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Exhibit 10.2    
    

 
  ECONOMIC AND APPLICATION AGREEMENT    
    

This
agreement made and entered into this 13th day of` August, 2003, by and between Western Pacific Bancorp. Inc. (hereinafter referred to as "Client"), whose mailing address is 1745E. Alvarado
Street, Fallbrook. California and Dan Hudson dba Bankmark (hereinafter referred to as "Consultant"), whose principle office is located in San Luis Obispo, California. 

        IN
CONSIDERATION of the mutual agreement herein contained, it is mutually understood and agreed by and between the parties as follows: 

I      NATURE OF SERVICES  

	A.
	The
consultant is hereby authorized to proceed with the engagement as detailed in EXHIBIT A, which is considered an integral part of
this Consulting Agreement, a copy of which is attached. 

The
exact scheduling and extent of any additional actions relating to the project will be determined by mutual agreement between client and consultant. 

In
addition, the consultant may from time to time be requested to participate in other related activities. In such cases, the consultant and client will mutually agree as to whether they are included
or stand outside this agreement. 

	B.
	Any
direct business expenses incurred by Consultant, including, but not limited to telephone, travel and the like, must be preapproved by the client in order to qualify for
reimbursement by them.

	C.
	Consultant
agrees to use his best efforts in conducting all of the activities related to in this Agreement.

	D.
	Nothing
contained herein shall be construed to create the relationship of Employer and Employee or Agent and Principal between the Client. Consultant shall conduct his business as an
Independent Contractor and shall have no authority to create, alter or amend any agreements or representations on behalf of the Client or to incur any liabilities for the Client. Consultant
acknowledges that he is not an employee of the Client and said Client is not obligated nor charged with the responsibility of withholding income taxes from any commissions due the Consultant, nor is
the Client obligated to pay Social Security, Taxes, nor FICA taxes upon or for the Consultant.

	E.
	Consultant
agrees to adhere to fair business principles and comply with all Federal, State and local laws and regulations either existing or pending. Consultant further agrees to file
applications for licensing, bonding or other permits, and to pay all fees pertaining thereto as maybe required by any regulatory body. 

II.    SOLICITATION AND TERMINATION  

	A.
	Consultant
agrees that he will not issue, distribute or circulate any advertising or promotional material, circulars or pamphlets relating to the Client unless and until it has been
authorized and approved in writing by the Client. The Consultant shall withdraw any said material and discontinue its use immediately upon the Client's written request to do so.

	B.
	This
Agreement may terminated by either party, with cause, upon written notice. Upon the giving of said notice, the Client shall cause to be paid to Consultant any monies due
Consultant, as herein provided, and Consultant, in turn, shall reimburse the Client for any monies, if any, by it advanced or earned. 

III.  COMPENSATION  

In
consideration of the; services pert brined hereunder by Consultant, Client will pay Consultant an amount based upon the work outlined in EXHIBIT
A(attached) not to exceed that amount listed in 

 EXHIBIT A. The terms and conditions listed in EXHIBIT A are considered an integral part o f this Consulting Agreement. 

During
the course of the engagement. invoices may be submitted representing progress payments for work completed. Such invoices and any balances thereof, are due within ten (10) days after
presentation. 

The
above referred to fees shall constitute the only source of compensation to Consultant by Client. 

IV.    CONTRACT ENFORCEMENT  

	A.
	This
agreement constitutes the entire agreement about understandings between the parties and supersedes any and all other agreements between the parties.

	B.
	No
remedy granted to the parties by virtue of the Agreement shall be exclusive of any other legal or equitable remedy available to the parties existing by laws of statute. 

V.     MISCELLANEOUS  

	A.
	The
parties agree and intend that all questions concerning this Agreement, including the validity. capacity of parties, effect, interpretation and performance shall be governed by the
laws of the State where the Application is filed.

	B.
	The
rights. privileges, duties and obligations of both the Client and Consultant to each other shall be limited to those specifically set forth herein.

	C.
	This
Agreement and the terms, conditions and obligations herein contained shall be binding upon the parties hereto, their assigns, transferees, heirs and legal representatives.

	D.
	This
Agreement shall not vest in Consultant, his heirs, estate of legal representatives, any right, title or interest in any assets in the Client itself its name, good will or other
market business activities other than as set forth in this Agreement and only for so long as the Agreement has not been terminated and no longer.

	E.
	This
Agreement and the attached EXHIBIT A, constitutes the complete Agreement between the Consultant and the Client. No representation
or promise, either oral or written, have been made except as specifically set forth herein. Should any part of this Agreement be declared invalid, such invalidity shall not affect the remainder
of-this Agreement. It is the intention of the parties that they would have executed the remaining portion of this Agreement without herein including any portion, which may hereafter be
declared invalid.

	F.
	The
forbearance or neglect by either party to insist upon the performance of this Agreement, or any part hereof shall not constitute a waiver of any rights or privileges. 

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

        THE
FOREGOING IS HEREBY AGREED TO: 

	BY:	 	 	 
	Western Pacific Bancorp, Inc.	 	 
	

By:	

/s/ MICHAEL S. HAHN
 Michael S. Hahn, President	
 	

 
	

By:	

/s/ RICHARD W. GRINYER
 Richard W. Grinyer, Secretary/Executive Vice President	
 	

 
	

DATE:	

8-14-2003
	
 	

 
	

BY:	

BANKMARK	
 	

 
	

	
 	

 
	

DATE:	

 	
 	

 
	 	
	 	 

 
 

EXHIBIT A    
    

OVERVIEW OF ENGAGEMENT:  

	•
	The
basic components oft he assignment include the following main elements:

	•
	General
Consulting (Strategy development)

	•
	Prepare
materials or, and attend, pre-filing meeting(s) with Regulators

	•
	Meet
with proposed Directors to assist in completing their interagency financial and biographical application forms

	•
	Interview
individual Organizers. to discuss their duties, responsibilities, etc.

	•
	Develop
the Business Plan (in concert with Management) including the pro-forma projections

	•
	Prepare
the complete new Joint Agency application (revised March 2002) for a Commercial Banking Charter, with the
O.C.C. and FDIC

	•
	Assistance
in the preparation of other required materials including. but not limited to:

	•
	CRA
Statement

	•
	State
historical/environmental determination of sites selected for bank facilities

	•
	Salient
published legal not ices

	•
	Monitor
regulator processing of applications

	•
	Comply
with all requests by Regulators for clarification and/or additional data 

TERMS OF ENGAGEMENT:  

	1)
	Provide
Management/Directors with a course of action required to complete the regulatory applications.

	2)
	Provide
Management with a specific outline of information required for the O.C.C. and the FDIC.

	3)
	Prepare
Director/Organizer Interagency Financial and Biographical Forms and other required materials

	a.
	Distribute
and collect all required regulatory "forms" with appropriate supplemental instructions

	b.
	Conduct
a meeting with Directors/Organizers to review the required information needed to complete all forms

	c.
	Answer
individual Director/Organizer CONFIDENTIAL questions and consult with their legal counsel if necessary on selected matters

	d.
	Review
and edit completed Director/Organizer forms for accuracy and completeness

	e.
	Follow
up with Directors/Organizers for form content clarification and additional information

	f.
	Prepare
finalized biographical and financial forms for Director/Organizer final review.

	g.
	Ensure
that all fingerprint cards are correctly prepared for both agencies.

	h.
	Prepare
and review all regulatory release forms

	i.
	Examine
Director Qualifications and Related Experience

	j.
	Prepare
Director Job Description and Responsibilities 

	k.
	Conduct
individual Director/Organizers Interviews to review and clarify:

	i.
	Prior
financial institution experience

	ii.
	Other
financial field related experience

	iii.
	Other
organization Board experience

	iv.
	Community/Professional
involvement

	v.
	Individual
contribution as a potential board member

	vi.
	Other
relevant experience/contacts, etc.

	4)
	Prepare
Management Section

	a.
	Assist
Management ("team" if applicable) in presenting his/their separate and combined qualifications

	I
	Review
resumes for review, update and revision

	ii.
	Banking
Experience (specifics re: lending, operational, and/or administration background, etc..)

	iii.
	Direct
and Indirect Board Experience

	iv.
	Independent
Bank and Marketing- Experience

	v.
	Prepare
Job Description and Vitae for Senior Management candidates

	5)
	Prepare
Facilities Information relating to:

	a.
	Physical
Location

	b.
	Site
and floor plans

	c
	Tentative
purchase/lease agreement(s)

	d.
	Tenant
improvements

	e.
	Purchase/lease
of Furniture, Fixtures and Equipment

	f
	Related
parties involvement with the premises and/or FF&E

	g.
	State-National
Historical determination

	h.
	Zoning
and environmental effect

	6)
	Develop,
with Management, the.Business Plan including:

	a.
	Reflection
of Director/Management Philosophy and marketing strategy

	b.
	Management
expertise and utilization

	c.
	Director
expertise and utilization

	d.
	Market
analysis

	i.
	An
overview of the market and opportunities

	ii.
	Current
demographics

	iii
	Specific
Goals and Objectives

	iv.
	Market
growth and composition of "target" sectors

	e.
	Proforma
Financials (3 years, by quarters) in concert with Management

	i.
	All
supporting schedules

	f.
	Peer
Group Comparisons 

	g.
	Assumptions
and Footnotes

	7)
	Prepare
Capital Adequacy Analysis

	8)
	Prepare
the Required Proposed Market and Economic Information

	a.
	Develop
supportive market information relative to the Strategic Market Plan

	b.
	Information
in support of regulatory "Convenience and Needs" requirements

	c.
	Current
area development and projected economic growth data

	d.
	Statistics
and other information regarding lending needs of the new bank's market(s)

	9)
	Prepare
Competitor data and analysis:

	a.
	Prepare
competitor/peer group data trends

	10)
	Prepare
Miscellaneous Information Regarding:

	a.
	Correspondent
banking relationships

	b.
	Guidance
in preparing, and review of, regulatory mandated policies manuals

	c.
	Director
Board and Committee duties and assignments

	d.
	Risk
Management Coverage (insurance)

	e.
	Data
Processing plans: vendor, in-house, etc.

	f.
	Other
relevant information

	11)
	Summary
and Conclusions Regarding the Application's Merit, Strengths, and Market Position

	12)
	Miscellaneous
and Related Consultant Responsibilities

	a.
	"Packaging,"
of the applications (printing, proper format, required number of copies, etc.)

	b.
	Interface
with Office of Historic Preservation regarding historical determination of sites

	c.
	Address
zoning and environmental concerns

	d.
	Provide
required Legal Notices for Newspaper publication

	e.
	Coordination
with regulatory agencies and other consultants

	f.
	Follow-tip
and monitoring of regulatory agencies

	g.
	Provide
regulators with clarification of critical issues when requested

	h.
	Provide
Organizers with regular updates and status reports regarding the application progress. 

TIMING  

TIME IS OF THE ESSENCE. THEREFORE, DUE DATES RELATING TO THE PROJECT TIMELINE ARE DEPENDENT UPON THE TIMELY COMPLETION AND SUBMISSION OF ALL MATERIALS REQUESTED BY THE
CONSULTANT. This being the case, the application could be ready to submit to the regulators within 75 days from the signing of this agreement, the tendering of the
initial payment and the completion of ALL requested Organizer/management data, information and responsibilities. Any delay in the receipt of necessary information or the submission of incomplete or
inaccurate data by the client will cause a delay in the above described application process. It is therefore imperative that all Organizers meet their obligations and respective deadlines. 

FEE SCHEDULE:  

The
fee, for performing the above detailed consulting service is based upon the placement of a head office in Oceanside or Carlsbad, California plus a separate banking office in another location
within the state of California to be mutually agreed upon by the client and consultant, is $85,000. This includes processing a maximum of twenty (20) organizers, excluding management.
Additional organizers can be included in the application at a cost of $300.00 each. 

	•
	Payment #1 of 35% ($35,500) is due and payable upon signing this agreement.

	•
	Payment #2 of 50% ($36,750) is due and payable within 10 days of the date the consultant files the Joint Interagency
application with the regulatory agencies.

	•
	Payment #3 of 15% ($12,750) is due and payable upon the funding of the organizational loan, or five (5) calendar
months following the date of this contract. whichever occurs first. 

Let it be clearly, understood that the consulting service rendered, is not a guarantee that the regulators will approve the application. Therefore. any payment to
the Consultant is not based upon whether the application
is accepted or approved by either the State Department of Banking for which the application is filed, the 0CC, or the FDIC.

Out-of-pocket expenses:  

Client
will pay for the cost of the postage/delivery, copying and binding of all documents required by the regulators and any additional copies the Client my wish. The consultant will provide, at no
cost to the Client, one copy of each Director/Organizer's personalized and confidential data and one complete copy of the application for the corporate files. 

Travel expense:  

The Consultant will absorb the full cost of travel and lodging for the first three (3) on-site visits during the process of
completing the required application. The Client and Consultant will equally share in the cost of the next two (2) on-site visits, if
necessary, all additional visits will be borne wholly by the Client. 

Let
it be further understood that if for any reason the client chooses to or causes the project to abort, fees will be charged on an hourly basis. Such fees will only be charged on that work performed
BEFORE the date of receipt of official notification (verbal, followed by written confirmation) in lieu of the fee schedule described above. Expenses incurred to-date of discontinuance of
work also will be billed. The fee charged under such a condition will be based as follows: 

	•
	Analysis
and preparation of applications, Regulator meetings/Tele-conferences, development of the Business Plan and, economic research/analysis, and Management
consultation. @ $150/hour

	•
	Preparation
of Director biographical and Financial forms @ $100/hour

	•
	Coordination.
auditing and validating materials for the application @ $75/hour;

	•
	Computer
input. proof readings, etc. @ $35/hour.

	•
	As
motivation for BOTH parties to fulfill their duties and responsibilities and ensure that thee project will proceed expeditiously, the following terms and conditions are
therefore incorporated into this agreement.

	•
	The
Organizers will return completed biographical and financial forms to consultant within 15 days of receipt of such forms.

	•
	The
Organizers will respond to requests for information-nation in a timely manner and will review, sign and return the final submission copies of all documents
within 7 days after the consultant's review and preparation 

Site
(location) information and tentative lease(s) will be available by the 70th day from signing this agreement (the FDIC particular, reviews the location leases very closely.) 

The
work will be performed by Bankmark's Internal Research Department and possibly (in total or in part) by the following consultants. 

	•
	Robert
Steiner, Steiner & Associates

	•
	Bobbe
Sigler. Management Consultant

	•
	Rick
Childs, Crowe Chizek & Co., LLP 

To
expedite, facilitate and enhance the application process. Bankmark reserves the right, based on the project's needs and complexities, to assign said specialists as aforeto mentioned, all of which
have in-depth experience in the preparation of de nova bank applications and are currently working with Bankmark on other projects. Bankmark, from time to time, may add other specialists
as deemed necessary to complete the work in a timely manner. Bankmark warrants that these individuals will have comparable experience to the associates listed above and will have the ability to
complete the task at hand. 

The details of this Exhibit are hereby acknowledged and agreed to by both parties and are thus an integral part of the foregoing Economic and Application
Agreement.

	By:	 	 	 	 	Date:	 
	 	
	 	 	 	 	

	For the Client—Western Pacific Bancorp, Inc.	 	 	 	 	 
	

By:	

 	
 	

 	
 	

Date:	

 
	 	
	 	 	 	 	

	For We Client—Western Pacific Bancorp, Inc.	 	 	 	 	 

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Exhibit 10.2

ECONOMIC AND APPLICATION AGREEMENT

EXHIBIT AQuickLinks
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Exhibit 10.4    
    

 
  ORGANIZER/INITIAL DIRECTOR WARRANT AGREEMENT    
    

        This Warrant Agreement ("Agreement") is executed as of this    day of            , 2004 by Pacific Coast
National Bancorp, a California
corporation ("Company"), in favor of the organizers listed on Exhibit A (each, an "Initial Holder"), in accordance with the terms and subject to
the conditions set forth in this Agreement. 

        WHEREAS,
the organizers and the proposed directors of the Company and Pacific Coast National Bank ("Bank") have expended, and will continue to expend, a significant amount of time,
effort and resources, and have imparted a significant amount of their respective expertise, in connection with the organization of the Company and the Bank; 

        WHEREAS,
members of the organizing group have undertaken substantial financial risk in connection with the organization of the Company and the Bank through direct cash advances made to
the Company and guaranties made by these members on behalf of and for the benefit of the Company; and 

        WHEREAS,
in recognition of their efforts in organizing the Company and the Bank and the financial risks undertaken, the Company desires to grant to each organizer and proposed director
warrants to purchase shares of common stock of the Company (each, a "Warrant" and, collectively, the "Warrants") in the amounts set forth herein. 

        NOW,
THEREFORE, in consideration of the foregoing and the agreements hereinafter set forth, the receipt and sufficiency of which are hereby acknowledged, the Company and, by acceptance
of a Warrant, each Holder (as defined herein) agree as follows: 

        1.    Grant of Warrants.    Subject to the terms, restrictions, limitations and conditions stated in this Agreement,
the receipt and sufficiency of which are hereby acknowledged, the Company hereby grants to Initial Holder the number of Warrants set forth beside his name on  Exhibit A. Each Warrant initially
shall be exercisable for one fully paid and nonassessable share of common stock, par value $.01 per share, of the Company ("Share"), subject to adjustment as provided in Section 11 of this
Agreement. The Initial Holders and all subsequent registered holders of the Warrants (each, a "Holder" and, collectively, the "Holders") shall have the rights and obligations set forth in this
Agreement. 

        2.    Warrant Certificates.    Each Warrant shall be evidenced by a warrant certificate, which shall be substantially
in the form attached to this Agreement as Exhibit B ("Warrant Certificate"). Each Warrant Certificate shall have such marks of identification or
designation and such legends or endorsements thereon as the Company deems appropriate, so long as they are not inconsistent with the provisions of this Agreement, or as are required to comply with any
applicable law, rule or regulation applicable to the Company or the Shares. The Warrant Certificates shall be executed on behalf of the Company by the manual, facsimile or imprinted signature of its
Chairman of the Board, its President or any vice president and shall be attested by the manual, facsimile or imprinted signature its Secretary or any assistant secretary. 

        3.    Term of Warrants.    

        (a)   The
term for the exercise of the Warrants shall begin at 9:00 a.m., San Clemente, California time on the date that the Bank opens for business (the "Issue Date").
The term for the exercise of the Warrants shall expire at 2:00 p.m., San Clemente, California time on the earlier to occur of (i) the tenth anniversary of the Issue Date, or
(ii) the date provided in Section 3(b) of this Agreement (the "Expiration Time"). 

        (b)   Notwithstanding
any provision of this Agreement or any Warrant Certificate to the contrary, the Warrants shall expire, to the extent not exercised, within 45 days
following the receipt of notice from the Bank's state or primary federal regulator ("Regulator") that (i) the Bank has not maintained its minimum capital requirements (as determined by the
Regulator); and (ii) the Regulator is requiring exercise or forfeiture of warrants. Upon receipt of such notice from the Regulator, the Company shall promptly notify each Holder that he must
exercise the Warrants 

 

granted
to him prior to the end of the 45-day period or such earlier period as may be specified by the Regulator or forfeit such Warrant(s). In case of forfeiture, no Holder shall have any
cause of action, of any kind or nature, against the Company, the Bank or any of their respective officers or directors with respect to the forfeiture. In addition, the Company shall not be liable to
any Holder due to the failure or inability of the Company to provide adequate notice to Holder. 

        4.    Exercise of Warrants.    The purchase price per Share to be paid by a Holder for Shares subject to the Warrants
shall be $10.00, subject to adjustment as set forth in Section 11 of this Agreement (the "Exercise Price"). A Holder may exercise Warrants evidenced by a Warrant Certificate in whole or in part
at any time prior to the Expiration Time by delivering to the secretary of the Company (i) the Warrant Certificate; (ii) a written notice to the Company specifying the number of Shares
with respect to which Warrants are being exercised; and (iii) a check for the full amount of the aggregate Exercise Price of the Shares being acquired. 

        5.    Delivery of Shares; Partial Exercise.    Upon receipt of the items set forth in Section 4, and subject to
the terms of this Agreement, the Company shall promptly deliver to, and register in the name of, the Holder a certificate or certificates representing the number of Shares acquired by exercise of a
Warrant. In the event of a partial exercise of Warrant(s), a new Warrant Certificate evidencing the number of Shares that remain subject to the Warrant shall be issued by the Company to such Holder or
to his duly authorized assigns. 

        6.    Registration of Transfer and Exchange.    

        (a)   The
Company shall keep, or cause to be kept, at its principal place of business or at such other location designated by the Company, a register or registers in which,
subject to such reasonable regulations as the Company may prescribe, the registrar and transfer agent (the "Securities Registrar") shall register the Warrant Certificates and the transfers thereof as
provided herein ("Securities Register"). The initial Securities Registrar shall be the secretary of the Company, and thereafter, the Securities Registrar may be removed and/or appointed as authorized
by the Company. 

        (b)   Upon
surrender for registration of transfer of any Warrant Certificate, the Company shall issue and deliver to the Holder or his duly authorized assigns, one or more new
Warrant Certificates of like tenor and in like aggregate amount. 

        (c)   At
the option of the Holder, Warrant Certificates may be exchanged for other Warrant Certificates of like tenor and in like aggregate amount upon surrender of the
Warrant Certificates to be exchanged. Upon such surrender, the Company shall issue and deliver to the Holder or his duly authorized assigns, one or more new Warrant Certificates of like tenor and in
like aggregate amount. 

        (d)   Every
Warrant Certificate presented or surrendered for registration of transfer or exchange shall be accompanied (if so required by the Company or the Securities
Registrar) by a written instrument or instruments of transfer, in form satisfactory to the Company or the Securities Registrar, duly executed by the registered Holder or by such Holder's duly
authorized attorney in writing. 

        7.    Replacement of Warrant Certificates.    

        (a)   Upon
receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of a Warrant Certificate and, in the case of loss, theft or
destruction, on delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the case of mutilation, surrender and cancellation of such Warrant Certificate, the
Company shall issue and deliver to the Holder or his duly authorized assigns, one or more new Warrant Certificates of like tenor and in like aggregate amount. In the case of loss, theft or destruction
of a Warrant Certificate, prior to the issuance of a replacement Warrant Certificate, the Company may 

2

 

also
require that a bond be posted in such amount as the Company may determine is necessary as indemnity against any claim that may be made against it with respect to such Warrant Certificate. 

        (b)   All
Warrants shall be held and owned under the express condition that the provisions of this Section are exclusive with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Warrant Certificates and shall preclude (to the extent lawful) all other rights and remedies, notwithstanding any law or statute existing or hereafter enacted to
the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender. 

        (c)   Upon
the issuance of any new Warrant Certificate under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Company and its agents and counsel) connected therewith. 

        (d)   Every
new Warrant Certificate issued pursuant to this Section shall constitute an additional contractual obligation of the Company, whether or not the mutilated,
destroyed, lost or stolen Warrant Certificate shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Agreement equally and proportionately with any and all other
Warrant Certificates duly issued hereunder. 

        8.    Persons Deemed Holders.    Prior to the due presentment of a Warrant Certificate for registration of transfer or
exchange, the Company, any Securities Registrar and any other agent of the Company may treat the person in whose name such Warrant Certificate is registered in the Securities Register as the sole
Holder of such Warrant Certificate and of the Warrant represented by such Warrant Certificate for all purposes whatsoever, and shall not be bound to recognize any equitable or other claim to or
interest in such Warrant Certificate or in the Warrant represented by such Warrant Certificate on the part of any person and shall be unaffected by any notice to the contrary. 

        9.    Cancellation.    All Warrant Certificates surrendered for the purpose of exercise, exchange or registration of
transfer shall be cancelled by the Securities Registrar, and no Warrant Certificates shall be issued in lieu thereof, except as expressly permitted by the provisions of this Agreement. 

        10.    Fractional Shares.    The Company shall not be required to issue Warrant Certificates exercisable for
fractional Shares or to issue fractional Shares upon the exercise of Warrants. Warrant Certificates exercisable for fractional Shares shall expire as of the Expiration Date, and a Holder of such
Warrant Certificates shall not be entitled to any consideration of any kind or nature in respect of such Warrant or Warrant Certificate. 

        11.    Stock Dividends, Splits, Etc.    

        (a)   If,
prior to the Expiration Time, the Company shall subdivide its outstanding Shares into a greater number of Shares, or declare and pay a dividend of its Shares payable
in additional Shares, the Exercise Price, as then in effect, shall be proportionately reduced, and the Company shall proportionately increase the number of Shares then subject to exercise under this
Warrant (and not previously exercised.) 

        (b)   If,
prior to the Expiration Time, the Company shall combine its outstanding Shares into a lesser number of Shares, the Exercise Price, as then in effect, shall be
proportionately increased, and the Company shall proportionately reduce the number of Shares then subject to exercise under this Warrant (and not previously exercised.) 

        12.    Reorganization, Reclassifications, Consolidation or Merger.    If, prior to the Expiration Time, there shall be
a reorganization or reclassification of the Shares (other than as provided in Section 11 of this Agreement), or any consolidation or merger of the Company with another entity, the Holder shall
be entitled to receive, during the remainder of the term of this Agreement and upon payment of the 

3

 

Exercise
Price, the number of shares of stock or other securities or property of the Company or of the successor entity (or its parent company) resulting from such consolidation or merger, as the case
may be, to which a holder of Shares, deliverable upon the exercise of a Warrant, would have been entitled upon such reorganization, reclassification, consolidation or merger; and, in any case, the
Company shall make appropriate adjustments (as determined by the board of directors of the Company in its sole discretion) in the application of the provisions with respect to the rights and interests
of the Holders so that the provisions set forth in this Agreement (including the adjustment to the Exercise Price and the number of Shares issuable upon exercise of the Warrants) shall be applicable,
as nearly as may be practicable, to any shares or other property thereafter deliverable upon the exercise of this Warrant. 

        13.    Certificate as to Adjustments; Issuance of New Warrant Certificates.    Within thirty (30) days
following any adjustment provided for in Section 11 or 12 of this Agreement, the Company shall give written notice of the adjustment to the Holders as provided in Section 14(a) of this
Agreement. The notice shall state the Exercise Price as adjusted and the increased or decreased number of shares purchasable upon the exercise of the Warrant(s) and shall set forth in reasonable
detail the method of calculation for each. Notwithstanding anything to the contrary set forth herein or in the Warrant Certificates, the Company
may, at its option, issue new Warrant Certificates evidencing the Warrants, in such form as may be approved by the Company, to reflect any adjustment or change in the Exercise Price and the number or
kind of stock or other securities or property purchasable upon exercise of the Warrants. 

        14.    Miscellaneous.    

        (a)   Any
notice or other communication required or permitted to be made hereunder shall be in writing, duly signed by the party giving such notice or communication and shall
be deemed delivered and effective when given personally or mailed by first-class registered or certified mail, postage prepaid as follows (or at such other address for a party as shall be specified by
like notice): (i) if given to the Company, at its principal place of business; and (ii) if given to a Holder, at the address set forth for the Holder on the books and records of the
Company. A notice given to the Company by a Holder with respect to the exercise of a Warrant shall not be effective until received by the Company. 

        (b)   The
Company shall, at all times, reserve and keep available out of its authorized and unissued Shares or out of any Shares held in treasury that number of Shares that
will from time to time be sufficient to permit the exercise in full of all outstanding Warrants. The Company shall take all such action as may be necessary to ensure that all Shares delivered upon
exercise of any Warrants shall, at the time of delivery of the Warrant Certificates for such Shares, be duly authorized, validly issued, fully paid and nonassessable. 

        (c)   The
Company shall pay when due and payable any and all federal and state transfer taxes and charges (other any applicable income taxes) that may be payable in respect of
the issuance and delivery of Warrant Certificates or of certificates for Shares receivable upon the exercise of any Warrants; provided, however, that the Company shall not be required to pay any tax
that may be payable in respect of the issuance and delivery (i) of any Warrant Certificate or stock certificate registered in a name other than that of the Holder of the Warrant Certificate
that has been surrendered, or (ii) of any Warrant Certificate under Section 7. 

        (d)   No
Holder, in his capacity as such, shall be entitled to vote or receive dividends or shall be deemed from any other purpose the holder of the Shares or other securities
which may at any time be issuable upon the exercise of such Warrant. Nothing contained herein or in any Warrant Certificate shall be construed to confer upon any Holder, in his capacity as such, any
of the rights of a shareholder of the Company, including any right to vote for the election of directors or upon any matter submitted to shareholders of the Company at any meeting thereof, to give or
withhold 

4

 

consent
to any corporation action, or to receive notices of meeting or other actions affecting shareholders. 

        (e)   Each
Holder, by accepting a Warrant Certificate, accepts and agrees to the terms of this Agreement. The terms of this Agreement shall be binding upon the Company and the
Holders and their respective heirs, successors, representatives and permitted assigns. Nothing expressed or referred to herein is intended or will be construed to give any person other than the
Company or the Holders any legal or equitable right, remedy or claim under or in respect of this Agreement, or any provision herein contained, it being the intention of the Company and the Holders
that this Agreement, the assumption of obligations and statements of responsibilities hereunder, and all other conditions and provisions hereof are for the sole benefit of the Company and the Holders
and for the benefit of no other person. 

        (f)    This
Agreement constitutes the full understanding of the Company and the Holders, a complete allocation of risks between them and a complete and exclusive statement of
the terms and conditions of their agreement relating to the subject matter hereof and supersedes any and all prior agreements, whether written or oral, that may exist between the Company and any
Holder with respect thereto. Except as otherwise specifically provided in this Agreement, no conditions, usage of trade, course of dealing or performance, understanding or agreement purporting to
modify, vary, explain or supplement the terms or conditions of this Agreement will be binding unless hereafter or contemporaneously herewith made in writing and signed by the party to be bound, and no
modification will be effected by the acknowledgment or acceptance of documents containing terms or conditions at variance with or in addition to those set forth in this Agreement. 

        (g)   The
headings contained in this Agreement are for convenience of reference only and will not affect in any way the meaning or interpretation of this Agreement. The words
"hereof," "herein" and "hereunder" and words of similar import when used in this Agreement will refer to this Agreement as a whole and not to any particular provision in this Agreement. Each use
herein of the masculine, neuter or feminine gender will be deemed to include the other genders. Each use herein of the plural will include the singular and vice versa, in each case as the context
requires or as is otherwise appropriate. The word "or" is used in the inclusive sense. References to a person are also to its permitted successors or assigns. No provision of this Agreement is to be
construed to require, directly or indirectly, any person to take any action, or omit to take any action, which action or omission would violate applicable law (whether statutory or common law), rule
or regulation. 

        (h)   This
Agreement shall terminate upon the earlier of (i) the Expiration Time, or (ii) the close of business on the date on which all Warrants shall have been
exercised. 

        (i)    THIS AGREEMENT, EACH WARRANT AND EACH WARRANT CERTIFICATE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
CALIFORNIA WITHOUT REGARD TO THE LAWS THAT MIGHT OTHERWISE GOVERN UNDER APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS. IN THE EVENT OF A DISPUTE INVOLVING THIS AGREEMENT, THE PARTIES IRREVOCABLY AGREE
THAT VENUE FOR SUCH DISPUTE SHALL LIE EXCLUSIVELY IN A COURT OF COMPETENT JURISDICTION IN ORANGE COUNTY, CALIFORNIA.

        IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized officer as of the date first above written. 

	 	 	PACIFIC COAST NATIONAL BANCORP
	

 	
 	

By:	

    

	 	 	Name:	    

	 	 	 	Title:	    

5

 
 

EXHIBIT A    
    
    LIST OF INITIAL HOLDERS    
    

	Dennis C. Lindeman	 	14,000
	Nicki Barbour	 	10,000
	Dominic Burtech	 	10,000
	Michael Crain	 	10,000
	Richard W. Grinyer	 	10,000
	Walter B. Grinyer	 	10,000
	Michael S. Hahn	 	10,000
	Benjamin L. Hemeyer	 	10,000
	Richard Kay, Jr.	 	10,000
	John Kennedy	 	10,000
	Rockwell D. King	 	10,000
	William Lang	 	10,000
	Eugene Mallin	 	10,000
	Donald Mealing	 	10,000
	Denis Morgan	 	10,000
	John Najjar	 	10,000
	Jennifer Navarro-Yhap	 	10,000
	Stephen Pezman	 	10,000
	James W. Shute	 	10,000
	Charles S. Speck	 	10,000
	Len Yamamoto	 	10,000
	John "Jack" Vuona	 	4,000
	David Davies	 	4,000
	Fred deBoom	 	4,000
	Michael Cummings	 	4,000

 
 

EXHIBIT B    
    
    FORM OF WARRANT CERTIFICATE    
    

THE TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE RESTRICTIONS SPECIFIED IN THAT CERTAIN WARRANT AGREEMENT DATED AS
OF                        , 2004, BY
PACIFIC COAST NATIONAL BANCORP, A CALIFORNIA CORPORATION ("COMPANY"), IN FAVOR OF THE ORGANIZERS LISTED ON EXHIBIT A THERETO, AS THE SAME MAY BE AMENDED
FROM TIME TO TIME ("AGREEMENT"). A COPY OF THE FORM OF THE AGREEMENT IS ON FILE AND MAY BE INSPECTED AT THE PRINCIPAL EXECUTIVE OFFICE OF THE COMPANY DURING NORMAL BUSINESS HOURS. THE HOLDER OF THIS
CERTIFICATE, BY ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE BOUND BY THE PROVISIONS OF THE AGREEMENT.

	No. W-____	 	 	 	Number of Warrants: _________

 
 

PACIFIC COAST NATIONAL BANCORP
  WARRANT CERTIFICATE    
    

This
Warrant Certificate certifies that                        , or registered assigns, is the registered holder of a warrant to
purchase the number of fully-paid and non-assessable
shares of common stock, $.01 par value of the Company ("Shares") set forth above, at the exercise price, subject to adjustment in certain events ("Exercise Price"), of $10.00 per share ("Warrant"). 

The
Warrant evidenced by this Warrant Certificate is part of a duly authorized issue of Warrants issued pursuant to the Agreement, which is hereby incorporated by reference in and made a part of this
instrument and is hereby referred to for a description of the rights, limitation of rights, obligations, duties and immunities thereunder of the Company and the Holder. All terms used, but not
otherwise defined, in this Warrant Certificate shall have the meanings assigned to them in the Agreement. If any provision of this Warrant Certificate conflicts with a provision of the Agreement, the
provision of the Agreement shall supercede. 

This
Warrant may not be exercised after 2:00 p.m., San Clemente, California time, on the earlier to occur of (i) the tenth anniversary of the date that Pacific Coast National Bank opens
for business, or (ii) the date provided in Section 3(b) of the Agreement (the "Expiration Time"). 

The
Holder may exercise the Warrant evidenced by this Warrant Certificate in whole or in part at any time prior to the Expiration Time by delivering to the secretary of the Company (i) the
Warrant Certificate; (ii) a written notice to the Company specifying the number of Shares with respect to which Warrants are being exercised; and (iii) a check for the full amount of the
aggregate Exercise Price of the Shares being acquired. 

Upon
receipt of the items set forth above, and subject to the terms of the Agreement, the Company shall promptly deliver to, and register in the name of, the Holder a certificate or certificates
representing the number of Shares acquired by exercise of this Warrant. In the event of a partial exercise of this Warrant, a new Warrant Certificate evidencing the number of Shares that remain
subject to this Warrant shall be issued by the Company to such Holder or to his duly authorized assigns. 

The
Agreement provides that upon the occurrence of certain events the Exercise Price and the type and/or number of the Company's securities issuable thereupon may, subject to certain conditions, be
adjusted. In such event, the Company may, at its option, issue a new Warrant Certificate evidencing the adjustment in the Exercise Price and the number and/or type of securities issuable upon the
exercise of the Warrants. 

Upon
surrender for registration of transfer of this Warrant Certificate, subject to the terms of the Agreement, the Company shall issue and deliver to the Holder or his duly authorized assigns, one or
more new Warrant Certificates of like tenor and in like aggregate amount. 

Prior
to the due presentment of this Warrant Certificate for registration of transfer or exchange, the Company, any Securities Registrar and any other agent of the Company may treat the person in
whose name this Warrant Certificate is registered in the Securities Register as the sole Holder of this Warrant Certificate and of the Warrant represented by this Warrant Certificate for all purposes
whatsoever, and shall not be bound to recognize any equitable or other claim to or interest in this Warrant Certificate or in the Warrant represented by this Warrant Certificate on the part of any
person and shall be unaffected by any notice to the contrary. 

The
Holder, in his capacity as such, shall not be entitled to vote or receive dividends or shall be deemed from any other purpose the holder of the Shares or other securities which may at any time be
issuable upon the exercise of this Warrant. Nothing contained in this Warrant Certificate shall be construed to confer upon the Holder, in his capacity as such, any of the rights of a shareholder of
the Company, including any right to vote for the election of directors or upon any matter submitted to shareholders of the Company at any meeting thereof, to give or withhold consent to any
corporation action, or to receive notices of meeting or other actions affecting shareholders. 

Any
notice or other communication required or permitted to be made by the Holder to the Company shall be in writing, duly signed by the Holder and shall be deemed delivered and effective when given
personally or mailed by first-class registered or certified mail, postage prepaid to the Company, at its principal place of business (or such other address as designated in writing to the Holder by
the Company). A notice given to the Company by a Holder with respect to the exercise of this Warrant shall not be effective until received by the Company. 

        IN
WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly executed under its corporate seal. 

Dated
as of                        , 2004. 

	 	 	PACIFIC COAST NATIONAL BANCORP,

a California corporation
	

 	
 	

By:	
 	

    

	 	 	Name:	 	    

	 	 	Title:	 	    

	

[SEAL]	
 	

 
	

Attest:	
 	

 
	

	
 	

 
	Name:	 	 	 	 
	 	 	 	
	 	 
	Title:	 	 	 	 
	 	 	 	
	 	 

QuickLinks

Exhibit 10.4

ORGANIZER/INITIAL DIRECTOR WARRANT AGREEMENT

EXHIBIT A LIST OF INITIAL HOLDERS

EXHIBIT B FORM OF WARRANT CERTIFICATE

PACIFIC COAST NATIONAL BANCORP WARRANT CERTIFICATE

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