Document:

Exhibit 10.3

MANHATTAN
BANCORP

2007 STOCK
OPTION PLAN

Adopted                           ,
2007

1.             Purpose.  The purpose
of the 2007 Stock Option Plan (the “Plan”) is to strengthen Manhattan Bancorp (the “Company”) and those corporations
which are or hereafter become subsidiary corporations of the Company, within
the meaning of Section 424(f) of the Internal Revenue Code of 1986, as
amended (the “Code”), by providing to participating employees and directors
added incentive for high levels of performance and for unusual efforts to
increase the earnings of the Company and its subsidiary corporations.  The Plan seeks to accomplish these purposes
and results by providing a means whereby such employees and directors may
purchase shares of the common stock of the Company pursuant to (a) options
granted pursuant to the Incentive Stock Option Plan (the “Incentive Plan”)
(Division A hereof) which will qualify as incentive stock options under
Section 422 of the Code (“Incentive Options”), or (b) options granted
pursuant to the Non-Qualified Stock Option Plan (the “Non-Qualified Plan”)
(Division B hereof) which are intended to be non-qualified stock options
described in Treas. Reg. §1.83-7 to which Section 421 of the Code does not
apply (“Non-Qualified Options”).  (Hereinafter,
the term “Options” shall collectively refer to Incentive Options and
Non-Qualified Options.).

2.             Administration.  This
Plan shall initially be administered by the Board of Directors of the Company
(the “Board of Directors”).  The Board of
Directors may, in its sole discretion, from time to time, delegate such power
and authority over the administration of the Plan as the Board of Directors
deems appropriate to a committee composed of not fewer than three (3) directors
of the Company.  If the administration of
the Plan is delegated to such a committee (whether a Stock Option Committee or
Compensation Committee), then the members of such committee must be
independent, non-employee directors of the Company as defined by the rules of
the NASD.  Nothing contained herein shall
prevent the Board of Directors from delegating to such committee full power and
authority over the administration of the Plan.

Any action of the Board of Directors (or committee) with respect to
administration of the Plan shall be taken pursuant to a majority vote of its
members; provided, however, that with respect to action by the Board of
Directors (or committee) in granting an option to an individual director, such
action must be authorized by the required number of directors without counting
the interested director, who shall abstain as to any vote on his option.  An interested director may be counted in
determining the presence of a quorum at a meeting of the Board of Directors (or
committee) where such action will be taken.

Subject to the express provisions of the Plan, the Board of Directors
(or the committee, if authorized) shall have the authority to construe and
interpret the Plan, and to define the terms used therein, to prescribe, amend,
and rescind rules and regulations relating to administration of the Plan, to
determine the duration and purposes of leaves of absence which may be granted
to participants without constituting a termination of their employment for
purposes of the Plan, and to make all other determinations necessary or
advisable for administration of the Plan.

Determinations of the
Board of Directors (or the committee, if authorized) on matters referred to in
this section shall be final and conclusive.

3.             Participation; Limitation on Amount of Outstanding Options.  All salaried officers and employees of the Company
and its subsidiary corporations shall be eligible for selection to receive both
Incentive and Non-Qualified Options. 
Directors of the Company and its subsidiary corporations who are not
also salaried officers or employees of the Company or a subsidiary corporation
shall be eligible to receive only Non-Qualified Options under the Plan.    Subject
to the express provisions of the Plan, the Board of Directors (or committee, if
authorized) shall select from the eligible class and determine the individuals
who shall receive Options, whether such Options shall be Incentive or
Non-Qualified Options, and the terms and provisions of the Options (which need
not be identical), and shall grant such Options to such individuals.  An individual who has been granted an Option
(an “Optionee”) may, if such individual is otherwise eligible, be granted
additional Options if the Board of Directors (or the committee, if authorized)
shall so determine.

4.             Stock Subject to the Plan.  Subject to adjustment as provided in
Section 13 hereof, the stock to be offered under the Plan shall be shares
of the Company’s authorized but unissued common stock, without par value
(hereinafter called “stock”), and the aggregate amount of stock to be delivered
upon exercise of all Options granted under the Plan, whether Incentive or
Non-Qualified Options, shall not exceed                                                                         
(               )
shares [30% of the amount of the Company’s issued and outstanding shares of common
stock to be sold in its initial public offering].  If any Option shall expire for any reason
without having been exercised in full, the unpurchased shares subject thereto
shall again be available for purposes of the Plan.

5.             Option Price. 
The purchase price of stock subject to each Option shall be determined
by the Board of Directors (or the committee, if authorized) but shall not be
less than one hundred percent (100%) of the fair market value of such stock at
the time such Option is granted.  As to
any Incentive Option granted to an Optionee who, immediately before the Option
is granted, owns beneficially more than ten percent (10%) of the outstanding
stock of the Company, the purchase price must be at least one hundred ten
percent (110%) of the fair market value of the stock at the time when such
Option is granted.  The fair market value
of such stock shall be determined in accordance with any reasonable valuation
method, including the valuation methods described in Treas. Reg.
§ 20.2031-2.  The purchase price of
any shares purchased shall be paid in full in cash at the time of each such
purchase.

6.             Option Period.  Each
Option and all rights or obligations hereunder shall expire on such date as the
Board of Directors (or the committee, if authorized) may determine, but not
later than ten (10) years from the date such Option is granted, and shall be
subject to earlier termination as provided elsewhere in the Plan.  As to any Incentive Option granted to an
Optionee who, immediately before the option is granted, owns beneficially more
than ten percent (10%) of the outstanding stock of the Company (whether
acquired upon exercise of Options or otherwise), such option must not be
exercisable by its terms after five (5) years from the date of its grant.

 2
 

7.             Continuation of Employment.  In the case of employees, nothing contained
in the Plan (or in any Option agreement) shall obligate the Company or its
subsidiary corporations to employ any Optionee for any period or interfere in
any way with the right of the Company or its subsidiary corporations to reduce
such Optionee’s compensation.

8.             Exercise of Options.  Each Option shall be exercisable in such
installments, which need not be equal, and upon such contingencies as the Board
of Directors (or the committee, if authorized) shall determine; provided,
however, that if an Optionee shall not in any given installment period purchase
all of the shares which such Optionee is entitled to purchase in such
installment period, such Optionee’s right to purchase any shares not purchased
in such installment period shall continue until the expiration of such
Option.  No Option or installment thereof
shall be exercisable except with respect to whole shares, and fractional share
interests shall be disregarded.  Options
may be exercised by ten (10) days written notice delivered to the Company
stating the number of shares with respect to which the Option is being
exercised, together with cash in the amount of the purchase price for such shares.  No fewer than ten (10) shares may be
purchased at one time unless the number purchased is the total number which may
be purchased under the Option.  As a
condition to the exercise of a Non-Qualified Option, in whole or in part, by an
Optionee who is an employee of the Company (or who was an employee during the
term of the option) the Optionee shall be required to pay to the Company, in
addition to the purchase price for the shares being exercised, an amount equal
to any taxes required to be withheld by the Company in order to enable the Company
to claim a deduction in connection with the exercise of the Option.

Options may also be exercised by delivery to the Company of ten (10)
days written notice stating the number of shares with respect to which the
Option is being exercised, and by delivery to the Company of (i) an exercise
notice instructing the Company to deliver the certificates for the shares
purchased to a designated brokerage firm which shall sell the stock in the
market as soon as the Option is exercised; and (ii) a copy of irrevocable
instructions delivered to the brokerage firm to sell the shares acquired upon
exercise of the Option and to deliver to the Company from the sale proceeds
sufficient cash to pay the exercise price and applicable withholding taxes
arising as a result of the exercise, with the balance of the sales proceeds, if
any, after payment of any broker’s commission, credited to the Optionee’s
brokerage account.

9.             Nontransferability of Options.  Each Option shall, by its terms, be
nontransferable by the Optionee, other than by Will or the laws of descent and
distribution, and shall be exercisable during such Optionee’s lifetime only by
the Optionee.

10.           Cessation of Employment; Disability.  Except as provided in Sections 6 and 11
hereof, if an Optionee ceases to be employed by or to serve as a director of
the Company or a subsidiary corporation for any reason other than death or
disability, such Optionee’s Option shall expire three (3) months thereafter,
and during such period after such Optionee ceases to be an employee or
director, such Option shall be exercisable only as to those shares with respect
to which installments, if any, had accrued as of the date on which the Optionee
ceased to be employed by or ceased to serve as a director of the Company or
such subsidiary corporation.  Except as
provided in Sections 6 and 11 hereof, if an Optionee ceases to be employed
by or ceases to serve as a director of the Company or a subsidiary corporation
by reason of disability (within the meaning of Section 22(e)(3) of the Code),
such Optionee’s Option shall expire not

 3
 

later than one (1)
year thereafter, and during such period after such Optionee ceases to be an
employee or director such Option shall be exercisable only as to those shares
with respect to which installments, if any, had accrued as of the date on which
the Optionee ceased to be employed by or ceased to serve as a director of the Company
or such subsidiary corporation.

11.           Termination of Employment for Cause.  If an Optionee’s employment by or service as
a director of the Company or a subsidiary corporation is terminated for cause,
such Optionee’s Option shall expire immediately; provided, however, that the
Board of Directors may, in its sole discretion, within thirty (30) days of such
termination, waive the expiration of the Option by giving written notice of
such waiver to the Optionee at such Optionee’s last known address.  In the event of such waiver, the Optionee may
exercise the Option only to such extent, for such time, and upon such terms and
conditions as if such Optionee had ceased to be employed by or ceased to serve
as a director of the Company or such subsidiary corporation upon the date of
such termination for a reason other than cause, disability, or death.  In the case of an employee, termination for
cause shall include termination for malfeasance or gross misfeasance in the
performance of duties, conviction of illegal activity in connection therewith,
any conduct seriously detrimental to the interests of the Company or a
subsidiary corporation, or removal pursuant to the exercise of regulatory
authority by the Comptroller of the Currency, the FDIC, the Federal Reserve
Board or other bank supervisory agency; and, in any event, the determination of
the Board of Directors with respect thereto shall be final and conclusive.  In the case of a director, termination for
cause shall include removal pursuant to Sections 302 or 304 of the California
Corporations Code or removal pursuant to the exercise of regulatory authority
by the Comptroller of the Currency, the FDIC, the Federal Reserve Board or
other bank supervisory agency.

12.           Death of Optionee.  Except as provided in Section 6 hereof,
if any Optionee dies while employed by or serving as a director of the Company
or a subsidiary corporation or during the three (3) month or one-year period
referred to in Section 10 hereof, such Optionee’s Option shall expire one
(1) year after the date of such death. 
After such death but before such expiration, the persons to whom the
Optionee’s rights under the Option shall have passed by Will or by the
applicable laws of descent and distribution shall have the right to exercise
such Option to the extent that installments, if any, had accrued as of the date
on which the Optionee ceased to be employed by or ceased to serve as a director
of the Company or such subsidiary corporation.

13.           Adjustments Upon Changes in Capitalization.  If the outstanding shares of the stock of the
Company are increased, decreased, or changed into, or exchanged for a different
number or class of shares or securities of the Company, without receipt of
consideration by the Company, through reorganization, merger, recapitalization,
reclassification, stock split-up, stock dividend, stock consolidation, or
otherwise, an appropriate and proportionate adjustment shall be made in the
number and kind of shares as to which Options may be granted.  A corresponding adjustment changing the
number or kind of shares and the exercise price per share allocated to
unexercised Options, or portions thereof, which shall have been granted prior
to any such change shall likewise be made. 
Any such adjustment, however, in an outstanding Option shall be made
without change in the total price applicable to the unexercised portion of the Option
but with a corresponding adjustment in the price for each share subject to the
Option.  No fractional shares of stock
shall be issued under the Plan on account of any such adjustment.

 4
 

14.           Terminating Events.  Not less than thirty (30) days prior to a “Terminating
Event” as defined below, the Board of Directors (or the committee, if
authorized) shall notify each Optionee of the pendency of the Terminating
Event.  Upon delivery of said notice, any
Option granted prior to the Terminating Event shall be, notwithstanding the
provisions of Section 8 hereof, exercisable in full and not only as to
those shares with respect to which installments, if any, have then accrued,
subject, however, to earlier expiration or termination as provided elsewhere in
the Plan, and further subject to the condition that the Terminating Event in
fact occurs.  Optionees shall then be
entitled to exercise any Options or portions thereof commencing on the tenth
(10th) day, and ending on the third (3rd) day, prior to the Terminating Event, or at such
other times as may be specified by the Board of Directors in connection with
the Terminating Event.  Upon the
effective date of the Terminating Event, the Plan and any Options granted
thereunder shall terminate, unless (i) provision is made in connection with the
Terminating Event for assumption of Options theretofore granted, or
substitution for such Options of new options covering stock of a successor
employer corporation, or a parent or subsidiary corporation thereof, with
appropriate adjustments as to the number and class of shares and prices, or
(ii) in the case of a “change in control” as defined below, the Board of
Directors in its sole discretion determines prior to the effective date of the
Terminating Event that all outstanding Options and the Plan itself should
continue in full force and effect.  In
the case of such a determination by the Board of Directors, or in the event
that any pending Terminating Event does not occur, the Plan and all outstanding
Options thereunder shall continue in force with all original vesting schedules
in effect.

For purposes of this Section 14, a “Terminating Event” shall include:
(i) a reorganization, merger, or consolidation of the Company with one or more
corporations as a result of which the Company will not be the surviving
corporation, (ii) a sale of substantially all the assets and property of the Company
to another person, corporation or entity, or (iii) a “change in control”, i.e.,
any other single transaction involving the Company (such as a tender offer)
where there is a change in ownership of at least twenty-five percent (25%) of
the Company’s outstanding shares, unless such
change in ownership results from (i) a transfer of shares to another
corporation in exchange for at least eighty percent (80%) control of that
corporation, (ii) the issuance of additional shares of stock by the Company in
a public stock offering, private placement or similar transaction, or (iii) any
acquisition in which the Company will be the surviving entity.

15.           Exercise or
Forfeiture of Options in the Event of Order to Increase Capital.  Notwithstanding any other provision of any
Option granted hereunder, if Bank of Manhattan, N.A. becomes subject to any
written order or directive by the Comptroller of the Currency or other banking
regulatory agency requiring Bank of Manhattan, N.A. to increase capital, all outstanding
Options under the Plan shall thereupon terminate and be of no further force and
effect.

16.           Acceleration
of Options.  Notwithstanding
the provisions of Section 8 hereof or any provision to the contrary contained
in any Option agreement, the Board of Directors (or the committee, if
authorized), in its sole discretion, may accelerate the vesting of all or any
Option then outstanding.  The decision by
the Board of Directors to accelerate an Option or to decline to accelerate an
Option shall be final.  In the event of
the acceleration of the exercisability of Options as the result of a decision
by the Board of Directors pursuant to this Section 16, each outstanding Option
so accelerated shall be exercisable for a period from and after the date of

 5
 

such acceleration and
upon such other terms and conditions as the Board of Directors may determine in
its sole discretion, provided that such terms and conditions (other than terms
and conditions relating solely to the acceleration of exercisability and the
related termination of an Option) may not adversely affect the rights of any
Participant without the consent of the Participant so adversely affected.  Any outstanding Option which has not been
exercised by the holder at the end of such period shall terminate automatically
at that time.

17.           Amendment and Termination by Board of Directors.  The Board of Directors may at any time
suspend, amend, or terminate the Plan and may, with the consent of an Optionee,
make such modification of the terms and conditions of such Optionee’s Option as
it shall deem advisable; provided that, except as permitted under the
provisions of Section 13 hereof, any amendment or modification of the Plan
which would:

(a)           increase the maximum number of shares
which may be purchased pursuant to Options granted under the Plan;

(b)           change the minimum option price;

(c)           increase the maximum term of Options
provided for herein; or

(d)           permit Options to be granted to
anyone other than a director, a salaried officer or an employee of the Company
or a subsidiary corporation;

requires the approval of the Company’s shareholders as
described below.  Any amendment or
modification requiring shareholder approval shall be deemed adopted as of the
date of the action of the Board of Directors effecting such amendment or
modification and shall be effective immediately, unless otherwise provided
therein, subject to approval thereof within twelve (12) months  before or after the effective date by
shareholders of the Company holding not less than a majority of the voting
power of the Company; provided, however, that the Board of Directors may amend
the Plan in toto without shareholder approval if
the Plan has not yet been approved by the shareholders.

Notwithstanding the above, the Board of Directors (or the committee, if
authorized to do so) may grant to an Optionee, if such Optionee is otherwise
eligible, additional Options or, with the consent of the Optionee, grant a new
Option in lieu of an outstanding Option for a number of shares, at a purchase
price and for a term which in any respect is greater or less than that of the
earlier Option, subject to the limitations of Sections 5, 6 and A-2
hereof.

No Option may be granted during any suspension of the Plan or after
termination of the Plan.  Amendment,
suspension, or termination of the Plan shall not, without the consent of the
Optionee, alter or impair any rights or obligations under any Option
outstanding prior to such amendment, suspension or termination of the Plan.

18.           Time of Granting Options.  The time an Option is granted, sometimes
referred to as the date of grant, shall be the day of the action of the Board
of Directors (or the committee) described in the second sentence of
Section 2 hereof, provided, however, that if appropriate resolutions of
the Board of Directors (or the committee) indicate that an Option is to be
granted as of and on some future date, the time such Option is granted shall be
such future date.  If action

 6
 

by the Board of Directors
(or the committee) is taken by the unanimous written consent of its members,
the action of the Board of Directors (or the committee) shall be deemed to be
at the time the last Board (or committee) member signs the consent.

19.           Privileges
of Stock Ownership; Securities Laws Compliance; Notice of Sale.  No Optionee shall be entitled to the
privileges of stock ownership as to any shares of stock not actually issued and
delivered.  No shares shall be issued
upon the exercise of any Option unless and until any then applicable
requirements of any regulatory agencies having jurisdiction, and of any
exchanges upon which stock of the Company may be listed, shall have been
complied with fully.   The Company intends to register the securities
reserved under the Plan under the Securities Act of 1933, as amended (the “Act”).  Upon such registration, the shares received
by Optionees (other than affiliates) upon exercise of their Options will be
freely tradable All Optionees shall agree to comply with all applicable federal
and state securities laws in connection with any sale or other disposition of
such common stock.  The Optionee shall
give the Company notice of any sale or other disposition of any such shares not
more than five (5) days after such sale or other disposition.

20.           Effective Date of the Plan.  The Plan shall be deemed adopted as of the
date first shown herein and shall be effective immediately, subject to approval
hereof within twelve (12) months before or after said date by shareholders
holding not less than a majority of the voting power of the Company.

21.           Termination.  Unless previously terminated by the Board of
Directors or as provided in Section 14 hereof, the Plan shall terminate at
the close of business on                   ,
2017 and no Options shall be granted under it thereafter, but such termination
shall not affect any Option theretofore granted.

22.           Option Agreement.  Each Option shall be evidenced by a written
stock option agreement executed by the Company and the Optionee and shall
contain each of the provisions and agreements herein specifically required to
be contained therein, including whether the Option is an Incentive Option or
Non-Qualified Option, and such other terms and conditions as are deemed desirable
and are not inconsistent with the Plan.

23.           Exculpation and Indemnification.  The Company shall indemnify and hold harmless
a member or members of the Board of Directors (or the committee), in any action
brought against such member or members to the maximum extent permitted by then
applicable law and the Articles of Incorporation and Bylaws of the Company and
any amendments thereto.

 7
 

DIVISION A

INCENTIVE STOCK OPTION PLAN

A-1.        Eligible
Persons.  All salaried
officers and employees of the Company and its subsidiary corporations shall be
eligible for selection to participate in the Incentive Plan.  Notwithstanding any other provisions of the
Plan to the contrary, no director of the Company or a subsidiary corporation
who is not a salaried employee of the Company or a subsidiary corporation and
no member of the committee may be granted options under the Incentive Plan.

A-2.        Limit on Exercisability
of Options.  The aggregate
fair market value (determined as of the time the Option is granted) of the
stock for which any salaried officer or employee may be granted Incentive
Options which are first exercisable
during any one calendar year (under all Incentive Stock Option Plans of such
employee’s employer and its parent and subsidiary corporations) shall not exceed
One Hundred Thousand Dollars ($100,000).

A-3.        Incorporation
by Reference.  The provisions
of Sections 5, 6, 9, 10, 12, 17 and 21 of the Plan are hereby incorporated by
this reference into this Incentive Stock Option Plan.

A-4.        Interpretation of Plan.  Options granted pursuant to the
Incentive Plan are intended to be “incentive stock options” within the meaning
of Section 422 of the Code, and the Incentive Plan shall be construed to
implement that intent.  If all or any
part of an Incentive Option shall not be deemed an “incentive stock option”
within the meaning of Section 422 of the Code, said Option shall
nevertheless be valid and carried into effect as a Non-Qualified Option.

DIVISION B

NON-QUALIFIED STOCK OPTION PLAN

B-1.         Eligible
Persons.  All salaried
officers and employees, and all directors of the Company and its subsidiary
corporations shall be eligible for selection to participate in the
Non-Qualified Plan.

B-2.         Interpretation of Plan.  Options granted pursuant to the Non-Qualified
Plan are intended to be non-qualified stock options described in Treas.
Reg. § 1.83-7 to which Section 421 of the Code does not apply,
and the Non-Qualified Plan shall be construed to implement that intent.

 8Exhibit 10.4

New Bank and Bank Holding Company Formation:

Financial Advisory and Consulting
Agreement

The following is
the Financial Advisory and Consulting Agreement between CCFW, Inc., dba Carpenter
& Company (“Carpenter”), its subsidiary Seapower Carpenter Capital,
Inc. (“SCC”), and the SB Organizing Group (the “Client”), effective this 1st day
of  November, 2006.

WHEREAS, the Client
wishes to enter the banking business in the County of Los Angeles, utilizing
(i) a bank holding company (established through formation, capitalization,
opening, and successful operation of a prospective new entity) (the “BHC”) and (ii)
a formation, capitalization, opening and successful operation of a new FDIC-insured
financial institution (the “Bank”) (the Client, the BHC and the Bank are
collectively referred to hereinafter as the “Client”); and

WHEREAS, the
Client and Carpenter had previously entered into that certain New Bank
Formation: Consulting Agreement dated October 6, 2005 (the “Initial Agreement”);
and

WHEREAS, the Client
and Carpenter desire to terminate for all purposes the Initial Agreement; and

WHEREAS, the
Client wishes to retain Carpenter and SCC to provide financial advisory and
consulting services in connection with these objectives, and Carpenter and SCC wish
to be so retained.

NOW, THEREFORE, in
consideration of the premises and of the mutual covenants and conditions
contained herein, the parties hereto agree as follows:

1)             APPLICATION  SERVICES 

a)              Carpenter
shall assist the Client in evaluating alternative corporate structures and
developing the strategy for approval of the acquisition of the Bank by the BHC
and filing an application with the Federal Reserve System (the “FRS”) for
registration of the BHC as a bank holding company.

b)             Carpenter
shall assist the Client in developing the strategy for approval of a new bank
charter, assembling its management team, and preparing and filing an
application for (i) a national or state bank charter application to be
submitted to one of the Comptroller of the Currency, the Office of Thrift
Supervision or the Department of Financial Institutions (“Appropriate Regulator”),
(ii) and to the Federal Deposit Insurance Corporation (“FDIC”) for the
insurance of accounts.  (The FRS, the
Appropriate Regulator and the FDIC are collectively referred to hereinafter as
the “Banking Regulators”).

c)              The
major tasks to be performed by Carpenter will include:

i)                 Strategy

(1)          Development
of an overall strategy for the appropriate corporate structure and approval of
the BHC, considering current regulatory policies and the specific plans and
resources of Client.

(2)          Development
of an overall strategy for approval of the new charter, considering current
regulatory policies and the specific plans and resources of Client.

(3)          Identification
of strengths and areas requiring improvement in the proposed location, management, Board of Directors, and business plan,
and providing suggestions for remediation of areas
requiring improvement.

ii)              Regulatory
Consulting

(1)          Advice
as to current regulatory practice and procedure with respect to approval of new
bank charters and the registration of related bank holding companies.

(2)          Communication
with the Banking Regulators, as appropriate, during the application phase.

(3)          Attendance
at an application pre-filing conference with the Banking Regulators, and at
such other regulatory meetings as are appropriate and necessary.

iii)           Board
of Directors and Management

(1)          At
the specific request of the Client, Carpenter, either directly or through the
services of a qualified executive recruitment firm specializing in financial
institutions, shall seek to identify and recruit specific senior officers and
directors to complete or strengthen the Board of Directors or management team.

(2)          Assistance
in preparing the proposed president and/or CEO’s biographical data and, if
appropriate and necessary, development of a case supporting the candidate’s
approvability for the position of CEO of the bank.

(3)          Advice
on developing a balanced and approvable Board of Directors.

(4)          Advice
on the overall approvability of the management team, including the CEO, CFO,
and CCO, and on potential improvements.

(5)          Advice
on the form and market rates of compensation for the senior management team.

(6)          Advice
on the volume and type of options to be granted under the stock option plan to
officers and directors.

(7)          Training
senior officers and directors for the pre-filing meeting with the Banking
Regulators, and for the field examination interviews conducted by representatives
of the Banking Regulators.

(8)          Attendance
at other selected meetings with the Board of Directors.

iv)          Preparation
and Filing of The Applications

(1)          Preparation
of the economic documentation, banking and other data necessary to complete and
file the charter application with the Appropriate Regulator.

(2)          Assistance
in the development and preparation of the business plan for the bank.

(3)          Advice
on appropriate levels of initial capitalization given the business plan
assumptions.

 2
 

(4)          Preparation
of the pro forma bank financial statements for the first three years of
operation.

(5)          Analysis
of community needs and completion of demographic analysis as required by the
Appropriate Regulator and the FDIC to assess the public need for and
convenience of a new bank.

(6)          Assistance
in the preparation of the bank’s policies and procedures to be filed with the
applications.

(7)          Assistance
in preparing the Interagency Biographical and Financial Report and ancillary forms
for each director, senior officer, and significant shareholder of the proposed
bank.

(8)          Preparation
of the application for FDIC deposit insurance.

(9)          Preparation
of the application for registration of the BHC with the FRS.

(10)    Assembly
and submission of the charter, deposit insurance and BHC registration applications
to the Banking Regulators.

(11)    Assistance
in responding to any deficiencies noted or questions posed by the Banking
Regulators after the applications have been filed.

(12)    Such
other general consulting and assistance as is reasonably connected to the purposes
of this Agreement.

2)             CAPITALIZATION
SERVICES 

a)              The
Client will seek to raise the capital required as a condition of approval to
open the Bank through a private placement (the “Offering”) of the common stock of
the BHC (the “Securities”).  SCC shall
assist the Client in this process as follows.

i)                 Strategy

(1)          Assist the
Client in the development of its overall marketing plan and strategy for the
Offering and sale of the Securities to investors (“Investors”).

(2)          Assist the
Client in the development of specific plans, timelines, and benchmarks for
measurement of success.

ii)              Investor Identification and Stratification

(1)          Stratify
and analyze the target local Investor population.

(2)          Develop
marketing approaches for each major sub-group of Investors.

(3)          Incorporate
the results of stratification into the strategy for completion of the Offering.

iii)           Marketing and Sales Materials

(1)          Assist
in developing the financial and operational argument for investment in the
Offering, with supporting investment and return analysis from comparable
banking institutions.

(2)          In
conjunction with the Client, develop the presentation and other supporting
materials to be used by the Bank and SCC in meetings with and presentations to potential
Investors.

 3
 

iv)          Participation in Sales Events.

(1)          Provide assistance in presentations to potential Investors
on a schedule to be mutually agreed to.

(2)          Coordinate development of the sales event schedule with
Client.

(3)          Assist as requested in planning for specific sales events.

(4)          Assist
in further presentations to Investors as reasonably required.

v)             Management Consulting

(1)          Provide
planning, training and tracking assistance to the Client through the completion
of the Offering.

(2)          Coordinate
with Client and Client’s other advisors in the preparation of an offering
circular, and related marketing and sales materials.

(3)          Provide
Client director and officer training sessions on the offering process,
responsibilities, and effective Investor identification and closing methods.

(4)          Assistance
in closing Investors’ subscriptions, including information agency services,
advising on IRA/Keogh issues, and meeting with bankers, Board, and the
investors as reasonably necessary.

b)             SCC’s
involvement in the Capitalization Services shall be pursuant to terms and
conditions (excluding compensation and the basic description of services to be
rendered) that shall be described in a separate written agreement to be entered
into by the Client and SCC in connection with the commencement of delivery of
the Capitalization Services.  It is
further subject to receipt of all required regulatory approvals of the terms
and arrangements for such services by applicable regulatory bodies.

c)              Notwithstanding
the foregoing or the terms of any separate written agreement describing the
terms and conditions pursuant to which SCC shall deliver its capitalization
services, the Client agrees and acknowledges that (i) any offering undertaken
by SCC on behalf of the Client shall be conducted on a best efforts basis, (ii)
shall not be underwritten, and (iii) that no guarantee of performance or sales
success has or shall be given by SCC or relied upon by the Client.

3)             ONGOING SERVICES 

a)              Following
opening of the Bank and at the specific written request of the Bank, Carpenter and
SCC shall provide the Bank and the BHC with ongoing consulting and financial
advisory services to assist management and the Boards of Directors in enhancing
and increasing shareholder value.  These
services are described more fully below.

i)                 Strategic
Consulting Services

(1)          Following
opening of the Bank, Carpenter shall provide the Bank and the BHC with a written
quarterly report on financial performance of the Bank and the Bank’s common
stock as follows:

 4
 

(a)          Financial
characteristics, including balance sheet and income statement composition, ALCO
policy and asset-liability profile, asset quality indicators, and the
components of income and expense of the Bank;

(b)         Comparative review
of performance of the Bank, with emphasis on relative performance compared to
other de novo Banks;

(c)          Business lines,
including both asset and liability products and services, focusing on issues of
diversification, income generation, and risk/reward balance;

(d)         Common stock
comparative performance, including the use of valuation indicators derived from
a review of other comparable bank stocks; and

(e)          Upon request, identification
and evaluation of alternative sites for future branch expansion.

(2)          Carpenter
personnel shall be available to the Bank and the BHC for a reasonable amount of
time to discuss the results of this quarterly analysis, and to provide other
ongoing strategic advice, as necessary and appropriate.  Further, at least annually, Carpenter shall
meet with the Board of Directors of both the Bank and the BHC to present a
review of the information and analysis described above, and offer consulting
and strategic comments based on that analysis.

ii)              Financial
Advisory Services

(1)          During
the term hereof, Carpenter or SCC (as Carpenter may decide in compliance with
applicable law and regulation) shall provide ongoing financial advisory
services to the
BHC and the Bank, advising with respect to further offerings of
securities or other capital placement by the Client, and advising with respect
to potential Business Combinations (defined below) (all collectively described
as “Strategic Transactions”)

(a)          “Business
Combination” means (a) any merger, consolidation, reorganization or other
business combination pursuant to which the business of the Client is combined
with or comes under common control with that of a Second Party, or (b) the
acquisition, directly or indirectly, by a Second Party of more than 24.9% of
the capital stock, or a all or a substantial portion of the assets of the
Client, by way of tender or exchange offer, negotiated purchase or otherwise,
whether effected, in any such case, in one transaction or a series of
transactions.

b)             Carpenter’s
and SCC’s Ongoing Services as described herein shall be pursuant to terms and
conditions (excluding compensation and the basic description of services to be
rendered) that shall be described in separate written agreements to be entered
into by the Client and Carpenter or SCC in connection with the commencement of delivery
of the Ongoing Services.

 5
 

4)             COMPENSATION

a)              Application
Services

i)                 The
total fees for Application services will be $115,000.  Payment is based upon the following schedule:

(1)          $55,000
as an initial fee, due and payable upon signing of this Agreement.

(2)          $30,000
in-progress fee due forty-five days after receipt of the initial fee.

(3)          $30,000
fee due upon filing of the application with the Appropriate Regulator.(1)

ii)              Additional
fees for Application services will be required for unusual delays caused by the
Client, or for material changes to the application which require a significant
update of the financial institution, community or director data.

b)             Capitalization Services

i)                 Compensation to
Carpenter or SCC for Capital Services shall be paid as follows:

(1)          Sales Management Fee:  Upon closing of the Offering, the Client
shall pay a sales management fee equal to the lesser of (a) 1% of the gross
Offering proceeds and (b) $125,000.

(2)          Sales and Placement
Fee: Upon closing of the Offering, the Client shall pay a sales and
placement fee equal to 5% of the gross Offering proceeds collected from any
investors identified by SCC.

c)              Ongoing Services 

i)                 Following receipt
of a request from the Client for delivery of the ongoing Strategic Consulting
Services, the Client shall pay, as compensation for the Strategic Consulting Services,
a fee of $5,000 per calendar quarter, following opening of the Bank.

ii)              Compensation for
advice with regard to Strategic Transactions shall be as follows:

(1)          Following receipt of a
request from the Client for delivery of services in connection with either a
further offering of common stock or other capital placement, SCC shall be paid
fees on terms comparable to those paid for similar services to other firms
engaged in similar activities.

(1)  These fees are exclusive of any filing fees required by
the Appropriate Regulator, which will be paid separately by the Client.  Applications filed with state or OCC
regulatory authorities have filing fees ranging from $7,500 to $25,000.  The application to the FDIC for insurance of
accounts does not currently have a filing fee. 

 6
 

(2)          Without regard to
whether the Client requests that Carpenter provide financial advisory services,
if during the period Carpenter and SCC are retained by the Client hereunder or
within 12 months thereafter (a) a Business Combination is consummated with any
Second Party identified by Carpenter or SCC as potentially interested in a
Business Combination with the Client; or (b) the Client enters into a
definitive agreement to engage in a Business Combination with any Second Party
identified by Carpenter or SCC as potentially interested in a Business
Combination with the Client, the Client shall pay Carpenter a non-refundable
fee in an amount equal to 3% of the first $5 million of the Aggregate Purchase
Price (defined below), and 2% of all sums above $5 million of the Aggregate
Purchase Price (defined below), all payable at the closing of the Business
Combination.

(a)          “Aggregate Purchase
Price” shall mean an amount equal to the sum of (a) the consideration agreed to
be paid or exchanged for each outstanding share of each class of stock of the
Company, plus (b) the consideration to be paid with respect to shares underlying
unexercised options, warrants or other rights to purchase shares of any class
of the Company’s securities minus any applicable exercise or strike price plus
(c) the amount of any debt assumed (directly or indirectly) or repaid in
connection with the Business Combination, plus (d) the net present value of any
contingent payments (whether or not related to future earnings or operations
and including payments to executive personnel in respect of salary, bonus or
retention agreements) calculated based upon the assumption that the maximum
aggregate amount or any consideration pursuant to the contingent payment provisions
is received, plus (e) any extraordinary dividends or distributions paid on or
prior to the closing in connection with the Business Combination.

(3)          All fees arising from Strategic
Transactions are payable at closing of the related Strategic Transaction.

d)            Executive
Recruitment 

i)                 Compensation
for recruitment of directors or senior officers shall be payable at the rate of
$15,000 per director recruited, and industry standard fees for each senior
officer.

ii)              Compensation
for executive and director recruitment shall be payable upon opening of the Bank.

iii)           Carpenter’s
services in connection with executive recruitment shall be pursuant to terms
and conditions that shall be described in a separate written agreement to be
entered into by the Client and Carpenter in connection with the commencement of
such services.

iv)          In
its discretion, Carpenter may choose to use the services of a qualified
third-party executive recruitment firm in connection with these services.  In such event, the fees payable for a
successful search shall be paid by Carpenter to the search firm and no portion
of such fee shall be retained by Carpenter.

 7
 

5)             EXPENSE
REIMBURSEMENT

The Client will reimburse
Carpenter and SCC for its reasonable out-of-pocket expenses including travel and
related costs incurred in connection with or arising out of their  activities under or contemplated by this
Agreement. Such reimbursement, which is in addition to any compensation payable
by the Client to Carpenter or SCC under this Agreement, shall be billed from
time to time and paid within 30 days of submission.  Expenses for each of the Application Services
and Capitalization Services phases shall not exceed $10,000 without the Client’s
consent.  Expenses for the Ongoing
Services phase shall be determined by agreement of the parties at the time of
commencement of any Ongoing Services activity.

6)             TERM

a)              This
agreement is effective as of the date first above written, and shall remain
effective until that date which is three years from the date of opening of the
Bank.  At that time and at each future
expiration date, unless Carpenter or Client shall have provided the other party
with written notice of its intention not to renew this Agreement within at
least 30 days of the expiration date, this Agreement shall automatically renew
for additional successive one year terms.

7)             INDEMNIFICATION

a)              The
Client agrees to indemnify and hold Carpenter, SCC and their affiliates and
their respective partners, directors, officers, employees, agents, and
controlling persons (each such person being an “Indemnified Party”) harmless
from and against any and all losses, claims, damages, expenses and liabilities,
joint or several, to which such indemnified Party may become subject under
applicable state or federal law, or otherwise, arising out of any actual or
proposed Business Combination or Capital Placement, or the retention of
Carpenter and SCC, or the services performed under this agreement by Carpenter
or SCC, and will promptly reimburse such Indemnified Party for all expenses
(including reasonable counsel fees and expenses) upon written request made from
time to time, including expenses incurred in connection with the investigation
of, preparation for, or defense of any pending or threatened claim or any
action or proceeding arising therefrom, whether civil, criminal, administrative
or investigative in nature, and whether or not such indemnified Party is a
party.  The Client will not be liable
under this indemnification provision to the extent that any loss, claim, damage,
liability, or expense is found in a final judgment by a court of competent
jurisdiction to have resulted primarily from Carpenter’s or SCC’s bad faith,
gross negligence, or willful misconduct.

b)             The
Client agrees to notify Carpenter and Carpenter and SCC agree to notify the Client
promptly of the assertion against either of them or any other person of any
claim or the commencement of any action or proceeding relating to any
transaction contemplated by this agreement.

c)              If
any indemnification or reimbursement sought under this provision were for any
reason not available to any Indemnified Party or insufficient to fully
indemnify it as and to the

 8
 

extent
contemplated by this provision, the Client will contribute to the amounts paid
or payable by such Indemnified Person in a proportion that appropriately
reflects the relative benefits to the Client and its equity owners on the one
hand, and Carpenter or SCC on the other, in connection with the matters to
which such indemnification or reimbursement relates and the relative faults of
such parties, as well as any other equitable considerations. The Client,
Carpenter and SCC agree that it would not be just and equitable if this
contribution were determined by pro rata allocation or any other method that
does not take into account such equitable considerations.  The relative benefits to the Client and its
equity owners and to Carpenter with respect to the services to be provided
under this Agreement will be deemed to be in the same proportion as (i) the
anticipated total proceeds of any capital offering (whether or not consummated
or); and (ii) the total proceeds of any M & A transaction (whether or not
consummated) as compared to (iii) the aggregate compensation actually paid to
Carpenter in connection with the services provided under this Agreement.  In no event will the Client contribute less
than the amount necessary to ensure that all Indemnified Parties, in the
aggregate, are not liable for any amounts in excess of the aggregate amount of
compensation actually received by Carpenter under this Agreement.

d)             In
no event shall Carpenter be liable for any amount in excess of the aggregate
amount of compensation actually received by Carpenter under this agreement.

e)              The
Client agrees to notify Carpenter and SCC, and Carpenter and SCC agree to
notify the Client promptly of the assertion against it or any other person of
any claim or the commencement of any action or proceeding relating to any
transaction contemplated by this agreement.

f)                In
the event Carpenter or SCC appears as a witness in any action brought against
the Client in which an Indemnified Party is not named as a defendant, the
Client agrees to reimburse Carpenter or SCC for all reasonable expenses
incurred and time expended by it in connection with its appearing as a witness.

8)             CONFIDENTIALITY

a)              During
the course of this Agreement, the Client may learn from Carpenter or SCC data,
discoveries, know-how, ideas, and other information which Carpenter considers
to be proprietary and confidential, for example information relating to its
internal processes, methods, documents, programs, operations, customers, and
present and future business or marketing plans of Carpenter or SCC (“Confidential
Information”).  Except as authorized by
Carpenter in writing, the Client agrees to keep confidential and not to use,
except in connection with the services to be provided under this Agreement all
Confidential Information.   All Confidential Information (and any copies
and notes thereof) shall remain the sole property of Carpenter.  Notwithstanding the foregoing, however, no
obligation of confidentiality shall apply to the extent Confidential
Information (i) is or becomes available to the public through no breach of this
Agreement by the Client; (ii) is obtained by the Client from a third party who
had the legal right to disclose the information to the Client; (iii) is already
in the possession of the Client on the date this Agreement becomes effective;
or

 9
 

(iv) is required
to be disclosed by law, government regulation, or court order. The obligation
of confidentiality with respect to Confidential Information shall continue for three
years beyond the date of this Agreement.

9)             OTHER
TERMS

a)              The
parties agree that (i) in the event of incorporation of the BHC, it shall become
a party to this Agreement, and (ii) upon approval of the charter application by
the Appropriate Regulator, the Bank shall become a party to this Agreement,
and, by written confirmation at that time, each of the BHC, if incorporated,
and the Bank shall assume their appropriate benefits and obligations as described
in this Agreement.

b)             The
Client acknowledges that while Carpenter shall provide advice and consultation
with respect to obtaining approval of the BHC and the Bank, no warranty,
expresses or implied, of the approval of any application is made by Carpenter.

c)              The
parties agree to take such further action as may be necessary and to execute
any further documentation that may be required (meeting customary industry
standards), in connection with future implementation of the additional services
described in this Agreement.

d)             The
Client acknowledges that it is not relying on the advice of Carpenter for tax,
legal or accounting matters, it is seeking and will rely on the advice of its
own professionals and advisors for such matters and it will make an independent
analysis and decision regarding any action taken based upon such advice.

e)              In
the event that an action or suit is brought to declare or enforce any term
hereof or any obligation created hereunder, the prevailing party shall be
entitled to recover from the losing party all reasonable costs and expenses
incurred or sustained by such prevailing party in connection with such suit or
actions, including attorney’s fees, costs and the prevailing statutory interest
from the other party.

f)                This
agreement embodies the entire understanding of the parties with respect to the
engagement of Carpenter, and both parties specifically acknowledge the
termination of the Initial Agreement as of the date first above written.  This agreement may be modified or amended only
by an instrument in writing signed by both parties.

g)             THIS
AGREEMENT WILL BE GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA WITHOUT
REGARD FOR CONFLICTS OF LAWS PRINCIPLES. 
THE CLIENT HEREBY EXPRESSLY CONSENTS TO THE PERSONAL JURISDICTION OF THE
STATE AND FEDERAL COURTS LOCATED IN THE STATE OF CALIFORNIA FOR ANY LAWSUIT
ARISING FROM OR RELATING TO THIS AGREEMENT.

h)             If
one or more of the provisions in this Agreement are deemed void by law, then the
remaining provisions will continue in full force and effect.

 10
 

i)                 All
parties acknowledge and agree that each of: (1) the parties are executing this
Agreement voluntarily and without any duress or undue influence; (2) the
parties has carefully read this Agreement and has asked any questions needed to
understand the terms, consequences, and binding effect of this Agreement and
fully understands them; and (3) the parties has sought the advice of an
attorney of their respective choice if so desired prior to signing this
Agreement.

If the foregoing
is in accordance with your understanding, please sign and return to us one
counterpart of this Agreement, whereupon this Agreement shall constitute a
binding agreement between the Client, Carpenter and SCC.

	
  CCFW Inc dba

  	
   

  
	
  CARPENTER
  & COMPANY

  	
  SB ORGANIZING GROUP

  
	
   

  	
   

  
	
   

  	
   

  
	
    /s/
  John D. Flemming

  	
   

  	
             /s/
  Jeffrey M. Watson

  	
   

  
	
  By:

  	
  John D. Flemming

  	
   

  	
  By:

  	
  Jeffrey M. Watson

  
	
  Its:

  	
  President

  	
   

  	
  Its:

  	
  President and CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
  SEAPOWER
  CARPENTER CAPITAL, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
    /s/
  John D. Flemming

  	
   

  	
   

  
	
  By:

  	
  John D. Flemming

  	
   

  	
   

  
	
  Its:

  	
  President

  	
   

  	
   

  
						

 

 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]