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NARA BANK, NATIONAL ASSOCIATION  

 
  SUBORDINATED NOTE PURCHASE AGREEMENT    
  

    THE SUBORDINATED NOTES PURCHASED PURSUANT HERETO SHALL EVIDENCE CAPITAL IN NARA BANK, NATIONAL ASSOCIATION, AS PROVIDED IN THE RULES,
REGULATIONS AND POLICIES OF THE COMPTROLLER OF THE CURRENCY AND SHALL NOT BE DEPOSITS NOR BE INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, SHALL BE UNSECURED AND SHALL BE INELIGIBLE AS
COLLATERAL FOR ANY LOAN MADE BY THE BANK.

    This
Subordinated Note Purchase Agreement ("Agreement" or "Purchase Agreement") is made and entered into as of      , 1999, by and between Nara Bank, National Association,
a national banking association located at 3701 Wilshire Boulevard, Suite 220, Los Angeles, California 90010 ("Bank"), and            ("Purchaser"), whose address
is            , with
reference to the following facts: 

 
 

ARTICLE I
  RECITALS    
  

    1.1 The
Bank desires to increase its capital by offering subordinated capital notes ("Notes") in an aggregate principal amount of up to Five Million Dollars
($5,000,000), which shall be offered and issued in the minimum principal amount of $250,000 or additional $50,000 integral amounts thereof; shall be in the form of Exhibit A hereto, have a
maturity date of September 20, 2004, and shall bear interest at a fixed 9.00% rate per annum. 

    1.2 Purchaser
desires to purchase a Note in the aggregate principal amount of            Dollars ($            ). 

    NOW,
THEREFORE, on the basis of the foregoing facts and in consideration of the mutual covenants, agreements, representations and warranties contained herein, the parties hereto agree
as follows: 

 
 

ARTICLE II
  PURCHASE AND SALE OF NOTES    
  

    2.1 The
Bank shall issue, and Purchaser shall purchase, a Note in the aggregate principal amount of            Dollars ($            )
upon payment by
Purchaser of the aggregate principal amount. The Purchaser shall designate the face amount of each Note in integral multiples of $50,000, but in no event shall a Note be issued in principal amount of
less than $250,000. Consummation of the purchase (the "Closing") shall take place after the execution of this Purchase Agreement and the execution of a similar Purchase Agreement by each of the other
persons desiring to purchase a Note, which date shall be selected by the Bank (the "Closing Date"). The Purchaser shall tender the aggregate principal amount of the Note to be purchased by Purchaser
by wire transfer or cashiers check for same day funds along with this properly completed and executed Purchase Agreement to Bank at its headquarters offices on or before 5:00 p.m. on the
Closing Date. 

 
 

ARTICLE III
  REPRESENTATIONS AND WARRANTIES    
  

    3.1 Bank Representations. The Bank hereby represents and warrants to, and agrees with Purchaser, as follows: 

    (a) Capital Structure. The authorized capital stock of the Bank consists of 10,000,000 shares of Common Stock, par value
$3 per share. As of the date hereof, there are 4,399,753 shares of Common Stock issued and outstanding. All outstanding shares of Common Stock have been duly 

1

 

authorized and validly issued and are fully paid and nonassessable (except as provided in Title 12 of the United States Code) and none of the outstanding shares of Common Stock has been issued in
violation of the preemptive rights of any Person. 

    (b) Organization, Standing and Authority of the Bank. The Bank is a national banking association duly incorporated and
validly existing under the laws of the United States of America with full corporate power and authority to own or lease all of its properties and assets and to carry on its business as now conducted
and is duly licensed or qualified to do business and is in good standing in each jurisdiction in which its ownership or leasing of property or the conduct of its business requires such licensing or
qualification and where the failure to be so licensed, qualified or in good standing would not have a material adverse effect on the Bank. The deposit accounts of the Bank are insured by the Federal
Deposit Insurance Corporation to the maximum extent permitted by the FDIC and the Bank has paid all premiums and assessments required by the FDIC. 

    (c) Authority. The Bank has full corporate power and authority to perform its respective obligations under this
Agreement, and the execution, delivery and performance by the Bank of this Agreement have been duly authorized by all necessary corporate action on the part of the Bank. 

    (d) Due Execution. This Agreement constitutes, and when duly authorized, executed and delivered by the Bank, will
constitute a valid and binding obligation of the Bank enforceable against the Bank in accordance with its terms, except (i) as the enforceability may be limited by bankruptcy, insolvency,
moratorium and similar laws affecting creditors' rights generally and (ii) as the rights of acceleration and the availability of equitable remedies may be limited by equitable principles of
general applicability. 

    (e) No Conflict. The execution, delivery and performance of this Agreement will not conflict with or constitute a breach
of, or a default under (i) the Articles of Association, or the Bylaws of the Bank, (ii) any material obligation, agreement, indenture, bond, debenture, note, instrument or any other
evidence of indebtedness to which the Bank is a party or its assets may be subject, or (iii) any law, ordinance, order, license, rule or other regulation or demand of any court or governmental
agency, arbitration panel or authority applicable to the Bank. 

    3.2 Purchaser Representations and Warranties. Purchaser hereby represents and warrants to, and agrees with, the Bank as
follows: 

    (a) Investment Intent. The Note to be acquired by Purchaser hereunder is being acquired for Purchaser's own account for
investment and with no intention of distributing or reselling such Notes or any part thereof or interest therein in any transaction which would be in violation of the securities laws of the United
States or any State; without prejudice, however, to a Purchaser's right, subject to the provisions of this Purchase Agreement, at all times to sell or otherwise dispose of all or any part of such
Notes under an effective registration statement under the federal Securities Act of 1933 and other applicable State securities laws or under an exemption from such registration and in compliance with
the rules and regulations of the Office of the Comptroller of the Currency. 

    (b) Agreements. Purchaser has no agreement, understanding, or arrangement with any other person, firm, or corporation,
or any intention of entering into any such agreement, understanding, or arrangement, to sell, transfer, or assign, in violation of any state or federal securities law, any part or
all of the Note, or which would permit any person, firm, or corporation, in violation of any state or federal securities law, to participate in or otherwise be entitled to any rights or interest as to
any part or all of the Note. 

    (c) Accredited Investor. At the time it was offered the Notes, it was, at the date hereof, it is, and at the Closing, it
will be, an "accredited investor" as defined in Rule 501(a) under the Securities Act, and has such knowledge, sophistication and experience in business and financial 

2

 

matters so as to be capable of evaluating the merits and risks of the prospective investment in the Notes and has so evaluated the merits and risks of such investment, is able to bear the economic
risk of such investment and, at the present time, is able to afford a complete loss of such investment. Purchaser has executed the Purchaser Questionnaire, a copy of which is attached as  Exhibit B
to this document, attesting to its status as an accredited investor. 

    (d) Legal Restraints. Purchaser is not engaged in, nor to the best of Purchaser's knowledge threatened with, any legal
action or other proceeding before any court or administrative agency (except such regulatory procedures as may be required in order to consummate the transactions contemplated hereby) that would
delay, inhibit or prevent the consummation of the transactions contemplated by this Purchase Agreement, and except as may be disclosed to the Bank in writing, there are no facts of which Purchaser is
aware which would reasonably afford a basis for a cause of action against Purchaser that would delay, inhibit or prevent the consummation of the transactions contemplated by this Purchase Agreement.
Purchaser is not currently charged with, nor, to Purchaser's knowledge, currently under investigation with respect to, any material violation of foreign, federal, state or local law or administrative
regulations that would delay, inhibit or prevent the consummation of the transactions contemplated by this Agreement. 

    (e) Solicitation. There has been direct communication and negotiation between Purchaser and the Bank, and Purchaser is
not aware of any advertisement by the Bank with respect to the Notes. Purchaser and Purchaser's representatives have had the opportunity to ask questions of, and receive answers from, the Bank or any
person acting on its behalf concerning the financial condition, business, affairs, and prospects of the Bank. 

    (f)  Offering Materials. Purchaser has received the Subordinated Note Offering Materials dated as of September 1,
1999 (the "Offering Materials") from the Bank and has had an opportunity to review and consider the Offering Materials and the information included therein, including, but not limited to, the risk
factors set forth therein. 

    (g) Transfer Restrictions. If a Purchaser should decide to dispose of any of the Notes, such Purchaser understands and
agrees that it may do so only pursuant to an effective registration statement under the
Securities Act or as set forth below, and the equivalent securities laws of the OCC: (i) to the Bank; (ii) to any person or entity reasonably believed by such Purchaser to be a
"qualified institutional buyer" (as defined in Rule 144A under the Securities Act) in compliance with Rule 144A under the Securities Act, (iii) pursuant to an exemption from
registration set forth in Rule 144 under the Securities Act; or (iv) to any person who is reasonably believed by such Purchaser to be an accredited investor and that, prior to such
transfer, furnishes to the Purchaser and Bank a signed letter confirming its status as an accredited investor and agreeing to the restrictions on transfer of any Notes set forth in this Agreement. In
connection with any transfer of any Notes other than (i) any transfer pursuant to an effective registration statement or (ii) any transfer by a qualified institutional buyer (as defined
in Rule 144A under the Securities Act) pursuant to clause (i) or (ii) above, the Bank may require that the transferor of any such Note provide the Bank an opinion of counsel
experienced in the area of United States securities laws selected by the transferor, which counsel shall be and the form and substance of which opinion shall be, reasonably satisfactory to the Bank,
to the effect that such transfer does not require registration of such Notes under the Securities Act or any State securities laws. In connection with any transfer pursuant to clause (ii)
above, the Bank may request reasonable certification as to the status of the transferor's transferee as a qualified institutional buyer. 

    (h) Stop Transfer Instructions. Each Purchaser agrees that the Bank shall be entitled to make a notation on its records
and give instructions to any transfer agent of the Notes in order to implement the restrictions on transfer set forth in Section 3.2(g) of this Agreement. 

3

 

    (i)  Due Execution. This Agreement has been duly executed and delivered by Purchaser or on its behalf and constitutes a
valid and binding obligation of such Purchaser, enforceable against the Purchaser in accordance with its terms, except that (i) enforceability may be limited by bankruptcy, insolvency,
moratorium and similar laws affecting creditors' rights generally and (ii) rights of acceleration and the availability of equitable remedies may be limited by equitable principles of general
applicability. 

    (j)  No Conflict. The execution, delivery and performance of this Agreement by Purchaser do not and will not, as
applicable, conflict with or constitute a breach or a default under (i) its articles of incorporation, charter or other organizational document or bylaws, as applicable, (ii) any
material obligation, agreement, indenture, bond, debenture, note, instrument or any other evidence of indebtedness to which it is a party or its assets are subject or (iii) any law, ordinance,
order, license, rule or other regulation or demand of any court or governmental agency, arbitration panel or authority applicable to it. 

    (k) Access to Information. Each Purchaser acknowledges that prior to the date hereof and, subject to the Bank's
compliance with its obligations pursuant to Section 5.2.hereof, on and subsequent to the date hereof, it has been afforded (i) the opportunity to ask such questions as it has deemed
necessary of, and to receive answers from, representatives of the Bank concerning the terms and conditions of the offering of the Notes and the merits and risks of investing in the securities of the
Bank and (ii) access
to information about the Bank and the Bank's financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment in the Notes. 

    (l)  Reliance. Each Purchaser understands and acknowledges that (i) the Securities are being offered and sold
without registration under the Securities Act in a private placement that is exempt from the registration provisions of the Securities Act and (ii) such exemption depends in part on, and that
the Bank and its counsel will rely upon, the accuracy and truthfulness of the foregoing representations and warranties of such Purchaser, and such Purchaser hereby consents to such reliance. 

    (m) Governmental Authorization. No consent, approval, order or other authorization of any governmental, administrative
or regulatory body or agency, whether foreign or domestic, is legally required by or on behalf of the Purchaser in connection with the execution, delivery and performance of this Agreement to which it
will become a party. 

    (n) Legends. Each Purchaser agrees to the imprinting, so long as appropriate, on certificates representing the Notes of
the legend set forth in Exhibit C hereto. The legends required above may be removed if and when the applicable Securities are disposed of pursuant to an effective registration statement under
the Securities Act or in the opinion of counsel to the Bank experienced in the area of United States securities laws such legend is no longer required under applicable requirements of the securities
laws. 

    (o) Legal Limitation on the Interest Rate for the Notes. The interest rate on the Note shall in no event be permitted to
exceed the maximum interest rate allowed by law and, if the Purchaser is found to have received a payment of interest from the Bank which was calculated utilizing an interest rate which exceeded the
maximum interest rate allowed by law, the Purchaser shall be required to refund the excess interest to the Bank. 

    (p) Broker or Finders. Purchaser is not a party to or obligated under any agreement with any broker or finder relating
to the transactions contemplated hereby, and neither the execution of this Agreement nor the consummation of the transactions contemplated hereby will result in any liability to any broker or finder. 

4

 
 
 

ARTICLE IV
  CONDITIONS PRECEDENT TO THE CLOSING    
  

    4.1 Conditions to Obligation of the Parties. The respective obligations of each of the parties hereto to fulfill their
obligations under Section 2.1 hereof at the Closing shall be subject to the satisfaction or waiver prior to the Closing of the following conditions: 

    (a) All
requirements prescribed by law which are necessary to the consummation of the transactions contemplated by this Agreement shall have been satisfied. 

    (b) No
party hereto shall be subject to any order, decree or injunction of a court or agency of competent jurisdiction which enjoins or prohibits the consummation of
any of the transactions contemplated by this Agreement. 

    (c) No
statute, rule or regulation shall have been enacted, entered, promulgated, interpreted, applied or enforced by any governmental authority which prohibits,
restricts or makes illegal consummation of any of the transactions contemplated by this Purchase Agreement. 

    (d) Each
of the parties hereto shall have received a counterpart to this Purchase Agreement, duly executed and delivered by the parties hereto, in form and substance
satisfactory to the parties, which shall have been duly executed and delivered by the Bank, and the Purchaser, as applicable. 

    4.2 Conditions to the Obligations of the Purchaser. The obligations of the Purchaser to fulfill its obligations under
Section 2.1 hereof shall be subject to the satisfaction or waiver prior to the Closing of the following conditions: 

    (a) Each
of the representations and warranties of the Bank contained in this Agreement shall be true and correct in all material respects as of the date of this
Agreement and as of the Closing Date as if made on the Closing Date (or on the date when made in the case of any representation or warranty which specifically relates to an earlier date); the Bank
shall have performed, in all material respects, each of its covenants and agreements contained in this Purchase Agreement to be performed prior to the Closing. 

    (b) The
Bank shall have delivered to each Purchaser a Note evidencing the subordinated debt being issued and sold by the Bank and purchased by the Purchaser registered
in the name of the Purchaser. 

    (c) No
party to this agreement (other than the relevant Purchaser) shall be in material breach of this Purchase Agreement unless such breach shall have been waived in
writing by each of the other parties to this Purchase Agreement. 

    (d) Each
Purchaser shall have received such other documents and instruments related to the transactions contemplated hereby as may have been reasonably required by it
and are customary for transactions of this type, and all corporate and other proceedings, and all documents, instruments and other legal matters in connection with the transactions contemplated by
this Purchase Agreement, shall be reasonably satisfactory in form and substance to it and its counsel, if any. 

    4.3 Conditions to the Obligations of the Bank. The obligations of the Bank to fulfill its obligations under this
Agreement, including without limitation the obligations set forth in Section 2.1 hereof, shall be subject to the satisfaction or waiver prior to the Closing of the following conditions: 

    (a) Each
of the representations and warranties of the Purchaser contained in this Agreement shall be true and correct in all material respects as of the date of this
Agreement and as of the Closing Date as if made on the Closing Date the Purchaser shall have performed, in all material reports, each of its covenants and agreements contained in this Purchase
Agreement to be performed prior to closing. The Bank shall have received a certificate signed by each Purchaser 

5

 

who is an individual and by a duly authorized officer of each other Purchaser to the forgoing effect. 

    (b) Each
Purchaser shall have executed and delivered to the Bank the Purchaser Questionnaire attached hereto as Exhibit B. 

    (c) Each
Purchaser shall have delivered to the Bank the Note Purchase Price specified in Exhibit A for the Note to be issued and sold by the Bank and purchased
by the Purchaser pursuant to this Agreement, as set forth on Exhibit A hereto, such amount to be payable (i) by wire transfer of immediately available funds to the Bank, or
(ii) federal (same day) funds payable to the order of the Bank. 

    (d) No
party to this Purchase Agreement (other than the Bank) shall be in material breach of this Agreement unless such breach shall have been waived in writing by each
of the other parties to this Purchase Agreement. 

    (e) The
Bank shall have received such other documents and instruments related to the transactions contemplated hereby as may have been reasonably required by the Bank
and are customary for transactions of this type, and all corporate and other proceedings, and all documents, instruments and other legal matters in connection with the transactions contemplated by
this Purchase Agreement, shall be reasonably satisfactory in form and substance to the Bank and its counsel. 

 
 

ARTICLE V
  COVENANTS    
  

    5.1 Investigations and Confidentiality. 

    (a) Prior
to the Closing, the Bank shall permit each Purchaser and its representatives reasonable access to its properties and personnel, and shall disclose and make
available to each Purchaser all books, papers and records relating to the assets, stock ownership, properties, operations, obligations and liabilities of the Bank, including, but not limited to, all
books of account (including the general ledger), tax records, minute books of meetings of boards of directors (and any committees thereof) and shareholders, organizational documents, bylaws, material
contracts and agreements, filings with any regulatory authority, accountants' work papers, litigation files, loan files, plans affecting employees, and any other business activities or prospects in
which a Purchaser may have a reasonable interest, provided that such access shall be reasonably related to the transactions contemplated hereby and not unduly interfere with normal operations, and
provided further that in the event that any of the foregoing are in the control of any third party, the Bank shall use its best efforts to cause such third party to provide access to such materials to
each Purchaser who shall request the same. In the event that the Bank is prohibited by law from providing any of the access referred to in the preceding sentence to a Purchaser, it shall use its best
efforts to obtain promptly waivers thereof so as to permit such access. The Bank shall make the directors, officers, employees and agents and authorized representatives (including counsel and
independent public accountants) of the Bank available to confer with a Purchaser and its representatives, provided that such access shall be reasonably related to the transactions contemplated hereby
and not unduly interfere with normal operations. 

    5.2 All
information furnished to a Purchaser by the Bank previously in connection with the transactions contemplated by this Purchase Agreement or pursuant hereto shall
be treated as the sole property of the Bank and each Purchaser covenants, that it shall use its best efforts to keep confidential all such information and shall not directly or indirectly use such
information for any competitive or other commercial purposes. The obligation to keep such information confidential shall continue for five years from the date hereof but shall not apply to
(i) any information which (x) a 

6

 

Purchaser can establish by convincing evidence was already in its possession prior to the disclosure thereof by the Bank; (y) was then generally known to the public; or (z) became known
to the public through no fault of a Purchaser; or (ii) disclosures pursuant to a legal requirement or in accordance with an order of a court of competent jurisdiction, provided that a Purchaser
shall use its best efforts to give the Bank at least ten business days prior notice thereof and shall limit such disclosure to the minimum amount required by such legal requirement or court order. 

 
 

ARTICLE VI
  MISCELLANEOUS    
  

    6.1 Survival of Provisions. The representations, warranties and covenants of the Bank and the Purchasers made herein and
each of the provisions of Articles V and VI shall remain operative and in full force and effect regardless of (i) any investigation made by or on behalf of any Purchaser or the Bank, as the
case may be, (ii) acceptance of any of the Notes and payment by the Purchasers therefor and retirement thereof, (iii) the transfer of any Notes or interest therein by any Purchaser,
provided that no transferee may claim the benefit of any such representation or warranty, or (iv) any termination of this Agreement. 

    6.2 Termination. This Agreement may be terminated (as between the party electing so to terminate it and the counterparty
to which termination is directed) by giving written notice of termination to the applicable counterparty at any time prior to the Closing: 

    (a) By
the Bank if any of the conditions specified in Section 4.1 and 4.3 of this Agreement has not been met or waived by it pursuant to the terms of this
Purchase Agreement by 4:00 p.m., Pacific Time on September 22, 1999; or 

    (b) By
any Purchaser if any of the conditions specified in Section 4.1 and 4.2 of this Agreement has not been met or waived by such Purchaser pursuant to the
terms of this Agreement by 4:00 p.m., Pacific Time, on September 22, 1999; or 

    (c) By
mutual agreement of the Bank and Purchaser at any time. 

    6.3 Waiver: Amendments. 

    (a) No
failure or delay on the part of the Bank or the Purchaser in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such
right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The remedies provided for herein are cumulative and are not exclusive of any
remedies that may be available to the Bank or the Purchaser at law or in equity. No waiver of or consent to any departure by the Bank or the Purchaser from any provision of this Agreement shall be
effective unless signed in writing by the party entitled to the benefit thereof. Except as otherwise provided herein, no amendment, modification or termination of any provisions of this Purchase
Agreement shall be effective unless signed in writing by or on behalf of the Bank and the Purchaser. Any amendment, supplement or modification of or to any of this Purchase Agreement, any waiver of
any provision of this Purchase Agreement, and any consent to any departure from the terms of any provision of this Purchase Agreement, shall be effective only in the specific instance and for the
specific purpose for which made or given. Except where notice is specifically required by this Purchase Agreement, no notice to or demand on any party hereto in any case shall entitle another party
hereto to any other or further notice or demand in similar or other circumstances. 

7

 
    6.4 Communications. All notices, demands and other communications provided for or permitted hereunder shall be made in
writing by hand-delivery, registered first-class mail, telex, telecopier, or air courier guaranteeing overnight delivery: 

    (i)  if
to any Purchaser, initially at the address set forth below its name on Exhibit A hereto, and thereafter at such other address, notice of which is given
in accordance with this Section 6.4; and 

    (ii) if
to the Bank, initially at 3701 Wilshire Boulevard, Suite 220, Los Angeles, California 90010, Attention: President; and thereafter at such other address notice
of which is given in accordance with this Section 6.4. 

    All
such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five business days after being sent by certified
mail, return receipt requested, if mailed; when answered back, if telexed; when receipt is acknowledged, if telecopied; and on the next Business Day if timely delivered to an air courier guaranteeing
overnight delivery. 

    6.5 Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties
hereto on separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one
and the same Agreement. 

    6.6 Binding Effect: Assignment. Prior to the Closing, the rights and obligations of any Purchaser under this Purchase
Agreement may not be assigned to any other Person except with the prior written consent of the Bank, and after the Closing the rights and obligations of any Purchaser may be assigned by such Purchaser
to any Person purchasing Notes from the Purchaser contemporaneously with such assignment (provided the rights so assigned shall apply to the Securities so purchased), subject to the provisions of
Section 3.2(g). Except as expressly provided in this Purchase Agreement, this Purchase Agreement shall not be construed so as to confer any right or benefit upon any person other than the
parties to this Purchase Agreement, and their respective successors and permitted assigns. This Purchase Agreement shall be binding upon the Bank and each Purchaser, and their respective successor and
permitted assigns. 

    6.7 Governing Law. This Agreement shall be deemed to be a contract made under the laws of the State of California, and
for all purposes shall be construed in accordance with the laws of said state, without regard to principles of conflict of laws. 

    6.8 Severability of Provision. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability only without invalidating the remaining provisions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction. 

    6.9 Headings and Gender. The Article and Section headings used or contained in this Agreement are for convenience of
reference only and shall not affect the construction of this Agreement. Use of a particular gender herein shall be considered to represent the masculine, feminine or neuter gender whenever
appropriate. 

    6.10 Fees and Expenses. Bank and Purchaser shall each be responsible for their own fees, costs and expenses incurred in
connection with the transactions contemplated by this Agreement, including, but not limited to, regulatory fees and applicable attorneys' and accountants' fees. 

    6.11 Attorneys Fees. In the event a suit is brought by either party to enforce any provision of this Purchase Agreement,
the prevailing party shall be entitled to attorney's fees and costs incurred in connection with the prosecution or defense of such suit. 

8

 

    6.12 Entire Agreement. This Purchase Agreement and the Notes and the Offering Materials to which it refers together
constitute the entire agreement between Bank and Purchaser with respect to the issuance of Notes and no statement, representation, warranty or covenant has been made by either party with respect
thereto except as expressly set forth herein. 

    THE
UNDERSIGNED PURCHASER ACKNOWLEDGES THAT THE PURCHASER OR THE PURCHASER'S REPRESENTATIVES HAVE READ THIS CAPITAL NOTE PURCHASE AGREEMENT AND REVIEWED OR HAD AN OPPORTUNITY TO
REVIEW THE DOCUMENTS REFERRED TO HEREIN AND THE PURCHASER IS MAKING AN INVESTMENT IN THE CAPITAL NOTES BASED SOLELY UPON THE INFORMATION CONTAINED OR REFERRED TO HEREIN AND THEREIN AND THE PURCHASER'S
OWN KNOWLEDGE OF THE FINANCIAL CONDITION, BUSINESS, AND AFFAIRS OF THE BANK. 

    IN
WITNESS WHEREOF, the parties to this Purchase Agreement have duly executed it on the day and year first above written. 

	

 	
 	

NARA BANK, NATIONAL ASSOCIATION
	

 	
 	

By	
 	

 Benjamin B. Hong
 President & Chief Executive Officer
	

 	
 	

PURCHASER
	

 	
 	

 	
 	

 Name:

9

 
 

EXHIBIT A
  
    [FORM OF SUBORDINATED NOTE]    
  

 
 

EXHIBIT B
  
    [FORM OF PURCHASER QUESTIONNAIRE]    
  

 
 

EXHIBIT C
  
    NOTE LEGEND    
  

    THE NOTE REPRESENTED BY THIS DOCUMENT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR ANY PROVISIONS OF THE NATIONAL BANK
ACT, AND IS A RESTRICTED SECURITY. THIS SECURITY MUST BE HELD INDEFINITELY UNLESS IT IS SUBSEQUENTLY REGISTERED UNDER THE ACT OR THE NATIONAL BANK ACT, AS APPLICABLE, OR AN OPINION OF COUNSEL FOR THE
PROPOSED TRANSFEROR IS DELIVERED TO THE COMPANY, WHICH OPINION SHALL, IN FORM AND SUBSTANCE, BE REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL AND SHALL STATE THAT AN EXEMPTION FROM SUCH
REGISTERATION IS AVAILABLE.THE SECURITY EVIDENCED BY THIS NOTE HAS NOT BEEN QUALIFIED UNDER THE CALIFORNIA CORPORATE SECURITIES LAW OF 1968, AS AMENDED (THE "CSL"), AND IS ALSO
RESTRICTED UNDER THE PROVISIONS OF THAT LAW. THIS SECURITY MUST BE HELD INDEFINITELY UNLESS IT IS SUBSEQUENTLY QUALIFIED UNDER THE CSL OR IS OTHERWISE EXEMPT FROM QUALIFICATION UNDER THAT LAW." 

  

 
 

NARA BANK, NATIONAL ASSOCIATION
  SUBORDINATED NOTE    
  

	

Date: September   , 1999	
 	

Principal Amount $               

    THIS OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION. THIS OBLIGATION IS NOT SECURED, IS
SUBORDINATED TO THE CLAIMS OF DEPOSITORS AND OTHER CREDITORS AND IS INELIGIBLE AS COLLATERAL FOR ANY LOAN BY BANK.

    IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS SECURITY, OR ANY INTEREST THEREIN, OR TO RECEIVE ANY CONSIDERATION THEREFOR, UNLESS THE TRANSFEREE IS
AN ACCREDITED INVESTOR AS DEFINED IN REGULATION D OF THE FEDERAL SECURITIES ACT OF 1933.

    FOR
VALUE RECEIVED, Nara Bank, National Association, a national banking association ("Bank"), promises to pay to the order of            ("Purchaser"), at Purchaser's address
at            ,            , in lawful money of the United States, the principal amount
of            Dollars ($            ), together with interest from the date hereof
on the part of the principal amount from time to time remaining unpaid until such principal is paid in full at the fixed rate of nine percent (9.00%) per annum. 

    This
Capital Note ("Note") is one of an authorized issuance of Notes by Bank offered by a private placement to existing or new investors pursuant to certain Offering Materials
provided to Purchaser and subject to each Purchaser's and Bank's execution of a form of Capital Note Purchase Agreement (the "Purchase Agreement") effective as of the date hereof and subject to the
following terms and conditions: 

    Maturity.  The entire unpaid principal of this Note and any accrued interest then unpaid shall be due and payable on or
before September 30, 2004. 

    Interest Payments.  Interest on this Note shall be due and payable quarterly as it accrues on the first day of each
January, April, July and October (each date, an "Interest Payment Date") until this Note is paid in full, commencing on the first such day next succeeding the date of this Note. All payments on this
Note shall be applied first to accrued interest and the balance, if any, to principal. The interest payable on each Note will be paid to the registered holder of the Note whose name is recorded in the
Register of Notes to be maintained by Bank by check mailed to the registered address of such person as it shall appear on the Register of Notes upon the close of business fifteen (15) days
following an Interest Payment Date. 

    Redemption.  The Notes (including this Note) shall have no scheduled payments of principal prior to maturity. However,
the Notes may be redeemed, in whole or in part, prior to their maturity and on or after three (3) years from the date of this Note, upon the mailing by Bank of a notice (the "Redemption
Notice") at the election of Bank and without penalty (subject to the required prior approval of prepayment or payment pursuant to an acceleration clause by the Office of the Comptroller of the
Currency ("OCC") should Bank no longer meet the certain OCC capital and supervisory requirements), not less than sixty (60) days nor more than ninety (90) days prior to the Redemption
Date to be specified in the notice, to the holders of the Notes at the holder's address as it shall appear on the Register of Notes, for a redemption price equal to one hundred percent (100%) of the
unpaid principal amount plus all accrued interest to the Redemption Date. In the case of partial redemption, the particular Notes to be redeemed in whole or in part shall be selected pro rata or by
lot at the election of Bank. The Notes may be redeemed in part only in the amount of Fifty Thousand Dollars ($50,000) each or integral multiples thereof. Upon any partial redemption of any Note, the
Note shall be surrendered by the holder in exchange for a new Note for the unredeemed portion of the principal amount. 

1

 

    Subordination.  The principal and interest indebtedness of Bank evidenced by the Notes, including this Note, shall be
subordinate and junior in right of payment to Bank's obligations to its depositors, its obligations under bankers' acceptances and letters of credit, and its obligations to its other creditors,
including its obligations to any Federal Reserve Bank, the Federal Deposit Insurance Corporation ("FDIC"), and any rights acquired by the FDIC as a result of loans made by the FDIC to Bank or the
purchase or guarantee of any of its assets by the FDIC pursuant to the provisions of 12 USC 1823(c), (d) or (e), whether now outstanding or hereafter incurred. In the event of any insolvency,
receivership, conservatorship, reorganization, readjustment of debt, marshaling of assets and liabilities or similar proceedings or any liquidation or winding up of or relating to Bank, whether
voluntary or involuntary, all such obligations shall be entitled to be paid in full before any payment shall be made on account of the principal of, or premium, if any, or interest, on the Note. In
the event of any such proceedings, after payment in full of all sums owing on such prior obligations, the holder of the Note, together with other Notes and any other obligations of Bank ranking on a
parity with the Notes, shall be entitled to be paid from the remaining assets of Bank the unpaid principal thereof and any unpaid premium, if
any, and interest before any payment or other distribution, whether in cash, property, or otherwise shall be made on account of any capital stock or any obligations of Bank ranking junior to the
Notes. 

    Unconditional Promise To Pay.  Subject to any required approval of the OCC, no provision of this Note shall impair the
obligation of Bank, which is absolute and unconditional, to pay the principal and any interest on this Note at the time and place and at the interest rate herein set forth. 

    Default.  This Note shall become immediately due and payable, at the option of the holder (subject to the required prior
approval of prepayment or payment pursuant to an acceleration clause by the Office of the Comptroller of the Currency ("OCC") should Bank no longer meet the certain OCC capital and supervisory
requirements), without presentment or demand or any notice to Bank or any other person obligated, upon an event of default, defined as follows: (i) a default in the payment of any of the
principal or interest, for a period of 15 days after such payment is due; (ii) a default (a) in the payment of any of the principal of or interest on any other indebtedness of
Bank for borrowed money owing from Bank to Purchaser or (b) in the payment of any other material indebtedness of Bank for borrowed money to any party and, in either event, the continuance of
such default beyond any period of grace provided for in the instrument or instruments evidencing such indebtedness; and (iii) a default (a) in the event the OCC shall take possession of
the property and business of Bank or the appointment of a receiver or conservator of Bank or any other action or proceeding involving Bank shall be commenced against Bank under any reorganization,
bankruptcy, arrangement, insolvency, readjustment or debt, dissolution or liquidation law or statute of the United States, and, if such possession is taken, receiver appointed, or such other actions
or proceedings are instituted, Bank shall by any action indicate its approval of or consent to or acquiescence in the same or the same shall remain in effect and undismissed for thirty business
(30) days; or (b) upon the occurrence of any such action or proceeding which involves Bank, if such action or proceeding shall have been commenced by Bank or if Bank makes an assignment
for the benefit of creditors. 

    If
an event of default occurs, Bank shall immediately notify all holders of the Notes at their addresses listed in the Register of Notes that an event of default has occurred,
specifying the nature of the default. 

    Waivers.  Bank waives demand, presentment for payment, notice of nonpayment, notice of protest, and all other notices.
If Purchaser is a depository institution, by acceptance of this Note, Purchaser is hereby deemed to waive any right of offset which it may have with respect to this Note. 

    Transfer in Liquidation.  Notwithstanding any other provisions of this Note, including specifically those relating to
subordination, events of default and covenants of Bank, it is expressly understood and agreed that the OCC or any receiver or conservator of Bank appointed by the OCC shall have the right in the
performance of their legal duties, and as part of liquidation designed to protect or further the 

2

 

continued existence of Bank or the rights of any parties or agencies with an interest in, or claim against, Bank or its assets, to transfer or direct the transfer of the obligations of this Note to
any bank or bank holding company selected by such official which shall expressly assume the obligation of the due and punctual payment of the unpaid principal, and interest, and premium, if any, on
this Note and the due and punctual performance of all covenants and conditions; and the completion of such transfer and assumption shall serve to supersede and void any default, acceleration or
subordination which may have occurred, or which may occur due or related to such transaction, plan, transfer or assumption, pursuant to the provisions of this Note, and shall serve to return the
holder to the same position, other than for substitution of the obligor, it would have occupied had no default, acceleration or subordination occurred; except that any principal and interest
previously due, other than by reason of acceleration, and not paid shall, in the absence of a contrary agreement by the holder of this Note, be deemed to be immediately due and payable as of the date
of such transfer and assumption, together with the interest from its original due date at the rate provided for herein. 

    Non-Stockholder Status.  The holder of this Note shall not be entitled to any of the rights and privileges
of a stockholder of Bank and this Note shall not constitute a subscription for common stock of Bank for any purpose. This Note is not convertible into any common stock of Bank. 

    Restrictions on Transfer.  No Purchaser of this Note and no person who at any time owns, holds, or has any interest in
this Note, may sell or transfer this Note or any interest in this Note or receive any consideration for this Note or for any interest in this Note unless the transferee is an "accredited investor" as
defined in Rule 501 of Regulation D promulgated by the Securities and Exchange Commission pursuant to the Federal Securities Act of 1933, as amended ("Rule 501") and such transfer
is in compliance with the Capital Note Purchase Agreement between Purchaser and Bank and dated as of the date hereof. 

    Neither
Bank nor its registrar nor its transfer agent will record on its books the sale or transfer of this Note or any interest in this Note or issue any certificate or other
document to evidence any sale or transfer unless the transferees have the qualifications described above. Prior to any such sale or transfer the holder of this Note or an interest in this Note, the
holder must provide to Bank in writing all information regarding the proposed sale or transfer and the qualifications of the proposed transferee which Bank and Bank's legal counsel, in their sole
discretion, deem necessary to establish that the proposed sale or transfer may be made. 

    Expenses of Collection; Attorney's Fees.  If an event of default occurs in the payment of principal at maturity or the
payment of interest on any Note at any time, Bank will pay to the holder of this Note such further amount as shall cover all reasonable costs and expenses of collection of this Note, including but not
limited to reasonable attorneys' fees. 

    Registered Holder Deemed Owner.  Bank may deem and treat the registered holder of this Note as the absolute owner
thereof (whether or not such Note shall be overdue and notwithstanding any other notice of ownership or writing thereon made by anyone other than Bank) for the purpose of receiving
payment thereof or on account of interest thereon and for all other purposes, and neither Bank nor any registrar shall be affected by any notice to the contrary. 

    Surrender of Note.  This Note shall be surrendered to Bank for cancellation or exchange when the principal and interest
thereon have been paid in full or upon a partial or full redemption by Bank in accordance with the provisions hereof. 

    Governing Law.  This Note shall be governed by and construed in accordance with the laws of the State of California. 

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    Severability.  Any provisions of this Note which may be prohibited by law or otherwise held invalid shall be ineffective
only to the extent of such prohibition or invalidity and shall not invalidate or otherwise render ineffective any remaining provisions of this Note. 

    Headings.  All section headings used in this Note are for convenience of reference only and shall not control or affect
the meaning or construction of this Note. 

    Entire Agreement.  This Note and the Capital Note Purchase Agreement to which it refers together constitute the entire
agreement between Bank and Purchaser with respect to the sale and issuance of Notes and no statement, representation, warranty or covenant has been made by either party with respect thereto except as
expressly set forth herein. 

4

 

    THE NOTE REPRESENTED BY THIS DOCUMENT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR ANY PROVISIONS OF THE NATIONAL BANK ACT, AND IS A RESTRICTED
SECURITY. THIS SECURITY MUST BE HELD INDEFINITELY UNLESS IT IS SUBSEQUENTLY REGISTERED UNDER THE ACT OR THE NATIONAL BANK ACT, AS APPLICABLE, OR AN OPINION OF COUNSEL FOR THE PROPOSED TRANSFEROR IS
DELIVERED TO THE COMPANY, WHICH OPINION SHALL, IN FORM AND SUBSTANCE, BE REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL AND SHALL STATE THAT AN EXEMPTION FROM SUCH REGISTERATION IS AVAILABLE. 

    THE
SECURITY EVIDENCED BY THIS NOTE HAS NOT BEEN QUALIFIED UNDER THE CALIFORNIA CORPORATE SECURITIES LAW OF 1968, AS AMENDED (THE "CSL"), AND IS ALSO RESTRICTED UNDER
THE PROVISIONS OF THAT LAW. THIS SECURITY MUST BE HELD INDEFINITELY UNLESS IT IS SUBSEQUENTLY QUALIFIED UNDER THE CSL OR IS OTHERWISE EXEMPT FROM QUALIFICATION UNDER THAT LAW." 

    IN
WITNESS WHEREOF, NARA BANK, NATIONAL ASSOCIATION, has caused this Note to be signed in its name by the signature of its            on this      day of
September 1999. 

	

 	
 	

 	
 	

NARA BANK, NATIONAL ASSOCIATION
	

 	
 	

 	
 	

By	
 	

	

 	
 	

 	
 	

Name	
 	

	

 	
 	

 	
 	

Title	
 	

	

ACKNOWLEDGED AND AGREED:	
 	

 	
 	

 
	

Date: September  , 1999	
 	

 	
 	

 
	

PURCHASER	
 	

 	
 	

 
	

	
 	

 	
 	

 
	

By	
 	

	
 	

 	
 	

 
	

Name	
 	

	
 	

 	
 	

 
	

Title	
 	

	
 	

 	
 	

 

5

 
 
 

ASSIGNMENT    
  

(To
be executed only upon assignment of Capital Note) 

    IT
IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF THIS SECURITY, OR ANY INTEREST THEREIN, OR TO RECEIVE ANY CONSIDERATION THEREFOR, UNLESS THE TRANSFEREE IS AN ACCREDITED INVESTOR,
AS DEFINED IN REGULATION D OF THE FEDERAL SECURITIES ACT OF 1933, AND UNLESS SUCH TRANSFER IS MADE IN COMPLIANCE WITH THE CAPITAL NOTE PURCHASE AGREEMENT, DATED AS OF THE DATE HEREOF, BETWEEN BANK AND
PURCHASER. 

    For
value received,          hereby sells, assigns and transfers unto          the within Note, together with all right, title and interest therein, and
does
hereby irrevocably constitute and appoint          , attorney, to transfer said Note on the books of the within-named Bank, with full power of substitution in the premises. 

	

Dated            ,    .	
 	

 
	

 	
 	

 (NOTE: The above signature should correspond exactly with the name on the face of the Capital Note to be assigned.)

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QuickLinks

SUBORDINATED NOTE PURCHASE AGREEMENT

ARTICLE I RECITALS

ARTICLE II PURCHASE AND SALE OF NOTES

ARTICLE III REPRESENTATIONS AND WARRANTIES

ARTICLE IV CONDITIONS PRECEDENT TO THE CLOSING

ARTICLE V COVENANTS

ARTICLE VI MISCELLANEOUS

EXHIBIT A [FORM OF SUBORDINATED NOTE]

EXHIBIT B [FORM OF PURCHASER QUESTIONNAIRE]

EXHIBIT C NOTE LEGEND

NARA BANK, NATIONAL ASSOCIATION SUBORDINATED NOTE

ASSIGNMENTPrepared by MERRILL CORPORATION

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EMPLOYMENT AGREEMENT    
  

BENJAMIN B. HONG  

    THIS
EMPLOYMENT AGREEMENT is made effective July 1, 1994, by and between Nara Bank, National Association (hereinafter sometimes referred to as "Bank"), and Benjamin B. Hong,
(hereinafter sometimes referred to as "Hong"), as follows: 

    1.  EMPLOYMENT:  Bank
hereby employs Hong as President and Chief Executive Officer, and Hong accepts said employment, upon the terms and conditions
hereinafter set forth. 

    2.  DUTIES:  Hong
shall perform the duties of President and Chief Executive Officer of Bank, subject to the powers by law vested in the Board of
Directors of Bank and in Bank's shareholders. During the term of this Employment Agreement, Hong shall perform his duties faithfully, diligently and to the best of his ability, consistent with the
highest and best standards of the banking industry and in compliance with all applicable laws and the Bank's Articles of Incorporation and Bylaws. Hong shall devote his full time and efforts to this
position. 

    3.  TERM:  The
term of this Agreement shall be five (5) years from its effective date but Hong has an option to extend the term of this Agreement for an
additional period of four (4) years if the Bank achieves a regulatory examination rating of "satisfactory or better and a composite CAMEL rating of "1" or "2" at the end of 1998, and return on average
assets (ROA) for 1998 surpasses the average ROA of California banks. Said option shall be exercised by Hong, if it is to be exercised at all, within one hundred eighty (180) days prior to the
expiration of the above-referenced five (5) year term from the effective date of this Agreement, and shall be exercised by a writing addressed to the Board of Directors of Bank. Said option shall not
be exercisable if at the time of exercise Hong's employment has been duly and rightfully terminated pursuant to the provisions of paragraph 10 and 11 hereof. 

    4.  SALARY
AND BONUS:  During the term of this Agreement, Hong shall be compensated and receive an annual salary of one hundred twenty thousand dollars
($120,000 per year) payable in twelve (12) equal monthly installments. The base salary shall be reviewed at least annually and may be increased from time to time as the Board of directors of the Bank
in its sole discretion shall determine. This shall be the "basic compensation" for performing his duties as President and Chief Executive Officer of the
Bank. In addition to the basic compensation, the Bank agrees to pay to Hong an additional bonus in the amount of seven percent (7%) of the Bank's profit before tax. The computation of the Bank's pre-
tax profit shall be done by the Bank's outside auditors and certified public accountants and shall receive the approval of the Bank's Board of Directors. As so approved, such computation shall be a
conclusive determination binding both upon the Bank and Hong. Such bonus shall be paid only on a pro-rata basis for that portion of the fiscal year that Hong serves as President and Chief Executive
Officer. If the 7% bonus is less than regular employee bonus percentage in any given year, Hong will receive bonus equivalent to the regular employee bonus percentage. 

    5.  STOCK
OPTIONS:  Pursuant to and subject to the terms of the Bank's Stock Option Plan, the Bank will grant to Hong a stock option consisting of a
total of hundred thousand (100,000) shares of Bank's common stock. The option price will be three dollars per share (price as of July 1, 1994). This option will be exercisable within five years
from the date of this Agreement. But the exercise period will be extended for four more years, if Hong's term is extended. Any such option will be subject to all of the terms and provisions of the
Bank's Stock Option Plan and the form of Stock Option Agreement to be executed by Bank and Hong. Should Hong be terminated for cause, this option shall expire immediately. Reference should be made to
the Bank's Stock Option Plan and form of Stock Option Agreement for full and complete terms and conditions governing any stock option to be granted. 

    6.  AUTOMOBILE
ALLOWANCE AND INSURANCE:  Bank will provide Hong with a suitable automobile for his use in the performance of his duties and shall pay all
costs and expenses of maintaining and operating said automobile, including insurance. 

    7.  EXPENSES:  Hong
shall be entitled to reimbursement by Bank for any business expenses reasonably and necessarily incurred in the performance of his
duties on behalf of Bank during the term of this Agreement, which the Board of Directors of the Bank deems are satisfactorily documented. 

Bank shall also reimburse Hong for the annual membership fees in the Wilshire Country Club and shall, in addition, reimburse Hong for any and all business-related charges incurred at the Wilshire
Country Club. 

    8.  VACATION:  Hong
shall be entitled to four (4) weeks paid vacation during each year of the term of this Agreement. Hong shall take at lease two
consecutive weeks vacation during each year of his employment by Bank. 

    9.  INSURANCE
BENEFITS:  Bank shall provide for Hong and Hong's spouse and dependent children, where appropriate, at the Bank's expense, participation in
accident and health, term life insurance benefits to the maximum benefits available under the Bank's Group Insurance program. 

    10. TERMINATION:  The
Bank may terminate the employment of Hong at any time during this Agreement by a simple majority vote of the Board of Directors,
exclusive of the vote of Hong in the event he is a Director, and said termination shall be only for cause the effective date of termination in such event shall be determined by the Board. In the event
Hong is terminated for cause, Hong shall be entitled to no further compensation of any sort, excepting only for basic compensation and expenses earned prior to such termination. Termination for cause
shall include termination for malfeasance or gross misfeasance in the performance of duties or conviction of illegal activity in connection therewith, or any conduct detrimental to the interests of
the Bank or a subsidiary corporation and in any event, the determination of the Board of Directors with respect thereto shall be final and conclusive. 

    11. ACTION
BY SUPERVISORY AUTHORITY:  If Bank is ordered to remove Hong or Bank is closed or taken over by the Comptroller of the Currency, the Federal
Reserve, The Federal Deposit Insurance Corporation, or other supervisory authority, such bank supervisory authority may immediately terminate this Agreement without further liability, compensation or
obligation to Hong, except that Hong shall be entitled to his rights, if any, under Paragraph 5 hereof and the Stock Option Plan referred to therein. 

    12. ARBITRATION:  Any
controversy or claim arising out of, or relating to this Agreement or the breach thereof, shall be settled by arbitration in the
City of Los Angeles, State of California, in accordance with the rules of the American Arbitration Association, and a judgement upon the award rendered may be entered in any court having jurisdiction
thereof. 

    13. NOTICES:  Any
notice required or permitted to be given hereunder shall be in writing and delivered by ordinary mail or served personally, addressed
to Bank or Hong, as the case may be, at the address set forth after their signature below or as may be changed from time to time by notice given to the other party. 

    14. PARTIAL
INVALIDITY:  If any provision of this Agreement is held by a court of competent jurisdiction, or by arbitration, to be invalid, void or
unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way. 

    15. MISCELLANEOUS:  It
is hereby agreed that Hong's rights and obligations under this Agreement are personal and not assignable. This Agreement contains
the entire agreement and understanding of the parties to it and shall be binding on and insure to the benefit of the heirs, personal representatives, successors, beneficiaries, and assigns of the
parties, subject, however, to the restrictions on assignment contained herein. This Agreement is drawn to be effective in the State of California, and shall be construed in accordance with California
law. No amendment or variation of the terms of this Agreement shall be valid unless made in writing and executed by Hong and a duly authorized representative of the Bank. 

    16. ENFORCEMENT:  Both
Hong and Bank acknowledge they have had the opportunity to consult with legal terms and provisions of this Agreement. If
arbitration or legal action is employed to enforce any of the provisions hereof, the parties hereto agree that the recover all reasonable costs and attorneys' fees. 

    17.   This
Agreement constitutes the only agreement between the parties with respect to Hong's employment by Bank and it supersedes any and all written
or oral understandings of any sort. This Agreement may be amended or modified only in writing in an instrument signed by both parties. 

    IN WITNESS WHEREOF, the parties have executed this Employment Agreement on July 1, 1994. 

	

 	
 	

By:	
 	

/s/ BRIAN B. WOO   
 Brian B. Woo
 Chairman of the Board

Nara Bank, National Association
	

 	
 	

Accepted by:
	

 	
 	

 	
 	

/s/ BENJAMIN HONG   
 Benjamin Hong

QuickLinks

EMPLOYMENT AGREEMENT

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