Document:

EXHIBIT ITEM
10 (ii) A (10)

MONTEREY COUNTY
BANK

Supplemental Life
Insurance Agreement

 

 

MONTEREY
COUNTRY BANK

SUPPLEMENTAL
LIFE INSURANCE AGREEMENT

EFFECTIVE
OCTOBER 26, 2006

THIS SUPPLEMENTAL
LIFE INSURANCE AGREEMENT (the “Agreement”) is adopted this 26th day of October,
2006, by and between MONTEREY COUNTY BANK, a state-chartered commercial bank
located in Monterey, California (the “Bank”), and CHARLES T. CHRIETZBERG (the
“Executive”).

The purpose of
this Agreement is to retain and reward the Executive, by dividing the death
proceeds of certain life insurance policies which are owned by the Bank on the
life of the Executive with the designated beneficiary of the Executive. The
Bank will pay the life insurance premiums from its general assets.

Article 1

Definitions

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

1.1                                 “Agreement
1” refers to the Survivor Income Agreement between the Bank and the
Executive and the Split Dollar addendum thereto, all dated December 31, 1993.

1.2                                 “Agreement
2” refers to the Life Insurance Agreement Endorsement Method Split Dollar
Plan Agreement between the Bank and the Executive, effective October 12, 1999,
and the two amendments thereto dated August 15, 2001 and August 16, 2001, respectively.

1.3                                 “Bank’s
Interest” means the benefit set forth in Section 2.1.

1.4                                 “Beneficiary”
means each designated person, or the estate of the decreased Executive,
entitled to benefits, if any, upon the death of the Executive.

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

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

1.7                                 “Code”
means the Internal Revenue Code of 1986, as amended.

1.8                                 “Executive’s
Interest” means the benefit set forth in Section 2.2.

1.9                                 “Insurer”
means the insurance company issuing the Policy on life of the Executive.

1.10                           “Net
Death Proceeds” means the total death proceeds of the Policy minus the
greater of (i) the cash surrender value or (ii) the aggregate premiums paid by
the Bank.

1.11                           “Plan
Administrator” means the plan administrator described in Article 12.

1.12                           “Policy”
or “Policies” means the individual insurance policy or policies adopted
by the Bank for purposes of insuring the Executive’s life under this Agreement.

1.13                           “Separation
from Service” means the termination of the Executive’s employment with the
Bank for reasons other than death. Whether a Separation from Service takes
place is determined based on the facts and circumstances surrounding the
termination of the Executive’s employment and whether the Bank and the
Executive intended for the Executive to provide significant services for the
Bank following such termination. A termination of employment will not be
considered a Separation from Service if:

(a)                                  the
Executive continues to provide services as an employee of the Bank at an annual
rate that is twenty percent (20%) or more of the services rendered, on average,
during the immediately preceding three full calendar years of employment (or,
if employed less than three years, such lesser period) and the annual
remuneration for such services is twenty percent (20%) or more of the average
annual remuneration earned during the final three full calendar years of
employment (or, if less, such lesser period), or

(b)                                 the
Executive continues to provide services to the Bank in a capacity other than as
an employee of the Bank at an annual rate that is fifty percent (50%) or more
of the services rendered, on average, during the immediately preceding three
full calendar years of employment (or if employed less than three years, such
less period) and the annual remuneration for such services is fifty percent
(50%) or more of the average annual remuneration earned during the final three
full calendar years of employment (or if less, such lesser period).

1.14                           “Vested
Insurance Benefit” means the Bank will provide the Executive with continued
insurance coverage from the date of vesting until death, subject to the
forfeiture provisions detailed in Section 3.2 and Article 6. Article 3 explains
how the Executive achieves vested status.

Article 2

Policy
Ownership/Interests

2.1                                 Bank’s
Interest.  The Bank shall own the
Policies and shall have the right to exercise all incidents of ownership and,
subject to Article 4, the Bank may terminate a Policy without the consent of
the Executive. The Bank shall be the beneficiary of the remaining death
proceeds of the Policies after the Executive’s Interest is determined according
to Section 2.2 below.

2.2                                 Executive’s
Interest.  The Executive, or the
Executive’s assignee, shall have the right to designate the Beneficiary of an
amount of death proceeds as specified in Section 2.2.1 or 2.2.2. The Executive
shall also have the right to elect and change settlement options with respect
to the Executive’s Interest by providing written notice to the Bank and the
Insurer.

 2

2.2.1                        Death Prior to Separation
from Service.  If the Executive dies
while employed by the Bank, the Executive’s Beneficiary shall be entitled to a
benefit equal to one hundred percent (100%) of the Net Death Proceeds minus the
benefit amounts paid to the Executive’s beneficiary pursuant to Agreement 1 and
Agreement 2.

2.2.2                        Death After Separation from
Service.  If, pursuant to Article 3,
the Executive has a Vested Insurance Benefit at the date of death, the
Executive’s Beneficiary shall be entitled to a benefit equal to the Net Death
Proceeds minus the benefit amounts paid to the Executive’s beneficiary pursuant
to Agreement 1 and Agreement 2. If the Executive has not achieved a Vested
Insurance Benefit on the date of death, the Beneficiary will not be entitled to
a benefit under this Agreement.

Article 3

Vesting

3.1                                 Vested
Insurance Benefit.  The Executive
shall have a Vested Insurance Benefit equal to the amount specified in Section
2.2 at the earliest of the following events:

3.1.1                        Attainment of age sixty-five
(65) while in the employ of the Bank; or

3.1.2                        Adoption, by the Board at its
discretion, of a resolution entitling the Executive to the Vested Insurance
Benefit in Section 2.2 under circumstances not otherwise addressed in this
Section 3.1.

3.2                                 Forfeiture
of Benefit.  Notwithstanding the
provisions of Section 3.1, the Executive will forfeit his Vested Insurance
Benefit if: (i) the Executive violates any of the provisions detailed in
Article 6; or (ii) the Executive provides written notice to the Bank declining
further participation in the Agreement.

Article 4

Comparable
Coverage

4.1                                 Insurance
Policies.  If the Executive has a
Vested Insurance Benefit, the Bank may provide such benefit through the
Policies purchased at the commencement of this Agreement, or may provide
comparable insurance coverage to the Executive through whatever means the Bank
deems appropriate. If the Executive waives or forfeits his right to the Vested
Insurance Benefit, the Bank shall choose to cancel the Policies on the Executive,
or may continue such coverage and become the direct beneficiary of the entire
death proceeds.

4.2                                 Offer
to Purchase.  If the Bank
discontinues a Policy while the Executive is employed by the Bank at the date
of discontinuance or while the Executive has a Vested Insurance Benefit that
has not been forfeited, the Bank shall give the Executive at least thirty (30)
days to purchase such Policy. The purchase price shall be the fair market value
of the Policy, as determined under Treasury Reg. §1.61-22(g)(2) or any
subsequent applicable

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authority. Such
notification shall be in writing.

Article 5

Premiums
and Imputed Income

5.1           Premium Payment.  The Bank shall pay all premiums due on all
Policies.

5.2                                 Economic
Benefit.  The Bank shall determine
the economic benefit attributable to the Executive based on the life insurance
premium factor for the Executive’s age multiplied by the aggregate death
benefit payable to the Beneficiary hereunder. The “life insurance premium
factor” is the minimum factor applicable under guidance published pursuant to
Treasury Reg. § 1.61-22(d)(3)(ii) or any subsequent authority.

5.3                                 Imputed
Income.  The Bank shall impute the
economic benefit to the Executive to an annual basis, by adding the economic
benefit to the Executive’s W-2, or if applicable, Form 1099.

Article 6

General
Limitations

6.1                                 Excess
Parachute or Golden Parachute Payment. 
If the payments and benefits pursuant to this Agreement, either alone or
together with other payments and benefits which the Executive has the right to
receive from the Bank, would constitute an “excess parachute payment” under
Section 280G of the Code, or would be a prohibited golden parachute payment
pursuant to 12 C.F.R. §359.2 and for which the appropriate federal banking
agency has not given written consent to pay pursuant to 12 C.F.R. §359.4, the
payments and benefits pursuant to this Agreement shall be reduced, in the
manner determined by the Executive in the case of the application of Section
280G of the Code, by the amount, if any, which is the minimum necessary to
result in (i) no portion of the payments and benefits under this Agreement
being non-deductible to the Bank pursuant to Section 280G of the Code and
subject to the exercise tax imposed under Section 4999 of the Code, and (ii) no
adverse consequence to the Bank under or pursuant to such banking regulations. All
benefits payable under this Agreement shall also be subject to limitations or
prohibitions imposed by subsequent changes or amendments to the cited laws and
regulations except to the extent that any benefits payable under this Agreement
are grandfathered or otherwise exempt or excluded from the change or amendment.

6.2                                 Termination
for Cause.  Notwithstanding any
provision of this Agreement to the contrary, the Executive shall forfeit any
right to a benefit under this Agreement if the Bank terminates the Executive’s
employment for cause. Termination of the Executive’s employment for “Cause”
shall mean termination because of personal dishonesty, willful misconduct,
breach of fiduciary duty involving personal profit, intentional failure to
perform stated duties, willful violation of any law, rule or regulation (other
than traffic violations or similar offenses) or final cease-and-desist order or
material breach of any provision of the Agreement. For purposes of this
paragraph, no act or failure to act on the Executive’s part shall be considered
“willful” unless done, or omitted to be done, by the Executive not in good
faith and without reasonable belief that the Executive’s action or omission was
in the best interest of the Bank.

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6.3                                 Removal.  Notwithstanding any provision of this
Agreement to the contrary, the Executive’s rights in the Agreement shall
terminate if the Executive is subject to a final removal or prohibition order
issued by an appropriate federal banking agency pursuant to Section 8(c) of the
Federal Deposit Insurance Act (“FDIA”).

6.4                                 Suicide
or Misstatement.  No benefits shall
be payable if the Executive commits suicide within two years after the date of
this Agreement, or if the insurance company denies coverage (i) for material
misstatements of fact made by the Executive on any application for life
insurance purchased by the Bank, or (ii) for any other reason; provided,
however that the Bank shall evaluate the reason for the denial, and upon advice
of legal counsel and in its sole discretion, consider judicially challenging
any denial.

Article 7

Beneficiaries

7.1                                 Beneficiary.  The Executive shall have the right, at any
time, to designate a Beneficiary to receive any benefits payable under the
Agreement upon the death of the Executive. The Beneficiary designated under
this Agreement may be the same as or different from the beneficiary designation
under any other Agreement of the Bank in which the Executive participates.

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

7.3                                 Acknowledgment.  No designation or change in designation of a
Beneficiary shall be effective until received, accepted and acknowledged in
writing by the Bank or its designated agent.

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

7.5                                 Facility
of Payment.  If the Bank 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 Bank may direct payment of such benefit to the guardian,
legal representative or person having the care or custody of such minor,

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incompetent person or incapable person. The Bank 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 Executive and the Executive’s
Beneficiary, as the case may be, and shall be a complete discharge of any
liability under the Agreement for such payment amount.

Article 8

Assignment

The
Executive may irrevocably assign without consideration all of the Executive’s
Interest in this Agreement to any person, entity, or trust. In the event the
Executive shall transfer all of the Executive’s Interest, then all of the
Executive’s Interest in this Agreement shall be vested in the Executive’s
transferee, who shall be substituted as a party hereunder, and the Executive
shall have no further interest in this Agreement.

Article 9

Insurer

The
Insurer shall be bound only by the terms of its given Policy. The Insurer shall
not be bound by or deemed to have notice of the provisions of this Agreement.
The Insurer shall have the right to rely on the Bank’s representations with
regard to any definitions, interpretations or Policy interests as specified
under this Agreement.

Article 10

Claims
And Review Procedure

10.1                           Claims
Procedure.  The Executive or
Beneficiary (“claimant”) who has not received benefits under the Agreement that
he or she believes should be paid shall make a claim for such benefits as
follows:

10.1.1                  Initiation —
Written Claim.  The claimant
initiates a claim by submitting to the Plan Administrator a written claim for
the benefits. If such a claim relates to the contents of a notice received by
the claimant, the claim must be made within sixty (60) days after such notice
was received by the claimant. All other claims must be made within one hundred
eighty (180) days of the date on which the event that caused the claim to arise
occurred. The claim must state with particularity the determination desired by
the claimant.

10.1.2                  Timing of
Bank Response.  The Bank shall respond
to such claimant within 90 days after receiving the claim. If the Bank
determines that special circumstances require additional time for processing
the claim, the Bank can extend the response period by an additional 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 Bank expects to
render its decision.

10.1.3                  Notice of
Decision.  If the Bank denies part or
all of the claim, the Bank shall notify the claimant in writing of such denial.
The Bank shall write the

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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 the Agreement on which the denial is based;

                                                (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;

                                                (d)           An explanation of the Agreement’s
review procedures and the time limits applicable to such procedures; and

                                                (e)           A statement of the claimant’s right
to bring a civil action under ERISA Section 502(a) following an adverse benefit
determination on review.

10.2                           Review
Procedure.  If the Bank denies part
or all of the claim, the claimant shall have the opportunity for a full and
fair review by the Bank of the denial, as follows:

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

10.2.2                  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 Bank shall
also provide the claimant, upon request and free of charge, reasonable access
to, and copies of, all documents, records and other information relevant (as
defined in applicable ERISA regulations) to the claimant’s claim for benefits.

10.2.3                  Considerations
on Review.  In considering the
review, the Bank 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.

10.2.4                  Timing of
Bank’s Response.  The Bank shall
respond in writing to such claimant within 60 days after receiving the request
for review. If the Bank determines that special circumstances require
additional time for processing the claim, the Bank can extend the response
period by an additional 60 days by notifying the claimant in writing, prior to
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 Bank expects to render its decision.

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

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(a)                                  The
specific reasons for the denial:

(b)                                 A
reference to the specific provisions of the Agreement on which the denial is
based:

(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 (as defined in applicable ERISA regulations) to the
claimant’s claim for benefits; and

(d)                                 A
statement of the claimant’s right to bring a civil action under ERISA Section
502(a).

Article 11

Amendments
And Termination

11.1                           Non-Vested
Insurance Benefit.  Unless the
Executive has a Vested Insurance Benefit pursuant to Section 3.1, the Bank may
amend or terminate the Agreement at any time, or may amend or terminate the
Executive’s rights under the Agreement at any time prior to the Executive’s
death, by providing written notice of such of the Executive. In the event that
the Bank decides to maintain the Policy after termination of the Agreement, the
Bank shall be the direct beneficiary of the entire death proceeds of the
Policy.

11.2                           Vested
Insurance Benefit.  If the Executive
has a Vested Insurance Benefit, the Bank may amend or terminate the Agreement
only if: (i) continuation of the Agreement would cause significant financial
harm to the Bank, (ii) the Executive agrees to such action, or (iii) the Bank’s
banking regulator(s) issues a written directive to amend to terminate the
Agreement.

Article 12

Administration

12.1                           Plan
Administrator Duties.  This Agreement
shall be administered by a Plan Administrator which shall consist of the Board,
or such committee or persons as the Board may choose. 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
Agreement and (ii) decide or resolve any and all questions including
interpretations of this Agreement, as may arise in connection with this
Agreement.

12.2                           Agents.  In the administration of this Agreement, 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.

12.3                           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
Agreement and the rules and regulations

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promulgated hereunder shall be final and conclusive
and binding upon all persons having any interest in this Agreement.

12.4                           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 Agreement, except in the case of
willful misconduct by the Plan Administrator or any of its members.

12.5                           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 Base Salary of the Executive, the
date and circumstances of the retirement, Disability, death or Separation from
Service of the Executive, and such other pertinent information as the Plan
Administrator may reasonably require.

Article 13

Miscellaneous

13.1                           Binding
Effect.  This Agreement shall bind
the Executive and the Bank, their beneficiaries, survivors, executors,
administrators and transferees and any Beneficiary.

13.2                           No
Guarantee of Employment.  This
Agreement is not an employment policy or contract. It does not give the
Executive the right to remain an Executive of the Bank, nor does it interfere
with the Bank’s right to discharge the Executive. It also does not require the
Executive to remain an Executive nor interfere with the Executive’s right to
terminate employment at any time.

13.3                           Applicable
Law.  The Agreement and all right
hereunder shall be governed by and construed according to the laws of the State
of California, except to the extent preempted by the laws of the United States
of America.

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

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

	
   

  	
  Monterey County Bank

  
	
   

  	
  601 Munras
  Avenue

  
	
   

  	
  Monterey, CA
  93942

  

 

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.

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

13.6                           Entire
Agreement.  This Agreement, along
with the Executive’s Beneficiary Designation Form, constitutes the entire
agreement between the Bank and the Executive as to the subject matter hereof.
No rights are granted to the Executive under this Agreement other than those
specifically set forth herein.

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date
indicated above.

	
  EXECUTIVE:

  	
   

  	
  MONTEREY COUNTY BANK

  
	
   

  	
   

  	
   

  
	
  /s/ Charles T.
  Chrietzberg

  	
   

  	
  By

  	
  /s/ Bruce N. Warner

  
	
  Charles
  T. Chrietzberg

  	
   

  	
   

  	
  Bruce N. Warner

  
	
   

  	
   

  	
  Title

  	
  Executive Vice President

  

 

 10

MONTEREY
COUNTY BANK

Supplemental Life Insurance Agreement

BENEFICIARY DESIGNATION FORM

o            New Designation

x           Change
in Designation

I, CHARLES T.
CHRIETZBERG, designate the following as Beneficiary under the Agreement:

	
  Primary:

  	
   

  	
   

  	
   

  
	
  The Charles T. and Sandra G. Chrietzberg 1994
  Revocable Living Trust dtd. 8/30/94

  	
   

  	
   

  	
  100%

  
	
   

  	
   

  	
   

  	
   

  
	
  Charles T. Chrietzberg, Jr. and Sandra Gail
  Chrietzberg, CO-TTFES

  	
   

  	
   

  	
        %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
        %

  
	
  Contingent:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
        %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
        %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
        %

  

 

Notes:

·      Please PRINT CLEARLY or TYPE the names of
the beneficiaries.

·                 To name a trust
as beneficiary, please provide the name of the trustee(s) and the exact
name and date of the trust agreement.

·                 To name your
estate as beneficiary, please write “Estate of [your name]”.

·                 Be aware that none
of the contingent beneficiaries will receive anything unless ALL of the primary
beneficiaries predecease you.

I understand that I may change these beneficiary
designations by delivering a new written designation to the Plan Administrator,
which shall be effective only upon receipt and acknowledgement by the Plan
Administrator prior to my death. I further understand that the designations
will be automatically revoked if the beneficiary predeceases me, or, if I have
named my spouse as beneficiary and our marriage is subsequently dissolved.

	
  Name:

  	
  Charles T. Chrietzberg, Jr.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Charles T. Chrietzberg, Jr.

  	
   

  	
  Date: October 26, 2006

  

 

	
  SPOUSAL CONSENT (Required if Spouse not named beneficiary):

  
	
   

  
	
  I consent to the beneficiary designation above, and
  acknowledge that if I am named beneficiary and our marriage is subsequently
  dissolved, the designation will be automatically revoked.

  
	
   

  
	
  Spouse Name:

  	
  Sandra Gail Chrietzberg

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Sandra Gail Chrietzberg

  	
   

  	
  Dated: October 26, 2006

  

 

Received by the Plan Administrator this
            day of
                      ,
2   

	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:EXHIBIT ITEM
10 (ii) A (11)

FIRST
AMENDMENT

TO THE

MONTEREY COUNTY BANK

SUPPLEMENTAL LIFE INSURANCE AGREEMENT

FOR

CHARLES T. CHRIETZBERG

THIS AMENDMENT is adopted this 31st day of October,
2006, by and between MONTEREY COUNTY BANK located in Monterey, California (the
“Bank”), and CHARLES T. CHRIETZBERG (the “Executive”).

The Bank and the Executive executed the MONTEREY
COUNTY BANK SUPPLEMENTAL LIFE INSURANCE AGREEMENT on October 26, 2006 (the
“Agreement”).

Under the terms of Article 11, the undersigned hereby
amends, in part, the Agreement for the purpose changing the calculation of
benefits to be paid thereunder.

Section 1.1 of the Agreement shall be deleted in
its entirety.

The Following Section 1.12a shall be added to the
Agreement immediately following Section 1.12:

1.12a       “Schedule
A” means the schedule attached to this Agreement and made a part hereof.

Sections
2.2.1 and 2.2.2 of the Agreement shall be deleted in their entirety and
replaced by the following:

2.2.1                       Death Prior to Separation
from Service.  If the Executive dies
while employed by the Bank, the Executive’s Beneficiary shall be entitled to a
benefit equal to the amount shown on Schedule A minus the benefit amount paid
to the Executive’s beneficiary designated in Agreement 2.

2.2.2                       Death After Separation from
Service.  If, pursuant to Article 3,
the Executive has a Vested Insurance Benefit at the date of death, the
Executive’s Beneficiary shall be entitled to a benefit equal to the amount
shown on Schedule A minus the benefit amount paid to the Executive’s
beneficiary designated in Agreement 2. 
If the Executive has not achieved a Vested Insurance Benefit on the date
of death, the Beneficiary will not be entitled to a benefit under this
Agreement.

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

	
   

  	
  MONTEREY COUNTY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY

  	
  /s/ Bruce N.
  Warner

  
	
   

  	
  TITLE

  	
   Executive Vice President

  
				

 

AMENDMENT TO

MONTEREY COUNTY BANK

SUPPLEMENTAL LIFE INSURANCE AGREEMENT

EXHIBIT A

(for
Charles Chrietzberg)

	
  Age of Insured at the

  	
   

  	
  Amount of Death Benefit, or 100%

  
	
  Time of Death

  	
   

  	
  of the Net Death Proceeds, whichever amount
  is less

  
	
  60

  	
   

  	
  $2,940,000

  
	
  61

  	
   

  	
  $2,940,000

  
	
  62

  	
   

  	
  $2,940,000

  
	
  63

  	
   

  	
  $2,940,000

  
	
  64

  	
   

  	
  $2,940,000

  
	
  65

  	
   

  	
  $2,500,000

  
	
  66

  	
   

  	
  $2,500,000

  
	
  67

  	
   

  	
  $2,496,686

  
	
  68

  	
   

  	
  $2,493,768

  
	
  69

  	
   

  	
  $2,489,057

  
	
  70

  	
   

  	
  $1,809,170

  
	
  71

  	
   

  	
  $1,779,912

  
	
  72

  	
   

  	
  $1,771,844

  
	
  73

  	
   

  	
  $1,759,932

  
	
  74

  	
   

  	
  $1,750,960

  
	
  75

  	
   

  	
  $1,744,102

  
	
  76

  	
   

  	
  $1,737,173

  
	
  77

  	
   

  	
  $1,722,266

  
	
  78

  	
   

  	
  $1,709,919

  
	
  79

  	
   

  	
  $1,702,435

  
	
  80

  	
   

  	
  $1,693,480

  
	
  81

  	
   

  	
  $1,683,022

  
	
  82

  	
   

  	
  $1,670,556

  
	
  83

  	
   

  	
  $1,656,090

  
	
  84 or Older

  	
   

  	
  $1,639,629

  

 

	
  Policies:

  	
   

  	
  Policy Number:

  
	
   

  	
   

  	
   

  
	
  1) Southland Life

  	
   

  	
  0600087068

  
	
  2) Union Central

  	
   

  	
  U200000615

  
	
  3) Union Central

  	
   

  	
  U200000513

  
	
  4) Alexander Hamilton

  	
   

  	
  8658250

  
	
  5) New York Life

  	
   

  	
   

  
	
  6) Jefferson Pilot

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]