Document:

2000 Stock Option Plan of Canyon National Bank

 Exhibit 10.2 
 CANYON NATIONAL BANK 
 2000 STOCK OPTION PLAN 
 Adopted January 25, 2000 
 1. Purpose. The purpose of the 2000 Stock Option Plan (the “Plan”) is to strengthen CANYON NATIONAL BANK (the “Bank”) and those corporations which are or hereafter become subsidiary corporations of
the Bank, within the meaning of Section 424(f) of the Internal Revenue Code of 1986, as amended (the “Code”), by (i) encouraging selected employees and directors to improve operations and increase profits of the Bank;
(ii) encouraging selected employees and directors to accept or continue employment or association with the Bank; and (iii) increasing the interest of selected employees and directors in the Bank’s welfare through participation in the
growth in value of the common stock of the Bank. The Plan seeks to accomplish these purposes and results by providing a means whereby such persons may purchase shares of the common stock of the Bank 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 be administered by the Board of Directors of the Bank (the “Board of Directors”). Any action of the Board of Directors 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 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 where such action will be taken.
The Board of Directors may, in its sole discretion, from time to time, establish a Stock Option Committee composed of not less than three (3) persons who must be directors of the Bank and, by appropriate resolution, delegate to the Stock Option
Committee such power and authority over the administration of the Plan as the Board of Directors deems appropriate. Nothing contained herein shall prevent the Board of Directors from delegating to the Stock Option Committee full power and authority
over the administration of the Plan. 
 Subject to the express provisions of the Plan, the Board of Directors (or the Stock
Option 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 Stock Option Committee, if authorized) on matters referred to in this section shall be final and conclusive.

 3. Participation; Limitation on Amount of Outstanding Options. All employees of the Bank and its subsidiary corporations
shall be eligible for selection to receive both Incentive Options and Non-Qualified Options under the Plan. Directors of the Bank and its subsidiary corporations who are not employees of the Bank 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 the Stock Option 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 Stock Option 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 Bank’s authorized but unissued common stock, $5.00 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 104,000 shares. 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 Stock Option
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 Bank, 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, except as may otherwise be permitted pursuant to Section 8 below. 
 6. Option
Period. Each Option and all rights or obligations thereunder shall expire on such date as the Board of Directors (or the Stock Option 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 Bank (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. 
 7. Continuation of Employment. In the case of employees, nothing contained in the Plan (or in any Option agreement) shall obligate the Bank
or its subsidiary corporations to 

 
employ any Optionee for any period or interfere in any way with the right of the Bank 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 Stock Option 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 in respect of whole shares, and fractional share interests shall be disregarded except that they may be accumulated in accordance with the next preceding sentence. 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, the Optionee shall be required to pay to the Bank, in addition to the purchase price for the
shares being exercised, an amount equal to any taxes required to be withheld by the Bank in order to enable the Bank to claim a deduction in connection with the exercise of the Option. Options may be exercised by using one of the three methods set
forth below. 
 Cash Exercise. Options may be exercised by ten (10) days’ written notice delivered to the Bank 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. 
 Stock-for-Stock Exchange. Options may be exercised by delivery to the Bank of ten (10) days’ written notice stating the number of shares with respect to which the Option is being exercised, and by the delivery and surrender
to the Bank of shares of stock of the Bank which (i) have been owned by the Optionee for at least six (6) months or for such other period as the Board of Directors (or Stock Option Committee) may require; and (ii) have an aggregate
fair market value on the date of surrender equal to the exercise price as determined by the Board of Directors (or Stock Option Committee). 
 Cashless Exercise. Options may be exercised by delivery to the Bank often (10) days’ written notice stating the number of shares with respect to which the Option is being exercised, and by delivery to the Bank of
(i) an exercise notice instructing the Bank to deliver the certificates for the shares of stock 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 Bank 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. 
  

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 10. Cessation of Employment; Disability. Except as provided in Sections 6 and 11, if
an Optionee ceases to be employed by or ceases to serve as a director of the Bank or a subsidiary corporation for any reason other than death or disability, such Optionee’s Option shall expire ninety (90) days 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 Bank 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 Bank 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 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 Bank or such subsidiary corporation.

 11. Termination of Employment for Cause. If an Optionee’s employment by or service as a director of the Bank 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 Bank 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 Bank or a
subsidiary corporation, or removal pursuant to the exercise of regulatory authority by the Comptroller of the Currency (the “Comptroller”) 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 the exercise of regulatory authority by the Comptroller or any applicable 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
Bank or a subsidiary corporation or during the 90-day 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 serve as a director of the Bank or such subsidiary corporation. 
 13.
Adjustments Upon Changes in Capitalization. If the outstanding shares of the stock of the Bank are increased, decreased, or changed into, or exchanged for a different number or class of shares or securities of the Bank, without receipt
of consideration by the Bank, through reorganization, merger, recapitalization, reclassification, stock split, stock dividend, stock 

  

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consolidation, or otherwise, an appropriate and proportionate adjustment shall be made in the number and class of shares as to which Options may be granted.
A corresponding adjustment changing the number or class 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. 
 14. Terminating Events. Not less than
thirty (30) days prior to a “Terminating Event,” i.e., a dissolution or liquidation of the Bank, or a reorganization, merger, or consolidation of the Bank with one or more corporations as a result of which the Bank will not be the
surviving entity, or a sale of substantially all the assets and property of the Bank to another person, or in the event of any other transaction involving the Bank where there is a change in ownership of at least fifty percent (50%), except as may
result from a transfer of shares to another corporation in exchange for at least eighty percent (80%) control of that corporation, the Stock Option Committee or the Board of Directors 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. Upon the date thirty (30) days after delivery of said notice, any Option or portion thereof not exercised shall
terminate, and upon the effective date of the Terminating Event, the Plan and any Options granted thereunder shall terminate, unless 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 number and class of shares and prices. 
 15. Termination of Options in the Event of Order to Increase Capital. Notwithstanding any other provision of any Option granted hereunder,
if the Bank becomes subject to any written order or directive by the Comptroller or the FDIC requiring the Bank to increase capital, all outstanding Options under the Plan shall thereupon terminate and be of no further force and effect. 

16. 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; 
  

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 (c) increase the maximum term of Options provided for herein; or 
 (d) permit Options to be granted to anyone other than a full-time salaried officer or employee of the Bank or a subsidiary corporation, or
to a director of the Bank or a subsidiary corporation, 
 requires the approval of the Bank’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 Bank holding not less than a majority of the voting power of the Bank; 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 Stock Option 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. 
 17. 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 action of the Stock Option Committee, if authorized to take such action) described in the second sentence of Section 2 hereof; provided, however, that if appropriate resolutions of the Board of Directors (or the Stock
Option Committee, if authorized to grant options) 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 by the Board of Directors (or the Stock Option Committee,
if authorized to take such action) is taken by unanimous written consent of its members, the action of the Board of Directors (or the Stock Option Committee) shall be deemed to be at the time the last Board (or Stock Option Committee) member signs
the consent. 
 18. 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 Bank may be listed, shall have been fully complied with. The Bank will diligently endeavor to comply with all applicable securities laws before any Options are granted under the Plan and
before any stock is issued pursuant to Options. The Bank will register the 

  

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underlying shares of common stock under the Securities Act of 1933, as amended. Furthermore, the Optionee shall comply with all applicable federal and state
securities laws in connection with any sale or other disposition of such common stock. Additionally, the Optionee shall give the Bank notice of any sale or other disposition of any such shares not less than five (5) days after such sale or
other disposition. 
 19. 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 Bank. 
 20. 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 January 24, 2010, and no Options shall be granted under it thereafter, but such termination shall not affect any Option theretofore granted. 
 21. Option Agreement. Each Option shall be evidenced by a written Stock Option Agreement executed by the Bank 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 or Non-Qualified Option, and such other terms and conditions as are deemed desirable and are not
inconsistent with the Plan. 
 22. Exculpation and Indemnification. The Bank shall indemnify and hold harmless a member or
members of the Board of Directors (or the Stock Option Committee), in any action brought against such member or members to the maximum extent permitted by then applicable law and the Articles of Association and Bylaws of the Bank and any amendments
thereto. 
  

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 DIVISION A 
 INCENTIVE STOCK OPTION PLAN 
 A-l. Eligible Persons. All full-time salaried
officers and employees of the Bank and its subsidiary corporations shall be eligible for selection to participate in 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 full-time 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 corporation and its parent and subsidiary corporations) shall not exceed One Hundred Thousand Dollars
($100,000), regardless of any unused limits of previous years. 
 A-3. Incorporation By Reference. The provisions of Sections
5, 6, 9 and 19 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 full-time salaried officers and employees and all directors of
the Bank 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. 
  

 8Employment Agreement for Stephen G. Hoffman

 Exhibit 10.3 
 CANYON NATIONAL BANK 
 March 1, 1998 
 Mr. Stephen G. Hoffmann 
 75-313 14th Green Drive 
 Indian Wells, CA 92210 
 Dear Steve:

 This letter sets forth the basic terms and conditions of your employment with Canyon National Bank (“Bank”), following
approval by the Comptroller of the Currency (“OCC”) of the National Bank Charter Application, filed in October, 1997 (the “OCC Application”). By signing this letter agreement, you will be agreeing to these
terms. 
 1. Salary and Term. The term of this Agreement (“Term”) shall commence on the date of approval by the OCC
of the OCC Application (the “Effective Date”) and end one year after the final licensing and opening of the Bank, provided, that such Term shall be extended annually for successive one-year periods unless Bank or you shall
give notice of your intention not to so extend the Agreement not later than 60 days of its then scheduled expiration date, and, subject, in any event, to early termination as provided in this letter. Notwithstanding the foregoing, in the event the
Bank is not licensed and opened within one year of the Effective Date, the Term shall expire for all purposes at the end of such one-year period and without further action by the Bank or you. You will be paid a base salary at an annual rate of
$135,000 during the portion of the Term commencing with the Effective Date and ending with the date of final licensing and opening of the Bank, and thereafter at an annual rate of not less than $160,000, in each case, payable semi-monthly, which
covers all hours worked and all positions served, whether as an officer, director or otherwise. You will also be considered for merit increases in your base salary annually, with the amount of any increase to be determined by the Board of Directors
in its sole discretion. 

 Mr. Stephen G. Hoffman 
 March 1, 1998 
 Page 2 
  

 2. Bonus. In each year during the Term, the Board of Directors shall establish performance
goals and standards for you and the Bank respecting asset growth, profitability, return on assets, return on equity and/or such other criteria as may be determined by the Board, in its sole discretion. Based upon such goals, you shall be eligible
for consideration for a bonus of up to 30% of your base salary. 
 3. Duties. Your duties will be those of President and Chief
Executive Officer of the Bank, but you may be assigned other duties not inconsistent with such position and, if requested, shall serve as a director of the Bank and a member of any committees thereof. You will report directly to the Board of
Directors. 
 You are required to exercise your specialized expertise, independent judgment and discretion to provide high quality services.
You are required to follow office policies and procedures adopted from time to time by the Board of Directors and to take such general direction as you may be given from time to time by the Board of Directors. The Bank reserves the right to change
these policies and procedures at any time. You are required to devote your full energies, efforts and abilities to your employment, unless the Bank expressly agrees otherwise. 
 4. Trade Secret and Confidential Information. During the term of this Agreement, you will have access to “Confidential
Information,” which includes, but is not limited to, (i) financial and other sensitive information that the Bank receives from its customers; (ii) confidential business, trade secret and financial information provided you
by the Bank; (iii) personnel information (including without limitation employee compensation); and (iv) other confidential business information. 
 5. Nondisclosure of Confidential Information. You understand that information concerning the Bank’s business and the business of its customers is a valuable, special and unique asset and must be held in
the strictest confidence. You agree that you will not disclose information concerning the Bank’s business or the business of its customers, except as required by the Bank or by law. 

 Mr. Stephen G. Hoffman 
 March 1, 1998 
 Page 3 
  

 6. Ownership of Property. All Confidential Information shall be the sole property of the Bank
and, where applicable, its customers. You agree that upon termination of your employment for any reason, or upon request, you will deliver to the Bank all Confidential Information as well as all documents, data, records and communications, and all
drawings, models, prototypes or similar visual or conceptual presentations of any type, and all copies or duplicates, provided to you or obtained by you during your employment. 
 You are also required to return all equipment that belongs to the Bank, upon termination of your employment or upon request. 
 7. Non-solicitation. During your employment and for a period of one year immediately following your employment, you shall not, directly or
indirectly, engage or participate in the solicitation or attempt to solicit employees of the Bank to work for any business that is in competition in any manner whatsoever with the business of the Bank. 
 8. Employee Benefits. You will be eligible to participate in any medical, dental, vision, life insurance. Section 401(K) and long-term
disability plans which are maintained by the Bank on terms at least as favorable as those applicable to other employees of the Bank. You will be eligible for paid vacation (five weeks per year), holidays and other employee benefits which are
generally applicable to exempt employees. These benefits, other than vacation, may change from time to time. At least two weeks of vacation per year must be taken consecutively. 
 9. Additional Benefits. During the Term you will be entitled to reimbursement for business expenses incurred by you on behalf of the Bank subject
to such policies as are established by the Board of Directors respecting expense reimbursement. You will also be entitled to use of a Bank - owned or leased automobile with a monthly payment or lease cost not to exceed $500, auto insurance and
payment of all operating expenses related thereto. Your ongoing dues and expenses at your current country club shall also be reimbursed. 
 10. Term of Employment. Your employment with the Company during and following the Term is “at-will.” In other words, either you or the Company can terminate your employment at any time during the Term for any reason, with
or without cause and with or without notice. The “at-will” nature of employment is not subject to change or 

 Mr. Stephen G. Hoffman 
 March 1, 1998 
 Page 4 
  

 
modification of any kind except if in writing and signed by you and an authorized representative of the Board of Directors. 
 If you are terminated without cause during the Term, you will receive termination pay equal to 3 months pay at your then current base salary, together,
with a pro rata portion of a bonus for the calendar year in which such termination occurs equal to the amount obtained by multiplying the amount of the bonus, if any, paid to you for the preceding calendar year, by the number of months (including
partial months) you served as an employee in the year of termination, and dividing the result by 12. All termination payments will be payable in a lump sum within 15 days of your termination and your delivery to the Bank of a Waiver and Release in
the form of Attachment 1 to this letter. In such event, you will also receive continued participation in any group medical, dental, vision, disability and life insurance coverage then in effect, at the Bank’s expense, for 12 months
following such termination, unless you obtain employment by another employer prior to such date, at which time all paid benefits shall cease. We also agree that in the event the Bank does not open for business within one year of the approval of the
OCC Application, this Agreement shall terminate without any further obligation on the part of the Bank, including the right to receive termination pay or post-employment benefits. 
 Any payments made to you pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k) and
any regulations promulgated thereunder. 
 We agree that the term “for cause” shall mean the following: your personal
dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or
final cease and desist order, or material breach of any provision of this Agreement or any other grounds specified in any regulation of the OCC or the Federal Deposit Insurance Corporation (the “FDIC”) governing employment
agreements. 
 11. Options. The Bank shall adopt an Employee Stock Option Plan subject to approval by its shareholders
(“Plan”). Upon approval of the Plan by the Board of Directors you will be granted a ten-year option (the “Option”) to acquire a number of shares equal to 4.0% of the total shares issued and outstanding upon the
opening of the Bank, after giving effect to the exercise in full of your Option, at a purchase price equal to 

 Mr. Stephen G. Hoffman 
 March 1, 1998 
 Page 5 
  

 
the price at which shares were initially issued to investors in the Bank. Such Option shall vest as to 25% of the shares covered thereby upon the opening of
the Bank, and 25% on each of the next three annual anniversaries of such date. The Option shall otherwise be governed by and subject to the Plan. 
 12. Miscellaneous. Please note that this Agreement supersedes any prior agreements, representations or promises of any kind, whether written, oral, express or implied between the parties hereto with respect to the subject matters
herein. It constitutes the full, complete and exclusive agreement between you and the Bank with respect to the subject matters herein. 
 13.
Binding Agreement. The provisions of this Agreement shall inure to the benefit of the parties hereto, their heirs, legal representatives, successors and permitted assigns. This Agreement, and your rights and obligations hereunder, may not be
assigned by you. 
 14. Modification. Nothing contained in this Agreement shall be construed to impose any obligation on the Bank to
renew this agreement. Your employment is at will. This Agreement may be amended, modified, superseded, canceled, renewed or extended, and its terms or covenants may be waived, only by a written instrument executed by both of the parties, or in the
case of a waiver, by the party waiving compliance. Neither the continuation of employment nor any other conduct shall be deemed to imply a continuing obligation on the part of the Bank respecting your employment. The failure of either party at any
time or times to require performance of any provision hereof shall in no manner affect the right at a later time to enforce the same. No waiver by either party of the breach of any term or covenant contained in this Agreement, whether by conduct or
otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waiver of the breach of any other terms or covenant contained in this Agreement. 
 15. Arbitration. If any dispute, controversy or claim arises out of or relates to this Agreement or your employment, such dispute, controversy or
claim shall be settled by binding arbitration only in accordance with the Rules of Judicial Arbitration & Mediation Services, and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
The arbitrator shall determine which is the prevailing party and shall include in the award that party’s actual attorney’s fees and costs. The 

 Mr. Stephen G. Hoffman 
 March 1, 1998 
 Page 6 
  

 
arbitrator shall have no authority to grant any punitive or consequential damages to any party. As soon as practicable after selection of the arbitrator, the
arbitrator or his or her designated representatives shall determine a reasonable estimate of anticipated fees and costs of the arbitrator, and render a statement to each party setting forth that party’s pro rata share of said fees and costs.
Thereafter, each party shall, within ten (10) days of receipt of said statement, deposit said sum with the arbitrator. Failure of any party to make such a deposit shall result in a forfeiture by the non-depositing party of the right to
prosecute or defend the claim which is the subject of the arbitration, but shall not otherwise serve to abate, stay or suspend the arbitration. Notwithstanding the foregoing, the Bank may enforce the provisions of Sections 4 through 7 of this
Agreement by obtaining injunctive relief or other equitable remedies in any Court having jurisdiction over the parties. 
 In order to
confirm your agreement with and acceptance of these terms, please sign one copy of this letter and return it to me. The other copy is for your records. 
  

	
	 Very truly yours,

	
	 /s/ Thomas Suitt

	 Thomas Suitt, Chairman

 I agree to the terms of employment set forth in this Agreement. 
  

					
			
	 /s/ Stephen G. Hoffmann
	 		 	 3/6/98

	 Stephen G. Hoffmann
	 		 	 Date

 WAIVER AND RELEASE AGREEMENT 
 This Waiver and Release Agreement (the “Waiver Agreement”) is entered into by and among Stephen G. Hoffmann (“Employee”)
and Canyon National Bank, on its behalf and on behalf of its parents, subsidiaries and other affiliates (collectively, the “Company”). 
 RECITALS 
 A. Employee and the Company have entered into an Employment Agreement effective
March 1, 1998 (the “Agreement”). 
 B. A condition precedent to certain of Company’s obligations under the
Agreement is the execution of this Waiver Agreement. 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants
herein contained, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties, intending to be legally bound, agree and covenant as follows: 
 RELEASE 
 In consideration for the
execution of the Agreement, and the agreements set forth therein, Employee agrees unconditionally and forever to release and discharge the Company and its affiliated business entities, their respective officers, directors, employees,
representatives, attorneys, agents and assigns from any and all claims, actions, causes of action, demands, rights or damages of any kind or nature which Employee may now have, or ever have, whether known or unknown, including any claims, causes of
action or demands of any nature arising out of or in any way relating to Employee’s employment with, or separation from, the Company on or before the date of execution of this Waiver Agreement. 
 This release specifically includes, but is not limited to, any claims for discrimination and/or violation of any statutes, rules, regulations or
ordinances, whether federal, state or local, including, but not limited to, Title VII of the Civil Rights Act of 1964, as amended, age claims under the Age Discrimination in Employment Act of 1967, as amended by the Older Workers Benefits Protection
Act of 1990, the Employee Retirement Income Security Act of 1974, as amended, the California Fair Employment and Housing Act, the California Labor Code, the Equal Pay Act, the American With Disabilities Act, the Rehabilitation act of 1973, the
Racketeer Influenced and Corrupt Organizations Act, the Financial Reform Recovery and Enforcement Act of 1989, and/or Section 1981 of Title 42 of the United State Code. 
  

 ATTACHMENT 1 

 Employee further agrees knowingly to waive the provisions and protections of Section 1542 of the
California Civ. Code, which reads: 
 A general release does not extend to claims which the creditor does not know or suspect to exist in his
favor at the time of executing the release, which, if known by him, must have materially affected his settlement with the debtor. 
 REPRESENTATIONS OF EMPLOYEE 
 Employee represents and agrees that, prior to the execution of this Waiver Agreement, Employee
has had the opportunity to discuss the terms of this Waiver Agreement with legal counsel of Employee’s choosing. 
 Employee affirms
that no promise or inducement was made to cause Employee to enter into this Waiver Agreement other than the execution of the Agreement and the inducements provided therein. Employee further confirms that Employee has not relied upon any other
statement or representation by anyone other than what is in this Waiver Agreement as a basis for Employee’s agreement. 
 MISCELLANEOUS 
 Except for the Agreement and any written Stock Option Agreement, this Waiver Agreement sets forth the entire
agreement between Employee and the Company, and shall be binding both party’s heirs, representatives and successors. This Waiver Agreement shall be construed under the laws of the State of California, both procedurally and substantively. Any
and all disputes or claims arising out of, or in any way related to Employee’s employment, with, or separation from, the Company, as well as any and all disputes or claims arising out of, or in and related to, this Waiver Agreement, including,
without limitation, fraud in the inducement of this Waiver Agreement, or relating to the general validity or enforceability of this Waiver Agreement, shall be submitted to final and binding arbitration before an arbitrator of the American
Arbitration Association in San Mateo County, California in accordance with the rules of that body, and the prevailing party shall be entitled to reasonable costs and attorneys’ fees. Judgment on the award rendered by the arbitrator may be
entered in any court have jurisdiction thereof. If any portion of this Waiver Agreement is found to be illegal or unenforceable, such action shall not affect the validity or enforceability of the remaining paragraphs or subparagraphs of this Waiver
Agreement. 
 Employee acknowledges that Employee has been advised that Employee has twenty-one (21) days to consider this settlement,
and that Employee was informed that Employee has the right to consult with counsel regarding this Waiver Agreement. To the extent Employee has taken less than twenty-one (21) days to consider this Waiver Agreement, Employee 

  

 ATTACHMENT 1 
 2 

 
acknowledges that Employee has had sufficient time to consider the Waiver Agreement and to consult with counsel, and that Employee does not desire additional
time. 
 This Waiver Agreement is revocable by Employee for a period of seven (7) days following Employee’s execution of this
Waiver Agreement. The revocation by Employee of this Waiver Agreement must be in writing, must specifically revoke this Waiver Agreement and must be received by the Company prior to the eighth (8th) day following the execution of this Waiver
Agreement by Employee. This Waiver Agreement becomes effective, enforceable and irrevocable on the eighth (8th) day following Employee’s execution of the Waiver Agreement. 
 The undersigned agree to the terms of this Waiver Agreement and voluntarily enter into it with the intent to be bound hereby. 
 DATED:___________        _________________________ 
 Stephen G. Hoffmann 
 DATED:__________         CANYON NATIONAL BANK 
  

			
	
		
	By:	 	  
	Name:	 	  
	Title:	 	  

  

 ATTACHMENT 1 
 3

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