Document:

Exhibit
10.2

UNITED STATES DEPARTMENT OF THE TREASURY

1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

February __, 2009

Ladies and Gentlemen:

          Reference
is made to that certain Letter Agreement incorporating the Securities Purchase
Agreement – Standard Terms dated of as of the date of this letter agreement
(the “Securities
Purchase Agreement”) between United States Department of Treasury (“Investor”)
and the company named on the signature page hereto (the “Company”). Capitalized terms
used but not defined herein shall have the meanings assigned to them in the
Securities Purchase Agreement.

          The
American Recovery and Reinvestment Act of 2009, as it may be amended from time
to time (the “Act”), includes
provisions relating to executive compensation and other matters that may be
inconsistent with the Securities Purchase Agreement, the Warrant and the
Certificate[s] of Designation (the “Transaction
Documents”). Accordingly, Investor and the Company desire to confirm
their understanding as follows: 

          1.          Notwithstanding
anything in the Transaction Documents to the contrary, in the event that the
Act or any rules or regulations promulgated thereunder are inconsistent with
any of the terms of the Transaction Documents, the Act and such rules and
regulations shall control.

	
 

	
 

	
 

	
2.          For
  the avoidance of doubt (and without limiting the generality of Paragraph 1):

	
 

	
 

	
 

	
             (a)          the
  provisions of Section 111 of the Emergency Economic Stabilization Act of
  2008, as amended by the Act or otherwise from time to time (“EESA”), shall apply to the Company;

	
 

	
 

	
 

	
             (b)          the
  waiver to be delivered by each of the Company’s Senior Executive Officers
  pursuant to Section 1.2(d)(v) of the Securities Purchase Agreement shall, in
  addition, be delivered by any additional highly compensated employees
  required by applicable rules or regulations under EESA; 

	
 

	
 

	
 

	
             (c)          the
  Company’s chief executive officer and chief financial officer shall provide
  the written certification of compliance by the Company with the requirements
  of Section 111 of EESA in the manner specified by Section 111(b)(4)
  thereunder or in any rules or regulations under EESA; and

	
 

	
 

	
 

	
             (d)          the
  Company shall be permitted to repay preferred shares, and when such preferred
  shares are repaid, the Investor shall liquidate warrants associated with such
  preferred shares, all in accordance with the Act and any rules and
  regulations thereunder.

          From
and after the date hereof, each reference in the Securities Purchase Agreement
to “this Agreement” or “this Securities Purchase Agreement” or words of like
import shall mean and be a reference to the Agreement (as defined in the
Securities Purchase Agreement) as amended by this letter agreement.

          This
letter agreement will be governed by and construed in accordance with the
federal law of the United States if and to the extent such law is applicable,
and otherwise in accordance with the laws of the State of New York applicable
to contracts made and to be performed entirely within such State.

          This
letter agreement, the Securities Purchase Agreement, the Warrant, the
Certificate[s] of Designation and any other documents executed by the parties
at the Closing constitute the entire agreement of the parties with respect to
the subject matter hereof.

          Nothing
in this letter agreement shall be deemed an admission by Investor as to the
necessity of obtaining the consent of the Company in order to effect the
changes to the Transaction Documents contemplated by this letter agreement, nor
shall anything in this letter agreement be deemed to require Investor to obtain
the consent of any other TARP recipient (as defined in the Act) participating
in the Capital Purchase Program (the “CPP”)
in order to effect changes to their documentation under the CPP.

          This
letter agreement may be executed in any number of separate counterparts, each
such counterpart being deemed to be an original instrument, and all such
counterparts will together constitute the same agreement. Executed signature
pages to this letter agreement may be delivered by facsimile and such
facsimiles will be deemed sufficient as if actual signature pages had been
delivered. 

[Remainder of this page
intentionally left blank]

-2- 

          In
witness whereof, the parties have duly executed this letter agreement as of the
date first written above.

	
 

	
 

	
 

	
 

	
 

	
 

	
UNITED STATES DEPARTMENT OF

 THE TREASURY

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
COMPANY: 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
 

	
 

	
 

	
By: 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

SIGNATURE PAGE TO LETTER AGREEMENTExhibit 10.3 

UST Seq. No. 846 

UNITED STATES DEPARTMENT OF
THE TREASURY
1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

February ____, 2009

Ladies and
Gentlemen:

          Reference
is made to that certain Letter Agreement incorporating the Securities Purchase
Agreement – Standard Terms dated of as of the date of this letter agreement
(the “Securities Purchase Agreement”)
between United States Department of Treasury (“Investor”)
and the company named on the signature page hereto (the “Company”). Investor and the Company desire
to amend the Securities Purchase Agreement as follows: 

          1.          Section
2.1(a) of the Securities Purchase Agreement is amended to read in its entirety
as follows:

                       “(a)          [Intentionally
Omitted.]”

          2.          Section
2.1(c) of the Securities Purchase Agreement is amended to read in its entirety
as follows:

             “(c)          “Previously
Disclosed” means information
set forth or incorporated in the Company’s Annual Report on Form 10-K for the
most recently completed fiscal year of the Company filed with the Primary
Federal Securities Regulator prior to the execution and delivery of this
Agreement (the “Last Fiscal Year”)
or in its other reports and forms filed with or furnished to the Primary
Federal Securities Regulator as contemplated under Sections 13(a), 14(a) or
15(d) of the Exchange Act on or after the last day of the Last Fiscal Year and
prior to the execution and delivery of this Agreement. “Primary Federal Securities Regulator”
means the SEC or the primary federal bank regulator with which the Company
files its reports, registration statements, proxy statements and other filings
under the Exchange Act. If the Company is required to make filings with a
Primary Federal Securities Regulator other than the SEC, all references in this
Agreement to the SEC shall be deemed to refer to the Company’s Primary Federal
Securities Regulator.”

          3.          The
definition of “Registrable Securities” in Section 4.5(l)(iv) of the Securities
Purchase Agreement is amended by adding the following sentence at the end
thereof:

“Notwithstanding
anything in this Section 4.5(l)(iv) to the contrary, Registrable Securities
shall not include any securities of the Company that are referred to in Section
3(a) of the Securities Act; provided, however, that in the event
that the Company’s Primary Federal Securities Regulator is not the SEC,
the Company shall take such actions (if any) as are provided for under such
Primary Federal Securities Regulator’s rules in order to permit the resale of
Registrable Securities by the Holders in accordance with such rules.”

          From
and after the date hereof, each reference in the Securities Purchase Agreement
to “this Agreement” or words of like import shall mean and be a reference to
the Agreement (as defined in the Securities Purchase Agreement) as amended by
this letter agreement and each reference in the Securities Purchase Agreement
to “this Securities Purchase Agreement” or words of like import shall mean and
be a reference to the Securities Purchase Agreement as amended by this letter
agreement.

          This
letter agreement will be governed by and construed in accordance with the
federal law of the United States if and to the extent such law is applicable, and
otherwise in accordance with the laws of the State of New York applicable to
contracts made and to be performed entirely within such State.

          This
letter agreement may be executed in any number of separate counterparts, each
such counterpart being deemed to be an original instrument, and all such
counterparts will together constitute the same agreement. Executed signature
pages to this letter agreement may be delivered by facsimile and such
facsimiles will be deemed sufficient as if actual signature pages had been
delivered. 

[Remainder of this page intentionally left
blank]

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

	
 

	
 

	
 

	
 

	
UNITED STATES DEPARTMENT OF

 THE TREASURY

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	 

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
COMPANY: FNB
 BANCORP

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	 

	
 

	
 

	
Name:Thomas
 C. McGraw

	
 

	
 

	
Title:   Chief
 Executive Officer

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	 

	
 

	
 

	
Name: David
 A. Curtis

	
 

	
 

	
Title:   Senior Vice
 President and 

             Chief Financial OfficerExhibit 10.4

COMPENSATION MODIFICATION AGREEMENT

          THIS
AGREEMENT (“Agreement”), made this 27th day of February, 2009, by and between
FNB Bancorp, a California corporation, First National Bank of Northern
California, a national banking association and its wholly owned subsidiary
(together, the “Corporation”), and __________________________, a senior
executive officer of the Corporation (“Executive”).

          WHEREAS,
the Corporation has determined that it is in the best interests of the
Corporation and its shareholders to participate in the Troubled Asset Relief
Program Capital Purchase Program (“CPP”) of the United States Department of the
Treasury (“UST”), pursuant to which the Corporation will issue to UST preferred
stock (the “Preferred Stock”) in return for cash, along with a warrant to
acquire additional shares of preferred stock (the “Warrant”); and

          WHEREAS,
in order for the Corporation to participate in the CPP, the Corporation and its
senior executive officers who are subject to the Compensation Guidelines (as
defined below) must comply with Section 111(b) of the Emergency Economic
Stabilization Act of 2008 regarding executive compensation and corporate
governance and the related UST interim final regulations (31 CFR Part 30) published
in the Federal Register on October 20, 2008 (the “Compensation Guidelines”);
and

          WHEREAS,
the Corporation is required to deliver a certificate to UST at the closing of
the CPP transaction that it has complied with all the Compensation Guidelines;
and

          WHEREAS,
the board of directors of the Corporation has authorized and directed the
Compensation Committee to take any and all the actions required under the
Compensation Guidelines in order to enable the Corporation to deliver that certificate
and has authorized the execution of this Agreement on behalf of the
Corporation; and

          WHEREAS,
in order to comply with the Compensation Guidelines for so long as UST holds
securities of the Corporation acquired in the CPP, the Corporation, through the
Compensation Committee, is required to review the Corporation’s compensation
plans and policies with senior risk officers in order to identify and
unilaterally eliminate any bonus plans or other incentive compensation
arrangements for senior executive officers who are subject to the Compensation
Guidelines that encourage such officers to take unnecessary and excessive risks
that threaten the value of the financial institution; and

          WHEREAS,
in order to comply with the Compensation Guidelines for so long as UST holds
securities of the Corporation acquired in the CPP, the Corporation, through the
Compensation Committee, must adopt appropriate provisions for the recovery by
the Corporation of any bonus or incentive compensation paid to a senior
executive officer who is subject to the Compensation Guidelines based on
financial statements or performance metric criteria later determined to be
materially inaccurate; and

          WHEREAS,
in order to comply with the Compensation Guidelines as long for so UST holds
securities of the Corporation acquired in the CPP, the Corporation is
prohibited from making any golden parachute payment (as defined under the
Compensation Guidelines) to any senior executive officer who is subject to the
Compensation Guidelines; and

          WHEREAS,
the Corporation is required to deliver to UST in connection with the
consummation of the CPP transaction a waiver from each of its senior executive
officers who are subject to the Compensation Guidelines with respect to the
changes in the Corporation’s compensation plans, policies and practices as
required by the Compensation Guidelines; and

          WHEREAS,
the Compensation Committee has asked Executive to execute the waiver in the
form attached; and

          WHEREAS,
Executive believes the requirements imposed under the Compensation Guidelines
in order for the Corporation to obtain government funds by participating in the
CPP are reasonable and in the best interests of the Corporation and its
shareholders and furthers the long-term best interests of the Corporation and
its senior executive officers, including Executive.

          NOW,
THEREFORE, to allow the Corporation to participate in the CPP for the mutual
benefit of the Corporation, its shareholders and Executive, and for other good
and valuable consideration, the Corporation and Executive hereby agree as
follows:

          1.          GENERAL
MODIFICATION OF EMPLOYMENT, COMPENSATION AND BENEFIT AGREEMENTS, PLANS AND
POLICIES: Until such time as UST ceases to own any debt or equity securities of
the Corporation acquired pursuant to the CPP, the Corporation and Executive
agree that, notwithstanding any contract, plan, policy or agreement to the
contrary, all employment, compensation and benefit agreements, plans and
policies with respect to Executive shall be deemed modified to comply in all
respects with Section 111(b) of EESA as implemented by any guidance or
regulation thereunder that has been issued and is in effect as of the date the
Corporation issues the Preferred Stock and the Warrant to UST. The Corporation
and Executive further agree that the Corporation shall not adopt any new
benefit plan with respect to Executive that does not comply with Section 111(b)
of EESA as implemented by any guidance or regulation thereunder that has been
issued and is in effect as of the date the Corporation issues the Preferred
Stock and the Warrant to UST. Executive agrees that the Corporation, through its
Compensation Committee, has the sole discretion: (a) to determine whether and
to what extent any bonus or incentive compensation with respect to Executive
encourages Executive to take unnecessary and excessive risks that threaten the
value of the financial institution, and (b) to eliminate any such compensation
as long as UST holds securities of the Corporation acquired in the CPP.

          2.          RECOVERY
OF INCENTIVE COMPENSATION: Until such time as UST ceases to own any debt or
equity securities of the Corporation acquired pursuant to the CPP, in the event
Executive receives a bonus or any other incentive compensation from the
Corporation based on financial statements or performance metric criteria later
determined by the Corporation’s Compensation Committee, in its sole discretion,
to be materially inaccurate, Executive agrees to repay the Corporation, in cash
and within 30 days of a written demand therefor, the amount of the bonus or
incentive compensation received by Executive in excess of the amount that would
have been paid to Executive had the inaccurate statements or criteria been
accurate.

          3.          GOLDEN
PARACHUTE PAYMENTS: Until such time as UST ceases to own any debt or equity
securities of the Corporation acquired pursuant to the CPP, Executive agrees
that: (a) Executive shall not be entitled to receive any golden parachute
payment (as defined under the Compensation Guidelines) upon Executive’s
severance from employment (as defined under the Compensation Guidelines) and
(b) that all applicable contacts and agreements between Executive and the Corporation
are deemed to be amended in this regard.

          4.          WAIVER:
Executive hereby voluntarily waives any claim against the Corporation for any
changes to my compensation, bonus, incentive and other benefit plans,
arrangements, policies and agreements (including golden parachute agreements)
that are required to comply with the Compensation Guidelines and that are made
pursuant to this Agreement. This waiver includes all claims Executive may have
under the laws of the United States or any state related to the requirements
imposed by the Compensation Guidelines, including, without limitation, a claim
for any compensation or other payments Executive would otherwise
receive. Executive agrees to execute the required waiver in the form attached
hereto and deliver said warrant to the Corporation no later than the close of
business on February 26, 2009. 

          5.          COVERED
EMPLOYMENT, COMPENSATION AND BENEFIT AGREEMENTS, PLANS AND
POLICIES: Executive acknowledges that all employment, compensation and benefit
agreements, plans and policies applicable to Executive, including but not
limited to those listed in Annex A hereto, are subject to the modifications and
amendments provided for in this Agreement, to the extent applicable.

          6.          MODIFICATION
- WAIVERS - APPLICABLE LAW: No provisions of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing, signed by Executive and on behalf of the Corporation by such
officer as may be specifically designated by the Board of Directors of the
Corporation. No waiver by either party hereto at any time of any breach by the
other party hereto of, or in compliance with, any condition or provision of
this Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreements or representations, oral or otherwise, express or
implied, with respect to the subject matter hereof have been made by either
party which are not set forth expressly in this Agreement. The validity,
interpretation, construction and performance of this Agreement shall be
governed by federal law, to the extent applicable, and otherwise by the laws of
the State of California.

          7.          INVALIDITY - ENFORCEABILITY: The invalidity or unenforceability of any provisions of this
Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect. Any
provision in this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective only to the extent
of such prohibition or unenforceability without invalidating or affecting the
remaining provisions of this Agreement, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          8.          HEADINGS:
Descriptive headings contained in this Agreement are for convenience only and
shall not control or affect the meaning or construction of any provision in
this Agreement.

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

	
 

	
 

	
EXECUTIVE

	
 

	
 

	
 

	 

	
 

	
Signature

	
 

	
 

	
 

	 

	
 

	
Print Name

	
 

	
 

	
 

	
 

	
FNB BANCORP

 FIRST NATIONAL BANK OF NORTHERN CALIFORNIA

	
 

	
 

	
 

	 

	
 

	
By:

	
Thomas
 C. McGraw

 Chief Executive Officer

	
 

	
 

	
 

	
 

	 

	
 

	
By:

	
David
 A. Curtis

 Senior Vice President and

 Chief Financial Officer

	
 

 

ANNEX A

Employment Agreements:

Severance Agreements

Other Benefit Plans or Agreements

Other Employment Compensation and Benefit Plans and
Policies

ANNEX C

SENIOR EXECUTIVE
OFFICER WAIVER

          In
consideration for the benefits I will receive as a result of my employer’s
participation in the United States Department of the Treasury’s TARP Capital
Purchase Program, I hereby voluntarily waive any claim against the United
States or any state or territory thereof or my employer or any of its
directors, officers, employees and agents for any changes to my compensation or
benefits that are required in order to comply with Section 111(b) of the
Emergency Economic Stabilization Act of 2008, as amended (“EESA”), and rules, regulations, guidance
or other requirements issued thereunder (collectively, the “EESA Restrictions”).

          I
acknowledge that the EESA Restrictions may require modification of the
employment, compensation, bonus, incentive, severance, retention and other
benefit plans, arrangements, policies and agreements (including so-called
“golden parachute” agreements), whether or not in writing, that I have with my
employer or in which I participate as they relate to the period the United
States holds any equity or debt securities of my employer acquired through the
TARP Capital Purchase Program and I hereby consent to all such
modifications.  I further acknowledge
and agree that if my employer notifies me in writing that I have received
payments in violation of the EESA Restrictions, I shall repay the aggregate
amount of such payments to my employer no later than fifteen business days
following my receipt of such notice.

          This
waiver includes all claims I may have under the laws of the United States or
any other jurisdiction related to the requirements imposed by the EESA
Restrictions (including without limitation, any claim for any compensation or
other payments or benefits I would otherwise receive absent the EESA
Restrictions, any challenge to the process by which the EESA Restrictions were
adopted and any tort or constitutional claim about the effect of the foregoing
on my employment relationship) and I hereby agree that I will not at any time
initiate, or cause or permit to be initiated on my behalf, any such claim
against the United States, my employer or its directors, officers, employees or
agents in or before any local, state, federal or other agency, court or body. 

          IN
WITNESS WHEREOF, I execute this waiver on my own behalf, thereby communicating
my acceptance and acknowledgement to the provisions herein.

          DATE:  February 27, 2009

	
 

	
 

	
 

	 

	
 

	
(Signature)

	
 

	
 

	
 

	 

	
 

	
(Print Name)

	
 

	
 

	
 

	 

	
 

	
(Title)

UST Sequence No. 846

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