Document:

Exhibit 10.3

 

DIRECTORS
AGREEMENT

 

This Directors Agreement
(this “Agreement”) is made and entered
into this          day of                             ,
2009, by and between 1st Pacific Bancorp, a California corporation (“1st Pacific Bancorp”) and                                       
(“Affiliate”) with reference to the
following facts:

 

RECITALS

 

A.                                   First Business Bank, National
Association, a national banking association (“First
Business Bank”), FB Bancorp, a California corporation (“FB Bancorp”), 1st Pacific Bank of
California, a California state-chartered commercial bank and the wholly-owned
subsidiary of 1st Pacific Bancorp (“1st Pacific Bank”),
and 1st Pacific Bancorp have entered into that certain Agreement and Plan of
Merger dated as of this date (the “Reorganization Agreement”),
pursuant to which: (i) FB Bancorp and First Business Bank will reorganize
and FB Bancorp will become the bank holding company for First Business Bank
(the “Bank Holding Company Formation”); (ii) immediately
thereafter, FB Bancorp will cause the merger of a wholly-owned merger
subsidiary with and into 1st Pacific Bancorp (the “Merger”),
with 1st Pacific Bancorp as the resultant or surviving corporation in the
Merger (the “Surviving Corporation”); (iii) immediately
thereafter, the Surviving Corporation will merge with FB Bancorp (the “Bank Holding Company Merger”) with
the Surviving Corporation as the resultant or surviving bank holding company
(the “Surviving Bank Holding Company”)
for First Business Bank and 1st Pacific Bank; and (iv) immediately
thereafter, the Surviving Bank Holding Company will cause the merger of First
Business Bank with 1st Pacific Bank (the “Bank Merger”)
with 1st Pacific Bank as the resultant or surviving bank in the Bank Merger
(the “Surviving Bank”).

 

B.                                     As a condition to its willingness to
enter into the Reorganization Agreement, and in reliance on Affiliate’s
representations, warranties, covenants and agreements hereunder, 1st Pacific
Bancorp has requested that Affiliate agree, and Affiliate has agreed, to enter
into this Agreement and to perform Affiliate’s duties and obligations
hereunder.

 

NOW, THEREFORE, in
consideration of the promises and of the representations, warranties and
covenants, agreements and conditions contained herein and in the Reorganization
Agreement, the parties hereto agree as follows:

 

AGREEMENT

 

1.                                      AGREEMENTS OF AFFILIATE

 

1.1.                            Agreement to Vote. 
At any meeting of the shareholders of First Business Bank to approve the
Holding Company Formation, the Merger, the Reorganization Agreement and the
transactions contemplated thereby, Affiliate shall vote or cause to be voted
all shares of common stock of First Business Bank, $5.00 par value per share (“First Business Bank Stock”) owned
by Affiliate and any other shares of First Business Bank Stock hereafter
acquired by Affiliate in favor of, and to approve, the principal terms of the
Holding Company Formation, the Merger and any other matter contemplated by the
Reorganization Agreement which requires the approval of the shareholders of
First Business Bank.

 

1

 

1.2.                            Agreement to Recommend. 
Subject to Affiliate’s fiduciary obligations under applicable law,
Affiliate shall recommend to the shareholders of First Business Bank to vote in
favor of, and to approve, the principal terms of the Merger and any other
matters contemplated by the Reorganization Agreement.

 

1.3.                            Restrictions on Dispositions. 
Affiliate agrees that, except with the prior written consent of 1st
Pacific Bancorp, or pursuant to the Merger, Affiliate will not pledge nor
otherwise encumber, sell, assign or otherwise dispose of any shares of First
Business Bank Stock currently owned or acquired by Affiliate after the date of
this Agreement.

 

1.4.                            Cooperation. 
Subject to Affiliate’s fiduciary obligations under applicable law,
Affiliate agrees to cooperate fully with 1st Pacific Bancorp and 1st Pacific
Bank in connection with the Merger and the other transactions contemplated in
the Reorganization Agreement.

 

2.                                      REPRESENTATIONS AND
WARRANTIES OF AFFILIATE

 

Affiliate represents and
warrants to and agrees with 1st Pacific Bancorp as follows:

 

2.1.                            Capacity.  Affiliate has
all the requisite capacity and authority to enter into and perform Affiliate’s
obligations under this Agreement.

 

2.2.                            Binding Agreement.  This
Agreement constitutes the valid and binding obligation of Affiliate, except as
the enforcement hereof may be limited by general principles of equity.

 

2.3.                            Non-Contravention.  The
execution and delivery of this Agreement by Affiliate does not, and the
performance by Affiliate of Affiliate’s obligations hereunder and the
consummation by Affiliate of the transactions contemplated hereby will not,
violate or conflict with or constitute a default under any agreement,
instrument, contract or other obligation or any order; arbitration award,
judgment or decree to which Affiliate is a party or by which Affiliate is
bound, or any statute, rule or regulation to which Affiliate or any of
Affiliate’s property is subject.

 

2.4.                            Ownership of Shares.  Schedule 1 hereto correctly sets
forth the number of shares of First Business Bank Stock owned by Affiliate, or
with respect to which Affiliate has voting power or beneficial ownership, as of
the date hereof.  Affiliate has good
title to all of the shares of First Business Bank Stock indicated as owned by
Affiliate in the capacity set forth on Schedule 1
as of the date hereof and such shares of First Business Bank Stock are so owned
free and clear of any liens, security interests, charges or other encumbrances,
except as set forth in Schedule 1.

 

3.                                      TERMINATION

 

3.1.                            Termination Date. 
This Agreement shall terminate and be of no further force and effect
upon the earlier of (i) the termination of the Reorganization Agreement in
accordance with the terms thereof, or (ii) the consummation of the Merger
and the other matters contemplated by the Reorganization Agreement.

 

3.2.                            Effect of Termination. 
Upon the termination of this Agreement in accordance with Section 3.1 hereof, the
respective obligations of the parties hereto shall immediately become void and
have no further force or effect.

 

2

 

4.                                      EQUITABLE RELIEF. 
Affiliate acknowledges and agrees that 1st Pacific Bancorp’s remedies at
law for breach of any of the provisions of this Agreement may be inadequate
and, in recognition of this fact, Affiliate agrees that, in the event of such
breach, in addition to any remedies at law it may have, 1st Pacific Bancorp,
without posting any bond, shall be entitled to obtain equitable relief in the
form of specific performance, a temporary restraining order, a temporary or
permanent injunction or any other equitable remedy that may be available.
Affiliate further acknowledges that should Affiliate violate any of the
provisions of this Agreement, it will be difficult to determine the amount of
damages resulting to 1st Pacific Bancorp and that in addition to any other
remedies it may have, 1st Pacific Bancorp shall be entitled to temporary and
permanent injunctive relief without the necessity of proving damages.

 

5.                                      MISCELLANEOUS

 

5.1.                            Expenses.  Each party
hereto shall pay its own costs and expenses, including, without limitation,
those of its attorneys and accountants, in connection with this Agreement and
transactions covered and contemplated hereby.

 

5.2.                            Notices.  All notices,
demands or other communications hereunder shall be in writing and be made by (a)
hand delivery; (b) overnight mail; (c) United States mail, first
class, certified or postage prepaid; or (d) facsimile transmission, and
shall be deemed to have been duly given (i) on the date of service if
delivered by hand or facsimile transmission (provided that telecopied notices
are also mailed by United States mail, first class, certified or registered,
postage prepaid); (ii) on the next day if delivered by overnight mail; or
first class, certified or registered, postage prepaid, and properly addressed
as follows:

 

(a)                                  If to 1st Pacific Bancorp: 

Ronald
J. Carlson

President
and Chief Executive Officer

9333
Genesee Avenue #300

San Diego,
California

 

(b)                                 If to Affiliate:

to the
address noted on the final page hereof.

 

 

The persons or addresses
to which mailings or deliveries shall be made may change from time to time by
notice given pursuant to the provisions of this Section 5.2.

 

5.3.                            Successors and Assigns. 
All terms and provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective transferees,
successors and assigns; provided, however, that, except as otherwise
contemplated herein, this Agreement and all rights, privileges, duties and
obligations of the parties hereto may not be assigned or delegated by Affiliate
without the prior written consent of 1st Pacific Bancorp and any purported
assignment in violation of this Section 5.3
shall be null and void.

 

3

 

5.4.                            Third Party Beneficiaries. 
Each party hereto intends that this Agreement shall not benefit, or
create any right or cause of action in or on behalf of, any person other than
the parties hereto. As used in this Agreement, the term “party” or “parties”
shall refer only to 1st Pacific Bancorp and Affiliates.

 

5.5.                            Counterparts. 
This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one instrument.

 

5.6.                            Governing Law; Jurisdiction. 
This Agreement is made and entered in the State of California and the
laws of the State of California shall govern the validity and interpretation
hereof and the performance of the parties hereto of their respective duties and
obligations hereunder. In an action or suit brought by Affiliate or 1st Pacific
Bancorp to enforce any provision hereof, or for damages for the breach hereof,
such action or suit shall be commenced and maintained exclusively in the state
superior courts located in San Diego County, California or Federal district
courts located in San Diego County, California, and the parties hereto agree
not to challenge the selection of that venue in any such proceeding for any
reason, including, without limitation, on the grounds that such venue is an
inconvenient forum.

 

5.7.                            Attorney’s Fees. In the event Affiliate or 1st Pacific Bancorp  brings an  action or suit against the other
party by reason of any breach of any covenant, agreement, representation,
warranty or other provision hereof or any breach of any duty or obligation
created hereunder by such other party, the prevailing party, as determined by
the court or other body having jurisdiction, shall be entitled to have and
recover of and from  the losing party, as determined by
the court or other body having jurisdiction, all  reasonable costs
and expenses incurred or sustained by such prevailing party in connection with
such action or suit, including, without limitation, legal fees and court costs
(whether or not taxable as such).

 

5.8.                            Captions.  The captions
contained in this Agreement are for convenience of reference only and do not
form a part of this Agreement.

 

5.9.                            Waiver and Modification. 
No waiver of any term, provision or condition of this Agreement, whether
by conduct or otherwise, in any one or more instances, shall be deemed to be
construed as a further or continuing waiver of any such term, provision or
condition of this Agreement. This Agreement may be modified or amended only by
an instrument of equal formality signed by the parties or their duly authorized
agents.

 

5.10.                     Entire Agreement. 
The making, execution and delivery of this Agreement by the parties hereto
have not been induced by any representation, statements, warranties or
agreements other than those expressed herein. This Agreement, in addition to
the applicable provisions of the Reorganization Agreement, embodies the entire
understanding of the parties and there are no further or other agreements or
understandings, written or oral, in effect between the parties relating to the
subject matter hereof, unless expressly referred to by reference herein.

 

5.11.                     Severability. 
Whenever possible, each provision of this Agreement and every related
document shall be interpreted in such manner as to be valid under applicable
law.  However, if any provision of any of
the foregoing shall be invalid or prohibited under said applicable law, it
shall be construed, interpreted and limited to effectuate its purpose to the
maximum legally permissible extent.  If
it cannot be so construed and interpreted so as to be valid under such law,
such provision shall be ineffective to the extent of such invalidity or
prohibition without invalidating the remainder of such provision or the
remaining provisions of this Agreement, and this Agreement shall be construed
to the minimum extent possible to carry out its terms without such invalid or
unenforceable provision or portion thereof.

 

4

 

5.12.                     Not in Director Capacity. 
Affiliate, who is a director of First Business Bank, makes no agreement
or understanding herein in his or her capacity as such director.  Affiliate signs solely in his or her
capacities as owner of or holder of the power to vote shares of First Business
Bank Stock.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date
first above written.

 

	
   

  	
   

  	
  1st PACIFIC BANCORP  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Ronald J. Carlson,
  President and 

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
  AFFILIATE  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Signature)  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Name)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Street Address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (City, State and Zip Code)

  	
   

  	
   

  

 

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SCHEDULE 1

 

	
   

  	
   

  	
  Number

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  Shares

  	
   

  	
  Options

  	
   

  	
  Nature of OwnershipExhibit 10.4

 

VOTING AGREEMENT

 

This Voting Agreement (this “Agreement”)
is made and entered into this         
day of                        ,
2009, by and between First Business Bank, National Association, a national
banking association (“First Business Bank”)
and                                
(“Affiliate”) with reference to the
following facts:

 

RECITALS

 

A.                                   First Business Bank, FB Bancorp, a
California corporation (“FB Bancorp”),
1st Pacific Bancorp, a California corporation (“1st
Pacific Bancorp”) and 1st Pacific Bank of California, a
California state-chartered commercial bank (“1st
Pacific Bank”) have entered into that certain Agreement and Plan
of Merger dated as of this date (the “Reorganization Agreement”),
pursuant to which: (i) FB Bancorp and First Business Bank will reorganize
and FB Bancorp will become the bank holding company for First Business Bank
(the “Bank Holding Company Formation”); (ii) immediately
thereafter, FB Bancorp will cause the merger of a wholly-owned merger
subsidiary with and into 1st Pacific Bancorp (the “Merger”),
with 1st Pacific Bancorp as the resultant or surviving corporation in the
Merger (the “Surviving Corporation”); (iii) immediately
thereafter, the Surviving Corporation will merge with FB Bancorp (the “Bank Holding Company Merger”) with
the Surviving Corporation as the resultant or surviving bank holding company
(the “Surviving Bank Holding Company”)
for First Business Bank and 1st Pacific Bank; and (iv) immediately
thereafter, the Surviving Bank Holding Company will cause the merger of First
Business Bank with 1st Pacific Bank (the “Bank Merger”)
with 1st Pacific Bank as the resultant or surviving bank in the Bank Merger
(the “Surviving Bank”).

 

B.                                     As a condition to its willingness to
enter into the Reorganization Agreement, and in reliance on Affiliate’s
representations, warranties, covenants and agreements hereunder, First Business
Bank has requested that Affiliate agree, and Affiliate has agreed, to enter
into this Agreement and to perform Affiliate’s duties and obligations
hereunder.

 

NOW, THEREFORE, in consideration of the promises and
of the representations, warranties and covenants, agreements and conditions
contained herein and in the Reorganization Agreement, the parties hereto agree
as follows:

 

AGREEMENT

 

1.                                      AGREEMENTS OF AFFILIATE

 

1.1.                            Agreement to Vote. 
At any meeting of shareholders of 1st Pacific Bancorp to approve the
Merger, the Reorganization Agreement and the transactions contemplated thereby,
Affiliate shall vote or cause to be voted all shares of common stock of 1st
Pacific Bancorp, no par value per share (“1st Pacific Bancorp Stock”)
owned by Affiliate and any other shares of 1st Pacific Bancorp Stock hereafter
acquired by Affiliate in favor of, and to approve, the principal terms of the
Merger and any other matter contemplated by the Reorganization Agreement which
requires the approval of the shareholders of 1st Pacific Bancorp, including but
not limited to the Merger.

 

1

 

1.2.                            Agreement to Recommend. 
Subject to Affiliate’s fiduciary obligations under applicable law and
those referenced in Sections 6.10 and 8.2.1 of the Reorganization Agreement,
Affiliate shall recommend to the shareholders of 1st Pacific Bancorp to vote in
favor of, and to approve, the principal terms of the Merger and any other
matters contemplated by the Reorganization Agreement.

 

1.3.                            Restrictions on Dispositions. 
Affiliate agrees that, except with the prior written consent of First
Business Bank, or pursuant to the Merger, Affiliate will not pledge nor
otherwise encumber, sell, assign or otherwise dispose of any shares of 1st
Pacific Bancorp Stock currently owned or acquired by Affiliate after the date
of this Agreement.

 

1.4.                            Cooperation. 
Subject to Affiliate’s fiduciary obligations under applicable law and
those referenced in Sections 6.10 and 8.2.1 of the Reorganization Agreement,
Affiliate agrees to cooperate fully with First Business Bank and FB Bancorp in
connection with the Merger and the other transactions contemplated in the
Reorganization Agreement.

 

2.                                      RESTRICTIVE COVENANTS OF
AFFILIATE

 

2.1.                            Covenant Not to Compete. 
Other than serving as a director, officer or shareholder of 1st Pacific
Bancorp, 1st Pacific Bank, FB Bancorp, First Business Bank,  Surviving Corporation, Surviving Bank or
Surviving Bank Holding Company (collectively, the “FBB
Affiliates”), Affiliate agrees that, for a period of two (2) years
from the Effective Time of the Merger (as defined in the Reorganization
Agreement)(the “Noncompetition Period”),
Affiliate will not, directly or indirectly, individually or as an owner,
partner, shareholder, joint venturer, corporate officer, director, employee,
consultant, principal, agent, trustee or licensor, or in any other similar
capacity whatsoever of or for any person, firm, partnership, company or
corporation own, manage, operate, control or participate in the ownership,
management, operation, or control of any Competing Business in the Covered
Area; provided, however, that Affiliate may continue owning, purchase or
otherwise acquire up to (but not more than) two percent (2%) of any class of
securities of any enterprise if such securities are publicly traded, provided
Affiliate may not participate, either directly or indirectly, in the
management, operation or other activities of such enterprise, whether as a
consultant, employee, officer, director, advisor, board member or
otherwise.  As used herein, the term “Competing Business” means any
financial institution whose deposits are insured by the federal government or
which is regulated by the Federal Reserve Board or any trust company that
operates within the Covered Area.  As
used herein, the term “Covered Area”
means San Diego County, State of California.

 

2.2.                            Nonsolicitation of Employees and
Consultants.  During the Noncompetition Period, Affiliate
agrees that Affiliate will not directly or indirectly solicit, influence,
entice or encourage any person who at such time is, or who at any time in the
four (4) month period prior to such time had been, an employee of or
consultant to FB Bancorp, First Business Bank, 1st Pacific Bancorp or 1st
Pacific Bank to cease or curtail his or her relationship therewith; provided,
however, that no breach of this Section 2.2 shall be deemed to have
occurred by Affiliate’s posting or publication of a general advertisement for
an open position.

 

2

 

2.3.                            Covenant Not to Hire. 
During the Noncompetition Period, Affiliate agrees that Affiliate will
not directly or indirectly hire or attempt to hire, whether as an employee,
consultant or otherwise, any person who at such time is, or who at any time in
the two (2) month period prior to such time had been, employed by FB
Bancorp, First Business Bank, 1st Pacific Bancorp or 1st Pacific Bank.

 

2.4.                            Trade Secrets. 
For all times after the date hereof, other than for the benefit of FB
Bancorp, First Business Bank, 1st Pacific Bancorp and/or 1st Pacific Bank
(including the Surviving Corporation and the Surviving Bank), Affiliate agrees
that Affiliate: (i) shall make no use of Trade Secrets for the benefit of
any other entity or person; and (ii) shall deliver, on and after the
Effective Time, all documents, reports, drawings, designs, plans, proposals and
other tangible evidence of Trade Secrets, now possessed or hereafter acquired
by Affiliate, to the Surviving Bank.  For
purposes of this Agreement, the term “Trade Secrets”
shall mean:

 

(a)                                  All secrets and other confidential
information, ideas, knowledge, know-how, techniques, secret processes, improvements,
discoveries, methods, inventions, sales, financial information, lists of
customers and prospective customers, plans, concepts, strategies or products,
as well as all documents, reports, drawings, designs, plans and proposals
otherwise pertaining to same or relating to the business and properties of FB
Bancorp, First Business Bank, 1st Pacific Bancorp and/or 1st Pacific Bank
(including the Surviving Corporation and the Surviving Bank) of which Affiliate
has acquired, or may hereafter acquire, knowledge and possession as a director,
officer or employee or as a result of the transactions contemplated by the
Reorganization Agreement.

 

(b)                                 Notwithstanding any other provisions of
this Agreement to the contrary, “Trade Secrets” shall not include any: (i) information
that is or has become available from a third party who learned the information
independently and to the actual knowledge of Affiliate without investigation is
not or was not bound by a confidentiality agreement with respect to such
information; or (ii) information 
readily ascertainable from public, trade or other non-confidential
sources (other than as a result, directly or indirectly, of a disclosure or
other dissemination that to the actual knowledge of Affiliate without
investigation was in contravention of a confidentiality agreement).

 

2.5.                            Nondisruption; Other Matters. 
During the Noncompetition Period, Affiliate agrees that Affiliate will
not directly or indirectly interfere with, disrupt or attempt to disrupt any
past, present or prospective relationship, contractual or otherwise, between FB
Bancorp, First Business Bank, 1st Pacific Bancorp, 1st Pacific Bank, Surviving
Bank Holding Company or Surviving Bank on the one hand, and any of their
respective customers, suppliers or employees, on the other hand; provided,
however, that the foregoing shall not be construed to prohibit Affiliate from
soliciting any person regarding products and services that do not compete in
any respect with the activities of the FBB Affiliates.

 

3

 

3.                                      REPRESENTATIONS AND
WARRANTIES OF AFFILIATE

 

Affiliate represents and warrants to and agrees with
First Business Bank as follows:

 

3.1.                            Capacity.  Affiliate has
all the requisite capacity and authority to enter into and perform Affiliate’s
obligations under this Agreement.

 

3.2.                            Binding Agreement. This Agreement constitutes the valid
and binding obligation of Affiliate, except as the enforcement hereof may be
limited by general principles of equity.

 

3.3.                            Non-Contravention. The execution and delivery of this
Agreement by  Affiliate does not, and the
performance by Affiliate of Affiliate’s obligations hereunder and the
consummation by Affiliate of the transactions contemplated hereby will not,
violate or conflict with or constitute a default under any agreement,
instrument, contract or other obligation or any order; arbitration award,
judgment or decree to which Affiliate is a party or by which Affiliate is
bound, or any statute, rule or regulation to which Affiliate or any of
Affiliate’s property is subject.

 

3.4.                            Ownership of Shares.  Schedule 1 hereto correctly sets
forth the number of shares of 1st Pacific Bancorp Stock owned by Affiliate, or
with respect to which Affiliate has voting power or beneficial ownership, as of
the date hereof.  Affiliate has good
title to all of the shares of 1st Pacific Bancorp Stock indicated as owned by
Affiliate in the capacity set forth on Schedule 1
as of the date hereof and such shares of 1st Pacific Bancorp Stock are so owned
free and clear of any liens, security interests, charges or other encumbrances,
except as set forth in Schedule 1.

 

4.                                      TERMINATION

 

4.1.                            Termination Date. 
This Agreement shall terminate and be of no further force and effect
upon the earlier of (i) the termination of the Reorganization Agreement in
accordance with the terms thereof, or (ii) the day after the last day of
the Noncompetition Period.  Consummation
of the Merger and the other matters contemplated by the Reorganization
Agreement shall not terminate this Agreement.

 

4.2.                            Effect of Termination. 
Upon the termination of this Agreement in accordance with Section 4.1 hereof, the
respective obligations of the parties hereto shall immediately become void and
have no further force or effect.

 

5.                                      EQUITABLE RELIEF. 
Affiliate acknowledges and agrees that First Business Bank’s remedies at
law for breach of any of the provisions of this Agreement may be inadequate
and, in recognition of this fact, Affiliate agrees that, in the event of such
breach, in addition to any remedies at law it may have, First Business Bank,
without posting any bond, shall be entitled to obtain equitable relief in the
form of specific performance, a temporary restraining order, a temporary or
permanent injunction or any other equitable remedy that may be available.
Affiliate further acknowledges that should Affiliate violate any of the
provisions of this Agreement, it will be difficult to determine the amount of
damages resulting to First Business Bank and that in addition to any other
remedies it may have, First Business Bank shall be entitled to temporary and
permanent injunctive relief without the necessity of proving damages.

 

6.                                      ACKNOWLEDGEMENT. 
Each of Affiliate and First Business Bank acknowledges and agrees that
the covenants and agreements contained in this Agreement have been negotiated
in good faith by the parties, are reasonable and are not more restrictive or
broader than necessary to protect the interests of the parties thereto, and
would not achieve their intended purpose 

 

4

 

if they were on different
terms or for periods of time shorter than the periods of time provided herein
or applied in more restrictive geographical areas than are provided herein.
Affiliate further acknowledges that First Business Bank would not enter into
the Reorganization Agreement and the transactions contemplated thereby in the
absence of the covenants and agreements contained in this Agreement and that
such covenants and agreements are essential to protect the value of 1st Pacific
Bancorp and 1st Pacific Bank to First Business Bank.

 

7.                                      MISCELLANEOUS

 

7.1.                            Expenses.  Each party
hereto shall pay its own costs and expenses, including, without limitation,
those of its attorneys and accountants, in connection with this Agreement and
transactions covered and contemplated hereby.

 

7.2.                            Notices.  All notices,
demands or other communications hereunder shall be in writing and be made by (a) hand
delivery; (b) overnight mail; (c) United States mail, first class,
certified or postage prepaid; or (d) facsimile transmission, and shall be
deemed to have been duly given (i) on the date of service if delivered by
hand or facsimile transmission (provided that telecopied notices are also
mailed by United States mail, first class, certified or registered, postage
prepaid); (ii) on the next day if delivered by overnight mail; or first
class, certified or registered, postage prepaid, and properly addressed as
follows:

 

(a)                                  If to First Business Bank:

Nathan
L. Rogge

President

First
Business Bank, National Association

12265 El Camino Real, Suite #100

San Diego, California 92130

Fax  (858) 847-4781

 

(b)                                 If to Affiliate:

to
the address noted on the final page hereof.

 

The persons or addresses to which mailings or
deliveries shall be made may change from time to time by notice given pursuant
to the provisions of this Section 7.2.

 

7.3.                            Successors and Assigns. 
All terms and provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective transferees,
successors and assigns; provided, however, that, except as otherwise
contemplated herein, this Agreement and all rights, privileges, duties and
obligations of the parties hereto may not be assigned or delegated by Affiliate
without the prior written consent of First Business Bank and any purported
assignment in violation of this Section 7.3
shall be null and void.

 

7.4.                            Third Party Beneficiaries. 
Each party hereto intends that this Agreement shall not benefit, or
create any right or cause of action in or on behalf of, any person other than
the parties hereto. As used in this Agreement, the term “party” or “parties”
shall refer only to First Business Bank and Affiliates.

 

5

 

7.5.                            Counterparts. 
This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one instrument.

 

7.6.                            Governing Law; Jurisdiction. 
This Agreement is made and entered in the State of California and the
laws of the State of California shall govern the validity and interpretation
hereof and the performance of the parties hereto of their respective duties and
obligations hereunder. In an action or suit brought by Affiliate or First
Business Bank to enforce any provision hereof, or for damages for the breach
hereof, such action or suit shall be commenced and maintained exclusively in
the state superior courts located in San Diego County, California or Federal
district courts located in San Diego County, California, and the parties hereto
agree not to challenge the selection of that venue in any such proceeding for
any reason, including, without limitation, on the grounds that such venue is an
inconvenient forum.

 

7.7.                            Attorney’s Fees. In the event Affiliate or First Business Bank  brings an  action or suit against the other
party by reason of any breach of any covenant, agreement, representation,
warranty or other provision hereof or any breach of any duty or obligation
created hereunder by such other party, the prevailing party, as determined by
the court or other body having jurisdiction, shall be entitled to have and
recover of and from  the losing party, as determined by
the court or other body having jurisdiction, all  reasonable costs
and expenses incurred or sustained by such prevailing party in connection with
such action or suit, including, without limitation, legal fees and court costs
(whether or not taxable as such).

 

7.8.                            Captions.  The captions
contained in this Agreement are for convenience of reference only and do not
form a part of this Agreement.

 

7.9.                            Waiver and Modification. 
No waiver of any term, provision or condition of this Agreement, whether
by conduct or otherwise, in any one or more instances, shall be deemed to be
construed as a further or continuing waiver of any such term, provision or
condition of this Agreement. This Agreement may be modified or amended only by
an instrument of equal formality signed by the parties or their duly authorized
agents.

 

7.10.                     Entire Agreement.  The making, execution and delivery of this
Agreement by the parties hereto have not been induced by any representation,
statements, warranties or agreements other than those expressed herein. This
Agreement, in addition to the applicable provisions of the Reorganization
Agreement, embodies the entire understanding of the parties and there are no
further or other agreements or understandings, written or oral, in effect
between the parties relating to the subject matter hereof, unless expressly
referred to by reference herein.

 

7.11.                     Severability. 
Whenever possible, each provision of this Agreement and every related
document shall be interpreted in such manner as to be valid under applicable
law.  However, if any provision of any of
the foregoing shall be invalid or prohibited under said applicable law, it
shall be construed, interpreted and limited to effectuate its purpose to the
maximum legally permissible extent.  If
it cannot be so construed and interpreted so as to be valid under such law,
such provision shall be ineffective to the extent of such invalidity or
prohibition without invalidating the remainder of such provision or the
remaining provisions of this Agreement, and this Agreement shall be construed
to the minimum extent possible to carry out its terms without such invalid or
unenforceable provision or portion thereof.

 

6

 

7.12.                     Not in Director Capacity. 
Affiliate, who is a director of 1st Pacific Bancorp and/or 1st Pacific
Bank, makes no agreement or understanding herein in his or her capacity as such
director.  Affiliate signs solely in his
or her capacities as owner of or holder of the power to vote shares of 1st
Pacific Bancorp Stock.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date
first above written.

 

	
   

  	
  FIRST
  BUSINESS BANK  

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
                Nathan
  L. Rogge, President and

  
	
   

  	
                Chief
  Executive Officer

  
	
   

  	
   

  
	
  AFFILIATE  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Signature)
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Name)
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Street
  Address) 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (City,
  State and Zip Code)

  	
   

  	
   

  

 

7

 

SCHEDULE 1

 

	
   

  	
   

  	
  Number

  	
   

  	
   

  
	
  Name

  	
   

  	
  Shares

  	
   

  	
  Options

  	
   

  	
  Nature of Ownership

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]