Document:

Exhibit 10.28

    EXHIBIT
      10.28

    AMENDED
      AND RESTATED

    TEMECULA
      VALLEY BANK

    SPLIT
      DOLLAR AGREEMENT

    

    THIS
      AGREEMENT is adopted this 29th
      day of
      December 2006, by and between TEMECULA VALLEY BANK, a commercial bank, located
      in Temecula, California (the "Company"), and THOMAS
      M. SHEPHERD
      (the
      "Executive"). This Agreement amends and restates the Split Dollar Agreement
      originally entered into on September 30, 2004, and shall append the Split Dollar
      Endorsement entered into on that date.

    

    INTRODUCTION

    

    To
      encourage the Executive to remain an employee of the Company, the Company is
      willing to divide the death proceeds of a life insurance policy on the
      Executive's life. The Company will pay life insurance premiums from its general
      assets.

    

    AGREEMENT

    

    The
      Company and the Executive agree as follows:

    

    Article
      1

    General
      Definitions

    

    The
      following terms shall have the meanings specified:

    

        1.1    “Insured”
      means
      the Executive.

    

        1.2    “Insurer”
      means
      each life insurance carrier in which there is a Split Dollar Policy Endorsement
      attached to this Agreement.

    

        1.3    “Policy”
      means
      the specific life insurance policy or policies issued by the
      Insurer.

     

        1.4    “Salary
      Continuation Agreement”
      means
      that Salary Continuation Agreement between the Company and the Executive entered
      into on even date herewith or as subsequently amended.

    

        1.5    “Change
      in Control”
      means:

    
      	
              (a)

            	
              A
                change in the ownership of the capital stock of the Company, whereby
                another corporation, person, or group acting in concert (hereinafter
                this
                Agreement shall collectively refer to any combination of these three
                [another corporation, person, or group acting in concert] as a “Person”)
                as described in Section 14(d)(2) of the Securities Exchange Act of
                1934,
                as amended (the “Exchange Act”), acquires, directly or indirectly,
                beneficial ownership (within the meaning of Rule 13d-3 promulgated
                under
                the Exchange Act) of a number of shares of capital stock of the Company
                which constitutes twenty-five percent (25%) or more of the combined
                voting
                power of the Company’s then outstanding capital stock then entitled to
                vote generally in the election of directors; or

            
	
              (b)

            	
              The
                persons who were members of the Board of Directors of the Company
                immediately prior to a tender offer, exchange offer, contested election
                or
                any combination of the foregoing, cease to constitute a majority
                of the
                Board of Directors; or

            
	
              (c)

            	
              The
                adoption by the Board of Directors of the Company of a merger,
                consolidation or reorganization plan involving the Company in which
                the
                Company is not the surviving entity, or a sale of all or substantially
                all
                of the assets of the Company. For purposes of this Agreement, a sale
                of
                all or substantially all of the assets of the Company shall be deemed
                to
                occur if any Person acquires (or during the 12-month period ending
                on the
                date of the most recent acquisition by such Person, has acquired)
                gross
                assets of the Company that have an aggregate fair market value equal
                to
                twenty-five percent (25%) or more of the fair market value of all
                of the
                respective gross assets of the Company immediately prior to such
                acquisition or acquisitions; or

            
	
              (d)

            	
              A
                tender offer or exchange offer is made by any Person which results
                in such
                Person beneficially owning (within the meaning of Rule 13d-3 promulgated
                under the Exchange Act) either twenty-five percent (25%) or more
                of the
                Company’s outstanding shares of Common Stock or shares of capital stock
                having twenty-five (25%) or more the combined voting power of the
                Company’s then outstanding capital stock (other than an offer made by the
                Company), and sufficient shares are acquired under the offer to cause
                such
                person to own twenty-five (25%) or more of the voting power;
                or

            
	
              (e)

            	
              Any
                other transactions or series of related transactions occurring which
                have
                substantially the same effect as the transactions specified in any
                of the
                preceding clauses of this Section
                1.5.

            

    

     

    Notwithstanding
      the above, certain transfers are permitted within Section 318 of the Code and
      such transfers shall not be deemed a Change in Control under this Section 1.5.
      

    

    Article
      2

    Policy
      Ownership/Interests

    

        2.1    Company
      Ownership.
      The
      Company is the sole owner of the Policy and shall have the right to exercise
      all
      incidents of ownership. The Company shall be the beneficiary of the remaining
      death proceeds of the Policy after the Interest of the Executive or the
      Executive’s transferee has been paid according to Section 2.2
      below.

    

        2.2    Executive's
      Interest.
      The
      Executive shall have the right to designate the beneficiary of the death
      proceeds. The Executive shall also have the right to elect and change settlement
      options that may be permitted. Upon the termination of this Agreement pursuant
      to Article 7, the Executive, the Executive’s transferee or the Executive’s
      beneficiary shall have no rights or interests in the Policy and no death benefit
      shall be paid under this Section 2.2. 

    

            2.2.1    Death
      During Active Service.
      If the
      Executive dies while in the active service of the Company, the Executive's
      beneficiary shall receive $793,974 (Seven Hundred Ninety-three Thousand Nine
      Hundred Seventy-four Dollars).

    

            2.2.2    Death
      During Payment of a Benefit under the Salary Continuation Agreement.
If
      the
      Executive Dies after any benefit payments have commenced under Article 2 of
      the
      Salary Continuation Agreement but before receiving all such payments, the Bank
      shall cease paying the remaining Salary Continuation benefit, if any, and the
      Executive’s beneficiary shall receive a Split Dollar benefit equal to the
      remaining Accrued Liability Balance, as defined in the Salary Continuation
      Agreement.

    

            2.2.3    Death
      After Termination of Employment But Before Commencement of Payment under the
      Salary Continuation Plan. If
      the
      Executive is entitled to a benefit under Article 2 of the Salary Continuation
      Agreement, but dies prior to the commencement of said benefit payments, the
      Company shall pay no benefit under the Salary Continuation Agreement and the
      Executive's beneficiary shall receive the split dollar death benefit described
      in Section 2.2.1 of this Agreement.

    

            2.2.4    Death
      After Payment of all Benefits Under the Salary Continuation
      Agreement.
      If the
      Executive Dies after all benefit payments have been made under Article 2 of
      the
      Salary Continuation Agreement, no benefits shall be paid under this
      Agreement.

     

        2.3    Comparable
      Coverage upon Change in Control.
      Upon a
      Change in Control, the Company shall not amend, terminate or otherwise abrogate
      the Executive’s Interest in the Policy unless the Company replaces the Policy
      with a comparable insurance policy to cover the benefit provided under this
      Agreement and the Company and the Executive execute a new Split Dollar Policy
      Endorsement for said comparable insurance policy. The Policy or any comparable
      policy shall be subject to the claims of the Company’s creditors.

    

    Article
      3

    Premiums

     

        3.1    Premium
      Payment.
      The
      Company shall pay any premiums due on the Policy.

        3.2    Economic
      Benefit.
      The
      Company shall determine the economic benefit attributable to the Executive
      based
      on the amount of the current term rate for the Executive's age multiplied by
      the
      aggregate death benefit payable to the Executive's beneficiary. The "current
      term rate" is the minimum amount required to be imputed under Revenue Rulings
      64-328 and 66-110, or any subsequent applicable authority.

    

        3.3    Imputed
      Income. The
      Company shall impute the economic benefit to the Executive on an annual
      basis.

    

    Article
      4

    Assignment

    

    The
      Executive may assign without consideration all of the Executive’s interests in
      the Policy and in this Agreement to any person, entity or trust. In the event
      the Executive transfers all of the Executive’s interest in the Policy, then all
      of the Executive's interest in the Policy and in the Agreement shall be vested
      in the Executive’s transferee, who shall be substituted as a party hereunder and
      the Executive shall have no further interest in the Policy or in this
      Agreement.

    

    Article
      5

    Insurer

    

    The
      Insurer shall be bound only by the terms of the Policy. Any payments the Insurer
      makes or actions it takes in accordance with the Policy shall fully discharge
      it
      from all claims, suits and demands of all entities or persons. The Insurer
      shall
      not be bound by or be deemed to have notice of the provisions of this
      Agreement.

    

    Article 6

    Claims
      and Review Procedure

    

        6.1    Claims
      Procedure.
      Any
      person or entity who has not received benefits under the Agreement that he
      or
      she believes should be paid (the “claimant”) shall make a claim for such
      benefits as follows:

    

            6.1.1    Initiation
      - Written Claim.
      The
      claimant initiates a claim by submitting to the Company a written claim for
      the
      benefits. 

    

            6.1.2    Timing
      of Company Response.
      The
      Company shall respond to such claimant within 90 days after receiving the claim.
      If the Company determines that special circumstances require additional time
      for
      processing the claim, the Company can extend the response period by an
      additional 90 days by notifying the claimant in writing, prior to the end of
      the
      initial 90-day period that an additional period is required. The notice of
      extension must set forth the special circumstances and the date by which the
      Company expects to render its decision. 

    

            6.1.3    Notice
      of Decision.
      If the
      Company denies part or all of the claim, the Company shall notify the claimant
      in writing of such denial. The Company shall write the notification in a manner
      calculated to be understood by the claimant. The notification shall set
      forth:

    
      	
              (a)

            	
              
                The
                  specific reasons for the denial, 

              

            
	
              (b)

            	
              
                A
                  reference to the specific provisions of this Agreement on which
                  the denial
                  is based, 

              

            
	
              (c)

            	
              
                A
                  description of any additional information or material necessary
                  for the
                  claimant to perfect the claim and an explanation of why it is needed,
                  

              

            
	
              (d)

            	
              
                An
                  explanation of this Agreement’s review procedures and the time limits
                  applicable to such procedures, and 

              

            
	
              (e)

            	
              
                A
                  statement of the claimant’s right to bring a civil action under ERISA
                  Section 502(a) (29 United States Code section 1132(a)) following
                  an
                  adverse benefit determination on review.

              

            

    

     

        6.2    Review
      Procedure.
      If the
      Company denies part or all of the claim, the claimant shall have the opportunity
      for a full and fair review by the Company of the denial, as
      follows:

    

            6.2.1    Initiation
      - Written Request.
      To
      initiate the review, the claimant, within 60 days after receiving the Company’s
      notice of denial, must file with the Company a written request for review.
      

    

            6.2.2    Additional
      Submissions - Information Access.
      The
      claimant shall then have the opportunity to submit written comments, documents,
      records and other information relating to the claim. The Company shall also
      provide the claimant, upon request and free of charge, reasonable access to,
      and
      copies of, all documents, records and other information relevant (as defined
      in
      applicable ERISA regulations) to the claimant’s claim for benefits.

    

            6.2.3    Considerations
      on Review.
      In
      considering the review, the Company shall take into account all materials and
      information the claimant submits relating to the claim, without regard to
      whether such information was submitted or considered in the initial benefit
      determination. 

    

            6.2.4    Timing
      of Company Response.
      The
      Company shall respond in writing to such claimant within 60 days after receiving
      the request for review. If the Company determines that special circumstances
      require additional time for processing the claim, the Company can extend the
      response period by an additional 60 days by notifying the claimant in writing,
      prior to the end of the initial 60-day period that an additional period is
      required. The notice of extension must set forth the special circumstances
      and
      the date by which the Company expects to render its decision. 

    

            6.2.5    Notice
      of Decision.
      The
      Company shall notify the claimant in writing of its decision on review. The
      Company shall write the notification in a manner calculated to be understood
      by
      the claimant. The notification shall set forth:

    
      	
              (a)

            	
              
                The
                  specific reasons for the denial, 

              

            
	
              (b)

            	
              
                A
                  reference to the specific provisions of this Agreement on which
                  the denial
                  is based, 

              

            
	
              (c)

            	
              
                
                  A
                    statement that the claimant is entitled to receive, upon request
                    and free
                    of charge, reasonable access to, and copies of, all documents,
                    records and
                    other information relevant (as defined in applicable ERISA regulations)
                    to
                    the claimant’s claim for benefits, and

                

              

            
	
              (d)

            	
              
                
                  A
                    statement of the claimant’s right to bring a civil action under ERISA
                    Section 502(a). 

                

              

            

    

     

    Article
      7

    Amendments
      and Termination

    

        7.1    This
      Agreement may be amended or terminated only by a written agreement signed by
      the
      Company and the Executive. In the event that the Company decides to maintain
      the
      Policy after the termination of the Agreement, the Company shall be the direct
      beneficiary of the entire death proceeds of the Policy. 

    

        7.2    Notwithstanding
      any provision of this Agreement to the contrary, the Company shall not pay
      any
      benefit under this Agreement if the Company terminates the Executive's
      employment for:

    
      	
              (a)

            	
              
                
                  Willful
                    breach of duty in the course of employment or habitual neglect
                    of
                    employment responsibilities and duties;

                

              

            
	
              (b)

            	
              
                
                  Conviction
                    of any felony or crime involving moral turpitude, fraud or dishonesty;
                    

                

              

            
	
              (c)

            	
              
                
                  
                    Willful
                      violation of any state or federal banking or securities law,
                      the rules or
                      regulations of any banking agency, or any material Company
                      rule, policy or
                      resolution resulting in an adverse effect on the Company;
                      or

                  

                

              

            
	
              (d)

            	
              
                
                  Disclosure
                    to any third party by the Executive, without authority or permission,
                    of
                    any secret or confidential information of the
                    Company.

                

              

            

    

     

        7.3    Suicide
      or Misstatement.
      The
      Company shall not pay any benefit under this Agreement if the Executive commits
      suicide within three years after the date of this Agreement. In addition, the
      Company shall not pay any benefit under this Agreement if the Executive has
      made
      any material misstatement of fact on an employment application or resume
      provided to the Company, or on any application for any benefits provided by
      the
      Company to the Executive. 

    

    Article
      8

    Miscellaneous

    

        8.1    Binding
      Effect.
      This
      Agreement shall bind the Executive and the Company and their beneficiaries,
      survivors, executors, administrators and transferees, and any Policy
      beneficiary.

    

        8.2    No
      Guarantee of Employment.
      This
      Agreement is not an employment policy or contract. It does not give the
      Executive the right to remain an employee of the Company, nor does it interfere
      with the Company's right to discharge the Executive. It also does not require
      the Executive to remain an employee nor interfere with the Executive's right
      to
      terminate employment at any time.

    

        8.3    
      Applicable Law.
      The
      Agreement and all rights hereunder shall be governed by and construed according
      to the laws of the State of California, except to the extent preempted by the
      laws of the United States of America.

    

        8.4    Reorganization.
      The
      Company shall not merge or consolidate into or with another company, or
      reorganize, or sell substantially all of its assets to another company, firm
      or
      person unless such succeeding or continuing company, firm or person agrees
      to
      assume and discharge the obligations of the Company.

    

        8.5    Notice.
      Any
      notice, consent or demand required or permitted to be given under the provisions
      of this Split Dollar Agreement by one party to another shall be in writing,
      shall be signed by the party giving or making the same, and may be given either
      by delivering the same to such other party personally, or by mailing the same,
      by United States certified mail, postage prepaid, to such party, addressed
      to
      his or her last known address as shown on the records of the Company. The date
      of such mailing shall be deemed the date of such mailed notice, consent or
      demand.

    

        8.6    Entire
      Agreement. This
      Agreement constitutes the entire agreement between the Company and the Executive
      as to the subject matter hereof. No rights are granted to the Executive by
      virtue of this Agreement other than those specifically set forth
      herein.

    

        8.7    Administration.
      The
      Company shall have powers which are necessary to administer this Agreement,
      including but not limited to:

    
      	
              (a)

            	
              
                
                  
                    Interpreting
                      the provisions of this Agreement;

                  

                

              

            
	
              (b)

            	
              
                
                  
                    Establishing
                      and revising the method of accounting for this
                      Agreement;

                  

                

              

            
	
              (c)

            	
              
                
                  
                    
                      Maintaining
                        a record of benefit payments;
                        and

                    

                  

                

              

            
	
              (d)

            	
              
                
                  
                    Establishing
                      rules and prescribing any forms necessary or desirable to administer
                      this
                      Agreement.

                  

                

              

            

    

     

        8.8    Named
      Fiduciary. The
      Company shall be the named fiduciary and administrator under the Agreement.
      The
      named fiduciary may delegate to others certain aspects of the management and
      operation responsibilities of the plan including the employment of advisors
      and
      the delegation of ministerial duties to qualified individuals.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Executive and the Company consent to this Agreement on
      the
      date above written.

    

    EXECUTIVE:                                                                     COMPANY:

                                                                                TEMECULA
      VALLEY
      BANK

    
      	 	 	 	 
	By:
              /s/ Thomas M. Shepherd  	 	 	By:
              /s/ Donald A. Pitcher
	
              

            	 	 	
              

            
	
            	 	 	Executive
              Vice President and Chief
              Financial
              OfficerExhibit 10.29

    EXHIBIT
      10.29

    AMENDED
      AND RESTATED

    TEMECULA
      VALLEY BANK

    SALARY
      CONTINUATION AGREEMENT

    

    THIS
      AGREEMENT is adopted this 29th
      day of
      December 2006, by and between the TEMECULA VALLEY BANK, located in Temecula,
      California (the "Company") and DONALD
      A. PITCHER
      (the
      "Executive"), amending, restating and replacing the Amended and Restated
      Temecula Valley Bank, Salary Continuation Agreement dated September 30, 2004,
      which previously was amended and restated on January 1, 2002, and January 1,
      2000.

    

    The
      purpose of the current amendment and restatement is to bring this agreement
      into
      documentary compliance with the requirements of Section 409A of the Internal
      Revenue Code. In addition, the benefit under this Agreement is increased to
      $80,000 annually. 

    

    INTRODUCTION

    

    The
      purpose of this Agreement is to further the growth and development of the Bank
      by providing Executive with supplemental retirement income, and thereby
      encourage Executive’s productive efforts on behalf of the Bank and the Bank’s
      shareholders, and to align the interests of the Executive and those
      shareholders. 

    

    It
      is
      intended that the Agreement be "unfunded" for purposes of the Employee
      Retirement Income Security Act of 1974, as amended ("ERISA") and not be
      construed to provide income to the participant or beneficiary under the Internal
      Revenue Code of 1986, as amended (the "Code"), particularly Section 409A of
      the
      Code, prior to actual receipt of benefits.

    

    Article
      1

    Definitions

    

    Whenever
      used in this Agreement, the following words and phrases shall have the meanings
      specified:

    

        1.1    “Accrued
      Liability Balance”
shall
      mean the amount accrued by the Company to fund the future benefit expense
      associated with this Agreement, as of the end of the month preceding the
      Executive’s Separation from Service. The Company shall account for this benefit
      using Generally Accepted Accounting Principles, regulatory accounting guidance
      of the Company’s primary federal regulator, and other applicable accounting
      guidance, including APB 12 and FAS 106. Accordingly, the Company shall establish
      a liability retirement account for the Executive into which appropriate accruals
      shall be made using a discount that is reasonable, which is consistent with
      guidance issued by the Company’s primary federal regulator, and which may be
      adjusted thereafter at the Board’s discretion to comply with regulatory
      guidance. This Agreement is intended to be a “non-account balance” plan, as that
      term is used under the Code.

     

        1.2    “Change
      in Control”
      means a
      change in ownership or control of the Company as defined in Treasury Regulation
      §1.409A-3(g)(5) or any subsequently applicable Treasury Regulation.

     

        1.3    “Code”
      means
      the Internal Revenue Code of 1986, as amended.

     

        1.4    “Disability”
      means
      the Executive suffering a sickness, accident or injury which has been determined
      by the carrier of any individual or group disability insurance policy covering
      the Executive, or by the Social Security Administration, to be a disability
      rendering the Executive totally and permanently disabled. The Executive must
      submit proof to the Company of the carrier’s or Social Security Administration’s
      determination upon the request of the Company.

     

        1.5    “Early
      Termination”
      means
      the Termination of Employment before Normal Retirement Age for reasons other
      than death, Disability, Termination for Cause or following a Change in
      Control.

     

        1.6    “Early
      Termination Date”
means
      the month, day and year in which Early Termination occurs.

     

        1.7    “Effective
      Date”
      means
      January 1, 2005.

     

        1.8    “Normal
      Retirement Age”
means
      the Executive’s 65th birthday.

     

        1.9    “Normal
      Retirement Date”
means
      the later of the Normal Retirement Age or Termination of
      Employment.

     

        1.10    “Plan
      Year”
      means a
      twelve-month period commencing on January 1 and ending on December 31 of each
      year. The initial Plan Year shall commence on the effective date of this
      Agreement.

     

        1.11    “Separation
      from Service”
      shall
      mean that the Executive has experienced a Termination of Employment from the
      Company. Where the Executive continues to perform services for the Company
      following a Termination of Employment, however, and the facts and circumstances
      indicate that such services are intended by the Company and the Executive to
      be
      more than “insignificant” services, a Separation from Service will not be deemed
      to have occurred and any amounts deferred under this Agreement may not be paid
      or made available to the Executive. The determination of whether such services
      are considered “insignificant” will be based upon all facts and circumstances
      relating to the termination and upon any applicable rules and regulations issued
      under Section 409A of the Code. Military leave, sick leave, or other bona fide
      leaves of absence are not generally considered terminations of employment.
      

     

        1.12    “Termination
      for Cause”
      See
      Section 5.1.

     

        1.13    “Termination
      of Employment”
      means
      that the Executive ceases to be employed by the Company for any reason
      whatsoever other than by reason of a leave of absence, which is approved by
      the
      Company. For purposes of this Agreement, if there is a dispute over the
      employment status of the Executive or the date of the Executive’s Termination of
      Employment, the Company shall have the sole and absolute right to determine
      the
      termination date.

     

    Article
      2

    Lifetime
      Benefits

    

        2.1    Normal
      Retirement Benefit.
      Upon
      Termination of Employment on the Normal Retirement Date for reasons other than
      death, the Company shall pay to the Executive the benefit described in this
      Section 2.1 in lieu of any other benefit under this Agreement. 

            

            2.1.1     Amount
      of Benefit.
      The
      annual benefit under this Section 2.1 is $80,000 (Eighty Thousand Dollars).
      The
      Board of Directors may in its sole and absolute discretion may unilaterally
      increase the annual benefit amount at the end of each Plan Year from the date
      of
      this Agreement to the Executive’s Normal Retirement Date. 

    

            2.1.2    Payment
      of Benefit.
      The
      Company shall pay the annual benefit to the Executive in 12 equal monthly
      installments payable on the first day of each month commencing with the month
      following the Executive’s Separation from Service. The Company shall pay this
      annual benefit to the Executive for 15 years.

    

            2.1.3    Benefit
      Increases.
      Commencing on the first anniversary of the first benefit payment, and continuing
      on each subsequent anniversary, the Company's Board of Directors, in its sole
      discretion, may increase the benefit. 

     

        2.2    Early
      Termination Benefit.
      Upon
      Early Termination, the Company shall pay to the Executive the benefit described
      in this Section 2.2 in lieu of any other benefit under this
      Agreement.

    

            2.2.1    Amount
      of Benefit.
      The
      benefit under this Section 2.2 is the Accrued Liability Balance for the Plan
      Year ending immediately prior to the Early Termination Date, except, however,
      the Executive shall not be entitled to any benefit if he voluntarily terminates
      his employment prior to the end of the fifth Plan Year. 

    

            2.2.2    Payment
      of Benefit.
      The
      Bank shall distribute the annual benefit to the Executive in a lump sum within
      60 days following a Separation from Service. 

    

        2.3    Disability
      Benefit.
      If the
      Executive terminates employment due to Disability prior to Normal Retirement
      Age, the Company shall pay to the Executive the benefit described in this
      Section 2.3 in lieu of any other benefit under this Agreement.

    

            2.3.1    Amount
      of Benefit.
      The
      benefit under this Section 2.3 is the Accrued Liability Balance for the Plan
      Year ending immediately prior to the date in which the Termination of Employment
      occurs. 

    

            2.3.2    Payment
      of Benefit.
      The Bank
      shall distribute the annual benefit to the Executive in a lump sum within 60
      days following a Separation from Service.

    

        2.4    Change
      in Control Benefit.
      Upon a
      Change in Control, the Company shall pay to the Executive the benefit described
      in this Section 2.4 in lieu of any other benefit under this Agreement.

    

            2.4.1    Amount
      of Benefit.
      The
      benefit under this Section 2.4 is the Normal Retirement Benefit described in
      Section 2.1, calculated as if Executive had remained in the active service
      of
      the Company until Normal Retirement Age. 

    

            2.4.2    Payment
      of Benefit.
      The
      company shall pay the benefit to the Executive in a lump sum within 60 days
      of a
      Change in Control.

    

            2.4.3     How
      Change in Control Benefit Determined.
      In
      determining the Change in Control benefit under this Section 2.4, Executive
      shall receive a lump sum payment which is calculated to be the present value
      of
      the Normal Retirement Benefit based upon 15 years of monthly installment
      payments, which are to be calculated commencing with Executive’s Normal
      Retirement Age and ending 15 years later. 

    

        2.5    Restriction
      on Timing of Distribution. Notwithstanding
      any provision of this Agreement to the contrary, distributions to Executive
      may
      not commence earlier than six (6) months after the date of a Separation
      from Service (as described under the “Separation from Service” provision
      herein) if, pursuant to Internal Revenue Code Section 409A, Executive is
      considered a “specified employee” under Internal Revenue Code Section
      416(i). In the event a distribution is delayed pursuant to this Section 2.6,
      the
      originally scheduled distribution shall be delayed for 6 months, and shall
      commence instead on the first day of the seventh month following Separation
      from
      Service. If payments are scheduled to be made in installments, the first six
      months of installment payments shall be delayed, aggregated, and paid instead
      on
      the first day of the seventh month, after which all installment payments shall
      be made on their regular schedule. If payment is scheduled to be made in a
      lump
      sum, the lump sum payment shall be delayed for six months and instead be made
      on
      the first day of the seventh month.

    

        2.6    Payments
      Upon Income Inclusion.
      Should
      amounts deferred under this Agreement become includable in the Executive’s
      income by reason of a failure of this Agreement to comply with the requirements
      of Section 409A of the Code, the Company shall distribute to the Executive
      an
      amount necessary to cover the includable amounts, as well as other amounts
      necessary to cover FICA, employment, and income taxes, to the extent such
      distributions do not exceed the Executive’s vested account
      balances.

    

    Article
      3

    Death
      Benefits

    

    The
      Company shall not pay a death benefit under this Agreement. A death benefit
      may
      be provided according to the terms of a separate Split Dollar Agreement entered
      into by the Company and the Executive.

    

    Article
      4

    Beneficiaries

    

    Executive’s
      beneficiary shall not have the right to any benefit payments under this
      Agreement. 

    Article
      5

    General
      Limitations

    

        5.1    Termination
      for Cause.
      Notwithstanding any provision of this Agreement to the contrary, the Company
      shall not pay any benefit under this Agreement if the Company terminates the
      Executive's employment for:

    
      	
              (a)

            	
              any
                act of embezzlement, fraud, breach of fiduciary duty or
                dishonesty;

            
	
              (b)

            	
              deliberate
                or repeated disregard of the policies and rules of Company as adopted
                by
                Company’s Board of Directors;

            
	
              (c)

            	
              unauthorized
                use or disclosure of any of the trade secrets or confidential information
                of Company;

            
	
              (d)

            	
              competition
                with Company, inducement of any customer of the Company to breach
                a
                contract with the Company, or inducement of any principal for whom
                the
                Company acts as agent to terminate such agency
                relationship;

            
	
              (e)

            	
              gross
                negligence adversely impacting the Company; or 

            
	
              (f)

            	
              willful
                breach of this Agreement or any other willful misconduct.
                

            

    

    
    5.2    Competition
      After Termination of Employment.
      No
      benefits shall be payable if the Executive, without the prior written consent
      of
      the Company, engages in, becomes interested in, directly or indirectly, as
      a
      sole proprietor, as a partner in a partnership, or as a substantial shareholder
      in a corporation, or becomes associated with, in the capacity of employee,
      director, officer, principal, agent, trustee or in any other capacity
      whatsoever, any enterprise conducted in the trading area (a 50 mile radius)
      of
      the business of the Company within 2 years of Termination of Employment, which
      enterprise is, or may deemed to be, competitive with any business carried on
      by
      the Company as of the date of termination of the Executive’s employment or his
      retirement. This section shall not apply following a Change in Control.

    

    5.3 Suicide
      or Misstatement.
      No
      benefits shall be payable if the Executive commits suicide within two years
      after the date of this Agreement, or if the Executive has made any material
      misstatement of fact on any application for life insurance purchased by the
      Company. 

    

    Article
      6

    Claims
      and Review Procedures

    

        6.1    Claims
      Procedure.
      Any
      person or entity who has not received benefits under the Plan that he or she
      believes should be paid (“claimant”) shall make a claim for such benefits as
      follows:

    

            6.1.1    Initiation
      - Written Claim.
      The
      claimant initiates a claim by submitting to the Company a written claim for
      the
      benefits. 

    

            6.1.2    Timing
      of Company Response.
      The
      Company shall respond to such claimant within 90 days after receiving the claim.
      If the Company determines that special circumstances require additional time
      for
      processing the claim, the Company can extend the response period by an
      additional 90 days by notifying the claimant in writing, prior to the end of
      the
      initial 90-day period, that an additional period is required. The notice of
      extension must set forth the special circumstances and the date by which the
      Company expects to render its decision. 

    

            6.1.3    Notice
      of Decision.
      If the
      Company denies part or all of the claim, the Company shall notify the claimant
      in writing of such denial. The Company shall write the notification in a manner
      calculated to be understood by the claimant. The notification shall set
      forth:

    
      	
              (a)

            	
              
                The
                  specific reasons for the denial, 

              

            
	
              (b)

            	
              
                A
                  reference to the specific provisions of the Plan on which the denial
                  is
                  based, 

              

            
	
              (c)

            	
              
                A
                  description of any additional information or material necessary
                  for the
                  claimant to perfect the claim and an explanation of why it is needed,
                  

              

            
	
              (d)

            	
              
                An
                  explanation of the Plan’s review procedures and the time limits applicable
                  to such procedures, and 

              

            
	
              (e)

            	
              gross
                negligence adversely impacting the Company; or 

            
	
              (f)

            	
              
                A
                  statement of the claimant’s right to bring a civil action under ERISA
                  Section 502(a) following an adverse benefit determination on review.
                  

              

            

    

    
    6.2    Review
      Procedure.
      If the
      Company denies part or all of the claim, the claimant shall have the opportunity
      for a full and fair review by the Company of the denial, as
      follows:

    

            6.2.1    Initiation
      - Written Request.
      To
      initiate the review, the claimant, within 60 days after receiving the Company’s
      notice of denial, must file with the Company a written request for review.
      

    

            6.2.2    Additional
      Submissions - Information Access.
      The
      claimant shall then have the opportunity to submit written comments, documents,
      records and other information relating to the claim. The Company shall also
      provide the claimant, upon request and free of charge, reasonable access to,
      and
      copies of, all documents, records and other information relevant (as defined
      in
      applicable ERISA regulations) to the claimant’s claim for benefits.

    

            6.2.3    Considerations
      on Review.
      In
      considering the review, the Company shall take into account all materials and
      information the claimant submits relating to the claim, without regard to
      whether such information was submitted or considered in the initial benefit
      determination. 

    

            6.2.4    Timing
      of Company Response.
      The
      Company shall respond in writing to such claimant within 60 days after receiving
      the request for review. If the Company determines that special circumstances
      require additional time for processing the claim, the Company can extend the
      response period by an additional 60 days by notifying the claimant in writing,
      prior to the end of the initial 60-day period, that an additional period is
      required. The notice of extension must set forth the special circumstances
      and
      the date by which the Company expects to render its decision. 

    

            6.2.5    Notice
      of Decision.
      The
      Company shall notify the claimant in writing of its decision on review. The
      Company shall write the notification in a manner calculated to be understood
      by
      the claimant. The notification shall set forth:

    
      	
              (a)

            	
              
                
                  The
                    specific reasons for the denial, 

                

              

            
	
              (b)

            	
              
                
                  A
                    reference to the specific provisions of the Plan on which the
                    denial is
                    based, 

                

              

            
	
              (c)

            	
              
                
                  A
                    statement that the claimant is entitled to receive, upon request
                    and free
                    of charge, reasonable access to, and copies of, all documents,
                    records and
                    other information relevant (as defined in applicable ERISA regulations)
                    to
                    the claimant’s claim for benefits, and

                

              

            
	
              (d)

            	
              
                
                  A
                    statement of the claimant’s right to bring a civil action under ERISA
                    Section 502(a). 

                

              

            

    

    
Article
      7

    Amendments
      and Termination

    

        7.1    This
      Agreement may be amended or terminated only by a written agreement signed by
      the
      Company and the Executive.

    

        7.2    Plan
      Terminations under Section 409A.
      Notwithstanding anything to the contrary in this Agreement, the Company may
      make
      distributions under certain circumstances following Plan termination under
      this
      Section 7.3. Any such distribution shall be made according to the rules set
      forth in the regulations promulgated under Section 409A of the Code, and shall
      conform to the following requirements:

    
      	
              (a)

            	
              
                
                  
                    Within
                      30 days before, or 12 months after a Change in
                      Control

                  

                

              

            
	
              (b)

            	
              
                
                  
                    Upon
                      the Company’s dissolution or with the approval of a bankruptcy court;
                      or

                  

                

              

            
	
              (c)

            	
              
                
                  
                    Upon
                      the Company’s termination of this and all similar plans with respect to
                      all participants, provided (1) that all distributions are made
                      no earlier
                      than 12 months and no later than 24 months following such termination;
                      (2)
                      the Company does not adopt any new similar plans for a minimum
                      of 5 years
                      following the date of such termination; and (3) no payments,
                      other than
                      those payments that would otherwise have been payable under
                      the terms of
                      the arrangement if the termination had not occurred, are made
                      pursuant to
                      this provision.

                  

                

              

            

    

    
Article
      8

    Miscellaneous

    

        8.1    Binding
      Effect.
      This
      Agreement shall bind the Executive and the Company, and their beneficiaries,
      survivors, executors, successors, administrators and transferees.

    

        8.2    No
      Guarantee of Employment.
      This
      Agreement is not an employment policy or contract. It does not give the
      Executive the right to remain an employee of the Company, nor does it interfere
      with the Company's right to discharge the Executive. It also does not require
      the Executive to remain an employee nor interfere with the Executive's right
      to
      terminate employment at any time.

    

        8.3    Non-Transferability.
      Benefits under this Agreement cannot be sold, transferred, assigned, pledged,
      attached or encumbered in any manner.

    

        8.4    Tax
      Withholding.
      The
      Company shall withhold any taxes that are required to be withheld from the
      benefits provided under this Agreement, including any taxes withheld pursuant
      to
      Section 409A of the Code.

    

        8.5    Applicable
      Law.
      The
      Agreement and all rights hereunder shall be governed by the laws of the State
      of
      California, except to the extent preempted by the laws of the United States
      of
      America.

    

        8.6    Unfunded
      Arrangement.
      The
      Executive and beneficiary are general unsecured creditors of the Company for
      the
      payment of benefits under this Agreement. The benefits represent the mere
      promise by the Company to pay such benefits. The rights to benefits are not
      subject in any manner to anticipation, alienation, sale, transfer, assignment,
      pledge, encumbrance, attachment, or garnishment by creditors. Any insurance
      on
      the Executive's life is a general asset of the Company to which the Executive
      and beneficiary have no preferred or secured claim.

    

        8.7    Entire
      Agreement. This
      Agreement constitutes the entire agreement between the Company and the Executive
      as to the subject matter hereof. No rights are granted to the Executive by
      virtue of this Agreement other than those specifically set forth
      herein.

    

        8.8    Administration.
      The
      Company shall have powers which are necessary to administer this Agreement,
      including but not limited to:

    
      	
              (a)

            	
              
                
                  
                    
                      Interpreting
                        the provisions of the
                        Agreement;

                    

                  

                

              

            
	
              (b)

            	
              
                
                  
                    
                      Establishing
                        and revising the method of accounting for the
                        Agreement;

                    

                  

                

              

            
	
              (c)

            	
              
                
                  
                    
                      Maintaining
                        a record of benefit payments;
                        and

                    

                  

                

              

            
	
              (d)

            	
              Establishing
                rules and prescribing any forms necessary or desirable to administer
                the
                Agreement.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Executive and a duly authorized Company officer consent
      to
      this Agreement.

    

    EXECUTIVE:                                                                    COMPANY:

    

                                                                                TEMECULA
      VALLEY
      BANK

    
      	 	 	 	 
	By:/s/ Donald
              A. Pitcher  	 	 	By:/s/ Stephen
              H. Wacknitz
	
              

            	 	 	
              

            
	
            	 	 	
              Chief
                Executive Officer and President

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