Document:

Exhibit 10.1

                           INDEMNIFICATION AGREEMENT

     THIS  INDEMNIFICATION AGREEMENT (the "Agreement") is entered into effective
as  of  December  21,  2009  (the  "Effective Date"), between Sterling Financial
Corporation, a Washington corporation (the "Company"), and James B. Keegan, Jr.,
a  director  of  the  Company  ("Indemnitee").

                                R E C I T A L S

     A.  Indemnitee  is  a  director  of  the  Company  and  in such capacity is
performing  valuable  services  for  the  Company.

     B.  The Board of Directors has determined, after due investigation, without
the participation of Indemnitee, who recused himself from such investigation and
the  resulting  deliberations, that (i) Indemnitee has performed his duties as a
director  of  the  Company  in good faith and in a manner in which he reasonably
believed to be in the best interests of the Company and (ii) the protections set
forth  herein  are  not  only  reasonable  and prudent but also promote the best
interests  of  the  Company  and  its  shareholders.

     C.  Indemnitee  has  given  notice to the Company that he intends to resign
from  the  Board  of  Directors  in  the  near future because of health reasons.

     D.  The  Company  has  desired  and  requested  Indemnitee  to  continue to
cooperate  with  the Company subsequent to his term as a director of the Company
free  from  undue  concern  for unwarranted claims for damages arising out of or
related  to  his  services  to  the  Company.

     NOW,  THEREFORE,  in  consideration  of  the  recitals  above,  the  mutual
covenants  and  agreements set forth in this Agreement, and Indemnitee's service
as  a  director  both  before  and after the date hereof, Indemnitee's continued
cooperation  with the Company after the date hereof, and other good and valuable
consideration,  the  receipt  and adequacy of which are hereby acknowledged, the
Company  and Indemnitee, intending to be legally bound, hereby agree as follows:

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1.   INDEMNIFICATION

     1.1  SCOPE.  The  Company  agrees  to and shall hold harmless and indemnify
Indemnitee  to  the full extent permitted by law against any Damages (as defined
in  Section  1.3)  incurred  by  Indemnitee  with  respect to any Proceeding (as
defined  in  Section  1.4)  to which Indemnitee is or is threatened to be made a
party  or witness, notwithstanding that such indemnification is not specifically
authorized  by  this  Agreement,  the  Company's  Articles of Incorporation (the
"Articles")  or  the  Company's  Bylaws  (the "Bylaws"), the Washington Business
Corporation Act (the "Act") or otherwise. Such right to indemnification shall be
subject  to the limitations on, and conditions for, indemnification of directors
found  (a) in the Act as of the date of this Agreement and (b) elsewhere in this
Agreement, including, but not limited to the limitations of Section 18(k) of the
Federal  Deposit  Insurance  Act  and  Part 359 of the Federal Deposit Insurance
Corporation's  Rules  and  Regulations,  as  provided  in  Section  6.2  of this
Agreement.  In the event of any change, after the date of this Agreement, in any
applicable law, statute or rule issued pursuant to such law or statute regarding
the  right  of  a  Washington  corporation to indemnify a member of its board of
directors,  such  changes,  to  the  extent  that they would expand Indemnitee's
rights  hereunder,  shall  be  within  the  scope of Indemnitee's rights and the
Company's  obligations  hereunder,  and,  to  the  extent that they would narrow
Indemnitee's  rights hereunder, shall be excluded from this Agreement; provided,
however,  that  any  change  that  is  found in a final judgment, not subject to
appeal,  by  a  court  of proper jurisdiction to be required by applicable laws,
statutes  or  rules issued pursuant to such law or statute to be applied to this
Agreement shall be so applied regardless of whether the effect of such change is
to  narrow  Indemnitee's  rights  hereunder.

     1.2  NONEXCLUSIVITY.  The  indemnification provided by this Agreement shall
not  be  deemed exclusive of any rights to which Indemnitee may be entitled (and
any  failure  to  qualify  for indemnification under this Agreement shall not be
determinative  of  any  such rights) under the Company's Articles, the Company's
Bylaws,  any  vote  of  shareholders  or  disinterested  directors,  the  Act or
otherwise,  whether  as  to  actions  or omissions by Indemnitee in Indemnitee's
official  capacity  or  otherwise.

     1.3  INCLUDED  COVERAGE. If Indemnitee is made a party (or is threatened to
be made a party) to, or is otherwise involved (including, but not limited to, as
a  witness)  in  any  Proceeding,  the Company shall hold harmless and indemnify
Indemnitee  from and against any and all losses, claims, damages and liabilities
incurred  in  connection  with  such  Proceeding,  including  but not limited to
attorneys' fees, judgments, fines, ERISA excise taxes or penalties, amounts paid
in  settlement  and  any  other  related  expenses  (collectively,  "Damages").

     1.4  DEFINITION OF PROCEEDING. For purposes of this Agreement, "Proceeding"
shall  mean  any actual, pending, threatened or completed investigation, action,
suit,  claim  or  other  proceeding  (whether  civil,  criminal, administrative,
regulatory  or investigative and whether formal or informal) in which Indemnitee
is, has been or becomes involved by reason of the fact that Indemnitee is or was
at any time before, on or after the Effective Date of this Agreement, a director
of  the  Company or that, being or having been such a director, Indemnitee is or
was  serving  at  the  request  of the Company as a director, officer, employee,
trustee  or  agent  of  another  corporation or of a partnership, joint venture,
trust or other enterprise (collectively, a "Related Company"), including but not
limited  to service with respect to any employee benefit plan, whether the basis
of such investigation, action, suit, claim or other proceeding is alleged action
or  omission  by  Indemnitee  in  an  official  capacity as a director, officer,
employee, trustee or agent or in any other capacity while serving as a director,
officer,  employee,  trustee  or  agent;  provided,  however,  that, except with
respect  to  an action to enforce this Agreement, "Proceeding" shall not include
any  investigation,  action,  suit,  claim or proceeding instituted by or at the
direction  of Indemnitee unless such investigation, action, suit, claim or other
proceeding  is  or  was  authorized  by  the  Board.

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     1.5  NOTIFICATION.  As  promptly as reasonably practicable after receipt by
Indemnitee  of notice of the commencement of any Proceeding, Indemnitee will, if
a  claim  in  respect  thereof  is  to  be  made  against the Company under this
Agreement,  notify  the  Company of the commencement thereof; provided, however,
that  failure  to  so  notify  the  Company  will  relieve  the Company from any
liability that it may otherwise have to Indemnitee under this Agreement only if,
and then solely to the extent that, such failure can be shown to have materially
prejudiced  the  Company's  ability  to  defend  the  Proceeding.

     1.6  DETERMINATION  OF  ENTITLEMENT.  If  a  determination  of Indemnitee's
entitlement  to  indemnification  is  required  pursuant  to applicable law, (a)
Indemnitee  shall  initially  be  presumed  in  all  cases  to  be  entitled  to
indemnification,  and (b) unless the Company shall deliver to Indemnitee written
notice of a determination that Indemnitee may not be entitled to indemnification
within  thirty  (30)  days  after  the  Company's receipt of Indemnitee's notice
pursuant  to Section 1.5, Indemnitee shall conclusively be deemed to be entitled
to  such  indemnification and the Company hereby agrees not to assert otherwise.
Indemnitee  may establish a conclusive presumption of any fact necessary to such
a determination by delivering to the Company a declaration made under penalty of
perjury  that  such  fact  is  true.

     1.7  PRESUMPTION  AND  EFFECT  OF  CERTAIN  PROCEEDINGS.

          A.  The  Company  shall  have  the  burden  of  proof  to overcome the
     presumption  that  Indemnitee  is  entitled to the protections provided for
     herein.

          B.  The  settlement  or termination of any Proceeding or of any claim,
     issue  or  matter therein, by judgment, order, settlement or conviction, or
     upon  a  plea  of  nolo  contendere or its equivalent, shall not (except as
     otherwise  expressly provided in this Agreement) of itself adversely affect
     the  right  of  Indemnitee  to indemnification or create a presumption that
     Indemnitee  did  not  act  in  good  faith and in a manner which Indemnitee
     reasonably  believed  to  be in or not opposed to the best interests of the
     Company  or,  with  respect to any criminal Proceeding, that Indemnitee had
     reasonable  cause  to  believe  that  Indemnitee's  conduct  was  lawful.

     1.8   SURVIVAL.  The  indemnification  and   release  provided  under  this
Agreement  shall  apply  to  any  and  all  Proceedings,  notwithstanding   that
Indemnitee  has  ceased to be a director, officer, employee, trustee or agent of
the  Company  or  a  Related  Company.

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2.     ADVANCEMENT  OF  EXPENSES

     2.1     GENERALLY.  The  protections  provided for herein shall include the
right to have the Company pay Indemnitee's attorneys' fees and other expenses in
any Proceeding as such expenses are incurred and in advance of such Proceeding's
final  disposition  (such  right  is  referred  to  hereinafter  as  an "Expense
Advance").

     2.2  CONDITIONS  TO EXPENSE ADVANCE. The Company's obligation to provide an
Expense  Advance  is  subject  to  the  following  conditions:

          A.  UNDERTAKING.  Indemnitee or Indemnitee's representative shall have
     executed and delivered to the Company an acceptable undertaking, which need
     not be secured but shall demonstrate Indemnitee's financial ability to make
     repayment,  by or on behalf of Indemnitee, to repay all Expense Advances if
     and  to  the  extent  that  it  shall  ultimately be determined, by a final
     decision  not  subject  to  appeal  rendered  by  a  court  having  proper
     jurisdiction,  that  Indemnitee  is not entitled to be indemnified for such
     Expense  Advance  under  this  Agreement  or  otherwise.

          B.  AFFIRMATION.  If  required  under applicable law, Indemnitee shall
     furnish  a  written  affirmation  of  Indemnitee's  good  faith belief that
     Indemnitee  has  met  all  applicable  standards  of  conduct.

3.     PROCEDURES  FOR  ENFORCEMENT

     3.1  ENFORCEMENT.  If  a  claim  for  indemnification  made  by  Indemnitee
hereunder is not paid in full within thirty (30) days, or a claim for an Expense
Advance  made  by  Indemnitee  hereunder  is not paid in full within thirty (30)
days,  after  written  notice  of  such  claim  is delivered to the Company, the
parties  agree that Indemnitee's remedy at law will be inadequate and therefore,
in addition to any other right or remedy Indemnitee may have at law or in equity
with  respect  to  breach  of  this  Agreement,  Indemnitee shall be entitled to
injunctive  or mandatory relief directing specific performance by the Company of
its  obligations  under this Agreement (any such action at law, in equity or for
injunctive  or  mandatory  relief,  an  "Enforcement  Action").

     3.2  PRESUMPTIONS.  The  following  presumptions  (and  limitations  on
presumptions)  shall  apply  hereunder:

          A. The failure of the Company (including but not limited to the Board,
     independent or special legal counsel or the Company's shareholders) to make
     a  determination  prior  to  the commencement of an Enforcement Action that
     indemnification of Indemnitee is proper in the circumstances shall not be a
     defense  to  the Enforcement Action or create a presumption that Indemnitee
     is  not  entitled  to  indemnification  hereunder;  and

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          B.  If  Indemnitee  is  or  was  serving  (i)  as a director, officer,
     employee,  trustee  or  agent  of  a corporation of which a majority of the
     shares  entitled  to  vote  in  the  election  of  its directors is held or
     controlled  by  the  Company  or in which the Company has otherwise made an
     investment,  or  (ii)  in  an  executive  or  management  capacity  in  a
     partnership,  joint venture, trust or other enterprise of which the Company
     or  a  wholly-owned subsidiary of the Company is a general partner or has a
     majority  ownership  or  control  position  or  in  which  the  Company has
     otherwise  made  an  investment,  then such corporation, partnership, joint
     venture, trust or enterprise shall conclusively be deemed a Related Company
     and  Indemnitee  shall  conclusively  be  deemed to be serving such Related
     Company  at  the  request  of  the  Company  for  all  purposes  hereunder.

     3.3  ATTORNEYS'  FEES AND EXPENSES FOR ENFORCEMENT ACTION. If Indemnitee is
required  to  bring  an Enforcement Action, the Company shall pay, hold harmless
and  indemnify  Indemnitee  against  all  of  Indemnitee's  attorneys'  fees and
expenses  in  bringing  and  pursuing  the Enforcement Action (including but not
limited  to  attorneys'  fees at any stage of the Enforcement Action, and on any
appeal  of  such  Enforcement  Action).

4.     DEFENSE  OF CLAIM.  With respect to any Proceeding as to which Indemnitee
has  provided  notice  to  the  Company  pursuant  to  Section  1.5:

     4.1  The  Company  may  participate  therein  at  its  own  expense.

     4.2  If: (a) the Company agrees, in writing, to provide the Indemnitee with
all  of  the protections provided for herein with respect to the Proceeding; (b)
the  Company  is  able  to demonstrate, to Indemnitee's reasonable satisfaction,
that  it  is  financially  capable  of  providing  Indemnitee  with  all  of the
protections  provided  for  herein;  (c)  the Company retains counsel reasonably
satisfactory  to  Indemnitee;  and  (d)  there  exists  no  material conflict of
interest  between the Indemnitee and any of the other parties to the Proceeding,
then  the Company, jointly with any other indemnifying party similarly notified,
may  assume  the defense of the Proceeding for as long as the conditions in this
sentence  remain  fulfilledAfter  notice  from  the Company to Indemnitee of its
election  to  so  assume the defense thereof, the Company shall not be liable to
Indemnitee under this Agreement for any legal fees or other expenses (other than
reasonable  costs  of  investigation)  subsequently  incurred  by  Indemnitee in
connection  with  the  defense  thereof.

     4.3  The  Company shall not be liable for any amounts paid in settlement of
any  Proceeding  effected without its prior written consent, which consent shall
not  be  unreasonably  withheld.

     4.4  The  Company shall not settle any Proceeding in any manner which would
impose  any  penalty,  costs or Damages on Indemnitee without Indemnitee's prior
written  consent.

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     4.5  The  Company shall make reasonable efforts to ensure that the terms of
any settlement of any Proceeding to which Indemnitee is a party shall be subject
to  confidentiality  obligations  and  that  any  such settlement does not admit
Indemnitee's  culpability  with  respect to the subject matter of the proceeding
without  Indemnitee's  prior  written  consent.

5.   DIRECTORS  AND  OFFICERS  INSURANCE

     5.1  To  the  extent  that  the  Company  maintains a policy or policies of
insurance  ("D&O Insurance") for directors and officers, employees, or agents or
fiduciaries  of  the  Company  or  of  any other corporation, partnership, joint
venture,  trust,  employee  benefit  plan  or other enterprise which such person
serves at the request of the Company, Indemnitee shall be covered by such policy
or  policies  in accordance with its or their terms to the maximum extent of the
coverage  available for any such director, officer, employee or agent under such
policy  or  policies.

     5.2  In  the  event of any payment under this Agreement by the Company, the
Company  shall  be subrogated to the extent of such payment to all of the rights
of  recovery  of  Indemnitee,  who  shall  reasonably cooperate in the Company's
action  to  secure  such  rights,  including  executing  such  documents  as are
reasonably necessary to enable the Company to bring suit to enforce such rights.

     5.3  The  Company  shall  not  be  liable  under this Agreement to make any
payment  of  amounts  otherwise  payable  hereunder  if  and  to the extent that
Indemnitee  has  otherwise  actually  received  such payment under any insurance
policy,  contract,  agreement  or  otherwise.

6.     LIMITATION  ON  INDEMNIFICATION;  MUTUAL  ACKNOWLEDGMENT

     6.1  LIMITATION  ON  INDEMNIFICATION.  No  indemnification pursuant to this
Agreement  shall  be  provided  by the Company on account of any suit in which a
final,  unappealable  judgment  for which there is no further right of appeal is
rendered  by  a  court  having  proper  jurisdiction  against  Indemnitee for an
accounting of profits made from the purchase or sale by Indemnitee of securities
of the Company in violation of the provisions of Section 16(b) of the Securities
Exchange  Act  of  1934,  as  amended.

     6.2  Notwithstanding  any  other provision contained in this Agreement, the
provisions  of  this  Agreement are subject to the requirements, limitations and
conditions  set  forth  in state and federal laws, rules, regulations, or orders
regarding  indemnification,  defense  of claims and prepayment of legal fees and
expenses,  including,  but  not limited to, Section 18(k) of the Federal Deposit
Insurance  Act and Part 359 of the Federal Deposit Insurance Corporation's Rules
and  Regulations  or  any  successor  regulations  thereto.

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7.  COOPERATION  AND  PARTIAL INDEMNIFICATION. Indemnitee shall give the Company
such  information  and  cooperation as it may reasonably request and as shall be
within  Indemnitee's power. If the Indemnitee is entitled under any provision of
this  Agreement  to  indemnification by the Company for some or a portion of any
Damages  actually  and  reasonably incurred by the Indemnitee in connection with
the  investigation,  defense,  settlement  or  appeal  of  a  Proceeding but not
entitled,  however,  to indemnification for all of the total amount thereof, the
Company  shall nevertheless indemnify the Indemnitee for that portion thereof to
which  the  Indemnitee  is  entitled.

8.  SEVERABILITY.  Any  term  or  provision  of this Agreement which is declared
invalid  or  unenforceable  by  a  court  of  competent  jurisdiction  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.     GOVERNING  LAW;  BINDING  EFFECT; ASSUMPTION BY SUCCESSORS; AMENDMENT AND
TERMINATION

     9.1 This Agreement shall be interpreted and enforced in accordance with the
laws  of  the  State  of  Washington.

     9.2  This  Agreement shall be binding upon Indemnitee and upon the Company,
its successors and assigns, and shall inure to the benefit of Indemnitee, his or
her  spouse  and marital community, Indemnitee's heirs, personal representatives
and  assigns  and  to  the  benefit  of the Company, its successors and assigns.

     9.3  In  the  event  the  Company or any successor (i) consolidates with or
merges  into  any  other  person  or  entity  and shall not be the continuing or
surviving  corporation  or  entity  of  such  consolidation  or  merger  or (ii)
liquidates, dissolves or transfers all or substantially all of its assets to any
person  or  entity,  then,  and in each case, proper provisions shall be made so
that  the  successors  of  the  Company assume the obligations set forth in this
Agreement.

     9.4  No  amendment,  modification,  termination  or  cancellation  of  this
Agreement  shall  be  effective unless in writing signed by both parties hereto.

     9.5  No  amendment, modification, repeal, termination or replacement of any
part  or  all  of  the  Company's Bylaws or Articles shall operate in any way to
limit  Indemnitee's  rights  under  this  Agreement.

     9.6  Nothing  in  this  Agreement shall confer upon Indemnitee the right to
continue  to serve as a director and/or officer of the Company. If Indemnitee is
an  officer  of  the  Company,  then,  unless  otherwise expressly provided in a
written  employment agreement between the Company and Indemnitee, the employment
of  Indemnitee  with  the  Company  shall be terminable at will by either party.

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     9.7  It  is  understood that the parties hereto intend this Agreement to be
interpreted  and  enforced so as to provide indemnification to the Indemnitee to
the  fullest  extent  now  or  hereafter  permitted  by  law.

     9.8  Nothing in this Agreement is intended to require or shall be construed
as  requiring  the  Company  to  take or fail to take any action in violation of
applicable  law.  The  Company's inability to perform its obligations under this
Agreement pursuant to an unappealable judgment rendered by a court having proper
jurisdiction  shall  not  constitute  a  breach  of  this  Agreement.

                            [SIGNATURE PAGE FOLLOWS]

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IN  WITNESS  WHEREOF,  the  parties  have  executed and delivered this Agreement
effective  as  of  the  day  and  year  first  set  forth  above.

STERLING FINANCIAL CORPORATION

By: ________________________________________

INDEMNITEE

________________________________________

                 [SIGNATURE PAGE TO INDEMNIFICATION AGREEMENT]

                                       9December 21, 2009

        Mr. Wade A. Jacobson

        9267 S.E. Mast Terrace

        Hobe Sound, FL 33455

        
            	
                        Re:

                    	
                        Employment Agreement

                    

        

        Dear Wade:

        This letter shall state the terms and conditions of your employment by 1st United Bank (the “Bank”) as an Executive Officer of the Bank (the “Executive”).

        1.         Duties. Subject to the terms of this Agreement, from and after the date of this Agreement, you shall be an executive officer of the Bank, and shall in that capacity, report directly to the President of the Bank (the “President”) and shall devote your full time and
        efforts to the business and affairs of the Bank.

        2.         Term of Employment. The term of your employment under this Agreement (the “Term”) shall be one (1) year commencing on January 1, 2010 (the “Effective Date”); provided, however, that commencing on the first anniversary of the Effective Date and on each
        subsequent anniversary of that day, this Agreement shall be automatically renewed for an additional one-year period unless terminated in writing by either party in their sole discretion at least sixty (60) days prior to the expiration date of the then pending term.

        3.         Working Facilities. Your principal place of employment shall be at the Bank’s principal operations offices which are now at 1700 Palm Beach Lakes Boulevard, West Palm Beach, Florida 33401.

        
            	
                         

                    	
                        4.

                    	
                        Compensation; Benefit Plans.

                    

        

        4.1       Base Salary. Your initial annual base salary for the first year of employment shall be One Hundred Seventy Thousand and 00/100 Dollars ($170,000.00) per annum. Thereafter, the base salary shall be subject to increase by the Bank in its discretion. Your base salary shall be paid to you at
        periodic intervals in accordance with the Bank’s payroll policies for salaried employees.

        4.2       Bonus. You shall be entitled to receive incentive compensation following the end of each calendar quarter of the Bank during the Term, in an amount as determined pursuant to your Management Incentive Compensation Plan, the current form of which is attached hereto as Exhibit A and is made a
        part of this Agreement, subject to any future amendments we may agree to in writing. Each of us will use our reasonable efforts to agree on 

         

        

        

        

        the amount of the quarterly incentive payment, if any, within thirty (30) days of the end of each calendar quarter during the Term, and each such payment shall be paid to you by the Bank in the Bank’s payroll period immediately following our agreement on the foregoing amount. If the Term ends as of a date within the second or third month of a calendar quarter, your incentive compensation for that
        partial calendar quarter will be computed through the end of the calendar month immediately preceding the Date of Termination (as defined in Section 5.3).

        4.3       Expenses. The Bank agrees to reimburse you for all reasonable expenses incurred by you on behalf of the Bank in the course of your duties hereunder upon your presentation of appropriate vouchers therefor, all in accordance with the Bank’s then policies. Further, the Bank shall provide
        you with a non-accountable car allowance of Eight hundred and 00/100 Dollars ($800.00) per month during the Term. With respect to any amount of expenses eligible for reimbursement that is required to be included in your gross income for federal income tax purposes, such expenses shall be reimbursed to you no later than December 31 of the year following the year in which you incur the related expense. In no event shall the amount of expenses eligible for reimbursement in one taxable year
        affect the amount of expenses eligible for reimbursement in any other taxable year (except for those medical reimbursements referred to in Section 105(b) of the Internal Revenue Code of 1986, as amended).

        4.4       Participation in Benefit Plans. During the term of this Agreement, you will be entitled to full participation in all benefit plans and programs for which all of the Bank’s senior officers are or shall become eligible including, but not limited to, health and life insurance, to the
        maximum extent permissible under the provisions of any such plan or program.

        4.5       Vacation. You will be entitled to four (4) weeks paid vacation each year during the Term.

        
            	
                         

                    	
                        5.

                    	
                        Termination of Employment.

                    

        

        5.1       By the Bank. The Bank may, by action of the Board and upon written notice to you, your guardian, or similar court appointed caretaker, as the case may be, terminate your employment hereunder for “Disability”, or “Cause”, as defined in Section 5.3, or for a reason other
        than Disability or Cause.

        5.2       By You. You may voluntarily terminate your employment hereunder at any time by written notice to the Board.

        5.3       Definitions: Disability; Date of Termination; Cause. For purposes of this Agreement, (i) “Disability” shall mean your inability to perform your duties hereunder for a consecutive period of sixty (60) days, or for an aggregate of ninety (90) days in any consecutive twelve (12)
        month period, due to a physical or mental illness; (ii) “Date of Termination” shall mean the date set forth in the written notices described in Sections 5.1, 5.2 or 5.3 as the effective date of termination of employment hereunder or in the case of termination due to your death, the date of death; (iii) “Cause” shall include termination because of your personal dishonesty, willful misconduct, breach of fiduciary duty, intentional failure to perform stated duties,
        willful violation of any law, rule, or regulation (other than traffic violations or similar offenses) or final removal and prohibition order, final cease-and-desist order, or material breach of any provision 

         

        2

         

        

        

        

        of this Agreement or any event that would make you ineligible for employment by an insured depository institution under Section 19 of the Federal Deposit Insurance Act, as amended.

        
            	
                         

                    	
                        6.

                    	
                        Compensation Upon Termination of Employment.

                    

        

        6.1       Disability, Cause or Death. If your employment hereunder is terminated by the Bank for Cause, or if you terminate your employment for reasons other than a breach of this Agreement by the Bank, or if you or the Bank provides notice of non-renewal under Section 2, the Bank shall pay to you your
        then base salary for the period through the Date of Termination at the annual rate then in effect and the Bank shall have no further obligations to you hereunder. If your employment hereunder is terminated by the Bank for disability or by reason of your death, (i) the Bank shall pay to you, your guardian, or similar court appointed caretaker of your estate, as the case may be, your then base salary for the period through the Date of Termination at the annual rate in effect, plus earned
        but unused vacation time, and (ii) you, your guardian, or similar court appointed caretaker of your estate, as the case may be, shall have the right to exercise vested (but unexercised) stock options in accordance with the provisions of the 1st United Bancorp, Inc. (the “Company”) Incentive Plan, and the Bank shall have no further obligations to you.

        6.2       Other. If your employment hereunder is terminated by the Bank other than for Cause or other any of the other reasons specified in Section 6.1, the Bank shall pay you as liquidated damages and in complete satisfaction of all obligations to you hereunder (i) your accrued base salary as provided
        in Section 4.1 hereof then in effect through the Date of Termination, (ii) an amount equal to twelve (12) months of your then base salary, payable in the same periodic intervals as the Bank normally pays its employees pursuant to its payroll policies over the 12-month period immediately following the Date of Termination, (iii) reimburse you up to $1,000 per month for continuation of health coverage for you under COBRA for a period of twelve (12) months after the Date of Termination, and
        (iv) within thirty (30) days following the Date of Termination, an amount equal to the average annual bonus paid to you pursuant to Section 4.2 with respect to the two (2) immediately preceding fiscal years of the Bank.

        6.3       Change in Control. In the event of a Change in Control, the Bank shall pay you (i) within thirty (30) days following the closing date of the Change in Control, a lump sum amount equal to twelve (12) months of your then base salary; (ii) within thirty (30) days after the close of the calendar
        year during which the Change in Control is consummated, an amount equal to the average bonus with respect to the two (2) immediately preceding fiscal years of the Bank; and (iii) if your employment by the Bank ceases for any reason within twelve (12) months of the closing date of the Change in Control, reimburse you up to $1,000 per month for continuation of health coverage for you under COBRA for a period of twelve (12) months after the Date of Termination. “Change in
        Control” shall be defined hereunder as the acquisition by any “person”, as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (“Exchange Act”) (other than Bank or any subsidiary of Bank or any Bank employee benefit plan, including its trustee) of “beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act) of 50 percent or more of the combined voting power of the then outstanding securities of
        1st United Bancorp, Inc. entitled to vote generally in the election of directors.

         

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        6.4       Regulatory Restriction. No payment shall be required to be made under Sections 6.2 or 6.3 if such payment would violate 12 CFR Part 359, Rules of the Federal Deposit Insurance Corporation.

        6.5       Section 409A Compliance. If you are a specified employee (as defined in Section 409A of Internal Revenue Code of 1986, as amended), then distributions upon a separation from service may not be made before the date which is six (6) months after the date of separation from service (or, if
        earlier, the date of your death).

        7.         Non-Solicitation. You acknowledge that the Bank has a legitimate business interest in maintaining its customer base and goodwill. This provision is enforceable by the Bank in a court of law and will be mandatory and binding on you. Accordingly, you agree that for a period of two
        (2) years after the Date of Termination with respect to your employment, regardless of whether the termination was instituted by you or by the Bank for any reason whatsoever, (the “Restrictive Period”), you will not, without prior written consent of the Bank (a) contact directly or indirectly any customer of the Bank, or of any subsidiary of the Bank, in regard to offering or providing banking services or related services on behalf of you or anyone else; (b) hire for any
        other employer (including yourself) any employee of the Bank, or any subsidiary of the Bank, or any person who was an employee of the Bank or a subsidiary within twelve (12) months prior to such solicitation of employment; or (c) undertake a business opportunity that came to your attention through your employment hereunder which you had not previously offered in writing to the Bank and which the Bank had not rejected in writing; provided, however, that the Restrictive Period shall only
        be one (1) year after the Date of Termination if such termination is due to the Bank providing notice of non-renewal under Section 2 or the Bank terminates your employment without Cause; and provided further, that the restrictions in Section 7 shall not apply in the event of a closing of a Change in Control.

        8.         Confidentiality Confidential Data. You recognize and acknowledge that the customer list, vendor list, shareholder list, contracts, programs, trade secrets, financial data, future plans, records and other information as they may exist from time to time relating to the operation of
        the Company, the Bank, subsidiaries or profit centers undertaken by the Bank or any of their affiliates (collectively “information”) are valuable, special and unique assets of the Bank. At no time during or after the Term will you disclose any such information, or any part thereof, to any person, corporation, association or other entity for any reason or purpose whatsoever, except as may be necessary in the performance of your duties hereunder or to your attorney in
        conjunction with litigation or as may be required by applicable laws or the determination by any duly constituted administrative agency. In the event of a breach or threatened breach by you of the provisions of this Section, the Bank, any subsidiaries or any of their affiliates shall be entitled to an injunction restraining you from disclosing in whole or in part, such information, or from rendering any services to any person, firm, corporation, association or other entity to whom such
        information, in whole or in part, has been disclosed or is threatened to be disclosed. Nothing herein shall be construed as prohibiting the Bank or its subsidiaries or any of their affiliates from pursuit of any other remedies available to them for such breach or threatened breach, including recovery of damages from you.

        9.         Miscellaneous. This Agreement may not be modified or amended, and no provision hereof may be waived, except by an instrument in writing signed by the parties hereto. 

         

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        This Agreement has been executed and delivered in the State of Florida, and its validity, interpretation, performance, and enforcement shall be governed by the internal laws of Florida, except to the extent such laws are superseded by applicable federal law. This Agreement is personal to you and you may not assign or delegate any of your rights or obligations hereunder but shall be binding upon and
        insure to the benefit of any successor of the Bank and the heirs, executors, administrators and legal and personal representatives of your estate. Section headings are for convenience only and, being no part of this Agreement, shall not be used to interpret or modify the same. This Agreement represents our entire understanding with respect to the subject matter of this Agreement, and supersedes all other discussions.

        10.       Notices. Notices must be in writing and delivered by certified mail return receipt, a recognized national overnight courier service or by facsimile to:

        If to the Bank:

        1st United Bank

        1700 Palm Beach Lakes Boulevard

        West Palm Beach, FL 33401

        Attn: Rudy Schupp

        Facsimile: (561) 616-3108

        If to the Executive:

        Mr. Wade A. Jacobson

        9267 S.E. Mast Terrace

        Hobe Sound, FL 33455

        Facsimile: (______________)

        or to such other address as any party may designate by notice complying with the terms of this Section. Each such notice shall be deemed delivered (a) on the date delivered, if by messenger or courier service; (b) on the date of the confirmation of receipt, if by fax; and (c) either upon the date of receipt or refusal of delivery, if mailed.

        11.       Regulatory Approval. You and the Bank acknowledge that this Agreement or portions thereof may be subject to approval by or consent of bank regulatory authorities. If any required regulatory approval or consent is not obtained with respect to a portion of this Agreement, the parties agree
        that such portion of the Agreement shall be null and void.

        12.       Specific Performance. Each of the parties acknowledges that the parties will be irreparably damaged (and damages at law would be an inadequate remedy) if this Agreement is not specifically enforced. Therefore, in the event of a breach or threatened breach by any party of any provision of
        this Agreement, then the other parties shall be entitled, in addition to all other rights or remedies which may be available at law or in equity, to an injunction restraining such breach, without being required to show any actual damage or to post an injunction bond, and/or to a decree for specific performance of the provisions of this Agreement.

        13.       Severability. If any provision of this Agreement or any other agreement entered into pursuant hereto is contrary to, prohibited by or deemed invalid under applicable law or 

         

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        regulation, such provision shall be inapplicable and deemed omitted to the extent so contrary, prohibited or invalid, but the remainder hereof shall not be invalidated thereby and shall be given full force and effect so far as possible. If any provision of this Agreement may be construed in two or more ways, one of which would render the provision invalid or otherwise voidable or unenforceable and
        another of which would render the provision valid and enforceable, such provision shall have the meaning which renders it valid and enforceable. Without limiting the generality of the foregoing, in the event the duration, scope or geographic area contemplated by this Agreement are determined to be unenforceable by a court of competent jurisdiction, the parties agree that such duration, scope or geographic area shall be deemed to be reduced to the greatest scope, duration or geographic
        area which will be enforceable.

        14.       Enforcement Costs. If any civil action, arbitration or other legal proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default or misrepresentation in connection with any provision of this Agreement, the successful or prevailing party or
        parties shall be entitled to recover reasonable attorneys’ fees, court costs and all expenses (including, without limitation, all such fees, taxes, costs and expenses incident to arbitration, appellate, bankruptcy and post judgment proceedings), incurred in that civil action, arbitration or legal proceeding, in addition to any other relief to which such party or parties may be entitled. Attorneys’ fees shall include, without limitation, paralegal fees, investigative fees,
        and all other cost and expenses billed by the attorney to the prevailing party.

        THE PROVISIONS OF SECTIONS 5, 6, 7, 8, 9, 10, 11, 12, 13 and 14 SHALL SURVIVE THE TERM.

        If the foregoing accurately states the terms of our understanding, please sign this letter in the space provided below to so indicate, whereupon this letter shall become a binding agreement between us.

         

        	 	Very truly yours,	
                
	 	 	 	
                
	 	1st United Bank	
                
	 	 	 	
                
	
                     

                	
                    By:

                	/s/ Rudy Schupp 	 	
                
	
                     

                	
                     

                	Rudy Schupp
	
                     

                	
                     

                	President and Chief Executive Officer

        Accepted and Agreed to this day 22

        of December, 2009

        

        	/s/ Wade A. Jacobson	
                

        Wade A. Jacobson

        

         

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