Document:

EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

This Agreement is made and is effective as of January 1, 2018, by and between Pacific City Bank (“Bank”), Pacific City
Financial Corporation, a California corporation and registered bank holding company (“Company”), and Henry Kim (“Executive”). 

WHEREAS, Bank and Company desire to employ Executive in the capacity of President and Chief Executive Officer, and Executive’s
background, expertise and efforts are expected to contribute to the success and financial strength of the Bank and Company; 
 WHEREAS, the
Bank and Company wish to assure themselves of the opportunity to benefit from Executive’s services for the period provided in this Agreement, and Executive wishes to serve in the employ of the Bank and Company on a full-time basis solely in
accordance with the terms hereof for such purposes; and 
 WHEREAS, the Board of Directors of the Bank and Company have determined that the
best interests of the Bank and Company would be served by Executive’s employment with the Bank under the terms of this Agreement; 

NOW, THEREFORE, in order to effect the foregoing, the parties hereto wish to enter into an employment agreement on the terms and conditions
set forth below. Accordingly, in consideration of the premises and the respective covenants and agreements of the parties herein contained, and intending to be legally bound hereby, the parties hereto agree as follows: 

 

	 	1.	Definitions. 

  

	 	(a)	“Agreement” means this employment agreement and any amendments hereto complying with Section 13(a) hereof. 

  

	 	(b)	“Board” means the Board of Directors of the Bank and/or the Board of Directors of the Company as the context requires. 

 

	 	(c)	“Cause” means: 

 (i) Executive’s personal dishonesty,
incompetence or willful misconduct; 
 (ii) Executive commits an act or acts or an omission to act which constitutes:
(a) a willful breach of duty in the course of Executive’s employment; (b) a habitual neglect of duty; (c) a willful violation of any applicable banking law or regulation; or (d) a willful violation of any policy, procedure,
practice, method of operation or specific mode of conduct established by the Board or as set forth in the Bank’s Employee Manual, if any; 

 (iii) Executive engages in activity which, in the opinion of the Board,
could materially adversely affect Bank’s or Company’s reputation in the community or which evidences the lack of Executive’s fitness or ability to perform Executive’s duties as determined by the Board, in good faith; or 

(iv) Executive commits any act or acts or an omission to act which would cause termination of coverage under the Bank’s
Bankers Blanket Bond as to Executive or as to Bank as a whole or any act, which would give rise to a colorable claim by the Bank under its Bankers Blanket Bond as determined by the Board in good faith. 

 

	 	(d)	“Change in Control” shall mean a change, in control of the Bank or Company of a nature that would be required to be the subject of prior approval by (A) the Federal Reserve Board pursuant to the
Bank Holding Bank Act of 1956, as amended, (B) the Federal Deposit Insurance Corporation under the Change In Bank Control Act, (C) the appropriate federal bank regulatory agency under the Bank Merger Act or (D) the California
Department of Financial Institutions pursuant to provisions of the California Financial Code; provided, that without limitation, and without consideration of regulatory exemptions from prior approval, such a Change in Control will be deemed to have
occurred if and when any of the following occur: (i) there is a transfer, voluntarily or by hostile takeover or proxy contest, operation of law or otherwise, of control of the Bank or Company, (ii) individuals, who were members of the
Board of the Bank or Company immediately prior to a meeting of the shareholders of the Bank or Company, as the case may be, which meeting involved a contest for the election of directors, do not constitute a majority of the Board of the Bank or
Company, as the case may be, following such election or meeting, (iii) an acquisition, directly or indirectly, of more than 25% of the outstanding shares of any class of voting securities of the Bank or Company by any Person, (iv) a merger
(in which the Bank or Company is not the surviving entity), consolidation or sale of all, or substantially all, of the assets of the Bank or Company, or (v) there is a change, during any period of two consecutive years, of a majority of the
Board of the Bank or Company as constituted as of the beginning of such period, unless the election of each director who is not a director at the beginning of such period was approved by a vote of at least
two-thirds of the directors then in office who were directors at the beginning of such period. For purposes of this definition, the term “Person” shall mean and include any individual, corporation,
partnership, group, association or other “person”, as such term is used in Section 14(d) of the Securities Exchange Act of 1934, other than the Bank or any employee benefit plan(s) sponsored by the Bank. 

(e) “Code” shall mean the Internal Revenue Code, as amended. 

  
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	(f)	“Disability” means physical or mental illness resulting in Executive’s absence on a full-time basis from Executive’s duties with the Bank and Company for 90 calendar days, subject to the
procedure described in Section 7(a). 

  

	(g)	“Expiration” means the termination of this Agreement (including Executive’s employment hereunder) and of any further obligations of the parties (except as specified in this Agreement) upon
completion of the Term. 

  

	(h)	“Good Reason” Termination by Executive of Executive’s employment for “Good Reason” shall mean termination based on: 

(i) an adverse change in Executive’s status or position(s) as an executive officer of the Bank or Company as in effect
immediately prior to the Change in Control, including, without limitation, any adverse change in Executive’s status or position as a result of a material diminution in Executive’s duties or responsibilities (other than, if applicable, any
such change directly attributable to the fact that the Bank or Company is no longer publicly owned) or the assignment to Executive of any duties or responsibilities which, in Executive’s reasonable judgment, are inconsistent with such status or
position(s), or any removal of Executive from or any failure to reappoint or reelect Executive to such position(s) (except in connection with the termination of Executive’s employment for Cause, Disability or Retirement or as a result of
Executive’s death or by Executive other than for Good Reason); 
 (ii) a reduction by the Bank or Company in
Executive’s base salary as in effect immediately prior to the Change in Control; 
 (iii) the failure by the Bank or
Company to continue in effect any Plan (as hereinafter defined) in which Executive is participating at the time of the Change in Control of the Bank or Company (or Plans providing Executive with at least substantially similar benefits) other than as
a result of the normal expiration of any such Plan in accordance with its terms as in effect at the time of the Change in Control, or the taking of any action, or the failure to act, by the Bank or Company which would adversely affect
Executive’s continued participation in any of such Plans on at least as favorable a basis to Executive as is the case on the date of the Change in Control or which would materially reduce Executive’s benefits in the future under any of
such Plans or deprive Executive of any material benefit under any Plan enjoyed by Executive at the time of the Change in Control; 

(iv) the failure by the Bank or Company to provide and credit Executive with the number of paid vacation days to which
Executive is then entitled in accordance with the Bank’s or Company’s normal vacation policy as in effect immediately prior to the Change in Control; 

  
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 (v) the Bank’s or Company’s requiring Executive to be based at an
office that is greater than 25 miles from where Executive’s office is located immediately prior to the Change in Control except for required travel on the Bank’s or Company’s business to an extent substantially consistent with the
business travel obligations which Executive undertook on behalf of the Bank or Company prior to the Change in Control; or 

(vi) the failure by the Bank or Company to obtain from any successor the assent to this Agreement contemplated by
Section 13(g) hereof. 
 For purposes of this Agreement, “Plan” shall mean any compensation plan such as an incentive, stock
option or restricted stock plan or any employee benefit plan such as a thrift, pension, profit sharing, medical, disability, accident, life insurance plan or a relocation plan or policy or any other plan, program or policy of the Bank or Company
intended to benefit employees. 
  

	(i)	“Person” means an individual, a group acting in concert, a corporation, a partnership, an association, a joint stock company, a trust, any unincorporated organization, a government or political
subdivision thereof, or any other entity whatsoever. 

  

	(j)	“Term” means the term of this Agreement as provided in Section 4. 

  

	(k)	“Termination” or “Terminate(d)” means the termination of Executive’s employment hereunder for any of the following reasons unless the context indicates otherwise: 

 

	 	(i)	Retirement by Executive; 

  

	 	(ii)	Death of Executive; 

  

	 	(iii)	Disability; 

  

	 	(iv)	Expiration; 

  

	 	(v)	Termination Without Cause; and 

  

	 	(vi)	Termination for Cause. 

  
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	 	(l)	“Termination Without Cause” or “Terminate(d) Without Cause” means the cessation of Executive’s employment hereunder for any reason except: 

 

	 	(i)	A resignation by Executive; 

  

	 	(ii)	Termination for Cause; 

  

	 	(iii)	Retirement; 

  

	 	(iv)	Disability; 

  

	 	(v)	Death; 

  

	 	(vi)	Expiration; or 

  

	 	(vii)	issuance of an order referred to in Section 7(f). 

 2. Employment. The
Bank and Company hereby agree to employ the Executive, and the Executive hereby agrees to serve the Bank and Company, for the period stated in Section 4 hereof and upon the terms and conditions set forth herein. 

3. Position and Responsibilities. The Executive shall serve as President and Chief Executive Officer of the Bank and
Company and shall have such responsibilities, duties and authority as are generally associated with such positions and as may from time to time be assigned to the Executive by the Board that are consistent with such responsibilities, duties and
authority. During the Term of this Agreement, the Executive shall devote all his time, attention, skill and efforts during normal business hours to the business and affairs of the Bank and Company. 

4. Term of Agreement. Subject to the terms and provisions of this Agreement, this Agreement and the period of
Executive’s employment shall be deemed to have commenced as of January 1, 2018 and shall continue for an initial term of four (4) years thereafter until 12:00 midnight December 31, 2021, unless sooner terminated. If the Bank and
Company do not intend to retain Executive as an employee after the Expiration of the Term, the Bank and Company shall give Executive not less than 90 days prior to the expiration of the Term written notice of such decision and upon expiration of the
Term after such notice, Executive’s employment and position as an officer and director of the Bank and Company shall cease without further liability of the parties to each other. Executive’s employment and position as an officer and
director of the Bank and Company shall also terminate, and the Term of this Agreement will expire, upon Executive’s resignation, retirement, death or Disability, or upon Executive’s Termination for Cause. 

5. Duties. During the Term hereof, Executive shall devote exclusively all of his business time, attention, skill and
efforts to the faithful performance of the business of the Bank and Company to the fullest extent necessary to properly discharge his duties and responsibilities hereunder and consistent with the highest and best standards of the banking industry
and in compliance with all applicable laws, regulations and rules as well as the Bank’s and Company’s Articles of Incorporation and Bylaws. Further, with the approval of the Board, from time to time, Executive may serve, or continue to
serve, on the boards of directors of, and hold any other offices or positions in, companies or charitable, political or civic organizations, which, in such Board’s judgment, will not present any material conflict of interest with the Bank and
Company and will not unfavorably affect the performance of Executive’s duties pursuant to this Agreement. 

  
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	 	6.	Salary, Bonus and Related Matters. 

  

	 	(a)	The Bank shall pay to the Executive an annual base salary of Three Hundred Fifty Thousand Dollars ($350,000) which shall be adjusted pursuant to the provisions of Subsection (b), below, after the first year of the Term.
Executive’s salary shall be payable at regular intervals in accordance with the Bank’s normal payroll practices now or hereafter in effect. 

  

	 	(b)	Executive’s salary shall be reviewed at least annually by the Board or a committee designated by the Board, and shall be adjusted based upon Executive’s job performance and the Bank’s and Company’s
financial condition and performance; provided, however, that in no event shall Executive’s annual salary be less than the amount specified by subsection (a), above, and such adjustments, if any, shall be in the sole discretion of the Board.

  

	 	(c)	Subject to the satisfaction of the qualitative and quantitative performance criteria set forth in Schedule A, the Bank shall pay to the Executive an annual bonus equal to the lesser of: (a) 1.5% of the Company’s pre-tax net profit for the preceding year, or (b) 100% of Executive’s annual base salary then in effect. Such annual bonus shall be paid within 60 days of the year-end
upon which the bonus payment is based. For purposes of such bonus, pre-tax net profits shall be determined in accordance with generally accepted accounting principles. The performance criteria set forth in
Schedule A are subject to annual review, adjustment and modification at the sole discretion of the Board. Following any annual review of the performance criteria when such criteria are changed, a new Schedule A shall be prepared by the Board and
provided to Executive. 

 Executive may, in the sole discretion of the Board also receive a discretionary bonus based on
individual merit and performance. The amount of the discretionary bonus, if any, shall be determined by the Board. 
  

	 	(d)	During the period of the Executive’s employment hereunder, the Executive shall be entitled to receive prompt reimbursement for all reasonable and customary expenses incurred by the Executive in performing services
hereunder in accordance with the general policies and procedures established by the Bank. Executive shall provide the Bank with detailed records (sufficient to document compliance with the Bank’s policies and comply with the record-keeping
requirements of state and federal taxing authorities) of the nature and purpose of each expense submitted for reimbursement or incurred by credit card. If the Board determines that any expense claimed or incurred by Executive is not a proper
business expense, or if any such expense cannot properly be claimed as a deduction on the Bank’s federal income tax return, Executive shall reimburse the Bank for the full amount thereof. 

  
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	 	(e)	During the period of the Executive’s employment hereunder, the Executive shall be entitled to participate in (A) all employee benefit plans or arrangements of the Bank on the same basis as other employees of
the Bank, including, without limitation, plans or arrangements providing medical insurance, dental insurance, life insurance, disability insurance, sick leave, or retirement and (B) all retirement and disability benefit plans or programs which
may be subsequently adopted, including matching funds contributions by the Bank (in an amount to be determined in the sole discretion of the Board) if a 401k plan is ever established by the Bank. 

 

	 	(f)	Executive shall be entitled to three weeks of paid vacation per year during the Term. Executive shall comply with Bank’s standard employee policies and practices in scheduling and taking vacations.

  

	 	(g)	Bank shall pay all expenses (including the lease payments, insurance as well as payments for maintenance and related costs) incurred in a timely manner in connection with Executive’s lease of an automobile in
Executive’s discretion subject to the Board’s approval that the automobile is customary in the banking industry for an executive with Executive’s job title, duties, and needs to perform Executive’s duties and conduct bank
business. In the alternative to a Bank provided automobile, Executive may choose instead to receive an automobile allowance of $1,500.00 per month from Bank. 

  

	 	(h)	Contemporaneous with the first day of employment hereunder, Company agrees to grant Executive an option to purchase fifty thousand (50,000) shares of Company common stock at its fair market value as of that date. Said
option shall be deemed a non-qualified stock option and subject to vesting at twenty five percent (25%) per year; provided that such option shall become fully vested immediately preceding a Change in Control.
Additional stock option grants, if any, shall be reviewed annually and may be awarded, as the Board in its sole discretion may determine. 

  
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	 	7.	Termination. 

  

	 	(a)	Executive’s employment hereunder shall cease at any time by Executive’s resignation, or by Executive’s retirement, death or Disability. Disability shall be deemed to have occurred only after the following
procedure has been satisfied: If within 30 days after a written notice of proposed Termination for Disability is given to Executive by the Bank, Executive has not returned to the full-time performance of his duties, the Bank may end Executive’s
employment by giving written notice of Termination for Disability. Such notice may be given by the Bank following Executive’s absence from Executive’s duties by reason of physical or mental disability for sixty (60) calendar days
during any ninety (90) calendar day period. 

  

	 	(b)	Executive’s employment shall cease upon a reasonable and good faith finding of Cause by the Board. 

  

	 	(c)	Executive’s employment may be terminated Without Cause for any reason, subject to the payment of all amounts required by Section 8 hereof. 

 

	 	(d)	Executive’s employment shall cease upon the expiration of the Term of this Agreement as provided in Section 4 hereof. 

  

	 	(e)	If the Executive is suspended and/or temporarily prohibited from participating in the conduct of the Bank’s or Company’s affairs by a notice served under Sections 8(e) or (g) of the Federal Deposit
Insurance Act or similar statute, rule or regulation, the Bank’s and Company’s obligations under this Agreement shall be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice are
dismissed, the Bank shall, (i) pay the Executive all or part of the compensation withheld while its obligations under this Agreement were suspended and (ii) reinstate (in whole or in part) any of its obligations which were suspended.

  

	 	(f)	If the Executive is removed and/or permanently prohibited from participating in the conduct of the Bank’s or Company’s affairs by an order issued under Sections 8(e) or (g) of the Federal Deposit
Insurance Act or similar statute, rule or regulation, all obligations of the Bank under this Agreement shall terminate as of the effective date of the order without any liability of the Bank to Executive or any other Person. 

 

	 	(g)	Regardless of the reason for termination of employment, Executive shall be deemed to have resigned from all corporate officer positions and as a director of Bank and Company contemporaneously with such termination of
employment. 

  
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	 	8.	Payments to Executive Upon Termination. 

  

	 	(a)	In the event of Termination of this Agreement due to Executive’s death, Disability or retirement, Executive or Executive’s spouse and/or estate shall be entitled to all benefits generally available to Bank
employees, or their spouses and/or estates, as of the date of such death, Disability or retirement, without reduction. 

  

	 	(b)	In the event of Executive’s resignation or upon Expiration, the Bank shall have no further obligations to Executive under this Agreement or otherwise, except as may be expressly required by law. 

 

	 	(c)	In the event Executive is Terminated for Cause, the Bank shall have no further liability to Executive for any payment under this Agreement, except as may expressly be required by law. 

 

	 	(d)	Upon the occurrence of a Termination Without Cause, and subject to his execution of a release of claims in favor of the Bank, Company, and their affiliates and respective officers and directors in the form attached
hereto as Exhibit 1 (the “Release”) and such Release becoming effective within thirty (30) days following the Termination Date (such thirty-day period, the “Release Execution Period”),
the Bank shall continue to provide Executive his base salary then in effect only, upon such terms and at such times as described herein, for a period not to exceed six months if more than six months remain in the Term, or if less than six months are
remaining on the Term, then for the remaining portion of the Term. 

  

	 	(e)	Subject to Section 8(h) hereof and his execution of a Release in the form attached hereto as Exhibit 1 which becomes effective within the Release Execution Period, if, (i) prior to a Change in Control during a
period while a transaction that, if completed would constitute a Change in Control, is pending, or (ii) within twelve (12) months after a Change in Control shall have occurred, Executive’s employment by the Bank or Company shall be
(a) terminated by the Bank or Company other than for Cause, Disability or retirement or (b) terminated by Executive for Good Reason, or (c) this Agreement shall expire prior to such Change in Control at a time when a transaction that,
if completed would constitute a Change in Control, is pending and Executive is willing to continue his employment with the Bank and Company until completion of such transaction, then Bank shall pay to Executive, no later than the first day of the
seventh (7th) month following Executive’s termination: 

(I) Executive’s salary through the date of termination at the rate in effect just prior to the time a notice of
termination is given plus any benefits or awards (including both the cash and stock components) which pursuant to the terms of any Plans have been earned or become payable, but which have not yet been paid to Executive (including amounts which
previously had been deferred at Executive’s request); and 

  
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 (II) as severance pay and in lieu of any further salary for periods
subsequent to the date of termination, an amount in cash equal to the amount of pay (based on Executive’s then annual base salary) Executive would be entitled to for the remaining portion of the Term had executive not been otherwise terminated.

  

	 	(f)	All payments provided in Section 8 shall be paid in cash from the general funds of the Bank, and no special or separate fund need be established and no other segregation of assets need be made to assure payment.

  

	 	(g)	The Bank, Company and Executive agree that the payments being made under this Agreement represent reasonable compensation for services and that neither the Bank, Company nor Executive will file any returns or reports
which take a contrary position. 

  

	 	(h)	Reduction of Payments. 

 (i) Notwithstanding anything in the foregoing to
the contrary, if the payments made to Executive following a Termination Without Cause, Change in Control or any of the other payments provided for in this Agreement, together with any other payments which Executive has the right to receive from the
Bank would constitute a “parachute payment” (as defined in Section 280G of the Code) the payments pursuant to this Agreement shall be reduced to the largest amount as will result in no portion of such payments being subject to the
excise tax imposed by Section 4999 of the Code; provided, however, that the determination as to whether any reduction in the payments under this Agreement pursuant to this proviso is necessary shall be made in good faith by the Bank’s
independent auditors or if such firm is no longer providing tax services to Bank, to such other tax advisor as shall be mutually acceptable to Bank and Executive, and such determination shall be conclusive and binding on the Bank and Executive with
respect to the treatment of the payment for tax reporting purposes. 
 (ii) If the Company is subject to the executive
compensation limitations imposed by state or federal regulators at the time the Executive receives payment(s) under sections 8(d) and/or 8(e) and any such payment(s), together with any other payments which Executive has the right to receive from the
Company, exceed the limits allowed for Executive established by such state or federal regulators, then the aggregate payments pursuant to this Agreement, and any other agreement with Executive, shall be reduced to the largest amount as will result
in no portion of such payments violating the executive compensation limitations imposed by such state or federal regulators. 

  
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 (iii) Notwithstanding any provision existing in this Agreement or any
amendment thereto, it is the intent of the Bank, Company and Executive that any payment or benefit provided pursuant to this Agreement shall be made and paid in a manner, at a time and in a form which complies with the applicable requirements of IRC
Section 409A, in order to avoid any unfavorable tax consequences resulting from any such failure to comply. Furthermore, for the purposes of this Agreement, IRC Section 409A shall be read to include any related or relevant IRS Notices
(including but not limited to Notice 2007-86). 
 (iv) In the event of any ambiguity
in terms, or in the event further clarification of any term or provision is necessary, all interpretations and payouts of benefits based thereon shall be in accordance with IRC 409A and any related notices or guidance thereon. 

 

	 	(i)	The receipt of the amounts described in this Section 8, and attorneys’ fees as set forth in Section 12, if any, shall constitute Executive’s sole remedy for breach of this Agreement against the Bank,
Company and their officers, directors, employees and agents. 

  

	 	9.	Confidentiality and Trade Secrets. 

  

	 	(a)	During the Term, Executive will have access to and become acquainted with what Executive and Bank and Company acknowledge are trade secrets, to wit, knowledge or data concerning Bank and Company, including its
operations and business, and the identity of customers of Bank and Company, including knowledge of their financial condition, their financial needs, as well as their methods of doing business. Executive shall not disclose any of the aforesaid trade
secrets, directly or indirectly, or use them in any way, either during the Term or for a period of twenty four (24) months after the termination of the Term of this Agreement, except as required in the course of Executive’s employment with
Bank and Company. 

  

	 	(b)	Executive expressly agrees that all manuals, documents, files, reports, studies, instruments, software, computer programs or similarly generated electronic materials or other materials used and/or developed by Executive
during the Term are solely the property of Bank and Company, and that Executive has no right, title or interest therein. Upon termination of the Term of this Agreement, Executive or Executive’s representative shall promptly deliver possession
of all of said property to Bank and Company in good condition. 

  
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	 	(c)	During the period of his employment hereunder and for a period of two years following the cessation of such employment (irrespective of the reason therefore), Executive shall not, except as required by any court,
supervisory authority or administrative agency, without the written consent of the Board or a person authorized thereby, disclose to any person, other than an employee of the Bank, Company or a person to whom disclosure is reasonably necessary or
appropriate in connection with the performance by the Executive of duties as an employee of the Bank and Company, any confidential information obtained by him while in the employ of the Bank and Company; provided, however, that confidential
information shall not include any information known generally to the public (other than as a result of an unauthorized disclosure by the Executive). 

10. Waivers not to be Continued. Any waiver by a party of any breach of this Agreement by the other party shall not
be construed as a continuing waiver or as a consent to any subsequent breach by the other party. 
 11. Notices.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand or mailed, certified or registered mail, with postage prepaid, to the following addresses or to
such other address as either party may designate by like notice. 
  

	 	A.	If to the Bank and Company, to: 

 Pacific City Financial Corporation and/or 

Pacific City Bank 
 3701
Wilshire Boulevard, Suite 100 
 Los Angeles, California 90010 

Attn: Chairman of the Board 

with a copy to: 
 Kenneth E.
Moore, Esq. 
 STUART | MOORE | STAUB Law 

641 Higuera Street, Suite 302 

San Luis Obispo, California 93401 

Facsimile: (805) 545-8599 

  
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	 	B.	If to Executive, to: 

 Henry Kim 

507 N. Irving Blvd. 
 Los
Angeles, California 90004 
 and to such other or additional person or persons as either party shall have designated to the other party in writing by like
notice. 
 12. Arbitration. Any dispute or controversy arising or in connection with this Agreement shall, upon
written request of one party to the other, be submitted to and settled exclusively by arbitration in the State of California and be governed by the California Arbitration Act as set forth in the California Code of Civil Procedure. Judgment may be
entered on the arbitrator’s award in any court of competent jurisdiction. The cost of such arbitration, including reasonable attorney’s fees, shall be borne by the losing party or in such proportions as the arbitrator(s) shall decide.
Arbitration shall be the exclusive remedy of Executive, Bank and the Company and the award of the arbitrator(s) shall be final and binding upon the parties. All reasonable costs, including reasonable attorney’s fees, incurred in enforcing an
arbitration award in court, or of seeking a court order to compel arbitration, shall be borne by the losing party in such proceedings. 

13. General Provisions. 
  

	 	(a)	This Agreement constitutes the entire agreement by the parties with respect to the subject matter hereof, and supersedes and replaces all prior agreements among or between the parties, unless otherwise provided herein.
No amendment, waiver or termination of any of the provisions hereof shall be effective unless in writing and signed by the party against whom it is sought to be enforced. Any written amendment, waiver, or termination hereof executed by the Bank,
Company and Executive shall be binding upon them and upon all other Persons, without the necessity of securing the consent of any other Person, and no Person shall be deemed to be a third-party beneficiary under this Agreement. 

 

	 	(b)	This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same agreement. 

 

	 	(c)	Except as otherwise expressly set forth herein, no failure on the part of any party hereto to exercise and no delay in exercising any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy. 

  
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	 	(d)	The headings of the Sections of this Agreement have been inserted for convenience of reference only and shall in no way restrict or modify any of the terms or provisions hereof. 

 

	 	(e)	If for any reason any provision of this Agreement is held invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of any other provision of this Agreement. If any
provision of this Agreement shall be held invalid or unenforceable in part, such invalidity or unenforceability shall in no way effect the rest of such provision not held so invalid, and the rest of such provision, together with all other provisions
of this Agreement, shall to the full extent consistent with law continue in full force and effect. 

  

	 	(f)	This Agreement shall be governed and construed and the legal relationships of the parties determined in accordance with the laws of the State of California applicable to contracts executed and to be performed solely in
the State of California. 

  

	 	(g)	The Bank and Company shall require any successor in interest (whether direct or indirect or as a result of purchase, merger, consolidation, change in control or otherwise) to all or substantially all of the business
and/or assets of the Bank or Company to expressly assume and agree to perform the obligations under this Agreement in the same manner and to the same extent that the Bank and Company would be required to perform if no such succession had taken
place. 

  

	 	(h)	Executive acknowledges that he has been encouraged to consult with legal counsel of Executive’s choosing concerning the terms of this Agreement prior to executing this Agreement. Executive acknowledges that this
Agreement has been prepared by STUART | MOORE | STAUB Law, which has served as counsel to the Bank and Company in this matter and not as counsel to Executive. Any failure by Executive to consult with competent counsel prior to executing this
Agreement shall not be a basis for rescinding or otherwise avoiding the binding effect of this Agreement. The parties acknowledge that they are entering into this Agreement freely and voluntarily, with full understanding of the terms of this
Agreement. Interpretation of the terms and provisions of this Agreement shall not be construed for or against either party on the basis of the identity of the party who drafted the terms or provisions in question. 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written. 
  

							
	ATTEST:	 		 	PACIFIC CITY FINANCIAL CORPORATION
				
		 		 	By:	 	 /s/ Sang Young Lee

		 		 	Chairman of the Board
			
		 		 	PACIFIC CITY BANK
				
		 		 	By:	 	 /s/ Sang Young Lee

		 		 	Chairman of the Board
			
		 		 	THE EXECUTIVE
			
		 		 	 /s/ Henry Kim

		 		 	Henry Kim

  
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 SCHEDULE A 

Initial Performance Criteria for Executive’s Annual Discretionary Bonus 

 

							
	 	  	 Performance Metric
	  	Weight	 
	1	  	ROA on budget	  	 	20	% 
	2	  	Efficiency Ratio compared to previous two years and peer banks	  	 	10	% 
	3	  	Total Delinquent loans compared to previous two years and peer banks	  	 	20	% 
	4	  	Personal Performance + Overall satisfactory ratings in most recent Compliance and Safety and Soundness exams	  	 	20	% 
	5	  	Loan Growth	  	 	15	% 
	6	  	Deposit Growth	  	 	15	% 
		  		  	 	100	% 

  
 16 

 EXHIBIT 1 TO EMPLOYMENT AGREEMENT 

WAIVER AND RELEASE AGREEMENT 

This Waiver and Release Agreement (“Agreement”) is made as of the date last written below, by and between Pacific City Bank and
Pacific City Financial Corporation (collectively, “Employer”) and Henry Kim (“Employee”). This Agreement is made with specific reference to the following facts: 

RECITALS 
 A. Employer and
Employee have entered into an Employment Agreement dated January 1, 2018. 
 B. A condition precedent to Employer’s obligations
under the Employment Agreement is the Employee’s execution of this Agreement upon termination of Employee’s employment. 
 C.
Employee is not entitled to receive severance pay or any additional termination benefits from Employer, other than as set forth in the Employment Agreement. 

Waiver and Release 
 NOW,
THEREFORE, for and in consideration of the foregoing Recitals, and the mutual covenants, agreements and considerations set forth below, the sufficiency of which are hereby agreed, the parties, intending to be legally bound, agree as follows: 

In consideration of this Agreement and the severance consideration extended to Employee under the Employment Agreement in sections 8(d) and/or
(e) which is conditioned upon Employee’s execution of this Agreement, Employee does hereby for himself, his administrators, agents, successors-in-interest and
assigns, fully and forever release and discharge Pacific City Bank, Pacific City Financial Corporation, their shareholders, directors, officers, employees, attorneys and agents, and each of them (collectively, the “Released Parties”), of
and from any and all promises, agreements, claims, demands, actions, causes of action, losses and expenses of every nature whatsoever known or unknown, suspected or unsuspected, filed or unfiled, against them by reason of any occurrences or any
damages or injuries in any way sustained by Employee at any time prior to and including the date of this Agreement, including, but not limited to, any and all claims or causes of action arising from his employment by Employer or the termination of
his employment with Employer. 
 Employee expressly acknowledges and agrees that this Agreement releases claims that include, but are not
limited to: breach of contract (express or implied); intentional infliction of emotional harm; wrongful discharge; defamation or other tort claims; attorneys’ fees or court costs; claims arising out of: Title VII of the Civil Rights Act of
1964, as amended, 42 U.S.C. 2000(e) et seq. (Title VII); the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. Section 621 et seq. (“ADEA”); the Older Workers Benefit Protection Act (“OWBPA”);

  
 1 

 
the California Fair Employment and Housing Act, Part 2.8 Division 3, Title 2 of the Government Code, Section 12900-12996 (FEHA); the Rehabilitation Act of 1973, as amended, Section 1981
of Title 42 of the United States Code; Labor Code Section 1102.1; or any other federal, state, or municipal statute, ordinance or common-law theory relating to wrongful employment termination, breach of
contract, breach of fiduciary duty, discrimination in employment or unfair employment practices. 
 Employee hereby releases the Released
Parties from any unknown or unanticipated damages arising from the matters set forth in this Agreement. Employee acknowledges that he is familiar with, and hereby waives, all rights recognized by the provisions of Section 1542 of the California
Civil Code, which provides as follows: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT
TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 

Being thus familiar and aware, Employee expressly waives the effects of Civil Code Section 1542, as well as any analogous state or
federal statute or regulation. Thus, notwithstanding the provisions of Civil Code Section 1542, and for the purpose of effecting a full and complete release, Employee expressly acknowledges that this Agreement is intended to include in its
effect, without limitation, any and all claims or causes of action which Employee may now have or did have, including claims or causes of action he does not know of or suspect to exist in his favor as of the Effective Date of this Agreement, and
that this Agreement contemplates that all such claims and causes of action will be extinguished. The parties hereby acknowledge and agree that this release does not waive any future claims the Employee may have. 

This Agreement shall become effective on the 8th calendar day after the date of execution
by Employee (the “Effective Date”). In all events, however, this Agreement must have been executed by Employee and delivered to Employer no later than 5:00 p.m. on [expiration date]. Thereafter, this Agreement shall be deemed withdrawn by
Employer and shall no longer be capable of acceptance or execution by Employee. 
 In express consideration for Employee’s voluntary
execution and delivery of this Agreement, Employer shall pay to Employee those benefits set forth in the Employment Agreement. 
 Employee
acknowledges that, but for this Agreement, he would not be entitled to the benefits set forth in the Employment Agreement. 

  
 2 

 Employee is advised to review this Agreement and its terms with an attorney and any other
advisors of his choice. Employee represents that he understands all terms and conditions of this Agreement completely and executes this Agreement voluntarily, without any inducements, promises, or representations made by Employer or any person
purporting to represent or serve Employer, except as stated in this Agreement. 
 The following miscellaneous provisions shall apply to this
Agreement: 
 This Agreement and any other documents referred to herein shall in all respects be interpreted, enforced and governed by and
under the laws of the State of California. The language of this Agreement shall be construed as a whole according to its fair meaning, and not strictly for or against any of the parties. 

This Agreement contains all of the understandings and agreements of whatsoever kind and nature existing between the parties with respect to
the matters addressed herein. This Agreement may only be amended by a written agreement signed by the parties hereto. 
 This Agreement may
be executed in one or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same agreement. 

Each party executing this Agreement has full authority, mental capacity and power to do so, and no further actions are otherwise necessary to
bind himself to it. 
 If any provision of this Agreement or the application of such provision to any person or circumstance shall be held
invalid by a court of competent jurisdiction, the remainder of this Agreement or the application of such provision to persons or circumstances other than those to which this Agreement is held invalid shall not be affected thereby. The parties hereto
agree that each provision of this Agreement is a material provision and that failure of any party to perform any one provision hereof shall be the basis of the voiding of the entire Agreement at the option of the other party, or for pursuing an
action at law for such breach. Any party may waive or excuse the failure of any other party to perform any provision of this Agreement; provided, however, that any such waiver shall not preclude the enforcement of this Agreement upon any subsequent
breach. The parties further agree that in the event a court of competent jurisdiction finds any of the provisions of this Agreement to be unenforceable, it is the parties’ intent that such provisions be reduced in scope by the court, but only
to the extent being necessary by the court to render the provision reasonable and enforceable. 
 Each of the parties agrees to execute any
and all further agreements or documents necessary to effectuate the intent and purposes of this Agreement. 
 All pronouns and any
variations thereof shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the identity of the person, persons or entities may require. 

The provisions of this Agreement shall be deemed to obligate, extend to and inure to the benefit of the successors, assigns, transferees,
grantees and indemnities of the parties. 

  
 3 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date designated below
their signatures. 
  

											
	“EMPLOYEE”	 		 	 “EMPLOYER”
 PACIFIC CITY
BANK
	 	
					
	  
	 		 	By:	 	  
	 	
	Name:	 	Henry Kim	 		 	Title:	 	  
	 	
	Dated:	 	  
	 		 	Dated:	 	  
	 	*
				
		 		 	PACIFIC CITY FINANCIAL CORPORATION	 	
						
		 		 		 	By:	 	  
	 	
		 		 		 	Title:	 	  
	 	
		 		 		 	Dated:	 	  
	 	*

  

	*	No sooner than seven calendar (7) days after the Employee’s signature 

  
 4EX-10.2

 Exhibit 10.2 

PACIFIC CITY FINANCIAL CORPORATION 

2013 EQUITY BASED COMPENSATION PLAN, AS AMENDED 

I. THE PLAN 
 1.1. Purpose. The
purpose of this 2013 Equity Based Compensation Plan (the “Plan”) is to promote the success of the Company by providing an additional means through the grant of Awards to attract, motivate, and retain key employees, including officers, and
directors of the Company through the grant of stock-based compensation awards and incentives for high levels of individual performance and improved financial performance of the Company. 

1.2. Definitions 
 (a) “Award” shall mean an
award of any Option, Restricted Stock Award, or any combination thereof, whether alternative or cumulative, authorized by and granted under this Plan. 
 (b)
“Award Agreement” shall mean a written agreement signed by the Participant setting forth the terms and conditions of an Award granted to the Participant as determined by the Committee. 

(c) “Award Date” shall mean the date upon which the Committee adopts a resolution granting an Award or such later date as the Committee designates as
the Award Date at the time the Committee adopts a resolution granting the Award. 
 (d) “Award Period” shall mean the period beginning on an Award
Date and ending on the expiration date of such Award. 
 (e) “Beneficiary” shall mean the person, persons, trust or trusts entitled, by will or the
laws of descent and distribution or pursuant to a valid designation of a beneficiary on a form acceptable to the Committee, to receive the benefits specified in the Award Agreement and under this Plan in the event of a Participant’s death, and
shall mean the Participant’s executor or administrator if no other Beneficiary is identified and able to act under the circumstances. 
 (f)
“Board” shall mean the Board of Directors of the Company. 
 (g) “Change in Control Event” shall be deemed to have occurred if: 

(A) there shall be consummated (1) any consolidation or merger of the Company in which the Company is not the continuing or surviving
corporation, or pursuant to which shares of the Company’s Common Stock would be converted in whole or in part into cash, securities or other property, other than a merger of the Company in which the holders of the Company’s Common Stock
immediately prior to the merger have substantially the same proportionate ownership of common stock of the surviving corporation immediately after the merger, or (2) any sale, lease, exchange or transfer (in one transaction or a series of
related transactions) of all or substantially all the assets of the Company, or 
 (B) the shareholders of the Company shall approve any plan
or proposal for the liquidation or dissolution of the Company, or 

 (C) any “person” (as such term is used in Sections 13(d)(3) and 14(d)(2) of the
Exchange Act), other than the Company or a subsidiary thereof or a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company, shall become the
beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company representing 25% or more of the combined voting power of the Company’s then outstanding securities
ordinarily (and apart from rights accruing in special circumstances) having the right to vote in the election of directors, as a result of a tender or exchange offer, open market purchases, privately negotiated purchases or otherwise, or 

(D) at any time during a period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors of
the Company shall cease for any reason to constitute at least a majority thereof, unless the election or the nomination for election by the Company’s shareholders of each new director during such two-year
period was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such two-year period, or 

(E) any other event shall occur that would be required to be reported in response to Item 6(e) (or any successor provision) of Schedule 14A of
Regulation 14A promulgated under the Exchange Act, whether or not such filing is required because the Company is not registered under the Exchange Act. 

(h) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. 

(i) “Commission” shall mean the Securities and Exchange Commission. 

(j) “Committee” shall mean the Compensation Committee of the Board, or other Committee, regardless of name, that acts on matters of
compensation for eligible employees, which Committee shall be comprised only of two or more directors or such greater number of directors as may be required under applicable law, each of whom shall be a Disinterested and Outside director. 

(k) “Common Stock” shall mean the common stock of the Company, and such other securities or property as may become the subject of Awards, or become
subject to Awards, pursuant to an adjustment made under Section 4.2 of this Plan. 
 (l) “Company” shall mean Pacific City Financial
Corporation or any Subsidiary thereof. 
 (m) “Disinterested and Outside” shall mean a “Non-Employee
Director” within the meaning of the Securities and Exchange Commission Rule 16b-3, and “outside” within the meaning of Section 162(m) of the Code. 

(n) “DRO” shall mean a valid domestic relations order under applicable state law, acceptable to the Company. 

(o) “Eligible Employee” shall mean any employee of the Company, selected to participate in the Plan by the Committee, in its discretion, and members
of the Board. 
 (p) “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 

 (q) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

 (r) “Executive Officer” shall mean an executive officer as defined in Rule 3b-7 under the Exchange Act.

 (s) “Fair Market Value” shall mean, as of a specified date with respect to Common Stock: 

(i) If the Common Stock is listed on a national securities exchange (including the NASDAQ Global Market) on the date at which Fair Market Value
is to be determined, then the Fair Market Value per share will be the closing price on such exchange on such date, or if there were no reported sales on such date, then the average of the highest bid and lowest asked price, or, if there is no bid
and asked price on such date, then the Fair Market Value shall be the closing price on the next preceding day for which there is a reported sale or the next preceding day for which there is a bid and asked price, whichever most recently occurred; or

 (ii) If the Common Stock is traded on the OTC Bulletin Board, the Fair Market Value per share shall be the average of the highest bid and
lowest asked price on such date, or, if there is no bid and asked price on such date, then on the next prior business day on which there was a bid and asked price. If no such bid and asked price is available, then the Fair Market Value per Share
shall be the fair market value thereof as determined by the Committee, in its sole and absolute discretion. 
 (t) “Incentive Stock Option” shall
mean an Option which is designated as an incentive stock option within the meaning of Section 422 of the Code and which contains such provisions as are necessary to comply with that section. Any Option granted hereunder that is intended as an
Incentive Stock Option that fails to meet the applicable legal requirements thereof initially or upon amendment shall not be nullified because of such failure and shall be deemed a Nonqualified Stock Option. 

(u) “Nonqualified Stock Option” shall mean an Option that is designated as a nonqualified stock option and shall include any Option intended as an
Incentive Stock Option that fails to meet the applicable legal requirements thereof. Any Option granted hereunder that is not designated as an incentive stock option shall be deemed to be designated a nonqualified stock option under this Plan and
not an incentive stock option under the Code. 
 (v) “Non-Employee Director” shall mean a member of the
Board who is not an officer or employee of the Company, including, but not limited to, a member of the Board who qualifies as a “Non-Employee Director” within the meaning of Rule 16b-3. 
 (w) “Option” shall mean an option to purchase Shares under this Plan. The Committee shall designate any
Option granted to an Eligible Employee as a Nonqualified Stock Option or an Incentive Stock Option. 
 (x) “Participant” shall mean an Eligible
Employee or Non-Employee Director who has been granted an Award under this Plan. 

 (y) “Performance Criteria” means the attainment of performance goals relating to one or more
business criteria within the meaning of Section 162(m) of the Code, as determined by the Committee in its sole discretion at the Award Date, including but not limited to: return on average common shareholders’ equity; return on average
equity; total shareholder return; stock price appreciation; efficiency ratio (other expense as a percentage of other income plus net interest income); net operating expense (other income less other expense); earnings per diluted share of Common
Stock; per share earnings before transaction-related expense; per share earnings after deducting transaction-related expense; return on average assets; ratio of nonperforming to performing assets; return on an investment in an affiliate; net
interest income; net interest margin; ratio of common equity to total assets; regulatory compliance metrics; and customer service metrics. Performance Criteria may be stated in absolute terms or relative to comparison companies or indices to be
achieved during a period of time. Any Performance Criteria may be used to measure the performance of the Company as a whole or any business unit of the Company. Any Performance Criteria may include or exclude extraordinary items such as
extraordinary, unusual and/or non-recurring items of gain or loss, gains or losses on the disposition of a business, changes in tax or accounting regulations or laws, or the effects of a merger or acquisition.
Performance Criteria generally shall be established by the Committee and shall be derived from the Company’s audited financial statements, including footnotes, or any other measure of performance desired by the Committee. The Committee may not
in any event increase the amount of compensation payable to a covered employee, as defined in Section 162(m) of the Code, upon the satisfaction of any Performance Criteria. 

(z) “Personal Representative” shall mean the person or persons who, upon the Total Disability or incompetence of a Participant, shall have acquired
on behalf of the Participant, by legal proceeding or otherwise, the power to exercise the rights or receive benefits under this Plan and who shall have become the legal representative of the Participant. 

(aa) “Plan” shall mean this 2013 Equity Based Compensation Plan. 

(bb) “Restricted Stock” shall mean Shares awarded to a Participant subject to payment of such consideration, if any, and such conditions on vesting
and transfer and other restrictions as are established in or pursuant to this Plan, for so long as such shares remain unvested under the terms of the applicable Award Agreement. 

(cc) “Retirement” shall mean retirement from active service as an employee or officer of the Company in accordance with the Company’s policies
or as determined by the Board. 
 (dd) “Rule 16b-3” shall mean Rule
16b-3, as amended from time to time, as promulgated by the Commission pursuant to the Exchange Act. 
 (ee)
“Section 16 Person” shall mean a person subject to Section 16(a) of the Exchange Act. 
 (ff) “Securities Act” shall mean the
Securities Act of 1933, as amended from time to time. 
 (gg) “Shares” shall mean shares of Common Stock of the Company. 

(hh) “Subsidiary” shall mean any company or other entity a majority of whose outstanding voting stock or voting power is beneficially owned directly
or indirectly by the Company. 

 (ii) “Total Disability” shall mean a “permanent and total disability” within the meaning
of Section 22(e)(3) of the Code and such other disabilities, infirmities, afflictions or conditions as the Committee by rule may include. 
 1.3.
Administration and Authorization; Power and Procedure. 
 (a) Committee. This Plan shall be administered by, and all Awards to Eligible Employees and Non-Employee Directors shall be authorized by, the Committee. Action of the Committee with respect to the administration of this Plan shall be taken pursuant to a majority vote or by unanimous written consent of its
members. 
 (b) Plan Awards; Interpretation; Powers of Committee. Subject to the express provisions of this Plan, the Committee shall have the authority,
subject to Board approval: 
 (i) To determine, from among those persons eligible, the particular Eligible Employees and Non-Employee Directors who will receive any Awards; 
 (ii) To grant Awards to Eligible Employees and Non-Employee Directors, determine the price at which securities will be offered or awarded and the amount of securities to be offered or awarded to any of such persons, and determine the other specific terms and
conditions of such Awards consistent with the express limits of this Plan, and establish the installments (if any) in which such Awards shall become exercisable or shall vest (including establishing Performance Criteria for vesting of Awards,
regardless of the form of the Award), or determine that no delayed exercisability or vesting is required, and establish the events of termination or reversion (if any) of such Awards; 

(iii) To approve the forms of Award Agreements (which need not be identical either as to type of Award or among Participants); 

(iv) To construe and interpret this Plan and any agreements defining the rights and obligations of the Company and Participants under this
Plan, further define the terms used in this Plan, and prescribe, amend and rescind rules and regulations relating to the administration of this Plan; 

(v) To cancel, modify, or waive the Company’s rights with respect to, or modify, discontinue, suspend, or terminate, any or all
outstanding Awards held by Participants, subject to any required consent under Section 4.6; 
 (vi) To accelerate or extend the
exercisability or vesting or extend the term of any or all outstanding Awards within the maximum ten-year term of Awards under Section 1.7; and 

(vii) To make all other determinations and take such other action as contemplated by this Plan or as may be necessary or advisable for the
administration of this Plan and the effectuation of its purposes. 
 (c) Binding Determinations. Any action taken by, or inaction of, the Company, the Board
or the Committee relating or pursuant to this Plan shall be within the absolute discretion of that entity or body and shall be conclusive and binding upon all persons. No member of the Board or Committee, or officer of the Company, shall be liable
for any such action or inaction of the entity or body, of another person or, except in circumstances involving bad faith, of himself or herself. Subject only to compliance with the express provisions hereof, the Board and Committee may act in their
absolute discretion in matters within their authority related to this Plan. 

 (d) Reliance on Experts. In making any determination or in taking or not taking any action under this Plan,
the Committee or the Board, as the case may be, may obtain and may rely upon the advice of experts, including professional advisors to the Company. No director, officer or agent of the Company shall be liable for any such action or determination
taken or made or omitted in good faith. 
 (e) Delegation. The Committee may delegate ministerial, non-discretionary
functions to individuals who are officers or employees of the Company. 
 (f) Notices; Signature; Delivery. Whenever a signature, notice or delivery of a
document is required or appropriate under the Plan or pursuant to an Award Agreement, signature, notice or delivery may be accomplished by paper or written format, or to the extent authorized by the Committee, subject to Section 4.4, by
electronic means. In the event the Committee authorizes electronic means for the signature, notice or delivery of a document hereunder, the electronic record or confirmation of that signature, notice or delivery maintained by or on behalf of the
Committee shall for purposes of this Plan and any applicable Award Agreement be treated as if it was a written signature or notice and was delivered in the manner provided herein for a written document. 

1.4. Participation. Awards may be granted by the Committee only to those persons that the Committee determines to be Eligible Employees or Non-Employee Directors. An Eligible Employee or Non-Employee Directors who has been granted an Award may, if otherwise eligible, be granted additional Awards if the Committee
shall so determine. Non-Employee Directors shall be eligible to receive all Awards other than Incentive Stock Options under this Plan.  

1.5. Shares Available for Awards. Subject to the provisions of Section 4.2, the capital stock that may be delivered under this Plan shall be Shares
of the Company’s authorized but unissued Common Stock. The Shares may be issued (subject to Section 4.4) for any lawful consideration. 
 (a)
Number of Shares. The maximum number of Shares of Common Stock that may be delivered pursuant to Awards granted to Eligible Employees and grants of Director Stock Options to Non-Employee Directors under this Plan shall not exceed 631,853 Shares,
subject to the reissue of Awards pursuant to Sections 1.5(c), and the adjustments contemplated by Section 4.2. For every Share of Restricted Stock issued under this Plan, the maximum number of Shares that may be delivered pursuant to Awards
hereunder shall be reduced by 1 Share. The maximum number of Shares of Common Stock subject to Incentive Stock Options that may be granted pursuant to this Plan is 631,853. 

 (b) Reservation of Shares. Common Stock subject to outstanding Awards shall be reserved for issuance. If the
Company withholds Shares pursuant to Section 2.2(b) or 4.5, the number of Shares that would have been deliverable with respect to an Award shall be reduced by the number of Shares withheld, and such Shares shall not be available for additional
Awards under this Plan. 
 (c) Reissue of Awards. Subject to any restrictions under Rule 16b-3, if then applicable,
the Shares which are subject to any unexercised, unvested or undistributed portion of any expired, canceled, terminated or forfeited Award, or any alternative form of consideration under an Award that is not paid in connection with the settlement of
an Award or any portion of an Award, shall again be available for Award under subsection (a) above, provided the Participant has not received dividends during the period in which the Participant’s ownership was not vested. Shares that are
issued pursuant to Awards and subsequently reacquired by the Company pursuant to the terms and conditions of the Awards also shall be available for reissuance under the Plan. Nothing in this paragraph shall be interpreted to allow Shares which are
in the possession of the Company pursuant to either Section 2.2(b) or 4.5 to be available for reissuance under the Plan. Only Shares which were originally awarded as Restricted Stock may be reissued as Restricted Stock. 

(d) Interpretive Issues. Additional rules for determining the number of Shares authorized under the Plan may be adopted by the Committee as it deems necessary
or appropriate; provided that such rules are consistent with Rule 16b-3, if then applicable. 
 1.6. Grant of
Awards. Subject to the express provisions of this Plan, the Committee shall determine the type of Award, the number of Shares subject to each Award, and the price (if any) to be paid for the Shares or the Award. In addition, the Committee, in
its discretion, shall determine the specific Performance Criteria of an Award if any, and any to matters in addition to those addressed in Section 1.3(b) that further define the terms of the Award. Subject to the provisions of
Section 1.3(f), no Award shall be enforceable until the Award Agreement or an acknowledgement of receipt has been signed by the Participant and on behalf of the Company by an Executive Officer (other than the recipient) or his or her delegate.
By executing the Award Agreement or an acknowledgement of receipt, a Participant shall be deemed to have accepted and consented to the terms of this Plan and any action taken in good faith under this Plan by and within the discretion of the
Committee, the Board of Directors or their delegates. Unless the Award Agreement otherwise expressly provides, there shall be no third party beneficiaries of the obligations of the Company to the Participant under the Award Agreement. If it is
determined by the Committee or the Board after an Award has been granted that such Award would result in the Participant needing to file a notice under the Change in Bank Control Act or an application under the California Financial Code, the Award
shall be subject to reduction by the Company in its sole and absolute discretion so that the Participant will not be required to submit any such regulatory notices or applications. 

1.7. Award Period. Each Award and all executory rights or obligations under the related Award Agreement shall expire on such date (if any) as shall be
determined by the Committee, but, in the case of Options or other rights to acquire Shares, not later than ten (10) years after the Award Date. 

 1.8. Limitations on Exercise and Vesting of Awards. 

(a) Provisions for Exercise. Except as may otherwise be provided in an Award Agreement or herein, no Award shall be exercisable or shall vest until at least
six months after the initial Award Date. Once exercisable an Award shall remain exercisable until the expiration or earlier termination of the Award, unless the Committee otherwise provides. 

(b) Procedure. Any exercisable Award shall be deemed to be exercised when the Secretary of the Company receives written notice of such exercise from the
Participant, together with any required payment made in accordance with Section 2.2(b). 
 (c) Fractional Shares/Minimum Issue. Fractional share
interests shall be disregarded, but may be accumulated. The Committee, however, may determine that cash, other securities or other property will be paid or transferred in lieu of any fractional share interests. No fewer than 100 Shares may be
purchased on exercise of any Award at one time unless the number purchased is the total number at the time available for purchase under the Award. 
 1.9.
No Transferability. 
 (a) Awards may be exercised only by the Participant or, if the Participant has died, the Participant’s Beneficiary or, if
the Participant has suffered a Total Disability and the Participant is incapacitated, the Participant’s Personal Representative, if any, or if there is none, (to the extent permitted by applicable law and Rule
16b-3) a third party pursuant to such conditions and procedures as the Committee may establish. Other than upon death or pursuant to a DRO or other exception to transfer restrictions under Rule 16b-3, if any (except to the extent not permitted in the case of an Incentive Stock Option), no right or benefit under this Plan or any Award shall be transferable by the Participant or shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge (other than to the Company), and any such attempted action shall be void. The Company shall disregard any attempt at transfer, assignment or other
alienation prohibited by the preceding sentences and shall pay or deliver such cash or Shares in accordance with the provisions of this Plan. The terms of an Award Agreement shall be final, binding and conclusive upon the beneficiaries, executors,
administrators, heirs and successors of the grantee. 
 (b) The restrictions on exercise and transfer above shall not be deemed to prohibit the authorization
by the Committee of “cashless exercise” procedures with unaffiliated third parties who provide financing for the purpose of (or who otherwise facilitate) the exercise of Awards consistent with applicable legal restrictions and Rule 16b-3, nor, to the extent permitted by the Committee, transfers for estate and financial planning purposes, notwithstanding that the inclusion of such features may render the particular Awards ineligible for the
benefits of Rule 16b-3, nor, in the case of Participants who are not Section 16 Persons, transfers to such other persons or in such other circumstances as the Committee may in the Award Agreement or other
writing expressly permit. 

 1.10. Deferred Payments. The Committee may authorize for the benefit of any Eligible Employee the
deferral of any payment of cash or Shares that may become due or of cash otherwise payable under this Plan, and provide for accreted benefits thereon based upon such deferment, at the election or at the request of such Participant, subject to the
other terms of this Plan. Such deferral shall be subject to such further conditions, restrictions or requirements as the Committee may impose, subject to any then vested rights of Participants. Any such deferral of payment shall comply in all
respects with the requirements of Code Section 409A, including with respect to the timing of election and timing of distribution, so as to avoid the imposition of any tax in addition to ordinary income tax or capital gains tax, as applicable.

 1.11. Special Performance-Based Awards. Without limiting the generality of the foregoing, any of the types of Awards listed in Section 1.2(a)
may be granted as awards that satisfy the requirements for “performance-based compensation” within the meaning of Code Section 162(m) (“Performance-Based Awards”), the grant, vesting, exercisability or payment of which
depends on the degree of achievement of the Performance Criteria relative to preestablished targeted levels for the Company on a consolidated basis. Notwithstanding anything contained in this Section 1.11 to the contrary, any Option shall be
subject only to the requirements of (a) below and Section 1.5 above in order for such Awards to satisfy the requirements for Performance-Based Awards under this Section 1.11 (with such Awards hereinafter referred to as a
“Qualifying Option”). With the exception of any Qualifying Option, an Award that is intended to satisfy the requirements of this Section 1.11 shall be designated as a Performance-Based Award at the time of grant. Nothing in this Plan
shall limit the ability of the Committee to grant Options with an exercise price or a base price greater than Fair Market Value on the Date of Grant or to make the vesting of the Options subject to Performance Goals or other business objectives.

 (a) Eligible Class. The eligible class of persons for Awards under this Section 1.11 shall be all Eligible Employees and Non-Employee Directors. 
 (b) Performance Goals. The performance goals for any Awards under this Section 1.11 (other
than Qualifying Options) shall be, on an absolute or relative basis, one or more of the Performance Criteria. The specific performance target(s) with respect to Performance Criteria must be established by the Committee in advance of the deadlines
applicable under Code Section 162(m) and while the performance relating to the Performance Criteria remains substantially uncertain. 
 (c) Committee
Certification. Before any Performance-Based Award under this Section 1.11 (other than Qualifying Options) is paid, the Committee must certify in writing (by resolution or otherwise) that the applicable Performance Criteria and any other
material terms of the Performance-Based Award were satisfied; provided, however, that a Performance-Based Award may be paid without regard to the satisfaction of the applicable Performance Criteria in the event of a Change in Control as provided in
Section 4.2(b). 
 (d) Terms and Conditions of Awards; Committee Discretion to Reduce Performance Awards. The Committee shall have discretion to
determine the conditions, restrictions or other limitations, in accordance with and subject to the terms of this Plan and Code Section 162(m), on the payment of individual Performance-Based Awards under this Section 1.11. To the extent set
forth in an Award Agreement, the Committee may reserve the right to reduce the amount payable in accordance with any standards or on any other basis (including the Committee’s discretion), as the Committee may determine. 

 (e) Adjustments for Material Changes. In the event of (i) a change in corporate capitalization, a
corporate transaction or a complete or partial corporate liquidation, or (ii) any extraordinary gain or loss or other event that is treated for accounting purposes as an extraordinary item under generally accepted accounting principles, or
(iii) any material change in accounting policies or practices affecting the Company and/or the Performance Criteria or targets, then, to the extent any of the foregoing events (or a material effect thereof) was not anticipated at the time the
targets were set, the Committee may make adjustments to the Performance Criteria and/or targets, applied as of the date of the event, and based solely on objective criteria, so as to neutralize, in the Committee’s judgment, the effect of the
event on the applicable Performance-Based Award. 
 (f) Interpretation. Except as specifically provided in this Section 1.11, the provisions of this
Section 1.11 shall be interpreted and administered by the Committee in a manner consistent with the requirements for exemption of Performance-Based Awards granted to Executive Officers as “performance-based compensation” under Code
Section 162(m) and the regulations thereunder. 
 (g) Individual Limits. The maximum number of Shares that are issuable under the Plan pursuant to
Options and Restricted Stock that are granted as Performance-Based Awards during any calendar year to any Participant shall not exceed the maximum number of shares available for grant under this Plan, subject to adjustment as provided in
Section 4.2(a). Awards that are canceled during the year shall be counted against this limit. 
 II. OPTIONS 

2.1. Grants. One or more Options may be granted under this Article to any Eligible Employee or Non-Employee
Directors, subject to the provisions of Section 1.5. Each Option granted may be either an Option intended to be an Incentive Stock Option or an Option not so intended, and such intent shall be indicated in the applicable Award Agreement.
However, Non-Employee Directors shall only be eligible to receive Non-Qualified Options. 

2.2. Option Price. 
 (a) Pricing Limits. Subject to
Sections 2.4, the purchase price per Share of the Common Stock covered by each Option shall be determined by the Committee at the time the Option is granted, but shall not be less than 100% of the Fair Market Value of the Common Stock on the date of
grant. 
 (b) Payment Provisions. The purchase price of any Shares purchased on exercise of an Option granted under this Article shall be paid in full at the
time of each purchase in one or a combination of the following methods: (i) in cash or by electronic funds transfer; (ii) by check payable to the order of the Company; (iii) by notice and third party payment in such manner as may be
authorized by the Committee; (iv) by the delivery of Shares already owned by the Participant which have been held for at least six months, provided, however, that the Committee may in its absolute discretion limit the Participant’s ability
to exercise an Award by delivering such Shares; or (v) if authorized by the Committee or specified in the applicable Award Agreement, by reduction in the number of Shares otherwise deliverable upon exercise by that number of Shares which have a
then Fair Market Value equal to such purchase price. Previously owned Shares used to satisfy the exercise price of an Option under clause (iv) shall be valued at their Fair Market Value on the date of exercise. 

 2.3. Limitations on Grant and Terms of Incentive Stock Options 

(a) $100,000 Limit. To the extent that the aggregate “fair market value” of Common Stock with respect to which Incentive Stock Options first become
exercisable by a Participant in any calendar year exceeds $100,000, taking into account both Common Stock subject to Incentive Stock Options under this Plan and stock subject to incentive stock options under all other plans of the Company, such
options shall be treated as Nonqualified Stock Options. For this purpose, the “fair market value” of the Common Stock subject to Options shall be determined as of the date the Options were awarded. In reducing the number of Options treated
as Incentive Stock Options to meet the $100,000 limit, the most recently granted Options shall be reduced first. To the extent a reduction of simultaneously granted Options is necessary to meet the $100,000 limit, the Committee may, in the manner
and to the extent permitted by law, designate which Shares of Common Stock are to be treated as Shares acquired pursuant to the exercise of an Incentive Stock Option. To the extent permitted under applicable regulations, as a method of causing an
Option intended to be an Incentive Stock Option to meet the requirements thereof which fails to do so by reason of the $100,000 limit, the Committee shall have the discretion to amend the terms of such Option to delay the exercisability of the
Option provided such amendment is made in the same calendar year of grant. 
 (b) Option Period. Subject to Section 2.4, each Option and all rights
thereunder shall expire no later than ten years after the Award Date. 
 (c) Other Code Limits. There shall be imposed in any Award Agreement relating to
Incentive Stock Options such terms and conditions as from time to time are required in order that the Option be an “incentive stock option” as that term is defined in Section 422 of the Code. 

2.4. Limits on 10% Holders. No Incentive Stock Option may be granted to any person who, at the time the Option is granted, owns (or is deemed to own
under Section 424(d) of the Code) Shares of outstanding Common Stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, unless the exercise price of such Option with respect to the Common Stock
covered by the Option is at least 110% of the Fair Market Value of the Common Stock subject to the Option and such Option by its terms is not exercisable after the expiration of five years from the date such Option is granted. 

III. RESTRICTED STOCK AWARDS 
 3.1.
Restricted Stock. The Committee may, in its discretion, grant one or more Restricted Stock Awards to any Eligible Employee or Non-Employee Directors. Each Restricted Stock Award Agreement shall
specify the number of Shares to be issued, the date of such issuance, the consideration for such Shares (but not less than the minimum lawful consideration as the Committee, consistent with Section 4.4, may require) to be paid, if any, by the
Participant and the restrictions imposed on such Shares, including but not limited to, any Performance Criteria and the conditions of release or lapse of such restrictions. Stock certificates evidencing shares of Restricted Stock pending the lapse
of the restrictions (“restricted shares”) shall bear a legend making appropriate reference to the restrictions imposed hereunder and shall be held by the 

 
Company or by a third party designated by the Committee until the restrictions on such shares shall have lapsed and the shares shall have vested in accordance with the provisions of the Award and
Section 1.8. Upon issuance of the Restricted Stock Award, the Participant may be required to provide such further assurance and documents as the Committee may require to enforce the restrictions. 

3.2. Restrictions 
 (a)
Pre-Vesting Restraints. Except as provided in Section 1.9 and 3.1, restricted shares comprising any Restricted Stock Award may not be sold, assigned, transferred, pledged or otherwise disposed of or
encumbered either voluntarily or involuntarily, until such shares have vested. 
 (b) Dividend and Voting Rights. Unless otherwise provided in the applicable
Award Agreement, a Participant receiving a Restricted Stock Award shall be entitled to cash dividend and voting rights for all shares issued even though they are not vested, provided that such rights shall terminate immediately as to any restricted
shares which cease to be eligible for vesting. 
 (c) Cash Payments. If the Participant shall have paid or received cash (including any dividends) in
connection with the Restricted Stock Award, the Award Agreement shall specify whether and to what extent such cash shall be returned (with or without an earnings factor) as to any restricted shares which cease to be eligible for vesting. 

(d) Conditions of Release or Lapse of Restrictions. The restrictions imposed on Restricted Stock as provided for in the Restricted Stock Award Agreements shall
meet such standards as determined by the Committee in its sole discretion. In no case shall restrictions lapse within the six months following the grant of an Award of Restricted Stock. 

3.3. Return to the Company. Unless the Committee otherwise expressly provides, shares of Restricted Stock that are subject to restrictions at the time
of termination of employment or are subject to other conditions to vest that have not been satisfied by the time specified in the applicable Award Agreement shall not vest and shall be returned to the Company in such manner and on such terms as the
Committee shall therein provide. 
 IV. OTHER PROVISIONS 

4.1. Rights of Eligible Employees, Participants and Beneficiaries 

(a) Employment Status. Status as an Eligible Employee shall not be construed as a commitment that any Award will be made under this Plan to an Eligible
Employee or to Eligible Employees generally. 
 (b) No Employment Contract. Nothing contained in this Plan (or in any other documents related to this Plan or
to any Award) shall confer upon any Eligible Employee or Participant any right to continue in the employ or other service of the Company or constitute any contract or agreement of employment or other service, nor shall interfere in any way with the
right of the Company to change such person’s compensation or other benefits or to terminate the employment of such person, with or without cause, but nothing contained in this Plan or any document related hereto shall adversely affect any
independent contractual right of such person without his or her consent thereto. 

 (c) Plan Not Funded. Awards payable under this Plan shall be payable in Shares, and no special or separate
reserve, fund or deposit shall be made to assure payment of such Awards. No Participant, Beneficiary or other person shall have any right, title or interest in any fund or in any specific asset (including Shares of Common Stock except as expressly
otherwise provided) of the Company by reason of any Award hereunder. Neither the provisions of this Plan (or of any related documents), nor the creation or adoption of this Plan, nor any action taken pursuant to the provisions of this Plan shall
create, or be construed to create, a trust of any kind or a fiduciary relationship between the Company and any Participant, Beneficiary or other person. To the extent that a Participant, Beneficiary or other person acquires a right to receive
payment pursuant to any Award hereunder, such right shall be no greater than the right of any unsecured general creditor of the Company. 
 4.2.
Adjustments; Accelerations 
 (a) Adjustments. If the outstanding Shares of Common Stock are changed into or exchanged for cash, other property or a
different number or kind of shares or securities of the Company, or if additional shares or new or different securities are distributed with respect to the outstanding Shares of Common Stock, through a reorganization or merger in which the Company
is the surviving entity, or through a combination, consolidation, recapitalization, reclassification, stock split, stock dividend, reverse stock split, stock consolidation, without consideration, or if there shall occur any other extraordinary
corporate transaction or event in respect of the Common Stock or a sale of substantially all the assets of the Company as an entirety which in the judgment of the Committee materially affects the Common Stock, then (1) the number of Shares
available for Awards, and any limit on the number of Shares that may be subject to Awards to a Participant in a calendar year, as set forth in Section 1.5(a), shall be adjusted proportionately, and (2) the Committee shall, in such manner
and to such extent (if any) as it deems appropriate and equitable, proportionately adjust any or all terms of outstanding Awards including, but not limited to, (A) the number and kind of shares of Common Stock or other consideration that is
subject to or may be delivered under this Plan and pursuant to outstanding Awards, (B) the consideration payable with respect to Awards granted prior to any such change and the prices, if any, paid in connection with Restricted Stock Awards, or
(C) the performance standards appropriate to any outstanding Awards. In the case of an extraordinary dividend or other distribution, merger, reorganization, consolidation, combination, sale of assets, split up, exchange, or spin off, the
Committee shall, in such manner and to such extent (if any) as it deems appropriate and equitable, make provision for a cash payment or for the substitution or exchange of any or all outstanding Awards or the cash, securities or property deliverable
to the holder of any or all outstanding Awards based upon the distribution or consideration payable to holders of Common Stock upon or in respect of such event; provided, however, in each case, that with respect to Awards of Incentive Stock Options,
no such adjustment shall be made which would cause the Plan to violate Section 422 or 424(a) of the Code or any successor provisions thereto. In any of such events, the Committee may take such action sufficiently prior to such event if
necessary to permit the Participant to realize the benefits intended to be conveyed with respect to the underlying Shares in the same manner as is available to shareholders generally. 

 (b) Effect of Change in Control. As soon as possible after the Board of Directors has approved, or has
notice, of a Change in Control Event described in Section 1.2(g), the Board shall send notice (the “Notice”) to each Participant thereof. Notice shall be deemed given on the date it is personally delivered to the Participant, or on
the third business day after it is mailed, with first-class postage prepaid, to the Participant’s last known address. 
 Except as otherwise determined
by the Committee at the time of grant of an Award and specified in the applicable Award Agreement, unless the continuing or survivor corporation, or the purchaser of assets of the Company (the “successor”) agrees to assume the obligations
of the Company with respect to all outstanding Awards or to substitute such Awards with equivalent awards with respect to the common stock of the successor, upon the giving of Notice (i) each Option shall become immediately exercisable,
(ii) each Restricted Stock Award (including restricted units) shall immediately vest free of restrictions, and (iii) all Performance Criteria with respect to any Award shall be deemed achieved at target levels and all other terms and
conditions met, and such Award shall become immediately payable to the Participant. Any acceleration of Awards shall comply with applicable regulatory requirements, including without limitation Section 422 of the Code. 

No Awards may be made after the Board of Directors has approved a Change in Control, unless the Change in Control is cancelled or terminated before becoming
effective, in which event the Plan shall not terminate, and Awards not exercised while the Change in Control was pending shall resume the status they had prior to the announcement of the Change in Control and delivery of the Notice. 

The provisions of this subsection (b) shall not apply if the Company is the surviving entity in any such Change in Control. 

(c) Possible Early Termination of Awards. If any Option or other right to acquire Shares under this Plan has not been exercised prior to a Change of Control
event described in Section 1.2(g)(A),(B) or (E) and no provision has been made for the survival, substitution, exchange or other settlement of such Option or right, such Option or right shall thereupon terminate. 

4.3. Effect of Termination of Employment. The Committee shall establish in respect of each Award granted to an Eligible Employee or Non-Employee Directors the effect of a termination of employment, or cessation of service as a director, as the case may be, on the rights and benefits thereunder and in so doing may make distinctions based upon the
cause of termination, e.g., retirement, early retirement, termination for cause, disability or death, provided, however, that for the portion of any vested and exercisable Award, a Participant must exercise such Award within 90 days after
termination of employment or service on the Board (but not later than the date on which the Award would otherwise expire), except as follows: 
  

	 	(1)	If the Participant is terminated for cause, the Participant’s rights to exercise any Award shall expire on the date of termination. 

 

	 	(2)	If the Participant’s employment or service as a director terminates by reason of his or her death, then the Award of the deceased Participant shall be exercisable only as to that portion of an Award vested at the
time of the Participant’s death, and may be exercised with respect thereto within one year from the date of death (but not later than the date on which the Award would otherwise expire) by the Participant’s executor or administrator or the
person or persons to whom the Participant’s rights under such Award shall have passed by will or by laws of descent and distribution. 

	 	(3)	If the Participant’s employment or service as a director terminates by reason of Total Disability, then the Award of the disabled Participant shall be exercisable only as to that portion of the Award vested at the
time of the Participant’s Total Disability, and may be exercised within one year from the date of such Total Disability, but not later than the date on which the Award would otherwise expire. 

4.4. Compliance with Laws. This Plan, the granting and vesting of Awards under this Plan and the offer, issuance and delivery of Shares and/or the
payment of money under this Plan or under Awards granted hereunder are subject to compliance with all applicable federal and state laws, rules and regulations (including, but not limited to, state and federal securities laws and federal margin
requirements) and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. Any securities delivered under this Plan shall be subject
to such restrictions, and the person acquiring such securities shall, if requested by the Company, provide such assurances and representations to the Company as the Company may deem necessary or desirable to assure compliance with all applicable
legal requirements. The administration of the Plan and all determinations and discretionary actions by the Committee shall comply with all applicable federal and state laws, rules and regulations (including, but not limited to, the Sarbanes-Oxley
Act of 2002) and, to the extent applicable, with the Nasdaq Marketplace Rules and other applicable listing standards. 
 4.5. Tax Withholding.
Upon any exercise, vesting, or payment of any Award, the Company shall have the right at its option to (i) require the Participant (or Personal Representative or Beneficiary, as the case may be) to pay or provide for payment of the amount
of any taxes which the Company may be required to withhold with respect to such transaction or (ii) deduct from any amount payable in cash the amount of any taxes which the Company may be required to withhold with respect to such cash amount.
In any case where a tax is required to be withheld in connection with the delivery of Shares under this Plan, the Committee may grant (either at the time of the Award or thereafter) to the Participant the right to elect, or the Committee may require
(either at the time of the Award or thereafter), pursuant to such rules and subject to such conditions as the Committee may establish, to have the Company reduce the number of Shares to be delivered by the appropriate number of Shares valued at
their then Fair Market Value, to satisfy the minimum withholding obligation. The Committee may require a Participant to pay or make arrangements for payment of any applicable tax withholding as a condition to the exercise of an Award and as a
condition to the delivery of any Shares or payment of any amount with respect to the exercise of an Award, and shall not be obligated to deliver any Shares or make any payment with respect to exercise of an Award until the Committee is satisfied
that the Participant has done so. 
 4.6. Plan Amendment, Termination and Suspension 

(a) Board Authorization. The Board may, at any time, terminate or, from time to time, amend, modify or suspend this Plan, in whole or in part. No Awards may be
granted during any suspension of this Plan or after termination of this Plan, but the Committee shall retain jurisdiction as to Awards then outstanding in accordance with the terms of this Plan. Any suspension will not affect the expiration of the
Plan set forth in Section 4.9. 

 (b) Shareholder Approval. If any amendment would materially increase the aggregate number of Shares or other
securities that may be issued under this Plan or materially modify the requirements as to eligibility for participation in this Plan or would otherwise require shareholder approval to comply with any applicable federal or state law or applicable
exchange listing standard (including listing standards of the NYSE and or Nasdaq), then to the extent then required by Rule 16b-3 to secure benefits thereunder or to avoid liability under Section 16 of
the Exchange Act (and Rules thereunder) or required under the Code or any other applicable law or listing standard, or deemed necessary or advisable by the Board, such amendment shall be subject to shareholder approval. 

(c) Amendments to Awards. Without limiting any other express authority of the Committee under, but subject to the express limits of, this Plan, the Committee
by agreement or resolution may waive conditions of or limitations on Awards that the Committee in the prior exercise of its discretion has imposed, without the consent of the Participant, and may make other changes to the terms and conditions of
Awards that do not affect in any manner materially adverse to the Participant his or her rights and benefits under an Award. 
 (d) Limitations on Amendments
to Plan and Awards. No amendment, suspension or termination of the Plan or change of or affecting any outstanding Award shall, without written consent of the Participant, affect in any manner materially adverse to the Participant any rights or
benefits of the Participant or obligations of the Company under any Award granted under this Plan prior to the effective date of such change. Changes contemplated by Section 4.2 shall not be deemed to constitute changes or amendments for
purposes of this Section 4.6. Notwithstanding the foregoing, the Committee shall have the right to amend any Award without the consent of the Participant and notwithstanding any adverse effect to the rights or benefits of the Participant if the
Committee determines that such amendment is necessary to avoid adverse accounting consequences to the Company not anticipated at the time of the granting of the Award. 

4.7. Privileges of Stock Ownership. Except as otherwise expressly authorized by the Committee or this Plan, a Participant shall not be entitled to any
privilege of stock ownership as to any Shares not actually delivered to and held of record by him or her. No adjustment will be made for dividends or other rights as a shareholder for which a record date is prior to such date of delivery. 

4.8. Effective Date of the Plan. This Plan shall be effective as of the date of Board approval, subject to shareholder approval within 12 months
thereafter effected by the affirmative vote of the holders of a majority of the Common Stock of the Company represented at a shareholders meeting at which a quorum is present. If shareholder approval for this Plan is not obtained prior to
June 13, 2014, this Plan shall have no force or effect. No Award granted under the Plan shall become exercisable until the Plan receives such shareholder approval and all Awards granted under the Plan prior to such shareholder approval shall be
conditioned on and subject to such shareholder approval. 

 4.9. Term of the Plan. The Plan shall continue in effect until all Shares available for issuance
under the Plan have been issued and all restrictions on such Shares have lapsed. Notwithstanding any language in this Plan to the contrary, no Incentive Stock Option shall be granted under this Plan more than ten years after the date the Plan is
approved by the shareholders of the Company. The Board of Directors may suspend or terminate the Plan at any time except with respect to Options and Shares subject to restrictions then outstanding under the Plan. Termination shall not affect any
outstanding Options, any right of the Company to repurchase Shares or the forfeitability of Shares issued under the Plan. 
 4.10. Governing Law;
Construction; Severability. 
 (a) Choice of Law. This Plan, the Awards, all documents evidencing Awards and all other related documents shall be
governed by and construed in accordance with the laws of the State of California applicable to contracts made and performed within such State, except as such laws may be supplanted by the laws of the United States of America, which laws shall then
govern its effect and its construction to the extent they supplant California law. 
 (b) Severability. If any provision shall be held by a court of
competent jurisdiction to be invalid and unenforceable, the remaining provisions of this Plan shall continue in effect. 
 (c) Plan Construction. 

(i) It is the intent of the Company that this Plan and Awards hereunder satisfy and be interpreted in a manner that in the case of Participants
who are or may be subject to Section 16 of the Exchange Act satisfies the applicable requirements of Rule 16b-3, so that such persons will be entitled to the benefits of Rule 16b-3 or other exemptive rules under Section 16 of the Exchange Act and will not be subjected to avoidable liability thereunder. If any provision of this Plan or of any Award or any prior action by the
Committee would otherwise frustrate or conflict with the intent expressed above, that provision to the extent possible shall be interpreted and deemed amended so as to avoid such conflict, but to the extent of any remaining irreconcilable conflict
with such intent as to such persons in the circumstances, such provision shall be deemed void. 
 (ii) It is the further intent of the
Company that Options with an exercise or base price not less than Fair Market Value on the date of grant, that are granted to or held by a Section 16 Person, shall qualify as performance-based compensation under Section 162(m) of the Code,
and this Plan shall be interpreted consistent with such intent. 
 4.11. Captions. Captions and headings are given to the sections and subsections of
this Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. 

4.12. Non-Exclusivity of Plan. Nothing in this Plan shall limit or be deemed to limit the authority of the Board
or the Committee to grant awards or authorize any other compensation, with or without reference to the Common Stock, under any other plan or authority. 

4.13. Substitute Awards. Notwithstanding any other provisions of this Plan to the contrary, where the outstanding shares of another corporation are
changed into or exchanged for shares of Common Stock of the Company in a merger, consolidation, reorganization or similar transaction, then, subject to the approval of the Board, Awards may be granted in exchange for unexercised, unexpired similar
equity based awards of the other corporation, and the exercise price of the 

 
Shares subject to any Option so granted may be fixed at a price less than one hundred percent of the Fair Market Value of the Common Stock at the time such Award is granted if said exercise price
or grant price has been determined to be not less than the exercise price or grant price set forth in the stock option of the other corporation, with appropriate adjustment to reflect the exchange ratio of the shares of stock of the other
corporation into the shares of Common Stock of the Company. The number of shares of the awards of the other corporation shall also be adjusted in accordance with the exchange ratio so that any substituted Award shall reflect such adjustment.

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