Document:

Amended and Restated Employment Agreement

 Exhibit 10.1 
  
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
  
 THIS AMENDED AND RESTATED AGREEMENT (the “Agreement”) is made and entered into as of January 1, 2006
(the “Effective Date”) by and between PLACER SIERRA BANK, a California banking corporation (“Bank”), PLACER SIERRA BANCSHARES, a California corporation (the “Company”) and RANDALL REYNOSO (“Employee”)
(collectively sometimes referred to as the “Parties”): 
  
 WHEREAS, the Parties desire to enter into this amended and restated agreement for the purpose of retaining Employee’s services as President and Chief Operating Officer of Company and Bank; and 
  
 WHEREAS, the Parties intend this Agreement to supersede any and all
previous employment agreements between the Employee and Bank or between Employee and Company (and each of its parent companies, shareholders, subsidiaries, divisions and affiliates), if any; and 
  
 WHEREAS, the term “Company” as used herein shall refer to
both the Company and the Bank as applicable. 
  
 NOW,
THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS: 
  
 1.
Employment and Duties. Employee is hereby employed by Bank as President and Chief Operating Officer of Bank and is hereby employed by Company as President and Chief Operating Officer of Company. Employee shall be responsible for
performing such duties as are customarily and ordinarily performed by the president and chief operating officer of a bank and a bank holding company. Employee will also perform such duties as he may, from time to time, be called upon to assist
companies affiliated with Bank, and such other attendant duties as he may, from time to time, be reasonably requested to perform by the Board of Directors of Company (the “Board”). In connection with Employee’s employment as President
and Chief Operating Officer of Bank, Employee’s duties shall include, if so elected, serving without compensation on the Board of Directors of the Bank. 
  
 2. Extent of Services. 
  
 (a) Exclusive Employment. Employee shall devote his full time, ability and attention to the business of Company and its
parent companies, subsidiaries, divisions and affiliates, during the Employment Term, and shall neither directly nor indirectly render any services of a business, commercial or professional nature to any other person, firm, corporation or
organization for compensation without the prior written consent of the Board of Directors of the Company. 
  
 (b) Employee Investment Activities. Nothing contained herein shall be construed as preventing Employee from
(i) investing his personal assets in businesses which do not compete with Company in such form or manner as will not require any services on the part of Employee in the operation or the affairs of the companies in which such investments are
made and in which his participation is solely that of an investor, (ii) purchasing securities in any corporation whose securities are regularly traded provided that such purchase shall not result in Employee collectively owning beneficially at
any time five percent or more of the equity securities of any corporation engaged in a business competitive to that of Company, and (iii) participating in conferences, preparing or publishing papers or books or teaching so long as Company
approves of such activities prior to Employee’s engaging in them. 
  
 3. Term of Employment. Subject to prior termination of this Agreement as hereinafter provided in section 5, Company hereby employs Employee, and Employee hereby accepts employment with Company and Bank, for a period of three
(3) years beginning on the Effective Date and ending on the third anniversary of the Effective Date (the “Initial Employment Term”). The Initial Employment Term shall be extended automatically for additional 1 year periods (each a
“Renewal Term”), unless written notice that this Agreement will not be extended is given by either Party to the other at least sixty (60) days prior to the expiration of the Initial Employment Term or any Renewal Term. As used herein,
“Employment Term” means the Initial Employment Term together with any Renewal Terms. 

 4. Compensation and Benefits. In consideration of Employee’s services during the
Employment Term, Company agrees to compensate Employee, subject to such limitations as may exist under any federal or state banking law or regulation, as follows: 
  
 (a) Base Compensation. Employee shall receive base compensation of $275,000 per year ending on
December 31 (hereinafter the “Base Salary”), less payroll taxes and withholding required by federal, state or local law and any additional withholding to which Employee agrees in writing. Said Base Salary shall be payable in
semi-monthly installments in accordance with Company’s normal payroll procedures. The Board shall review the Base Salary not less than sixty (60) days prior to January 1, 2005, and thereafter not less than sixty (60) days prior
to each new calendar year, and shall determine, in its sole, absolute and unreviewable discretion, whether to increase the Base Salary for the subsequent twelve (12) months of the Employment Term. Any increase in Base Salary so determined by
the Board shall become effective as of January 1 of the respective calendar year. The Base Salary shall be prorated for any partial year in which this Agreement is in effect. 
  
 (b) Executive Incentive Plan. The Employee shall be entitled to participate in an Executive
Incentive Plan, in accordance with the terms and conditions of said plan, as Bank or Company, in its sole and absolute discretion, may establish from time to time. 
  
 (c) General Expenses. Company shall, upon submission and approval of written statements and
bills in accordance with the then regular procedures of Company, reimburse Employee for any and all reasonable necessary, customary and usual expenses incurred by him while traveling for or on behalf of Company, and any and all other necessary,
customary or usual expenses (including entertainment and dues for membership in the Sutter Club) incurred by Employee for or on behalf of Company in the normal course of business, as determined to be appropriate by Company. 
  
 (d) Health, Life and Disability
Insurance. Company shall provide for Employee’s participation in group medical, dental, vision, life and disability insurance benefits available under the group insurance programs maintained by Company for its employees. The
amount paid by Company for such group medical, dental, vision, life and disability insurance for Employee shall be an amount equal to that portion paid by Company for each of its employees in accordance with its usual and customary practices.
Employee shall have the right in Employee’s discretion, to designate the beneficiary or beneficiaries of any such insurance. Company reserves the right to modify and amend such benefits from time to time. As provided under the Consolidated
Omnibus Budget Reconciliation Act of 1985 (“COBRA”) respecting continuation of any insurance coverage, Employee shall, upon a loss of any such coverage for himself under Company’s health, dental, and/or vision plans (if any) resulting
from (1) termination of Employee’s employment (for any reason other than for gross misconduct) or (2) a reduction in his hours, be entitled to exercise his COBRA rights. Employee shall pay all premiums for any such continuation
coverage(s) elected by Employee. 
  
 (f)
Automobile Allowance. During the Employment Term, Employee shall be entitled to an automobile allowance in the amount of $900 per month (less payroll taxes and withholding required by federal, state or local law). Company shall also
reimburse Employee for monthly parking charges incurred by Employee. In addition, Company shall pay the amounts charged by Employee for fuel for business related travel on a credit card provided by Company to Employee. Except for this automobile
allowance, parking expense, and payment of fuel charges, Company shall not be obligated to pay any other expenditure with respect to the ownership or operation of Employee’s automobile, and Employee will be responsible for all out-of-pocket
automobile expenses, including, but not limited to, registration, insurance, repairs, and maintenance. Employee shall procure and maintain an automobile liability insurance policy on the automobile, with coverage including Employee for at least
$100,000 for bodily injury or death to any one person, $300,000 for bodily injury or death in any one accident, and $50,000 for property damage in any one accident. Company shall be named as an additional insured and Employee shall provide Company
with copies of policies evidencing insurance and Company’s inclusion as an additional insured. 
  
 (g) Vacation. Employee shall be entitled to four weeks (20 days) paid vacation leave per year, which shall accrue on a daily
basis. Such vacation leave shall be taken at such time or times as are 

  

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mutually agreed upon by Employee and the Board and in accordance with Company’s vacation leave policy, provided, that at least two (2) weeks of
such vacation shall be taken consecutively. Employee acknowledges that the requirement of two (2) consecutive weeks of vacation is required by sound banking practice. For each calendar year, the Board shall decide, in its discretion, either
(1) to pay Employee for any unused vacation time for such calendar year or (2) to carry over any unused vacation time for such calendar year to the next calendar year, provided, however, that Employee shall not accrue additional vacation
time at any time that the Employee has accrued and unused vacation time of seven (7) weeks. 
  
 (i) Other Benefits. Employee shall be entitled to participate during the Employment Term in all employee benefit, welfare
and other plans, practices, policies and programs generally applicable to similarly situated employees of Company as are in effect from time to time, in accordance with the applicable terms and conditions thereof. Company reserves the right to
modify and amend such benefits, plans, practices, policies and programs from time to time, 
  
 5. Termination of Agreement. This Agreement may be terminated with or without cause during the Employment Term in accordance with this section 5. 
  
 (a) Termination for Good Reason. Employee may
terminate this Agreement for “Good Reason”. “Good Reason” shall mean the occurrence (without Employee’s express written consent) of any one of the following acts by Company or its successor: 
  
 (i) The assignment to Employee of duties inconsistent
with Employee’s status as President and Chief Operating Officer, or a substantial adverse alteration in the nature or stature of Employee’s responsibilities from those described herein, which is not cured by Company within seven
(7) business days after Employee delivers written notice to Company of such assignment or alteration; 
  
 (ii) A reduction by Company of Employee’s then current Base Salary; 
  
 (iii) Any material breach by Company of any
provisions of this Agreement, which breach is not cured by Company within seven (7) business days after Employee delivers written notice of such breach to Company or Company, as applicable. 
  
 (iv) If Employee receives written notice that this
Agreement will not be extended for the one-year period as described in Section 3 hereof. 
  
 In the event that Employee terminates this Agreement for Good Reason, Employee shall be eligible to receive severance pay consisting of a single sum severance payment equal to twenty-four (24) months of his then
current Base Salary, as defined in section 4(a), plus any incentive bonus prorated, if necessary, for a partial year of employment (less payroll taxes and withholding required by any federal, state or local law, any additional withholding to which
Employee has agreed, and any outstanding obligations owed by the Employee to Company) provided that Company shall be obligated to pay Employee’s incentive bonus under the Company’s Executive Incentive Compensation Plan at the same time as
it makes payment of any other incentive bonuses paid to other officers of Company under such plan and shall not be obligated to make such payment to Employee at any earlier time. No portion of such severance pay shall be payable until eight days
after delivery to Company of a duly executed release in the form of Exhibit “A” hereto (“Release”). Employee shall not deliver the executed Release to Company prior to the date his employment with Company terminates.
Notwithstanding the foregoing, the lump sum payment equal to twenty-four months of the Base Salary and the prorated incentive bonus must be paid (if at all) on the first day of the seventh (7th) calendar month following the calendar month in which employment termination occurs and all conditions precedent to such payment must be fulfilled by
that time. 
  
 Such severance pay shall constitute liquidated
damages in lieu of any and all claims by Employee against Company and each of its parent companies, shareholders, subsidiaries, divisions and affiliates, and each of their respective directors, partners, officers, employees and agents, arising out
of this Agreement or out of the employment relationship or termination of the employment relationship between Employee and Company, and shall be in full and complete satisfaction of any and all rights which Employee may enjoy 

  

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hereunder, and is expressly conditioned upon receipt by Company of an executed, unconditional Release from Employee in the form of Exhibit “A”.

  
 In the event that Employee terminates this Agreement for Good
Reason, Employee also shall be entitled to receive (i) those benefits, if any, that have vested by operation of state or federal law or under any written term of a plan (“Vested Benefits”), and (ii) health care coverage
continuation rights under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA Rights”). 
  
 (b) Termination Upon Change in Control. “Change in Control” shall mean the occurrence of any of the following
events: 
  
 (i) The consummation of a plan
of dissolution or liquidation of Company; 
  
 (ii) The consummation of a plan of reorganization, merger or consolidation involving Company, except for a reorganization, merger or consolidation where (A) the shareholders of Company immediately prior to such reorganization,
merger or consolidation own directly or indirectly more than 50% of the combined voting power of the outstanding voting securities of the corporation resulting from such reorganization, merger or consolidation (the “Surviving Corporation”)
and the individuals who were members of the Board immediately prior to the execution of the agreement providing for such reorganization, merger or consolidation constitute at least 50% of the members of the board of directors of the Surviving
Corporation, or a corporation beneficially directly or indirectly owning a majority of the voting securities of the Surviving Corporation, or (B) Company is reorganized, merged or consolidated with a corporation in which any shareholder owning
at least 50% of the combined voting power of the outstanding voting securities of Company immediately prior to such reorganization, merger or consolidation, owns at least 50% of the combined voting power of the outstanding voting securities of the
corporation resulting from such reorganization, merger or consolidation; 
  
 (iii) The sale of all or substantially all of the assets of Company to another person or entity; 
  
 (iv) The acquisition of beneficial ownership of stock representing more than fifty percent (50%) of the voting power of
Company then outstanding by another person or entity. 
  
 In the
event of a Change in Control and, during the twelve month period following such Change in Control, Employee terminates employment with Company (pursuant to section 5(e) below) following a reduction in the Employee’s duties or title, Employee
shall be eligible to receive severance pay consisting of a single sum severance payment equal to twenty-four (24) months of his then current Base Salary, as defined in section 4(a), plus any incentive bonus prorated, if necessary, for a partial
year of employment (less payroll taxes and withholding required by any federal, state or local law, any additional withholding to which Employee has agreed, and any outstanding obligations owed by the Employee to Company) provided that Company shall
be obligated to pay Employee’s incentive bonus under the Company’s Executive Incentive Compensation Plan at the same time as it makes payment of any other incentive bonuses paid to other officers of Company under such plan and shall not be
obligated to make such payment to Employee at any earlier time. No portion of such severance pay shall be payable until eight days after delivery to Company of a duly executed Release in the form of Exhibit “A” hereto. Employee shall not
deliver the executed Release to Company prior to the date his employment with Company terminates. Notwithstanding the foregoing, the lump sum payment equal to twenty-four months of the Base Salary and the prorated incentive bonus must be paid (if at
all) on the first day of the seventh (7th) calendar month following the calendar month in which employment
termination occurs and all conditions precedent to such payment must be fulfilled by that time. 
  
 In the event of a Change in Control and, during the twelve month period following such Change in Control, Employee terminates employment with Company
(pursuant to section 5(e) below) following a reduction in the Employee’s duties or title, then any and all stock options previously granted to the Employee under any stock option plan of the Company and held on the date of termination shall
become fully vested and shall be exercisable as set forth in the terms of the applicable option agreement for options outstanding as of the date of this agreement and shall be exercisable for a period of three (3) years after the 

  

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date of termination for options granted after the date of this agreement. No stock options shall become fully vested pursuant to this paragraph until eight
days after delivery to the Company of a duly executed Release in the form of Exhibit “A” hereto. 
  
 Such severance pay shall constitute liquidated damages in lieu of any and all claims by Employee against Company and each of its parent companies,
shareholders, subsidiaries, divisions and affiliates, and each of their respective directors, partners, officers, employees and agents, arising out of this Agreement or out of the employment relationship or termination of the employment relationship
between Employee and Company, and shall be in full and complete satisfaction of any and all rights which Employee may enjoy hereunder, and is expressly conditioned upon receipt by Company of an executed, unconditional Release from Employee in the
form of Exhibit “A”. 
  
 In the event that Employee is
terminated pursuant to this section 5(b), Employee shall be entitled to receive Vested Benefits, as defined hereinabove, and COBRA rights, as defined hereinabove. 
  
 (c) Early Termination by Company Without Cause. This Agreement and Employee’s employment
may be terminated by Company without cause, for any reason whatsoever or for no reason at all, in the sole, absolute and unreviewable discretion of Company, upon written notice by Company to Employee. 
  
 In the event that Employee is terminated by Company without cause, Employee
shall be eligible to receive severance pay consisting of a single sum severance payment equal to twenty-four (24) months of his then current Base Salary, as defined in section 4(a), plus any incentive bonus prorated, if necessary, for a partial
year of employment (less payroll taxes and withholding required by any federal, state or local law, any additional withholding to which Employee has agreed, and any outstanding obligations owed by the Employee to Company) provided that Company shall
be obligated to pay Employee’s incentive bonus under the Company’s Executive Incentive Compensation Plan at the same time as it makes payment of any other incentive bonuses paid to other officers of Company under such plan and shall not be
obligated to make such payment to Employee at any earlier time. No portion of such severance pay shall be payable until eight days after delivery to Company of a duly executed Release in the form of Exhibit “A” hereto. Employee shall not
deliver the executed Release to Company prior to the date his employment with Company terminates. Notwithstanding the foregoing, the lump sum payment equal to twenty-four months of the Base Salary and the prorated incentive bonus must be paid (if at
all) no later than 10 weeks after the end of the calendar year in which employment termination occurs and all conditions precedent to such payment must be fulfilled by that time. 
  
 Such severance pay shall constitute liquidated damages in lieu of any and all claims by Employee against Company and each of
its parent companies, shareholders, subsidiaries, divisions and affiliates, and each of their respective directors, partners, officers, employees and agents, arising out of this Agreement or out of the employment relationship or termination of the
employment relationship between Employee and Company, and shall be in full and complete satisfaction of any and all rights which Employee may enjoy hereunder, and is expressly conditioned upon receipt by Company of an executed, unconditional Release
from Employee in the form of Exhibit “A”. 
  
 In the
event that Employee is terminated pursuant to this section 5(c), Employee shall also be entitled to receive Vested Benefits, as defined hereinabove, and COBRA rights, as defined hereinabove. 
  

 5 

 (d) Early Termination by Company for Cause. This Agreement and
Employee’s employment may be terminated for cause by Company upon written notice to Employee, and Employee shall not be entitled to receive Base Salary or any other compensation or other benefits for any period after termination for cause.
Employee understands and agrees that his satisfactory performance of this Agreement requires conformance with reasonable standards of diligence, competence, skill, judgment and efficiency of a person holding a position that is analogous to the
position of president and chief operating officer of a bank similar to Bank, and as prescribed by California and federal banking laws and regulations, and that failure to conform to such standards is cause for termination of this Agreement by
Company. Termination for cause pursuant to this section 5(d) shall include, but is not be limited to, the following: 
  
 (i) Any act of material dishonesty; 
  
 (ii) Any material breach of this Agreement; 
  
 (iii) Any breach of a fiduciary duty (involving personal profit); 
  
 (iv) Any habitual neglect of, or habitual negligence
in carrying out, those duties contemplated under Sections 1 and 2 of this Agreement; 
  
 (v) Any willful violation of any law, rule or regulation, which, by virtue of bank regulatory restrictions imposed as a result
thereof, would have a material adverse effect on the business or financial prospects of Company; 
  
 (vi) Any conviction of any felony which may be reasonably interpreted to be harmful to Company’s reputation; 
  
 (vii) Any failure by Employee to qualify at any time
during the Employment Term for any fidelity bond as described in section 7 of this Agreement; 
  
 (viii) The requirement to comply with any final cease-and-desist order or written agreement with any applicable state or federal
bank regulatory authority which requests or orders Employee’s dismissal or limits Employee’s employment duties; 
  
 (ix) Any conduct which constitutes unfair competition with Company or any parent company, shareholder, subsidiary, division or
affiliate; or 
  
 (x) The inducement of
any client, customer, agent or employee to break any contract or terminate the agency or employment relationship with Company or any parent company, shareholder, subsidiary, division or affiliate. 
  
 Termination for cause by Company shall not constitute a waiver of any
remedies that may otherwise be available to Company under law, equity, or this Agreement. 
  
 In the event that Employee is terminated pursuant to this section 5(d), Employee shall be entitled to receive Vested Benefits, as defined hereinabove, and COBRA rights, as defined hereinabove. 
  
 (e) Early Termination by Employee. Employee
(for other than Good Reason as defined in section 5(a)) may terminate this Agreement upon 90 days’ written notice to Company. Employee shall continue to perform his duties under this Agreement until the end of such 90 day period, provided
however, that Company may, at its option, immediately terminate this Agreement, upon notice to Employee, and in the event that Company so elects to terminate this Agreement, Company shall continue to pay Employee his normal compensation through the
end of such 90 day period. Thereafter, Employee shall not be entitled to receive compensation or other benefits under this Agreement, provided, however, that Employee shall be entitled to receive Vested Benefits, as defined hereinabove, and COBRA
rights, as defined hereinabove. 
  
 (f)
Early Termination Upon Disability. This Agreement and all benefits hereunder shall terminate if a Disability has occurred as defined below and Employee is not able, as a result of a Disability, to return to full-time duties
notwithstanding reasonable accommodation by Company to Employee’s known physical or mental disability, solely in accordance with, and to the extent required by, the Americans with Disabilities Act, 29 U.S.C. Sections 12101-213 or any other
state or local law governing the employment of disabled persons (the “ADA”) provided such accommodation would not impose an undue hardship on the operation of Company’s business or a direct threat to the Employee or others pursuant to
the ADA. For purposes of this Agreement, “Disability” means a 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 and
which (i) renders Executive unable to engage in any substantial gainful activity, or (ii) results in Executive receiving income replacement benefits for a period of not less than three (3) months under any policy of long-term
disability insurance maintained by the Company for the benefit of its employees. “Disability” 

  

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shall be interpreted in a manner consistent with Section 409A of the Code. In the event of termination of this Agreement by Company pursuant to this
section 5(f): 
  
 (i) Employee shall be
entitled to disability benefits provided by the disability insurance coverage identified in section 4(e) of this Agreement; and 
  
 (ii) All other benefits provided for under this Agreement shall cease as of the date of termination (except insofar as the group
insurance benefits provided under section 4(e) may be continued or convertible by Employee as provided under COBRA or other laws applicable at the time of termination). 
  
 (iii) Employee shall also be entitled to receive Vested Benefits, as defined hereinabove. 

 
 For purposes of this Agreement, physical or mental disability shall mean
the inability of Employee to fully perform under this Agreement for a continuous period of ninety (90) days, as determined in the case of physical disability by a physician, or in the case of mental disability by a psychiatrist, both of whom
must be licensed to practice medicine in California and are to be selected with the approval of Company and Employee. Upon demand by Company, Employee shall act promptly to select such physician or psychiatrist jointly with Company and shall consent
to undergo any reasonable examination or test. Recurrent disabilities will be treated as separate disabilities if they result from unrelated causes or if they result from the same or related cause or causes and are separated by a continuous period
of at least twelve (12) full months during which Employee was able to perform his duties hereunder equal to at least eighty percent (80%) of his capacity prior to disability. Otherwise, recurrent disabilities will be treated as a
continuation of previous disabilities for the purpose of determining the limitations established in this Section. 
  
 (g) Death During Employment. This Agreement and all benefits hereunder shall terminate immediately upon the death of
Employee, except that Employee’s heirs or estate shall also be entitled to receive Vested Benefits, as defined hereinabove, and Employee’s dependants may be entitled to COBRA rights, as defined hereinabove. 
  
 6. Survival of Obligations. The provisions of Sections 5, 9,
10, 11, 12, 13, 15, 17, 24 and 27 of this Agreement shall survive Employee’s termination of employment and the termination of this Agreement. Other provisions of this Agreement shall survive any termination of Employee’s employment to the
extent necessary to the intended preservation of each Party’s respective rights and obligations. 
  
 7. Fidelity Bond. Employee agrees that he will furnish all information and take any other steps necessary to enable Company to obtain or
maintain a fidelity bond conditional on the rendering of a true account by Employee of all moneys, goods, or other property which may come into the custody, charge or possession of Employee during the Employment Term. The surety company issuing the
bond and the amount of the bond must be acceptable to Company and satisfy all banking laws and regulations. All premiums on the bond are to be paid by Company. If Employee cannot qualify for a fidelity bond at any time during the term of this
Agreement, Company shall have the option to terminate this Agreement immediately, which shall constitute a termination for cause as defined in section 5(d) hereof. 
  
 8. Compliance with Company Policies. Employee agrees to observe and comply with the rules and regulations of
Company respecting the performance of his duties and to carry out and perform orders, directions and policies communicated to him from time to time. Employee agrees to comply with all rules and policies contained in any applicable Employee Handbook
which has been or will be issued by Company. 
  
 9. Certain
Additional Payments by the Company. 
  
 (a) Anything in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any payment or distribution by the Company to or for the benefit of the Employee (whether paid or payable
or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Section 6) (a “Payment”) would be subject to the excise tax imposed by
section 4999 of 

  

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the Code or any interest or penalties are incurred by the Employee 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 Employee shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by the Employee of all
taxes (including any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes and all other related payroll taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Employee retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing provisions of this Section 6(a), if it shall be determined that the Employee is
entitled to a Gross-Up Payment, but that the Payments do not exceed the lesser of (a) 105% of the greatest amount (the “Reduced Amount”) that could be paid to the Employee such that the receipt of Payments would not give rise to any
Excise Tax, or (b) $25,000; then no Gross-Up Payment shall be made to the Employee and the Payments, in the aggregate, shall be equal to the Reduced Amount. 
  
 (b) Subject to the provisions of Section 6(c), all determinations required to be made under this
Section 6, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by such certified public accounting firm reasonably
acceptable to the Employee as may be designated by the Company (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and the Employee within 15 business days of the receipt of notice from the
Employee that there has been a Payment, or such earlier time as is requested by the Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 6,
shall be paid by the Company to the Employee within five days of the later of (i) the due date for the payment of any Excise Tax; and (ii) the receipt of the Accounting Firm’s determination. Any Gross-Up Payment must be paid (if at
all) on the first day of the seventh (7th) calendar month following the calendar month in which employment termination occurs. Any determination by the Accounting Firm shall be binding upon the Company and the Employee. As a result of the
uncertainty in the application of section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made
(“Underpayment”), consistent with the calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to Section 6(c) and the Employee thereafter is required to make a payment of any Excise
Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Employee. 
  
 (c) The Employee shall notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten business days after the Employee is informed
in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Employee shall not pay such claim prior to the expiration of the 30-day period following the date on
which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Employee in writing prior to the expiration of such period that it desires
to contest such claim, the Employee shall: 
  
 (i) give the Company any information reasonably requested by the Company relating to such claim, 
  
 (ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time,
including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company, 
  
 (iii) cooperate with the Company in good faith in order effectively to contest such claim, and 
  
 (iv) permit the Company to participate in any proceedings
relating to such claim; 
  

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 provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and
penalties) incurred in connection with such contest and shall indemnify and hold the Employee harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such
representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 6(c), the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forgo
any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct the Employee to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and the Employee agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided,
however, that if the Company directs the Employee to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Employee, on an interest-free basis and shall indemnify and hold the Employee harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any
extension of the statute of limitations relating to payment of taxes for the taxable year of the Employee with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s
control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service
or any other taxing authority. 
  
 (d) If, after
the receipt by the Employee of an amount advanced by the Company pursuant to Section 6(c), the Employee becomes entitled to receive any refund with respect to such claim, the Employee shall (subject to the Company’s complying with the
requirements of Section 6(c)) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Employee of an amount advanced by the Company
pursuant to Section 6(c), a determination is made that the Employee shall not be entitled to any refund with respect to such claim and the Company does not notify the Employee in writing of its intent to contest such denial of refund prior to
the expiration of 30 days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid.

  
 10. Company Property. All records, financial
statements and similar documents obtained, reviewed or compiled by Employee in the course of the performance by him of services for Company, whether or not confidential information or trade secrets, shall be the exclusive property of Company.
Employee agrees to hold as Company’s property, all memoranda, books, papers, letters, formulas and other data, and all copies thereof and therefrom, in any way relating to Company’s business and affairs, whether made by him or otherwise
coming into his possession, and on termination of his employment, or on demand of Company, at any time to deliver the same to Company. Employee shall have no rights in such documents upon any termination of his employment. 
  
 11. Proprietary Information. 
  
 (a) Employee recognizes and acknowledges that Company
and its parent companies, shareholders, subsidiaries, divisions and affiliates possess trade secrets and other confidential and/or proprietary information concerning their respective business affairs and methods of operation which constitute
valuable, confidential, and unique assets of the business of Company and its parent companies, shareholders, subsidiaries, divisions and affiliates (“Proprietary Information”), which Company and its parent companies, shareholders,
subsidiaries, divisions and affiliates have developed through a substantial expenditure of time and money and which are and will continue to be utilized in the business of Company and its parent companies, shareholders, subsidiaries, divisions and
affiliates and which are not generally known in the trade. As used herein, Propriety Information includes the following: 
  
 (i) Customer lists, including information regarding the identity of clients and client contacts, client accounts, the business
needs and preferences of clients, and information regarding business and contractual arrangements with clients. As used herein, “Customer List” is not limited to physical writings or compilations, and includes information which is
contained in or reproduced from the memory of any employee. 
  

 9 

 (ii) Business plans, objectives and strategies, and marketing plans and
information; 
  
 (iii) Financial
information, sales information and pricing information, including information regarding vendors, suppliers and others doing business with Company, or any parent company, shareholder, subsidiary, division or affiliate thereof; 
  
 (iv) Personal identities and information regarding
skills and compensation of the personnel of Company, or any parent company, shareholder, subsidiary, division or affiliate thereof; 
  
 (v) Company manuals and handbooks, computer programs and data; 
  
 (vi) Any other confidential information which gives Company, or any parent company, shareholder,
subsidiary, division or affiliate thereof, an opportunity to claim a competitive advantage or has economic value. 
  
 (b) During his employment with Company, Employee will not use, copy, transmit or otherwise disclose Company’s Proprietary
Information for any purpose other than for the benefit of Company, and Employee will make all reasonable efforts to protect the confidential nature of such information. Employee will not disclose Company’s Proprietary Information to anyone not
entitled to such disclosure without the advance written permission of the Chairman of the Board. 
  
 (c) Upon termination of his employment, Employee will immediately deliver to Company all of Company’s Proprietary Information.
Employee will not retain any copies of Company’s Proprietary Information after termination of his employment without the express written consent of the Chairman of the Board. 
  
 (d) After termination of his employment, Employee will not use Company’s Proprietary Information
for any purpose, or disclose or communicate the same to any person, firm or corporation for any purpose. 
  
 (e) In the event Employee should receive, during the Employment Term, or thereafter, any subpoena, search warrant or other court
process requiring Employee to produce any documents containing Proprietary Information as defined herein, Employee shall immediately provide a copy of such request to Company. 
  
 (f) Notwithstanding anything in this Agreement to the contrary, information (i) already in the
public domain; (ii) independently developed by the Employee; (iii) obtained from a source not subject to a confidentiality obligation to Company or a third party; or (iv) that becomes public knowledge (other than by acts of the
Employee in violation of this Agreement), shall not be deemed to be Proprietary Information as described in this section 10. 
  
 12. Non-Solicitation. During his employment with Company, and for a period of one year immediately following his employment with Company,
Employee shall not, directly or indirectly, solicit or attempt to solicit any employee of Company, or of any parent company, shareholder, subsidiary, division or affiliate thereof, to terminate his or her employment with said company, or to work for
any other business, person or company. 
  
 12. Equitable
Relief. Employee acknowledges that any breach or threatened breach by his of the provisions of Sections 9, 10 or 11 of this Agreement will result in immediate and irreparable harm to Company, for which there will be no adequate remedy at
law, and that Company will be entitled (subject to section 27) to equitable relief to restrain Employee from violating the terms of these sections, or to compel Employee to cease and desist all unauthorized use and disclosure of the Confidential
Information, without 

  

 10 

 
posting bond or other security. Nothing in this section shall be construed as prohibiting Company from pursuing any other remedies available to it for such
breach or threatened breach, including recovery of damages from Employee. 
  
 13. Property of Others. Employee represents that his performance under this Agreement does not and will not breach any agreement to keep in confidence confidential information or trade secrets, if any,
acquired by Employee in confidence prior to this Agreement. There are no agreements, written or oral, conveying rights in any research conducted by Employee. Employee represents, as part of the consideration for entering into this Agreement, that he
has not brought and will not bring to Company or use in the performance of his responsibilities at Company any equipment, supplies, facility or trade secret information of any current or former employer or organization with which he provided
services which are not generally available to the public, unless he has obtained written authorization for their possession and use. 
  
 14. Non-Competition by Employee. Employee shall not, during his employment with Company, directly or indirectly, either as an employee,
employer, consultant, agent, principal, partner, shareholder, corporate officer, director, or in any other individual or representative capacity, work for, or engage or participate in the business of, any competing company, bank, bank holding
company or financial holding company or financial institution or financial services business without the prior written consent of the Board. 
  
 15. Indemnification. Company shall indemnify Employee, to the maximum extent permitted under the Bylaws of Company and governing laws and
regulations, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by Employee in connection with any threatened or pending action, suit or proceeding to which Employee is
made a party by reason of his position as an officer or agent of Company or by reason of his service at the request of Company, if Employee acted in good faith and in a manner reasonably believed to be in the best interests of Company. If available
at rates determined by Company, in its sole discretion, to be reasonable, Company shall endeavor to apply for and obtain Directors’ and Officers’ Liability Insurance to indemnify and insure Company and Employee from such liability or loss.
Employee shall indemnify Company from and against all costs, expenses (including attorneys’ fees), liability and damages arising out of any act of misconduct, other than actions taken in good faith and in a manner reasonably believed to be in
the best interests of Company, by Employee during the term of this Agreement. 
  
 Notwithstanding the foregoing, in any administrative proceeding or civil action initiated by any federal banking agency, Company may only reimburse, indemnify or hold harmless Employee if Company is in compliance with
any applicable statute, rule, regulation or policy of the Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, or the California Department of Financial Institutions
regarding permissible indemnification payments. 
  
 16.
Breach. Breach by either Party of any of his or its respective obligations under Sections 1, 2, 4, 8, 7, 10, 11, 12, 13, 14 or 15 of this Agreement shall be deemed a material breach of that Party’s obligations hereunder, provided,
however, that no breach of a monetary obligation shall be deemed a material breach until the Party allegedly in breach has failed to cure said breach within seven (7) business days after the aggrieved Party delivers written notice of such
breach to the other Party. 
  
 17. Survival of Agreement in
Event of Merger. This Agreement shall not be terminated by any merger in which Company is not the surviving or resulting corporation, or on any transfer of all or substantially all of Company’s assets. In the event of any such merger or
transfer of assets, the provisions of this Agreement shall be binding on and inure to the benefit of the surviving business entity or the business entity to which such assets shall be transferred. This section shall not serve to diminish
Employee’s rights pursuant to section 5(b) above. 
  
 18.
Tax Consequences. Employee is urged to review with his own tax advisors the federal and state tax consequences of the transactions contemplated by this Agreement. Employee is relying solely on such advisors (if any) and not on any
statements or representations of Company or any of its agents. 
  

 11 

 19. Withholding. All payments provided for hereunder shall be reduced by payroll taxes and
withholding required by any federal, state or local law, and any additional withholding to which Employee has agreed in writing. 
  
 20. Notices. Any notices to be given hereunder by either Party to the other may be effected in writing either by personal delivery or by
mail, registered or certified, postage prepaid with return receipt requested. Notices to Company shall be given to Company at its then current principal office, c/o Chairman of the Board of Directors. Notices to Employee shall be sent to
Employee’s last known personal residence. Notices delivered personally shall be deemed communicated as of actual receipt; mailed notices shall be deemed communicated as of five (5) calendar days after mailing. 
  
 21. Entire Agreement. The Parties expressly agree that this
document constitutes the entire agreement between the Parties with respect to the employment of Employee (excluding only stock option agreements) and contains all of the covenants and agreements between the Parties with respect to such employment.
Company and Employee agree that as of the Effective Date, all prior employment agreements between Employee and Company (and/or any parent company, shareholder, subsidiary, division or affiliate thereof), are hereby canceled, terminated, rescinded
and superceded. Each Party to this Agreement acknowledges that no representations, inducements, promises or agreements, oral or otherwise, have been made by any Party, or anyone acting on behalf of any Party, which are not embodied herein, and that
no other agreement, statement or promise not contained in this Agreement shall be valid and binding. 
  
 22. Amendment. This Agreement may be changed or modified, or any provisions hereof waived, only by a writing signed by the Party against
whom enforcement of any waiver, change or modification is sought. 
  
 23. Severability. In the event that any term or condition contained in this Agreement shall, for any reason, be held by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or non-enforceability shall not affect any other term or condition of this Agreement, but this Agreement shall be construed as if such invalid or illegal or unenforceable term or condition had never been contained herein. 
  
 24. Choice of Law and Forum. This Agreement shall be governed
by and construed in accordance with the laws of the State of California, except to the extent preempted by the laws of the United States. Any action or proceeding brought upon, or arising out of, this Agreement or its termination shall be brought in
a forum located within the State of California, and Company and Employee hereby agree to be subject to service of process in California. 
  
 25. Waiver. The Parties hereto shall not be deemed to have waived any of their respective rights under this Agreement unless the waiver is
in writing and signed by such waiving Party. No delay in exercising any rights shall be a waiver nor shall a waiver on one occasion operate as a waiver of such right on a future occasion. 
  
 26. Interpretation. This Agreement shall be interpreted in accordance with the plain meaning of its terms and
not strictly for or against either of the Parties hereto. Captions and section headings used herein are for convenience and ready reference only and shall not be used in the construction or interpretation thereof. 
  
 27. Arbitration. In the event of any dispute, claim or
controversy between the Employee and Company (or any of Company’s parent companies, shareholders, subsidiaries, divisions and/or affiliates and/or any of its or their respective officers, partners, directors, members, managers, employees,
agents or employees) arising out of this Agreement or the Employee’s employment with Company, Employee and Company agree to submit such dispute, claim or controversy to final and binding arbitration before the American Arbitration Association
(“AAA”) in accordance with the AAA National Rules for the Resolution of Employment Disputes. The claims governed by this arbitration provision include, but are not limited to, claims for breach of contract, civil torts and employment
discrimination such as violation of the Fair Employment and Housing Act, Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act and other employment laws, 
  

 12 

 (a) The arbitration shall be conducted by a single arbitrator selected either by
mutual agreement of the Employee and Company or, if they cannot agree, from an odd-numbered list of experienced employment law arbitrators provided by the American Arbitration Association. Each Party shall strike one arbitrator from the list
alternately until only one arbitrator remains. 
  
 (b) Each Party shall have the right to conduct reasonable discovery, as determined by the arbitrator. 
  
 (c) The arbitrator shall have all powers conferred by law and a judgment may be entered on the award by a court of law having
jurisdiction. The arbitrator shall render a written arbitration award that contains the essential findings and conclusions on which the award is based. The award and judgment shall be binding and final on both Parties. 
  
 (d) Company will pay the arbitrator’s fees and
costs as well as any AAA administrative fees. The Parties shall each pay the fees of their own attorneys and the expenses of their own witnesses. 
  
 (e) This agreement to arbitrate shall continue during Employment Term and thereafter regarding any employment-related disputes.

  
 (f) The Employee and Company
understand that by signing this Agreement, they give up their right to a civil trial and their right to a trial by jury. 
  
 IN WITNESS WHEREOF, this Agreement is entered into as of the Effective Date. 
  

									
	“COMPANY”	 	 	 	“EMPLOYEE”
	PLACER SIERRA BANCSHARES	 	 	 	 
					
	By:	 	/s/    RONALD W. BACHLI        	 	 	 	 	 	/s/    RANDALL REYNOSO        
	 	 	Ronald W. Bachli	 	 	 	 	 	RANDALL REYNOSO
	Title:	 	Chairman of the Board & CEO	 	 	 	 	 	 

  

 13 

 EXHIBIT A 
  

RELEASE AGREEMENT 
  
 This Release Agreement (“Release”) was given to me, RANDALL REYNOSO (“Employee”), this
             day of                 , 200  , by PLACER SIERRA
BANCSHARES, a California corporation (“Company”), At such time as this Release becomes effective and enforceable (i.e., the revocation period set forth below has expired), and assuming such Employee is otherwise eligible for payments under
the terms of that certain Employment Agreement between Employee and Bank dated                 , 2003 (the “Agreement”), Bank agrees to pay
Employee, pursuant to the terms of the Agreement, a single sum severance payment in the amount of $             (less payroll taxes and withholding required by any federal, state or
local law, any additional withholding to which Employee has agreed, and any outstanding obligations owed by the Employee to Bank). Bank further agrees to pay to Employee Employee’s pro rated incentive bonus, if any, to which Employee is
entitled pursuant to the terms of Bank’s Employee Incentive Plan (less payroll taxes and withholding required by any federal, state or local law and any additional withholding to which Employee has agreed), provided that Bank shall be obligated
to pay Employee’s incentive bonus under Bank’s Employee Incentive Compensation Plan at the same time as it makes payment of any other incentive bonuses paid to other officers of Bank under such plan and shall not be obligated to make such
payment to Employee at any earlier time. 
  
 Employee is also
entitled to receive (i) those benefits, if any, that have vested by operation of state or federal law or under any written term of a plan (“Vested Benefits”), and (ii) health care coverage continuation rights under the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended. 
  
 In consideration of the receipt of the promise to pay such amount, Employee hereby agrees, for himself, his heirs, executors, administrators, successors and assigns (hereinafter referred to as the “Releasors”), to fully release
and discharge Bank and each of its parent companies, shareholders, subsidiaries, divisions and affiliates, and each of their respective officers, partners, directors, members, managers, employees and agents, and each of their respective
predecessors, successors, heirs and assigns (hereinafter referred to as the “Releasees”) from any and all claims, suits, causes of action, debts, obligations, costs, losses, liabilities, damages and demands under any federal, state or
local law or laws, or contract, tort or common law, whether or not known, suspected or claimed, which the Releasors have, or hereafter may have, against the Releasees arising out of or in any way related to Employee’s employment (or other
contractual relationship) with Bank and/or the termination of that relationship. The claims released herein include claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Employee Retirement Income
Security Act, the Americans with Disabilities Act, the U.S. Pregnancy Discrimination Act, the U.S. Family and Medical Leave Act, the U.S. Fair Labor Standards Act, the U.S. Equal Pay Act, The Workers Adjustment and Notification Act, the California
Fair Employment and Housing Act, and the California Labor Code. Notwithstanding the foregoing, this Agreement does not waive rights or claims under the Age Discrimination in Employment Act that may arise after the date this Release is executed.

  
 It is understood and agreed that this Release extends to all
such claims and/or potential claims, and that Employee, on behalf of the Releasors, hereby expressly waives all rights with respect to all such claims under California Civil Code section 1542, which provides as follows: 
  
 A general release does not extend to claims which the creditor does not know
or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. 
  
 The monies to be paid to the Employee in this Release are in addition to any sums to which he would be entitled without signing this Release. 

 
 Employee acknowledges that he has read and does understand the provisions
of this Release. Employee acknowledges that he affixes his signature hereto voluntarily and without coercion, and that no promise or inducement has been made other than those set out in this Release and that he executes this Release without reliance
on any representation by any Releasee. 
  

 14 

 Employee understands that this Release involves the relinquishment of his legal rights, and that he has
the right to, and has been given the opportunity to, consult with an attorney of his choice. Employee acknowledges that he has been (and hereby is) advised by Bank that he should consult with an attorney prior to executing this Release. 

 
 This document does not constitute, and shall not be admissible as evidence
of, an admission by any Releasee as to any fact or matter. 
  
 In
case any part of this Release is later deemed to be invalid, illegal or otherwise unenforceable, Employee agrees that the legality and enforceability of the remaining provisions of this Release will not be affected in any way. 
  
 Employee acknowledges that he has been given a period of twenty-one
(21) days from receipt of this Release within which to consider this Release and decide whether or not to execute this Release. If Employee executes this Release at any time prior to the end of the 21 day period, such early execution was a
knowing and voluntary waiver of Employee’s right to consider this Release for at least 21 days, and was due to his belief that he had ample time in which to consider this Release. 
  
 Employee may, within seven (7) days of his execution and delivery of this Release, revoke this Release by a written
document received by Bank on or before the end of the seven (7) day period. The Release will not be effective until said revocation period has expired. No payments will be made hereunder if the Employee revokes this Release. 
  

									
					
	Dated: 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	RANDALL REYNOSO

  

 15Consulting and Non-Solicitation Agreement

 Exhibit 10.2 
  
 CONSULTING AND NON-SOLICITATION AGREEMENT 
  
 THIS CONSULTING AND NON-SOLICITATION AGREEMENT (the “Agreement”) is made and entered into as of this 22nd day of
December, 2005, by and between PLACER SIERRA BANK, a California corporation (“Bank”) and ROBERT H. MUTTERA (“Consultant”) (collectively, the “Parties”). 
  
 RECITALS 
  
 A. The Bank entered into an employment agreement with Consultant effective as of January 1, 2003 and amended as of October 28, 2003 (the
“Employment Agreement”) to act as Executive Vice-President and Chief Credit Officer of the Bank. 
  
 B. The Employment Agreement will expire by its terms as of December 31, 2005. 
  
 C. The Bank desires to obtain the services of Consultant upon expiration of the term of the Employment Agreement and
Consultant desires to provide personal services to the Bank; 
  
 D. The Bank desires to retain Consultant to serve on an independent contractor basis; and 
  
 E. Consultant will perform such consulting services and not solicit any employee of the Bank or Placer Sierra Bancshares to terminate such person’s
employment relationship with the Bank or Placer Sierra Bancshares, as provided herein, provided the Bank agrees to pay Consultant fees in accordance with the terms and conditions hereinafter set forth. 
  
 In consideration of the services to be performed in the future as well as the
mutual promises and covenants herein contained, it is agreed as follows: 
  
 1. Consultant Services; Bank’s Responsibilities. 
  
 (a) Consultant’s Services. Upon expiration of the Employment Agreement, Consultant agrees to provide consulting services as
requested by the Bank including, but not limited to, in the area of market analysis (the “Consulting Services”) for the Term (as defined in Section 2 below). In performing the Consulting Services, the Bank shall not obligate
Consultant to devote more than an average of four (4) hours per week in providing the Consulting Services. At the request of the Bank, the Consulting Services may be provided by telephone or at a site or sites other than at the offices of the
Bank. Consultant and Bank acknowledge that this Agreement is a non-exclusive agreement, and Consultant may provide services as an employee or independent contractor to other financial institutions during the term of this Agreement. 
  
 (b) Bank’s Responsibilities. The Bank shall
cooperate with Consultant and provide all information and direction necessary to accomplish the purposes of this Agreement. 
  
 2. Term. Subject to the provisions for termination provided in paragraph 6, the term of this Agreement shall begin as of January 1, 2006
(the “Effective Date”) and shall end upon the expiration of twelve (12) months after the Effective Date (the “Term”) provided, however, that the obligations of the Bank under this Agreement shall be conditioned upon the
execution by 
  

 1 

 Consultant and delivery to the Bank of the Release Agreement in the form attached hereto as Exhibit A not less than
twenty-eight (28) days prior to the Effective Date. 
  
 3.
Fees. The Bank agree to pay to Consultant, and Consultant agrees to accept as full payment for the performance of services hereunder and for Consultant complying with the non-solicitation provision in Section 8 below, a monthly fee in
the amount of $18,083.00, payable within five (5) business days of the month immediately following each such month during which the Consulting Services are rendered and Consultant complies with Section 8. In addition, the Bank shall pay
Consultant a one-time payment of $86,800.00 as of January 15, 2006. The Bank shall pay such fees and one-time payment without withholding any Federal or state or local taxes. 
  
 4. Expenses. Consultant shall not be reimbursed for the expenses incurred or paid by him in the provision of
Consulting Services under this Agreement. 
  
 5. Independent
Contractor. The Bank and the Consultant acknowledge that during the Term Consultant will not be an employee of the Bank and will be working as an independent contractor for the Bank. Accordingly, Consultant shall be responsible for payment of
all taxes including federal, state and local taxes arising out of Consultant’s activities in accordance with this Agreement, including by way of illustration but not limitation, federal and State income tax, Social Security tax, Unemployment
Insurance taxes, and any other taxes or business license fees as required. Consultant shall not earn any additional medical, dental, life insurance, retirement benefits, paid vacations or sick leave or any other employee benefits as a result of his
providing Consulting Services to the Bank. 
  
 6. Termination
of Agreement. If this Agreement is terminated pursuant to this paragraph 6, the Bank shall have no further liability to Consultant other than for fees or expenses incurred as of the date of termination but not yet paid, except that the one-time
payment described in Paragraph 3 above shall be paid regardless of Consultant’s death or disability. 
  
 (a) Termination by the Bank for Cause. This Agreement and Consultant’s services hereunder may be terminated for cause by the
Bank upon written notice to Consultant, and Consultant shall not be entitled to receive compensation or other benefits for any period after termination for cause. “For cause” pursuant to this Agreement shall include, but not be limited to:
(i) any act of material dishonesty; (ii) any material breach of this Agreement or any breach of a fiduciary duty (involving personal profit); (iii) any habitual neglect of, or habitual negligence in carrying out, those duties
contemplated under this Agreement; (iv) any willful violation of any law, rule or regulation, which, by virtue of bank regulatory restrictions imposed as a result thereof, would have a material adverse effect on the business or financial
prospects of the Bank; (v) any conviction of any felony or misdemeanor which may be reasonably interpreted to be harmful to the Bank’s reputation ; (vii) the inducement of any agent or employee to break any contract or terminate the
agency or employment relationship with the Bank or its affiliates; or (viii) the requirement to comply with any final cease-and-desist order or written agreement with any applicable state or federal bank regulatory authority which requests or
orders Consultant’s dismissal or limits Consultant’s duties. Termination for cause by the Bank shall not constitute a 
  

 2 

 waiver of any remedies which may otherwise be available to the Bank under law, equity, or this Agreement.

  
 (b) Termination by Death or
Disability. The Bank may terminate this Agreement by written notice to Consultant if, during the term of this Agreement, Consultant shall become incapable of fulfilling obligations hereunder because of death, injury or physical or mental
disability. Termination for reason of disability shall be effective immediately as of the date of said notice. 
  
 (c) Termination for Solicitation of Bank or Placer Sierra Bancshares Employees. The Bank may terminate this agreement by written
notice to Consultant if, during the term of this Agreement, Consultant becomes employed by any other corporation, association, partnership, limited liability company, trust, joint venture or other entity (the “Subsequent Employer”) and the
Subsequent Employer, either alone or in conjunction with Consultant, solicits, aids in the solicitation of, induces or attempts to induce any person who is then an employee of the Bank or of Placer Sierra Bancshares to terminate such person’s
employment relationship with the Bank or Placer Sierra Bancshares. 
  
 7. Indemnification. To the extent permitted by law and the Bank’s Articles of Incorporation and by-laws, the Bank shall indemnify, defend and hold Consultant harmless against any and all claims as may be asserted by any third
party against Consultant based on the performance of Consultant’s services under the terms of this Agreement. 
  
 8. Non-Solicitation. Consultant shall not prior to January 1, 2007, directly or indirectly, without the prior written consent of the Bank,
either as an employee, employer, consultant, agent, principal, partner, shareholder, corporate officer, director, or in any other individual or representative capacity, solicit, aid in the solicitation of, induce or attempt to induce any person who
is an employee of the Bank or of Placer Sierra Bancshares to terminate such person’s employment relationship with the Bank or Placer Sierra Bancshares. Consultant hereby acknowledges the particular value to the Bank of this Section 8, the
loss of which cannot be reasonably or adequately compensated in an action at law or in arbitration. Therefore, Consultant expressly agrees that the Bank, in addition to any and all other rights or remedies that the Bank shall possess, shall be
entitled to injunctive and other equitable relief to prevent or remedy a breach of this Section 8 by Consultant, without the necessity of posting any bond. Consultant’s obligation under this Section 8 shall survive the termination of
this Agreement; provided that in the event of a breach of this Section 8 or Section 6(c) or Section 10(d), the Bank will not have any obligation to continue to pay the monthly fee under Section 3. 
  
 9. Country Club Membership. At any time prior to the expiration of the
Term, Consultant shall have the right to purchase from the Bank all of the Bank’s right, title and interest in and to the membership in El Macero Country Club held in the name of the Bank and which Consultant has used during the term of the
Employment Agreement upon payment by Consultant to the Bank of the sum of $5,000.00, subject to any limitation imposed by El Macero Country Club on the transferability of said membership. 
  

 3 

 10. Miscellaneous. 
  
 (a) Entire Agreement. Except with respect to the Employment Agreement, this Agreement supersedes any
and all other agreements between Consultant and the Bank, either oral or in writing, among the parties hereto with respect to the retention of Consultant by the Bank and contains all of the promises and agreements among the Parties with respect to
such retention. Each party acknowledges that no representations, promises or agreements, oral or otherwise, have been made by any party or anyone acting on behalf of a party which are not embodied herein, and that no other agreement, statement,
representation or promise with respect to such retention not contained in this Agreement shall be valid or binding. Any modification, waiver or amendment of this Agreement will be effective only if it is in writing and signed by the party to be
charged. 
  
 Notwithstanding anything to the contrary set forth
elsewhere in this Agreement, Consultant agrees that the obligation of the Bank to pay Consulting Fees pursuant to this Agreement is wholly independent of and shall in no way effect the provisions set forth in the Employment Agreement. 
  
 (b) Arbitration. In the event any dispute should
arise between the parties hereto concerning the interpretation of any term of this Agreement, or the performance of any obligation hereunder, such dispute shall be resolved exclusively (except as provided by the provisions of this Paragraph) by
referral to arbitration under the Commercial Arbitration Rules of the American Arbitration Association (the “AAA”). The arbitration shall be held in Sacramento, California or at such other location as the parties agree. To the extent
required by law to preserve the enforceability of this arbitration provision, the Bank will pay the arbitrator’s fees and costs as well as any AAA administrative fees, except that the Consultant will first pay the AAA administrative fees which
do not exceed the filing fees which Consultant would have incurred if he had instead filed a civil lawsuit in the appropriate jurisdiction seeking the same relief. In all cases the parties shall each pay the fees of their own attorneys and the
expenses of their own witnesses. Notwithstanding the arbitration provisions hereof, any party hereto shall have the right to seek injunctive relief from any court of competent jurisdiction for any breach of this Agreement for which injunctive relief
is an appropriate remedy. 
  
 (c) Choice of
Law and Forum. This Agreement shall be governed by and construed in accordance with the laws of the State of California, except to the extent preempted by the laws of the United States. Any action or proceeding brought upon, or arising out of,
this Agreement or its termination shall be brought in a forum located within the County of Sacramento, State of California, and Consultant hereby agrees to be subject to service of process in California. 
  
 (d) Disclosure of Information. Consultant recognizes
and acknowledges that the Bank possesses trade secrets and other confidential and/or proprietary information concerning the Bank’s business affairs and methods of operation which constitutes valuable, confidential, and unique assets of the
Bank’s business (“Proprietary Information”), which the Bank has developed through a substantial expenditure of time and money and which are and will continue to be utilized in the Bank’s business operations and which are not
generally known in the trade. At any time before or after termination of this Agreement, Consultant agrees not to disclose to anyone any Proprietary Information for any reason or purpose whatsoever and not to make use of 
  

 4 

 any Proprietary Information for his own purposes or for the benefit of anyone other than the Bank under
any circumstances. For purposes of this paragraph 10(d), Proprietary Information includes, without limitation, all information regarding services, processes, know-how, service development, business plans, strategic plans, labor relations,
research, finances, marketing, assessments, costs, benefits, and any other confidential matters relating to the Bank. Consultant hereby acknowledges the particular value to the Bank of this paragraph 10(d), the loss of which cannot be reasonably or
adequately compensated in an action at law or in arbitration. Therefore, Consultant expressly agrees that the Bank, in addition to any other rights or remedies that the Bank shall possess, shall be entitled to injunctive and other equitable relief
to prevent or to remedy a breach of this paragraph 10(d) by him, without the necessity of posting any bond. 
  
 (e) Severability. In the event that any term or condition contained in this Agreement shall, for any reason, be held by a court of
competent jurisdiction to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other term or condition of this Agreement, but this Agreement shall be construed as if such invalid
or illegal or unenforceable term or condition had never been contained herein. 
  
 (f) Stock Options. Bank acknowledges that (i) Consultant is the holder of nonstatutory stock options granted under the Placer
Capital II 2002 Stock Option Plan and the Southland Capital Co. 2002 Stock Option Plan (collectively, the “Plans”); (ii) Placer Sierra Bancshares (“Placer”) was formerly known as Placer Capital II; (iii) Southland
Capital Co. (“Southland”) was merged with and into Placer subsequent to the grant of stock options to Consultant under the Southland Capital Co. 2002 Stock Option Plan (the “Southland Plan”); (iv) in connection with the
merger of Southland with and into Placer, Placer assumed the options previously granted under the Southland Plan; (v) each of the Plans provides that the term “Employee”, for purposes of determining eligibility for designation as an
optionee under either of the Plans, includes a person who is an independent contractor who performs services for the issuer of the option or any affiliate of that issuer; (vi) Consultant will provide services to the Bank hereunder as an
independent contractor, as provided in Section 5 hereof; and (vii) the change in Consultant’s status from that of an employee, during the term of the Employment Agreement, to that of an independent contractor during the Term, will not
result in the termination of any of the options currently held by Consultant pursuant to the Plans, which options will terminate only as provided in the stock options evidencing said options. 
  

 5 

 IN WITNESS WHEREOF, the parties hereto have executed this Consulting and Non-Solicitation Agreement as of
this 22nd day of December, 2005, in the City of Sacramento, California. 
  

									
	 DATED: December 22, 2005
	 	 	 	 CONSULTANT:
	  	 
					
	 	 	 	 	 	 	 /s/ Robert H. Muttera
	  	 
	 	 	 	 	 	 	 ROBERT H. MUTTERA
	  	 

  

									
	 DATED: December 22nd, 2005
	 	 	 	PLACER SIERRA BANK
					
	 	 	 	 	 	 	By:	 	 /s/ Ronald W. Bachli

	 	 	 	 	 	 	 	 	 Chairman of the Board of Directors

  

 6 

 EXHIBIT A 
  

RELEASE AGREEMENT 
  
 This Release Agreement (“Release”) was given to me, ROBERT H. MUTTERA (“Employee”), this 22nd day of December, 2005 by PLACER SIERRA BANK and its benefit plans, shareholders, parent companies, partnerships, limited partnerships, limited
liability companies and any and all of its other affiliates, and the directors, officers, employees, agents, insurers, underwriters, subsidiaries and the predecessors, and the successors and assigns of each such individuals and entities (the
“Bank” or “Employer”) in consideration of the execution by the Bank of that certain Consulting and Non-solicitation Agreement by and between the Bank and Employee dated as of December 22, 2005 (the “Consulting
Agreement”) and the expiration of the term of that certain Employment Agreement between Employee and Employer dated January 1, 2003, as amended October 28, 2003 (the “Employment Agreement”). 
  
 In consideration of the obligations of the Bank to the Employee pursuant to
the Consulting Agreement, Employee hereby agrees, for himself or his heirs, executors, administrators, successors and assigns (hereinafter referred to as the “Releasors”), to fully release and discharge Employer, and each of its benefit
plans, parent companies, subsidiaries, divisions and affiliates, and each of their respective officers, partners, directors, members, managers, shareholders, insurers, underwriters, employees and agents, and each of their respective predecessors,
successors, heirs and assigns (hereinafter referred to as the “Releasees”) from any and all actions, causes of action, claims, obligations, costs, losses, liabilities, damages and demands under any federal, state or local law or laws, or
common law, whether or not known, suspected or claimed, which the Releasors have, or hereafter may have, against the Releasees arising out of or in any way related to the Employment Agreement, Employee’s employment or termination of employment
with Employer. 
  
 It is understood and agreed that this Release
extends to all such claims and/or potential claims, and that Employee, on behalf of the Releasors, hereby expressly waives all rights with respect to all such claims under California Civil Code Section 1542, which provides as follows:

  
 A general release does not extend to claims which the
creditor does 
 not know or suspect to exist in his or her favor at the time of 
 executing the release, which if known by him or her must have 
 materially affected his or her settlement with the debtor. 
  
 It is further understood and agreed that this Release includes claims and rights Employee might have under the Age Discrimination in Employment Act (“ADEA”). The Employee’s waiver of rights under
the ADEA does not extend to claims or rights that might arise after the date this Release is executed. The monies to be paid to the Employee in this Release are in addition to any sums to which he would be entitled without signing this Release. For
a period of seven (7) days following execution of this Release, Employee may revoke the terms of this Release by a written document received by the Employer on or before the end of the seven (7) day period. The Release will not be final
until said revocation period has expired. No payments will be made under the Agreement if the Employee revokes this Release. 
  

 7 

 Employee executes this Release without reliance on any representation by any Releasee. Employee
acknowledges that he has read and does understand the provisions of the Release set forth in the preceding paragraph. Employee acknowledges that he has been (and hereby is) advised by Bank that he should consult with an attorney before signing this
Agreement. Employee acknowledges that he has had the right to consider entering into this Release for a full twenty-one (21) days from receipt of this Release, and that in executing this Release after less than a full twenty-one (21) days
of consideration, he is voluntarily and forever waiving his right to consider it for twenty-one (21) days prior to executing it, that he affixes his signature hereto voluntarily and without coercion, and that no promise or inducement has been
made other than those set out in this Release. This document does not constitute, and shall not be admissible as evidence of, an admission by any Releasee as to any fact or matter. 
  
 In case any part of this Release is later deemed to be invalid, illegal or otherwise unenforceable, Employee agrees that the
legality and enforceability of the remaining provisions of this Release will not be affected in any way. 
  

					
			
	 Dated: December 22, 2005
	 	 	 	 /s/ Robert H. Muttera

	 	 	 	 	 Robert H. Muttera.

  

 8

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