Document:

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as of the 1st day
of June, 2007, by and between Pacific Coast National Bank (the "Bank"), Pacific Coast National
Bancorp (the "Company") and Stanley M. Cruse (the "Executive"), a resident of San Diego
County, California (the signatories to this Agreement will be referred to jointly as the "Parties").

WITNESSETH:

             WHEREAS, the Bank is a wholly-owned subsidiary of the Company;

             WHEREAS, Bank has agreed to employ Executive, and Executive has agreed to be
employed by Bank, subject to and on the terms and conditions set forth herein; and

             WHEREAS, Bank, Company and Executive have read and understood the terms and
provisions set forth in this Agreement and have been afforded a reasonable opportunity to review this
Agreement with their respective legal counsel.

             NOW, THEREFORE, in consideration of the mutual promises and covenants set forth in this
Agreement, and for good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Executive, Company and Bank agree as follows:

             1.             Term of Employment. This Agreement shall become effective on the later of June
1, 2007 or the date on which the Bank receives a satisfactory "no-objection" letter from the Office
of the Comptroller of the Currency ("Effective Date") and shall continue in effect through May 31,
2010 (the "Initial Term"), unless terminated pursuant to Section 4. At the end of the Initial Term of
this Agreement, the Agreement shall automatically renew for successive one-year terms, unless Bank
provides written notice to Executive within ninety (90) days prior to the expiration of the then
current term. Such Initial Term and all subsequent terms shall be referred to herein as the "Term of
Employment."

             2.             Duties and Authority.

                            (a)           During the Term of Employment, Executive shall serve as Executive Vice
President and Chief Credit Officer of the Bank and the Company. Executive shall perform in a
professional manner the authorized and customary duties for the positions and such other
reasonable duties and responsibilities as the Board of Directors of Bank and/or Company (the
term "Board of Directors" as used in this Agreement shall mean the Board of Directors of Bank,
unless specifically stated otherwise) may assign to Executive from time to time, in writing, which
duties shall include, but not be limited to the following:

                                           (i)             Executive shall oversee all lending functions of the Company and
Bank and all subsidiary lending activities related to and controlled by Bank and Company;

                                           (ii)            Executive shall carry out and implement all proper directions and
instructions of the Board of Directors that conform with reasonable and sound banking practices;

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                                          (iii)            Executive shall use his best efforts to operate Bank so as to meet
the growth and financial projections and budgets established and approved by the Board of
Directors, assuming such projections and budgets shall be reasonable and realistically attainable
under the conditions which then exist both in bank and local and national financial markets; and

                                          (iv)            Executive shall use his best efforts to avoid any action that might
materially damage, harm or discredit the reputation of Bank, its shareholders, or it's Board of
Directors.

                            (b)           Notwithstanding the provisions of Section 2(a), the duties and
responsibilities of Executive may be changed and modified from time to time by Bank at its
discretion. Upon changes and modifications to Executive's duties and responsibilities,
Executive's employment with Bank shall continue to be governed by the terms of this
Agreement.

                            (c)           During the Term of Employment, Executive shall devote Executive's best
efforts and entire productive time, ability and attention to the lending operations of Bank and
Company, and shall not, without the written consent of Bank or Company, directly or indirectly,
alone or as a partner, officer, director, stockholder, employee, or consultant of any other person,
entity, association, agency, organization, or institution, engage in any other business or profession
which would necessitate Executive's giving any portion of his time and effort to such activity.
Executive shall at all times faithfully, with diligence and to the best of Executive's ability,
experience, and talent, perform all the duties that may be required of and from Executive pursuant
to the express and implicit terms hereof to the reasonable satisfaction of B.

                            (d)           Executive shall become informed to the best of his ability of current
developments in the banking industry applicable to Bank and shall attend such banking seminars and
schools as he or the Board of Directors deem appropriate to keep apprised of laws, regulations,
policies and procedures that affect Bank, Company and their operations. Executive shall serve on
such committees of Bank and/or Board of Directors as the Board of Directors may determine from
time to time. Executive shall at all times be subject to the direction and control of the Board of
Directors, and all acts of Executive in the performance of his duties hereunder shall be carried out
in conformity with the policies, directions and limitations as from time to time established by the
Board of Directors. Executive shall not be required to change his domicile from San Diego
County, California in connection with the performance of his duties hereunder. Executive shall not
be required to engage in any activities or exercise any powers or authority that has the effect of
violating any federal, state or local laws or regulations.

             3.             Compensation and Benefits. All payments of compensation to Executive shall be
payable in accordance with Bank's ordinary payroll and other policies and procedures.

                            (a)           Base Salary. During the Term of Employment, Bank shall pay Executive, at
a minimum, a base salary of $140,000.00 per full calendar year ("Base Salary"), appropriately
prorated for partial months at the commencement and end of the term of this Agreement. Bank
shall review the amount of such Base Salary no less often than annually. Any salary adjustment
shall be based on: (i) Executive's performance since Executive's last review; (ii) the performance
and profitability of the Bank; and (iii) the Bank's salary policy effective at the time

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of any such salary review and adjustment. Bank shall have the right to deduct from payment of all
compensation to Executive hereunder any federal, state or local taxes required by law to be
withheld with respect to such payments and any other amounts specifically authorized to be
withheld or deducted by Executive.

                            (b)           Annual Cash Incentive Compensation. After the Bank's has achieved at least
two consecutive quarters of profitability, Executive, if employed on the last day of the calendar
year for which any bonus as determined by the Board of Directors is being awarded, shall be
eligible for performance-based annual cash and/or stock awards as determined by the Board of
Directors in accordance with mutually agreed upon goals and objectives established by the Board
of Directors in January of each calendar year this Agreement is in force and effect.

                            (c)           Participation in Employee Benefit Programs. Executive shall be entitled to
participate in any benefit programs applicable to all employees of Bank or to executive
employees of Bank in accordance with Bank policy and the provisions of said benefit plans. This
Agreement, which provides certain additional benefits, does not preclude Executive's
participation in such other plans of B.

                            (d)           Executive "Personal Time Off" Allocation. Executive shall be allocated a
minimum of five (5) weeks of Personal Time Off ("PTO") in accordance with Bank policy.
Personal time off may be taken at any time during the year subject to the working needs of the
office. If PTO time is unused, 50% of unused PTO time may accumulate and be used at a future
date as deemed appropriate by Chief Executive Officer or President. If the Executive has
accumulated PTO at time of termination, accumulated PTO time will be paid to Executive in
accordance with Bank policy and applicable law.

                            (e)           Stock Options. The Company shall grant to Executive 12,500 options to
purchase shares of common stock of the Company. All stock options granted under this Section
shall expire ten (10) years following the date of grant, have an exercise price equal to the fair
market value of the common stock of the Company at the time of issuance, and be evidenced by a
stock option agreement which may contain additional terms and restrictions not inconsistent with
this Agreement or any stock option plan of the Company then in existence and under which
options pursuant to this Section are issued. The options granted under this Section shall vest in
approximately equal percentages as of the anniversary date of the initial grant date over the three-year period following issuance.

                            (f)           Vehicle Allowance. Bank shall pay Executive $500.00 per month for travel
to and from the offices of Bank and for use in engaging in activities in the name of or for the
benefit of B. Additionally, Bank shall pay or reimburse Executive for reasonable gas and
insurance costs associated with Executive's vehicle use for Bank business.

                            (g)           Reimbursement of Expenses. During the Term of Employment, Bank shall
promptly pay all reasonable expenses incurred by Executive for all reasonable travel and other
business related expenses incurred by him in performing his obligations under this Agreement in
accordance with Bank's travel and business expense policy, such expenses to be reviewed by the
Board of Directors on a periodic basis.

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                            (h)           Compensation After Termination.

                                           (i)             If the Term of Employment is terminated (i) by Bank for cause or
due to the death or disability of Executive, (ii) by Executive or (iii) through expiration of the Term
of Employment, Bank shall have no further obligations hereunder or otherwise with respect to
Executive's employment from and after the termination or expiration date (except payment of
Executive's Base Salary accrued through the date of termination or expiration) and Bank shall
continue to have all other rights available hereunder.

                                           (ii)            If the Term of Employment is terminated by the Bank without
cause, Executive shall be entitled to receive as severance pay (in addition to the payment of the
Base Salary through the date of termination) an amount equal to Executive's Base Salary, payable
within thirty (30) days of the end of the Term of Employment; provided, however, if the severance
payment to Executive would cause Bank to contravene any law, regulation or policy applicable to
Bank, Bank and Executive agree that such severance payment shall be made to the extent
permitted by law, regulation and policy, and the remainder of such severance payment shall be
made from time to time at the earliest time permitted by law, regulation and policy. After the 30th
day following the end of the Term of Employment, the outstanding severance payment shall, until
paid, bear interest per annum at the prime lending rate as published in the Southwest Edition of
The Wall Street Journal on the 31st day following the end of the Term of Employment. Except as
otherwise specifically provided herein, Bank shall have no other obligations hereunder or
otherwise with respect to Executive's employment from and after the termination or expiration
date, and Bank shall continue to have all other rights available hereunder.

                                           (iii)           No termination under Section 4 shall terminate or adversely affect
any rights of Executive then vested under any disability or other benefit program of Bank.

                            (i)           Fair and Adequate Compensation. Bank and Executive acknowledge that
such compensation and the other covenants and agreements of Bank contained herein are fair and
adequate compensation for Executive's services and for the covenants described below.

             4.             Termination.

                            (a)           Death. If Executive dies during the Term of Employment and while in the
employ of Bank, this Agreement shall automatically terminate and Bank or Company shall have no
further obligation to Executive or his estate under this Agreement (other than death benefits
payable under the benefit plans referenced in Section 3(c), except that Bank shall pay Executive's
estate that portion of Executive's base salary under Section 3(a) accrued through the date on which
Executive's death occurred. Such payment of base salary to Executive's estate shall be made in the
same manner as other payroll obligations of the Bank.

                            (b)           Disability.

                                           (i)             Bank may terminate this Agreement if, during the Term of
Employment, Executive shall be prevented from performing his duties hereunder by reason of
becoming disabled. For purposes of this Agreement, the term "disabled" shall have the meaning
set forth in Bank's long term disability plan or, if Bank has no long term disability plan in effect

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at the time of the Executive's disability, shall mean that Executive has become physically or
mentally incapable (excluding infrequent and temporary absences due to ordinary illness) of
performing the essential functions of his duties under this Agreement for a continuous period of
three (3) months, as determined by Bank upon the advice of a qualified physician. In the event a
dispute arises between Executive and the Bank concerning Executive's physical or mental ability to
continue or return to the performance of his duties, Executive shall submit to examination by a
competent physician mutually agreeable to both parties. The physician's opinion as to the
Executive's capability to perform his duties will be final and binding. During any period prior to
termination during which the Executive fails to perform his duties as a result of incapacity due to
physical or mental illness, Executive shall continue to receive his full salary at the rate then in
effect for such period until his employment terminates pursuant to this Section 4(b), provided that
payments so made to Executive during such period shall be reduced by the sum of the amounts, if
any, payable to Executive under any disability benefit plans of Bank that were not previously
applied to reduce such payment.

                                           (ii)            In the event of a termination pursuant to this Section 4(b), Bank
shall be relieved of all its obligations under this Agreement, except that Bank shall pay to
Executive, or his estate in the event of his subsequent death, Executive's base salary under
Section 3(a) through the date on which such termination shall have occurred, reduced during such
period by the amount of any benefits received by Executive under any disability policy
maintained by Bank and any death benefits payable under the benefit plans referenced in Section
3(c). All such payments to Executive or his estate shall be made in the same manner as other
payroll obligations of Bank.

                            (c)           Discharge for Cause. At any time during the Term of Employment, Bank
may discharge Executive for cause and terminate this Agreement by delivering to Executive a
written notice of discharge. The notice of discharge shall set forth the reasons for Executive's
termination for cause. For purposes of this Agreement, cause shall be defined as the occurrence of
any of the following events:

                                           (i)             The determination by the Board of Directors in the exercise of its
reasonable judgment, after consultation with its legal counsel, that Executive has committed an act
or acts constituting (i) a felony or other crime, whether a felony or a misdemeanor, involving moral
turpitude, dishonesty or theft, (ii) dishonesty or disloyalty with respect to Bank or Company, or
(iii) fraud;

                                           (ii)            The determination by the Board of Directors in the exercise of its
reasonable judgment, that (i) the Executive has failed to follow the policies adopted by the Board of
Directors; (ii) that Executive has failed to meet the performance goals established in writing by the
Board of Directors in January of each calendar year this Agreement is in effect; or (iii) that Executive has engaged in such actions or omissions that would constitute
unsafe or unsound banking practices;

                                           (iii)           The determination by the Board of Directors in the exercise of its
reasonable judgment, after consultation with its legal counsel, that Executive has committed a
breach or violation of this Agreement, and fails to cure such breach or violation within

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ten (10) days after written notice to Executive by Bank specifying in reasonable detail the
alleged breach or violation;

                                           (iv)            The determination by the Board of Directors, after consultation with
its legal counsel, that Executive has engaged in gross misconduct in the course and scope of his
employment with Bank including indecency, immorality, gross insubordination, dishonesty,
unlawful harassment or discrimination, use of illegal drugs, or fighting; or

                                           (v)           In the event Executive is prohibited from engaging in the business
of banking by any governmental regulatory agency having jurisdiction over Bank or Company.

             For purposes of this Agreement, Executive shall not be deemed to be in breach of this
Agreement for his failure to substantially perform his duties under this Agreement where such
failure results because Executive has becomes disabled within the meaning of Section 4(b). In
such cases, termination of Executive shall be governed by the provisions of Section 4(b).

                            (d)           Discharge without Cause. At any time during the Term of Employment,
Bank shall be entitled to terminate Executive's employment and this Agreement "without cause,"
by providing him with a written notice of termination. Any termination of this Agreement which is
not for cause, as defined above in Section 4(c), or which does not result from the death or disability
of Executive, as set forth in Sections 4(a) or 4(b) respectively, shall be deemed to be a termination
without cause.

                            (e)           Resignation. Executive shall be entitled to terminate this Agreement by
providing Bank with a written notice of resignation at least ninety (90) days prior to the intended
resignation date. Upon Executive's resignation, he shall be entitled to receive any base salary
which has been earned by him through the effective date of such resignation. In lieu of having
Executive work for Bank through the effective date of the resignation, Bank may terminate this
Agreement immediately; however, Bank shall still pay Executive amounts to which he would
otherwise be entitled through the effective date of such resignation. Upon the effective date of
Executive's resignation, Executive shall not be entitled to receive any other compensation or
benefits as provided in the individual benefit plans or agreements.

             5.             Non-Disclosure and Confidentiality.

                            (a)           Executive acknowledges that, by the nature of his duties, he will or may
have access to and become informed of confidential, proprietary, and highly sensitive information
relating to Bank and which is a competitive asset of Bank, including, without limitation,
information pertaining to: (i) the identities of Bank's existing and prospective customers or clients,
including names, addresses, credit status, and pricing levels; (ii) the buying and selling habits and
customs of Bank's existing and prospective customers or clients; (iii) financial information about
Bank; (iv) product and systems specifications, concepts for new or improved products and other
product or systems data; (v) the identities of, and special skills possessed by, Bank's employees;
(vi) the identities of and pricing information about Bank's suppliers and vendors; (vii) training
programs developed by Bank; (viii) pricing studies, information and analyses; (ix) current and
prospective products and inventories; (x) financial models, business projections and market
studies; (xi) Bank's financial results and business

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conditions; (xii) business plans and strategies; (xiii) special processes, procedures, and services of
Bank and its suppliers and vendors; and (xiv) computer programs and software developed by Bank
or its consultants.

                            (b)           The term Proprietary Information does not include information or know-how which: (i) is in Executive's possession prior to its disclosure to him by Bank (as shown by
competent written evidence in Executive's files and records immediately prior to the time of
disclosure); (ii) is available to the general public other than through any inaction or action
(whether or not wrongful) on Executive's part; or (iii) is approved for release by written
authorization of the B.

                            (c)           Executive agrees not to: (i) use, at any time, any Proprietary Information
for his own benefit and for the benefit of another; or (ii) disclose, directly or indirectly, any
Proprietary Information to any person who is not a current employee of Bank, except in the
performance of the duties assigned to Executive in this Agreement, at any time prior or
subsequent to the termination of his employment with Bank, except as such disclosure may be
required by law. Executive further agrees not to make copies of any Proprietary Information,
except in the performance of the duties assigned to him in this Agreement.

             6.             Return of Bank Property. Executive acknowledges that all memoranda, emails,
notes, records, reports, manuals, books, papers, letters, client and customer lists, contracts, software
programs, information and records, drafts of instructions, guides and manuals, and other
documentation (whether in draft or final form), and other sales or financial information and aids
relating to Bank's business, and any and all other documents containing Proprietary Information
furnished to Executive by any representative of Bank or otherwise acquired or developed by
Executive in connection with his association with Bank (collectively, "Recipient Materials") shall
at all times be the property of B. Within twenty-four (24) hours of the termination of his
employment with Bank, Executive shall return to Bank any Recipient Materials which are in his
possession, custody or control.

             7.             Non-Solicitation of Employees. Executive agrees that, as part of his employment
with Bank, he will become familiar with the salary, pay scale, capabilities, experiences, skill and
desires of the Bank's employees. Executive agrees to maintain the confidentiality of such
information. He further covenants and agrees that, for a period of one (1) year subsequent to the
termination of his employment with Bank, whether such termination occurs at the insistence of
himself or Bank, he shall not recruit, hire, or attempt to recruit or hire, directly or by assisting
others, any other employees of Bank, nor shall he contact or communicate with any other
employees of Bank for the purpose of inducing other employees to terminate their employment
with B. For purposes of this covenant, "other employees" shall refer to employees who were
employed by, or doing business with, Bank within twelve (12) months of the time of the attempted
recruiting or hiring.

             8.             Independent Covenants. Executive acknowledges that the covenants set forth in
Sections 5 and 7 are material conditions to Bank's willingness to execute and deliver this
Agreement and to provide Executive the compensation and benefits and other consideration
provided hereunder. The parties agree that the existence of any claim or cause of action of
Executive against Bank, whether predicated on this Agreement or otherwise, will not constitute a

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defense to the enforcement by Bank of such covenants. It is specifically acknowledged that the
period of one (1) year following the termination of employment stated in Section 7, during which the
agreements and covenants of Executive made in such sections are effective, is to be computed by
excluding from such computation any time during which Executive is in violation of any provision
of Section 7. The covenants contained in Sections 5 and 7 will not be affected by any breach of any
other provision hereof by any party hereto. In addition, Executive's obligations under Sections 5
and 7 shall survive the termination of this Agreement and Executive's employment with B.
Executive's obligations under Sections 5 and 7 are in addition to, and not in limitation or
preemption of, all other obligations of confidentiality which he may have to Bank under general
legal or equitable principles, or other Bank policies.

             9.             Remedies. In the event that Executive violates any of the provisions set forth in
Sections 5 and 7 of this Agreement, Executive acknowledges that Bank will suffer immediate and
irreparable harm which cannot be accurately calculated in monetary damages. Consequently,
Executive acknowledges and agrees that Bank shall be entitled to immediate injunctive relief,
either by temporary or permanent injunction, to prevent such a violation. Executive further
acknowledges and agrees that this injunctive relief shall be in addition to any other legal or
equitable relief to which Bank would be entitled.

             10.            Early Resolution Conference. This Agreement is understood to be clear and
enforceable as written and is executed by both parties on that basis. However, if at any time
Executive seeks to challenge any provision of this Agreement as unclear, unenforceable or
inapplicable to any competitive activity in which Executive intends to engage, Executive shall first
notify the Bank in writing and meet with a representative of the Bank and a neutral mediator (if the
Bank elects to retain one, at its expense) to discuss the resolution of any disputes between the
parties. Executive shall provide this notification at least fourteen (14) days before Executive
engages in any activity that could foreseeably fall within the scope of any of the provisions set
forth in Sections 5 and 7 of this Agreement. The failure to comply with this requirement shall
operate as a waiver by the Executive to challenge the reasonable scope, clarity, applicability or
enforceability of Sections 5 and 7 of this Agreement. All rights of Executive and the Bank will be
preserved if the early resolution conference requirement is complied with, even in the event that no
agreement is reached as a result of the conference.

             11.            Notification of Prospective Employment. If Executive intends to accept
employment or an association with any third party which is engaged in a business similar to the
business conducted by Bank or which, because of the nature of his proposed or potential position
with the third party, may require him to use or disclose Bank's Proprietary Information, he agrees
to provide Bank with notice of his intention to accept such employment or association no later than
ninety (90) days prior to accepting such employment or association. Prior to accepting employment
or an association with any third party which is engaged in a business similar to the business
conducted by Bank or which, because of the nature of his proposed or potential position with the
third party, may require Executive to use or disclose Bank's Proprietary Information, he agrees to
provide a copy of this Agreement to such third party. Finally, Executive agrees that Bank may, at
any time while any of the non-disclosure and/or non-solicitation covenants contained in this
Agreement are in force, provide notice of the existence of that Agreement to any third party with
whom or which he proposes to negotiate or is negotiating concerning employment or to accept
employment, without any liability to Executive for any such notice.

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             12.            Arbitration.

                            (a)           Executive recognizes that differences may arise between him, the Bank, and
the Company during or following his employment with Bank, and that those differences may or may
not be related to his employment. Executive acknowledges that by entering into this Agreement, he
anticipates gaining the benefits of a speedy, impartial dispute-resolution procedure for resolving
any and all disputes between himself, Bank, and Company. Notwithstanding Section 18 hereof,
this Section 12 shall be governed by the Federal Arbitration Act and to the extent that it is
inconsistent with California law, it will supersede California law relating to the arbitrability of any
disputes.

                            (b)           Executive, Company and Bank consent to the resolution by final and
binding arbitration of any claim, controversy, or dispute ("claim(s)") among Executive, Company
and Bank, whether or not such claims arise out of or relate to his employment by Bank, in
accordance with the Employment Arbitration Rules of the American Arbitration Association in
effect on the date the claim or controversy arises. The claims covered by this Section include, but
are not limited to, claims for wages or other compensation due; claims for breach of any contract or
covenant (express or implied); tort claims (including, but not limited to, invasion of privacy,
intentional infliction of emotional distress, assault, battery, fraud, negligence, gross negligence,
negligent hiring or retention); claims of discrimination (including, but not limited to, race, gender,
sexual harassment, religion, national origin, age, marital status, or medical condition, handicap or
disability); claims for benefits (except where an employee benefit or pension plan specifies that its
claims procedure shall culminate in an arbitration procedure different from this one); and claims
for violation of any federal, state, or other governmental law, statute, regulation, or ordinance,
except claims excluded in the following paragraph.

                            (c)           Executive, Company and Bank understand that claims for workers'
compensation or unemployment compensation benefits are not covered by this Agreement.
Moreover, although Executive is prohibited from filing a lawsuit concerning claims covered by
this Agreement, Executive understands that this Section shall not prohibit him from filing a
charge or complaint with any governmental agency. Finally, Executive understands that this
Section 12 does not apply with respect to disputes relating to the operation of and the
enforcement of Sections 5 and 7 hereof.

                            (d)           Any party may initiate an arbitration proceeding by delivery of written
notice to the other party hereto. Resolution of such dispute shall be resolved by a majority vote of a
panel of three arbitrators. Within thirty (30) days after giving or receiving a demand for
arbitration, Bank and Executive shall each select one arbitrator. Such arbitrators shall be freely
selected and the parties shall not be limited in their selection to any prescribed list. The
arbitrators chosen by Bank, Company and Executive shall, by mutual consent, select the third
arbitrator. Except as otherwise agreed upon by the Parties, the arbitration shall convene in San
Clemente, California.

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                            (e)           The decision of the arbitrators shall be in writing and presented in separate
findings of fact and law. The award of the arbitrators shall be final and binding on the parties from
which no appeal maybe taken and an order confirming the award or judgment upon the award may
be entered into in any court having jurisdiction there over.

                            (f)           Prior to the appointment of the arbitrator, Bank, Company or Executive
may seek provisional remedies, including, without limitation, temporary restraining orders and
preliminary injunctions. After the appointment of the arbitrators, the arbitrators shall have sole
authority to grant such provisional remedies as the arbitrators, in their sole discretion, deem
necessary or appropriate.

                            (g)           The arbitrators shall have the authority to award any relief permitted by
relevant federal or state statute, including, without limitation, back wages, front wages, actual
damages, compensatory damages, punitive damages, attorneys' fees, and costs associated with the
arbitration proceeding. The arbitrators, in the award, may assess the fees and expenses of the
arbitrators and of the arbitration proceeding and the witness and attorney's fees of the parties or any
part thereof, against either Bank, Company or Executive or any of them, taking into account the
circumstances of the case. Except as assessed by the arbitrators in the award, Bank, Company and
Executive shall each bear their own costs in connection with the arbitration proceeding.
Notwithstanding the foregoing, Bank shall bear 100% of the aggregate fees and expenses of the
arbitrators.

                            (h)           Executive, Company and Bank acknowledge and agree that a party making a
claim pursuant to or arising under this Section must give written notice of such claim within one
(1) year of the occurrence of the event or conduct giving rise to the claim. Failure to give notice of
any claim within one (1) year shall constitute a waiver of the claim, even if there is a federal or state
statute of limitations which would have given more time to pursue the claim.

                            (i)           Except with respect to claims described in Section 12(c), Executive,
Company and Bank acknowledge and agree that the arbitrators, and not any federal, state, or local
court or agency, shall have exclusive authority to resolve any dispute relating to the interpretation,
applicability, enforceability or formation of this Agreement, including, but not limited to, any
claim that all or any part of this Agreement is void or voidable. Such arbitrators shall have
jurisdiction to hear and rule on pre-hearing disputes, and are authorized to hold pre-hearing
conferences by telephone or in person as the arbitrator deems necessary. The arbitrators shall have
the authority to entertain a motion to dismiss and/or a motion for summary judgment by any party
and shall apply the standards governing such motions under the Federal Rules of Civil Procedure.
The arbitrators shall apply the substantive law (and the law of remedies, if applicable) of the state
in which the claim arose, or federal law, or both, as applicable to the claim(s) asserted. The
Federal Rules of Evidence shall apply to the arbitration proceeding.

             13.            Goodwill. Executive acknowledges that Bank will, over a period of time, develop,
significant relationships and goodwill between itself and its clients and customers by providing
superior products and services. Executive further acknowledges that these relationships and this
goodwill are a valuable asset belonging solely to Bank. Executive understands that Bank agrees to
compensate him, as well as to reimburse him for reasonable and necessary business expenses
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and goodwill with Bank's current and prospective clients and customers on a personal level.
Executive acknowledges that the responsibility to build and maintain business relationships and
goodwill with current and prospective clients and customers creates a special relationship of trust and
confidence between him, Bank, and its clients and customers.

             14.            Change in Control. Upon a Change in Control, the Bank shall pay to Executive a
cash lump sum payment equal to 199% of his Base Amount as defined in section 280G(b)(3) of
the Internal Revenue Code of 1986, as amended ("Change in Control Payment"); provided,
however, if the Change in Control Payment to Executive would cause the Bank to contravene any
law, regulation or policy applicable to the Bank, the Bank and Executive agree that such Change
in Control Payment shall be made to the extent permitted by law, regulation and policy, and the
remainder of such Change in Control Payment shall be made from time to time at the earliest time
permitted by law, regulation and policy. For purposes of this Agreement, "Change in Control"
means:

                            (a)           a change in the ownership of the capital stock of the Bank or the Company,
whereby a corporation, person, or group acting in concert (other than the current members of the
boards of directors of the Company or the Bank or any of their descendants, the Company, the
Bank, or any savings, pension or other benefit plan for the benefit of the employees of the
Company or the Bank or subsidiaries thereof)(a "Person") as described in Section 14(d)(2) of the
Securities Exchange Act of 1934, as amended ("Exchange Act"), holds or acquires, directly or
indirectly, beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of a number of shares of capital stock of the Company or the Bank which
constitutes fifty percent (50%) or more of the combined voting power of the Company's or the
Bank's then outstanding capital stock entitled to vote generally in the election of directors;

                            (b)           the persons who were members of the board of directors of the Company
or the Bank immediately prior to a tender offer, exchange offer, contested election or any
combination of the foregoing, cease to constitute a majority of the board of directors of the
Company or the Bank, as applicable;

                            (c)           the consummation by the board of directors of the Company or the Bank of
a merger, consolidation or reorganization plan involving the Company or the Bank in which the
Company or the Bank, as applicable, is not the surviving entity, or a sale of all or substantially all
of the assets of the Company or the B. For purposes of this Agreement, a sale of all or
substantially all of the assets of the Company or the Bank shall be deemed to occur if any Person
acquires (or during the 12-month period ending on the date of the most recent acquisition by such
Person, has acquired) gross assets of the Company or the Bank, as applicable, that have an
aggregate fair market value equal to fifty percent (50%) or more of the fair market value of all of
the respective gross assets of the Company or the Bank immediately prior to such acquisition or
acquisitions;

                            (d)           a tender offer or exchange offer is made by any Person which is successfully
completed and results in such Person beneficially owning (within the meaning of Rule 13d-3
promulgated under the Exchange Act) either fifty percent (50%) or more of the Company's or
Bank's outstanding shares of common stock or shares of capital stock having fifty

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percent (50%) or more of the combined voting power of the Company's or Bank's then outstanding
capital stock (other than an offer made by the Company or the Bank), and sufficient shares are
acquired under the offer to cause such person to own fifty percent (50%) or more of the voting
power;

                            (e)           a dissolution or liquidation of the Company or the Bank; or

                            (f)           any other transactions or series of related transactions occurring which
have substantially the same effect as the transactions specified in clauses (a) - (f);

provided however that, a shareholder or shareholders may make the following transfers and such
transfers shall be deemed not to be a Change in Control: (i) to any trust described in section
1361(c)(2) of the Code and that is created solely for the benefit of any shareholder or any spouse or
lineal descendant of any shareholder; (ii) to any individual by bona fide gift; (iii) to any spouse or
former spouse pursuant to the terms of a decree of divorce; or (iv) to any officer or employee of the
Company or the Bank pursuant to any stock option plan established by the shareholders of the
Company or the B.

             15.            Notices. All notices, requests, consents and other communications to be given or
delivered hereunder or by reason of the provisions of this Agreement shall be in writing and shall be
deemed to have been properly served if (a) delivered personally, (b) delivered by a recognized
overnight courier service, (c) sent by certified or registered mail, return receipt requested and first
class postage prepaid, or (d) sent by facsimile transmission followed by a confirmation copy
delivered by recognized overnight courier service the next day. Such notices, requests, consents
and other communications shall be sent to the respective parties as follows: (i) if to Executive:
Stanley M. Cruse, 701 Avenida Amigo, San Marcos, CA, 92069 (ii) if to Bank or Company: Chief
Executive Officer, Pacific Coast National Bank, 905 Calle Amanecer, San Clemente, CA 92673.
Any Party hereto may designate a different address by providing written notice of such new address
to the other Parties. Date of service of such notice shall be (i) the date such notice is personally
delivered or sent by facsimile transmission (with issuance by the transmitting machine of a
confirmation of a successful transmission), (ii) three (3) business days after the date of mailing if
sent by certified or registered mail or (iii) one business day after the date of delivery to the overnight
courier if sent by overnight courier.

             16.            Severability. The Parties acknowledge that each covenant and/or provision of this
Agreement shall be enforceable independently of every other covenant and/or provision.
Furthermore, Executive, Bank and Company acknowledge that, in the event any covenant and/or
provision of this Agreement is determined to be unenforceable for any reason, the remaining
covenants and/or provisions will remain effective, binding and enforceable.

             17.            Complete Agreement Modification. The Parties acknowledge and agree that this
Agreement constitutes the complete and entire agreement between the parties; that each executed this
Agreement based upon the express terms and provisions set forth herein; that, in accepting
employment with Bank, Executive has not relied on any representations, oral or written, which are
not set forth in this Agreement; that no previous agreement, either oral or written, shall have any
effect on the terms or provisions of this Agreement; and that all previous agreements, either oral or
written, are expressly superseded and revoked by this Agreement. The provisions hereof

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may not be altered, amended, modified, waived, or discharged in any way whatsoever, except by
written agreement executed by Executive and Bank. No waiver shall be deemed a continuing
waiver or a waiver of any subsequent breach or default, either of a similar or different nature,
unless expressly so stated in writing.

             18.            Governing Law. This Agreement shall be construed and enforced in accordance
with, and all questions concerning the construction, validity, interpretation and performance of
this Agreement shall be governed by, the laws of the State of California, without giving effect to
provision thereof regarding conflict of laws.

             19.            Counterparts. This Agreement may be executed in multiple original counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument.

             20.            Prior Agreements. Executive represents that his service as an employee of Bank
will not violate any agreement: (i) he has made that prohibits him from disclosing any information
he acquired prior to his becoming employed by Bank; or (ii) he had made that prohibits him from
accepting employment with Bank or that will interfere with his compliance with the terms of this
Agreement. Executive further represents that he has not previously, and will not in the future,
disclose to Bank any proprietary information or trade secrets belonging to any previous employer.
Executive acknowledges that Bank has instructed him not to disclose to it any proprietary
information or trade secrets belonging to any previous employer.

             21.            Voluntary Agreement. The Parties acknowledge that each has carefully read this
agreement, that each has had an opportunity to consult with his or its attorney concerning the
meaning, import and legal significance of this Agreement, that each understands its terms, that all
understandings and agreements between Executive and Bank relating to the subjects covered in this
Agreement are contained in it, and that each has entered into the Agreement voluntarily and not
in reliance on any promises or representations by the other than those contained in this
Agreement.

             22.            Restrictions Upon Funding. The Bank shall have no obligation to set aside, earmark
or entrust any fund or money with which to pay its obligations under this Agreement. The
Executive or any successor-in-interest to Executive shall be and remain simply a general creditor
of the Bank in the same manner as any other creditor having a general unsecured claim. For
purposes of the Code, the Bank intends this Agreement to be an unfunded, unsecured promise to
pay on the part of the B. For purposes of Employee Retirement Income Security Act of 1974, as
amended ("ERISA"), the Bank intends that this Agreement not be subject to ERISA. If it is
deemed subject to ERISA, it is intended to be an unfunded arrangement for the benefit of a select
member of management, who is a highly compensated employee of the Bank for the purpose of
qualifying this Agreement for the "top hat" plan exception under sections 201(2), 301(a)(3) and
401(a)(1) of ERISA. At no time shall the Executive have or be deemed to have any lien nor right,
title or interest in or to any specific investment or to any assets of the B. If the Bank elects to
invest in a life insurance, disability or annuity policy upon the life of Executive, the Executive shall
assist the Bank by freely submitting to a physical examination and supplying such additional
information necessary to obtain such insurance or annuities.

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             23.            Interpretation. When a reference is made in this Agreement to a Section, such
reference shall be to a Section of this Agreement unless otherwise indicated. The headings
contained in this Agreement are for convenience of reference only and shall not affect in any way
the meaning or interpretation of this Agreement. Whenever the words "include", "includes" or
"including" are used in this Agreement, they shall be deemed to be followed by the words "without
limitation." The words "hereof', "herein" and "hereunder" and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any particular provision in
this Agreement. Each use herein of the masculine, neuter or feminine gender shall be deemed to
include the other genders. Each use herein of the plural shall include the singular and vice versa, in
each case as the context requires or as is otherwise appropriate. The word "or" is used in the
inclusive sense. Any agreement or instrument defined or referred to herein or in any agreement or
instrument that is referred to herein means such agreement or instrument as from time to time
amended, modified or supplemented, including by waiver or consent. References to a person are
also to its permitted successors or assigns.

[Signature Page Follows]

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[Signature Page to Employment Agreement]

             IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above, to be effective as of the Effective Date.

	EXECUTIVE:		/s/ Stanley M. Cruse

Stanley M. Cruse

701 Avenida Amigo

San Marcos, CA 92069
	 

	BANK:		PACIFIC COAST NATIONAL BANK

(A wholly owned subsidiary of Pacific Coast

National Bancorp)
	 

			By:	/s/ Dennis C. Lindeman

Dennis C. Lindeman

Chairman of the Board

/s/ Colin M. Forkner

Colin M. Forkner

Vice Chairman & Chief Executive Officer
	 

	COMPANY:		PACIFIC COAST NATIONAL BANCORP
	 

			By:	/s/ Dennis C. Lindeman

Dennis C. Lindeman

Chairman of the Board

/s/ Colin M. Forkner

Colin M. Forkner

Vice Chairman & Chief Executive Officer

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15CHANGE IN CONTROL AGREEMENT

THIS CHANGE IN CONTROL AGREEMENT (the "Agreement") is made and entered into as
of the 10th day of August 2007, by and between Pacific Coast National Bank (the "Bank") and
David L. Adams (the "Executive"), a resident of Orange County, California (the signatories to
this Agreement will be referred to jointly as the "Parties").

WITNESSETH:

             WHEREAS, the Bank is a wholly-owned subsidiary of Pacific Coast National Bancorp
(the "Company"),

             WHEREAS, both Bank and Executive have read and understood the terms and provisions
set forth in this Agreement and have been afforded a reasonable opportunity to review this
Agreement with their respective legal counsel.

             NOW, THEREFORE, in consideration of the mutual promises and covenants set forth in
this Agreement, and for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, Executive and Bank agree as follows:

             1.             At-Will Employment.  Executive's employment at the Bank is for an unspecified term and
will continue only at the mutual will of both Executive and the Bank.  This means either Executive, or the Bank,
may terminate Executive's employment at will at any time, with or without cause or notice.  This "At-Will" aspect of
Executive's employment may not be modified, amended or rescinded except by an individual written agreement to
the contrary signed by both Executive and the Bank's President or Chief Executive Officer.  Notwithstanding the
terms of this Agreement, Executive's employment shall be subject to all of the applicable Bank policies and
procedures, as amended from time to time, relating to employment and personnel matters.

             2.             Change in Control.  Upon a Change in Control which occurs during the time Executive is
employed by the Bank, the Bank shall pay to Executive a cash lump sum payment equal to 199% of his Base
Amount as defined in section 280G(b)(3) of the Internal Revenue Code of 1986, as amended ("Change in Control
Payment"); provided, however, if the Change in Control Payment to Executive would cause the Bank to contravene
any law, regulation or policy applicable to the Bank, the Bank and Executive agree that such Change in Control
Payment shall be made to the extent permitted by law, regulation and policy, and the remainder of such Change in
Control Payment shall be made from time to time at the earliest time permitted by law, regulation and policy.  For
purposes of this Agreement, "Change in Control" means:

                            (a)           a change in the ownership of the capital stock of the Bank or the
Company, whereby a corporation, person, or group acting in concert (other than the current
members of the boards of directors of the Company or the Bank or any of their descendants, the
Company, the Bank, or any savings, pension or other benefit plan for the benefit of the
employees of the Company or the Bank or subsidiaries thereof)(a "Person") as described in
Section 14(d)(2) of the Securities Exchange Act of 1934, as amended ("Exchange Act"), holds or

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acquires, directly or indirectly, beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of a number of shares of capital stock of the Company or
the Bank which constitutes fifty percent (50%) or more of the combined voting power of the
Company's or the Bank's then outstanding capital stock entitled to vote generally in the election
of directors;

                            (b)           the persons who were members of the board of directors of the Company
or the Bank immediately prior to a tender offer, exchange offer, contested election or any
combination of the foregoing, cease to constitute a majority of the board of directors of the
Company or the Bank, as applicable;

                            (c)           the consummation by the board of directors of the Company or the Bank
of a merger, consolidation or reorganization plan involving the Company or the Bank in which
the Company or the Bank, as applicable, is not the surviving entity, or a sale of all or
substantially all of the assets of the Company or the Bank.  For purposes of this Agreement, a
sale of all or substantially all of the assets of the Company or the Bank shall be deemed to occur
if any Person acquires (or during the 12-month period ending on the date of the most recent
acquisition by such Person, has acquired) gross assets of the Company or the Bank, as applicable,
that have an aggregate fair market value equal to fifty percent (50%) or more of the fair market
value of all of the respective gross assets of the Company or the Bank immediately prior to such
acquisition or acquisitions;

                            (d)           a tender offer or exchange offer is made by any Person which is
successfully completed and results in such Person beneficially owning (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) either fifty percent (50%) or more of the
Company's or Bank's outstanding shares of common stock or shares of capital stock having fifty
percent (50%) or more of the combined voting power of the Company's or Bank's then
outstanding capital stock (other than an offer made by the Company or the Bank), and sufficient
shares are acquired under the offer to cause such person to own fifty percent (50%) or more of
the voting power;

                            (e)           a dissolution or liquidation of the Company or the Bank; or

                            (f)           any other transactions or series of related transactions occurring which
have substantially the same effect as the transactions specified in clauses (a) - (f);

provided however that, a shareholder or shareholders may make the following transfers and such
transfers shall be deemed not to be a Change in Control:  (i) to any trust described in section
1361(c)(2) of the Code and that is created solely for the benefit of any shareholder or any spouse
or lineal descendant of any shareholder; (ii) to any individual by bona fide gift; (iii) to any spouse
or former spouse pursuant to the terms of a decree of divorce; or (iv) to any officer or employee
of the Company or the Bank pursuant to any stock option plan established by the shareholders of
the Company or the Bank.

             3.             Non-Disclosure and Confidentiality.

                            (a)           Executive acknowledges that, by the nature of his duties, he will or may
have access to and become informed of confidential, proprietary, and highly sensitive

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information relating to Bank and which is a competitive asset of Bank, including, without
limitation, information pertaining to:  (i) the identities of Bank's existing and prospective
customers or clients, including names, addresses, credit status, and pricing levels; (ii) the buying
and selling habits and customs of Bank's existing and prospective customers or clients;
(iii) financial information about Bank; (iv) product and systems specifications, concepts for new
or improved products and other product or systems data; (v) the identities of, and special skills
possessed by, Bank's employees; (vi) the identities of and pricing information about Bank's
suppliers and vendors; (vii) training programs developed by Bank; (viii) pricing studies,
information and analyses; (ix) current and prospective products and inventories; (x) financial
models, business projections and market studies; (xi) Bank's financial results and business
conditions; (xii) business plans and strategies; (xiii) special processes, procedures, and services
of Bank and its suppliers and vendors; and (xiv) computer programs and software developed by
Bank or its consultants.

                            (b)           The term Proprietary Information does not include information or know-how which:  (i) is in Executive's possession prior to its disclosure to him by Bank (as shown by
competent written evidence in Executive's files and records immediately prior to the time of
disclosure); (ii) is available to the general public other than through any inaction or action
(whether or not wrongful) on Executive's part; or (iii) is approved for release by written
authorization of the Bank.

                            (c)           Executive agrees not to:  (i) use, at any time, any Proprietary Information
for his own benefit and for the benefit of another; or (ii) disclose, directly or indirectly, any
Proprietary Information to any person who is not a current employee of Bank, except in the
performance of the duties assigned to Executive in this Agreement, at any time prior or
subsequent to the termination of his employment with Bank, except as such disclosure may be
required by law.  Executive further agrees not to make copies of any Proprietary Information,
except in the performance of the duties assigned to him in this Agreement.

             4.             Return of Bank Property.  Executive acknowledges that all memoranda, emails,
notes, records, reports, manuals, books, papers, letters, client and customer lists, contracts,
software programs, information and records, drafts of instructions, guides and manuals, and other
documentation (whether in draft or final form), and other sales or financial information and aids
relating to Bank's business, and any and all other documents containing Proprietary Information furnished to
Executive by any representative of Bank or otherwise acquired or developed by Executive in connection with his
association with Bank (collectively, "Recipient Materials") shall at all times be the property of Bank.  Within
twenty-four (24) hours of the termination of his employment with Bank, Executive shall return to Bank any
Recipient Materials which are in his possession, custody or control.

             5.             Non-Exclusivity Of Rights.  Other than as specifically set forth herein, nothing in
this Agreement shall prevent or limit the Executive's continuing or future participation in any
plan, program, policy or practice, contract or agreement (collectively, an "Arrangement")
provided by the Bank and for which the Executive may qualify.  Unless otherwise agreed in
writing by the Bank and Executive, whenever Executive would be entitled to payment of any
salary, or other compensation or benefits under an Arrangement other than this Agreement, the
Executive shall be entitled to receive (including by way of partial application of each of this

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Agreement and such other Arrangement) the payments and benefits most favorable to the
Executive (as determined in good faith by the Executive and evidenced in a written election by
the Executive delivered to the Corporation within ten (10) business days after the Date of
Termination), provided, however, that nothing herein shall be construed or shall operate in such a
manner as shall permit an Executive to receive the same type of payment or benefit under more
than one of this Agreement or such other Arrangement.

             6.             Notices.  All notices, requests, consents and other communications to be given or
delivered hereunder or by reason of the provisions of this Agreement shall be in writing and shall
be deemed to have been properly served if (a) delivered personally, (b) delivered by a recognized overnight
courier service, (c) sent by certified or registered mail, return receipt requested and first class postage prepaid, or
(d) sent by facsimile transmission followed by a confirmation copy delivered by recognized overnight courier
service the next day.  Such notices, requests, consents and other communications shall be sent to the respective
parties as follows:  (i) if to Executive:  David L. Adams, 24635 Priscilla, Dana Point, CA, 92629; (ii) if to Bank:
Pacific Coast National Bank and/or if to Company:  Chief Executive Officer, Pacific Coast National Bank, 902
Calle Amanecer, San Clemente, CA 92673.  Any Party hereto may designate a different address by providing
written notice of such new address to the other Parties.  Date of service of such notice shall be (i) the date such
notice is personally delivered or sent by facsimile transmission (with issuance by the transmitting machine of a
confirmation of a successful transmission), (ii) three (3) business days after the date of mailing if sent by certified or
registered mail or (iii) one business day after the date of delivery to the overnight courier if sent by overnight
courier.

             7.             Severability.  The Parties acknowledge that each covenant and/or provision of this
Agreement shall be enforceable independently of every other covenant and/or provision.
Furthermore, Executive, Bank and Company acknowledge that, in the event any covenant and/or
provision of this Agreement is determined to be unenforceable for any reason, the remaining
covenants and/or provisions will remain effective, binding and enforceable.

             8.             Complete Agreement; Modification.  Except as provided in Section 1 above, the Parties
acknowledge and agree that this Agreement constitutes the complete and entire agreement between the parties; that
each executed this Agreement based upon the express terms and provisions set forth herein; that, in accepting
employment with Bank, Executive has not relied on any representations, oral or written, which are not set forth in
this Agreement; that no previous agreement, either oral or written, shall have any effect on the terms or provisions
of this Agreement; and that all previous agreements, either oral or written, are expressly superseded and revoked by
this Agreement.  The provisions hereof may not be altered, amended, modified, waived, or discharged in any way
whatsoever, except by written agreement executed by Executive and Bank.  No waiver shall be deemed a continuing
waiver or a waiver of any subsequent breach or default, either of a similar or different nature, unless expressly so
stated in writing.

             9.             Governing Law.  This Agreement shall be construed and enforced in accordance
with, and all questions concerning the construction, validity, interpretation and performance of
this Agreement shall be governed by, the laws of the State of California, without giving effect to
provision thereof regarding conflict of laws.

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             10.            Counterparts.  This Agreement may be executed in multiple original counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument.

             11.            Prior Agreements.  Executive represents that his service as an employee of Bank
will not violate any agreement:  (i) he has made that prohibits him from disclosing any information he
acquired prior to his becoming employed by Bank; or (ii) he had made that prohibits him from accepting
employment with Bank or that will interfere with his compliance with the terms of this Agreement.  Executive
further represents that he has not previously, and will not in the future, disclose to Bank any proprietary information
or trade secrets belonging to any previous employer.  Executive acknowledges that Bank has instructed him not to
disclose to it any proprietary information or trade secrets belonging to any previous employer.

             12.            Voluntary Agreement.  The Parties acknowledge that each has carefully read this
agreement, that each has had an opportunity to consult with his or its attorney concerning the
meaning, import and legal significance of this Agreement, that each understands its terms, that all
understandings and agreements between Executive and Bank relating to the subjects covered in
this Agreement are contained in it, and that each has entered into the Agreement voluntarily and
not in reliance on any promises or representations by the other than those contained in this
Agreement.

             13.            Restrictions Upon Funding.  The Bank shall have no obligation to set aside,
earmark or entrust any fund or money with which to pay its obligations under this Agreement.
The Executive or any successor-in-interest to Executive shall be and remain simply a general
creditor of the Bank in the same manner as any other creditor having a general unsecured claim.
For purposes of the Code, the Bank intends this Agreement to be an unfunded, unsecured
promise to pay on the part of the Bank.  For purposes of Employee Retirement Income Security
Act of 1974, as amended ("ERISA"), the Bank intends that this Agreement not be subject to ERISA.  If it is
deemed subject to ERISA, it is intended to be an unfunded arrangement for the benefit of a select member of
management, who is a highly compensated employee of the Bank for the purpose of qualifying this Agreement for
the "top hat" plan exception under sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.  At no time shall the
Executive have or be deemed to have any lien nor right, title or interest in or to any specific investment or to any
assets of the Bank.  If the Bank elects to invest in a life insurance, disability or annuity policy upon the life of
Executive, the Executive shall assist the Bank by freely submitting to a physical examination and supplying such
additional information necessary to obtain such insurance or annuities.

             14.            Interpretation.  When a reference is made in this Agreement to a Section, such
reference shall be to a Section of this Agreement unless otherwise indicated.  The headings
contained in this Agreement are for convenience of reference only and shall not affect in any way
the meaning or interpretation of this Agreement.  Whenever the words "include", "includes" or
"including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation."  The
words "hereof", "herein" and "hereunder" and words of similar import when used in this Agreement shall refer to
this Agreement as a whole and not to any particular provision in this Agreement.  Each use herein of the masculine,
neuter or feminine gender shall be deemed to include the other genders.  Each use herein of the plural shall include
the singular and vice versa, in each case as the context requires or as is otherwise appropriate.  The word "or"

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is used in the inclusive sense.  Any agreement or instrument defined or referred to herein or in any agreement or
instrument that is referred to herein means such agreement or instrument as from time to time amended, modified or
supplemented, including by waiver or consent.  References to a person are also to its permitted successors or
assigns.

             IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first written above, to be effective as of the Effective Date.

	EXECUTIVE:		/s/ David L. Adams

David L. Adams

24635 Priscilla Drive

Dana Point, CA 92629
	 

	BANK:		PACIFIC COAST NATIONAL BANK

(A wholly owned subsidiary of Pacific Coast

National Bancorp)
	 

			By:	/s/ Dennis C. Lindeman

Dennis C. Lindeman

Chairman of the Board

/s/ Colin M. Forkner

Colin M. Forkner

Vice Chairman & Chief Executive Officer

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6

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