Document:

EXHIBIT

10.37

Schedule A

CLOVIS COMMUNITY BANK

SECOND AMENDED AND RESTATED

 DIRECTOR DEFERRED FEE

AGREEMENT

 

Participants’

Normal Retirement Age and Form of Benefit Elected

 

 

	

  Participant

  	

   

  	

  Normal Retirement Age

  	

   

  	

  Form of Benefit Elected

  
	

  Daniel N. Cunningham

  	

   

  	

  75

  	

   

  	

  Equal monthly installment for 60 months

  
	

  Steven McDonald

  	

   

  	

  63

  	

   

  	

  Equal monthly installment for 120 months

  
	

  Louis McMurray

  	

   

  	

  65

  	

   

  	

  Equal monthly installment for 120 months

  
	

  Wanda Lee Rogers

  	

   

  	

  75

  	

   

  	

  Lump Sum

  
	

  William S. Smittcamp

  	

   

  	

  60

  	

   

  	

  Lump SumEXHIBIT 10.38

 

Addendum A

Clovis Community Bank

Split Dollar Agreement and

Endorsement

 

This Split Dollar Agreement and Endorsement is entered

into as of this 13th day of February, 2002, by and between Clovis Community

Bank (the “Bank”), a California-chartered bank located in Clovis,  California and                       , a director of Clovis Community Bank (the

“Director”).  This Split Dollar

Agreement and Endorsement shall append the Split Dollar Endorsement entered

into on even date herewith, or as subsequently amended, by and between the

aforementioned parties.

 

To encourage the Director to remain a member of the Bank’s board of

directors, the Bank is willing to divide the death proceeds of a life insurance

policy on the Director’s life.  The Bank

will pay life insurance premiums from its general assets.

 

Article 1

General Definitions

 

Capitalized terms not otherwise defined in this Split Dollar Agreement

and Endorsement are used herein as defined in the Second Amended and Restated

Director Deferred Fee Agreement dated as of February 13, 2002.  The following terms shall have the meanings

specified:

 

 “Insurer” means                                  and                         Company. 

 

“Policy” means insurance

policy no.               issued by                               and policy no.                                       issued by              

 

“Insured” means the

Director.

 

Article 2

Policy Ownership Interests

 

2.1           Bank Ownership.  The Bank is the sole owner of the Policy and

shall have the right to exercise all incidents of ownership.  The Bank shall be the beneficiary of any

death proceeds remaining after the Director’s interest has been paid under

Section 2.2 of this Split Dollar Agreement and Endorsement.

 

2.2           Executive’s Interest.  The Director shall have the right to

designate the beneficiary(ies) of death proceeds.  After death of the Insured before Normal Retirement Age as

defined in the Second Amended and Restated Director Deferred Fee Agreement, the

Insured’s Beneficiary(ies) designated in accordance with the Split Dollar

Policy Endorsement shall be entitled to an amount equal to  $          

, or one hundred percent (100%) of the net at risk insurance portion of

the proceeds, whichever amount is less. 

The net at risk insurance portion is the total proceeds less the cash

value of the Policy.   If the Director

dies after Normal Retirement Age as defined in the Second Amended and

Restated  Director Deferred Fee

Agreement, the Insured’s beneficiaries shall be entitled to an amount

equivalent to the Deferral Account maintained by the Bank for the Director as

of the calendar year end of the year preceding the year of the Insured’s death,

or one hundred percent (100%) of the net at risk insurance portion of the

proceeds, whichever is less.  The

Director shall also have the right to elect and change settlement options

specified in the Policy that may be permitted. 

However, the Director, the Director’s transferee and the Director’s

beneficiary(ies) or estate shall have no rights or interests in the Policy for

that portion of the death proceeds designated in this Section 2.2 if

Termination of Service of the Director shall have previously occurred as a

result of Termination for Cause under the Second Amended and Restated Director

Deferred Fee Agreement.

 

2.3           Option to Purchase.  The Bank shall not sell, surrender, or

transfer ownership of the Policy while this Split Dollar Agreement and

Endorsement is in effect without first giving the Director or the Director’s

transferee a right of first refusal to purchase the Policy for the Policy’s

interpolated terminal reserve value. 

The right of first refusal to purchase the Policy must be exercised

within 60 days after the date the Bank gives written notice of the Bank’s

intention to sell, surrender, or transfer ownership of the Policy.  This provision shall not impair the right of

the Bank to terminate this Split Dollar Agreement and Endorsement.

 

1

 

2.4           Comparable Coverage.  Upon execution of this Agreement, the Bank

shall maintain the Policy in full force and effect, and the Bank shall not

amend, terminate or otherwise abrogate the Director’s interest in the Policy

unless the Bank (a) replaces the Policy with a comparable insurance policy to

cover the benefit provided under this Split Dollar Agreement and Endorsement

and (b) executes a new Split Dollar Agreement and Endorsement and Endorsement for

the comparable insurance policy.  The

Policy or any comparable policy shall be subject to the claims of the Bank’s

creditors.

 

Article 3

Premiums

 

3.1           Premium Payment.  The Bank shall pay any premiums due on the

Policy.

 

3.2           Imputed Income.  The Bank shall impute income to the Director

in an amount equal to (a) the current term rate for the Director’s age,

multiplied by (b) the net death benefit payable to the Director’s

beneficiary(ies).  The “current term

rate” is the minimum amount required to be imputed under Revenue Rulings 64-328

and 66-110, or any subsequent applicable authority.

 

Article 4

Assignment

 

The Director may assign without consideration all interests in the

Policy and in this Split Dollar Agreement to any person, entity or trust.  If the Director transfers all of the

Director’s interest in the Policy, then all of the Director’s interest in the

Policy and in the Split Dollar Agreement and Endorsement shall be vested in the

Director’s transferee, who shall be substituted as a party hereunder, and the

Director shall have no further interest in the Policy or in this Split Dollar

Agreement and Endorsement.

 

Article 5

Insurer

 

The Insurer shall be bound only by the terms of the Policy.  Any payments the Insurer makes or actions it

takes in accordance with the Policy shall fully discharge it from all claims,

suits, and demands of all entities or persons. 

The Insurer shall not be bound by or be deemed to have notice of the

provisions of this Split Dollar Agreement and Endorsement.

 

Article 6

Claims Procedure

 

6.1           Claims Procedure.  The Bank shall notify in writing any person

or entity making a claim under this Split Dollar Agreement and Endorsement (the

“Claimant”) of his or her eligibility or ineligibility for benefits under this

Split Dollar Agreement and Endorsement. 

The Bank shall provide the written notice within 90 days after

Claimant’s written application for benefits. 

If the Bank determines that the Claimant is not eligible for benefits or

full benefits, the notice shall set forth (a) the specific reasons for the

denial, (b) a specific reference to the provisions of this Split Dollar

Agreement and Endorsement on which denial is based, (c) a description of any

additional information or material necessary for the Claimant to perfect his or

her claim, and a description of why it is needed, and (d) an explanation of

this Split Dollar Agreement and Endorsement’s claims review procedure and other

appropriate information concerning the steps to be taken if the Claimant wishes

to have the claim reviewed.  If the Bank

determines that there are special circumstances requiring additional time to

make a decision, the Bank shall notify the Claimant of the special

circumstances and the date by which a decision is expected to be made,

extending the time for up to an additional 90 days.

 

6.2           Review Procedure.  If the Bank determines that the Claimant is

not eligible for benefits or full benefits, or if the Claimant believes that he

or she is entitled to greater or different benefits, the Claimant shall have the

opportunity to have his or her claim reviewed by the Bank by filing a petition

for review with the Bank within 60 days after receipt of the written notice

issued by the Bank.  The Claimant’s

petition shall state the specific reasons the Claimant believes entitle him or

her to benefits or to greater or different benefits.  Within 60 days after the Bank’s receipt of the petition, the Bank

shall give the Claimant (and counsel, if any) an opportunity to present his or

her position to the Bank verbally or in writing, and the Claimant (or counsel)

shall have the right to review the pertinent documents.  The Bank shall notify the Claimant of the

Bank’s decision in writing within the 60-day period, stating specifically the

basis of its decision and identifying the specific provisions of this Split

Dollar Agreement and Endorsement on which the decision is based.  If, because of the need for a hearing, the

60-day period is not sufficient, the decision may be deferred for up to another

60-day period at the election of the Bank, but notice of this deferral must be

given to the Claimant.

 

2

 

 

Article 7

Amendments and Termination

 

7.1           Amendment.  This Split Dollar Agreement and Endorsement

may be amended only by a writing signed by the Bank and the Director.

 

7.2           Termination of Agreement.  This Split Dollar Agreement and Endorsement

shall terminate upon the occurrence of any of the following events:

 

(a)                                The Insured is

discharged or removed from service as a director of the Bank for cause.  The term “for cause” shall mean any of the

following: (1) gross negligence or gross neglect of duties, (2) the commission

of a felony or the commission of a misdemeanor involving moral turpitude, (3)

fraud, disloyalty, dishonesty, or willful violation of any law or significant

policy of the Bank committed in connection with the Director’s service and, in

the Bank’s sole judgment, resulting in an adverse effect on the Bank, or

 

(b)                                  Surrender,

lapse, or other termination of the Policy by the Bank, or

 

(c)                                Distribution of

the death benefit proceeds in accordance with Section 2.2 above, or

 

(d)                                 Payment in full by the Bank

to the Director of the Deferral Account maintained by the Bank for that certain

Second Amended and Restated Director Deferred Fee Agreement dated February

13, 2002.

 

Article 8

Miscellaneous

 

8.1           Binding Effect.  This Split Dollar Agreement and Endorsement

shall bind the Director and the Bank and their beneficiaries, survivors,

executors, administrators and transferees, and any Policy beneficiary.

 

8.2           No Guarantee of Employment.

This Split Dollar Agreement and Endorsement is not an employment policy or

contract.  It does not give the Director

the right to remain a director of the Bank, nor does it interfere with the

right of the Bank’s stockholder(s) not to re-elect the Director or the right of

the stockholder(s) or the board to remove an individual as a director of the

Bank.  This Split Dollar Agreement and

Endorsement also does not require the Director to remain a director nor

interfere with the Director’s right to terminate director service at any time.

 

8.3           Successors; Binding Agreement.  By an assumption agreement in form and

substance satisfactory to the Director, the Bank shall require any successor

(whether direct or indirect, by purchase, merger, consolidation or otherwise)

to all or substantially all of the business or assets of the Bank to expressly

assume and agree to perform this Split Dollar Agreement and Endorsement in the

same manner and to the same extent that the Bank would be required to perform

this Split Dollar Agreement and Endorsement if no succession had occurred.  The Bank’s failure to obtain such an

assumption agreement before succession becomes effective shall be considered a

breach of the Split Dollar Agreement and Endorsement and shall entitle the

Director to the Change of Control benefit payable under Section 4.4 of the

Second Amended and Restated Director Deferred Fee Agreement between the Bank

and the Director.

 

8.4           Applicable Law.  The Split Dollar Agreement and Endorsement

and all rights hereunder shall be governed by and construed according to the

internal substantive laws of the State of California, disregarding principles

of conflict of laws.

 

8.5           Entire Agreement.  This Split Dollar Agreement and Endorsement

and the Second Amended and Restated Director Deferred Fee Agreement constitute

the entire agreement between the Bank and the Director concerning the subject

matter hereof.  No rights are granted to

the Director under this Split Dollar Agreement and Endorsement other than those

specifically set forth herein.

 

3

 

8.6           Administration.  The Bank shall have all powers necessary to

administer this Split Dollar Agreement and Endorsement, including but not

limited to the power to :

 

(a)                                interpret the

provisions of the Split Dollar Agreement and Endorsement,

 

(b)                               establish and

revise the method of accounting for the Split Dollar Agreement and Endorsement,

 

(c)                                maintain a

record of benefit payments, and

 

(d)                               establish rules

and prescribe forms necessary or desirable to administer the Split Dollar

Agreement.

 

8.7           Named Fiduciary.  The Bank shall be the named fiduciary and

plan administrator under this Split Dollar Agreement and Endorsement.  The Bank may delegate to others certain

aspects of management and operational responsibilities, including the

employment of advisors and the delegation of ministerial duties to qualified

individuals.

 

8.8           Severability.  If for any reason any provision of this

Split Dollar Agreement and Endorsement is held invalid, such invalidity shall

not affect any other provision of this Split Dollar Agreement and Endorsement

not held so invalid, and each such other provision shall continue in full force

and effect to the full extent consistent with the law.  If any provision of this Split Dollar

Agreement and Endorsement is held invalid in part, such invalidity shall in no

way affect the remainder of such provision not held so invalid, and the

remainder of such provision together with all other provisions of this Split

Dollar Agreement and Endorsement shall continue in full force and effect to the

full extent consistent with the law.

 

8.9           Headings.  The headings herein are included solely for

convenience of reference and shall not affect the meaning or interpretation of

any provision of this Split Dollar Agreement and Endorsement.

 

8.10         Notices.  All notices, requests, demands and other

communications hereunder shall be in writing and shall be deemed to have been

duly given if delivered by hand or mailed, certified or registered mail, return

receipt requested, with postage prepaid, to the following addresses or to such

other address as either party may designate by like notice.

 

	

  (a)

  	

   

  	

  If

  to the Bank, to:

  	

   

  	

  Board

  of Directors

  
	

   

  	

   

  	

   

  	

   

  	

  Clovis

  Community Bank

  
	

   

  	

   

  	

   

  	

   

  	

  600

  Pollasky Avenue

  
	

   

  	

   

  	

   

  	

   

  	

  P.O.

  Box 3030

  
	

   

  	

   

  	

   

  	

   

  	

  Clovis,

  California  93612

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  (b)

  	

   

  	

  If

  to the Director, to:

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  

 

and

to such other or additional person or persons as either party shall have

designated to the other party in writing by like notice.

 

In Witness Whereof, the Bank and the Director

have signed this Split Dollar Agreement and Endorsement as of the date and year

first written above.

 

 

	

  The

  Director

  	

  CLOVIS COMMUNITY BANK

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

  Daniel

  J. Doyle

  
	

   

  	

   

  	

   

  	

   

  	

  Its:

  	

  President

  & Chief Executive Officer

  

 

 

4

 

                                                                Split Dollar Policy Endorsement

Clovis Community Bank

 

 

 

Policy No.

Policy No.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Insured:

 

 

 

Supplementing and amending the application for insurance to                               Company, (the “Insurer”) on                                                     

, the applicant requests and directs that:

 

Beneficiaries

 

1.             Clovis Community

Bank, located in Clovis, California, shall be the beneficiary of any death proceeds

remaining after the Insured’s interest has been paid under paragraph (2) below.

 

2.             The Insured or the

Insured’s transferee shall designate the beneficiary(ies) of death

proceeds.  After the death of the  Insured before Normal Retirement Age as defined

in the Second Amended and Restated Director Deferred Fee Agreement, the

Insured’s Beneficiary(ies) shall be entitled to an amount equal to $_________,

or one hundred percent (100%) of the net at risk insurance portion of the

proceeds, whichever amount is less.  The

net at risk insurance portion is the total proceeds less the cash value of the

Policy.    If the Insured dies after

Normal Retirement Age as defined in the Second Amended and Restated Director

Deferred Fee Agreement, the Insured’s beneficiaries shall be entitled to an

amount equivalent to the Deferral Account maintained by the Bank for the

Insured as of the calendar year end of the year preceding the year of the

Insured’s death, or one hundred percent (100%) of the net at risk portion of

the proceeds, whichever amount is less.   

However, the Insured, the Insured’s transferee and the Insured’s

beneficiary(ies) or estate shall have no rights or interests in the Policy for

that portion of the death proceeds designated in this paragraph (2) if the

Insured received payment in full of the Deferral Account from the Bank under

the Second Amended and Restated Director Deferred Fee Agreement.

 

Ownership

 

3.             The Owner of the

Policy shall be Clovis Community Bank. 

The Owner shall have all ownership rights in the Policy except as may be

specifically granted to the Insured or the Insured’s transferee in paragraph

(4) of this endorsement.

 

4.             The Insured or the

Insured’s transferee shall have the right to assign his or her rights and

interests in the Policy with respect to that portion of the death proceeds

designated in paragraph (2) of this endorsement, and to exercise all settlement

options with respect to such death proceeds.

 

5.           Notwithstanding the

provisions of paragraph (4) above, the Insured, the Insured’s transferee, or

the Insured’s beneficiary(ies) or estate shall have no rights or interests in

the Policy with respect to that portion of the death proceeds designated in

paragraph (2) of this endorsement if the Insured’s service with Clovis Community

Bank terminated because of Termination for Cause under the Second Amended and

Restated Director Deferred Fee Agreement.

 

Modification of Assignment

Provisions of the Policy

 

6.             Upon the death of

the Insured, the interest of any collateral assignee of the Owner of the Policy

designated in (3) above shall be limited to the portion of the proceeds

described in paragraph (1) above.

 

 

5

 

Owner’s

Authority

 

7.             The Insurer is

hereby authorized to recognize the Owner’s claim to rights hereunder without

investigating the reason for any action taken by the Owner, including the

Owner’s statement of the amount of premiums the Owner has paid on the

Policy.  The signature of the Owner

shall be sufficient for the exercise of any rights under this Endorsement and

the receipt of the Owner for any sums received by it shall be a full discharge

and release therefore to the Insurer. 

The Insurer may rely on a sworn statement in form satisfactory to it

furnished by the Owner, its successors or assigns, as to their interest and any

payments made pursuant to such statement shall discharge Clovis Community Bank

accordingly.

 

8.                                     Any

transferee’s rights shall be subject to this Endorsement.

 

9.                                     The Owner

accepts and agrees to this split dollar endorsement.

 

10.           The undersigned is

signing in a representative capacity and warrants that he or she has the

authority to bind the entity on whose behalf this document is being executed.

 

 

Signed

by Clovis Community Bank at Clovis, California, this           day of                              , 2002.

 

	

  Clovis

  Community Bank

  
	

   

  	

   

  
	

  By:

  	

   

  	

   

  
	

   

  	

  Daniel

  J. Doyle

  
	

  Its:

  	

  President

  & Chief Executive Officer

  

 

The Insured accepts and agrees to the foregoing and, subject to the

rights of the Owner as stated above, designates                                                                                    

, (relationship:                                        ) as primary beneficiary(s)

and                                                                                                                                                           ,

(relationship:                                                   ) as secondary

beneficiary of the portion of the proceeds described in (2) above.

 

Signed

at Clovis, California, this            

day of                            

, 2002.

 

 

	

  The

  Insured

  
	

   

  	

   

  
	

   

  	

   

  

 

 

6

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