Document:

2004 Stock Plan

 Exhibit 10.08 
 GOOGLE INC. 
 2004 STOCK PLAN 
 As amended on June 21, 2004 
 As further amended on May 12, 2005

 As further amended on May 11, 2006 
 As further amended on January 30, 2007 
 As further amended on May 10, 2007

 1. Purposes of the Plan. The purposes of this Plan are: 
  

	 	•	 	 to attract and retain the best available personnel for positions of substantial responsibility, 

  

	 	•	 	 to provide additional incentive to Employees, Directors and Consultants, and 

  

	 	•	 	 to promote the success of the Company’s business. 

 The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock, Stock Appreciation Rights, Restricted Stock Units, Performance Units, Performance Shares and Other Stock Based
Awards. 
 2. Definitions. As used herein, the following definitions will apply: 
 (a) “Administrator” means the Board or any of its Committees as will be administering the Plan, in accordance with Section 4 of the
Plan. 
 (b) “Annual Revenue” means the Company’s or a business unit’s net sales for the Fiscal Year, determined
in accordance with generally accepted accounting principles; provided, however, that prior to the Fiscal Year, the Committee shall determine whether any significant item(s) shall be excluded or included from the calculation of Annual Revenue with
respect to one or more Participants. 
 (c) “Applicable Laws” means the requirements relating to the administration of
equity-based awards or equity compensation plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any
foreign country or jurisdiction where Awards are, or will be, granted under the Plan. 
 (d) “Award” means, individually or
collectively, a grant under the Plan of Options, SARs, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares or Other Stock Based Awards. 
 (e) “Award Agreement” means the written or electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan. The Award Agreement is subject to the terms and
conditions of the Plan. 
 (f) “Award Transfer Program” means any program instituted by the Administrator which would permit
Participants the opportunity to transfer any outstanding Awards to a financial institution or other person or entity selected by the Administrator. 
 (g) “Awarded Stock” means the Common Stock subject to an Award. 
 (h) “Board” means the Board of
Directors of the Company. 
 (i) “Cash Position” means the Company’s level of cash and cash equivalents. 
 (j) “Change in Control” means the occurrence of any of the following events: 
 (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined
in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities and within three
(3) years from the date of such acquisition, a merger or consolidation of the Company with or into the person (or affiliate thereof) holding such beneficial ownership of securities of the Company is consummated; or 

 (ii) The consummation of the sale or disposition by the Company of all or substantially all of the
Company’s assets; 
 (iii) A change in the composition of the Board occurring within a two-year period, as a result of which fewer than
a majority of the directors are Incumbent Directors. “Incumbent Directors” means directors who either (A) are Directors as of the effective date of the Plan, or (B) are elected, or nominated for election, to the Board with the
affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but will not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to
the election of directors to the Company); or 
 (iv) The consummation of a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities
of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.

 For purposes of this Section, “affiliate” will mean, with respect to any specified person, any other person that directly or
indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such specified person (“control,” “controlled by” and “under common control with” will mean the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through ownership of voting securities, by contact or credit arrangement, as trustee or executor, or otherwise). 
 (k) “Code” means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein will be a reference to any
successor or amended section of the Code. 
 (l) “Committee” means a committee of Directors or other individuals satisfying
Applicable Laws appointed by the Board in accordance with Section 4 of the Plan. 
 (m) “Common Stock” means the
Class A Common Stock of the Company, or in the case of Performance Units and certain Other Stock Based Awards, the cash equivalent thereof. 
 (n) “Company” means Google Inc., a Delaware corporation, or any successor thereto. 
 (o)
“Consultant” means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render services to such entity. 
 (p) “Controllable Profits” means as to any Plan Year, a business unit’s Annual Revenue minus (a) cost of sales, (b) research, development, and engineering expense, (c) marketing
and sales expense, (d) general and administrative expense, (e) extended receivables expense, and (f) shipping requirement deviation expense. 
 (q) “Customer Satisfaction MBOs” means as to any Participant for any Plan Year, the objective and measurable individual goals set by a “management by objectives” process and approved by the
Committee, which goals relate to the satisfaction of external or internal customer requirements. 
 (r) “Director” means a
member of the Board. 
 (s) “Disability” means total and permanent disability as defined in Section 22(e)(3) of the
Code, provided that in the case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by
the Administrator from time to time. 
 (t) “Dividend Equivalent” means a credit, made at the discretion of the
Administrator, to the account of a Participant in an amount equal to the cash dividends paid on one Share for each Share represented by an Award held by such Participant. 

 (u) “Earnings Per Share” means as to any Fiscal Year, the Company’s or a business
unit’s Net Income, divided by a weighted average number of common shares outstanding and dilutive common equivalent shares deemed outstanding, determined in accordance with generally accepted accounting principles. 
 (w) “Employee” means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the Company.
Neither service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute “employment” by the Company. 
 (x) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (y)
“Exchange Program” means a program under which (i) outstanding Awards are surrendered or cancelled in exchange for Awards of the same type (which may have lower exercise prices and different terms), Awards of a different type,
and/or cash, and/or (ii) the exercise price of an outstanding Award is reduced. The terms and conditions of any Exchange Program will be determined by the Administrator in its sole discretion. 
 (z) “Fair Market Value” means, as of any date and unless the Administrator determines otherwise, the value of Common Stock determined as
follows: 
 (i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the
Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the day of
determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
 (ii) If the Common
Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of Common Stock will be the mean between the high bid and low asked prices for the Common Stock for the day of
determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 
 (iii) In the
absence of an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator. 
 (iv)
Notwithstanding the preceding, for federal, state, and local income tax reporting purposes and for such other purposes as the Administrator deems appropriate, the Fair Market Value shall be determined by the Administrator in accordance with uniform
and nondiscriminatory standards adopted by it from time to time. 
 (aa) “Fiscal Year” means the fiscal year of the Company.

 (bb) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code and the regulations promulgated thereunder. 
 (cc) “Individual Objectives” means as to a
Participant, the objective and measurable goals set by a “management by objectives” process and approved by the Committee (in its discretion). 
 (dd) “Net Income” means as to any Fiscal Year, the income after taxes of the Company for the Fiscal Year determined in accordance with generally accepted accounting principles, provided that prior to
the Fiscal Year, the Committee shall determine whether any significant item(s) shall be included or excluded from the calculation of Net Income with respect to one or more Participants. 
 (ee) “New Orders” means as to any Plan Year, the firm orders for a system, product, part, or service that are being recorded for the
first time as defined in the Company’s Order Recognition Policy. 
 (ff) “Nonstatutory Stock Option” means an Option
that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option. 

 (gg) “Officer” means a person who is an officer of the Company within the meaning of
Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
 (hh) “Operating Cash Flow”
means the Company’s or a business unit’s sum of Net Income plus depreciation and amortization less capital expenditures plus changes in working capital comprised of accounts receivable, inventories, other current assets, trade accounts
payable, accrued expenses, product warranty, advance payments from customers and long-term accrued expenses, determined in accordance with generally acceptable accounting principles. 
 (ii) “Operating Income” means the Company’s or a business unit’s income from operations but excluding any unusual items,
determined in accordance with generally accepted accounting principles. 
 (jj) “Option” means a stock option granted
pursuant to the Plan. 
 (kk) “Other Stock Based Awards” means any other awards not specifically described in the Plan that
are valued in whole or in part by reference to, or are otherwise based on, Shares and are created by the Administrator pursuant to Section 12. 
 (ll) “Outside Director” means a Director who is not an Employee. 
 (mm) “Parent” means a
“parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code. 
 (nn)
“Participant” means the holder of an outstanding Award granted under the Plan. 
 (oo) “Performance Goals”
means the goal(s) (or combined goal(s)) determined by the Committee (in its discretion) to be applicable to a Participant with respect to an Award. As determined by the Committee, the Performance Goals applicable to an Award may provide for a
targeted level or levels of achievement using one or more of the following measures: (a) Annual Revenue, (b) Cash Position, (c) Controllable Profits, (d) Customer Satisfaction MBOs, (e) Earnings Per Share,
(f) Individual Objectives, (g) Net Income, (h) New Orders (i) Operating Cash Flow, (j) Operating Income, (k) Return on Assets, (l) Return on Equity, (m) Return on Sales, and (n) Total Shareholder Return.
The Performance Goals may differ from Participant to Participant and from Award to Award. Any criteria used may be measured, as applicable, in absolute or relative terms (including passage of time and/or against another company or companies), on a
per share basis, against the performance of the Company as a whole or any segment of the Company, and on a pre-tax or after-tax basis. 
 (pp) “Performance Share” means an Award granted to a Service Provider pursuant to Section 10 of the Plan. 
 (qq) “Performance Unit” means an Award granted to a Service Provider pursuant to Section 10 of the Plan. 
 (rr) “Period of Restriction” means the period during which the transfer of Shares of Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions
may be based on the passage of time, the achievement of target levels of performance, or the occurrence of other events as determined by the Administrator. 
 (ss) “Plan” means this 2004 Stock Plan. 
 (tt) “Restricted Stock” means
shares of Common Stock issued pursuant to a Restricted Stock award under Section 8, Section 11 or Section 12 of the Plan or issued pursuant to the early exercise of an Option. 
 (uu) “Restricted Stock Unit” means an Award that the Administrator permits to be paid in installments or on a deferred basis pursuant to
Section 11 of the Plan. 

 (vv) “Return on Assets” means the percentage equal to the Company’s or a business
unit’s Operating Income before incentive compensation, divided by average net Company or business unit, as applicable, assets, determined in accordance with generally accepted accounting principles. 
 (ww) “Return on Equity” means the percentage equal to the Company’s Net Income divided by average stockholder’s equity,
determined in accordance with generally accepted accounting principles. 
 (ww) “Return on Sales” means the percentage equal
to the Company’s or a business unit’s Operating Income before incentive compensation, divided by the Company’s or the business unit’s, as applicable, revenue, determined in accordance with generally accepted accounting
principles. 
 (xx) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when
discretion is being exercised with respect to the Plan. 
 (yy) “Section 16(b)” means Section 16(b) of the Exchange
Act. 
 (zz) “Service Provider” means an Employee, Director or Consultant. 
 (aaa) “Share” means a share of the Common Stock, as adjusted in accordance with Section 15 of the Plan. 
 (bbb) “Stock Appreciation Right” or “SAR” means an Award, granted alone or in connection with an Option, that pursuant
to Section 9 of the Plan is designated as a SAR. 
 (ccc) “Subsidiary” means a “subsidiary corporation”,
whether now or hereafter existing, as defined in Section 424(f) of the Code. 
 (ddd) “Total Shareholder Return” means
the total return (change in share price plus reinvestment of any dividends) of a Share. 
 (eee) “Unvested Awards” means
Options or Restricted Stock that (i) were granted to an individual in connection with such individual’s position as a Service Provider and (ii) are still subject to vesting or lapsing of Company repurchase rights or similar
restrictions. 
 3. Stock Subject to the Plan. 
 (a) Stock Subject to the Plan. Subject to the provisions of Section 15 of the Plan, the maximum aggregate number of Shares that may be issued under the Plan is 22,431,660. The Shares may be authorized, but
unissued, or reacquired Common Stock. Shares shall not be deemed to have been issued pursuant to the Plan (i) with respect to any portion of an Award that is settled in cash, or (ii) to the extent such Shares are withheld in satisfaction
of tax withholding obligations. Upon payment in Shares pursuant to the exercise of an Award, the number of Shares available for issuance under the Plan shall be reduced only by the number of Shares actually issued in such payment. If a Participant
pays the exercise price (or purchase price, if applicable) of an Award through the tender of Shares, the number of Shares so tendered shall again be available for issuance pursuant to future Awards under the Plan. Notwithstanding anything in the
Plan, or any Award Agreement to the contrary, Shares attributable to Awards transferred under any Award Transfer Program shall not be again available for grant under the Plan. 
 (b) Lapsed Awards. If any outstanding Award expires or is terminated or canceled without having been exercised or settled in full, or if Shares
acquired pursuant to an Award subject to forfeiture or repurchase are forfeited or repurchased by the Company, the Shares allocable to the terminated portion of such Award or such forfeited or repurchased Shares shall again be available for grant
under the Plan. 
 4. Administration of the Plan. 
 (a) Procedure. 
 (i) Multiple Administrative Bodies. Different Committees with respect to
different groups of Service Providers may administer the Plan. 

 (ii) Section 162(m). To the extent that the Administrator determines it to be desirable and
necessary to qualify Awards granted hereunder as “performance-based compensation” within the meaning of Section 162(m) of the Code, the Plan will be administered by a Committee of two or more “outside directors” within the
meaning of Section 162(m) of the Code. 
 (iii) Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt
under Rule 16b-3, the transactions contemplated hereunder will be structured to satisfy the requirements for exemption under Rule 16b-3. 
 (iv) Other Administration. Other than as provided above, the Plan will be administered by (A) the Board or (B) a Committee, which committee will be constituted to satisfy Applicable Laws. 
 (v) Delegation of Authority for Day-to-Day Administration. Except to the extent prohibited by Applicable Law, the Administrator may delegate to
one or more individuals the day-to-day administration of the Plan and any of the functions assigned to it in this Plan. Such delegation may be revoked at any time. 
 (b) Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator will have the
authority, in its discretion: 
 (i) to determine the Fair Market Value; 
 (ii) to select the Service Providers to whom Awards may be granted hereunder; 
 (iii) to determine the number of Shares to be covered by each Award granted hereunder; 
 (iv) to approve forms of agreement for use under the Plan; 
 (v) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times
when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture or repurchase restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based in
each case on such factors as the Administrator, in its sole discretion, will determine; 
 (vi) to reduce the exercise price of any Award to
the then current Fair Market Value if the Fair Market Value of the Common Stock covered by such Award shall have declined since the date the Award was granted; 
 (vii) to institute an Exchange Program; 
 (viii) to construe and interpret the terms of the Plan and Awards
granted pursuant to the Plan; 
 (ix) to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and
regulations relating to sub-plans established for the purpose of satisfying applicable foreign laws and/or qualifying for preferred tax treatment under applicable foreign tax laws; 
 (x) to modify or amend each Award (subject to Section 18(c) of the Plan), including the discretionary authority to extend the post-termination
exercisability period of Awards longer than is otherwise provided for in the Plan; 
 (xi) to allow Participants to satisfy withholding tax
obligations by electing to have the Company withhold from the Shares or cash to be issued upon exercise or vesting of an Award that number of Shares or cash having a Fair Market Value equal to the minimum amount required to be withheld. The Fair
Market Value of any Shares to be withheld will be determined on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares or cash withheld for this purpose will be made in such form and under
such conditions as the Administrator may deem necessary or advisable; 

 (xii) to authorize any person to execute on behalf of the Company any instrument required to effect the
grant of an Award previously granted by the Administrator; 
 (xiii) to allow a Participant to defer the receipt of the payment of cash or
the delivery of Shares that would otherwise be due to such Participant under an Award; 
 (xiv) to implement an Award Transfer Program;

 (xv) to determine whether Awards will be settled in Shares, cash or in any combination thereof; 
 (xvi) to determine whether Awards will be adjusted for Dividend Equivalents; 
 (xvii) to create Other Stock Based Awards for issuance under the Plan; 
 (xviii) to establish a program whereby Service Providers designated by the Administrator can reduce compensation otherwise payable in cash in exchange for Awards under the Plan; 
 (xix) to impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by a Participant or
other subsequent transfers by the Participant of any Shares issued as a result of or under an Award, including without limitation, (A) restrictions under an insider trading policy, and (B) restrictions as to the use of a specified
brokerage firm for such resales or other transfers; and 
 (xx) to make all other determinations deemed necessary or advisable for
administering the Plan. 
 (c) Effect of Administrator’s Decision. The Administrator’s decisions, determinations and
interpretations will be final and binding on all Participants and any other holders of Awards. 
 5. Eligibility. Nonstatutory Stock
Options, Restricted Stock, Stock Appreciation Rights, Performance Units, Performance Shares, Restricted Stock Units and Other Stock Based Awards may be granted to Service Providers. Incentive Stock Options may be granted only to Employees.

 6. Limitations. 
 (a)
ISO $100,000 Rule. Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the
Shares with respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options will be treated as
Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive Stock Options will be taken into account in the order in which they were granted. The Fair Market Value of the Shares will be determined as of the time the Option with
respect to such Shares is granted. 
 (b) No Rights as a Service Provider. Neither the Plan nor any Award shall confer upon a
Participant any right with respect to continuing his or her relationship as a Service Provider, nor shall they interfere in any way with the right of the Participant or the right of the Company or its Parent or Subsidiaries to terminate such
relationship at any time, with or without cause. 
 (c) 162(m) Limitation. The following limitations shall apply to Awards under the
Plan: 
 (i) Option and SAR Share Annual Limit. No Service Provider will be granted, in any Fiscal Year, Options and/or SARs to
purchase more than 1,000,000 Shares. 

 (ii) Restricted Stock, Restricted Stock Units, Performance Units and Performance Shares Annual
Limit. No Service Provider will be granted, in any Fiscal Year, Restricted Stock, Restricted Stock Units, Performance Units and/or Performance Shares to purchase more than 500,000 Shares. 
 (iii) Section 162(m) Performance Restrictions. For purposes of qualifying grants of Restricted Stock, Restricted Stock Units, Performance
Shares or Performance Units as “performance-based compensation” under Section 162(m) of the Code, the Administrator, in its discretion, may set restrictions based upon the achievement of Performance Goals. The Performance Goals shall
be set by the Administrator on or before the latest date permissible to enable the Restricted Stock Units, Restricted Stock, Performance Shares or Performance Units to qualify as “performance-based compensation” under Section 162(m)
of the Code. In granting Restricted Stock Units, Restricted Stock, Performance Shares or Performance Units which are intended to qualify under Section 162(m) of the Code, the Administrator shall follow any procedures determined by it from time
to time to be necessary or appropriate to ensure qualification of the Award under Section 162(m) of the Code (e.g., in determining the Performance Goals). 
 (iv) The foregoing limitations will be adjusted proportionately in connection with any change in the Company’s capitalization as described in Section 15 of the Plan. 
 (v) If an Award is cancelled in the same Fiscal Year in which it was granted (other than in connection with a transaction described in Section 15
of the Plan), the cancelled Award will be counted against the limits set forth in subsections (i) and (ii) above. For this purpose, if the exercise price of an Option is reduced, the transaction will be treated as a cancellation of the
Option and the grant of a new Option. 
 7. Stock Options. 
 (a) Term of Option. The term of each Option will be stated in the Award Agreement. In the case of an Incentive Stock Option, the term will be ten
(10) years from the date of grant or such shorter term as may be provided in the Award Agreement. Moreover, in the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns stock
representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be five (5) years from the date of grant or such
shorter term as may be provided in the Award Agreement. 
 (b) Option Exercise Price and Consideration. 
 (i) Exercise Price. The per Share exercise price for the Shares to be issued pursuant to exercise of an Option will be determined by the
Administrator, subject to the following: 
 (1) In the case of an Incentive Stock Option 
 (A) granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no less than 110% of the Fair Market Value per Share on the date of grant. 
 (B) granted to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price will be no less than
100% of the Fair Market Value per Share on the date of grant. 
 (2) In the case of a Nonstatutory Stock Option, the per Share exercise
price will be determined by the Administrator. In the case of a Nonstatutory Stock Option intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code, the per Share exercise price will be
no less than 100% of the Fair Market Value per Share on the date of grant. 
 (3) Notwithstanding the foregoing, Incentive Stock Options may
be granted with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of grant pursuant to a merger or other corporate transaction. 

 (ii) Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator will
fix the period within which the Option may be exercised and will determine any conditions that must be satisfied before the Option may be exercised. 
 (c) Form of Consideration. The Administrator will determine the acceptable form of consideration for exercising an Option, including the method of payment. In the case of an Incentive Stock Option, the
Administrator will determine the acceptable form of consideration at the time of grant. Such consideration to the extent permitted by Applicable Laws may consist entirely of: 
 (i) cash; 
 (ii) check; 
 (iii) promissory note; 
 (iv) other Shares
which meet the conditions established by the Administrator to avoid adverse accounting consequences (as determined by the Administrator); 
 (v) consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan; 
 (vi) a reduction in the amount of any Company liability to the Participant, including any liability attributable to the Participant’s participation in any Company-sponsored deferred compensation program or arrangement; 
 (vii) any combination of the foregoing methods of payment; or 
 (viii) such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws. 
 (d) Exercise of Option. 
 (i) Procedure for Exercise; Rights as a Stockholder. Any Option
granted hereunder will be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share.

 An Option will be deemed exercised when the Company receives: (x) written or electronic notice of exercise (in accordance with the
Award Agreement) from the person entitled to exercise the Option, and (y) full payment for the Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option will be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or her spouse. Until
the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to
the Awarded Stock, notwithstanding the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is
prior to the date the Shares are issued, except as provided in Section 15 of the Plan or the applicable Award Agreement. 
 Exercising
an Option in any manner will decrease the number of Shares thereafter available for sale under the Option, by the number of Shares as to which the Option is exercised. 
 (ii) Termination of Relationship as a Service Provider. If a Participant ceases to be a Service Provider, other than upon the Participant’s death or Disability, the Participant may exercise his or her
Option within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement).
In the absence of a specified time in the Award Agreement, the Option will remain exercisable for three (3) months following the Participant’s termination. Unless otherwise 

 
provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option will revert to the Plan on the date one (1) month following the Participant’s termination. If after termination the Participant does not exercise his or her Option within the time specified by the Administrator, the
Option will terminate, and the Shares covered by such Option will revert to the Plan. 
 (iii) Disability of Participant. If a
Participant ceases to be a Service Provider as a result of the Participant’s Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent the Option is vested on the
date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months
following the Participant’s termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will
revert to the Plan on the date one (1) month following the Participant’s termination. If after termination the Participant does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares
covered by such Option will revert to the Plan. 
 (iv) Death of Participant. If a Participant dies while a Service Provider, the
Option may be exercised following the Participant’s death within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of death (but in no event may the option be exercised later than the
expiration of the term of such Option as set forth in the Award Agreement), by the Participant’s designated beneficiary, provided such beneficiary has been designated prior to Participant’s death in a form acceptable to the Administrator.
If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the Option is transferred pursuant to the Participant’s
will or in accordance with the laws of descent and distribution. In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following Participant’s death. Unless otherwise provided
by the Administrator, if at the time of death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will immediately revert to the Plan on the date one (1) month following the
Participant’s death. If the Option is not so exercised within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan. 
 (e) Buyout Provisions. The Administrator may at any time offer to buy out for a payment in cash or Shares an Option previously granted based on
such terms and conditions as the Administrator shall establish and communicate to the Participant at the time that such offer is made. 
 8.
Restricted Stock. 
 (a) Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Administrator, at any
time and from time to time, may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion, will determine. Subject to Section 6(c)(ii) hereof, the Administrator shall have complete
discretion to determine (i) the number of Shares subject to a Restricted Stock award granted to any Participant, and (ii) the conditions that must be satisfied, which typically will be based principally or solely on continued provision of
services but may include a performance-based component, upon which is conditioned the grant, vesting or issuance of Restricted Stock. 
 (b)
Restricted Stock Agreement. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its
sole discretion, will determine. Unless the Administrator determines otherwise, Shares of Restricted Stock will be held by the Company as escrow agent until the restrictions on such Shares have lapsed. 
 (c) Transferability. Except as provided in this Section 8, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated until the end of the applicable Period of Restriction. 

 (d) Other Restrictions. The Administrator, in its sole discretion, may impose such other
restrictions on Shares of Restricted Stock as it may deem advisable or appropriate. 
 (e) Removal of Restrictions. Except as
otherwise provided in this Section 8, Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period of Restriction. The Administrator,
in its discretion, may accelerate the time at which any restrictions will lapse or be removed. 
 (f) Voting Rights. During the Period
of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise. 
 (g) Dividends and Other Distributions. During the Period of Restriction, Service Providers holding Shares of Restricted Stock will be entitled to
receive all dividends and other distributions paid with respect to such Shares unless otherwise provided in the Award Agreement. If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions on
transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid. 
 (h) Return of Restricted
Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which restrictions have not lapsed will revert to the Company and again will become available for grant under the Plan. 
 9. Stock Appreciation Rights. 
 (a)
Grant of SARs. Subject to the terms and conditions of the Plan, a SAR may be granted to Service Providers at any time and from time to time as will be determined by the Administrator, in its sole discretion. 
 (b) Number of Shares. Subject to Section 6(c)(i) of the Plan, the Administrator will have complete discretion to determine the number of SARs
granted to any Service Provider. 
 (c) Exercise Price and Other Terms. The Administrator, subject to the provisions of the Plan, will
have complete discretion to determine the terms and conditions of SARs granted under the Plan. 
 (d) Exercise of SARs. SARs will be
exercisable on such terms and conditions as the Administrator, in its sole discretion, will determine. 
 (e) SAR Agreement. Each SAR
grant will be evidenced by an Award Agreement that will specify the exercise price, the term of the SAR, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine. 
 (f) Expiration of SARs. An SAR granted under the Plan will expire upon the date determined by the Administrator, in its sole discretion, and set
forth in the Award Agreement. Notwithstanding the foregoing, the rules of Sections 7(d)(ii), 7(d)(iii) and 7(d)(iv) also will apply to SARs. 
 (g) Payment of SAR Amount. Upon exercise of an SAR, a Participant will be entitled to receive payment from the Company in an amount determined by multiplying: 
 (i) The difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times 
 (ii) The number of Shares with respect to which the SAR is exercised. 
 At the discretion of the Administrator, the payment upon SAR exercise may be in cash, in Shares of equivalent value, or in some combination thereof. 
 (h) Buyout Provisions. The Administrator may at any time offer to buy out for a payment in cash or Shares a Stock Appreciation Right previously
granted based on such terms and conditions as the Administrator shall establish and communicate to the Participant at the time that such offer is made. 

 10. Performance Units and Performance Shares. 
 (a) Grant of Performance Units/Shares. Subject to the terms and conditions of the Plan, Performance Units and Performance Shares may be granted to
Service Providers at any time and from time to time, as will be determined by the Administrator, in its sole discretion. Subject to Section 6(c)(ii), the Administrator will have complete discretion in determining the number of Performance Units
and Performance Shares granted to each Participant. 
 (b) Value of Performance Units/Shares. Each Performance Unit will have an
initial value that is established by the Administrator on or before the date of grant. Each Performance Share will have an initial value equal to the Fair Market Value of a Share on the date of grant. 
 (c) Performance Objectives and Other Terms. The Administrator will set performance objectives in its discretion which, depending on the extent to
which they are met, will determine the number or value of Performance Units/Shares that will be paid out to the Service Providers. The time period during which the performance objectives must be met will be called the “Performance Period.”
Each Award of Performance Units/ Shares will be evidenced by an Award Agreement that will specify the Performance Period, and such other terms and conditions as the Administrator, in its sole discretion, will determine. The Administrator may set
performance objectives based upon the achievement of Company-wide, divisional, or individual goals, applicable federal or state securities laws, or any other basis determined by the Administrator in its discretion. 
 (d) Earning of Performance Units/Shares. After the applicable Performance Period has ended, the holder of Performance Units/Shares will be
entitled to receive a payout of the number of Performance Units/Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives have been achieved. After
the grant of a Performance Unit/Share, the Administrator, in its sole discretion, may reduce or waive any performance objectives for such Performance Unit/Share. 
 (e) Form and Timing of Payment of Performance Units/Shares. Payment of earned Performance Units/Shares will be made as soon after the expiration of the applicable Performance Period at the time determined by
the Administrator. The Administrator, in its sole discretion, may pay earned Performance Units/Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned Performance Units/Shares at the close of
the applicable Performance Period) or in a combination thereof. 
 (f) Cancellation of Performance Units/Shares. On the date set forth
in the Award Agreement, all unearned or unvested Performance Units/Shares will be forfeited to the Company, and again will be available for grant under the Plan. 
 11. Restricted Stock Units. Restricted Stock Units shall consist of a Restricted Stock, Performance Share or Performance Unit Award that the Administrator, in its sole discretion permits to be paid out in
installments or on a deferred basis, in accordance with rules and procedures established by the Administrator. 
 12. Other Stock Based
Awards. Other Stock Based Awards may be granted either alone, in addition to, or in tandem with, other Awards granted under the Plan and/or cash awards made outside of the Plan. The Administrator shall have authority to determine the Service
Providers to whom and the time or times at which Other Stock Based Awards shall be made, the amount of such Other Stock Based Awards, and all other conditions of the Other Stock Based Awards including any dividend and/or voting rights. 

13. Leaves of Absence. Unless the Administrator provides otherwise, vesting of Awards granted hereunder will be suspended during any unpaid
leave of absence and will resume on the date the Participant returns to work on a regular schedule as determined by the Company; provided, however, that no vesting credit will be awarded for the time vesting has been suspended during such leave of
absence. A Service Provider will not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, or any Subsidiary. 

 
For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is guaranteed by
statute or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then three months following the 91st day of such leave any Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option.

 14. Non-Transferability of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award
transferable, such Award will contain such additional terms and conditions as the Administrator deems appropriate. 
 15. Adjustments;
Dissolution or Liquidation; Merger or Change in Control. 
 (a) Adjustments. In the event that any dividend (excluding an ordinary
dividend) or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or
exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, then the Administrator shall appropriately adjust the number and class of Shares which may be delivered
under the Plan, the 162(m) annual share issuance limits under Section 6(c) of the Plan, and the number, class, and price of Shares subject to outstanding Awards. Notwithstanding the preceding, the number of Shares subject to any Award always
shall be a whole number. 
 (b) Dissolution or Liquidation. In the event that any dividend (excluding an ordinary dividend) or other
distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or
other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs then the Administrator shall appropriately adjust the number and class of Shares which may be delivered under the Plan, the 162(m)
annual share issuance limits under Section 6(c) of the Plan, and the number, class, and price of Shares subject to outstanding Awards. Notwithstanding the preceding, the number of Shares subject to any Award always shall be a whole number.

 (c) Merger or Change in Control. 
 (i) Stock Options and SARS. In the event of a merger or Change in Control, each outstanding Option and SAR shall be assumed or an equivalent option or SAR substituted by the successor corporation or a Parent or
Subsidiary of the successor corporation. With respect to Options and SARs granted to an Outside Director that are assumed or substituted for, if immediately prior to or after the merger or Change in Control the Participant’s status as a
Director or a director of the successor corporation, as applicable, is terminated other than upon a voluntary resignation by the Participant, then the Participant shall fully vest in and have the right to exercise such Options and SARs as to all of
the Awarded Stock, including Shares as to which it would not otherwise be vested or exercisable. Unless determined otherwise by the Administrator, in the event that the successor corporation refuses to assume or substitute for the Option or SAR, the
Participant shall fully vest in and have the right to exercise the Option or SAR as to all of the Awarded Stock, including Shares as to which it would not otherwise be vested or exercisable. If an Option or SAR is not assumed or substituted in the
event of a merger or Change in Control, the Administrator shall notify the Participant in writing or electronically that the Option or SAR shall be exercisable, to the extent vested, for a period of up to fifteen (15) days from the date of such
notice, and the Option or SAR shall terminate upon the expiration of such period. For the purposes of this paragraph, the Option or SAR shall be considered assumed if, following the merger or Change in Control, the option or stock appreciation right
confers the right to purchase or receive, for each Share of Awarded Stock subject to the Option or SAR immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other securities or property) received in the
merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the
outstanding 

 
Shares); provided, however, that if such consideration received in the merger or Change in Control is not solely common stock of the successor corporation or
its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option or SAR, for each Share of Awarded Stock subject to the Option or SAR, to be solely common
stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or Change in Control. Notwithstanding anything herein to the contrary, an Award that vests,
is earned or paid-out upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s consent; provided, however, a
modification to such performance goals only to reflect the successor corporation’s post-merger or post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption. 
 (ii) Restricted Stock, Performance Shares, Performance Units, Restricted Stock Units and Other Stock Based Awards. In the event of a merger or
Change in Control, each outstanding Restricted Stock, Performance Share, Performance Unit, Other Stock Based Award and Restricted Stock Unit awards shall be assumed or an equivalent Restricted Stock, Performance Share, Performance Unit, Other Stock
Based Award and Restricted Stock Unit award substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. With respect to Awards granted to an Outside Director that are assumed or substituted for, if immediately
prior to or after the merger or Change in Control the Participant’s status as a Director or a director of the successor corporation, as applicable, is terminated other than upon a voluntary resignation by the Participant, then the Participant
shall fully vest in such Awards, including Shares as to which it would not otherwise be vested. Unless determined otherwise by the Administrator, in the event that the successor corporation refuses to assume or substitute for the Restricted Stock,
Performance Share, Performance Unit, Other Stock Based Award or Restricted Stock Unit award, the Participant shall fully vest in the Restricted Stock, Performance Share, Performance Unit, Other Stock Based Award or Restricted Stock Unit including as
to Shares which would not otherwise be vested. For the purposes of this paragraph, a Restricted Stock, Performance Share, Performance Unit, Other Stock Based Award and Restricted Stock Unit award shall be considered assumed if, following the merger
or Change in Control, the award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other securities or property) received in
the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the
outstanding Shares); provided, however, that if such consideration received in the merger or Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor
corporation, provide for the consideration to be received, for each Share and each unit/right to acquire a Share subject to the Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share
consideration received by holders of Common Stock in the merger or Change in Control. Notwithstanding anything herein to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be
considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s consent; provided, however, a modification to such performance goals only to reflect the successor corporation’s
post-merger or post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption. 
 16.
Date of Grant. The date of grant of an Award will be, for all purposes, the date on which the Administrator makes the determination granting such Award, or such other later date as is determined by the Administrator. Notice of the
determination will be provided to each Participant within a reasonable time after the date of such grant. 
 17. Term of Plan. Subject
to Section 22 of the Plan, the Plan will become effective upon its adoption by the Board. It will continue in effect for a term of ten (10) years unless terminated earlier under Section 18 of the Plan. 

 18. Amendment and Termination of the Plan. 
 (a) Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan. 
 (b) Stockholder Approval. The Company will obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with
Applicable Laws. 
 (c) Effect of Amendment or Termination. Subject to Section 20 of the Plan, no amendment, alteration,
suspension or termination of the Plan will impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company.
Termination of the Plan will not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination. 
 19. Conditions Upon Issuance of Shares. 
 (a) Legal Compliance. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the
approval of counsel for the Company with respect to such compliance. 
 (b) Investment Representations. As a condition to the exercise
or receipt of an Award, the Company may require the person exercising or receiving such Award to represent and warrant at the time of any such exercise or receipt that the Shares are being purchased only for investment and without any present
intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required. 
 20.
Severability. Notwithstanding any contrary provision of the Plan or an Award to the contrary, if any one or more of the provisions (or any part thereof) of this Plan or the Awards shall be held invalid, illegal or unenforceable in any
respect, such provision shall be modified so as to make it valid, legal and enforceable, and the validity, legality and enforceability of the remaining provisions (or any part thereof) of the Plan or Award, as applicable, shall not in any way be
affected or impaired thereby. 
 21. Inability to Obtain Authority. The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such requisite authority will not have been obtained. 
 22. Stockholder Approval. The Plan will be
subject to approval by the stockholders of the Company within twelve (12) months after the date the Plan is adopted. Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws.Charter Sale Agreement

 Exhibit 10.1 
 Agreement and Plan of Merger 
 by and among 
 TIB The Independent BankersBank, 
 First California Financial Group, Inc., 

and 
 South Bay Bank 
  

 Dated as of March 23, 2007

  

 Table of Contents 
  

					
	 	  	Page
	GENERAL	  	
			
	 1.01
	  	Definitions	  	2
		
	 ARTICLE II
 MERGER; CLOSING
	  	
			
	 2.01
	  	The Merger	  	5
	 2.02
	  	Organization Certificate	  	6
	 2.03
	  	By-Laws	  	6
	 2.04
	  	Directors and Officers	  	6
	 2.05
	  	Conversion of Securities; Merger Consideration	  	6
	 2.06
	  	No Further Ownership Rights in SBB Capital Stock	  	6
	 2.07
	  	Further Assurances	  	7
	 2.08
	  	Board Recommendation	  	7
		
	 ARTICLE III
 REPRESENTATIONS AND WARRANTIES OF FCFG AND SBB
	  	
			
	 3.01
	  	Organization	  	7
	 3.02
	  	Capitalization	  	8
	 3.03
	  	Authority; No Violation	  	8
	 3.04
	  	Consents and Approvals	  	9
	 3.05
	  	Pro Forma Balance Sheet	  	9
	 3.06
	  	Taxes	  	9
	 3.07
	  	Legal Proceedings	  	11
	 3.08
	  	Compliance with Applicable Law	  	11
	 3.09
	  	Brokers and Finders	  	12
	 3.10
	  	CRA Compliance	  	12
	 3.11
	  	Information to be Supplied	  	12
	 3.12
	  	Nothing Precludes Consummation	  	12
	 3.13
	  	Disclosure	  	12
	 3.14
	  	Compliance with Foreign Corrupt Practices Act	  	12
	 3.15
	  	Bank Accounts; Powers of Attorney	  	12
		
	 ARTICLE IV
 REPRESENTATIONS AND WARRANTIES OF FCFG
	  	
			
	 4.01
	  	Organization	  	13
	 4.02
	  	Authority; No Violation	  	13
	 4.03
	  	Consents and Approvals	  	14
	 4.04
	  	Legal Proceedings	  	14
	 4.05
	  	Brokers and Finders	  	14

  

 i 

					
	 4.06
	  	Information to be Supplied	  	14
	 4.07
	  	Ownership of SBB	  	14
	 4.08
	  	Taxes	  	14
		
	 ARTICLE V
 REPRESENTATIONS AND WARRANTIES OF TIB
	  	
			
	 5.01
	  	Organization	  	15
	 5.02
	  	Authority; No Violation	  	15
	 5.03
	  	Consents and Approvals	  	16
	 5.04
	  	Cash for Closing	  	16
	 5.05
	  	Legal Proceedings	  	16
	 5.06
	  	Brokers and Finders	  	16
	 5.07
	  	Information to be Supplied	  	16
		
	 ARTICLE VI
 COVENANTS OF THE PARTIES
	  	
			
	 6.01
	  	Applications for Regulatory Approval	  	17
	 6.02
	  	Consents to Contemplated Transactions	  	17
	 6.03
	  	Taking of Necessary Actions	  	17
	 6.04
	  	Public Announcements	  	17
	 6.05
	  	No Solicitation	  	17
	 6.06
	  	Notification of Certain Matters	  	18
	 6.07
	  	Relocation of Head Office	  	19
	 6.08
	  	Execution by SBB; No Amendment of Initial Purchase Agreement or Purchase and Assumption Agreement	  	19
		
	 ARTICLE VII
 CONDITIONS PRECEDENT
	  	
			
	 7.01
	  	Conditions Precedent to Each Party’s Obligation to Effect the Merger	  	19
	 7.02
	  	Conditions Precedent to Obligations of TIB	  	19
	 7.03
	  	Conditions Precedent to Obligations of FCFG and SBB	  	21
	 7.04
	  	Potential Restructuring of Transaction	  	21
		
	 ARTICLE VIII
 TERMINATION
	  	
			
	 8.01
	  	Termination	  	22
	 8.02
	  	Effect of Termination	  	22
		
	 ARTICLE IX
 INDEMNIFICATION; REMEDIES
	  	
			
	 9.01
	  	Survival	  	23
	 9.02
	  	Indemnification by FCFG	  	23
	 9.03
	  	Non-Exclusive Remedy	  	23

  

 ii 

					
	 ARTICLE X
 MISCELLANEOUS
	  	 
			
	 10.01
	  	Expenses and Other Fees	  	23
	 10.02
	  	Specific Performance	  	24
	 10.03
	  	Amendment, Extension and Waiver	  	24
	 10.04
	  	Entire Agreement; No Third Party Beneficiaries	  	24
	 10.05
	  	No Assignment	  	24
	 10.06
	  	Notices	  	25
	 10.07
	  	Schedules	  	25
	 10.08
	  	Captions	  	26
	 10.09
	  	Counterparts	  	26
	 10.10
	  	Severability	  	26
	 10.11
	  	Governing Law	  	26
	 10.12
	  	Consent to Jurisdiction; Service of Process	  	26
	 10.13
	  	Waiver of Jury Trial	  	26

  

			
	 Exhibit A
	  	Indemnity Agreement
	 Schedule 3.05
	  	Pro Forma Balance Sheet
	 Schedule 3.06
	  	Tax Matters
	 Schedule 3.15
	  	Bank Accounts; Powers of Attorney
	 Schedule 5.03
	  	Regulatory Approvals

  

 iii 

 AGREEMENT AND PLAN OF MERGER 
 THIS AGREEMENT AND PLAN OF MERGER, dated as of March 23, 2007, is made by and among TIB THE INDEPENDENT BANKERSBANK, a Texas state-chartered banking
institution (“TIB”), FIRST CALIFORNIA FINANCIAL GROUP, INC., a Delaware corporation (“FCFG”), and SOUTH BAY BANK, a national banking association (“SBB”). Capitalized terms have the meanings set
forth in Article I. 
 RECITALS 
 WHEREAS, TIB is a Texas state-chartered banking institution with its home office located at 350 Phelps Drive, Irving, Texas. 
 WHEREAS, FCFG is a Delaware company with its main office located at 1880 Century Park East, Suite 800, Los Angeles, California. 
 WHEREAS, SBB is a national banking association and a wholly-owned subsidiary of FCFG with its main office located at 1880 Century Park East, Suite 1200, Los Angeles, California. 
 WHEREAS, FIRST CALIFORNIA BANK (“FCBank”) is a California state-chartered banking corporation and wholly-owned subsidiary of FCFG with
its main office located at 1100 Paseo Camarillo, Camarillo, California. 
 WHEREAS, FCBank and SBB, prior to the Merger contemplated herein,
shall enter into a Purchase and Assumption Agreement (the “Purchase and Assumption Agreement”), whereby immediately prior to the Merger contemplated herein, FCBank shall purchase all the assets and assume all the liabilities of SBB,
except for such assets and liabilities set forth in the Pro Forma Balance Sheet. 
 WHEREAS, the parties have agreed that it is in their
mutual best interests and in the best interests of their respective stockholders for SBB to be merged with and into TIB pursuant to the terms of this Agreement, and the parties desire to provide for certain undertakings, conditions, representations,
warranties and covenants in connection with the Merger and transactions contemplated thereby. 
 WHEREAS, the Boards of Directors of TIB, SBB
and FCFG have approved this Agreement and the transactions contemplated hereby. 
 NOW, THEREFORE, in consideration of the foregoing and the
mutual representations, warranties, covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto intending to be legally bound do hereby agree
as follows: 
  

 1 

 GENERAL 
 1.01 Definitions. As used in this Agreement, the following terms shall have the indicated meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

 Acquisition Agreement has the meaning given to such term in Section 6.05 of this Agreement. 
 Acquisition Proposal has the meaning given to such term in Section 6.05 of this Agreement. 
 Action means any legal action, administrative, arbitration, audit, hearing, investigation, proceeding, litigation, claim or suit (whether civil,
criminal, administrative, investigative or informal) commenced, brought, conducted or heard by or before, or otherwise involving, any governmental body or arbitrator. 
 Affiliate means, with respect to any corporation, any person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such corporation
and, without limiting the generality of the foregoing, includes any executive officer, director or 10% equity owner of such corporation. 
 Agreement means this Agreement and Plan of Merger, including any amendment or supplement, exhibit or schedule attached hereto. 
 Application means any application or notice or request for waiver to a Regulatory Authority for the purpose of effecting the transactions contemplated hereby. 
 Business Day shall mean a day that is not a Saturday, Sunday or a statutory or civic holiday in the State of California. 
 Closing has the meaning given to such term in Section 2.01 of this Agreement. 
 Closing Date has the meaning given to such term in Section 2.01(b) of this Agreement. 
 Confidentiality Agreement means the confidentiality agreement among TIB, FCFG and SBB. 
 Contemplated Transactions means all of the transactions contemplated by this Agreement, including (a) the Merger and (b) the performance
by SBB, FCFG and TIB of their respective covenants and obligations under this Agreement. 
 CRA means the Community Reinvestment Act
of 1977 or any successor law, and regulations and rules issued pursuant to that Act or any successor law. 
 Damages has the meaning
given to such term in Section 9.02 of this Agreement. 
 Effective Time has the meaning given to such term in
Section 2.01(b) of this Agreement. 
  

 2 

 FCB has the meaning given to such term in the recitals. 
 FCBank has the meaning given to such term in the recitals. 
 FCFG has the meaning given to such term in the heading of this Agreement. 
 FDIC means the
Federal Deposit Insurance Corporation. 
 FINCEN means the Financial Crimes Enforcement Network. 
 FRB means the Board of Governors of the Federal Reserve System, including the appropriate Reserve Bank. 
 Indemnified Persons has the meaning given to such term in Section 9.02 of this Agreement. 
 Indemnity Agreement means the Indemnity Agreement in the form of Exhibit A. 
 Initial Mergers has the meaning given to such term in the recitals. 
 Initial Purchase Agreement has the meaning given to such term in the recitals. 
 Initial Purchase
Closing Date has the meaning given to such term in Article III of this Agreement. 
 IRC means the Internal Revenue Code of
1986 or any successor law, and regulations issued by the IRS pursuant to the Internal Revenue Code or any successor law. 
 Knowledge
means (a) an individual is actually aware of a particular fact or other matter; or (b) a prudent individual could be expected to discover or otherwise become aware of such fact or other matter in the course of conducting a reasonably
comprehensive investigation concerning the existence of such fact or other matter. 
 Knowledge of FCFG means the Knowledge of the
executive officers and directors (or persons serving in any similar capacity) of FCFG. 
 Knowledge of SBB means the Knowledge of
executive officers and directors (or persons serving in any similar capacity) of SBB and FCFG. 
 Laws means all applicable laws,
statutes, ordinances, rules, regulations, orders, writs, injunctions, judgments or decrees entered, enacted, promulgated, enforced or issued by any court or other governmental or regulatory authority, domestic or foreign. 
 Material Adverse Effect means, with respect to any Person (unless otherwise specified), a material adverse effect on: 
 (a) the business, condition (financial or otherwise), liabilities, properties, assets or results of operations of such Person, or

  

 3 

 (b) the ability of such Person to perform its obligations under this Agreement or to
consummate the Contemplated Transactions. 
 Merger means the merger of SBB with and into TIB, with TIB surviving such merger, as
contemplated by this Agreement. 
 Merger Consideration has the meaning given to such term in Section 2.05(a) of this Agreement.

 NMB has the meaning given to such term in the recitals. 
 OCC means the Office of the Comptroller of the Currency, the primary regulator of national banks. 
 Organization Certificate means with respect to any Person, the articles or certificate of incorporation, by-laws or other organizational
documents. 
 Person means an individual, corporation, partnership, limited liability company, association, trust or other entity or
organization, including a government or political subdivision or an agency or instrumentality thereof. 
 Pro Forma Balance Sheet has
the meaning given to such term in Section 3.05. 
 Purchase and Assumption Agreement has the meaning given to such term in the
recitals. 
 Reasonable Best Efforts means prompt, substantial and persistent efforts as a prudent Person desirous of achieving a
result would use in similar circumstances. 
 Regulatory Agreement has the meaning given to that term in Section 3.08(e) of this
Agreement. 
 Regulatory Authority means any agency, department or unit of any United States federal, state or local governmental body
or of any self-regulatory organization located in the United States, including without limitation the FDIC, the FRB, FINCEN, the CDFI, the TDB, the OCC, and the respective staffs thereof. 
 Rights means warrants, options, rights, convertible securities and other capital stock equivalents which obligate an entity to issue its
securities. 
 SBB has the meaning given to such term in the heading of this Agreement. 
 SBB Capital Stock has the meaning given to such term in Section 3.02(a) of this Agreement. 
 Schedule means, collectively, the disclosure schedules delivered by SBB to TIB at or prior to the execution and delivery of this Agreement.

 Stock Certificate has the meaning given to such term in Section 2.05(c) of the Agreement. 
  

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 Stock Transfer has the meaning given to such term in Section 2.01 of this Agreement.

 Stockholders means the holders of SBB Capital Stock. 
 Subsidiary means any corporation, 10% or more of the capital stock of which is owned, either directly or indirectly, by another entity, except any corporation the stock of which is held in the ordinary course
of the lending activities of a bank. 
 Surviving Bank has the meaning given to that term in Section 2.01(a) of this Agreement.

 Tax (and, with correlative meaning, “Taxes” and “Taxable”) shall mean (i) any federal,
state, local, municipal or foreign net income, gross income, gross receipts, windfall profit, severance, property, production, sales, use, license, excise, franchise, employment, payroll, withholding, alternative or add-on minimum, ad valorem,
value-added, transfer, stamp, or environmental tax, or any other tax, custom, duty, tariff levy, import fee or other like assessment or charge of any kind whatsoever, together with any interest or penalty, addition to tax or additional amount
imposed by any governmental authority, domestic and foreign, and (ii) any liability for the payment of any amount of the type described in clause (i) as a result of being or having been before the Closing a member of an affiliated,
consolidated, combined, unitary or similar group. 
 Tax Return shall mean any return, report or similar statement required to be
filed with respect to any Tax (including any attached schedules), including, without limitation, any information return, claim for refund, amended return or declaration of estimated Tax. 
 TDB means the Texas Department of Banking or any successor governmental body. 
 TIB has the meaning given to such term in the heading of this Agreement. 
 ARTICLE II 
 MERGER; CLOSING 
 2.01 The Merger. 
 (a) Subject to the
terms and conditions of this Agreement and in accordance with applicable law, at the Effective Time and immediately preceding the Merger, the outstanding stock of SBB shall be transferred to TIB (the “Stock Transfer”). 
 (b) Immediately following the Stock Transfer, without any further conditions to proceeding, (i) SBB shall be merged with and into TIB, (ii) the
separate corporate existence of SBB shall cease and (iii) TIB shall be the surviving bank (the “Surviving Bank”) and shall continue its corporate existence as a bank chartered under the laws of the State of Texas. 

(c) The Merger shall become effective upon the close of business on the Closing Date (the “Effective Time”). The closing of the
Merger (the “Closing”) shall take place at the offices of Bingham McCutchen LLP, 3 Embarcadero Center, San Francisco, California, or at such other location as may be agreeable to the parties, at 10:00 a.m. two Business Days
after the date on 

  

 5 

 
which the last of the conditions set forth in Article VII shall have been satisfied or waived, or on such other date, time and place as the parties may
mutually agree (the “Closing Date”). 
 (d) At the Effective Time, the effect of the Merger shall be as provided in the
applicable Laws. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, all the property, rights, privileges, powers and franchises of SBB shall vest in the Surviving Bank, and all debts, liabilities,
obligations, restrictions, disabilities and duties of SBB shall become the debts, liabilities, obligations, restrictions, disabilities and duties of the Surviving Bank. 
 2.02 Organization Certificate. The Organization Certificate of TIB, as in effect immediately prior to the Effective Time, shall be the Organization Certificate of the Surviving Bank until thereafter amended as
provided therein and by law. 
 2.03 By-Laws. The by-laws of TIB, as in effect immediately prior to the Effective Time, shall be the
by-laws of the Surviving Bank until thereafter amended as provided therein and by law. 
 2.04 Directors and Officers. From and after
the Effective Time, (a) the directors of TIB at the Effective Time shall be the initial directors of the Surviving Bank, each to hold office in accordance with the Organization Certificate and by-laws of the Surviving Bank, and (b) the
officers of TIB at the Effective Time shall be the initial officers of the Surviving Bank, in each case, until their respective successors are duly elected or appointed and qualified. 
 2.05 Conversion of Securities; Merger Consideration. At the Effective Time, by virtue of the Merger and without any action on the part of TIB,
SBB, FCFG or the holders of any of the following securities: 
 (a) Each share of SBB Capital Stock issued and outstanding as of the
Effective Time shall be deemed cancelled and FCFG shall have the right to receive from the Surviving Bank in cash, without interest, an amount that is equal to $1,000,000 plus an amount equal to the shareholders equity of SBB at such time as
reflected in the Pro Forma Balance Sheet (the “Merger Consideration”). 
 (b) Each share of TIB capital stock issued and
outstanding as of the Effective Time shall remain outstanding and continue to represent the capital stock of the Surviving Bank. 
 (c) At
the Effective Time, FCFG shall deliver to TIB the certificate representing all shares of SBB (the “Stock Certificate”). 
 2.06 No Further Ownership Rights in SBB Capital Stock. Upon delivery and payment of Merger Consideration in exchange for the Stock Certificate, such Merger Consideration shall be deemed paid in full satisfaction of all rights
pertaining to SBB Capital Stock previously represented by such Stock Certificate and FCFG as sole owner of all shares of SBB Capital Stock shall have 

  

 6 

 
no right to receive shares of capital stock of the Surviving Bank and shall have no rights against the Surviving Bank. 
 2.07 Further Assurances. 
 (a) If, at
any time after the Effective Time, the Surviving Bank shall consider or be advised that any deeds, bills of sale, assignments or assurances or any other acts or things are necessary, desirable or proper (a) to vest, perfect or confirm, of
record or otherwise, in the Surviving Bank, its right, title or interest in, to or under any of the rights, privileges, powers, franchises, properties or assets of SBB or (b) otherwise to carry out the purposes of this Agreement, the Surviving
Bank and its proper officers and directors or their designees shall be authorized to execute and deliver, in the name and on behalf of SBB, all such deeds, bills of sale, assignments and assurances and do, in the name and on behalf of SBB, all such
other acts and things necessary, desirable or proper to vest, perfect or confirm its right, title or interest in, to or under any of the rights, privileges, powers, franchises, properties or assets of SBB, as applicable, and otherwise to carry out
the purposes of this Agreement. 
 (b) TIB, FCFG and SBB each agree to execute and deliver such further documents and instruments and to do
such other acts and things as may be reasonably required to complete all requisite corporate action in connection with the transactions contemplated by this Agreement. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF FCFG AND SBB 
 Each of FCFG and SBB jointly and severally hereby represents and warrants to TIB as follows: 
 3.01 Organization. 
 (a) SBB is a
national banking association duly organized, validly existing and in good standing under the laws of the United States of America. SBB has the corporate power to carry on its business and operations as now being conducted and to own and operate its
properties and assets now owned and being operated by it. SBB is not required under any applicable Law to be licensed or registered, or to qualify to do business, in any other jurisdiction. 
 (b) SBB has no Subsidiaries. 
 (c) The
minute book of SBB accurately records, in all material respects, all material corporate actions of its Stockholders and Board of Directors, including committees. SBB has made available to TIB for its review the minute book or copies thereof from
January 1, 2002 to the date hereof. 
 (d) SBB has delivered to TIB true and correct copies of the Organization Certificate and by-laws
of SBB, as in effect on the date hereof; such Organization Certificate and by-laws 

  

 7 

 
are in full force and effect. SBB is not in violation of any provision of its Organization Certificate or other organizational documents. 
 3.02 Capitalization. 
 (a) The
authorized capital stock of SBB consists solely of                      shares of common stock,
$         par value per share (“SBB Capital Stock”), of which at the date hereof all of the
                     shares, are validly issued and outstanding, fully paid and nonassessable, and free of preemptive rights, and none are
held as treasury shares. SBB has not issued nor is SBB bound by any subscription, option, warrant, call, commitment, agreement or other Right of any character relating to the purchase, sale, or issuance of, or right to receive dividends or other
distributions on, any shares of SBB Capital Stock or any other security of SBB or any securities representing the right to vote, purchase or otherwise receive any shares of SBB Capital Stock or any other security of SBB, whether or not presently
issued or outstanding. All shares of SBB Capital Stock have been issued in compliance in all material respects with all Laws. 
 (b) FCFG
owns all SBB Capital Stock. 
 3.03 Authority; No Violation. 
 (a) SBB has full power and authority to execute, deliver and perform this Agreement and to consummate the Contemplated Transactions. The execution,
delivery and performance of this Agreement by SBB and the consummation by SBB of the Merger have been duly authorized and approved by all necessary corporate or other action and no other corporate proceedings on the part of SBB are necessary to
authorize this Agreement and the transactions contemplated hereby. 
 (b) This Agreement has been duly and validly executed and delivered by
SBB and, subject to receipt of, or exemption from, the required approvals of applicable Regulatory Authorities described in Section 5.03 hereof, constitutes the valid and binding obligation of SBB, enforceable against SBB in accordance with its
terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity. 
 (c) Each of (i) the execution and delivery of this Agreement by SBB, (ii) subject to receipt of, or exemption from, approvals of the Regulatory
Authorities referred to in Section 5.03 hereof and compliance by the parties hereto with any conditions contained therein, the consummation of the Contemplated Transactions, and (iii) the compliance by SBB with any of the terms or
provisions hereof, do not and will not: 
 (A) conflict with or result in a breach of any provision of the Organization
Certificate or by-laws of SBB; 
 (B) violate any statute, rule, regulation, judgment, order, injunction, writ, decree or
injunction applicable to SBB or any of its properties or assets; or 
  

 8 

 (C) violate, conflict with, result in a breach of any provisions of, constitute a default
(or an event which, with notice or lapse of time, or both, would constitute a default) under, result in the termination of, or acceleration of, the performance required by, or result in a right of termination or acceleration or the creation of any
lien, security interest, charge or other encumbrance upon any of the properties or assets of SBB under any of the terms or conditions of any note, bond, mortgage, indenture, license, lease, agreement, commitment or other instrument or obligation to
which SBB is a party, or by which SBB or any of its properties or assets may be bound or affected. 
 (d) The Board of Directors of SBB has
approved this Agreement and the Contemplated Transactions. 
 3.04 Consents and Approvals. No consents or approvals of, or filings or
registrations with, any Regulatory Authority are necessary, and no consents or approvals of any third parties are necessary, in connection with the execution and delivery of this Agreement by SBB or, subject to the consents, approvals, filings and
registrations from or with the Regulatory Authorities referred to in Section 5.03 hereof and compliance with any conditions contained therein, the consummation by SBB of the Contemplated Transactions. There is no fact or circumstance or set of
facts or circumstances which would cause, or be likely to cause, any Regulatory Authority to fail to approve the Contemplated Transactions. 
 3.05 Pro Forma Balance Sheet. Attached hereto as Schedule 3.05 is a true and correct unaudited pro forma balance sheet (the “Pro Forma Balance Sheet”) of SBB reflecting the pro forma effect of the purchase of assets
and assumption of liabilities pursuant to the Purchase and Assumption Agreement. Upon consummation of the Purchase and Assumption Agreement, SBB shall have no liabilities whatsoever, whether accrued, contingent or otherwise, except liabilities that
are reflected or disclosed in the Pro Forma Balance Sheet. 
 3.06 Taxes. 
 Except as set forth on Schedule 3.06, 
 (i) SBB has filed, or has had filed on its behalf, all Tax Returns required to be filed by or with respect to SBB on or prior to the date hereof, and all such Tax Returns are complete and accurate and disclose all Taxes required to be paid
by or with respect to SBB for the periods covered thereby, and all Taxes shown to be due on such Tax Returns (and deficiencies asserted or assessments made as a result of any examination of such Tax Returns) have been timely paid; 
 (ii) SBB is not currently the beneficiary of any extension of time within which to file any Tax Return; 
 (iii) SBB has not waived or been requested to waive any statute of limitations in respect of Taxes which waiver is currently in effect; 
  

 9 

 (iv) the Tax Returns referred to in clause (i) have been examined by the appropriate taxing
authority or the period for assessment of the Taxes in respect of which each such Tax Return was required to be filed (taking into account all applicable extensions and waivers) has expired; 
 (v) there is no action, suit, investigation, audit, claim or assessment pending or proposed or threatened with respect to Taxes of SBB, and no basis
exists therefor; 
 (vi) Schedule 3.06 contains a list of all jurisdictions (whether foreign or domestic) to which any Tax is properly
payable by SBB; 
 (vii) Any Tax indemnity arrangements or Tax sharing agreements to which SBB is a party (other than this Agreement) will
terminate prior to the Closing Date and neither SBB nor the Surviving Bank will have any liability thereunder on or after the Closing Date; 
 (viii) there are no liens for Taxes upon the assets of SBB except liens relating to current Taxes not yet due; 
 (ix) all Taxes
which SBB is required by law to withhold or to collect for payment have been duly withheld and collected and have been paid to the appropriate governmental authority; 
 (x) SBB has not filed a consent under IRC Section 341(f) or any comparable provision of state statutes; 
 (xi) SBB is not currently liable, nor does SSB have any potential liability, for the Taxes of another person (a) under Treasury Regulations Section 1.1502-6 (or comparable provision of state, local or foreign law), (b) as
transferee or successor, or (c) by contract or indemnity or otherwise; 
 (xii) no stock transfer Taxes, sales Taxes, use Taxes, real
estate transfer or gains Taxes, or other similar Taxes will be imposed on SBB, or TIB as its successor, as a result of the transactions contemplated by this Agreement; 
 (xiii) no payment or other benefit, and no acceleration of the vesting of any options, payments or other benefits, will be, an “excess parachute payment” to a “disqualified individual” as those
terms are defined in IRC Section 280G as a direct or indirect result of the transactions contemplated by this Agreement; and 
 (xiv)
SBB is not a party to any understanding or arrangement described in IRC Section 6111(d) or Section 6662(d)(2)(C)(iii) and has not participated in a reportable transaction within the meaning of Section 1.6011-4 of the Treasury
Regulations (without regard to Section (b)(3) thereof). 
  

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 3.07 Legal Proceedings. SBB is not a party to any, and there are no pending or threatened Actions,
customer complaints, or governmental inquiries of any nature: 
 (a) against SBB; 
 (b) to which the assets of SBB are subject; 
 (c) challenging the validity or propriety of any of the Contemplated Transactions; or 
 (d) which could materially adversely affect
the ability of SBB to perform its obligations under this Agreement. 
 3.08 Compliance with Applicable Law. 
 (a) SBB holds all licenses, franchises, permits and authorizations necessary for the lawful conduct of its business under, and has complied in all
material respects with, all applicable Laws. 
 (b) SBB has filed all reports, registrations and statements, together with any amendments
required to be made with respect thereto, that it was required to file with any Regulatory Authority, and has filed all other reports and statements required to be filed by it, including without limitation, any report or statement required to be
filed pursuant to the Laws, of the United States, any state or any Regulatory Authority, and has paid all fees and assessments due and payable in connection therewith. 
 (c) No Regulatory Authority has initiated any Action or investigation into the business or operations of SBB. 
 (d) There is no: 
 (i) violation by SBB of the statutes, regulations or ordinances enforced by any Regulatory
Authority or law enforcement agency or body; 
 (ii) basis for the revocation of any license, franchise, permit or
governmental authorization which is material to SBB; or 
 (iii) basis for any sanctions, monetary or otherwise, by a
Regulatory Authority or law enforcement agency or body or any further cease and desist order, agreement or memorandum of understanding or any other agreement restricting or limiting, or purporting to restrict or limit, in any manner the operations
of SBB. 
 (e) SBB has not received, consented to, or entered into any notice, communication, memorandum, agreement or order of any
Regulatory Authority directing, restricting or limiting, or purporting to direct, restrict or limit, in any manner the operations of SBB (a “Regulatory Agreement”), except as heretofore disclosed to TIB. 
  

 11 

 (f) SBB is not aware of any basis for any unresolved violation, criticism, or exception by any Regulatory
Authority with respect to any Regulatory Agreement. 
 3.09 Brokers and Finders. Neither SBB nor any of its officers, directors,
employees, independent contractors or agents, has employed any broker, finder, investment banker or financial advisor, or incurred any liability for any fees or commissions to any such person, in connection with the Contemplated Transactions.

 3.10 CRA Compliance. SBB is in compliance, in all material respects, with the applicable provisions of the CRA, and, as of the date
hereof, SBB has received a CRA rating of “satisfactory” or better from the applicable Regulatory Authority. There is no fact or circumstance or set of facts or circumstances which would cause SBB to fail to comply with such provisions in a
manner which could have a Material Adverse Effect. SBB is not a party or subject to any agreement with respect to the CRA. 
 3.11
Information to be Supplied. The information supplied by SBB for inclusion in the Applications will, at the time each such document is filed with any Regulatory Authority and up to and including the dates of any required regulatory approvals
or consents, as such Applications may be amended by subsequent filings, be accurate in all material respects. 
 3.12 Nothing Precludes
Consummation. SBB is not aware of any facts or circumstances which may preclude SBB from successfully consummating the Contemplated Transactions or obtaining the regulatory approvals required to consummate such transactions. 
 3.13 Disclosure. None of the representations or warranties of SBB contained herein, and none of the information contained in the Schedules
referred to in this Article III, contains any untrue statement of a material fact or omits to state a material fact herein or therein necessary in order to make the statements contained herein or therein not misleading in any material respect.

 3.14 Compliance with Foreign Corrupt Practices Act. Neither SBB, nor to the Knowledge of SBB, any agent, employee or other person
acting on behalf of SBB has, directly or indirectly, used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity, made any unlawful payment to foreign or domestic government
officials or employees or to foreign or domestic political parties or campaigns from corporate funds, violated any provision of the Foreign Corrupt Practices Act of 1977, as amended, or made any bribe, rebate, payoff, influence payment, kickback or
other similar unlawful payment. 
 3.15 Bank Accounts; Powers of Attorney. Schedule 3.15 sets forth a complete and correct list of all
bank accounts and safe deposit boxes of SBB and persons authorized to sign or otherwise act with respect thereto as of the date 

  

 12 

 
hereof and a complete and correct list of all persons holding a general or special power of attorney granted by SBB. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES
OF FCFG 
 FCFG hereby represents and warrants to TIB as follows: 
 4.01 Organization. 
 (a) FCFG is a
corporation duly organized and validly existing and in good standing under the laws of the Delaware, and is a bank holding company. FCBank is a banking institution duly organized and validly existing and in good standing under the laws of the State
of California. 
 4.02 Authority; No Violation. 
 (a) Each of FCFG and FCBank has full corporate power and authority to execute and deliver this Agreement (in the case of FCFG Bancorp only) and the Indemnity Agreement and to consummate the Contemplated Transactions.

 (b) The execution and delivery of this Agreement by FCFG and the consummation by FCFG of the Merger have been duly and validly approved by
the Board of Directors of FCFG and FCBank and no other corporate proceedings on the part of FCFG or FCBank are necessary to consummate the Merger and the transactions contemplated hereby. 
 (c) This Agreement has been duly and validly executed and delivered by FCFG and, subject to receipt of the required approvals of Regulatory Authorities
described in Section 5.03 hereof, constitutes the valid and binding obligation of FCFG, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and
subject, as to enforceability, to general principles of equity. 
 (d) Each of (i) the execution of this Agreement by FCFG and the
execution of the Indemnity Agreement by FCFG and FCBank, (ii) subject to receipt of, or exemption from, approvals from the Regulatory Authorities referred to in Section 5.03 hereof and compliance by the parties hereto with any conditions
contained therein, the consummation of the Contemplated Transactions, and (iii) compliance by FCFG with any of the terms or provisions hereof, do not and will not: 
 (A) conflict with or result in a breach of any provision of the Organization Certificate or by-laws of FCFG or FCBank; 
 (B) violate any statute, rule, regulation, judgment, order, writ, decree or injunction applicable to FCFG or FCBank or any of their
respective properties or assets; or 
  

 13 

 (C) violate, conflict with, result in a breach of any provisions of, constitute a default
(or an event which, with notice or lapse of time, or both, would constitute a default) under, result in the termination of, or acceleration of, the performance required by, or result in a right of termination or acceleration or the creation of any
lien, security interest, charge or other encumbrance upon any of the properties or assets of FCFG or FCBank under any of the terms or conditions of any note, bond, mortgage, indenture, license, lease, agreement, commitment or other instrument or
obligation to which FCFG or FCBank is a party, or by which FCFG, FCBank or any of their respective properties or assets may be bound or affected, excluding from clauses (B) and (C) any such items which, in the aggregate, would not have a
Material Adverse Effect. 
 4.03 Consents and Approvals. 
 Except for (i) the notices, consents and approvals of, or exemptions from, the applicable Regulatory Authorities set forth in Schedule 5.03 and
(ii) the filing of appropriate merger documents, no consents or approvals of, or filings or registrations with, any Regulatory Authority are necessary, and no consents or approvals of any third parties are necessary, in connection with the
execution and delivery of this Agreement by FCFG or the consummation by FCFG or FCBank of the Contemplated Transactions. There is no fact or circumstance or set of facts or circumstances which would cause, or be likely to cause, any Regulatory
Authority to fail to approve the Contemplated Transactions. 
 4.04 Legal Proceedings. Neither FCFG nor FCBank is a party to any, and
there are no pending or, to the Knowledge of FCFG, threatened Actions which could materially adversely affect the ability of FCFG to perform its obligations under this Agreement. 
 4.05 Brokers and Finders. None of FCFG, FCBank or any of their respective officers, directors, employees, independent contractors or agents, has
employed any broker, finder, investment banker or financial advisor, or incurred any liability for any fees or commissions to any such person, in connection with the Contemplated Transactions. 
 4.06 Information to be Supplied. The information supplied by FCFG for inclusion in the Applications will, at the time each such document is filed
with any Regulatory Authority and up to and including the dates of any required regulatory approvals or consents, as such Applications may be amended by subsequent filings, be accurate in all material respects. 
 4.07 Ownership of SBB. FCFG owns of record and beneficially all the shares of SBB Capital Stock free and clear of any liens, security interests,
pledges, charges, encumbrances, agreements and restrictions of any kind of nature. 
 4.08 Taxes. Each of FCFG and FCBank has filed,
or has had filed on its behalf, all Tax Returns required to be filed by or with respect to FCFG and FCBank on or prior to the date hereof, and all such Tax Returns are complete and 

  

 14 

 
accurate and disclose all Taxes required to be paid by or with respect to FCFG and FCBank for the periods covered thereby, and all Taxes shown to be due on
such Tax Returns (and deficiencies asserted or assessments made as a result of any examination of such Tax Returns) have been timely paid. 
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF TIB 
 TIB hereby represents and warrants to FCFG as follows: 
 5.01 Organization. 
 (a) TIB is a banking institution duly organized and validly existing and in good
standing under the laws of the State of Texas. 
 5.02 Authority; No Violation. 
 (a) TIB has full corporate power and authority to execute and deliver this Agreement and to consummate the Contemplated Transactions. 
 (b) The execution and delivery of this Agreement by TIB and the consummation by TIB of the Merger have been duly and validly approved by the Board of
Directors of TIB and no other corporate proceedings on the part of TIB are necessary to consummate the Merger and the transactions contemplated hereby. 
 (c) This Agreement has been duly and validly executed and delivered by TIB and, subject to receipt of the required approvals of Regulatory Authorities described in Section 5.03 hereof, constitutes the valid and
binding obligation of TIB, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity.

 (d) Each of (i) the execution of this Agreement by TIB, (ii) subject to receipt of, or exemption from, approvals from the
Regulatory Authorities referred to in Section 5.03 hereof and compliance by the parties hereto with any conditions contained therein, the consummation of the Contemplated Transactions, and (iii) compliance by TIB with any of the terms or
provisions hereof, do not and will not: 
 (A) conflict with or result in a breach of any provision of the Organization
Certificate or by-laws of TIB; 
 (B) violate any statute, rule, regulation, judgment, order, writ, decree or injunction
applicable to TIB or any of its properties or assets; or 
 (C) violate, conflict with, result in a breach of any provisions
of, constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, result in the termination of, or acceleration of, the performance required by, or result in a right of termination or acceleration
or 

  

 15 

 
the creation of any lien, security interest, charge or other encumbrance upon any of the properties or assets of TIB under any of the terms or conditions of
any note, bond, mortgage, indenture, license, lease, agreement, commitment or other instrument or obligation to which TIB is a party, or by which TIB or any of its properties or assets may be bound or affected, excluding from clauses (B) and
(C) any such items which, in the aggregate, would not have a Material Adverse Effect. 
 5.03 Consents and Approvals. 

Except for (i) the notices, consents and approvals of, or exemptions from, the applicable Regulatory Authorities set forth in Schedule 5.03 and
(ii) the filing of appropriate merger documents, no consents or approvals of, or filings or registrations with, any Regulatory Authority are necessary, and no consents or approvals of any third parties are necessary, in connection with the
execution and delivery of this Agreement by TIB or the consummation by TIB of the Contemplated Transactions. There is no fact or circumstance or set of facts or circumstances which would cause, or be likely to cause, any Regulatory Authority to fail
to approve the Contemplated Transactions. 
 5.04 Cash for Closing. At the Closing Date, TIB will have available cash sufficient to
pay the Merger Consideration to FCFG upon consummation of the Contemplated Transactions. 
 5.05 Legal Proceedings. TIB is not a party
to any, and there are no pending or, to the Knowledge of TIB, threatened Actions which could materially adversely affect the ability of TIB to perform its obligations under this Agreement. 
 5.06 Brokers and Finders. Neither TIB nor any of its officers, directors, employees, independent contractors or agents, has employed any broker,
finder, investment banker or financial advisor, or incurred any liability for any fees or commissions to any such person, in connection with the Contemplated Transactions. 
 5.07 Information to be Supplied. The information supplied by TIB for inclusion in the Applications will, at the time each such document is filed
with any Regulatory Authority and up to and including the dates of any required regulatory approvals or consents, as such Applications may be amended by subsequent filings, be accurate in all material respects. 
  

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 ARTICLE VI 
 COVENANTS OF THE PARTIES 
 The parties covenant and agree as follows, provided that the covenants and
agreements of SBB shall take effect on the Initial Purchase Closing Date: 
 6.01 Applications for Regulatory Approval. 
 (a) Each of FCFG, SBB and TIB shall use its Reasonable Best Efforts to prepare and file, as soon as practicable and at such party’s expense, all
Applications required by law with the appropriate Regulatory Authorities for approval to consummate the Contemplated Transactions and to comply with the terms and conditions thereof. To the extent not filed prior to the date hereof, all such
Applications shall be filed within thirty (30) days from the date that all Regulatory Applications filed in connection wit the Initial Merger have been accepted by the Regulatory Authority. Each of FCFG, SBB and TIB agrees to process all such
Applications diligently and on a priority basis. Each of FCFG, SBB and TIB shall cooperate with the other party in the preparation of all such Applications and as otherwise reasonably requested by such other party in order for such other party to be
able to comply with the requirements or reasonable requests of the Regulatory Authorities. Each of FCFG, SBB and TIB shall consult with the other party with respect to the substance and status of such filings. 
 (b) Each of FCFG, SBB and TIB shall promptly notify the other party upon receipt by such party of any notification that any Application provided for
under this Agreement has not been accepted for processing or has been denied. 
 6.02 Consents to Contemplated Transactions. FCFG and
SBB shall obtain all required consents to the Contemplated Transactions under any contracts or personal or real property leases, if any, each of which consents shall be in such form as shall reasonably be specified by TIB. 
 6.03 Taking of Necessary Actions. Through the Closing Date, in addition to the specific agreements contained herein, each party hereto shall use
Reasonable Best Efforts to take all actions, and to do all things necessary, proper or advisable under applicable Laws to consummate the Contemplated Transactions including, if necessary, appealing any adverse ruling in respect of any Application.

 6.04 Public Announcements. FCFG and TIB shall agree upon the form and substance of any press release related to this Agreement and
the Contemplated Transactions, but nothing contained herein shall prohibit either party, following notification to the other party, from making any disclosure which its counsel deems necessary under applicable law, provided that any such
announcement follows reasonable consultation with the other party and its counsel. 
 6.05 No Solicitation. (a) Each of SBB and
FCFG shall not, nor shall it authorize or permit its directors, officers or employees or any investment banker, financial advisor, attorney, accountant or other representative retained by it to, directly or indirectly through another person,
(i) solicit, initiate or encourage 

  

 17 

 
(including by way of furnishing information), or take any other action to facilitate, any inquiries or the making of any proposal that constitutes, or may
reasonably be expected to lead to, any Acquisition Proposal or (ii) participate in any discussions or negotiations regarding any Acquisition Proposal. 
 For purposes of this Agreement: 
 “Acquisition Proposal” means any written or oral proposal
for a merger or other business combination involving SBB or any written or oral proposal or offer to acquire in any manner, directly or indirectly, an equity interest in SBB, any voting securities of SBB or a substantial portion of the assets of SBB
(other than sales of SBB’s products in the ordinary course of business consistent with past practice), other than the transactions contemplated by this Agreement; 
 (b) Subject to being obligated to take such action by its fiduciary duties under applicable law, neither the Board of Directors of SBB or FCFG nor any committee thereof shall (i) withdraw or modify, or propose
publicly to withdraw or modify, in a manner adverse to TIB, the approval or recommendation by such Board of Directors or such committee of the Merger or this Agreement, (ii) approve or recommend, or propose publicly to approve or recommend, any
Acquisition Proposal or (iii) approve or recommend, or propose to approve or recommend, or execute or enter into, any letter of intent, agreement in principle, merger agreement, acquisition agreement, option agreement or other similar agreement
or propose publicly or agree to do any of the foregoing (each, an “Acquisition Agreement”) related to any Acquisition Proposal; and 
 (c) FCFG and SBB shall promptly advise TIB in writing of any Acquisition Proposal, the material terms and conditions of such request or Acquisition Proposal and the identity of the Person making such request or
Acquisition Proposal. FCFG and SBB will keep TIB informed of the status and material terms and conditions (including amendments or proposed amendments) of any such request or Acquisition Proposal. FCFG and SBB shall, and shall cause its
stockholders, advisors, employees and other agents of FCFG and SBB to, cease immediately and cause to be terminated any and all existing activities, discussions or negotiations, if any, with any third party conducted prior to the date hereof with
respect to any Acquisition Proposal and shall use its Reasonable Best Efforts to cause any such third party (or its agents or advisors) in possession of confidential information about SBB that was furnished by or on behalf of SBB to return or
destroy such information. 
 6.06 Notification of Certain Matters. FCFG and SBB shall give prompt notice to TIB, and TIB shall give
prompt notice to FCFG, of (a) the actual or prospective occurrence, or non-occurrence, of any event which would be likely to cause (i) any representation or warranty contained in this Agreement to be untrue or inaccurate in any material
respect or (ii) any covenant, condition or agreement contained in this Agreement not to be complied with or satisfied in any material respect; and (b) any failure of FCFG, SBB or TIB, as the case may be, to comply with or satisfy any
covenant, condition or agreement to be complied with or satisfied by it in any material respect hereunder; provided that the delivery of any notice pursuant to this Section 6.06 shall not limit or otherwise affect the remedies available to the
party receiving such notice. 
  

 18 

 6.07 Relocation of Head Office. Prior to the Closing Date, upon reasonable notice by TIB, FCFG and
SBB shall cause the head office of SBB to be relocated (including the filing of any notice or application with any applicable Regulatory Authority for such relocation) to 17011 Beach Boulevard, Suite 1260, Huntington Beach, California or such other
location in the greater Los Angeles, California area as directed by TIB. 
 6.08 No Amendment of Purchase and Assumption Agreement.
Neither SBB nor FCFG shall amend or modify, or in the case of FCFG, permit FCBank or SBB to amend, the Purchase and Assumption Agreement in a manner adverse to TIB without the written consent of TIB. 
 ARTICLE VII 
 CONDITIONS PRECEDENT

 7.01 Conditions Precedent to Each Party’s Obligation to Effect the Merger. The respective obligations of each party hereto
to effect the Merger shall be subject to the fulfillment or satisfaction, prior to or on the Closing Date, of the following conditions, unless waived by TIB, FCFG and SBB pursuant to Section 10.03 hereof: 
 (a) Approvals of Regulatory Authorities. All requisite approvals and consents of Regulatory Authorities and the expiration of the statutory
waiting period or periods relating to the Contemplated Transactions shall have been obtained, made or occurred and this Agreement shall have been filed, together with such certificates and the original of the approval of the Texas Banking
Commissioner and the OCC. 
 (b) No Litigation. No judgment, order, decree, statute, law, ordinance, rule or regulation, entered,
enacted, promulgated, enforced or issued by any court or other governmental entity of competent jurisdiction or other legal restraint or prohibition shall be in effect with respect to the transactions contemplated hereby, and there shall not be
pending any suit, action or proceeding by any governmental entity (i) preventing the consummation of the Contemplated Transactions or (ii) which otherwise is reasonably likely to have a Material Adverse Effect on FCFG, SBB or TIB, as
applicable. 
 (c) Closing of the Purchase and Assumption Agreement. The closing of the transactions contemplated in the Purchase and
Assumption Agreement shall have occurred. The Purchase and Assumption Agreement shall be in a form satisfactory to TIB. 
 7.02 Conditions
Precedent to Obligations of TIB. All obligations of TIB under this Agreement are subject to the fulfillment or satisfaction, prior to or on the Closing Date, of each of the following conditions precedent, unless waived by TIB pursuant to
Section 10.03 hereof: 
 (a) Performance of Obligations; Representations and Warranties. FCFG and SBB shall have performed and
complied in all material respects with all agreements and conditions contained in this Agreement that are required to be performed or complied with by it prior to or 

  

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at the Closing. Each of FCFG and SBB’s representations and warranties contained in Articles III and IV of this Agreement and in the Purchase and
Assumption Agreement to the extent it is qualified by Material Adverse Effect or materiality shall be true and correct, and each of FCFG and SBB’s representations and warranties contained in Article III and IV of this Agreement and the Purchase
and Assumption Agreement to the extent it is not so qualified by Material Adverse Effect or materiality shall be true and correct in all material respects, in each case, at and as of the Effective Time with the same effect as though such
representations and warranties were made at and as of the Effective Time, except for changes permitted by this Agreement and except to the extent that any representations and warranties expressly relate to an earlier date, in which case such
representations and warranties shall be as of such earlier date. 
 (b) Good Standing. FCFG shall have delivered a certificate of good
standing of SBB issued as of a recent date by the OCC. 
 (c) Consents. SBB shall have received all necessary consents or waivers, in
form and substance satisfactory to TIB, from the other parties to each contract, lease or agreement to which SBB is a party, except where the failure to receive such consent would not reasonably be expected, individually or in the aggregate, to have
a Material Adverse Effect on SBB. 
 (d) Indemnity Agreement. FCFG and FCBank shall have executed and delivered to TIB the Indemnity
Agreement in the form of Exhibit A, which shall be in full force and effect. 
 (e) Opinion of Counsel. TIB shall have received
the favorable written opinion dated the Closing Date of Horgan, Rosen, Beckham & Coren, L.L.P., counsel to FCFG, FCBank and SBB, in form and satisfactory to TIB, to the effect that: 
 (i) Each of FCFG, FCBank and SBB is, to counsel’s Knowledge, duly organized, and each of FCBank and SBB is validly existing in good
standing as a bank organized under the laws of the United States, and has the corporate power to own all its properties and assets and to carry on its business as it is now being conducted; 
 (ii) This Agreement (in the case of SBB and FCFG) and the Indemnity Agreement (in the case of FCBank and FCFG) has been duly authorized,
executed, and delivered by FCBank, FCFG and SBB and constitutes a valid and binding agreement of such party, enforceable against such party in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency,
or similar laws affecting the rights of creditors now or hereafter in effect and subject, as to enforceability, to general principles of equity; 
 (iii) Neither the execution and delivery of this Agreement (in the case of SBB and FCFG) or the Indemnity Agreement (in the case of FCBank and FCFG) nor the consummation of the transactions contemplated herein or
therein will result in a material default under or violation of any provision of the organizational documents of FCFG, FCBank or SBB or any material indenture, mortgage, deed of trust, loan agreement or other material agreement, known to such
counsel after due inquiry, to which FCFG, FCBank or SBB is a party or by which FCFG, FCBank or SBB is bound or as to which any of FCFG, FCBank or SBB’s properties are subject, and no consents or waivers 

  

 20 

 
thereunder are required to be obtained by FCFG, FCBank or SBB in connection therewith except the consents or waivers which have been obtained; 
 (iv) All consents, authorizations, orders and approvals of any Regulatory Authority (specifying the same) required for the execution,
delivery, and performance of this Agreement (in the case of SBB and FCFG) and the Indemnity Agreement (in the case of FCBank and FCFG) and the consummation of the transactions contemplated herein have been obtained or the relevant waiting periods
have expired. 
 (f) Officer’s Certificate. TIB shall have received a certificate dated the Closing Date and signed by the
President or a Vice-President of FCFG and SBB, respectively, certifying that, the conditions specified in Section 7.02(a) have been satisfied. 
 7.03 Conditions Precedent to Obligations of FCFG and SBB. All obligations of FCFG and SBB under this Agreement are subject to the fulfillment or satisfaction, prior to or on the Closing Date, of each of the following conditions
precedent, unless waived by FCFG and SBB pursuant to Section 10.03 hereof: 
 (a) Performance of Obligations; Representations and
Warranties. TIB shall have performed and complied in all material respects with all agreements and conditions contained in this Agreement that are required to be performed or complied with by it prior to or at the Closing. TIB’s
representations and warranties contained in Article V of this Agreement to the extent it is qualified by Material Adverse Effect or materiality shall be true and correct, and TIB’s representations and warranties contained in Article V of this
Agreement to the extent it is not so qualified by Material Adverse Effect or materiality shall be true and correct in all material respects, in each case, on and as of the Closing with the same effect as though such representations and warranties
were made on and as of the Closing, except for changes permitted by this Agreement and except to the extent that any representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be as of
such earlier date. 
 (b) Stockholder Approval. TIB shall have received the requisite stockholder approval of this Agreement and the
Merger as required under its Organization Certificate. 
 (c) Officer’s Certificate. FCFG and SBB shall have received a
certificate dated the Closing Date and signed by a duly authorized officer of TIB, certifying that, the conditions specified in Section 7.03(a) have been satisfied. 
 7.04 Potential Restructuring of Transaction. At TIB’s request, the acquisition by TIB of SBB pursuant to the Merger may be effected by an alternative transaction structure different than that contemplated
by this Agreement, and each of SBB and FCFG agrees to amend this Agreement to effect such alternative structure; provided, that no such amendment shall adversely affect SBB or FCFG. 
  

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 ARTICLE VIII 
 TERMINATION 
 8.01 Termination. This Agreement may be terminated on or at any time prior to
the Closing Date: 
 (a) By the mutual written consent of each of the parties hereto; 
 (b) By FCFG, if TIB shall have breached or failed in any material respect to perform or comply with any of its representations, warranties, covenants or
other agreements contained in this Agreement, which breach or failure to perform or comply (A) would give rise to the failure of a material condition set forth in Section 7.03 and (B) cannot be, or shall not have been, remedied within
30 days after receipt by such party of written notice specifying the nature of such breach and requesting that it be remedied; provided, that, if such breach cannot reasonably be cured within such 30-day period but may reasonably be cured within 60
days, and such cure is being diligently pursued, no such termination shall occur prior to the expiration of such 60-day period; 
 (c) By
TIB, if FCFG or SBB shall have breached or failed in any material respect to perform or comply with any of its representations, warranties, covenants or other agreements contained in this Agreement, which breach or failure to perform or comply
(A) would give rise to the failure of a material condition set forth in Section 7.02 and (B) cannot be, or shall not have been, remedied within 30 days after receipt by such party of written notice specifying the nature of such breach
and requesting that it be remedied; provided, that, if such breach cannot reasonably be cured within such 30-day period but may reasonably be cured within 60 days, and such cure is being diligently pursued, no such termination shall occur prior to
the expiration of such 60-day period; 
 (d) By either FCFG or TIB, if the Closing shall not have occurred by December 31, 2007;
provided, however, that the right to terminate this Agreement under this Section 8.01(d) shall not be available to any party whose failure to fulfill any obligation under this Agreement shall have been the cause of, or shall have resulted in,
the failure of the Closing to occur on or prior to such date; 
 (e) By either FCFG or TIB, if any Regulatory Authority whose approval or
consent is required for consummation of the Contemplated Transactions shall issue a definitive written denial of such approval or consent and the time period for appeals and requests for reconsideration has run. 
 8.02 Effect of Termination. 
 (a) If
this Agreement is terminated pursuant to Section 8.01 hereof, this Agreement shall forthwith become void, other than Sections 6.04, 8.02, 10.01, 10.04 and 10.06 hereof which shall remain in full force and effect, and there shall be no
further liability on the part of any party hereto, except for any liability of a party under such Sections of this Agreement, and except that no party shall be relieved or released from any liabilities or damages arising out of its breach of
any provision of this Agreement. 
  

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 (b) If this Agreement is terminated by TIB pursuant to Section 8.01(c), FCFG shall pay TIB
liquidated damages in the amount of $100,000. If this Agreement is terminated by FCFG pursuant to Section 8.01(b), TIB shall pay FCFG liquidated damages in the amount of $100,000. The parties hereto recognize and agree that the ascertainment of
damages in the event of a default by the other party is difficult or impossible with any degree of definiteness. Accordingly, the parties hereto agree that such measure of liquidated damages is fair and equitable under the circumstances. 

(c) Any amounts in respect of liquidated damages shall be paid by wire transfer within 7 days following the date of termination or within 7 days of
such later date as it shall become payable. 
 ARTICLE IX 
 INDEMNIFICATION; REMEDIES 
 9.01 Survival. All representations, warranties, covenants, and
obligations in this Agreement will survive the Closing. 
 9.02 Indemnification by FCFG. 
 FCFG and FCB will jointly and severally indemnify and hold harmless TIB and its respective directors, officers, employees, agents and other
representatives (the “Indemnified Persons”) from and against any loss, liability, claim, damage, expense (including, without limitation, costs of investigation, defense and litigation, and reasonable fees and expenses of attorneys,
accountants and investment bankers incurred in connection with such investigation, defense and litigation or in connection with the execution of this Agreement and the carrying out of any and all acts contemplated herein) (all of the foregoing,
collectively, “Damages”) arising, directly or indirectly, from or in connection with (i) any inaccuracy of any representation or warranty of SBB or FCFG or (ii) any breach of covenant or obligations of SBB or FCFG.

 9.03 Non-Exclusive Remedy. The remedies provided in this Article IX are not exclusive of, and shall not preclude, any other
remedies that would otherwise be available to TIB or any other Indemnified Person, but are in addition to any other rights or remedies available to the parties hereto at law or in equity. 
 ARTICLE X 
 MISCELLANEOUS 
 10.01 Expenses and Other Fees. Each party hereto shall bear and pay all costs and expenses incurred by it in connection with the Contemplated
Transactions, including fees and expenses of its own attorneys, accountants and investment bankers. 
  

 23 

 10.02 Specific Performance. The parties hereto agree that irreparable damage would occur in the
event that the provisions contained in this Agreement were not performed in accordance with its specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to seek an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in any court of the United States or any state having jurisdiction, including those courts specifically identified in Section 10.12 of this
Agreement, this being in addition to any other remedy to which they are entitled at law or in equity. 
 10.03 Amendment, Extension and
Waiver. Subject to applicable law, at any time prior to the Closing Date, the parties may: 
 (a) amend this Agreement; 
 (b) extend the time for the performance of any of the obligations or other acts of either party hereto; 
 (c) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto; or 
 (d) to the extent permitted by law, waive compliance with any of the agreements or conditions of the other party contained herein. 
 This Agreement may not be amended except by an instrument in writing signed, by authorized officers, on behalf of the parties hereto. Any agreement on
the part of a party hereto to any extension or waiver shall be valid only if set forth in an instrument in writing signed by a duly authorized officer on behalf of such party, but such waiver or failure to insist on strict compliance with such
obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure. 
 10.04 Entire Agreement; No Third Party Beneficiaries. 
 (a) This Agreement and the Indemnity Agreement, including the
documents referred to herein or delivered pursuant hereto, contains the entire agreement and understanding of the parties with respect to its subject matter. This Agreement supersedes all prior arrangements and understandings between the parties,
both written and oral, with respect to its subject matter other than the Confidentiality Agreement (if any). 
 (b) This Agreement shall
inure to the benefit of and be binding upon the parties hereto and their respective successors; provided, however, that except as provided in Article IX with respect to Indemnified Persons, nothing in this Agreement, expressed or implied, is
intended to confer upon any party, other than the parties hereto and their respective successors, any rights, remedies, obligations or liabilities. 
 10.05 No Assignment. No party hereto may assign any of its rights or obligations hereunder to any other person, without the prior written consent of the other parties hereto which consent shall not be unreasonably withheld; provided,

  

 24 

 
however, that TIB may assign this Agreement to an Affiliate of TIB without the consent of SBB and FCFG but such assignment shall not relieve TIB of its
obligations hereunder. 
 10.06 Notices. All notices or other communications hereunder shall be in writing and shall be deemed given
upon delivery if delivered personally, two Business Days after mailing if mailed by prepaid registered or certified mail, return receipt requested, or upon confirmation of good transmission if sent by telecopy, addressed as follows: 
  

	(a)	If to SBB or FCFG, to: 

 c/o First California Bank

 1100 Paseo Camarillo Camarillo, 
 California 93010 
 Attention: C. G. Kum 
 President and CEO 
 Telecopy
No.: 805-388-0536 
 with a copy to: 
 Gary M. Horgan 
 Horgan, Rosen, Beckham & Coren, L.L.P. 
 23975 Park Sorrento, Suite 200 
 Calabasas,
California 91302-4001 
 Telecopy No.: 818-591-3838 
  

	(b)	If to TIB, to: 

 TIB The Independent BankersBank

 350 Phelps Drive 
 Irving, TX
75038 
 Attention: Curtis R. Harvey 
 Executive Vice President and CFO 
 Telecopy No.: 972- 541-2211 
 with a copy to: 
 James M. Rockett

 Bingham McCutchen LLP 
 3
Embarcadero Center 
 San Francisco, CA 94111 
 Telecopy No.: 415-393-2286 
 10.07 Schedules. Information contained on any Schedule shall be deemed
to cover the express disclosure requirement contained in a representation or warranty of this Agreement and any other representation or warranty of this Agreement of such party where it is readily apparent it applies to such provision. 

  

 25 

 
The mere inclusion of an item in a Schedule as an exception to a representation or warranty shall not be deemed an admission by a party that such item
represents a material exception or fact, event or circumstance or that such item is or could result in a Material Adverse Effect. 
 10.08
Captions. The captions contained in this Agreement are for reference purposes only and are not part of this Agreement. 
 10.09
Counterparts. This Agreement may be executed in any number of counterparts, and each such counterpart shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement. 
 10.10 Severability. If any provision of this Agreement or the application thereof to any person or circumstance shall be invalid or unenforceable
to any extent, the remainder of this Agreement and the application of such provisions to other persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 
 10.11 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, without regard to
conflicts of laws principles. 
 10.12 Consent to Jurisdiction; Service of Process. Each of SBB, FCFG and TIB irrevocably and
unconditionally (a) agree that any Action arising out of this Agreement shall be brought and adjudicated in the in the federal courts situated in Dallas, Texas; (b) submit to the exclusive jurisdiction of such courts for the purpose of any
such Action; (c) waive and agree not to assert by way of motion, as a defense or otherwise in any such Action, any claim that such party is not subject to the jurisdiction of the such courts, that such Action is brought in an inconvenient
forum, or that the venue of such Action is improper; and (d) agree that process in any such Action may be served by ordinary mail addressed to the last known address of SBB, FCFG or TIB, as the case may be, anywhere in the world to the extent
permitted by Federal rules. 
 10.13 Waiver of Jury Trial. SBB, FCFG and TIB each irrevocably and unconditionally agree that any
Action arising out of this Agreement shall be tried only by a court and judge and not by a jury. EACH PARTY HEREBY EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH ACTION. 
  

 26 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized
officers as of the day and year first above written. 
  

					
	TIB THE INDEPENDENT BANKERSBANK
		
	By:	 	/s/ Michael G. O’Rourke
		 	Name:	 	Michael G. O’Rourke
		 	Title:	 	President & CEO

					
		
	Attest:	 	/s/ Patricia Blackshear
		 	Name:	 	Patricia Blackshear
		 	Title:	 	Senior Vice President & Corp. Secretary

					
	
	FIRST CALIFORNIA FINANCIAL GROUP, INC.
		
	By:	 	/s/ C. G. Kum
		 	Name:	 	C. G. Kum
		 	Title:	 	President & Chief Executive Officer

					
		
	Attest:	 	/s/ Romolo Santarosa
		 	Name:	 	Romolo Santarosa
		 	Title:	 	Assistant Corporate Secretary

					
	
	SOUTH BAY BANK, N.A.
		
	By:	 	/s/ C. G. Kum
		 	Name:	 	C. G. Kum
		 	Title:	 	President & Chief Executive Officer

					
		
	Attest:	 	/s/ Romolo Santarosa
		 	Name:	 	Romolo Santarosa
		 	Title:	 	Assistant Corporate Secretary

  

 27

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