Document:

Exhibit 10.1

 

Exhibit 10.1

HANMI FINANCIAL CORPORATION

2007 EQUITY COMPENSATION PLAN

(Effective May 23, 2007

Amended June 20, 2007)

Hanmi Financial Corporation hereby adopts in its entirety the Hanmi Financial Corporation 2007
Equity Compensation Plan (“Plan”), as of May 23, 2007 (“Plan Adoption Date”). Unless otherwise
defined, terms with initial capital letters are defined in Section 2 below.

SECTION 1

BACKGROUND AND PURPOSE

1.1 Background The Plan permits the grant of Nonqualified Stock Options, Incentive Stock
Options, Stock Appreciation Rights (SARs), Restricted Stock, Performance Shares and Performance
Units.

1.2 Purpose of the Plan The Plan is intended to attract, motivate and retain the following
individuals: (a) employees of the Company or its Affiliates; (b) consultants who provide
significant services to the Company or its Affiliates and (c) directors of the Company or any of
its Affiliates who are employees of neither the Company nor any Affiliate. The Plan is also
designed to encourage stock ownership by such individuals, thereby aligning their interests with
those of the Company’s shareholder.

SECTION 2

DEFINITIONS

     The following words and phrases shall have the following meanings unless a different meaning
is plainly required by the context:

2.1 “1934 Act” means the Securities Exchange Act of 1934, as amended. Reference to a
specific section of the Act shall include such section, any valid rules or regulations promulgated
under such section, and any comparable provisions of any future legislation, rules or regulations
amending, supplementing or superseding any such section, rule or regulation.

2.2 “Administrator” means, collectively the Board, and/or one or more Committees, and/or
one or more executive officers of the Company designated by the Board to administer the Plan or
specific portions thereof; provided, however, that Awards may not be made by executive officers.
Awards to non-employee directors may only be administered by an independent committee of the Board.

2.3 “Affiliate” means any corporation or any other entity (including, but not limited to,
Subsidiaries, partnerships and joint ventures) controlling, controlled by, or under common control
with the Company.

2.4 “Applicable Law” means the legal requirements relating to the administration of
Options, SARs, Restricted Stock, Performance Shares and Performance Units and similar incentive
plans under any applicable laws, including but not limited to federal and state employment, labor,
privacy and securities laws, the Code, and applicable rules and regulations promulgated by the
NASDAQ, New York Stock Exchange, American Stock Exchange or the requirements of any other stock
exchange or quotation system upon which the Shares may then be listed or quoted.

2.5 “Award” means, individually or collectively, a grant under the Plan of Nonqualified
Stock Options, Incentive Stock Options, SARs, Restricted Stock, Performance Shares and/or
Performance Units.

2.6 “Award Agreement” means the written agreement setting forth the terms and provisions
applicable to each Award granted under the Plan, including the Grant Date.

 

 

2.7 “Board” or “Board of Directors” means the Board of Directors of the Company.

2.8 “Change in Control” means the occurrence of any of the following events:

     (a) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or
indirectly, of securities of the Company representing fifty percent (50%) or more of the total
voting power represented by the Company’s then outstanding voting securities;

     (b) The consummation of the sale or disposition by the Company of all or substantially all of
the Company’s assets;

     (c) The consummation of a liquidation or dissolution of the Company;

     (d) A change in the composition of the Board occurring within a two-year period, as a result
of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors”
means directors who either (A) are Directors as of the Plan Effective Date, or (B) are elected, or
nominated for election, to the Board with the affirmative votes of at least a majority of the
Directors at the time of such election or nomination (but will not include an individual whose
election or nomination is in connection with an actual or threatened proxy contest relating to the
election of Directors);

     (e) The consummation of a merger or consolidation of the Company with any other corporation,
other than a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity or its parent) at least fifty
percent (50%) of the total voting power represented by the voting securities of the Company or such
surviving entity or its parent outstanding immediately after such merger or consolidation; or

     (f) Other events specified by the Administrator in the Participant’s Award Agreement.

2.9 “Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific
section of the Code or regulation thereunder shall include such section or regulation, any valid
regulation promulgated under such section, and any comparable provision of any future legislation
or regulation amending, supplementing or superseding such section or regulation.

2.10 “Committee” means any committee appointed by the Board of Directors to administer the
Plan.

2.11 “Company” means Hanmi Financial Corporation, or any successor thereto.

2.12 “Consultant” means any consultant, independent contractor or other person who provides
significant services to the Company or its Affiliates or any employee or affiliate of any of the
foregoing, but who is neither an Employee nor a Director.

2.13 “Continuous Status” as an Employee or Consultant means that a Participant’s employment
or service relationship with the Company or any Affiliate is not interrupted or terminated.
“Continuous Status” shall not be considered interrupted in the following cases: (i) any
leave of absence approved by the Company or (ii) transfers between locations of the Company or
between the Company and any Subsidiary or successor. A leave of absence approved by the Company
shall include sick leave, military leave or any other personal leave approved by an authorized
representative of the Company. For purposes of Incentive Stock Options, no leave of absence may
exceed ninety (90) days, unless reemployment upon expiration of such leave is guaranteed by statute
or contract. If such reemployment is not so guaranteed, then on the one hundred eighty-first
(181st) day of such leave any Incentive Stock Option held by the Participant shall
cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a
Nonqualified Stock Option.

 

 

2.14 “Director” means any individual who is a member of the Board of Directors of the
Company or an Affiliate of the Company.

2.15 “Disability” means a permanent and total disability within the meaning of Section
22(e)(3) of the Code, provided that in the case of Awards other than Incentive Stock Options, the
Administrator in its discretion may determine whether a permanent and total disability exists in
accordance with uniform and non-discriminatory standards adopted by the Administrator from time to
time.

2.16 “Employee” means any individual who is a common-law employee of the Company or of an
Affiliate.

2.17 “Exercise Price” means the price at which a Share may be purchased by a Participant
pursuant to the exercise of an Option, and the price used to determine the number of Shares payable
to a Participant upon the exercise of a SAR.

2.18 “Fair Market Value” means, as of any date, provided the Common Stock is listed on an
established stock exchange or a national market system, including without limitation the Nasdaq
National Market of the National Association of Securities Dealers, Inc. Automated Quotation
(“NASDAQ”) System, the Fair Market Value of a share of Common Stock shall be the closing sales
price for such stock on the Grant Date of the Award. If no sales were reported on the Grant Date
of the Award, the Fair Market Value of a share of Common Stock shall be the closing price for such
stock as quoted on the NASDAQ (or the exchange with the greatest volume of trading in the Common
Stock) on the last market trading day with reported sales prior to the date of determination.

2.19 “Fiscal Year” means a fiscal year of the Company.

2.20 “Grant Date” means the date the Board of Directors approves the Award.

2.21 “Incentive Stock Option” means an Option to purchase Shares, which is designated as an
Incentive Stock Option and is intended to meet the requirements of Section 422 of the Code.

2.22 “Independent Director” means a Nonemployee Director who is (i) a “nonemployee
director” within the meaning of Section 16b-3 of the 1934 Act, (ii) “independent” as determined
under the applicable rules of the NASDAQ, and (iii) an “outside director” under Treasury Regulation
Section 1.162-27(e)(3), as any of these definitions may be modified or supplemented from time to
time.

2.23 “Individual Objectives” means as to a Participant, the objective and measurable goals
set by a “management by objectives” process and approved by the Administrator in its discretion.

2.24 “Misconduct” shall include commission of any act in competition with any activity of
the Company (or any Affiliate) or any act contrary or harmful to the interests of the Company (or
any Affiliate) and shall include, without limitation: (a) conviction of a felony or crime
involving moral turpitude or dishonesty, (b) violation of Company (or any Affiliate) policies, with
or acting against the interests of the Company (or any Affiliate), including employing or
recruiting any present, former or future employee of the Company (or any Affiliate), (c) misuse of
any confidential, secret, privileged or non-public information relating to the Company’s (or any
Affiliate’s) business, or (e) participating in a hostile takeover attempt of the Company or an
Affiliate. The foregoing definition shall not be deemed to be inclusive of all acts or omissions
that the Company (or any Affiliate) may consider as Misconduct for purposes of the Plan.

2.25 “NASDAQ” means The NASDAQ Stock Market, Inc.

2.26 “Nonemployee Director” means a Director who is not employed by the Company or an
Affiliate.

2.27 “Nonqualified Stock Option” means an option to purchase Shares that is not intended to
be an Incentive Stock Option.

 

 

2.28 “Option” means an Incentive Stock Option or a Nonqualified Stock Option.

2.29 “Participant” means an Employee, Consultant or Nonemployee Director who has an
outstanding Award.

2.30 “Performance Goals” means the goal(s) (or combined goal(s)) determined by the
Administrator (in its discretion) to be applicable to a Participant with respect to an Award. As
determined by the Administrator, the Performance Goals applicable to an Award may provide for a
targeted level or levels of achievement, including without limitation goals tied to Individual
Objectives and/or the Company’s (or a business unit’s) return on assets, return on shareholders’
equity, efficiency ratio, earnings per share, net income, or other financial measures determined in
accordance with U.S. generally accepted accounting principles (“GAAP”), with or without adjustments
determined by the Administrator. The foregoing definition shall not be deemed to be inclusive of
all Performance Goals for purposes of this Plan. The Performance Goals may differ from Participant
to Participant and from Award to Award.

2.31 “Performance Shares” mean an Award granted to a Participant pursuant to Section 8 of
the Plan that entitles the Participant to receive a prescribed number of Shares, or the equivalent
value in cash, upon achievement of performance objectives associated with such Award. The Notice
of Grant shall specify whether the Performance Shares will be settled in Shares or cash.

2.32 “Performance Units” mean an Award granted to Participant pursuant to Section 8 of the
Plan that entitles the Participant to a cash payment equal to the value of a prescribed number of
Shares upon achievement of performance objectives associated with such Award.

2.33 “Period of Restriction” means the period during which the transfer of Shares of
Restricted Stock are subject to restrictions that subject the Shares to a substantial risk of
forfeiture. As provided in Section 7, such restrictions may be based on the passage of time, the
achievement of Performance Goals, or the occurrence of other events as determined by the
Administrator, in its discretion.

2.34 “Plan” means this Hanmi Financial Corporation 2007 Equity Incentive Plan, as set forth
in this instrument and as hereafter amended from time to time.

2.35 “Restricted Stock” means an Award granted to a Participant pursuant to Section 7. An
Award of Restricted Stock constitutes a transfer of ownership of Shares to a Participant from the
Company subject to restrictions against transferability, assignment, and hypothecation. Under the
terms of the Award, the restrictions against transferability are removed when the Participant has
met the specified vesting requirement. Vesting can be based on continued employment or service
over a stated service period, or on the attainment of specified Performance Goals. If employment
or service is terminated prior to vesting, the unvested restricted stock reverts back to the
Company.

2.36 “Retirement” means the termination of employment pursuant to the Company’s retirement
policies for an Employee who has attained the age of fifty-five (55) and whose Continuous Status as
an Employee was not interrupted during the previous five (5) years.

2.37 “Rule 16b-3” means a person promulgated under the 1934 Act, and any future regulation
amending, supplementing or superseding such regulation.

2.38 “SEC” means the U.S. Securities Exchanged Commission.

2.39 “Section 16 Person” means a person who, with respect to the Shares, is subject to
Section 16 of the 1934 Act.

2.40 “Shares” means shares of common stock of the Company.

 

 

2.41 “Stock Appreciation Right” or “SAR” means an Award granted to a Participant
pursuant to Section 6. Upon exercise, a SAR gives a Participant a right to receive a payment in
cash, or the equivalent value in Shares, equal to the difference between the Fair Market Value of
the Shares on the exercise date and the Exercise Price. Both the number of SARs and the Exercise
Price are determined on the Grant Date. For example, assume a Participant is granted 100 SARs at
an Exercise Price of $10 and the notice of grant specifies that the SARs will be settled in Shares.
Also assume that the SARs are exercised when the underlying Shares have a Fair Market Value of $40
per Share. Upon exercise of the SAR, the Participant is entitled to receive 50 Shares
[(($20-$10)*100)/$20].

2.42 “Subsidiary” means any corporation in an unbroken chain of corporations beginning with
the Company if each of the corporations other than the last corporation in the unbroken chain then
owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain.

SECTION 3

ADMINISTRATION

3.1 The Administrator. The Administrator shall be appointed by the Board of Directors from
time to time.

3.2 Authority of the Administrator. It shall be the duty of the Administrator to
administer the Plan in accordance with the Plan’s provisions and in accordance with Applicable Law.
The Administrator shall have all powers and discretion necessary or appropriate to administer the
Plan and to control its operation, including, but not limited to, the power to make recommendations
to the Board regarding the following: (a) which Employees, Consultants and Directors shall be
granted Awards; (b) the terms and conditions of the Awards, (c) interpretation of the Plan, (d)
adoption of rules for the administration, interpretation and application of the Plan as are
consistent therewith and (e) interpretation, amendment or revocation of any such rules.

3.3 Delegation by the Administrator. The Administrator, in its discretion and on such
terms and conditions as it may provide, may delegate all or any part of its authority and powers
under the Plan to one or more Directors; provided, however, that the Administrator may not delegate
its authority and powers (a) with respect to Section 16 Persons, or (b) in any way which would
jeopardize the Plan’s qualification under Section 162(m) of the Code or Rule 16b-3.

3.4 Decisions Binding. All determinations and decisions made by the Administrator, the
Board and any delegate of the Administrator pursuant to the provisions of the Plan shall be final,
conclusive and binding on all persons, and shall be given the maximum deference permitted by
Applicable Law.

SECTION 4

SHARES SUBJECT TO THE PLAN

4.1 Number of Shares. Subject to adjustment, as provided in Section 4.3, the total number
of Shares initially available for grant under the Plan shall be 737,508 plus the Shares available
for grant under the Hanmi Financial Corporation Year 2000 Stock Option Plan (not to exceed
2,262,492). Upon stockholder approval of the Plan, no further Shares will be issued under the
Hanmi Financial Corporation Year 2000 Stock Option Plan. Shares granted under the Plan may be
authorized but unissued Shares or reacquired Shares bought on the market or otherwise.

4.2 Lapsed Awards. If any Award made under the Plan expires, or is forfeited or cancelled,
or otherwise exercised without delivery of Shares, such undelivered Shares shall become available
for future Awards under the Plan.

4.3 Adjustments in Awards and Authorized Shares. Except as provided under Section 4.3.1,
subject to any required action by the stockholders of the Company, the number of Shares covered by
each

 

 

outstanding Award, and the per Share exercise price of each such Award, shall be
proportionately adjusted for any increase or decrease in the number of issued shares of common
stock resulting from a stock split, reverse stock split, recapitalization, combination,
reclassification, the payment of a stock dividend on the common stock or any other increase or
decrease in the number of such Shares of common stock effected without receipt of consideration by
the Company; provided, however, that conversion of any convertible securities of the Company shall
not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be
made by the Board, whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issue by the Company of Shares of stock of any class, or
securities convertible into Shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares of common stock subject to an
Option.

     4.3.1 Incentive Stock Options. Except as provided in Sections 4.3.2, any adjustment
to the maximum aggregate number of Shares to be issued through the exercise of Incentive Stock
Options must be approved by shareholders of the Company within 12 months before or after the date a
resolution is adopted by the Board of Directors to adjust the maximum aggregate number of Shares to
be issued through the exercise of Incentive Stock Options.

     4.3.2 Increase to Reflect Outstanding Shares. Any adjustment described in Section 4.3
which merely reflects a change in the outstanding Shares, such as a stock dividend or stock split,
will be effective without shareholder approval.

4.4 Legal Compliance. Shares shall not be issued pursuant to the making or exercise of an
Award unless the exercise of Options and rights and the issuance and delivery of Shares shall
comply with the Securities Act of 1933, as amended, the 1934 Act and other Applicable Law, and
shall be further subject to the approval of counsel for the Company with respect to such
compliance. Any Award made in violation hereof shall be null and void.

4.5 Investment Representations. As a condition to the exercise of an Option or other right,
the Company may require the person exercising such Option or right to represent and warrant at the
time of exercise that the Shares are being acquired only for investment and without any present
intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required.

SECTION 5

STOCK OPTIONS

     The provisions of this Section 5 are applicable to Options granted to Employees, Directors,
Nonemployee Directors and Consultants. Such Participants shall also be eligible to receive other
types of Awards as set forth in the Plan.

5.1 Grant of Options. Subject to the terms and provisions of the Plan, Options may be
granted at any time and from time to time as determined by the Administrator in its discretion.
The Administrator may grant Incentive Stock Options, Nonqualified Stock Options, or a combination
thereof, and the Administrator, in its discretion and subject to Sections 4.1, shall determine the
number of Shares subject to each Option.

5.2 Award Agreement. Each Option shall be evidenced by an Award Agreement that shall
specify the Exercise Price, the expiration date of the Option, the number of Shares to which the
Option pertains, any conditions to exercise the Option, and such other terms and conditions as the
Administrator, in its discretion, shall determine. The Award Agreement shall also specify whether
the Option is intended to be an Incentive Stock Option or a Nonqualified Stock Option.

5.3 Exercise Price. The Administrator shall determine the Exercise Price for each Option
subject to the provisions of this Section 5.3.

 

 

     5.3.1 Nonqualified Stock Options. Unless otherwise specified in the Award Agreement,
in the case of a Nonqualified Stock Option, the per Share exercise price shall not be less than one
hundred percent (100%) of the Fair Market Value of a Share on the Grant Date, as determined by the
Administrator.

     5.3.2 Incentive Stock Options. The grant of Incentive Stock Options shall be subject
to the following limitations:

          (a) The Exercise Price of an Incentive Stock Option shall be not less than one hundred percent
(100%) of the Fair Market Value of a Share on the Grant Date; provided, however, that if on the
Grant Date, the Employee (together with persons whose stock ownership is attributed to the Employee
pursuant to Section 424(d) of the Code) owns stock possessing more than 10% of the total combined
voting power of all classes of stock of the Company or any of its Subsidiaries, the Exercise Price
shall be not less than one hundred and ten percent (110%) of the Fair Market Value of a Share on
the Grant Date;

          (b) Incentive Stock Options may be granted only to persons who are, as of the Grant Date,
Employees of the Company or a Subsidiary, and may not be granted to Nonemployee Directors or
Consultants. In the event the Company fails to obtain shareholder approval of the Plan within
twelve (12) months from the Plan Adoption Date, all Options granted under this Plan designated as
Incentive Stock Options shall become Nonqualified Stock Options and shall be subject to the
applicable provisions of this Section 5.

          (c) To the extent that the aggregate Fair Market Value of the Shares with respect to which
Incentive Stock Options are exercisable for the first time by the Participant during any calendar
year (under all plans of the Company and any parent or Subsidiary) exceeds $100,000, such Options
shall be treated as Nonstatutory Stock Options. For purposes of this Section 5.3.2(c), Incentive
Stock Options shall be taken into account in the order in which they were granted. The Fair Market
Value of the Shares shall be determined as of the time the Option with respect to such Shares is
granted; and

          (d) In the event of a Participant’s change of status from Employee to Consultant or Director,
an Incentive Stock Option held by the Participant shall cease to be treated as an Incentive Stock
Option and shall be treated for tax purposes as a Nonqualified Stock Option three (3) months and
one (1) day following such change of status.

     5.3.3 Substitute Options. Notwithstanding the provisions of Sections 5.3.1 and 5.3.2,
in the event that the Company or an Affiliate consummates a transaction described in Section 424(a)
of the Code (e.g., the acquisition of property or stock from an unrelated corporation), persons who
become Employees, Directors or Consultants on account of such transaction may be granted Options in
substitution for options granted by their former employer. If such substitute Options are granted,
the Administrator, in its discretion and consistent with Section 424(a) of the Code, may determine
that such substitute Options shall have an exercise price of no less than eighty-five percent (85%)
of the Fair Market Value of the Shares on the Grant Date.

5.4 Expiration of Options

     5.4.1 Expiration Dates. Unless otherwise specified in the Award Agreement, but in no
event no later than ten (10) years from the Grant Date, each Option shall terminate no later than
the first to occur of the following events:

          (a) Date in Award Agreement. The date for termination of the Option set forth in the
written Award Agreement;

          (b) Termination of Continuous Status as Employee or Consultant. The last day of the
three (3)-month period following the date the Participant ceases his/her/its Continuous Status as
an

 

 

Employee or Consultant (other than termination for a reason described in subsections (c), (d),
(e), (f) or (g) below);

          (c) Misconduct. In the event a Participant’s Continuous Status as an Employee or
Consultant terminates because the Participant has performed an act of Misconduct as determined by
the Administrator, all unexercised Options held by such Participant shall expire five (5) business
days following written notice from the Company to the Participant; provided, however, that the
Administrator may, in its sole discretion, within thirty (30) days of such termination, reinstate
the Options by giving written notice of such reinstatement to Participant. In the event of such
reinstatement, the Participant may exercise the Option only to such extent, for such time, and upon
such terms and conditions as if the Participant had ceased to be employed by or affiliated with the
Company or a Subsidiary upon the date of such termination for a reason other than Misconduct,
disability or death;

          (d) Disability. In the event that a Participant’s Continuous Status as an Employee or
Consultant terminates as a result of the Participant’s Disability, the Participant may exercise his
or her Option at any time within twelve (12) months from the date of such termination, but only to
the extent that the Participant was entitled to exercise it at the date of such termination (but in
no event later than the expiration of the term of such Option as set forth in the Award Agreement).
If, at the date of termination, the Participant is not entitled to exercise his or her entire
Option, the Shares covered by the unexercisable portion of the Option shall revert to the Plan.
If, after termination, the Participant does not exercise his or her Option within the time
specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to
the Plan;

          (e) Death. In the event of the death of a Participant, the Option may be exercised at
any time within twelve (12) months following the date of death (but in no event later than the
expiration of the term of such Option as set forth in the Award Agreement), by the Participant’s
estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but
only to the extent that the Participant was entitled to exercise the Option at the date of death.
If, at the time of death, the Participant was not entitled to exercise his or her entire Option,
the Shares covered by the unexercisable portion of the Option shall immediately revert to the Plan.
If, after death, the Participant’s estate or a person who acquired the right to exercise the Option
by bequest or inheritance does not exercise the Option within the time specified herein, the Option
shall terminate, and the Shares covered by such Option shall revert to the Plan;

          (f) Retirement. In the event that an Participant’s Continuous Status as an Employee
terminates as a result of the Participant’s Retirement, the Participant may exercise his or her
Option at any time subject to the limitations in the Plan and the Award Agreement, but only to the
extent that the Participant was entitled to exercise the Option at the time of such termination,
unless otherwise expressly provided in a written agreement between the Participant and the Company.
However, any Incentive Stock Options not exercised within three (3) months of the termination of
the Participant’s Continuous Status as an Employee shall be treated for tax purposes as
Nonstatutory Stock Options three (3) months and one (1) day following such Retirement; or

          (g) 10 Years from Grant. Unless otherwise specified above, an Option shall expire no
more than ten (10) years from the Grant Date; provided, however, that if an Incentive Stock Option
is granted to an Employee who, together with persons whose stock ownership is attributed to the
Employee pursuant to Section 424(d) of the Code, owns stock possessing more than 10% of the total
combined voting power of all classes of the stock of the Company or any of its Subsidiaries, such
Incentive Stock Option may not be exercised after the expiration of five (5) years from the Grant
Date.

          (h) Change in Status. In the event a Participant’s status has changed from Consultant
to Employee, or vice versa, a Participant’s Continuous Status as an Employee or Consultant shall
not automatically terminate solely as a result of such change in status.

     5.4.2 Administrator Discretion. Not withstanding the foregoing the Administrator may,
after an Option is granted, extend the maximum term of the Option (subject to limitations
applicable to Incentive Stock Options).

 

 

5.5 Exercisability of Options. Options granted under the Plan shall be exercisable at such
times and be subject to such restrictions and conditions as the Administrator shall determine in
its discretion. After an Option is granted, the Administrator, in its discretion, may accelerate
the exercisability of the Option.

5.6 Exercise and Payment. Options shall be exercised by the Participant’s delivery of a
written notice of exercise to the Secretary of the Company (or its designee), setting forth the
number of Shares with respect to which the Option is to be exercised, accompanied by full payment
for the Shares.

     5.6.1 Form of Consideration. Upon the exercise of any Option, the Exercise Price
shall be payable to the Company in full in cash or its equivalent. The Administrator, in its
discretion, also may permit the same-day exercise and sale of Options and related Shares, or
exercise by tendering previously acquired Shares having an aggregate Fair Market Value at the time
of exercise equal to the total Exercise Price (such previously acquired Shares must have been held
for the requisite period necessary to avoid a charge to the Company’s earnings for financial
reporting purposes, unless otherwise determined by the Administrator), or by any other means which
the Administrator, in its discretion, determines to provide legal consideration for the Shares, and
to be consistent with the purposes of the Plan.

     5.6.2 Delivery of Shares. As soon as practicable after receipt of a written
notification of exercise and full payment for the Shares purchased, the Company shall deliver to
the Participant (or the Participant’s designated broker), Share certificates (which may be in book
entry form) representing such Shares.

SECTION 6

STOCK APPRECIATION RIGHTS

6.1 Grant of SARs. Subject to the terms of the Plan, a SAR may be granted to Employees,
Directors, Nonemployee Directors and Consultants at any time and from time to time as shall be
determined by the Administrator.

     6.1.1 Number of Shares. The Administrator shall have complete discretion to determine
the number of SARs granted to any Participant.

     6.1.2 Exercise Price and Other Terms. The Administrator, subject to the provisions of
the Plan, shall have discretion to determine the terms and conditions of SARs granted under the
Plan, including whether upon exercise the SARs will be settled in Shares or cash. However, the
Exercise Price of a SAR shall be not less than one hundred percent (100%) of the Fair Market Value
of a Share on the Grant Date.

6.2 Exercise of SARs. SARs shall be exercisable on such terms and conditions as the
Administrator, in its discretion, shall determine.

6.3 SAR Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall
specify the Exercise Price, the term of the SAR, the conditions of exercise and such other terms
and conditions as the Administrator shall determine.

6.4 Expiration of SARs. A SAR granted under the Plan shall expire upon the date determined
by the Administrator in its discretion as set forth in the Award Agreement, or otherwise pursuant
to the provisions relating to the expiration of Options as set forth in Sections 5.4.

6.5 Payment of SAR Amount. Upon exercise of a SAR, a Participant shall be entitled to
Shares, or the equivalent value in cash, from the Company in an amount determined by dividing the
Fair Market Value of a Share on the exercise date by the following: (a) the difference between the
Fair Market Value of
a Share on the date of exercise over the SAR Exercise Price, multiplied by (b) the number of Shares
with respect to which the SAR is exercised. If the Administrator designates in the Award Agreement
that the SAR will be settled in cash, upon Participant’s exercise of the SAR the Company shall make
a cash payment to Participant as soon as reasonably practical.

 

 

SECTION 7

RESTRICTED STOCK

7.1 Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the
Administrator, at any time and from time to time, may grant Shares of Restricted Stock to
Employees, Directors, Nonemployee Directors and Consultants in such amounts as the Administrator,
in its discretion, shall determine. The Administrator shall determine the number of Shares to be
granted to each Participant.

7.2 Restricted Stock Agreement. Each Award of Restricted Stock shall be evidenced by an
Award Agreement that shall specify the Period of Restriction, the number of Shares granted, and
such other terms and conditions as the Administrator, in its discretion, shall determine.
Notwithstanding the foregoing, each Restricted Stock Award shall have a minimum Period of
Restriction of one year if the restrictions are performance based and a minimum of three years if
restrictions are based on continued service with the Company. Unless the Administrator determines
otherwise, Shares of Restricted Stock shall be held by the Company as escrow agent until the
restrictions on such Shares have lapsed.

7.3 Transferability. Except as provided in this Section 7, Shares of Restricted Stock may
not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until
expiration of the applicable Period of Restriction.

7.4 Other Restrictions. The Administrator, in its discretion, may impose such other
restrictions on Shares of Restricted Stock as it may deem advisable or appropriate, in accordance
with this Section 7.4, including, without limitation, provisions relating to expiration of
restrictions equivalent to the provisions relating to expiration of Options as set forth in Section
5.4.

     7.4.1 General Restrictions. The Administrator may set restrictions based upon the
achievement of specific Performance Goals (Company-wide, business unit, or individual), or any
other basis determined by the Administrator in its discretion.

     7.4.2 Section 162(m) Performance Restrictions. For purposes of qualifying grants of
Restricted Stock as “performance-based compensation” under Section 162(m) of the Code, the
Administrator, in its discretion, may set restrictions based upon the achievement of Performance
Goals. The Performance Goals shall be set by the Administrator on or before the latest date
permissible to enable the Restricted Stock to qualify as “performance-based compensation” under
Section 162(m) of the Code. In granting Restricted Stock which is intended to qualify under
Section 162(m) of the Code, the Administrator shall follow any procedures determined by it from
time to time to be necessary or appropriate to ensure qualification of the Restricted Stock under
Section 162(m) of the Code (e.g., in determining the Performance Goals).

     7.4.3 Legend on Certificates. The Administrator, in its discretion, may legend the
certificates representing Restricted Stock to give appropriate notice of such restrictions.

7.5 Removal of Restrictions. Except as otherwise provided in this Section 7, Shares of
Restricted Stock covered by each Restricted Stock grant made under the Plan shall be released from
escrow as soon as practicable after expiration of the Period of Restriction. The Administrator may
not accelerate the time at which any restrictions shall lapse or be removed except in the cases of
death, disability or retirement of the Participant or a Change in Control of the Company. After
the restrictions have lapsed, the Participant shall be entitled to have any legend or legends under
Section 7.4.3 removed from his or her Share certificate, and the Shares shall be freely
transferable by the Participant, subject to Applicable Law.

7.6 Voting Rights. During the Period of Restriction, Participants holding Shares of
Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares,
unless the Administrator determines otherwise.

 

 

7.7 Dividends and Other Distributions. During the Period of Restriction, Participants
holding Shares of Restricted Stock shall be entitled to receive all dividends and other
distributions paid with respect to such Shares unless otherwise provided in the Award Agreement.
If any such dividends or distributions are paid in Shares, the Shares shall be subject to the same
restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect
to which they were paid.

7.8 Return of Restricted Stock to Company. On the date set forth in the Award Agreement,
the Restricted Stock for which restrictions have not lapsed shall revert to the Company and again
shall become available for grant under the Plan.

SECTION 8

PERFORMANCE SHARES AND PERFORMANCE UNITS

8.1 Grant of Performance Shares/Units. Subject to the terms and conditions of the Plan,
Performance Shares and Performance Units may be granted to Employees, Directors, Nonemployee
Directors and Consultants at any time and from time to time, as shall be determined by the
Administrator in its discretion.

     8.1.1 Number of Shares or Units. The Administrator will have complete discretion in
determining the number of Performance Shares and Performance Units granted to any Participant,
subject to the limitations in Sections 4.1.

     8.1.2 Value of Performance Shares/Units. Each Performance Share/Unit will have an
value equal to the Fair Market Value of a Share.

8.2 Performance Objectives and Other Terms. The Administrator will set performance
objectives or other vesting provisions, including, without limitation, time-based vesting
provisions, in its discretion which, depending on the extent to which they are met, will determine
the number or value of Performance Shares/Units that will be paid out to Participants. The time
period during which the Performance Goals or other vesting provisions must be met will be called
the “Performance Period.” Each Award shall have a minimum Performance Period of one year if the
performance objectives or other vesting provisions are performance based and a minimum of three
years in the case of vesting provisions that are based on continued service. Each Award of
Performance Shares/Units will be evidenced by an Award Agreement that will specify the Performance
Period, and such other terms and conditions as the Administrator, in its discretion, will
determine. The Administrator may set Performance Goals based upon the achievement of Company-wide
or Individual Objectives or any other basis determined by the Administrator in its discretion.

8.3 Earning of Performance Shares/Units. After the applicable Performance Period has
ended, the holder of Performance Shares/Units will be entitled to receive a payment based on the
number of Performance Shares/Units earned by the Participant over the Performance Period, to be
determined as a function of the extent to which the corresponding performance objectives or other
vesting provisions have been achieved. After the grant of a Performance Share/Unit, the
Administrator, in its discretion, may reduce or waive any performance objectives or other vesting
provisions for such Performance Share/Unit.

8.4 Form and Timing of Payment of Performance Shares/Units. Payment with respect to earned
Performance Shares/Units shall be made as soon as reasonably practical after the expiration of the
Performance Period.

8.5 Cancellation of Performance Shares Units. On the date set forth in the Award
Agreement, all unearned or unvested Performance Shares/Units will be forfeited to the Company, and
again will be available for grant under the Plan.

 

 

SECTION 9

MISCELLANEOUS

9.1 Change In Control. Unless otherwise provided in the Award Agreement, in the event of a
Change in Control, unless an Award is assumed or substituted by the successor corporation, then (i)
such Awards shall become fully exercisable as of the date of the Change in Control, whether or not
then exercisable and (ii) all restrictions and conditions on any Award then outstanding shall lapse
as of the date of the Change in Control.

9.2 Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of
the Company, the Administrator shall notify each Participant as soon as practicable prior to the
effective date of such proposed transaction. Notwithstanding anything to the contrary contained in
this Plan or in any Award Agreement, the Participant shall have the right to exercise his or her
Award until ten (10) days prior to such dissolution or transaction as to all of the Shares covered
thereby, including Shares as to which the Award would not otherwise be exercisable.

9.3 No Effect on Employment or Service. Nothing in the Plan shall interfere with or limit
in any way the right of the Company or an Affiliate to terminate any Participant’s employment or
service at any time, with or without cause. Unless otherwise provided by written contract,
employment or service with the Company or any of its Affiliates is on an at-will basis only.
Additionally, the Plan shall not confer upon any Nonemployee Director any right with respect to
continuation of service as a Director or nomination to serve as a Director, nor shall it interfere
in any way with any rights which such Nonemployee Director or the Company may have to terminate his
or her directorship at any time.

9.4 Participation. No Employee or Consultant shall have the right to be selected to
receive an Award under this Plan, or, having been so selected, to be selected to receive a future
Award.

9.5 Limitations on Awards. No Participant shall be granted an Award in any Fiscal Year for
where the underlying Shares of such Award represents more than one percent of the company’s total
number of outstanding Shares, provided, however, that such limitation shall be adjusted
proportionately in connection with any change in the Company’s capitalization as described in
Section 4.3.

9.6 Successors. All obligations of the Company under the Plan, with respect to Awards
granted hereunder, shall be binding on any successor to the Company, whether the existence of such
successor is the result of a direct or indirect purchase, merger, consolidation or, otherwise, sale
or disposition of all or substantially all of the business or assets of the Company.

9.7 Beneficiary Designations. If permitted by the Administrator, a Participant under the
Plan may name a beneficiary or beneficiaries to whom any vested but unpaid Award shall be paid in
the event of the Participant’s death. Each such designation shall revoke all prior designations by
the Participant and shall be effective only if given in a form and manner acceptable to the
Administrator. In the absence of any such designation, any vested benefits remaining unpaid at the
Participant’s death shall be paid to the Participant’s estate and, subject to the terms of the Plan
and of the applicable Award Agreement, any unexercised vested Award may be exercised by the
administrator or executor of the Participant’s estate.

9.8 Limited Transferability of Awards. No Award granted under the Plan may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by
the laws of descent and distribution. All rights with respect to an Award granted to a Participant
shall be available during his or her lifetime only to the Participant. Notwithstanding the
foregoing, the Participant may, in a manner specified by the Administrator, (a) transfer a
Nonqualified Stock Option to a Participant’s spouse, former spouse or dependent pursuant to a
court-approved domestic relations order which relates to the provision of child support, alimony
payments or marital property rights and (b) transfer a Nonqualified Stock Option by bona fide gift
and not for any consideration to (i) a member or members of the Participant’s immediate family,
(ii) a trust established for the exclusive benefit of the Participant and/or member(s) of the
Participant’s immediate family, (iii) a partnership, limited liability company of other entity
whose only partners or members are the Participant and/or member(s) of the Participant’s immediate
family or (iv) a foundation in

 

 

which the Participant an/or member(s) of the Participant’s immediate family control the management
of the foundation’s assets.

9.9 Restrictions on Share Transferability. The Administrator may impose such restrictions
on any Shares acquired pursuant to the exercise of an Award as it may deem advisable, including,
but not limited to, restrictions related to applicable federal securities laws, the requirements of
any national securities exchange or system upon which Shares are then listed or traded or any blue
sky or state securities laws.

9.10 Buyout Provisions. The Administrator may at any time offer to buy out for a payment in
cash or Shares, an Award previously granted based on such terms and conditions as the Administrator
shall establish and communicate to the Participant at the time that such offer is made.

9.11 Transfers Upon a Change in Control. In the sole and absolute discretion of the
Administrator, an Award Agreement may provide that in the event of certain Change in Control
events, which may include any or all of the Change in Control events described in Section 2.8,
Shares obtained pursuant to this Plan shall be subject to certain rights and obligations, which
include but are not limited to the following: (i) the obligation to vote all such Shares in favor
of such Change in Control transaction, whether by vote at a meeting of the Company’s shareholders
or by written consent of such shareholders; (ii) the obligation to sell or exchange all such Shares
and all rights to acquire Shares, under this Plan pursuant to the terms and conditions of such
Change in Control transaction; (iii) the right to transfer less than all but not all of such Shares
pursuant to the terms and conditions of such Change in Control transaction, and (iv) the obligation
to execute all documents and take any other action reasonably requested by the Company to
facilitate the consummation of such Change in Control transaction.

9.12 Performance-Based Awards. Each agreement for the grant of Performance Shares or other
performance-based awards shall specify the number of Shares or Units underlying the Award, the
Performance Period and the Performance Objectives (each as defined below), and each agreement for
the grant of any other award that the Program Administrators determine to make subject to a
Performance Objective similarly shall specify the applicable number of shares of Common Stock, the
period for measuring performance and the Performance Objective. As used herein, “Performance
Objectives” means performance objectives specified in the agreement for a Performance Share, or for
any other award which the Program Administrators determine to make subject to Performance
Objectives, upon which the vesting or settlement of such award is conditioned and “Performance
Period” means the period of time specified in an agreement over which Performance Shares, or
another award which the Program Administrators determine to make subject to a Performance
Objective, are to be earned. Each agreement for a performance-based award shall specify in respect
of a Performance Objective the minimum level of performance below which no payment will be made,
shall describe the method of determining the amount of any payment to be made if performance is at
or above the minimum acceptable level, but falls short of full achievement of the Performance
Objective, and shall specify the maximum percentage payout under the agreement. Such maximum
percentage in no event shall exceed two hundred percent (200%) of the Shares underlying the Award.

     9.12.1 Performance Metrics. The Program Administrators shall determine and specify,
in their discretion, the Performance Objectives in the agreement for a Performance Share or for any
other performance-based award, which Performance Objective shall consist of: (i) one or more
business criteria, including (except as limited under Section 9.12.2 below for awards to Covered
Employees (as defined below)) financial, service level and individual performance criteria; and
(ii) a targeted level or levels of performance with respect to such criteria. Performance
Objectives may differ between Plan Participants and between types of awards from year to year.

     9.12.2 Performance Objectives. The Performance Objectives for Performance Shares and
any other performance-based award granted to a Covered Employee, if deemed appropriate by the
Program Administrators, shall be objective and shall otherwise meet the requirements of Section
162(m)(4)(C) of the Code, and shall be based upon one or more of the following performance-based
business criteria, either on a business unit or Company-specific basis or in comparison with peer
group performance: net sales; gross sales; return on net assets; return on assets; return on
equity; return on capital; return on revenues; asset

 

 

turnover; economic value added; total stockholder return; net income; pre-tax income;
operating profit margin; net income margin; sales margin; market share; inventory turnover; days
sales outstanding; sales growth; capacity utilization; increase in customer base; cash flow; book
value; earnings per share; stock price earnings ratio; earnings before interest, taxes,
depreciation and amortization expenses (“EBITDA”); earnings before interest and taxes (“EBIT”); or
EBITDA, EBIT or earnings before taxes and unusual or nonrecurring items as measured either against
the annual budget or as a ratio to revenue. Achievement of any such Performance Objective shall be
measured over a period of years not to exceed ten (10) as specified by the Program Administrators
in the agreement for the performance-based award. No business criterion other than those named
above in this Section 9.12.2 may be used in establishing the Performance Objective for an award to
a Covered Employee under this Section 9.12. For each such award relating to a Covered Employee,
the Program Administrators shall establish the targeted level or levels of performance for each
such business criterion. The Program Administrators may, in their discretion, reduce the amount of
a payout otherwise to be made in connection with an award under this Section 9.12, but may not
exercise discretion to increase such amount, and the Program Administrators may consider other
performance criteria in exercising such discretion. All determinations by the Program
Administrators as to the achievement of Performance Objectives under this Section 9.12 shall be
made in writing. The Program Administrators may not delegate any responsibility under this Section
9.12. As used herein, “Covered Employee” shall mean, with respect to any grant of an award, an
executive of the Company or any subsidiary who is a member of the executive compensation group
under the Company’s compensation practices (not necessarily an executive officer) whom the Program
Administrators deem may be or become a covered employee as defined in Section 162(m)(3) of the Code
for any year that such award may result in remuneration over $1 million which would not be
deductible under Section 162(m) of the Code but for the provisions of the Program and any other
“qualified performance-based compensation” plan (as defined under Section 162(m) of the Code) of
the Company; provided, however, that the Program Administrators may determine that a Plan
Participant has ceased to be a Covered Employee prior to the settlement of any award.

     9.12.3 Mandatory Deferral of Income. The Program Administrators, in their sole
discretion, may require that one or more award agreements contain provisions which provide that, in
the event Section 162(m) of the Code, or any successor provision relating to excessive employee
remuneration, would operate to disallow a deduction by the Company with respect to all or part of
any award under the Program, a Plan Participant’s receipt of the benefit relating to such award
that would not be deductible by the Company shall be deferred until the next succeeding year or
years in which the Plan Participant’s remuneration does not exceed the limit set forth in such
provisions of the Code; provided, however, that such deferral does not violate Code Section 409A.

SECTION 10

AMENDMENT, SUSPENSION, AND TERMINATION

10.1 Amendment, Suspension, or Termination. Except as provided in Section 10.2, the Board,
in its sole discretion, may amend, suspend or terminate the Plan, or any part thereof, at any time
and for any reason. The amendment, suspension or termination of the Plan shall not, without the
consent of the Participant, alter or impair any rights or obligations under any Award theretofore
granted to such Participant. No Award may be granted during any period of suspension or after
termination of the Plan.

10.2 No Amendment without Shareholder Approval. The Company shall obtain shareholder
approval of any material Plan amendment (including but not limited to any provision to reduce the
exercise or purchase price of any outstanding Options or other Awards after the Grant Date (other
than for adjustments made pursuant Section 4.3), or to cancel and re-grant Options or other rights
at a lower exercise price), to the extent necessary or desirable to comply with the rules of the
NASDAQ, the Exchange Act, Section 422 of the Code, or other Applicable Law.

10.3 Plan Effective Date and Duration of Awards . The Plan shall be effective as of the
Plan Adoption Date subject to the shareholders of the Company approving the Plan by the required
vote), subject to Sections 10.1 and 10.2 (regarding the Board’s right to amend or terminate the
Plan), and shall remain in

 

 

effect thereafter. However, without further shareholder approval, no Award may be granted under
the Plan more than ten (10) years after the Plan Adoption Date.

SECTION 11

TAX WITHHOLDING

11.1 Withholding Requirements. Prior to the delivery of any Shares or cash pursuant to an
Award (or exercise thereof), the Company shall have the power and the right to deduct or withhold,
or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state,
and local taxes (including the Participant’s FICA obligation) required to be withheld with respect
to such Award (or exercise thereof).

11.2 Withholding Arrangements. The Administrator, in its discretion and pursuant to such
procedures as it may specify from time to time, may permit a Participant to satisfy such tax
withholding obligation, in whole or in part by (a) electing to have the Company withhold otherwise
deliverable Shares or (b) delivering to the Company already-owned Shares having a Fair Market Value
equal to the minimum amount required to be withheld. The amount of the withholding requirement
shall be deemed to include any amount which the Administrator agrees may be withheld at the time
the election is made, not to exceed the amount determined by using the statutory minimum federal,
state or local income tax rates applicable to the Participant with respect to the Award on the date
that the amount of tax to be withheld is to be determined. The Fair Market Value of the Shares to
be withheld or delivered shall be determined as of the date taxes are required to be withheld.

SECTION 12

LEGAL CONSTRUCTION

12.1 Liability of Company. The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be
necessary to the lawful grant or any Award or the issuance and sale of any Shares hereunder, shall
relieve the Company, its officers, Directors and Employees of any liability in respect of the
failure to grant such Award or to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

12.2 Grants Exceeding Allotted Shares. If the Shares covered by an Award exceed, as of the
date of grant, the number of Shares, which may be issued under the Plan without additional
shareholder approval, such Award shall be void with respect to such excess Shares, unless
shareholder approval of an amendment sufficiently increasing the number of Shares subject to the
Plan is timely obtained.

12.3 Gender and Number. Except where otherwise indicated by the context, any masculine
term used herein also shall include the feminine; the plural shall include the singular and the
singular shall include the plural.

12.4 Severability. In the event any provision of the Plan shall be held illegal or invalid
for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and
the Plan shall be construed and enforced as if the illegal or invalid provision had not been
included.

12.5 Requirements of Law. The granting of Awards and the issuance of Shares under the Plan
shall be subject to all applicable laws, rules, and regulations, and to such approvals by any
governmental agencies or national securities exchanges as may be required.

12.6 Governing Law. The Plan and all Award Agreements shall be construed in accordance
with and governed by the laws of the State of California

12.7 Captions. Captions are provided herein for convenience only, and shall not serve as a
basis for interpretation or construction of the Plan.

 

 

SECTION 13

EXECUTION

     IN WITNESS WHEREOF, the Company, by its duly authorized officer, has executed this Plan on the
date indicated below.

	 	 	 	 	 	 	 
	 

	 	 	 	HANMI FINANCIAL CORPORATION
	 	 
	 
	 	 	 	 	 	 
	Dated: March 21, 2007

	 	By:
	 	/s/ Sung Won Sohn	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Sung Won Sohn, Ph.D.	 	 
	 

	 	 	 	President and Chief Executive Officerexv4w1

 

CERTIFICATE OF DETERMINATION

OF

7.50% SERIES D NONCUMULATIVE PREFERRED STOCK

OF

VINEYARD NATIONAL BANCORP

 

Pursuant to Section 401 of the

California Corporation Code

 

     Norman A. Morales and Donald H. Pelgrim certify that:

     1. They are the President and Secretary, respectively of Vineyard National Bancorp, a
California corporation (the “Corporation”).

     2. The authorized number of shares of Preferred Stock of the Corporation is 10,000,000, of
which 10,000 shares designated as the Corporation’s Floating Rate Series C Noncumulative Redeemable
Preferred Stock have been issued and are outstanding. The authorized number of shares of 7.50%
Series D Noncumulative Preferred Stock is 2,300,000, none of which has been issued.

     3. Pursuant to the authority given by the Articles of Incorporation of the Corporation, as
amended (the “Articles of Incorporation”), the Board of Directors of the Corporation has duly
adopted the following recitals and resolutions:

     “WHEREAS, the Articles of Incorporation of Vineyard National Bancorp (the “Corporation”)
authorizes a class of Preferred Stock comprising of 10,000,000 shares issuable from time to time in
one or more series; and

     WHEREAS, the Board of Directors is authorized to fix or alter the rights, preferences,
privileges, and restrictions granted to or imposed upon any wholly unissued series of Preferred
Stock including but not limited to the dividend rights, dividend rates, conversion rights, voting
rights, and the liquidation preferences, and the number of shares constituting any such series and
the designation thereof, or any of them and it is the desire of the Board of Directors, pursuant to
its authority as aforesaid, to fix the rights, preferences, restrictions and other matters relating
to a new class of Preferred Stock and the number of shares constituting such series; and

     NOW THEREFORE, BE IT RESOLVED, that pursuant to the authority expressly granted to and vested
in the Board of Directors by the Articles Incorporation, a series of preferred stock, without par
value, of the Corporation be, and it hereby is, created, and that the designation and amount
thereof and the powers, designations, preferences and relative, participating, optional and other
special rights of the shares of such series, and the qualifications, limitations or restrictions
thereof are as follows:

     1. Designation and Amount. There shall be created from the 10,000,000 shares of preferred
stock, without par value, of the Corporation authorized to be issued pursuant to the Articles of
Incorporation, a series of preferred stock, designated as the “7.50% Series D Noncumulative
Preferred Stock” (the “Series D Preferred Stock”), and the number of shares of

 

 

such series shall be 2,300,000. Such number of shares may be decreased by resolution of the
Board of Directors; provided, however, that no such decrease shall reduce the number of authorized
shares of the Series D Preferred Stock to a number less than the number of shares of the Series D
Preferred Stock then issued and outstanding plus the number of shares reserved for issuance upon
the exercise of outstanding options, rights or warrants, if any, to purchase shares of Series D
Preferred Stock, or upon the conversion of any outstanding securities issued by the Corporation
that are convertible into shares of Series D Preferred Stock.

     2. Definitions. As used herein, in addition to those terms otherwise defined herein, the
following terms shall have the following meanings:

          a. “Board of Directors” shall mean the Board of Directors of the Corporation or, with respect
to any action to be taken by the Board of Directors, any committee of the Board of Directors duly
authorized to take such action.

          b. “Business Day” shall mean any day other than a Saturday, Sunday or other day on which
commercial banks in the cities of New York or Los Angeles are authorized or required by law or
executive order to close.

          c. “Common Stock” shall mean the common stock, no par value, of the Corporation, or any other
class of stock resulting from successive changes or reclassifications of such common stock
consisting solely of changes in par value, or from no par value to par value, or as a result of a
subdivision, combination, or merger, consolidation or similar transaction in which the Corporation
is a constituent corporation.

          d. “Dividend Payment Date” shall mean the 15th day of March, June, September and December of
each year, commencing September 15, 2007, or, if any such day is not a Business Day, the next
succeeding Business Day.

          e. “Federal Reserve” shall mean the Board of Governors of the Federal Reserve System.

          f. “Holder” shall mean a holder of record of an outstanding share or shares of the Series D
Preferred Stock.

          g. “Issue Date” shall mean the original date of issuance of shares of the Series D Preferred
Stock.

          h. “Junior Stock” shall mean the Common Stock and each other class of capital stock or series
of preferred stock of the Corporation established by the Board of Directors after the Issue Date,
the terms of which do not expressly provide that such class or series ranks senior to or on parity
with the Series D Preferred Stock as to dividend rights or rights upon the liquidation, winding-up
or dissolution of the Corporation; provided, however, that this Certificate of Determination does
not amend or alter the existing rights of holders of the Common Stock.

          i. “Liquidation Parity Stock” shall mean Parity Stock the terms of which expressly provide
that it will rank on parity with the Series D Preferred Stock as to rights upon the liquidation,
winding-up or dissolution of the Corporation.

 - 2 - 

 

          j. “Liquidation Preference” shall mean, with respect to each share of the Series D Preferred
Stock, $10.00, subject to equitable adjustment from time to time pursuant to Section 10(c), plus an
amount equal to all dividends declared and unpaid to the date of such liquidation, without
interest, if any.

          k. “Officer” shall mean the Chief Executive Officer, the President, any Vice President, the
Treasurer, the Secretary or any Assistant Secretary of the Corporation.

          l. “Officers’ Certificate” shall mean a certificate signed by two duly authorized Officers.

          m. “Parity Stock” shall mean the Series C Preferred Stock as well as any class of capital
stock or series of preferred stock established by the Board of Directors after the Issue Date, the
terms of which expressly provide that such class or series will rank on parity with the Series D
Preferred Stock as to dividend rights or rights upon the liquidation, winding-up or dissolution of
the Corporation.

          n. “Person” shall mean any individual, corporation, general partnership, limited partnership,
limited liability partnership, joint venture, association, joint-stock corporation, trust, limited
liability corporation, unincorporated organization or government or any agency or political
subdivision thereof.

          o. “Record Date” shall mean, with respect to a Dividend Payment Date, the 15th calendar day
prior thereto, or such other date designated by the Board of Directors with respect to a Dividend
Period.

          p. “Senior Stock” shall mean each class of capital stock or series of preferred stock
established by the Board of Directors after the Issue Date, the terms of which expressly provide
that such class or series will rank senior to the Series D Preferred Stock as to dividend rights or
rights upon the liquidation, winding-up or dissolution of the Corporation.

          q. “Series C Preferred Stock” shall mean the 10,000 shares of preferred stock of the
Corporation designated as the Floating Rate Series C Noncumulative Redeemable Preferred Stock, all
of which have been issued as of the date of this Certificate of Determination.

          r. “Transfer Agent” shall mean U.S. Stock Transfer Corporation, the Corporation’s duly
appointed transfer agent, registrar, redemption, and dividend disbursing agent for the Series D
Preferred Stock, or any successor duly appointed by the Corporation.

          s. “Voting Stock” shall mean, with respect to any Person, securities of any class or classes
of Capital Stock of such Person entitling the holders thereof (whether at all times or only so long
as no senior class of stock has voting power by reason of contingency) to vote in the election of
members of the Board of Directors or other governing body of such Person. For purposes of this
definition, “Capital Stock” shall mean, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated) of corporate stock or partnership
interests and any and all warrants, options and rights with respect thereto (whether or not
currently exercisable), including each class of common stock and preferred stock of such Person.

 - 3 - 

 

          t. “Voting Parity Stock” shall mean Parity Stock the terms of which expressly provide that it
will rank on parity with the Series D Preferred Stock as to the right to vote for the election of
directors in the event of non-payment of dividends; provided, however, that this Certificate of
Determination does not amend or alter the existing rights of holders of the Series C Preferred
Stock as set forth in the Certificate of Determination of the Series C Preferred Stock.

     3. Ranking. The Series D Preferred Stock will, with respect to dividend rights and rights upon
the liquidation, winding-up or dissolution of the Corporation, rank (a) senior to all Junior Stock,
(b) on parity with all Parity Stock and (c) junior to all Senior Stock.

     4. Liquidation Rights.

          a. In the event of any liquidation, winding-up or dissolution of the Corporation, whether
voluntary or involuntary, each Holder shall, subject to the prior rights of any holders of Senior
Stock, be entitled to receive and to be paid out of the assets of the Corporation available for
distribution to its stockholders the Liquidation Preference for each outstanding share of the
Series D Preferred Stock held by such Holder plus an amount per share equal to any dividends
declared and unpaid from the last preceding Dividend Payment Date, without interest to the date
fixed for such liquidation, dissolution or winding up, in preference to the holders of, and before
any payment or distribution is made on (or any setting apart for any payment or distribution), any
Junior Stock, including, without limitation, on any Common Stock. After the payment to the Holders
of the Liquidation Preference for each outstanding share of the Series D Preferred Stock, the
Holders shall not be entitled to any further participation in distributions of, and shall have no
right or claim to, any of the remaining assets of the Corporation in respect of the shares of the
Series D Preferred Stock.

          b. Neither the sale, conveyance, exchange or transfer (for cash, shares of stock, other
securities or other consideration) of all or substantially all the assets or business of the
Corporation (other than in connection with the voluntary or involuntary liquidation, winding-up or
dissolution of the Corporation) nor the merger or consolidation of the Corporation into or with any
other Person shall be deemed to be a liquidation, winding-up or dissolution, voluntary or
involuntary, for the purposes of this Section 4; provided, however, that if, in connection with a
cash merger or other cash transaction, the cash receivable in exchange for or upon the conversion
of each share of the Series D Preferred Stock would be less than the Liquidation Preference, then
such cash merger or transaction shall be treated as a liquidation, winding-up or dissolution of the
Corporation, with the rights as provided in Section 4(a).

          c. In the event the assets of the Corporation legally available for distribution to the
Holders upon any liquidation, winding-up or dissolution of the Corporation, whether voluntary or
involuntary, shall be insufficient to pay in full all amounts to which such Holders are entitled
pursuant to Section 4(a), no such distribution shall be made on account of any shares of
Liquidation Parity Stock upon such liquidation, winding-up or dissolution unless proportionate
distributable amounts shall be paid with equal priority on account of the Series D Preferred Stock,
ratably, in proportion to the full distributable amounts for which Holders and holders of any
Liquidation Parity Stock are entitled upon such liquidation, winding-up or dissolution.

 - 4 - 

 

          d. All distributions made with respect to the Series D Preferred Stock in connection with any
liquidation, winding-up or dissolution shall be made pro rata to the Holders.

          e. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the
Corporation, the Corporation shall, within ten (10) days after the date the Board of Directors
approves such action, or at least twenty (20) days prior to any shareholder’s meeting called to
approve such action, if applicable, or within twenty (20) days after the commencement of any
involuntary proceeding, whichever is earlier, give each holder of this Series D Preferred Stock
initial written notice of the proposed action. Such initial written notice shall describe the
material terms and conditions of such proposed action.

     5. Voting; Amendments.

          a. The shares of the Series D Preferred Stock shall have no voting rights except as set forth
in Sections 5(b), 5(c) and 8(a) or as otherwise required by California law from time to time. In
exercising the voting rights set forth in Sections 5(b), 5(c) and 8(a), each Holder shall be
entitled to one vote per $1,000.00 of liquidation preference of Series D Preferred Stock (or one
vote for every 100 shares of Series D Preferred Stock owned).

          b. So long as any shares of the Series D Preferred Stock remain outstanding, unless a greater
percentage shall then be required by law, the Corporation shall not, without the affirmative vote
or written consent of the Holders (voting or consenting separately as one class) of at least a
majority of the outstanding shares of the Series D Preferred Stock: (i) amend, alter or repeal or
otherwise change any provision of the Articles of Incorporation or the Certificate of Determination
authorizing and creating the Series D Preferred Stock, if the amendment, authorization or repeal
would materially and adversely affect the rights, preferences, powers or privileges of the Series D
Preferred Stock; or (ii) create, authorize, issue or increase the authorized or issued amount of
any class or series of any of the Corporation’s equity securities, or any warrants, options or
other rights convertible or exchangeable into any class or series of any of the Corporation’s
equity securities, which would constitute Senior Stock. Notwithstanding the foregoing, except as
otherwise required by law, the Corporation may, without the consent of any Holder, authorize,
increase the authorized amount of, or issue shares of Parity Stock (provided that dividend rights
are noncumulative) and Junior Stock, and in taking such actions, the Corporation shall not be
deemed to have materially adversely affected the existing terms of the Series D Preferred Stock.

          Notwithstanding anything to the contrary contained herein, no vote or consent of the Holders
shall be required pursuant to Sections 5(b) or 8(a) if, at or prior to the time when the act with
respect to which such vote would otherwise be required, all outstanding shares of Series D
Preferred Stock shall have been redeemed or called for redemption upon proper notice and sufficient
funds shall have been set aside by the Corporation for the benefit of the Holders to effect such
redemption.

          c. So long as any shares of the Series D Preferred Stock remain outstanding:

               (i) If, for any six or more Dividend Periods, the Corporation fails to pay in cash the full
amount of the stated dividend payable to the Holders with respect to such Dividend Period pursuant
to Section 6(a), then the Holders, voting together with the holders of Voting Parity Stock as one
class, will be entitled at the next regular or special meeting of

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stockholders of the Corporation to elect two additional directors of the Corporation (the
“Preferred Stock Directors” and each a “Preferred Stock Director”); provided, that it shall be a
qualification for election for any Preferred Stock Director that the election of such director
shall not cause the Corporation to be in violation of (y) any corporate governance requirement of
The Nasdaq Stock Market (or any national securities exchange, interdealer quotation system of a
registered national securities association or other trading facility on which securities of the
Corporation may then be listed or traded), including any requirement that listed or traded
companies must have a majority (or other specified percentage) of independent directors or (z) any
requirement or policy of any bank regulatory authority having jurisdiction over the Corporation or
its banking subsidiary; provided further, that it shall be a qualification for election for any
Preferred Stock Director that the nominees for such position provide in writing to the Corporation,
the Holders and the holders of all classes and series of Voting Parity Stock that are similarly
entitled to vote for the election of the Preferred Stock Directors, the information with respect to
such nominee that would be required to be provided in a proxy statement prepared in accordance with
Regulation 14A under the Securities Exchange Act of 1934 and the rules and regulations thereunder;
and provided further, that the Board of Directors shall at no time include more than two Preferred
Stock Directors (including, for purposes of this limitation, all directors that holders of Voting
Parity Stock are entitled to elect pursuant to like voting rights). Effective immediately prior to
the election of such additional directors, the number of directors that compose the Board of
Directors shall be increased by two directors.

          (ii) In accordance with and subject to the provisions of the California Corporations Code, the
Holders, along with the holders of Voting Parity Stock, may exercise the voting rights set forth in
Section 5(c)(i), or to remove and replace directors that have previously been appointed, at any
special meeting held for such purpose, which may be called in accordance with the Corporation’s
by-laws or as hereinafter provided, or at the next annual meeting of stockholders held for the
purpose of electing directors, or by written consent without a meeting of the holders of record of
a majority of the outstanding shares of Series D Preferred Stock and Voting Parity Stock voting
separately as one class, and thereafter, at each such annual meeting until such time as the
Corporation has paid or declared and set aside for payment full dividends on the Series D Preferred
Stock for four consecutive Dividend Periods, or the outstanding shares of the Series D Preferred
Stock have been redeemed, or the liquidation, winding-up or dissolution of the Corporation,
whichever is earliest, at which time such voting rights and the term of any director elected
pursuant to this Section 5(c) shall automatically terminate.

          (iii) Unless action has been taken by written consents, at any time when the voting rights set
forth in Section 5(c)(i) shall have vested in the Holders, an Officer of the Corporation may, and
upon the written request of the holders of at least ten percent (10%) of the outstanding shares of
Series D Preferred Stock or the Voting Parity Stock (addressed to the Secretary at the principal
office of the Corporation) shall, give notice of a special meeting of the holders of shares of
Series D Preferred Stock and the holders of any class or series of Voting Parity Stock, for the
election of the two directors to be elected by them as herein provided, such notice to be made by
notice similar to that provided in the Corporation’s by-laws for a special meeting of the
stockholders or as required by law. If any such special meeting so required to be called shall not
be called by such Officer within thirty-five (35) days after receipt of any such request, then any
holder of shares of Series D Preferred Stock or the Voting Parity Stock may (at the Corporation’s
expense) call such meeting, upon notice as herein provided, and for that purpose shall have access
to the stock books of the Corporation. Notwithstanding the provisions

 - 6 - 

 

of this Section 5(c)(iii), no such special meeting shall be called during a period within the
90 days immediately preceding the date fixed for the next annual meeting of stockholders in which
such case, the election of directors pursuant to Section 5(c) shall be held at such annual meeting
of stockholders.

          (iv) In accordance with and subject to the provisions of the California Corporations Code, at
any meeting held for the purpose of electing or removing and replacing directors as provided in
this Section 5(c), the presence in person or by proxy of the holders of at least one-third of the
total number of outstanding shares of the Series D Preferred Stock and any Voting Parity Stock
shall be required and shall be sufficient to constitute a quorum. In accordance with and subject
to California law, a vote by a plurality of the outstanding shares of the Series D Preferred Stock
and Voting Parity Stock shall be sufficient to elect directors and a majority of such outstanding
shares shall be required to remove and replace directors.

          (v) Any director elected pursuant to the voting rights set forth in this Section 5(c) shall
hold office until the next annual meeting of stockholders (or his or her earlier death, resignation
or removal), unless such term has previously automatically terminated pursuant to Section 5(c)(ii),
and any vacancy in respect of any such director shall be filled only in accordance with the
procedures set forth in this Section 5(c), in accordance with and subject to the provisions of the
California Corporations Code. Any director elected pursuant to this Section 5(c) may be removed by
the Holders and the holders of Voting Parity Stock without cause at any time and replaced by a
director as provided in this Section 5(c). Any vacancy caused by the death or resignation of a
director who shall have been elected in accordance with this Section 5(c) may be filled by a vote
of holders of a plurality of the shares of the Series D Preferred Stock and Voting Party Stock,
present and voting as a class, in person or by proxy, at a meeting called for such purpose, or by
written consent without a meeting of the holders of record of a majority of the outstanding shares
of Series D Preferred Stock and Voting Party Stock, voting as a class. Unless such vacancy shall
have been filled by written consent as aforesaid, such meeting shall be called by the Secretary of
the Corporation at the earliest practicable date after such death or resignation, and in any event
within thirty-five (35) days after receipt of a written request signed by the holders of record of
at least ten percent (10%) of the outstanding shares of the Series D Preferred Stock and Voting
Party Stock, voting as a class. Notwithstanding the provisions of this paragraph, no such special
meeting shall be held during the 90-day period preceding the date fixed for the annual meeting of
stockholders.

     6. Dividends.

          a. Subject to the rights of any holders of Senior Stock, each Holder will be entitled to
receive, when, as and if declared by the Board of Directors, out of assets of the Corporation
legally available therefor, noncumulative dividends on each share of the Series D Preferred Stock
at a rate per annum equal to 7.50% of the Liquidation
Preference, or $0.75 per share annually (or $0.1875 per share in a full quarterly dividend period), payable quarterly in arrears on each Dividend
Payment Date, to the Holders at the close of business on the Record Date immediately preceding the
relevant Dividend Payment Date.

          b. Dividends on the outstanding shares of the Series D Preferred Stock will be payable from
the most recent Dividend Payment Date or, in the case of the dividend payable on September 15,
2007, from the Issue Date (each such period, a “Dividend Period”). Dividends

 - 7 - 

 

payable on the Series D Preferred Stock with respect to any period other than a full Dividend
Period shall be computed on the basis of a 360-day year consisting of twelve 30-day months. If a
Dividend Payment Date is not a Business Day, payment of dividends shall be made on the next
succeeding Business Day.

          c. In the event that the Board of Directors declares a dividend with respect to a Dividend
Period in an amount less than the full amount payable to the Holders with respect to such Dividend
Period pursuant to Sections 6(a) and 6(b) (such lesser amount, a “Partial Dividend”), such Partial
Dividend shall be distributed to the Holders on a pro rata basis with respect to the outstanding
shares of the Series D Preferred Stock.

          d. The Corporation will not declare, pay or set apart any sum for the payment of any dividend
or other distribution in respect of any Parity Stock or Junior Stock, unless the Board of Directors
has declared, and the Corporation has not failed to pay, a dividend in the full amount payable to
the Holders pursuant to Sections 6(a) and 6(b) with respect to the Dividend Period in which such
payment of a dividend or other distribution in respect of any Parity Stock or Junior Stock would
occur. When dividends are not so paid in full (or a sum sufficient for such full payment is not
so set apart) upon the Series D Preferred Stock and any other Parity Stock, dividends upon shares
of Series D Preferred Stock and dividends on such other Parity Stock payable during such calendar
quarter shall be declared and set apart pro rata so that the amount of such dividends so payable
per share on the Series D Preferred Stock and such other Parity Stock shall in all cases bear to
each other the same ratio that full dividends for the then-current calendar quarter on the shares
of Series D Preferred Stock (which shall include any accumulation in respect of unpaid dividends
for prior Dividend Periods) and full dividends, including required or permitted accumulations, if
any, on shares of such other Parity Stock, bear to each other.

          e. If full dividends on the Series D Preferred Stock have not been declared and paid or set
apart for payment for all prior Dividend Periods and for the Dividend Payment Date falling in the
then-current Dividend Period, the following restrictions shall be applicable:

               (i) no dividend or distribution may be declared, set aside or paid on any Junior Stock other
than in shares of Junior Stock;

               (ii) the Corporation may not repurchase, redeem or otherwise acquire (including by payment to
or made available for a sinking fund for the redemption of) any shares of its Junior Stock (except
by conversion into or exchange for Junior Stock or by the tendering or exchange of Junior Stock in
payment for the exercise of options under the Corporation’s stock option plans then in effect); and

               (iii) except by conversion into or exchange for Junior Stock, the Corporation may not,
directly or indirectly, repurchase, redeem or otherwise acquire and no monies may be paid to or
made for a sinking fund for the redemption of any shares of Junior Stock or Parity Stock otherwise
than pursuant to pro rata offers to purchase or a concurrent redemption of all, or a pro rata
portion, of the outstanding shares of Series D Preferred Stock and such other Parity Stock.

          f. Except as otherwise specified herein, the shares of Series D Preferred Stock shall not be
entitled to any dividends in excess of the full noncumulative dividends

 - 8 - 

 

declared thereon. In addition, no interest, or sum of money in lieu of interest, shall be
payable in respect of any dividend on the Series D Preferred Stock that is not paid on the
applicable Dividend Payment Date.

     7. Redemption.

          a. The
Series D Preferred Stock may not be redeemed by the Corporation prior to June 25,
2012. At any time on or after June 25, 2012 (the “Redemption Date”), the Corporation shall have
the right, at its option, but subject to any applicable approvals of the Board of Governors of the
Federal Reserve System, to cause all or a portion of the outstanding shares of the Series D
Preferred Stock to be redeemed, subject to the legal availability of funds therefore, at a price in
cash equal to the Liquidation Preference thereof plus an amount in cash equal to any dividends
declared and unpaid from the last preceding Dividend Payment Date, without interest (the
“Redemption Price”). If a portion of the outstanding shares of Series D Preferred Stock are to be
redeemed, such shares will be selected on a pro rata basis, or by lot, or in any other manner as
the Board of Directors may determine.

          b. Unless
the Corporation defaults in the payment of the Redemption Price, dividends on the
Series D Preferred Stock will cease to be payable on and after the Redemption Date and all other
rights of the Holders will terminate on the Redemption Date except for the right to receive the
Redemption Price, without interest.

          c. The
Company will furnish written notice of the redemption by issuing a press release for
publication on a newswire service, if required by and in accordance with the federal securities
laws or the rules of any stock exchange on which the Series D Preferred Stock or the Common Stock
is then listed or traded, and in any case by first class mail to each Holder not less than 30 nor
more than 60 days in advance of the Redemption Date (the “Redemption Notice”). In addition to any
information required by applicable law or regulation, the press release, if any, and Redemption
Notice shall state, as appropriate:

               (i) the Redemption Date;

               (ii) the total number of shares of the Series D Preferred Stock to be redeemed;

               (iii) that each outstanding share of the Series D Preferred Stock will be redeemed for cash in
an amount equal to the Redemption Price;

               (iv) that dividends on the Series D Preferred Stock to be mandatorily redeemed will cease to
be payable on the Redemption Date, unless the Corporation defaults in the payment of the Redemption
Price; and

               (v) that if any shares of the Series D Preferred Stock held by any Holder are represented by
one or more physical certificates, such Holder must surrender to the Company or the Transfer Agent,
in the manner and at the place or places designated, such physical certificate or certificates
representing the shares of the Series D Preferred Stock to be redeemed.

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          d. The redemption of shares of the Series D Preferred Stock not represented by physical
certificates will be effected through the facilities of the Depositary as described in Section
9(b). Each Holder of one or more physical certificates representing shares of the Series D
Preferred Stock shall surrender such physical certificate or certificates to the Corporation or the
Transfer Agent (properly endorsed or assigned for transfer, if the Corporation shall so require and
the Redemption Notice shall so state), in the manner and at the place or places designated in the
Redemption Notice, and the full Redemption Price for such shares shall be payable in cash on the
Redemption Date to the Holder, and each surrender physical certificate shall be canceled and
retired.

     8. Consolidation, Merger and Sale of Assets.

          a. So long as any shares of the Series D Preferred Stock are outstanding, in the event of any
consolidation, merger (other than a merger for the primary purpose of effecting a change in the
Corporation’s state of incorporation that does not result in any amendment, alteration, repeal or
other material and adverse change in the rights, preferences, privileges or restrictions of the
Series D Preferred Stock), sale or lease of all or substantially all of the assets of the
Corporation, reclassification, reorganization (other than any reorganization in which the
Corporation shall be the surviving or acquiring corporation if the rights, preferences, privileges
and restrictions granted to or imposed upon the Series D Preferred Stock remain unchanged unless
any amendment is made to the Corporation’s Articles of Incorporation which would otherwise require
such approval), exchange or liquidation, the Holders, shall be entitled to vote separately as a
class with all other preferred stock of the Corporation entitled to vote thereon with the shares of
Series D Preferred Stock on the subject matter to be approved under this section; provided,
however, that no vote or approval of the Series D Preferred Stock shall be required in connection
with a consolidation, merger, sale or lease of all or substantially all of the Corporation’s assets
or similar transaction to the extent (i) such shares of Series D Preferred Stock remain outstanding
or, in the case of any such merger or consolidation with respect to which the Corporation is not
the surviving or resulting entity, are converted into or exchanged for preference securities of the
surviving or resulting entity or its ultimate parent, and (ii) such shares of Series D Preferred
Stock remaining outstanding or such preference securities, as the case may be, have such rights,
preferences, privileges and voting powers, taken as a whole, as are not materially less favorable
to the holders thereof than the rights, preferences, privileges and voting powers of the Series D
Preferred Stock, taken as a whole. To the extent the shares of Series D Preferred Stock are
entitled to vote under this Section 8(a), approval of such Holders together with the holders of all
Parity Stock entitled to vote thereon with the shares of Series D Preferred Stock shall be deemed
to have been obtained upon receiving the affirmative vote of a majority of the outstanding shares
of preferred stock entitled to vote thereon as a class.

          b. Upon any consolidation by the Corporation with, or merger by the Corporation into, any
other person or any conveyance, transfer or lease of all or substantially all the assets of the
Corporation as described in Section 8(a), the successor resulting from such consolidation or into
which the Corporation is merged or the transferee or lessee to which such conveyance, transfer or
lease is made, will succeed to, and be substituted for, and may exercise every right and power of,
the Corporation under the shares of the Series D Preferred Stock, and thereafter, except in the
case of a lease, the predecessor (if still in existence) will be released from its obligations and
covenants with respect to the shares of the Series D Preferred Stock.

 - 10 - 

 

          c. At any meeting of the holders of the Series D Preferred Stock, the presence in person or by
proxy of the holders of one-third of the total number of shares of the Series D Preferred Stock and
any Parity Stock entitled to vote thereat shall be required to constitute a quorum; in the absence
of a quorum, a majority of the holders present in person or by proxy shall have power to adjourn
the meeting from time to time without notice other than an announcement at the meeting, until a
quorum shall be present.

     9. Certificates.

          a. The Series D Preferred Stock certificate shall be substantially in the form of Exhibit A,
which is hereby incorporated in, and the form and terms thereof expressly made a part of, this
Certificate of Determination. The Series D Preferred Stock certificate may have notations, legends
or endorsements required by law, stock exchange rule, agreements to which the Corporation is
subject, if any, or usage (provided that any such notation, legend or endorsement is in a form
acceptable to the Corporation).

          b. The Series D Preferred Stock shall initially be issued only in the form of one or more
fully registered global security certificates (“Global Security Certificates”) with the global
securities legend set forth in Exhibit A hereto, registered in the name of Cede & Co., the nominee
of The Depository Trust Corporation, which will act as securities depositary (the “Depositary”) for
the Series D Preferred Stock. The Global Security Certificates will be deposited with the
Depositary or its custodian. As long as the Depositary or its nominee is the registered owner of
the Global Security Certificates, the Depositary or that nominee will be considered the sole owner
and holder of the Global Security Certificates and all of the shares of the Series D Preferred
Stock represented by those Global Security Certificates for all purposes under the Series D
Preferred Stock. Except if the Depositary has notified the Corporation that it is unwilling or
unable to continue as Depositary for the Global Security Certificates, has ceased to be qualified
to act or there is a continuing default by the Corporation in respect of its obligations under the
Series D Preferred Stock, this Certificate of Determination or any other principal agreement or
instrument executed in connection with the offering of the Series D Preferred Stock, owners of
beneficial interests in Global Security Certificates will not be entitled to have the Global
Security Certificates or shares of the Series D Preferred Stock represented by those certificates
registered in their names, will not receive or be entitled to receive physical certificates
representing shares of the Series D Preferred Stock in exchange and will not be considered to be
owners or holders of the Global Security Certificates or any of the shares of the Series D
Preferred Stock represented by the Global Security Certificates for any purpose under the Series D
Preferred Stock. All payments on shares of the Series D Preferred Stock represented by the Global
Security Certificates and all related transfers and deliveries of Common Stock will be made to the
Depositary or its nominee as their holder.

          c. Except with respect to shares of Series D Preferred Stock that may be represented by
physical certificates issued by the Corporation from time to time, procedures for redemption of the
shares of Series D Preferred Stock in accordance with the applicable provisions of this Certificate
of Determination will be governed by arrangements among the Depositary, its participants and
Persons that may hold beneficial interests through its participants designed to permit the
settlement without the physical movement of certificates. Payments, transfers, deliveries,
exchanges and other matters relating to beneficial interests in Global

 - 11 - 

 

Security Certificates may be subject to various policies and procedures adopted by the
Depositary from time to time.

          d. If the Corporation issues any physical certificate representing shares of the Series D
Preferred Stock from time to time and any such Series D Preferred Stock certificate shall be
mutilated, lost, stolen or destroyed, the Corporation shall, at the expense of the Holder, issue,
in exchange and in substitution for and upon cancellation of the mutilated Series D Preferred Stock
certificate, or in lieu of and substitution for the Series D Preferred Stock certificate lost,
stolen or destroyed, a new Series D Preferred Stock certificate of like tenor and representing an
equivalent amount of shares of the Series D Preferred Stock, but only upon receipt of evidence of
such loss, theft or destruction of such Series D Preferred Stock certificate and indemnity, if
requested, satisfactory to the Corporation and the Transfer Agent.

     10. Other Provisions.

          a. With respect to any notice to a Holder required to be provided hereunder, such notice shall
be mailed to the registered address of such Holder, and neither failure to mail such notice, nor
any defect therein or in the mailing thereof, to any particular Holder shall affect the sufficiency
of the notice or the validity of the proceedings referred to in such notice with respect to the
other Holders or affect the legality or validity of any redemption, distribution, rights, warrant,
reclassification, consolidation, merger, conveyance, transfer, dissolution, liquidation, winding-up
or other action, or the vote upon any action with respect to which the Holders are entitled to
vote, provided that a quorum was present either in person or by proxy and each of the persons
entitled to vote, who were not present in person or by proxy, provides a waiver of notice or
consent to the holding of the meeting or an approval of the minutes thereof in writing. All such
waivers, consents and approvals shall be filed with the corporate records or made a part of the
minutes of such meeting. All notice periods referred to herein shall commence on the date of the
mailing of the applicable notice. Any notice which was mailed in the manner herein provided shall
be conclusively presumed to have been duly given whether or not the Holder receives the notice.

          b. The shares of the Series D Preferred Stock shall be issuable and redeemable only in whole
shares.

          c. The Liquidation Preference and the annual dividend rate set forth in Section 6(a) shall be
proportionately increased or decreased by the Board of Directors whenever there shall occur a stock
split, combination, reclassification or other similar event involving shares of the Series D
Preferred Stock. Upon any such adjustment, the Corporation shall promptly deliver to the Transfer
Agent and each Holder an Officers’ Certificate attaching and certifying the resolution of the Board
of Directors, describing in reasonable detail the event requiring the adjustment and the method of
calculation thereof and specifying the increased or decreased Liquidation Preference or annual
dividend rate, in effect following such adjustment.

          d. Shares of the Series D Preferred Stock issued and reacquired shall be retired and canceled
promptly after reacquisition thereof and, upon compliance with the applicable requirements of
California law, have the status of authorized but unissued shares of preferred stock of the
Corporation undesignated as to series and may with any and all other authorized but unissued shares
of preferred stock of the Corporation be designated or

 - 12 - 

 

redesignated and issued or reissued, as the case may be, as part of any series of preferred
stock of the Corporation.

          e. All issued shares of Series D Preferred Stock shall be deemed outstanding except (i) from
any redemption date as set forth in the Notice of Redemption, all shares of Series D Preferred
Stock that have been called for redemption on that redemption date; and (ii) from the date of
registration of transfer, all shares of Series D Preferred Stock held of record by the Corporation
or any subsidiary of the Corporation.

          f. In case, at any time while any of the shares of the Series D Preferred Stock are
outstanding:

               (i) The Corporation shall declare a cash dividend (or any other distribution other than in
shares of Junior Stock) on its Common Stock or any Junior Stock; or

               (ii) There is any consolidation or merger to which the Corporation is a party or the sale or
transfer of all or substantially all of the assets of the Corporation; or

               (iii) There is the voluntary or involuntary dissolution, liquidation or winding up of the
Corporation;

then the Corporation shall cause to be mailed to the Transfer Agent for shares of the Series D
Preferred Stock and the Transfer Agent shall cause to be mailed to the holders of record of the
outstanding shares of the Series D Preferred Stock at their respective addresses as they appear on
the books of the Corporation, at least ten (10) days before the date hereinafter specified (or the
earlier of the dates herein specified, in the event that more than one date is specified), a notice
stating (x) the date on which a record is to be taken for the purpose of such dividend or
distribution, or, if a record is not to be taken, the date as of which the holders of shares of
Common Stock of record to be entitled to such dividend or distribution are to be determined, or (y)
the date on which any such consolidation, merger, sale, transfer, dissolution, liquidation or
winding up is expected to become effective, and the date as of which it is expected that holders of
shares of Common Stock of record shall be entitled to exchange their shares for the applicable
consideration, deliverable upon such consolidation, merger, sale, transfer, dissolution,
liquidation or winding up.

          g. The headings of the various sections and subsections of this Certificate of Determination
are for convenience of reference only and shall not affect the interpretation of any of the
provisions of this Certificate of Determination.

          h. Whenever possible, each provision of this Certificate of Determination shall be interpreted
in a manner as to be effective and valid under applicable law and public policy. If any provision
set forth herein is held to be invalid, unlawful or incapable of being enforced by reason of any
rule of law or public policy, such provision shall be ineffective only to the extent of such
prohibition or invalidity, without invalidating or otherwise adversely affecting the remaining
provisions of this Certificate of Determination. No provision herein set forth shall be deemed
dependent upon any other provision unless so expressed herein. If a court of competent jurisdiction
should determine that a provision of this Certificate of Determination would be valid or
enforceable if a period of time were extended or shortened, then such court

 - 13 - 

 

may make such change as shall be necessary to render the provision in question effective and
valid under applicable law.

          i. The Holders are not entitled to any conversion, preemptive or subscription rights in
respect of any securities of the Corporation, or any warrants, rights or options issued or granted
with respect thereto, regardless of how such securities, or such warrants, rights or options, may
be designated, issued or granted.

          j. Except as may otherwise be required by law, the shares of the Series D Preferred Stock
shall not have any powers, designations, preferences and relative, participating, optional or other
special rights, other than those specifically set forth in this Certificate of Determination or the
Articles of Incorporation.

(Signature page follows)

 - 14 - 

 

     We further declare under penalty of perjury under the laws of the State of California that the
matters set forth in this Certificate of Determination are true and correct of our own knowledge.

Dated:
June 20, 2007

	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ NORMAN A. MORALES 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Norman A. Morales, President and
	 	 
	 

	 	 	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ DONALD H. PELGRIM	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Donald H. Pelgrim, Secretary	 	 

 - 15 - 

 

EXHIBIT A

FORM OF

7.50% SERIES D NONCUMULATIVE PREFERRED STOCK

FACE OF SECURITY

     [Unless this certificate is presented by an authorized representative of The Depository Trust
Corporation, a New York corporation (“DTC”), to the Corporation or its agent for registration of
transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co.
or in such other name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC),
ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
inasmuch as the registered owner hereof, Cede & Co., has an interest herein.]1

Certificate Number: [     ]

Number of Shares of 7.50% Series D Noncumulative Preferred Stock: [     ]

CUSIP No.:
927426 403

7.50% Series D Noncumulative Preferred Stock

of

Vineyard National Bancorp

     Vineyard National Bancorp, a California corporation (the “Corporation”), hereby certifies that
[ ____ ] (the
“Holder”) is the registered owner of [
____ ] fully paid and non-assessable shares
of preferred stock of the Corporation designated as the 7.50% Series D Noncumulative Preferred
Stock, without par value, liquidation preference $10.00 per share (the “Series D Preferred Stock”).
The shares of the Series D Preferred Stock are transferable on the books and records of the
Transfer Agent, in person or by a duly authorized attorney, upon surrender of this certificate duly
endorsed and in proper form for transfer. The powers, designations, preferences and relative,
participating, optional and other special rights of the shares of the Series D Preferred Stock
represented hereby are issued and shall in all respects be subject to the provisions of the
Certificate of Determination of 7.50% Series D Noncumulative Preferred Stock of the Corporation
dated June 20, as the same may be amended from time to time in accordance with its terms (the
“Certificate of Determination”). Capitalized terms used herein but not defined shall have the
respective meanings given them in the Certificate of Determination. The Corporation will provide a
copy of the Certificate of Determination to a Holder without charge upon written request to the
Corporation at its principal place of business.

     Reference is hereby made to select provisions of the Series D Preferred Stock set forth on the
reverse hereof, and to the Certificate of Determination, which select provisions and the

 

			
	1	 	Subject to removal if not a global
security certificate.

A - 1  

 

Certificate of Determination shall for all purposes have the same effect as if set forth in
this certificate.

     Upon receipt of this certificate, the Holder is bound by the Certificate of Determination and
is entitled to the benefits thereunder. Unless the Transfer Agent’s valid countersignature appears
hereon, the shares of the Series D Preferred Stock evidenced hereby shall not be entitled to any
benefit under the Certificate of Determination or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, the Corporation has executed this Series D Preferred Stock certificate as
of the date set forth below.

	 	 	 	 	 	 	 
	 	 	VINEYARD NATIONAL BANCORP
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Norman A. Morales	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Donald H. Pelgrim	 	 
	 

	 	Title:
	 	Secretary	 	 

COUNTERSIGNED AND REGISTERED

U.S. STOCK TRANSFER CORPORATION, as Transfer Agent,

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory
	 	 
	 
	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 	 	 

A - 2  

 

REVERSE OF SECURITY

     Dividends on each share of Series D Preferred Stock shall be payable when, as and if declared
by the Board of Directors of the Corporation from funds legally available therefor at a rate per
annum set forth in the face hereof or as provided in the Certificate of Determination. Dividends
may be paid only in cash.

     The shares of the Series D Preferred Stock shall be redeemable as provided in the Certificate
of Determination.

     The Corporation shall furnish to any holder upon request and without charge, a statement of
the powers, designations, preferences and relative, participating, optional and other special
rights of each class of the Corporation’s stock or series thereof and the qualifications,
limitations or restrictions of such preferences and/or rights. Such request should be directed to
Shareholder Relations, Vineyard National Bancorp, 1260 Corona Pointe Court, Corona, California
92879, e-mail: shareholderinfo@vineyardbank.com.

A - 3  

 

ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned assigns and transfers the shares of Series D Preferred
Stock evidenced hereby to:

 

 

 

 

 

 

 

(Insert assignee’s social security or tax identification number)

 

 

(Insert address and zip code of assignee)

 

 

 

 

 

and irrevocably appoints:

 

 

 

 

 

 

 

 

agent to transfer the shares of Series D Preferred Stock evidenced hereby on the books of the
Transfer Agent. The agent may substitute another to act for him or her.

Date:                                        

Signature:                                        

(Sign exactly as your name appears on the other side of this
Series D Preferred Stock certificate)

Signature Guarantee:2                                         

 

			
	2	 	Signature must be guaranteed by an
“eligible guarantor institution” (i.e., a bank, stockbroker,
savings and loan association or credit union) meeting the requirements of the
Transfer Agent, which requirements include membership or participation in the
Securities Transfer Agents Medallion Program (“STAMP”) or such
other “signature guarantee program” as may be determined by the
Transfer Agent in addition to, or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as amended.

A - 4

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