Document:

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                                                                 Exhibit 10.10

                          BEVERLY NATIONAL CORPORATION

                              AMENDED AND RESTATED
                        SUPPLEMENTAL EXECUTIVE RETIREMENT
                                    AGREEMENT

                                       for

                                Lawrence M. Smith

                                February 6, 2002

<PAGE>

                              AMENDED AND RESTATED
                   SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

         THIS AGREEMENT, made and entered into this 6/th/ day of February, 2002,
by and between Beverly National Corporation, its subsidiaries and affiliates,
(hereinafter called the "Corporation") and Lawrence M. Smith (hereinafter called
the "Executive").

                                   WITNESSETH:

         WHEREAS, the Executive has been in the employ of the Corporation and/or
its subsidiaries and is now serving the Corporation as its President and Chief
Executive Officer; and,

         WHEREAS, the Corporation has entered into a Supplemental Executive
Retirement Agreement with the Executive dated on December 24, 1996, which was
amended by First Amendment dated July 7, 1998 and Second Amendment dated
December 22, 1998 ("Original SERP"); and

         WHEREAS, the Corporation and the Executive wish to further amend the
Original SERP.

         NOW, THEREFORE, in consideration of services performed in the past and
to be performed in the future as well as of the mutual promises and covenants
herein contained, the Original SERP is amended and restated in its entirety as
follows:

                                   ARTICLE ONE
                                   -----------

         1.01 Employment. The Corporation may employ the Executive in such
              ----------
capacity as the Corporation may from time to time determine. Notwithstanding
anything contained herein, this Agreement is not an agreement of employment and
nothing herein shall restrict the Corporation concerning the terms and
conditions of the Executive's employment.

         The benefits provided by this Agreement are not part of any salary
reduction plan or an arrangement deferring a bonus or a salary increase. The
Executive has no option to take any current payment or bonus in lieu of these
salary continuation benefits.

<PAGE>

                                   ARTICLE TWO
                                   -----------

         2.01     Retirement Benefits.
                  -------------------

         The Executive shall be entitled to a retirement benefit, determined as
of the effective date of his actual retirement, payable monthly, beginning one
month following his retirement and continuing on each succeeding month for
twenty (20) years. Each monthly payment shall be one-twelfth of the annual
retirement benefit, which annual retirement benefit shall be equal to
seventy-five percent (75%) of his Benefit Computation Base (hereinafter
defined), reduced by the sum of (1), (2) and (3) below.

         1.   Fifty percent (50%) of the Executive's projected annual primary
              social security retirement benefit projected as of the date the
              Executive attains age 65;

         2.   The annual amount of benefits payable to the Executive (or his
              beneficiaries) at the effective date of his actual retirement
              calculated on the optional benefit payment elected under any
              qualified defined benefit pension plan maintained and funded by
              the Corporation, as such plan or plans may be amended or
              modified from time to time;

         3.   The annual amount of benefits payable under the Amended and
              Restated Supplemental Executive Retirement Agreement entered into
              December 24, 1996 by and between the Corporation and the
              Executive, as from time to time amended.

         2.02 Benefit Computation Base. The Executive's Benefit Computation Base
              ------------------------
shall be the Executive's 2001 compensation as shown on his W-2 for such year
(including amounts paid under any salary reduction agreements for plans under
Sections 401(k), 125 or 129 of the Internal Revenue Code of 1986, as amended).
In the event that the Executive's employment terminates prior to December 31,
2001, the Executive's 2001 compensation shall be annualized for the purposes of
this section.

         2.03 Accrued Benefit. As used herein for the purposes of Section 3.01
              ---------------
and 4.01, the term "Accrued Benefit" shall mean the aggregate benefit amount the
Executive or his beneficiaries or his estate would be entitled to receive during
all twenty years under Section 2.01 hereof.

         2.04 Optional Forms of Payment.  In lieu of the twenty (20) year
              -------------------------
certain payments provided in Section 2.01 above, or whenever an Accrued Benefit
is

                                       2

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payable under Section 4.01 of this Agreement, the Executive may elect in the
calendar year prior to the calendar year in which payments are to begin, an
optional form of payment which shall be the actuarial equivalent (factors
defined in the Corporation's qualified defined benefit pension plan) of the said
twenty (20) year certain payments. The optional form of payment shall be any
optional form of payment which is provided to the Executive under the terms of
the Corporation's qualified defined benefit pension plan.

                                  ARTICLE THREE
                                  -------------

         3.01 Death of Executive.
              ------------------

         (a)  If the Executive dies prior to the commencement of the payment of
              benefits under Section 2.01, 4.01, or 10.01, the Corporation will
              pay to the Executive's named beneficiaries, for a period of
              twenty (20) years certain commencing on the first day of the
              month next following the delivery to the Corporation of a death
              certificate, a total annual amount equal to the Accrued Benefit.

         (b)  If the Executive dies following the commencement of the payment
              of benefits under Section 2.01, 4.01, or 10.01, such payment of
              benefits shall continue to the named beneficiaries of the
              Executive until all such benefits have been paid.

         3.02 Beneficiaries. The Executive may designate, in writing to the
              -------------
Corporation, one or more beneficiaries. If no beneficiary is so named or if no
named beneficiary is living at the time a payment is due, benefit payments shall
be made, when due, to the Executive's estate.

                                  ARTICLE FOUR
                                  ------------

         4.01 Disability Prior to Retirement. In the event the Executive shall
              ------------------------------
become disabled, the Corporation will pay no disability benefits hereunder.
Disability benefits (if any) will be paid to the Executive through such
insurance programs as may be sponsored by the Corporation. Upon termination of
the Executive's employment on account of disability, the Executive shall
commence receiving payment of his Accrued Benefit. The Accrued Benefit shall be
paid in monthly installments for twenty (20) years certain commencing on the
first day of the month following the month in which the Executive's disability
benefits (if any) terminate.

                                       3

<PAGE>

                                  ARTICLE FIVE
                                  ------------

         5.01  Employment by Competition. Anything to the contrary in this
               -------------------------
Agreement notwithstanding, in the event that after he shall have begun to
receive benefits under this Agreement, the Executive shall compete with the
business of the Corporation, then all payments which might otherwise be due and
payable hereunder shall be immediately forfeited and all rights of the Executive
and his beneficiaries hereunder shall become void. The Executive will be deemed
to have competed with the business of the Corporation if, during the one-year
period following termination of his employment with the Corporation, he,
directly or indirectly, whether as partner, shareholder (other than as the owner
of less than 2% of the outstanding capital stock of a publicly traded
corporation), consultant, agent, employee, co-venturer, or otherwise, or through
any Person (as hereafter defined),

         (i)   competes in the Corporation's market area (defined as the area
               within 20 miles of any branch or facility of the Corporation)
               with, or is employed in such market area by a Person which
               competes with, the banking or any other business conducted by
               the Corporation during the period of his employment,

         (ii)  attempts to hire any employee of the Corporation, assists in
               such hiring by any other Person, or encourages any such
               employee to terminate his relationship with the Corporation, or

         (iii) solicits or encourages any customer of the Corporation to
               terminate its relationship with the Corporation or to conduct
               with any other Person any business or activity which such
               customer conducts or could conduct with the Corporation.

For purposes of this Section 5.01, the term "Person" shall mean an individual, a
corporation, an association, a partnership, an estate, a trust and any other
entity or organization, and shall include an affiliate office within the
Corporation's "market area" as defined in this Section 5.01, of a Person whose
headquarters or parent organization is located outside the "market area" as so
defined.

         5.02  Forfeiture. Anything to the contrary in this Agreement
               ----------
notwithstanding (other than Section 10.01), benefits under this Agreement shall
be immediately forfeited and all rights of the Executive and his beneficiaries
hereunder shall become null and void, if the Executive's employment with the
Corporation is terminated for cause. For this purpose, a termination shall be a
termination for "Cause" only if the termination is for one or more of the
following:

                                       4

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         (i)  the willful and continued failure of him to substantially
              perform his duties (other than any such failure resulting from
              his incapacity due to physical or mental illness) after a
              demand for substantial performance is delivered to him by the
              Board of Directors of the Corporation which specifically
              identifies the manner in which such Board believes that he has
              not substantially performed his duties, or

         (ii) willful misconduct by him which is materially injurious to the
              Corporation monetarily or otherwise.

For purposes of this paragraph, no act, or failure to act, on the Executive's
part shall be considered "willful" unless done, or omitted to be done, by him
not in good faith and without reasonable belief that his action or omission was
in the best interests of the Corporation.

         Notwithstanding the foregoing, he shall not be deemed to have been
terminated for Cause unless and until there shall have been delivered to him a
copy of a resolution duly adopted by the affirmative vote of not less than
three-quarters of the entire membership of the Board of Directors of the
Corporation at a meeting of such Board called and held for the purpose (after
reasonable notice to him and an opportunity for him, together with his counsel,
to be heard before such Board), finding that in the good faith opinion of such
Board he was guilty of conduct set forth above in clauses (i) or (ii) of this
Section 5.02 and specifying the particulars thereof in detail.

                                   ARTICLE SIX
                                   -----------

         6.01 Interest. Any payment that is required to be made hereunder that
              --------
is delayed beyond the date specified in this Agreement shall bear interest at a
variable rate which shall be the rate of interest on one year U.S. Treasury
Bills determined at the first auction of each calendar year or part thereof
during the period of which interest is to be applied to any obligation
hereunder.

                                  ARTICLE SEVEN
                                  -------------

         7.01 Alienability. Neither the Executive, nor any beneficiary under
              ------------
this Agreement shall have any power or right to transfer, assign, anticipate,
hypothecate, mortgage, commute, modify, or otherwise encumber in advance any of
the benefits payable hereunder, nor shall any of said benefits be subject to
seizure for the payment of any debts, judgments, alimony or separate

                                       5

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maintenance, owed by the Executive or his beneficiary or any of them, or be
transferable by operation of law in the event of bankruptcy, or otherwise.

                                  ARTICLE EIGHT
                                  -------------

         8.01 Participation in Other Plans. Nothing contained in this Agreement
              ----------------------------
shall be construed to alter, abridge, or in any manner affect the rights and
privileges of the Executive to participate in and be covered by any pension,
profit sharing, group insurance, bonus or any other employee plan or plans which
the Corporation may have or hereafter have.

                                  ARTICLE NINE
                                  ------------

         9.01     Funding.
                  -------

         (a)      The Corporation reserves the right at its sole and exclusive
                  discretion to insure or otherwise provide for the obligations
                  of the Corporation undertaken by this Agreement or to refrain
                  from same, and to determine the extent, nature and method
                  thereof, including the establishment of one or more trusts.
                  Should the Corporation elect to insure this Agreement, in
                  whole or in part, through the medium of insurance or
                  annuities, or both, the Corporation shall be the owner and
                  beneficiary of the policy or annuity. At no time shall the
                  Executive be deemed to have any right, title or interest in or
                  to any specified asset or assets of the Corporation, or any
                  trust or escrow arrangement, including, but not by way of
                  restriction, any insurance or annuity contracts or the
                  proceeds therefrom.

         (b)      Any such policy, contract or asset shall not in any way be
                  considered to be security for the performance of the
                  obligations of this Agreement.

         (c)      If the Corporation purchases a life insurance or annuity
                  policy on the life of the Executive, the Executive agrees to
                  sign any papers that may be required for that purpose and to
                  undergo any medical examination or tests (at the Corporation's
                  expense) which may be necessary, and generally cooperate with
                  the Corporation in securing such policy.

         (d)      To the extent the Executive acquires a right to receive
                  benefits under this Agreement, such right shall be equivalent
                  to the right of an unsecured general creditor of the
                  Corporation.

                                       6

<PAGE>

                                   ARTICLE TEN
                                   -----------

         10.01 Reorganization. The Corporation shall not merge or consolidate
               --------------
into or with another corporation if such merger or consolidation shall result in
the other corporation being the survivor corporation, nor shall it sell
substantially all of its assets to another corporation, firm or person, unless
and until:

         (a)   The Executive and such other corporation, firm or person agree
               (i) that if the Executive is then employed by the Corporation,
               he shall continue in the employ of the succeeding, continuing
               or acquiring corporation, firm or person, and (ii) that such
               other corporation, firm or person agrees in writing without
               further qualification to assume and discharge the obligations
               of the Corporation under this Agreement, or;

         (b)   If such corporation, firm or person does not so agree to
               assume and discharge such obligations, the Corporation shall pay
               to the Executive, in one lump sum, his Accrued Benefit on the
               date of such merger, consolidation or sale.

Upon the occurrence of any such event and the written unqualified assumption of
the obligations of the Corporation by such successor corporation, firm or
person, the term "Corporation" as used in this Agreement shall be deemed to
refer to such successor or survivor corporation, firm or person.

                                 ARTICLE ELEVEN
                                 --------------

         11.01 Benefits and Burdens. This Agreement shall be binding upon and
               --------------------
inure to the benefit of the Executive and his personal representatives, the
Corporation, and any successor organization which shall succeed to substantially
all of the Corporation's assets and business without regard to the form of such
succession.

         11.02 Corporation. As used in this Agreement, Corporation shall mean
               -----------
the Beverly National Corporation, a Massachusetts Corporation, and any
affiliated entity, successor organization, parent, subsidiary or holding
company.

                                 ARTICLE TWELVE
                                 --------------

                                       7

<PAGE>

         12.01 Communications. Any notice or communication required of either
               --------------
party with respect to this Agreement shall be made in writing and may either be
delivered personally or sent by First Class mail, as the case may be:

                           To the Corporation:

                           c/o Clerk of the Corporation
                           Beverly National Corporation
                           240 Cabot Street
                           Beverly, MA 01915

                           To the Executive:

                           Lawrence M. Smith
                           85 Grover Street
                           Beverly, MA 01920

Each party shall have the right by written notice to change the place to which
any notice may be addressed.

                                ARTICLE THIRTEEN
                                ----------------

         13.01 Claims Procedure. The Corporation will be the "named fiduciary"
               ----------------
and "plan administrator" of the arrangement contemplated herein. The claims
procedure set forth herein may be changed by the Corporation from time to time
by written notice to the Executive, provided no such change shall limit the
protections herein provided to the claimant except as such limitations are
imposed by applicable law, regulation, or case law. The Corporation may
establish reasonable administrative procedures for applying the Claims
Procedures.

         The Executive or any beneficiary of his may file a request for benefits
with the Corporation in writing delivered to the Corporation at its address
provided in Section 12 hereof. If a claim request is wholly or partially denied,
the Corporation will furnish to the claimant a notice of its decision within
ninety (90) days in writing, and in a manner to be understood by the claimant,
which notice will contain the following information:

         i.    the specific reason or reasons for the denial;

         ii.   specific reference to pertinent provisions of this Agreement
               upon which the denial is based;

                                       8

<PAGE>

         iii.  a description of any additional material or information
               necessary for the claimant to perfect the claim and an
               explanation as to why such material or information is
               necessary; and

         iv.   an explanation of the applicable claim-review procedure
               describing the steps to be taken by a claimant who wishes to
               submit his claim for review.

         A claimant or his authorized representative may, with respect to any
denied claim:

         i.    request a review upon written application filed within sixty
               (60) days after receipt by the claimant of written notice of
               the denial of his claim;

         ii.   review pertinent documents; and

         iii.  submit issues and comments in writing.

         Any request or submission will be in writing and will be directed to
the Corporation. The Corporation will have the sole responsibility for the
review of any denied claim and will take all appropriate steps in light of its
findings. The Corporation will render a decision upon review of a denied claim
within sixty (60) days after receipt of a request for review. If special
circumstances warrant additional time, the decision will be rendered as soon as
possible, but not later than one hundred twenty (120) days after receipt of
request for review. Written notice of any such extension will be furnished to
the claimant prior to the commencement of the extension. The decision on review
will be in writing and will include specific reasons for the decision written in
a manner to be understood by the claimant, as well as the specific references of
the pertinent provisions on which the decision is based. If the decision on
review is not furnished to the claimant within the time limits described above,
the claim will be deemed denied on review.

                                ARTICLE FOURTEEN
                                ----------------

         14.01  Entire Agreement.  This instrument may be altered or amended
                ----------------
only by written agreement signed by the parties hereto.

         14.02  Jurisdiction.  The parties, terms and conditions of this
                ------------
Agreement are subject to and shall be governed by the laws of the Commonwealth
of Massachusetts.

                                       9

<PAGE>

         14.03  Gender.  Any reference in this Agreement to the masculine shall
                ------
be deemed to include the feminine where the context so requires.

         14.04  Operation of Law on Corporation's Obligations. In the event that
                ---------------------------------------------
any governmental entity promulgates any statute, rule, regulation, policy or
order which restricts or prohibits the Corporation from making payments or
affects any operation of the Agreement to the Executive under this Agreement,
then the Corporation's obligations to make payments to the Executive (or his
beneficiary) hereunder shall terminate or be restricted or suspended (consistent
with such law or binding regulation, policy or order) for so long as such
restriction or prohibition applies to the Corporation. Nothing in this Agreement
is intended to require or shall be construed as requiring the Corporation to do
or fail to do any act in violation of any applicable law or binding regulation,
policy or order. Provisions other than payment provisions which are found to be
invalid or illegal will not be given effect and the Agreement will be enforced
as if those provisions had never been inserted.

         IN WITNESS WHEREOF, the Corporation has caused this Agreement to be
duly executed by its duly authorized officer and its Corporate Seal affixed at
Beverly, Massachusetts the day and year first above written.

Attest:                                           BEVERLY NATIONAL CORPORATION

         /s/  Paul J. Germano                     By: /s/  Alice B. Griffin
--------------------------------------------         --------------------------

         /s/  Peter E. Simonsen                       /s/  Lawrence M. Smith
--------------------------------------------      -----------------------------
Witness                                           Executive

                                       10RPFINANCIAL, LC.

Financial Services Industry Consultants

January 7, 2002

Mr. Hans R. Ganz

President and Chief Executive Officer

Pacific Trust Bank

610 Bay Boulevard

Chula Vista, California  91910

Dear Mr. Ganz:

              This letter sets forth the agreement between Pacific Trust Bank, Chula Vista, California
("Pacific Trust" or the "Bank"), and RP Financial, LC. ("RP Financial") for independent conversion
appraisal services pertaining to the Bank's simultaneous holding company formation and mutual-to-stock conversion.  The specific appraisal services to be rendered by RP Financial are described below.
These services will be directed by the undersigned.  

Description of Appraisal Services

              Prior to preparing the conversion appraisal report, RP Financial will conduct a financial due
diligence, including on-site interviews of senior management and reviews of financial and other
documents and records, to gain insight into the Bank's operations, financial condition, profitability,
market area, risks and various internal and external factors which impact the pro forma market value
of the Bank.

              RP Financial will prepare a detailed written valuation report of the Bank which will be
fully consistent with applicable federal regulatory guidelines and standard pro forma valuation
practices.  The appraisal report will include an analysis of the Bank's financial condition and
operating results, as well as an assessment of the Bank's interest rate risk, credit risk and liquidity
risk.  The appraisal report will describe the Bank's business strategies, market area, prospects for
the future and the intended use of proceeds.  A peer group analysis relative to comparable publicly-traded savings institutions will be conducted for the purpose of determining appropriate valuation
adjustments for the Bank relative to the peer group.  

              We will review pertinent sections of the Bank's prospectus and hold discussions with the Bank
to obtain necessary data and information for the appraisal report, including the impact of key deal
elements on the pro forma market value, such as dividend policy, use of proceeds and reinvestment
rate, tax rate, conversion expenses and characteristics of stock plans.

              The appraisal report will establish a midpoint pro forma market value.  The appraisal report
may be periodically updated throughout the conversion process as appropriate.  The conversion
appraisal guidelines require at least one updated valuation just prior to the time of the closing of
the stock offering.

	Washington Headquarters	
	Rosslyn Center	Telephone: (703) 528-1700
	1700 North Moore Street, Suite 2210	Fax No.: (703) 528-1788
	Arlington, VA 22209	Toll-Free No.: (866) 723-0594
	www.rpfinancial.com	E-Mail: mail@rpfinancial.com

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Board of Directors

January 7, 2002

Page 2

              RP Financial agrees to deliver the appraisal report and subsequent updates, in writing, to the
Bank at the above address in conjunction with the filing of the regulatory application.  Subsequent
updates will be filed promptly as certain events occur which would warrant the preparation and filing
of such valuation updates.  Further, RP Financial agrees to perform such other services as are
necessary or required in connection with the regulatory review of the appraisal and respond to the
regulatory comments, if any, regarding the valuation appraisal and subsequent updates.  RP Financial
expects to formally present the appraisal report, including the appraisal methodology, peer group
selection and assumptions, to the Board of Directors for review and acceptance.  

Fee Structure

              The Bank agrees to pay RP Financial a fixed fee of $35,000 for preparation and delivery of
the original appraisal report and $2,500 for each required appraisal update, plus reimbursable
expenses.  Payment of these fees shall be made according to the following schedule:

	$5,000 upon execution of the letter of agreement engaging RP Financial's
appraisal services;
 
	$30,000 upon delivery of the completed original appraisal report; and
 
	$2,500 upon completion of each required valuation update.

              The Bank will reimburse RP Financial for out-of-pocket expenses incurred in preparation
of the valuation reports.  Such out-of-pocket expenses will likely include travel, printing,
telephone, facsimile, shipping, computer and data services.  RP Financial will agree to limit
reimbursable expenses in conjunction with the business planning engagement, subject to written
authorization from the Bank to exceed such level. 

              In the event the Bank shall, for any reason, discontinue the proposed conversion prior to
delivery of the completed documents set forth above and payment of the respective progress payment
fees, the Bank agrees to compensate RP Financial according to RP Financial's standard billing rates
for consulting services based on accumulated and verifiable time expenses, not to exceed the
respective fee caps noted above, after giving full credit to the initial retainer fee.  RP Financial's
standard billing rates range from $75 per hour for research associates to $250 per hour for managing
directors.  

              If during the course of the proposed transaction, unforeseen events occur so as to materially
change the nature or the work content of the services described in this contract, the terms of said
contract shall be subject to renegotiation by the Bank and RP Financial.  Such unforeseen events
shall include, but not be limited to, major changes in the conversion regulations, appraisal
guidelines or processing procedures as they relate to conversion appraisals, major changes in
management or procedures, operating policies or philosophies, and excessive delays or suspension
of processing of conversion applications by the regulators such that completion of the conversion
transaction requires the preparation by RP Financial of a new appraisal.

Representations and Warranties

              The Bank and RP Financial agree to the following:

              1.	       The Bank agrees to make available or to supply to RP Financial such information with
respect to its business and financial condition as RP Financial may reasonably request in order to
provide the aforesaid valuation.  Such information heretofore or hereafter supplied or made available
to RP Financial shall include:  annual financial statements, periodic regulatory filings and material
agreements, debt instruments, off balance sheet assets or liabilities, commitments and contingencies,
unrealized gains or losses and corporate books and records.  All information provided by the Bank to
RP Financial shall remain strictly confidential (unless such information is otherwise made available
to the public), and if the conversion is not consummated or the services of RP Financial are terminated
hereunder, RP Financial shall upon request promptly return to the Bank the original and any copies
of such information.

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Board of Directors

January 7, 2002

Page 3

              2.       	The Bank hereby represents and warrants to RP Financial that any information provided
to RP Financial does not and will not, to the best of the Bank's knowledge, at the times it is provided
to RP Financial, contain any untrue statement of a material fact or fail to state a material fact necessary
to make the statements therein not false or misleading in light of the circumstances under which they
were made.

              3.       	(a)       	The Bank agrees that it will indemnify and hold harmless RP Financial, any affiliates
of RP Financial, the respective directors, officers, agents and employees of RP Financial or their
successors and assigns who act for or on behalf of RP Financial in connection with the services called
for under this agreement (hereinafter referred to as "RP Financial"), from and against any and all
losses, claims, damages and liabilities (including, but not limited to, all losses and expenses in
connection with claims under the federal securities laws) attributable to (i) any untrue statement or
alleged untrue statement of a material fact contained in the financial statements or other information
furnished or otherwise provided by the Bank to RP Financial, either orally or in writing; (ii) the
omission or alleged omission of a material fact from the financial statements or other information
furnished or otherwise made available by the Bank to RP Financial; or (iii) any action or omission to
act by the Bank, or the Bank's respective officers, directors, employees or agents which action or
omission is willful or negligent.  The Bank will be under no obligation to indemnify RP Financial
hereunder if a court determines that RP Financial was negligent or acted in bad faith with respect to
any actions or omissions of RP Financial related to a matter for which indemnification is sought
hereunder.  Any time devoted by employees of RP Financial to situations for which indemnification
is provided hereunder, shall be an indemnifiable cost payable by the Bank at the normal hourly
professional rate chargeable by such employee.  

                     (b)       	RP Financial shall give written notice to the Bank of such claim or facts within thirty
days of the assertion of any claim or discovery of material facts upon which the RP Financial intends
to base a claim for indemnification hereunder.  In the event the Bank elects, within seven days of the
receipt of the original notice thereof, to contest such claim by written notice to RP Financial, RP
Financial will be entitled to be paid any amounts payable by the Bank hereunder, together with interest
on such costs from the date incurred at the annual rate of prime plus two percent within five days after
the final determination of such contest either by written acknowledgement of the Bank or a final
judgment of a court of competent jurisdiction.  If the Bank does not so elect, RP Financial shall be
paid promptly and in any event within thirty days after receipt by the Bank of the notice of the claim.

                     (c)       	The Bank shall pay for or reimburse the reasonable expenses, including attorneys'
fees, incurred by RP Financial in advance of the final disposition of any proceeding within thirty days
of the receipt of such request if RP Financial furnishes the Bank:  (1) a written statement of RP
Financial's good faith belief that it is entitled to indemnification hereunder; and (2) a written
undertaking to repay the advance if it ultimately is determined in a final adjudication of such
proceeding that it or he is not entitled to such indemnification.  

                     (d)       	In the event the Bank does not pay any indemnified loss or make advance
reimbursements of expenses in accordance with the terms of this agreement, RP Financial shall have
all remedies available at law or in equity to enforce such obligation.

              It is understood that, in connection with RP Financial's above-mentioned engagement, RP
Financial may also be engaged to act for the Bank in one or more additional capacities, and that the
terms of the original engagement may be embodied in one or more separate agreements.  The
provisions of Paragraph 3 herein shall apply to the original engagement, any such additional
engagement, any modification of the original engagement or such additional engagement and shall
remain in full force and effect following the completion or termination of RP Financial's
engagement(s).  This agreement constitutes the entire understanding of the Bank and RP Financial
concerning the subject matter addressed herein, and such contract shall be governed and construed in
accordance with the laws of the Commonwealth of Virginia.  This agreement may not be modified,
supplemented or amended except by written agreement executed by both parties.

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Board of Directors

January 7, 2002

Page 4

              Pacific Trust and RP Financial are not affiliated, and neither Pacific Trust nor RP Financial
has an economic interest in, or is held in common with, the other and has not derived a significant
portion of its gross revenues, receipts or net income for any period from transactions with the other.

*  *  *  *  *  *  *  *  *  *  *

Please acknowledge your agreement to the foregoing by signing as indicated below and
returning to RP Financial a signed copy of this letter, together with the initial retainer fee of $5,000.

			Sincerely,

 

 
	  		
	  		
	  		
			Ronald S. Riggins

President and Managing Director

 

 
	  		
	Agreed To 
and Accepted By:	Hans R. Ganz

President and Chief Executive Officer	
 

	 	
	Upon Authorization by the Board of Directors For:

Pacific Trust Bank, Chula Vista, California
	 	
	 	
	Date Executed:   ___________________________________

End.

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