Document:

Exhibit 10.29

 

As of March 1, 2012, agreements substantially in the form attached for the performance period 2012-2014 with applicable performance measures have been entered into between the Company and the following Named Executive Officers:

 

	
Name
    	
 
    	
Target Share Amount
    	
 
    
	
Calvin W. Collins
    	
 
    	
753
    	
 
    
	
Ray Verlinich
    	
 
    	
295
    	
 
    
	
Nicholas L. Blauwiekel
    	
 
    	
150
    	
 
    
	
Francois Baril
    	
 
    	
159
    	
 
    

 

 

Agreements substantially in the form attached have been entered into between the Company and Named Executive Officers with appropriate changes to reflect:

 

·                  Name

·                  Date

·                  Performance Period

·                  Target Share Amount

·                  Performance Measures

 

 

ESCO CORPORATION

                           PERFORMANCE UNIT AWARD AGREEMENT

 

This Agreement is entered into as of                              between ESCO Corporation, an Oregon corporation (the “Company”), and        (“Recipient”).

 

On                              the Company’s Board of Directors or the Compensation Committee of the Board of Directors (the “Board”) authorized the grant of performance units to Recipient pursuant to the Company’s 2010 Stock Incentive Plan (the “Plan”). Recipient desires to accept the award subject to the terms and conditions of this Agreement.

 

NOW, THEREFORE, the parties agree as follows:

 

1.             Award.          Subject to the terms and conditions of this Agreement, the Company shall issue to Recipient the number of shares of Class A Common Stock of the Company (“Performance Shares”) determined under this Agreement based on (a) the performance of the Company during the three-year period from January 1,            to December 31,            (the “Performance Period”) as described in Section 2, and (b) Recipient’s continued employment during the Performance Period as described in Section 3. Recipient’s “Target Share Amount” for purposes of this Agreement is        shares.

 

2.             Performance Conditions.

 

2.1           Payout Factor.          Subject to adjustment under Sections 3, 4, 5 and 6, the number of Performance Shares to be issued to Recipient shall be determined by multiplying the Payout Factor by the Target Share Amount. The “Payout Factor” shall be equal to the sum of (a) 40% of the ROIC Payout Factor as determined under Section 2.2 below, plus (b) 60% of the Revenue Growth Payout Factor as determined under Section 2.3 below.

 

2.2           ROIC Payout Factor.

 

2.2.1        The “ROIC Payout Factor” shall be determined under the table below based on the Average ROIC (as defined in Section 2.2.2):

 

	
Average ROIC
    	
 
    	
ROIC
    Payout Factor
    
	
Less than         %
    	
 
    	
0%
    
	
    % (threshold)
    	
 
    	
60%
    
	
     % (target)
    	
 
    	
100%
    
	
    % or more (maximum)
    	
 
    	
300%
    

 

If the Average ROIC is between any two adjacent data points set forth in the first column of the above table, the ROIC Payout Factor shall be determined by interpolation between the corresponding data points in the second column of the table as follows: the

 

 

difference between the Average ROIC and the next lower data point in the first column shall be divided by the difference between the next higher data point and the next lower data point in the first column, the resulting fraction shall be multiplied by the difference between the two corresponding data points in the second column of the table, and the resulting product shall be added to the lower corresponding data point in the second column of the table, with the resulting sum being the ROIC Payout Factor.

 

                2.2.2        The “Average ROIC” shall be equal to the average of the ROIC (as defined below) for each year in the Performance Period.   The “ROIC” for any year shall be equal to:

 

Adjusted EBIT x (1-Tax Rate)

Average Invested Capital

 

“Adjusted EBIT” for any year shall be equal to operating profit plus ESOP non-cash compensation expenses plus costs and fees relating to financing transactions.

 

“Tax Rate” for any year shall be equal to .35.

 

“Average Invested Capital” for a year shall be equal to the average of the Invested Capital at the end of the year and the Invested Capital at the end of the prior year.

 

“Invested Capital” for a year shall be equal to total assets at the end of the year minus non-interest bearing current liabilities at the end of the year minus Excess Cash for the year.

 

“Excess Cash” for a year shall be equal to cash and cash equivalents at the end of the year minus 5% of net sales for that year.

 

2.3           Revenue Growth Payout Factor.

 

2.3.1        The “Revenue Growth Payout Factor” shall be determined under the table below based on the Revenue Growth of the Company for the Performance Period.

 

	
Revenue Growth
    	
 
    	
Revenue
   Growth Payout
   Factor
    
	
Less than $       
    	
 
    	
0%
    
	
$        
    	
 
    	
60%
    
	
$        
    	
 
    	
100%
    
	
$                    and above
    	
 
    	
300%
    

 

 

If the Revenue Growth is between any two adjacent data points set forth in the first column of the above table, the Revenue Growth Payout Factor shall be determined by interpolation between the corresponding data points in the second column of the table as follows: the difference between the Revenue Growth and the next lower data point in the first column shall be divided by the difference between the next higher data point and the next lower data point in the first column, the resulting fraction shall be multiplied by the difference between the two corresponding data points in the second column of the table, and the resulting product shall be added to the lower corresponding data point in the second column of the table, with the resulting sum being the Revenue Growth Payout Factor.

 

2.3.2        The Company’s “Revenue Growth” for the Performance Period is equal to the net sales for the year ended December 31,            minus net sales for the year ended December 31,           , as net sales are reflected in the Company’s consolidated audited financial statements for those same periods.

 

2.4           Calculation of Performance Measures; Adjustments.  Calculation of Average ROIC and Revenue Growth performance measures (and all components thereof) shall be based on the audited consolidated financial statements of the Company and its subsidiaries as of the applicable date or for the applicable period or otherwise determined from the Company’s accounting records on a consistent basis, subject to adjustment in accordance with this Section 2.4.  Adjustments to the Average ROIC and Revenue Growth performance measures (and all components thereof) set forth in Sections 2.2 and 2.3 for actual results under the performance measures for the three-year Performance Period may be made in the event of the occurrence of extraordinary, or non-recurring circumstances that, in the reasonable judgment of the Board of Directors, would cause the application of the existing performance goals or measures to fail to fairly reflect the performance of the Company. These circumstances may include acquisitions, divestitures, joint ventures, regulatory developments, tax law changes, accounting changes, restructuring or other special charges, or other occurrences.

 

3.             Employment Condition.

 

3.1           Payout.          In order to receive any award under this Agreement, Recipient must be employed by the Company on December 31,            (the “Vesting Date”), except as provided by Sections 3.2, 3.3, 3.4, 3.5 and 4.

 

3.2           Retirement.    If Recipient’s employment with the Company is terminated at any time prior to the Vesting Date because of retirement (defined as retirement from the Company or a subsidiary at normal retirement age sixty five (65), Recipient shall be entitled to receive a pro-rated award following completion of the Performance Period. The number of Performance Shares to be issued as a pro-rated award under this Section 3.2 shall be determined by multiplying the number of Performance Shares determined under Section 2 by a fraction, the numerator of which is the number of days Recipient was employed by the Company since the beginning of the Performance Period and the denominator of which is 1095.  The Company shall be

 

 

obligated to pay a pro-rata award under this Section 3.2 only if on or before the payment date fixed by the Company (i) Recipient executes and delivers to the Company a Release of Claims in such a form as may be requested by the Company and (ii) any period during which Recipient is entitled by law to revoke the release shall have expired.

 

3.3           Total Disability.          If Recipient’s employment with the Company is terminated at any time prior to the Vesting Date because of total disability (as defined in paragraph 6.1-4(b) of the Plan), Recipient shall be entitled to receive a pro-rated award following completion of the Performance Period. The number of Performance Shares to be issued as a pro-rated award under this Section 3.3 shall be determined by multiplying the number of Performance Shares determined under Section 2 by a fraction, the numerator of which is the number of days Recipient was employed by the Company since the beginning of the Performance Period and the denominator of which is 1095.  The Company shall be obligated to pay a pro-rata award under this Section 3.3 only if on or before the payment date fixed by the Company (i) Recipient executes and delivers to the Company a Release of Claims in such a form as may be requested by the Company and (ii) any period during which Recipient is entitled by law to revoke the release shall have expired.

 

3.4           Death.          If Recipient’s employment with the Company is terminated at any time prior to the Vesting Date because of death, Recipient’s successor in interest shall be entitled to receive a pro-rated portion of the Target Share Amount, instead of an amount calculated under Section 2. The pro-rated award under this Section 3.3 shall be determined by multiplying the Target Share Amount by a fraction, the numerator of which is the number of days Recipient was employed by the Company since the beginning of the Performance Period and the denominator of which is 1095.  The Company shall be obligated to pay a pro-rata award under this Section 3.4 on or before the 90th day after the date of Recipient’s death, but only if on or before such 90th day (i) Recipient successor executes and delivers to the Company a Release of Claims in such a form as may be requested by the Company and (ii) any period during which Recipient successor is entitled by law to revoke the release shall have expired.

 

3.5           Other Terminations.          If Recipient’s employment by the Company is terminated at any time prior to the Vesting Date and none of Sections 3.2, 3.3 or 3.4 applies to such termination, Recipient shall not be entitled to receive any Performance Shares under this Agreement.

 

4.             Company Sale.          If a Company Sale (as defined in this Section 4) occurs before the Vesting Date, Recipient shall be entitled to receive an award payout no later than the earlier of thirty (30) days following such event or the last day on which the Performance Shares could be issued so that Recipient may participate as a shareholder in receiving proceeds from the Company Sale.  The amount of the award under this Section 4 shall be the amount determined using a Payout Factor equal to the greater of (a) 100%, or (b) the Payout Factor calculated as if the Performance Period ended on the last day of the Company’s most recently completed fiscal quarter prior to the date of the Company Sale. For this purpose, the Average ROIC and Revenue

 

 

Growth target amounts and the related Average ROIC and Revenue Growth Payout Factors in the tables in Section 2.2 and 2.3 shall be adjusted by the Board of Directors, to appropriately reflect the shorter performance period. For purposes of this Agreement, a “Company Sale” shall mean the occurrence of any of the following events:

 

(a) any consolidation, merger or plan of share exchange involving the Company (a “Merger”) as a result of which the holders of outstanding  Voting Securities immediately prior to the Merger do not continue to hold at least 50% of the combined voting power of the outstanding Voting Securities of the surviving corporation or a parent corporation of the surviving corporation immediately after the Merger, disregarding any Voting Securities issued to or retained by such holders in respect of securities of any other party to the Merger; or

 

(b) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, the assets of the Company.

 

“Voting Securities” means securities of the Company ordinarily having the right to vote for the election of directors.

 

5.             Payment.       As soon as practicable following the completion of the audit of the Company’s consolidated financial statements for the final fiscal year of the Performance Period, the Board of Directors shall approve the Payout Factor and the corresponding number of Performance Shares issuable to Recipient.  Subject to applicable tax withholding, the number of Performance Shares shall be issued to Recipient as soon as practicable following such determination (but in any event on or before December 31,           ). No fractional shares shall be issued and the number of Performance Shares deliverable shall be rounded down to the nearest whole share, and any remaining fractional shares shall be paid in cash.  In the event of the death of Recipient as described in Section 3.4 or a Company Sale as described in Section 4, each of which requires an award payout earlier than the Vesting Date, a similar process shall be followed within the time frames required by those sections.

 

6.             Tax Withholding.       The Company shall be entitled to deduct and withhold from amounts payable to Recipient pursuant to this Agreement or otherwise all income and employment taxes and all other amounts required to be deducted and withheld by the Company under applicable law as a result of the award granted pursuant to this Agreement.  The Company shall satisfy the withholding obligation that arises at the time of issuance of Performance Shares by withholding that number of Performance Shares (which may include fractional shares) having a Value equal to the amount of withholding by reference to the applicable minimum statutory withholding rate.  For purposes of this Section 6, the “Value” of a Performance Share shall be equal to the fair market value of the Class A Common Stock as determined pursuant to Section 7 of the Plan.

 

7.             Section 409A.   The award granted pursuant to this Agreement is intended to be exempted from or compliant with Section 409A of the Internal Revenue Code (“Section 409A”) and shall be interpreted consistent with such intent.  The Company may amend this Agreement, adopt policies or procedures or take other actions, including with retroactive effect, that the Company determines are necessary or

 

 

appropriate to exempt the award from the application of Section 409A or to comply with the requirements of Section 409A.  Notwithstanding the foregoing, the Company makes no representation or warranty to Recipient with regard to the application of Section 409A to any amounts payable pursuant to this Agreement and shall in no event be obligated to mitigate or indemnify for any taxes otherwise imposed on the Recipient as a result of application of Section 409A.

 

8.             No Right to Employment.     Nothing contained in this Agreement shall confer upon Recipient any right to be employed by the Company or to continue to provide services to the Company or to interfere in any way with the right of the Company to terminate Recipient’s services at any time for any reason, with or without cause.

 

9.             Restated Stock Transfer Restriction Agreement.  All Performance Shares issued under this Agreement shall be subject to the terms of the Restated Stock Transfer Restriction Agreement in the form the form used by the Company at the time of issuance of the shares.  As a condition to receiving Performance Shares under this Agreement, Recipient shall sign the Restated Stock Transfer Restriction Agreement.

 

10.           Electronic Delivery of Prospectus.  Recipient consents to the electronic delivery of any prospectus and related documents relating to the Performance Shares in lieu of mailing or other form of delivery.

 

11.           Miscellaneous.

 

11.1         Entire Agreement; Amendment.   This Agreement constitutes the entire agreement of the parties with regard to the subjects hereof and may be amended only by written agreement between the Company and Recipient.

 

11.2         Notices.        Any notice required or permitted under this Agreement shall be in writing and shall be deemed sufficient when delivered personally to the party to whom it is addressed or when deposited into the United States Mail as registered or certified mail, return receipt requested, postage prepaid, addressed to the Company, Attention: Corporate Secretary, at its principal executive offices or to Recipient at the address of Recipient in the Company’s records, or at such other address as such party may designate by ten (10) days’ advance written notice to the other party.

 

11.3         Assignment; Rights and Benefits.   Recipient shall not assign this Agreement or any rights hereunder to any other party or parties without the prior written consent of the Company. The rights and benefits of this Agreement shall inure to the benefit of and be enforceable by the Company’s successors and assigns and, subject to the foregoing restriction on assignment, be binding upon Recipient’s heirs, executors, administrators, successors and assigns.

 

11.4         Further Action.         The parties agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

 

 

11.5         Applicable Law; Attorneys’ Fees.   The terms and conditions of this Agreement shall be governed by the laws of the State of Oregon. In the event either party institutes litigation hereunder, the prevailing party shall be entitled to reasonable attorneys’ fees to be set by the trial court and, upon any appeal, the appellate court.

 

11.6         Counterparts.         This Agreement may be executed in two or more counterparts, each of which shall be deemed an original.

 

	
 
    	
ESCO CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    
	
 
    	
Name: Calvin W. Collins, President & CEO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
RECIPIENT
    
	
 
    	
 
    
	
 
    	
Signature
    	
 
    
	
 
    	
 
    
	
 
    	
(participant name)Exhibit 10.25

 

FIRST AMENDMENT
 TO THE
 WILSHIRE STATE BANK
 DIRECTOR SURVIVOR INCOME PLAN
 DATED JULY 1, 2005

 

THIS FIRST AMENDMENT is adopted this 19th day of December, 2007, by WILSHIRE STATE BANK, a state-chartered commercial bank located in Los Angeles, California (the “Company”).

 

The Company executed the Wilshire State Bank Director Survivor Income Plan effective as of July 1, 2005 (the “Plan”).

 

Recent changes in accounting rules under Generally Accepted Accounting Principles have caused changes in the accounting treatment of certain types of benefit programs. Due to these regulatory changes, the undersigned hereby amends the Plan for  the purpose of guarantying the amount of the benefit to be paid under any split dollar agreements entered into according to the terms of the Plan. Therefore, the following change shall be made:

 

The following Section 2.6.1 shall be added to the Plan immediately following Section 2.6:

 

2.6.1                Payment in case of Shortfall in Split Dollar Arrangement. The Company will pay from its general assets any portion of the death benefit not paid to a Beneficiary by one or more life insurance policies on the life of the participant under the split-dollar arrangement described in Section 2.6, whether because the policies are no longer in force at the time of the Participant’s death, the insurance carrier fails to honor the policy death benefit or the policy death benefit is less than the benefit provided under the split-dollar arrangement.

 

IN WITNESS OF THE ABOVE, the Company hereby consents to this First Amendment.

 

	
 
    	
WILSHIRE STATE BANK
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/ Elaine S. Jeon
    
	
 
    	
Title:
    	
Elaine S. Jeon,   SVP & Interim CFO
    

 

 

WILSHIRE STATE BANK
 DIRECTOR SURVIVOR INCOME PLAN

 

Pursuant to due authorization by its Board of Directors, the undersigned, WILSHIRE STATE BANK, a state-chartered commercial bank located in Los Angeles, California (the “Bank”), did constitute, establish and adopt the following DIRECTOR SURVIVOR INCOME PLAN (the “Plan”), effective July 1, 2005.

 

The purpose of this Plan is to attract, retain, and reward highly qualified Directors, by providing death benefits to the designated beneficiary of each insured participating Director. The Bank will pay the death benefits from its general assets.

 

ARTICLE 1
 DEFINITIONS

 

Whenever used in this Plan, the following terms shall have the meanings specified:

 

1.1                               “Beneficiary” means each designated person, or the estate of a deceased Participant, entitled to benefits, if any, upon the death of a Participant.

 

1.2                               “Beneficiary Designation Form” means the form established from time to time by the Plan Administrator that a Participant completes, signs and returns to the Plan Administrator to designate one or more Beneficiaries.

 

1.3                               “Board” means the Board of Directors of the Bank as from time to time constituted.

 

1.4                               “Director” means an active member of the Board.

 

1.5                               “Election to Participate” means the form required by the Plan Administrator of an eligible Director to indicate acceptance of participation in this Plan.

 

1.6                               “Normal Retirement Age” means the Participant attaining age 65.

 

1.7                               “Participant” means a Director (i) who is selected to participate in this Plan, (ii) who elects to participate in this Plan, (iii) who signs an Election to Participate and a Beneficiary Designation Form, (iv) whose signed Election to Participant and Beneficiary Designation Form are accepted by the Plan Administrator, (v) who commences participation in this Plan, and (vi) whose Participation has not terminated.

 

1.8                               “Participant’s Interest” means the interest set forth in Section 2.4.

 

1.9                               “Plan Administrator” means the plan administrator described in Article 6.

 

1.10                        “Termination for Cause” means that the Participant’s service has been terminated for any

 

1

 

of the following reasons:

 

(a)                  Gross negligence or gross neglect of duties;

(b)                  Commission of a felony or of a gross misdemeanor involving moral turpitude; or

(c)                   Fraud, disloyalty, dishonesty or willful violation of any law or significant Bank policy committed in connection with the Participant’s service and resulting in an adverse effect on the Bank.

 

1.11                        “Termination of Service” means that the Participant ceases to be a member of the Board for any reason, voluntary or involuntary, other than by reason of a leave of absence approved by the Board.

 

ARTICLE 2
 PARTICIPATION

 

2.1                               Selection by Plan Administrator. Participation in this Plan shall be limited to those Directors of the Bank selected by the Plan Administrator, in its sole discretion, to participate in this Plan.

 

2.2                               Enrollment Requirements. As a condition to participation, each selected Director shall complete, execute and return to the Plan Administrator (i) an Election to Participate, and (ii) a Beneficiary Designation Form. In addition, the Plan Administrator shall establish from time to time such other enrollment requirements as it determines in its sole discretion are necessary.

 

2.3                               Eligibility; Commencement of Participation. Provided a Director selected to participate in this Plan has met all enrollment and underwriting requirements set forth in this Plan and required by the Plan Administrator, that Director will be covered by this Plan and will be eligible to receive benefits at the time and in the manner provided hereunder, subject to the provisions of this Plan.

 

2.4                               Participant’s Interest. Upon a Participant’s death while a member of the Board, the Participant’s designated Beneficiary shall be entitled to a base amount of death proceeds as set forth in the Participant’s Election to Participate, which base amount shall increase three percent (3%) per calendar year, but only until Normal Retirement Age, and shall be grossed up for taxes using the Bank’s state and federal effective tax rate for the preceding calendar year. If the Participant remains a member of the Board after Normal Retirement Age, the death benefit will be fixed at the amount determined at Normal Retirement Age. If a Participant has attained Normal Retirement Age prior to becoming a Participant in this Plan, the death benefit shall be equal to the base amount set forth in their Election to Participate with no increases. The Bank shall pay any death benefit under this Plan in a lump sum within ninety (90) days following the Participant’s death.

 

2

 

2.5                               Termination of Participation. A Participant’s rights under this Plan shall cease and his or her participation in this Plan shall terminate upon Termination of Service.

 

2.6                               Option to Convert to Split Dollar Arrangement. Upon Termination of Service after the completion of three (3) years of participation in the Plan for any reason except Termination for Cause, the Participant will have the option to convert the amount of death benefit calculated at Termination of Service under this Plan to a split dollar arrangement, provided such arrangement is available under bank regulation or tax law. If available, the Participant must contact the Bank’s Human Resources Department within thirty (30) days of Termination of Service so that the Bank and the Participant can then enter into a Split Dollar Agreement and Split Dollar Policy Endorsement, a sample of which is attached as Exhibit A, for that fixed amount. The Bank would annually impute income to the Participant based on tax law or rules in force upon conversion.

 

2.7                               Suicide or Misstatement. The Bank shall not pay any benefit under this Plan if the Participant commits suicide within three years after the date of Participant’s commencement of participation in the Plan. In addition, the Bank shall not pay any benefit under this Plan if the Participant has made any material misstatement of fact on an employment application or resume provided to the Company, or on any application for any benefits provided by the Bank to the Participant.

 

ARTICLE 3
 BENEFICIARIES

 

3.1                               Beneficiary Designation. The Participant shall have the right, at any time, to designate a Beneficiary to receive any benefits payable under this Plan upon the death of a Participant. The Beneficiary designated under this Plan may be the same as or different from a Beneficiary designated under any other plan of the Bank in which the Participant participates.

 

3.2                               Beneficiary Designation: Change. The Participant shall designate a Beneficiary by completing and signing the Beneficiary Designation Form, and delivering it to the Plan Administrator or its designated agent. The Participant’s Beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Participant or if the Participant names a spouse as Beneficiary and the marriage is subsequently dissolved. The Participant shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Plan Administrator’s rules and procedures, as in effect from time to time. Upon the acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be cancelled. The Plan Administrator shall be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Plan Administrator prior to the Participant’s death.

 

3.3                               Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Plan Administrator

 

3

 

or its designated agent.

 

3.4                               No Beneficiary Designation. If the Participant dies without a valid beneficiary designation, or if all designated Beneficiaries predecease the Participant, then the Participant’s spouse shall be the designated Beneficiary. If the Participant has no surviving spouse, the benefits shall be made to the personal representative of the Participant’s estate.

 

3.5                               Facility of Payment. If the Plan Administrator determines in its discretion that a benefit is to be paid to a minor, to a person declared incompetent, or to a person incapable of handling the disposition of that person’s property, the Plan Administrator may direct payment of such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person. The Plan Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be a payment for the account of the Participant and the Beneficiary, as the case may be, and shall be a complete discharge of any liability under this Plan for such payment amount.

 

ARTICLE 4
 CLAIMS AND REVIEW PROCEDURE

 

4.1                               Claims Procedure. A Participant or Beneficiary (“claimant”) who has not received benefits under this Plan that he or she believes should be paid shall make a claim for such benefits as follows:

 

4.1.1                     Initiation — Written Claim. The claimant initiates a claim by submitting to the Plan Administrator a written claim for the benefits.

 

4.1.2                     Timing of Plan Administrator Response. The Plan Administrator shall respond to such claimant within ninety (90) days after receiving the claim. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional ninety (90) days by notifying the claimant in writing, prior to the end of the initial 90-day period that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision.

 

4.1.3                     Notice of Decision. If the Plan Administrator denies part or the entire claim, the Plan Administrator shall notify the claimant in writing of such denial. The Plan Administrator shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:

 

(a)              The specific reasons for the denial;

(b)              A reference to the specific provisions of this Plan on which the denial is based;

 

4

 

(c)                                  A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed; and

(d)                                 An explanation of this Plan’s review procedures and the time limits applicable to such procedures.

 

4.2           Review Procedure. If the Plan Administrator denies part or the entire claim, the claimant shall have the opportunity for a full and fair review by the Plan Administrator of the denial, as follows:

 

4.2.1        Initiation — Written Request. To initiate the review, the claimant, within 60 days after receiving the Plan Administrator’s notice of denial, must file with the Plan Administrator a written request for review.

 

4.2.2        Additional Submissions — Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim. The Plan Administrator shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits.

 

4.2.3        Considerations on Review. In considering the review, the Plan Administrator shall take into account all materials and information the claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

 

4.2.4        Timing of Plan Administrator’s Response. The Plan Administrator shall respond in writing to such claimant within sixty (60) days after receiving the request for review. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional sixty (60) days by notifying the claimant in writing, prior to the end of the initial 60-day period that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision.

 

4.2.5        Notice of Decision. The Plan Administrator shall notify the claimant in writing of its decision on review. The Plan Administrator shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:

 

(a)           The specific reasons for the denial;

(b)           A reference to the specific provisions of this Plan on which the denial is based; and

(c)           A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits.

 

5

 

ARTICLE 5
 AMENDMENTS AND TERMINATION

 

5.1           Amendment or Termination of Plan. The Bank may only amend or terminate this Plan for all Participants pursuant to legislative, judicial or regulatory action that would have a material adverse effect on the Bank.

 

5.2           Waiver of Participation. A Participant may, in the Participant’s sole and absolute discretion, waive his or her rights under this Plan at any time. Any waiver permitted under this Section 5.2 shall be in writing and delivered to the Plan Administrator.

 

ARTICLE 6
 ADMINISTRATION

 

6.1           Plan Administrator Duties. This Plan shall be administered by a Plan Administrator which shall consist of the Board, or such committee as the Board shall appoint. Members of the Plan Administrator may be Participants under this Plan. The Plan Administrator shall also have the discretion and authority to (i) make, amend, interpret and enforce all appropriate rules and regulations for the administration of this Plan and (ii) decide or resolve any and all questions including interpretations of this Plan, as may arise in connection with this Plan.

 

6.2           Agents. In the administration of this Plan, the Plan Administrator may employ agents and delegate to them such administrative duties as it sees fit, (including acting through a duly appointed representative), and may from time to time consult with counsel who may be counsel to the Bank.

 

6.3           Binding Effect of Decisions. The decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation and application of this Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in this Plan.

 

6.4           Indemnity of Plan Administrator. The Bank shall indemnify and hold harmless the members of the Plan Administrator against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of willful misconduct by the Plan Administrator or any of its members.

 

6.5           Information. To enable the Plan Administrator to perform its functions, the Bank shall supply full and timely information to the Plan Administrator on all matters relating to the compensation of its Participants, the date and circumstances of the Termination of Employment of its Participants, and such other pertinent information as the Plan Administrator may reasonably require.

 

6

 

ARTICLE 7
 MISCELLANEOUS

 

7.1           Unsecured General Creditor. Participants and their Beneficiaries, successors and assigns shall have no legal or equitable rights, interests or claims in any property or assets of the Bank. Any and all of the Bank’s assets shall be, and remain, the general, unpledged, unrestricted assets of the Bank. The Bank’s obligation under this Plan shall be merely that of an unfunded and unsecured promise to pay money in the future.

 

7.2           Not a Contract of Service. The terms and conditions of this Plan shall not be deemed to constitute a contract of service between the Bank and the Participant. Nothing in this Plan shall be deemed to give a Participant the right to remain a member of the Board nor does it interfere with the shareholders’ right to remove a Participant. It also does not require a Participant to remain on the Board nor interfere with a Participant’s right to terminate service at any time.

 

7.3           Participation in Other Plans. Nothing herein contained shall be construed to alter, abridge, or in any manner affect the rights and privileges of the Participant to participate in and be covered by any pension, profit sharing, group insurance, bonus or similar benefits plans which the Bank may now or hereafter maintain.

 

7.4           Alienability. Neither the Participant nor any Beneficiary under this Plan shall have any power or right to transfer, assign, anticipate, hypothecate, mortgage, commute, modify, or otherwise encumber in advance any of the benefits payable hereunder, nor shall any of said benefits be subject to seizure for the payment of any debts, judgments, alimony, or separate maintenance owed by the Participant or the Beneficiary or any of them, to be transferable by operation of law in the event of bankruptcy, insolvency, or otherwise. In the event the Participant or any Beneficiary attempts assignment, commutation, hypothecation, transfer, or disposal of the benefit hereunder, the Bank’s liabilities shall forthwith cease and terminate.

 

7.5           Successors. The provisions of this Plan shall bind and inure to the benefit of the Bank and its successors and assigns and the Participant and the Beneficiary.

 

7.6           Reorganization. The Bank shall not merge or consolidate into or with another corporation, or reorganize, or sell substantially all of its assets to another corporation, firm, or person unless and until such succeeding or continuing corporation, firm, or person agrees to assume and discharge the obligations of the Bank under this Plan. Upon the occurrence of such event, the term “Bank” as used in this Plan shall be deemed to refer to such succeeding or continuing company, firm, or person.

 

7.7           Interpretation. Wherever the fulfillment of the intent and purpose of this Plan requires, and the context will permit, the use of the masculine gender includes the feminine and use of the singular includes the plural.

 

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7.8           Alternative Action. In the event it shall become impossible for the Bank or the Plan Administrator to perform any act required by this Plan, the Bank or Plan Administrator may in its discretion perform such alternative act as most nearly carries out the intent and purpose of this Plan and is in the best interests of the Bank.

 

7.9           Applicable Law. The provisions of this Plan shall be construed and interpreted in accordance with the laws of the State of California, without regard to its conflict of law principles.

 

7.10         Headings. Article and section headings are for convenient reference only and shall not control or affect the meaning or construction of any of its provisions.

 

7.11         Furnishing Information. A Participant or his or her Beneficiary will cooperate with the Plan Administrator by furnishing any and all information requested by the Plan Administrator and take such other actions as may be requested in order to facilitate the administration of this Plan and the payments of benefits hereunder, including but not limited to taking such physical examinations as the Plan Administrator may deem necessary.

 

7.12         Validity. In case any provision of this Plan shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal and invalid provision has never been inserted herein.

 

7.13         Notice. Any notice or filing required or permitted to be given to the Plan Administrator under this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below:

 

Wilshire State Bank

Attn: Jean Lim, HR Mgr.

3200 Wilshire Blvd.

Los Angeles, CA 90010

 

Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark or the receipt for registration or certification.

 

Any notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Participant.

 

7.14         Signed Copies. This Plan may be executed in any number of counterparts, each of which shall be deemed to be an original and such counterparts taken together shall constitute one and the same instrument.

 

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IN WITNESS WHEREOF, the Bank has caused this Plan to be duly executed by its President and its corporate seal affixed at Los Angeles, California, on 10-3, 2005.

 

 

	
 
    	
WILSHIRE STATE BANK
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ ILLEGIBLE
    
	
 
    	
 
    	
As its President
    
	
 
    	
 
    
	
ATTEST
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Cynthia Peters
    	
 
    
	
 
    	
As its Secretary
    	
 
    

 

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