Document:

Exhibit
10.18

 

Letter
Agreement

 

This letter agreement is entered into as of this 15th day of
March 2005 among Enpath Medical, Inc., a Minnesota corporation formerly
known as Medamicus, Inc. (“Enpath”), BIOMEC Inc., an Ohio corporation (“BIOMEC”)
and BIOMEC Technology Inc., a Minnesota corporation formerly known as BIOMEC
Cardiovascular Inc. (“Subsidiary”) to document the agreement and understanding
of the parties.  Enpath, BIOMEC and
Subsidiary agree as follows:

 

1.                                       In
a letter agreement dated February 26, 2004 (“February 26 Agreement”),
Enpath and BIOMEC agree to amend the Asset Purchase Agreement dated July 21,
2003 to set a value for the shares of common stock of Enpath to be delivered to
BIOMEC under the 2004 Contingent Payment equal to a Base Price of $13.62, with
the price to be no higher than $15.63 per share and no lower than $11.56 per
share.

 

2.                                       In
the February 26 Agreement, BIOMEC and Enpath also agreed that that 20
percent of the value of the 2004 Contingent Payment would be made in cash, and
80 percent of the value would be made in Enpath common stock as computed above.

 

3.                                       In
the February 26 Agreement, Enpath also agree that BIOMEC would be allowed
to distribute to its shareholders 1,066,901 shares of Enpath common stock
immediately after March 31, 2004, rather than only distribute 500,000
shares as allowed under the Agreement, and BIOMEC distributed substantially all
the 1,066,901 shares to its shareholders in April 2004.

 

4.                                       In
the February 26 Agreement, Enpath agreed that it would continue to nominate
and solicit proxies for re-election of the Chairman of BIOMEC until the later
of (a) the date on which the 2004 Contingent Payment is paid (or, if no 2004
Contingent Payment is due, March 31, 2005) or (b) such time as BIOMEC and
its affiliates held less than 5%
in the aggregate of the outstanding voting power of Enpath.

 

5.                                       BIOMEC
advised ENPATH that Action #1 and #2 would require approval by BIOMEC
shareholders and BIOMEC received shareholder approval in April 2004 and,
as a result the price and payment provisons of the February 26 Agreement
and this letter are in effect.

 

6.                                       Enpath
and BIOMEC together with Subsidiary subsequently entered into Amendment No.1
substantially in the form approved by shareholders of BIOMEC, which
memorialized changes to Section 2.4, Section 2.5.3 and Section 7.6
of the Agreement.

 

7.                                       The
February 26 Agreement and the amendment to Section 7.6 of the
Agreement stated that Enpath and BIOMEC would cooperate and negotiate in good
faith with respect to the designation of the affiliates of BIOMEC and the
process for determining the ownership interests of such affiliates.

 

 

8.                                       Enpath
and BIOMEC hereby agree, that in order to enable Enpath to prepare and mail its
proxy statements in a timely manner and include the Chair of BIOMEC (or such
other person as Enpath and BIOMEC may mutually agree) as a director, on or
prior to March 15, 2005 and on or prior to February 1 of each
subsequent year in which it believes its affiliates own five percent to Enpath,
BIOMEC will provide to Enpath a list of BIOMEC’s affiliates and the current
Enpath shareholdings of these affiliates. 
If Enpath is unable to confirm the ownership from its books and records,
BIOMEC will provide Enpath with documentation from its affiliates confirming
their ownership.

 

IN WITNESS WHEREOF, the parties hereto have
executed this letter agreement as of the as of the date first written above.

 

 

	
   

  	
  ENPATH MEDICAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  James D. Hartman

  	
   

  
	
   

  	
  Name:

  	
  James D. Hartman

  	
   

  
	
   

  	
  Title:

  	
      CEO

  	
   

  
	
   

  	
   

  
	
   

  	
  BIOMEC TECHNOLOGY INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  Trevor O. Jones

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Trevor O. Jones

  	
   

  
	
   

  	
  Title:

  	
     Chairman

  	
   

  
	
   

  	
   

  
	
   

  	
  BIOMEC INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  Trevor O. Jones

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Trevor O. Jones

  	
   

  
	
   

  	
  Title:

  	
     ChairmanEXHIBIT
10.51

 

BUSINESS
LOAN AGREEMENT

 

This Agreement dated as
of December 17, 2004, is between Bank of the West, a California banking
corporation (the “Bank”), and Central Valley Community Bancorp, a California
corporation (the “Borrower”).

 

1.             LINE
OF CREDIT AMOUNT AND TERMS

 

1.1           Line
of Credit Amount.  During the
availability period described below, the Bank will provide a line of credit to
the Borrower.  The amount of the line of
credit (the “Commitment Amount”) is Two Million Five Hundred Thousand Dollars
($2,500,000).  This is a non-revolving
line of credit.  Any amount borrowed,
even if repaid before the expiration date of the line of credit, permanently
reduces the remaining available line of credit. 
The Borrower agrees not to permit the principal balance outstanding
under this Agreement at any time to exceed the lesser of (a) the Commitment
Amount less the aggregate amount of prepayments made pursuant to Section 1.3
or (b) 200% of the Collateral Value of the Pledged Stock determined in
accordance with Section 4.  If the
principal balance outstanding under this Agreement at any time exceeds this
limit, the Borrower will immediately prepay the excess to the Bank upon the
Bank’s demand.

 

1.2           Availability
Period.  The line of credit is
available between the date of this Agreement and December      ,
2005, or such earlier date as the availability may terminate as provided in
this Agreement (the “Facility Expiration Date”).

 

1.3           Payment
Terms.  The Borrower will pay accrued
but unpaid interest on amounts outstanding hereunder beginning on December 31,
2004, and then on the last day of each March, June, September and December hereafter
and, in addition, with respect to any Portion of the outstandings to which the
LIBO Rate applies in accordance with Section 2, on the last day of the
interest period therefore.  Beginning on March 31,
2006 and then on the last day of each March, June, September and December thereafter,
the Borrower shall repay the aggregate principal balance advanced to the
Borrower under this Agreement in principal installments equal to the principal
amount outstanding on the Facility Expiration Date divided by eight (8), and on
December 31, 2007, the entire outstanding principal balance and accrued
and unpaid interest thereon shall be due and payable (each of the above dates,
a “Due Date”).  The
Borrower may prepay the loan in full or in part at any time.  Each prepayment will be applied to the most
remote payment of principal due under this Agreement.

 

1.4           Interest
Rates.

 

(a)           The
interest rate is a rate per year equal to the Bank’s Prime Rate or, with
respect to all or any portion (the “Portion”) of the outstanding principal
balance, if the Borrower so elects in accordance with this Agreement, the LIBO
Rate plus 2.50 percentage points.

 

(b)           The
Prime Rate is the rate of interest publicly announced from time to time by the
Bank as its Prime Rate.  The Prime Rate
is set by the Bank based on various factors, including the Bank’s costs and
desired return, general economic conditions and other factors, and is used as a
reference point for pricing some loans. 
The Bank may price loans to its customers at, above, or below the Prime
Rate.  Any change in the Prime Rate shall
take effect at the opening of business on the day specified in the public
announcement of a change in the Bank’s Prime Rate.

 

1

 

2.             THE
LIBO RATE

 

2.1           Availability
of LIBO Rate.  Each Portion bearing
interest calculated based on the LIBO Rate will be an amount not less than One
Hundred Thousand Dollars ($100,000).  No
Portion bearing interest calculated based on the LIBO Rate will be converted to
bear interest calculated based on a different LIBO Rate or on the Prime Rate
prior to the end of the applicable interest period.  Upon the occurrence and during the
continuance of an Event of Default under this Agreement, the Bank may terminate
the availability of the LIBO Rate for interest periods commencing during the
pendancy of the Event of Default and, at its option, may convert amounts bearing
interest calculated based on the LIBO Rate to an interest rate calculated based
on the Prime Rate prior to the end of any applicable interest period. At the
end of any interest period for any LIBO Rate Portion, the interest rate
automatically will revert to the interest rate calculated based on the Prime
Rate as specified in Section 1.4, unless the Borrower has elected, in
accordance with this Agreement, to have the LIBO Rate apply to such Portion.

 

2.2           LIBO
Rate.  The election of LIBO Rates
shall be subject to the following terms and requirements:

 

(a)           The
interest period during which the LIBO Rate will be in effect will be one, two
or three months.  The first day of the
interest period must be a day other than a Saturday or a Sunday on which the
Bank is open for business and quoting interest rates for offshore dollars (a “LIBO
Banking Day”).  The last day of the
interest period and the actual number of days during the interest period will
be determined by the Bank using the practices of the London inter-bank market.

 

(b)           The
“LIBO Rate” means the interest rate determined by the following formula,
rounded upward to the nearest 1/100 of one percent.  (All amounts in the calculation will be
determined by the Bank as of the first day of the interest period.)

 

LIBOR Rate =     London
Inter-Bank Offered Rate

(1.00 - Reserve
Percentage)

 

Where,

 

(i)            “London
Inter-Bank Offered Rate” means the interest rate quoted by the Treasury Desk of
the Bank as the interest rate that it would offer for U.S. dollar deposits for
the applicable interest period to other major banks in the London inter-bank
market at approximately 11:00 a.m. London time two (2) LIBOR Banking Days
before the commencement of the applicable interest period.

 

(ii)           “Reserve
Percentage” means the total of the maximum reserve percentages for determining
the reserves to be maintained by member banks of the Federal Reserve System for
Eurocurrency Liabilities, as defined in Federal Reserve Board Regulation D,
rounded upward to the nearest 1/100 of one percent.  The percentage will be expressed as a
decimal, and will include, but not be limited to, marginal, emergency,
supplemental, special, and other reserve percentages.

 

(c)           The
Borrower shall irrevocably request a LIBO Rate Portion no later than 12:00 noon
Pacific time on the LIBO Banking Day preceding the day on which the London
Inter-Bank Offered Rate will be set, as specified above.  For example, if there are no intervening
holidays or weekend days in any of the relevant locations, the request must be
made at least three days before the LIBOR Rate takes effect.

 

(d)           The
Bank will have no obligation to accept an election for a LIBO Rate Portion if
any of the following described events has occurred and is continuing: (i)
dollar deposits in the principal amount, and for periods equal to the interest
period, of a LIBO Rate Portion are not available in the London inter-bank
market; or (ii) adequate and reasonable means do not exist for determining the
LIBO Rate for such LIBO Rate Portion.

 

2

 

(e)           Each
prepayment of a LIBO Rate Portion, whether voluntary, by reason of acceleration
or otherwise, will be accompanied by the amount of accrued interest on the
amount prepaid and a prepayment fee as described in this section.  A “prepayment” is a payment of an amount on a
date earlier than the scheduled payment date for such amount as required by
this Agreement.  The prepayment fee shall
be in an amount sufficient to compensate the Bank for any loss, cost or expense
incurred by it as a result of the prepayment, including any loss or expense
arising from the liquidation or reemployment of funds obtained by it to
maintain such Portion or from fees payable to terminate the deposits from which
such funds were obtained (but excluding any loss of anticipated profit).  The Borrower shall also pay any customary
administrative fees charged by the Bank in connection with the foregoing.  For purposes of this paragraph, the Bank
shall be deemed to have funded each Portion by a matching deposit or other
borrowing in the applicable interbank market, whether or not such Portion was
in fact so funded.

 

3.             FEES
AND EXPENSES

 

3.1           Fees.  The Borrower agrees to pay (a) to the Bank on
the date of this Agreement a loan fee in the amount of Eighteen Thousand Seven
Hundred Fifty Dollars ($18,750.00), (b) if the Bank, at its discretion, agrees
at the request of the Borrower to waive or amend any terms of this Agreement,
at the Bank’s option, to the Bank a fee for each waiver or amendment at the
time the Borrower requests the waiver or amendment, not to exceed one-quarter
of one percent (0.25%) of the outstanding principal balance plus, if prior to
the Facility Expiration Date, any unused amount of the line of credit (but
nothing in this paragraph shall imply that the Bank is obligated to agree to
any waiver or amendment requested by the Borrower, and the Bank may impose
additional requirements as a condition to any waiver or amendment) and (c) to
the extent permitted by law, a late fee in an amount not to exceed four percent
(4%) of any payment that is more than fifteen (15) days late, but the
imposition and payment of a late fee shall not constitute a waiver of the Bank’s
rights with respect to the Event of Default.

 

3.2           Expenses.  The Borrower agrees to reimburse the Bank for
any fees and expenses incurred by the Bank for the creation or perfection of
security interests, protection of the Banks’ rights and remedies and the
administration of and any amendment or waiver of any term in this Agreement or
any related agreement or instrument. 
Expenses include, but are not limited to, filing and recording fees and
reasonable attorneys’ fees arising subsequent to the first extension of credit
under this Agreement, including any allocated costs of the Bank’s in-house counsel
to the extent permitted by applicable law.

 

4.             COLLATERAL.  The Borrower’s obligations to the Bank under
this Agreement shall, at all times, be secured by the Pledged Collateral (for
purposes of this Agreement, the “Collateral”) pursuant to, and as defined in, a
Pledge Agreement dated as of the date of this Agreement, as such agreement may
be amended, modified, replaced and augmented from time to time in accordance
with this Agremeent and such Pledge Agreement. 
The Borrower agrees, at all times, to cause the value of the Pledged
Stock (as determined by the Bank in accordance with the following sentence) to
be not less than two hundred percent (200%) of the principal balance
outstanding under this Agreement.  The
value of the Pledged Stock (the “Collateral Value) shall be twenty percent
(20%) of the Tier 1 Capital of Central Valley Community Bank disclosed in its
most recent call report filed with the California Department of Financial
Institutions (“CDFI”) and with the Federal Deposit Insurance Corporation (“FDIC”).

 

5.             DISBURSEMENTS,
PAYMENTS AND COSTS

 

5.1           Disbursements
and Payments.  Each payment by the
Borrower will be made in immediately available funds by direct debit to Central
Valley Community Bank Account Number 846004315 with the Bank or such other
accounts with the Bank as designated in writing by the Borrower or, for
payments not required by the Bank to be made by direct debit, by mail to the
address shown on the Borrower’s statement or at one of the Bank’s banking
centers in the United States.  Each
disbursement under the line of credit shall be deposited into such account of
the Borrower with the Bank as the Borrower shall designate or by wire
transmission of immediately available funds to such account as reasonably
designated by the Borrower to the Bank in writing.  Each disbursement by the Bank and each
payment by the Borrower will be evidenced by records kept by the Bank.  In addition, the Bank may, at its discretion,
require the Borrower to sign one or more promissory notes.

 

3

 

5.2           Telephone
and Telefax Authorization.  The Bank
may honor telephone or telefax instructions for advances or repayments or for
the designation of optional interest rates given, or purported to be given, by
any one of the individuals authorized to sign loan agreements on behalf of the
Borrower, or any other individual designated by any one of such authorized
signers.  The Borrower will indemnify and
hold the Bank harmless from all liability, loss, and costs in connection with
any act resulting from telephone or telefax instructions the Bank reasonably
believes are made by any individual authorized by the Borrower to give such
instructions.  This paragraph will
survive this Agreement’s termination, and will benefit the Bank and its
officers, employees, and agents.

 

5.3           Billed
Amount.  Prior to each Due Date, the
Bank will provide to the Borrower a statement of the amounts that will be due
on that Due Date (the “Billed Amount”). 
The bill will be provided a specified number of calendar days prior to
the Due Date, which number of days will be mutually agreed from time to time by
the Bank and the Borrower.  The
calculations in the bill will be made on the assumption that no new extensions
of credit or payments will be made between the date of the billing statement
and the Due Date, and that there will be no changes in the applicable interest
rate.  If the Billed Amount paid by the
Borrower (“Billed Amount Paid”) differs from the actual amount due on that date
(the “Accrued Amount”), the discrepancy will be treated as follows:  If the Billed Amount Paid is less than the
Accrued Amount, the Billed Amount for the following Due Date will be increased
by the amount of the discrepancy.  The
Borrower will not be in default by reason of any such discrepancy.  If the Billed Amount Paid is more than the
Accrued Amount, the Billed Amount for the following Due Date will be decreased
by the amount of the discrepancy. 
Regardless of any such discrepancy, interest will continue to accrue
based on the actual amount of principal outstanding without compounding.  The Bank will not pay the Borrower interest
on any overpayment.

 

5.4           Banking
Days.  Unless otherwise provided in
this Agreement, a banking day is a day other than a Saturday, Sunday or other
day on which commercial banks are authorized to close, or are in fact closed,
in the state of California, and, if such day relates to amounts bearing
interest at an offshore rate (if any), means any such day on which dealings in
dollar deposits are conducted among banks in the offshore dollar interbank
market.  All payments and disbursements
which would be due on a day which is not a banking day will be due on the next
banking day.  All payments received on a
day which is not a banking day will be applied to the credit on the next
banking day.

 

5.5           Interest
Calculation.  Interest and fees will
be calculated based on a 360-day year and the actual number of days elapsed.

 

5.6           Default
Rate.  Upon the occurrence and during
the continuance of an Event of Default under this Agreement, all amounts
outstanding under this Agreement, including any interest, fees, or costs which
are not paid when due, will at the option of the Bank bear interest at a rate
which is 3.0 percentage point(s) higher than the rate of interest otherwise
provided under this Agreement.  This may
result in compounding of interest.  This
will not constitute a waiver of an Event of Default.

 

6.             CONDITIONS.  The Bank must receive the following items, in
form and content acceptable to the Bank, before it is required to extend any
credit to the Borrower under this Agreement:

 

6.1           Conditions
to First Extension of Credit.  Before
the first extension of credit:

 

(a)           Authorizations.  Evidence that the execution, delivery and
performance by the Borrower of this Agreement and any instrument or agreement
required under this Agreement have been duly authorized.

 

(b)           Governing
Documents.  If required by the Bank,
a copy of the Borrower’s or any of its subsidiaries’ organizational documents.

 

(c)           Pledge
Agreement.  Signed original Pledge
Agreement covering the Collateral, together with the original certificates for
the Pledged Stock and related undated stock powers endorsed in blank.

 

4

 

(d)           Perfection
and Evidence of Priority. Financing statements (and any other Collateral in
which the Bank requires a possessory security interest), together with evidence
that the security interests and liens in favor of the Bank are valid,
enforceable, perfected and prior to all others’ rights and interests, except
those the Bank consents to in writing.

 

(e)           Payment
of Fees.  Payment of all accrued and
unpaid expenses incurred by the Bank as required by this Agreement.

 

(f)            Good
Standing.  Certificates of good
standing for the Borrower from its state of formation and from any other state
in which the Borrower is required to qualify to conduct its business.   Certificate of good standing for Central
Valley Community Bank issued by the CDFI.

 

(g)           Documents
and Regulatory Approvals Relating to Acquisition and Merger of Bank of Madera
County.  Copies certified to be true
and correct of the following:

 

(i)            All
acquisition and merger agreements for the acquisition of Bank of Madera County
by the Borrower and merger into Central Valley Community Bank (“Acquisition and
Merger”).

 

(ii)           All
approvals and consents required from governmental authorities, including but
not limited to, the CDFI, FDIC, and Board of Governors of the Federal Reserve
System (“Federal Reserve”), to effect the Acquisition and Merger.  All such approvals and consents shall be in a
form and substance acceptable to Bank.

 

(iii)          Pro
forma financial statements, in form and substance acceptable to Bank evidencing
that, after the effective date of the Acquisition and Merger, the Borrower and
Central Valley Community Bank will remain Well-Capitalized as such term is
defined in Sections 225.2(r) and 325.103 of Title 12 of the Code of Federal
Regulations.

 

(iv)          Evidence
in form and substance satisfactory to Bank that substantially concurrently with
the first extension of credit made pursuant to this Agreement, the Acquisition
and Merger will become effective, including evidence that all regulatory
waiting periods have expired and all regulatory conditions have been satisfied.

 

(h)           Other
Items.  Any other items that the Bank
reasonably requires.

 

6.2           Conditions
to Each Extension of Credit.  Before
each extension of credit, including the first:

 

(a)           Request
or Application.  A request for loans
in form and substance satisfactory to the Bank.

 

(b)           No
Defaults, etc.  (i) No Event of
Default (or event that, with the giving of notice or the passage of time, would
be an Event of Default) shall have occurred and be continuing under this
Agreement, (ii) each of the representations and warranties to the Bank of the
Borrower made in this Agreement and any other document shall be true and
correct in all material respects as though made as of the date such request or
application is made and as of the date such credit is extended (except for
representations and warranties expressly relating to a prior date) and (iii) no
event shall have occurred that reasonably could be expected to have a material
adverse effect on the value of the Pledged Stock, the other Collateral, the
Borrower, or any subsidiary of the Borrower.

 

7.             REPRESENTATIONS
AND WARRANTIES.  When the Borrower signs
this Agreement and as of the date each extension of credit is requested, the
Borrower makes the following representations and warranties.  Each request for an extension of credit constitutes
a renewal of these representations and warranties as of the date of the
request:

 

5

 

7.1           Formation.

 

(a)           The
Borrower.  The Borrower is a
California corporation, duly formed and existing under the laws of the State of
California, is a registered bank holding company pursuant to the Bank Holding
Company Act of 1956, as amended, and is the sole shareholder of Central Valley
Community Bank.

 

(b)           Central
Valley Community Bank.  Central
Valley Community Bank is a California banking corporation, duly formed and
existing under the laws of the State of California.  Central Valley Community Bank is duly
authorized by the CDFI to engage in the banking business in California.

 

7.2           Authorization.  This Agreement, and any instrument or
agreement required hereunder, are within the Borrower’s powers, have been duly
authorized, and do not conflict with any of its organizational papers.

 

7.3           Enforceable
Agreement.  This Agreement is a
legal, valid and binding agreement of the Borrower, enforceable against the
Borrower in accordance with its terms, and any instrument or agreement required
hereunder, when executed and delivered, will be similarly legal, valid, binding
and enforceable, except to the extent limited by bankruptcy, insolvency or
other laws of general applicability relating to or affecting the enforcement of
creditors’ rights generally or general principals of equity.

 

7.4           Good
Standing.  In each state in which the
Borrower or Central Valley Community Bank does business, each is properly
licensed, in good standing, and, where required, in compliance with fictitious
name statutes.

 

7.5           Central
Valley Community Bank Capitalization. 
As of the date hereof, the authorized capital stock of Central Valley
Community Bank consists of ten (10) shares of common stock, of which ten (10)
shares were issued and outstanding.  All
of the issued and outstanding shares of Central Valley Community Bank common
stock have been duly and validly authorized and issued, are fully paid and
non-assessable and are owned beneficially and of record by the Borrower, and
are not subject to pledge, lien or other direct or indirect collateral interest
except in favor of the Bank.

 

7.6           Compliance
with Section 1232 of the California Financial Code.  Central Valley Community Bank and its capital
stock pledged as Collateral meet the eligibility requirements for such capital
stock to be pledged as set forth in Section 1232 of the California
Financial Code.

 

7.7           No
Conflicts.  Neither this Agreement nor
any other agreement or document executed or delivered in connection herewith
conflicts, in any material respect, with any law, agreement, or obligation by
which the Borrower is bound.

 

7.8           Financial
Information.  All financial and other
information that has been or will be supplied to the Bank is sufficiently
complete to give the Bank accurate knowledge of the Borrower’s and its
subsidiaries’ financial condition, including all material contingent
liabilities; provided that, with respect to any projections and forecasts, the
Borrower represents only that such information was prepared in good faith based
upon assumptions believed to be reasonable at the time, and the Bank
acknowledges that such projections and forecasts are not to be viewed as facts
and that actual results during the period or periods covered by any such
projections or forecasts may differ from the projected or forecasted
results.  Since the date of the most
recent financial statement provided to the Bank, there has been no material
adverse change in the business condition (financial or otherwise), operations,
properties or prospects of the Borrower or any of its subsidiaries.

 

7.9           Lawsuits.  There is no lawsuit, tax claim or other
dispute pending or, to the Borrower’s knowledge, threatened against the
Borrower or any of its subsidiaries, which, if lost, would impair the Borrower’s
or any of its subsidiaries’ financial condition, the Collateral or the ability
of the Borrower to repay the loan, except as have been disclosed in writing to
the Bank.

 

7.10         Regulatory
Actions.  There is no action, formal
or informal order, arbitration or administrative or other proceeding or
investigation by any person, including without limitation any governmental
authority, pending or, to the Borrower’s knowledge, threatened against or
otherwise directly involving the Borrower

 

6

 

or any of its
subsidiaries that could have a material adverse effect on the Borrower or its
ability satisfy its obligations hereunder, nor is there any basis for any such
action, claim or arbitration or any such administrative or other proceeding or
investigation.

 

7.11         Compliance
with Laws.  The business of the
Borrower and its subsidiaries are being conducted in all material respects in
compliance with all laws, ordinances or regulations of governmental
authorities, including without limitation, laws affecting financial
institutions (including those pertaining to the Bank Secrecy Act, the
investment of funds, the lending of money, the collection of interest and the
extension of credit), federal and state securities laws, laws and regulations
relating to financial statements and reports, truth-in-lending,
truth-in-savings, usury, fair credit reporting, consumer protection,
occupational safety, fair employment practices, fair labor standards and all
other laws and regulations relating to employees and employee benefits, and any
statutes or ordinances relating to the properties occupied or used by the
Borrower or any of its subsidiaries.

 

7.12         Collateral.  All Collateral required in this Agreement is
owned by the Borrower free of any liens or interests of others, except those
which have been approved by the Bank in writing.

 

7.13         Permits,
Franchises.  The Borrower and its
subsidiaries each possesses all permits, memberships, franchises, contracts and
licenses required and all trademark rights, trade name rights, patent rights,
copyrights, and fictitious name rights necessary to enable it to conduct the
business in which it is now engaged.

 

7.14         Other
Obligations.  Neither the Borrower
nor any of its subsidiaries is in default on any obligation for borrowed money,
any purchase money obligation or any other material lease, commitment,
contract, instrument or obligation, except as have been disclosed in writing to
the Bank.

 

7.15         No
Adverse Material Change.  Neither the
Borrower nor any of its subsidiaries have undergone or suffered any material
adverse change since June 30, 2004.

 

7.16         Tax
Matters.  The Borrower has no
knowledge of any pending assessments or adjustments of its income tax for any
year and all taxes due have been paid, except as have been disclosed in writing
to the Bank.

 

7.17         No
Event of Default.  There is no event
which is, or with notice or lapse of time or both would be, an Event of Default
under this Agreement.

 

7.18         Insurance.  The Borrower and its subsidiaries have
obtained, and maintained in effect, the insurance coverage required in the “Covenants”
section of this Agreement.

 

7.19         ERISA
Plans.  Each Plan (other than a
multiemployer plan) is in compliance in all material respects with the
applicable provisions of ERISA, the Code and other federal or state law.  Each Plan has received a favorable
determination letter from the IRS and to the best knowledge of the Borrower,
nothing has occurred which would cause the loss of such qualification.  The Borrower has fulfilled its obligations,
if any, under the minimum funding standards of ERISA and the Code with respect
to each Plan, and has not incurred any liability with respect to any Plan under
Title IV of ERISA.  There are no claims,
lawsuits or actions (including by any governmental authority), and there has
been no prohibited transaction or violation of the fiduciary responsibility
rules, with respect to any Plan which has resulted or could reasonably be
expected to result in a material adverse effect on the business condition
(financial or otherwise), operations, properties or prospects of the Borrower
or any of its subsidiaries.  With respect
to any Plan subject to Title IV of ERISA, no reportable event has occurred
under Section 4043(c) of ERISA for which the PBGC requires 30-day
notice.  No action by the Borrower or any
ERISA Affiliate to terminate or withdraw from any Plan has been taken and no
notice of intent to terminate a Plan has been filed under Section 4041 of
ERISA.  No termination proceeding has
been commenced with respect to a Plan under Section 4042 of ERISA, and, to
the Borrower’s knowledge, no event has occurred or condition exists which might
constitute grounds for the commencement of such a proceeding. The following
terms have the meanings indicated for purposes of this Agreement:

 

7

 

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

 

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

 

(iii)          “ERISA
Affiliate” means any trade or business (whether or not incorporated) under
common control with the Borrower within the meaning of Section 414(b) or
(c) of the Code.

 

(iv)          “PBGC”
means the Pension Benefit Guaranty Corporation.

 

(v)           “Plan”
means a pension, profit-sharing, or stock bonus plan intended to qualify under Section 401(a)
of the Code, maintained or contributed to by the Borrower or any ERISA
Affiliate, including any multiemployer plan within the meaning of Section 4001(a)(3)
of ERISA.

 

8.             COVENANTS.  The Borrower agrees, so long as credit is
available under this Agreement and until the Bank is repaid in full:

 

8.1           Use
of Proceeds.  To use the proceeds of
loans made to the Borrower under this Agreement (a) to make a capital
contribution to Central Valley Community Bank, and (b) for general corporate
purposes; provided that the amount used for general corporate purposes shall
not exceed Five Hundred Thousand Dollars ($500,000).

 

8.2           Financial
Information.  To provide the
following financial information and statements in form and content reasonably
acceptable to the Bank, and such additional information as may be requested by
the Bank from time to time:

 

(a)           Within
120 days after the end of each fiscal year of the Borrower, a consolidated and
consolidating balance sheet of the Borrower and its subsidiaries as of the end
of such fiscal year and the related consolidated and consolidating statements of
income or operations, shareholders’ equity and cash flows for such fiscal year,
setting for in each case in comparative form the figures for the previous year,
all in reasonable detail and prepared in accordance with generally accepted
account principals (“GAAP”), such consolidated statements to be audited and
accompanied by a report and opinion of an independent certified public
accountant reasonably acceptable to the Bank (it being acknowledged and agreed
that Perry-Smith, LLP is acceptable to the Bank), which report and opinion
shall be prepared in accordance with GAAP and shall not be subject to any “going
concern” or like qualification or exception or any qualification or exception
as to the scope of such audit and such consolidating statements to be certified
by a financial officer of the Borrower to the effect that such statements are
fairly stated in all material respects when considered in relation to the
consolidated financial statements of the Borrower and its subsidiaries.

 

(b)           Within
45 days after the end of each fiscal quarter of the Borrower, a consolidated
balance sheet of the Borrower and its subsidiaries as of the end of such fiscal
quarter and the related consolidated and consolidating statements of income or
operations, shareholders’ equity and cash flows for such fiscal quarter and for
the portion of the Borrower’s fiscal year then ended, setting forth in each
case in comparative form the figures for the corresponding fiscal quarter of
the previous fiscal year and the corresponding portion of the previous fiscal
year, all in reasonable detail, such consolidated statements to be certified by
a financial officer of the Borrower as fairly presenting the financial
condition, results of operations, shareholders’ equity and cash flows of the Borrower
and its subsidiaries in accordance with GAAP, subject only to normal year-end
adjustments and the absence of footnotes and such consolidating statements to
be certified by a financial officer of the Borrower to the effect that such
statements are fairly stated in all material respects when considered in
relation to the consolidated financial statements of the Borrower and its
subsidiaries.

 

8

 

(c)           Promptly
after filing and in no event later than thirty (30) days after the end of
any fiscal quarter, the quarterly financial reports filed by the Borrower with
the Federal Reserve.

 

(d)           Promptly
after filing with the CDFI and the FDIC and in no event later than
thirty (30) days after the end of any fiscal quarter, the quarterly call
report filed by each of the Borrower’s bank subsidiaries.

 

8.3           Financial
Covenants.  As of the end of each
fiscal quarter:

 

(a)           Capital.

 

(i)            Each
of the Borrower’s subsidiary banks shall be Well-Capitalized as such
capitalized term is defined in Part 325 of Title 12 of the Code of Federal
Regulations.

 

(ii)           Each
of the Borrower’s subsidiary banks shall have a ratio of Tier 1 Capital to
Total Risk-Weighted Assets of not less than 8 percent, as those capitalized
terms are defined and calculated in Part 325 of Title 12 of the Code of Federal
Regulations.

 

(iii)          Each
of the Borrower’s subsidiary banks shall have a ratio of Tier 1 Capital to
Average Consolidated Total Assets of not less than 6 percent, as such
capitalized terms are defined and calculated in Part 325 of Title 12 of the
Code of Federal Regulations.

 

(iv)          The
Borrower, on a parent-only basis, shall have a ratio of Equity Investment in
Subsidiaries to Equity Capital of not greater that 1.15 to 1.00, as such
capitalized terms are defined and calculated in the User’s Guide for the Bank
Holding Company Performance Report published by the Federal Reserve.

 

(b)           Asset
Quality.  The Borrower, on a
consolidated basis, shall maintain a ratio of Loan and Lease Allowance to 90
Days and over Past Due, Nonaccrual Loans and Leases, and other real estate
owned of not greater than 1.00 to 1.00, measured as of the end of each fiscal
quarter.

 

(c)           Liquidity.  The Borrower, on a consolidated basis, shall
maintain a ratio of Liquid Assets to Total Liabilities of not less than. 0.20
to 1.00 (measured as of the end of each fiscal quarter), as such capitalized
terms are defined in the User’s Guide for the Bank Holding Company Performance
Report published by the Federal Reserve.

 

(d)           Profitability.  The Borrower, on a consolidated basis, shall
maintain an annualized return on assets of not less than 0.90 percent.  Such return on assets shall be calculated by
dividing Net Income (Last Four Quarters) by Average Assets (Last Four
Quarters), as such capitalized terms are defined and calculated in the User’s
Guide for the Bank Holding Company Performance Report published by the Federal
Reserve.

 

8.4           Other
Debts.  Not to have outstanding or to
incur any direct or contingent liabilities or lease obligations in an aggregate
amount in excess of Two Million Dollars ($2,000,000) (other than those to the
Bank), or become liable for the liabilities of others, without the Bank’s
written consent except in connection with:

 

(a)           Acquiring
goods, supplies, or merchandise on normal trade credit.

 

(b)           Leases
on equipment or real property to be used by the Borrower or its subsidiaries in
the ordinary course of business.

 

(c)           Endorsing
negotiable instruments received in the usual course of business.

 

(d)           Obtaining
surety bonds in the usual course of business.

 

9

 

(e)           The
issuance of trust preferred securities through a wholly-owned trust, so long as
such trust preferred securities are treated as Tier 1 Capital by the Federal
Reserve.

 

(f)            Liabilities,
lines of credit and leases in existence on the date of this Agreement disclosed
in writing to the Bank.

 

(g)           Employee
deferred compensation plans.

 

8.5           Other
Liens.  Not to create, assume, or
allow any security interest or lien (including judicial liens) on property the
Borrower now or later owns, except:

 

(a)           Liens
and security interests in favor of the Bank.

 

(b)           Liens
for taxes not yet due.

 

(c)           Liens
outstanding on the date of this Agreement disclosed in writing to the Bank.

 

(f)            Any
interest or title of a lessor or sublessor under any lease of real property.

 

(g)           Operating
and capital leases of personal property with respect to which a precautionary
financing statement is filed.

 

(h)           Other
liens on assets of the Borrower (other than Collateral) with a fair market
value in an aggregate amount not to exceed $250,000 at any one time
outstanding.

 

8.6           Maintenance
of Assets.  Except for worn-out and
obsolete assets, not to sell, assign, lease, transfer or otherwise dispose of
any of the Borrower’s or its subsidiaries’ assets for less than fair market
value, or enter into any agreement to do so.

 

8.7           Loans.  Not to make any loans, advances or other
extensions of credit in excess of Two Million Dollars ($2,000,000) to any
individual or entity, except for:

 

(a)           Existing
extensions of credit disclosed to the Bank in writing on or prior to the date
of this Agreement.

 

(b)           Extensions
of credit to the Borrower’s current subsidiaries.

 

(c)           Extensions
of credit in the nature of accounts receivable or notes receivable arising from
the sale or lease of goods or services in the ordinary course of business to
non-affiliated entities.

 

8.8           Change
of Management.  Not to make any
substantial change in the present executive or management personnel of the Borrower
without prior written notice to the Bank.

 

8.9           Change
of Ownership.  Not to cause or permit
any change in capital ownership of Central Valley Community Bank.

 

8.10         Additional
Negative Covenants.  Not to, nor
permit any subsidiary to, without the Bank’s written consent:

 

(a)           Enter
into any consolidation, merger, or other combination, or become a partner in a
partnership, a member of a joint venture, or a member of a limited liability
company.

 

(b)           Voluntarily
suspend its business, except that the Borrower may, at any time, dissolve
Clovest Corp. and Community Realty, LLC.

 

10

 

8.11         Notices
to Bank.  To promptly notify the Bank
in writing of:

 

(a)           Any
lawsuit over One Million Dollars ($1,000,000) against the Borrower or any of
its subsidiaries not otherwise covered by insurance.

 

(b)           Any
regulatory action or potential regulatory action brought by any federal or
state banking regulatory agency against the Borrower or any of its
subsidiaries.

 

(c)           Any
Event of Default under this Agreement, or any event which, with notice or lapse
of time or both, would constitute an Event of Default.

 

(d)           Any
material adverse change in the Borrower’s or any of its subsidiaries’ business
condition (financial or otherwise), operations, properties, or ability to repay
the credit.

 

(e)           Any
change in the Borrower’s or Central Valley Community Bank’s name, legal
structure, chief executive office, organizational identification number, or
jurisdiction of organization.

 

(f)            Any
payment of dividends from Central Valley Community Bank to the Borrower.

 

8.12         Insurance.

 

(a)           General
Business Insurance.  To maintain or
cause to be maintained, with financially sound and reputable insurers,
insurance with respect to its properties and business and the properties and
business of its subsidiaries against loss or damage of the kinds customarily
insured against by corporations of established reputation engaged in the same
or similar businesses and similarly situated, of such types and in such amounts
as are customarily carried under similar circumstances by such other
corporations.  Each policy shall provide
for at least thirty (30) days prior notice to the Bank of any cancellation
thereof.

 

(b)           Evidence
of Insurance.  Upon the request of
the Bank, to deliver to the Bank a copy of each insurance policy, or, if
permitted by the Bank, a certificate of insurance listing all insurance in
force.

 

8.13         Compliance
with Laws.  To comply, and cause each
of its subsidiaries to comply, in all material respects, with the laws,
regulations, and orders of any government body with authority over the Borrower’s
and any of its subsidiaries’ business, including, but not limited to, state and
federal banking regulatory agencies.

 

8.14         ERISA
Plans.  Promptly during each year, to
pay and cause any subsidiaries to pay contributions adequate to meet at least
the minimum funding standards under ERISA with respect to each and every Plan;
file each annual report required to be filed pursuant to ERISA in connection
with each Plan for each year; and notify the Bank within ten (10) days of the
occurrence of any Reportable Event that might constitute grounds for
termination of any capital Plan by the Pension Benefit Guaranty Corporation or
for the appointment by the appropriate United States District Court of a
trustee to administer any Plan.  “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time.  Capitalized terms in this
paragraph shall have the meanings defined within ERISA.

 

8.15         Books
and Records.  To maintain, and cause
each of its subsidiaries to maintain, adequate books and records.

 

8.16         Audits.  Upon an Event of Default, to allow the Bank
and its agents to inspect the Borrower’s and its subsidiaries’ properties and
examine, audit, and make copies of books and records at any reasonable
time.  If any of the Borrower’s or any of
its subsidiaries’ properties, books or records are in the possession of a third
party, the Borrower authorizes that third party to permit the Bank or its
agents, upon forty-eight hours prior notice, to have access to perform
inspections or audits and to respond to the Bank’s requests for information
concerning such properties, books and records.

 

11

 

8.17         Perfection
of Liens.  To help the Bank perfect
and protect its security interests and liens on the Collateral and the priority
thereof, and reimburse it for related costs it incurs to protect such security
interests and liens.

 

8.18         Cooperation.  To take any action reasonably requested by
the Bank to carry out the intent of this Agreement.

 

9.             DEFAULT
AND REMEDIES

 

Upon the occurrence and
during the continuation of any of the following events (each an “Event of
Default”), the Bank may do one or more of the following: declare the Borrower
in default, stop making any additional credit available to the Borrower, and
require the Borrower to repay its entire debt immediately and without prior
notice.  In addition, if any Event of
Default occurs, the Bank shall have all rights, powers and remedies available
under any instruments and agreements required by or executed in connection with
this Agreement, as well as all rights and remedies available at law or in
equity.  If an Event of Default occurs
under the paragraph entitled  “Bankruptcy,”
below, with respect to the Borrower, then the entire debt outstanding under
this Agreement will automatically be due immediately.

 

9.1           Failure
to Pay.  The Borrower fails to make a
payment under this Agreement within fifteen (15) days of when due.

 

9.2           Other
Bank Agreements.  The Borrower or any
of the Borrower’s subsidiaries fails to meet the conditions of, or fails to
perform any obligation under any other agreement with the Bank or any affiliate
of the Bank if such agreement is for borrowed money or other extension of
credit to the Borrower or any of the Borrower’s subsidiaries and such failure
remains unremedied for thirty (30) days from the date that the Bank has
notified the Borrower of such failure.

 

9.3           Cross-default.  (i) The Borrower or any of the Borrower’s
subsidiaries defaults under any agreement 
(other than this Agreement) evidencing any obligation for borrowed money
(or other extension of credit) in an aggregate amount in excess of Two Hundred
and Fifty Thousand Dollars ($250,000) or a default shall occur under any
obligation for an aggregate amount in excess of Two Hundred and Fifty Thousand
Dollars ($250,000) that is guaranteed by the Borrower or any of its
subsidiaries and (ii) such default remains unremedied for thirty (30) days from
the date that the Borrower becomes aware that such default has occurred.

 

9.4           False
Information.  The Borrower or any of
its subsidiaries has given the Bank false or misleading information or
representations; provided, however, that it shall not be deemed to be an Event
of Default if, at the time the information or representation was given, the
Borrower or its subsidiary reasonably and in good faith believed the
information or representation to be true and complete.

 

9.5           Bankruptcy.  The Borrower or any of its subsidiaries files
a bankruptcy petition, a bankruptcy petition is filed against the Borrower or
any of its subsidiaries, or the Borrower or any of its subsidiaries makes a
general assignment for the benefit of creditors; provided, however, in the case
of any bankruptcy petition filed against the Borrower or any of its
subsidiaries, such filing shall not be an Event of Default unless it is not
dismissed within a period of forty-five (45) days after the filing, during
which period the Bank will not be obligated to extend any additional credit to
the Borrower.

 

9.6           Lien
Priority.  The Bank fails, for any
reason except for failure of the Bank to retain possession of pledged
Collateral or to continue any financing statement perfecting its security interest,
to have an enforceable first priority perfected lien (except for any prior
liens to which the Bank has consented in writing) on or security interest in
any property given as security for this Agreement.

 

9.7           Judgments.  Any judgments or arbitration awards are
entered against the Borrower or any of its subsidiaries, or any the Borrower or
any of its subsidiaries enters into any settlement agreements with respect to
any litigation or arbitration, in an aggregate amount of One Million Dollars
($1,000,000) or more in excess of any insurance coverage and such judgments or
awards shall not have been vacated, discharged, or stayed or bonded pending
appeal within thirty (30) days from the entry therof.

 

12

 

9.8           Material
Adverse Change.  A material adverse
change occurs, or is reasonably likely to occur, in the Borrower’s or any of
its subsidiaries’ business condition (financial or otherwise), operations,
properties, or ability to repay the credit and such material adverse change
remains unremedied for thirty (30) days from the date such material adverse
change first occurred or for a material adverse change that is reasonably
likely to occur, thirty (30) days from the date first discovered.

 

9.9           Government
Action or Regulation.  Any
governmental authority takes any action, including, but not limited to,
imposing a formal order or memorandum of understanding or the adoption of any
laws, ordinances, or regulations that restrict the ability of Central Valley
Community Bank to pay dividends or make similar distributions to the Borrower.

 

9.10         Default
under Related Documents.  Any default
occurs under any security agreement or other document required by or delivered
in connection with this Agreement or any such document is no longer in effect
and such default remains unremedied for thirty (30) days from the date of such
default.

 

9.11         ERISA
Plans.  Any one or more of the
following events occurs with respect to a Plan of the Borrower or any of its
subsidiaries subject to Title IV of ERISA and such event remains unremedied for
thirty (30) days from the date such event first occurred, provided such event
or events could reasonably be expected, in the judgment of the Bank, to subject
the Borrower or any of its subsidiaries to any tax, penalty or liability (or
any combination of the foregoing) which, in the aggregate, could have a
material adverse effect on the financial condition of the Borrower any of its
subsidiaries:

 

(a)           A
reportable event shall occur under Section 4043(c) of ERISA with respect
to a Plan.

 

(b)           Any
Plan termination (or commencement of proceedings to terminate a Plan) or the
full or partial withdrawal from a Plan by the Borrower or any ERISA Affiliate.

 

9.12         Other
Breach Under Agreement.  The Borrower
fails to meet the conditions of, or fails to perform any obligation under, any
term of this Agreement not specifically referred to in this Article and
such failure remains unremedied for thirty (30) days from the date of such
failure.  This includes any failure by
the Borrower to comply with any financial covenants set forth in this
Agreement, whether such failure is evidenced by financial statements delivered
to the Bank or is otherwise known to the Borrower or the Bank.

 

10.           ENFORCING
THIS AGREEMENT; MISCELLANEOUS

 

10.1         GAAP.  Except as otherwise stated in this Agreement
or as required by law, all financial information provided to the Bank and all
financial covenants will be made under GAAP, consistently applied.

 

10.2         California
Law.  This Agreement is governed by
California law.

 

10.3         Successors
and Assigns.  This Agreement is
binding on the Borrower’s and the Bank’s successors and assignees.  The Borrower agrees that it may not assign
this Agreement without the Bank’s prior consent.  The Bank may sell participations in or assign
this loan, and may exchange financial information about the Borrower with
actual or potential participants or assignees. 
If a participation is sold or the loan is assigned, the purchaser will
have the right of set-off against the Borrower.

 

10.4         Waiver
of Jury Trial.   EACH PARTY HERETO
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). 
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO

 

13

 

HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS PARAGRAPH.

 

10.5         Severability;
Waivers.  If any part of this
Agreement is not enforceable, the rest of the Agreement may be enforced.  The Bank retains all rights, even if it makes
a loan after an Event of Default.  If the
Bank waives an Event of Default, it may enforce a later Event of Default.  Any consent or waiver under this Agreement
must be in writing.

 

10.6         Attorneys’
Fees.  The Borrower shall reimburse
the Bank for any reasonable costs and attorneys’ fees incurred by the Bank in
connection with the enforcement or preservation of any rights or remedies under
this Agreement and any other documents executed in connection with this Agreement,
and in connection with any amendment, waiver, “workout” or restructuring under
this Agreement.  In the event of a
lawsuit or arbitration proceeding, the prevailing party is entitled to recover
costs and reasonable attorneys’ fees incurred in connection with the lawsuit or
arbitration proceeding, as determined by the court or arbitrator.  In the event that any case is commenced by or
against the Borrower under the Bankruptcy Code (Title 11, United States Code)
or any similar or successor statute, the Bank is entitled to recover costs and
reasonable attorneys’ fees incurred by the Bank related to the preservation,
protection, or enforcement of any rights of the Bank in such a case.  As used in this paragraph, “attorneys’ fees”
includes the allocated costs of the Bank’s in-house counsel.

 

10.7         One
Agreement.  This Agreement and any
related security or other agreements required by this Agreement, collectively:

 

(a)           represent
the sum of the understandings and agreements between the Bank and the Borrower
concerning this credit;

 

(b)           replace
any prior oral or written agreements between the Bank and the Borrower
concerning this credit; and

 

(c)           are
intended by the Bank and the Borrower as the final, complete and exclusive
statement of the terms agreed to by them.

 

In the event of any
conflict between this Agreement and any other agreements required by this
Agreement, this Agreement will prevail. 
Any reference in any related document to a “promissory note” or a “note”
executed by the Borrower and dated as of the date of this Agreement shall be
deemed to refer to this Agreement, as now in effect or as hereafter amended,
renewed, or restated.

 

10.8         Indemnification.  The Borrower will indemnify and hold the Bank
harmless from any loss, liability, damages, judgments, and reasonable costs of
any kind relating to or arising directly or indirectly out of (a) this
Agreement or any document required hereunder, (b) any credit extended or
committed by the Bank to the Borrower hereunder, and (c) any litigation or
proceeding related to or arising out of this Agreement, any such document, or
any such credit, except to the extent that any such loss, liability, damages,
judgments or costs were incurred by any Indemnified Party by reason of the Bank’s
gross negligence or willful misconduct. 
This indemnity includes but is not limited to attorneys’ fees (including
the allocated cost of in-house counsel). 
This indemnity extends to the Bank, its parent, subsidiaries and all of
their directors, officers, employees, agents, successors, attorneys, and
assigns (the “Indemnified Parties”). 
This indemnity will survive repayment of the Borrower’s obligations to
the Bank.  All sums due to the Bank
hereunder shall be obligations of the Borrower, due and payable immediately
upon demand (unless demand is stayed or enjoined, in which case no demand shall
be required).

 

10.9         Notices.  Unless otherwise provided in this Agreement
or in another agreement between the Bank and the Borrower, all notices required
under this Agreement shall be personally delivered or sent by first class mail,
postage prepaid, or by overnight courier, to the addresses on the signature
page of this Agreement, or sent by facsimile to the fax numbers listed on the
signature page, or to such other addresses as the Bank and the Borrower may
specify from time to time in writing. 
Notices and other communications shall be effective (i) if mailed, upon
the earlier of receipt or five (5) days after deposit in

 

14

 

the U.S. mail, first class,
postage prepaid, (ii) if telecopied, when transmitted, or (iii) if
hand-delivered, by courier or otherwise (including telegram, lettergram or
mailgram), when delivered.

 

10.10       Headings.  Article and paragraph headings are for
reference only and shall not affect the interpretation or meaning of any
provisions of this Agreement.

 

10.11       Counterparts.  This Agreement may be executed in as many
counterparts as necessary or convenient, and by the different parties on
separate counterparts each of which, when so executed, shall be deemed an
original but all such counterparts shall constitute but one and the same
agreement.

 

10.12       Confidentiality.  The Lender agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its affiliates’ directors, officers, employees
and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory
authority (including any self-regulatory authority, such as the National
Association of Insurance Commissioners), (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d)
in connection with the exercise of any remedies hereunder or under the Pledge
Agreement any other related document or any action or proceeding relating to
this Agreement or the enforcement of rights hereunder or thereunder, (e)
subject to an agreement containing provisions substantially the same as those
of this section, to (f) (i) any assignee of or participant in, or any
prospective assignee of or participant in, any of its rights or obligations
under this Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Borrower and
its obligations, (g) with the consent of the Borrower or (h) to the extent such
Information (x) becomes publicly available other than as a result of a breach
of this Section or (y) becomes available to the Bank on a nonconfidential
basis from a source other than the Borrower. 
For purposes of this Section, “Information” means all information
received from the Borrower or any subsidiary of the Borrower (collectively, the
“Loan Parties”) relating to any Loan Party or any of their respective
businesses, other than any such information that is available to the Bank on a
nonconfidential basis prior to disclosure by any Loan Party.

 

This Agreement is
executed as of the date stated at the top of the first page.

 

 

	
  BANK
  OF THE WEST

  	
  CENTRAL VALLEY
  COMMUNITY BANCORP

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Donald J. Robinson

  	
   

  	
  By:

  	
  /s/ Daniel J. Doyle

  	
   

  
	
  Typed
  Name: Donald J. Robinson

  	
  Typed Name: Daniel J.
  Doyle

  
	
  Title:
  Sr. Vice President of Financial Institutions

  	
  Title: Chief Executive
  Officer

  
	
   

  	
  Department

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
  Typed
  Name

  	
   

  	
   

  	
  Typed Name

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  	
  Title

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address
  where notices to

  	
  Address where notices
  to

  
	
  the
  Bank are to be sent:

  	
  the Borrower are to be
  sent:

  
	
   

  	
   

  	
  600 Pollasky Avenue

  
	
   

  	
   

  	
  Clovis, California
  93612

  
	
  Facsimile:

  	
   

  	
   

  	
  Telephone:

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
   

  	
   

  
																	

 

15

 

PLEDGE AGREEMENT

 

THIS PLEDGE AGREEMENT
(the “Pledge Agreement”) is made and dated as of the 17th day of
December, 2004 by and between CENTRAL VALLEY COMMUNITY BANCORP, a California
corporation (the “Borrower”), and BANK OF THE WEST, a California banking
corporation (the “Bank”).

 

RECITALS

 

A.            Pursuant to that
certain Business Loan Agreement dated as of December 1, 2004 between the
Borrower and the Bank (as amended, extended and replaced from time to time, the
“Credit Agreement”), the Bank has agreed to extend credit to the
Borrower from time to time.  All
capitalized terms not otherwise defined herein are used with the meanings given
such terms in the Credit Agreement.  All
other terms not otherwise defined herein shall have the meanings attributed to
such terms in the California Uniform Commercial Code as in effect from time to
time.

 

B.            As
a condition precedent to the Bank’s obligations to extend and to continue
extending credit under the Credit Agreement and as security for the payment and
performance of the Secured Obligations (as defined in Paragraph 3
below), the Borrower is required to execute and deliver, for the purpose of
granting a security interest in the Pledged Collateral, all as hereinafter
provided.

NOW, THEREFORE, in
consideration of the above Recitals and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the parties hereto
hereby agree as follows:

 

AGREEMENT

 

1.             Grant
of Security Interest.  The Borrower
hereby pledges, assigns and grants to the Bank, a security interest in the
property described in Paragraph 2 below (collectively and severally, the
“Pledged Collateral”) to secure payment and performance of the Borrower’s
Secured Obligations.

 

2.             Collateral.  The Pledged Collateral shall consist of all
right, title and interest of the Borrower, whether now existing or hereafter
acquired:

 

(a ) common stock of Central Valley Bank
constituting 20% of the issued and outstanding common stock of Central Valley
Bank, a subsidiary of the Borrower (“Pledged Equity Interests”), as more fully
described on Schedule 1 to this Agreement;

 

(b) all payments of
principal or interest, dividends, cash, instruments and other property from
time to time received, receivable or otherwise distributed, in respect of, in
exchange for or upon the conversion of the securities referred to in subparagraph
(a) above;

 

(c) all rights, powers
and privileges with respect to the Pledged Collateral referred to in subparagraphs
(a) and (b) above; and

 

(d) all proceeds of the
foregoing Pledged Collateral.

 

Upon delivery to the Bank,
(a) any stock certificates, promissory notes or other securities now or
hereafter included in the Pledged Collateral (the “Pledged Securities”)
shall be accompanied by stock powers duly executed in blank or other
instruments of transfer satisfactory to the Bank and by such other endorsement,
instruments and documents as the Bank may reasonably request and (b) all other
property comprising part of the Pledged Collateral shall be accompanied by
proper instruments of assignment duly executed by the Borrower and such other
endorsements, instruments or documents as the Bank may reasonably request.  The Borrower promises promptly to deliver to
the Bank any and all Pledged Securities and any and all certificates or other
instruments or documents representing the Pledged Collateral.  Each delivery of or other change in Pledged
Securities or Pledged Equity Interests shall be accompanied by a schedule describing
the securities theretofor and then being pledged hereunder, which schedule shall
be attached hereto as Schedule 1 and made a part hereof.  Each schedule so delivered shall
supersede any prior schedules so delivered. 
If any Pledged Securities or other assets of the Borrower shall, at any
time, cease to be Pledged Collateral hereunder, the Bank agrees, at the cost of
the Borrower, (i) that its security interest therein concurrently will be
terminated without further action of the Bank, (ii) promptly on receipt of
written notice thereof, to re-deliver to the Borrower all stock certificates,
promissory notes, stock powers, endorsements, instruments and documents
delivered to the Bank hereunder in connection with such Pledged Collateral, and
(iii) to terminate or appropriately amend financing statements filed to perfect
the security interest in such Pledged Collateral.

 

3.             Secured
Obligations.  The “Secured
Obligations” secured by this Pledge Agreement shall consist

 

16

 

of all obligations of the
Borrower under the Credit Agreement and each other loan document related
thereto to which it is a party (“Loan Documents”), in each case whether
now existing or hereafter arising, voluntary or involuntary, whether or not
jointly owed with others, direct or indirect, absolute or contingent,
liquidated or unliquidated, and whether or not from time to time decreased or
extinguished and later increased, created or incurred, whether now existing or
hereafter arising.

 

4.             Representations
and Warranties.  In addition to all
representations and warranties of the Borrower set forth in the Loan Documents,
which are incorporated herein by this reference, the Borrower hereby represents
and warrants that:  (a) the Pledged
Equity Interests represent that percentage set forth on Schedule 1
of the issued and outstanding Equity Interests of the issuer with respect
thereto; (b) except for the security interest granted hereunder, Borrower (i)
is and, except as otherwise permitted by the Credit Agreement, will at all
times continue to be the direct owner, beneficially and of record, of the Pledged
Securities indicated on Schedule I; (ii) holds the same free and clear of
all liens except those permitted by the Credit Agreement or any other Loan
Document; (iii) will not dispose of or make any assignment, pledge,
hypothecation or transfer of, or create or permit to exist any security
interest in or other lien on, the Pledged Collateral, other than pursuant
hereto, or as permitted by the Credit Agreement or the other Loan Documents and
(iv) to the extent required by clause (h) below, will cause any and all Pledged
Securities received after the date of this Pledge Agreement, whether for value
paid or otherwise, to be forthwith deposited with the Bank and pledged or
assigned hereunder; (c) the Borrower (i) has the power and authority to pledge
the Pledged Collateral in the manner hereby done or contemplated and (ii) will
defend its title or interest thereto or therein against any and all liens
(other than the liens created by this Pledge Agreement or permitted by the
Credit Agreement or the other Loan Documents), however arising, of all persons
whomsoever; (d) no consent of any other person (including stockholders or
creditors of the Borrower) and no consent or approval of any governmental
authority or any securities exchange was or is necessary to the validity or
enforceability of the pledge effected hereby, except such consents as have been
obtained and are in full force and effect; (e) by virtue of the execution and
delivery by Borrower of this Pledge Agreement, when the Pledged Securities,
certificates or other documents representing or evidencing the Pledged
Collateral are delivered to the Bank in accordance with this Pledge Agreement
or, if a security interest in the Pledged Collateral may not, under applicable
law be perfected by possession, then upon the filing of appropriate financing
statements, the Bank will obtain a valid and perfected first lien upon and
security interest in such Pledged Securities as security for the payment and
performance of the Secured Obligations of the Borrower; (f) all of the Pledged
Equity Interests have been duly authorized and validly issued and are fully
paid and nonassessable and are in certificated form; (g) the Pledged Collateral
will not be represented by any certificates, notes, securities, documents, or
other instruments other than those delivered hereunder; and (h) the Pledged
Equity Interests represent and at all times will represent 20% of the issued
and outstanding common stock of Central Valley Community Bank, as subsidiary of
the Borrower.

 

5.             Registration
in Nominee Name; Denominations.  The
Bank shall have the right following an event of default as set forth in the
Credit Agreement (“Event of Default”) which is continuing (in its sole
and absolute discretion) to hold the Pledged Securities in its own name as pledgee,
the name of its nominee (as pledge or as sub-agent) or the name of the Borrower
granting a security interest therein, endorsed or assigned in blank or in favor
of the Bank.  The Borrower will promptly
give to the Bank copies of any notices or other communication received by it
from any governmental authority with respect to the Pledged Securities
registered in the name of the Borrower which may negatively affect the Bank’s
security interest therein.  The Bank
shall at all times following an Event of Default which is continuing have the
right to exchange the certificates representing Pledged Securities for
certificates of smaller or larger denominations for any purpose consistent with
this Pledge Agreement.  The Borrower
hereby grants to the Bank an exclusive, irrevocable power of attorney, with
full power and authority in the place and stead of the Borrower to take all
such action permitted under this Paragraph 5.  The Borrower agrees to reimburse the Bank
upon demand for any reasonable costs and expenses, including, without
limitation, reasonable attorneys’ fees, the Bank may incur while acting as the
Borrower’s attorney-in-fact hereunder, all of which costs and expenses are
included in the Secured Obligations of the Borrower secured hereby.  It is further agreed and understood between
the parties hereto that such care as the Bank gives to the safekeeping of its
own property of like kind shall constitute reasonable care of the Pledged
Collateral when in the Bank’s possession; provided, however, that the Bank
shall not be required to make any presentment, demand or protest, or give any
notice and need not take any action to preserve any rights against any prior
party or any other person in connection with the Secured Obligations or with
respect to the Pledged Collateral (except with respect to the Borrower as
provided for herein and in the Credit Agreement).

 

17

 

6.             Administration
of the Pledged Securities.

 

(a)           Until
there shall have occurred and be continuing an Event of Default, the Borrower
shall be entitled to vote or consent with respect to the Pledged Securities in
any manner not inconsistent with this Pledge Agreement or any document or
instrument delivered or to be delivered pursuant to or in connection with any
thereof; provided, however, that Borrower will not be entitled to exercise any
such right if the result thereof could materially and adversely affect the
rights inuring to a holder of the Pledged Securities or the rights and remedies
of the Bank under this Pledge Agreement, the Credit Agreement or the Loan
Documents or the ability of the Bank to exercise the same.  If there shall have occurred and be
continuing an Event of Default and the Bank shall have notified a Borrower that
the Bank desires to exercise its proxy rights with respect to all or a portion
of the Pledged Securities, the Borrower hereby grants to the Bank an
irrevocable proxy for the Pledged Securities of the Borrower pursuant to which
proxy the Bank shall be entitled to vote or consent, in its discretion, and in
such event, each the Borrower agrees to deliver to the Bank such further
evidence of the grant of such proxy as the Bank may request.  Upon the occurrence and during the
continuance of an Event of Default, all rights of the Borrower to exercise the
voting and consensual rights and powers it is entitled to exercise pursuant to
this Pledge Agreement shall cease, and all such rights shall thereupon become
vested in the Bank, which shall have the sole and exclusive right and authority
to exercise such voting and consensual rights and powers.

 

(b)           In
the event that, at any time or from time to time after the date hereof,
Borrower, as record and beneficial owner of Pledged Securities, shall receive
or shall become entitled to receive, any dividend or any other distribution
whether in securities or property by way of stock split, spin-off, split-up or
reclassification, combination of shares or the like, or in case of any
reorganization, consolidation or merger, or the Borrower, as record and
beneficial owner of Pledged Securities, shall thereby be entitled to receive
securities or property in respect of such Pledged Securities to the extent that
such Pledged Securities do not result in the Pledged Equity Interests
constituting more than 20% of the issued and outstanding common stock of
Central Valley Community Bank, a subsidiary of the Borrower, then and in each
such case, the Borrower shall deliver to the Bank, and the Bank shall be
entitled to receive and retain, all such securities or property as part of the
Pledged Securities, as security for the payment and performance of the Borrower’s
Secured Obligations; provided, however, that until an Event of Default shall
have occurred and be continuing, the Borrower shall be entitled to receive,
retain, and use any cash dividends, interest, principal payments and other
distributions paid to it on account of the Pledged Securities to the extent
that such payments or other distributions are permitted by, and otherwise paid
in accordance with, the terms and conditions of the Credit Agreement and the
other Loan Documents.

 

(c)           Upon
the occurrence and during the continuance of an Event of Default, all rights of
the Borrowers to dividends, distributions, interest or principal that the
Borrower is authorized to receive pursuant to this Pledge Agreement shall
cease, and all such rights shall thereupon become vested in the Bank, which
shall have the sole and exclusive right and authority to receive and retain
such dividends, distributions, interest or principal.  All dividends, distributions, interest or
principal received by the Borrower contrary to the provisions of this Pledge
Agreement shall be held in trust for the benefit of the Bank, shall be
segregated from other property or funds of the Borrower and shall forthwith be
delivered to the Bank upon demand in the same form as so received (with any
necessary endorsement).  Any and all
money and other property paid over to or received by the Bank pursuant to the
provisions of this subparagraph (c) shall be retained by the Bank in an
account to be established by the Bank upon receipt of such money or other
property and shall constitute Pledged Collateral under this Pledge Agreement to
be applied in accordance herewith.

 

(d)           Upon
the occurrence and during the continuation of an Event of Default, the Bank is
authorized to sell the Pledged Securities and, at any such sale of any of the
Pledged Securities, if it deems it advisable to do so, to restrict the
prospective bidders or purchasers to persons or entities who (1) will represent
and agree that they are purchasing for their own account, for investment, and
not with a view to the distribution or sale of any of the Pledged Securities;
and (2) satisfy the offeree and purchaser requirements for a valid private
placement transaction under Section 4(2) of the Securities Act of 1933, as
amended (the “Act”), and under Securities and Exchange Commission
Release Nos. 33-6383; 34-18524; 35-22407; 39-700; IC-12264; AS-306, or under
any similar statute, rule or regulation. 
The Borrower agrees that disposition of the Pledged Securities pursuant
to any private sale made as provided above may be at prices and on other terms
less favorable than if the Pledged Securities were sold at public sale, and
that the Bank has no obligation to delay the sale of any Pledged Securities for
public sale under the

 

18

 

Act.  The Borrower agrees that a private sale or
sales made under the foregoing circumstances shall be deemed to have been made
in a commercially reasonable manner.  In
the event that the Bank elects to sell all or any part of the Pledged
Securities of Borrower, and there is a public market for such Pledged
Securities, in a public sale, Borrower shall use its best efforts to register
and qualify its Pledged Securities, or applicable part thereof, under the Act
and all state blue sky or securities laws required by the proposed terms of
sale.

 

(e)           If
any consent, approval or authorization of any federal, state, municipal or other
governmental department, agency or authority should be necessary to effectuate
any sale or other disposition of the Pledged Securities of a Borrower, or any
part thereof, the Borrower will execute such applications and other instruments
as may be reasonably required in connection with securing any such consent,
approval or authorization, and will otherwise use its commercially reasonable
efforts to secure the same.

 

(f)            Nothing
contained in this Paragraph 6 shall be deemed to limit the other
obligations of the Borrower contained in the Credit Agreement, or this Pledge
Agreement, or the rights of the Bank hereunder or thereunder.

 

7.             Remedies.

 

(a)           Upon
the occurrence and during the continuation of an Event of Default, the Bank
may, without notice to or demand on the Borrower and in addition to all rights
and remedies available to the Bank with respect to the Secured Obligations, at
law, in equity or otherwise, do any one or more of the following:

 

(1)           Foreclose
or otherwise enforce the Bank’s security interest in Pledged Collateral of the
Borrower in any manner permitted by law or provided for in this Pledge
Agreement.

 

(2)           Sell,
lease, license or otherwise dispose of any Pledged Collateral of the Borrower
at one or more public or private sales at the Bank’s place of business or any
other place or places, including, without limitation, any broker’s board or
securities exchange, whether or not such Pledged Collateral is present at the
place of sale, for cash or credit or future delivery, on such terms and in such
manner as the Bank may determine.

 

(3)           Recover
from the Borrower all costs and expenses, including, without limitation,
reasonable attorneys’ fees (including the allocated cost of internal counsel),
incurred or paid by the Bank in exercising any right, power or remedy provided
by this Pledge Agreement.

 

(4)           In
connection with the disposition of any Pledged Collateral of the Borrower,
disclaim any warranty relating to title, possession or quiet enjoyment.

 

(b)           Unless
the Pledged Collateral of the Borrower threatens to decline speedily in value
or is of a type customarily sold on a recognized market, the Borrower shall be
given ten (10) Business Days’ prior notice of the time and place of any public
sale or of the time after which any private sale or other intended disposition
of such Pledged Collateral is to be made pursuant to this Pledge Agreement,
which notice the Borrower hereby agrees shall be deemed reasonable notice
thereof.

 

(c)           Upon
any sale or other disposition pursuant to this Pledge Agreement, the Bank shall
have the right to deliver, assign and transfer to the purchaser thereof the
Pledged Collateral or portion thereof so sold or disposed of.  Each purchaser at any such sale or other
disposition (including the Bank) shall hold the Pledged Collateral free from
any claim or right of whatever kind, including any equity or right of
redemption of the Borrower, and the Borrower specifically waives (to the extent
permitted by law) all rights of redemption, stay or appraisal which it has or
may have under any rule of law or statute now existing or hereafter adopted.

 

(d)           Any
deficiency with respect to the Secured Obligations of a Borrower which exists
after the disposition or liquidation of the Pledged Collateral of the Borrower
shall be a continuing liability of the Borrower to the Bank and shall be
immediately paid by the Borrower to such Person.

 

8.             Application
of Non-Cash Proceeds. 
Notwithstanding anything else contained in this Pledge Agreement, if any
non-cash proceeds are received in connection with any sale or disposition of
any Pledged Collateral, the Bank shall not apply such non-cash proceeds to the
Secured Obligations unless and until such proceeds are converted to cash;
provided, however, that if such non-cash proceeds are not expected on the date
of receipt thereof to be converted to cash within one year after such date, the
Bank shall use commercially reasonable efforts to convert such non-cash
proceeds to cash within such one year period.

 

9.             Waiver
of Hearing.  The Borrower expressly
waives to the extent permitted under applicable law any constitutional or other
right to a judicial hearing prior to the time the Bank takes possession or
disposes of the Pledged Collateral upon the occurrence and during the
continuation of an Event of

 

19

 

Default.

 

10.           Cumulative
Rights.  The rights, powers and
remedies of the Bank under this Pledge Agreement shall be in addition to all
rights, powers and remedies given to the Bank by virtue of any statute or rule
of law, the Credit Agreement, any Loan Document or any other agreement, all of
which rights, powers and remedies shall be cumulative and may be exercised
successively or concurrently without impairing the Bank’s security interest in
the Pledged Collateral.

 

11.           Waiver.  Any forbearance or failure or delay by the
Bank in exercising any right, power or remedy shall not preclude the further
exercise thereof, and every right, power or remedy of the Bank shall continue
in full force and effect until such right, power or remedy is specifically
waived in a writing executed by the Bank. 
The Borrower waives any right to require the Bank to proceed against any
person or to exhaust any Pledged Collateral or to pursue any remedy in the Bank’s
power.

 

12.           Setoff.  The Borrower agrees that the Bank may
exercise its rights of setoff with respect to the Secured Obligations in the
same manner as if the Secured Obligations of the Borrower were unsecured.

 

13.           Financing
Statements.  The Borrower hereby
consents to, authorizes and instructs the Bank to file financing statements
with respect to the Pledged Collateral in all locations deemed appropriate by
the Bank from time to time.

 

14.           Entire
Agreement.  This Pledge Agreement and
the other Loan Documents embody the entire agreement and understanding between
the parties hereto and supersede all prior agreements and understandings
relating to the subject matter hereof and thereof.

 

15.           Survival.  All representations, warranties, covenants
and agreements contained herein and in the other Loan Documents of the Borrower
shall survive the termination of this Pledge Agreement and shall be effective
until the Secured Obligations of all Borrowers are paid and performed in full
or longer as expressly provided herein.

 

16.           Notices.  All notices shall be given in accordance with
the Credit Agreement.

 

17.           Governing
Law.  This Pledge
Agreement shall be governed by and construed in accordance with the laws of the State of California without giving effect to its choice of law
rules.

 

18.           Counterparts.  This Pledge Agreement may be executed in any
number of counterparts, all of which together shall constitute one agreement.

 

19.           Severability.  The illegality or unenforceability of any
provision of this Pledge Agreement or any instrument or agreement required
hereunder or thereunder shall not in any way affect or impair the legality or
enforceability of the remaining provisions hereof or thereof.

 

[Signature Pages
Following]

 

20

 

EXECUTED as of the day
and year first above written.

 

 

	
   

  	
  CENTRAL VALLEY
  COMMUNITY BANCORP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Daniel J.
  Doyle

  	
   

  
	
   

  	
  Name:

  	
  Daniel J. Doyle

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  BANK OF THE WEST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Donald J.
  Robinson

  	
   

  
	
   

  	
  Name:

  	
  Don Robinson

  
	
   

  	
  Title:

  	
  Sr. Vice President of Financial Institutions
  Department

  
							

 

SCHEDULE 1

(TO PLEDGE AGREEMENT)

 

PLEDGED SECURITIES

 

	
  Owner

  	
   

  	
  Issuer

  	
   

  	
  No. of Equity Interests

  Pledged

  	
   

  	
  Percentage of

  Total

  	
   

  
	
  Borrower

  	
   

  	
  Central Valley
  Community Bank

  	
   

  	
   

  	
   

  	
  20

  	
  %

  

 

21

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