Document:

Exhibit
10.15

EMPLOYMENT
AGREEMENT

This Employment Agreement (this “Agreement”) is
made and entered into as of this       day of
December 2005 (the “Effective Date”) by and between A. Vincent
Siciliano (“Executive”) and 1st Pacific Bank of California, a California
state-chartered bank (the “Bank”), with regard to the following:

A.            Executive has served as the
President and Chief Executive Officer of the Bank under an Employment Agreement
between Executive and the Bank dated January 1, 2005 (the “Former Employment
Agreement”), which the parties desire to terminate as of the Effective Date
without further liability of the Bank or Executive thereunder of any kind.

B.            Executive and the Bank have agreed
that Executive shall continue to serve as the President and Chief Executive
Officer and a full-time employee of the Bank under the terms of this Agreement,
and as such is expected to make a major contribution to the profitability,
growth and financial strength of the Bank.

C.            The Bank considers the availability
of Executive’s services, managerial skills and business experience to be in the
best interests of the Bank and the shareholders of the Bank and desires to
assure the continued services of Executive on behalf of the Bank.

D.            Executive is willing to be employed by
the Bank upon the understanding that the Bank will provide him with income
security and benefits if his employment with the Bank is terminated, upon
certain terms and conditions.

NOW, THEREFORE, for valuable consideration the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

1.             Definitions.

“Automobile” shall have the meaning set forth in
Paragraph 3.5.

“Bank” means 1st Pacific Bank of California, a California
state-chartered bank, its successors and permitted assigns.

“Bank Board” means the Board of Directors of the Bank.

“Beneficiary” means the person or entity to receive rights or
benefits under this Agreement, as set forth in this Agreement, in the event of
the death of Executive.  Unless otherwise
specified in a written notice to the Bank, the Beneficiary shall be the spouse
of Executive, if any, and if there is none, the estate of Executive (including
any trust created by the terms of Executive’s will) or, if Executive provides
the Bank with written notice thereof prior to his death, any trust as to which
Executive was a settlor with a power of revocation.

“Benefits” means the types and amounts of benefits provided
under Paragraph 3.7, provided that if at the date of reference the terms
of any Bank insurance plan prohibit the continuance or recommencement of
insurance benefits that Executive formerly held, the Bank shall be obligated to
pay to Executive in cash on a monthly basis an amount equal to the Bank’s

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former premium payments (pro rated on a monthly basis)
for the benefit of Executive under such plan, except that if Executive is
entitled to COBRA health insurance benefits the amount shall be increased to
the amount payable by Executive for such benefits if higher than the Bank’s
former premium payments.

“Change of Control” means the occurrence of any of the following
events:

(i)            any
“person” (as used in Section 13(d) of the Securities Exchange Act of
1934 and the rules promulgated thereunder) becomes the “beneficial owner” (as
defined in Rule  13d-3) of securities
representing a majority of the voting power of the then outstanding securities
of the Bank; or

(ii)           a
sale of assets involving all or substantially all of the assets of the Bank, or
a merger or consolidation of the Bank in which the holders of securities of the
Bank immediately prior to such event hold in the aggregate less than a majority
of the securities of the Bank or any other surviving or resulting entity
immediately after such event.

Notwithstanding the
foregoing, a Change in Control shall not be deemed to have occurred in the
event the Bank forms a holding company as a result of which the holders of the
Bank’s outstanding voting securities immediately prior to the transaction hold,
in approximately the same relative proportions as they held prior to the
transaction, substantially all of the outstanding voting securities of a
holding company owning all of the Bank’s outstanding voting securities after
the completion of the transaction.

“Change of Control Severance Benefits” means (i) an amount
equal to the sum of (y) two (2) times Executive’s base annual salary
at the rate then in effect in accordance with Paragraph 3.1, plus
(z) the amount actually paid by the Bank to Executive under the Plan for
the immediately preceding year; and (ii) continuation of benefits provided
under Paragraph 3.7 or substitute equivalent benefits in the event that
the particular benefits (for instance, insurance coverage) are not carried by
the Bank under its programs following the Change of Control Termination, for a
period of twelve (12) months.

“Change of Control Termination” means the termination of
employment of Executive within twelve (12) months after a Change of Control
(i) by the Bank under Paragraph 4.1.5; or (ii) by Executive
under Paragraph 4.2 for Good Cause.

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

“Disability” shall be deemed to occur on the date the Executive
is, by reason of any medically determinable physical or mental impairment that
can be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering
employees of the Bank.

“Executive” means A. Vincent Siciliano.

“Expiration Date” means December 31, 2007.

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“Good Cause” means: 
(i) a reduction in Executive’s base salary below the rate then in
effect in accordance with Paragraph 3.1; (ii) the Bank requiring that
Executive be based at a location more than fifty (50) miles from the Bank’s
headquarters as of the Effective Date (excluding travel for Bank business and
other temporary relocations of no more than thirty (30) days individually);
(iii) a reduction in his title; or (iv) the continuation after a
Change of Control, or imposition within six (6) months after a Change of
Control, of a material reduction in the duties or authority of Executive so
that he is no longer performing substantially all of the duties of a president
and chief executive officer of a community bank.

“Plan” means the 1st Pacific Bank of California Incentive
Compensation Plan for Senior Management, in substantially the form attached
hereto as Exhibit A.

“Separation and Consulting Agreement” means the Separation and
Consulting Agreement and General Release of Claims, substantially in the form
attached hereto as Exhibit B.

“Trade secrets and other proprietary and confidential information”
means and consist of, for example, and not intending to be inclusive,
information concerning any matters relating to the business of the Bank, any of
its customers, governmental relations, customer contacts, underwriting
methodology, loan program configuration and qualification strategies, marketing
strategies and proposals, or any other information concerning the business of
the Bank, its subsidiaries and affiliates, and the Bank’s good will; provided
that “Trade secrets and other proprietary and confidential information” shall
not be deemed to include information that is or becomes, through no fault of
Executive, in the public domain.

2.             Rights and Duties of Executive.

2.1           Employment.  The Bank hereby employs Executive as its
President and Chief Executive Officer, and Executive accepts the duties
described herein, and agrees to discharge the same faithfully and to the best of
his ability.  Executive shall perform
such other duties as shall be from time to time prescribed by the Bank
Board.  Executive shall devote his full
business time and attention to the business and affairs of the Bank.

2.2           Termination of Former Employment
Agreement.  As of the Effective Date,
the Former Employment Agreement, and all of its exhibits, shall terminate
without further liability of the Bank or Executive thereunder of any kind.

2.3           At-Will Employment.  Executive’s employment with the Bank is not
for a fixed period of time and can be terminated at the will of either
Executive or the Bank at any time, with or without notice, and with or without
cause.  There are no agreements between
Executive and the Bank contrary to Executive’s at-will status.  Neither a Bank Board member nor a manager,
supervisor, employee or agent of the Bank is authorized to alter Executive’s
at-will status, except for the Chairperson of the Bank Board, and then only in
a writing signed both by the Chairperson of the Bank Board and Executive
following adoption of a resolution by the Bank Board authorizing the specific
change reflected in such writing and authorizing the Chairperson of the Bank
Board to sign such writing.  Executive
should neither assume nor imply any promise of employment for any specified
period of time except through such a signed writing.  This

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Agreement shall terminate immediately without further
liability or obligation to Executive if (i) the Bank is closed by any
supervisory authority, or (ii) any supervisory authority demands, by
proposed consent agreement or by a Prompt Corrective Action Directive, or
pursuant to cease and desist powers, the removal of Executive from his position
as the President or Chief Executive Officer of the Bank.  Should Executive remain employed under this
Agreement through the Expiration Date, Executive’s employment with the Bank
shall automatically terminate on that date and this Agreement shall be of no
force or effect on or after that date, subject to Paragraphs 5.4 and 8.6.

2.4           Outside Activities.  Executive shall not have other employment,
consulting, charitable or independent contractor work that materially
interferes with the fulfillment of Executive’s duties to the Bank.  Executive shall not undertake expanded
commitments to business or charitable activities or engage in new such
activities before consulting with the Chairperson of the Bank or the
Chairperson of the Personnel Committee of the Bank Board.  Executive will not provide services to, hold
or make any investment in or loan to, or participate in the management or
business of, any bank, savings and loan, credit union, thrift and loan,
industrial loan or other entity engaged in the business of making loans or
accepting deposits or both; provided that Executive may own less than 5% of the
voting stock of any company that files reports under the Securities Exchange
Act of 1934.

3.             Compensation and Benefits.  In consideration for the services to be
rendered by Executive to the Bank, the Bank agrees to provide Executive with
the following compensation and benefits:

3.1           Salary.  The Bank shall pay Executive a minimum annual
salary at the rate of Two Hundred Thousand Dollars ($200,000) for the period
from the date hereof to December 31, 2005, increasing to Two Hundred Ten
Thousand Dollars ($210,000) for the period of January 1, 2006 to
December 31, 2006 and increasing to Two Hundred Thirty One Thousand
($231,000) from January 1, 2007 through the Expiration Date, due and
payable biweekly, or otherwise in accordance with the Bank’s policy for the
scheduling of salary payments to employees as in effect from time to time.  Other salary increases, if any, shall only be
as approved by the Bank Board in its sole discretion.

3.2           Intentionally Omitted.

3.3           Withholding and Deductions.  The Bank shall withhold and/or deduct from
any and all salary or other payments to Executive, all taxes which may be
required to be deducted or withheld under any provision of law (including, but
not limited to, social security payments and income tax withholding) now in
effect or which may become effective any time during Executive’s employment
with the Bank.

3.4           Executive Incentive Compensation.  In general, the Bank believes that superior
performance of Executive should be rewarded and encouraged by incentive
compensation.  the Bank Board shall adopt
the Plan pursuant to which Executive may be entitled to incentive compensation
provided that the performance goals of the Bank as set forth in the Plan are
achieved and the terms and conditions of the Plan are satisfied.  In addition, Executive shall be entitled to
other incentive compensation and bonuses as the Bank Board may determine

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in its sole discretion.  Notwithstanding the foregoing, Executive
shall not participate in the Bank’s Team Share Plan.

3.5           Automobile.  The Bank shall provide Executive with the use
of an automobile to be owned or leased by the Bank, mutually agreeable to the
Bank and Executive (the “Automobile”). 
All loan and lease payments and operating costs of the Automobile shall
be borne by the Bank.  Executive agrees
to maintain and provide the Bank with adequate records of expenses incurred in
the operation and maintenance of the Automobile and the extent of the business
use of the Automobile.  Within ten (10)
business days after the Bank’s obligation to provide the Automobile ceases,
except in the event the Automobile is required to be transferred to Executive
under one of Paragraphs 5.2.1(c), 5.3.1, 5.4.1 or 5.4.2, the Automobile
shall be returned to the Bank, or, at Executive’s option, the Bank shall
transfer the Automobile to Executive in exchange for Executive’s pay-off of any
lease or loan (including early lease termination charges, taxes and other costs
related to such pay-off), or payment to the Bank of the unamortized value of
the Bank’s investment in the Automobile, if any, whichever is lower.

3.6           Expense Reimbursement.  The Bank agrees to reimburse Executive for
all ordinary and necessary expenses incurred by Executive on behalf of the Bank
in accordance with the Bank’s policies and procedures as in effect from time to
time, including entertainment, meal and travel expenses.

3.7           Insurance.  The Bank shall provide life insurance with a
life insurance benefit equal to at least one and one-half times the annual
salary of Executive at the rate then in effect under Paragraph 3.1, which
shall be provided through any group life insurance plan of the Bank at the Bank’s
option.  The Bank shall provide to
Executive the long term disability insurance provided by the Bank to employees
at the Effective Date under the Bank’s group plan or shall replace it with
similar coverage so long as Executive is employed by the Bank.  Executive shall be entitled to participate in
such other insurance benefits as are generally provided to the employees of the
Bank from time to time.

3.8           Vacation.  Executive shall be entitled to five weeks of
vacation time and pay per annum, which shall be scheduled in Executive’s
discretion, subject to and taking into account applicable banking laws and
regulations.  Unused vacation may be
accrued up to a maximum of six weeks of unused vacation in addition to the
vacation to which Executive may be entitled in the current year, and thereafter
Executive shall cease to accrue unused vacation until used.

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4.          Termination.

4.1           Employer Right to Terminate
Employment.  Nothing in this
Agreement shall adversely affect the right of the Bank Board to terminate
Executive.  The Bank Board has the right
to terminate the employment of Executive with the Bank at will, with or without
cause, upon delivery of written notice to Executive (except in the case of
death of Executive, in which event termination shall automatically occur at the
date of death), and including, but not limited to, for any of the following
grounds:

4.1.1        Willful breach or habitual neglect or
inability (except where such inability is due to Disability or death) to
perform Executive’s duties hereunder, including without limitation failure to
cooperate with the Bank Board in the structuring, documentation or negotiation
of a transaction that might result in a Change of Control;

4.1.2        Malfeasance or misfeasance in the
performance of Executive’s duties hereunder, imposition of a regulatory order
to remove Executive, failure to comply with a direction by the Chairperson of
the Bank Board, material breach of Bank policy or procedure, or breach of this
Agreement;

4.1.3        Immoral or illegal conduct, conviction
of a felony, conviction of a misdemeanor involving moral turpitude;

4.1.4        Disability or death;

4.1.5        Determination in the complete discretion
of the Bank Board that the employment of Executive should be terminated prior
to the Expiration Date, without reference to the grounds set forth in
Paragraphs 4.1.1, 4.1.2, 4.1.3 or 4.1.4, and specification of the
termination date in the notice described in Paragraph 4.1.

4.2           Termination by Executive.  Executive may terminate his employment with
the Bank at will, for any reason, and without advance notice.  However, as a courtesy, Executive is
requested to deliver written notice to the Bank three (3) months in
advance of the date such termination is to take effect, except with respect to
a termination for Good Cause.  Executive
may terminate his employment with the Bank prior to the Expiration Date for Good
Cause upon thirty (30) days notice to the Bank and the Bank’s failure to cure
within that time.  To be effective, such
notice must be given by Executive within fifteen (15) days of the occurrence of
the event that constitutes Good Cause, provided that if Good Cause results from
a material reduction in the duties or authority of Executive so that he is no
longer performing substantially all of the duties of a president and chief
executive officer of a community bank and such reduction occurs before a Change
of Control occurs and continues after the Change of Control occurs, Executive
shall be required to give the thirty (30) day notice described above within
fifteen (15) days of the Change of Control.

4.3           Termination Upon Expiration.  Should Executive remain employed under this
Agreement through the date five (5) months prior to the Expiration Date,
Executive shall have the right, while he is still employed, to provide written
notice to the Bank of his desire to remain employed after the Expiration Date
on or before the date four (4) months prior to the Expiration Date.  If Executive and the Bank have not entered
into an amendment of this

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Agreement extending its term or another written
agreement replacing this Agreement on or prior to the date three
(3) months prior to the Expiration Date, and Executive’s employment is not
otherwise terminated, Executive’s employment shall automatically terminate on
the Expiration Date.  If such an
extension or replacement is not entered into on or prior to three
(3) months prior to the Expiration Date, Executive shall be deemed to have
been given advance notice by the Bank that his employment with the Bank will
terminate as of the Expiration Date. 
Nothing in this Paragraph shall prejudice the at-will status of
Executive or require the Bank to negotiate with Executive.

4.4           Post-Notice Activities of
Executive.  In the event termination
is not effective immediately upon the delivery of notice of termination by the
Bank or Executive, the Bank shall have the right to require that during the
period between the giving of notice and the effective date of termination,
Executive’s activities and responsibilities be curtailed as deemed appropriate
by the Bank.  Such curtailment shall
include, without limitation, removing Executive from corporate offices,
requiring Executive to be physically absent from the Bank’s facilities, and
eliminating Executive’s access to computer systems, e-mail and telephone
systems.

4.5           Automatic Resignations.  Upon notice of termination of employment
Executive shall, automatically and without further action by any party, be
deemed to have resigned from all directorships with the Bank and any of its
subsidiaries and affiliates.  Upon
termination of employment, Executive shall, automatically and without further
action by any party, be deemed to have resigned from all offices and other
capacities with the Bank and any of its subsidiaries and affiliates.

5.             Post-Termination Payments and Benefits.  The following are the post-termination
payments and benefits to which Executive is entitled upon termination of employment
with the Bank.

5.1           Termination Resulting from Breach.  In the event the employment of Executive is
terminated under Paragraphs 4.1.1, 4.1.2 or 4.1.3, the Bank shall provide
Executive only the base salary and Benefits, if any, then-provided, on the
terms then-provided, due him through the date of termination and shall not be
obligated to provide any other compensation or Benefits.

5.2           Other Terminations.

5.2.1        Payments.  In the event the employment of Executive is
terminated under Paragraphs 4.1.4 or 4.1.5, or under Paragraph 4.2
for Good Cause, and subject to Executive first entering into the Separation and
Consulting Agreement and such agreement being fully effective, the Bank shall
provide Executive only the following:

(a)           a payment equal to eighteen (18)
months of the base salary at the rate then in effect in accordance with
Paragraph 3.1, with such payment to be made in two equal installments, the
first of which shall be paid to Executive within five (5) days following
the date the Separation and Consulting Agreement is fully effective, and the
second of which shall be paid to Executive on the year anniversary of such
date;

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(b)           his portion of incentive compensation
under the Plan, if any, to which he may be entitled if the Bank achieves the
performance requirements under the Plan for the year in which Executive’s
employment is terminated, subject to the terms and conditions of the Plan;

(c)           all right, title and interest in the
Automobile to Executive as soon as reasonably practicable following the date
the Separation and Consulting Agreement is fully effective;

(d)           a payout of all accrued by unused
vacation as of the date of termination; and

(e)           continuation of the group medical and
other insurance benefits, if any, then-provided under Paragraph 3.7, for a
period of nine (9) months from the date of termination, subject to the
limitations of and to the extent permitted by the policy or policies under
which subh benefits are provided.

5.2.2        Executive’s Right to Waive Payments.  Executive shall have the right to waive his
rights to receive such payments and Benefits otherwise due under this
Paragraph 5.2 by giving advance written notice of such waiver to the
Bank.  After receipt of such notice, the
Bank shall have no further obligation to provide any payments or Benefits under
this Paragraph 5.2.

5.3           Change of Control.

5.3.1        Payment Following Certain
Terminations Related to Change of Control. 
Subject to Executive first entering into the Separation and Consulting
Agreement and such agreement being fully effective, in respect of any Change of
Control Termination the Bank shall pay to Executive the Change of Control
Severance Benefits in a lump sum (except for the benefits under
Paragraph 3.7, which shall be continued) within five (5) days following
the date the Separation and Consulting Agreement is fully effective, and take
such actions as may be necessary to transfer and assign all right, title and
interest in the Automobile to Executive as soon as reasonably practicable
following the date the Separation and Consulting Agreement is fully effective.

5.3.2        Executive’s Right to Waive Payments.  Executive shall have the right to waive his
rights to receive payments and Benefits otherwise due under this
Paragraph 5.3 by giving advance written notice of such waiver to the
Bank.  After receipt of such notice, the
Bank shall have no further obligation to provide any payments or Benefits under
this Paragraph 5.3.

5.3.3        Adjustments in Payments.  The terms of this Paragraph 5.3.3
override and control any and all other terms of this Agreement to the extent
inconsistent with this Paragraph 5.3.3. 
This Paragraph 5.3.3 shall apply to the extent that the aggregate
present value of any or all payments and benefits in the nature of compensation
to (or for the benefit of) Executive provided under this Agreement or otherwise
provided to Executive by or on behalf of the Bank or any affiliate, parent or
controlling entity of the Bank, constitute a “parachute payment” under the
provisions of Section 280G of the Code, and the regulations thereunder
(the 

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“Total Payments”).  In the event that the Total Payments would
exceed an amount equal to 299% of Executive’s “base amount” as that term is
defined in Section 280G of the Code, as determined by the independent
public accountants for the Bank (the “Accountants”), prior to the first
relevant payment under this Agreement, the Bank shall inform Executive of this
determination and payment shall be delayed for a period of no longer than 30
days.  During that 30 days, the Accountants,
legal counsel to the Bank, Executive and Executive’s tax advisors shall review
the tax impact to Executive of all of the payments and benefits included in the
calculation of the “parachute payment” and Bank shall pay to Executive under
this Agreement whichever of the following in the Bank’s judgment would provide
Executive with the higher after-tax compensation, after taking into account all
applicable state and federal taxes (computed at the highest marginal rate)
including Executive’s share of F.I.C.A. and Medicare taxes and any taxes
payable pursuant to Section 4999 of the Code:

(a)           A reduced payment under this
Agreement (or a reduction in other payments or benefits included in the Total
Payments to the extent agreed by Executive and legally and contractually
permissible) such that the Total Payments are no more than 299% of the “base
amount”; or

(b)           The payment required under this
Agreement.

5.4           Termination at Expiration Date.  If
Executive’s employment is terminated as a result of expiration of this Agreement
at the Expiration Date, the Bank shall provide Executive only the following:

5.4.1        if within ten (10) business days
following the Expiration Date, Executive first enters into the Separation and
Consulting Agreement and that agreement is fully effective, the Bank shall pay
Executive his base monthly salary at the rate in effect at the Expiration Date
under Paragraph 3.1 for a period of six (6) months from the date the
Separation and Consulting Agreement is fully effective, with the first payment
to be paid one month after such date, or at the option of the Bank a lump sum
payment of such amount, and take such actions as may be necessary to transfer
and assign all right, title and interest in the Automobile to Executive as soon
as reasonably practicable following the date the Separation and Consulting
Agreement is fully effective.

5.4.2        if within ten (10) business days
following the Expiration Date, Executive does not enter into the Separation and
Consulting Agreement and that agreement is not fully effective, the Bank has
the option to pay Executive his base monthly salary at the rate in effect at
the date of termination under Paragraph 3.1 for a period of six
(6) months from the date of termination, with the first payment to be paid
on the one month anniversary of such date, and take such actions as may be
necessary to transfer and assign all right, title and interest in the
Automobile to Executive as soon as reasonably practicable following the
Expiration Date, and if the Bank provides the first such payment and transfers
and assigns the Automobile, regardless of whether Executive has executed and
entered into the Separation and Consulting Agreement with the Bank, Executive
shall be deemed bound by such agreement in the form attached hereto in exchange
for the consideration provided in this Paragraph, as if executed and delivered
by him and fully effective, other than with respect to releases of claims and
consideration for those releases;

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5.4.3        a payout of all accrued but unused
vacation as of the date of termination;

5.4.4        continuation of the group medical and
other insurance benefits, if any, then-provided under Paragraph 3.7, for a
period of six (6) months from the date of termination, subject to the
limitations of and to the extent permitted by the policy or policies under
which such benefits are provided; and

5.4.5        payment of certain incentive
compensation in compliance with the Plan, with Executive’s termination as a
result of expiration being considered for the limited purpose of interpreting
the Plan in the context of this Agreement as being a termination “without
cause.”

5.5           Consideration for Payments and
Remedies.  Without limiting any other
remedies available to the Bank, the payments to be made under
Paragraphs 5.2, 5.3 or 5.4 (subject to the exceptions stated therein)
after the date of termination of Executive’s employment shall be subject to
Executive’s execution of the Separation and Consulting Agreement, and Executive’s
continued compliance with the Separation and Consulting Agreement and the terms
of this Agreement that are effective after termination of Executive’s
employment, through the making of the last such payment.

5.6           Death Following Termination.  In the event that Executive dies while
receiving any payments under this Paragraph 5, such payments shall be
continued for the benefit of the Beneficiary, as would otherwise be required
under this Paragraph 5.

5.7           Nonassignability.  Neither Executive nor any other person or
entity shall have any power or right to transfer, assign, anticipate, hypothecate,
mortgage, commute, modify, or otherwise encumber in advance any of the rights
or benefits of Executive under this Paragraph 5, nor shall any of said
rights or benefits be subject to seizure for the payment of any debts,
judgments, alimony or separate maintenance, owed by Executive or any other
person or entity, or be transferable by operation of law in the event of
bankruptcy, insolvency or otherwise.  The
terms of this Paragraph 5.7 shall not affect the interpretation of any
provision of this Agreement.

5.8           Claims Procedure.  The Bank Board shall make all determinations
as to rights to benefits under this Paragraph 5.

5.9           Regulatory Restrictions.  The parties understand and agree that at the
time any payment would otherwise be made or benefit provided under this
Paragraph 5, depending on the facts and circumstances existing at such
time, the satisfaction of such obligations by the Bank may be deemed by a
regulatory authority to be illegal, an unsafe and unsound practice, or for some
other reason not properly due or payable by the Bank.  Among other things, the regulations at 12
C.F.R. Part 30, Appendix A promulgated pursuant to Section 39(a) of
the Federal Deposit Insurance Act, and at 12 C.F.R. Part 359, or similar
regulations or regulatory action following similar principles may apply at such
time.  The Bank agrees that to the extent
reasonably feasible, it will in good faith seek to determine the position of
the appropriate regulatory authority in advance of each payment or benefit
otherwise due under this Paragraph 5, including

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seeking the approval or acquiescence of the
appropriate regulatory authorities, if required.  The parties understand, acknowledge and agree
that, notwithstanding any other provision of this Agreement, the Bank shall not
be obligated to make any payment or provide any benefit under this
Paragraph 5 where (i) an appropriate regulatory authority does not
approve or acquiesce as required or (ii) the Bank has been informed either
orally or in writing by a representative of the appropriate regulatory
authority that it is the position of such regulatory authority that making such
payment or providing such benefit would constitute an unsafe and unsound
practice, violate a written agreement with the regulatory authority, violate an
applicable rule, law or regulation, or would cause the representative of the
regulatory authority to recommend enforcement action against the Bank.

5.10         Right of Offset. Any and all of
the compensation and benefits that would otherwise be provided under this
Paragraph 5 are subject to the Bank’s offset for any liability of
Executive to the Bank to the extent the Bank Board determines that such
liability exists.  In addition, without
limiting the remedies of the Bank otherwise available under this Agreement or
otherwise, all compensation and benefits that would otherwise be payable under
this Paragraph 5 shall cease as of the date Executive first violates any
of the provisions included in Paragraphs 6.4, 6.5 or 6.6.

5.11         Overlapping Benefits and Payments.  In the event that Executive receives payments
and/or benefits under one of Paragraphs 5.1 through 5.4, inclusive,
Executive may not receive payments and/or benefits under one of the other of
such Paragraphs, and the first such applicable of those Paragraphs shall
apply.

5.12         Delayed Payments.  In the event that Code Section 409A (“409A”)
applies to any compensation with respect to a separation from service, payment
of that compensation shall be delayed if Executive is a “specified employee,”
as defined in 409A(a)(2)(B)(i), and such delayed payment is required by
409A.  Such delay shall last six months
from the date of separation from service. 
On the day following the end of such six-month period, the Bank shall
make a catch-up payment to Executive equal to the total amount of such payments
that would have been made during the six-month period but for this
Section 5.12, plus interest calculated at the prime rate as reported in
The Wall Street Journal

6.             Additional Covenants.

6.1           Insurance.  The Bank shall have the right to obtain and
hold a “keyman” life insurance policy on the life of Executive and disability
insurance covering Executive, in each case, with the Bank as beneficiary of
such policy.  Executive agrees to provide
any information required for the issuance of any such policy and submit himself
to any physical examination required for any such policy.

6.2           Unsecured General Creditor.  Neither Executive nor any other person or
entity shall have any legal right or equitable rights interests or claims in or
to any property or assets of the Bank under the provisions of this
Agreement.  No assets of the Bank shall
be held under any trust for the benefit of Executive or any other person or
entity or held in any way as security for the fulfilling of the obligations of
the Bank under this Agreement.  All of
the Bank’s assets shall be and remain the general, unpledged, unrestricted
assets of the Bank.  The Bank’s

 11
 

obligations under this Agreement are unfunded and
unsecured promises, and to the extent such promises involve the payment of
money, they are promises to pay money in the future.  Executive and any person or entity claiming
through him shall be unsecured general creditors with respect to any rights or
benefits hereunder.

6.3           Dispute Resolution.  Simultaneously with the execution of this
Agreement, the parties have entered into the Arbitration Agreement attached as
Exhibit C, which the parties agree shall govern the resolution of any and
all disputes referenced therein.

6.4           Return of Documents.  Executive expressly agrees that upon
termination of employment he will return to the Bank all Bank manuals,
document, files, reports, studies, customer lists, business plans, loan and
deposit program plans and outlines, customer solicitation and follow-up
techniques and plans, marketing plans, employee policies, incentive
compensation arrangements, instruments, software, and other materials used
and/or developed by Executive during his employment, whether in paper, computer
readable, computer coded, magnetic, compact disk or other tangible or
electronic form.

6.5           Confidentiality.

6.5.1        Definition.  During the term of employment with the Bank,
Executive will have access to and become acquainted with various trade secrets
and other proprietary and confidential information which are owned by the Bank
and which are used in the operation of the Bank’s business, the wrongful use or
disclosure of which to the public or competitors of the Bank would materially
adversely affect the business and prospects of the Bank.

6.5.2        No Disclosure.  Executive shall not disclose or use in any
manner, directly or indirectly, any trade secrets and other proprietary and
confidential information either during the Term or at any time thereafter,
except as required in the course of employment with the Bank.

6.6           Business Protection Covenants.

6.6.1        Covenant Not to Compete.  Executive agrees that he will not, during the
course of employment or during any period following the termination of his
employment during which he is receiving compensation or benefits under
Paragraphs 5.2, 5.3 or 5.4, voluntarily or involuntarily, directly or
indirectly, (i) engage in any banking or financial products or service
business, loan origination or deposit-taking business or any other business
competitive with that of the Bank, its subsidiaries or affiliates (“Competitive
Business”) within the county of San Diego (the “Market Area”),
(ii) directly or indirectly own, manage, operate, control, be employed by,
or provide management or consulting services in any capacity to any firm,
corporation, or other entity (other than the Bank or its subsidiaries or
affiliates) engaged in any Competitive Business in the Market Area, or
(iii) directly or indirectly solicit or otherwise intentionally cause any
employee, officer, or member of the Bank Board or any of its subsidiaries or
affiliates to engage in any action prohibited under (i) or (ii) of
this Paragraph 6.6.1.

 12
 

6.6.2        Inducing Employees To Leave The Bank;
Employment of Employees.  Any attempt
on the part of Executive to induce others to leave the Bank’s employ, or the
employ of any of its subsidiaries or affiliates, or any effort by Executive to
interfere with the Bank’s relationship with its other employees would be
harmful and damaging to the Bank. 
Executive agrees that during the term of employment and during any
period following the termination of his employment during which he is receiving
compensation or benefits under Paragraphs 5.2, 5.3 or 5.4, Executive will
not in any way, directly or indirectly (i) induce or attempt to induce any
employee of the Bank or any of its subsidiaries of affiliates to quit
employment with the Bank or the relevant subsidiary or affiliate;
(ii) otherwise interfere with or disrupt the relationships between the
Bank and its subsidiaries and affiliates and their respective employees;
(iii) solicit, entice, or hire away any employee of the Bank or any of its
subsidiaries or affiliates; or (iv) hire or engage any employee of the
Bank or any subsidiary or affiliate or any former employee of the Bank or any
subsidiary or affiliate whose employment with the Bank or the relevant
subsidiary or affiliate ceased after the date of termination of Executive’s
employment with the Bank.

6.6.3        Equitable Relief.  Executive acknowledges and agrees that
irreparable injury will result to the Bank in the event of a breach of any of
the provisions of this Paragraph 6 (the “Designated Provisions”)
and that the Bank will have no adequate remedy at law with respect
thereto.  Accordingly, in the event of a
material breach of any Designated Provision, and in addition to any other legal
or equitable remedy the Bank or its subsidiaries or affiliates may have, the
Bank and any relevant subsidiary or affiliate shall be entitled to the entry of
a preliminary and permanent injunction (including, without limitation, specific
performance) to restrain the violation or breach thereof by Executive or any
affiliates, agents, or any other persons acting for or with Executive in any
capacity whatsoever, and Executive submits to the jurisdiction of such court in
any such action.  Any such remedy shall
be granted pursuant to the dispute resolution procedures applicable under
Paragraph 6.3.

6.6.4        Severability.  It is the desire and intent of the parties
that the provisions of this Paragraph 6 shall be enforced to the fullest
extent permissible under the laws and public policies applied in each
jurisdiction in which enforcement is sought. 
Accordingly, if any particular provision of this Paragraph 6 shall be
adjudicated or found to be invalid or unenforceable, such provisions shall be
deemed amended to delete therefrom the portion thus adjudicated or found to be
invalid or unenforceable, such deletion to apply only with respect to the
operation of such provision in the particular jurisdiction in which such
adjudication or finding is made.  In
addition, should any court or arbitrator determine that the provisions of this
Paragraph 6 shall be unenforceable with respect to scope, duration, or
geographic area, such court or arbitrator shall be empowered to substitute, to
the extent enforceable, provisions similar hereto or other provisions so as to
provide to the Bank, to the fullest extent permitted by applicable law, the
benefits intended by this Paragraph 6.

6.7           Indemnification.  To the fullest extent permitted by law and in
accordance with the procedures and substantive requirements imposed by law and
applicable regulation (including 12 C.F.R. Part 359, or similar regulations or
regulatory action following similar principles), the Bank shall indemnify Executive
in the event he was or is a party or is threatened to be made a party in any
action brought by a third party against Executive (whether or not the Bank is
joined as a party defendant) against expenses, judgments, fines, settlement,
and other

 13
 

amounts actually and reasonably incurred in connection
with said action, provided Executive acted in good faith and in a manner
Executive reasonably believed to be in the best interests of the Bank, and
provided the alleged conduct of Executive arose out of and was within the
course and scope of his employment as an officer or employee of the Bank.  This Paragraph 6.7 shall not limit any
other rights to indemnification that Executive may now or hereafter have by law
or under the articles, bylaws or resolutions of the Bank or otherwise.

7.             Other Agreements.

7.1           Bank Policies and Manuals.  The parties further agree that to the extent
of any inconsistency between this Agreement and any employee manual or policy
of the Bank, that the terms of this Agreement shall supersede the terms of such
employee manual or policy.

7.2           Oustanding Stock Options.  The provisions of this Agreement are not and
shall not be interpreted to change the terms of any outstanding stock options
previously granted by the Bank to Executive. 
Without limiting the foregoing, the provisions regarding the grant of
options to purchase up to 28,750 shares of Bank stock set forth in Paragraph
4.4 of the Employment Agreement by and between Executive and the Bank dated
February 12, 2002 (the “2002 Agreement”) are not amended by this
Agreement and shall be deemed included in this Agreement, and the references in
that paragraph to other provisions of the 2002 Agreement are hereby
incorporated by reference for the limited purpose of continuing to effectuate
the agreement of the parties set forth in Paragraph 4.4 of the 2002
Agreement.  The parties intend that this
Agreement be considered as establishing an “extended term” for purposes of that
provision.

8.             General Provisions.

8.1           Notices.  Unless otherwise specifically permitted by
this Agreement, all notices or other communications required or permitted under
this Agreement shall be in writing, and shall be personally delivered or sent
by registered or certified mail, postage prepaid return receipt requested, or
sent by facsimile, provided that the facsimile cover sheet contain a notation
of the date and time of transmission, and shall be deemed received: (i) if
personally delivered, upon the date of delivery to the address of the person to
receive such notice, (ii) if mailed in accordance with the provisions of
this paragraph, two (2) business days after the date placed in the United
States mail, (iii) if mailed other than in accordance with the provisions
of this paragraph or mailed from outside the United States, upon the date
of delivery to the address of the person to receive such notice, or
(iv) if given by facsimile, when sent. 
Notices shall be given at the following addresses:

If to Executive:

A. Vincent Siciliano

411 Hidden Pines Lane

Del Mar, CA  92014

Fax: 
858-792-7409

 14
 

If to the Bank:

James G. Knight, M.D.

Chairman

1st Pacific Bank of
California

c/o 6907 Camino Degrazia

San Diego, CA  92111

Fax: 
619-222-8216

With a copy to:

Kurt L. Kicklighter, Esq.

Luce, Forward,
Hamilton & Scripps LLP

601 West Broadway,
Suite 2600

San Diego, CA  92101

Fax: 
619-645-5339

The relevant party may change the address for delivery of notices by
giving notice of such change in accordance with this paragraph.

8.2           Complete Agreement; Modifications.  This Agreement and written agreements, if
any, entered into concurrently herewith (i) constitute the parties’ entire
agreement, including all terms, conditions, definitions, warranties,
representations, and covenants, with respect to the subject matter hereof,
(ii) merge all prior discussions and negotiations between or among any or
all of them as to the subject matter hereof, and (iii) supersede and
replace all terms, conditions, definitions, warranties, representations,
covenants, agreements, promises and understandings, whether oral or written,
with respect to the subject matter hereof. 
This Agreement may not be amended, altered or modified except by a
writing signed by the party to be bound. 
With respect to the Bank, such amendment, alteration or modification may
only be made on behalf of the Bank by the Chairperson of the Personnel
Committee of the Bank Board, the Chairperson of the Bank Board or another
person specifically designated by the Bank Board.  With regard to such amendments, alterations,
or modifications, facsimile signatures shall be effective as original
signatures.  Any amendment, alteration,
or modification requiring the signature of more than one party may be signed in
counterparts.

8.3           Further Actions.  Each party agrees to perform any further acts
and execute and deliver any further documents reasonably necessary to carry out
the provisions of this Agreement.

8.4           Assignment.  No party may assign its rights under this
Agreement without the prior written consent of the other parties hereto.

8.5           Successors and Assigns.  Except as explicitly provided herein to the
contrary, this Agreement shall be binding upon and inure to the benefit of the
parties, their respective successors and permitted assigns.

 15
 

8.6           Termination and Survival.  Upon the termination of the employment of
Executive, the Bank may terminate this Agreement upon notice to Executive,
which may be provided at the time notice of termination of employment is
provided by either party.

8.6.1        The obligations of Executive and the
rights of the Bank under Paragraphs 4.5, 5.9, 5.10, 5.11 and 6.3 through
and including 6.6 shall survive the termination of this Agreement, provided
that if Executive and the Bank have entered into the Separation and Consulting
Agreement, the dispute resolution provisions of the Separation and Consulting
Agreement shall apply to and govern any and all disputes related to this
Agreement.

8.6.2        The obligations of the Bank to Executive
which by their terms are to continue after termination of employment under
Paragraph 5 shall survive such termination of employment and termination
of the Agreement.  The notice provisions
of Paragraph 8.1 shall survive termination of employment and termination
of the Agreement.

8.6.3        Notwithstanding any provision of this
Agreement to the contrary, this Agreement shall terminate and, therefore, among
other things, none of the provisions providing for compensation or benefits to
Executive shall be of any effect, in the event that the Bank is placed into a
conservatorship or receivership, it loses its Federal deposit insurance, or its
banking charter is revoked.

8.7           Severability.  If any portion of this Agreement shall be
held by a court of competent jurisdiction to be invalid, void, or otherwise
unenforceable, the remaining provisions shall remain enforceable to the fullest
extent permitted by law if enforcement would not frustrate the overall intent
of the parties (as such intent is manifested by all provisions of the Agreement
including such invalid, void, or otherwise unenforceable portion).

8.8           Extension Not a Waiver.  No delay or omission in the exercise of any
power, remedy, or right herein provided or otherwise available to any party
shall impair or affect the right of such party thereafter to exercise the same.  Any extension of time or other indulgence
granted to a party hereunder shall not otherwise alter or affect any power,
remedy or right of any other party, or the obligations of the party to whom
such extension or indulgence is granted except as specifically waived.

8.9           Time of Essence.  Time is of the essence of each and every
term, condition, obligation and provision hereof.

8.10         No Third Party Beneficiaries.  This Agreement and each and every provision
hereof is for the exclusive benefit of the parties hereto and not for the
benefit of any third party.

8.11         Headings.  The headings in this Agreement are inserted
only as a matter of convenience, and in no way define, limit, or extend or
interpret the scope of this Agreement or of any particular provision hereof.

8.12         References.  A reference to a particular paragraph of
this Agreement shall be deemed to include references to all subordinate
paragraphs, if any.

 16
 

8.13         Counterparts.  This Agreement may be signed in multiple
counterparts with the same force and effect as if all original signatures
appeared on one copy; and in the event this Agreement is signed in
counterparts, each counterpart shall be deemed an original and all of the
counterparts shall be deemed to be one agreement.

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

8.15         Representation by Counsel.  This Agreement has been negotiated by the
parties with the assistance of their respective counsel and at their own cost
and expense.  For this reason the
principal that an agreement shall be interpreted against the party that drafted
it shall not apply to this Agreement.

IN WITNESS WHEREOF, the undersigned have executed this
Agreement as of the dates set forth below.

	
  Date: 

  	
   

  	
   

  	
   

  
	
   

  	
  A. Vincent Siciliano

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  1st PACIFIC BANK
  OF CALIFORNIA, a

  
	
   

  	
  California state-chartered bank

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date: 

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  James G. Knight,
  M.D., Chairman

  
							

 

 17

EXHIBIT A

1st PACIFIC BANK OF CALIFORNIA INCENTIVE
COMPENSATION PLAN FOR

SENIOR
MANAGEMENT

EXHIBIT B

SEPARATION AND CONSULTING AGREEMENT

AND

GENERAL RELEASE OF CLAIMS

This Separation and Consulting Agreement and General Release of Claims
(this “Agreement”) is entered into by and between A. Vincent Siciliano (“Employee”)
and 1st Pacific Bank of California, a California state
bank (the “Bank”).

RECITALS

A.    Employee commenced employment with Bank on or about                  .  Employee’s employment with the Bank
terminated on                     
,         .

B.    Employee and the Bank desire to settle and compromise any and all
possible claims against the Bank by Employee arising out of their relationship
to date, including Employee’s employment with the Bank and the termination of
Employee’s employment, and to provide for a general release of any and all such
claims.

AGREEMENT

1.     Separation Pay/Consideration.  In consideration of the covenants and
releases set forth herein, the Bank agrees to pay Employee the amount payable
to him and the non-monetary consideration (if any) due him, pursuant to and in
accordance with, Paragraphs 5.2, 5.3 or 5.4, as the case may be, of the
Employment Agreement dated December      , 2005,
by and between the Bank and Employee (the “Employment Agreement”), less all
applicable state and federal deductions (in each case, the “Payment”), $2,000
of which shall be consideration for Employee’s release of ADEA claims as set
forth in Section 5, below; provided that no such Payment shall be made
until at least eight (8) days have past since Employee’s execution of this
Agreement and further provided that the amount and timing of any such payment
shall not violate Paragraph 5.12 of the Employment Agreement and
Section 409A of the Internal Revenue Code of 1986.  The check representing the Payment shall be
mailed to Employee at his/her home address at                     
..

2.     Consulting Services. 
The Bank will retain Employee as a consultant and Employee will provide
consulting services to the Bank, under the direction of the Chief Executive
Officer of the Bank or his delegee, for a period of one year if
Paragraphs 5.2 or 5.3 of the Employment Agreement apply, or six months if
Paragraph 5.4 of the Employment Agreement applies (the “Consulting Term”),
in order to assist in the maintenance of Bank’s customer, investor and employee
relationships, including without limitation services of the following types:
(a) provision of specific information regarding the service requirements
of specific customers and their business and financial practices;
(b) identification of and introduction to prospective customers of the
Bank; (c) advice regarding specific Bank employee relations and issues;
(d) assistance in development of marketing plans; (e) assistance in fostering
continued relationships with customers of the Bank to whom Employee provided
services or as to which he was their primary contact at the Bank;
(f) assisting in litigation or arbitration matters involving

the Bank, including
appearing for depositions; (g) assisting in regulatory relations and
(h) performance of special projects as yet undetermined.

a.     During the Consulting Term, Employee shall
be available to provide consulting services to the Bank upon reasonable notice
and at reasonable times on a quarterly basis not to exceed 40 hours per month.

b.     Employee’s consulting obligation to the
Bank shall not prevent him from engaging in other employment, consulting and
business relationships, provided these do not breach any of the other
provisions of this Agreement or any other agreement with the Bank or prevent
him from providing consulting services hereunder.

3.     Non-Competition. 
During the Consulting Term, Employee re-affirms and agrees that he shall
comply with his obligations and duties under Section 6 of the Employment
Agreement.

4.     Release of All Claims Except Age Discrimination in Employment
Act of 1967 (“ADEA”) Claims.

a.     In consideration of the payment and other
benefits described in Section 1, which Employee would otherwise not be
entitled to except for signing this Agreement, Employee does hereby
unconditionally, irrevocably and absolutely release and discharge the Bank and
any related holding, parent, sister or subsidiary entities and all of their
respective boards of directors, officers, employees, agents, volunteers,
attorneys, insurers, divisions, successors and assigns from any and all loss,
liability, claims, demands, causes of action or suits of any type, whether in
law and/or in equity, related directly or indirectly, or in any way connected
with any transaction, affairs or occurrences between them to date, including,
but not limited to, Employee’s employment with the Bank and the termination of
said employment.  This Agreement
specifically applies, without limitation, to any and all contract or tort
claims, claims for wrongful termination, wage claims, and claims arising under
Title VII of the Civil Rights Act of 1991, the Americans with Disabilities Act,
the Equal Pay Act, the California Fair Employment and Housing Act, the Fair Labor
Standards Act, the Family and Medical Leave Act, the California Family Rights
Act, the California Labor Code, and any and all federal or state statutes or
provisions governing the employment relationship or discrimination in
employment except the federal statute specifically excluded hereafter.  This release specifically excludes any and
all loss, liability, claims, demands, causes of action or suits of any type
arising under the ADEA.  Employee’s
release of ADEA claims will be addressed separately in Section 3 of this
Agreement.

b.     Employee irrevocably and absolutely agrees
that he/she will not prosecute nor allow to be prosecuted on his/her behalf, in
any administrative agency, whether federal or state, or in any court, whether
federal or state, any claim or demand of any type related to the matters
released above, it being the intention of the parties that with the execution
by Employee of this release, the Bank and any related holding, parent, sister
or subsidiary corporations or entities and all of their respective boards of
directors, officers, employees, agents, volunteers, attorneys, insurers,
divisions, successors and assigns will be absolutely, unconditionally and
forever discharged of and from all obligations to or on behalf of Employee
related in any way to the matters discharged herein.

5.     Release of All ADEA Claims.

a.     This section of the Agreement exclusively
addresses Employee’s release of claims arising under federal law involving
discrimination on the basis of age in employment (age 40 and above).  This section is provided separately, in
compliance with federal law, including but not limited to the Older Workers’
Benefit Protection Act of 1990, to ensure that Employee clearly understands
his/her rights so that any release of age discrimination claims under federal
law (the ADEA) is knowing and voluntary on the part of Employee.

b.     Employee represents, acknowledges and
agrees that the Bank has advised him/her, in writing, to discuss this Agreement
with an attorney, and to the extent, if any, that Employee has desired,
Employee has done so; that the Bank has given Employee twenty-one (21) days
from receipt of this Agreement to review and consider this Agreement before
signing it, and Employee understands that he/she may use as much of this twenty-one
(21) day period as he/she wishes prior to signing; that no promise,
representation, warranty or agreements not contained herein have been made by
or with anyone to cause him/her to sign this Agreement; that he/she has read
this Agreement in its entirety, and fully understands and is aware of its
meaning, intent, content and legal effect; and that he/she is executing this
release voluntarily and free of any duress or coercion.

c.     The parties acknowledge that for a period
of seven (7) days following the execution of this Agreement, Employee may
revoke the Agreement, and the Agreement shall not become effective or
enforceable until the revocation period has expired.  This Agreement shall become effective eight
(8) days after it has been signed by Employee and the Bank, and in the
event the parties do not sign on the same date, then this Agreement shall
become effective eight (8) days after the date it is signed by Employee.

d.     In consideration of the separation payment
and other benefits made to Employee described in Section 1 of this
Agreement, which Employee would otherwise not be entitled to except for signing
this Agreement, Employee does hereby unconditionally, irrevocably and
absolutely release and discharge the Bank and any related holding, parent, sister
or subsidiary entities and all of their respective boards of directors,
officers, employees, agents, volunteers, attorneys, insurers, divisions,
successors and assigns from any and all loss, liability, claims, demands,
causes of action or suits of any type arising under the ADEA and related
directly or indirectly to Employee’s employment with the Bank and the
termination of said employment.

6.     Section 1542 Waiver. 
Employee does expressly waive all of the benefits and rights granted to
him/her pursuant to California Civil Code section 1542, which reads:

a general release does not
extend to claims which the creditor does not know of or suspect to exist in his
favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.

Employee does
certify that he/she has read all of this Agreement, including the release
provisions contained herein and the quoted Civil Code section, above, and that
he/she fully understands all of the same. 
Employee hereby expressly agrees that this Agreement shall extend and
apply to all unknown, unsuspected and unanticipated injuries and damages
(including, without limitation, those arising under the ADEA), as well as those
injuries and damages that are now disclosed.

7.     Confidentiality. 
Employee agrees that all matters relative to this Agreement, including
the negotiations leading up to this Agreement and its terms, shall remain
confidential.  Accordingly, Employee
hereby agrees that, with the exception of his/her spouse, regulatory agencies
of the Bank and tax and legal advisors, he/she will not discuss, disclose or
reveal to any other persons, entities or organizations, whether within or
outside of the Bank, the terms and conditions of this Agreement.

8.     Non-Disparagement. 
Employee agrees that he/she will not disparage the Bank or any of its
directors, employees, agents or volunteers or otherwise interfere with the Bank’s
business, vendor or other relationships. 
Employee agrees not to make any derogatory or adverse statements,
written or verbal, to anyone regarding the Bank or any of its present or former
directors, employees, agents or volunteers. 
The Bank agrees that it will neither disparage Employee nor make any
derogatory or adverse statements, written or verbal, to anyone regarding
Employee.  If an arbitrator determines
that the Bank has breached its obligations under this Section 8, to the
extent the Payment has not been paid in full, the Bank shall be required to make
the Payment in full to Employee within five (5) days following such
arbitrator’s determination.  Nothing in
this Section 8 shall prohibit or relate to any statement by any person to
any bank regulatory agency.

9.     Entire Agreement. 
The parties further declare and represent that no promise, inducement or
agreement not herein expressed has been made to them and that this Agreement
contains the full and entire agreement between and among the parties, and that
the terms of this Agreement are contractual and not a mere recital.

10.   Future Employment.  Employee agrees that the Bank will not be
obligated to offer employment to him/her or to hire him/her for any reason,
regardless of the circumstances, at any time on or after the date of this
Agreement.  Employee agrees that he/she
will not apply for nor accept any such employment.

11.   Trade Secret/Proprietary Information.  Employee hereby reaffirms his/her obligations
under his/her Employment Agreement with the Bank to which this Agreement
relates, which shall remain in effect to the extent provided in the Employment
Agreement.  Employee further agrees that
he/she shall not disclose to any person(s) or entity(ies) at any time or
in any manner, directly or indirectly, any information relating to the
operations of the Bank which has not already been disclosed to the general
public.  Employee agrees that this
provision includes, but is not limited to, the following information:
proprietary information and/or trade secrets; secret formulae; customer lists
and/or names; product and service prices; customer charges; contracts; contract
negotiations and employee relations matters. 
Employee understands and agrees that this list is not all-inclusive.

12.   Return of Company Property.  Employee agrees to promptly return all
property or information belonging to the Bank, including all keys, computers,
cellular telephones, and any document or property Employee generated during
his/her employment at the Bank, and agrees that no such property will be in
his/her possession or control at the time he/she receives the consideration
specified in Section 1.  This
includes all property or information that may have come into his/her possession
as a result of his/her employment with the Bank.  Employee further acknowledges that he/she has
not retained any copies of any such information.

13.   Applicable Law.  The validity, interpretation, and performance
of this Agreement shall be construed and interpreted according to the laws of
the State of California.

14.   Dispute Resolution.  Any dispute arising out of or related to this
Agreement shall be resolved through binding arbitration through JAMS/Endispute
in San Diego, California, under the then current applicable rules of
JAMS/Endispute.  Each party shall be
responsible for its or his/her own costs and attorneys’ fees in connection with
the arbitration.

15.   Complete Defense.  This Agreement may be pleaded as a full and
complete defense against any action, suit or proceeding which may be
prosecuted, instituted or attempted by either party in breach thereof.

16.   Severability.  If any provision of this Agreement, or part
thereof, is held invalid, void or voidable as against public policy or
otherwise, the invalidity shall not affect other provisions, or parts thereof,
which may be given effect without the invalid provision or part.  To this extent, the provisions, and parts
thereof, of this Agreement are declared to be severable.

17.   No Admission of Liability.  It is understood that this Agreement is not
an admission of any liability by the Bank

18.   Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs, legal
representatives, successors and assigns.

19.   Counterparts.  This Agreement may be signed in
counterparts.  A facsimile signature
shall have the same force and effect as an original signature.

Employee and the Bank
have read the foregoing Agreement and know its contents and fully understand
it.  Employee and the Bank acknowledge
that they have fully discussed this Agreement with their respective attorneys to
the extent desired, or have had the opportunity to do so, and fully understand
the consequences of this Agreement.  No
party is being influenced by any statement made by or on behalf of any of the
other party to this Agreement.  Employee
and the Bank have relied and are relying solely upon his/her or its own
judgment, belief and knowledge of the nature, extent, effect and consequences
relating to this Agreement and/or upon the advice of their own legal counsel
concerning the consequences of this Agreement.

IN WITNESS WHEREOF, the undersigned have executed this
Agreement on the dates shown below.

	
  Dated: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A. Vincent Siciliano

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1st Pacific Bank of California:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: 

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Its:

  	
   

  
								

 

EXHIBIT C

EXECUTIVE
ARBITRATION AGREEMENT

THIS EXECUTIVE ARBITRATION AGREEMENT (“Arbitration
Agreement”) is made by and between 1st Pacific Bank of California, a
California state-chartered bank (the “Bank”), and A. Vincent Siciliano
(the “Executive”), effective as of the date that the Employment
Agreement between the Bank and Executive executed contemporaneously herewith
(the “Employment Agreement”), becomes effective.

The purpose of this Arbitration Agreement is to
establish final and binding arbitration for disputes arising out of Executive’s
employment, the Employment Agreement or the termination of Executive’s
employment.  Executive and the Bank
desire to arbitrate their disputes on the terms and conditions set forth below,
in order to gain the benefits of a speedy, impartial dispute-resolution
procedure.  Executive and the Bank agree
to the following:

1.             Claims Covered By The Arbitration Agreement.  Executive and the Bank mutually consent to
the resolution by final and binding arbitration of all claims or controversies
(“claims”) that the Bank may have against Executive or that Executive
may have against the Bank or against its officers, directors, partners,
employees, agents, pension or benefit plans, administrators, or fiduciaries, or
any subsidiary or affiliated company or corporation (collectively referred to
as the “Bank”), relating to, resulting from, or in any way arising out
of Executive’s employment relationship with the Bank, the Employment Agreement
and/or the termination of Executive’s employment relationship with the Bank, to
the extent permitted by law.  The claims
covered by this Arbitration Agreement include, but are not limited to, claims
for wages or other compensation due; claims for breach of any contract or
covenant (express or implied); tort claims; claims for discrimination and
harassment (including, but not limited to, race, sex, religion, national
origin, age, marital status or medical condition, disability, sexual
orientation, or any other characteristic protected by federal, state or local
law); claims for benefits (except where an employee benefit or pension plan
specifies that its claims procedure shall culminate in an arbitration procedure
different from this one); and claims for violation of any public policy,
federal, state or other governmental law, statute, regulation or ordinance.

2.             Required Notice Of Claims And Statute Of Limitations.  Executive may initiate arbitration by serving
or mailing a written notice to the Board of Directors of the Bank at the Bank’s
administrative headquarters, care of the Corporate Secretary.  The Bank may initiate arbitration by serving
or mailing a written notice to Executive at his last known address.  The written notice must specify the claims
asserted against the other party.  Notice
of any claim sought to be arbitrated must be served within the limitations
period established by applicable federal or state law.

3.             Arbitration Procedures.  After demand for arbitration has been made by
serving written notice under the terms of Section 3 of this Arbitration
Agreement, the party demanding arbitration shall file a demand for arbitration
with the American Arbitration Association (“AAA”).  Except as otherwise provided in this
Arbitration Agreement, the arbitration will be

 1
 

conducted according to the then applicable arbitration
rules of AAA for the arbitration of employment disputes.

4.             Discovery. 
Discovery shall be allowed and conducted pursuant to the then applicable
arbitration rules of AAA for the arbitration of employment disputes.

5.             Choice of Law. 
The arbitrator shall apply the substantive law (and the law of remedies,
if applicable) of the State of California, or federal law, or both, as
applicable to the claim(s) asserted. 
The arbitrator shall have authority to resolve any dispute relating to
the interpretation, applicability, enforceability or formation of this
Arbitration Agreement, including but not limited to any claim that all or any
part of this Arbitration Agreement is void or voidable.

6.             Summary Judgment. 
Either party may file a motion for summary judgment with the
arbitrator.  The arbitrator is entitled
to resolve some or all of the asserted claims through such a motion.  The standards to be applied by the arbitrator
in ruling on a motion for summary judgment shall be the applicable laws as
specified in Section 5 of this Arbitration Agreement.

7.             Application For Emergency Injunctive And/Or Other
Equitable Relief.  Claims by the Bank
or Executive for emergency injunctive and/or other equitable relief relating to
unfair competition and/or the use and/or unauthorized disclosure of trade
secrets or confidential information shall be subject to the then current
version of the AAA’s Optional Rules for Emergency Measures of Protection set
forth within the AAA’s Commercial Dispute Resolution Procedures.  The AAA shall appoint a single emergency
arbitrator to handle the claim(s) for emergency relief.  The emergency arbitrator selected by the AAA
shall be either a retired judge or an individual experienced in handling
matters involving claims for emergency injunctive and/or other equitable relief
relating to unfair competition and the use or unauthorized disclosure of trade
secrets and/or confidential information.

8.             Arbitration Decision.  The arbitrator’s decision will be final and
binding.  The arbitrator shall issue a
written arbitration decision revealing the essential findings and conclusions
upon which the decision and/or award is based. 
A party’s right to appeal the decision is limited to grounds provided
under applicable federal or state law.

9.             Place Of Arbitration.  The arbitration will be at a mutually
convenient location, which must be within 50 miles of Executive’s last
employment location with the Bank.  If
the parties cannot agree upon a location, then the arbitration will be held at AAA’s
office nearest to Executive’s last employment location with the Bank.

10.           Severability.  Should any portion of this Arbitration
Agreement be found to be unenforceable, such portion will be severed from this
Arbitration Agreement, and the remaining portions shall continue to be
enforceable.

11.           Section Headings.  The section headings of this Arbitration
Agreement are intended solely for the convenience of reference and shall not in
any manner amplify, limit, modify or otherwise be used in interpretation of any
provisions hereof.

 2
 

12.           Construction.  This Arbitration Agreement shall not be
interpreted for or against any party on the basis that such party or its legal
representative caused part or all of this Arbitration Agreement to be drafted.

13.           Consideration.  The Bank’s offer to employ Executive, and the
promises by the Bank and Executive to arbitrate differences, rather than
litigate them before courts or other bodies, provide consideration for each
other.

14.           Fees and Costs.  Each party may be represented by an attorney
or other representative selected by the party. 
Each party shall be responsible for its own attorneys’ or representative’s
fees.  However, if any party prevails on
a statutory claim which affords the prevailing party’s attorneys’ fees, or if
there is a written agreement providing for fees, the arbitrator may award
reasonable fees to the prevailing party. 
In no event shall Executive be required to pay administrative fees,
including arbitrator’s fees, beyond the fees which would have been incurred by
Executive, if any, had the dispute(s) arbitrated under this Arbitration
Agreement been litigated in state or federal court; the Bank shall be
responsible for all administrative fees exceeding such amount.

15.           Enforcement of Arbitration Agreement.  Should either party file a court action
concerning or refuse to arbitrate a claim which is subject to arbitration under
this Arbitration Agreement, the other party shall be entitled to recover its
costs and reasonable attorneys’ fees incurred in enforcing this Arbitration
Agreement in court.

16.           Sole And Entire Agreement.  This Arbitration Agreement expresses the
entire agreement of the parties and there are no other agreements, oral or
written, concerning arbitration, except as provided herein, and except for the
Employment Agreement which incorporates this Arbitration Agreement by
reference.  By itself, this Arbitration
Agreement is not, and shall not be construed to create, any contract of
employment, express or implied.

17.           Requirements for Modification or
Revocation.  This Arbitration
Agreement shall survive the termination of Executive’s employment.  It can only be revoked or modified by a
writing signed by the Chairperson of the Personnel Committee of the Bank’s
Board of Directors, the Chairperson of the Bank’s Board of Directors or another
person specifically designated by the Board of Directors of the Bank and
Executive, that specifically states an intent to revoke or modify this
Arbitration Agreement.

18.           Waiver of Jury Trial/Exclusive
Remedy.  EXECUTIVE AND THE BANK WAIVE ANY CONSTITUTIONAL OR STATUTORY RIGHT TO
HAVE ANY DISPUTE BETWEEN THEM COVERED BY THE TERMS OF THIS ARBITRATION
AGREEMENT DECIDED BY A COURT OF LAW AND/OR BY A JURY IN A COURT.

19.           Voluntary Agreement.  EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS
CAREFULLY READ THIS ARBITRATION AGREEMENT, UNDERSTANDS ITS TERMS, AND AGREES
THAT ALL UNDERSTANDINGS AND AGREEMENTS BETWEEN THE BANK AND EXECUTIVE RELATING
TO THE SUBJECTS COVERED IN THE ARBITRATION AGREEMENT ARE CONTAINED IN IT.  EXECUTIVE HAS VOLUNTARILY ENTERED INTO THE
ARBITRATION AGREEMENT WITHOUT

 3
 

RELIANCE ON ANY PROVISIONS OR REPRESENTATIONS BY THE
BANK, OTHER THAN THOSE CONTAINED IN THIS ARBITRATION AGREEMENT OR EMPLOYMENT
AGREEMENT INTO WHICH IT IS INCORPORATED BY REFERENCE.

EXECUTIVE FURTHER
ACKNOWLEDGES THAT EXECUTIVE HAS BEEN GIVEN THE OPPORTUNITY TO DISCUSS THIS
ARBITRATION AGREEMENT AND THE EMPLOYMENT AGREEMENT WITH EXECUTIVE’S PRIVATE
LEGAL COUNSEL AND EXECUTIVE HAS UTILIZED THAT OPPORTUNITY TO THE EXTENT
DESIRED.

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  A. Vincent Siciliano, Executive

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  1st PACIFIC BANK OF
  CALIFORNIA,

  
	
   

  	
  a California state-chartered bank

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  James G. Knight,
  M.D., Chairman

  

 

 4

Election Pursuant to § 409A of the Internal Revenue Code

In
connection with the Employment Agreement effective as of December      , 2005
(the “Agreement”), by and between A. Vincent Siciliano (the “Executive”) and
1st Pacific Bank of California (the “Bank”), which is to be executed on or
about December      , 2005, Executive hereby
makes the following irrevocable elections in accordance with and pursuant to
§ 409A of the Internal Revenue Code of 1986 (the “Code”) and its
underlying Treasury regulations:

1.                                       Initial Election. 
Executive hereby defers all “separation pay” owed to him by the Bank
under the terms of the Agreement.  For
this purpose the term separation pay is defined in accordance with Code § 409A
and its underlying Treasury regulations.

2.                                       Specified Distribution Date. 
Executive hereby designates the distribution date of the separation pay
to be in accordance with the time and manner as specified in the Agreement.

3.                                       Subsequent Election. 
Executive hereby agrees to make an subsequent election, if any, in
accordance with Code § 409A and its underlying Treasury regulations.

This
Election Pursuant to § 409A of the Internal Revenue Code is made and entered
into as of this       day of December, 2005.

	
  

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  A. Vincent SicilianoExhibit 10.16

EMPLOYMENT
AGREEMENT

This Employment Agreement (the “Agreement”) is
effective as of November 17, 2005 (the “Effective Date”) by and
between Richard H. Revier (“Executive”) and 1st Pacific Bank of California, a California
state-chartered bank (the “Bank”), with regard to the following:

A.    Executive has served as the Executive Vice President
and Chief Credit Officer of the Bank under an Employment Agreement between
Executive and the Bank dated November 17, 2003 (the “Former Employment
Agreement”).

B.    Executive and the Bank have agreed that Executive
shall continue to serve as the Executive Vice President and Chief Credit
Officer and a full-time employee of the Bank under the terms of this Agreement,
and as such is expected to make a major contribution to the profitability,
growth and financial strength of the Bank.

C.    The Bank considers the availability of Executive’s
services, managerial skills and business experience to be in the best interests
of the Bank and the shareholders of the Bank and desires to assure the
continued services of Executive on behalf of the Bank.

D.    Executive is willing to be employed by the Bank upon
the understanding that the Bank will provide him with income security and
benefits if his employment with the Bank is terminated, upon certain terms and
conditions.

NOW, THEREFORE, for valuable consideration the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

1.             Definitions.

“Bank” means 1st Pacific Bank of California, a
California state-chartered bank, its successors and permitted assigns.

“Bank Board” means the Board of Directors of
the Bank.

“Beneficiary” means the person or entity to
receive rights or benefits under this Agreement, as set forth in this
Agreement, in the event of the death of Executive.  Unless otherwise specified in a written
notice to the Bank, the Beneficiary shall be the spouse of Executive, if any,
and if there is none, the estate of Executive (including any trust created by
the terms of Executive’s will) or, if Executive provides the Bank with written
notice thereof prior to his death, any trust as to which Executive was a
settlor with a power of revocation.

“Benefits” means the types and amounts of
benefits provided under Paragraph 3.6, provided that if at the date of
reference the terms of any Bank insurance plan prohibit the continuance or
recommencement of insurance benefits that Executive formerly held, the Bank
shall be obligated to pay to Executive in cash on a monthly basis an amount
equal to the Bank’s former premium payments (pro rated on a monthly basis) for
the benefit of Executive under such plan, except that if Executive is entitled
to COBRA health insurance benefits the amount shall be increased to the amount
payable by Executive for such benefits if higher than the Bank’s former premium
payments.

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“Change of Control” means the occurrence of any
of the following events:

(i)            any “person” (as used in
Section 13(d) of the Securities Exchange Act of 1934 and the rules
promulgated thereunder) becomes the “beneficial owner” (as defined in Rule  13d-3) of securities representing a majority
of the voting power of the then outstanding securities of the Bank; or

(ii)           a sale of assets involving all or
substantially all of the assets of the Bank, or a merger or consolidation of
the Bank in which the holders of securities of the Bank immediately prior to
such event hold in the aggregate less than a majority of the securities of the
Bank or any other surviving or resulting entity immediately after such event.

Notwithstanding the foregoing, a Change in Control
shall not be deemed to have occurred in the event the Bank forms a holding
company as a result of which the holders of the Bank’s outstanding voting
securities immediately prior to the transaction hold, in approximately the same
relative proportions as they held prior to the transaction, substantially all
of the outstanding voting securities of a holding company owning all of the
Bank’s outstanding voting securities after the completion of the transaction.

“Change of Control Severance Benefits” means
(i) an amount equal to the sum of (y) one (1) times Executive’s base
annual salary at the rate then in effect in accordance with Paragraph 3.1,
plus (z) the amount actually paid by the Bank to Executive under the Plan
for the immediately preceding year, if any; and (ii) continuation of
benefits provided under Paragraph 3.6 or substitute equivalent benefits in
the event that the particular benefits (for instance, insurance coverage) are
not carried by the Bank under its programs following the Change of Control
Termination, for a period of twelve (12) months.

“Change of Control Termination” means the
termination of employment of Executive within twelve (12) months after a Change
of Control (i) by the Bank under Paragraph 4.1.5; or (ii) by
Executive under Paragraph 4.2 for Good Cause.

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

“Disability” shall be deemed to occur on the
date the Executive is, by reason of any medically determinable physical or
mental impairment that can be expected to result in death or can be expected to
last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than three months under an
accident and health plan covering employees of the Bank.

“Executive” means Richard H. Revier.

“Expiration Date” means November 16, 2007.

“Good Cause” means:  (i) a reduction in Executive’s base
salary below the rate then in effect in accordance with Paragraph 3.1;
(ii) the Bank requiring that Executive be based at a location more than
fifty (50) miles from the Bank’s headquarters as of the Effective Date
(excluding travel for Bank business and other temporary relocations of no more
than thirty (30) days individually); (iii) a reduction in his title; or
(iv) the continuation after a Change of Control,

 2
 

or imposition within six
(6) months after a Change of Control, of a material reduction in the
duties or authority of Executive so that he is no longer performing
substantially all of the duties of a chief credit officer of a community bank.

“Plan” means the 1st Pacific Bank of California
Incentive Compensation Plan for Senior Management, in substantially the form
attached hereto as Exhibit A, as the same may be amended from time
to time.

“Separation Agreement” means the Separation and
General Release of Claims, substantially in the form attached hereto as Exhibit B.

“Trade Secrets and Other Proprietary and
Confidential Information” means and consist of, for example, and not
intending to be inclusive, information concerning any matters relating to the
business of the Bank, any of its customers, governmental relations, customer
contacts, underwriting methodology, loan program configuration and
qualification strategies, marketing strategies and proposals, or any other
information concerning the business of the Bank, its subsidiaries and
affiliates, and the Bank’s good will; provided that “Trade Secrets and Other
Proprietary and Confidential Information” shall not be deemed to include
information that is or becomes, through no fault of Executive, in the public
domain.

2.             Rights and Duties of Executive.

2.1           Employment.  The Bank
hereby employs Executive as its Executive Vice President and Chief Credit
Officer, and Executive accepts the duties described herein, and agrees to
discharge the same faithfully and to the best of his ability.  Executive shall perform such other duties as
shall be from time to time prescribed by the Chief Executive Officer of the
Bank and shall report to and be subject to the direction of the Chief Executive
Officer of the Bank.  Executive shall
devote his full business time and attention to the business and affairs of the
Bank.

2.2           Termination of Former Employment Agreement. 
As of the Effective Date, the Former Employment Agreement shall terminate
without further liability of the Bank or Executive thereunder of any kind.

2.3           At-Will Employment.  Executive’s
employment with the Bank is not for a fixed period of time and can be
terminated at the will of either Executive or the Bank at any time, with or
without notice, and with or without cause. 
There are no agreements between Executive and the Bank contrary to
Executive’s at-will status.  Neither a
Bank Board member nor a manager, supervisor, employee or agent of the Bank is
authorized to alter Executive’s at-will status, except for the Chairperson of
the Bank Board, and then only in a writing signed both by the Chairperson of
the Bank Board and Executive following adoption of a resolution by the Bank
Board authorizing the specific change reflected in such writing and authorizing
the Chairperson of the Bank Board to sign such writing.  Executive should neither assume nor imply any
promise of employment for any specified period of time except through such a signed
writing.  This Agreement shall terminate
immediately without further liability or obligation to Executive if
(i) the Bank is closed by any supervisory authority, or (ii) any
supervisory authority demands, by proposed consent agreement or by a Prompt
Corrective Action Directive, or pursuant to cease

 3
 

and desist powers, the removal of Executive from his
position as the Executive Vice President or Chief Credit Officer of the
Bank.  Should Executive remain employed
under this Agreement through the Expiration Date, Executive’s employment with the
Bank shall automatically terminate on that date and this Agreement shall be of
no force or effect on or after that date, subject to Paragraphs 5.4 and
8.6.

2.4           Outside Activities.  Executive
shall not have other employment, consulting, charitable or independent
contractor work that materially interferes with the fulfillment of Executive’s
duties to the Bank.  Executive shall not
undertake expanded commitments to business or charitable activities or engage
in new such activities before consulting with the President and Chief Executive
Officer of the Bank.  Executive will not
provide services to, hold or make any investment in or loan to, or participate
in the management or business of, any bank, savings and loan, credit union,
thrift and loan, industrial loan or other entity engaged in the business of
making loans or accepting deposits or both; provided that Executive may own
less than 5% of the voting stock of any company that files reports under the
Securities Exchange Act of 1934.

3.             Compensation and Benefits. 
In consideration for the services to be rendered by Executive to the
Bank, the Bank agrees to provide Executive with the following compensation and
benefits:

3.1           Salary.  The Bank
shall pay Executive a minimum annual salary at the rate of One Hundred Fifty
Thousand Dollars ($150,000) for the period of November 17, 2005 through
November 16, 2006, increasing to One Hundred Sixty Thousand Dollars ($160,000)
for the period of November 17, 2006 through November 16, 2007, due and payable
biweekly, or otherwise in accordance with the Bank’s policy for the scheduling
of salary payments to employees as in effect from time to time.  Other salary increases, if any, shall only be
as approved by the Bank Board in its sole discretion.

3.2           Withholding and Deductions. 
The Bank shall withhold and/or deduct from any and all salary or other
payments to Executive, all taxes which may be required to be deducted or
withheld under any provision of law (including, but not limited to, social
security payments and income tax withholding) now in effect or which may become
effective any time during Executive’s employment with the Bank.

3.3           Executive Incentive Compensation. 
In general, the Bank believes that superior performance of Executive
should be rewarded and encouraged by incentive compensation.  The Bank Board shall adopt the Plan pursuant
to which Executive may be entitled to incentive compensation provided that the
performance goals of the Bank as set forth in the Plan are achieved and the
terms and conditions of the Plan are satisfied. 
In addition, Executive shall be entitled to other incentive compensation
and bonuses as the Bank Board may determine in its sole discretion.  Notwithstanding the foregoing, Executive
shall not participate in the Bank’s Team Share Plan.

 4
 

3.4           Automobile Allowance.  The Bank
shall pay the Executive an automobile allowance of Six Hundred and Fifty
Dollars ($650.00) per month, subject to withholding.  This is an allowance for all automobile costs
and expenses, including, but not limited to, fuel, license, maintenance,
insurance, repairs and purchase or lease payments.

3.5           Expense Reimbursement.  The Bank
agrees to reimburse Executive for all ordinary and necessary expenses incurred
by Executive on behalf of the Bank in accordance with the Bank’s policies and
procedures as in effect from time to time, including entertainment, meal and
travel expenses.

3.6           Insurance.  The Bank
shall provide life insurance with a life insurance benefit equal to at least
one and one-half times the annual salary of Executive at the rate then in
effect under Paragraph 3.1, which shall be provided through any group life
insurance plan of the Bank at the Bank’s option.  The Bank shall provide to Executive the long
term disability insurance provided by the Bank to employees at the Effective
Date under the Bank’s group plan or shall replace it with similar coverage so
long as Executive is employed by the Bank. 
Executive shall be entitled to participate in such other insurance
benefits as are generally provided to the employees of the Bank from time to
time.

3.7           Vacation.  Executive
shall be entitled to five (5) weeks of vacation time and pay per annum, which
shall be scheduled in Executive’s discretion, subject to and taking into
account applicable banking laws and regulations.  Unused vacation may be accrued up to a
maximum of six (6) weeks of unused vacation in addition to the vacation to
which Executive may be entitled in the current year, and thereafter Executive
shall cease to accrue unused vacation until used.  Vacation
must be accrued before taken, and if not yet accrued, must have the prior
approval of the Chief Executive Officer of the Bank to be taken.  Vacation may be used only at the time or
times approved by the Chief Executive Officer of the Bank.

4.             Termination.

4.1           Employer Right to Terminate Employment. 
Nothing in this Agreement shall adversely affect the right of the Bank
Board to terminate Executive.  The Bank
Board has the right to terminate the employment of Executive with the Bank at
will, with or without cause, upon delivery of written notice to Executive
(except in the case of death of Executive, in which event termination shall
automatically occur at the date of death), and including, but not limited to,
for any of the following grounds:

4.1.1        Willful breach or habitual neglect or inability
(except where such inability is due to Disability or death) to perform
Executive’s duties hereunder, including without limitation failure to cooperate
with the Bank Board in the structuring, documentation or negotiation of a
transaction that might result in a Change of Control;

4.1.2        Malfeasance or misfeasance in the performance of
Executive’s duties hereunder, imposition of a regulatory order to remove
Executive, failure to comply with a direction by the Chief Executive Officer of the Bank, material breach of Bank
policy or procedure, or breach of this Agreement;

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4.1.3        Immoral or illegal conduct, conviction of a felony,
conviction of a misdemeanor involving moral turpitude;

4.1.4        Disability or death;

4.1.5        Determination in the complete discretion of the Bank
Board that the employment of Executive should be terminated prior to the
Expiration Date, without reference to the grounds set forth in
Paragraphs 4.1.1, 4.1.2, 4.1.3 or 4.1.4, and specification of the termination
date in the notice described in Paragraph 4.1.

4.2           Termination by Executive. 
Executive may terminate his employment with the Bank at will, for any
reason, and without advance notice. 
However, as a courtesy, Executive is requested to deliver written notice
to the Bank three (3) months in advance of the date such termination is to
take effect, except with respect to a termination for Good Cause.  Executive may terminate his employment with
the Bank prior to the Expiration Date for Good Cause upon thirty (30) days
notice to the Bank and the Bank’s failure to cure within that time.  To be effective, such notice must be given by
Executive within fifteen (15) days of the occurrence of the event that
constitutes Good Cause, provided that if Good Cause results from a material
reduction in the duties or authority of Executive so that he is no longer
performing substantially all of the duties of a chief credit officer of a
community bank and such reduction occurs before a Change of Control occurs and
continues after the Change of Control occurs, Executive shall be required to
give the thirty (30) day notice described above within fifteen (15) days of the
Change of Control.

4.3           Termination Upon Expiration. 
Should Executive remain employed under this Agreement through the date
five (5) months prior to the Expiration Date, Executive shall have the
right, while he is still employed, to provide written notice to the Bank of his
desire to remain employed after the Expiration Date on or before the date four
(4) months prior to the Expiration Date. 
If Executive and the Bank have not entered into an amendment of this
Agreement extending its term or another written agreement replacing this
Agreement on or prior to the date three (3) months prior to the Expiration
Date, and Executive’s employment is not otherwise terminated, Executive’s
employment shall automatically terminate on the Expiration Date.  If such an extension or replacement is not
entered into on or prior to three (3) months prior to the Expiration Date,
Executive shall be deemed to have been given advance notice by the Bank that
his employment with the Bank will terminate as of the Expiration Date.  Nothing in this Paragraph shall
prejudice the at-will status of Executive or require the Bank to negotiate with
Executive.

4.4           Post-Notice Activities of Executive. 
In the event termination is not effective immediately upon the delivery
of notice of termination by the Bank or Executive, the Bank shall have the
right to require that during the period between the giving of notice and the
effective date of termination, Executive’s activities and responsibilities be
curtailed as deemed appropriate by the Bank. 
Such curtailment shall include, without limitation, removing Executive
from corporate offices, requiring Executive to be physically absent from the
Bank’s facilities, and eliminating Executive’s access to computer systems,
e-mail and telephone systems.

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4.5           Automatic Resignations.  Upon notice
of termination of employment Executive shall, automatically and without further
action by any party, be deemed to have resigned from all directorships with the
Bank and any of its subsidiaries and affiliates.  Upon termination of employment, Executive
shall, automatically and without further action by any party, be deemed to have
resigned from all offices and other capacities with the Bank and any of its
subsidiaries and affiliates.

5.             Post-Termination Payments and Benefits. 
The following are the post-termination payments and benefits to which
Executive is entitled upon termination of employment with the Bank.

5.1           Termination Resulting from Breach. 
In the event the employment of Executive is terminated under
Paragraphs 4.1.1, 4.1.2 or 4.1.3, the Bank shall provide Executive only a
payout of all accrued but unused vacation as of the date of termination, the
base salary and Benefits, if any, then-provided, on the terms then-provided,
due him through the date of termination and shall not be obligated to provide
any other compensation or Benefits.

5.2           Other Terminations.

5.2.1        Payments – Disability.  In the event
the employment of Executive is terminated under Paragraphs 4.1.4 for
disability, the Bank shall provide Executive only the following:

(a)           the salary due Executive as of the date of
termination;

(b)           payment of certain incentive compensation due
Executive, if any, in compliance with the Plan;

(c)           a payout of all accrued but unused vacation as of the
date of termination; and

(d)           continuation of the group medical and other insurance
benefits, if any, then-provided under Paragraph 3.6, for a period of three
(3) months from the date of termination, subject to the limitations of and
to the extent permitted by the policy or policies under which such benefits are
provided.

5.2.2        Payments – Death.  In the event
the employment of Executive is terminated under Paragraphs 4.1.4 for
death, the Bank shall provide the Beneficiary only the following:

(a)           the salary due Executive as of the date of death plus
a lump sum payment equal to three (3) months of the base salary at the rate
then in effect in accordance with Paragraph 3.1;

(b)           payment of certain incentive compensation due
Executive, if any, in compliance with the Plan;

 7
 

(c)           a payout of all accrued but unused vacation as of the
date of termination; and

(d)           continuation of the group medical and other insurance
benefits, if any, then-provided under Paragraph 3.6, for a period of three
(3) months from the date of termination, subject to the limitations of and
to the extent permitted by the policy or policies under which such benefits are
provided.

5.2.3        Payments – Termination Under Paragraph 4.1.5. 
In the event the employment of Executive is terminated under
Paragraph 4.1.5 or under Paragraph 4.2 for Good Cause, subject to
Executive first entering into the Separation Agreement and such agreement being
fully effective, the Bank shall provide Executive only the following:

(a)           continued salary at the rate then in effect under
Paragraph 3.1 and the automobile allowance then provided under Paragraph 3.4
for a period of nine (9) months from the date notice of termination is
delivered to the Executive, or at the option of the Bank a lump sum payment of
such amount, all subject to withholding;

(b)           payment of certain incentive compensation due
Executive, if any, in compliance with the Plan, with Executive’s termination
under this Paragraph 5.2.3 being considered for the limited purpose of
interpreting the Plan in the context of this Agreement as being a termination “without
cause”;

(c)           a payout of all accrued but unused vacation as of the
date of termination; and

(d)           continuation of the group medical and other insurance
benefits, if any, then-provided under Paragraph 3.6, for a period of nine
(9) months from the date of termination, subject to the limitations of and
to the extent permitted by the policy or policies under which such benefits are
provided.

5.2.4        Executive’s Right to Waive Payments. 
Executive shall have the right to waive his rights to receive such
payments and Benefits otherwise due under this Paragraph 5.2 by giving
advance written notice of such waiver to the Bank.  After receipt of such notice, the Bank shall
have no further obligation to provide any payments or Benefits under this
Paragraph 5.2.

5.3           Change of Control.

5.3.1        Payment Following Certain Terminations Related to
Change of Control.  Subject to Executive first entering into the
Separation Agreement and such agreement being fully effective, in respect of
any Change of Control Termination the Bank shall pay to Executive the Change of
Control Severance Benefits in a lump sum (except for the benefits under
Paragraph 3.6, which shall be continued) within five (5) days following
the date the Separation Agreement is fully effective.

5.3.2        Executive’s Right to Waive Payments. 
Executive shall have the right to waive his rights to receive payments
and Benefits otherwise due under this Paragraph 5.3

 8
 

by giving advance written notice of such waiver to the
Bank.  After receipt of such notice, the
Bank shall have no further obligation to provide any payments or Benefits under
this Paragraph 5.3.

5.3.3        Adjustments in Payments.  The terms of
this Paragraph 5.3.3 override and control any and all other terms of this
Agreement to the extent inconsistent with this Paragraph 5.3.3.  This Paragraph 5.3.3 shall apply to the
extent that the aggregate present value of any or all payments and benefits in
the nature of compensation to (or for the benefit of) Executive provided under
this Agreement or otherwise provided to Executive by or on behalf of the Bank
or any affiliate, parent or controlling entity of the Bank, constitute a “parachute
payment” under the provisions of Section 280G of the Code, and the
regulations thereunder (the “Total Payments”).  In the event that the Total Payments would
exceed an amount equal to 299% of Executive’s “base amount” as that term is
defined in Section 280G of the Code, as determined by the independent
public accountants for the Bank, Executive and the Bank agree that the payments
or benefits provided to Executive under this Agreement shall be reduced (or the
parties shall agree to a reduction in other payments or benefits included in
the Total Payments to the extent legally and contractually permissible) so that
the present value of the total amount received by Executive that would
constitute a “parachute payment” will be one dollar ($1.00) less than three (3)
times Executive’s base amount (as defined in Section 280G of the Code) and so
that no portion of the payment or benefits received by Executive would be
subject to the excise tax imposed by Section 4999 of the Code.

5.4           Termination at Expiration Date.  If Executive’s employment is terminated as a
result of expiration of this Agreement at the Expiration Date, subject to
Executive first entering into the Separation Agreement and such agreement being
fully effective, the Bank shall provide Executive only the following:

5.4.1        continued salary at the rate then in effect under
Paragraph 3.1 for a period of six (6) months from the date of termination, or
at the option of the Bank a lump sum payment of such amount, all subject to
withholding;

5.4.2        continuation of the group medical and other insurance
benefits, if any, then-provided under Paragraph 3.6, for a period of six (6)
months from the date of termination, subject to the limitations of and to the
extent permitted by the policy or policies under which such benefits are
provided;

5.4.3        a payout of all accrued but unused vacation as of the
date of termination; and

5.4.4        payment of certain incentive compensation due
Executive, if any, in compliance with the Plan, with Executive’s termination as
a result of expiration being considered for the limited purpose of interpreting
the Plan in the context of this Agreement as being a termination “without
cause.”

5.5           Consideration for Payments and Remedies. 
Without limiting any other remedies available to the Bank, the payments
to be made under Paragraphs 5.2, 5.3 or 5.4 (subject to the exceptions
stated therein) after the date of termination of Executive’s employment

 9
 

shall be subject to Executive’s execution of the
Separation Agreement, and Executive’s continued compliance with the Separation
Agreement and the terms of this Agreement that are effective after termination
of Executive’s employment, through the making of the last such payment.

5.6           Death Following Termination. 
In the event that Executive dies while receiving any payments under this
Paragraph 5, such payments shall be continued for the benefit of the
Beneficiary, as would otherwise be required under this Paragraph 5.

5.7           Nonassignability.  Neither
Executive nor any other person or entity shall have any power or right to
transfer, assign, anticipate, hypothecate, mortgage, commute, modify, or
otherwise encumber in advance any of the rights or benefits of Executive under
this Paragraph 5, nor shall any of said rights or benefits be subject to
seizure for the payment of any debts, judgments, alimony or separate
maintenance, owed by Executive or any other person or entity, or be
transferable by operation of law in the event of bankruptcy, insolvency or
otherwise.  The terms of this Paragraph 5.7
shall not affect the interpretation of any provision of this Agreement.

5.8           Claims Procedure.  The Bank
Board shall make all determinations as to rights to benefits under this
Paragraph 5.

5.9           Regulatory Restrictions.  The parties
understand and agree that at the time any payment would otherwise be made or
benefit provided under this Paragraph 5, depending on the facts and
circumstances existing at such time, the satisfaction of such obligations by
the Bank may be deemed by a regulatory authority to be illegal, an unsafe and
unsound practice, or for some other reason not properly due or payable by the
Bank.  Among other things, the
regulations at 12 C.F.R. Part 30, Appendix A promulgated pursuant to Section 39(a) of
the Federal Deposit Insurance Act, and at 12 C.F.R. Part 359, or similar
regulations or regulatory action following similar principles may apply at such
time.  The Bank agrees that to the extent
reasonably feasible, it will in good faith seek to determine the position of
the appropriate regulatory authority in advance of each payment or benefit
otherwise due under this Paragraph 5, including seeking the approval or
acquiescence of the appropriate regulatory authorities, if required.  The parties understand, acknowledge and agree
that, notwithstanding any other provision of this Agreement, the Bank shall not
be obligated to make any payment or provide any benefit under this
Paragraph 5 where (i) an appropriate regulatory authority does not
approve or acquiesce as required or (ii) the Bank has been informed either
orally or in writing by a representative of the appropriate regulatory
authority that it is the position of such regulatory authority that making such
payment or providing such benefit would constitute an unsafe and unsound
practice, violate a written agreement with the regulatory authority, violate an
applicable rule, law or regulation, or would cause the representative of the
regulatory authority to recommend enforcement action against the Bank.

5.10         Right of Offset. Any and all of the compensation and benefits that
would otherwise be provided under this Paragraph 5 are subject to the Bank’s
offset for any liability of Executive to the Bank to the extent the Bank Board
determines that such liability exists. 
In addition, without limiting the remedies of the Bank otherwise
available under this Agreement or otherwise, all compensation and benefits that
would otherwise be payable under this Paragraph 5

 10
 

shall cease as of the date Executive first violates
any of the provisions included in Paragraphs 6.4, 6.5 or 6.6.

5.11         Overlapping Benefits and Payments. 
In the event that Executive receives payments and/or benefits under one
of Paragraphs 5.1 through 5.4, inclusive, Executive may not receive
payments and/or benefits under one of the other of such Paragraphs, and the
first such applicable of those Paragraphs shall apply.

5.12         Delayed Payments.  In the event
that Code Section 409A (“409A”)
applies to any compensation with respect to a separation from service, payment
of that compensation shall be delayed if Executive is a “specified employee,”
as defined in 409A(a)(2)(B)(i), and such delayed payment is required by
409A.  Such delay shall last six months
from the date of separation from service. 
On the day following the end of such six-month period, the Bank shall
make a catch-up payment to Executive equal to the total amount of such payments
that would have been made during the six-month period but for this Section
5.12, plus interest calculated at the prime rate as reported in The Wall Street
Journal.

6.             Additional Covenants.

6.1           Insurance.  The Bank
shall have the right to obtain and hold a “keyman” life insurance policy on the
life of Executive and disability insurance covering Executive, in each case,
with the Bank as beneficiary of such policy. 
Executive agrees to provide any information required for the issuance of
any such policy and submit himself to any physical examination required for any
such policy.

6.2           Unsecured General Creditor. 
Neither Executive nor any other person or entity shall have any legal
right or equitable rights interests or claims in or to any property or assets
of the Bank under the provisions of this Agreement.  No assets of the Bank shall be held under any
trust for the benefit of Executive or any other person or entity or held in any
way as security for the fulfilling of the obligations of the Bank under this
Agreement.  All of the Bank’s assets
shall be and remain the general, unpledged, unrestricted assets of the
Bank.  The Bank’s obligations under this
Agreement are unfunded and unsecured promises, and to the extent such promises
involve the payment of money, they are promises to pay money in the
future.  Executive and any person or
entity claiming through him shall be unsecured general creditors with respect
to any rights or benefits hereunder.

6.3           Dispute Resolution. 
Simultaneously with the execution of this Agreement, the parties have
entered into the Arbitration Agreement attached as Exhibit C, which the
parties agree shall govern the resolution of any and all disputes referenced
therein.

6.4           Return of Documents.  Executive
expressly agrees that upon termination of employment he will return to the Bank
all Bank manuals, document, files, reports, studies, customer lists, business
plans, loan and deposit program plans and outlines, customer solicitation and
follow-up techniques and plans, marketing plans, employee policies, incentive
compensation arrangements, instruments, software, and other materials used
and/or developed by Executive during his employment, whether in paper, computer
readable, computer coded, magnetic, compact disk or other tangible or
electronic form.

 11
 

6.5           Confidentiality.

6.5.1        No Disclosure.  During the
term of employment with the Bank, Executive will have access to and become
acquainted with various Trade Secrets and Other Proprietary and Confidential
Information which are owned by the Bank and which are used in the operation of
the Bank’s business, the wrongful use or disclosure of which to the public or
competitors of the Bank would materially adversely affect the business and
prospects of the Bank.  Executive shall
not disclose or use in any manner, directly or indirectly, any Trade Secrets
and Other Proprietary and Confidential Information either during his employment
with the Bank or at any time thereafter, except as required in the course of
employment with the Bank.

6.5.2        Nonsolicitation of Business. 
Without limiting Paragraph 6.5.1, Executive agrees that for a period of
twelve (12) months following the termination of his employment with the Bank,
Executive will not, directly or indirectly, solicit, attempt to solicit,
divert, or attempt to divert any customers of the Bank or any business the Bank
or a subsidiary or affiliate had enjoyed or solicited from its customers,
borrowers, depositors or investors by using any Trade Secrets and Other
Proprietary and Confidential Information.

6.6           Business Protection Covenants.

6.6.1        Covenant Not to Compete.  Executive
agrees that he will not, during the course of employment, voluntarily or
involuntarily, directly or indirectly, (i) engage in any banking or
financial products or service business, loan origination or deposit-taking
business or any other business competitive with that of the Bank, its
subsidiaries or affiliates (“Competitive Business”) within the County of
San Diego (the “Market Area”), (ii) own, manage, operate,
control, be employed by, or provide management or consulting services in any
capacity to any firm, corporation, or other entity (other than the Bank or its
subsidiaries or affiliates) engaged in any Competitive Business in the Market
Area, or (iii) solicit or otherwise intentionally cause any member of the
Bank Board or any employee or officer of the Bank or any of its subsidiaries or
affiliates to engage in any action prohibited under (i) or (ii) of
this Paragraph 6.6.1.

6.6.2        Inducing Employees To Leave The Bank; Employment of
Employees.  Any attempt on the part of Executive to
induce others to leave the Bank’s employ, or the employ of any of its
subsidiaries or affiliates, or any effort by Executive to interfere with the
Bank’s relationship with its other employees would be harmful and damaging to
the Bank.  Executive agrees that during
the term of employment and during any period following the termination of his
employment during which he is receiving compensation or benefits under
Paragraphs 5.2, 5.3 or 5.4, Executive will not in any way, directly or
indirectly (i) induce or attempt to induce any employee of the Bank or any
of its subsidiaries of affiliates to quit employment with the Bank or the
relevant subsidiary or affiliate; (ii) otherwise interfere with or disrupt
the relationships between the Bank and its subsidiaries and affiliates and
their respective employees; (iii) solicit, entice, or hire away any employee
of the Bank or any of its subsidiaries or affiliates; or (iv) hire or
engage any employee of the Bank or any subsidiary or affiliate or any former
employee of the Bank or any subsidiary or affiliate whose employment with the
Bank or

 12
 

the relevant subsidiary or affiliate ceased after the
date of termination of Executive’s employment with the Bank.

6.7           Equitable Relief. 
Executive acknowledges and agrees that irreparable injury will result to
the Bank in the event of a breach of any of the provisions of this Paragraph 6
(the “Designated Provisions”) and that the Bank will have no adequate
remedy at law with respect thereto. 
Accordingly, in the event of a material breach of any Designated
Provision, and in addition to any other legal or equitable remedy the Bank or
its subsidiaries or affiliates may have, the Bank and any relevant subsidiary
or affiliate shall be entitled to the entry of a preliminary and permanent
injunction (including, without limitation, specific performance) to restrain
the violation or breach thereof by Executive or any affiliates, agents, or any
other persons acting for or with Executive in any capacity whatsoever, and
Executive submits to the jurisdiction of such court in any such action.  Any such remedy shall be granted pursuant to
the dispute resolution procedures applicable under Paragraph 6.3.

6.8           Severability. 
It is the desire and intent of the parties that the provisions of this
Paragraph 6 shall be enforced to the fullest extent permissible under the
laws and public policies applied in each jurisdiction in which enforcement is
sought.  Accordingly, if any particular
provision of this Paragraph 6 shall be adjudicated or found to be invalid
or unenforceable, such provisions shall be deemed amended to delete therefrom
the portion thus adjudicated or found to be invalid or unenforceable, such
deletion to apply only with respect to the operation of such provision in the
particular jurisdiction in which such adjudication or finding is made.  In addition, should any court or arbitrator
determine that the provisions of this Paragraph 6 shall be unenforceable
with respect to scope, duration, or geographic area, such court or arbitrator
shall be empowered to substitute, to the extent enforceable, provisions similar
hereto or other provisions so as to provide to the Bank, to the fullest extent
permitted by applicable law, the benefits intended by this Paragraph 6.

6.9           Indemnification. 
To the fullest extent permitted by law and in accordance with the
procedures and substantive requirements imposed by law and applicable
regulation (including 12 C.F.R. Part 359, or similar regulations or regulatory
action following similar principles), the Bank shall indemnify Executive in the
event he was or is a party or is threatened to be made a party in any action brought
by a third party against Executive (whether or not the Bank is joined as a
party defendant) against expenses, judgments, fines, settlement, and other
amounts actually and reasonably incurred in connection with said action,
provided Executive acted in good faith and in a manner Executive reasonably
believed to be in the best interests of the Bank, and provided the alleged
conduct of Executive arose out of and was within the course and scope of his
employment as an officer or employee of the Bank.  This Paragraph 6.7 shall not limit any
other rights to indemnification that Executive may now or hereafter have by law
or under the articles, bylaws or resolutions of the Bank or otherwise.

7.             Other Agreements.

7.1           Bank Policies and Manuals. 
The parties further agree that to the extent of any inconsistency
between this Agreement and any employee manual or policy of the Bank, that the
terms of this Agreement shall supersede the terms of such employee manual or
policy.

 13
 

7.2           Outstanding Stock Options. 
The provisions of this Agreement are not and shall not be interpreted to
change the terms of any outstanding stock options previously granted by the
Bank to Executive.  Without limiting the
foregoing, the provisions regarding the grant of options to Executive set forth
in Paragraph 4.4 of the Former Employment Agreement are not amended by this
Agreement and shall be deemed included in this Agreement, and the references in
that paragraph to other provisions of the Former Employment Agreement are
hereby incorporated by reference for the limited purpose of continuing to
effectuate the agreement of the parties set forth in Paragraph 4.4 of the
Former Employment Agreement.  The parties
intend that this Agreement be considered as establishing an “extended term” for
purposes of that provision.

8.             General Provisions.

8.1           Notices.  Unless
otherwise specifically permitted by this Agreement, all notices or other
communications required or permitted under this Agreement shall be in writing,
and shall be personally delivered or sent by registered or certified mail,
postage prepaid return receipt requested, or sent by facsimile, provided that
the facsimile cover sheet contain a notation of the date and time of
transmission, and shall be deemed received: (i) if personally delivered,
upon the date of delivery to the address of the person to receive such notice,
(ii) if mailed in accordance with the provisions of this paragraph, two
(2) business days after the date placed in the United States mail,
(iii) if mailed other than in accordance with the provisions of this
paragraph or mailed from outside the United States, upon the date of
delivery to the address of the person to receive such notice, or (iv) if
given by facsimile, when sent.  Notices
shall be given at the following addresses:

If to Executive:

Richard H. Revier

7728 Regents Road, Suite 503

San Diego, CA  92122

Fax:  [                      ]

If to the Bank:

James G. Knight,
M.D.

Chairman

1st Pacific Bank of California

c/o 6907 Camino Degrazia

San Diego, CA  92111

Fax:  619-222-8216

 14
 

With a copy to:

Kurt L.
Kicklighter, Esq.

Luce, Forward, Hamilton & Scripps LLP

601 West Broadway, Suite 2600

San Diego, CA  92101

Fax:  619-645-5339

The relevant party may change the address for delivery of notices by
giving notice of such change in accordance with this paragraph.

8.2           Complete Agreement; Modifications. 
This Agreement and written agreements, if any, entered into concurrently
herewith (i) constitute the parties’ entire agreement, including all
terms, conditions, definitions, warranties, representations, and covenants,
with respect to the subject matter hereof, (ii) merge all prior
discussions and negotiations between or among any or all of them as to the
subject matter hereof, and (iii) supersede and replace all terms,
conditions, definitions, warranties, representations, covenants, agreements,
promises and understandings, whether oral or written, with respect to the
subject matter hereof.  This Agreement
may not be amended, altered or modified except by a writing signed by the party
to be bound.  With respect to the Bank,
such amendment, alteration or modification may only be made on behalf of the
Bank by the Chairperson of the Personnel Committee of the Bank Board, the
Chairperson of the Bank Board or another person specifically designated by the
Bank Board.  With regard to such
amendments, alterations, or modifications, facsimile signatures shall be
effective as original signatures.  Any
amendment, alteration, or modification requiring the signature of more than one
party may be signed in counterparts.

8.3           Further Actions.  Each party
agrees to perform any further acts and execute and deliver any further
documents reasonably necessary to carry out the provisions of this Agreement.

8.4           Assignment.  No party may
assign its rights under this Agreement without the prior written consent of the
other parties hereto.

8.5           Successors and Assigns.  Except as
explicitly provided herein to the contrary, this Agreement shall be binding
upon and inure to the benefit of the parties, their respective successors and
permitted assigns.

8.6           Termination and Survival. 
Upon the termination of the employment of Executive, the Bank may
terminate this Agreement upon notice to Executive, which may be provided at the
time notice of termination of employment is provided by either party.

8.6.1        The obligations of Executive and the rights of the
Bank under Paragraphs 4.5, 5.9, 5.10, 5.11 and 6.3 through and including
6.6 shall survive the termination of this Agreement, provided that if Executive
and the Bank have entered into the Separation Agreement, the dispute resolution
provisions of the Separation Agreement shall apply to and govern any and all
disputes related to this Agreement.

 15
 

8.6.2        The obligations of the Bank to Executive which by
their terms are to continue after termination of employment under
Paragraph 5 shall survive such termination of employment and termination
of the Agreement.  The notice provisions
of Paragraph 8.1 and this Paragraph 8.6 shall survive termination of
employment and termination of the Agreement.

8.6.3        Notwithstanding any provision of this Agreement to the
contrary, this Agreement shall terminate and, therefore, among other things,
none of the provisions providing for compensation or benefits to Executive
shall be of any effect, in the event that the Bank is placed into a
conservatorship or receivership, it loses its Federal deposit insurance, or its
banking charter is revoked.

8.7           Severability.  If any
portion of this Agreement shall be held by a court of competent jurisdiction to
be invalid, void, or otherwise unenforceable, the remaining provisions shall
remain enforceable to the fullest extent permitted by law if enforcement would
not frustrate the overall intent of the parties (as such intent is manifested
by all provisions of the Agreement including such invalid, void, or otherwise
unenforceable portion).

8.8           Extension Not a Waiver.  No delay or
omission in the exercise of any power, remedy, or right herein provided or
otherwise available to any party shall impair or affect the right of such party
thereafter to exercise the same.  Any
extension of time or other indulgence granted to a party hereunder shall not
otherwise alter or affect any power, remedy or right of any other party, or the
obligations of the party to whom such extension or indulgence is granted except
as specifically waived.

8.9           Time of Essence.  Time is of
the essence of each and every term, condition, obligation and provision hereof.

8.10         No Third Party Beneficiaries. 
This Agreement and each and every provision hereof is for the exclusive
benefit of the parties hereto and not for the benefit of any third party.

8.11         Headings.  The headings
in this Agreement are inserted only as a matter of convenience, and in no way
define, limit, or extend or interpret the scope of this Agreement or of any
particular provision hereof.

8.12         References.  A reference
to a particular paragraph of this Agreement shall be deemed to include
references to all subordinate paragraphs, if any.

8.13         Counterparts.  This
Agreement may be signed in multiple counterparts with the same force and effect
as if all original signatures appeared on one copy; and in the event this
Agreement is signed in counterparts, each counterpart shall be deemed an
original and all of the counterparts shall be deemed to be one agreement.

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

8.15         Representation by Counsel. 
This Agreement has been negotiated by the parties with the assistance of
their respective counsel and at their own cost and expense.  For this

 16
 

reason the principal that an agreement shall be
interpreted against the party that drafted it shall not apply to this
Agreement.

IN WITNESS WHEREOF, the undersigned have executed this
Agreement as of the dates set forth below.

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
  Richard H. Revier

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  1st PACIFIC BANK
  OF CALIFORNIA, a

  
	
   

  	
  California
  state-chartered bank

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
    A. Vincent Siciliano, President and CEO

  

 

 17

EXHIBIT A

1st PACIFIC BANK OF CALIFORNIA INCENTIVE
COMPENSATION PLAN FOR

SENIOR MANAGEMENT

EXHIBIT B

SEPARATION AGREEMENT

AND

GENERAL RELEASE OF CLAIMS

This Separation Agreement and General Release of Claims (this “Agreement”)
is entered into by and between Richard H. Revier (“Employee”) and 1st Pacific Bank of
California, a California state bank (the “Bank”).

RECITALS

A.    Employee commenced employment with Bank on or about                  .  Employee’s employment with the Bank
terminated on                   ,
         .

B.    Employee and the Bank desire to settle and compromise
any and all possible claims against the Bank by Employee arising out of their
relationship to date, including Employee’s employment with the Bank and the
termination of Employee’s employment, and to provide for a general release of
any and all such claims.

AGREEMENT

1.     Separation Pay/Consideration. 
In consideration of the covenants and releases set forth herein, the
Bank agrees to pay Employee the amount payable to him and the non-monetary
consideration (if any) due him, pursuant to and in accordance with,
Paragraphs 5.2, 5.3 or 5.4, as the case may be, of the Employment
Agreement dated November 17, 2005, by and between the Bank and Employee (the “Employment
Agreement”), less all applicable state and federal deductions (in each
case, the “Payment”), $2,000 of which shall be consideration for
Employee’s release of ADEA claims as set forth in Section 3, below;
provided that no such Payment shall be made until at least eight (8) days
have past since Employee’s execution of this Agreement.  The check representing the Payment shall be
mailed to Employee at his/her home address at                            .

2.     Release of All Claims Except Age Discrimination in
Employment Act of 1967 (“ADEA”) Claims.

a.     In consideration of the payment and other benefits
described in Section 1, which Employee would otherwise not be entitled to
except for signing this Agreement, Employee does hereby unconditionally,
irrevocably and absolutely release and discharge the Bank and any related
holding, parent, sister or subsidiary entities and all of their respective
boards of directors, officers, employees, agents, volunteers, attorneys,
insurers, divisions, successors and assigns from any and all loss, liability, claims,
demands, causes of action or suits of any type, whether in law and/or in
equity, related directly or indirectly, or in any way connected with any
transaction, affairs or occurrences between them to date, including, but not
limited to, Employee’s employment with the Bank and the termination of said
employment.  This Agreement specifically
applies, without limitation, to any and all contract or tort claims, claims for
wrongful termination, wage claims, and claims arising under Title VII of the
Civil Rights Act

of 1991, the Americans
with Disabilities Act, the Equal Pay Act, the California Fair Employment and
Housing Act, the Fair Labor Standards Act, the Family and Medical Leave Act,
the California Family Rights Act, the California Labor Code, and any and all
federal or state statutes or provisions governing the employment relationship
or discrimination in employment except the federal statute specifically
excluded hereafter.  This release
specifically excludes any and all loss, liability, claims, demands, causes of
action or suits of any type arising under the ADEA.  Employee’s release of ADEA claims will be
addressed separately in Section 3 of this Agreement.

b.     Employee irrevocably and absolutely agrees that he/she
will not prosecute nor allow to be prosecuted on his/her behalf, in any
administrative agency, whether federal or state, or in any court, whether
federal or state, any claim or demand of any type related to the matters
released above, it being the intention of the parties that with the execution
by Employee of this release, the Bank and any related holding, parent, sister
or subsidiary corporations or entities and all of their respective boards of
directors, officers, employees, agents, volunteers, attorneys, insurers,
divisions, successors and assigns will be absolutely, unconditionally and
forever discharged of and from all obligations to or on behalf of Employee
related in any way to the matters discharged herein.

3.     Release of All ADEA Claims.

a.     This section of the Agreement exclusively addresses
Employee’s release of claims arising under federal law involving discrimination
on the basis of age in employment (age 40 and above).  This section is provided separately, in
compliance with federal law, including but not limited to the Older Workers’
Benefit Protection Act of 1990, to ensure that Employee clearly understands
his/her rights so that any release of age discrimination claims under federal
law (the ADEA) is knowing and voluntary on the part of Employee.

b.     Employee represents, acknowledges and agrees that the
Bank has advised him/her, in writing, to discuss this Agreement with an
attorney, and to the extent, if any, that Employee has desired, Employee has
done so; that the Bank has given Employee twenty-one (21) days from receipt of
this Agreement to review and consider this Agreement before signing it, and
Employee understands that he/she may use as much of this twenty-one (21) day
period as he/she wishes prior to signing; that no promise, representation,
warranty or agreements not contained herein have been made by or with anyone to
cause him/her to sign this Agreement; that he/she has read this Agreement in
its entirety, and fully understands and is aware of its meaning, intent,
content and legal effect; and that he/she is executing this release voluntarily
and free of any duress or coercion.

c.     The parties acknowledge that for a period of seven
(7) days following the execution of this Agreement, Employee may revoke
the Agreement, and the Agreement shall not become effective or enforceable
until the revocation period has expired. 
This Agreement shall become effective eight (8) days after it has
been signed by Employee and the Bank, and in the event the parties do not sign
on the same date, then this Agreement shall become effective eight
(8) days after the date it is signed by Employee.

d.     In consideration of the separation payment and other
benefits made to Employee described in Section 1 of this Agreement, which
Employee would otherwise not be entitled to except for signing this Agreement,
Employee does hereby unconditionally, irrevocably and absolutely release and
discharge the Bank and any related holding, parent, sister or subsidiary
entities and all of their respective boards of directors, officers, employees,
agents, volunteers, attorneys, insurers, divisions, successors and assigns from
any and all loss, liability, claims, demands, causes of action or suits of any
type arising under the ADEA and related directly or indirectly to Employee’s
employment with the Bank and the termination of said employment.

4.     Section 1542 Waiver. 
Employee does expressly waive all of the benefits and rights granted to
him/her pursuant to California Civil Code section 1542, which reads:

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

Employee does certify
that he/she has read all of this Agreement, including the release provisions
contained herein and the quoted Civil Code section, above, and that he/she
fully understands all of the same. 
Employee hereby expressly agrees that this Agreement shall extend and
apply to all unknown, unsuspected and unanticipated injuries and damages
(including, without limitation, those arising under the ADEA), as well as those
injuries and damages that are now disclosed.

5.     Confidentiality.  Employee
agrees that all matters relative to this Agreement, including the negotiations
leading up to this Agreement and its terms, shall remain confidential.  Accordingly, Employee hereby agrees that,
with the exception of his/her spouse, regulatory agencies of the Bank and tax
and legal advisors, he/she will not discuss, disclose or reveal to any other
persons, entities or organizations, whether within or outside of the Bank, the
terms and conditions of this Agreement.

6.     Non-Disparagement.  Employee
agrees that he/she will not disparage the Bank or any of its directors,
employees, agents or volunteers or otherwise interfere with the Bank’s
business, vendor or other relationships. 
Employee agrees not to make any derogatory or adverse statements,
written or verbal, to anyone regarding the Bank or any of its present or former
directors, employees, agents or volunteers. 
The Bank agrees that it will neither disparage Employee nor make any
derogatory or adverse statements, written or verbal, to anyone regarding
Employee.  If an arbitrator determines
that the Bank has breached its obligations under this Section 6, to the
extent the Payment has not been paid in full, the Bank shall be required to
make the Payment in full to Employee within five (5) days following such
arbitrator’s determination.  Nothing in
this Section 6 shall prohibit or relate to any statement by any person to any
bank regulatory agency.

7.     Entire Agreement.  The parties
further declare and represent that no promise, inducement or agreement not
herein expressed has been made to them and that this Agreement

contains the full and
entire agreement between and among the parties, and that the terms of this
Agreement are contractual and not a mere recital.

8.     Future Employment.  Employee
agrees that the Bank will not be obligated to offer employment to him/her or to
hire him/her for any reason, regardless of the circumstances, at any time on or
after the date of this Agreement. 
Employee agrees that he/she will not apply for nor accept any such
employment.

9.     Trade Secret/Proprietary Information. 
Employee hereby reaffirms his/her obligations under his/her Employment
Agreement with the Bank to which this Agreement relates, which shall remain in
effect to the extent provided in the Employment Agreement.  Employee further agrees that he/she shall not
disclose to any person(s) or entity(ies) at any time or in any manner,
directly or indirectly, any information relating to the operations of the Bank
which has not already been disclosed to the general public.  Employee agrees that this provision includes,
but is not limited to, the following information: proprietary information
and/or trade secrets; secret formulae; customer lists and/or names; product and
service prices; customer charges; contracts; contract negotiations and employee
relations matters.  Employee understands
and agrees that this list is not all-inclusive.

10.   Return of Company Property. 
Employee agrees to promptly return all property or information belonging
to the Bank, including all keys, computers, cellular telephones, and any
document or property Employee generated during his/her employment at the Bank,
and agrees that no such property will be in his/her possession or control at
the time he/she receives the consideration specified in Section 1.  This includes all property or information
that may have come into his/her possession as a result of his/her employment
with the Bank.  Employee further
acknowledges that he/she has not retained any copies of any such information.

11.   Applicable Law.  The validity,
interpretation, and performance of this Agreement shall be construed and
interpreted according to the laws of the State of California.

12.   Dispute Resolution.  Any dispute
arising out of or related to this Agreement shall be resolved through binding
arbitration through JAMS/Endispute in San Diego, California, under the
then current applicable rules of JAMS/Endispute.  Each party shall be responsible for its or
his/her own costs and attorneys’ fees in connection with the arbitration.

13.   Complete Defense.  This
Agreement may be pleaded as a full and complete defense against any action,
suit or proceeding which may be prosecuted, instituted or attempted by either
party in breach thereof.

14.   Severability.  If any
provision of this Agreement, or part thereof, is held invalid, void or voidable
as against public policy or otherwise, the invalidity shall not affect other
provisions, or parts thereof, which may be given effect without the invalid
provision or part.  To this extent, the
provisions, and parts thereof, of this Agreement are declared to be severable.

15.   No Admission of Liability. 
It is understood that this Agreement is not an admission of any
liability by the Bank

16.   Successors and Assigns.  This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective heirs, legal representatives, successors and assigns.

17.   Counterparts.  This
Agreement may be signed in counterparts. 
A facsimile signature shall have the same force and effect as an
original signature.

Employee and the Bank have read the foregoing
Agreement and know its contents and fully understand it.  Employee and the Bank acknowledge that they
have fully discussed this Agreement with their respective attorneys to the
extent desired, or have had the opportunity to do so, and fully understand the
consequences of this Agreement.  No party
is being influenced by any statement made by or on behalf of any of the other
party to this Agreement.  Employee and
the Bank have relied and are relying solely upon his/her or its own judgment,
belief and knowledge of the nature, extent, effect and consequences relating to
this Agreement and/or upon the advice of their own legal counsel concerning the
consequences of this Agreement.

IN WITNESS WHEREOF, the undersigned have executed this
Agreement on the dates shown below.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Richard H. Revier

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1st Pacific Bank of California:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  
							

 

EXHIBIT C

EXECUTIVE
ARBITRATION AGREEMENT

THIS EXECUTIVE ARBITRATION AGREEMENT (“Arbitration
Agreement”) is made by and between 1st Pacific Bank of California, a
California state-chartered bank (the “Bank”), and Richard H. Revier (the
“Executive”), effective as of the date that the Employment Agreement
between the Bank and Executive executed contemporaneously herewith (the “Employment
Agreement”), becomes effective.

The purpose of this Arbitration Agreement is to
establish final and binding arbitration for disputes arising out of Executive’s
employment, the Employment Agreement or the termination of Executive’s
employment.  Executive and the Bank
desire to arbitrate their disputes on the terms and conditions set forth below,
in order to gain the benefits of a speedy, impartial dispute-resolution
procedure.  Executive and the Bank agree
to the following:

1.             Claims Covered By The Arbitration Agreement.  Executive and the Bank mutually consent to
the resolution by final and binding arbitration of all claims or controversies
(“claims”) that the Bank may have against Executive or that Executive
may have against the Bank or against its officers, directors, partners,
employees, agents, pension or benefit plans, administrators, or fiduciaries, or
any subsidiary or affiliated company or corporation (collectively referred to
as the “Bank”), relating to, resulting from, or in any way arising out
of Executive’s employment relationship with the Bank, the Employment Agreement
and/or the termination of Executive’s employment relationship with the Bank, to
the extent permitted by law.  The claims
covered by this Arbitration Agreement include, but are not limited to, claims
for wages or other compensation due; claims for breach of any contract or
covenant (express or implied); tort claims; claims for discrimination and
harassment (including, but not limited to, race, sex, religion, national
origin, age, marital status or medical condition, disability, sexual
orientation, or any other characteristic protected by federal, state or local
law); claims for benefits (except where an employee benefit or pension plan
specifies that its claims procedure shall culminate in an arbitration procedure
different from this one); and claims for violation of any public policy,
federal, state or other governmental law, statute, regulation or ordinance.

2.             Required Notice Of Claims And Statute Of Limitations.  Executive may initiate arbitration by serving
or mailing a written notice to the Board of Directors of the Bank at the Bank’s
administrative headquarters, care of the Corporate Secretary.  The Bank may initiate arbitration by serving
or mailing a written notice to Executive at his last known address.  The written notice must specify the claims
asserted against the other party.  Notice
of any claim sought to be arbitrated must be served within the limitations
period established by applicable federal or state law.

3.             Arbitration Procedures.  After demand for arbitration has been made by
serving written notice under the terms of Section 3 of this Arbitration
Agreement, the party demanding arbitration shall file a demand for arbitration
with the American Arbitration Association (“AAA”).  Except as otherwise provided in this
Arbitration Agreement, the arbitration will be

 1
 

conducted according to the then applicable arbitration
rules of AAA for the arbitration of employment disputes.

4.             Discovery. 
Discovery shall be allowed and conducted pursuant to the then applicable
arbitration rules of AAA for the arbitration of employment disputes.

5.             Choice of Law.  The arbitrator shall apply the substantive law
(and the law of remedies, if applicable) of the State of California, or federal
law, or both, as applicable to the claim(s) asserted.  The arbitrator shall have authority to
resolve any dispute relating to the interpretation, applicability,
enforceability or formation of this Arbitration Agreement, including but not
limited to any claim that all or any part of this Arbitration Agreement is void
or voidable.

6.             Summary Judgment. 
Either party may file a motion for summary judgment with the
arbitrator.  The arbitrator is entitled
to resolve some or all of the asserted claims through such a motion.  The standards to be applied by the arbitrator
in ruling on a motion for summary judgment shall be the applicable laws as
specified in Section 5 of this Arbitration Agreement.

7.             Application For Emergency Injunctive And/Or Other
Equitable Relief.  Claims by the Bank
or Executive for emergency injunctive and/or other equitable relief relating to
unfair competition and/or the use and/or unauthorized disclosure of trade
secrets or confidential information shall be subject to the then current
version of the AAA’s Optional Rules for Emergency Measures of Protection set
forth within the AAA’s Commercial Dispute Resolution Procedures.  The AAA shall appoint a single emergency
arbitrator to handle the claim(s) for emergency relief.  The emergency arbitrator selected by the AAA
shall be either a retired judge or an individual experienced in handling
matters involving claims for emergency injunctive and/or other equitable relief
relating to unfair competition and the use or unauthorized disclosure of trade
secrets and/or confidential information.

8.             Arbitration Decision.  The arbitrator’s decision will be final and
binding.  The arbitrator shall issue a
written arbitration decision revealing the essential findings and conclusions
upon which the decision and/or award is based. 
A party’s right to appeal the decision is limited to grounds provided
under applicable federal or state law.

9.             Place Of Arbitration.  The arbitration will be at a mutually
convenient location, which must be within 50 miles of Executive’s last
employment location with the Bank.  If
the parties cannot agree upon a location, then the arbitration will be held at
AAA’s office nearest to Executive’s last employment location with the Bank.

10.           Severability.  Should any portion of this Arbitration
Agreement be found to be unenforceable, such portion will be severed from this
Arbitration Agreement, and the remaining portions shall continue to be
enforceable.

11.           Section Headings.  The section headings of this Arbitration
Agreement are intended solely for the convenience of reference and shall not in
any manner amplify, limit, modify or otherwise be used in interpretation of any
provisions hereof.

 2
 

12.           Construction.  This Arbitration Agreement shall not be
interpreted for or against any party on the basis that such party or its legal
representative caused part or all of this Arbitration Agreement to be drafted.

13.           Consideration.  The Bank’s offer to employ Executive, and the
promises by the Bank and Executive to arbitrate differences, rather than
litigate them before courts or other bodies, provide consideration for each
other.

14.           Fees and Costs.  Each party may be represented by an attorney
or other representative selected by the party. 
Each party shall be responsible for its own attorneys’ or representative’s
fees.  However, if any party prevails on
a statutory claim which affords the prevailing party’s attorneys’ fees, or if
there is a written agreement providing for fees, the arbitrator may award
reasonable fees to the prevailing party. 
In no event shall Executive be required to pay administrative fees,
including arbitrator’s fees, beyond the fees which would have been incurred by
Executive, if any, had the dispute(s) arbitrated under this Arbitration
Agreement been litigated in state or federal court; the Bank shall be
responsible for all administrative fees exceeding such amount.

15.           Enforcement of Arbitration
Agreement.  Should either party file
a court action concerning or refuse to arbitrate a claim which is subject to
arbitration under this Arbitration Agreement, the other party shall be entitled
to recover its costs and reasonable attorneys’ fees incurred in enforcing this
Arbitration Agreement in court.

16.           Sole And Entire Agreement.  This Arbitration Agreement expresses the
entire agreement of the parties and there are no other agreements, oral or
written, concerning arbitration, except as provided herein, and except for the
Employment Agreement which incorporates this Arbitration Agreement by
reference.  By itself, this Arbitration
Agreement is not, and shall not be construed to create, any contract of
employment, express or implied.

17.           Requirements for Modification or
Revocation.  This Arbitration
Agreement shall survive the termination of Executive’s employment.  It can only be revoked or modified by a
writing signed by the Chairperson of the Personnel Committee of the Bank’s
Board of Directors, the Chairperson of the Bank’s Board of Directors or another
person specifically designated by the Board of Directors of the Bank and
Executive, that specifically states an intent to revoke or modify this
Arbitration Agreement.

18.           Waiver of Jury Trial/Exclusive
Remedy.  EXECUTIVE AND THE BANK WAIVE ANY CONSTITUTIONAL OR STATUTORY RIGHT TO
HAVE ANY DISPUTE BETWEEN THEM COVERED BY THE TERMS OF THIS ARBITRATION
AGREEMENT DECIDED BY A COURT OF LAW AND/OR BY A JURY IN A COURT.

19.           Voluntary Agreement.  EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS
CAREFULLY READ THIS ARBITRATION AGREEMENT, UNDERSTANDS ITS TERMS, AND AGREES
THAT ALL UNDERSTANDINGS AND AGREEMENTS BETWEEN THE BANK AND EXECUTIVE RELATING
TO THE SUBJECTS COVERED IN THE ARBITRATION AGREEMENT ARE CONTAINED IN IT.  EXECUTIVE HAS VOLUNTARILY ENTERED INTO THE
ARBITRATION AGREEMENT WITHOUT

 3
 

RELIANCE ON ANY PROVISIONS OR REPRESENTATIONS BY THE
BANK, OTHER THAN THOSE CONTAINED IN THIS ARBITRATION AGREEMENT OR EMPLOYMENT
AGREEMENT INTO WHICH IT IS INCORPORATED BY REFERENCE.

EXECUTIVE FURTHER ACKNOWLEDGES THAT EXECUTIVE HAS BEEN GIVEN THE
OPPORTUNITY TO DISCUSS THIS ARBITRATION AGREEMENT AND THE EMPLOYMENT AGREEMENT
WITH EXECUTIVE’S PRIVATE LEGAL COUNSEL AND EXECUTIVE HAS UTILIZED THAT
OPPORTUNITY TO THE EXTENT DESIRED.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  Richard H. Revier, Executive

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  1st PACIFIC BANK OF CALIFORNIA,

  
	
   

  	
  a California
  state-chartered bank

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
     A. Vincent Siciliano, President
  and CEO

  

 

 4

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