Document:

EXHIBIT 10.36

    

    

    CHANGE OF CONTROL AGREEMENT

    

    

    This Change of Control Agreement (this “Agreement”) is entered into as of July 1, 2021 by and between FIRST NORTHERN BANK OF DIXON, a California banking corporation (the
      “Bank”), and Denise Burris (the “Executive”).

    

    

    RECITAL:

    

    

    The parties desire to set forth the terms of Executive’s additional compensation in the event of the Executive’s termination due to a Change of Control of the Bank.

    

    

    NOW, THEREFORE, the parties hereto agree as follows:

    

    

    	

          	1.	
            Change of Control.  Change of Control means the occurrence of any of the following events with
              respect to the Bank or its parent holding Company, FIRST NORTHERN COMMUNITY BANCORP (“Bancorp”)

          

    

    

    	

          	a.	
            Merger.  A merger into or consolidation with another corporation, or merger of another
              corporation into Bank of Bancorp, and as a result less than 50% of the combined voting power of the resulting corporation immediately after the merger or consolidation is held by persons who were stockholders of the Bank or Bancorp
              immediately before the merger or consolidation.

          

    

    

    	

          	b.	
            Acquisition of Significant Share Ownership.  One person, or more than one person acting as a
              group, acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) ownership of stock possessing thirty percent (30%) or more of the total voting power of the
              stock of Bank or Bancorp (this constitutes acquisition of “Effective Control”).  No Change of Control shall occur if additional voting shares are acquired by a person or persons who possessed Effective Control prior to acquiring additional
              shares.  This subpart (b) shall not apply to beneficial ownership of voting shares held in a fiduciary capacity by an entity of which Bank or Bancorp directly or indirectly beneficially owns fifty percent (50%) or more of the outstanding
              voting securities, or voting shares held by an employee benefit plan maintained for the benefit of the Bank’s employees.

          

    

    

    	

          	c.	
             Change in Board Composition.  A majority of the members of the Board of Directors of Bank or
              Bancorp is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board of Directors of Bank or Bancorp before the date of the appointment or election.  This
              subparagraph shall only apply with respect to Bancorp if no other corporation is a majority shareholder of Bancorp.

          

    

    

    	

          	d.	
            Bancorp.  A Change of Control shall only occur with respect to Bancorp if Bancorp (i) is a
              majority shareholder of the Bank; (ii) is a majority shareholder of any corporation in a chain of corporations in which each corporation is a majority shareholder of another corporation in the chain, ending in the Bank; or (iii) is otherwise
              a “Relevant Corporation” as that term is used and defined in Internal Revenue Code (“Code”) Section 409A (“Section 409A”).  For purposes of this section, majority shareholder means a shareholder owning more than 50% of the total fair market
              value and total voting power of the Bank, Bancorp, or a corporation in the chain referenced above.  No Change of Control shall occur unless the event constitutes a “Change of Ownership of a Corporation” or a “Change in the Effective Control
              of a Corporation” as defined under Section 409A.

          

    

    

    	

          	2.	
            Resignation due to Change of Control.  The Executive shall be entitled to the benefits provided in Section 3 of this Agreement if the
              Executive resigns within six (6) months following a Change in Control in response to one or more of the following events, occurring after the Change in Control; (i) a material diminution in the Executive’s base compensation; (ii) a material
              diminution in the Executive’s authority, duties, or responsibilities; (iii) a material diminution in the authority, duties, or responsibilities of the supervisor to whom the Executive is required to report, including a requirement that the
              Executive report to a corporate officer or employee instead of reporting directly to the Board; (iv) a material diminution in the budget over which the Executive retains authority; or (v) a material change in geographic location at which the
              Executive must perform services.  In the event of Executive’s resignation, Executive’s employment will be deemed to have been involuntarily terminated under Section 3 of this Agreement only if Executive delivers written notice of one or more
              conditions described above to the employer at least thirty (30) days prior to resignation and the employer does not remedy the conditions within thirty (30) days after notice is received.

          

    

    

    
      

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          	3.	
            Involuntary Termination.

          

    

    

    	

          	a.	
            Compensation.  If within six (6) months following Bank’s formal approval of a Change of Control
              that then occurs, Executive’s employment is terminated without cause (i.e., termination for cause includes poor performance, insubordination, felony conviction, breach of ethics or morals adversely affecting  the Executive’s performance at
              Bank), or if Executive resigns pursuant to Section 2 of this Agreement, Executive shall receive:

          

    

    

    	

          	i.	
            200% of the sum of (i) Executive’s annual base salary as in effect on the date of the Change of Control and (ii) the average of the annual bonuses awarded to Executive by the Bank for
              the most recent three (3) consecutive years prior to the date of the Change of Control,

          

    

    

    	

          	ii.	
            Any incentive compensation earned but not yet paid,

          

    

    

    	

          	iii.	
            Any expenses reimbursable under the Bank’s policies and incurred but not yet reimbursed, and

          

    

    

    	

          	iv.	
            Outplacement may be considered.

          

    

    

    	

          	b.	
            Terms of Payment.  The payment to which Executive is entitled pursuant to this Section 3 shall be
              paid in a single installment within the earlier of (i) forty-five (45) days of termination or (ii) two and one-half (2 1⁄2) months after the end of the Executive’s taxable year in which the termination occurred, with no percent value or other
              discount.

          

    

    

    	

          	c.	
            Insurance.  Upon Termination of Employment within six (6) months following a Change of Control,
              Executive (and, where applicable, Executive’s dependents) shall be entitled to continuation coverage (as California’s Cal-COBRA provisions) under the group insurance plans maintained by the Bank, including life, disability and health
              insurance programs, for up to twenty-four (24) months, subject to the terms, condition s and limitations set forth in such plans.  For a period up to the first twelve (12) months of continuation coverage, the Bank shall pay the same portion
              of group insurance premiums for the Executive’s continued overage as is paid for other executives who are current employees.  If the Executive becomes eligible for comparable group insurance coverage in connection with new employment, the
              Bank shall no longer be responsible for the cost of continuation coverage.  Beginning with the thirteenth (13) month of continuation coverage, coverage may be continued at the Executive’s own expense.

          

    

    

    	

          	d.	
            Delayed Payments to Specified Employees.  If Executive is a Specified Employee as of the date the
              Executive ceases to be employed by Bank and separates from service with the Bank (the “Termination of Employment”), benefit payments under this subsection shall be delayed and shall not begin prior to the date that is six (6) months after the
              Termination of Employment (or, if earlier than the end of the six-month period, the date of death of the Executive).  Payments to which the Executive would otherwise be entitled during the first six (6) months following the Termination of
              Employment, but for this provision, shall be accumulated and paid on the first day of the seventh month following the Termination of Employment.  If Executive is a Key Employee of the Bank or any entity that is aggregated with the Bank under
              Code Section 414(b) or (c) as of December 31st of any year ) (the “Determination Date”), and the Bank of any entity that is aggregated with the Bank under Code
              section 414(b) or (c) has stock that is publicly traded on an established securities market or otherwise, the Executive shall be treated as a Specified Employee during the 12-month period beginning on the April 1st following the Determination Date.  An Executive is a Key Employee as of a Determination Date if the Executive meets the requirements of Code section 416(i)(1)(A)(i), (ii) or (iii)
              (applied in accordance with the regulations thereunder and disregarding section 416(i)(5) at any time during the twelve (12) months preceding the Determination Date.

          

    

    

    	

          	e.	
            Except as provided in this Section 3 or required by law, all of Executive’s employee benefits and compensation shall cease on the last day on which he performs services as an employee
              of the Bank.

          

    

    

    	

          	f.	
            Executive shall not be required to mitigate the amount of any payment or benefit contemplated by this Section 3 (whether by seeking new employment or otherwise) and no such payment or
              benefit shall be reduced by earnings that Executive may receive from any other source.

          

    

    

    
      

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          	g.	
            If employment is terminated due to a Change in Control of the Bank the Executive shall receive whatever rights may be specified pursuant to the Frist Northern Bank of Dixon Supplemental
              Employee Retirement Plan.

          

    

    

    	

          	4.	
            Employment Taxes.  All payments made pursuant to this Agreement shall be subject to withholding of applicable taxes.

          

    

    

    	

          	5.	
            Advice of Counsel.  Before signing this Agreement, Executive either (i) consulted with and obtained advice from Executive’s
              independent legal counsel in respect to the legal nature and operation of this Agreement, including its impact on executive’s rights, privileges and obligations; or (ii) freely and voluntarily decided not to have the benefit of such
              consultation and advice with legal counsel.

          

    

    

    	

          	6.	
            Term of Agreement.  The Bank agrees to continue, and Executive agrees this Agreement will remain in effect, from July 1, 2021 (the
              “Commencement Date”), until the earliest of (i) December 31, 2021 or (ii) the date on which Executive’s Termination of Employment, as applicable, provided that the terms and conditions of this Agreement shall automatically extend for
              consecutive one (1) year periods, on and after December 31, 2021 unless either Executive or the Bank notifies the other in writing at least sixty (60) days before the end of the then current term that, for any reason, the Executive or the
              Bank has elected not to extend the term.

          

    

    

    	

          	7.	
            Entire Agreement.  This Agreement supersedes and replaces (rather than supplements) all pervious oral or written agreements, memoranda,
              correspondence or other communications between the parties hereto to the extent they deal with Change of Control compensation described in the Agreement.

          

    

    

    	

          	8.	
            FDIC.  In addition, the payment of any and all Executive Benefits under this Plan shall be subject to and conditioned upon compliance with
              12 U.S.C. Section 1828(k) and any regulations promulgated thereunder, and any Executive Benefits and rights under the Plan shall be forfeited to the extent barred or prohibited by an action or order issued by the California Department of
              Financial Institutions, the FDIC, or any government agency which has jurisdiction over the Bank.

          

    

    

    	

          	9.	
            Law Governing Agreement.  This Agreement shall be governed by and construed in accordance with the laws of the State of California for
              contracts to be performed entirely within this state.

          

    

    

    	

          	10.	
            No Employment Agreement.  Nothing in this Agreement creates an employment contract or otherwise changes the at-will employment
              relationship between the Bank and the Executive.

          

    

    

    IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day herein first above written.

    

    

    	 	
            FIRST NORTHERN BANK OF DIXON

          
	 	 
	 	
            /s/  Louise A. Walker

          
	 	
            Louise A. Walker,

          
	 	
            President & Chief Executive Officer

          
	 	
            EXECUTIVE

          
	 	 
	 	
            /s/  Denise Burris

          
	 	
            Denise Burris,

          
	 	
            Executive Vice President, Chief Information Officer

          

    

    

  

   

  3EXHIBIT 10.37

    

    

    

    

    

    FIRST NORTHERN BANK

    

    

    EXECUTIVE RETIREMENT/RETENTION PARTICIPATION AGREEMENT

    FOR DENISE BURRIS

    

    

    
      

    

    

    This Executive Retirement/Retention Participation Agreement (the “Agreement”) is entered into as of this 1st day
      of July 2021, by and between First Northern Bank of Dixon, a California-chartered, FDIC-insured bank with its main office in Dixon, California (“Company”) and Denise Burris (the “Executive”).

    

    

    Whereas, the Executive has contributed substantially to the success of the Company and its parent corporation, First Northern
      Community Bancorp, and the Company desires that the Executive continue employment,

    

    

    Whereas, the Compensation Committee has reviewed and approved of this Agreement and the Executive’s participation herein, and approves
      of the Executive’s participation in the First Northern Bank Executive Deferral Plan (“Plan”) for any bonus amounts awarded to the Executive under the terms of this Agreement,

    

    

    Whereas, the Executive wishes to accept participation in this Agreement subject to all terms herein,

    

    

    Whereas, the Company and the Executive acknowledge that this Agreement is not a guarantee of employment and may be terminated as
      specified in 3.2 below,

    

    

    Now Therefore, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of
      which are hereby acknowledged, the parties hereto agree as follows:

    

    

    SECTION 1

    PURPOSE

     

    The purpose of this Agreement is to provide a supplementary Executive Retirement/Retention Award to the Executive that vests and becomes payable upon continued employment of the Executive to
      age 65, as described below.  The Executive Retirement/Retention Award shall be awardable to the Executive only upon achievement of goals specified by the Compensation Committee.  Once awarded, the Executive agrees to voluntarily defer 100% of the
      award into Plan, such deferral subject to all the terms of the Plan in addition to those specified in this Agreement.  Any capitalized term not defined herein shall have the meaning assigned to such term in the Plan.

    

    

    Amendments that may be made to the Plan from time to time shall apply to any Executive Retirement/Retention Awards granted and deferred under this Agreement.

    

    

    SECTION 2

    DEFINITIONS

      

    2.01 Board.  “Board” means the Board of Directors of the Company.

     

    
      

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      2.02 Code.  “Code” means the Internal Revenue Code of 1986, as amended from time to time.

    

     

    

    2.03 Compensation Committee.  “Compensation Committee” means the Compensation Committee of the Board.

    

    

    2.04 Disability.  “Disability” means that the Executive is (a) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment
      which can be expected to result in death or can be expected to last for a continuous period of not less than twelve months; or (b) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can
      be expected to last for a continuous period of not less than twelve months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering the Company’s employees.  The Company may, in its
      discretion, rely on a determination by the Social Security Administration or an insurance carrier (if the definition of “disability” applied by the carrier is consistent with this section) in determining whether the Executive has a Disability, and
      may require the Executive to submit proof of such determination.  The term “Disability” shall be interpreted consistently with Code section 409A.

    

    

    2.05 Early Termination Date.  “Early Termination Date” means any date on which the Executive’s Service with the Company ends prior to the Executive’s 65th birthday.

    

    

    2.06 ERISA.  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.

    

    

    2.07 Executive Retirement/Retention Award.  “Executive Retirement/Retention Award” means the bonus paid to the Executive, and immediately deferred, based on the extent to which the
      Performance Goal approved by the Compensation Committee was achieved.  The Compensation Committee shall determine and communicate to the Executive the Executive Retirement/Retention Award in advance of each year, except the initial Executive
      Retirement/Retention Award shall be communicated upon the execution of this Agreement.  The Executive agrees to immediately defer any and all Executive Retirement/Retention Awards into the Bank’s Executive Deferral Plan subject to all the terms of
      the Plan and those additional terms specified in this Agreement.

     

    2.08 Normal Termination Date.  “Normal Termination Date” means any date the Executive terminates Service on or after the Executive’s 65th birthday.

    

    

    2.09 Performance Goal.  “Performance Goal” means goals determined by the Compensation Committee the achievement of which shall result in the payment, and immediate deferral, of an
      Executive Retirement/Retention Award under this Agreement.  The Compensation Committee shall determine and communicate to the Executive the Performance Goal in advance of each year, except the initial Performance Goal shall be communicated upon the
      execution of this Agreement.

    

    

    2.10 Service.  “Service” means the period during which an Employee is employed by the Company commencing with the Employee’s first day of employment and continuing through the
      termination of such employment.

    

    

    SECTION 3

    VESTING OF EXECUTIVE RETIREMENT/RETENTION AWARDS

     

    3.1 Vesting.  Executive Retirement/Retention Awards granted to the Executive shall be payable to the Executive according to the terms of the Plan and the additional
      terms of this Section 3.1.  Unless otherwise provided in this section, the Executive shall become fully vested in his Executive Retirement/Retention Award balance as of his 65th
      birthday, provided he remains in continuous Service through his Normal Termination Date.

    

    

    	

          	(a)	
            Voluntary Termination at an Early Retirement Date – If the Executive voluntarily terminates employment without Good Reason at an Early
              Termination Date, then the Executive shall forfeit any unvested deferral balances derived from the deferral of Executive Retirement/Retention Awards granted under the terms of this Agreement.

          

    	

          	(b)	
            Involuntary Termination without Cause or Voluntary Termination for Good Reason– If the Executive’s
              employment is involuntarily terminated without Cause (as described in Section 3.3 of this Agreement), or voluntarily terminated for Good Reason, the Executive shall vest 100% in all deferral balances derived from Executive
              Retirement/Retention Awards granted under this Agreement.  The payment of such amounts shall be determined by the terms of the Plan.

          

    	

          	(c)	
            Involuntary Termination With Cause – If the Executive’s employment is involuntarily terminated with Cause (as described in Section 3.3 of this
              Agreement), the Executive shall forfeit any and all deferral balances derived from the deferral of Executive Retirement/Retention Awards granted under the terms of this Agreement.

          

    

    

    
      

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          	(d)	
            Termination Due to Death, Disability, or Change in Control -- If the Executive’s employment is terminated due to the Executive’s death,
              Disability, or within 24 months of a Change in Control, then the Executive shall vest 100% in all deferral balances derived by Executive Retirement/Retention Awards granted under this Agreement.  The payment of such amounts shall be
              determined by the terms of the Plan.

          

     

    3.2 Change in Employment Status.  If the Compensation Committee determines that the Executive’s performance is no longer at a level which deserves reward through
      participation in this Agreement, but does not terminate the Executive’s employment, participation herein and eligibility to receive additional Executive Retirement/Retention Awards shall cease.  The amount payable to the Executive under the terms of
      this Agreement shall be determined based on Executive Retirement/Retention Awards granted prior to a change in employment status subject to the provisions of 3.1 above.

    

    

    3.3 Discharge for Cause.  Notwithstanding any other provisions of this Agreement, no benefit shall be paid under the terms of this Agreement if the Executive’s
      employment with the Company has been terminated for “Cause.” Cause shall mean that the Executive has:

     

    	

          	(a)	
            Willfully and intentionally violated any state or federal banking or securities laws or the bylaws, rules, policies or resolutions of the Company or the rules or regulations of the
              Federal Deposit Insurance Corporation, Federal Reserve Board or other regulatory agency or governmental authority having jurisdiction over the Company; or

          

    	

          	(b)	
            Been convicted of any felony or a crime involving moral turpitude, or willfully and intentionally committed a fraudulent or dishonest act; or

          

    	

          	(c)	
            Willfully and intentionally disclosed, without authority, any secret or confidential information concerning the Company or any customer of the Company or taken any action which the
              Board determines, in its sole discretion and subject to good faith, fair dealing and reasonableness, constitutes unfair competition with or induces any customer to breach any contract with the Company.

          

     

    SECTION 4

    BENEFITS PAYABLE

     

    Benefits payable to the Executive, or to the Executive’s Beneficiaries shall be determined based on the terms of the Plan and the terms of this Agreement.  Any benefit payable is subject to the
      vesting provisions of Section 3 of this Agreement.

     

    4.1 Income Tax Withholding. The Company shall withhold from any amount paid under this Agreement any and all federal, state and local income taxes and any other
      taxes that are required to be withheld from such payment under applicable law.

     

    4.2 FICA Tax Withholding. The Company shall withhold from the Executive’s other compensation and/or from the first payments to be made under this Agreement, the
      Executive’s share of FICA and other employment taxes imposed on the value of the benefits payable from this Agreement when such taxes, in the sole judgment of the Company, are required to be withheld under applicable law.  If any law provides the
      Company discretion as to the timing of tax withholding, the Company shall have the sole right determine when taxes shall be withheld.

     

    4.3 Unfunded Status and Source of Benefit Payments. This Agreement is intended to be unfunded for purposes of both ERISA and the Code. This Agreement does not
      require any segregated or separate assets. The benefits provided under this Agreement shall be paid solely from the general assets of the Company.

    

    

    SECTION 5

    BENEFICIARY DESIGNATION AND ADMINISTRATION

    

    

    All beneficiary designation and Executive elections shall be governed by the terms of the Plan. Except for the communication of Performance Goals and Executive Retirement/Retention Awards, and
      the additional vesting requirement of Section 3 of this Agreement, the administration of the deferral balances generated by this Agreement shall be governed by the terms of the Plan.

    

    

    
      

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    IN WITNESS WHEREOF, the Company and Executive have caused this Agreement to be duly executed for and on behalf of the Company by its
      duly authorized officers, and on behalf of the Executive and the Executive’s beneficiaries, on this the 1st day of July 2021.

     

    	 	
            FIRST NORTHERN BANK

            Louise Walker

          
	 	 	 
	 	
            By:

          	
            /s/ Louise Walker

          
	 	 	 
	 	
            Title:

          	
             President/CEO

          

     

    	 	
            EXECUTIVE – Mrs. Denise Burris

          
	 	 	 
	 	
            By:

          	
            /s/ Denise Burris

          
	 	 	 
	 	
            Title:

          	
             Executive Vice President / Chief Information Officer

          

    

    

  

  

  

   

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