Document:

ex10-6.htm

Exhibit 10.6 

 

	
 

 

 

 

 

 

 

 

	
 

 

Table of Contents

 

	
Introduction 
	
 3

	 	 
	
PERSONS COVERED
	
 3

	 	 
	
Transactions Covered 
	
 3

	 	 
	
IMPLEMENTATION
	
 3

 

 

Responsible Party: Admin / Sam Jimenez

Board Approved: December 20, 2016 

2

 

 

	
 

 

 

Introduction 

 

The board of directors (the “Board”) of Bank of Commerce Holdings (the “Company”) believes that ownership of the Company’s common stock by the Company’s directors, officers and employees serves to align the interests of such persons with those of the Company’s shareholders generally, with positive results. 

 

However, certain transactions in the Company’s common stock, or which are linked to the value of the Company’s common stock, may create the appearance that such interests are not properly aligned, to the extent that such transactions are designed to hedge or offset against any decrease in the market value of the Company’s common stock. Accordingly, the Board is adopting this anti-hedging policy (“Policy”) to prohibit such transactions.

 

 

Persons Covered 

  

This Policy applies to all directors, officers and employees of the Company and its subsidiary Redding Bank of Commerce, and their designees (“Covered Persons”).

 

 

Transactions Covered

  

The purchase of a financial instrument or other transaction that is designed to, or has the effect of, hedging or offsetting any decrease in the market value of Company common stock that is either (i) granted to the Covered Person as a part of compensation, or (ii) held, directly or indirectly, by such Covered Person. These transactions can include the purchase of prepaid variable forward contracts, equity swaps, collars, short sales, and exchange funds. Regardless of the specific form of any particular transaction, such transactions are referred to for purposes of this Policy as “Hedging Transactions.” 

 

Essentially, a Hedging Transaction is any transaction that would have the economic effect of establishing a downside price protection in connection with Company common stock held by a Covered Person, whether by purchasing or selling a security or derivative security, or otherwise. Hedging Transactions are prohibited by this Policy. In laypersons terms, this would be equivalent to “betting against the house.”

  

 

Responsible Party: Admin / Sam Jimenez

Board Approved: December 20, 2016 

3

 

  

	
 

 

 

Implementation

  

Potential Hedging Transactions can take many forms, some of which are quite complex. Accordingly, any Covered Person considering an arrangement or transaction that might constitute a Hedging Transaction should contact the Company Chief Operating Officer prior to entering into such arrangement or transaction for clarification. 

  

 

 

Responsible Party: Admin / Sam Jimenez

Board Approved: December 20, 2016

4ex10-7.htm

Exhibit 10.7

 

	
 

  

 

 

 

 

	
 

 

Table of Contents

 

	
Introduction 
	
 3

	
 
	
 

	
Persons Covered 
	
 3

	
 
	
 

	
Policy – Scope of Coverage  
	
 3

 

 

Responsible Party: Admin / Sam Jimenez

Board Approved: December 20, 2016 

2

 

 

	
 

   

 

Introduction

  

Bank of Commerce Holdings (the “Company”) has not historically maintained any policy or guidelines regarding the pledging of Company common stock owned by its directors or executive officers. The board of directors of the Company is aware, as disclosed in the Company’s annual meeting proxy statement, that a limited amount of Company common stock has been pledged as collateral by certain directors and executive officers of the Company. Although the Board does not view the pledging of Company common stock as problematic in and of itself, excessive pledging activity could in the future be an issue. Additionally, the practice is negatively viewed by certain proxy advisory firms. The Board also desires to clarify the Company’s positon with respect to margin accounts in this Policy. Accordingly, the Board hereby adopts this Anti-Pledging and Margin Account Policy (“Policy”). 

 

 

Persons Covered 

  

This Policy applies to (i) members of the Company’s board of directors, and (ii) the Company’s executive officers who are required to file reports pursuant to Section 16 of the Securities Exchange Act of 1934 (collectively, the “Covered Persons”).

 

 

Policy – Scope of Coverage

  

Covered Persons are prohibited from pledging Company common stock or holding Company common stock in margin accounts, since securities held in a margin account may be sold by the broker without the customer’s consent if the customer fails to make a margin call and any such margin sale may occur at a time when the pledgor is aware of material nonpublic information or otherwise is not permitted to trade in Company securities. This Policy shall have no effect on any pledges of Company common stock by a Covered Person that has been made prior to the effective date of the Policy, except that (i) no such existing pledges may be increased in amount subsequent to the effective date of this Policy, (ii) no pledges, including pledges made prior to the effective date of this Policy, shall be permitted after December 31, 2018, and (iii) all such pledges must be ended by December 31, 2018, in any event. 

 

 

 

Responsible Party: Admin / Sam Jimenez

Board Approved: December 20, 2016

3ex10-8.htm

Exhibit 10.8 

 

	
 

  

 

 

 

 

	
 

 

Table of Contents

 

	
Policy Statement 
	
 3

	
 
	
 

	
Terms  
	
 3

 

 

 

Responsible Party: Admin / Sam Jimenez

Board Approved: December 20, 2016 

2

 

 

	
 

 

 

Policy Statement

  

The Board of Directors of Bank of Commerce Holdings (the “Company”) has approved and adopted the following Clawback Policy, effective as of December 20, 2016.

 

“It is the policy of Bank of Commerce Holdings (the “Company”) that, to the full extent permitted by governing federal and/or state law, in the event the Company is required to prepare an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under the securities laws, and the Board of Directors (“Board”) determines that the misconduct of any person who was an executive officer of the Company at the time of the misconduct contributed to the noncompliance which resulted in the obligation to restate the Company’s financial statements, the Company will recover such amounts (which shall be deemed to have been unearned) from any such current or former executive officer who received incentive compensation during the one year period preceding the date on which the Company is required to prepare the accounting restatement, in excess of what would have been earned and paid to the executive officer under the accounting restatement. 

 

The Executive Compensation Committee of the Board shall have sole discretion to determine any amount of compensation to be recovered under this policy, including, without limitation, to determine the amount of any award that was based on the erroneous data. This policy shall be enforced unless it would be unreasonable to do so, such as, by way of example, if the expense of enforcing would exceed the amount recovered. In addition to and without limiting the availability of other methods of recoupment, the Company may set off the amounts of any such required recoupment against any amounts otherwise owed by the Company to an affected current or former executive officer as determined by the Executive Compensation Committee in its sole discretion, to the extent any such offset complies with federal and state law, including but not limited to the requirements of Section 409A of the Internal Revenue Code and the guidance issued thereunder; and the amount otherwise owed shall continue to be reported for Federal income tax purposes as if such offset had not occurred.” 

 

 

Responsible Party: Admin / Sam Jimenez

Board Approved: December 20, 2016 

3

 

  

	
 

 

 

Terms

 

The following terms used in the foregoing Clawback Policy shall be interpreted in the following manner, and the following additional provisions shall apply to the Clawback Policy:

 

	 	
a.
	
The term “executive officer” shall mean any executive officer as designated by the Board to be subject to Section 16 of the Securities and Exchange Act of 1934, as amended.

	 	
b.
	
The term “incentive compensation” shall mean all bonuses and other incentive cash and equity-based compensation awarded to the executive officer, the amount, payment and/or vesting of which was calculated based wholly or in part on the application of cash compensation or equity-based compensation calculated by reference to measures of specific, objective Company financial performance measured during any part of the period covered by the financial restatement. 

	 	
c.
	
The term “misconduct” shall mean willful commission of an act of fraud or intentionally illegal conduct in the performance of a person’s duties.

	 	
d.
	
The date an accounting restatement is required shall be the earlier of (i) the date on which the Company makes a determination that previously-filed financial statements should not be relied upon as provided in Item 4.02 of SEC Form 8-K, or (ii) the date a court, regulator or other legally authorized body directs the Company to restate its previously issued financial statements to correct a material error. 

	 	
e.
	
Before the Executive Compensation Committee determines to seek recovery pursuant to this Policy, it shall provide to the applicable executive officer written notice and the opportunity to be heard, at a meeting of the Executive Compensation Committee (which may be in-person or telephonic, as determined by the Executive Compensation Committee).

 

 

 

Responsible Party: Admin / Sam Jimenez

Board Approved: December 20, 2016

4ex10-9.htm

Exhibit 10.9 

 

	
 

 

 

 

 

 
	
 

 

Table of Contents

 

	
Purpose 
	
 3

	
 
	
 

	
PERSONS COVERED
	
 3

	
 
	
 

	
Ownership Guidelines  
	
  3

	
 
	
 

	
Timeframe  
	
 3

	
 
	
 

	
Ownership Definition    
	
  4

	
 
	
 

	
Ownership Calculation 
	
  4

	
 
	
 

	
Equity Compensation Retention Guideline 
	
 4

 
 

Responsible Party: Admin / Sam Jimenez

Board Approved: December 20, 2016 

2

 

 

	
 

 

 

Purpose

  

The board of directors (“Board”) of Bank of Commerce Holdings (the “Company”) believes that it is in the best interests of the Company and its shareholders to align the financial interests of the Company’s directors and executive officers with those of the Company’s shareholders. Accordingly, the Committee has established the following stock ownership and retention guidelines (the “Guidelines”), which shall be administered by the Executive Compensation Committee (“Committee”) of the Board.

 

 

Persons Covered

  

The Guidelines will apply to (i) members of the Company’s board of directors (“Directors”) and (ii) the Company’s executive officers who are required to file reports pursuant to Section 16 of the Securities Exchange Act of 1934 (“Executives”). 

 

 

Ownership Guidelines

  

Each Director is expected to acquire and retain shares of Company common stock (“Shares”) having a market value equal to at least five (5) times his or her annual cash retainer (exclusive of committee fees). 

 

Each Executive is expected to acquire and retain Shares having a market value equal to at least two (2) times his or her annual base salary.

 

 

Timeframe

  

Each Director or Executive will have five years from the date of his or her appointment (or five years from December 20, 2016, the date upon which these Guidelines were originally adopted, whichever is later) to attain the specified ownership levels. With respect to Executives, in the event of an increase in base salary, the Executive is expected to meet the higher ownership amount within three years from the effective date of the salary change. The Committee in its discretion may extend the period for attainment of these ownership levels in appropriate circumstances.

 

 

Responsible Party: Admin / Sam Jimenez

Board Approved: December 20, 2016 

3

 

  

	
 

  

 

Ownership Definition

  

For purposes of these Guidelines, a Director’s or Executive’s stock ownership will include the following:

 

	 	
•
	
Shares owned directly, either in certificated form or through a brokerage account, including restricted Shares and Shares deliverable in settlement of restricted or unrestricted Share units, excluding restricted Shares/restricted Share units that remain subject to the achievement of performance goals.

	 	
•
	
Shares owned indirectly, if the Director or Executive has an economic interest in the Share. For this purpose, indirect ownership includes Shares owned by immediate family members that would be beneficially owned and reported for purposes of the stock ownership table of the Company’s proxy statement (excluding Shares subject to a right to acquire) and Shares beneficially owned and reportable on Table 1 of Forms 3, 4 or 5.

	 	
•
	
Shares attributable to a Director’s or Executive’s vested account in any savings or retirement plans, deferred compensation plans and Shares acquired through any employee stock purchase plan.

 

 

Ownership Calculation

  

Shares prices of all companies are volatile. It would be unfair to require a Director or Executive to purchase more Shares simply because the price of the Company’s common stock declines temporarily. Accordingly, in calculating the number of Shares that a Director should hold under these Guidelines, the Director’s annual cash retainer will be divided by the highest Share price over the prior 24 month period. 

 

When calculating the number of Shares that an Executive should hold under these Guidelines, the Executive’s salary will also be divided by the highest Share price over the prior 24 month period. 

 

Compliance will be evaluated by the Executive Compensation Committee on an annual basis, as of December 31 of each year, and not on a running basis.

 

 

Responsible Party: Admin / Sam Jimenez

Board Approved: December 20, 2016 

4

 

  

	
 

 

 

Equity Compensation Retention Guideline

  

Unless a Director or Executive has achieved the applicable Guideline level of Share ownership, he or she is required to retain an amount equal to 50% of the net Shares received as a result of the exercise, vesting or payment of any Company equity awards granted to the Director or Executive. A Director or Executive must continue to retain such Shares for as long as the Director or Executive is subject to these Guidelines. “Net Shares” are those Shares that remain after Shares are sold or withheld, as the case may be, to pay any applicable exercise price for the equity award and to satisfy any tax obligations arising in connection with the exercise, vesting or payment of the equity award.

 

 

 

Responsible Party: Admin / Sam Jimenez

Board Approved: December 20, 2016

5

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