Document:

Exhibit 10.4

CHINO COMMERCIAL BANK,
N.A.

SALARY
CONTINUATION AGREEMENT

This Salary Continuation Agreement (the “Agreement”) is entered into
effective the 1st day of June, 2004, by and between Chino Commercial Bank,
N.A., a national banking association (the “Bank”), and Jo Anne Painter
(the “Participant”), pursuant to the Salary Continuation Plan of the Bank (the “Plan”),
a copy of which is attached hereto and incorporated herein by this reference. All
capitalized terms not herein defined shall have the same meaning ascribed to
them as in the Plan.

1.             Grant of Salary Continuation Benefits. Pursuant to the
action of the Board of Directors or the Compensation Committee, as the case may
be, the Bank hereby grants to the Participant the salary continuation benefits
set forth in subsections 1(a) through (g) hereof. For purposes of
this Agreement, “Full Years of Employment With the Bank Completed” shall have
the same meaning as set forth in the Plan.

(a)           Benefits Upon Retirement. The Bank shall pay to the
Participant an annual retirement benefit of Thirty-Seven Thousand Dollars
($37,000) per year for ten (10) consecutive years. Such payments shall be
made in one hundred twenty (120) equal monthly installments commencing on the
first business day of the month following the Participant’s retirement date (as
set forth below) and continuing on the first business day of each month
thereafter until the specified number of installments have been paid in full. The
Bank shall have no obligation under this subsection 1(a), except as provided in
subsection 1(c) through (f) herein, if the Participant was not
continuously employed (as defined in Section 5 of the Plan) by the Bank
during the period from the date of execution of this Agreement until the
Participant’s retirement date set forth below. For purposes of this Agreement
and the Plan, the Participant’s retirement date shall be the first day of the
calendar month following the Participant’s sixty-fifth (65th) birthday.

(b)           Benefits Upon Death Prior to Retirement. In the event the
Participant dies prior to retirement while still employed by the Bank, the Bank
shall pay to the beneficiary designated by the Participant, the Participant’s
surviving spouse, if any, or to the Personal Representative of the Participant’s
estate, as the case may be (as more fully described in Section 6 hereof),
a lump sum benefit as specified in the Participant’s Split Dollar Agreement, a
copy of which is attached hereto as Exhibit “A,” or as otherwise specified
in the applicable life insurance policy or policies.

(c)           Benefits Upon Termination of Employment by the Bank Without Cause. In
the event the Bank terminates the Participant’s employment with the Bank
without cause (as defined in Section 5.4 of the Plan), the Bank shall pay
to the Participant a certain percentage of the retirement benefits granted by
the Bank in subsection 1(a) of this Agreement. The annual retirement
benefit payable by the Bank to the Participant pursuant to this subsection 

 

1(c) shall be equal to the amount which
corresponds to the percentage of such retirement benefits which have vested as
determined by the following vesting schedule:

	
  Full Years of

  Employment with the

  Bank Completed1

  	
   

  	
  Percent of

  Retirem ent Benefits

  Vested

  	
   

  	
  Full Years of

  Employment with the

  Bank Completed

  	
   

  	
  Percent of Retirement

  Benefits Vested

  	
   

  
	
   

  	
  1

  	
   

  	
   

  	
   

  	
  14

  	
  %

  	
   

  	
   

  	
  5

  	
   

  	
   

  	
   

  	
  70

  	
  %

  	
   

  
	
   

  	
  2

  	
   

  	
   

  	
   

  	
  28

  	
  %

  	
   

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
  84

  	
  %

  	
   

  
	
   

  	
  3

  	
   

  	
   

  	
   

  	
  42

  	
  %

  	
   

  	
   

  	
  7

  	
   

  	
   

  	
   

  	
  100

  	
  %

  	
   

  
	
   

  	
  4

  	
   

  	
   

  	
   

  	
  56

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Such retirement payments shall be payable by the Bank for ten (10) consecutive
years in one hundred twenty (120) equal monthly installments commencing upon
the first business day of the month following the Participant’s retirement date
(as set forth in subsection 1(a) hereof) and continuing on the first
business day of each month thereafter until the specified number of installments
have been paid in full.

(d)           Benefits Upon Voluntary Termination of Employment by Participant. In
the event the Participant voluntarily terminates her employment with the Bank,
the Bank shall pay to the Participant a certain percentage of the retirement
benefits granted by the Bank in subsection 1(a) of this Agreement. However,
in order to qualify for any benefits in the event of voluntary termination, the
Participant must refrain from engaging in the business of banking
within a twenty-five (25) mile radius of the Bank’s main office, or any branch
office, or of any location for which the Bank has applied for a branch office. The annual retirement benefit payable by
the Bank to the Participant pursuant to this subsection 1(d) shall be
equal to the amount which corresponds to the percentage of such retirement
benefits which have vested as determined by the following vesting schedule:

	
  Full Years of

  Employment with the

  Bank Completed1

  	
   

  	
  Percent of

  Retirem ent Benefits

  Vested

  	
   

  	
  Full Years of

  Employment with the

  Bank Completed

  	
   

  	
  Percent of Retirement

  Benefits Vested

  	
   

  
	
   

  	
  1

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  	
   

  	
  7

  	
   

  	
   

  	
   

  	
  28

  	
  %

  	
   

  
	
   

  	
  2

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  	
   

  	
  8

  	
   

  	
   

  	
   

  	
  42

  	
  %

  	
   

  
	
   

  	
  3

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  	
   

  	
  9

  	
   

  	
   

  	
   

  	
  56

  	
  %

  	
   

  
	
   

  	
  4

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  	
   

  	
  10

  	
   

  	
   

  	
   

  	
  70

  	
  %

  	
   

  
	
   

  	
  5

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  	
   

  	
  11

  	
   

  	
   

  	
   

  	
  84

  	
  %

  	
   

  
	
   

  	
  6

  	
   

  	
   

  	
   

  	
  14

  	
  %

  	
   

  	
   

  	
  12

  	
   

  	
   

  	
   

  	
  100

  	
  %

  	
   

  

 

Such retirement payments shall be payable by the Bank for ten (10) consecutive
years in one hundred twenty (120) equal monthly installments commencing upon
the first business day of the month following the Participant’s retirement date
(as set forth in subsection 1(a) hereof) with the Bank and continuing on
the first business day of each month thereafter until the specified number of
installments have been paid in full.

(e)           Benefits Upon Termination of Employment Due to Total Disability. In
the event the Participant’s employment with the Bank is terminated due to “total
disability” (as

1 Commencing on the effective date of this
Agreement.

 2
 

 

defined in Section 5.4 of the Plan), the Bank
shall pay to the Participant a certain percentage of the retirement benefits
granted by the Bank in subsection 1(a) of this Agreement. The amount of
the annual retirement benefit payable by the Bank to the Participant pursuant
to this subsection 1(e) shall be identical to that specified in the
vesting schedule set forth in subsection 1(c) above concerning termination
without cause.

2.             Death Subsequent to Retirement, Disability or Other Termination of
Employment. In the event the Participant dies subsequent to the
retirement date set forth in subsection 1(a), or as contemplated by Section 4,
or subsequent to the date of her termination of employment by the Bank as a
result of any Reorganization of the Bank as described in Section 5 below,
the Bank (or successor entity if applicable) shall immediately cease paying any
retirements benefits under this Agreement, and shall instead pay a lump sum
death benefit to the Participant’s beneficiary as specified in the Participant’s
Split Dollar Agreement or as otherwise specified in the applicable life
insurance policy or policies. In the event the Participant dies subsequent the
termination of her employment by the Bank without cause, voluntary termination
of employment, or termination of employment due to total disability, as
described in subsections 1(c) through (e) hereof, then the amount of
benefits due under the Participant’s Split Dollar Agreement shall be
proportional to the amount of the Participant’s benefits which were vested
pursuant to the Participant’s Salary Continuation Agreement at the time of such
termination. No deductions shall be made from the death benefit for any payments
previously made under this Salary Continuation Agreement.

3.             Termination of Employment For Cause. In the event the Bank
terminates the Participant’s employment with the Bank for “cause” (as defined
in the Plan), the Bank shall have no obligation to pay any benefits under the
Plan, this Agreement or the Participant’s Split Dollar Agreement to the
Participant or any beneficiary thereof.

4.             Early or Late Retirement. The Participant may apply to the
Board of Directors for an early or late retirement. The decision whether to
accept or reject such an application shall be in the sole discretion of the
Board of Directors, and the Board shall have no obligation whatsoever to accept
any such application. In the event the Board of Directors accepts the
Participant’s application for early or late retirement, this Agreement shall be
amended to reflect the revised terms of the Participant’s retirement date and
amount of such retirement benefits. Such revised benefits shall be payable by
the Bank pursuant to this Section 4 only to the extent that the
Participant was continuously employed by the Bank during the period from the
date of execution of this Agreement until the date of the Participant’s revised
retirement date. Retirement benefits under this Section 4 shall be payable
in equal monthly installments for a period of ten (10) consecutive years
commencing on the first business day of the month following the Participant’s
revised retirement date and continuing on the first business day of each month
thereafter for one hundred twenty (120) consecutive months until all of the
specified installments have been paid in full.

5.             Reorganization. For purposes of this Agreement, a “Reorganization”
shall include: (i) a reorganiza­tion, merger, or consolidation of the Bank
with one or more corporations as a result of which the Bank will not be the
surviving entity, (ii) a sale of substantially all the assets and property
of the Bank to another person, corporation or entity, or (iii) a “change
in control,” i.e., any other single transaction involving the Bank (such as a
tender offer) where

 3
 

 

there is a change in ownership of at least twenty-five
percent (25%) of the Bank’s outstanding shares, unless such change in
ownership results from (i) a transfer of shares to another corporation in
exchange for at least eighty percent (80%) control of that corporation, or (ii) the issuance of additional
shares of stock by the Bank in a secondary stock offering, private placement or
similar transaction. In the event of any Reorganization, the surviving
or resulting corporation, or the transferee of the Bank’s assets or stock,
whichever  may apply, shall be bound by
and shall have the benefits of the Plan and this Agreement. The Bank shall take
all actions necessary to ensure that such corporation or transferee is bound by
the provisions of the Plan and this Agreement.

In the event that the Participant’s employment is terminated (or “constructively
terminated”) in connection with or within one (1) year following a
Reorganization, the Participant shall be one hundred percent (100%) vested in
the total benefit as described in subsection 1(a) of this Agreement. For
purposes of this Agreement, “constructive termination” shall include: (i) any
decrease in salary or benefits below those in effect for the Participant
immediately prior to the Reorganization or (ii) any relocation of the
Participant more than twenty-five (25) miles from her principal place of business immediately prior
to the Reorganization.

Notwithstanding the prior paragraph, no payment shall be made to the
Participant under this Salary Continuation Agreement to the extent that such
payment, when aggregated with all other payments considered for purposes of
calculating a parachute payment, would result in an excess parachute payment as
defined under Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”).

6.             Beneficiaries. The Participant may designate one or more
primary or contingent beneficiaries to receive all or any specified portion of
any benefits under the Plan which, at the time of the Participant’s death
remain payable by the Bank to the Participant. The Participant may designate
such beneficiary(ies) on Exhibit A attached hereto. The designation of any
such beneficiaries may be changed or revoked at any time prior to the
Participant’s death by giving the Bank three (3) days’ written notice of
such change or revocation in the manner provided in Section 9 of this
Agreement.

In the event the Participant shall fail to designate a beneficiary
prior to her death or designates a beneficiary and thereafter revokes such
designation without naming another beneficiary, or designates one or more
beneficiaries and all such beneficiaries so designated shall fail to survive
the Participant, any payments of benefits under the Plan and this Agreement
shall be made to the Participant’s surviving spouse, if any, or otherwise to
the Personal Representative of the Participant’s estate.

Unless the Participant has otherwise specified in the beneficiary
designation, the beneficiary or beneficiaries designated by the Participant
shall become fixed as of the Participant’s death so that, if a beneficiary
survives the Participant but dies prior to the receipt of all payments due such
beneficiary, such remaining payments shall be payable to the Personal
Representative of such beneficiary’s estate.

 4
 

 

The Participant and her beneficiaries shall not have any assignable
interest in the future payments due under the Plan or this Agreement, nor any
right to anticipate, dispose of, pledge or encumber the same prior to actual
receipt thereof, nor shall the same be subject to attachment, garnishment, or
execution following judgment or other legal process instituted by the
Participant’s creditors or any such beneficiary; provided, however, that the
balance of the Participant’s benefit payments shall at all times be subject to
offset for debts owed by the Participant to the Bank.

7.             Effect on Employment Rights. Nothing in this Agreement shall
be deemed to give the Participant any right to remain in the employ of the Bank
nor to affect the right of the Bank to terminate the employment of the
Participant at any time, with or without cause, which right is hereby reserved.
This Agreement shall not be considered a supplement or amendment to any
contract of employment, either oral or written, between the Participant and the
Bank.

8.             Limitation on the Bank’s Obligation to Fund Agreement. The
Bank’s obligation to make payments hereunder is an unfunded and unsecured
contractual obligation only; and in the event any insurance company or other
obligor issuing a life insurance or annuity policy or other investment
instrument purchased by the Bank to fund this Agreement shall fail or be in
imminent danger thereof, the Bank shall have the right to take immediate action
to recoup so much of its investment as possible, and shall have no obligation
to fund this Agreement or portion thereof to the extent that this Agreement was
intended to be funded by the proceeds of such policy, annuity or other
investment. Neither the Participant nor her beneficiaries shall have any
beneficial or preferred interest by way of trust, escrow, lien or otherwise, in
any specific assets or funds of the Bank, including any insurance or annuity
contracts or the proceeds therefrom, as described below.

No life insurance or annuity policy or other investment instrument
purchased by the Bank in connection with this Agreement shall in any way be
considered to be security for the performance of the Bank’s obligations
hereunder. The Bank shall be the owner and beneficiary of such policy(ies) and
any such policy shall be, and remain, a general unpledged, unrestricted asset
of the Bank.

9.             Notices. All notices or other communications required or
permitted to be given hereunder shall be in writing and shall be deemed to have
been duly given, upon personal delivery (professional courier acceptable) or
three (3) business days following deposit with the United States Postal
Service, by registered or certified mail, postage prepaid, with return receipt
requested, to the following addresses: (a) if to the Bank, to its
principal place of business, and (b) if to the Participant, to her address
set forth on the signature page hereof. Such persons or addresses may
change from time to time by notice given pursuant to the provisions of this
Section.

10.           Governing Law. Except to the extent governed by the laws of
the United States, this Agreement shall be governed by and construed in
accordance with the laws of the State of California.

11.           Plan Provisions. This Agreement is subject to all of the
provisions of the Plan, all of the terms and conditions of which have been
incorporated herein by reference, and is

 5
 

 

further subject to all interpretations, amendments, rules and
regulations which may from time to time be promulgated and adopted pursuant to
the Plan. In the event of any conflict between the provisions of this Agreement
and those of the Plan, the provisions of the Plan shall control. No termination
or amendment of the Plan may, without the consent of the Participant, terminate
the Participant’s benefits under this Agreement or materially and adversely
affect the Participant’s rights under this Agreement, except in the event of
certain changes in laws or regulations described in the sentence immediately
following. The Bank reserves the right to terminate or modify a Participant’s
outstanding agreement or benefits in the event of (i) any changes in
federal tax laws which would limit the Bank’s available tax deductions in
connection with the funding this Agreement; or (ii) any changes in
applicable laws, regulations or regulatory policies which would cause this
Agreement to be legally impermissible or would subject the Bank to criticism by
a bank regulatory agency.

12.           Legal and Tax Advice; Review by Counsel. The Bank has not
provided the Participant with advice, warranties or representations regarding
any of the legal or tax effects to the Participant with respect to the grant of
benefits herein. By accepting this grant and by signing this Agreement, the
Participant acknowledges that she is familiar with the terms of the Plan and
this Agreement, that she has been encouraged by the Bank to discuss the Plan
and this Agreement with her own legal and tax advisers, and that she agrees to
be bound by all of the terms and conditions of the Plan and this Agreement. The
Participant represents and warrants to the Bank that she has had this Agreement
reviewed by independent legal counsel of her choice, or if she has not, that
she has had the opportunity to do so, and hereby waives any claim, objection or
defense on the grounds that this Agreement has not been reviewed by legal
counsel of her choice.

 

	
  

  	
   

  	
  CHINO COMMERCIAL BANK, N.A.

  
	
   

  	
   

  	
  a national banking association

  
	
   

  	
   

  	
  By

  	
   

  	
  /s/ Dann H.
  Bowman

  
	
   

  	
   

  	
  By

  	
   

  	
  /s/ Pollyanna Franks

  
	
  PARTICIPANT

  	
   

  	
   

  	
   

  	
   

  
	
  Jo Anne Painter

  	
   

  	
   

  	
   

  	
   

  
	
  Executive
  Vice President

  and Chief Financial Officer

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Jo Anne Painter

  	
   

  	
   

  	
   

  	
   

  
	
  JO ANNE PAINTER

  	
   

  	
   

  	
   

  	
   

  
	
  Participant’s Address:

  	
   

  	
   

  	
   

  	
   

  
	
  [Intentionally Omitted]

  	
   

  	
   

  	
   

  	
   

  

 

 6
 

 

EXHIBIT A

DESIGNATION OF
BENEFICIARIES

Pursuant to the terms of a Salary Continuation Agreement, effective June 1,
2004, between Chino Commercial Bank, N.A. (the “Bank”) and me, I hereby
designate the following beneficiary(ies) to receive any payments which may be
due and payable by the Bank under such Agreement after my death:

	
  Primary Beneficiary:

  	
   

  	
  Roy Lee Painter

  
	
   

  	
   

  	
   

  
	
  Contingent
  Beneficiary:

  	
   

  	
   

  

 

The Primary Beneficiary named above shall be the designated beneficiary
referred to in Section 6 of said Agreement if he or she is living at the
time death benefit payments become due and payable by the Bank, and the
Contingent Beneficiary named above shall be the designated beneficiary referred
to in Section 6 of said Agreement only if he or she is living at the time
death benefits become due and payable by the Bank and the Primary Beneficiary
is not then living.

I hereby reserve the right to change said beneficiary(ies) at any time
prior to my death by notice to the Bank in accordance with Section 9 of
the Agreement.

 

	
  Dated:

  	
   

  	
  12/23/04

  	
   

  	
  /s/ Jo Anne Painter

  
	
   

  	
   

  	
   

  	
   

  	
  JO ANNE PAINTER

  
	
  Witness:

  	
   

  	
  /s/ Harriet E. Hellwarth

  	
   

  	
   

  

 

 7

CHINO COMMERCIAL BANK, NA

Split Dollar Agreement

CHINO
COMMERCIAL BANK, NA

SPLIT DOLLAR AGREEMENT

(ADDENDUM A TO THE
CHINO COMMERCIAL BANK SALARY CONTINUATION AGREEMENT)

THIS AGREEMENT is
adopted this 1st day of June, 2004, by and between CHINO
COMMERCIAL BANK, NA, located in Chino, California (the “Company”), and JO ANNE
PAINTER (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 sixty-five (65) years of age.

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

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

1.6       “Termination for Cause”  shall be defined as set forth in Article 7.

1.7       “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 of the death
proceeds. 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.

2.2.1        Death During Active
Service. If the Executive dies while in the active service of the
Company, the Company shall pay to the Executive’s beneficiary $267,105 (Two
Hundred Sixty-Seven Thousand One Hundred Five Dollars) upon the death of the
Executive.

2.2.2        Death During Payment of a
Benefit under the Salary Continuation Agreement. If the Executive
dies after any benefit payments have commenced under Article 2 of the
Salary Continuation Agreement but before receiving all such payments, the
Company shall cease paying the remaining benefit, if any, and shall then pay to
the Executive’s beneficiary the split dollar death benefit described in Section 2.2.1
of this Agreement.

2.2.3        Death After Termination of
Employment But Before Commencement of Payment under the Salary Continuation
Plan. If the Executive is entitled to a benefit under Article 2
of the Salary Continuation Agreement, but dies prior to the commencement of
said benefit payments, the Company shall pay no benefit under the Salary
Continuation Agreement but shall pay to the Executive’s beneficiary the split
dollar death benefit described in Section 2.2.1 of this Agreement.

2.3       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 a 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’s
creditors.

However, if the
payments being made pursuant to the Salary Continuation Agreement at the time
of the Executive’s death represent only a portion of the total benefits due
thereunder, due to the application of the vesting schedule set forth in Section 1
(c) through (e) thereof, then the Company shall pay to the Executive’s
beneficiary the same proportion of the split dollar death benefit as the vested
proportion of the benefit that was being paid pursuant to the Salary
Continuation Agreement at the time of Executive’s death.

 2
 

 

However, if the
Executive is entitled to only a portion of the benefits to be paid under the
Executive’s Salary Continuation Agreement pursuant to the vesting schedule set
forth in Section 1 (c) through (e) thereof, then the Company
shall pay to the Executive’s beneficiary the same proportion of the split
dollar death benefit as the vested proportion of the benefit due pursuant to
the Salary Continuation Agreement.

2.2.4        Death After Payment of All
Benefits under the Salary Continuation Agreement. If the Executive
dies after receiving all benefit payments under Article 2 of the Salary
Continuation Agreement, the Company shall still pay to the Executive’s
beneficiary the split dollar death benefit described in Section 2.2.1 of
this Agreement. However, if the payments made pursuant to the Salary
Continuation Agreement represented only a portion of the total benefits due
thereunder, due to the application of the vesting schedule set forth in Section 1
(c) through (e) thereof, then the Company shall pay to the Executive’s
beneficiary the same proportion of the split dollar death benefit as the vested
proportion of the benefit that was paid pursuant to the Salary Continuation
Agreement.

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.

3.3       Imputed
Income. The Company shall impute the economic benefit to the
Executive on an annual basis.

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.

 

 3
 

 

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,

(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) (29 United States
Code section 1132(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:

 4
 

 

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 its
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).

Article 7

Amendments and Termination

7.1       This Agreement may be amended or
terminated only by a written agreement signed by the Company and the Executive.

 5
 

 

7.2       In the event this Agreement is terminated
under this Article 7, the Company shall not sell, surrender or transfer
ownership of the Policy without first giving the Executive or the Executive’s
transferee the option to purchase the Policy for a period of sixty (60) days
from written notice of such intention. The purchase price shall be an amount
equal to the cash surrender value of the Policy.

7.3       Notwithstanding any provision of this
Agreement to the contrary, the Company shall not pay any benefit under this
Agreement if the Company terminates the Executive’s employment for:

(a)       Willful breach of duty in the course of
employment or habitual neglect of employment responsibilities and duties;

(b)       Conviction of any felony or crime
involving moral turpitude, fraud or dishonesty;

(c)       Willful violation of any state or federal
banking or securities law, the rules or regulations of any banking agency,
or any material Company rule, policy or resolution resulting in an adverse
effect on the Company; or

(d)        Disclosure to any third party by the
Executive, without authority or permission, of any secret or confidential
information of the Company.

7.4       Suicide or Misstatement.
The Company shall not pay any benefit under this Agreement if the Executive
commits suicide within two years after the date of this Agreement. In addition,
the Company shall not pay any benefit under this Agreement if the Executive has
made any material misstatement of fact on an employment application or resume
provided to the Company, or on any application for any benefits provided by the
Company to the Executive.

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 and 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.

 6
 

 

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 signed 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, to 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 the 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 this 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.

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 the management
and operation responsibilities of the plan including the employment of advisors
and the delegation of ministerial duties to qualified individuals.

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

	
  EXECUTIVE:

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
  CHINO COMMERCIAL BANK

  
	
  /s/ Jo
  Anne Painter

  	
   

  	
  By

  	
   

  	
  /s/ Pollyanna Franks

  
	
  Jo Anne
  Painter

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  	
  Chairman Compensation

  

 7
 

 

 

CHINO COMMERCIAL BANK ,
NA

Split Dollar Agreement

BENEFICIARY DESIGNATION FORM

I designate the
following as beneficiary of benefits under the Agreement payable following my
death:

Primary:                                              Roy
Lee Painter                                                                          

________________________________________________________________________________

 

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 delivering a new written
designation to the Plan Administrator. 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.

Name:                           Jo
Anne Painter                        

Signature:                 /s/ Jo Anne Painter                        Date: 12/22/04

SPOUSAL
CONSENT (Required if Spouse not named beneficiary):

I consent to the
beneficiary designation above, and acknowledge that if I am named beneficiary
and our marriage is subsequently dissolved, the designation will be
automatically revoked.

Spouse Name:       _______________________________

Signature              ________________________________      Date:       ________

 

Received by the
Plan Administrator this ________ day of ___________________, 2004.

By:            _________________________________

Title:         _________________________________

 

 8

 

POLICY
ENDORSEMENT

Contract Owner:           CHINO
COMMERCIAL BANK, NA

The
undersigned Owner requests that the policy(ies) shown in the attached Schedule Page issued
by Clarica Life Insurance Co.-US (the “Insurer”) provide for the
following beneficiary designation:

1. Upon the death of the Insured, proceeds shall be paid in one
sum to the Owner, its successors or assigns, as Beneficiary, to the extent
claimed by said Owner.

2. Any proceeds at the death of the Insured in excess of the
amount paid under the provisions of paragraph 1 of this Policy Endorsement
shall be paid in one sum in accordance with the written direction of the Owner.
Such direction will be provided to the Insurer at the time of claim. The
Insurer will be protected in relying solely on the Owner to provide the name(s) of
the party(ies) to pay any excess not paid under paragraph 1. If the Owner fails
to provide the name(s) of the party(ies) at the time of claim, then any
proceeds payable under this paragraph shall be paid in one sum to the
Beneficiary.

3. It is hereby provided that (i) any payment made to the
Beneficiary or other party under paragraph 2 of this Policy Endorsement shall
be a full discharge of the Insurer to the extent thereof; (ii) such
discharge shall be binding on all parties claiming any interest under the
Policy; and (iii) the Insurer shall have no responsibility with respect to
the amounts so claimed.

4. It is agreed by the undersigned that this designation shall be
subject in all respects to the contractual terms of the Policy.

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

Signed
at Chino, California, this 29th day of December, 2004.

OWNER:

CHINO COMMERCIAL BANK, NA

	
  By:

  	
   

  	
  /s/ Dann H. Bowman

  	
   

  	
  By:

  	
   

  	
  /s/ Pollyanna Franks

  
	
  Title:

  	
   

  	
  President and CEO

  	
   

  	
  Title:

  	
   

  	
  Chairman Compensation

  

 

 1
 

 

 

Schedule
Page

Policy(ies) Subject to Policy Endorsement

 

	
  Policy Number

  	
   

  	
   

  	
   

  	
  Insured

  
	
   

  	
   

  	
  Jo Anne Painter

  

 

 

 2

 

POLICY
ENDORSEMENT

Contract Owner:           CHINO
COMMERCIAL BANK, NA

The
undersigned Owner requests that the policy(ies) shown in the attached Schedule Page issued
by West Coast Life Insurance Co. (the “Insurer”) provide for the
following beneficiary designation:

1. Upon the death of the Insured, proceeds shall be paid in one
sum to the Owner, its successors or assigns, as Beneficiary, to the extent
claimed by said Owner.

2. Any proceeds at the death of the Insured in excess of the
amount paid under the provisions of paragraph 1 of this Policy Endorsement
shall be paid in one sum in accordance with the written direction of the Owner.
Such direction will be provided to the Insurer at the time of claim. The
Insurer will be protected in relying solely on the Owner to provide the name(s) of
the party(ies) to pay any excess not paid under paragraph 1. If the Owner fails
to provide the name(s) of the party(ies) at the time of claim, then any
proceeds payable under this paragraph shall be paid in one sum to the
Beneficiary.

3. It is hereby provided that (i) any payment made to the
Beneficiary or other party under paragraph 2 of this Policy Endorsement shall
be a full discharge of the Insurer to the extent thereof; (ii) such
discharge shall be binding on all parties claiming any interest under the
Policy; and (iii) the Insurer shall have no responsibility with respect to
the amounts so claimed.

4. It is agreed by the undersigned that this designation shall be
subject in all respects to the contractual terms of the Policy.

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

Signed
at Chino, California, this 29th day of December, 2004.

OWNER:

CHINO COMMERCIAL BANK, NA

 

	
  By:

  	
   

  	
  /s/ Dann H. Bowman

  	
   

  	
  By:

  	
   

  	
  /s/ Pollyanna Franks

  
	
  Title:

  	
   

  	
  President and CEO

  	
   

  	
  Title:

  	
   

  	
  Chairman Compensation

  

 

 1
 

 

 

Schedule
Page

Policy(ies) Subject to Policy Endorsement

 

	
  Policy Number

  	
   

  	
   

  	
   

  	
  Insured

  
	
   

  	
   

  	
  Jo Anne Painter

  

 

 2Exhibit 10.5

CHINO COMMERCIAL BANK,
N.A.

SALARY CONTINUATION
AGREEMENT

This Salary Continuation Agreement (the “Agreement”) is entered into
effective the 1st day of June, 2004, by and between Chino Commercial Bank,
N.A., a national banking association (the “Bank”), and Roger Caberto (the “Participant”),
pursuant to the Salary Continuation Plan of the Bank (the “Plan”), a copy of
which is attached hereto and incorporated herein by this reference. All
capitalized terms not herein defined shall have the same meaning ascribed to
them as in the Plan.

1.             Grant of Salary Continuation Benefits. Pursuant to the
action of the Board of Directors or the Compensation Committee, as the case may
be, the Bank hereby grants to the Participant the salary continuation benefits
set forth in subsections 1(a) through (g) hereof. For purposes of
this Agreement, “Full Years of Employment With the Bank Completed” shall have
the same meaning as set forth in the Plan.

(a)           Benefits Upon Retirement. The Bank shall pay to the
Participant an annual retirement benefit of Thirty-Two Thousand Dollars
($32,000) per year for ten (10) consecutive years. Such payments shall be
made in one hundred twenty (120) equal monthly installments commencing on the
first business day of the month following the Participant’s retirement date (as
set forth below) and continuing on the first business day of each month
thereafter until the specified number of installments have been paid in full. The
Bank shall have no obligation under this subsection 1(a), except as provided in
subsection 1(c) through (f) herein, if the Participant was not
continuously employed (as defined in Section 5 of the Plan) by the Bank
during the period from the date of execution of this Agreement until the
Participant’s retirement date set forth below. For purposes of this Agreement
and the Plan, the Participant’s retirement date shall be the first day of the
calendar month following the Participant’s sixty-fifth (65th) birthday.

(b)           Benefits Upon Death Prior to Retirement. In the event the Participant
dies prior to retirement while still employed by the Bank, the Bank shall pay
to the beneficiary designated by the Participant, the Participant’s surviving
spouse, if any, or to the Personal Representative of the Participant’s estate,
as the case may be (as more fully described in Section 6 hereof), a lump
sum benefit as specified in the Participant’s Split Dollar Agreement, a copy of
which is attached hereto as Exhibit “A,” or as otherwise specified in the
applicable life insurance policy or policies.

(c)           Benefits Upon Termination of Employment by the Bank Without Cause. In
the event the Bank terminates the Participant’s employment with the Bank
without cause (as defined in Section 5.4 of the Plan), the Bank shall pay
to the Participant a certain percentage of the retirement benefits granted by
the Bank in subsection 1(a) of this Agreement. The annual retirement
benefit payable by the Bank to the Participant pursuant to this subsection 1(c) shall
be equal to the amount which corresponds to the percentage of such retirement
benefits which have vested as determined by the following vesting schedule:

 

 

 

	
  

  	
  Full Years o

  Employment with the

  Bank Completed1

  	
   

  	
   

  	
   

  	
  Percent of

  Retirement Benefits

  Vested

  	
   

  	
   

  
	
   

  	
  1

  	
   

  	
   

  	
   

  	
  14

  	
  %

  	
   

  
	
   

  	
  2

  	
   

  	
   

  	
   

  	
  28

  	
  %

  	
   

  
	
   

  	
  3

  	
   

  	
   

  	
   

  	
  42

  	
  %

  	
   

  
	
   

  	
  4

  	
   

  	
   

  	
   

  	
  56

  	
  %

  	
   

  
	
   

  	
  5

  	
   

  	
   

  	
   

  	
  70

  	
  %

  	
   

  
	
   

  	
  6

  	
   

  	
   

  	
   

  	
  84

  	
  %

  	
   

  
	
   

  	
  7

  	
   

  	
   

  	
   

  	
  100

  	
  %

  	
   

  
												

 

Such retirement payments shall be payable by the Bank for ten (10) consecutive
years in one hundred twenty (120) equal monthly installments commencing upon
the first business day of the month following the Participant’s retirement date
(as set forth in subsection 1(a) hereof) and continuing on the first
business day of each month thereafter until the specified number of
installments have been paid in full.

(d)           Benefits Upon Voluntary
Termination of Employment by Participant. In the event the
Participant voluntarily terminates his employment with the Bank, the Bank shall
pay to the Participant a certain percentage of the retirement benefits granted
by the Bank in subsection 1(a) of this Agreement. However, in order to
qualify for any benefits in the event of voluntary termination, the Participant
must refrain from engaging in the business of banking within a twenty-five
(25) mile radius of the Bank’s main office, or any branch office, or of any location
for which the Bank has applied for a branch office. The annual retirement benefit payable by the Bank to
the Participant pursuant to this subsection 1(d) shall be equal to the
amount which corresponds to the percentage of such retirement benefits which
have vested as determined by the following vesting schedule:

	
  

  	
  Full Years o

  Employment with the

  Bank Completed1

  	
   

  	
   

  	
   

  	
  Percent of

  Retirement Benefits

  Vested

  	
   

  	
   

  
	
   

  	
  1

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  
	
   

  	
  2

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  
	
   

  	
  3

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  
	
   

  	
  4

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  
	
   

  	
  5

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  
	
   

  	
  6

  	
   

  	
   

  	
   

  	
  14

  	
  %

  	
   

  
	
   

  	
  7

  	
   

  	
   

  	
   

  	
  100

  	
  %

  	
   

  
												

 

Such retirement payments shall be payable by the Bank for ten (10) consecutive
years in one hundred twenty (120) equal monthly installments commencing upon
the first business day of the month following the Participant’s retirement date
(as set forth in subsection 1(a) hereof) with the Bank and continuing on
the first business day of each month thereafter until the specified number of
installments have been paid in full.

1                      Commencing
on the effective date of this Agreement.

 

 2
 

 

 

(e)           Benefits Upon Termination of Employment Due to Total Disability. In
the event the Participant’s employment with the Bank is terminated due to “total
disability” (as defined in Section 5.4 of the Plan), the Bank shall pay to
the Participant a certain percentage of the retirement benefits granted by the
Bank in subsection 1(a) of this Agreement. The amount of the annual
retirement benefit payable by the Bank to the Participant pursuant to this
subsection 1(e) shall be identical to that specified in the vesting schedule
set forth in subsection 1(c) above concerning termination without cause.

2.             Death Subsequent to Retirement, Disability or Other Termination of
Employment. In the event the Participant dies subsequent to the
retirement date set forth in subsection 1(a), or as contemplated by Section 4,
or subsequent to the date of his termination of employment by the Bank as a
result of any Reorganization of the Bank as described in Section 5 below,
the Bank (or successor entity if applicable) shall immediately cease paying any
retirements benefits under this Agreement, and shall instead pay a lump sum
death benefit to the Participant’s beneficiary as specified in the Participant’s
Split Dollar Agreement or as otherwise specified in the applicable life
insurance policy or policies. In the event the Participant dies subsequent the
termination of his employment by the Bank without cause, voluntary termination
of employment, or termination of employment due to total disability, as
described in subsections 1(c) through (e) hereof, then the amount of
benefits due under the Participant’s Split Dollar Agreement shall be
proportional to the amount of the Participant’s benefits which were vested
pursuant to the Participant’s Salary Continuation Agreement at the time of such
termination. No deductions shall be made from the death benefit for any
payments previously made under this Salary Continuation Agreement.

3.             Termination of Employment For Cause. In the event the Bank
terminates the Participant’s employment with the Bank for “cause” (as defined
in the Plan), the Bank shall have no obligation to pay any benefits under the
Plan, this Agreement or the Participant’s Split Dollar Agreement to the
Participant or any beneficiary thereof.

4.             Early or Late Retirement. The Participant may apply to the
Board of Directors for an early or late retirement. The decision whether to
accept or reject such an application shall be in the sole discretion of the
Board of Directors, and the Board shall have no obligation whatsoever to accept
any such application. In the event the Board of Directors accepts the
Participant’s application for early or late retirement, this Agreement shall be
amended to reflect the revised terms of the Participant’s retirement date and
amount of such retirement benefits. Such revised benefits shall be payable by
the Bank pursuant to this Section 4 only to the extent that the
Participant was continuously employed by the Bank during the period from the
date of execution of this Agreement until the date of the Participant’s revised
retirement date. Retirement benefits under this Section 4 shall be payable
in equal monthly installments for a period of ten (10) consecutive years
commencing on the first business day of the month following the Participant’s
revised retirement date and continuing on the first business day of each month
thereafter for one hundred twenty (120) consecutive months until all of the
specified installments have been paid in full.

5.             Reorganization. For purposes of this Agreement, a “Reorganization”
shall include: (i) a reorganiza­tion, merger, or consolidation of the Bank
with one or more corporations as a result of which the Bank will not be the
surviving entity, (ii) a sale of substantially all the 

 3
 

 

 

assets and property of the Bank to another person, corporation or
entity, or (iii) a “change in control,” i.e., any other single transaction
involving the Bank (such as a tender offer) where there is a change in
ownership of at least twenty-five percent (25%) of the Bank’s outstanding
shares, unless such change in ownership results from (i) a transfer
of shares to another corporation in exchange for at least eighty percent (80%)
control of that corporation, or (ii) the issuance of additional
shares of stock by the Bank in a secondary stock offering, private placement or
similar transaction. In
the event of any Reorganization, the surviving or resulting corporation, or the
transferee of the Bank’s assets or stock, whichever  may apply, shall be bound by and shall have
the benefits of the Plan and this Agreement. The Bank shall take all actions
necessary to ensure that such corporation or transferee is bound by the
provisions of the Plan and this Agreement.

In the event that the Participant’s employment is terminated (or “constructively
terminated”) in connection with or within one (1) year following a
Reorganization, the Participant shall be one hundred percent (100%) vested in
the total benefit as described in subsection 1(a) of this Agreement. For
purposes of this Agreement, “constructive termination” shall include: (i) any
decrease in salary or benefits below those in effect for the Participant
immediately prior to the Reorganization or (ii) any relocation of the
Participant more than twenty-five (25) miles from his principal place of business immediately prior
to the Reorganization.

Notwithstanding the prior paragraph, no payment shall be made to the
Participant under this Salary Continuation Agreement to the extent that such
payment, when aggregated with all other payments considered for purposes of
calculating a parachute payment, would result in an excess parachute payment as
defined under Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”).

6.             Beneficiaries. The Participant may designate one or more
primary or contingent beneficiaries to receive all or any specified portion of
any benefits under the Plan which, at the time of the Participant’s death
remain payable by the Bank to the Participant. The Participant may designate
such beneficiary(ies) on Exhibit A attached hereto. The designation of any
such beneficiaries may be changed or revoked at any time prior to the
Participant’s death by giving the Bank three (3) days’ written notice of
such change or revocation in the manner provided in Section 9 of this
Agreement.

In the event the Participant shall fail to designate a beneficiary
prior to his death or designates a beneficiary and thereafter revokes such
designation without naming another beneficiary, or designates one or more
beneficiaries and all such beneficiaries so designated shall fail to survive
the Participant, any payments of benefits under the Plan and this Agreement
shall be made to the Participant’s surviving spouse, if any, or otherwise to
the Personal Representative of the Participant’s estate.

Unless the Participant has otherwise specified in the beneficiary
designation, the beneficiary or beneficiaries designated by the Participant
shall become fixed as of the Participant’s death so that, if a beneficiary
survives the Participant but dies prior to the receipt of all payments due such
beneficiary, such remaining payments shall be payable to the Personal
Representative of such beneficiary’s estate.

 4
 

 

 

The Participant and his beneficiaries shall not have any assignable
interest in the future payments due under the Plan or this Agreement, nor any
right to anticipate, dispose of, pledge or encumber the same prior to actual
receipt thereof, nor shall the same be subject to attachment, garnishment, or
execution following judgment or other legal process instituted by the
Participant’s creditors or any such beneficiary; provided, however, that the
balance of the Participant’s benefit payments shall at all times be subject to
offset for debts owed by the Participant to the Bank.

7.             Effect on Employment Rights. Nothing in this Agreement shall
be deemed to give the Participant any right to remain in the employ of the Bank
nor to affect the right of the Bank to terminate the employment of the
Participant at any time, with or without cause, which right is hereby reserved.
This Agreement shall not be considered a supplement or amendment to any
contract of employment, either oral or written, between the Participant and the
Bank.

8.             Limitation on the Bank’s Obligation to Fund Agreement. The
Bank’s obligation to make payments hereunder is an unfunded and unsecured
contractual obligation only; and in the event any insurance company or other
obligor issuing a life insurance or annuity policy or other investment
instrument purchased by the Bank to fund this Agreement shall fail or be in
imminent danger thereof, the Bank shall have the right to take immediate action
to recoup so much of its investment as possible, and shall have no obligation
to fund this Agreement or portion thereof to the extent that this Agreement was
intended to be funded by the proceeds of such policy, annuity or other
investment. Neither the Participant nor his beneficiaries shall have any
beneficial or preferred interest by way of trust, escrow, lien or otherwise, in
any specific assets or funds of the Bank, including any insurance or annuity
contracts or the proceeds therefrom, as described below.

No life insurance or annuity policy or other investment instrument
purchased by the Bank in connection with this Agreement shall in any way be
considered to be security for the performance of the Bank’s obligations
hereunder. The Bank shall be the owner and beneficiary of such policy(ies) and
any such policy shall be, and remain, a general unpledged, unrestricted asset
of the Bank.

9.             Notices. All notices or other communications required or permitted
to be given hereunder shall be in writing and shall be deemed to have been duly
given, upon personal delivery (professional courier acceptable) or three (3) business
days following deposit with the United States Postal Service, by registered or
certified mail, postage prepaid, with return receipt requested, to the
following addresses: (a) if to the Bank, to its principal place of
business, and (b) if to the Participant, to his address set forth on the
signature page hereof. Such persons or addresses may change from time to
time by notice given pursuant to the provisions of this Section.

10.           Governing Law. Except to the extent governed by the laws of
the United States, this Agreement shall be governed by and construed in
accordance with the laws of the State of California.

11.           Plan Provisions. This Agreement is subject to all of the
provisions of the Plan, all of the terms and conditions of which have been
incorporated herein by reference, and is 

 5
 

 

 

further subject to all interpretations, amendments, rules and
regulations which may from time to time be promulgated and adopted pursuant to
the Plan. In the event of any conflict between the provisions of this Agreement
and those of the Plan, the provisions of the Plan shall control. No termination
or amendment of the Plan may, without the consent of the Participant, terminate
the Participant’s benefits under this Agreement or materially and adversely
affect the Participant’s rights under this Agreement, except in the event of
certain changes in laws or regulations described in the sentence immediately
following. The Bank reserves the right to terminate or modify a Participant’s
outstanding agreement or benefits in the event of (i) any changes in
federal tax laws which would limit the Bank’s available tax deductions in
connection with the funding this Agreement; or (ii) any changes in
applicable laws, regulations or regulatory policies which would cause this
Agreement to be legally impermissible or would subject the Bank to criticism by
a bank regulatory agency.

12.           Legal and Tax Advice; Review by Counsel. The Bank has not
provided the Participant with advice, warranties or representations regarding
any of the legal or tax effects to the Participant with respect to the grant of
benefits herein. By accepting this grant and by signing this Agreement, the
Participant acknowledges that he is familiar with the terms of the Plan and
this Agreement, that he has been encouraged by the Bank to discuss the Plan and
this Agreement with his own legal and tax advisers, and that he agrees to be
bound by all of the terms and conditions of the Plan and this Agreement. The
Participant represents and warrants to the Bank that he has had this Agreement
reviewed by independent legal counsel of his choice, or if he has not, that he
has had the opportunity to do so, and hereby waives any claim, objection or
defense on the grounds that this Agreement has not been reviewed by legal
counsel of his choice.

 

	
  

  	
   

  	
  CHINO COMMERCIAL BANK, N.A.

  a national banking association

  
	
   

  	
  By

  	
   /s/ Dann H. Bowman

  
	
   

  	
  By

  	
  /s/ Pollyanna Franks

  
	
  PARTICIPANT

  Roger Caberto

  Vice President and Chief Credit Officer

  	
   

  	
   

  
	
   /s/ Robert Caberto 

  	
   

  	
   

  
	
  ROGER CABERTO

  	
   

  	
   

  
	
  Participant’s Address: 

  [Intentionally Omitted]

  	
   

  	
   

  

 

 6
 

 

 

EXHIBIT A

DESIGNATION OF
BENEFICIARIES

Pursuant to the terms of a Salary Continuation Agreement, effective June 1,
2004, between Chino Commercial Bank, N.A. (the “Bank”) and me, I hereby
designate the following beneficiary(ies) to receive any payments which may be
due and payable by the Bank under such Agreement after my death:

	
  Primary Beneficiary:

  	
   

  	
  Aniceta Caberto

  
	
  Contingent
  Beneficiary:

  	
   

  	
  Jason R. Caberto and
  Michael J. Caberto

  

 

The Primary Beneficiary named above shall be the designated beneficiary
referred to in Section 6 of said Agreement if he or she is living at the
time death benefit payments become due and payable by the Bank, and the
Contingent Beneficiary named above shall be the designated beneficiary referred
to in Section 6 of said Agreement only if he or she is living at the time
death benefits become due and payable by the Bank and the Primary Beneficiary
is not then living.

I hereby reserve the right to change said beneficiary(ies) at any time
prior to my death by notice to the Bank in accordance with Section 9 of
the Agreement.

 

	
  Dated:

  	
   

  	
  12/23/04

  	
   

  	
  /s/ Robert Caberto

  
	
   

  	
   

  	
   

  	
   

  	
  ROGER CABERTO

  
	
  Witness:

  	
   

  	
  /s/ Robin Mora

  	
   

  	
   

  

 

 

 7

CHINO COMMERCIAL BANK, NA

Split Dollar Agreement

CHINO
COMMERCIAL BANK, NA

SPLIT DOLLAR AGREEMENT

(ADDENDUM A TO THE
CHINO COMMERCIAL BANK SALARY CONTINUATION AGREEMENT)

THIS AGREEMENT is
adopted this 1st day of June, 2004, by and between CHINO
COMMERCIAL BANK, NA, located in Chino, California (the “Company”), and ROGER
CABERTO (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 sixty-five (65) years of age.

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

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

1.6           “Termination for Cause”  shall be defined as set forth in Article 7.

1.7       “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 of the death
proceeds. 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.

2.2.1          Death During Active
Service. If the Executive dies while in the active service of the
Company, the Company shall pay to the Executive’s beneficiary $231,010 (Two
Hundred Thirty-One Thousand Ten Dollars) upon the death of the Executive.

2.2.2        Death During Payment of a
Benefit under the Salary Continuation Agreement. If the Executive
dies after any benefit payments have commenced under Article 2 of the
Salary Continuation Agreement but before receiving all such payments, the
Company shall cease paying the remaining benefit, if any, and shall then pay to
the Executive’s beneficiary the split dollar death benefit described in Section 2.2.1
of this Agreement.

2.2.3        Death After Termination of
Employment But Before Commencement of Payment under the Salary Continuation
Plan. If the Executive is entitled to a benefit under Article 2
of the Salary Continuation Agreement, but dies prior to the commencement of
said benefit payments, the Company shall pay no benefit under the Salary
Continuation Agreement but shall pay to the Executive’s beneficiary the split
dollar death benefit described in Section 2.2.1 of this Agreement.

2.3   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 a 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’s
creditors.

However, if the
payments being made pursuant to the Salary Continuation Agreement at the time
of the Executive’s death represent only a portion of the total benefits due
thereunder, due to the application of the vesting schedule set forth in Section 1
(c) through (e) thereof, then the Company shall pay to the Executive’s
beneficiary the same proportion of the split dollar death benefit as the vested
proportion of the benefit that was being paid pursuant to the Salary
Continuation Agreement at the time of Executive’s death.

 

 2
 

 

 

However, if the
Executive is entitled to only a portion of the benefits to be paid under the
Executive’s Salary Continuation Agreement pursuant to the vesting schedule set
forth in Section 1 (c) through (e) thereof, then the Company
shall pay to the Executive’s beneficiary the same proportion of the split
dollar death benefit as the vested proportion of the benefit due pursuant to
the Salary Continuation Agreement.

2.2.4    Death After Payment of All
Benefits under the Salary Continuation Agreement. If the Executive
dies after receiving all benefit payments under Article 2 of the Salary
Continuation Agreement, the Company shall still pay to the Executive’s
beneficiary the split dollar death benefit described in Section 2.2.1 of
this Agreement. However, if the payments made pursuant to the Salary
Continuation Agreement represented only a portion of the total benefits due
thereunder, due to the application of the vesting schedule set forth in Section 1
(c) through (e) thereof, then the Company shall pay to the Executive’s
beneficiary the same proportion of the split dollar death benefit as the vested
proportion of the benefit that was paid pursuant to the Salary Continuation
Agreement.

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.

3.3       Imputed
Income. The Company shall impute the economic benefit to the
Executive on an annual basis.

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

 

 3
 

 

 

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,

(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) (29 United States
Code section 1132(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.

 4
 

 

 

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 its
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).

Article 7

Amendments and Termination

7.1       This Agreement may be amended or
terminated only by a written agreement signed by the Company and the Executive.

7.2       In the event this Agreement is terminated
under this Article 7, the Company shall not sell, surrender or transfer
ownership of the Policy without first giving the Executive or the Executive’s
transferee the option to purchase the Policy for a period of sixty (60) days
from written 

 5
 

 

 

notice of such
intention. The purchase price shall be an amount equal to the cash surrender
value of the Policy.

7.3       Notwithstanding any provision of this
Agreement to the contrary, the Company shall not pay any benefit under this
Agreement if the Company terminates the Executive’s employment for:

(a)        Willful breach of duty in
the course of employment or habitual neglect of employment responsibilities and
duties;

(b)       Conviction of any felony or crime
involving moral turpitude, fraud or dishonesty;

(c)       Willful violation of any state or federal
banking or securities law, the rules or regulations of any banking agency,
or any material Company rule, policy or resolution resulting in an adverse
effect on the Company; or

(d)        Disclosure to any third
party by the Executive, without authority or permission, of any secret or
confidential information of the Company.

7.4       Suicide or Misstatement.
The Company shall not pay any benefit under this Agreement if the Executive
commits suicide within two years after the date of this Agreement. In addition,
the Company shall not pay any benefit under this Agreement if the Executive has
made any material misstatement of fact on an employment application or resume
provided to the Company, or on any application for any benefits provided by the
Company to the Executive.

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 and 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 signed by 

 6
 

 

 

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, to 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 the 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 this 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.

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 the management
and operation responsibilities of the plan including the employment of advisors
and the delegation of ministerial duties to qualified individuals.

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

	
  EXECUTIVE:

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
  CHINO COMMERCIAL BANK

  
	
  /s/ Roger Caberto

  	
  By

  	
  /s/
  Pollyanna Franks

  
	
  Roger
  Caberto

  	
   

  	
   

  
	
   

  	
  Title

  	
  Chairman Compensation

  

 

 7
 

 

 

CHINO COMMERCIAL
BANK, NA

Split Dollar Agreement

BENEFICIARY DESIGNATION FORM

 

I designate the
following as beneficiary of benefits under the Agreement payable following my
death:

Primary: Aniceta
Caberto

_____________________________________________________________________________

Contingent: Jason
R. Caberto and Michael J. Caberto

_____________________________________________________________________________

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 delivering a new written
designation to the Plan Administrator. 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.

	
  Name:

  	
   

  	
  Roger Caberto

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
  /s/ Roger Caberto

  	
   

  	
  Date:

  	
   

  	
  12/23/04

  

 

SPOUSAL CONSENT (Required if Spouse
not named beneficiary):

I consent to the beneficiary designation above, and
acknowledge that if I am named beneficiary and our marriage is subsequently
dissolved, the designation will be automatically revoked.

	
  Spouse Name:

  	
   

  	
  Aniceta Caberto

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
  /s/ Aniceta Caberto

  	
   

  	
  Date:

  	
   

  	
  12/23/04

  

 

Received by the
Plan Administrator this ________ day of ___________________, 2004.

By:            _________________________________

Title:         _________________________________

 

 8

 

POLICY
ENDORSEMENT

Contract Owner: CHINO COMMERCIAL BANK, NA

The
undersigned Owner requests that the policy(ies) shown in the attached Schedule Page issued
by Clarica Life Insurance Co.-US (the “Insurer”) provide for the
following beneficiary designation:

1. Upon the death of the Insured, proceeds shall be paid in one
sum to the Owner, its successors or assigns, as Beneficiary, to the extent
claimed by said Owner.

2. Any proceeds at the death of the Insured in excess of the
amount paid under the provisions of paragraph 1 of this Policy Endorsement
shall be paid in one sum in accordance with the written direction of the Owner.
Such direction will be provided to the Insurer at the time of claim. The
Insurer will be protected in relying solely on the Owner to provide the name(s) of
the party(ies) to pay any excess not paid under paragraph 1. If the Owner fails
to provide the name(s) of the party(ies) at the time of claim, then any
proceeds payable under this paragraph shall be paid in one sum to the
Beneficiary.

3. It is hereby provided that (i) any payment made to the
Beneficiary or other party under paragraph 2 of this Policy Endorsement shall
be a full discharge of the Insurer to the extent thereof; (ii) such
discharge shall be binding on all parties claiming any interest under the
Policy; and (iii) the Insurer shall have no responsibility with respect to
the amounts so claimed.

4. It is agreed by the undersigned that this designation shall be
subject in all respects to the contractual terms of the Policy.

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

Signed
at Chino, California, this 29th day
of December, 2004.

OWNER:

CHINO COMMERCIAL BANK, NA

	
  By:

  	
   

  	
  /s/ Dann H. Bowman

  	
   

  	
  By:

  	
   

  	
  /s/ Pollyanna Franks

  
	
  Title:

  	
   

  	
  President and CEO

  	
   

  	
  Title:

  	
   

  	
  Chairman Compensation

  

 

 1
 

 

 

Schedule
Page

Policy(ies) Subject to Policy Endorsement

 

	
  Policy Number

  	
   

  	
  Insured

  
	
   

  	
   

  	
  Roger Caberto

  

 

 2

 

POLICY
ENDORSEMENT

Contract Owner: CHINO COMMERCIAL BANK, NA

The
undersigned Owner requests that the policy(ies) shown in the attached Schedule Page issued
by West Coast Life Insurance Co. (the “Insurer”) provide for the
following beneficiary designation:

1. Upon the death of the Insured, proceeds shall be paid in one
sum to the Owner, its successors or assigns, as Beneficiary, to the extent
claimed by said Owner.

2. Any proceeds at the death of the Insured in excess of the
amount paid under the provisions of paragraph 1 of this Policy Endorsement
shall be paid in one sum in accordance with the written direction of the Owner.
Such direction will be provided to the Insurer at the time of claim. The
Insurer will be protected in relying solely on the Owner to provide the name(s) of
the party(ies) to pay any excess not paid under paragraph 1. If the Owner fails
to provide the name(s) of the party(ies) at the time of claim, then any
proceeds payable under this paragraph shall be paid in one sum to the
Beneficiary.

3. It is hereby provided that (i) any payment made to the
Beneficiary or other party under paragraph 2 of this Policy Endorsement shall
be a full discharge of the Insurer to the extent thereof; (ii) such
discharge shall be binding on all parties claiming any interest under the
Policy; and (iii) the Insurer shall have no responsibility with respect to
the amounts so claimed.

4. It is agreed by the undersigned that this designation shall be
subject in all respects to the contractual terms of the Policy.

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

Signed
at Chino, California, this 29th day
of December, 2004.

OWNER:

CHINO COMMERCIAL BANK, NA

	
  By:

  	
   

  	
  /s/ Dann H. Bowman

  	
   

  	
  By:

  	
   

  	
  /s/ Pollyanna Franks

  
	
  Title:

  	
   

  	
  President and CEO

  	
   

  	
  Title:

  	
   

  	
  Chairman Compensation

  

 

 1
 

 

 

Schedule
Page

Policy(ies) Subject to Policy Endorsement

 

	
  Policy Number

  	
   

  	
  Insured

  
	
   

  	
   

  	
  Roger Caberto

  

 

 2

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