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EXHIBIT 10.2    
  

 
  FURTHER AMENDMENTS TO
  DEFERRED COMPENSATION PLAN
  (As restated on July 1, 1996)    
  

        These Amendments (the "Amendments") to the Deferred Compensation Plan (as last restated on July 1, 1996) are effective as of January 9, 2002, having been adopted
as of such date pursuant to !8.1 of the Plan by the Board of Directors of Mid-State Bank & Trust at a regular meeting of such Board held in Arroyo Grande, California. The Amendments are contained
within the following resolutions: 

        "WHEREAS, the Board of Directors has been informed that the Plan should be amended in several respects in order to clarify various
provisions of the Plan and to carry out the Board's original intent to protect the Plan Participants in the event of change in control of the Bank; 

        WHEREAS, the Board of Directors considers these changes and amendments to the Plan to be in the best interest of the Bank, Mid-State
Banchsares, the shareholders and Participants in the Plan; 

        NOW, THEREFORE, the Plan is hereby amended as follows: 

	1.
	Section
7.1(c) is added to the Plan to read as follows:

	(c)
	If
a Participant fails to make an annual election (and assuming that such Participant has not already retired), such Participant shall be deemed to have elected to receive
Participant's credited amount in equal monthly installments payable over a 10 year period. 

	2.
	Section
8.3 of the Plan is amended in full to read as follows:

	8.3
	Merger.    In the event of a dissolution or a liquidation of the Bank or a reorganization, merger, or consolidation of the
Bank with one or more corporations as a result of which the Bank will not be the
surviving corporation, or a sale of substantially all of the assets and property of the Bank to another person, or in the event of any other single transaction involving the Bank where there is a
change in ownership of at least twenty-five percent (25%), except as may result from a transfer of shares of another corporation in exchange for at least eighty percent (80%) control of the
corporation, (any of the foregoing being a "Change in Control Event"), the full value of each Participant's vested interest in his or her Accounts shall, at the election of the Participant and
notwithstanding any provision of this Plan to the contrary, be paid either:

	(b)
	in
a single amount not later than sixty (60) days after the consummation of the Change in Control Event; or

	(c)
	in
equal monthly, quarterly, or annual installments over a specified number of years, which shall be not more than ten (10) years, commencing not later than sixty (60) days after the
consummation of the Change in Control Event. 

The
Committee shall give each Participant prompt notice of the pendency of any Change in Control Event and each Participant shall have thirty (30) days after such notice to make his or her election.
The failure by a Participant to make any such election shall result in the payment to such Participant being made in a single, lump sum payment sixty (60) days after the consummation of the Change in
Control Event. For purposes of this Section, any Change in Control Event which occurs to Mid-State Bancshares shall also be deemed to be a Change in Control Event occurring to the Bank. 

The
election provided for in this Section shall not apply to any Participant who has begun to receive payments under the Plan upon such Participant's retirement. 

	4.
	Section
9.9 is added to the Plan to read as follows:

	9.9
	Trust.    In order to protect the deferred payments of Accounts following a Change in Control Event pursuant to Section 8.3,
the Committee shall establish a "rabbi trust" with an 

independent
financial institution and shall, prior to the consummation of any Change in Control Event, fully fund such trust with the aggregate amount of all Accounts vested to Participants under the
Plan. 

        RESOLVED FURTHER, capitalized terms used herein and not otherwise defined shall have the same meaning as set forth in the Plan. 

        RESOLVED FURTHER, except as herein amended, the Plan shall remain in full force and effect. 

        RESOLVED FURTHER, these Amendments shall be governed by and construed in accordance with the laws of the Sate of California." 

        The
undersigned, being the duly elected Assistant Secretary of Mid-State Bank & Trust hereby certifies that the foregoing resolutions were duly adopted at the Board meeting of January 9,
2002 and remain in full force and effect in the form adopted, without amendment, modification or revocation. 

Dated
as of the 9th day of January, 2002. 

MID-STATE
BANK & TRUST 

By
/s/ James G. Stathos, Assistant Secretary 

 
 

MID-STATE BANK
  DEFERRED COMPENSATION PLAN
  AMENDED AND RESTATED JULY 1, 1996    
  

        WHEREAS, MID-STATE BANK (the "Bank"), by resolution of the Board of Directors, has previously adopted this Deferred Compensation Plan (the
"Plan") for the purpose of providing performance-oriented deferred compensation for personnel of the Bank; and 

        WHEREAS, it is believed that the continuation of this Plan providing for deferred compensation will be in the best interests of the Bank;
and 

        WHEREAS, it is believed that by providing more distribution options the Bank would enhance the Plan, and consequently the performance of
participating executives. 

        NOW, THEREFORE, it is hereby declared as follows: 

 
 

ARTICLE 1
  DEFINITIONS    
  

        1.1  Title.    This Plan shall be known as the Mid-State Bank Deferred Compensation Plan. 

        1.2  Definitions.

        (a)  "Account"
shall mean the account maintained by the Committee for each Participant under this Plan for each Plan Year. 

        (b)  "Affiliate"
shall mean: 

        (1)  any
corporation while it is a member of the same controlled group of corporations (within the meaning of Code Section 414(b)) as the Bank; 

        (2)  any
organization while it is under "common control" with the Bank (within the meaning of Code Section 414(c)); 

        (3)  any
organization while it is an "affiliated service group" together with the Bank (within the meaning of Code Section 414(m)); or 

        (4)  any
other entity while it is required to be aggregated with the Bank under Code Section 414(o); 

provided,
however, that the phrase "more than 50 percent" shall be substituted for the phrase "at least 80 percent" each place the latter appears in Code Section 1563 and in the regulations under Code
Section 414(c). 

        (c)  "Bank"
shall mean Mid-State Bank, a California banking corporation, and any successor thereto. 

        (d)  "Beneficiary"
shall mean the person last designated in writing by the Participant to the Committee as the Participant's beneficiary under this Plan, or, if there is no
designated beneficiary or the designated beneficiary does not survive the Participant, the Participant's estate. 

        (e)  "Board
of Directors" shall mean the Board of Directors of the Bank. 

        (f)    "Break
in Service" shall mean any Plan Year during which a Participant completes less than 1,000 hours of employment with the Bank and the Affiliates. 

        (g)  "Committee"
shall mean the committee appointed by the Board of Directors pursuant to the provisions of this Plan. 

        (h)  "Code"
shall mean the Internal Revenue Code of 1986, as amended from time to time, all successor laws thereto, and any regulations or guidance promulgated thereunder.
Where the Plan refers to a particular section of the Code, the reference shall also apply to any successor to that section. 

        (i)    "Deferral
Election" shall mean an election made under Section 7.1 or 7.2. 

        (j)    "Disability"
shall mean any mental or physical condition, illness, or injury which renders a Participant unable to perform his or her employment duties in a normal and
regular manner, and which is expected to result in death or has lasted or is expected to last for a continuous period of not less than six (6) months. Disability shall be determined by a physician
acceptable to both the Committee and the Participant. 

        (k)  "Employer"
shall mean the Bank and any Affiliates authorized by the Board of Directors to adopt this Plan, and which, by direction of the Affiliate's board of directors,
or appropriate executive authority if a partnership or proprietorship, adopts this Plan. 

        (l)    "ERISA"
shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time, all successor laws thereto, and any regulations or guidance
promulgated thereunder. Where the Plan refers to a particular section of ERISA, the reference shall also apply to any successor to that section. 

        (m)  "Full
Year of Service" shall mean any calendar year in which an individual completes at least 1,000 hours of employment with the Bank or the Affiliates. 

        (n)  "Net
Profits" shall mean net income (during the Plan Year for which an allocation is made) on the Bank's audited financial statements net of all expenses including
reserves for loan losses, provision for income taxes, and extraordinary items, all as determined according to generally accepted accounting principles. 

        (o)  "Participant"
shall mean each employee of the Bank or any other Employer who is designated by the Committee as eligible to participate hereunder. 

        (p)  "Plan"
shall mean this Deferred Compensation Plan, as set forth herein. 

        (q)  "Plan
Year" shall mean any calendar year during which the Plan is in effect beginning January 1, 1983. 

        (r)  "Return
on Equity" shall mean, for purposes of Section 4.1, the return on stockholder's equity, as determined according to generally accepted accounting principles,
during the Plan Year for which an allocation is made. 

 
 

ARTICLE 2
  PARTICIPATION    
  

        2.1  Eligibility.    Carrol Pruett, Raymond Jones, Daryl Flood, James G. Stathos, Thomas E. Reese, John Fowler, and
such other persons constituting senior management of the Bank, its successors, or Affiliates as the Committee may from time to time designate, shall be eligible to participate in the Plan. 

        2.2  General Restriction. Notwithstanding Section 2.1, participation shall be limited to a "select group of management or
highly compensated employees" within the meaning of ERISA Section 201(2). 

        2.3  Continuance as Participant.    Every person who becomes a Participant shall continue to be a Participant until
the date he or she: 

        (a)  Resigns
or is dismissed as an employee of the Bank or its Affiliates; 

        (b)  Retires
on or after attaining his or her normal retirement date (as set forth in the Bank's Policy Manual); or 

        (c)  Dies
or suffers a Disability. 

        2.4  Break in Service.    Any person who after becoming a Participant has a Break in Service shall cease to be a
Participant in this Plan until, after returning to work, he or she has completed one thousand (1,000) hours in the employment of the Bank or the Affiliates. 

 
 

ARTICLE 3
  ADMINISTRATION OF PLAN    
  

        3.1  Members.    The Committee hereunder shall consist of five (5) members appointed by the Board of Directors.
Notwithstanding anything to the contrary set forth herein, no Participant under the Plan shall be eligible to serve as a member of the Committee. 

        3.2  Committee Action.    The Committee shall, for the purpose of administering the Plan, choose a secretary and an
assistant secretary (either of whom is hereafter referred to as "Secretary") who shall keep minutes of the Committee's proceedings and all records and documents pertaining to the Committee's
administration of the Plan. The Secretary may execute any certificates or other written direction on behalf of the Committee. Three (3) members of the Committee shall constitute a quorum. 

        3.3  Rights and Duties.    The Committee, on behalf of the Participants, shall be charged with the general
administration of the Plan and shall have all powers necessary to accomplish those purposes, including, but not by way of limitation, the following: 

        (a)  To
construe, interpret, and administer the Plan; 

        (b)  To
make allocation and determinations required by the Plan; 

        (c)  To
compute and certify the amount and kind of benefits payable to Participants; 

        (d)  To
authorize all disbursements by the Bank or the Affiliates pursuant to the Plan; 

        (e)  To
maintain all the necessary records for the administration of the Plan; and 

        (f)    To
make and publish such rules for the regulation of the Plan as are not inconsistent with the terms hereof. 

Decisions
and determinations by the Committee shall be final and binding upon all parties and shall be given the maximum deference allowed by law. 

        3.4  Information.    To enable the Committee to perform its functions, the Bank and the Affiliates shall supply full
and timely information to the Committee on all matters relating to the compensation of the Participants, their employment, their death or Disability, and any other pertinent facts as the Committee may
require. 

        3.5  Compensation, Indemnity, and Liability.    The members of the Committee shall serve without bond and without
compensation for their services hereunder. All expenses of the Committee shall be paid by the Bank and the other Employers. The Bank and the other Employers shall furnish the Committee with such
clerical and other assistance as is necessary in the performance of its duties. No member of the Committee shall be liable for the act or omission of any other member of the Committee nor for any act
or omission on his or her own part, excepting only his or her own willful misconduct or gross negligence. The Bank shall indemnify and hold harmless each member of the Committee against any and all
expenses and liabilities arising out of his or her membership on the Committee, excepting only expenses and liabilities arising out of his or her own willful misconduct or gross negligence. 

        3.6  Taxes.    If the whole or any part of a Participant's Accounts shall become liable for the payment of any
estate, inheritance, income, or other tax which an Employer shall be required to pay, the Employer shall have the power and authority to pay such tax and reduce the book account of the person whose
interests hereunder are so liable. Prior to making any payment, the Employer may require such releases or other documents from any lawful taxing authority as it shall deem necessary. 

        3.7  Employment of Counsel.    The Committee may consult with legal counsel (who may be counsel for the Bank) and
shall be fully protected with respect to any action taken or permitted by good faith pursuant to the advice of such counsel. 

 
 

ARTICLE 4
  DEFERRED COMPENSATION POOL    
  

        4.1  Deferred Compensation Pool.    The Board of Directors shall, within sixty (60) days following the end of each
Plan Year, cause the Bank (and, to the extent applicable, any other Employer) to determine an amount as follows: 

	Return on Equity
 
	 	Amount of "Allocation"

	Less than 10%	 	-0-
	10% but less than 15%	 	2% of Net Profits
	15% but less than 20%	 	3% of Net Profits
	20% or more	 	4% of Net Profits

        4.2  Forfeiture; Reduction of Allocations.    Any "forfeitures," as that term is defined in Section 5.3, occurring
in a Plan Year shall be credited as part of and used to reduce the amount of allocation under this Plan from the Bank or any other Employer for that Plan Year. 

 
 

ARTICLE 5
  ALLOCATIONS    
  

        5.1  Separate Accounts.    The Committee shall establish and maintain on all books and accounts of the Plan, by Plan
Year, a separate Account for each Participant. 

        5.2  Allocations.    Within sixty (60) days after the close of the Plan Year, the Committee shall allocate the
amount allocable under this Plan for such Plan Year by the Bank or any other Employer pursuant to Section 4.1 among the Accounts of those persons who were Participants on the last day of the Plan
Year. This amount shall be allocated among such Accounts in such proportions as the Committee shall determine from time to time. 

        5.3  Allocation of Forfeitures.    The term "forfeitures" as used in this Plan means the unvested portion of an
Account established pursuant to Section 5.1 for a person whose status as a Participant has been terminated. Notwithstanding the foregoing, in the case of an individual whose status as a Participant is
terminated as a result of the termination of his or her employment with the Bank or the Affiliates for cause, the term "forfeitures" means the vested and unvested portion of an Account established
pursuant to Section 5.1. Whether a Participant's termination of employment is "for cause" shall be determined by the Committee in its sole and absolute discretion. All forfeitures occurring in a Plan
Year shall be used to reduce the amount that must be allocated for such Plan Year by the Bank or any other Employer pursuant to Section 4.1 and shall be allocated accordingly. 

        5.4  Rate of Return.    The full amount of the funds credited to the Accounts of each Participant shall accrue an
annual rate of return equal to ninety percent (90%) of the Bank's prime rate (as that rate may be determined from time to time by the Board of Directors). Funds remaining in the Accounts, after any
installment payment described in Article 7 hereof, shall continue to accrue a rate of return as set forth in this Section 5.4. This return shall be adjusted and credited to each Account quarterly. 

 
 

ARTICLE 6
  VESTING    
  

        6.1  Fully Vested Interest. Subject to Section 5.3, the full amount credited to the Accounts established for each Participant
pursuant to Section 5.1, including any interest credited thereto, shall be fully vested in the Participant for whom the Accounts are established after such Participant has completed ten (10) Full
Years of Service. For purposes of this Plan, the Accounts of Messrs. Pruett, Jones, Flood, and Reese shall be considered fully vested. 

        6.2  Partial Vesting. Subject to Sections 5.3 and 6.1, the amount credited to the Accounts established for a Participant
pursuant to Section 5.1, including any interest credited thereto, shall become vested in the Participant for whom the Accounts were established in accordance with the following schedule: 

	Full Years

of Service
	 	Percentage of

Account Vested
	 
	1	 	10	%
	2	 	20	%
	3	 	30	%
	4	 	40	%
	5	 	50	%
	6	 	60	%
	7	 	70	%
	8	 	80	%
	9	 	90	%
	10	 	100	%

        6.3  Breaks in Service. Should a Participant have a Break in Service, the Full Years of Service rendered by the Participant
after the Break in Service shall be taken into account for purposes of determining the percentage, if any, of the amount in his or her Accounts derived from allocations made before the Break in
Service that is vested in the Participant. 

        6.4  Forfeiture of Unvested Amount. Except as provided in Section 5.3, on termination of a Participant's status as a
Participant, that portion of the amount in the Account established for the Participant pursuant to Section 5.1 that is not vested as provided in this Article shall be forfeited by the Participant.
This amount shall be credited, in the manner prescribed by Articles 4 and 5, to reduce the amount allocable under this Plan from the Employer for the then current Plan Year. Notwithstanding the
foregoing, where a Participant's employment with the Bank or the Affiliates is terminated for cause, all funds in the Account established for the Participant pursuant to Section 5.1, whether vested or
not vested, shall be immediately forfeited by the Participant and credited, in the manner prescribed by Articles 4 and 5, to reduce the allocable amount under this Plan by the Employer for the then
current Plan Year. 

 
 

ARTICLE 7
  PAYMENT OF DEFERRED COMPENSATION    
  

        7.1  Annual Election. On or before the December 31 preceding a Plan Year, a Participant may elect in writing to receive the
vested portion which may be credited to his or her Account for said Plan Year, either: 

        (a)  Upon
retirement, either: 

        (1)  In
a single amount not later than sixty (60) days after the close of the Plan Year in which his or her retirement occurred; or 

        (2)  In
equal monthly, quarterly, or annual installments over a specified number of years, which shall be not more than ten (10) years, commencing not later than sixty (60)
days after the close of the Plan Year in which his or her retirement occurred. 

        (b)  In
the fifth Plan Year after the Plan Year for which the Deferral Election was made, either: 

        (1)  In
a single amount not later than sixty (60) days after the close of the fifth Plan Year after the Plan Year for which such Deferral Election was made; or 

        (2)  In
equal monthly, quarterly, or annual installments over a specified number of years, which shall be not more than ten (10) years, commencing not later than sixty (60)
days after the close of the fifth Plan Year after the Plan Year for which such Deferral Election was made. 

"Retirement"
shall mean early, normal, or deferred retirement as set forth in the Bank's Policy Manual. 

Notwithstanding
the foregoing, in no event shall benefit payments commence later than the year following the year in which the Participant terminates employment with the Bank or the Affiliates. 

        7.2  Rules Regarding Delay of Payments. A Participant may elect to delay the time at which the Account balance is to be paid
under Section 7.1 (b) , or subsequently under this Section 7.2, until: 

        (a)  As
soon as possible after January 1 of the fourth Plan year following the year the election to delay payment is made; or 

        (b)  Termination
of employment, if earlier. 

Such
election to delay payments must be received by the Board before the January 1 of the year preceding the date the amounts would otherwise first become payable under Section 7.1(b) or this Section
7.2. The election to delay payments shall also specify the form of payment, whether in one lump sum in cash or in installments over a period not exceeding ten (10) years. 

Any
change in the elected time or form of payment shall not be valid unless the Participant shall have remained employed with the Bank or the Affiliates for a period of at least one year after the
date on which such election is made. 

Notwithstanding
the foregoing, in no event shall benefit payments commence later than the year following the year in which the participant terminates employment with the Bank or the Affiliates. 

        7.3  Death or Disability. Notwithstanding anything to the contrary herein, should a Participant die or suffer a Disability
prior to termination of employment with the Bank or the Affiliates, the full value of his or her vested interest (as of the date of death or Disability) in the Accounts established for him or her
under Section 5.1 shall be paid to the Participant's Beneficiary or to the Participant, as the case may be, in equal monthly installments over a ten (10) year period commencing not later than sixty
(60) days after the close of the Plan Year in which the death or Disability occurred. 

On
the death of a Participant following retirement, payments shall be made to the Participant's Beneficiary or estate in the manner prescribed by Section 7.1 or 7.4, as appropriate. 

        7.4  Retirement. Upon the retirement of a Participant, the full value of his or her vested interest (as of the date of
retirement) in the Accounts established for him or her under Section 5.1 shall be paid in the form elected under Section 7.1 or 7.2. 

        7.5  Hardship. A Participant may at any time apply to the Board of Directors in writing for the withdrawal of all or part of
such Participant's Accounts for a financial emergency. The Board of Directors shall approve such withdrawal only for an unanticipated emergency that is caused by an event beyond the control of the
Participant and that would result in severe financial hardship if early withdrawal were not permitted. If the Board of Directors approves such a withdrawal, such amount shall be deducted from such
Participant's Accounts and paid to such Participant in cash. No payment shall be made under this Section if the Committee determines that such payment would lead any other amounts deferred hereunder
to be deemed constructively received under the Code. 

        7.6  Termination. Notwithstanding any provision to the contrary herein, upon a Participant's termination of employment with
the Bank or the Affiliates, other than by reason of retirement (as defined in Section 5.1), death, Disability, or termination of employment for cause, the full value of his or her vested 

interest in the Participant's Accounts shall be paid in a lump sum payment within sixty (60) days following the date of termination. 

        7.7  Committee Discretion. Notwithstanding the foregoing, the Committee may, in its sole and absolute discretion, change the
form and the timing of payments under the Plan. 

        7.8  Tax Withholding. The Bank may withhold from any payment made under this Plan (and transmit to the proper taxing
authority) such amounts as it may be required to withhold under any Federal, state, or other law. 

 
 

ARTICLE 8
  AMENDMENT AND TERMINATION    
  

        8.1  Amendments. The Bank shall have the right to amend the Plan in whole or in part from time to time by resolutions of the
Board of Directors, and to amend or cancel any amendments; provided, however, that no action under this Section shall cancel or affect in any way amounts previously credited to any Participant's
Account. Such amendments shall be stated in an instrument in writing, executed by the Bank in the same manner as the Plan, and the Plan shall be amended in the manner and at the time therein set
forth, and all Participants shall be bound thereby. 

        8.2  Discontinuance of Plan. It is the expectation of the Bank that the Plan will be continued indefinitely, but continuance
of the Plan is not assumed as a contractual obligation of the Bank or any Employer, and the right is reserved at any time to discontinue and to terminate the Plan. If the Bank decides to discontinue
and to terminate the Plan, it shall notify the Committee of its action in an instrument in writing, executed by the Bank in the same manner as the Plan, and the Plan shall be terminated at the time
therein set forth, and all Participants shall be bound thereby; provided, however, that no action under this Section shall cancel or affect in any way amounts previously credited to any Participant's
Accounts. 

        8.3  Merger. In the event of a dissolution or a liquidation of the Bank or a reorganization, merger, or consolidation of the
Bank with one or more corporations as a result of which the Bank will not be the surviving corporation, or a sale of substantially all of the assets and property of the Bank to another person, or in
the event of any other single transaction involving the Bank where there is a change in ownership of at least twenty-five percent (25%), except as may result from a transfer of shares of another
corporation in exchange for at least eighty percent (80%) control of that corporation, notwithstanding any provision of this Plan to the contrary, the full value of each Participant's vested interest
in his or her Accounts shall be paid in a single amount not later than sixty (60) days following receipt of notice of such intended dissolution, liquidation, merger, reorganization, or consolidation. 

 
 

ARTICLE 9
  MISCELLANEOUS    
  

        9.1  Limitation on Participant's Rights. Participation in the Plan shall not give any Participant the right to be retained in
the employ of the Bank or any Affiliate or any right or interest in the Plan other than as herein provided. The Bank and the Affiliates reserve the right to dismiss any Participant without any
liability for any claim against them, except to the extent provided herein. The Plan shall create only a contractual obligation on the part of the Bank and shall not be construed as creating a trust.
The payments to a Participant or his or her designated Beneficiary or other beneficiary hereunder shall be made from assets which shall continue, for all purposes, to be a part of the general assets
of the Bank or the Affiliates, and no person, other than the Bank or the Affiliates, shall have, by virtue of the provisions of the Plan, any interest in such assets. To the extent that any person
acquires a right to receive payments from the Bank or any other Employer under the provisions hereof, such right shall be no greater than the right of any unsecured general creditor of the Bank or the
relevant Employer. 

        9.2  Other Plans. The Plan shall not affect the right of any employee or Participant to participate in and to receive benefits
under and in accordance with the provisions of any other Bank or Affiliate plans which are now or hereafter in existence. 

        9.3  Receipt of Release. Any payment to any Participant in accordance with the provisions of the Plan shall, to the extent
thereof, be in full satisfaction of all claims against the Committee, the Bank, and any other Employer; the Committee may require such Participant, as a condition precedent to such payment, to execute
a receipt and release to such effect. 

        9.4  California Law. To the extent not preempted by Federal Law, the Plan shall be construed, administered, and governed in
all respects under and by laws of the State of California, without regard to any conflict of laws provisions. If any provisions of this instrument shall be held by a court of competent jurisdiction to
be invalid or unenforceable, the remaining provisions hereof shall continue to be fully effective. 

        9.5  Headings. Headings and subheadings in this Plan are inserted for convenience or reference only and are not to be
considered in the construction of the provisions hereof. 

        9.6  Successors and Assigns. The Plan shall inure to the benefit of, and be binding upon, the parties hereto and their
successors and assigns; provided, however, that the amounts credited to the Accounts of a Participant shall not be assignable or transferable, and any purported transfer, assignment, encumbrance, or
attachment shall be void. 

        9.7  Intent. The Plan is to be construed as a plan maintained to provide deferred compensation to a "select group of
management or highly compensated employees" within the meaning of Section 201(2) of ERISA. The Plan is intended to be exempt from the participation, vesting, funding, and fiduciary
requirements of Title I of ERISA, to the fullest extent permitted under the law. The Plan shall at all times be "unfunded" within the meaning of ERISA and the Code. 

        9.8  Gender and Number. Where the context permits, words in any gender shall include any other gender, words in the singular
shall include the plural, and the plural shall include the singular. 

        IN WITNESS WHEREOF, the Bank has caused these presents to be executed by its duly authorized officers this 14th day of
August, 1996. 

MID-STATE
BANK 

By
/s/ Carrol R. Pruett, President 

By
/s/ James G. Stathos, Assistant Secretary 

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EXHIBIT 10.2

FURTHER AMENDMENTS TO DEFERRED COMPENSATION PLAN (As restated on July 1, 1996)

MID-STATE BANK DEFERRED COMPENSATION PLAN AMENDED AND RESTATED JULY 1, 1996

ARTICLE 1 DEFINITIONS

ARTICLE 2 PARTICIPATION

ARTICLE 3 ADMINISTRATION OF PLAN

ARTICLE 4 DEFERRED COMPENSATION POOL

ARTICLE 5 ALLOCATIONS

ARTICLE 6 VESTING

ARTICLE 7 PAYMENT OF DEFERRED COMPENSATION

ARTICLE 8 AMENDMENT AND TERMINATION

ARTICLE 9 MISCELLANEOUSQuickLinks
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EXHIBIT 10.4    
  

 
  FIRST AMENDMENT TO
  CHANGE IN CONTROL AGREEMENT    
  

        THIS FIRST AMENDMENT TO THE CHANGE IN CONTROL AGREEMENT (the "First Amendment") is entered into as of January 1,
2001, by Mid-State Bank, a banking company organized under the laws of California ("Company"), located in Arroyo Grande, California, and Carrol R. Pruett ("Executive"). 

        WHEREAS, Company and Executive entered into a Change in Control Agreement dated as of November 12, 1997 (the "Agreement"); 

        WHEREAS, Executive intends effective today to cease drawing a salary as an officer and employee of the Company and Mid-State Bancshares
("Bancshares") but will remain the Chairman of the Board of the Company, the Chairman of the Board and Chief Executive Officer of Bancshares and director and Chief Executive Officer of Mid-Coast Land,
a subsidiary of the Company ("Executive's Change of Status"); 

        WHEREAS, the Board of Directors (i) recognizes the unique contribution of Executive to the development of the Company and Bancshares, (ii)
believes that his knowledge and expertise relating to the Company and Bancshares would be critical to any successful change in control of the Company and (iii) wants to ensure his continued efforts in
the event of any change in control of the Company; 

        WHEREAS, the parties wish to make certain changes and amendments to the Agreement and the Board of Directors of the Company has approved
such changes and this First Amendment; 

        NOW, THEREFORE, in consideration of the premises and mutual promises of the parties, the Company and Executive agree as follows: 

	1.
	The
first sentence of paragraph (ii) of Section 1 is amended in full to read as follows: 

        "(ii)
In the event that an agreement is reached for, or that a Person (as hereinafter defined) commences a Change in Control (as hereinafter defined), you agree that you will remain in
the employ of the Company and will continue to render the services contemplated in the recitals to this Amendment and all the other services that you have heretofore customarily performed until such
Change in Control has occurred or is abandoned or terminated." 

	2.
	Section
2 is amended by deleting the last sentence of the Section and by adding the following two sentences: 

"This
Agreement shall terminate if you or the Company terminate your employment prior to a Change in Control. Notwithstanding the preceding sentence, Executive's Change in Status will not constitute a
termination of this Agreement." 

	3.
	Section
3 is amended in full to read as follows: 

"Change
in Control" means a change, after January 1, 1998, in control of the Company of a nature that would be required to be the subject of prior approval by (A) the Federal Reserve Board pursuant to
the Bank Holding Company Act of 1956, as amended, (B) the Federal Deposit Insurance Corporation under the Change In Bank Control Act, (C) the appropriate federal bank regulatory agency under the Bank
Merger Act or (D) the California Department of Financial Institutions pursuant to provisions of the California Financial Code; provided, that without limitation, and without consideration of
regulatory exemptions from prior approval, such a Change in Control will be deemed to have occurred if and when any of the following occur: (i) there is a transfer, voluntarily or by hostile takeover
or proxy contest, operation of law or otherwise, of control of the Company, (ii) individuals, who were members of the Board of Directors of the Company immediately prior to a meeting of the
shareholders of the Company which meeting involved a contest for the election of directors, do not constitute a majority of the Board of Directors of the Company following such election or meeting,
(iii) an acquisition, directly or indirectly, of more than 25% of the outstanding shares of any class of voting securities of the Company by any Person, (iv) a merger, consolidation or sale of all, or 

substantially all, of the assets of the Company, or (v) there is a change, during any period of two consecutive years, of a majority of the Board of Directors of the Company as constituted as of the
beginning of such period, unless the election of each director who is not a director at the beginning of such period was approved by a vote of at least two-thirds of the directors then in office who
were directors at the beginning of such period. If any of the approvals referred to in (A)-(D), above, shall relate to a change in control of Bancshares or any of the events or circumstances described
in (i)-(v), above, shall occur to or be applicable to Bancshares, then such change in control shall be deemed for all purposes of this Agreement to also be a "Change in Control" of the Company." 

	4.
	Section
4 is amended in full to read as follows: 

"If
any of the events described in Section 3 hereof constituting a Change in Control shall have occurred, you shall be entitled to the benefits provided in Section 5 hereof" 

	5.
	Section
5 is amended in full to read as follows: 

        "5. Compensation upon Change in Control of the Company

        (i)    Within
30 days following the occurrence of a Change in Control, you shall be paid by the Company as cash compensation an amount equal to two (2) times the sum of (A)
your "annual" salary, and (B) your "annual" bonus, and (C) your "annual" deferred compensation pursuant to the Mid-State Bank Deferred Compensation Plan. For purposes of this paragraph (i), your
"annual" salary, bonus and deferred compensation shall be equal to the average of such amounts for the years 1998, 1999, and 2000. 

        (ii)  Upon
the occurrence of a Change in Control, the Company shall 

maintain
in full force and effect, for the continued benefit of you and your dependents for a period terminating on the earliest of (a) three years after the Change in Control, (b) the commencement
date of equivalent benefits from a new employer or (c) your normal retirement date under the terms of any retirement plan, all insured and self insured employee welfare benefits plans in which you
were entitled to participate immediately prior to the Change in Control, provided that your continued participation is possible under the general terms and provisions of such plans (and any applicable
funding media) and you continue to pay an amount equal to your regular contribution under such plans for such participation. If, at the end of three years after the Change in Control, you have not
reached your normal retirement date and you have not previously received or are not then receiving equivalent benefits from a new employer, the Company shall arrange, at its sole cost and expense, to
enable you to convert your and your dependents' coverage under such plans to individual policies or programs upon the same terms as employees of the Company may apply for such conversions. In the
event that your participation in any such plans is bared, the Company, at its sole cost and expense, shall arrange to have issued for the benefit of you and your dependents individual policies of
insurance providing benefits substantially similar (on an after-tax basis) to those which you otherwise would have been entitled to receive under such plans pursuant to this paragraph (ii) or, if such
insurance is not available at a reasonable cost to the Company, the Company shall otherwise provide you and your dependents with equivalent benefits (on an after-tax basis). You shall not be required
to pay any premiums or other charges in an amount greater than that which you would have paid in order to participate in the plans. 

        (iii)  Except
as specifically provided in paragraph (ii) above and in Section 8, the mount of any payment provided for in this Section 5 shall not be reduced, offset or
subject to recovery by the other party hereto." 

	6.
	The
second sentence of paragraph (i) of Section 6 is amended in full to read as follows: 

        "Failure
of such Person to furnish such assent by the later of (A) three (3) business days prior to the time such Person becomes a Successor (as hereinafter defined) or (B) two (2)
business days after such Person receives a written request to so assent shall result in the amounts payable under paragraph (i) of Section 5 being immediately due and payable." 

	7.
	Section
8 is amended in full to read as follows: 

        "8. Taxes.

        (i)    All
payments to be made to you under this Agreement will be subject to required withholding of federal, state and local income and employment taxes. 

        (ii)  In
the event that any payment or benefit (within the meaning of Section 280G(b)(2) of the Internal Revenue Code, as amended (the "Code")), to the Executive or for his
benefit paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise in connection with, or arising out of, his employment with the Company or a Change in
Control (including the accelerated exercise of any stock options) (any such payment or benefit being a "Payment" or "Payments"), would be subject to the excise tax imposed by Section 4999 of the Code
or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as
the "Excise Tax"), then the Executive will be entitled to receive an additional payment (a "Gross-Up Payment") in an amount equal to the total Excise Tax imposed on the Executive as a result of such
Payments (including the Excise Tax reimbursement due pursuant to this sentence and the Excise Taxes on any federal and state tax reimbursements due pursuant to the next subsection). 

        (iii)  If
Company is obligated to pay the Executive pursuant to the preceding subsection, Company also shall pay the Executive an amount equal to the "total presumed federal
and state taxes" that could be imposed on the Executive with respect to the Excise Tax reimbursements due to the Executive pursuant to the preceding subsection and the federal and state tax
reimbursements due to the Executive pursuant to this sentence. For purposes of the preceding sentence, the "total presumed federal and
state taxes" that could be imposed on the Executive shall be conclusively calculated using a combined tax rate equal to the sum of (a) the highest individual income tax rate in effect under (i)
Federal tax law and (ii) the tax laws of the state in which the Executive resides on the date that the payment under this Section 8 is computed and (b) the hospital insurance portion of FICA. 

        (iv)  No
adjustments will be made in this combined rate for the deduction of state taxes on the federal return, the loss of itemized deductions or exemptions, or for any
other purpose for paying the actual taxes. Executive shall be responsible for paying the actual taxes. 

        (v)  An
initial determination as to whether a Gross-Up Payment is required pursuant to this Agreement and the amount of such Gross-Up Payment shall be made at the Company's
expense by Arthur Andersen LLP or by any successor accounting firm appointed by the Company prior to any Change in Control (the "Accounting Firm"). The Accounting Firm shall provide its determination
(the "Determination"), together with detailed supporting calculations and documentation to the Company and the Executive within five days after a Date of Termination or at such other time as requested
by the Company or by the Executive (provided the Executive reasonably believes that any of the Payments may be subject to the Excise Tax) and if the Accounting Firm determines that no Excise Tax is
payable by the Executive with respect to a Payment or Payments, it shall furnish the Executive with an opinion reasonably acceptable to the Executive that no Excise Tax will be imposed with respect to
any such Payment or Payments. Within ten days of the delivery of the Determination to the Executive, the Executive shall have the right to dispute the Determination (the "Dispute"). The Gross-Up
Payment, if any, as determined pursuant to this Section 8 shall be paid by the Company to the Executive within five days of the receipt of the Accounting Firm's determination. The existence of the
Dispute shall not in any way affect the Executive's right to receive the Gross-Up Payment in accordance with the Determination. Upon the final resolution of a Dispute, the Company shall promptly pay
to the Executive any additional amount required by such resolution. If there is no Dispute, the Determination shall be binding, final and conclusive upon the Company and the Executive subject to the
application of Section 8(vi) below. 

        (vi)  Notwithstanding
anything contained in this Agreement to the contrary, in the event that according to the Determination, an Excise Tax will be imposed on any Payment or
Payments, the 

Company shall pay to the applicable government taxing authorities as Excise Tax withholding, the amount of the Excise Tax that the Company has actually withheld from the Payment or Payments." 

	8.
	Capitalized
terms used herein and not otherwise defined shall have the same meaning as set forth in the Agreement.

	9.
	This
First Amendment may be entered into in one or more counterparts, all of which shall be considered one and the same instrument, and it shall become effective when one or more
counterparts have been signed by each of the Parties and delivered to the other Parties, it being understood that all Parties need not sign the same counterpart.

	10.
	Except
as herein amended, the Agreement shall remain in full force and effect.

	11.
	This
Fist Amendment shall be governed by and construed in accordance with the laws of the Sate of California. 

        WITNESS, the signatures of Bank and Executive as of the date set forth above 

MID-STATE
BANK 

By:
/s/ James G. Stathos, Executive Vice President 

By:
/s/ Carrol R. Pruett 

QuickLinks

EXHIBIT 10.4

FIRST AMENDMENT TO CHANGE IN CONTROL AGREEMENT

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