agreements with respect to all the non-qualified deferred compensation agreements to which the Bank is a party such that i) all the non-qualified deferred compensation agreements to which the Bank is a party will be terminated, and ii) each of the executives and directors who are party to a non-qualified deferred compensation agreements will receive full payment for their entire interest in the agreements between twelve (12) and twenty-four (24) months following such terminations. Furthermore, the Bank warrants and represents that i) this Termination is not being made proximate to a downturn in the financial health of the Bank, and ii) the Bank will not implement a new plan which would be aggregated with the Agreement under Treasury Regulations Section 1.409A-1(c) within the three (3) years following the termination of the Agreement.

 

  

  

  

 

b.      FDIC Golden Parachute Restrictions.  The Bank has complied with all the requirements of Section 28(k) of the Federal Deposit Insurance Act (12 U.S.C. Section 1828(k) and Part 359 of the Rules and Regulations of the Federal Deposit Insurance Corporation.

  

5.           Modification.  Any modification of this Termination shall be effective only if it is in writing and signed by each party or such party's authorized representative, and only to the extent that it is compliant with all applicable codes and statutes.  The Bank may not revoke this Termination of its own accord.

 

IN WITNESS WHEREOF, the Director and a duly authorized representative of the Bank have executed this Termination as indicated below:

 

	Director: 	 	Bank:	 
	 	 	 	 	 
	 	 	 	 	 
	
 

	 	
By: 

	 	 
	 	 	Its:Exhibit 10.5

  

Name:  _____________________

BENEFIT TERMINATION AGREEMENT AND RELEASE

THIS BENEFIT TERMINATION AGREEMENT AND RELEASE (“Agreement”) dated the ____ day of June, 2011 is executed by the undersigned (“Releasor”), a director and/or executive officer of Santa Lucia Bank, a California banking corporation (the "Bank").

 

WHEREAS, Carpenter Fund Manager GP, LLC, Mission Community Bancorp, Mission Community Bank (collectively, the “Purchaser Parties”), Santa Lucia Bancorp and the Bank have entered into that certain Agreement and Plan of Merger dated June 24, 2011 (the "Merger Agreement"), pursuant to which, among other things, the Bank will merge with and into Mission Community Bank, with Mission Community Bank surviving the merger as a wholly-owned subsidiary of Mission Community Bancorp (the "Bank Merger"); and

 

WHEREAS, the undersigned is a party to a certain change in control agreement, salary continuation agreement, director retirement agreement and/or deferred  fee agreement, all as listed on Schedule A annexed hereto (collectively, the “Compensation Agreements”), as well as the insured under certain Endorsement Method Split Dollar Plan Life Insurance Agreements as listed on Schedule B annexed hereto (“BOLI Agreements”); and

 

WHEREAS, the Purchaser Parties have required as a condition to consummation of the Bank Merger that the undersigned execute and deliver this Agreement  to confirm the termination of the Compensation Agreements and to provide a release of any claims by the undersigned under the Compensation Agreements and BOLI Agreements;

 

NOW, THEREFORE, in consideration of the premises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned Releasor hereby agrees as follows:

 

1.           Termination.  The Releasor agrees that to the extent any of the Compensation Agreements has not previously been terminated, that such agreement(s) shall be terminated and shall be null and void for all purposes and effect upon the effectiveness of the Bank Merger.    Further, to the extent any of the Compensation Agreements has previously been terminated, but such prior termination has provided for prospective payment of any benefits under such Compensation Agreements, Releasor hereby acknowledges and agrees that no such prospective payments shall be due and payable and that the only payments due to Releasor with respect to any of the Compensation Agreements shall be the payment to be made pursuant to Section 3 of this Agreement.

 

2.           BOLI Policy Endorsements.  Releasor and Bank acknowledge that payments due under certain of the Compensation Agreements were supported by the BOLI Agreements which provided for the division of the cash surrender value and death proceeds of the policy between the Bank and the Releasor as set forth in such agreements.  Releasor agrees that prior to the effectiveness of the Bank Merger, Releasor shall take all actions necessary to terminate the interest  of Releasor  or any designated beneficiary of Releasor in the BOLI Agreements or any insurance policy subject to the BOLI Agreements other than the Bank, so that the Bank will be the sole beneficiary under the BOLI Agreements and related insurance policies, and agrees to execute, and, if necessary, to cause any designated beneficiary of Releasor to execute, any endorsements, amendments, releases or other documents in connection with terminating the Releasor’s interest, and/or the interests of any of Releasor’s designated beneficiaries, in the BOLI Agreements or related insurance policies.

 

  

  

  

 

3.           Payment to Releasor.  In consideration for termination of the Compensation Agreements and the complete release of any claims thereunder and under the BOLI Agreement or any insurance policies related thereto, the Bank, or Mission Community Bank, as the Bank’s successor, shall pay to the undersigned upon the effectiveness of the Bank Merger,  a lump sum payment of ______________________ Dollars ($_______).

 

4.           Release.  The Releasor, on his or her own behalf, and on behalf of his or her heirs, executors, administrators, agents, successors and assigns (collectively, the "Releasor Persons") hereby irrevocably and unconditionally releases, waives and forever discharges the Bank, Santa Lucia Bancorp and each of the Purchaser Parties and their respective predecessors, parents, subsidiaries, affiliates and other related entities, and all of their respective past, present and future officers, directors, shareholders, affiliates, agents, representatives, successors and assigns (each, a "Released Party" and collectively, the "Released Parties") from any and all actions, causes of action, suits, debts, dues, sums of money, accounts, bonds, bills, covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, executions, claims and demands of every type and nature whatsoever, known and unknown, in law or equity (each a "Claim" and collectively, the "Claims") relating to, arising out of or in connection with the Compensation Agreements and the BOLI Agreements.

 

Releasor further agrees knowingly to waive the provisions and protections of Section 1542 of the California Civil Code, which reads:

 

A general release does not extend to claims which the creditor does not know or suspect exist in his favor at the time of executing the release, which, if known by him, must have materially affected his settlement with the debtor.

 

This Release shall be effective upon and shall survive the consummation of the Bank Merger and the transactions contemplated by the Merger Agreement.  If the Merger Agreement is terminated prior to the consummation of the Bank Merger, this Agreement shall automatically be terminated.

 

5.           Section 409A.  Each of the Bank and the Releasor intend for this Agreement to meet the requirements of Internal Revenue Code Section 409A and the regulations promulgated thereunder.  Anything provided in Section 3 of this Agreement to the contrary notwithstanding, the payment due to Releasor pursuant to Section 3 of this Agreement shall be deferred until the later of the effective time of the Bank Merger or the period required by Section 409A of the Internal Revenue Code.

 

6.           Regulatory Approvals.  The Bank shall obtain all required regulatory approvals with respect to the payment to be made pursuant to Section 3 of this Agreement, and shall provide the Purchaser Parties with copies of the regulatory approvals prior to the effectiveness of the Bank Merger.  Releasor and Bank acknowledge that no payments shall be payable to the Releasor under this Agreement unless and until the payment is approved by the FDIC (and to the extent necessary, the Department of Financial Institutions and Federal Reserve Bank of San Francisco).

 

  

2

  

 

7.           Successors.  This Release shall be binding upon the undersigned Releasor, the Releasor Persons and their respective predecessors, parents, subsidiaries, affiliates and other related parties and shall inure to the benefit of the Released Parties and their respective successors and assigns.

 

8.           Governing Law.   This Release shall be governed by and construed in accordance with the laws of California, without giving effect to any principles of conflicts of law.

 

9.           Modification.  This Release may be modified only by written instrument executed by the undersigned, the Bank, and the Purchaser Parties.

 

10.           Entire Agreement.  This Agreement represents the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes any prior agreements between them with respect to the subject matter hereof.

 

11.           Invalid Provisions.  Should any provision of this Agreement for any reason be declared invalid, void or unenforceable by a court of competent jurisdiction, the validity and binding effect of any remaining portion shall not be affected, and the remaining provisions of this Agreement shall remain in full force and effect as if this Agreement had been executed with said provision eliminated.

 

  

3

  

 

IN WITNESS WHEREOF, each of the undersigned has executed this Benefit Termination Agreement and Release as of the date first above written.

 

 

	RELEASOR:   	 	 
	 	 
Print Name:

	 
	 	 	 
	 	 	 
	 	 	 
	BANK:    	SANTA LUCIA BANK	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 	 	 	 
	 	 	 	 

 

  

4

  

 

SCHEDULE A

 

 

Name of Executive Officer or Director:  _________________________

 

List of Compensation Agreements:

 

 

 

  

5

  

 

SCHEDULE B

 

 

BOLI  AGREEMENTS

 

 

INSURED                                                      CARRIER                                                      POLICY NO.

 

 

 

  

6

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