Document:

Shareholder Agreement, dated as of April 30, 2004

 Exhibit 10.35 
  
 SHAREHOLDER AGREEMENT 
  
 This SHAREHOLDER AGREEMENT (this “Agreement”) is made and entered into as of April 30, 2004 by and between Placer Sierra Bancshares, a
California corporation (“Placer”), and the California Community Financial Institutions Fund Limited Partnership, a California limited partnership (the “Shareholder”). 
  
 WHEREAS, Placer and Southland Capital Co., a California corporation
(“SCC”), have entered into that certain Agreement and Plan of Merger, dated as of April 30, 2004 (the “Merger Agreement”), pursuant to which SCC will be merged with and into Placer (the “Merger”),
and each Share (as defined in the Merger Agreement) will be converted into the right to receive the Merger Consideration (as defined in the Merger Agreement); and 
  
 WHEREAS, Belvedere Capital Partners LLC (“Belvedere”) is the sole general partner of the Shareholder; and

  
 WHEREAS, the Shareholder owns 9,106,435 shares of SCC’s
common stock; and 
  
 WHEREAS, SCC owns all of the outstanding
shares of capital stock of Bank of Orange County (“BOC”), with the exception of a fractional share of such stock owned by Placer; and 
  
 WHEREAS, Placer has filed a registration statement (the “Registration Statement”) for the initial public offering of its common stock
(the “IPO”); and 
  
 WHEREAS, as a condition to
entering into the Merger Agreement, Placer has required that the Shareholder enter into, and the Shareholder has agreed to enter into, this Agreement. 
  
 NOW, THEREFORE, in consideration of the premises, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties hereby agree as follows: 
  
 1. Representations
and Warranties of the Shareholder. The Shareholder hereby represents and warrants to Placer as follows: 
  
 (a) Authority; Binding Obligation. The Shareholder has all necessary power and authority and has taken all necessary action in
order to execute, deliver and perform its obligations under this Agreement. The Shareholder has duly authorized, executed and delivered this Agreement, and this Agreement is a valid and legally binding obligation of the Shareholder, enforceable
against it in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar laws of general applicability relating to or affecting creditors’ rights or to general equity principles.

 (b) Ownership of Shares. The Shareholder is the legal holder and beneficial owner
of 9,106,435 shares of Company Common Stock (as defined in the Merger Agreement), (the “Existing Shares” and, together with any shares of Company Common Stock acquired by the Shareholder after the date hereof, the
“Shares”), and, as of the date hereof, the Existing Shares constitute all the shares of Company Common Stock owned legally or beneficially by the Shareholder. With respect to the Existing Shares, the Shareholder has sole voting
power and sole power to issue instructions with respect to or otherwise engage in the actions set forth in Section 2 hereof, sole power of disposition and sole power to demand appraisal rights, with no restrictions on any such powers, subject to
applicable law and the terms of this Agreement. 
  
 (c) No Conflicts. The execution, delivery and performance of this Agreement by the Shareholder does not, and will not, result in a breach or violation of any of the terms or provisions of, or constitute a default under, (i) any
statute, law, rule, regulation, judgment, order or decree of any governmental agency or body or any court having jurisdiction over the Shareholder or its properties, (ii) any contract, agreement, voting agreement, voting trust, shareholder
agreement, trust agreement, proxy, power of attorney, pooling arrangement, note, mortgage, indenture, instrument, arrangement or other obligation or restriction of any kind to which the Shareholder is a party or which the Shareholder or the Existing
Shares are subject to or bound or (iii) the organizational documents of the Shareholder. 
  
 (d) Investor Representations. The representations and warranties set forth in Section 5.02(aa) of the Merger Agreement are true and
correct. 
  
 2. Agreements of the Shareholder. Subject to
the Merger Agreement being substantially in the form previously provided to and reasonably acceptable to the Shareholder and the terms of the Merger Agreement being consistent with that certain letter of intent dated April 20, 2004 among Placer,
SCC, BOC, Belvedere and the Shareholder (the “Letter of Intent”): 
  
 (a) Upon receipt of the request of Placer, the Shareholder hereby agrees to immediately execute and deliver to Placer the Shareholder
Consent (as defined in the Merger Agreement). The Shareholder further agrees to refrain from taking or omitting to take any action which has the effect or purpose of revoking, rescinding or otherwise annulling the Shareholder Consent. In the event
the Shareholder Consent, or any subsequent written consent executed by the Shareholder approving the principal terms of the Merger, is invalid or unenforceable in accordance with its terms under applicable law, the Shareholder shall, at the
direction of Placer, (i) promptly (which in no case shall be more than three business days after receiving a written request from Placer) execute or cause to be executed a substitute written consent in lieu of meeting approving the principal terms
of the Merger (which written consent shall be prepared by Placer) 
  

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 provided that such substitute written consent is no more burdensome to the Shareholder or does not affect
the Shareholder in any more adverse manner than the Shareholder Consent, and deliver the same to SCC or (ii) vote or caused to be voted all of the Shares in favor of the principal terms of the Merger at any meeting of the shareholders of SCC called
to vote upon the principal terms of the Merger. 
  
 (b) The Shareholder agrees that it shall vote or caused to be voted all of the Shares (i) against any action or agreement that would result in a breach in any material respect of any covenant, representation or warranty or any other
obligation or agreement of SCC under the Merger Agreement and (ii) as directed by Placer with respect to: (A) any extraordinary corporate transaction, such as a merger, consolidation or other business combination involving SCC or any of its
subsidiaries (whether or not SCC or any such subsidiary is the surviving party); (B) any sale, lease, transfer, assignment or other disposition of a material amount of the assets of SCC or any of its subsidiaries; (C) any change in the majority of
the board of directors of SCC; (D) any material change in the present capitalization of SCC; (E) any amendment to SCC’s articles of incorporation or bylaws; (F) any other material change in the corporate structure, business, assets or ownership
of SCC or any of its subsidiaries; or (G) any other action which is intended, or could reasonably be expected to, impede, interfere with, delay, postpone, discourage or materially adversely affect the contemplated economic benefits to Placer of the
Merger and the other transactions contemplated by the Merger Agreement, provided that the Shareholder is not adversely affected by such vote, such vote is necessary to carry out the terms of the Merger and such vote does not affect the Merger
Consideration to be paid to the Shareholder pursuant to the terms of the Merger Agreement. The Shareholder shall not enter into any agreement, arrangement or understanding with any Person prior to the termination of this Agreement (as provided in
Section 5 hereof) to vote, consent or give instructions, whether before or after the termination of this Agreement, in any manner inconsistent with this Section 2. 
  
 (c) The Shareholder agrees that, until the earlier of (i) September 30, 2004 or (ii) the consummation of the
Merger by Placer or (iii) the abandonment (i.e., when Placer is no longer using its commercially reasonable efforts to consummate the Merger) of the Merger by Placer: 
  
 a) Other than in connection with the Merger, the Shareholder will not, directly or indirectly, through any representative
or otherwise, solicit or entertain offers from, negotiate with or in any manner encourage, discuss, accept, or consider any proposal of any Person relating to the acquisition of Placer, SCC, Placer Sierra Bank (a wholly-owned subsidiary of Placer)
or BOC stock or a material portion of Placer, SCC, Placer Sierra Bank or BOC, or any of their respective assets or businesses, in whole or in part, whether directly or indirectly, through purchase, merger, consolidation, or otherwise; and

  

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 b) The Shareholder will immediately notify Placer regarding any contact between Belvedere, the
Shareholder, SCC or BOC or any of their representatives, and any other Person regarding any such offer or proposal or any related inquiry. 
  
 (d) The Shareholder agrees and commits that, subject to (i) the occurrence of any event not wholly within Belvedere’s control and
relating to another party or arising with respect to general economic or market conditions which in either case would cause the managing underwriter for the IPO to decline to execute, deliver and perform its obligations under the underwriting
agreement with Placer and the Shareholder with respect to the IPO; (ii) the declaration as effective of the Registration Statement; and (iii) the Letter of Intent not being terminated by any party thereto, the Shareholder hereby commits that it will
cause to be sold pursuant to the Registration Statement that number of shares of Placer stock held by the Shareholder as would cause the Shareholder to be the beneficial owner of no more than 49.9% of Placer’s issued and outstanding common
stock upon completion of the IPO unless the managing underwriter for the IPO advises Belvedere in writing that due to market factors the IPO should not be consummated or the number of shares of Placer stock to be underwritten should be limited (in
which case, the Shareholder will sell the maximum amount advisable by the managing underwriter). 
  
 (e) The Shareholder agrees that without the prior written consent of Placer it will not: (i) sell, transfer, assign or otherwise dispose
of or (ii) pledge, mortgage or otherwise encumber any of the Shares without notice to such transferee, assignee, recipient, mortgagee or secured party, of the Merger Agreement and of this Shareholder Agreement. 
  
 (f) In the manner provided and only to the extent provided
in this Section 2(f), the Shareholder shall indemnify and hold Placer harmless from any loss, cost or damages arising from or based upon settlement, compromise or adverse judgment in the action titled Bank of Orange County v. Azar, pending in
Orange County Superior Court as action number 02CC00338 (“CVB Action”). The indemnity obligation of the Shareholder under this Section 2(f) shall be limited to the extent that Placer, SCC or BOC become liable to pay dissenting
former shareholders of Cerritos Valley Bank an amount in excess of $9.79 per share but not in excess of $14.75 per share, plus any and all interest, penalties or fees associated therewith. To facilitate and ensure performance of such limited
indemnity, immediately upon the effective date of the first sale of securities to the public by Placer or the Shareholder under the Registration Statement, the Shareholder shall deposit $2,600,000.00 (“Escrow Deposit”) with an
independent escrow agent (“Escrow Agent”), pursuant to an escrow agreement (“Escrow 
  

 4 

 Agreement”), in form and substance satisfactory to Placer and the Shareholder. Among other
things, the Escrow Agreement will provide that upon settlement, compromise or final resolution of the CVB Action, the Escrow Agent shall promptly distribute the Escrow Deposit as follows: (i) first, to Placer in an amount equal to the
Shareholder’s indemnity obligation under this Section 2(f), if any; and (ii) second, all amounts remaining in the Escrow Deposit following the payment contemplated by subsection (i) immediately above shall be paid to the Shareholder. The escrow
shall be the same escrow as is now in possession of the funds tendered by BOC to the dissenting shareholders. 
  
 3.     Cooperation. The Shareholder hereby agrees to use its commercially reasonable efforts in good faith to take, or cause to
be taken, all actions, and to do, or cause to be done, all things necessary, proper or desirable or advisable to consummate and make effective the Merger and the other transactions contemplated by the Merger Agreement as promptly as practicable,
including cooperating with Placer in the satisfaction of the conditions set forth in Article VII of the Merger Agreement. Placer hereby agrees to use its commercially reasonable efforts in good faith to take, or cause to be taken, all actions, and
to do, or cause to be done, all things necessary, proper or desirable or advisable to consummate and make effective the Merger and the other transactions contemplated by the Merger Agreement as promptly as practicable, including the satisfaction of
the conditions set forth in Article VII of the Merger Agreement. 
  
 4.     Costs. Each party will be responsible for and bear all of its own costs and expenses (including any broker’s or finder’s fees and the expenses of its representatives) incurred at any time in
connection with pursuing or consummating the Merger and the IPO; provided, however, that Placer will be responsible for Belvedere’s and the Shareholder’s expenses in connection with the Shareholder’s participation in the IPO as set
forth in the Amended and Restated Registration Rights Agreement, dated as of March 15, 2004, between Placer and the Shareholder (the “Registration Rights Agreement”), and provided, further, that if for any reason wholly within
Belvedere’s control Belvedere fails to fulfill its obligations under Section 2(d) hereof, then Belvedere shall reimburse, or shall cause the Shareholder to reimburse, Placer for all of its costs and expenses arising from, relating to or in
connection with the Merger (including, without limitation, all legal, accounting, financial and other advisor fees) to the extent that such costs and expenses would not have been incurred absent the efforts regarding the Merger. 
  
 5.     Termination. Except as provided in Section
7(k), the obligations of the Shareholder hereunder shall terminate upon the consummation of the Merger. If the Merger is not consummated, the obligations of the Shareholder hereunder other than those proposed in Section 7(l) shall terminate upon the
termination of the Merger Agreement in accordance with its terms. 
  
 6.     Specific Performance. The Shareholder acknowledges that it would be impossible to determine the amount of damages that would result from any breach of any 
  

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 of its obligations under this Agreement and that the remedy at law for any breach, or threatened breach, would likely be
inadequate and, accordingly, agrees that Placer shall, in addition to any other rights or remedies which it may have at law or in equity, be entitled to seek such equitable and injunctive relief as may be available from any court of competent
jurisdiction to restrain the Shareholder from violating any of its obligations under this Agreement. In connection with any action or proceeding for such equitable or injunctive relief, the Shareholder hereby waives any claim or defense that a
remedy at law alone is adequate and agrees, to the maximum extent permitted by law, to have the obligations of the Shareholder under this Agreement specifically enforced against it, without the necessity of posting bond or other security, and
consents to the entry of equitable or injunctive relief against the Shareholder enjoining or restraining any breach or threatened breach of this Agreement. 
  
 7. Miscellaneous. 
  
 (a) Definitional Matters. 
  
 (i) Unless the context otherwise requires, “Person” shall mean an individual, bank, corporation (including not-for-profit),
joint stock company, general or limited partnership, limited liability company, joint venture, estate, business trust, trust, association, organization or other entity of any kind or nature. 
  
 (ii) For purposes of this Agreement, beneficial ownership
shall be determined in accordance with Rule 13d-3 under the Securities Exchange Act of 1934, as amended. 
  
 (iii) All capitalized terms used but not defined in this Agreement shall have the respective meanings that the Merger Agreement ascribes
to such terms. 
  
 (iv) The section and paragraph
captions herein are for convenience of reference only, do not constitute part of this Agreement and shall not be deemed to limit or otherwise affect any of the provisions hereof. 
  
 (b) Entire Agreement. This Agreement and the Registration Rights Agreement constitute the entire
agreement between the parties hereto with reference to the transactions contemplated hereby and supersede all prior oral or written agreements, understandings, representations and warranties, and courses of conduct and dealing between the parties on
the subject matter hereof. 
  
 (c) Parties in
Interest. This Agreement shall be binding upon and inure solely to the benefit of each party hereto and their respective successors and assigns. Nothing in this Agreement, express or implied, is intended to confer upon any other Person, other
than parties hereto or their respective successors or assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement. 
  

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 (d) Assignment. This Agreement shall not be assignable by law or otherwise without
the prior written consent of the other party hereto; provided, however, that Placer may assign any of its rights and obligations hereunder to any of its affiliates or to any other entity which may acquire all or substantially all of the
assets, shares or business of Placer or any of its subsidiaries or any entity with or into which Placer or any of its subsidiaries may be consolidated or merged. 
  
 (e) Modifications; Waivers. This Agreement shall not be amended, altered or modified in any manner
whatsoever, except by a written instrument executed by the parties hereto. No waiver of any breach or default hereunder shall be considered valid unless in writing and signed by the party giving such waiver, and no such waiver shall be deemed a
waiver of any subsequent breach of the same or similar nature. 
  
 (f) Severability. Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity and
unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to
be only so broad as is enforceable. 
  
 (g)
Governing Law. This Agreement shall be deemed to be made in and in all respects shall be interpreted, construed and governed by and in accordance with the laws of the State of California, without regard to the conflict of law principles
thereof. 
  
 (h) Attorney’s Fees. The
prevailing party in any litigation, arbitration, mediation, bankruptcy, insolvency or other proceeding (“Proceeding”) relating to the enforcement or interpretation of this Agreement may recover from the unsuccessful party all
reasonable fees and disbursements of counsel (including expert witness and other consultants’ fees and costs) relating to or arising out of (a) the Proceeding (whether or not the Proceeding results in a judgment) and (b) any post-judgment or
post-award Proceeding including, without limitation, one to enforce or collect any judgment or award resulting from any Proceeding. All such judgments and awards shall contain a specific provision for the recovery of all such subsequently incurred
costs, expenses, fees and disbursements of counsel. 
  
 (i) Counterparts. This Agreement may be executed in one or more counterparts (including by facsimile), each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument. 
  

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 (j) Arbitration. The parties shall resolve all claims or disputes arising from,
relating to or in connection with this Agreement by submission thereof to binding arbitration to be held in Sacramento, California, conducted by the American Arbitration Association for determination pursuant to its Commercial Arbitration Rules.

  
 (k) Survival of Certain Provisions.
The provisions of Sections 1(d), 2(d), 2(e), 2(f), 4, 6 and 7 shall survive the Merger notwithstanding any contrary provision of the Merger Agreement. 
  
 (l) Notices. All notices, requests, instructions and other communications to be given hereunder by any party to the other shall be
in writing and shall be deemed given if personally delivered, telecopied (with confirmation) or mailed by registered or certified mail, postage prepaid (return receipt requested), to such party at its address set forth below or such other address as
such party may specify by notice to the other party. 
  
 If to Placer, to: 
  
 Placer Sierra
Bancshares 
 525 J. Street 
 Sacramento, California 95814 
 Attention: Ronald W. Bachli 
 Telephone: (916) 554-4820 
 Facsimile: (916) 329-9236 
  
 with a copy to: 
  
 Downey Brand LLP 
 555 Capitol Mall 
 10th Floor 
 Sacramento, CA 95814 
 Attention: D. Steven Blake 
 and James K. Dyer 
 Telephone: (916) 444-1000 
 Facsimile: (916) 444-2100 
  
 If to the Shareholder, to: 
  
 California Community Financial Institutions Fund Limited 
 Partnership 
 c/o Belvedere Capital Partners LLC 
 One Maritime Plaza, Suite 825 
 San Francisco, CA 94111 
  

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 Telephone: (415) 434-1236 
 Facsimile: (415) 434-9918 
 Attention: J. Thomas Byrom, Manager 
  
 with a copy to: 
  
 Wilson Sonsini Goodrich & Rosati, P.C. 
 650 Page Mill Road 
 Palo Alto, CA 94304 
 Attention: Robert S. Fore 
 Telephone: (650) 565-3622 
 Facsimile: (650) 493-6811 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in counterparts by their duly authorized representatives, all as of the
day and year first above written. 
  

			
	 PLACER SIERRA BANCSHARES

		
	 By:
	 	 /S/    WILLIAM J. SLATON

	 	 	Name: William J. Slaton
	 	 	 Title:    Co-Chair
        Acquisition Committee
of
        Board of Directors

	
	CALIFORNIA COMMUNITY
FINANCIAL INSTITUTIONS FUND
LIMITED PARTNERSHIP
	
	By Belvedere Capital Partners LLC, General
Partner
		
	 By:
	 	 /S/    J. THOMAS BYROM

	 	 	 Name: J. Thomas Byrom

	 	 	 Title:  Manager

  

 92002 Stock Option Plan of Southland Capital Co.

 Exhibit 10.36 
  
 SOUTHLAND CAPITAL CO. 
 2002 STOCK OPTION PLAN 

 TABLE OF CONTENTS 
  

							
	 1.
	  	PURPOSE.	  	2
	 2.
	  	DEFINITIONS.	  	2
	 	  	(a)	  	“Affiliate”	  	2
	 	  	(b)	  	“Board of Directors”	  	2
	 	  	(c)	  	“Code”	  	2
	 	  	(d)	  	“Committee”	  	2
	 	  	(e)	  	“Company”	  	2
	 	  	(f)	  	“Effective Date”	  	2
	 	  	(g)	  	“Employee”	  	2
	 	  	(h)	  	“Exchange Act”	  	2
	 	  	(i)	  	“Exercise Price”	  	2
	 	  	(j)	  	“Fair Market Value”	  	2
	 	  	(k)	  	“ISO”	  	3
	 	  	(l)	  	“Nonstatutory Option”	  	3
	 	  	(m)	  	“Option”	  	3
	 	  	(n)	  	“Optionee”	  	3
	 	  	(o)	  	“Payroll Employee”	  	3
	 	  	(p)	  	“Plan”	  	3
	 	  	(q)	  	“Service”	  	3
	 	  	(r)	  	“Share”	  	3
	 	  	(s)	  	“Stock”	  	4
	 	  	(t)	  	“Stock Option Agreement”	  	5
	 	  	(u)	  	“Substitute Option”	  	5
	 	  	(v)	  	“Terminating Event”	  	2
	 	  	(w)	  	“Vesting Event”	  	2
	 	  	(x)	  	“Total and Permanent Disability”	  	5
	 3.
	  	ADMINISTRATION.	  	5
	 	  	(a)	  	Committee Membership.	  	5
	 	  	(b)	  	Committee Procedures.	  	5
	 	  	(c)	  	Committee Responsibilities.	  	5
	 4.
	  	ELIGIBILITY.	  	6
	 	  	(a)	  	General Rules.	  	6
	 	  	(b)	  	Ten-Percent Stockholders.	  	6
	 	  	(c)	  	Attribution Rules.	  	6
	 	  	(d)	  	Outstanding Stock.	  	6
	 5.
	  	STOCK SUBJECT TO PLAN.	  	6
	 	  	(a)	  	Basic Limitation.	  	6
	 	  	(b)	  	Additional Shares.	  	7
	 6.
	  	TERMS AND CONDITIONS OF OPTIONS.	  	7
	 	  	(a)	  	Stock Option Agreement.	  	7
	 	  	(b)	  	Number of Shares.	  	7
	 	  	(c)	  	Exercise Price.	  	7
	 	  	(d)	  	Withholding Taxes.	  	7
	 	  	(e)	  	Exercisability.	  	8
	 	  	(f)	  	Term.	  	8
	 	  	(g)	  	Transferability.	  	9
	 	  	(h)	  	No Rights as a Shareholder.	  	9
	 	  	(i)	  	Modification, Extension and Renewal of Options.	  	9
	 	  	(j)	  	Substitute Options.	  	9

							
	 7.
	  	PAYMENT FOR SHARES.	  	10
	 	  	(a)	  	General Rule.	  	10
	 	  	(b)	  	Surrender of Stock Subject to Vested Option.	  	10
	 	  	(c)	  	Surrender of Previously Owned Stock.	  	10
	 	  	(d)	  	Exercise/Sale.	  	10
	 	  	(e)	  	Exercise/Pledge.	  	10
	 	  	(f)	  	Withholding Taxes.	  	10
	 8.
	  	ADJUSTMENT UPON CHANGES IN CAPITALIZATION.	  	11
	 	  	(a)	  	Adjustments Upon Changes in Capitalization.	  	11
	 	  	(b)	  	Reservation of Rights.	  	11
	 9.
	  	TERMINATING EVENTS.	  	11
	 10.
	  	SECURITIES LAWS.	  	12
	 11.
	  	NO RETENTION RIGHTS.	  	12
	 12.
	  	DURATION AND AMENDMENTS.	  	12
	 	  	(a)	  	Term of the Plan.	  	12
	 	  	(b)	  	Right to Amend or Terminate the Plan.	  	12
	 	  	(c)	  	Effect of Amendment or Termination.	  	12
	 13.
	  	GOVERNING LAW; INTEGRATION	  	13

 SOUTHLAND CAPITAL CO. 2002 STOCK OPTION PLAN 
  

	1.	PURPOSE. 

  
 The purpose of the Plan is to offer selected employees, directors and consultants an opportunity to acquire a proprietary interest in the success of the Company, or to increase such interest, by purchasing Shares of
the Company’s Common Stock. The Plan provides both for the grant of Nonstatutory Options as well as Incentive Stock Options intended to qualify under Section 422 of the Code. 
  

	2.	DEFINITIONS. 

  

	 	(a)	“Affiliate” shall mean any corporation, partnership or limited liability company which controls, is controlled by, or is under common control with, the Company. A
corporation, partnership or limited liability company that attains the status of an Affiliate on a date after the adoption of the Plan shall be considered an Affiliate commencing as of such date. 

  

	 	(b)	“Board of Directors” shall mean the Board of Directors of the Company, as constituted from time to time. 

  

	 	(c)	“BOC” shall mean Bank of Orange County, a California corporation. 

  

	 	(d)	“Code” shall mean the Internal Revenue Code of 1986, as amended. 

  

	 	(e)	“Committee” shall mean a committee of the Board of Directors, as described in Section 3(a), or in the absence of such a committee, the Board of Directors.

  

	 	(f)	“Company” shall mean Southland Capital Co., a California corporation. 

  

	 	(g)	“Company Terminating Event” shall mean the occurrence of any of the following events: 

  

	 	(i)	the consummation of a plan of dissolution or liquidation of the Company; 

  

	 	(ii)	the individuals who, as of the 2002 Annual Meeting of Shareholders of the Company, are members of the Board of Directors of the Company (the “Incumbent Board”), cease for
any reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment of any new director or the election or nomination for election by the Company’s shareholders of any new director was approved
by a vote of at least a majority of the Incumbent Board, such new director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; provided, further, however, that no individual shall be considered a member of the
Incumbent Board if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of
proxies or consents by or on behalf of a “Person”) (as the term person is used for purposes of Section 13(d) or 14(d) of the Exchange Act) other than the Board of Directors (a “Proxy Contest”) including by reason of any agreement
intended to avoid or settle any Election Contest or Proxy Contest; 

  

	 	(iii)	the consummation of a plan of reorganization, merger or consolidation involving the Company, except for a reorganization, merger or consolidation where (A) the shareholders of the
Company immediately prior to such reorganization, merger or 

 Southland Capital Co. 
 2002 Stock Option Plan 
  

 consolidation own directly or indirectly at least 50% of the combined voting power of the
outstanding voting securities of the corporation resulting from such reorganization, merger or consolidation (the “Surviving Corporation”) in substantially the same proportion as their ownership of voting securities of the Company
immediately prior to such reorganization, merger or consolidation and the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such reorganization, merger or consolidation constitute
at least 50% of the members of the board of directors of the Surviving Corporation, or a corporation beneficially directly or indirectly owning a majority of the voting securities of the Surviving Corporation, or (B) the Company is reorganized,
merged or consolidated with a corporation in which any shareholder owning at least 50% of the combined voting power of the outstanding voting securities of the Company immediately prior to such reorganization, merger or consolidation, owns at least
50% of the combined voting power of the outstanding voting securities of the corporation resulting from such reorganization, merger or consolidation. 
  

	 	(iv)	the sale of all or substantially all of the assets of the Company to another Person; 

  

	 	(v)	the acquisition of beneficial ownership of stock representing more than fifty percent (50%) of the voting power of the Company then outstanding by another Person.

  

	 	(h)	“Company Vesting Event” shall mean the approval by the shareholders of the Company of any matter, plan or transaction which would constitute a Company Terminating Event,
or if any Company Terminating Event occurs without shareholder approval, the occurrence of such Company Terminating Event. 

  

	 	(i)	“Effective Date” shall mean the earlier of the date of adoption of the Plan by the Board of Directors of the Company or the approval of the Plan by the shareholders of the
Company in the manner required by applicable law or regulation. 

  

	 	(j)	“Employee” shall mean: 

  

	 	(i)	Any individual who is a full- or part-time salaried or hourly employee (i.e., paid in accordance with normal payroll procedures) of the Company or of an Affiliate (a “Payroll
Employee”); 

  

	 	(ii)	A member of the Board of Directors or a member of the Board of Directors of any Affiliate; and 

  

	 	(iii)	An independent contractor who performs services for the Company or an Affiliate and who is not a member of the Board of Directors. Service as an independent contractor or member of
the Board of Directors shall be considered employment for all purposes of the Plan, except as provided in Section 4(a). 

  

	 	(k)	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

  

	 	(l)	“Exercise Price” shall mean the amount for which one Share may be purchased upon exercise of an Option, as specified by the Committee in the applicable Stock Option
Agreement. 

  

	 	(m)	“Fair Market Value” shall mean the market price of Stock, determined by the Committee as follows: 

  

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 Southland Capital Co. 
 2002 Stock Option Plan 
  

	 	(i)	If Stock was traded over-the-counter on the date in question but was not traded on the NASDAQ system or the NASDAQ National Market System, then the Fair Market Value shall be equal
to the mean between the last reported representative bid and asked prices quoted for such date by the principal automated inter-dealer quotation system on which Stock is quoted or, if Stock is not quoted on any such system, by the “Pink
Sheets” published by the National Quotation Bureau, Inc.; 

  

	 	(ii)	If Stock was traded over-the-counter on the date in question and was traded on the NASDAQ system or the NASDAQ National Market System, then the Fair Market Value shall be equal to
the last transaction price quoted for such date by the NASDAQ system or the NASDAQ National Market System; 

  

	 	(iii)	If Stock was traded on a stock exchange on the date in question, then the Fair Market Value shall be equal to the closing price reported by the applicable composite transactions
report for such date; and 

  

	 	(iv)	If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by the Committee in good faith on such basis as it deems appropriate. In all cases,
the determination of Fair Market Value by the Committee shall be conclusive and binding on all persons. 

  

	 	(n)	“ISO” shall mean an employee incentive stock option described in Section 422(b) of the Code. 

  

	 	(o)	“Nonstatutory Option” shall mean a stock option not described in Sections 422(b) or 423(b) of the Code. 

  

	 	(p)	“Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares. 

  

	 	(q)	“Optionee” shall mean an individual who holds an Option. 

  

	 	(r)	“Payroll Employee” shall have the meaning ascribed in paragraph (j)(i) hereof. 

  

	 	(s)	“Plan” shall mean this Southland Capital Co. 2002 Stock Option Plan, as it may be amended from time to time. 

  

	 	(t)	“Service” shall mean service as an Employee. 

  

	 	(u)	“Share” shall mean one share of Stock, as adjusted in accordance with Section 8 (if applicable). 

  

	 	(v)	“PCC II” shall mean Placer Capital Co. II, a California corporation. 

  

	 	(w)	“PCC II Employee” shall mean: 

  

	 	(i)	Any individual who is a full- or part-time salaried or hourly employee (i.e., paid in accordance with normal payroll procedures) of PCC II or PSB (a “PCC II Payroll
Employee”); 

  

	 	(ii)	A member of the Board of Directors of PCC II or PSB; and 

  

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	 	(iii)	An independent contractor who performs services for PCC II or PSB and who is not a member of the Board of Directors of PCC II or PSB. 

  

	 	(x)	“PCC Terminating Event” shall mean the occurrence of any of the following events: 

  

	 	(i)	the consummation of a plan of dissolution or liquidation of PCC II or PSB; 

  

	 	(ii)	the individuals who, as of the 2002 Annual Meeting of Shareholders of PCC II, are members of the Board of Directors of PCC II (the “PCC II Incumbent Board”), cease for any
reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment of any new director or the election or nomination for election by PCC II’s shareholders of any new director was approved by a vote
of at least a majority of the Incumbent Board, such new director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; provided, further, however, that no individual shall be considered a member of the Incumbent Board
if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents
by or on behalf of a “Person”) (as the term person is used for purposes of Section 13(d) or 14(d) of the Exchange Act) other than the Board of Directors (a “Proxy Contest”) including by reason of any agreement intended to avoid
or settle any Election Contest or Proxy Contest; 

  

	 	(iii)	the consummation of a plan of reorganization, merger or consolidation involving PCC II or PSB, except for a reorganization, merger or consolidation where (A) the shareholders of PCC
II immediately prior to such reorganization, merger or consolidation own directly or indirectly at least 50% of the combined voting power of the outstanding voting securities of the corporation resulting from such reorganization, merger or
consolidation (the “Surviving Corporation”) in substantially the same proportion as their ownership of voting securities of PCC II immediately prior to such reorganization, merger or consolidation and the individuals who were members of
the PCC II Incumbent Board immediately prior to the execution of the agreement providing for such reorganization, merger or consolidation constitute at least 50% of the members of the board of directors of the Surviving Corporation, or a corporation
beneficially directly or indirectly owning a majority of the voting securities of the Surviving Corporation, or (B) PCC II or PSB is reorganized, merged or consolidated with a corporation in which any shareholder owning at least 50% of the combined
voting power of the outstanding voting securities of PCC II immediately prior to such reorganization, merger or consolidation, owns at least 50% of the combined voting power of the outstanding voting securities of the corporation resulting from such
reorganization, merger or consolidation. 

  

	 	(iv)	the sale of all or substantially all of the assets of PCC II or PSB to another Person; 

  

	 	(v)	the acquisition of beneficial ownership of stock representing more than fifty percent (50%) of the voting power of PCC II or PSB then outstanding by another Person.

  

	 	(y)	“PCC II Vesting Event” shall mean the approval by the shareholders of PCC II of any matter, plan or transaction which would constitute an PCC II Terminating Event, or if
any PCC II Terminating Event occurs without shareholder approval, the occurrence of such PCC II Terminating Event. 

  

	 	(z)	“Stock” shall mean the Common Stock of the Company. 

  

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 Southland Capital Co. 
 2002 Stock Option Plan 
  

	 	(aa)	“Stock Option Agreement” shall mean the agreement between the Company and an Optionee which contains the terms, conditions and restrictions pertaining to his or her
Option. 

  

	 	(bb)	“Substitute Option” shall mean an option described in Section 6(j). 

  

	 	(cc)	“Total and Permanent Disability” shall mean as defined in Section 22(e)(3) of the Code. 

  

	3.	ADMINISTRATION. 

  

	 	(a)	Committee Membership. The Board of Directors shall have the authority to administer the Plan but may delegate its administrative powers under the Plan, in whole or in part, to one
or more committees of the Board of Directors. With respect to the participation of Employees who are subject to Section 16 of the Exchange Act, the Plan may be administered by a committee composed solely of two or more members of the Board of
Directors who qualify as “nonemployee directors” as defined in Securities and Exchange Commission Rule 16b-3 under the Exchange Act. With respect to the participation of Employees who may be considered “covered employees” under
Section 162(m) of the Code, the Plan may be administered by a committee composed solely of two or more members of the Board of Directors who qualify as “outside directors” as defined by the Internal Revenue Service for plans intended to
qualify for an exemption under Section 162(m)(4)(C) of the Code. If the committee members meet both such qualifications, then one committee may administer the Plan both with respect to Employees who are subject to Section 16 of the Exchange Act or
who are considered to be “covered employees” under Section 162(m) of the Code. The Board of Directors may appoint a separate committee, consisting of one or more members of the Board of Directors who do not meet such qualifications. Such
committee may administer the Plan with respect to Employees who are not officers of the Company or members of the Board of Directors, may grant Options under the Plan to such Employees and may determine the timing, number of Shares and other terms
of such grants. 

  

	 	(b)	Committee Procedures. The Board of Directors shall designate one of the members of any Committee appointed under paragraph (a) as chairman. Any such Committee may hold meetings at
such times and places as it shall determine. The acts of a majority of the Committee members present at meetings at which a quorum exists, or acts reduced to or approved in writing by all Committee members, shall be valid acts of the Committee.

  

	 	(c)	Committee Responsibilities. Subject to the provisions of the Plan, any such Committee shall have full authority and discretion to take the following actions:

  

	 	(i)	To interpret the Plan and to apply its provisions; 

  

	 	(ii)	To adopt, amend or rescind rules, procedures and forms relating to the Plan; 

  

	 	(iii)	To authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan; 

  

	 	(iv)	To determine when Options are to be granted under the Plan; 

  

	 	(v)	To select the Optionees; 

  

	 	(vi)	To determine the number of Shares to be made subject to each Option; 

  

	 	(vii)	To prescribe the terms and conditions of each Option, including (without limitation) the Exercise Price, to determine whether such Option is to be classified as an ISO or as a
Nonstatutory Option, and to specify the provisions of the Stock Option Agreement relating to such Option; 

  

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 Southland Capital Co. 
 2002 Stock Option Plan 
  

	 	(viii)	To amend any outstanding Stock Option Agreement, subject to applicable legal restrictions and to the consent of the Optionee who entered into such agreement;

  

	 	(ix)	To prescribe the consideration for the grant of each Option under the Plan and to determine the sufficiency of such consideration; and 

  

	 	(x)	To take any other actions deemed necessary or advisable for the administration of the Plan. 

  
 Notwithstanding the foregoing, the Committee shall annually deliver financial statements of the Company to all Optionees to
whom such delivery is required by Section 260.140.46 of the California Code of Regulations, or successor statute or regulation. 
  
 All decisions, interpretations and other actions of the Committee shall be final and binding on all Optionees, and all persons deriving their rights from
an Optionee. No member of the Committee shall be liable for any action that he or she has taken or has failed to take in good faith with respect to the Plan or any Option. 
  
 4. ELIGIBILITY. 
  

	 	(a)	General Rules. Only Employees shall be eligible for designation as Optionees by the Committee. In addition, only Payroll Employees shall be eligible for the grant of ISOs.

  

	 	(b)	Ten-Percent Shareholders. An Employee who owns more than 10 percent of the total combined voting power of all classes of outstanding stock of the Company or any of its Subsidiaries
shall not be eligible for the grant of an ISO unless: 

  

	 	(i)	The Exercise Price is at least 110 percent of the Fair Market Value of a Share on the date of grant; and 

  

	 	(ii)	Such ISO by its terms is not exercisable after the expiration of five years from the date of grant. 

  

	 	(c)	Attribution Rules. For purposes of Subsection (b) above, in determining stock ownership, an Employee shall be deemed to own the stock owned, directly or indirectly, by or for such
Employee’s brothers, sisters, spouse, ancestors and lineal descendants. Stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be deemed to be owned proportionately by or for its stockholders, partners
or beneficiaries. Stock with respect to which such Employee holds an option shall not be counted. 

  

	 	(d)	Outstanding Stock. For purposes of Subsection (b) above, “outstanding stock” shall include all stock actually issued and outstanding immediately after the grant.
“Outstanding stock” shall not include shares authorized for issuance under outstanding options held by the Employee or by any other person. 

  
 5. STOCK SUBJECT TO PLAN. 
  

	 	(a)	Basic Limitation. Shares reserved for issuance pursuant to the exercise of Options granted under the Plan shall be authorized but unissued Shares. The aggregate number of Shares
which may be issued pursuant to the exercise of Options granted under the Plan shall be 

  

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 Southland Capital Co. 
 2002 Stock Option Plan 
  

 2,731,930, all of which may be issued pursuant to the exercise of ISOs or Nonstatutory Options
granted under the Plan. In no event shall Options be granted for a number of Shares which exceeds the number of Shares reserved for issuance under the Plan. The Company, during the term of the Plan, shall at all times reserve and keep available
sufficient Shares to satisfy the requirements of the Plan. At no time shall the total number of Shares issuable upon exercise of all outstanding Options and the total number of Shares provided for under any stock bonus or similar plan of the Company
exceed thirty percent (30%) of the then outstanding Shares of the Company’s Common Stock, calculated in accordance with the conditions and exclusions of Rule 260.140.45 of the California Code of Regulations, or successor statute or regulation.

  

	 	(b)	Additional Shares. In the event that any outstanding Option granted under this Plan, including Substitute Options, for any reason expires or is canceled or otherwise terminated, the
Shares allocable to the unexercised portion of such Option shall become available for the purposes of this Plan. 

  
 6. TERMS AND CONDITIONS OF OPTIONS. 
  

	 	(a)	Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement executed by the Optionee and the Company. Such Option shall be subject
to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Committee deems appropriate for inclusion in a Stock Option Agreement. The provisions of
the various Stock Option Agreements entered into under the Plan need not be identical. 

  

	 	(b)	Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance
with Section 8. The Stock Option Agreement shall also specify whether the Option is an ISO or a Nonstatutory Option. For as long as the Code shall so provide, Options granted to any Payroll Employee under the Plan (and any other incentive stock
option plans of the Company) which are intended to constitute Incentive Stock Options shall not constitute Incentive Stock Options to the extent that such Options, in the aggregate, become exercisable for the first time in any one (1) calendar year
for shares of Stock with an aggregate fair market value (determined as of the respective date or dates of grant) of more than $100,000. 

  

	 	(c)	Exercise Price. Each Stock Option Agreement shall specify the exercise Price. The Exercise Price of an Option shall not be less than 100 percent of the Fair Market Value of a Share
on the date of grant, except as otherwise provided in Section 4(b) with respect to ISOs and Section 6(j) with respect to Substitute Options. The Exercise Price shall be payable in a form described in Section 7. 

  

	 	(d)	Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make such arrangements as the Committee may require for the satisfaction of any federal, state,
local or foreign withholding tax obligations that arise in connection with such exercise. The Optionee shall also make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax
obligations that may arise in connection with the disposition of Shares acquired by exercising an Option. The Committee may permit the Optionee to satisfy all or part of his or her tax obligations 

  

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 Southland Capital Co. 
 2002 Stock Option Plan 
  

 related to the Option by having the Company withhold a portion of any Shares that otherwise would be
issued to him or her or by surrendering any Shares that previously were acquired by him or her. Such Shares shall be valued at their Fair Market Value on the date when taxes otherwise would be withheld in cash. The payment of taxes by assigning
Shares to the Company, if permitted by the Committee, shall be subject to such restrictions as the Committee may impose. 
  

	 	(e)	Exercisability. Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable. The vesting of any Option shall be determined
by the Committee in its sole discretion; provided however, that: 

  

	 	(i)	Upon the occurrence of a Company Vesting Event, the Option shall become immediately exercisable as to all Shares covered by such Option, whether or not previously vested;

  

	 	(ii)	Upon the occurrence of an PCC II Vesting Event, if the Optionee was an PCC II Employee immediately prior to the PCC II Vesting Event the Option shall become immediately exercisable
as to all Shares covered by such Option, whether or not previously vested and, notwithstanding the provisions of Section 6(f)(iii) hereof, shall remain exercisable and shall not expire for a period of three (3) years following such PCC II Vesting
Event. 

  

	 	(iii)	In the event that an Optionee’s Service terminates, the Option shall be exercisable only to the extent the Option was vested as of the date of such termination, unless
otherwise specified in the Optionee’s Stock Option Agreement; and 

  

	 	(iv)	Options granted to Payroll Employees other than officers of the Company shall vest at the rate of at least 20 percent of the shares subject thereto per year over five (5) years from
the date of grant of the Option. 

  

	 	(f)	Term. Each Stock Option Agreement shall specify the term of the Option. No Option shall have a term exceeding 10 years from the date of grant. Subject to the preceding sentence, the
Committee in its sole discretion shall determine when an Option is to expire. In the event that the Optionee’s Service terminates: 

  

	 	(i)	As a result of such Optionee’s death or Total and Permanent Disability, the term of the Option shall expire twelve months (or such other period specified in the Optionee’s
Stock Option Agreement) after such death or Total and Permanent Disability but not later than the original expiration date specified in the Stock Option Agreement provided, however, that the expiration of the term of a Nonstatutory Option may
be extended for such further period as the Committee, in its sole discretion, may determine, to a date not later than the original expiration date specified in the Stock Option Agreement. 

  

	 	(ii)	If the Employee’s employment with the Company terminates (by resignation or otherwise) for cause, the term of the Option shall expire immediately upon such termination (notice
or advice of which shall subsequently be given by the Company), and thereafter neither the Employee nor the Employee’s estate shall be entitled to exercise the Option with respect to any Shares whatsoever, whether or not after such termination
the Employee may receive payment from the Company or for vacation pay, for services rendered prior to termination, for services for the day on which termination occurred, for salary in lieu of notice or for other benefits. For purposes of this
Paragraph (ii), “cause” shall mean an act of embezzlement, fraud, dishonesty or 

  

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 Southland Capital Co. 
 2002 Stock Option Plan 
  

 breach of fiduciary duty to the Company or its shareholders, disclosure of any of the secrets or
confidential information of the Company, the inducement of any client or customer of the Company to break any contract with the Company, or the inducement of any principal for whom the Company acts as agent to terminate such agency relationship, the
engagement of any conduct which constitutes unfair competition with the Company, the removal of Optionee from office by any court or bank regulatory agency, or such other similar acts which the Committee in its discretion reasonably determines to
constitute good cause for termination of Optionee’s Service. As used in this Paragraph (ii), Company includes Affiliates of the Company. 
  

	 	(iii)	As a result of termination for any reason other than Total and Permanent Disability, death or cause, the term of the Option shall expire three months (or such other period specified
in the Optionee’s Stock Option Agreement) after such termination, but not later than the original expiration date specified in the Stock Option Agreement provided, however, that the expiration of the term of a Nonstatutory Option may be
extended for such further period as the Committee, in its sole discretion, may determine, to a date not later than the original expiration date specified in the Stock Option Agreement. 

  

	 	(g)	Transferability. During an Optionee’s lifetime, such Optionee’s Options shall be exercisable only by him or her. An Option shall not be transferable, other than by will or
by the laws of descent and distribution. 

  

	 	(h)	No Rights as a Shareholder. An Optionee, or a transferee of an Optionee, shall have no rights as a shareholder with respect to any Shares covered by his or her Option until the date
of the issuance of a stock certificate for such Shares. No adjustments shall be made, except as provided in Section 8. 

  

	 	(i)	Modification, Extension and Renewal of Options. Within the limitations of the Plan, the Committee may modify, extend or renew outstanding Options or may accept the cancellation of
outstanding Options (to the extent not previously exercised) in return for the grant of new Options at the same or a different price. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, impair such
Optionee’s rights or increase his or her obligations under such Option. 

  

	 	(j)	Substitute Options. If the Company at any time should succeed to the business of another corporation through merger or consolidation, or through the acquisition of stock or assets
of such corporation, Options may be granted under the Plan in substitution of options previously granted by such corporation to purchase shares of its stock which options are outstanding at the date of the succession (“Surrendered
Options”). The Committee shall have discretion to determine the extent to which such Substitute Options shall be granted, the persons to receive such Substitute Options, the number of Shares to be subject to such Substitute Options, and the
terms and conditions of such Substitute Options which shall, to the extent permissible within the terms and conditions of the Plan, be equivalent to the terms and conditions of the Surrendered Options. The Exercise Price may be determined without
regard to Section 6(c); provided however, that the Exercise Price of each Substitute Option shall be an amount such that, in the sole and absolute judgment of the Committee (and if the Substitute Options are to be ISO’s, in compliance with
Section 424(a) of the Code), the economic benefit provided by such Substitute Option is not greater than the economic benefit represented by the Surrendered Option as of the date of the succession. 

  

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 Southland Capital Co. 
 2002 Stock Option Plan 
  

 7. PAYMENT FOR SHARES. 
  

	 	(a)	General Rule. The entire Exercise Price of Shares issued under the Plan shall be payable in lawful money of the United States of America in cash or by certified check, official bank
check, or the equivalent thereof acceptable to the Company at the time when such Shares are purchased, except as follows: 

  

	 	(i)	ISOs. In the case of an ISO granted under the Plan, payment shall be made only pursuant to the express provisions of the applicable Stock Option Agreement. However, the Committee
(in its sole discretion) may specify in the Stock Option Agreement that payment may be made pursuant to Subsections (b), (c), (d) or (e) below. 

  

	 	(ii)	Nonstatutory Options. In the case of a Nonstatutory Option granted under the Plan, the Committee (in its sole discretion) may accept payment pursuant to Subsections (b), (c), (d) or
(e) below. 

  

	 	(b)	Surrender of Stock Subject to Vested Option. To the extent that this Subsection (b) is applicable, payment may be made all or in part by Shares of the Company retained by the
Company from the Shares otherwise issuable upon exercise of a vested Option. Such retained Shares shall be valued at their Fair Market Value on the date when the new Shares are purchased under the Plan. 

  

	 	(c)	Surrender of Previously Owned Stock. To the extent that this Subsection (c) is applicable, payment may be made all or in part with Shares which have already been owned by the
Optionee or his or her representative for more than 6 months and which are surrendered to the Company in good form for transfer. Such Shares shall be valued at their Fair Market Value on the date when the new Shares are purchased under the Plan.

  

	 	(d)	Exercise/Sale. To the extent that this Subsection (d) is applicable, payment may be made by the delivery (on a form prescribed by the Company) of an irrevocable direction to a
securities broker approved by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes. 

  

	 	(e)	Exercise/Pledge. To the extent that this Subsection (e) is applicable, payment may be made by the delivery (on a form prescribed by the Company) of an irrevocable direction to
pledge Shares to a securities broker or lender approved by the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes.

  

	 	(f)	Withholding Taxes. The Company shall have the right upon the exercise of an Option to deduct any sums required to be withheld under federal, state or local tax laws or regulations.
The Company may condition the issuance of Shares upon exercise of any Option upon the payment by the Optionee of any sums required to be withheld under applicable laws or regulations. The Company has no duty to advise any Optionee of the existence
of any tax or any amounts which may be withheld. 

  

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 Southland Capital Co. 
 2002 Stock Option Plan 
  

 8. ADJUSTMENT UPON CHANGES IN CAPITALIZATION. 
  

	 	(a)	Adjustments Upon Changes in Capitalization. If the outstanding shares of Stock are increased, decreased, or changed into or exchanged for a different number or kind of shares or
securities of the Company, through a reorganization, merger, recapitalization, reclassification, stock split, reverse stock split, stock dividend, stock consolidation, or otherwise, without consideration to the Company, an appropriate and
proportionate adjustment shall be made in the number and kind of Shares as to which Options may be granted. A corresponding adjustment changing the number or kind of Shares subject to Options and the exercise price per Share allocated to unexercised
Options, or portions thereof, which shall have been granted prior to any such change, shall likewise be made. Any such adjustment, however, in an outstanding Option shall be made without change in the total price applicable to the unexercised
portion of the Option, but with a corresponding adjustment in the price for each Share subject to the Option. Any adjustment under this Section shall be made by the Committee, whose determination as to what adjustments shall be made, and the extent
thereof, shall be final and conclusive. No fractional shares of Stock shall be issued or made available under the Plan on account of any such adjustment, and fractional share interests shall be disregarded and the fractional share interest shall be
rounded down to the nearest whole number. 

  

	 	(b)	Reservation of Rights. Except as provided in this Section 8, an Optionee shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the
payment of any dividend or any other increase or decrease in the number of shares of stock of any class. Any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets. 

  
 9. TERMINATING EVENTS. 
  
 Not less than thirty (30) days prior to the occurrence of a Company
Terminating Event, the Committee or the Board shall notify each Optionee of the pendency of the Company Terminating Event. Upon the effective date of the Company Terminating Event, the Plan shall automatically terminate and all Options theretofore
granted shall terminate, unless provision is made in connection with such transaction for the continuance of the Plan and/or assumption of Options theretofore granted, or substitution for such Options with new stock options covering stock of a
successor corporation, or a parent or subsidiary corporation thereof, solely at the discretion of such successor corporation or parent or subsidiary corporation, with appropriate adjustments as to number and kind of shares and prices, in which event
the Plan and Options theretofore granted shall continue in the manner and under the terms so provided. If the Plan and unexercised Options shall terminate pursuant to the preceding sentence, all persons shall have the right to exercise the Options
then outstanding and not exercised at such time prior to the consummation of the transaction causing such termination as the Company shall designate, unless the Board shall have provided for the cancellation of such Options in exchange for a cash
payment equal to the excess of the Fair Market Value of the Stock as of the date of the Company Terminating Event over the exercise price of such Options. 
  

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 Southland Capital Co. 
 2002 Stock Option Plan 
  

 10. SECURITIES LAWS. 
  
 Shares shall not be issued under the Plan unless the issuance and delivery of such Shares complies with (or is exempt from)
all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange on which
the Company’s securities may then be listed. 
  
 Upon the
grant of an Option under this Plan, or upon the exercise of any Option granted under this Plan, the Company may require an Optionee to sign an investment covenant to the effect that such Option and such Stock will be acquired by the Optionee for his
or her own account for investment and not with a view to, or for sale in connection with, any distribution of the Option or Stock. The certificates representing the shares of Stock purchased under any Option granted under this Plan may contain such
legends as counsel for the Company shall deem necessary to comply with any applicable securities law, rule, or regulation. 
  
 All Options granted under the Plan are subject to the requirement that if at any time the Board of Directors or the Committee shall determine in its
discretion that the listing or qualification of the Shares subject thereto on any securities exchange or under any applicable law, or the consent or approval of any governmental regulatory body, or if, in the opinion of counsel to the Company,
compliance with any state or federal securities laws is necessary or desirable as a condition of or in connection with the issuance of Shares under the Option, the Optionee’s right to exercise any and all Options shall be suspended and the
Options may not be exercised in whole or in part unless such listing, qualification, consent, approval, or compliance shall have been effected or obtained free of any condition not acceptable to the Board of Directors or the Committee. 

 
 11. NO RETENTION RIGHTS. 
  
 Neither the Plan nor any Option shall be deemed to give any individual the
right to remain an employee or consultant of the Company or an Affiliate. The Company and its Affiliates reserve the right to terminate the Service of any employee or consultant at any time, with or without cause, subject to applicable laws and a
written employment agreement (if any). 
  
 12.
DURATION AND AMENDMENTS. 
  

	 	(a)	Term of the Plan. The Plan, as set forth herein, shall become effective as of the Effective Date. The Plan, if not extended, shall terminate automatically ten years after the
Effective Date. It may be terminated on any earlier date pursuant to Subsection(b) below. 

  

	 	(b)	Right to Amend or Terminate the Plan. The Board of Directors may amend, suspend or terminate the Plan at any time and for any reason. An amendment of the Plan shall be subject to
the approval of the Company’s shareholders only to the extent required by applicable laws or regulations. 

  

	 	(c)	Effect of Amendment or Termination. No Shares shall be issued or sold under the Plan after the termination thereof, except upon exercise of an Option granted prior to such
termination. The termination of the Plan, or any amendment thereof, shall not affect any Share previously issued or any Option previously granted under the Plan. 

  

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 Southland Capital Co. 
 2002 Stock Option Plan 
  

 13. GOVERNING LAW; INTEGRATION 
  
 This Plan and the rights and obligations of the Company and the participants
in this Plan shall be governed and construed according to the domestic substantive laws of the State of California without giving effect to choice or conflict of law provisions that would cause the application of the domestic substantive laws of any
other jurisdiction. This Plan and the Stock Option Agreements entered into from time to time pursuant to the Plan constitute the sole understanding of the Company and the participants with respect to the subject matter of the Plan and the Stock
Option Agreements. 
  

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