Document:

EX-10.8

 Exhibit 10.8 
  

 
 

 
 June 3, 2014 

K. Brian Horton 
 219 S. Calle
Grande 
 Orange, CA 92869 

Dear Brian: 
 As you are aware,
earlier today we jointly announced the proposed combination of 1st Enterprise Bank (“FENB”) and California United Bank (“CUB”), to form what will be the premier business bank
in the Southern California market. Your participation in the planning for this event has been critical and we are grateful and pleased that you will be continuing with the combined company as President of CU Bancorp and of California United Bank, as
well as a member of the Board of Directors of each entity. On a personal note, I am very much looking forward to working with you for many years to come and believe we will create exceptional returns for our shareholders, customers and employees.

 While you have previously heard from FENB with regard to your participation in a “Pay-to-Stay Plan” to encourage your continued
efforts in the transition process, we also wanted to take this opportunity to discuss what we are proposing with regard to your major areas of compensation and benefits upon the consummation of the merger. On a formal note, you should understand
that some of these benefits are subject to our Compensation Committee approval at or after the merger, but we expect that the Committee will act promptly and in accord with this letter. 

Following the merger, your base salary will be increased to $340,000 on an annual basis. Beginning January 1, 2015, providing the merger
has occurred, you will begin to participate in the CU Bancorp Executive Incentive Plan which primarily provides cash incentives to Executive Officers based on achievement of Company and personal goals. Copies of this Plan were provided to FENB as
part of the due diligence process, if you would like to review the terms. We will also recommend that you receive 20,000 shares of CU Bancorp restricted stock, which will vest over a four year period (with 50% vesting on the second anniversary of
grant, 25% on the third anniversary and the remainder on the fourth anniversary of grant). The restricted stock grant will be pursuant to the CU Bancorp Equity Incentive Plan and the terms and conditions of that Plan. 

We would also expect you to participate in our CU Bancorp Change in Control Plan at a level of at least 2x annual cash compensation (a copy of
this Plan was also provided as a part of due diligence). We note that the CIC Plan (as well as the Salary Continuation Plan discussed below) provides for “cutbacks” in the event the benefit, combined with other benefits as defined in
applicable laws and regulations exceed certain statutory levels generally set out in Internal Revenue Code Section 280(g) and other similar provisions. 

 K. Brian Horton 

June 3, 2014 
  Page
 2
 
  

 Additionally, we would expect you to participate in our Executive Salary Continuation Plan
(copies provided during due diligence) which will provide a significant benefit over 15 years following normal retirement age. The exact amount will depend on a variety of factors and will be a percentage of your initial base salary which is
expected to equal or exceed the levels provided to other executives except David Rainer. 
 While we are excited about the transaction and
our mutual future, we assume that if the Transaction is terminated for any reason, you will continue your employment with FENB under the same terms and conditions of your current position with
FENB.i 
 Please feel free to contact me with any questions or concerns regarding the
information in this letter. Please date and sign the additional copy of this letter in the space provided below, indicating your receipt of the letter and your understanding of its contents, and return it to me within five business days of your
receipt of the letter. 
 Together we will build the best bank in all of California. 

Sincerely, 
 /s/ David I. Rainer 

David I. Rainer, President and Chief Executive Officer 
 CU
Bancorp and California United Bank 
 I have read and understand the above: 

 

					
	 /s/ K. Brian Horton
	 		 	 6/11/2014

	 K. Brian Horton
	 		 	 Date

  
  

	i 	 Nothing in this letter constitutes an employment contract or alters the nature of your at-will employment status.EX-10.9

 Exhibit 10.9 
  

 
 

 
 June 3, 2014 
 Jeffrey
R. McGraa 
 290 Lake Sherwood Drive 
 Westlake Village, CA
91361 
 Dear Jeff: 
 We are
pleased to let you know that earlier today we jointly announced the proposed combination of 1st Enterprise Bank (“FENB”) and California United Bank (“CUB”), to form what will
be the premier business bank in the southern California market. We are looking forward to your participation in this combination and expect the combination will provide employees in positions such as yours with significant opportunity. We believe
that you will have an important ongoing role as part of the combined institution in the future, and wanted you to know this as quickly as possible. We are committed to keeping all of the employees of both institutions updated as the transaction
moves forward. 
 It is our pleasure to notify you that at the Closing you will be offered the opportunity to continue as an
Executive Vice President – Credit Administration of the combined bank. No change in your office location is currently contemplated. 

You have previously been notified of your participation in an FENB “pay-to-stay” plan to encourage your assistance
with the pre-merger transition. To thank you for your future contributions to the combined bank, you will also be eligible to receive a special incentive payment (“Incentive Payment”) in the gross amount of $50,000 if you are an employee
at the time of the Closing and remain employed with the combined bank for a twelve month period following the Closing Date (“Payment Date”). The Incentive Payment will be subject to deductions required by law and will be paid in a
one-time, lump sum payment within 10 days of the Payment Date. 
 In addition to the Incentive Payment, in order to provide
you with an opportunity to increase your ownership of the combined company we will recommend to the Board of Directors of CU Bancorp (or an appropriate committee thereof) that you be granted 4,000 shares of CU Bancorp restricted stock pursuant to
the terms and conditions of the CU Bancorp 2007 Equity and Incentive Plan, as amended. This restricted stock would vest over a 3 year period with 1/3 vesting on the first anniversary of the grant, 1/3 on the second anniversary and the remainder on
the third anniversary. This recommendation will take place at the next scheduled Board of Directors Meeting following the Closing. Should the Board approve the grant, a full disclosure of the terms and conditions of this grant will be provided to
you. 

 Jeffrey R. McGraa 

June 3, 2014 
  Page
 2
 
  

Between now and the Closing we do not expect any changes in your normal duties other than activities preparing for the
integration of our banks’ operations. Salary and benefits will not change. However, immediately following the Closing your annual base salary will be increased to $250,000. 

At this time, subject to obtaining the necessary regulatory and shareholder approvals, we expect the merger to be finalized in
the latter part of October or early November 2014 (the “Closing”). 
 If the transaction is terminated for any
reason, you will continue your employment with FENB under the same terms and conditions of your current position with FENB.i 

Please feel free to contact the undersigned with any questions or concerns regarding the information in this letter. Please
date and sign the additional copy of this letter in the space provided below, indicating your receipt of the letter and your understanding of its contents, and return it to Melanie Black or Susan Smith within five business days of your receipt of
the letter. 
 We appreciate your contribution to FENB and we look forward to your continuing contribution to the combined
bank. 
 Sincerely, 
  

					
	 /s/ K. Brian Horton
	 		 	 /s/ David I. Rainer

	 K. Brian Horton
	 		 	 David I. Rainer

	 President
	 		 	 President & CEO

	 1st Enterprise Bank
	 		 	 California United Bank

 I have read and understand the above: 

 

					
	 /s/ Jeffrey McGraa
	 		 	 06/03/2014

	 Jeffrey McGraa
	 		 	 Date

  
  

	i 	 Nothing in this letter constitutes an employment contract or alters the nature of your at-will employment status.Exhibit 10.1

 

AAR CORP. Fiscal 2015 Short-Term Incentive Plan

 

1.                                      Purpose.

 

The purpose of the AAR CORP. 2015 Short-Term Incentive Plan (“STIP”) is to provide an incentive for selected senior executives of AAR CORP. (the “Company”) and its subsidiaries to achieve the Company’s short-term performance goals by providing them with an annual cash incentive payment based on the financial and operating success of the Company.

 

2.                                      Definitions.

 

(a)                                 “Board” means the Board of Directors of the Company.

 

(b)                                 “Bonus” means the annual cash incentive paid to a Participant under this STIP for a fiscal year of the Company.

 

(c)                                  “Cash Flow from Operations” means cash flow from operations as disclosed by the Company in periodic reports filed with the Securities and Exchange Commission, excluding working capital investments in the Eaton, SRT and Mesa programs (or similar programs), special charges or unusual or infrequent items incurred during the performance period, and as adjusted for changes in generally accepted accounting principles.

 

(d)                                 “Cause” means the Participant’s unsatisfactory performance or conduct detrimental to the Company and its subsidiaries, as solely determined by the Company.

 

(e)                                  “Code” means the Internal Revenue Code of 1986, as amended.

 

(f)                                   “Committee” means the Compensation Committee of the Board, or if the Committee is not comprised of “outside directors” as defined in Section 162(m) of the Code, then by a subset of the Committee comprised of at least two “outside directors” (the “Committee”).

 

(g)                                  “Company” means AAR CORP.

 

(h)                                 “Disability” means the inability of the Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.

 

(i)                                     “Earnings Per Share” means diluted earnings per share as disclosed by the Company in its periodic reports filed with the Securities and Exchange Commission, excluding special charges or unusual or infrequent items incurred during the performance period, and as adjusted for changes in generally accepted accounting principles.

 

(j)                                    “Participant” means any active executive of the Company or subsidiary who has been selected by the Committee as eligible to earn a Bonus under the STIP.

 

(k)                                 “Retirement” means the Participant’s voluntary termination of his employment, or his termination of employment by the Company or a subsidiary without Cause, when he has

 

 

(i) attained age 65 or (ii) attained age 55 and his age plus the number of his consecutive years of service with the Company and subsidiaries is at least 75.

 

(l)                                     “Salary” means a Participant’s base annual salary earned during a fiscal year of the Company while a Participant.

 

(m)                             “STIP” means this AAR CORP. 2015 Short-Term Incentive Plan.

 

3.                                      Administration.

 

The STIP shall be administered by the Committee.  The Committee has full authority to select the senior executives eligible to participate in the STIP and determine when the senior executive’s participation in the STIP will begin and end.  Subject to the express provisions of the STIP, the Committee shall be authorized to interpret the STIP and to establish, amend and rescind any rules and regulations relating to the STIP and to make all other determinations deemed necessary or advisable for the proper administration of the STIP.  The determinations of the Committee in the proper administration of the STIP shall be conclusive and binding.

 

4.                                      Eligibility and Participation.

 

Participation in the STIP is limited to those senior executives of the Company or a subsidiary who the Committee designates as Participants.  When the Committee selects an executive to become a Participant under the STIP, it shall designate the date as of which the executive’s participation shall begin.

 

5.                                      Annual Bonus Awards.

 

(a)                                 Determination of Participants, Performance Goals and Target Bonus Amounts. On or before the 90th day of each fiscal year of the Company, the Committee shall (i) determine the Participants for such fiscal year, (ii) establish threshold, target and maximum Earnings Per Share and Cash Flow from Operations goals for such fiscal year, and (iii) approve the target Bonus payment for each Participant expressed as a percentage of the Participant’s Salary.

 

(b)                                 Bonus Payment.  As soon as reasonably practicable after the end of the applicable fiscal year, the Committee shall determine the extent to which each of the Earnings Per Share and Cash Flow from Operations targets were attained for such fiscal year.  The Bonus payable to each Participant will be equal to the sum of (i) 75% of the Participant’s target Bonus multiplied by the applicable Earnings Per Share Multiplier Percentage and (ii) 25% of the Participant’s target Bonus multiplied by the Cash Flow from Operations Multiplier Percentage:

 

2

 

	
Earnings Per Share (75%)
    	
 
    	
Cash Flow from Operations (25%)
    	
 
    
	
Performance
   Achievement Level
    	
 
    	
Multiplier
   Percentage
    	
 
    	
Performance
   Achievement Level
    	
 
    	
Multiplier
   Percentage
    	
 
    
	
Threshold
    	
 
    	
50
    	
%
    	
Threshold
    	
 
    	
50
    	
%
    
	
Target
    	
 
    	
100
    	
%
    	
Target
    	
 
    	
100
    	
%
    
	
Maximum
    	
 
    	
200
    	
%
    	
Maximum
    	
 
    	
200
    	
%
    

 

For achievement of Earnings Per Share and Cash Flow from Operations targets between established performance achievement levels, the Multiplier Percentage will be interpolated on a straight-line basis.

 

6.                                      STIP Limitations.

 

Notwithstanding Section 5, (a) the Committee retains full discretion to determine whether any Bonus will be payable for a fiscal year and (b) no Bonus shall be paid under the STIP for a fiscal year to a Participant whose employment with the Company and all subsidiaries terminates during such fiscal year unless the termination is due to death, Disability or Retirement, or as otherwise approved by the Committee.  If the Participant terminates during the fiscal year due to death, Disability or Retirement, the Participant shall be entitled to a pro rata portion of the Bonus the Participant would have earned under the STIP had the Participant remained employed through the end of the fiscal year.  Such Bonus will be paid at the same time Bonuses are paid to active Participants.

 

Notwithstanding Section 5, (a) the Committee retains full discretion to determine whether any Bonus shall be payable in a given fiscal year, regardless of performance results and (b) no Bonus will be payable for a fiscal year if net income (as determined in accordance with generally accepted accounting principles) for such fiscal year is not positive.

 

7.                                      Payment of Bonuses.

 

A Participant’s Bonus for a fiscal year shall be paid in cash to the Participant, or to the Participant’s beneficiary (or beneficiaries) in the event of the Participant’s death, within three months after the end of such fiscal year, unless the Participant has previously elected to have all or a portion of the Bonus deferred in accordance with the AAR CORP. Supplemental Executive Retirement Plan.  The Company shall deduct all taxes required by law to be withheld from all Bonus payments.

 

8.                                      No Assignment.

 

Except in the event of a Participant’s death, the rights and interests of a Participant under the STIP shall not be assigned, encumbered or transferred.

 

9.                                      Termination of Participation.

 

The Committee reserves the right to cancel a Participant’s participation in the STIP at any time.

 

3

 

10.                               Employment Rights.

 

Nothing contained in the STIP shall be construed as conferring a right upon any employee to continue in the employment of the Company or any subsidiary.

 

11.                               Amendment/Termination.

 

The Board may either amend or terminate the STIP at any time, without the consent of the Participants and without the approval of the stockholders of the Company; provided, that such modification or elimination shall not affect the obligation of the Company to pay any Bonus after it has been earned under the STIP.

 

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