Document:

EX-10.3

 Exhibit 10.3 

TRICO BANCSHARES 

PERFORMANCE AWARD GRANT NOTICE 
 TriCo
Bancshares, a California corporation (the “Company”), pursuant to its 2009 Equity Incentive Plan (the “Plan”), hereby grants to the holder listed below (the “Participant” or
“you”), a Performance Award (the “Award”). Such award shall be comprised of Performance Share Units (the “Units” or “PSUs”), each of which
is a right to receive the value of one (1) share of Stock, on the terms and conditions set forth herein and in the Performance Award Agreement attached hereto (the “Award Agreement”) and the Plan, which are incorporated
herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Award Agreement. 
  

					
	Participant:	  	  
	  	
			
	Grant Date:	  	  
	  	
		
	Target Number of Units:	  	            , subject to adjustment as provided by the Award Agreement.
		
	Maximum Number of Units:	  	                , which is 150% of the Target Number of Units, subject to adjustment as provided by the Award Agreement.
		
	Performance Period:	  	Three years beginning August 11, 2014 and ending August 10, 2017, subject to Sections 7.1 and 7.2 of the Award Agreement.
		
	Performance Measure:	  	The difference, measured in percentage points, for the Performance Period between the Company Total Stockholder Return and the Benchmark Index Total Return, both determined in accordance with Section 2.2 of the
Award Agreement.
		
	Benchmark Index:	  	The KBW Regional Banking Index (Ticker Symbol ^KRX)
		
	Relative Return Factor:	  	A percentage (rounded to the nearest 1/10th of 1% and not greater than 150% or less than 0%) equal to the sum of 100% plus the product of 2 multiplied by the difference (whether positive or negative) equal to
(i) the Company Total Stockholder Return minus (ii) the Benchmark Index Total Return, as illustrated by Appendix A.
		
	Vesting Date:	  	Within 45 days following the completion of the Performance Period, August 10, 2017, except as otherwise provided by the Award Agreement.
		
	Vested Units:	  	Provided that the Participant has not Terminated Employment prior to the Vesting Date (except as otherwise provided by the Award Agreement), the number of Vested Units, if any (not to exceed the Maximum Number of Units),
shall equal the product of (i) the Target Number of Units and (ii) the Relative Return Factor, as illustrated by Appendix A.
		
	Settlement Date:	  	For each Vested Unit, except as otherwise provided by the Award Agreement, a date occurring no later than the 30th day following the Vesting Date.

 By his or her signature below or by electronic acceptance or authentication in a form authorized by the Company,
the Participant agrees to be bound by the terms and conditions of the Plan, the Award Agreement and the Grant Notice. The Participant has reviewed and fully understands all provisions of the Plan, the Award Agreement, and the Grant Notice in their
entirety and has had an opportunity to obtain the advice of counsel prior to executing below. The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under
the Plan, the Award Agreement, the Grant Notice or relating to the Units. 
  

									
	TRICO BANCSHARES	  		  	PARTICIPANT
					
	By:	  	  
	  		  	By:	  	  

	Name:	  	  
	  		  	Print	  	  

		  		  		  	Name:	  	
	Title:	  	  
	  		  		  	
	Address:	  	63 Constitution Drive	  		  	Address:	  	  

		  	Chico, CA 95973	  		  		  	  

  

			
	ATTACHMENTS:	  	TriCo Bancshares 2009 Equity Incentive Plan, as amended; Performance Award Agreement. The prospectus for the Plan prepared in connection with the registration with the Securities and Exchange Commission of the shares issuable
pursuant to the Award is available on the Securities and Exchange website at www.sec.gov.

  
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 TRICO BANCSHARES 

PERFORMANCE AWARD AGREEMENT 
 TriCo
Bancshares (the “Company”) has granted to the Participant named in the Performance Award Grant Notice (the “Grant Notice”), to which this Performance Award Agreement (this
“Award Agreement”) is attached, an Award consisting of Performance Share Units (the “Units” or “PSUs”) subject to the terms and conditions set forth
in the Grant Notice and this Award Agreement. This Award has been granted pursuant to the TriCo Bancshares 2009 Equity Incentive Plan (the “Plan”), as amended, the provisions of which are incorporated herein by
reference. 
 Unless otherwise defined herein or in the Grant Notice, capitalized terms shall have the meanings assigned under the Plan. 

1. THE AWARD. 

The Company hereby awards to the Participant the Target Number of Units set forth in the Grant Notice, which, depending on the extent to which
a Performance Goal (as described by Plan) is attained during the Performance Period, may result in the Participant earning as little as zero (0) Units or as many as the Maximum Number of Units. Subject to the terms of this Award Agreement and
the Plan, each Unit, to the extent it is earned and becomes a Vested Unit, represents a right to receive on the Settlement Date one (1) share of Stock or, at the discretion of the Committee, the Fair Market Value thereof in cash. Unless and
until a Unit has vested and become a Vested Unit as set forth in the Grant Notice, the Participant will have no right to settlement of such Units. Prior to settlement of any earned and vested Units, such Units will represent an unfunded and
unsecured obligation of the Company. 
 2. PERFORMANCE MEASUREMENT. 

2.1 Level of Performance Measure Attained. As soon as practicable following completion of the Performance Period, but in any
event no later than the Vesting Date, the Committee shall certify in writing the level of attainment of the Performance Measure during the Performance Period, the resulting Relative Return Factor and the number of Units which have become Vested
Units. 
 2.2 Components of Performance Measure. The components of Performance Measure shall be determined for the Performance Period
in accordance with the following: 
 (a) “Company Total Stockholder Return” means the percentage point
increase or decrease in (i) the Average Per Share Closing Price for the 30 trading day period ending on the last day of the Performance Period over (ii) the Average Per Share Closing Price for the 30 trading day period ending on the first
day of the Performance Period. 

  
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 (b) “Average Per Share Closing Price” means the average of the daily
closing prices per share of Stock as reported on the Nasdaq Stock Market for all trading days falling within an applicable 30 trading day period described in (a) above. The Average Per Share Closing Price shall be adjusted in each case to
reflect an assumed reinvestment, as of the of applicable ex-dividend date, of all cash dividends and other cash distributions (excluding cash distributions resulting from share repurchases or redemptions by the Company) paid to stockholders during
the 30 trading day period ending on the first day of the Performance Period and during the Performance Period. 
 (c) “Benchmark
Index Total Return” means the percentage point increase or decrease in (i) the Average Closing Index Value for the 30 trading day period ending on the last day of the Performance Period over (ii) the Average Closing Index
Value for the 30 trading day period ending on the first day of the Performance Period. 
 (d) “Average Closing Index
Value” means the average of the daily closing index values of the Benchmark Index for all trading days falling within an applicable 30 trading day period described in (c) above. 

3. VESTING. 

3.1 Normal Vesting. Except as otherwise provided by this Award Agreement, Units shall vest and become Vested Units as provided in the
Grant Notice. 
 3.2 Vesting Upon a Change in Control. In the event of a Change in Control, vesting shall be determined in accordance
with Section 7.1. 
 3.3 Vesting Upon Involuntary Termination Following a Change in Control. In the event that upon or within
twelve (12) months following the effective date of a Change in Control, the Participant’s employment terminates due to Involuntary Termination, then vesting shall be determined in accordance with Section 7.2. 

3.4 No Vesting on Termination of Employment. In the event that a Participant’s employment with the Company terminates for any
reason prior to the Vesting Date, with or without Cause, other than as described in Section 3.2 or 3.3, the Participant shall forfeit and the Company shall automatically reacquire all Units which are not, as of the time of such termination,
Vested Units, and the Participant shall not be entitled to any payment therefor. 
 3.5 Definitions. The following terms shall have
the meanings set forth below: 
 (a) “Termination of Employment” means that the Participant’s employment with
the Company is terminated and the Participant actually separates from service with the Company and does not continue in his or her prior capacity. Termination of Employment does not include the Participant’s military leave, sick leave or other
bona fide leave of absence (such as temporary employment with the government) if the period of leave does not exceed six months, or if longer, so long as his right to reemployment with the Company is provided either in contract or by statute.
Notwithstanding the foregoing, Participant’s employment shall be deemed to have terminated, and Participant shall have suffered an Employment Termination, when the Parties reasonably anticipate that Participant will have a permanent reduction
in the level of bona fide services provided to the Company, to a level of service that is less than fifty percent (50%) of the average level of bona fide services provided by Participant to the Company in the immediately preceding thirty-six
(36) month period. Notwithstanding anything to the contrary, the term “Termination of Employment” shall be construed in accordance with Code Section 409A, together with regulations and guidance promulgated
thereunder, as amended from time to time. 

  
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 (b) “Involuntary Termination” means that a Participant’s employment
is terminated by the Company without Cause or by the Participant for “Good Reason”. 
 (c) Termination of Employment for
“Cause” means Termination of Employment of the Participant by reason of any of the following: 
 (i) A termination
“for cause”, as such term may be defined in any written employment agreement entered into by and between the Company and the Participant; 

(ii) A material breach of Participant’s written employment agreement entered into by and between the Company and the Participant; 

(iii) A material violation of any written policies or procedures of Company; 

(iv) A breach of duty of loyalty to the Company; 

(v) Participant engages in any activity that brings disrepute or discredit on Company; 

(vi) Participant commits any act which is unlawful or materially detrimental to the business and affairs of Company; 

(vii) The Participant commits any act of fraud, theft or embezzlement or other abuse of the property, information or funds of Company; or 

(viii) The Participant is convicted of any felony or a crime involving deceit, moral turpitude or fraud. 

(d) A Participant’s Termination of Employment for “Good Reason” means Participant experiences any of the following: 

(i) a material diminution in the Participant’s base compensation; 

(ii) a material diminution in the Participant’s authority, duties, or responsibilities; 

  
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 (iii) a material diminution in the authority, duties, or responsibilities of the supervisor to
whom the Participant is required to report, including a requirement that a Participant report to a corporate officer or employee instead of reporting directly to the board of directors of a corporation (or similar entity with respect to an entity
other than a corporation); 
 (iv) a material diminution in the budget over which the Participant retains authority; 

(v) a material change in geographic location at which the Participant must perform the services; or 

(vi) any other action or inaction that constitutes a material breach of the terms of an applicable employment agreement. 

4. SETTLEMENT OF THE AWARD. 

4.1 Issuance of Shares of Common Stock or Cash Equivalent. Subject to the provisions of Section 4.3 and
Section 5 below, the Company shall issue to the Participant on the Settlement Date with respect to each Vested Unit to be settled on such date one (1) share of Stock. Shares issued in settlement of Vested Units shall not be subject to any
restriction on transfer other than any such restriction as may be required pursuant to Section 4.3. At the discretion of the Committee, payment with respect to all or any portion of the Vested Units may be made in a lump sum cash payment in an
amount equal to the Fair Market Value, determined as of the Settlement Date, of the shares of Stock or other securities or property otherwise issuable in settlement of such Vested Units. 

4.2 Beneficial Ownership of Shares; Certificate Registration. The Participant hereby authorizes the Company, in its
sole discretion, to deposit for the benefit of the Participant with a Company-designated brokerage firm or, at the Company’s discretion, any other broker with which the Participant has an account relationship of which the Company has notice any
or all shares acquired by the Participant pursuant to the settlement of the Award. Except as provided by the preceding sentence, a certificate for the shares as to which the Award is settled shall be registered in the name of the Participant, or, if
applicable, in the names of the Participant’s Heirs. 

  
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 4.3 Restrictions on Grant of the Award and Issuance of Shares. The
grant of the Award and issuance of shares of Stock upon settlement of the Award shall be subject to compliance with all applicable requirements of U.S. federal or state law with respect to such securities. No shares may be issued hereunder if the
issuance of such shares would constitute a violation of any applicable U.S. federal or state securities laws or other laws or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed. The
inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance of any shares subject to the Award shall relieve the Company of
any liability in respect of the failure to issue such shares as to which such requisite authority shall not have been obtained. As a condition to the settlement of the Award, the Company may require the Participant to satisfy any qualifications that
may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. Further, regardless of whether the transfer or issuance
of the shares to be issued pursuant to the Units has been registered under the Securities Act or has been registered or qualified under the securities laws of any State, the Company may impose additional restrictions upon the sale, pledge, or other
transfer of the shares (including the placement of appropriate legends on stock certificates and the issuance of stop-transfer instructions to the Company’s transfer agent) if, in the judgment of the Company and the Company’s counsel, such
restrictions are necessary in order to achieve compliance with the provisions of the Securities Act, the securities laws of any State, or any other law. 

4.4 Fractional Shares. The Company shall not be required to issue fractional shares upon the settlement of the Award. 

5. TAX WITHHOLDING AND ADVICE. 

5.1 In General. Subject to Section 5.2, at the time the Grant Notice is executed, or at any time thereafter as requested by the
Company, the Participant hereby authorizes withholding from payroll and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for, any sums required to satisfy the U.S. federal, state, and local taxes required
by law to be withheld with respect to any taxable event arising as a result of the Participant’s participation in the Plan (referred to herein as “Tax-Related Items”). 

5.2 Withholding of Taxes. The Company or any Affiliate, as appropriate, shall have the authority and the right to deduct or withhold, or
require the Participant to remit an amount sufficient to satisfy applicable Tax-Related Items or to take such other action as may be reasonably necessary to satisfy such Tax-Related Items. In this regard, the Participant authorizes the Company and
any Affiliate, or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following: 

(a) withholding from the Participant’s wages or other cash compensation paid to the Participant; or 

(b) withholding from proceeds of the sale of shares acquired upon vesting and settlement of the Units, either through a voluntary sale or
through a mandatory sale arranged by the Company (on the Participant’s behalf pursuant to this authorization); or 
 (c) withholding in
shares to be issued upon vesting and settlement of the Units; or 
 (d) direct payment from the Participant. 

  
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 To avoid negative accounting treatment, the Company may withhold or account for Tax-Related Items by considering
applicable minimum statutory withholding amounts or other applicable withholding rates. The Company does not have any duty or obligation to minimize the Participant’s liability for Tax-Related Items arising from the Award, and, will not be
liable to the Participant for any Tax-Related Items arising in connection with the Award. Finally, the Participant shall pay any amount of Tax-Related Items that the Company or any Affiliate may be required to withhold as a result of his or her
participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the shares that may be issued in connection with the settlement of the Units if the Participant fails to comply with his
or her Tax-Related Items obligations. 
 5.3 Tax Advice. The Participant represents, warrants and acknowledges that the Company has
made no warranties or representations to the Participant with respect to the income tax consequences of the transactions contemplated by this Award Agreement, and the Participant is in no manner relying on the Company or the Company’s
representatives for an assessment of such tax consequences. THE PARTICIPANT UNDERSTANDS THAT THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE PARTICIPANT SHOULD CONSULT HIS OR HER OWN TAX ADVISOR REGARDING THE UNITS. NOTHING STATED HEREIN IS
INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING TAXPAYER PENALTIES. 
 6. AUTHORIZATION
TO RELEASE NECESSARY PERSONAL INFORMATION. 

The Participant hereby authorizes and directs the Participant’s employer to collect, use and transfer in electronic or other form, any
personal information (the “Data”), the nature and amount of the Participant’s compensation and the fact and conditions of the Participant’s participation in the Plan (including, but not limited to, the
Participant’s name, home address, telephone number, date of birth, social security number, salary, job title, number of shares held and the details of all Units or any other entitlement to shares awarded, cancelled, exercised, vested, unvested
or outstanding) for the purpose of implementing, administering and managing the Participant’s participation in the Plan. The Participant understands that the Data may be transferred to the Company or any Affiliate, or to any third parties
assisting in the implementation, administration and management of the Plan, including any requisite transfer to a brokerage firm or other third party assisting with administration of the Award or with whom shares acquired upon settlement of this
Award or cash from the sale of such shares may be deposited. Furthermore, the Participant acknowledges and understands that the transfer of the Data to the Company or any Affiliate, or to any third parties is necessary for Participant’s
participation in the Plan. The Participant may at any time withdraw the consents herein, by contacting the Company’s stock administration department in writing. The Participant further acknowledges that withdrawal of consent may affect the
Participant’s ability to realize benefits from the Award, and the Participant’s ability to participate in the Plan. 
 7.
CHANGE IN CONTROL. 
 In the event
of a Change in Control, this Section 7 shall determine the treatment of the Units which have not otherwise become Vested Units. 

  
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 7.1 Effect of Change in Control on Award. In the event of a Change in Control, the
Performance Period shall end on the day immediately preceding the Change in Control (the “Adjusted Performance Period”). The number and vesting of Units shall be determined for the Adjusted Performance Period in accordance
with the following: 
 (a) Vested Units. In the Committee’s determination of the number of Vested Units for the Adjusted
Performance Period, the following modifications shall be made to the components of the Relative Return Factor: 
 (i) The Company Total
Stockholder Return shall be determined as provided by Section 2.2, except that the Average Per Share Closing Price for the thirty (30) trading day period ending on the last day of the Adjusted Performance Period shall be replaced with the
price per share of Stock to be paid to the holder thereof in accordance with the definitive agreement governing the transaction constituting the Change in Control (or, in the absence of such agreement, the closing price per share of Stock as
reported on the Nasdaq Stock Market for the last trading day of the Adjusted Performance Period), adjusted to reflect an assumed reinvestment, as of the applicable ex-dividend date, of all cash dividends and other cash distributions (excluding cash
distributions resulting from share repurchases or redemptions by the Company) paid to stockholders during the Adjusted Performance Period, as illustrated in Section 2.2. 

(ii) The Benchmark Index Total Return shall be determined as provided by Section 2.2, except that for the purposes of clause
(a) thereof, the Average Closing Index Value shall be determined for the 30 trading day period ending on the last day of the Adjusted Performance Period. 

(b) Vested Units. As of the last day of the Adjusted Performance Period and provided that the Participant has not Terminated Employment
prior to such date, a portion of the Units determined in accordance with Section 7.1(a) shall become Vested Units (the “Accelerated Units”), with such portion determined by multiplying the
total number of Units by a fraction, the numerator of which equals the number of days contained in the Adjusted Performance Period and the denominator of which equals the number of days contained in the original Performance Period determined without
regard to this Section. The Accelerated Units shall be settled in accordance Section 6 immediately prior to the consummation of the Change in Control. Except as otherwise provided by Section 7.2, that portion of the Units determined in
accordance with Section 7.1(a) in excess of the number of Accelerated Units shall become Vested Units on the Vesting Date of the original Performance Period determined without regard to this Section, provided that the Participant has not
Terminated Employment prior to such Vesting Date. Such Vested Units shall be settled on the Settlement Date in accordance with Section 4, provided that payment for each Vested Unit shall be made in the amount and in the form of the
consideration (whether stock, cash, other securities or property or a combination thereof) to which a holder of a share of Stock on the effective date of the Change in Control was entitled (and if holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding shares of Stock). 

  
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 7.2 Involuntary Termination Following Change in Control. In the event that upon or
within twelve (12) months following the effective date of the Change in Control, the Participant’s employment terminates due to Involuntary Termination, the Units determined in accordance with Section 7.1(a) in excess of the number of
Accelerated Units shall be deemed Vested Units effective as of the date of the Participant’s Involuntary Termination and shall be settled in accordance with Section 4, treating the date of the Participant’s Termination of Employment
as the Vesting Date, provided that payment for each Vested Unit shall be made in the amount and in the form of the consideration (whether stock, cash, other securities or property or a combination thereof) to which a holder of a share of Stock on
the effective date of the Change in Control was entitled (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Stock). 

7.3 Internal Revenue Code Section 280G. Notwithstanding any provision of this Agreement to the contrary, in the event that
it would be more likely than not that all or a portion of any benefit payment under this Award Agreement, alone or together with any other compensation or benefit payable to Participant, will be a non-deductible expense to the Company by reason of
Code Section 280G, the Company shall reduce, but not less that zero, the benefits payable under this Award Agreement or the Plan as necessary to avoid the application of Section 280G. 

8. ADJUSTMENTS FOR CHANGES IN CAPITAL
STRUCTURE. 
 The number of Units awarded pursuant to this Award Agreement is subject to adjustment as
provided in Section 11(a) of the Plan. Upon the occurrence of an event described in Plan Section 11(a), any and all new, substituted or additional securities or other property to which a holder of a share issuable in settlement of the
Award would be entitled shall be immediately subject to the Award Agreement and included within the meaning of the terms “shares” and “Stock” for all purposes of the Award. The Participant shall be notified of such adjustments
and such adjustments shall be binding upon the Company and the Participant. 
 9. NO ENTITLEMENT
OR CLAIMS FOR COMPENSATION. 
 9.1 The
Participant’s rights, if any, in respect of or in connection with the Units are derived solely from the discretionary decision of the Company to permit the Participant to participate in the Plan and to benefit from a discretionary Award. By
accepting the Units, the Participant expressly acknowledges that there is no obligation on the part of the Company to continue the Plan and/or grant any additional Units or other Awards to the Participant. The Units are not intended to be
compensation of a continuing or recurring nature, or part of the Participant’s normal or expected compensation, and in no way represents any portion of the Participant’s salary, compensation, or other remuneration for purposes of pension
benefits, severance, redundancy, resignation or any other purpose. 
 9.2 Neither the Plan nor the Units shall be deemed to give the
Participant a right to remain an Employee, Director or Consultant of the Company or any Affiliate. The Company reserves the right to terminate the employment of the Participant at any time, with or without cause, and for any reason, subject to
applicable laws, the Company’s Certificate of Incorporation and Bylaws and written employment agreement (if any), and the Participant shall be deemed irrevocably to have waived any claim to damages or specific performance for breach of contract
or dismissal, compensation for loss of office, tort or otherwise with respect to the Plan, this Award, Units or any other outstanding Award that is forfeited and/or is terminated by its terms or to any future Award. 

  
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 10. RIGHTS AS A
STOCKHOLDER. 
 The Participant shall have no rights as a stockholder with respect to any shares of
Common Stock which may be issued in settlement of this Award until the date of the issuance of a certificate for such shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).
No adjustment shall be made for dividends, dividend equivalents, distributions or other rights for which the record date is prior to the date such certificate is issued, except as provided in Section 8. 

11. MISCELLANEOUS PROVISIONS. 

11.1 Amendment. The Committee may amend this Award Agreement at any time; provided, however, that no such amendment may adversely
affect the Participant’s rights under this Award Agreement without the consent of the Participant, except to the extent such amendment is necessary to comply with applicable law, including, but not limited to, Code Section 409A. No
amendment or addition to this Award Agreement shall be effective unless in writing and signed by the parties to this Award Agreement. 

11.2 Nontransferability of the Award. Prior to the issuance of shares on the applicable Settlement Date, no right or interest of
the Participant in the Award nor any shares issuable on settlement of the Award shall be in any manner pledged, encumbered, or hypothecated to or in favor of any party other than the Company or shall become subject to any lien, obligation, or
liability of such Participant to any other party other than the Company. Except as otherwise provided by the Committee, no Award shall be assigned, transferred or otherwise disposed of other than by will or the laws of descent and distribution. All
rights with respect to the Award shall be exercisable during the Participant’s lifetime only by the Participant or the Participant’s guardian or legal representative. 

11.3 Further Instruments. The parties hereto agree to execute such further instruments and to take such further action as may
reasonably be necessary to carry out the intent of this Award Agreement. 
 11.4 Binding Effect. This Award Agreement shall
inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer set forth herein, be binding upon the Participant and the Participant’s heirs, executors, administrators, successors and assigns.

 11.5 Notices. Any notice required to be given or delivered to the Company under the terms of this Award Agreement shall be
in writing and addressed to the Company at its principal corporate offices. Any notice required to be given or delivered to the Participant shall be in writing and addressed to the Participant at the address maintained for the Participant in the
Company’s records or at the address of the local office of the Company or Affiliate at which the Participant works. 

  
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 11.6 Construction of Award Agreement. The Grant Notice, this Award Agreement, and
the Units evidenced hereby (i) are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan, and (ii) constitute the entire agreement between the Participant and the Company on the
subject matter hereof and supersede all proposals, written or oral, and all other communications between the parties related to the subject matter. All decisions of the Committee with respect to any question or issue arising under the Grant Notice,
this Award Agreement or the Plan shall be conclusive and binding on all persons having an interest in the Units. 
 11.7 Governing
Law. The interpretation, performance and enforcement of this Award Agreement shall be governed by the laws of the State of California, U.S.A. without regard to the conflict-of-laws rules thereof or of any other jurisdiction. 

11.8 Section 409A. 

(a) Compliance with Code Section 409A. It is intended that the Performance Share Units granted hereunder be exempt from or comply
with the requirements of Code Section 409A, so that none of the Units, or the resulting shares or compensation, if any, shall be subject to the additional tax imposed by Section 409A. The vesting and settlement of such Units are intended
to qualify for the “short-term deferral” exemption from Code Section 409A. Each installment of Units that vests is intended to constitute a “separate payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2).
As such, each eligible Vested Unit shall be settled, per the terms of the Plan, the Grant Notice and this Award Agreement, within the short-term deferral period, as defined in Code Section 409A, the applicable Treasury Regulations and related
guidance issued thereunder. Notwithstanding any other provision of the Plan, this Award Agreement, the Grant Notice or the Plan: 
 (i) The
Plan, this Agreement and the Grant Notice shall be interpreted in accordance with, and incorporate the terms and conditions required by, Code Section 409A and any Department of Treasury regulations and other applicable guidance issued
thereunder (including any regulations or guidance that may be issued after the date hereof), and any ambiguities herein shall be interpreted to so comply. 

(ii) The Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or
modify the Plan and/or this Award Agreement to ensure that the Units qualify for exemption from, comply with or otherwise avoid the imposition of any additional tax or income recognition under Code Section 409A; provided, however,
that the Company makes no representations that the Units will be exempt from Code Section 409A and makes no undertaking to preclude Code Section 409A from applying to the Units. 

  
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 (b) Separation from Service; Required Delay in Payment to Specified Employee.
Notwithstanding anything set forth herein to the contrary, no amount payable pursuant to this Agreement on account of the Participant’s Termination of Employment which constitutes a “deferral of compensation” within the meaning of
Code Section 409A shall be paid unless and until the Participant has incurred a “separation from service” within the meaning of Code Section 409A. Furthermore, to the extent that the Participant is a “Specified
Employee” within the meaning of Code Section 409A as of the date of the Participant’s separation from service, no amount that constitutes a deferral of compensation which is payable on account of the Participant’s separation from
service that would result in the imposition of additional tax under Code Section 409A if issued to Participant on or within the six (6) month period following Participant’s termination of an employment shall be paid to the Participant
before the date (the “Delayed Payment Date”) which is the first day of the seventh month after the date of the Participant’s separation from service or, if earlier, ten (10) days following the date of
the Participant’s death following such separation from service. All such amounts that would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date. 

11.9 Restrictions on Contracts and Payments for Insured Depository Institutions in Troubled Status. The parties acknowledge and agree
that while the restrictions contained in the Federal Deposit Insurance Act, Section 18(k) [12 U.S.C. §1828(k)], relating to contracts for and payment of executive compensation and benefits by insured depository institutions in
“troubled” condition, do not currently apply to the Company or the Participant, such provisions could apply in the future. In the event that any such restrictions or any contractual arrangement with or required by a regulatory authority
require the Company to seek or demand repayment or return of any payments made to the Participant under this Award Agreement and the Plan for any reason, the Participant agrees to repay to the Company the aggregate amount of such payments no later
than thirty (30) days following the Participant’s receipt of a written notice from the Company indicating that payments received by the Participant under this Award Agreement and the Plan are subject to recapture or clawback. 

11.10 Administration. The Committee shall have the power to interpret the Plan and this Award Agreement and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Committee in good faith shall be final
and binding upon the Participant, the Company and all other interested persons. No member of the Committee or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this
Award Agreement or the Units. 
 11.11 Counterparts. The Grant Notice may be executed in counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument. 
 11.12 Severability. If any
provision of this Award Agreement is held to be unenforceable for any reason, it shall be adjusted rather than voided, if possible, in order to achieve the intent of the parties to the extent possible. In any event, all other provisions of this
Award Agreement shall be deemed valid and enforceable to the full extent possible. 

  
 13 

 APPENDIX A 

ILLUSTRATION OF RELATIVE RETURN FACTOR AND RESULTING NUMBER OF VESTED UNITS 

 

									
	 Percentage Point Difference of

Company TSR Over/Under

Benchmark Index Total

Return
	  	Relative Return
Factor	 	 	Vested Units
(Per 1,000 Target
Units)	 
	 25 and Over
	  	 	150	% 	 	 	1,500	  
	 20
	  	 	140	% 	 	 	1,400	  
	 15
	  	 	130	% 	 	 	1,300	  
	 10
	  	 	120	% 	 	 	1,200	  
	 9
	  	 	118	% 	 	 	1,180	  
	 8
	  	 	116	% 	 	 	1,160	  
	 7
	  	 	114	% 	 	 	1,140	  
	 6
	  	 	112	% 	 	 	1,120	  
	 5
	  	 	110	% 	 	 	1,010	  
	 4
	  	 	108	% 	 	 	1,080	  
	 3
	  	 	106	% 	 	 	1,060	  
	 2
	  	 	104	% 	 	 	1,040	  
	 1
	  	 	102	% 	 	 	1,020	  
	 0
	  	 	100	% 	 	 	1,000	  
	 -1
	  	 	98	% 	 	 	980	  
	 -2
	  	 	96	% 	 	 	960	  
	 -3
	  	 	94	% 	 	 	940	  
	 -4
	  	 	92	% 	 	 	920	  
	 -5
	  	 	90	% 	 	 	900	  
	 -6
	  	 	88	% 	 	 	880	  
	 -7
	  	 	86	% 	 	 	860	  
	 -8
	  	 	84	% 	 	 	840	  
	 -9
	  	 	82	% 	 	 	820	  
	 -10
	  	 	80	% 	 	 	800	  
	 -15
	  	 	70	% 	 	 	700	  
	 -20
	  	 	60	% 	 	 	600	  
	 -25
	  	 	50	% 	 	 	500	  
	 -25 and less
	  	 	0	% 	 	 	0	  

  
 14 

 APPENDIX A (CONTINUED) 

ILLUSTRATIONS OF CALCULATION OF VESTED UNITS 

PER 1,000 TARGET UNITS 
 Company Total
Stockholder Return Exceeds Benchmark Index Total Return 
  

							
	 Assumptions:
	  		  			
	 Target Number of Units
	  		  	 	1000	  
	 TCBK:
	  		  			
	 Average Per Share Closing Price (beginning)
	  		  	$	25.00	  
	 Average Per Share Closing Price (ending)
	  		  	$	30.00	  
	 KBW Regional Banking Index:
	  		  			
	 Average Closing Index Value (beginning)
	  		  	$	80.00	  
	 Average Closing Index Value (ending)
	  		  	$	90.00	  
	 Computations:
	  		  			
	 Company Total Stockholder Return
	  	((30.00  / 25.00) - 1) x 100	  	 	20.0	% 
	 Benchmark Index Total Return
	  	((90.00  / 80.00) - 1) x 100	  	 	12.5	% 
	 Relative Return Factor
	  	100 + (2.0 x (20.0 – 12.5))	  	 	115.0	% 
	 Vested Units
	  	1,000 x 115.0%	  	 	1,150	  

  
 15 

 APPENDIX A (CONTINUED) 

ILLUSTRATIONS OF CALCULATION OF VESTED UNITS 

PER 1,000 TARGET UNITS 
 Company Total
Stockholder Return Is Less Than Benchmark Index Total Return 
  

							
	 Assumptions:
	  		  			
	 Target Number of Units
	  		  	 	1000	  
	 TCBK:
	  		  			
	 Average Per Share Closing Price (beginning)
	  		  	$	25.00	  
	 Average Per Share Closing Price (ending)
	  		  	$	30.00	  
	 KBW Regional Banking Index:
	  		  			
	 Average Closing Index Value (beginning)
	  		  	$	80.00	  
	 Average Closing Index Value (ending)
	  		  	$	80.00	  
	 Computations:
	  		  			
	 Company Total Stockholder Return
	  	((30.00  / 25.00) - 1) x 100	  	 	20.0	% 
	 Benchmark Index Total Return
	  	((100.00  / 80.00) - 1) x 100	  	 	25.0	% 
	 Relative Return Factor
	  	100 + (2.0 x (20.0 – 25.0)	  	 	90.0	% 
	 Vested Units
	  	1,000 x 90.0%	  	 	900	  

  
 16EX-10.4

 Exhibit 10.4 

TRICO BANCSHARES 

TRANSACTION BONUS AGREEMENT 

THIS TRANSACTION BONUS AGREEMENT (this “Agreement”) is made and entered into on and effective as of August 7, 2014, by and
between TriCo Bancshares, a California corporation (“TriCo”), and Richard P. Smith (“Executive”). 
 RECITALS

 WHEREAS, the Compensation Committee of the Board of Directors of TriCo (the “Committee”) has determined that
Executive, in his position as President and Chief Executive Officer of TriCo, has played and continues to play an instrumental role in the negotiation and completion of TriCo’s acquisition of North Valley Bancorp (“North Valley”) and
its subsidiary North Valley Bank by means of statutory mergers (collectively, the “Merger”) to be effected pursuant to an Agreement and Plan of Merger and Reorganization by and between TriCo and North Valley dated January 21, 2014
(the “Merger Agreement”), and that Executive will have increased duties and responsibilities as President and Chief Executive Officer of the combined businesses following the Merger; and 

WHEREAS, the Committee has determined that it is in the best interests of TriCo and its shareholders for Executive to be paid bonuses
for such services based upon the completion of the Merger and cost savings in the operation of the North Valley business following the Merger, and has authorized TriCo to enter into the bonus arrangements with Executive set forth in this
Agreement; 
 ACCORDINGLY, it is the desire of TriCo and Executive to enter into this Agreement under which TriCo will pay
Executive a bonus upon the completion of the Merger and an additional bonus based on cost savings in the operation of the North Valley business through the end of TriCo’s fiscal year ending December 31, 2015, subject to the terms and
conditions of this Agreement; 
 NOW, THEREFORE, in consideration of services previously performed and to be performed in the
future by Executive for TriCo as well as of the mutual promises and covenants herein contained, Executive and TriCo agree as follows: 

1. Merger Completion Bonus. Provided that Executive continues in employment with TriCo through the Effective Date of the Merger, TriCo
will pay to Executive a cash bonus in the amount of Two Hundred Twenty-Five Thousand Dollars ($225,000) (the “Transaction Bonus”) on TriCo’s next regular payroll date following such Effective Date, subject to the terms and conditions
of this Agreement. If Executive’s employment with TriCo terminates for any reason (including death, disability, by TriCo with or without Cause or by Executive for any reason) prior to the Effective Date of the Merger, or if the Merger does not
occur on or before December 31, 2014, Executive shall not earn and shall not receive a Transaction Bonus hereunder. 

 2. Performance Bonus. 

(a) Provided that Executive continues in employment with TriCo through the last day of TriCo’s fiscal year ending December 31, 2015,
TriCo will pay to Executive a cash bonus in the amount of Two Hundred Twenty-Five Thousand Dollars ($225,000) (the “Performance Bonus”) subject to TriCo achieving the cost savings set forth on Exhibit A hereto from the operation of
the North Valley business on or before the end of TriCo’s fiscal year ending December 31, 2015 (the “Performance Period”), subject to the terms and conditions of this Agreement. In the sole and absolute discretion of the
Committee, extraordinary cost items may be included in or excluded from the computation of such cost savings, and adjustments may be made to the cost savings target due to changes in business conditions, in order to prevent any unintended
enlargement or dilution of Executive’s rights under this Agreement. 
 (b) If Executive’s employment with TriCo terminates for any
reason (including death, disability, by TriCo with or without Cause or by Executive for any reason) prior to the last day of TriCo’s fiscal year ending December 31, 2015, Executive shall not earn and shall not receive a
Performance Bonus hereunder. 
 (c) TriCo shall pay the Performance Bonus in cash on or before March 15, 2016. 

3. Withholding and Employment Taxes. All amounts payable to Executive hereunder shall be subject to all federal, state, local and other
withholding and employment taxes as required by applicable law. 
 4. Termination. This Agreement shall terminate, and,
notwithstanding any other provision of this Agreement, no Transaction Bonus or Performance Bonus shall be earned or paid hereunder, upon the earlier of (i) termination of Executive’s employment with TriCo prior to the Effective Date of any
Merger, or (ii) December 31, 2014, if no Merger has occurred prior to such date. Additionally, this Agreement shall terminate (following the occurrence of a Merger and payment in full of any Transaction Bonus earned), and, notwithstanding
any other provision of this Agreement, no Performance Bonus shall be earned or paid hereunder upon termination of Executive’s employment with TriCo for any reason prior to December 31, 2015. 

5. No Right to Continued Employment. Although this Agreement is intended to provide Executive with additional incentives to remain in
the employ of TriCo, this Agreement shall not be deemed to constitute a contract of employment between Executive and TriCo nor shall any provision of this Agreement restrict the right of TriCo to terminate Executive’s employment or restrict the
right of Executive to terminate employment. Executive’s employment with TriCo shall continue to governed by the terms and conditions of the Amended Employment Agreement between TriCo and Executive dated March 28, 2013, as such Amended
Employment Agreement may be amended from time to time by the parties (the “Employment Agreement”). 
 6. Assignment
Prohibited. Executive shall have no power or right to transfer, assign, anticipate, hypothecate, mortgage, commute, modify or otherwise encumber in advance any Transaction Bonus or Performance Bonus payable hereunder. In the event Executive
attempts assignment, commutation, hypothecation, transfer or disposal of all or any portion of any Transaction Bonus or Performance Bonus payable hereunder, such attempted assignment, commutation, hypothecation, transfer or disposal of any
Transaction Bonus or Performance Bonus shall be void, and TriCo shall have no obligation to make payment of such Transaction Bonus or Performance Bonus pursuant to this Agreement. 

  
 2 

 7. Successors. This Agreement shall inure to the benefit of, and be enforceable by, TriCo
and its successors and assigns and Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 

8. Notices. All notices and other communications of any kind that either Executive or TriCo may be required or may desire to serve on
the other party hereto in connection with this Agreement shall be in writing and shall be delivered in accordance with the provisions of Section 9 of the Employment Agreement. 

9. Arbitration of Claims. All claims, disputes and other matters in question arising out of or relating to this Agreement or the breach
or interpretation thereof shall be resolved by binding arbitration under the California Arbitration Act in accordance with the provisions of Section 13 of the Employment Agreement, including but not limited to such provisions pertaining to
venue, costs and attorneys’ fees, and entry of judgment upon an arbitration award in any court of competent jurisdiction. 
 10.
Headings. The captions and headings in this Agreement are included for ease of reference only and will be disregarded in interpreting or construing this Agreement. 

11. Amendment. This Agreement may be amended or revoked only with the mutual written consent of Executive and TriCo. 

12. Severability. If an arbitrator, court or other body of competent jurisdiction determines that any provision of this Agreement is
invalid or unenforceable, that provision will be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, or, if it is not possible to so adjust such provision, this Agreement shall be construed in all
respects as if such invalid or unenforceable provision were omitted. The invalidity and unenforceability of any particular provision of this Agreement shall not affect any other provision hereof, and all other provisions of the Agreement shall be
valid and enforceable to the fullest extent possible. 
 13. Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of California as such laws are applied to agreements between California residents entered into and to be performed entirely within California, without regard or reference to the rules of conflicts of
law that would require the application of the laws of any other jurisdiction. 
 14. Entire Agreement. This Agreement, together with
applicable provisions of the Employment Agreement, is the complete agreement of the parties on the subject set forth herein. This Agreement, together with the Employment Agreement, supersedes any prior or contemporaneous oral or written agreement or
understanding on such subject. No party is relying on any representations, oral or written, on the subject of the effect, enforceability, or meaning of this Agreement, except as specifically set forth in this Agreement. 

  
 3 

 15. Opportunity To Consult With Own Advisors. Executive acknowledges that he has been
afforded the opportunity to consult with independent advisors of his own choosing, including, without limitation, legal counsel, accountants and tax advisors, regarding (i) the Transaction Bonus and Performance Bonus available to Executive
under the terms of this Agreement, (ii) the terms and conditions which may affect the amount of and Executive’s right to any Transaction Bonus or Performance Bonus, and (iii) the personal tax effects of any Transaction Bonus or
Performance Bonus payable to Executive under the terms of this Agreement, including, without limitation, the effects of any federal or state taxes, Sections 280G and 409A of the Code, and any other taxes, costs, expenses or liabilities whatsoever
related to any Transaction Bonus or Performance Bonus, which in any of the foregoing instances Executive acknowledges and agrees shall be the sole responsibility of Executive notwithstanding any other term or provision of this Agreement. Executive
further acknowledges and agrees that TriCo shall have no liability whatsoever related to any such personal tax effects or other personal costs, expenses, or liabilities applicable to Executive and further specifically waives any right for Executive
and his or her heirs, beneficiaries, legal representatives, agents, successors, and assigns to claim or assert liability on the part of TriCo related to the matters described above in this section. Executive further acknowledges and agrees that
Executive has read, understands and consents to all of the terms and conditions of this Agreement, and that Executive enters into this Agreement with a full understanding of its terms and conditions. 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, effective as of the date set forth in the first paragraph hereof.

  

									
	TRICO BANCSHARES	 		 		 	EMPLOYEE
					
	 By
	 	 /s/ William J. Casey
	 		 		 	 /s/ Richard P. Smith

		 	 William J. Casey

Chairman
	 		 		 	Richard P. Smith
			
	 Address of TriCo:
	 		 	Address of Employee:
			
	 63 Constitution Drive
	 		 	_____________________
	 Chico, California 95973
	 		 	_____________________

  
 4 

 EXHIBIT A 

PERFORMANCE BONUS CRITERIA AND FORMULA 

Performance Bonus is to be paid if and only if Noninterest Expense cost savings of $14.543 million or more are achieved in the operation of the North Valley
business during the Performance Period from the current annual run rate of such Noninterest Expenses, which is $36.144 million. Such current annual run rate and projected cost savings of such Noninterest Expenses are set forth in the Pro Forma
Income Statement for Cost and Revenue Synergies attached hereto. 

  
 5

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