Document:

exv10w7

 

EXHIBIT 10.7

FIRST CALIFORNIA BANK

SPLIT DOLLAR AGREEMENT

(ADDENDUM A TO THE FIRST CALIFORNIA BANK SALARY CONTINUATION AGREEMENT)

     THIS AGREEMENT is adopted this 27th day of March, 2003, by and between FIRST
CALIFORNIA BANK, located in Camarillo, California (the “Company”), and THOMAS E ANTHONY (the
“Executive”). This Agreement shall append the Split Dollar Endorsement entered into on even date
herewith or as subsequently amended, by and between the aforementioned parties.

INTRODUCTION

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

AGREEMENT

The Company and the Executive agree as follows:

Article 1

General Definitions

The following terms shall have the meanings specified:

     1.1 “Insured” means the Executive.

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

     1.3
“Normal Retirement Age” means the Executive attaining 65 years of age.

     1.4
“Normal Retirement Date” means the later of the Normal Retirement Age or Termination of
Employment.

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

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

     1.7 “Termination for Cause” means the Company terminating the Executive’s employment for:

     (a) Gross negligence or gross neglect of duties to the Company;

     (b) Commission of a felony or of a gross misdemeanor involving moral turpitude in connection
with the Executive’s employment with the Company; or

     (c) Fraud, disloyalty, dishonesty or willful violation of any law or significant Company
policy committed in connection with the Executive’s employment and

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resulting in an adverse effect on the Company.

     1.8 “Termination of Employment” means that the Executive ceases to be employed by the Company
for any reason, other than by reason of a leave of absence approved by the Company.

Article 2

Policy Ownership/Interests

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

     2.2 Executive’s Interest. The Executive shall have the right to designate the beneficiary
death proceeds in the amount of $1,050,000 upon the death of the Executive, a) prior to Norm
Retirement Age while employed by the Company; or b) after Normal Retirement Date or after
Termination of Employment due to Disability or Change of Control as defined in the Salary
Continuation Agreement. The Executive shall also have the right to elect and change settlement
options that may be permitted. Upon the termination of this Agreement according to Article 7
herein, the Executive, the Executive’s transferee or the Executive’s beneficiary shall have no
rights or interests in the Policy and no death benefit shall be paid under this Section 2.2.

     2.3 Option to Purchase. The Company shall not sell, surrender or transfer ownership of the
Policy while this Agreement is in effect without first giving the Executive or the Executive’s
transferee the option to purchase the Policy for a period of 60 days from written notice of such
intention. The purchase price shall be an amount equal to the cash surrender value of the Policy.
This provision shall not impair the right of the Company to terminate this Agreement.

     2.4 Comparable Coverage. Upon execution of this Agreement, the Company shall maintain the
Policy in full force and effect and in no event shall the Company amend, terminate or otherwise
abrogate the Executive’s interest in the Policy, unless the Company replaces the Policy with
comparable insurance policy to cover the benefit provided under this Agreement and the Company and
the Executive execute a new Split Dollar Policy Endorsement for said comparable insurance policy.
The Policy or any comparable policy shall be subject to the claims of the Company creditors.

Article 3

Premiums

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

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

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     3.3 Reimbursement. At the end of each Plan Year, the Executive shall reimburse the Company in
an amount equal to the economic benefit.

Article 4

Assignment

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

Article 5

Insurer

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

Article 6

Claims and Review Procedure

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

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

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

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

     (a) The specific reasons for the denial,

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

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

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

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

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

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

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

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

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

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

     (a) The specific reasons for the denial,

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

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

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

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Article 7

Amendments and Termination

     This Agreement may be amended or terminated only by a written agreement signed by the Company
and the Executive; however, this Agreement will automatically terminate upon the Executive’s
Termination for Cause, Early Involuntary Termination or Early Voluntary Termination (as defined in
the Salary Continuation Agreement) or in the event the Insurer refuses to pay a death benefit
according to the terms of the Policy.

Article 8

Miscellaneous

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

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

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

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

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

     8.6 Entire Agreement. This Agreement constitutes the entire agreement between 1 Company and
the Executive as to the subject matter hereof. No rights are granted to the Executive by virtue of
this Agreement other than those specifically set forth herein.

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

     (a) Interpreting the provisions of this Agreement;

     (b) Establishing and revising the method of accounting for this Agreement;

     (c) Maintaining a record of benefit payments; and

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

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

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

	 	 	 	 	 
	EXECUTIVE:	 	COMPANY
	 	 	FIRST CALIFORNIA BANK
	 
	 	 	 	 
	/s/ Thomas E. Anthony

	 	By
	 	/s/ James O. Birchfield
	 

	 	 	 	 
	Thomas E. Anthony

	 	 	 	James O. Birchfield
	 

	 	 	 	Chairman of the Board

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SPLIT DOLLAR POLICY ENDORSEMENT (1 of 3)

FIRST CALIFORNIA BANK SPLIT DOLLAR AGREEMENT

Insured: Thomas E. Anthony

Insurer: Massachusetts Mutual Life Insurance Company

Policy No.                                         

     Pursuant to the terms of the FIRST CALIFORNIA BANK SPLIT DOLLAR AGREEMENT date March 27, 2003,
the undersigned Owner requests that the above-referenced policy issued by the Insurer provide for
the following beneficiary designation and limited contract ownership rights to the Insured:

     1. Upon the death of the Insured, proceeds shall be paid in one sum to the Owner, its
successors or assigns, to the extent of its interest in the policy. It is hereby provided that the
Insurer may rely solely upon statement from the Owner as to the amount of proceeds it is entitled
to receive under this paragraph.

     2. Any proceeds at the death of the Insured in excess of the amount paid under the provisions
of the preceding paragraph shall be paid in one sum to:

 

PRIMARY BENEFICIARY, RELATIONSHIP/SOCIAL SECURITY NUMBER

 

CONTINGENT BENEFICIARY, RELATIONSHIP/SOCIAL SECURITY NUMBER

The exclusive right to change the beneficiary for the proceeds payable under this paragraph,
to elect an optional method of settlement for the proceeds paid under this paragraph which are
available under the terms of the policy and to assign all rights and interests granted under this
paragraph are hereby granted to the Insured. The sole signature of the Insured shall be sufficient
to exercise said rights. The Owner retains a contract rights not granted to the Insured under this
paragraph.

     3. It is agreed by the undersigned that this designation and limited assignment of rights
shall be subject in all respects to the contractual terms of the policy.

     4. Any payment directed by the Owner under this endorsement shall be a full discharge of the
Insure and such discharge shall be binding on all parties claiming any interest under the policy.

The undersigned for the Owner is signing in a representative capacity and warrants that he or she
has the authority to bind the entity on whose behalf this document is being executed.

Signed at Camarillo, California this 27th day of March, 2003.

	 	 	 	 	 
	INSURED:	 	OWNER:
	 	 	FIRST CALIFORNIA BANK
	 
	 	 	 	 
	/s/ Thomas E. Anthony

	 	By
	 	/s/ James O. Birchfield
	 

	 	 	 	 
	Thomas E. Anthony

	 	 	 	James O. Birchfield
	 

	 	 	 	Chairman of the Board

 

 

SPLIT DOLLAR POLICY ENDORSEMENT (2 of 3)

FIRST CALIFORNIA BANK SPLIT DOLLAR AGREEMENT

Insured; Thomas E. Anthony

Insurer: New York Life Insurance Company

Policy No.                                         

     Pursuant to the terms of the FIRST CALIFORNIA BANK SPLIT DOLLAR AGREEMENT dated March 27,
2003, the undersigned Owner requests that the above-referenced policy issued by the Insurer provide
for the following beneficiary designation and limited contract ownership rights to the Insured:

     1. Upon the death of the Insured, proceeds shall be paid in one sum to the Owner, its
successors assigns, to the extent of its interest in the policy. It is hereby provided that the
Insurer may rely solely upon statement from the Owner as to the amount of proceeds it is entitled
to receive under this paragraph.

     2. Any proceeds at the death of the Insured in excess of the amount paid under the provisions
of the preceding paragraph shall be paid in one sum to:

 

PRIMARY BENEFICIARY, RELATIONSHIP/SOCIAL SECURITY NUMBER

 

CONTINGENT BENEFICIARY, RELATIONSHIP/SOCIAL SECURITY NUMBER

The exclusive right to change the beneficiary for the proceeds payable under this paragraph,
to elect an optional method of settlement for the proceeds paid under this paragraph which are
available under the terms of the policy and to assign all rights and interests granted under this
paragraph are hereby granted to the Insured. The sole signature of the Insured shall be sufficient
to exercise said rights. The Owner retains its contract rights not granted to the Insured under
this paragraph.

     3. It is agreed by the undersigned that this designation and limited assignment of rights
shall be subject in all respects to the contractual terms of the policy.

     4. Any payment directed by the Owner under this endorsement shall be a full discharge of the
Insure and such discharge shall be binding on all parties claiming any interest under the policy.

The undersigned for the Owner is signing in a representative capacity and warrants that he or she
has the authority to bind the entity on whose behalf this document is being executed.

Signed at Camarillo, California this 27th day of March, 2003.

	 	 	 	 	 
	INSURED:	 	OWNER:
	 	 	FIRST CALIFORNIA BANK
	 
	 	 	 	 
	/s/ Thomas E. Anthony

	 	By
	 	/s/ James O. Birchfield
	 

	 	 	 	 
	Thomas E. Anthony

	 	 	 	James O. Birchfield

Chairman of the Board

 

 

SPLIT DOLLAR POLICY ENDORSEMENT (3 of 3)

FIRST CALIFORNIA BANK SPLIT DOLLAR AGREEMENT

Insured: Thomas E. Anthony

Insurer; West Coast Life Insurance Company

Policy No.                                         

     Pursuant to the terms of the FIRST CALIFORNIA BANK SPLIT DOLLAR AGREEMENT dated March 27,
2003, the undersigned Owner requests that the above-referenced policy issued by West Coast Life
Insurance Company (“Insurer”) provide for the following beneficiary designation and limited
contract ownership rights to the Insured:

     1. Upon the death of the Insured, proceeds shall be paid in one sum to the Owner, its
successors or assigns, to the extent of its interest in the policy. It is hereby provided that the
Insurer may rely solely upon a statement from the Owner as to the amount of proceeds it is entitled
to receive under this paragraph.

     2. Any proceeds at the death of the Insured in excess of the amount paid under the provisions
of the preceding paragraph shall be paid in one sum to:

 

PRIMARY BENEFICIARY, RELATIONSHIP/SOCIAL SECURITY NUMBER

 

CONTINGENT BENEFICIARY, RELATIONSHIP/SOCIAL SECURITY NUMBER

The exclusive right to change the beneficiary for the proceeds payable under this paragraph,
to elect any optional method of settlement for the proceeds paid under this paragraph which are
available under the terms of the policy and to assign all rights and interests granted under this
paragraph are hereby granted to the Insured. The sole signature of the Insured shall be sufficient
to exercise said rights. The Owner retains all contract rights not granted to the Insured under
this paragraph.

     3. It is agreed by the undersigned that this designation and limited assignment of rights
shall be subject in all respects to the contractual terms of the policy.

     4. Any payment directed by the Owner under this endorsement shall be a full discharge of the
Insurer, and such discharge shall be binding on all parties claiming any interest under the policy.

The undersigned for the Owner is signing in a representative capacity and warrants that he or she
has the authority to bind the entity on whose behalf this document is being executed.

Signed at Camarillo, California this 27th day of March, 2003.

	 	 	 	 	 
	INSURED:	 	OWNER:
	 	 	FIRST CALIFORNIA BANK
	 
	/s/ Thomas E. Anthony

	 	By
	 	/s/ James O. Birchfield
	 

	 	 	 	 
	Thomas E. Anthony

	 	 	 	James O. Birchfield
	 

	 	 	 	Chairman of the Board

 

 

BENEFICIARY DESIGNATION

FIRST CALIFORNIA BANK

SALARY CONTINUATION AGREEMENT

Thomas E. Anthony

I designate the following as beneficiary of any death benefits under this Agreement:

			
	Primary:	 	 

	 

 

			
	Contingent:	 	 

	 

 

			
	Note:	 	To name a trust as beneficiary, please provide the name of the trustee(s) and the exact
name and date of the trust agreement

I understand that I may change these beneficiary designations by filing a new written
designation with the Company. I further understand that the designations will be automatically
revoked if the beneficiary predeceases me, or, if I have named my spouse as beneficiary and our
marriage is subsequently dissolved.

	 	 	 	 	 
	Signature

	 	/s/ Thomas E. Anthony
	 	 
	 

	 	 	 	 
	 

	 	Thomas E. Anthony	 	 
	 
	 	 	 	 
	Date

	 	3/27/03	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Received by the Company this 27th day of March, 2003.
	 
	 	 	 	 
	By

	 	/s/ James O. Birchfield	 	 
	 

	 	 	 	 
	 

	 	James O. Birchfield	 	 
	 

	 	Chairman of the Boardexv10w8

 

2/1/05 — Final (1)

  Exhibit 10.8

AGREEMENT AND PLAN OF REORGANIZATION

BY AND AMONG

FIRST CALIFORNIA BANCORP,

SCB MERGER CORP., FIRST CALIFORNIA BANK,

SOUTH COAST BANCORP, INC., AND SOUTH COAST COMMERCIAL BANK

February 2, 2005

 

 

2/1/05 — Final (1)

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	AGREEMENT AND PLAN OF REORGANIZATION
	 	 	1	 
	 
	 	 	 	 
	Recitals
	 	 	1	 
	 
	 	 	 	 
	Main Text
	 	 	2	 
	 
	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	1.01. Certain Definitions
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II THE MERGER
	 	 	8	 
	 
	 	 	 	 
	2.01. The Merger
	 	 	8	 
	 
	 	 	 	 
	2.02. Effective Date and Effective Time
	 	 	8	 
	 
	 	 	 	 
	ARTICLE III CONSIDERATION; EXCHANGE PROCEDURES; CLOSING
	 	 	9	 
	 
	 	 	 	 
	3.01. Effect on Capital Stock
	 	 	9	 
	 
	 	 	 	 
	3.02. Conversion of SCB Common Stock
	 	 	10	 
	 
	 	 	 	 
	3.03. Exchange Procedures
	 	 	10	 
	 
	 	 	 	 
	3.04. Anti-Dilution Provisions
	 	 	11	 
	 
	 	 	 	 
	3.05. Dissenters’ Rights
	 	 	11	 
	 
	 	 	 	 
	3.06. Closing
	 	 	12	 
	 
	 	 	 	 
	3.07. Execution of Agreements
	 	 	12	 
	 
	 	 	 	 
	3.08. Further Assurances
	 	 	12	 
	 
	 	 	 	 
	ARTICLE IV ACTIONS PENDING ACQUISITION
	 	 	12	 
	 
	 	 	 	 
	4.01. Forbearances of SCB
	 	 	12	 
	 
	 	 	 	 
	4.02. Forbearances of FCB
	 	 	16	 
	 
	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES
	 	 	16	 
	 
	 	 	 	 
	5.01. Disclosure Schedules
	 	 	16	 
	 
	 	 	 	 
	5.02. Standard
	 	 	17	 
	 
	 	 	 	 
	5.03. Representations and Warranties of SCB
	 	 	17	 
	 
	 	 	 	 
	5.04. Representations and Warranties of FCB
	 	 	27	 
	 
	 	 	 	 
	ARTICLE VI COVENANTS
	 	 	31	 
	 
	 	 	 	 
	6.01. Reasonable Best Efforts
	 	 	31	 

 

 

	 	 	 	 	 
	 	 	Page	 
	6.02. Shareholder Approval
	 	 	31	 
	 
	 	 	 	 
	6.03. Proxy Statement
	 	 	32	 
	 
	 	 	 	 
	6.04. Press Releases
	 	 	32	 
	 
	 	 	 	 
	6.05. Access; Information
	 	 	32	 
	 
	 	 	 	 
	6.06. Acquisition Proposals
	 	 	33	 
	 
	 	 	 	 
	6.07. [Reserved]
	 	 	34	 
	 
	 	 	 	 
	6.08. [Reserved]
	 	 	34	 
	 
	 	 	 	 
	6.09. Certain Policies
	 	 	34	 
	 
	 	 	 	 
	6.10. Regulatory Applications
	 	 	34	 
	 
	 	 	 	 
	6.11. Indemnification
	 	 	35	 
	 
	 	 	 	 
	6.12. Benefit Plans
	 	 	36	 
	 
	 	 	 	 
	6.13. Non-Competition Agreements
	 	 	37	 
	 
	 	 	 	 
	6.14. Notification of Certain Matters
	 	 	37	 
	 
	 	 	 	 
	6.15. Human Resources Issues
	 	 	37	 
	 
	 	 	 	 
	6.16. Assistance with Third-Party Agreements
	 	 	37	 
	 
	 	 	 	 
	6.17. Second Merger
	 	 	38	 
	 
	 	 	 	 
	6.18. Shareholder Agreements
	 	 	38	 
	 
	 	 	 	 
	6.19. Pre-Closing Adjustments
	 	 	39	 
	 
	 	 	 	 
	6.20. Tax Treatment of the Merger
	 	 	39	 
	 
	 	 	 	 
	6.21. Non-Solicitation Agreement
	 	 	40	 
	 
	 	 	 	 
	6.22. Bank Holding Company Status
	 	 	40	 
	 
	 	 	 	 
	6.23. Capital Raising
	 	 	40	 
	 
	 	 	 	 
	6.24. Employment and Other Agreements
	 	 	40	 
	 
	 	 	 	 
	6.25. Accrual of Expenses Related to the Merger
	 	 	40	 
	 
	 	 	 	 
	ARTICLE VII CONDITIONS TO CONSUMMATION OF THE MERGER
	 	 	41	 
	 
	 	 	 	 
	7.01. Conditions to Each Party’s Obligation to Effect the Merger
	 	 	41	 
	 
	 	 	 	 
	7.02. Conditions to Obligation of SCB
	 	 	42	 
	 
	 	 	 	 
	7.03. Conditions to Obligation of FCB
	 	 	42	 
	 
	 	 	 	 
	ARTICLE VIII TERMINATION
	 	 	45	 
	 
	 	 	 	 
	8.01. Termination
	 	 	45	 
	 
	 	 	 	 
	8.02. Effect of Termination and Abandonment
	 	 	46	 
	 
	 	 	 	 
	ARTICLE IX MISCELLANEOUS
	 	 	47	 

 

 

	 	 	 	 	 
	 	 	Page	 
	9.01. Survival
	 	 	47	 
	 
	 	 	 	 
	9.02. Waiver; Amendment
	 	 	48	 
	 
	 	 	 	 
	9.03. Counterparts
	 	 	48	 
	 
	 	 	 	 
	9.04. Governing Law, Jurisdiction and Venue
	 	 	48	 
	 
	 	 	 	 
	9.05. Expenses
	 	 	48	 
	 
	 	 	 	 
	9.06. Notices
	 	 	49	 
	 
	 	 	 	 
	9.07. Entire Understanding; No Third Party Beneficiaries
	 	 	50	 
	 
	 	 	 	 
	9.08. Effect
	 	 	50	 
	 
	 	 	 	 
	9.09. Severability
	 	 	50	 
	 
	 	 	 	 
	9.10. Enforcement of the Agreement
	 	 	50	 
	 
	 	 	 	 
	9.11. Interpretation
	 	 	50	 

 

 

AGREEMENT AND PLAN OF REORGANIZATION

     THIS AGREEMENT AND PLAN OF REORGANIZATION (“Agreement”) is made and entered into as of the
2nd day of February 2005, by and among FIRST CALIFORNIA BANCORP, a California
corporation (“FCB”), SCB MERGER CORP., a California corporation (the “Merger Subsidiary”), FIRST
CALIFORNIA BANK, a California banking corporation (“FC Bank”), on one hand, and SOUTH COAST
BANCORP, INC., a California corporation (“SCB”), and SOUTH COAST COMMERCIAL BANK, a California
banking corporation (“SCC Bank”) on the other hand.

RECITALS

     A. FCB is a California corporation, having its principal place of business in Camarillo,
California. FC Bank is a California banking corporation and a wholly-owned subsidiary of FCB,
having its principal place of business in Camarillo, California. Merger Subsidiary is a California
corporation and a wholly-owned subsidiary of FCB, having its principal place of business in
Camarillo, California.

     B. SCB is a California corporation having its principal place of business in Irvine,
California. SCC Bank is a California banking corporation and a wholly-owned subsidiary of SCB,
having its principal place of business in Irvine, California. SCB is an S corporation and SCC Bank
is a qualified subchapter S subsidiary.

     C. The respective Boards of Directors of FCB, Merger Subsidiary, and SCB have determined that
it is in the best interests of their respective companies and their shareholders to consummate the
merger of Merger Subsidiary with and into SCB (the “Merger”), followed by the merger of SCB, as the
surviving entity of the Merger, with and into FCB (the “Second Merger”).

     D. It is the intention of the parties to this Agreement that the Merger and Second Merger be
treated as a taxable purchase of all of the outstanding stock of SCB by FCB, followed by a
liquidation of SCB pursuant to Section 332 of the Internal Revenue Code of 1986, as amended (the
“Code”).

     E. As a condition to, and simultaneously with, the execution of this Agreement, each
Shareholder (as defined herein) is entering into an agreement, in the form of Exhibit A hereto,
(collectively, the “Shareholder Agreements”) pursuant to which they have agreed, among other
things, to vote their shares in favor of the principal terms of the Merger.

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     F. As a condition to, and simultaneously with, the execution of this Agreement, each director
of SCB is entering into non-competition agreements with FCB in the form of Exhibit B, hereto
(collectively, the “Non-Competition Agreements”).

     G. As a condition to, and simultaneously with, the execution of this Agreement, Fred Mills is
entering into a non-solicitation agreement in the form of Exhibit E hereto (the “Non-Solicitation
Agreement”).

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants, representations,
warranties and agreements contained herein the parties agree as follows:

ARTICLE I

DEFINITIONS

     1.01. Certain Definitions

     The following terms are used in this Agreement with the meanings set forth below:

     “Acquisition Proposal” has the meaning set forth in Section 6.08.

     “Adjusted Merger Consideration” has the meaning set forth in Section 3.03(b).

     “Adjusted Shareholders’ Equity” shall be determined in accordance with GAAP as of the
Shareholders’ Equity Measuring Date (as set forth in Section 7.03(e) hereof) except that in any
event: (i) SCB’s ALLL shall not be less than One Million One Hundred and Eighty Three Thousand
Dollars ($1,183,000.00); (ii) SCB has paid all dividends that have been declared; (iii) legal and
accounting fees related to the transactions contemplated by this Agreement have been paid or
accrued; (iv) Four Hundred Thousand Dollars ($400,000) of severance payments shall be accrued or
paid (regardless of the amount actually due or paid as of such date), and (v) all of SCB’s expenses
incurred at or prior to the Closing from the transactions contemplated by this Agreement,
including, but not limited to, Executive Payments, shall be accrued. In determining Adjusted
Shareholders’ Equity, (A) gains or losses in SCB’s securities portfolio between the date hereof and
the Shareholders’ Equity Measuring Date shall be excluded and (B) all entries or adjustments made
at the request of FCB and not otherwise required by GAAP or the provisions of this definition shall
be excluded. An example of the calculation of Adjusted Shareholders’ Equity is attached hereto as
Exhibit 1.01.

     “Agreement” means this Agreement, as amended or modified from time to time in accordance with
Section 9.02.

     “Agreement of Merger” means the agreement of merger to be filed with the California Secretary
substantially in the form attached hereto as Exhibit D.

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     “ALLL” has the meaning set forth in Section 5.03(t).

     “Bank Insurance Fund” means the Bank Insurance Fund maintained by the FDIC.

     “Bank Secrecy Act” means the Currency and Foreign Transaction Reporting Act (31 U.S.C.
Section 5311 et seq.), as amended.

     “Base Merger Consideration” means Thirty-Six Million Dollars ($36,000,000.00).

     “Base Shareholders’ Equity” means Sixteen Million Five Hundred Thousand Dollars
($16,500,000.00).

     “Benefit Plans” has the meaning set forth in Section 5.03(m).

     “Business Combination” has the meaning set forth in Section 3.07.

     “Business Day” means Monday through Friday of each week, except a legal holiday recognized as
such by the U.S. Government or any day on which banking institutions in the State of California are
authorized or obligated to close.

     “California Secretary” means the California Secretary of State.

     “CCC” means the California Corporations Code.

     “Closing” has the meaning set forth in Section 6.21.

     “Closing Financial Statements” has the meaning set forth in Section 7.03(f).

     “Code” has the meaning set forth in the Recitals to this Agreement.

     “Community Reinvestment Act” means the Community Reinvestment Act of 1977, as amended.

     “Costs” has the meaning set forth in Section 6.12(a).

     “Decline Adjustment” has the meaning set forth in Section 8.01(g).

     “Derivatives Contract” has the meaning set forth in Section 5.03(q).

     “Disclosure Schedule” has the meaning set forth in Section 5.01.

     “Dissenters’ Shares” has the meaning set forth in Section 3.01(c).

     “Dissenting Shareholder” means any holder of Dissenters’ Shares.

     “Effective Date” has the meaning set forth in Section 2.02.

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     “Effective Time” has the meaning set forth in Section 2.02.

     “Employees” has the meaning set forth in Section 5.03(m).

     “Environmental Laws” has the meaning set forth in Section 5.03(o).

     “Equal Credit Opportunity Act” means the Equal Credit Opportunity Act (15 U.S.C. Section 1691
et seq.) as amended.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “ERISA Affiliate” has the meaning set forth in Section 5.03(m).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder.

     “Exchange Agent” has the meaning set forth in Section 3.03(a).

     “Exchange Fund” has the meaning set forth in Section 3.06(a).

     “Executive Payments” has the meaning set forth in Section 6.24.

     “Fair Housing Act” means the Fair Housing Act (420 U.S.C. Section 3601 et seq.), as amended.

     “FDIC” means the Federal Deposit Insurance Corporation.

     “Federal Reserve Act” means the Federal Reserve Act, as amended.

     “Federal Reserve Board” means the Board of Governors of the Federal Reserve System.

     “Final Index” has the meaning set forth in Section 8.01(g).

     “GAAP” means generally accepted accounting principles.

     “Governmental Authority” means any court, administrative agency or commission or other
federal, state or local governmental authority or instrumentality.

     “Hazardous Substance” has the meaning set forth in Section 5.03(o).

     “Home Mortgage Disclosure Act” means the Home Mortgage Disclosure Act (12 U.S.C. Section 2801
et seq.), as amended.

     “Indemnified Party” has the meaning set forth in Section 6.12(a).

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     “Index” has the meaning set forth in Section 8.01(g).

     “Initial Index” has the meaning set forth in Section 8.01(g).

     “Insurance Amount” has the meaning set forth in Section 6.11(b).

     “Insurance Policies” has the meaning set forth in Section 5.03(s).

     “Knowledge” of FCB, the Merger Subsidiary, FC Bank, SCB or SCC Bank, as the case may be, means
to the actual knowledge after reasonable investigation of any director or any officer with the
title of Vice President or above of FCB, the Merger Subsidiary, FC Bank, SCB or SCC Bank, as the
case may be, or any employee of FCB, the Merger Subsidiary, FC Bank, SCB or SCC Bank, as the case
may be, with primary responsibility for the subject matter as to which knowledge is at issue.

     “Lien” means any charge, mortgage, pledge, security interest, restriction, claim, lien or
encumbrance.

     “Mailing Date” has the meaning set forth in Section 3.03(a).

     “Material Adverse Effect” means, with respect to FCB or SCB, any effect, circumstance,
occurrence or change that (i) is material and adverse to the financial position, results of
operations, or business of FCB and its Subsidiaries taken as a whole or SCB and SCC Bank taken as a
whole, as the case may be, or (ii) would materially impair the ability of either FCB or SCB,
respectively, to perform its obligations under this Agreement or otherwise materially threaten or
materially impede the consummation of the Merger and the other transactions contemplated by this
Agreement; provided, however, that a Material Adverse Effect shall not be deemed to include the
impact of (a) changes in banking and similar laws of general applicability or interpretations
thereof by Governmental Authorities, (b) changes in GAAP or regulatory accounting requirements
applicable to banks and their holding companies generally, (c) changes in general economic
conditions affecting banks and their holding companies generally and (d) changes contemplated by
this Agreement or otherwise agreed to in writing by FCB and SCB.

     “Merger” has the meaning set forth in the Recitals to this Agreement.

     “Minimum Percentage” has the meaning set forth in Section 3.03(d).

     “National Labor Relations Act” means the National Labor Relations Act, as amended.

     “Non-Competition Agreements” has the meaning set forth in the Recitals to this Agreement.

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     “Non-Solicitation Agreement” has the meaning set forth in the Recitals to this Agreement.

     “FCB” has the meaning set forth in the preamble to the Agreement.

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

     “FCB Common Stock” means the common stock, no par value per share, of FCB.

     “FCB Preferred Stock” means the preferred stock of FCB.

     “Pension Plan” has the meaning set forth in Section 5.03(m).

     “Person” means any individual, bank, corporation, partnership, association, joint-stock
company, business trust, limited liability company or unincorporated organization.

     “Proxy Statement” has the meaning set forth in Section 6.03(a).

     “Registration Statement” has the meaning set forth in Section 6.03(a).

     “Regulatory Authorities” has the meaning set forth in Section 5.03(i).

     “Regulatory Filings” has the meaning set forth in Section 5.03(g).

     “Rights” means, with respect to any Person, the stock options, stock appreciation rights,
warrants and any other securities or obligations convertible into or exercisable or exchangeable
for, or giving any Person any right to subscribe for or acquire, or any options, calls or
commitments relating to, or any other instrument the value of which is determined in whole or in
part by reference to the market price or value of, the capital stock of such Person.

     “SCB Articles” means the Articles of Incorporation of SCB, as amended.

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

     “SCB By-Laws” means the By-Laws of SCB.

     “SCB Common Stock” means the common stock, no par value per share, of SCB.

     “SCB Loan Property” has the meaning set forth in Section 5.03(o).

     “SCB Meeting” has the meaning set forth in Section 6.02.

     “SCB Preferred Stock” means the preferred stock of SCB.

     “SCB Property” has the meaning set forth in Section 5.03(o).

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     “SC Financial” has the meaning set forth in Section 5.03(c).

     “Schedule Delivery Date” has the meaning set forth in Section 5.01.

     “SEC” means the United States Securities and Exchange Commission.

     “Second Merger” has the meaning set forth in the Recitals to this Agreement.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
thereunder.

     “Shareholder” means each director and executive officer of SCB who owns any shares of SCB
Common Stock or owns any options or other rights to acquire shares of SCB Common Stock.

     “Shareholder Agreements” has the meaning set forth in the Recitals to this Agreement.

     “Shareholders’ Equity Measuring Date” has the meaning set forth in Section 7.03(e).

     “Subsidiary” and “Significant Subsidiary” have the meanings ascribed to those terms in Rule
1-02 of Regulation S-X of the SEC.

     “Surviving Company” has the meaning set forth in Section 2.01(a).

     “Tax” and “Taxes” mean all federal, state, local or foreign taxes, charges, fees, levies or
other assessments, however denominated, including, without limitation, all net income, gross
income, gains, gross receipts, sales, use, ad valorem, goods and services, capital, production,
transfer, franchise, windfall profits, license, withholding, payroll, employment, disability,
employer health, excise, estimated, severance, stamp, occupation, property, environmental,
unemployment or other taxes, custom duties, fees, assessments or charges of any kind whatsoever,
imposed on the income, properties or operations of SCB by any taxing authority whether arising
before, on or after the Effective Date, together with any interest, additions or penalties thereto
and any interest in respect of such interest and penalties.

     “Tax Returns” means any return, amended return or other report (including elections,
declarations, disclosures, schedules, estimates and information returns) required to be filed with
any taxing authority having jurisdiction over SCB on or before the Effective Date with respect to
any Taxes of SCB including, without limitation, any documentation required to be filed with any
taxing authority or to be retained by the SCB in respect of information reporting requirements
imposed by the Code or any similar foreign, state or local law.

     “Termination Fee” has the meaning set forth in Section 8.02(b).

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     “Treasury Shares” has the meaning set forth in Section 3.01(d).

     “Undesignated Shares” has the meaning set forth in Section 3.03(a).

     “USA Patriot Act” means the USA Patriot Act (Pub. L. No. 107 56).

ARTICLE II

THE MERGER

     2.01. The Merger

     (a) The Combination. At the Effective Time, the Merger Subsidiary shall merge with and into
SCB, the separate corporate existence of Merger Subsidiary shall cease and SCB shall survive,
continue to exist as a California corporation and operate under the name “South Coast Bancorp,
Inc.” (the “Surviving Company”). FCB may, at any time prior to the Effective Time (including, to
the extent permitted by applicable law, after SCB’s shareholders have approved the principal terms
of the Merger) change the method of effecting the acquisition of SCB (including, without
limitation, the provisions of this Article II) if and to the extent it deems such change to be
necessary, appropriate or desirable; provided, however, that no such change shall (i) alter or
change the amount or kind of consideration to be issued to holders of SCB Common Stock as provided
for in this Agreement (the “Merger Consideration”), (ii) adversely affect the tax treatment of
SCB’s shareholders as a result of receiving the Merger Consideration, (iii) materially impede or
delay consummation of the transactions contemplated by this Agreement or (iv) otherwise be
materially prejudicial to the interests of the shareholders of SCB.

     (b) Articles of Incorporation and By-Laws. On the Effective Date, the articles of
incorporation and by-laws of SCB, as in effect immediately prior to the Effective Date, shall be
and remain the articles of incorporation and by-laws of the Surviving Company.

     (c) Directors and Officers of the Surviving Company. On the Effective Date, the directors and
officers of Merger Sub immediately prior to the Effective Date shall become the directors and
officers of the Surviving Company. The directors of the Surviving Company shall serve until the
next annual meeting of shareholders of the Surviving Company or until such time as their successors
are elected and have qualified.

     (d) Effect of the Merger. At the Effective Time, the effect of the Merger shall be as
provided in §1107 of the CCC, including any regulations or rules promulgated thereunder.

     2.02. Effective Date and Effective Time

     On such date as FCB selects (and promptly provides notice thereof to SCB) that is (a) on or
after June 30, 2005, or any earlier date that is specifically agreed in writing by the parties, (b)
no later than September 30, 2005, and (b) within ten days after the last to occur of the expiration
of all applicable waiting periods in connection with approvals of

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Governmental Authorities and the receipt of all approvals of Governmental Authorities and all
conditions to the consummation of the Merger are satisfied or waived (or, at the election of FCB,
on the last business day of the month in which such tenth day occurs or, if such tenth day occurs
on one of the last five business days of such month, on the last business day of the succeeding
month), or such earlier or later date as may be agreed in writing by the parties, the Agreement of
Merger shall be filed with the California Secretary, in accordance with all appropriate legal
requirements together with such certificates or other documents executed as may be required by law,
and the Merger provided for herein shall become effective upon such filing. The date of such
filing is herein called the “Effective Date.” The “Effective Time” of the Merger shall be the time
of such filing.

ARTICLE III

CONSIDERATION; EXCHANGE PROCEDURES; CLOSING

     3.01. Effect on Capital Stock

     Subject to the other provisions of this Article III, at the Effective Time of the Merger, by
virtue of the Merger and without any additional action on the part of the holder of shares of SCB
Common Stock or the Merger Subsidiary Common Stock:

     (a) The Merger Subsidiary Common Stock. On the Effective Date, the shares of common stock
of the Merger Subsidiary issued and outstanding immediately prior to the Effective Date shall
thereupon be converted into and exchanged by FCB for one (1) share of fully paid common stock of
the Surviving Company. On the Effective Date, the 1 share of common stock of the Surviving Company
shall be held by FCB, representing 100% of the issued and outstanding common stock of the Surviving
Company, and shall not be deemed to represent a share of SCB Common Stock which has been converted
into the right to receive the Per Share Merger Consideration as provided in Section 3.03;

     (b) SCB Common Stock. On the Effective Date, each share of SCB Common Stock, issued and
outstanding immediately prior to the Effective Time of the Merger (other than Dissenters’ Shares,
as defined below) shall be converted into the right to receive the Per Share Merger Consideration
as provided in Section 3.03 hereof; and

     (c) Dissenters’ Shares. All shares of SCB Common Stock that are “dissenting shares” within
the meaning of CCC §1300 (“Dissenters’ Shares”) shall not be converted into or represent a right to
receive the Per Share Merger Consideration hereunder and shall only be entitled to such per share
compensation as provided by applicable law.

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     3.02. Conversion of SCB Common Stock

     (a) Subject to the other provisions of this Article III, each share of SCB Common Stock issued
and outstanding immediately prior to the Effective Time of the Merger (other than Dissenters’
Shares) shall, by virtue of the Merger on and after the Effective Time, automatically be cancelled
and cease to be an issued and outstanding share of SCB Common Stock and shall be converted into the
right to receive the Per Share Merger Consideration (as defined in Section 3.03 below).
Certificates formerly evidencing shares of SCB Common Stock shall be surrendered for payment to the
Exchange Agent in accordance with Section 3.03 below.

     (b) On and after the Effective Time of the Merger, the stock transfer books of
the Surviving Company shall be closed as to holders of SCB Common Stock immediately prior to the
Effective Time of the Merger and no transfer of SCB Common Stock by any such holder shall
thereafter be made or recognized.

     3.03. Exchange Procedures

     (a) Exchange Agent. No later than the Effective Time of the Merger, FCB shall deposit cash
with the Exchange Agent equal to the Net Total Merger Consideration (as defined in Section 3.03(b)
below) (the “Exchange Fund”).

     (b) Exchange Fund and Per Share Merger Price.

     The aggregate amount payable in cash pursuant to Section 3.02 for all of the outstanding
shares of SCB Common Stock shall be the Base Merger Consideration; provided that SCB’s Adjusted
Shareholders’ Equity is at least equal to the Base Shareholders’ Equity. Should SCB’s Adjusted
Shareholders’ Equity be less than the Base Shareholders’ Equity, then the Base Merger Consideration
shall be reduced by the lesser of (i) that amount by which the Adjusted Shareholders’ Equity is
less than the Base Shareholders’ Equity, or (ii) Two Million Five Hundred Thousand Dollars
($2,500,000) (the Base Merger Consideration as so reduced shall be referred to as the “Adjusted
Merger Consideration.”). The amount payable pursuant to Section 3.02 for each outstanding share of
SCB Common Stock (the “Per Share Merger Consideration”) shall be equal to the quotient obtained by
dividing (i) the Base Merger Consideration or the Adjusted Merger Consideration, as applicable, by
(ii) the total number of shares of SCB Common Stock outstanding immediately prior to the Effective
Time of the Merger (including Dissenting Shares).

     (c) Delivery of Cash. After the Effective Time of the Merger, delivery to the holders of
SCB Common Stock of the cash to which they are entitled will be promptly made by the Exchange Agent
against delivery of share certificates formerly evidencing SCB Common Stock to the Exchange Agent
in accordance with this Section 3.03 and the terms and conditions of an agreement to be entered
into by and between FCB and the Exchange Agent (the “Exchange Agent Agreement”). A copy of the
Exchange Agent

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Agreement will be provided to SCB and its counsel for approval prior to consummation of the Merger,
which approval shall not be unreasonably withheld.

     As soon as practicable after the Effective Time of the Merger, the Exchange Agent shall send a
notice and transmittal form to each holder of a certificate previously representing shares of SCB
Common Stock advising such holders of the procedure for surrendering to the Exchange Agent such
certificate for conversion into cash. Each holder of such certificates, upon surrender of the same
to the Exchange Agent in accordance with such transmittal form, shall be entitled to receive the
consideration provided for in Section 3.02 hereof, with the exception of holders of Dissenting
Shares. If the consideration for shares of SCB Common Stock provided for in Section 3.02 is to be
delivered to any person other than the registered holder of said shares surrendered for exchange,
the amount of any stock transfer tax or similar taxes (whether imposed on the registered holder or
such person) payable on account of the transfer to such person shall be paid to the Exchange Agent
by such person, or the Exchange Agent may refuse to make such exchange unless satisfactory evidence
of the payment of such taxes or exemption therefrom is submitted.

     (d) Unclaimed Portion of Exchange Fund. Any portion of the Exchange Fund that remains
unclaimed by the shareholders of SCB for six months after the Effective Time shall be paid to FCB.
Any shareholders of SCB who have not theretofore complied with this Article III shall thereafter
look only to FCB for payment of the Per Share Merger Price for which such shareholder is entitled
to pursuant to this Agreement, without any interest thereon.

     (g) Withholding Rights. FCB, the Surviving Company or the Exchange Agent shall be entitled
to deduct and withhold from the consideration otherwise payable pursuant to this Agreement to any
holder of shares of SCB Common Stock such amounts as FCB, the Surviving Company or the Exchange
Agent is required to deduct and withhold with respect to the making of such payment under the Code,
or any provision of state, local or foreign tax law. To the extent that amounts are so withheld by
FCB, the Surviving Company or the Exchange Agent, such withheld amounts shall be treated for all
purposes of this Agreement as having been paid to the holder of the shares of SCB Common Stock in
respect of which such deduction and withholding was made by FCB, the Surviving Company or the
Exchange Agent.

     3.04. Anti-Dilution Provisions

     In the event SCB changes (or establishes a record date for changing) the number of shares of
SCB Common Stock issued and outstanding prior to the Effective Date as a result of a stock split,
stock dividend, recapitalization or similar transaction with respect to the outstanding SCB Common
Stock, as the case may be, and the record date therefor shall be prior to the Effective Date, the
Per Share Merger Consideration shall be proportionately adjusted.

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     3.05. Dissenters’ Rights

     (a) Any Dissenting Shareholder who shall be entitled to be paid the value of such
shareholder’s shares of SCB Common Stock, as provided in §1300 of the CCC, shall not be entitled to
the Per Share Merger Consideration in respect thereof provided for under Section 3.02 unless and
until such Dissenting Shareholder shall have failed to perfect or shall have effectively withdrawn
or lost such Dissenting Shareholder’s right to dissent from the Merger under the CCC, and shall be
entitled to receive only the payment provided for by §1300 of the CCC with respect to such
Dissenters’ Shares.

     (b) If any Dissenting Shareholder shall fail to perfect or shall have effectively withdrawn or
lost such right to dissent, each share of SCB Common Stock of such Dissenting Shareholder shall be
deemed to be an Undesignated Share and shall be converted into the right to receive the Per Share
Merger Consideration.

     3.06. Closing

     The Closing shall take place on the Closing Date.

     3.07. Execution of Agreements

     As soon as practicable after execution of this Agreement, the Agreement of Merger, (as
amended, if necessary, to conform to any requirements of any Governmental Entity having authority
over such merger(s)) together with all other agreements necessary to consummate the transactions
described herein, shall be executed by the parties thereto. On the Closing Date, the Agreement of
Merger, together with all requisite certificates, shall be duly filed with the California
Secretary.

     3.08. Further Assurances

     At the Closing, the Parties hereto shall deliver, or cause to be delivered, such documents or
certificates as may be necessary in the reasonable opinion of counsel for any of the parties, to
effectuate the transactions contemplated by this Agreement. If, at any time after the Effective
Time the Merger, the Surviving Company or a successor or assign shall determine that any further
conveyance, assignment, or other documents or any further action is necessary or desirable to
further effectuate the transactions set forth herein or contemplated hereby, the officers and
directors of the Parties shall execute and deliver, or cause to be executed and delivered, all such
documents as may be reasonably required to effectuate such transactions.

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ARTICLE IV

ACTIONS PENDING ACQUISITION

     4.01. Forbearances of SCB 

     From the date hereof until the Effective Time, except as expressly contemplated by this
Agreement, and except as set forth in the corresponding sections or subsections of the Disclosure
Schedule, without the prior written consent of FCB (which consent shall not be unreasonably
withheld), SCB will not, and will not permit SCC Bank to:

     (a) Ordinary Course. Conduct the business of SCB or of SCC Bank other than in the ordinary
and usual course or fail to use its best efforts to preserve intact its business organizations and
assets and maintain its rights, franchises and existing goodwill and relations with customers,
suppliers, employees and business associates, take any action that would adversely affect or delay
the ability of SCB or of SCC Bank, FCB or any Subsidiaries of FCB to perform any of their
obligations on a timely basis under this Agreement, or take any action that could be expected to
have a Material Adverse Effect on SCB or SCC Bank.

     (b) Capital Stock. Other than pursuant to the Rights set forth in Schedule 4.01(b) of the
Disclosure Schedule and outstanding on the date hereof (i) issue, sell or otherwise permit to
become outstanding, or authorize the creation of, any additional shares of stock or any Rights,
(ii) enter into any agreement with respect to the foregoing or (iii) permit any additional shares
of stock to become subject to grants of employee or director stock options, other Rights or similar
stock-based employee rights.

     (c) Dividends; Etc. From January 2, 2005 until the Closing: (i) Make, declare, pay or set
aside for payment any dividend on or in respect of, or declare or make any distribution on any
shares of stock in excess of (A) Five Hundred and Eighty-Five Thousand Dollars ($585,000) plus (B)
the amount of retained cash in SCB accounts as of January 2, 2005, and any interest as may be
earned thereon (constituting a portion of previously taxed but undistributed income), but not to
exceed Two Hundred Seventy Thousand Dollars ($270,000.00); or (ii) directly or indirectly adjust,
split, combine, redeem, reclassify, purchase or otherwise acquire, any shares of its capital stock.

     (d) Compensation; Employment Agreements; Etc. Enter into, renew, make any new grants of
awards under, amend or otherwise modify any employment, consulting, severance or similar agreements
or arrangements with any director, officer or employee of SCB or of SCC Bank or grant any salary or
wage increase or increase any employee benefit (including incentive or bonus payments), except (i)
for normal individual increases in compensation to employees in the ordinary course of business
consistent with past practice, provided that no such increase shall result in an annual adjustment
of more than 5%, (ii) for other changes that are required by applicable law, (iii) to satisfy
contractual obligations existing as of the date hereof and set forth in Schedule 4.01(d) of the
Disclosure Schedule or (iv) for grants of awards to newly hired employees consistent with past
practice.

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     (e) Hiring. Hire any person as an employee of SCB or of SCC Bank or promote any employee,
except (i) to satisfy contractual obligations existing as of the date hereof and set forth in
Schedule 4.01(e) of the Disclosure Schedule and (ii) persons hired to fill any vacancies arising
after the date hereof and whose employment is terminable at the will of SCB or of SCC Bank.
Subject to the foregoing limitations, SCB or SCC Bank shall not, without consent of FCB, which
shall not be unreasonably withheld or delayed more than three Business Days, hire any new
additional employee who would have a base salary, including any guaranteed bonus, considered on an
annual basis of more than $70,000.

     (f) Benefit Plans. Enter into, establish, adopt or amend (except (i) as may be required by
applicable law or (ii) to satisfy contractual obligations existing as of the date hereof and set
forth in Schedule 4.01(f) of the Disclosure Schedule) any pension, retirement, stock option, stock
purchase, savings, profit sharing, deferred compensation, consulting, bonus, group insurance or
other employee benefit, incentive or welfare contract, plan or arrangement, or any trust agreement
(or similar arrangement) related thereto, in respect of any current or former director, officer or
employee of SCB or of SCC Bank or take any action to accelerate the vesting or exercisability of
stock options, restricted stock or other compensation or benefits payable thereunder, as
applicable.

     (g) Dispositions. Sell, transfer, mortgage, pledge, encumber or otherwise dispose of or
discontinue any of its assets, deposits, business or properties except in the ordinary course of
business or in a transaction that, together with all other related similar transactions, is not
material to SCB or of SCC Bank.

     (h) Acquisitions. Acquire (other than by way of foreclosures or acquisitions of control in
a bona fide fiduciary capacity or in satisfaction of debts previously contracted in good faith, in
each case in the ordinary and usual course of business consistent with past practice) all or any
portion of the assets, business, deposits or properties of any other entity except in the ordinary
course of business consistent with past practice or in a transaction that, together with all other
related similar transactions, is not material to SCB or of SCC Bank.

     (i) Capital Expenditures. Except as set forth in Schedule 4.01(i) of the Disclosure
Schedule, make any capital expenditures other than capital expenditures in the ordinary course of
business consistent with past practice in amounts not exceeding $10,000 individually or $25,000 in
the aggregate.

     (j) Governing Documents. Amend SCB’s Articles or SCB’s By-Laws or the equivalent
organizational documents of SCC Bank.

     (k) Accounting Methods. Implement or adopt any change in its accounting principles,
practices or methods, other than as may be required by GAAP.

     (l) Contracts. Except as set forth in Schedule 4.01(l) of the Disclosure Schedule enter
into, renew or terminate, or make any payment not then required under,

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any contract or agreement that calls for aggregate annual payments of $25,000 or more and which is
not terminable at will or with 60 days or less notice without payment of a premium or penalty,
other than loans and other transactions made in the ordinary course of the banking business.

     (m) Claims. Enter into any settlement or similar agreement with respect to, or take any
other significant action with respect to the conduct of, any action, suit, proceeding, order or
investigation to which SCB or of SCC Bank is or becomes a party on or after the date of this
Agreement, which settlement, agreement or action involves payment by SCB or of SCC Bank of an
amount, individually or for all such settlements, that exceeds $25,000 and/or would impose any
material restriction on the business of SCC Bank or create precedent for claims that are reasonably
likely to be material to SCB or of SCC Bank.

     (n) Adverse Actions. Knowingly take any action that is intended or is reasonably likely to
result in (i) any of its representations and warranties set forth in this Agreement being or
becoming untrue in any material respect at any time at or prior to the Effective Time, (ii) any of
the conditions to the Merger set forth in Article VII not being satisfied or (iii) a material
violation of any provision of this Agreement except as may be required by applicable law or
regulation.

     (o) Risk Management. Except as required by applicable law or regulation or the Federal
Reserve Board or FDIC, (i) implement or adopt any material change in its interest rate and other
risk management policies, procedures or practices, (ii) fail to follow its existing policies or
practices with respect to managing its exposure to interest rate and other risk or (iii) fail to
use commercially reasonable means to avoid any material increase in its aggregate exposure to
interest rate risk.

     (p) Indebtedness. Incur any indebtedness for borrowed money (other than deposits, Federal
Funds borrowings and borrowings from the Federal Home Loan Bank of San Francisco) or assume,
guarantee, endorse or otherwise as an accommodation become responsible for the obligations of any
other Person.

     (q) Loans. Make any loan, loan commitment or renewal or extension thereof to any Person
which would, when aggregated with all outstanding loans, commitments for loans or renewals or
extensions thereof made to such Person and any affiliate or immediate family member of such Person,
exceed $100,000 without submitting loan package information to the chief credit officer of FCB for
review with a right of comment at least two full Business Days prior to taking such action, and
with a right of subsequent review should the terms of any prospective loan, loan commitment or
renewal or extension thereof change materially from the loan package information previously
submitted to the chief credit officer of FCB.

     (r) Investments. Purchase or acquire securities of any type or make any investment either
by contributions to capital, property transfers or purchase of any property or assets of any
Person, other than (i) in the ordinary course of business

15

 

consistent with past practice in individual amounts not to exceed $100,000, or (ii) purchases of
direct obligations of the United States of America or obligations of U.S. government agencies which
are entitled to the full faith and credit of the United States of America, in any case with a
remaining maturity at the time of purchase of two years or less.

     (s) Taxes. Settle any material audit, make or change any material Tax election, file any
amended Tax Return, take any action which would have a Material Adverse Effect on the Tax position
of SCB or of SCC Bank or their respective successors after the Merger or take any other action with
respect to Taxes that is outside the ordinary course of business or inconsistent with past
practice.

     (t) Commitments. Agree or commit to do any of the foregoing.

     4.02. Forbearances of FCB

     From the date hereof until the Effective Time, except as expressly contemplated by this
Agreement, without the prior written consent of SCB, neither FCB nor FC Bank will:

     (a) Ordinary Course. Take any action reasonably likely to have an adverse effect on FCB’s
ability to perform any of its material obligations under this Agreement.

     (b) Adverse Actions. Knowingly take any action that is intended or is reasonably likely to
result in (i) any of its representations and warranties set forth in this Agreement being or
becoming untrue in any material respect at any time at or prior to the Effective Time, (ii) any of
the conditions to the Merger set forth in Article VII not being satisfied or (iii) a material
violation of any provision of this Agreement, except as may be required by applicable law or
regulation.

     (c) Commitments. Agree or commit to do any of the foregoing.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

     5.01. Disclosure Schedules

     Prior to the execution of this Agreement, SCB shall have delivered to FCB a draft of a
schedule (the “Disclosure Schedule”) setting forth, among other things, items the disclosure of
which is necessary or appropriate either in response to an express disclosure requirement contained
in a provision hereof or as an exception to one or more representations or warranties contained in
Section 5.03 or to one or more of its covenants contained in Article IV, and SCB shall deliver to
FCB a complete Disclosure Schedule within ten (10) business days after the execution of this
Agreement (“Schedule Delivery

16

 

Date”); provided, however, that (a) no such item is required to be set forth in the Disclosure
Schedule as an exception to a representation or warranty if its absence could not reasonably be
expected to result in the related representation or warranty being deemed untrue or incorrect under
the standard established by Section 5.02 and (b) the mere inclusion of an item in the Disclosure
Schedule as an exception to a representation or warranty shall not be deemed an admission by a
party that such item represents a material exception or fact, event or circumstance or that such
item is reasonably likely to result in a Material Adverse Effect.

     5.02. Standard

     No representation or warranty of SCB or FCB contained in Section 5.03 or 5.04, respectively,
shall be deemed untrue or incorrect, and no party hereto shall be deemed to have breached a
representation or warranty, as a consequence of the existence of any fact, event or circumstance
unless such fact, circumstance or event, individually or taken together with all other facts,
events or circumstances inconsistent with any representation or warranty contained in Section 5.03
or 5.04, has had or is reasonably likely to have a Material Adverse Effect on the party making such
representation or warranty.

     5.03. Representations and Warranties of SCB

     Subject to Sections 5.01 and 5.02 and except as set forth in the corresponding sections or
subsections of the Disclosure Schedule, SCB hereby represents and warrants to FCB and FC Bank:

     (a) Organization, Standing and Authority. SCB is a corporation duly organized and validly
existing under the laws of the state of California. SCC Bank is California banking corporation and
its deposits are insured by the FDIC through the Bank Insurance Fund in the manner and to the
fullest extent provided by law. SCB is duly qualified to do business and is in good standing in
the State of California and any other foreign jurisdictions where its ownership or leasing of
property or assets or the conduct of its business requires it to be so qualified. SCB has made
available to FCB a complete and correct copy of SCB’s articles of incorporation and by-laws, each
as amended to date. SCB and SCC Bank are both S-corporations under the Code.

     (b) SCB Capital Stock. The authorized capital stock of SCB consists of 8,000,000 shares of
SCB Common Stock, of which 3,049,504 shares are issued and outstanding, and 500,000 shares of SCB
Preferred Stock of which no shares are issued and outstanding. No shares of the SCB Common Stock
are held in treasury by SCB or otherwise owned directly or indirectly by SCB. The outstanding
shares of SCB Common Stock have been duly authorized and are validly issued and outstanding, and
subject to no preemptive rights (and were not issued in violation of any preemptive rights). No
more than 20,000 shares of SCB Common Stock are issuable upon exercise of any Rights. Schedule
5.03(b) of the Disclosure Schedule sets forth for each Right, the name of the grantee or holder,
the date of the grant, the expiration date of such Right, the type of grant, the number of shares
of SCB Common Stock subject to such Right, the number

17

 

and type of shares subject to such Rights that are currently exercisable and the exercise price per
share. Except as set forth above, there are no shares of SCB Common Stock authorized and reserved
for issuance, SCB does not have any other Rights issued or outstanding with respect to SCB Common
Stock, and SCB does not have any commitment to authorize, issue or sell any SCB Common Stock or
Rights, except pursuant to this Agreement.

     (c) Subsidiaries. SCB’s only Subsidiaries are SCC Bank, a California banking corporation,
and SC Financial, a California corporation (“SC Financial”). SCB owns all the issued and
outstanding equity securities of SCC Bank and SC Financial. No equity securities of SCC Bank or SC
Financial are or may become required to be issued by reason of any Right or otherwise. There are
no contracts, commitments, understandings or arrangements by which SCC Bank or SC Financial is or
may be bound to sell or otherwise transfer any equity securities of SCC Bank or SC Financial,
respectively. There are no contracts, commitments, understandings, or arrangements relating to
SCB’s rights to vote or to dispose of such securities. All the equity securities of SCC Bank and
SC Financial held by SCB are fully paid, nonassessable and owned by SCB free and clear of any
Liens.

     (i) Except as set forth in Schedule 5.03(c)(i), SCB does not own, directly or
indirectly, any equity securities or similar interests of any Person or any interests of
any Person or any interest in a partnership or joint venture of any kind, other than those
of SCC Bank.

     (ii) SCC Bank has been duly organized and is validly existing in good standing under
the laws of the State of California, and is duly qualified to do business and in good
standing in the jurisdictions where its ownership or leasing of property or the conduct of
its business requires it to be so qualified.

     (d) Corporate Power. Each of SCB and SCC Bank has all corporate power and authority to
carry on its business as it is now being conducted and to own all its properties and assets; and
SCB has all corporate power and authority and has taken all corporate action necessary to execute,
deliver and perform its obligations under this Agreement and to consummate the transactions
contemplated hereby.

     (e) Corporate Authority. SCB’s Board of Directors, by resolutions duly adopted at a meeting
duly called and held, has duly (i) determined that this Agreement and the Merger are advisable and
fair to and in the best interests of SCB and its shareholders, (ii) approved this Agreement and the
Merger and (iii) recommended that its shareholders approve this Agreement and the Merger and that
such matter be submitted for consideration by its shareholders at a meeting of such shareholders.
SCB has duly executed and delivered this Agreement and this Agreement is a valid and legally
binding obligation of SCB, enforceable in accordance with its terms (except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer
and similar laws of general applicability relating to or affecting creditors’ rights or by general
equity principles).

18

 

     (f) Regulatory Approvals; No Violations.

     (i) No consents or approvals of, or waivers by, or filings or registrations with, any
Governmental Authority or with any third party are required to be made or obtained by SCB
in connection with the execution, delivery or performance by SCB of this Agreement or to
consummate the Merger except for (A) filings of applications or notices with, and approvals
or waivers by, the Federal Reserve Board, the FDIC, and the DFI, (B) the approval of the
principal terms of this Agreement by the holders of a majority of the outstanding shares of
SCB Common Stock and (C) the filing of an executed agreement of merger substantially in the
form of Exhibit D hereto (the “Agreement of Merger”) with the California Secretary pursuant
to the CCC. As of the date hereof, SCB is not aware of any reason why the approvals set
forth in this Section 5.03(f) and in Section 7.01(b) will not be received without the
imposition of a condition, restriction or requirement of the type described in Section
7.01(b).

     (ii) Subject to receipt of the approvals referred to in the preceding paragraph, and
the expiration of related waiting periods, and required filings under federal and state
securities laws, the execution, delivery and performance of this Agreement by SCB and the
consummation of the transactions contemplated hereby and thereby do not and will not (A)
constitute a breach or violation of, or a default under, or give rise to any Lien, any
acceleration of remedies or any right of termination under, any law, rule or regulation or
any judgment, decree, order, governmental permit or license, or agreement, indenture or
instrument of SCB to which SCB or any of its respective properties is subject or bound, (B)
constitute a breach or violation of, or a default under, the articles of incorporation or
by-laws (or similar governing documents) of SCB or SCC Bank or (C) require any consent or
approval under any such law, rule, regulation, judgment, decree, order, governmental permit
or license, agreement, indenture or instrument.

     (g) Financial Reports; Material Adverse Effect.

     (i) SCB (A) has delivered to FCB audited consolidated financial
statements of SCB consisting of the consolidated balance sheets as of

December 31, 2003, 2002 and 2001, the related statements of operations, changes in
shareholders’ equity and statements of cash flow for the periods then ended, and the
related notes and related accountant’s opinions thereon; and (B) shall deliver to FCB
audited consolidated financial statements of SCB, consisting of the consolidated balance
sheets as of December 31, 2004, the related statements of operations, changes in
shareholders’ equity and statements of cash flow for the periods then ended, and the
related notes and related accountant’s opinions thereon, within 10 days of receipt of such
financial statements from SCB’s accountants (collectively, the “SCB Financial Statements”).
The SCB Financial Statements (i) present fairly the financial condition of SCB as of the
respective dates indicated and the results of operations, the changes in stockholders’
equity and cash flows for the respective periods indicated; (ii) have been prepared in

19

 

accordance with GAAP applied on a basis consistent with past practices; (iii) contain and
reflect reserves for all material accrued liabilities and for all reasonably anticipated
losses, including but not limited to adequate reserves for loan and lease losses; and (iv)
are based on the books and records of SCB. SCB is not subject to any liability (whether
accrued, absolute, contingent or otherwise), except as reflected in the SCB Financial
Statements, as disclosed in Schedule 5.03(g) or as otherwise disclosed in writing to FCB
prior to the execution of this Agreement, or as incurred since December 31, 2004 in the
ordinary course of business. SCB does not know of any basis for the assertion against it
or SCC Bank of any liability, obligation or claim (including, without limitation, that of
any regulatory authority) that would be reasonably likely to result in or cause a Material
Adverse Effect with respect to SCB or SCC Bank which is not fairly reflected in the SCB
Financial Statements delivered to FCB or otherwise disclosed on Schedule 5.03(g).

     (ii) SCB and SCC Bank have timely filed all reports, registrations and statements,
together with any amendments required to be made with respect thereto, that they were
required to file since December 31, 2001 with (A) the Federal Reserve Board, (B) the FDIC,
(C) the DFI and (D) any other Regulatory Authority (collectively, the “Regulatory
Filings”), and all other reports and statements required to be filed by them since December
31, 2001, including, without limitation, any report or statement required to be filed
pursuant to the laws of the United States or the State of California and the rules and
regulations of the Federal Reserve Board, the FDIC, the DFI or any other Regulatory
Authority, and have paid all fees and assessments due and payable in connection therewith.
As of their respective dates, such reports, registrations and statements complied in all
material respects with all the laws, rules and regulations of the applicable Regulatory
Agency with which they were filed.

     (iii) Since December 31, 2003, SCB and SCC Bank have not incurred any liability other
than in the ordinary course of business consistent with past practice (excluding the
incurrence of liabilities related to this Agreement and the transactions contemplated
hereby).

     (iv) Since December 31, 2001, (A) SCB and SCC Bank have conducted their respective
businesses in the ordinary and usual course consistent with past practice (excluding the
incurrence of expenses related to this Agreement and the transactions contemplated hereby)
and (B) no event has occurred or circumstance arisen that, individually or taken together
with all other facts, circumstances and events (described in any paragraph of this Section
5.03 or otherwise), has had or could be reasonably likely to have a Material Adverse Effect
with respect to SCB or SCC Bank.

     (h) Litigation. Except as set forth in Section 5.03(h) of the Disclosure Schedule, no
litigation, claim, action, suit, hearing, investigation or other proceeding before any court or
Governmental Authority is pending against SCB or SCC Bank and, to SCB’s Knowledge, no such
litigation, claim, action, suit, hearing, investigation or other

20

 

proceeding has been threatened and there are no facts which could reasonably give rise to such
litigation, claim or other proceeding.

     (i) Regulatory Matters.

     (i) Neither SCB, SCC Bank nor any of SCB’s or SCC Bank’s property is, directly or
indirectly, party to or is subject to any order, decree, agreement, memorandum of
understanding or similar arrangement with, or a commitment letter or similar submission to,
or extraordinary supervisory letter from, any federal or state Governmental Authority
charged with the supervision or regulation of financial institutions or issuers of
securities or engaged in the insurance of deposits (including, without limitation, the
FDIC) or the supervision or regulation of it (collectively, the “Regulatory Authorities”).
SCB and SCC Bank have paid all assessments made or imposed by any Regulatory Authority.

     (ii) SCB and SCC Bank have not been advised by, and do not have any Knowledge of facts
which could give rise to an advisory notice by, any Regulatory Authority that such
Regulatory Authority is contemplating issuing or requesting (or is considering the
appropriateness of issuing or requesting) any such order, decree, agreement, memorandum of
understanding, commitment letter, supervisory letter or similar submission.

     (j) Compliance With Laws.

     SCB and SCC Bank:

     (i) are in compliance in all material respects with all applicable federal, state,
local and foreign statutes, laws, regulations, ordinances, rules, judgments, orders or
decrees applicable thereto or to the employees conducting such businesses, including,
without limitation, the Equal Credit Opportunity Act, the Fair Housing Act, the Community
Reinvestment Act, the Home Mortgage Disclosure Act, the Bank Secrecy Act, the customer
privacy requirements under the Gramm-Leach-Bliley Act, and all fair lending laws and other
laws relating to discriminatory business practices;

     (ii) have adopted such procedures and policies as are, in the reasonable judgment of
SCB’s management, necessary or appropriate to comply with Title III of the USA Patriot Act
and, to the Knowledge of SCB or SCC Bank, are in such compliance;

     (iii) have all permits, licenses, authorizations, orders and approvals of, and has
made all filings, applications and registrations with, all Governmental Authorities that
are required in order to permit them to own or lease their properties and to conduct their
businesses as presently conducted; all such permits, licenses, certificates of authority,
orders and approvals are in full force

21

 

and effect and, to SCB’s or SCC Bank’s Knowledge, no suspension or cancellation of any of
them is threatened; and

     (iv) have received, since December 31, 2001, no notification or communication from any
Governmental Authority (A) asserting that SCB or SCC Bank is not in compliance with any of
the statutes, regulations or ordinances which such Governmental Authority enforces or (B)
threatening to revoke any license, franchise, permit or governmental authorization (nor, to
SCB’s or SCC Bank’s knowledge, do any grounds for any of the foregoing exist).

     (k) Material Contracts; Defaults. Neither SCB nor SCC Bank is a party to, bound by or
subject to any agreement, contract, arrangement, commitment or understanding (whether written or
oral) (i) that is a “material contract” within the meaning of Item 601(b)(10) of the SEC’s
Regulation S-K with respect to such entity or (ii) that materially restricts the conduct of
business by SCB or by SCC Bank. Neither SCB nor SCC Bank is in default under any contract,
agreement, commitment, arrangement, lease, insurance policy or other instrument to which it is a
party, by which its assets, business, or operations may be bound or affected, or under which it or
its assets, business, or operations receives benefits, and there has not occurred any event that,
with the lapse of time or the giving of notice or both, would constitute such a default. No power
of attorney or similar authorization given directly or indirectly by SCB or by SCC Bank is
currently outstanding. Schedule 5.03(k) of the Disclosure Schedule sets forth a true and complete
list of all third party consents or waivers required to be obtained so as not to be in default
under any contract, agreement, commitment, arrangement, lease, insurance policy or other instrument
to which SCB is a party as a result of the transactions contemplated hereby.

     (l) No Brokers. No action has been taken by SCB that would give rise to any valid claim
against any party hereto for a brokerage commission, finder’s fee or other like payment with
respect to the transactions contemplated by this Agreement.

     (m) Employee Benefit Plans.

     (i) All benefit and compensation plans, contracts, policies or arrangements covering
current or former employees of SCB and SCC Bank (the “Employees”) and current or former
directors of SCB and SCC Bank including, but not limited to, “employee benefit plans”
within the meaning of Section 3(3) of ERISA, and deferred compensation, stock option, stock
purchase, stock appreciation rights, stock based, incentive and bonus plans (the “Benefit
Plans”), are listed in Schedule 5.03(m) to the Disclosure Schedule. True and complete
copies of all Benefit Plans including, but not limited to, any trust instruments and
insurance contracts forming a part of any Benefit Plans and all amendments thereto have
been provided or made available to FCB.

     (ii) All Benefit Plans, to the extent subject to ERISA, are in substantial compliance
with ERISA. Each Benefit Plan which is an “employee pension

22

 

benefit plan” within the meaning of Section 3(2) of ERISA (“Pension Plan”) and which is
intended to be qualified under Section 401(a) of the Code has received a favorable
determination letter from the Internal Revenue Service, and neither SCB nor SCC Bank is
aware of any circumstances likely to result in revocation of any such favorable
determination letter or the loss of the qualification of such Pension Plan under Section
401(a) of the Code. There is no material pending or, to SCB’s or SCC Bank’s Knowledge,
threatened litigation relating to the Benefit Plans. Neither SCB nor SCC Bank has engaged
in a transaction with respect to any Benefit Plan or Pension Plan that, assuming the
taxable period of such transaction expired as of the date hereof, could subject SCB or SCC
Bank to a tax or penalty imposed by either Section 4975 of the Code or Section 502(i) of
ERISA in an amount which would be material.

     (iii) No liability under Subtitle C or D of Title IV of ERISA has been or is expected
(based on events occurring prior to the Closing) to be incurred by SCB with respect to any
ongoing, frozen or terminated “single-employer plan”, within the meaning of Section
4001(a)(15) of ERISA, currently or formerly maintained by SCB or SCC Bank, or the
single-employer plan of any entity which is considered one employer with the SCB or SCC
Bank under Section 4001 of ERISA or Section 414 of the Code (an “ERISA Affiliate”).
Neither SCB nor SCC Bank has incurred, nor do they expect to incur (based on events
occurring prior to the Closing), any withdrawal liability with respect to a multiemployer
plan under Subtitle E of Title IV of ERISA (regardless of whether based on contributions of
an ERISA Affiliate). No notice of a “reportable event,” within the meaning of Section 4043
of ERISA for which the 30-day reporting requirement has not been waived, has been required
to be filed for any Pension Plan or by any ERISA Affiliate within the 12-month period
ending on the date hereof.

     (iv) All contributions required to be made under the terms of any Benefit Plan have
been timely made. Neither any Pension Plan nor any single-employer plan of an ERISA
Affiliate has an “accumulated funding deficiency” (whether or not waived) within the
meaning of Section 412 of the Code or Section 302 of ERISA and no ERISA Affiliate has an
outstanding funding waiver. Neither SCB nor SCC Bank has provided, nor is either of them
required to provide, security to any Pension Plan or to any single-employer plan of an
ERISA Affiliate pursuant to Section 401(a)(29) of the Code.

     (v) Under each Pension Plan which is a single-employer plan, as of the last day of the
most recent plan year ended prior to the date hereof, the actuarially determined present
value of all “benefit liabilities,” within the meaning of Section 4001(a)(16) of ERISA (as
determined on the basis of the actuarial assumptions contained in the Pension Plan’s most
recent actuarial valuation), did not exceed the then current value of the assets of such
Pension Plan, and there has been no material change in the financial condition of such Plan since the last day

23

 

of the most recent plan year that is reasonably expected to result in any such excess.

     (vi) Neither SCB nor SCC Bank has any obligations for retiree health and life benefits
under any Benefit Plan.

     (vii) Except as set forth in Section 5.03(m) to the Disclosure Schedule none of the
execution of this Agreement, shareholder approval of this Agreement or consummation of the
transactions contemplated by this Agreement will (A) entitle any employees of SCB or SCC
Bank to severance pay or any increase in severance pay upon any termination of employment
after the date hereof, (B) accelerate the time of payment or vesting or trigger any payment
or funding (through a grantor trust or otherwise) of compensation or benefits under,
increase the amount payable or trigger any other material obligation pursuant to, any of
the Benefit Plans or other agreements, (C) result in any breach or violation of, or a
default under, any of the Benefit Plans or (D) result in any payment that would be a
“parachute payment” to a “disqualified individual” as those terms are defined in Section
280G of the Code, without regard to whether such payment is reasonable compensation for
personal services performed or to be performed in the future.

     (n) Labor Matters. Neither SCB nor SCC Bank is a party to or bound by any collective
bargaining agreement, contract or other agreement or understanding with a labor union or labor
organization, nor is either SCB or SCC Bank the subject of a proceeding asserting that it has
committed an unfair labor practice (within the meaning of the National Labor Relations Act) or
seeking to compel SCB or SCC Bank to bargain with any labor organization as to wages or conditions
of employment, nor is there any strike or other labor dispute involving it or, to SCB’s or SCC
Bank’s Knowledge, threatened, nor is the SCB or SCC Bank aware of any activity involving its
employees seeking to certify a collective bargaining unit or engaging in other organizational
activity.

     (o) Environmental Matters.

     Except as set forth in Section 5.03(o) of the Disclosure Schedule, to the Knowledge of
SCB and SCC Bank (based only on a review of our files relating to current loans or
property): (i) SCB and SCC Bank have complied at all times with applicable Environmental
Laws; (ii) no real property (including buildings or other structures) currently or formerly
owned or operated by SCB or SCC Bank (“SCB Property”), has been contaminated with, or has
had any illegal release of, any Hazardous Substance; (iii) SCB or SCC Bank has not taken
legal title to or actively operated or actively managed any property in which SCB or SCC
Bank has held a security interest, Lien or a fiduciary or management role (“SCB Loan
Property”) that has been contaminated with, or has had any illegal release of, any
Hazardous Substance; (iv) SCB or SCC Bank has not received any notice, demand letter, claim
or request for information alleging any violation of, or liability under, any Environmental
Law; (v) SCB or SCC Bank is not subject to any order, decree, injunction or other agreement with any Governmental

24

 

Authority or
any third party relating to any Environmental Law; and (vi) SCB has made available to FCB
copies of all environmental reports, studies, sampling data, correspondence, filings and
other environmental information, in each case in its possession or reasonably available to
it, relating to past or present SCB Property or past or present SCB Loan Property.

     As used herein, the term “Environmental Laws” means any federal, state or local law,
regulation, order, decree, permit, authorization, opinion, common law or agency requirement
relating to: (A) the protection or restoration of the environment, health, safety, or natural
resources, (B) the handling, use, presence, disposal, release or threatened release of any
Hazardous Substance or (C) noise, odor, wetlands, indoor air, pollution, contamination or any
injury or threat of injury to persons or property in connection with any Hazardous Substance and
the term “Hazardous Substance” means any substance in any concentration that is: (A) listed,
classified or regulated pursuant to any Environmental Law, (B) any petroleum product or by-product,
asbestos-containing material, lead-containing paint or plumbing, polychlorinated biphenyls,
radioactive materials or radon or (C) any other substance which is or may be the subject of
regulatory action by any Governmental Authority in connection with any Environmental Law.

     (p) Tax Matters.

     (i) (A) All Tax Returns that are required to be filed on or before the Effective Date
(taking into account any extensions of time within which to file which have not expired) by
SCB, have been or will be timely filed on or before the Effective Date, (B) all such Tax
Returns are or will be true and complete in all material respects, (C) all Taxes shown to
be due on the Tax Returns referred to in clause (A) have been or will be timely paid in
full, (D) all deficiencies asserted or assessments made by the relevant taxing authority
with respect to such Tax Returns have been paid in full, (E) no issues that have been
raised by the relevant taxing authority in connection with the examination of any of the
Tax Returns referred to in clause (A) are currently pending and (F) no waivers of statutes
of limitation have been given by or requested with respect to any Taxes of SCB or SCC Bank.

     (ii) SCB has made available to FCB true and correct copies of the United States
federal income Tax Returns filed by SCB for each of the three most recent fiscal years
ended on or before December 31, 2003.

     (iii) Neither SCB nor SCC Bank has any liability with respect to income, franchise or
similar Taxes that accrued on or before the end of the most recent period covered by the
Regulatory Filings filed prior to the date hereof in excess of the amounts accrued with
respect thereto that are reflected in the financial statements included in the Regulatory
Filings filed on or prior to the date hereof.

25

 

     (iv) Neither SCB nor SCC Bank is a party to any Tax allocation or sharing agreement,
is not and has never been a member of an affiliated group filing consolidated or combined
Tax Returns (other than a group the common parent of which is or was SCB) or otherwise has
any liability for the Taxes of any Person.

     (v) No closing agreements, private letter rulings, technical advice memoranda or
similar agreement or rulings have been entered into or issued by any taxing authority with
respect to SCB or SCC Bank other than determination letters with respect to Benefit Plans.

     (vi) All Taxes that SCB or SCC Bank is or was required by law to withhold or collect
have been duly withheld or collected and, to the extent required by applicable law, have
been paid to the proper Governmental Authority or other Person.

     (q) Risk Management Instruments. Neither SCB nor SCC Bank is a party to, nor has either
agreed to enter into, an exchange traded or over-the-counter equity, interest rate, foreign
exchange or other swap, forward, future, option, cap, floor or collar or any other contract that is
a derivatives contract (including various combinations thereof) (each, a “Derivatives Contract”);
and neither SCB nor SCC Bank owns any securities that (i) are referred to generically as
“structured notes,” “high risk mortgage derivatives,” “capped floating rate notes” or “capped
floating rate mortgage derivatives” or (ii) are reasonably likely to have changes in value as a
result of interest or exchange rate changes that significantly exceed normal changes in value
attributable to interest or exchange rate changes.

     (r) Books and Records. The books and records of SCB and SCC Bank have been fully, properly
and accurately maintained in all material respects, and there are no unrectified material
inaccuracies or discrepancies of any kind contained or reflected therein, and they fairly present
the financial position of SCB and SCC Bank.

     (s) Insurance. Schedule 5.03(s) to the Disclosure Schedule sets forth a true and complete
list of all of the insurance policies, binders, or bonds maintained by SCB and SCC Bank (“Insurance
Policies”). SCB and SCC Bank are insured with reputable insurers against such risks and in such
amounts as the management of SCB and SCC Bank reasonably have determined to be prudent in
accordance with industry practices. All the Insurance Policies are in full force and effect; SCB
and SCC Bank are not in material default thereunder; and all claims thereunder have been filed in
due and timely fashion.

     (t) Allowance For Loan and Lease Losses. SCC Bank’s Allowance for Loan and Lease Losses
(“ALLL”) is, and shall be as of the Effective Date, in compliance with SCC Bank’s existing
methodology for determining the adequacy of its ALL as well as the standards established by
applicable Governmental Authorities and the Financial Accounting Standards Board and is and shall
be adequate under all such standards.

26

 

     (u) Trust Business. Neither SCB nor SCC Bank serves as a trustee, agent, custodian,
personal representative, guardian, conservator or investment advisor for any fiduciary accounts.

     (v) Transactions With Affiliates. Neither SCB nor SCC Bank has transactions with Affiliates
within the meaning of Sections 23A and 23B of the Federal Reserve Act.

     (w) Real Property.

     (i) Schedule 5.03(w) to the Disclosure Schedule contains a complete and correct list
of (A) all real property or premises owned on the date hereof, in whole or in part by SCB
and all indebtedness secured by any encumbrance thereon, and (B) all real property or
premises leased or subleased in whole or in part by SCB or SCC Bank and together with a
list of all applicable leases and the name of the lessor. None of such premises or
properties have been condemned or otherwise taken by any public authority and no
condemnation or taking is threatened or contemplated and none thereof is subject to any
claim, contract or law which would be reasonably likely to affect its use or value for the
purposes now made of it. None of the premises or properties of SCB is subject to any
current or potential interests of third parties or other restrictions or limitations that
would impair or be inconsistent in any material respect with the current use of such
property by SCB.

     (ii) Each of the leases referred to in the Disclosure Schedule is valid and existing
and in full force and effect, and no party thereto is in default and no notice of a claim
of default by any party has been delivered to SCB or SCC Bank or is now pending, and there
does not exist any event that with notice or the passing of time, or both, would constitute
a default or excuse performance by any party thereto, provided that with respect to matters
relating to any party other than SCB or SCC Bank the foregoing representation is based on
the Knowledge of SCB and SCC Bank.

     (x) Title. SCB and SCC Bank have good title to their properties and assets (other than (i)
property as to which it is lessee and (ii) real estate owned as a result of foreclosure, transfer
in lieu of foreclosure or other transfer in satisfaction of a debtor’s obligation previously
contracted) except (1) statutory liens not yet delinquent which are being contested in good faith
by appropriate proceedings, and liens for taxes not yet due, (2) pledges of assets in the ordinary
course of business to secure public deposits, (3) for those assets and properties disposed of for
fair value in the ordinary course of business since the date of SCB’s call report dated as of and
for the year ended December 31, 2001 and (4) defects and irregularities of title and encumbrances
that do not materially impair the use thereof for the purposes for which they are held.

     5.04. Representations and Warranties of FCB 

27

 

     Subject to Section 5.02, FCB and FC Bank hereby represent and warrant to SCB as follows:

     (a) Organization, Standing and Authority. FCB is a corporation duly organized and validly
existing under the laws of the state of California. FC Bank is California banking corporation and
its deposits are insured by the FDIC through the Bank Insurance Fund in the manner and to the
fullest extent provided by law. FCB and FC Bank are duly qualified to do business and are in good
standing in the State of California and any other foreign jurisdictions where their respective
ownership or leasing of property or assets or the conduct of their business require them to be so
qualified. FCB and FC Bank have in effect all federal, state, local, and foreign governmental
authorizations necessary for each to own or lease their respective properties and assets and to
carry on their business as they are now conducted.

     (b) FCB Stock and Capitalization. As of the date hereof, the authorized capital stock of FCB
consists solely of 10,000,000 shares of FCB Common Stock and 10,000,000 shares of FCB Preferred
Stock, of which no shares are outstanding as of the date hereof. As of the date of this Agreement,
FCB has only minimal capital and the transactions to be completed at the Closing will depend on
FCB’s successfully completing its capitalization. The authorized capital stock of FC Bank consists
solely of 2,500,000 shares of common stock, of which 2,162,809 shares are outstanding as of the
date hereof.

     (c) Subsidiaries. The Merger Subsidiary and each of FCB’s Significant Subsidiaries has been
duly organized and is validly existing in good standing under the laws of the jurisdiction of its
organization, and is duly qualified to do business and in good standing in the jurisdictions where
its ownership or leasing of property or the conduct of its business requires it to be so qualified
and it owns, directly or indirectly, all the issued and outstanding equity securities of each of
its Significant Subsidiaries. FC Bank is duly licensed by the DFI, and its deposits are insured by
the Bank Insurance Fund in the manner and to the fullest extent provided by law.

     (d) Corporate Power. FCB and each of its Significant Subsidiaries has the corporate power
and authority to carry on its business as it is now being conducted and to own all its properties
and assets; FCB has the corporate power and authority to execute, deliver and perform its
obligations under this Agreement and to consummate the transactions contemplated hereby; and FCB
has the corporate power and authority to execute, deliver and perform its obligations to consummate
the transactions contemplated thereby.

     (e) Corporate Authority. This Agreement and the transactions contemplated hereby have been
authorized by all necessary corporate action of FCB, FC Bank, and the Merger Subsidiary and each of
their respective boards. This Agreement has been duly executed and delivered by FCB, FC Bank, and
the Merger Subsidiary and this Agreement is a valid and legally binding agreement of FCB, FC Bank,
and the Merger Subsidiary enforceable in accordance with its terms (except as enforceability may be
limited by

28

 

applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar laws
of general applicability relating to or affecting creditors’ rights or by general equity
principles).

     (f) Regulatory Approvals; No Violations.

     (i) No consents or approvals of, or waivers by, or filings or registrations with, any
Governmental Authority or with any third party are required to be made or obtained by FCB
or any of its Significant Subsidiaries in connection with the execution, delivery or
performance by FCB of this Agreement or to consummate the Merger except for (A) filings of
applications or notices with and approvals or waivers by the Federal Reserve Board, the DFI
and the FDIC, as may be required, (B) filings with the SEC and state securities
authorities, and (C) the filing of the Agreement of Merger with the California Secretary
pursuant to the CCC. As of the date hereof, neither FCB nor FC Bank have knowledge of any
reason why the approvals set forth in Section 7.01(b) will not be received in a timely
manner and without the imposition of a condition, restriction or requirement of the type
described in Section 7.01(b).

     (ii) Subject to receipt, or the making, of the consents, approvals and filings
referred to in the preceding paragraph and expiration of the related waiting periods, the
execution, delivery and performance of this Agreement by FCB, FC Bank, and the Merger
Subsidiary and the consummation of the transactions contemplated hereby do not and will not
(A) constitute a breach or violation of, or a default under, or give rise to any Lien, any
acceleration of remedies or any right of termination under, any material law, rule or
regulation or any judgment, decree, order, governmental permit or license, or Agreement,
indenture or instrument of FCB or of any of its Subsidiaries or to which FCB or any of its
Subsidiaries or properties is subject or bound, (B) constitute a breach or violation of, or
a default under, the articles of incorporation or by-laws (or similar governing documents)
of FCB or any of its Subsidiaries or (C) require any consent or approval under any material
law, rule, regulation, judgment, decree, order, governmental permit or license, agreement,
indenture or instrument.

     (g) Financial Reports; Material Adverse Effect. FC Bank has delivered to
SCB audited financial statements of FC Bank consisting of balance sheets as of December 31, 2003,
2002 and 2001, the related statements of operations, changes in shareholders’ equity and statements
of cash flow for the periods then ended, and the related notes and related accountant’s opinions
thereon (the “FC Bank Financial Statements”). The FC Bank Financial Statements (i) present fairly
the financial condition of FC Bank as of the respective dates indicated and the results of
operations, the changes in stockholders’ equity and cash flows for the respective periods
indicated; (ii) have been prepared in accordance with GAAP applied on a basis consistent with past
practices; (iii) contain and reflect reserves for all material accrued liabilities and for all
reasonably anticipated losses, including but not limited to adequate reserves for loan and lease
losses; and (iv) are based on the books and records of FC Bank. Since

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December 31, 2001, FC Bank has conducted its business in the ordinary and usual course consistent
with past practice (excluding the incurrence of expenses related to this Agreement and the
transactions contemplated hereby) and no event has occurred or circumstance arisen that,
individually or taken together with all other facts, circumstances and events (described in any
paragraph of this Section 5.04 or otherwise), would reasonably be expected to have a Material
Adverse Effect with respect to FC Bank or FCB.

     (h) Litigation. No material litigation, claim or other proceeding before any court or
governmental agency is pending against FCB or its Subsidiaries and, to FCB’s Knowledge, no such
litigation, claim or other proceeding has been threatened and there are no facts which could
reasonably give rise to such litigation, claim or other proceeding.

     (i) No Brokers. Except for the fees and related costs paid to Anderson & Strudwick, no
action has been taken by FCB or its Subsidiaries that would give rise to any valid claim against
any party hereto for a brokerage commission, finder’s fee or other like payment with respect to the
transactions contemplated by this Agreement.

     (j) Regulatory Matters.

     (i) Neither FCB nor FC Bank nor any of their respective properties are, directly or
indirectly, party to or are subject to any order, decree, agreement, memorandum of
understanding or similar arrangement with, or a commitment letter or similar submission to,
or extraordinary supervisory letter from, any Regulatory Authority. FCB and FC Bank have
paid all assessments made or imposed by any Regulatory Authority.

     (ii) Neither FCB nor FC Bank have been advised by, or have any Knowledge of facts
which could give rise to an advisory notice by, any Regulatory Authority that such
Regulatory Authority is contemplating issuing or requesting (or is considering the
appropriateness of issuing or requesting) any such order, decree, agreement, memorandum of
understanding, commitment letter, supervisory letter or similar submission.

     (k) Tax Matters.

     (i) (A) All Tax Returns that are required to be filed on or before the Effective Date
(taking into account any extensions of time within which to file which have not expired) by
or with respect to FCB and FC Bank, have been or will be timely filed on or before the
Effective Date, (B) all such Tax Returns are or will be true and complete in all material
respects, (C) all Taxes shown to be due on the Tax Returns referred to in clause (A) have
been or will be timely paid in full, (D) all deficiencies asserted or assessments made with
respect to such Tax Returns have been paid in full, (E) no issues that have been raised by
the relevant taxing authority in connection with the Tax Returns referred to in clause (A)
are

30

 

currently pending and (F) no waivers of statues of limitation have been given by or
requested with respect to any Taxes of FCB or FC Bank.

     (ii) Neither FCB nor FC Bank have any liability with respect to income, franchise or
similar Taxes that accrued on or before the end of the most recent period covered by the
Regulatory Filings filed prior to the date hereof in excess of the amounts accrued with
respect thereto that are reflected in the financial statements included in the Regulatory
Filings filed on or prior to the date hereof.

ARTICLE VI

COVENANTS

     6.01. Reasonable Best Efforts

     Subject to the terms and conditions of this Agreement, each of SCB, SCC Bank, FCB, and FC
Bank agrees to use its reasonable best efforts in good faith to take, or cause to be taken, all
actions, and to do, or cause to be done, all things necessary, proper or desirable, or advisable
under applicable laws, so as to permit consummation of the Merger and the Second Merger as promptly
as practicable and otherwise to enable consummation of the transactions contemplated hereby,
including the satisfaction of the conditions set forth in Article VII hereof, and shall cooperate
fully with the other party hereto to that end.

     6.02. Shareholder Approval

     SCB agrees to take, in accordance with applicable law and SCB’s Articles and SCB’s By-Laws,
all action necessary to convene as soon as practicable a meeting of its shareholders to consider
and vote upon the approval of this Agreement and the Merger and any other matters required to be
approved by SCB’s shareholders for consummation of the Merger (including any adjournment or
postponement, the “SCB Meeting”). Except with the prior approval of FCB, no other matters shall be
submitted for the approval of SCB shareholders. Subject to fiduciary obligations under applicable
law, SCB’s Board shall at all times prior to and during such meeting recommend such approval and
shall take all reasonable lawful action to solicit such approval by its shareholders.

     6.03. Proxy Statement

     The proxy statement and/or any other related materials or documents (collectively, the “Proxy
Materials”), to be used in connection with the SCB Meeting required pursuant to Section 6.02
hereof, with respect to all information set forth therein relating to SCB, and the Merger and in
respect to this Agreement, and the Merger Agreement, at the time of mailing to shareholders and at
the time of the shareholders’ meeting, shall: (i) comply in all material respects with the
provisions of all applicable laws and regulations; and (ii) except with respect to any information
regarding FCB or

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FC Bank supplied to SCB by FCB or FC Bank for inclusion in the Proxy Materials, not contain
any statement which, at the time and in light of the circumstances under which it is made, is false
or misleading with respect to any material fact or not omit to state any material fact necessary in
order to make the statements therein not false or misleading.

     6.04. Press Releases

     SCB and SCC Bank, on one hand, and FCB and FC Bank, on the other hand, shall consult with each
other before issuing any press release with respect to the Merger or this Agreement and shall not
issue any such press release or make any such public statements without the prior consent of the
other party, which shall not be unreasonably withheld; provided, however, that a party may, without
the prior consent of the other party (but after such consultation, to the extent practicable in the
circumstances), issue such press release or make such public statements as may upon the advice of
outside counsel be required by law or the rules or regulations of Nasdaq. SCB, SCC Bank, FCB and
FC Bank shall cooperate to develop all public announcement materials and make appropriate
management available at presentations related to the transactions contemplated by this Agreement as
reasonably requested by the other party.

     6.05. Access; Information

     (a) Each party agrees that upon reasonable notice and subject to applicable laws relating to
the exchange of information, it shall afford the other party and its officers, employees, counsel,
accountants and other authorized representatives such access during normal business hours
throughout the period prior to the Effective Time to the books, records (including, without
limitation, Tax Returns and work papers of independent auditors), properties and personnel and to
such other information as such party may reasonably request and, during such period, it shall, as
promptly as is reasonably practicable, furnish to the other party all information concerning its
business, properties and personnel as such party may reasonably request.

     (b) Without limiting the generality of Section 6.05(a), prior to the Effective Time, each
party and its respective representatives shall have the right, subject to the notice provision set
forth in Section 6.05(a), to conduct a review to determine (i) that the assets, books, records and
operations of the other party are in satisfactory condition and will not in a material way
adversely impact such party after consummation of the transactions contemplated hereby and (ii) the
accuracy of the representations and warranties and the satisfaction of the conditions to closing as
provided hereunder.

     (c) SCB agrees that, subject to applicable laws, it shall cooperate in good faith with FCB on
mutually agreed operating issues which the parties agree have priority.

     (d) Each party agrees that it will not, and will cause its representatives not to, use any
information obtained pursuant to this Section 6.05 (as well as any other information obtained prior
to the date hereof in connection with the entering into of this Agreement) for any purpose
unrelated to the consummation of the transactions

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contemplated by this Agreement. Subject to the requirements of law, each party shall keep
confidential, and shall cause its representatives to keep confidential, all information and
documents obtained pursuant to this Section 6.05 (as well as any other information obtained prior
to the date hereof in connection with the entering into of this Agreement) unless such information
(i) was already known to such party, (ii) becomes available to such party from other sources not
known by such party to be bound by a confidentiality obligation, (iii) is disclosed with the prior
written approval of the party to which such information pertains or (iv) is or becomes readily
ascertainable from publicly available sources. In the event that this Agreement is terminated or
the transactions contemplated by this Agreement shall otherwise fail to be consummated each party
shall promptly cause all copies of documents or extracts thereof containing information and data as
to another party hereto to be returned to the party which furnished the same. No investigation by
any party of the business and affairs of any other party shall affect or be deemed to modify or
waive any representation, warranty, covenant or agreement in this Agreement, or the conditions to
any party’s obligation to consummate the transactions contemplated by this Agreement.

     6.06. Acquisition Proposals

     SCB agrees that its officers and directors shall not, and that it shall direct and use its
best efforts to cause SCC Bank and South Coast Commercial Bank’s employees, agents and
representatives not to, directly or indirectly, initiate, solicit, encourage or otherwise
facilitate any inquiries or the making of any proposal or offer with respect to a merger,
reorganization, share exchange, consolidation or similar transaction involving, or any purchase of
all or substantially all of the assets of SCB or more than 10% of the outstanding equity
securities, of SCB (any such proposal or offer being hereinafter referred to as an “Acquisition
Proposal”). SCB further agrees that neither SCB nor SCC Bank nor any of their respective officers
and directors shall, and that SCB shall direct and use its reasonable best efforts to cause SCC
Bank and SCC Bank’s employees, agents and representatives not to, directly or indirectly, engage in
any negotiations concerning, or provide any confidential information or data to, or have any
discussions with, any Person relating to an Acquisition Proposal, or otherwise facilitate any
effort or attempt to make or implement an Acquisition Proposal; provided, however, that nothing
contained in this Agreement shall prevent SCB or SCB’s Board from (A) complying with its disclosure
obligations under federal or state law; (B) providing information in response to a request
therefore by a Person who has made an unsolicited bona fide written Acquisition Proposal if SCB’s
Board receives from the Person so requesting such information an executed confidentiality
agreement; (C) engaging in any negotiations or discussions with any Person who has made an
unsolicited bona fide written Acquisition Proposal; or (D) recommending such an Acquisition
Proposal to the shareholders of SCB, if and only to the extent that, (i) in each such case referred
to in clause (B), (C) or (D) above, SCB’s Board determines in good faith (after consultation with
outside legal counsel) that such action is, in the absence of the foregoing proscriptions, legally
required in order for its directors to comply with their respective fiduciary duties under
applicable law and (ii) in the case referred to in clause (D) above, SCB’s Board determines in good
faith (after consultation with its financial advisor) that such Acquisition Proposal, if accepted,
is

33

 

reasonably likely to be consummated, taking into account all legal, financial and regulatory
aspects of the proposal and the Person making the proposal and would, if consummated, result in a
transaction more favorable to SCB’s shareholders than the Merger. SCB agrees that it will
immediately cease and cause to be terminated any existing activities, discussions or negotiations
with any parties conducted heretofore with respect to any Acquisition Proposals. SCB agrees that
it will notify FCB within two Business Days if any such inquiries, proposals or offers are received
by, any such information is requested from, or any such discussions or negotiations are sought to
be initiated or continued with, any of its representatives.

     6.07. [Reserved]

     6.08. [Reserved]

     6.09. Certain Policies

     Prior to the Effective Date, SCB and SCC Bank shall, consistent with GAAP, the rules and
regulations of the SEC and applicable banking laws and regulations, modify or change its loan,
OREO, accrual, reserve, tax, litigation and real estate valuation policies and practices (including
loan classifications and levels of reserves) so as to be applied on a basis that is consistent with
past practice of SCB; provided, however, that no such action shall in itself be a breach under
Section 8.01(b) of this Agreement.

     6.10. Regulatory Applications

     (a) Each of FCB, FC Bank, SCB, and SCC Bank shall cooperate and use their respective
reasonable best efforts to prepare all documentation, to effect all filings and to obtain all
permits, consents, approvals and authorizations of all third parties and Governmental Authorities
necessary to consummate the transactions contemplated by this Agreement; and any initial filings
with Governmental Authorities (other than the Registration Statement) shall be made by FCB and FC
Bank, as applicable, as soon as reasonably practicable after the execution hereof but, provided
that SCB has cooperated as described above, in no event later than 60 days after the date hereof.
Each of FCB and SCB shall have the right to review in advance, and to the extent practicable each
shall consult with the other, in each case subject to applicable laws relating to the exchange of
information, with respect to all material written information submitted to any third party or any
Governmental Authority in connection with the transactions contemplated by this Agreement. In
exercising the foregoing right, each of such parties agrees to act reasonably and as promptly as
practicable. Each party hereto agrees that it shall consult with the other parties hereto with
respect to the obtaining of all material permits, consents, approvals and authorizations of all
third parties and Governmental Authorities necessary or advisable to consummate the transactions
contemplated by this Agreement and each party shall keep the other parties apprised of the status
of material matters relating to completion of the transactions contemplated hereby.

34

 

     (b) Each party agrees, upon request, to furnish the other parties with all information
concerning itself, its Subsidiaries, directors, officers and shareholders and such other matters as
may be reasonably necessary or advisable in connection with any filing, notice or application made
by or on behalf of such other parties or any of their respective Subsidiaries to any third party or
Governmental Authority.

     6.11. Indemnification

     (a) Following the Effective Time, FCB shall indemnify, defend and hold harmless each present
and former director and officer of SCB and its Subsidiary (each, an “Indemnified Party") against
all costs or expenses (including reasonable attorneys’ fees), judgments, fines, losses, claims,
damages or liabilities (collectively, “Costs") incurred in connection with any claim, action, suit,
proceeding or investigation, whether civil, criminal, administrative or investigative, arising out
of actions or omissions occurring at or prior to the Effective Time (including, without limitation,
the transactions contemplated by this Agreement, or any related agreement, but excluding any Costs
arising out of any violation or alleged violation of the Exchange Act or the rules and regulations
thereunder with respect to insider trading) to the fullest extent that SCB is permitted to
indemnify (and advance expenses to) its directors or officers under the CCC, SCB’s Articles and
SCB’s By-Laws as in effect on the date hereof; provided that any determination required to be made
with respect to whether an officer’s or director’s conduct complies with the standards set forth
under the CCC, SCB’s Articles and SCB’s By-Laws shall be made by independent counsel selected by
FCB and reasonably acceptable to the Indemnified Party.

     (b) For a period of three (3) years from the Effective Time, FCB shall use its commercially
reasonable efforts to provide that portion of director’s and officer’s liability insurance that
serves to reimburse the present and former officers and directors (determined as of the Effective
Time) of SCB (as opposed to the portion that serves to reimburse SCB) with respect to claims
against such directors and officers arising from facts or events which occurred before the
Effective Time, which insurance shall contain at least the same coverage and amounts, and contain
terms and conditions no less advantageous, as that coverage currently provided by SCB; provided,
however, that in no event shall FCB be required to expend on an annual basis more than 150% of the
current amount expended on an annual basis by SCB (the “Insurance Amount") to maintain or procure
such directors and officers insurance coverage; provided, further, that if FCB is unable to
maintain or obtain the insurance called for by this Section 6.11(b), FCB shall use its commercially
reasonable efforts to obtain as much comparable insurance as is available for the Insurance Amount;
provided, further, that officers and directors of SCB may be required to make application and
provide customary representations and warranties to FCB’s insurance carrier for the purpose of
obtaining such insurance.

     (c) Any Indemnified Party wishing to claim indemnification under Section 6.11(a), upon
learning of any claim, action, suit, proceeding or investigation described above, shall promptly
notify FCB thereof; provided that the failure so to notify

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shall not affect the obligations of FCB under Section 6.11(a) unless and to the extent that FCB is
actually prejudiced as a result of such failure.

     (d) If FCB or any of its successors or assigns shall consolidate with or merge into any other
entity and shall not be the continuing or surviving entity of such consolidation or merger or shall
transfer all or substantially all of its assets to any other entity, then and in each case, proper
provision shall be made so that the successors and assigns of FCB shall assume the obligations set
forth in this Section 6.11.

     6.12. Benefit Plans

     (a) From and after the Effective Time, FCB shall provide former employees of SCB or SCC Bank
who remain as employees of FCB or any of its Subsidiaries with employee benefit plans no less
favorable in the aggregate than those provided to similarly situated employees of FCB or its
Subsidiaries, as the case may be. FCB shall cause each employee benefit plan, program, policy or
arrangement of FCB in which employees of SCB or SCC Bank are eligible to participate to take into
account for purposes of eligibility and vesting thereunder the service of such employees with SCB
or SCC Bank to the same extent as such service was credited for such purpose by SCB or SCC Bank.
Nothing herein shall limit the ability of FCB to amend or terminate any of the Benefit Plans in
accordance with their terms at any time.

     (b) If employees of SCB or SCC Bank become eligible to participate in a medical, dental or
health plan of FCB, FCB shall cause, to the extent practicable, each such plan to (i) waive any
preexisting condition limitations to the extent such conditions were covered under the applicable
medical, health or dental plans of SCB or SCC Bank, (ii) honor under such plans any deductible,
co-payment and out-of-pocket expenses incurred by the employees and their beneficiaries during the
portion of the calendar year prior to such participation and (iii) waive any waiting period
limitation or evidence of insurability requirement which would otherwise be applicable to such
employee on or after the Effective Time to the extent such employee had satisfied any similar
limitation or requirement under an analogous plan prior to the Effective Time.

     (c) FCB shall honor, and shall continue to be obligated to perform, in accordance with their
terms, all employment or severance agreements, plans or policies of SCB that are identified in
Schedule 6.12 hereto.

     (d) Notwithstanding the provisions of this Section 6.12, the parties hereto agree that certain
matters respecting employee benefits shall be dealt with in a letter, dated the date hereof,
between the parties and hereby incorporated by reference and made a part hereof.

     6.13. Non-Competition Agreements

     Each director of SCB (other than Van Rhebeck, who shall execute and deliver to FCB a
Non-Solicitation Agreement in the form attached hereto as Exhibit E), shall,

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simultaneously with the execution and delivery hereof, execute and deliver to FCB
non-competition agreements substantially in the form of Exhibit B hereto.

     6.14. Notification of Certain Matters

     Each of SCB and FCB shall give prompt notice to the other of any fact, event or circumstance
known to it that (i) is reasonably likely, individually or taken together with all other facts,
events and circumstances known to it, to result in any Material Adverse Effect with respect to it
or (ii) would cause or constitute a material breach of any of its representations, warranties,
covenants or agreements contained herein.

     6.15. Human Resources Issues

     SCB agrees to cooperate with FCB with respect to any formal meetings or interviews with one or
more employees called or arranged by SCB and held for the purpose of discussing the transactions
contemplated by this Agreement or their effect on such employees, with FCB given the opportunity to
participate in such meetings or interviews. This section is not intended to apply to casual
conversations about the transaction or informal meetings initiated by employees, or to prohibit
discussion in general, but rather to allow FCB a role in the formal presentation of the transaction
to employees, and an opportunity to participate in the significant, formal meetings at which the
transaction is explained and discussed.

     6.16. Assistance with Third-Party Agreements

     (a) SCB shall cooperate with and use all commercially reasonable efforts to assist FCB in (i)
gaining access to and obtaining any required consents from all of its third-party vendors,
landlords of all of SCB’s leased properties and other parties to material agreements, promptly
after the date of this Agreement, and (ii) obtaining the cooperation of such third parties in a
smooth transition in accordance with FCB’s timetable at or after the Effective Time of the Merger.
SCB shall cooperate with FCB in minimizing the extent to which any contracts will continue in
effect following the Effective Time of the Merger, in addition to complying with the prohibition of
Section 4.01(l) hereof.

     (b) Without limiting Section 6.16(a), SCB shall use all reasonable efforts to provide data
processing and other processing support or outside contractors to assist FCB in performing all
tasks reasonably required to result in a successful conversion of their data and other files and
records to FCB’s production environment, when requested by FCB and sufficient to ensure that a
successful conversion can occur at such time as FCB requests on or after the Effective Time of the
Merger. Among other things, SCB shall:

     (i) cooperate with FCB to establish a mutually agreeable project plan to effectuate
the conversion;

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     (ii) use their commercially reasonable efforts to have SCB’s outside contractors
continue to support both the conversion effort and its needs until the conversion can be
established;

     (iii) provide, or use its commercially reasonable efforts to obtain from any outside
contractors, all data or other files and layouts requested by FCB for use in planning the
conversion, as soon as reasonably practicable;

     (iv) provide reasonable access to personnel at corporate headquarters, data and other
processing centers, all branches and, with the consent of outside contractors, at outside
contractors, to enable the conversion effort to be completed on schedule; and

     (v) to the extent reasonably practicable, give notice of termination, conditioned upon
the completion of the transactions contemplated hereby, of the contracts of outside data
and other processing contractors or other third-party vendors when directed to do so by
FCB.

     (vi) FCB agrees that all actions taken pursuant to this Section 6.16 shall be taken in
a manner intended to minimize disruption to the customary business activities of SCB.

     6.17. Second Merger

     Immediately after the Effective Time of the Merger, the Surviving Company shall merge with and
into FCB, the separate corporate existence of the Surviving Company shall cease and FCB shall
survive, continue to exist as a California corporation and operate under the name “First California
Bancorp.”

     6.18. Shareholder Agreements

     Each Shareholder, as a shareholder of SCB Common Stock, shall execute and deliver to FCB
simultaneously with the execution of this Agreement a Shareholder Agreement substantially in the
form of Exhibit A hereto, committing each such person, among other things, to vote his or her
shares of SCB Common Stock in favor of the principal terms of the Merger at the SCB Meeting and to
certain representations and covenants.

     6.19. Pre-Closing Adjustments

     At or before the Effective Time of the Merger, SCB and SCC Bank shall make such accounting
entries or adjustments, including additions to their ALLL and charge-offs of loans, as FCB shall
direct as a result of its on-going review of SCB and SCC Bank (including its review of the
information provided to it pursuant to Sections 6.05 and 6.15), in order to implement its plans
following the closing of the transactions constituting the Merger and the Second Merger (the
“Closing”), and to reflect expenses

38

 

and costs related to the Merger; provided, however, that unless the adjustment would otherwise
be required by applicable law, rule or regulation, or by regulatory accounting principles or GAAP
applied on a basis consistent with the financial statements of SCB, (a) SCB shall not be required
to take such actions more than one day prior to the Effective Time of the Merger or prior to the
time FCB agrees in writing that all of the conditions to its obligation to close as set forth in
Section 7.02 have been satisfied or waived and each of the approvals in Section 7.01(b) have been
received, (b) no such accounting entry or adjustment shall be required or made if it would (i)
violate any law, rule or regulation applicable to FCB, or (ii) constitute or be deemed to be a
breach, violation of or failure to satisfy any representation, warranty, covenant, condition or
other provision of this Agreement or otherwise be considered in determining whether any such
breach, violation or failure to satisfy shall have occurred, and (c) Adjusted Shareholders’ Equity
and Adjusted Merger Consideration shall be determined as if none of such accounting entries and
adjustments had been made, other than those required by GAAP.

     6.20. Tax Treatment of the Merger and Second Merger

     FCB and SCB intend that the Merger and Second Merger will be treated for U.S. federal income
tax purposes as a taxable purchase of all of the outstanding stock of SCB by FCB, followed by the
liquidation of SCB pursuant to Section 332 of the Code. Each party will (and will cause each of
its Subsidiaries to) both before and after the Effective Time (i) use reasonable efforts to cause
the Merger and Second Merger to have such tax treatment; (ii) refrain from taking any action that
would reasonably be expected to cause the Merger or Second Merger to be treated any other way for
U.S. federal income tax purposes; (iii) file all Tax returns consistent with such tax treatment,
and (iv) take the position for all other purposes that the Merger and Second Merger will have such
tax treatment. Buyer shall not file an election under Section 338 of the Code with respect to the
Merger.

39

 

     6.21. Non-Solicitation Agreement

     Each of Van Rhebeck and Fred Mills shall execute and deliver to FCB simultaneously with the
execution of this Agreement a Non-Solicitation Agreement substantially in the form of Exhibit E
hereto.

     6.22. Bank Holding Company Status

     FCB shall use its best efforts to promptly obtain, at or before the Closing, all regulatory
consents, approvals and authorizations from the Federal Reserve Board as are necessary for it to
become a bank holding company, to acquire SCB as a wholly-owned subsidiary and then merge it into
FCB, to retain SCC Bank as a wholly-owned subsidiary of FCB and to carry out and consummate the
transactions contemplated herein.

     6.23. Capital Raising

     FCB shall use its best efforts to raise no less than $24.0 million from a combination of a
public offering of its common stock and issuance of trust preferred securities, the proceeds of
which will be used, at least in part, to capitalize FCB and consummate the transactions
contemplated herein.

     6.24 Employment and Other Agreements

     At the Effective Time of the Merger, SCC Bank shall terminate the employment agreements and
such other agreements between SCC Bank and each of its current executive officers, a list of which
is set forth on Schedule 6.24 hereto. As a result of the proposed Merger and the termination of
such employment agreements, each officer listed on Schedule 6.24 hereto shall be entitled to
receive a payment in the amount set forth beside the name of such officer on Schedule 6.24 hereto
(the “Executive Payments”), which payments include all severance, automobile accruals and other
benefits payable to such officer upon termination of such officer’s employment agreement as well as
the commission payable to Van Rhebeck in connection with the Merger. SCC Bank shall pay one-half
of the total Executive Payments prior to the Closing Date, and one-half of the total Executive
Payments shall remain accrued and unpaid on the Closing Date to be paid unconditionally by the
Surviving Corporation or its successor within one month after the Closing Date.

     6.25 Accrual of Expenses Related to the Merger

     Prior to the Shareholders’ Equity Measuring Date (as defined in Section 7.03(e)), SCB shall
accrue in accordance with GAAP for all unpaid expenses related to the Merger including, without
limitation, the amount of all Executive Payments not yet paid pursuant to Section 6.24, only
Sixty-Seven Thousand Five Hundred Dollars ($67,500.00) of unpaid severance benefits (in addition to
the Executive Payments, and regardless of the

40

 

actual other severance accruable or payable at such time), and all of those transaction fees and
expenses which are to be paid pursuant to Section 7.03(i).

ARTICLE VII

CONDITIONS TO CONSUMMATION OF THE MERGER

     7.01. Conditions to Each Party’s Obligation to Effect the Merger

     The respective obligation of each of the parties hereto to consummate the Merger is subject to
the fulfillment or written waiver by the parties hereto prior to the Effective Time of each of the
following conditions:

     (a) Shareholder Approvals. The principal terms of the Merger shall have been duly
approved by the affirmative vote of a majority of the outstanding shares of SCB Common Stock
entitled to vote or such higher vote percentage as may be required by SCB’s Articles, SCB’s Bylaws
or other binding agreement.

     (b) Regulatory Approvals. All regulatory approvals required to consummate the
transactions contemplated hereby, including the Merger and the Second Merger, shall have been
obtained and shall remain in full force and effect and all statutory waiting periods in respect
thereof shall have expired and no such approvals shall contain any conditions, restrictions or
requirements which the FCB Board reasonably determines in good faith would (i) following the
Effective Time, have a Material Adverse Effect on FCB and its Subsidiaries taken as a whole or (ii)
reduce the benefits of the transactions contemplated hereby to such a degree that FCB would not
have entered into this Agreement had such conditions, restrictions or requirements been known at
the date hereof.

     (c) No Injunction; No Litigation. No Governmental Authority of competent jurisdiction
shall have enacted, issued, promulgated, enforced or entered any statute, rule, regulation,
judgment, decree, injunction or other order (whether temporary, preliminary or permanent) which is
in effect and prohibits consummation of the transactions contemplated by this Agreement, and no
litigation or proceeding shall be pending against FCB, First California Bank, SCB or SCC Bank
brought by any Governmental Authority seeking to prevent consummation of the transactions
contemplated hereby.

     (d) Executive Payments. One-half of the total of all Executive Payments shall have been paid
by SCC Bank prior to the Closing Date, and one-half of the total of all Executive Payments shall
remain unpaid as of the Closing Date.

41

 

     7.02. Conditions to Obligation of SCB

     The obligation of SCB to consummate the Merger is also subject to the fulfillment or written
waiver prior to the Effective Time of each of the following additional conditions:

     (a) Representations and Warranties. The representations and warranties of FCB and FC
Bank set forth in this Agreement shall be true and correct as of the date of this Agreement and as
of the Effective Date as though made on and as of the Effective Date (except that representations
and warranties that by their terms speak as of the date of this Agreement or some other date shall
be true and correct as of such date). For purposes of this paragraph, such representations and
warranties shall be deemed to be true and correct in all material respects unless the failure or
failures of such representations and warranties to be true and correct in all material respects,
either individually or in the aggregate, and without giving effect to any materiality, material
adverse effect or similar qualifications set forth in such representations and warranties, will
have or would reasonably be expected to have a Material Adverse Effect on FCB or FC Bank. FCB and
FC Bank shall have performed, in all material respects, each of its covenants and agreements
contained in this Agreement. SCB shall have received a certificate, dated the Effective Date,
signed on behalf of FC Bank by the chief executive officer and the chief financial officer of FC
Bank to such effect.

     (b) Performance of Obligations of FCB. FCB, the Merger Subsidiary and FC Bank shall have
performed in all material respects all obligations required to be performed by them under this
Agreement at or prior to the Effective Time, and SCB shall have received a certificate, dated the
Effective Date, signed on behalf of FC Bank by the chief executive officer and the chief financial
officer of FC Bank to such effect.

     7.03. Conditions to Obligation of FCB

     The obligation of FCB to consummate the Merger is also subject to the fulfillment or written
waiver prior to the Effective Time of each of the following conditions:

     (a) Representations and Warranties. The representations and warranties of SCB set forth
in this Agreement shall be true and correct as of the date of this Agreement and as of the
Effective Date as though made on and as of the Effective Date (except for changes after the date of
delivery of the Disclosure Schedules). For purposes of this paragraph, such representations and
warranties shall be deemed to be true and correct in all material respects unless the failure or
failures of such representations and warranties to be true and correct in all material respects,
either individually or in the aggregate, and without giving effect to any materiality, material
adverse effect or similar qualifications set forth in such representations and warranties, will
have or would reasonably be expected to have a Material Adverse Effect on SCB. SCB shall have
performed, in all material respects, each of its covenants and agreements contained in this
Agreement.

42

 

FCB shall have received a certificate, dated the Effective Date, signed on behalf of SCB by the
chief executive officer and the chief financial officer of SCB to the foregoing effects, with any
exceptions disclosed, and if there are any exceptions, such conditions shall be considered
satisfied only if and when such exceptions are accepted by FCB; provided, however, Closing shall
conclusively evidence such acceptance of exceptions by FCB.

     (b) Disclosure Schedule. The Disclosure Schedule shall be further updated and made
current prior to the Effective Time of the Merger and a draft of the updated Disclosure Schedule
shall have been delivered to FCB no later than 72 hours prior to the Effective Time of the Merger;
and at the Effective Time, such updated Disclosure Schedule shall be deemed the Disclosure Schedule
for purposes of closing certifications of officers as to the representations and warranties set
forth in Section 5.03, the performance of covenants contained in Article IV, and the performance of
any other obligations required to be performed by SCB under this Agreement. With respect to each
change in the Disclosure Schedule delivered to FCB after the date of this Agreement, such change
shall become effective prior to the Closing Date when either (i) such change shall be accepted by
FCB in its discretion, or (ii) FCB shall not have notified SCB in writing within ten (10) Business
Days after receipt of such change that such change was unacceptable to FCB.

     (c) Performance of Obligations of SCB. SCB shall have performed in all material respects
all obligations required to be performed by it under this Agreement at or prior to the Effective
Time, and FCB shall have received a certificate, dated the Effective Date, signed on behalf of SCB
by the chief executive officer and the chief financial officer of SCB to such effect.

     (d) Performance of Obligations of the Shareholders. FCB shall have received
Shareholder’s Agreements executed and delivered by each Shareholder of SCB as contemplated by
Section 6.19, each of which shall remain in full force and effect. The Shareholders shall have
performed in all material respects all obligations required to be performed by them under the
Shareholder Agreements. If requested by FCB, FCB shall have received a certificate, dated the
Effective Date, signed by each Shareholder to such effect with respect to such Shareholder.

     (e) Adjusted Shareholders’ Equity of SCB. As of four (4) Business Days prior to the
Effective Date, (i) the parties shall determine the exact dollar difference between the Base
Shareholders’ Equity and the Adjusted Shareholders’ Equity of SCB as of five (5) Business Days
prior to the Effective Date (the “Shareholders’ Equity Measuring Date”).

     (f) Closing Financial Statements. At least five Business Days prior to the Effective
Time of the Merger, SCB shall provide FCB with SCB’s financial statements presenting the financial
condition of SCB as of the close of business on the last day of the last month ended prior to the
Effective Time of the Merger and SCB’s results of operations for the period January 1, 2005 through
the close of business on the last day of

43

 

the last month ended prior to the Effective Time of the Merger (the “Closing Financial
Statements”); provided, however, that if the Effective Time of the Merger occurs on or before the
sixth Business Day of the month, SCB shall have provided consolidated financial statements as of
and through the second month preceding the Effective Time of the Merger. Such financial statements
shall have been prepared in all material respects in accordance with GAAP and regulatory accounting
principles and other applicable legal and accounting requirements, and reflect all period-end
accruals and other adjustments. Such financial statements shall be accompanied by a certificate of
SCB’s chief financial officer, dated as of a date no earlier than two Business Days prior to the
Effective Time of the Merger, to the effect that such financial statements continue to reflect
accurately, as of the date of the certificate, the financial condition of FCB in all material
respects.

     (g) Non-Competition Agreements. FCB shall have received Non-Competition Agreements
executed and delivered by each director of SCB as contemplated by
Section 6.14 who shall have
executed and delivered to FCB a Non-Solicitation Agreement in the form attached hereto as Exhibit
E, each of which shall remain in full force and effect.

     (h) Consents. SCB shall have obtained each of the material consents listed in Schedule
5.03 of the Disclosure Schedule and any material consents of the type required to be identified in
Schedule 5.03 of the Disclosure Schedule but were not so identified as of the date of this
Agreement. A copy of each such consent shall have been delivered to FCB.

     (i) Transaction Expenses. SCB shall exercise its commercially reasonable efforts to
ensure that at least five (5) Business Days prior to the Effective Time of the Merger, all
attorneys, accountants, investment bankers and other advisors and agents for SCB shall have
submitted to SCB estimates of their fees and expenses for all services rendered or to be rendered
in any respect in connection with the transactions contemplated hereby to the extent not already
paid, and based on such estimates, SCB shall have prepared and submitted to FCB a summary of such
fees and expenses for the transaction. At or prior to the Effective Time of the Merger SCB shall
use its best efforts to (i) cause such advisors to submit their final bills for all material fees
and expenses to SCB for services rendered, a copy of which SCB shall have caused to be delivered to
FCB, and based on such summary, SCB shall have prepared and submitted to FCB a final calculation of
such fees and expenses and (ii) accrue and pay the amount of such fees and expenses as calculated
above, after FCB has been given an opportunity to review all such bills and calculation of such
fees and expenses.

     (j) Resignations. FCB shall have received evidence satisfactory to it that all directors and
executive officers of SCB and SCC Bank have resigned from such respective offices, and not resign
from their employment, if any, with SCC Bank, effective immediately prior to the Effective Time of
the Merger.

     (k) Net Income. From January 1, 2005 until the Shareholders’ Equity Measuring Date (as
defined in Section 7.03(e)), the net income of SCB (on a consolidated

44

 

basis and excluding payments, costs and accruals described on Schedule 7.03(k) shall not be
less than One Million Three Hundred Thousand Dollars ($1,300,000); provided, however, that FCB may
waive this condition.

     (l) Adjusted Shareholders Equity. The Adjusted Shareholders Equity shall not be less than
Fourteen Million Dollars ($14,000,000.00); provided, however, that FCB may waive this condition.

ARTICLE VIII

TERMINATION

     8.01. Termination

     This Agreement may be terminated, and the Merger may be abandoned:

     (a) Mutual Consent. At any time prior to the Effective Time, by the mutual consent of
FCB and SCB if the Board of Directors of each so determines by vote of a majority of the members of
its entire Board.

     (b) Breach. At any time prior to the Effective Time, by FCB or SCB if its Board of
Directors so determines by vote of a majority of the members of its entire Board, in the event of:
(i) a breach by SCB or FCB, respectively, of any representation or warranty contained herein
(subject to the standard set forth in Section 5.02), which breach cannot be or has not been cured
within 30 days after the giving of written notice to the breaching party or parties of such breach;
(ii) a breach by SCB or FCB, respectively, of any of the covenants or agreements contained herein
(excluding Section 6.23), which breach cannot be or has not been cured within 30 days after the
giving of written notice to the breaching party or parties of such breach or (iii) in the case of a
termination by FCB, a breach by a Shareholder or Shareholders of any of the covenants or agreements
contained in the Shareholder Agreements, which breach cannot be or has not been cured within 30
days after the giving of written notice to the breaching party or parties of such breach, provided
that such breach (whether under (i), (ii) or (iii)) would be reasonably likely, individually or in
the aggregate with other breaches, to result in a Material Adverse Effect with respect to FCB or
SCB, as the case may be.

     (c) Delay. At any time prior to the Effective Time, by FCB or SCB if its Board of
Directors so determines by vote of a majority of the members of its entire Board, in the event that
the Merger is not consummated by September 30, 2005 except to the extent that the failure of the
Merger then to be consummated arises out of or results from the knowing action or inaction of (i)
such party, (ii) the Merger Subsidiary, FC Bank or SCC Bank (if FCB or SCB, respectively, is the
party seeking to terminate) or (iii) any of the Shareholders (if SCB is the party seeking to
terminate), which action or inaction is in violation of its obligations under this Agreement or, in
the case of the Shareholders, his, her or its obligations under the relevant Shareholder Agreement.

45

 

     (d) No Approval. By SCB or FCB, if the respective Board of Directors so determines by a
vote of a majority of the members of its entire Board, in the event (i) the approval of any
Governmental Authority required for consummation of the Merger, the Second Merger or the other
transactions contemplated by this Agreement shall have been denied by final nonappealable action of
such Governmental Authority or an application therefor shall have been permanently withdrawn at the
request of a Governmental Authority or (ii) the shareholder approval referred to in Section 7.01(a)
herein is not obtained at the SCB Meeting.

     (e) Acquisition Proposal. By FCB, if (i) SCB shall have exercised a right specified in
the provision set forth in Section 6.08 with respect to any Acquisition Proposal and shall,
directly or through agents or representatives, continue discussion with any third party concerning
such Acquisition Proposal for more than 10 Business Days after the date of receipt of such
Acquisition Proposal; or (ii) an Acquisition Proposal that is publicly disclosed shall have been
commenced, publicly proposed or communicated to SCB which contains a proposal as to price (without
regard to the specificity of such price proposal) and SCB shall not have rejected such proposal
within 10 Business Days of (x) its receipt or (y) the date its existence first becomes publicly
disclosed, if earlier.

     (f) Failure to Recommend. At any time prior to the SCB Meeting, by FCB if SCB shall have
breached Section 6.08 or SCB’s Board shall have failed to make its recommendation referred to in
Section 6.02, withdrawn such recommendation or modified or changed such recommendation in a manner
adverse in any respect to the interests of FCB.

     (g) Failure to Raise Capital. By SCB upon the failure of FCB either (i) to satisfy the
conditions specified in Section 6.23 within thirty (30) days of receipt of all necessary regulatory
approvals to consummate the Merger or (ii) to enter into binding agreements by June 30, 2005
providing for such financing, subject only to the receipt of all necessary regulatory approvals to
consummate the Merger, absence of material adverse changes and other normal and customary closing
conditions.

     (h) Schedule Delivery Date. At and for three Business Days following the Schedule Delivery
Date, FCB may terminate this Agreement in its discretion if FCB determines that any item in the
Disclosure Schedules is unacceptable to it, after providing SCB notice and a three Business Days’
opportunity to resolve the Disclosure Schedule issues.

     8.02. Effect of Termination and Abandonment

     (a) In the event of termination of this Agreement and the abandonment of the Merger pursuant
to this Article VIII, no party to this Agreement shall have any liability or further obligation to
any other party hereunder except (i) as set forth in subsection (b) below and Section 9.01, (ii)
that termination will not relieve a breaching party from liability for any willful breach of any
covenant, agreement, representation or warranty of

46

 

this Agreement giving rise to such termination and (iii) any other provision of this Agreement
which expressly survives the termination of this Agreement.

     (b) In the event this Agreement is terminated by FCB pursuant to Section 8.01(e) or (f), SCB
shall pay to FCB a termination fee, representing liquidated damages, of $2.5 million. In the event
this Agreement is terminated by FCB or by SCB pursuant to Section 8.01(b), the non-terminating
party shall pay a termination fee, representing liquidated damages, of $2.5 million to the
terminating party. In the event this Agreement is terminated by SCB pursuant to Section 8.01(g),
FCB shall pay to SCB a termination fee, representing liquidated damages, equal to $250,000 plus the
actual out-of-pocket costs incurred by SCB in connection with the Merger. In the event this
Agreement is terminated by FCB pursuant to Section 8.01(h), SCB shall pay FCB a termination fee of
$100. The payment of any termination fees pursuant to this Section 8.02(b) shall be the sole and
exclusive remedy available to a party with respect to the breach of any covenant or agreement
giving rise to such a payment, and the parties agree and stipulate that the amount of the
termination fees are reasonable and full liquidated damages and reasonable compensation to the
other party for their involvement in the proposed transactions contemplated by this Agreement to
the date of such notice of termination and is not a penalty or forfeiture.

     (c) Any Termination Fee that becomes payable to a party pursuant to this Section 8.02 shall be
paid by wire transfer of immediately available funds to an account designated by such party either
if this Agreement is terminated by a party and the termination meets the conditions set forth in
this Section 8.02 at or prior to such termination by the party.

     (d) SCB and FCB agree that the agreements contained in paragraphs (b) and (c) above are an
integral part of the transactions contemplated by this Agreement, that without such agreements FCB
and SCB would not have entered into this Agreement, and that such amounts do not constitute a
penalty. If a party fails to pay the other party the amounts due under paragraph (b) above within
the time periods specified in paragraph (c) above, such party shall pay all costs and expenses
incurred by the other party in connection with any action, including the filing of any lawsuit,
taken to collect payment of such amounts, together with interest on the amount of any such unpaid
amounts at the publicly announced prime rate of Bank of America, N.A. from the date such amounts
were required to be paid.

ARTICLE IX

MISCELLANEOUS

     9.01. Survival

     No representations, warranties, agreements and covenants contained in this Agreement shall
survive the Effective Time (other than Sections 6.10, 6.12, 6.13 and 6.17

47

 

and this Article IX, which shall survive the Effective Time) or the termination of this
Agreement if this Agreement is terminated prior to the Effective Time (other than Sections 6.05(d),
8.02 and this Article IX which shall survive any such termination).

     9.02. Waiver; Amendment

     Prior to the Effective Time, any provision of this Agreement may be (i) waived in whole or in
part by the party benefited by the provision or by both parties or (ii) amended or modified at any
time, by an agreement in writing between the parties hereto executed in the same manner as this
Agreement, except that after the SCB Meeting, this Agreement may not be amended if it would reduce
the aggregate value of the consideration to be received by SCB’s shareholders in the Merger without
any subsequent approval by such shareholders or be in violation of applicable law.

     9.03. Counterparts

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

     9.04. Governing Law, Jurisdiction and Venue

     This Agreement shall be governed by, and interpreted in accordance with, the laws of the State
of California (however, not to the exclusion of any applicable Federal law), without regard to
California statutes or judicial decisions regarding choice of law questions. The parties hereby
irrevocably submit to the jurisdiction of the courts of the State of California and the federal
courts of the United States of America located in the Southern District of the State of California
solely in respect of the interpretation and enforcement of the provisions of this Agreement and of
the documents referred to in this Agreement, and in respect of the transactions contemplated herein
and therein, and hereby waive, and agree to assert, as a defense in any action, suit or proceeding
for the interpretation or enforcement hereof or of any such documents, that it is not subject
thereto or that such action, suit or proceeding may not be brought or is not maintainable in said
courts or that the venue thereof may not be appropriate or that this Agreement or any such document
may not be enforced in or by such courts, and the parties hereto irrevocably agree that all claims
with respect to such action or proceeding shall be heard and determined in such California state or
federal court. The parties hereby consent to and grant any such court jurisdiction over the person
of such parties and over the subject matter of such dispute and agree that mailing of process or
other papers in connection with any such action or proceeding in the manner provided in Section
9.06 or in such other manner as may be permitted by law, shall be valid and sufficient service
thereof.

     9.05. Expenses

     Each party hereto will bear all expenses incurred by it in connection with this Agreement and
the transactions contemplated hereby.

48

 

     9.06. Notices

     All notices, requests and other communications hereunder to a party shall be in writing and
shall be deemed given if personally delivered, telecopied (with confirmation) or mailed by
registered or certified mail (return receipt requested) to such party at its address set forth
below or such other address as such party may specify by notice to the parties hereto.

	 	 	 	 	 	 	 	 	 
	 

	 	If to SCB or	 	 	 	 	 	 
	 

	 	SCC Bank to:
	 	 	 	South Coast Bancorp, Inc.
	 	 
	 

	 	 	 	 	 	19752 MacArthur Boulevard	 	 
	 

	 	 	 	 	 	Irvine, California 92612	 	 
	 

	 	 	 	 	 	Attention: Van Rhebeck, President and CEO	 	 
	 

	 	 	 	 	 	Phone: (949) 852-2500	 	 
	 

	 	 	 	 	 	Fax: (949) 852-1555	 	 
	 

	 	 	 	 	 	Email: vrhebeck@sccb.com	 	 
	 

	 	 	 	 	 	           digby99@aol.com	 	 
	 

	 	With copies to:
	 	 	 	Yocca Patch & Yocca, LLP	 	 
	 

	 	 	 	 	 	19900 MacArthur Blvd, Suite 650	 	 
	 

	 	 	 	 	 	Irvine, CA 92612-8412	 	 
	 

	 	 	 	 	 	Attention: Nicholas J. Yocca, Esq.	 	 
	 

	 	 	 	 	 	Phone: (949) 798-0190 (direct)	 	 
	 

	 	 	 	 	 	Phone: (949) 253-0800 (main)	 	 
	 

	 	 	 	 	 	Fax: (949) 203-8627	 	 
	 

	 	 	 	 	 	Email: nyocca@ypylaw.com	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	If to FCB, FC Bank	 	 	 	 	 	 
	 

	 	or the Merger Subsidiary	 	 	 	 	 	 
	 

	 	to:
	 	 	 	First California Bancorp	 	 
	 

	 	 	 	 	 	c/o First California Bank	 	 
	 

	 	 	 	 	 	1100 Paseo Camarillo	 	 
	 

	 	 	 	 	 	Camarillo, CA 93010	 	 
	 

	 	 	 	 	 	Attention: C. G. Kum, President and CEO	 	 
	 

	 	 	 	 	 	Phone: (805) 322-9308 (direct)	 	 
	 

	 	 	 	 	 	Fax: (805) 445-1388 (direct)	 	 
	 

	 	 	 	 	 	Email: cgkum@fcbank.com	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	With a copy to:
	 	 	 	Horgan, Rosen, Beckham & Coren, L.L.P.	 	 
	 

	 	 	 	 	 	23975 Park Sorrento, Suite 200	 	 
	 

	 	 	 	 	 	Calabasas, California 91302	 	 
	 

	 	 	 	 	 	Attention: Gary M. Horgan, Esq.	 	 
	 

	 	 	 	 	 	Telephone: 818-591-2121	 	 
	 

	 	 	 	 	 	Facsimile: 818-591-3838	 	 
	 

	 	 	 	 	 	Email: ghorgan@horganrosen.com	 	 

49

 

     9.07. Entire Understanding; No Third Party Beneficiaries

     This Agreement (including the Disclosure Schedule attached hereto and incorporated herein),
the Shareholder Agreements and the Non-Competition Agreements represent the entire understanding of
the parties hereto and thereto with reference to the transactions contemplated hereby and thereby
and this Agreement, the Shareholder Agreements and the Non-Competition Agreements supersede any and
all other oral or written agreements heretofore made. Except for Section 6.12, nothing in this
Agreement, expressed or implied, is intended to confer upon any Person, other than the parties
hereto or their respective successors, any rights, remedies, obligations or liabilities under or by
reason of this Agreement.

     9.08. Effect

     No provision of this Agreement shall be construed to require SCB, FCB or any Subsidiaries,
affiliates or directors of any of them to take any action or omit to take any action which action
or omission would violate applicable law (whether statutory or common law), rule or regulation.

     9.09. Severability

     Except to the extent that application of this Section 9.09 would have a Material Adverse
Effect on SCB or FCB, any term or provision of this Agreement which is invalid or unenforceable in
any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining terms and provisions of
this Agreement or affecting the validity or enforceability of any of the terms or provisions of
this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be
unenforceable, the provision shall be interpreted to be only so broad as is enforceable.

     9.10. Enforcement of the Agreement

     The parties hereto agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their specific terms or were
otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction
or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and
provisions hereof in any court of the United States or any state having jurisdiction, this being in
addition to any other remedy to which they are entitled at law or in equity.

     9.11. Interpretation

     When a reference is made in this Agreement to Sections, Exhibits or Schedules, such reference
shall be to a Section of, or Exhibit or Schedule to, this Agreement unless

50

 

otherwise indicated. The table of contents and headings contained in this Agreement are for
reference purposes only and are not part of this Agreement. Whenever the words “include”,
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the
words “without limitation”.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement and Plan of Reorganization
to be executed in counterparts by their duly authorized officers, all as of the day and year first
above written.

	 	 	 	 	 	 	 	 	 	 	 
	FIRST CALIFORNIA BANCORP	 	 	 	SOUTH COAST BANCORP, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	C.G. Kum
	 	 	 	 	 	Van Rhebeck	 	 
	 

	 	President and Chief Executive Officer
	 	 	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	SCB MERGER CORP	 	 	 	SOUTH COAST COMMERICAL BANK	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	C.G. Kum
	 	 	 	 	 	Van Rhebeck	 	 
	 

	 	President and Chief Executive Officer
	 	 	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	FIRST CALIFORNIA BANK	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	C.G. Kum	 	 	 	 	 	 	 	 
	 

	 	President and Chief Executive Officer	 	 	 	 	 	 	 	 

51

 

FIRST AMENDMENT TO

AGREEMENT AND PLAN OF REORGANIZATION

     This First Amendment to Agreement and Plan of Reorganization by and among
FCB BANCORP (formerly “FIRST CALIFORNIA BANCORP”), SCB MERGER CORP., FIRST
CALIFORNIA BANK, SOUTH COAST BANCORP, INC. and SOUTH COAST COMMERCIAL BANK is
made as of this ___day of March 2005.

     WHEREAS, the parties have entered into an Agreement and Plan
Reorganization dated February 2, 2005; and

     WHEREAS, the parties wish to amend that Agreement and Plan of
Reorganization as set forth herein.

     NOW THEREFORE, the Agreement and Plan of Reorganization is amended as
follows:

     1. All references to First California Bancorp shall be deleted and in lieu
thereof reference shall be to FCB Bancorp.

     2. Following Section 7.03(l) a new Section 7.03(m) is added as follows:

     “Nguyen Loan. The Nguyen Loan shall have been repaid in full, sold to a
third party, or refinanced by a third party so that it is no longer an asset of
SCC Bank or SCB.”

     Except as otherwise set forth herein, the Agreement and Plan of
Reorganization shall remain in full force and effect.

	 	 	 	 	 	 	 	 	 	 	 
	FIRST BANCORP	 	 	 	SOUTH COAST BANCORP, INC.	 	 
	(formerly “FIRST CALIFORNIA BANCORP”)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	C.G. Kum
	 	 	 	 	 	Van Rhebeck	 	 
	 

	 	President and Chief Executive Officer
	 	 	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	SCB MERGER CORP	 	 	 	SOUTH COAST COMMERICAL BANK	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	C.G. Kum
	 	 	 	 	 	Van Rhebeck	 	 
	 

	 	President and Chief Executive Officer
	 	 	 	 	 	President and Chief Executive Officer	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	FIRST CALIFORNIA BANK	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	C.G. Kum	 	 	 	 	 	 	 	 
	 

	 	President and Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]