Document:

EXHIBIT 10.27

                              AMENDED AND RESTATED
                           TEMECULA VALLEY BANK, N.A.
                          SALARY CONTINUATION AGREEMENT

     THIS AGREEMENT is adopted this 30th day of September, 2004, by and between
the TEMECULA VALLEY BANK, N.A., a national banking association located in
Temecula, California (the "Company") and THOMAS M. SHEPHERD (the "Executive"),
amending, restating and replacing the Temecula Valley Bank, N.A., Salary
Continuation Agreement dated January 1, 2000, between the Company and the
Executive.

                                  INTRODUCTION

WITNESSETH:

     WHEREAS,  the  Executive  is in the employ of the  Company,  serving as its
Senior Vice President and Chief Credit Officer; and

     WHEREAS, the experience, knowledge of the affairs of the Company, and
reputation and contacts in the industry of the Executive are so valuable that
assurance of the Executive's continued service is essential for the future
growth and profits of the Company, and it is in the best interest of the Company
to arrange terms of continued employment for the Executive so as to reasonably
assure the Executive's remaining in the Company's employment during the
Executive's lifetime or until the age of retirement; and

     WHEREAS, it is the desire of the Company that the Executive's services be
retained as herein provided; and

     WHEREAS, the Executive is willing to continue in the employ of the Company
provided the Company agrees to pay to the Executive or the Executive's
beneficiaries certain benefits in accordance with the terms and conditions
hereinafter set forth.

     NOW, THEREFORE, in consideration of the services to be performed in the
future, as well as the mutual promises and covenants herein contained, it is
agreed as follows:

                                    Article 1
                                   Definitions

     Whenever used in this Agreement, the following words and phrases shall have
the meanings specified:

     1.1 "Change of Control" means that the Executive has been terminated within
12 months of: (1) a tender offer made and  consummated  for the ownership of 25%
or more of the outstanding  voting  securities of the Company;  (ii) a merger or
consolidation of the Company with another bank or corporation and as a result of
such merger or consolidation  less than 75% of the outstanding voting securities
of the surviving or resulting bank or  shareholders  of the Company,  other than
affiliates  (within the meaning of the  Securities  Exchange Act of 1934) of any
party  to  such  merger  or  consolidation,  as  the  same  shall  have  existed
immediately prior to such merger or consolidation, (iii) a sale of substantially
all of the Company's assets to another bank or corporation which is not a wholly
owned subsidiary;  or (iv) an acquisition of the Company by a person, within the
meaning of Section  3(a)(9)  or of  Section  13(d)(3)  (as in effect on the date
hereof)  of  the  Securities  Exchange  Act of  1934,  of  25%  or  more  of the
outstanding  voting  securities of the Company  (whether  directly,  indirectly,
beneficially or of record). For purposes hereof,  ownership of voting securities
shall take into account and shall  include  ownership as  determined by applying
the provisions of Rule 13d-3(d)(1)(I) (as in effect on the date hereof) pursuant
to the Securities Exchange Act of 1934.
<PAGE>

       1.2    "Code" means the Internal Revenue Code of 1986, as amended.

       1.3 "Disability" means the Executive suffering a sickness, accident or
injury which has been determined by the carrier of any individual or group
disability insurance policy covering the Executive, or by the Social Security
Administration, to be a disability rendering the Executive totally and
permanently disabled. The Executive must submit proof to the Company of the
carrier's or Social Security Administration's determination upon the request of
the Company.

       1.4 "Early Termination" means the Termination of Employment before Normal
Retirement Age for reasons other than death, Disability, Termination for Cause
or following a Change of Control.

       1.5 "Early Termination Date" means the month, day and year in which Early
Termination occurs.

       1.6    "Effective Date" means January 1, 2004.

       1.7    "Normal Retirement Age" means the Executive's 65th birthday.

       1.8 "Normal Retirement Date" means the later of the Normal Retirement Age
or Termination of Employment.

       1.9 "Plan Year" means a twelve-month period commencing on January 1 and
ending on December 31 of each year. The initial Plan Year shall commence on the
effective date of this Agreement.

       1.10   "Termination for Cause" See Section 5.1.

       1.11 "Termination of Employment" means that the Executive ceases to be
employed by the Company for any reason whatsoever other than by reason of a
leave of absence, which is approved by the Company. For purposes of this
Agreement, if there is a dispute over the employment status of the Executive or
the date of the Executive's Termination of Employment, the Company shall have
the sole and absolute right to determine the termination date.

                                       1
<PAGE>

                                    Article 2
                                Lifetime Benefits

       2.1 Normal Retirement Benefit. Upon Termination of Employment on or after
the Normal Retirement Age for reasons other than death, the Company shall pay to
the Executive the benefit described in this Section 2.1 in lieu of any other
benefit under this Agreement.

     2.1.1  Amount of  Benefit.  The annual  benefit  under this  Section 2.1 is
$60,000  (Sixty  Thousand  Dollars).  The Board of Directors may in its sole and
absolute discretion  unilaterally  increase the annual benefit amount at the end
of each Plan  Year from the date of this  Agreement  to the  Executive's  Normal
Retirement  Date. If the Board of Directors  increase this annual benefit,  then
the  Schedule A attached  hereto  shall also be  recalculated  to  increase  the
benefits under Article 2 of this Agreement.

     2.1.2 Payment of Benefit.  The Company shall pay the annual  benefit to the
Executive  in 12 equal  monthly  installments  payable  on the first day of each
month  commencing  with the month following the  Executive's  Normal  Retirement
Date. The Company shall pay this annual benefit to the Executive for 15 years.

     2.1.3 Benefit  Increases.  Commencing on the first anniversary of the first
benefit payment,  and continuing on each subsequent  anniversary,  the Company's
Board of Directors, in its sole discretion, may increase the benefit.

     2.2 Early Termination  Benefit.  Upon Early Termination,  the Company shall
pay to the  Executive  the benefit  described in this Section 2.2 in lieu of any
other benefit under this Agreement.

     2.2.1  Amount of Benefit.  The benefit  under this Section 2.2 is the Early
Termination  amount set forth in Schedule A for the Plan Year ending immediately
prior to the Early Termination Date,  determined by vesting the Executive in the
Accrual Balance.  However, the Executive shall not be entitled to any benefit if
he  voluntarily  terminates  his  employment  prior to the end of the fifth Plan
Year.  Any increase in the annual  benefit  under  Section 2.1 shall require the
recalculation of this benefit as set forth in Schedule A.

     2.2.2 Payment of Benefit.  The Company shall pay the annual  benefit amount
to the  Executive in 12 equal monthly  installments  payable on the first day of
each month  commencing with the month following the Normal  Retirement Date. The
Company shall pay this annual benefit to the Executive for 15 years.

     2.3  Disability  Benefit.  If the Executive  terminates  employment  due to
Disability  prior  to  Normal  Retirement  Age,  the  Company  shall  pay to the
Executive the benefit described in this Section 2.3 in lieu of any other benefit
under this Agreement.

     2.3.1  Amount  of  Benefit.  The  benefit  under  this  Section  2.3 is the
Disability  amount set forth in Schedule A for the Plan Year ending  immediately
prior to the date in which the Termination of Employment  occurs,  determined by
vesting the Executive in the Accrual Balance. Any increase in the annual benefit
under Section 2.1 shall require the  recalculation of this benefit amount as set
forth in Schedule A.

                                       2
<PAGE>

     2.3.2 Payment of Benefit.  The Company shall pay the annual  benefit amount
to the  Executive in 12 equal monthly  installments  payable on the first day of
each month  commencing with the month following  Termination of Employment.  The
Company shall pay this annual benefit to the Executive for 15 years.

       2.4 Change of Control Benefit. Upon a Change of Control, the Company
shall pay to the Executive the benefit described in this Section 2.4 in lieu of
any other benefit under this Agreement.

     2.4.1 Amount of Benefit.  The benefit  under this Section 2.4 is the Change
of Control Lump Sum set forth in Schedule A for the Plan Year ending immediately
prior to the date in which  Termination  of  Employment  occurs,  determined  by
vesting the Executive in the Accrual Balance. Any increase in the annual benefit
under Section 2.1 shall require the  recalculation  of this benefit as set forth
in Schedule A.

     2.4.2  Payment  of  Benefit.  The  company  shall  pay the  benefit  to the
Executive in a lump sum within 60 days following Termination of Employment.

                                    Article 3
                                 Death Benefits

      The Company shall not pay a death benefit under this Agreement. A death
benefit may be provided according to the terms of a separate Split Dollar
Agreement entered into by the Company and the Executive.

                                    Article 4
                                  Beneficiaries

       4.1 Beneficiary Designations. The Executive shall designate a beneficiary
by filing a written designation with the Company. The Executive may revoke or
modify the designation at any time by filing a new designation. However,
designations will only be effective if signed by the Executive and received by
the Company during the Executive's lifetime. The Executive's beneficiary
designation shall be deemed automatically revoked if the beneficiary predeceases
the Executive, or if the Executive names a spouse as beneficiary and the
marriage is subsequently dissolved. If the Executive dies without a valid
beneficiary designation, all payments shall be made to the Executive's estate.

       4.2 Facility of Payment. If a benefit is payable to a minor, to a person
declared incompetent, or to a person incapable of handling the disposition of
his or her property, the Company may pay such benefit to the guardian, legal
representative or person having the care or custody of such minor, incompetent
person or incapable person. The Company may require proof of incapacity,
minority or guardianship as it may deem appropriate prior to distribution of the
benefit. Such distribution shall completely discharge the Company from all
liability with respect to such benefit.

                                       3
<PAGE>

                                    Article 5
                               General Limitations

       5.1 Termination for Cause. Notwithstanding any provision of this
Agreement to the contrary, the Company shall not pay any benefit under this
Agreement if the Company terminates the Executive's employment for:

(a)    any act of embezzlement, fraud, breach of fiduciary duty or dishonesty;

(b)    deliberate or repeated disregard of the policies and rules of Company as
       adopted by Company's Board of Directors;

(c)    unauthorized use or disclosure of any of the trade secrets or
       confidential information of Company;

(d)    competition with Company, inducement of any customer of the Company to
       breach a contract with the Company, or inducement of any principal for
       whom the Company acts as agent to terminate such agency relationship;

(e)    gross negligence adversely impacting the Company; or

(f)    willful breach of this Agreement or any other willful misconduct.

       5.2 Competition After Termination of Employment. No benefits shall be
payable if the Executive, without the prior written consent of the Company,
engages in, becomes interested in, directly or indirectly, as a sole proprietor,
as a partner in a partnership, or as a substantial shareholder in a corporation,
or becomes associated with, in the capacity of employee, director, officer,
principal, agent, trustee or in any other capacity whatsoever, any enterprise
conducted in the trading area (a 50 mile radius) of the business of the Company
within 2 years of Termination of Employment, which enterprise is, or may deemed
to be, competitive with any business carried on by the Company as of the date of
termination of the Executive's employment or his retirement. This section shall
not apply following a Change of Control.

       5.3 Suicide or Misstatement. No benefits shall be payable if the
Executive commits suicide within two years after the date of this Agreement, or
if the Executive has made any material misstatement of fact on any application
for life insurance purchased by the Company.

                                    Article 6
                          Claims and Review Procedures

       6.1 Claims Procedure. Any person or entity who has not received benefits
under the Plan that he or she believes should be paid ("claimant") shall make a
claim for such benefits as follows:

              6.1.1 Initiation - Written Claim. The claimant initiates a claim
       by submitting to the Company a written claim for the benefits.

                                       4
<PAGE>

              6.1.2 Timing of Company Response. The Company shall respond to
       such claimant within 90 days after receiving the claim. If the Company
       determines that special circumstances require additional time for
       processing the claim, the Company can extend the response period by an
       additional 90 days by notifying the claimant in writing, prior to the end
       of the initial 90-day period, that an additional period is required. The
       notice of extension must set forth the special circumstances and the date
       by which the Company expects to render its decision.

              6.1.3 Notice of Decision. If the Company denies part or all of the
       claim, the Company shall notify the claimant in writing of such denial.
       The Company shall write the notification in a manner calculated to be
       understood by the claimant. The notification shall set forth:

               (a)  The specific reasons for the denial,

               (b)  A reference to the specific  provisions of the Plan on which
                    the denial is based,

               (c)  A  description  of any  additional  information  or material
                    necessary  for the  claimant  to  perfect  the  claim and an
                    explanation of why it is needed,

               (d)  An explanation of the Plan's review  procedures and the time
                    limits applicable to such procedures, and

               (e)  A statement of the claimant's  right to bring a civil action
                    under ERISA  Section  502(a)  following  an adverse  benefit
                    determination on review.

     6.2 Review  Procedure.  If the Company denies part or all of the claim, the
claimant shall have the opportunity for a full and fair review by the Company of
the denial, as follows:

              6.2.1 Initiation - Written Request. To initiate the review, the
       claimant, within 60 days after receiving the Company's notice of denial,
       must file with the Company a written request for review.

              6.2.2 Additional Submissions - Information Access. The claimant
       shall then have the opportunity to submit written comments, documents,
       records and other information relating to the claim. The Company shall
       also provide the claimant, upon request and free of charge, reasonable
       access to, and copies of, all documents, records and other information
       relevant (as defined in applicable ERISA regulations) to the claimant's
       claim for benefits.

              6.2.3 Considerations on Review. In considering the review, the
       Company shall take into account all materials and information the
       claimant submits relating to the claim, without regard to whether such
       information was submitted or considered in the initial benefit
       determination.

              6.2.4 Timing of Company Response. The Company shall respond in
       writing to such claimant within 60 days after receiving the request for
       review. If the Company determines that special circumstances require
       additional time for processing the claim, the Company can extend the
       response period by an additional 60 days by notifying the claimant in
       writing, prior to the end of the initial 60-day period, that an
       additional period is required. The notice of extension must set forth the
       special circumstances and the date by which the Company expects to render
       its decision.

                                       5
<PAGE>

              6.2.5 Notice of Decision. The Company shall notify the claimant in
       writing of its decision on review. The Company shall write the
       notification in a manner calculated to be understood by the claimant. The
       notification shall set forth:

               (a)  The specific reasons for the denial,

               (b)  A reference to the specific  provisions of the Plan on which
                    the denial is based,

               (c)  A statement  that the claimant is entitled to receive,  upon
                    request and free of charge, reasonable access to, and copies
                    of, all documents,  records and other  information  relevant
                    (as  defined  in  applicable   ERISA   regulations)  to  the
                    claimant's claim for benefits, and

               (d)  A statement of the claimant's  right to bring a civil action
                    under ERISA Section 502(a).

                                    Article 7
                           Amendments and Termination

       This Agreement may be amended or terminated only by a written agreement
signed by the Company and the Executive.

                                    Article 8
                                  Miscellaneous

     8.1  Binding  Effect.  This  Agreement  shall  bind the  Executive  and the
Company,   and   their   beneficiaries,    survivors,   executors,   successors,
administrators and transferees.

     8.2 No Guarantee of Employment.  This Agreement is not an employment policy
or contract.  It does not give the  Executive the right to remain an employee of
the Company,  nor does it interfere  with the  Company's  right to discharge the
Executive.  It also does not require  the  Executive  to remain an employee  nor
interfere with the Executive's right to terminate employment at any time.

     8.3  Non-Transferability.  Benefits  under this  Agreement  cannot be sold,
transferred, assigned, pledged, attached or encumbered in any manner.

     8.4 Tax Withholding. The Company shall withhold any taxes that are required
to be withheld from the benefits provided under this Agreement.

     8.5  Applicable  Law.  The  Agreement  and all  rights  hereunder  shall be
governed by the laws of the State of California,  except to the extent preempted
by the laws of the United States of America.

     8.6  Unfunded  Arrangement.  The  Executive  and  beneficiary  are  general
unsecured  creditors  of the  Company  for the  payment of  benefits  under this
Agreement.  The benefits  represent  the mere promise by the Company to pay such
benefits.  The rights to benefits are not subject in any manner to anticipation,
alienation,  sale, transfer,  assignment,  pledge,  encumbrance,  attachment, or
garnishment  by creditors.  Any insurance on the  Executive's  life is a general
asset of the Company to which the Executive and beneficiary have no preferred or
secured claim.

                                       6
<PAGE>

     8.7 Recovery of Estate Taxes. If the  Executive's  gross estate for federal
estate tax  purposes  includes  any amount  determined  by  reference  to and on
account of this Agreement,  and if the beneficiary is other than the Executive's
estate,  then the  Executive's  estate  shall be  entitled  to recover  from the
beneficiary  receiving such benefit under the terms of the Agreement,  an amount
by which the total estate tax due by the Executive's  estate,  exceeds the total
estate tax which  would have been  payable if the value of such  benefit had not
been included in the Executive's  gross estate. If there is more than one person
receiving such benefit, the right of recovery shall be against each such person.
In the event the  beneficiary  has a liability  hereunder,  the  beneficiary may
petition  the  Company  for a lump sum  payment  in an amount  not to exceed the
beneficiary's liability hereunder.

     8.8 Entire  Agreement.  This  Agreement  constitutes  the entire  agreement
between the Company and the Executive as to the subject matter hereof. No rights
are  granted  to the  Executive  by virtue of this  Agreement  other  than those
specifically set forth herein.

     8.9  Administration.  The Company  shall have powers which are necessary to
administer this Agreement, including but not limited to:

               (a)  Interpreting the provisions of the Agreement;

               (b)  Establishing  and revising the method of accounting  for the
                    Agreement;

               (c)  Maintaining a record of benefit payments; and

               (d)  Establishing  rules and  prescribing  any forms necessary or
                    desirable to administer the Agreement.

       8.10 Named Fiduciary. For purposes of the Employee Retirement Income
Security Act of 1974, if applicable, the Company shall be the named fiduciary
and plan administrator under the Agreement. The named fiduciary may delegate to
others certain aspects of the management and operation responsibilities of the
plan including the employment of advisors and the delegation of ministerial
duties to qualified individuals.

       IN WITNESS WHEREOF, the Executive and a duly authorized Company officer
consent to this Agreement.

EXECUTIVE:                           COMPANY:

                                     TEMECULA VALLEY BANK, N.A.

__________________________________   By  ___________________________________
Thomas M. Shepherd
                                     Title  _________________________________

                                       7
<PAGE>

                             BENEFICIARY DESIGNATION

                           TEMECULA VALLEY BANK, N.A.
               AMENDED AND RESTATED SALARY CONTINUATION AGREEMENT

I, Thomas M.  Shepherd,  designate the following as beneficiary of benefits
under the Agreement payable following my death:

--------------------------------------------------------------------------------
Primary:
-----------------------------------------------------------        -----%

-----------------------------------------------------------        -----%

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Contingent:
-----------------------------------------------------------        -----%

-----------------------------------------------------------        -----%

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Notes:

o    Please PRINT CLEARLY or TYPE the names of the beneficiaries.

o    To name a trust as  beneficiary,  please provide the name of the trustee(s)
     and the exact name and date of the trust agreement.

o    To name your estate as beneficiary, please write "Estate of _[your name]_".

o    Be aware that none of the contingent  beneficiaries  will receive  anything
     unless ALL of the primary beneficiaries predecease you.

I understand that I may change these beneficiary designations by delivering a
new written designation to the Company, which shall be effective only upon
receipt and acknowledgment by the Company prior to my death. I further
understand that the designations will be automatically revoked if the
beneficiary predeceases me, or, if I have named my spouse as beneficiary and our
marriage is subsequently dissolved.

Name:             _______________________________

Signature:        _______________________________    Date:    _______

--------------------------------------------------------------------------------
SPOUSAL CONSENT (Required if Spouse not named beneficiary):
--------------------------------------------------------------------------------

I consent to the beneficiary designation above, and acknowledge that if I am
named beneficiary and our marriage is subsequently dissolved, the designation
will be automatically revoked.

--------------------------------------------------------------------------------
Spouse Name:      _______________________________

Signature:                 _______________________________    Date:    _______

Received by the Company this ________ day of ______________, 2___

By:  _________________________________

Title:    _____________________________EXHIBIT 10.28

                              TEMECULA VALLEY BANK
                             SPLIT DOLLAR AGREEMENT

       THIS AGREEMENT is adopted this 30th day of September, 2004, by and
between TEMECULA VALLEY BANK, a nationally-chartered commercial bank, located in
Temecula, California (the "Company"), and THOMAS M. SHEPHERD (the "Executive").
This Agreement shall append the Split Dollar Endorsement entered into on even
date herewith or as subsequently amended, by and between the aforementioned
parties.

                                  INTRODUCTION

       To encourage the Executive to remain an employee of the Company, the
Company is willing to divide the death proceeds of a life insurance policy on
the Executive's life. The Company will pay life insurance premiums from its
general assets.

                                    AGREEMENT

       The Company and the Executive agree as follows:

                                    Article 1
                               General Definitions

The following terms shall have the meanings specified:

     1.1 "Insured" means the Executive.

     1.2 "Insurer"  means each life insurance  carrier in which there is a Split
Dollar Policy Endorsement attached to this Agreement.

     1.3 "Policy" means the specific life insurance policy or policies issued by
the Insurer.

     1.4  "Salary   Continuation   Agreement"  means  that  Salary  Continuation
Agreement  between  the Company and the  Executive  on even date  herewith or as
subsequently amended.

                                    Article 2
                           Policy Ownership/Interests

     2.1  Company  Ownership.  The  Company  is the sole owner of the Policy and
shall have the right to exercise all incidents of  ownership.  The Company shall
be the  beneficiary  of the  remaining  death  proceeds of the Policy  after the
Interest of the Executive or the Executive's  transferee has been paid according
to Section 2.2 below.

<PAGE>

     2.2 Executive's  Interest.  The Executive shall have the right to designate
the beneficiary of the death  proceeds.  The Executive shall also have the right
to  elect  and  change  settlement  options  that  may be  permitted.  Upon  the
termination  of this  Agreement  pursuant  to  Article  7,  the  Executive,  the
Executive's  transferee or the Executive's  beneficiary  shall have no rights or
interests  in the Policy and no death  benefit  shall be paid under this Section
2.2.

              2.2.1 Death During Active Service. If the Executive dies while in
       the active service of the Company, the Executive's beneficiary shall
       receive $595,480 (Five Hundred Ninety-Five Thousand Four Hundred Eighty
       Dollars).

              2.2.2 Death During Payment of a Benefit under the Salary
       Continuation Agreement. If the Executive dies after any benefit payments
       have commenced under Article 2 of the Salary Continuation Agreement but
       before receiving all such payments, the Company shall cease paying the
       remaining benefit, if any, and the Executive's beneficiary shall receive
       the split dollar death benefit described in Section 2.2.1 of this
       Agreement, less payments already made to the Executive under the Salary
       Continuation Agreement.

              2.2.3 Death After Termination of Employment But Before
       Commencement of Payment under the Salary Continuation Plan. If the
       Executive is entitled to a benefit under Article 2 of the Salary
       Continuation Agreement, but dies prior to the commencement of said
       benefit payments, the Company shall pay no benefit under the Salary
       Continuation Agreement and the Executive's beneficiary shall receive the
       split dollar death benefit described in Section 2.2.1 of this Agreement.

         2.3 Comparable Coverage. Upon execution of this Agreement, the Company
shall maintain the Policy in full force and effect and in no event shall the
Company amend, terminate or otherwise abrogate the Executive's interest in the
Policy, unless the Company replaces the Policy with a comparable insurance
policy to cover the benefit provided under this Agreement and the Company and
the Executive execute a new Split Dollar Policy Endorsement for said comparable
insurance policy. The Policy or any comparable policy shall be subject to the
claims of the Company's creditors.

                                    Article 3
                                    Premiums

     3.1 Premium Payment. The Company shall pay any premiums due on the Policy.

     3.2 Economic  Benefit.  The Company shall  determine  the economic  benefit
attributable  to the Executive  based on the amount of the current term rate for
the  Executive's  age multiplied by the aggregate  death benefit  payable to the
Executive's beneficiary.  The "current term rate" is the minimum amount required
to be imputed  under  Revenue  Rulings  64-328  and  66-110,  or any  subsequent
applicable authority.

     3.3 Imputed  Income.  The Company shall impute the economic  benefit to the
Executive on an annual basis.

                                       1
<PAGE>

                                    Article 4
                                   Assignment

       The Executive may assign without consideration all of the Executive's
interests in the Policy and in this Agreement to any person, entity or trust. In
the event the Executive transfers all of the Executive's interest in the Policy,
then all of the Executive's interest in the Policy and in the Agreement shall be
vested in the Executive's transferee, who shall be substituted as a party
hereunder and the Executive shall have no further interest in the Policy or in
this Agreement.

                                    Article 5
                                     Insurer

       The Insurer shall be bound only by the terms of the Policy. Any payments
the Insurer makes or actions it takes in accordance with the Policy shall fully
discharge it from all claims, suits and demands of all entities or persons. The
Insurer shall not be bound by or be deemed to have notice of the provisions of
this Agreement.

                                    Article 6
                           Claims and Review Procedure

       6.1 Claims Procedure. Any person or entity who has not received benefits
under the Agreement that he or she believes should be paid (the "claimant")
shall make a claim for such benefits as follows:

              6.1.1 Initiation - Written Claim. The claimant initiates a claim
       by submitting to the Company a written claim for the benefits.

              6.1.2 Timing of Company Response. The Company shall respond to
       such claimant within 90 days after receiving the claim. If the Company
       determines that special circumstances require additional time for
       processing the claim, the Company can extend the response period by an
       additional 90 days by notifying the claimant in writing, prior to the end
       of the initial 90-day period that an additional period is required. The
       notice of extension must set forth the special circumstances and the date
       by which the Company expects to render its decision.

              6.1.3 Notice of Decision. If the Company denies part or all of the
       claim, the Company shall notify the claimant in writing of such denial.
       The Company shall write the notification in a manner calculated to be
       understood by the claimant. The notification shall set forth:

               (a)  The specific reasons for the denial,

               (b)  A reference to the specific  provisions of this Agreement on
                    which the denial is based,

                                       2
<PAGE>

               (c)  A  description  of any  additional  information  or material
                    necessary  for the  claimant  to  perfect  the  claim and an
                    explanation of why it is needed,

               (d)  An explanation of this Agreement's review procedures and the
                    time limits applicable to such procedures, and

               (e)  A statement of the claimant's  right to bring a civil action
                    under ERISA  Section  502(a) (29 United  States Code section
                    1132(a))  following  an  adverse  benefit  determination  on
                    review.

       6.2 Review Procedure. If the Company denies part or all of the claim, the
claimant shall have the opportunity for a full and fair review by the Company of
the denial, as follows:

              6.2.1 Initiation - Written Request. To initiate the review, the
       claimant, within 60 days after receiving the Company's notice of denial,
       must file with the Company a written request for review.

              6.2.2 Additional Submissions - Information Access. The claimant
       shall then have the opportunity to submit written comments, documents,
       records and other information relating to the claim. The Company shall
       also provide the claimant, upon request and free of charge, reasonable
       access to, and copies of, all documents, records and other information
       relevant (as defined in applicable ERISA regulations) to the claimant's
       claim for benefits.

              6.2.3 Considerations on Review. In considering the review, the
       Company shall take into account all materials and information the
       claimant submits relating to the claim, without regard to whether such
       information was submitted or considered in the initial benefit
       determination.

              6.2.4 Timing of Company Response. The Company shall respond in
       writing to such claimant within 60 days after receiving the request for
       review. If the Company determines that special circumstances require
       additional time for processing the claim, the Company can extend the
       response period by an additional 60 days by notifying the claimant in
       writing, prior to the end of the initial 60-day period that an additional
       period is required. The notice of extension must set forth the special
       circumstances and the date by which the Company expects to render its
       decision.

              6.2.5 Notice of Decision. The Company shall notify the claimant in
       writing of its decision on review. The Company shall write the
       notification in a manner calculated to be understood by the claimant. The
       notification shall set forth:

               (a)  The specific reasons for the denial,

               (b)  A reference to the specific  provisions of this Agreement on
                    which the denial is based,

               (c)  A statement  that the claimant is entitled to receive,  upon
                    request and free of charge, reasonable access to, and copies
                    of, all documents,  records and other  information  relevant
                    (as  defined  in  applicable   ERISA   regulations)  to  the
                    claimant's claim for benefits, and

                                       3
<PAGE>

               (d)  A statement of the claimant's  right to bring a civil action
                    under ERISA Section 502(a).

                                    Article 7
                           Amendments and Termination

       7.1 This Agreement may be amended or terminated only by a written
agreement signed by the Company and the Executive. In the event that the Company
decides to maintain the Policy after the termination of the Agreement, the
Company shall be the direct beneficiary of the entire death proceeds of the
Policy.

       7.2 Notwithstanding any provision of this Agreement to the contrary, the
Company shall not pay any benefit under this Agreement if the Company terminates
the Executive's employment for:

               (a)  Willful  breach  of  duty in the  course  of  employment  or
                    habitual neglect of employment responsibilities and duties;

               (b)  Conviction of any felony or crime involving moral turpitude,
                    fraud or dishonesty;

               (c)  Willful  violation  of  any  state  or  federal  banking  or
                    securities  law,  the rules or  regulations  of any  banking
                    agency,  or any material Company rule,  policy or resolution
                    resulting in an adverse effect on the Company; or

               (d)  Disclosure  to any  third  party by the  Executive,  without
                    authority  or  permission,  of any  secret  or  confidential
                    information of the Company.

       7.3 Suicide or Misstatement. The Company shall not pay any benefit under
this Agreement if the Executive commits suicide within three years after the
date of this Agreement. In addition, the Company shall not pay any benefit under
this Agreement if the Executive has made any material misstatement of fact on an
employment application or resume provided to the Company, or on any application
for any benefits provided by the Company to the Executive.

                                    Article 8
                                  Miscellaneous

     8.1 Binding Effect. This Agreement shall bind the Executive and the Company
and their beneficiaries,  survivors, executors,  administrators and transferees,
and any Policy beneficiary.

     8.2 No Guarantee of Employment.  This Agreement is not an employment policy
or contract.  It does not give the  Executive the right to remain an employee of
the Company,  nor does it interfere  with the  Company's  right to discharge the
Executive.  It also does not require  the  Executive  to remain an employee  nor
interfere with the Executive's right to terminate employment at any time.

     8.3  Applicable  Law.  The  Agreement  and all  rights  hereunder  shall be
governed  by and  construed  according  to the laws of the State of  California,
except to the extent preempted by the laws of the United States of America.

                                       4
<PAGE>

     8.4 Reorganization. The Company shall not merge or consolidate into or with
another  company,  or  reorganize,  or sell  substantially  all of its assets to
another  company,  firm or person unless such succeeding or continuing  company,
firm or person agrees to assume and discharge the obligations of the Company.

     8.5 Notice. Any notice, consent or demand required or permitted to be given
under the  provisions  of this Split  Dollar  Agreement  by one party to another
shall be in writing, shall be signed by the party giving or making the same, and
may be given either by delivering the same to such other party personally, or by
mailing the same, by United States  certified  mail,  postage  prepaid,  to such
party, addressed to his or her last known address as shown on the records of the
Company.  The date of such  mailing  shall  be  deemed  the date of such  mailed
notice, consent or demand.

     8.6 Entire  Agreement.  This  Agreement  constitutes  the entire  agreement
between the Company and the Executive as to the subject matter hereof. No rights
are  granted  to the  Executive  by virtue of this  Agreement  other  than those
specifically set forth herein.

     8.7  Administration.  The Company  shall have powers which are necessary to
administer this Agreement, including but not limited to:

               (a)  Interpreting the provisions of this Agreement;

               (b)  Establishing  and revising the method of accounting for this
                    Agreement;

               (c)  Maintaining a record of benefit payments; and

               (d)  Establishing  rules and  prescribing  any forms necessary or
                    desirable to administer this Agreement.

       8.8 Named Fiduciary. The Company shall be the named fiduciary and
administrator under the Agreement. The named fiduciary may delegate to others
certain aspects of the management and operation responsibilities of the plan
including the employment of advisors and the delegation of ministerial duties to
qualified individuals.

       IN WITNESS WHEREOF, the Executive and the Company consent to this
Agreement on the date above written.

EXECUTIVE:                          COMPANY:
                                    TEMECULA VALLEY BANK

__________________________________  By______________________________________
Thomas M. Shepherd
                                    Title ____________________________________

                                       5
<PAGE>
                             BENEFICIARY DESIGNATION

                           TEMECULA VALLEY BANK, N.A.
                             SPLIT DOLLAR AGREEMENT

I, Thomas M.  Shepherd,  designate the following as beneficiary of benefits
under the Agreement payable following my death:

--------------------------------------------------------------------------------
Primary:
-----------------------------------------------------------         -----%

-----------------------------------------------------------         -----%

--------------------------------------------------------------------------------
Contingent:
-----------------------------------------------------------         -----%

-----------------------------------------------------------         -----%

--------------------------------------------------------------------------------
Notes:

     o    Please PRINT CLEARLY or TYPE the names of the beneficiaries.

     o    To  name a  trust  as  beneficiary,  please  provide  the  name of the
          trustee(s)  and the exact name and date of the trust  agreement.

     o    To name your estate as  beneficiary,  please  write  "Estate of _[your
          name]_".

     o    Be  aware  that  none of the  contingent  beneficiaries  will  receive
          anything unless ALL of the primary beneficiaries predecease you.

I understand that I may change these beneficiary designations by delivering a
new written designation to the Company, which shall be effective only upon
receipt and acknowledgment by the Company prior to my death. I further
understand that the designations will be automatically revoked if the
beneficiary predeceases me, or, if I have named my spouse as beneficiary and our
marriage is subsequently dissolved.

Name:         _______________________________

Signature:    _______________________________        Date:    _______

--------------------------------------------------------------------------------
SPOUSAL CONSENT (Required if Spouse not named beneficiary):
--------------------------------------------------------------------------------

I consent to the beneficiary designation above, and acknowledge that if I am
named beneficiary and our marriage is subsequently dissolved, the designation
will be automatically revoked.

--------------------------------------------------------------------------------
Spouse Name:  _______________________________

--------------------------------------------------------------------------------
Signature:                 _______________________________    Date:    _______

Received by the Company this ________ day of ______________, 2___

By:    _________________________________

Title:    _____________________________

<PAGE>
                               POLICY ENDORSEMENT

Contract Owner:       TEMECULA VALLEY BANK

The undersigned Owner requests that the policy(ies) shown in the attached
Schedule Page issued by Midland National Life Insurance Company (the "Insurer")
provide for the following beneficiary designation:

       1. Upon the death of the Insured, proceeds shall be paid in one sum to
the Owner, its successors or assigns, as Beneficiary, to the extent claimed by
said Owner.

       2. Any proceeds at the death of the Insured in excess of the amount paid
under the provisions of paragraph 1 of this Policy Endorsement shall be paid in
one sum in accordance with the written direction of the Owner. Such direction
will be provided to the Insurer at the time of claim. The Insurer will be
protected in relying solely on the Owner to provide the name(s) of the
party(ies) to pay any excess not paid under paragraph 1. If the Owner fails to
provide the name(s) of the party(ies) at the time of claim, then any proceeds
payable under this paragraph shall be paid in one sum to the Beneficiary.

       3. It is hereby provided that (i) any payment made to the Beneficiary or
other party under paragraph 2 of this Policy Endorsement shall be a full
discharge of the Insurer to the extent thereof; (ii) such discharge shall be
binding on all parties claiming any interest under the Policy; and (iii) the
Insurer shall have no responsibility with respect to the amounts so claimed.

       4. It is agreed by the undersigned that this designation shall be subject
in all respects to the contractual terms of the Policy.

The undersigned is signing in a representative capacity for the Owner and
warrants that he or she has the authority to bind the entity on whose behalf
this document is being executed.

Signed at ________________________, California, this _____ day of ______, 20___.

OWNER:
TEMECULA VALLEY BANK

By:        ____________________________     By:      ___________________________
           Bank Officer #1                           Bank Officer #2

Title:     ____________________________     Title:   ___________________________

                                     1 of 2
<PAGE>

                                  Schedule Page
                    Policy(ies) Subject to Policy Endorsement

------------------------------------------------------------ -------------------
Policy Number                                                Insured
------------------------------------------------------------ -------------------
682759                                                       Thomas M. Shepherd

------------------------------------------------------------ -------------------

OWNER:
TEMECULA VALLEY BANK

By:        ____________________________    By:      ____________________________
           Bank Officer #1                          Bank Officer #2

Title:     ____________________________    Title:   ____________________________

                                     2 of 2

<PAGE>
                               POLICY ENDORSEMENT

Contract Owner:       TEMECULA VALLEY BANK

The undersigned Owner requests that the policy(ies) shown in the attached
Schedule Page issued by West Coast Life Insurance Company (the "Insurer")
provide for the following beneficiary designation:

       1. Upon the death of the Insured, proceeds shall be paid in one sum to
the Owner, its successors or assigns, as Beneficiary, to the extent claimed by
said Owner.

       2. Any proceeds at the death of the Insured in excess of the amount paid
under the provisions of paragraph 1 of this Policy Endorsement shall be paid in
one sum in accordance with the written direction of the Owner. Such direction
will be provided to the Insurer at the time of claim. The Insurer will be
protected in relying solely on the Owner to provide the name(s) of the
party(ies) to pay any excess not paid under paragraph 1. If the Owner fails to
provide the name(s) of the party(ies) at the time of claim, then any proceeds
payable under this paragraph shall be paid in one sum to the Beneficiary.

       3. It is hereby provided that (i) any payment made to the Beneficiary or
other party under paragraph 2 of this Policy Endorsement shall be a full
discharge of the Insurer to the extent thereof; (ii) such discharge shall be
binding on all parties claiming any interest under the Policy; and (iii) the
Insurer shall have no responsibility with respect to the amounts so claimed.

       4. It is agreed by the undersigned that this designation shall be subject
in all respects to the contractual terms of the Policy.

The undersigned is signing in a representative capacity for the Owner and
warrants that he or she has the authority to bind the entity on whose behalf
this document is being executed.

Signed at ________________________, California, this _____ day of ______, 20___.

OWNER:
TEMECULA VALLEY BANK

By:        ____________________________   By:      ____________________________
           Bank Officer #1                         Bank Officer #2

Title:     ____________________________   Title:   ____________________________

                                     1 of 2

<PAGE>

                                  Schedule Page
                    Policy(ies) Subject to Policy Endorsement

------------------------------------------------------------ ------------------
Policy Number                                                Insured
------------------------------------------------------------ -------------------
ZUA373012                                                    Thomas M. Shepherd

------------------------------------------------------------ -------------------
ZUA396158                                                    Thomas M. Shepherd

------------------------------------------------------------ -------------------

OWNER:
TEMECULA VALLEY BANK

By:        ____________________________    By:      ____________________________
           Bank Officer #1                          Bank Officer #2

Title:     ____________________________    Title:   ____________________________

                                     2 of 2

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