Document:

Shaw 10.91

Exhibit 10.91
AMENDED
EXECUTIVE SALARY CONTINUATION AGREEMENT
This Amended Executive Salary Continuation Agreement (the “Agreement”) is made effective  
January 1, 2012 (the “Effective Date”), and is entered into by and between Central Valley Community Bank (the “Bank”) and Lydia Shaw (the “Executive”), each a “Party” and together the “Parties.”

RECITALS

		
	A.
	The Executive is a valued Executive of the Bank, and currently serves as the Bank’s Senior Vice President of Consumer and Retail Banking.

		
	B.
	The Bank’s Board of Directors (the “Board”) has determined that the Executive’s services to the Bank are valuable.  The Bank and the Executive desire to enter into this Agreement under which the Bank has agreed to make certain payments to the Executive at retirement.

		
	C.
	The Parties intend that this Agreement shall constitute an unfunded arrangement maintained primarily to provide supplemental retirement benefits for the Executive under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  The parties further intend that this Agreement shall constitute a nonqualified deferred compensation arrangement under the Internal Revenue Code (“Code”).  The Executive is fully advised of the Bank’s financial status and has had substantial input in the design of and benefits provided under this Agreement.

		
	D.
	The parties originally entered into the Executive Salary Continuation Agreement, effective January 2, 2008.  The prior agreement was amended effective March 1, 2008.  This Amended Executive Salary Continuation Agreement amends and supersedes the prior agreement and incorporates all prior amendments.

AGREEMENT

In consideration of the mutual promises, covenants, and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 

I.EMPLOYMENT
The Bank agrees to employ the Executive in such capacity as the Bank may from time to time determine. The Executive will continue in the employ of the Bank in such capacity and with such duties and responsibilities as may be assigned to her, and with such compensation as may be determined from time to time by the Board. At all times, unless modified in writing, the Executive's 

employment shall be at-will.  Subject to the terms of this Agreement, either the Bank or the Executive may terminate the employment relationship at any time, for any reason or for no reason. 
II.    FRINGE BENEFITS
The salary continuation benefits provided by this Agreement are granted by the Bank as a fringe benefit to the Executive and are not part of any salary reduction plan or an arrangement deferring a bonus or a salary increase. The Executive has no option to take any current payment or bonus in lieu of salary continuation benefits.
III.    RETIREMENT BENEFIT AND EARLY RETIREMENT BENEFIT
For purposes of this section, “Retirement” and “Retire” mean that the Executive remains in the continuous employ of the Bank from the Effective Date and then retires from active employment (and her Employment Terminates) with the Bank, after attaining age sixty (60).
A.    Retirement Benefit.
If the Executive Retires on or after December 31, 2020, the Bank shall pay the Executive an annual retirement benefit equal to Sixty Thousand Dollars and No/100 ($60,000.00), in equal monthly installments (1/12 of the annual benefit), for a period of one hundred and eighty (180) months, commencing with the first day of the month following the date of the Executive’s Retirement.  Beginning with the thirteenth month that benefits are paid, and continuing thereafter until paid in full, the annual benefit shall be increased each year by three percent (3%) from the previous year’s benefit to account for cost of living increases.  In the event of the Executive’s death prior to the date all payments have been made, Section IV of this Agreement shall control. 
B.    Early Retirement Benefit.
If the Executive Retires on or after March 29, 2016 and prior to December 31, 2020, the Bank shall pay the Executive an annual early retirement benefit, based on the month of retirement, equal to:

	
														
	Retirement
Month
	Annual
Amount
	 
	Retirement
Month
	Annual
Amount
	 
	Retirement
Month
	Annual
Amount

	 
	 
	 
	September 2017
	$
	40,500
	

	 
	May 2019
	$
	50,500
	

	March 2016
	$
	31,500
	

	 
	October 2017
	$
	41,000
	

	 
	June 2019
	$
	51,000
	

	April 2016
	$
	32,000
	

	 
	November 2017
	$
	41,500
	

	 
	July 2019
	$
	51,500
	

	May 2016
	$
	32,500
	

	 
	December 2017
	$
	42,000
	

	 
	August 2019
	$
	52,000
	

	June 2016
	$
	33,000
	

	 
	January 2018
	$
	42,500
	

	 
	September 2019
	$
	52,500
	

	July 2016
	$
	33,500
	

	 
	February 2018
	$
	43,000
	

	 
	October 2019
	$
	53,000
	

	August 2016
	$
	34,000
	

	 
	March 2018
	$
	43,500
	

	 
	November 2019
	$
	53,500
	

	September 2016
	$
	34,500
	

	 
	April 2018
	$
	44,000
	

	 
	December 2019
	$
	54,000
	

	October 2016
	$
	35,000
	

	 
	May 2018
	$
	44,500
	

	 
	January 2020
	$
	54,500
	

	November 2016
	$
	35,500
	

	 
	June 2018
	$
	45,000
	

	 
	February 2020
	$
	55,000
	

	December 2016
	$
	36,000
	

	 
	July 2018
	$
	45,500
	

	 
	March 2020
	$
	55,500
	

	January 2017
	$
	36,500
	

	 
	August 2018
	$
	46,000
	

	 
	April 2020
	$
	56,000
	

	February 2017
	$
	37,000
	

	 
	September 2018
	$
	46,500
	

	 
	May 2020
	$
	56,500
	

	March 2017
	$
	37,500
	

	 
	October 2018
	$
	47,000
	

	 
	June 2020
	$
	57,000
	

	April 2017
	$
	38,000
	

	 
	November 2018
	$
	47,500
	

	 
	July 2020
	$
	57,500
	

	May 2017
	$
	38,500
	

	 
	December 2018
	$
	48,000
	

	 
	August 2020
	$
	58,000
	

	June 2017
	$
	39,000
	

	 
	January 2019
	$
	48,500
	

	 
	September 2020
	$
	58,500
	

	July 2017
	$
	39,500
	

	 
	February 2019
	$
	49,000
	

	 
	October 2020
	$
	59,000
	

	August 2017
	$
	40,000
	

	 
	March 2019
	$
	49,500
	

	 
	November 2020
	$
	59,500
	

	 
	 
	 
	April 2019
	$
	50,000
	

	 
	December 2020
	$
	60,000
	

The early retirement benefit shall be paid in lieu of any other benefit under this Agreement, in equal monthly installments (1/12 of the annual benefit) for a period of one hundred and eighty (180) months, commencing with the first day of the month following the date of the Executive’s Retirement.  Beginning with the thirteenth month that benefits are paid, and continuing thereafter until paid in full, the annual benefit shall be increased each year by three percent (3%) from the previous year’s benefit to account for cost of living increases.  In the event of the Executive’s death prior to the date all payments have been made, Section IV of this Agreement shall control.
IV.    DEATH BENEFIT
In the event of the Executive’s death, no benefits shall be payable hereunder and this Agreement shall automatically terminate.  If the Executive is already in pay status at the time of her death, no further payments will be made, and her right to any additional payments will terminate.  Notwithstanding the foregoing, in the event that the Policy(ies) described in that certain Amended Life Insurance Endorsement Method Split Dollar Agreement between the Bank and the Executive of even date herewith (the “Split Dollar Agreement”) is/are surrendered, lapse or are otherwise terminated by the Bank, and the Bank does not replace such Policy(ies) with other comparable life insurance, such that no death benefits are payable under the Split Dollar Agreement, then in the event of the Executive’s death, the Executive’s beneficiaries under the Split Dollar Agreement shall be entitled to the payment of the benefits, if any, described in Section VI(A) or VI(B) of the Split Dollar Agreement, as applicable, in lieu of any other benefit under this Agreement.

V.    TERMINATION OF EMPLOYMENT AND DISABILITY
“Termination of Employment” or “ Employment Terminates “ means that the Executive’s employment with the Bank is terminated and the Executive actually separates from service with the Bank and does not continue in her prior capacity.  Termination of Employment does not include the Executive’s military leave, sick leave or other bona fide leave of absence (such as temporary employment with the government) if the period of leave does not exceed six months, or if longer, so long as her right to reemployment with the Bank is provided either in contract or by statute.  Notwithstanding anything to the contrary, the terms “Termination of Employment” and “Employment Terminates” shall be interpreted in accordance with Code Section 409A, together with regulations and guidance promulgated thereunder, as amended from time to time (collectively referred to as “Code Section 409A”).
Notwithstanding the foregoing, Executive's employment shall be deemed to have terminated, and Executive shall have suffered an Employment Termination, when the Parties reasonably anticipate that Executive will have a permanent reduction in the level of bona fide services provided to the Bank, to a level of service that is less than fifty percent (50%) of the average level of bona fide services provided by Executive to the Bank in the immediately preceding thirty-six (36) month period.

A.    Voluntary Termination of Employment.
In the event of the Executive’s Voluntary Termination prior to Retirement or prior to a Change In Control, this Agreement shall immediately terminate and the Executive shall not be entitled to receive any benefits under this Agreement.  “Voluntary Termination” means the Executive’s Employment Terminates prior to Retirement by Executive’s voluntary action.
B.    Involuntary Termination of Employment.
In the event of the Executive’s Involuntary Termination prior to Retirement, the Bank shall pay the Executive an involuntary termination benefit, in lieu of any other benefit under this Agreement, in an amount equal to the present value of an annual retirement benefit of Sixty Thousand Dollars ($60,000) per year for fifteen (15) years, reduced by ten percent (10%) for each year prior to December 31, 2020 that Involuntary Termination occurs (prorated by month), determined as of the first day of the month in which Involuntary Termination occurs.  The benefit shall be paid in a lump sum, determined by using the assumptions set forth in Section IX(L) and the payment shall be made on the date the Executive attains age sixty-five (65).  “Involuntary Termination” means the Executive’s Employment Terminates by action of the Bank prior to Retirement, and such Termination of Employment is not For Cause.   

C.    Termination of Employment For Cause.

In the event the Executive’s Employment Terminates For Cause prior to Retirement, then this Agreement shall immediately terminate and the Executive shall forfeit all benefits and shall not be entitled to receive any benefits under this Agreement.  “For Cause” shall mean any of the following actions by the Executive that result in an adverse effect on the Bank: (1) gross negligence or gross neglect; (2) the commission of a felony or gross misdemeanor involving moral turpitude, fraud, or dishonesty; (3) the willful violation of any law, rule, or regulation (other than a traffic violation or similar offense); (4) an intentional failure to perform stated duties; or (5) a breach of fiduciary duty involving personal profit.  If a dispute arises as to whether Termination of Employment was For Cause, such dispute shall be resolved by arbitration as set forth in this Agreement.  
D.    Disability.
In the event the Executive becomes Disabled prior to Retirement or Termination of Employment, and the Executive’s Employment terminates because of such Disability, the Bank shall pay the Executive an annual benefit, in lieu of any other benefit under this Agreement, equal to Sixty Thousand Dollars and No/100 ($60,000.00), reduced by ten percent (10%) for each year prior to December 31, 2020 that Termination of Employment due to Disability occurs (prorated by month), determined as of the first day of the month in which Termination occurs.  The benefit shall be paid in equal monthly installments (1/12 of the annual benefit), for a period of one hundred and eighty (180) months, commencing with the first day of the month following the date of the Executive’s termination due to Disability.  Beginning with the thirteenth month that benefits are paid, and continuing thereafter until paid in full, the annual benefit shall be increased each year by three percent (3%) from the previous year’s benefit to account for cost of living increases.  In the event of the Executive’s death prior to the date all payments have been made, Section IV of this Agreement shall control.
 “Disabled” or “Disability” shall mean that the Executive (1) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (2) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering Bank employees.  If there is a dispute regarding whether the Executive is Disabled, such dispute shall be resolved by a mutually agreeable physician.  Such resolution shall be binding upon all Parties to this Agreement.  The determination of Disability shall be made in a uniform and nondiscriminatory manner applied to all Bank employees under similar circumstances.  Notwithstanding anything to the contrary, the term “Disability” shall be interpreted in accordance with Code Section 409A.  In the event of the Executive’s death, Section IV of this Agreement shall control. 
VI.    CHANGE IN CONTROL

Upon a Change In Control, the Bank shall pay the Executive a lump sum payment equal to the present value (calculated using the assumptions set forth in section IX(L), determined as of the date of payment) of one hundred percent (100%) of the benefit that the Executive would have received under Section III(A) had the Executive been employed by the Bank until December 31, 2020.  The lump sum payment shall be made on the first day of the month following the date of Change In Control.  The payment of a lump sum pursuant to this Section shall be in lieu of any other benefit under this Agreement.  Any benefit payable under this Section shall be subject to reduction or elimination as provided in Section XII.
A “Change In Control” shall be deemed to have occurred on the date that any one person, or more than one person acting as a group, acquires ownership of stock of the Bank that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Bank.  However, if any one person or more than one person acting as a group, is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Bank, the acquisition of additional stock by the same person or persons will not be considered to cause a Change In Control.  Further, an increase in the percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction in which the Bank acquires its stock in exchange for property will not be considered to cause a Change In Control.  Transfers of Bank stock on account of death, gift, transfers between family members or transfers to a qualified retirement plan maintained by the Bank shall not be considered in determining whether there has been a Change In Control.  For purposes of this Section, the term “Bank” shall include any holding company, meaning any corporation that is a majority shareholder of the Bank.  A “Change In Control” shall be interpreted in accordance with the definition of “Change in Ownership” under Code Section 409A, and to the extent that an event or series of events does not constitute a “Change in Ownership” under Code Section 409A, the event or series of events will not constitute a “Change In Control” under this Agreement.
VII.    SPECIFIED EMPLOYEE REQUIREMENTS
A.Six-Month Delay.  

Notwithstanding anything to the contrary, if Executive is a Specified Employee (defined below) as of the date of Termination of Employment, payments under the Agreement upon Termination of Employment may not be made before the date that is six months after Termination of Employment (or, if earlier than the end of the six-month period, the date of death of the Executive).  Payments to which the Executive would otherwise be entitled during the first six months following Termination of Employment, but for this Six-Month Delay provision, shall be accumulated and paid on the first day of the seventh month following Termination of Employment.  

B.Specified Employee.  

Executive shall be deemed to be a "Specified Employee" if, as of the date of Executive's Termination of Employment, Executive is a Key Employee (defined below) of the Bank and the Bank has stock which is publicly traded on an established securities market or 

otherwise. 

C.Key Employee.  

If Executive meets each of the requirements of Internal Revenue Code Section 416(i)(1)(A)(i), (ii), or (iii) (applied in accordance with the regulations thereunder and disregarding section 416(i)(5)) at any time during a twelve month period ending on December 31 (the "Specified Employee Identification Date"), then Executive shall be treated as a Key Employee for the entire twelve month period beginning on the following April 1.  Such April 1 date shall be the "Specified Employee Effective Date" for purposes of Section 409A. 

VIII.    RESTRICTIONS ON FUNDING
The Bank shall have no obligation to set aside, earmark or entrust any fund or money with which to pay its obligations under this Agreement. To the extent the Executive or any successor in interest becomes eligible to receive benefits under this Agreement, he or she shall be and remain simply a general creditor of the Bank in the same manner as any other creditor having a general claim for matured and unpaid compensation.
The Bank reserves the absolute right, in its sole discretion, to purchase life insurance in conjunction with the benefits provided under this Agreement.  The Bank further reserves the absolute right, in its sole discretion, to establish a grantor trust which may be used to hold Bank assets to be maintained as reserves against the Bank’s unfunded, unsecured obligations hereunder.  Such reserves shall at all times be subject to the claims of the Bank’s creditors.  If a trust or other vehicle is established, the Bank’s obligations hereunder shall be reduced to the extent assets are utilized to meet its obligations.  Any trust established by the Bank and the assets held in trust shall conform in substance to the terms of the model trust described in Revenue Procedure 92-64, 1992-33 IRB 11 (8-17-92).  The Bank reserves the absolute right, in its sole discretion, to terminate any life insurance purchased or any grantor trust established for these purposes at any time, in whole or in part.  At no time shall the Executive have any lien or right, title or interest in or to any specific investment or to any assets of the Bank.  If the Bank elects to invest in a life insurance, disability or annuity policy upon the life of the Executive, then the Executive shall assist the Bank by freely submitting to a physical exam and supplying such additional information necessary to obtain such insurance or annuities.
IX.    MISCELLANEOUS
A.    Prohibition Against Alienation or Assignment.
The Executive, her surviving spouse, and any other beneficiary(ies) under this Agreement shall not have any power or right to transfer, assign, anticipate, hypothecate, mortgage, commute, modify or otherwise encumber in advance any benefit which may become payable hereunder.  No benefits shall be subject to seizure for the payment of any debts, judgments, alimony or separate maintenance owed by the Executive or the Executive’s beneficiary(ies), or be transferable by operation of law in the event of bankruptcy, insolvency or otherwise. 

In the event the Executive or any beneficiary attempts to assign, commute, hypothecate, transfer or dispose of the benefits which may become payable hereunder, the Bank’s liabilities shall forthwith cease and terminate.
B.    Binding Obligation of the Bank and any Successor in Interest.
The Bank shall not merge or consolidate into or with another bank or sell substantially all of its assets to another bank, firm or person until such bank, firm or person agrees, in writing, to assume and discharge the Bank’s duties and obligations under this Agreement. This Agreement shall be binding upon the Parties, their successors, beneficiaries, heirs and personal representatives.
C.    Amendment or Revocation.
It is agreed by and between the Parties that, during the lifetime of the Executive, this Agreement may be amended or revoked at any time or times, in whole or in part, by the mutual written consent of the Executive and the Bank.
D.    Gender.
Whenever in this Agreement words are used in the masculine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter gender, whenever they should so apply.

E.    Effect on Other Bank Benefit Plans.
Nothing contained in this Agreement shall affect the Executive’s right or shall create any rights to participate in or be covered by any qualified or non-qualified pension, profit-sharing, group, bonus or other supplemental compensation or fringe benefit plan sponsored or offered by the Bank.
F.    Headings.
Headings and subheadings in this Agreement are inserted for reference and convenience only and shall not be deemed a part of this Agreement.
G.    Applicable Law.
The validity and interpretation of this Agreement shall be governed by applicable federal law and the laws of the State of California.

H.    12 U.S.C. § 1828(k).
Any payments made to the Executive pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k) or any regulations promulgated thereunder.
I.    Partial Invalidity.
If any term, provision, covenant, or condition of this Agreement is determined by an arbitrator or a court to be invalid, void, or unenforceable, such determination shall not render any other term, provision, covenant, or condition invalid, void, or unenforceable, and the Agreement shall remain in full force and effect notwithstanding such partial invalidity.
J.    Not a Contract of Employment.
This Agreement shall not be deemed to constitute a contract of employment between the Parties, nor shall any provision hereof restrict the right of the Bank to discharge the Executive, or restrict the right of the Executive to terminate employment. At all times, the Executive’s employment shall remain at-will.
K.    Effective Date.
This Agreement shall be effective on the Effective Date specified above.
L.    Present Value.
All present value calculations under this Agreement shall be based on the following discount rate:
Discount Rate:        The discount rate used in the APB 12 calculations for this                Agreement.    
X.    ERISA PROVISIONS
A.    Named Fiduciary and Plan Administrator.
The “Named Fiduciary and Plan Administrator” of this Agreement shall be Central Valley Community Bank.  The Board, in its discretion, may appoint one or more individuals to serve in this capacity.  As Named Fiduciary and Plan Administrator, the Bank shall be responsible for the management, control and administration of the Agreement.  The Named Fiduciary may delegate to others certain aspects of the management and operation, including the employment of advisors and the delegation of ministerial duties to qualified individuals.

B.    Claims Procedure and Arbitration.
In the event a dispute arises with respect to benefits under this Agreement and the disputed benefits are not paid, then the Executive or her beneficiaries may make a written claim to the Named Fiduciary and Plan Administrator named above within sixty (60) days from the date payments are refused.  The Named Fiduciary and Plan Administrator shall review the written claim and, if the claim is denied in whole or in part, they shall respond in writing within sixty (60) days of receipt of such claim, stating specific reasons for the denial, and providing references to the provisions of this Agreement upon which the denial is based and any additional material or information necessary to perfect the claim.  Such written notice shall further indicate the additional steps to be taken by claimant(s) if a further review of the claim is desired.  A claim shall be deemed denied if the Named Fiduciary and Plan Administrator fail to take any action within the prescribed sixty (60) day period.
If claimants desire a second review they shall notify the Named Fiduciary and Plan Administrator in writing within sixty (60) days of the initial claim denial.  Claimants may review this Agreement or any documents relating thereto and submit any written issues and comments that may be appropriate.  In their sole discretion, the Named Fiduciary and Plan Administrator shall then review the second claim and provide a written decision within sixty (60) days of receipt of such claim.  This decision shall likewise state the specific reasons for the decision and shall include reference to specific provisions of this Agreement upon which the decision is based.
If claimants continue to dispute the benefit denial based upon completed performance of this Agreement or the meaning and effect of the terms and conditions thereof, then claimants may submit the dispute to an Arbitrator for final arbitration.  The Arbitrator shall be selected by mutual agreement of the Bank and the claimants.  The Arbitrator shall operate under any generally recognized set of arbitration rules.  The Parties agree that they and their heirs, personal representatives, successors and assigns shall be bound by the decision of such Arbitrator with respect to any controversy properly submitted to it for determination.
Where a dispute arises as to benefits forfeited as a result of the Bank’s discharge of the Executive For Cause, such dispute shall likewise be submitted to arbitration as described above and the Parties agree to be bound by the Arbitrator’s decision.

XI.    TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF     CHANGES IN THE LAW, RULES OR REGULATIONS
The Bank is entering into this Agreement upon the assumption that certain existing tax laws, rules and regulations will continue in effect in their current form.  If any such assumptions should change and the change has a detrimental effect on this Agreement, then the Bank reserves the right to terminate or modify this Agreement.  This paragraph shall become null and void effective 

immediately upon a Change In Control.
XII.    EXCESS PARACHUTE PAYMENTS
Notwithstanding any provision of this Agreement to the contrary, if all or a portion of any benefit payment under this Agreement, alone or together with any other compensation or benefit, will be a non-deductible expense to the Bank by reason of Code Section 280G, the Bank may, in its sole discretion, reduce the benefits payable under this Agreement as necessary to avoid the application of Section 280G.  The Bank shall have the power to reduce benefits payable under this Agreement to zero, if necessary.

XIII.    COMPETITION AFTER TERMINATION OF EMPLOYMENT
The Bank shall not pay any benefit under this Agreement if the Executive, without the prior written consent of the Bank, engages in, becomes interested in, directly or indirectly, as a sole proprietor, as a partner in a partnership, or as a substantial shareholder in a corporation, or becomes associated with, in the capacity of employee, director, officer, principal, agent, trustee or in any other capacity whatsoever, any enterprise conducted in the trading area (a 50 mile radius) of the business of the Bank, which enterprise is, or may deemed to be, competitive with any business carried on by the Bank as of the date of termination of the Executive’s employment or her Retirement. This section shall not apply following a Change In Control.

XIV.    PROHIBITION AGAINST ACCELERATION.  
Notwithstanding anything to the contrary, neither the time nor scheduling of payments under this Agreement may be accelerated unless such acceleration is permissible under Code Section 409A, other applicable law and the terms of this Agreement.  
IN WITNESS WHEREOF, the Parties acknowledge that each has carefully read this Agreement and executed the original on _December 22, 2011___and that, upon execution, each has received a conforming copy.
	
		
	BANK:
	EXECUTIVE:

	 
	 

	CENTRAL VALLEY COMMUNITY BANK
	LYDIA SHAW

	 
	 

	 
	 

	By: /s/Daniel Doyle
	/s/Lydia Shaw

	Name Daniel Doyle
	Name:  Lydia Shaw

	Title:  President and Chief Executive OfficerShaw 10.92

Exhibit 10.92
AMENDED
LIFE INSURANCE ENDORSEMENT METHOD
SPLIT DOLLAR AGREEMENT 
Insurer:                    Great-West Life & Annuity Insurance Company
Policy Number:                86002161 

Bank:                        Central Valley Community Bank
Insured:                    Lydia Shaw
Relationship of Insured to Bank:        Senior Vice President of Consumer and Retail                             Banking
This Amended Life Insurance Endorsement Method Split Dollar Agreement (the "Agreement") is made effective as of January 1, 2012 ("Effective Date"), by and between Central Valley Community Bank (the "Bank") and Lydia Shaw (the “Insured”), each a “Party” and together the “Parties.”  This Agreement supersedes and amends in its entirety that certain Life Insurance Endorsement Method Split Dollar Agreement dated January 2, 2008, by and between the Bank and the Insured.
AGREEMENT

The rights and duties of the Bank and the Insured with respect to the above-referenced life insurance policy ("Policy") shall be as set forth below:
		
	I.
	DEFINITIONS

Refer to the Policy for the definition of all terms in this Agreement.  
		
	II.
	POLICY TITLE AND OWNERSHIP

Title and ownership to the Policy shall reside in the Bank for its use and for the use of the Insured in accordance with this Agreement. The Bank alone may, to the extent of its interest, exercise the right to borrow or withdraw on the Policy cash values.  Where the Bank and the Insured (or assignee, with the consent of the Insured) mutually agree to exercise the right to increase the coverage under the Policy, then the rights, duties and benefits of the parties to such increased coverage shall continue to be subject to the terms of this Agreement.
		
	III.
	BENEFICIARY DESIGNATION RIGHTS

The Insured (or assignee) shall have the right and power to designate a beneficiary or 

beneficiaries to receive the Insured's share of the proceeds payable upon the death of the Insured, and to elect and change a payment option for such beneficiary, subject to any right or interest the Bank may have in such proceeds, as provided in this Agreement.  Any Beneficiary Designation Form completed by the Insured under the prior agreement shall remain in full force and effect unless and until modified or revoked by the Insured.  
		
	IV.
	PREMIUM PAYMENT METHOD

The Bank intends to pay an amount equal to the planned premiums and any other premium payments that might become necessary to keep the Policy in force.
		
	V.
	TAXABLE BENEFIT

Annually, the Insured will receive a taxable benefit equal to the assumed cost of insurance as required by the Internal Revenue Service. The Bank (or its administrator) will report to the Insured the amount of imputed income each year on Form W-2 or its equivalent.
		
	VI.
	DIVISION OF DEATH PROCEEDS

Subject to Paragraphs VII and IX herein, the division of the Policy death proceeds shall be as follows:
		
	A.
	Should the Insured be employed by the Bank at the time of death, the Insured’s beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to a lump sum payment equal to the present value of the retirement benefit provided in Section III(A) of that certain Amended Executive Salary Continuation Agreement between the Bank and Insured, dated concurrently herewith (the "Salary Continuation Agreement"), assuming that the payments would begin on the date of death and continue for one hundred and eighty (180) months following retirement, or one hundred percent (100%) of the total Policy proceeds, whichever amount is less.  Present value calculations shall be made using the assumptions set forth in Section IX(L) of the Salary Continuation Agreement.

		
	B.
	Should the Insured be retired from the Bank at the time of death, the Insured’s beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to a lump sum payment equal to the present value of the sum of all remaining payments that would have been made under the Salary Continuation Agreement (if any), but for the Insured's death, or one hundred percent (100%) of the total Policy proceeds, whichever amount is less.  Present value calculations shall be made using the assumptions set forth in Section IX(L) of the Salary Continuation Agreement.

		
	C.
	The Bank shall be entitled to the remainder of the insurance Policy proceeds payable on the death of the Insured.

		
	D.
	The Bank and the Insured (or assignees) shall share in any interest due on the death proceeds in the proportion that the proceeds due to each respectively bears to the total proceeds, excluding any such interest.

		
	VII.
	DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

During the life of the Insured, the Bank shall at all times be entitled to an amount equal to the Policy’s cash value, as that term is defined in the insurance contract, less any Policy loans and unpaid interest outstanding, cash withdrawals previously taken by the Bank, and any applicable surrender charges. Such cash value shall be determined as of the date of surrender.  Notwithstanding the foregoing, upon the Insured's death, the Policy proceeds shall first be used to satisfy the obligations to the Insured's beneficiaries set forth in Paragraph VI.
		
	VIII.
	RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS

In the event that the Policy involves an endowment or annuity element, the Bank’s right and interest in any endowment proceeds or annuity benefits, on expiration of the deferment period, shall be determined under the provisions of this Agreement by regarding such endowment proceeds or the commuted value of such annuity benefits as the Policy's cash value.  Any endowment proceeds or annuity benefits shall be considered to be like death proceeds for purposes of division under this Agreement.
		
	IX.
	TERMINATION OF AGREEMENT

This Agreement shall terminate upon the occurrence of any one of the following:
		
	1.
	The Insured shall leave the employment of the Bank voluntarily at any time; or

		
	2.
	The Insured shall attain the age of 79; or

		
	3.
	The Insured shall be discharged from employment with the Bank for cause. The term for “cause” shall mean any of the following that result in an adverse effect on the Bank: (i) gross negligence or gross neglect; (ii) the commission of a felony or gross misdemeanor involving moral turpitude, fraud, or dishonesty; (iii) the willful violation of any law, rule, or regulation (other than a traffic violation or similar offense); (iv) an intentional failure to perform stated duties; or (v) a breach of fiduciary duty involving personal profit; or

		
	4.
	Surrender, lapse, or other termination of the Policy by the Bank.  Upon surrender, lapse or termination of the Policy, the Insured (or assignee) shall have a fifteen (15) day option to receive from the Bank an absolute assignment of the Policy in consideration of a cash payment to the Bank in an amount equal to the greater of:

		
	(a)
	The Bank’s share of the Policy's cash value on the date of assignment; or

		
	(b)
	The sum of the premiums paid by the Bank prior to the date of assignment, 

with interest.
If the Insured (or assignee) fails to exercise this option, fails to tender the required cash payment, or dies within the fifteen (15) day period, then the option shall terminate, and the Insured (or assignee) agrees that all of the Insured’s rights, interest and claims in the Policy shall terminate as of the date of termination of this Agreement.  The Insured expressly agrees that this Agreement constitutes sufficient written notice of the Insured’s option to receive an absolute assignment of the Policy as set forth herein.
Except as provided above, this Agreement shall terminate upon payment of the death benefit proceeds in accordance with Paragraph VI above.
		
	X.
	NO ASSIGNMENT

The Insured may not, without the written consent of the Bank, assign to any individual, trust or other organization, any right, title or interest in the Policy nor any rights, options, privileges or duties created under this Agreement.
		
	XI.
	AGREEMENT BINDING UPON THE PARTIES

This Agreement shall bind the Insured and the Bank, their heirs, successors, personal representatives and assigns.
		
	XII.
	ERISA PROVISIONS

The following provisions are part of this Agreement and are intended to meet the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”):
		
	A.
	Named Fiduciary and Plan Administrator.

The Named Fiduciary and Plan Administrator of this Amended Endorsement Method Split Dollar Agreement shall be Central Valley Community Bank. As Named Fiduciary and Plan Administrator, the Bank shall be responsible for the management, control, and administration of this Agreement. The Named Fiduciary may delegate to others certain responsibilities, including the employment of advisors and the delegation of any ministerial duties to qualified individuals.
		
	B.
	Funding Policy.

The funding policy for this Agreement shall be to maintain the subject Policy in force by paying, when due, all premiums required.

		
	C.
	Basis of Payment of Benefits.

The basis of payment of benefits under this Agreement is direct payment by the Insurer.

		
	D.
	Claim Procedures.

Claim forms or Policy information can be obtained by contacting Equias Alliance at (831) 373-4614.  When the Named Fiduciary receives a claim which may be covered under the Policy, he or she should contact the office named above, and they will either complete a claim form and forward it to an authorized representative of the Insurer or advise the Named Fiduciary what further steps are necessary. The Insurer will evaluate and make a decision as to payment. If the claim is payable, a benefit check will be issued in accordance with the terms of this Agreement.
In the event that a claim is not eligible under the Policy, the Insurer will notify the claimant of the denial pursuant to the Policy terms. If the claimant is dissatisfied with the denial of the claim and wishes to contest such claim denial, he or she should contact the office named above and they will assist in making inquiry to the Insurer. All objections to the Insurer’s actions should be in writing and submitted to the office named above for transmittal to the Insurer.
		
	XIII.
	GENDER

Whenever in this Agreement words are used in the masculine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter gender, whenever they should so apply.
		
	XIV.
	INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT

The Insurer shall not be deemed a party to this Agreement, but will respect the rights of the parties as herein provided upon receiving an executed copy of this Agreement. Payment or other performance in accordance with the Policy provisions shall fully discharge the Insurer for any and all liability.
		
	XV.
	AMENDMENT OR REVOCATION

It is agreed by and between the parties hereto that, during the lifetime of the Insured, this Agreement may be amended or revoked at any time or times, in whole or in part, by the mutual written consent of the Insured and the Bank.

		
	XVI.
	EFFECTIVE DATE

The Effective Date of this Agreement is the date specified above.
		
	XVII.
	SEVERABILITY AND INTERPRETATION

If a provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall nonetheless be enforceable according to their terms. Further, in the event that any provision is held to be overbroad as written, such provision shall be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to law and enforced as amended.
		
	XVIII.
	APPLICABLE LAW

The validity and interpretation of this Agreement shall be governed by applicable federal law and the laws of the State of California.
		
	XIX.
	COMPETITION AFTER TERMINATION OF EMPLOYMENT

The Bank shall not pay any benefit under this Agreement if the Insured, without the prior written consent of the Bank, engages in, becomes interested in, directly or indirectly, as a sole proprietor, as a partner in a partnership, or as a substantial shareholder in a corporation, or becomes associated with, in the capacity of employee, director, officer, principal, agent, trustee or in any other capacity whatsoever, any enterprise conducted in the trading area (a 50 mile radius) of the business of the Bank, which enterprise is, or may deemed to be, competitive with any business carried on by the Bank as of the date of termination of the Insured’s employment or her retirement. This section shall not apply following a Change In Control, as that term is defined on the Salary Continuation Agreement.
Executed at Fresno, California on _12/22/2011___________. 

	
		
	BANK:

CENTRAL VALLEY COMMUNITY BANK
   

By: _/s/Daniel Doyle_____________________
Name: Daniel Doyle    
Title: President and Chief Executive Officer
	EXECUTIVE:

LYDIA SHAW

_/s/Lydia Shaw_____________________
Lydia Shaw    

BENEFICIARY DESIGNATION FORM
FOR AMENDED LIFE INSURANCE 
ENDORSEMENT METHOD SPLIT DOLLAR AGREEMENT

PRIMARY DESIGNATION:
Name                Address                Relationship    
                                                    
                                                    
                                                    

SECONDARY (CONTINGENT) DESIGNATION:
                                                    
                                                    
                                                    

All sums payable under the Amended Life Insurance Endorsement Method Split Dollar Agreement by reason of my death shall be paid to the Primary Beneficiary, if he or she survives me, and if no Primary Beneficiary shall survive me, then to the Secondary (Contingent) Beneficiary.

 
Lydia Shaw                            Date

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