Document:

Exhibit 10.2

CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT (this “Agreement”) is entered into as of March  21st, 2007 (the “Effective
Date”), by and between Vyyo Inc.,
a Delaware corporation having its principal place of business at 6625 The
Corners Parkway, Suite 100, Norcross, Georgia 30092 (collectively with its
subsidiaries and affiliates, the “Company”),
and James A. Chiddix, an individual  (“Consultant”) (collectively the “Parties” and individually a “Party”).

1.                                       Services.

a.                                       Scope of Services.  During
the Term (as defined below) of this Agreement, Consultant shall provide
services to the Company as described on Exhibit
A for on average 40 hours each calendar month (the “Services”). 
The parties acknowledge that Consultant shall have the discretion to
determine the timing of when Services will be performed, but Consultant’s
exercise of such discretion shall take into account the Company’s needs.  The parties further acknowledge that
Consultant shall be entitled to take vacations for reasonable periods from
time-to-time. Consultant shall perform the Services in a careful, professional
and workmanlike manner and to the best of Consultant’s ability.  The parties may mutually agree to adjust the
scope of the Services and Consultant agrees to use its reasonable efforts to
accommodate any such change in the scope of the Services.  If in the performance of his Services
hereunder, Consultant is spending over the course of six months on average more
than 40 hours per week, the parties shall mutually agree to discuss in good
faith and modify the compensatory terms of this Agreement.  This Agreement governs the terms and
conditions of Consultant’s Services to the Company as set forth in this
Agreement and does not affect, and is otherwise unrelated to, Consultant’s membership
on the Company’s Board of Directors, if applicable.

b.                                      Loyalty.  Without
limiting the other terms of this Agreement, Consultant agrees that Consultant
will not use any of the Company’s proprietary information provided under this
Agreement or in connection with the provision of Services, to compete with the
Company or its products.  In addition,
Consultant agrees that at all times during the term of this Agreement he shall
act in the best interests of the Company.

2.                                      Independent
Contractor.  It is understood and agreed, and it is the
intention of the Parties, that Consultant is an independent contrac­tor, and
not the employee, agent, joint venturer or partner of the Company for any
purposes whatsoever.  Consultant is not
entitled to participate in any plans, arrangements or distributions pertaining
to any employee benefits of the Company’s employees.    Consultant shall be entirely and solely
responsible for his acts while engaged in the performance of Services
hereunder, and shall have no right, power or authority to create any
obligation, express or implied, on behalf of the Company.

3.                                       Compensation.

a.                                       Fees.  During the Term, the Company shall pay
Consultant Fifteen Thousand Dollars ($15,000) per month, in accordance with the
Company’s normal payroll practices.

b.                                      Stock Option Grant.  The
Company shall grant Consultant an option to purchase 250,000 shares of the
Company’s Common Stock at the fair market value of the Company’s Common Stock
on the date of grant (the “Stock Option”).  The Stock Option will be governed by the
Company’s Third Amended and Restated 2000 Employee and Consultant Equity
Incentive Plan and Consultant’s individual option agreement.  Unless accelerated as provided in Section 4 (“Acceleration
Benefits”) below or in Section 5(c) (“Effect of 
Termination”) below, the Stock Option will vest in equal monthly
installments over 48 months, beginning on April 20, 2007, subject to continued
consultancy.  If there is any conflict
between this Agreement and the terms of the option agreement, the terms of this
Agreement will control.

c.                                       Expenses.  Consultant shall use his best business
judgment when incurring expenses and shall respond in good faith to any future
request by the Company that Consultant obtain prior approval of such expenses where
the circumstances dictate.  Consultant
shall be reimbursed for all reasonable and necessary expenses incurred in
performing the Services. Reimbursable expenses shall be invoiced to the Company
on a monthly basis, together with all supporting documentation required by the
Company.  All such expenses shall be
billed at Consultant’s actual out-of-pocket cost, without surcharge.  The Company shall reimburse such expenses
within 30 days of its receipt of Consultant’s invoice and sufficient
documentation.

d.                                      Taxes.  Consultant shall be responsible for the
payment of all applicable taxes, including, but not limited to, federal income
tax, employment taxes and any other taxes and shall indemnify the Company for
the same.  In the event the Company is
required, or deems it appropriate, to withhold applicable taxes, Consultant
shall receive payment net of such withheld taxes.

4.                                       Acceleration Benefits.

a.                                       Financing Event.  If
the Company is a party to a Financing Event (defined below), and the Company’s
Board of Directors or Audit Committee, as applicable, determines that
Consultant contributed in a material way to the Financing Event, then the
following number of Stock Options will vest: 
(i) if the closing of the Financing Event occurs on or before March 31,
2007, then 60,000 of the outstanding and unvested Stock Options will vest
immediately; or (ii) if the closing of the Financing Event occurs on or before
December 31, 2007, then 30,000 of the outstanding and unvested Stock Options
will vest immediately.  If vesting of the
Stock Options is accelerated pursuant to this Section, the remaining unvested
Stock Options shall be redistributed pro-rata in equal monthly installments
over the 48-month vesting period set forth in Section 3(b).  For purposes of this Section, a “Financing Event” shall mean the receipt by the Company of $15
million in one or more related transactions of equity or debt, or a combination
of equity or debt.  For purposes of this
Section, Consultant will be considered to have contributed to a Financing Event
“in a material way” if, in the Board of
Directors’ or Audit Committee’s determination, the Financing Event occurs as a
result of his direct and active provision of the Services listed on Exhibit A.

b.                                      Spectrum Overlay.  If
the Company’s Spectrum Overlay product is approved by Time Warner Inc. (“Time Warner”) or Comcast Corporation (“Comcast”)
and sales of the Spectrum Overlay product to either such customer generates $10
million in booked revenue on or before December 31, 2008 (the “Required Revenue”), and if the Company’s Board of Directors
or

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Audit Committee,
as applicable, determines that Consultant contributed in a material way to the
completion of such orders from either Time Warner or Comcast, as the case may
be, then (i) 30,000 of the outstanding and unvested Stock Options will vest immediately
upon the Company’s receipt of the Required Revenue from either Time Warner or
Comcast, as the case may be, and (ii) the remaining number of outstanding and
unvested Stock Options (other than the number of Stock Options that may vest
monthly through December 31, 2008) will vest immediately upon the Company’s
subsequent receipt of the Required Revenue from either Time Warner or Comcast,
as the case may be.  For purposes of this
Section, Consultant will be considered to have contributed to the booking of
Required Revenue “in a material way” if, in the Board of Directors’ or Audit
Committee’s determination, the approval and sales of our products to such
customers occur as a result of his direct and active provision of the Services
listed on Exhibit A.

For
the avoidance of doubt and as an example only, if the Company closes a
Financing Event on May 31, 2007 (at which time 30,000 of the outstanding and
unvested Stock Options will immediately vest) and also books the Required
Revenue from Time Warner in December 2007 prior to booking the Required Revenue
from Comcast, then an additional 30,000 of the outstanding and unvested Stock
Options will immediately vest upon booking of the Required Revenue from Time
Warner.  As of December 20, 2007, an
aggregate of 112,080 of the outstanding and unvested Stock Options will have
vested (30,000 Stock Options related to a Financing Event, 30,000 Stock Options
related to booking of Required Revenue from Time Warner and 52,080 Stock
Options that vest monthly (5,208 per month for 10 months)).  If the Company subsequently books the
Required Revenue from Comcast in 2008, then 75,424 of the outstanding and
unvested Stock Options will vest immediately upon booking of the Required Revenue
from Comcast, with the remaining 62,496 Stock Options (5,208 per month for 12
months) vesting on an equal monthly basis through December [x], 2008.  In all cases, the preceding example assumes
that Consultant has contributed in a material way to the events referenced.

c.                                       Change of Control.  If
the Company enters into a definitive agreement on or before December 31, 2008
which would result in a Change of Control (defined below) of the Company, then
all of Consultant’s outstanding and unvested Stock Options granted under this
Agreement will vest immediately as of the closing of the Change of
Control.  For purposes of this Section, a
“Change of Control” means (i) a sale of
all or substantially all of the Company’s assets; (ii) any merger,
consolidation or other business combination transaction of the Company with or
into another corporation, entity or person, other than a transaction in which
the holders of at least a majority of the shares of the Company’s voting
capital stock outstanding immediately prior to such transaction continue to
hold (either by such shares remaining outstanding or by their being converted
into shares of voting capital stock of the surviving entity) a majority of the
total voting power represented by the shares of the Company’s voting capital
stock (or the surviving entity) outstanding immediately after such transaction;
or (iii) the direct or indirect acquisition (including by way of a tender or
exchange offer) by any person, or persons acting as a group, of beneficial
ownership or a right to acquire beneficial ownership of such shares
representing a majority of the voting power of the then outstanding shares of
the Company’s capital stock.

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5.                                       Term;
Termination.

a.                                       Term.  Unless sooner terminated as provided below,
the Agreement will continue in effect
for a period of one year (the “Term”).  On each anniversary of the Effective Date,
the Term will automatically be extended for a period of one year unless
otherwise terminated in accordance with this Agreement.

b.                                      Termination.  Either Party
may terminate this Agreement on 30 days prior written notice.  Either Party may terminate this Agreement
immediately and without prior notice if the other Party is in breach of any
material provision of the Agreement.

c.                                       Effect of Termination. 
Following termination or expiration of this Agreement, the Company shall
be obligated to pay Consultant for Services provided through the date of
termination or expiration.  Termination
of this Agreement for any reason shall not affect the obligations of the Parties
under Section 6 of this Agreement entitled “Trade Secrets.”  If the Company terminates this Agreement
without cause, Consultant’s unvested Stock Options shall continue to vest for
three months after the date of termination, at which time all remaining
unvested Stock Options shall be automatically forfeited.  Except as may be otherwise provided in this
Agreement, upon termination of this Agreement all unvested Stock Options shall
be automatically forfeited.

6.                                     Trade Secrets.

a.                                     Definition.  The Parties acknowledge and agree that during
the Term of this Agreement and in the course of the discharge of his duties
hereunder, Consultant shall have access to and become acquainted with the
following information concerning the operation of the Company and the Company’s
affiliates, and that of the Company’s clients and customers:  confidential information, future plans,
business forecasts, data and other technical information, test data, customer
lists, research and development activities, marketing plans and strategies,
processes, know-how and other trade secrets and proprietary information (the “Confidential Information”).

b.                                     Duty
of Confidentiality.  Consultant agrees that he shall not disclose
any Confidential Information, directly or indirectly, to any other person or
use such Confidential Information in any way, either during the Term of this
Agreement or at any other time thereafter, except as is required in the course
of Consultant’s Services to the Company, or as otherwise required by applicable
law.  Consultant further agrees that all
files, records, documents, equipment and similar items relating to the Company’s
business, whether prepared by Consultant during the term of this Agreement­ or
by others, are and shall remain exclusively the property of the Company.

c.                                     Excluded
Information.  The Parties agree that the prohibitions of
this Section 6 shall not apply to any information which:

(i)                                    At the time of
disclosure is in the public domain;

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(ii)                                 After disclosure becomes
a part of the public domain through no act or omission of Consultant;

(iii)                              Was known by or in the
possession of Consultant prior to disclosure by the Company; or

(iv)                             Is rightfully received by
Consultant from third parties not employed by the Company.

7.                                      Miscellaneous
Provisions.

a.                                      Notices. 
Any notice required to be given pursuant to this Agreement shall be
effective only if in writing and delivered personally or by mail.  If given by mail, such notice must be sent by
registered or certified mail, postage prepaid, and mailed to the Parties at the
addresses set forth on the signature page hereof, or at such other addresses as
the Parties may designate from time to time by written notice.  Mailed notices shall be deemed received two
business days after the date of deposit in the mail.

b.                                    Partial
Invalidity.  If any Section of this Agreement or the
application thereof to any person or circumstance shall be held to be invalid
or unenforceable to any extent, the other Sections of this Agreement (or the
application of the invalid Section to persons or circumstances other than those
to which it is held invalid or unenforceable) shall not be affected thereby,
and each term and provision of this Agreement shall be valid and be enforceable
to the fullest extent permitted by law.

c.                                     Waiver. 
No waiver of any right hereunder shall be effective for any purpose
unless in writing and signed by the Party hereto possessing said right.  No such waiver shall be construed to be a
waiver of any subsequent right, term or provision of this Agreement.

d.                                    Attorneys’
Fees; Costs.  If any Party to this Agreement institutes any
legal action or proceeding against another Party to enforce or construe any of
the provisions of this Agreement, or to determine the validity thereof, the
Party prevailing in such action or proceeding shall be entitled to recover from
the other Party their costs of the action, including as an element of damages
reasonable attorneys’ fees, together with such costs and fees incurred in
enforcing any judgment or decisions entered therein.  The Company shall pay the reasonable and
actual costs billed to Consultant for review of this Agreement by his legal
counsel.

e.                                     Governing
Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, applicable to
contracts made and to be performed wholly within the State of Delaware, and
without reference to the choice of law principles of the State of Delaware, or
any other state.

f.                                        Arbitration. 
Any disputes arising under this Agreement shall be submitted to binding
arbitration by one neutral arbitrator associated with JAMS/Endispute who is
mutually acceptable to the Parties.  The
County of Gwinnett, Georgia, U.S.A. shall be the venue for any

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proceeding, which
proceeding shall be conducted in accordance with the  rules and procedures of JAMS/Endisptue and
not by court action, except as provided by Delaware law for judicial review of
arbitration proceedings.  Any decision or
award entered as a result of such arbitration shall be final and binding upon
all Parties.  The filing of a judicial
action to enable the recording of a notice of a pending action, for orders of
injunction or other provisional remedies, shall not constitute a waiver of the
right to arbitrate under this provision. 
The Parties agree to the exclusive personal jurisdiction of courts of
general jurisdiction in Gwinnett, Georgia, U.S.A., for enforcement of such
arbitration awards, agree to accept any service of process by personal service,
facsimile, express or overnight mail, or regular mail, return receipt
requested, at the address listed below as being binding on such Party and agree
to accept such arbitrators and court as being the sole and exclusive forum and
venue for hearing such claims, disputes, controversies, breaches or similar events.  The Parties agree to waive any defense of forum non conveniens or improper venue respecting such
courts.  The cost of the arbitration
shall be borne by the losing Party or in such proportion as the arbitrator
shall decide.

g.                                     Representation
by Independent Counsel.  Consultant acknowledges that by signing this
Agreement, Consultant is deemed to have consulted with counsel of Consultant’s
own choosing in connection with this Agreement. 
Each Party represents that they have read this Agreement in full and
understands and voluntarily consents to each and every provision contained in
this Agreement.

h.                                    Compliance.    Consultant represents and warrants to the Company
that he is not restricted or prohibited from entering into this Agreement and
providing the Services contemplated hereby, and that nothing in this Agreement
conflicts with any contract or employment obligation of Consultant.  Nothing contained in this Agreement shall
require or  permit Consultant or the Company
to do any act inconsistent with the requirements of any statute, regulation or
rule of the United States or any State, including, but not limited to the
Foreign Corrupt Practices Act or any similar law, regulation or rule that may
be in effect from time to time, or any contract or employment relationship of
the Consultant of which either the Consultant or the Company may become aware
in the future, or any of Consultant’s fiduciary obligations to any company,
including without limitation, the Company.

i.                                         Entire
Agreement.  This Agreement and the attached Exhibit(s)
contain the entire agreement and understanding between the Parties related to
Consultant’s Services to­ the Company and super­sedes all prior agreements and
understandings, oral or written.  No
modification, termination or attempted waiver shall be valid unless in writing
and signed by Consultant and the Company.

j.                                          Execution.  This
Agreement may be executed in one or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that both parties need not sign the same
counterpart.  In the event that any
signature is delivered by facsimile transmission, such signature shall create a
valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such facsimile
signature page were an original thereof.

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IN WITNESS WHEREOF, the
undersigned have executed this Agreement as set forth below.

	
  Date: March 21, 2007

  	
   

  	
  Date: March 21, 2007

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vyyo
  Inc.

  	
   

  	
  James A. Chiddix

  
	
  6625 The Corners
  Parkway, Suite 100

  	
   

  	
  6625 The Corners Parkway, Suite 100

  
	
  Norcross,
  Georgia 30092

  	
   

  	
  Norcross, Georgia 30092

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
      /s/ Davidi Gilo

  	
   

  	
   

  	
  /s/ James A. Chiddix

  	
   

  
	
  Name:

  	
  Davidi Gilo

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Chairman

  	
   

  	
   

  	
   

  
									

 

 

 7Exhibit 10.66

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

 

This Amended and Restated
Employment Agreement is made and is effective as of December 15, 2006, by and
between Santa Lucia Bank ("Bank") and Larry H. Putnam
("Executive") and amends and restates in its entirety that certain Employment
Agreement dated August 14, 1998 between the parties.  

 

WHEREAS, Executive is
currently employed by the Bank in the capacity as Executive Vice President and
Chief Financial Officer, and Executive's background, expertise and efforts have
contributed to the success and financial strength of the Bank; and

 

WHEREAS, the Bank wishes
to assure itself of the continued opportunity to benefit from Executive's
services for the period provided in this Agreement, and Executive wishes to
serve in the employ of the Bank on a full-time basis solely in accordance with
the terms hereof for such purposes; and

 

WHEREAS, the Board of
Directors of the Bank ("Board") has determined that the best
interests of the Bank would be served by Executive's continued employment with
the Bank under the terms of this Agreement; 

 

NOW, THEREFORE, in order
to effect the foregoing, the parties hereto wish to enter into an employment
agreement on the terms and conditions set forth below.  Accordingly, in consideration of the premises
and the respective covenants and agreements of the parties herein contained,
and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.             Definitions.

 

(a)  "Agreement" means this
employment agreement and any amendments hereto complying with Section 13(a)
hereof.

 

(b)  "Board" means the Board of
Directors of the Bank unless the context otherwise requires.

 

(c)  "Cause" means:

 

(i)                                     Executive's
personal dishonesty, incompetence or willful misconduct;

 

(ii)                                  Executive's
breach of fiduciary duty involving personal profit;

 

(iii)          Executive's intentional failure to
perform Executive's duties for the Bank after a written demand for performance
is given to Executive by the Board which demand specifically identifies the manner
in which the Board believes that Executive has not performed his duties;

 

 1
 

(iv)          Executive's willful violation of any
law, rule, regulation or final cease and desist order (other than traffic
violations or similar minor offenses) to the extent detrimental to the Bank's
business or reputation; or

 

(v)           Executive's material breach of any
provision of this Agreement.

 

(d)  "Change in Control" means a
change of control of the Bank, or  Santa
Lucia Bancorp (“Bancorp”), of a nature that would be required to be reported in
response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any
similar item on any similar schedule or form) promulgated under the Securities
Exchange Act, whether or not the Bank or Bancorp is then subject to such
reporting requirement; provided, however, that a transaction in which the Bank
or Bancorp is the acquiror regardless of the form of the transaction shall not
be a Change in Control for purposes of this Agreement; provided further
however, that without limitation, a Change in Control shall be deemed to have
occurred if:

 

(i)            there is a transfer, voluntarily or
by hostile takeover, by proxy contest

(or similar action),
operation of law, or otherwise, of Control of the Bank or Bancorp;

 

(ii)           any Person is or becomes the "beneficial
owner" (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange
Act or any successor provisions thereof), directly or indirectly, of securities
of the Bank or Bancorp representing 20% or more of the combined voting power of
the Bank's or Bancorp’s then outstanding securities (other than in the case of
the ownership by Bancorp of Bank securities);

 

(iii)          the individuals who were members of
the Board immediately prior to a meeting of the shareholders of the Bank or
Bancorp, which meeting involves a contest for the election of directors, do not
constitute a majority of the Board following such meeting or election;

 

(iv)          a merger is completed in which the
Bank or Bancorp is not the surviving entity (unless the stockholders of Bank or
Bancorp, as the case may be, immediately before such merger own immediately
after such merger more than a majority of the voting securities of the
surviving entity), a consolidation or sale of all or substantially all of the
assets of the Bank or Bancorp; or

 

(v)           there is a change, during any period
of two consecutive years, of a majority of the Board or of the board of
directors of Bancorp as constituted as of the beginning of such period, unless
the election of each director who is not a director at the beginning of such
period was approved by a vote of at least two-thirds of the directors then in
office who were directors at the beginning of such period.

 

(e)  "Code"  shall mean the Internal Revenue Code of 1986,
as amended.

 

(f)  "Control"  means the possession, direct or indirect, by
any Person or "group" (as defined in Section 13(d) of the Securities
Exchange Act) of the power to direct or cause the direction 

 2
 

of the management
policies of the Bank or Bancorp, whether through ownership of voting
securities, by contract or otherwise, and in any case means the ability to
determine the election of a majority of the directors of the Bank or Bancorp.

 

(g)  "Disability" means physical
or mental illness resulting in Executive's absence on a full-time basis from
Executive's duties with the Bank or Bancorp for 180 calendar days, subject to
the procedure described in Section 7(a).

 

(h)  "Expiration" means the
termination of this Agreement (including Executive's employment hereunder) and
of any further obligations of the parties (except as specified in this
Agreement) upon completion of the Term.

 

(i)  "Person" means an individual,
a group acting in concert, a corporation, a partnership, an association, a
joint stock company, a trust, any unincorporated organization, a government or
political subdivision thereof, or any other entity whatsoever.

 

(j)  "Term" means the initial
term of this Agreement and any extensions hereof, as provided in Section 4,
prior to a Change in Control.

 

(k)  "Termination" or
"Terminate(d)" means the termination of Executive's employment
hereunder for any of the following reasons unless the context indicates
otherwise:

 

(i)            Retirement by Executive;

 

(ii)           Death of Executive;

 

(iii)          Disability;

 

(iv)          Expiration;

 

(v)           Resignation;

 

(vi)          Termination Without Cause; and

 

(vii)         Termination for Cause.

 

 

(l) "Termination
Without Cause" or "Terminate(d) Without Cause" means the
cessation of Executive's employment hereunder for any reason except:

 

(i)            A resignation by Executive;

 

(ii)           Termination for Cause;

 

(iii)          Retirement;

 

 3
 

(iv)          Disability;

 

(v)           Death; or

 

(vi)          Expiration.

 

(m)  “Total Salary” shall mean the total amount of
salary paid Executive in the prior 12 months.

 

2.             Employment. 
The Bank hereby agrees to continue to employ the Executive, and the Executive
hereby agrees to continue to serve the Bank, for the period stated in Section 4
hereof and upon the terms and conditions set forth herein.

 

3.             Position and Responsibilities.  The Executive shall serve as Executive Vice
President and Chief Financial Officer of the Bank and, subject to the
provisions of Section 5 below, shall have such responsibilities, duties and
authority as are generally associated with such positions and as may from time
to time be assigned to the Executive by the Board that are consistent with such
responsibilities, duties and authority. 
During the Term of this Agreement, the Executive shall devote all his
time, attention, skill and efforts during normal business hours to the business
and affairs of the Bank; provided, however, this provision shall not preclude
Executive from serving as a Director or member of a committee of any other
organization involving no conflict of interests with the interests of the Bank,
from engaging in charitable and community activities and from managing his
personal investments, provided that such activities do not materially interfere
with the regular performance of his duties and responsibilities under this
Agreement.

 

4.             Term of Agreement.  Subject to the terms and provisions of this
Agreement, this Agreement and the period of Executive's employment shall be
deemed to have commenced as of December 15, 2006, and shall continue for an
initial term expiring on December 31, 2007, unless extended as provided
herein.  Prior to a Change in Control,
the initial term shall automatically be extended for an additional one (1) full
calendar year without further action by the parties on January 1, 2008, and on
each succeeding January 1 thereafter; provided that each party, Bank or
Executive, may stop an automatic calendar year extension by serving written
notice upon the other within 90 calendar days prior to January 1, 2008, or
within 90 calendar days prior to January 1 of any succeeding year, as the case
may be, of such party's intention that this Agreement shall expire at the end
of such Term.  In the event the Bank
retains Executive as an employee following the expiration of the Term, such
employment, absent a written agreement to the contrary, will be on an at-will
basis with such compensation and upon such terms as the parties may then agree,
subject to termination at any time with or without cause, and without
liability.  If the Bank does not retain
Executive as an employee after the Expiration of the Term, Executive's employment
shall cease without further liability of the parties to each other.  Executive's employment shall also terminate,
and the Term of this Agreement will expire, upon Executive's resignation,
retirement, death or Disability, or upon Executive's Termination for Cause or
Termination Without Cause; provided further that the Term of the Agreement
shall be deemed to have terminated upon a Change in Control and the payment to
Executive of all amounts owed to him upon a Change in Control as provided in
Section 8(e) hereof.

 

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5.             Additional Duties.  With the approval of the Board, from time to
time, Executive may serve, or continue to serve, on the boards of directors of,
and hold any other offices or positions in, companies or charitable, political
or civic organizations, which, in such Board’s judgment, will not present any
material conflict of interest with the Bank and will not unfavorably affect the
performance of Executive’s duties pursuant to this Agreement.

 

6.             Salary, Bonus Payments and Related Matters. 

 

(a)  Salary.  During the period of the Executive's
employment hereunder, the Bank shall pay to the Executive a base salary of One
Hundred Seventy Five Thousand Dollars ($175,000.00) per year, payable at
regular intervals in accordance with the Bank's normal payroll practices now or
hereafter in effect.  During the period
of the Executive’s employment hereunder, the Executive may receive such
discretionary increases in salary, if any, as may be granted to him from time
to time by the Board.  

 

(b)  Bonus Payments.  During the period of the Executive's
employment hereunder, the Executive may receive such discretionary bonuses, if
any, as may be granted to him from time to time by the Board.

 

(c)  Expenses.  During the period of the Executive's
employment hereunder, the Executive shall be entitled to receive prompt
reimbursement for all reasonable and customary expenses incurred by the
Executive in performing services hereunder in accordance with the general
policies and procedures established by the Bank.

 

(d)  Employee Benefits and Perks.  During the period of the Executive's
employment hereunder, the Executive shall be entitled to participate in all
employee benefits plans or arrangements of the Bank on the same basis as other
employees of the Bank including, without limitation, plans or arrangements
providing life insurance, disability insurance, sick leave, or retirement.  During the period of the Executive's
employment hereunder, the Executive shall also be entitled to (i) the
continuation of an automobile allowance of not less than the monthly amount
paid to Executive on November 1, 2006, (ii) use of the Bank provided credit
card(s), car telephone(s), pagers and such other perks (if such is (are) being
so provided) upon the terms and conditions previously in effect.

 

7.             Termination. 

 

(a)  Resignation, Retirement, Death or
Disability.  Executive's employment
hereunder shall cease at any time by Executive's resignation, retirement, death
or Disability.  Disability shall be
deemed to have occurred only after the following procedure has been satisfied:  If within 30 days after a written notice of
proposed Termination for Disability is given to Executive by the Bank,
Executive has not returned to the full-time performance of his duties, the Bank
may end Executive's employment by giving written notice of Termination for
Disability.  Such notice may be given by
the Bank following Executive's absence from Executive's duties by reason of
physical or mental disability for one hundred fifty (150) consecutive calendar
days.

 

 5
 

(b)  Termination for Cause.  Executive's employment shall cease upon a
good faith finding of Cause by the Board; provided, however, that Executive
shall be given written notice of the Board's finding of conduct by Executive
amounting to Cause for such termination. 
Said notice 

shall be accompanied by a
copy of a resolution duly adopted by the affirmative vote of not less than 

a majority of a quorum of
the Board at a duly-noticed meeting of the Board, finding that in the good
faith opinion of the Board, Executive was guilty of conduct amounting to Cause
and specifying the particulars thereof. 

 

(c)  Termination Without Cause.  Executive's employment may be terminated
Without Cause upon 30 days' notice for any reason, subject to the payment of
all amounts required by Section 8 hereof.

 

(d)  Expiration.  Executive's employment shall cease, or shall
continue on an at-will basis as provided in Section 4 hereof, upon the
expiration of the Term of this Agreement as provided in Section 4 hereof.

 

(e)  Supervisory Suspension.  If the Executive is suspended and/or
temporarily prohibited from participating in the conduct of the Bank's affairs
by a notice served under Sections 8(e) or (g) of the Federal Deposit Insurance
Act or similar statute, rule or regulation, the Bank's obligations under this
Agreement shall be suspended as of the date of service, unless stayed by
appropriate proceedings.  If the charges
in the notice are dismissed, the Bank shall, (i) pay the Executive all or part
of the compensation withheld while its obligations under this Agreement were
suspended and (ii) reinstate (in whole or in part) any of its obligations which
were suspended.

 

(f)  Regulatory Removal.  If the Executive is removed and/or
permanently prohibited from participating in the conduct of the Bank's affairs
by an order issued under Sections 8(e) or (g) of the Federal Deposit Insurance
Act or similar statute, rule or regulation, all obligations of the Bank under
this Agreement shall terminate as of the effective date of the order.

 

8.             Payments to Executive Upon Termination or Change in
Control.

 

(a)  Death, Disability or Retirement.  In the event of Termination of this Agreement
due to Executive's death, Disability or retirement, Executive or Executive's
spouse and/or estate shall be entitled to all benefits generally available to
Bank employees, or their spouses and/or estates, as of the date of such death,
Disability or retirement, without reduction.

 

(b)  Resignation or Expiration.  In the event of Executive's resignation, or
upon Expiration, the Bank shall have no further obligations to Executive under
this Agreement or otherwise, except as may be expressly required by law.

 

(c)  Termination for Cause.  In the event Executive is Terminated for
Cause, the Bank shall have no further obligations to Executive under this Agreement
or otherwise, except as may be expressly required by law.

 

 6
 

(d)  Termination Without Cause Prior to a
Change in Control.  Upon the
occurrence of a Termination Without Cause prior to a Change in Control, the
Bank shall pay to Executive any amounts then owed to him under this Agreement,
within 30 days of the date of the notice required by Section 7(c) hereof.

 

(e)  Change in Control.  Concurrent with a Change in Control, the Bank
shall pay to Executive a lump sum payment equal to 2 times the amount of the
Total Salary paid to Executive.  Such
lump sum shall be paid concurrent with the Change in Control.

 

(f)  Source of Payments.  All payments provided in Section 8 shall be
paid in cash from the general funds of the Bank, and no special or separate fund
need be established and no other segregation of assets need be made to assure
payment.

 

(g)  Consistent Returns.  The Bank and Executive agree that the
payments being made under this Agreement represent reasonable compensation for
services and that neither the Bank nor Executive will file any returns or
reports which take a contrary position.

 

(h)  Reduction of Payment.  Notwithstanding anything in the foregoing to
the contrary, if the payments made to Executive upon a Change in Control or any
of the other payments provided for in this Agreement, together with any other
payments which Executive has the right to receive from the Bank would
constitute a "parachute payment" (as defined in Section 280G of the
Code) the payments pursuant to this Agreement shall be reduced to the largest
amount as will result in no portion of such payments being subject to the
excise tax imposed by Section 4999 of the Code; provided, however, that the
determination as to whether any reduction in the payments under this Agreement pursuant
to this proviso is necessary shall be made in good faith by the Bank’s
independent auditors or if such firm is no longer providing tax services to
Bank to such other tax advisor as shall be mutually acceptable to Bank and
Executive, and such determination shall be conclusive and binding on the Bank
and Executive with respect to the treatment of the payment for tax reporting
purposes.

 

(i)  Sole Remedy.  The receipt of the amounts described in this
Section 8, and attorneys’ fees  as set
forth in Section 12, if any, shall constitute Executive’s sole remedy for
breach of this Agreement against the Bank and its officers, directors,
employees and agents.

 

9.             Unauthorized Disclosure.  During the period of his employment hereunder
and for a period of one year following the cessation of such employment
(irrespective of the reason therefor), Executive shall not, except as required
by any court, supervisory authority or administrative agency, without the
written consent of the Board or a person authorized thereby, disclose to any
person, other than an employee of the Bank or a person to whom disclosure is
reasonably necessary or appropriate in connection with the performance by the
Executive of his duties as an employee of the Bank, any confidential information
obtained by him while in the employ of the Bank; provided, however, that
confidential information shall not include any information known generally to
the public (other than as a result of an unauthorized disclosure by the
Executive).  

 

 7
 

10.           Waivers not to be Continued.  Any waiver by a party of any breach of this
Agreement by the other party shall not be construed as a continuing waiver or
as a consent to any subsequent breach by the other party.

 

11.           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:

Santa Lucia Bank

7480
El Camino Real

Atascadero,
CA  93422

Attn:
Chairman of the Board

 

B.                                     If
to Executive, to:

John C. Hansen

Santa Lucia Bank

7480 El Camino Real

Atascadero, CA  93422

 

and to such other or
additional person or persons as either party shall have designated to the other
party in writing by like notice.

 

12.           Arbitration of Claims.  The parties agree that any and all disputes,
controversies or claims of any kind or nature, including but not limited to any
arising out of or in any way related to Executive’s employment with or
separation from the Bank or Bancorp, shall be submitted to binding arbitration
under the auspices and rules of the American Arbitration Association (“AAA”) in
Atascadero, California.  Included within
this provision are any claims alleging fraud in the inducement of this
Agreement, or relating to the general validity or enforceability of this
Agreement, or claims based on a violation of any local, state or federal law,
such as claims for discrimination or civil rights violations under Title VII of
the Civil Rights Act of 1964, the California Fair Employment and Housing Act,
the Age Discrimination in Employment Act and the Americans with Disabilities
Act.  The parties shall each bear their
own costs and attorneys’ fees incurred in conducting the arbitration and,
except for such disputes where Executive asserts a claim under a state or
federal statute prohibiting discrimination in employment (“a Statutory Claim”),
or unless required otherwise by applicable law, shall split equally the fees
and administrative costs charged by the arbitrator and AAA.  In disputes where Executive asserts a
Statutory Claim against the Bank, Executive shall be required to pay only the
AAA filing fee to the extent such filing fee does not exceed the fee to file a
complaint in state or federal court.  The
Bank shall pay the balance of the arbitrator’s fees and administrative costs.  The prevailing party in the arbitration, as
determined by the arbitrator, shall be entitled to recover his or its
reasonable attorneys’ fees and costs, including the costs or fees charged by
the arbitrator and AAA.  In disputes
where the Executive asserts a Statutory Claim, reasonable attorneys’ fees shall
be awarded by the arbitrator based on the same standard as such fees would be
awarded if the Statutory Claim had been asserted in state or federal
court.  

 8
 

Judgment
upon an award rendered by the arbitrator may be entered in any competent court
having jurisdiction over the dispute. Executive understands that arbitration is
in lieu of any and all other civil legal proceedings and that he is waiving any
right he may have to resolve disputes through court or trial by jury.

 

 

13.           General Provisions.

 

(a)  Entire Agreement.  This Agreement constitutes the entire
agreement by the parties with respect to the subject matter hereof, and
supersedes and replaces all prior agreements among or between the parties, unless
otherwise provided herein, including that certain employment agreement dated
August 1, 1998 other than any agreements between Executive and Bank pursuant to
the Bank’s or Bancorp’s Equity Plans and retirement plans including that
certain Salary Continuation Agreement 
dated as of April 15, 1998 together with all subsequent amendments
thereto.  No amendment, waiver or
termination of any of the provisions hereof shall be effective unless in
writing and signed by the party against whom it is sought to be enforced.  Any written amendment, waiver, or termination
hereof executed by the Bank and Executive shall be binding upon them and upon
all other Persons, without the necessity of securing the consent of any other
Person, and no Person shall be deemed to be a third-party beneficiary under
this Agreement.

 

(b)  Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same Agreement.

 

(c)  No Waiver.  Except as otherwise expressly set forth
herein, no failure on the part of any party hereto to exercise and no delay in
exercising any right, power or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, power or remedy
hereunder preclude any other or further exercise thereof or the exercise of any
other right, power or remedy.

 

(d)  Headings.  The headings of the Sections of this
Agreement have been inserted for convenience of reference only and shall in no
way restrict or modify any of the terms or provisions hereof.

 

(e)  Severability.  If for any reason any provision of this
Agreement is held invalid or unenforceable, such invalidity or unenforceability
shall not affect the validity or enforceability of any other provision of this
Agreement.  If any provision of this
Agreement shall be held invalid or unenforceable in part, such invalidity or
unenforceability shall in no way effect the rest of such provision not held so
invalid, and the rest of such provision, together with all other provisions of
this Agreement, shall to the full extent consistent with law continue in full
force and effect.

 

(f)  Governing Law.  This Agreement shall be governed and
construed and the legal relationships of the parties determined in accordance
with the laws of the United States and to the extent not inconsistent therewith
the laws of the State of California applicable to contracts executed and to be
performed solely in California.

 

 9
 

(g)  Advice of Counsel.  Executive acknowledges that  (i) the Agreement has been prepared by
Reitner, Stuart & Moore, counsel for the Bank and (ii) he has been
encouraged to consult with legal counsel of his choosing concerning the terms
of this Agreement prior to executing this Agreement.  Any failure by Executive to consult with
competent counsel prior to executing this Agreement shall not be a basis for
rescinding or otherwise avoiding the binding effect of this Agreement.  The parties acknowledge that they are
entering into this Agreement freely and voluntarily, with full understanding of
the terms of this Agreement. 
Interpretation of the terms and provisions of this Agreement shall not
be construed for or against either party on the basis of the identity of the
party who drafted the terms or provisions in question.

 

 

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

 

 

	
  ATTEST:

  	
   

  	
  SANTA LUCIA BANK

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Its: 

  	
  Chairman

  	
   

  
	
   

  	
   

  	
  Print name: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE EXECUTIVE

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Witness

  	
   

  	
  Larry H. Putnam

  	
   

  	
   

  
												

 

 10

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