Document:

Exhibit 10.5

 

CONFIDENTIAL
WAIVER AND RELEASE AGREEMENT

 

This
Confidential Waiver and Release Agreement (the “Agreement”) is entered into by
and between Angelina Bingham (“Employee”) and 1st Century Bank, National
Association (the “Bank”).  The purpose of
this Agreement is to resolve and compromise any and all disputes and
controversies of any nature existing between Employee and the Bank, including,
but not limited to, any claims arising out of Employee’s employment with, and
separation from, the Bank.

 

1.     Separation
of Employment. Employee’s employment with the Bank is being terminated
without cause pursuant to Paragraph 5(a) of the Employment Agreement
previously entered into between Employee and the Bank on January 9, 2006 (“the
Employment Agreement”).    Employee’s last day of employment with the
Bank shall be May 31, 2006.

 

2.     Separation
Pay and Benefits Continuation.  The
Bank agrees that, after receipt by the Bank of a duly executed original of this
Agreement and on the first day following expiration of the Revocation Period
set forth in Paragraph 7, below, the Bank shall pay to Employee severance pay
in an amount equal to six months of Employee’s annual base salary or $87,500,
as set forth in Paragraph 5(a)(i) of the Employment Agreement, less all
applicable state and federal withholdings and less the amount of $2,739.42
reflecting vacation time taken by Employee for which no vacation accrual had
been earned. The Bank shall also provide for continuation of Employee’s
coverage under the group medical care, disability and life insurance benefit
plans consistent with the terms set forth in Paragraph 5(a)(ii) of
the Employment Agreement.  Employee’s
rights regarding stock options shall be governed by the terms of her stock
option grant agreement and the Bank’s applicable stock option plan, as modified
by the acceleration of stock options effected by
resolution of the Board of Directors on October 20, 2005 and the Resale
Restriction Agreement dated October 20, 2005.

 

3.     Warranty.
Employee acknowledges that she has received all monies and other benefits due
her as a result of her employment with and separation from the Bank.

 

4.     Employee’s
Release of Known and Unknown Claims. 
In exchange for the agreements contained in this Agreement, Employee
agrees unconditionally and forever to release and discharge the Bank, and any
of their affiliated business entities, as well as all of their respective
current and former owners, officers, directors, employees, representatives,
attorneys, agents and assigns, from any and all claims, actions, causes of
action, demands, rights, or damages of any kind or nature which Employee may
now have, or ever have, whether known or unknown, including any claims, causes
of action or demands of any nature arising out of or in any way relating to her
employment with, or separation from the Bank on or before the date of the
execution of this Agreement.

 

This
release specifically includes, but is not limited to, any claims for fraud;
breach of contract; breach of implied covenant of good faith and fair dealing;
inducement of breach; interference with contract; wrongful or unlawful
discharge or demotion; violation of 

 

 

public policy; sexual or any other type of assault and
battery; invasion of privacy; intentional or negligent infliction of emotional
distress; intentional or negligent misrepresentation; conspiracy; failure to
pay wages, benefits, vacation pay, severance pay, attorneys’ fees, or other
compensation of any sort; discrimination or harassment on the basis of race,
color, sex, gender, national origin, ancestry, religion, disability, handicap,
medical condition, marital status, sexual orientation or any other protected
category; any claim under Title VII of the Civil Rights Act of 1964, as
amended, the Americans with Disabilities Act, the Age Discrimination in
Employment Act of 1967, as amended by the Older Workers Benefits Protection Act
of 1990, the Family Medical Leave Act, the California Family Rights Act, and
the California Fair Employment and Housing Act, or Section 1981 of Title
42 of the United States Code; violation of COBRA; violation of any safety and
health laws, statutes or regulations; violation of ERISA; violation of the
Internal Revenue Code; or any other wrongful conduct, based upon events
occurring prior to the date of execution of this Agreement.

 

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

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH, IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

5.     Knowing
and Voluntary.  Employee represents
and agrees that she is entering into this Agreement knowingly and voluntarily.
Employee affirms that no promise or inducement was made to cause her to enter
into this Agreement, other than the severance pay promised to Employee in this
Agreement.  Employee further confirms
that she has not relied upon any other statement or representation by anyone
other than what is in this Agreement as a basis for her agreement.

 

6.     Execution
of Agreement.  Employee
expressly acknowledges that she has been provided twenty-one (21) days to
consider this Agreement and that she was informed that she had the right to
consult with counsel regarding this Agreement, and that she has had the
opportunity to consult with counsel.  To
the extent that Employee has taken fewer than twenty-one (21) days to consider
this Agreement, Employee acknowledges that she had sufficient time to consider
the Agreement and to consult with counsel and that she does not desire
additional time.

 

7.     Revocation.  This
Agreement is revocable by Employee for a period of seven calendar days
following her execution of this Agreement. 
The revocation must be in writing, must specifically revoke this
Agreement, and must be received by the Bank’s President prior to the eighth
calendar day following the execution of this Agreement.  This Agreement becomes effective, enforceable
and irrevocable on the eighth calendar day following Employee’s execution of
this Agreement.

 

8.     The
Bank’s Release of Claims against Employee. 
The Bank agrees unconditionally and forever to release and discharge
Employee, as well as any of her 

 

 

representatives and heirs, from any and all claims,
actions, causes of action, demands, rights or damages of any kind or nature
which the Bank may now have, or ever have, whether known or unknown, including
any claims, causes of action or demands of any nature arising out of or in any
way relating to Employee’s employment with, or separation from the Bank, and
including a waiver of the provisions and protections of California Civil Code Section 1542,
on or before the date of execution of this Agreement; provided, however, that
the Bank reserves the right to rescind its release of Employee in the event
Employee:  (a) is convicted for
committing a fraud upon the Bank or its customers, or (b) becomes the
subject of a formal enforcement order by any federal banking agency due to her actions or omissions while an officer of the Bank, to
the extent of any resulting loss or damage to, or civil monetary penalty
imposed upon, the Bank.

 

9.     References.  Employee agrees to refer any prospective
employers seeking references to the Bank’s Executive Vice President and Chief
Operating Officer.  Upon receiving such
an inquiry from an prospective employer of Employee, the Executive Vice
President and Chief Operating Officer shall respond by acknowledging Employee’s
dates of employment with the Bank and title only and will take no action to
disparage or interfere with potential employment opportunities of Employee.

 

10.   Non-Disparagement
of Bank.  Employee agrees not to make
any negative, disparaging, detrimental or derogatory comments to any third
party about the Bank or any of its employees, officers or directors.

 

11.   Return
of Property. Employee agrees to return to the Bank immediately all property
of the Bank that Employee has in her custody or control.  By signing this Agreement, Employee hereby
certifies that she will not retain possession of any of the Bank’s property.

 

12.   Confidentiality
of Bank Information and Non-Solicitation. 
Employee agrees to strictly comply with the Confidentiality and Business
Protection Covenants contained in Paragraphs 6 and 9 of her Employment
Agreement, and each of their subparts, which are considered material terms of
this Agreement.

 

13.   Non-Disclosure
of This Agreement.  Employee agrees
that the terms of this Agreement shall remain confidential and that she will
not disclose, disseminate and/or publicize, or cause or permit to be disclosed,
disseminated and/or publicized any of the terms of this Agreement, directly or
indirectly, specifically or generally, to any person, corporation, association
or governmental agency or other entity except: (a) to the extent necessary
to report income to appropriate taxing authorities; (b) in response to an
order of a court of competent jurisdiction or subpoena issued under the
authority thereof; or (c) in response to any subpoena issued by a state or
federal government agency; provided, however, that notice of receipt of such
judicial order, inquiry or subpoena shall immediately be communicated to the
Bank’s President telephonically, and confirmed immediately thereafter in
writing, so that the Bank will have the opportunity to intervene to assert what
rights it may have to non-disclosure prior to Employee’s response to the order,
inquiry or subpoena.  The non-disclosure
obligations imposed by this Agreement are ongoing.  Any violation of the terms of this Paragraph
will be considered a material breach.

 

 

14.   No
Admission of Liability.  This
Agreement does not constitute an admission of any kind by the Bank.

 

15.   Governing
Law.  This Agreement shall be
construed under the laws of the State of California, both procedural and
substantive.

 

16.   Arbitration.  Any and all disputes or claims arising out of
or in any way related to this Agreement, including without limitation, fraud in
the inducement of this Agreement, or relating to the general validity or
enforceability of this Agreement, as well as any claims arising out of Employee’s
employment with or separation from employment with the Bank shall be submitted
to final and binding arbitration before an arbitrator of the American
Arbitration Association (“AAA”) or other mutually agreeable alternative dispute
resolution company in Los Angeles County in accordance with the rules of
that body governing employment disputes. 
The prevailing party shall be entitled to reasonable costs and attorneys’
fees.  Judgment on the award rendered by
the arbitrator may be entered in any court having jurisdiction thereof.

 

17.   Waiver.  The failure to enforce any provision of this
Agreement shall not be construed to be a waiver of such provision or to affect
the validity of this Agreement or the right of any party to enforce this
Agreement.

 

18.   Modification.  No amendments to this Agreement will be valid
unless written and signed by Employee and an authorized representative of the
Bank.

 

19.   Severability.  If any sentence, phrase, paragraph,
subparagraph or portion of this Agreement is found to be illegal or
unenforceable, such action shall not affect the validity or enforceability of
the remaining sentences, phrases, paragraphs, subparagraphs or portions of this
Agreement.

 

20.   Ambiguities.  Both parties have participated in the
negotiation of this Agreement and, thus, it is understood and agreed that the
general rule that ambiguities are to be construed against the drafter
shall not apply to this Agreement.  In
the event that any language of this Agreement is found to be ambiguous, each
party shall have an opportunity to present evidence as to the actual intent of
the parties with respect to any such ambiguous language.

 

21.   Entire
Agreement/Integration. This Agreement, and the Employment Agreement,  constitute the entire agreement
between Employee and the Bank concerning the terms of Employee’s employment
with and separation from the Bank and the compensation related thereto.  No covenants, agreements, representations, or
warranties of any kind have been made to any party hereto.  All prior discussions and negotiations have
been and are merged and integrated into, and are superseded by, this Agreement.

 

PLEASE READ CAREFULLY. 
THIS AGREEMENT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.  THE UNDERSIGNED AGREE TO THE TERMS OF THIS
AGREEMENT AND VOLUNTARILY ENTER INTO IT WITH THE INTENT TO BE BOUND THEREBY.

 

 

	
  Dated: May 23,
  2006

  	
  /s/ Angelina Bingham

  
	
   

  	
  Angelina Bingham

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated: May 23,
  2006

  	
  1st Century Bank,
  National Association

  
	
   

  	
   

  
	
   

  	
  /s/ Richard S. Cupp

  
	
   

  	
  By: Richard S. Cupp

  
	
   

  	
  President and Chief
  Executive OfficerExhibit 10.8

 

Resale Restriction Agreement

 

October 20, 2005

 

1st Century Bank, N.A.

1875 Century Park East

Los Angeles, California  90067

 

Ladies and Gentlemen:

 

I am the holder of
            options (“Stock
Options”) to purchase the $5.00 par value common stock (“Common Stock”) of 1st
Century Bank, National Association (the “Company”).  Of these options,
           are vested (the “Vested
Shares”) meaning I am free to exercise the Stock Options and purchase the
Vested Shares, and
             remain
unvested (the “Subject Shares”), meaning that as of the date of this letter I
do not have the right to exercise the Stock Options and purchase the Subject
Shares.

 

Acceleration.

 

The Company has informed me
that its Board of Directors will be considering a proposal whereby the vesting
schedule of my Stock Options would be accelerated (the “Acceleration”).  If adopted the Acceleration would be
effective as of October 20, 2005 (the “Acceleration Effective Date”).  The effect of the Acceleration would be that
as of the Acceleration Effective Date I would be free to exercise all my Stock
Options with respect to Vested Shares as well as Subject Shares.

 

Resale Restriction.

 

I understand and agree that
the Stock Options were granted to me as an incentive for my continued
involvement with the Company and contribution to the successful, long-term
operation of the Company.  Further, I
understand that the Acceleration will not result in any additional tax
consequences.  Although the Acceleration
will allow me to exercise my Stock Options immediately, I agree to the terms of
the Resale Restriction described below (see Lapse of Resale Restriction) as a
condition of the Acceleration.

 

I agree that (other than as
set forth below), during the period beginning from the Acceleration Effective
Date and continuing to and including October 20, 2009 (the “Restricted
Period”) I will not sell, offer, agree to sell, contract to sell, hypothecate,
pledge, grant any option to purchase, make any short sale or otherwise dispose
of or hedge, directly or indirectly, any of the Subject Shares or any
securities convertible into, exchangeable or exercisable for or derived from
any Subject Shares (the “Resale Restriction”).

 

I understand and agree that
the Resale Restriction precludes me from engaging in any hedging or other
transaction or arrangement that is designed to, or which reasonably could be
expected to, lead to or result in a sale, disposition or transfer, in whole or
in part, of any of the economic consequences of ownership of the Subject Shares,
whether any such transaction is to be settled by delivery of Common Stock or
other securities, in cash or otherwise, even if such shares would be disposed
of by someone other than me.  Such
prohibited hedging or other 

 

 

transactions would include, without limitation, any short
sale or any purchase, sale or grant of any right (including, without
limitation, any put or call option) with respect to any of the Subject Shares
or with respect to any security that includes, relates to, or derives any significant
part of its value from the Subject Shares.

 

Notwithstanding the
foregoing, subject to any other restrictions to which the Stock Options or the
Subject Shares may be subject, which will not be affected by this letter, the
undersigned may transfer the Subject Shares (i) as a bona fide gift or gifts, provided that the
donee or donees thereof agree to be bound in writing by the restrictions set
forth herein, (ii) to any trust for the direct or indirect benefit of me
or my immediate family, provided that the trustee of the trust agrees to be
bound in writing by the restrictions set forth herein, and provided further
that any such transfer shall not involve a disposition for value, or (iii) by
will or intestacy to the my immediate family, provided that the transferee
agrees to be bound in writing by the restrictions set forth herein.  For purposes of this Resale Restriction
Agreement (this “Agreement”), “immediate family” shall mean spouse,
domestic partner, lineal descendant, father, mother, brother or sister of the
transferor.  I now have and, except as
contemplated by clause (i), (ii), or (iii) above, for the duration of this
Agreement will have, good and marketable title to the Stock Options and the
Subject Shares, free and clear of all liens, encumbrances, and claims
whatsoever.  I also agree and consent to
the entry of stop transfer instructions with the Company and its transfer agent
and registrar against the transfer of the Subject Shares, except in compliance
with the foregoing restrictions.  In furtherance
of the foregoing, the Company is hereby authorized to decline to make or
authorize any transfer of securities if such transfer would constitute a
violation or breach of this Agreement.

 

Lapse of Resale Restriction.

 

The Resale
Restriction shall lapse on 25% of the total number of shares subject to the
option agreement commencing on the one-year anniversary of the Acceleration
Effective Date and thereafter, the remaining subject shares in equal monthly
installments, at a rate of 1/36th of the Subject Shares until fully
vested.

 

All provisions of the Stock
Option agreements and of the plan relevant to the Stock Options (marked below)
shall continue in full force and are hereby incorporated into this Agreement by
reference except that all references to the right to exercise the Stock Options
with respect to the Subject Shares meaning the number of Subject Shares for
which the Resale Restriction has lapsed.

 

x 2004 Director and Employee Stock
Option Plan

 

x Amended and Restated 2005 Equity
Incentive Plan

 

I understand that the
Company and its Board of Directors is relying upon this Agreement in proceeding
with the Acceleration.  I represent and
warrant that I have full power and authority to enter into this Agreement.  I further understand and agree that this
Agreement is irrevocable and agree that the provisions of this Agreement shall
be binding also upon my successors, assigns, heirs and legal representatives.

 

 

I understand that, if the
Board of Directors elects not to authorize the Acceleration, or the
Acceleration does not occur for any other reason, each of the Company and I
shall be released from all obligations under this Agreement.  Except as expressly set forth herein, nothing
contained in this Agreement is intended to nor shall it be construed as any
amendment or waiver, expressed or implied, of any other agreement or
understanding between the Company and me. 
Nothing herein shall be construed as an agreement or commitment by the
Company to continue my employment.

 

This Agreement shall be governed
by and construed in accordance with the laws of the State of California.

 

Yours very truly,

 

	
   

  	
   

  
	
  Signature

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