Document:

exv10w5

 

EXHIBIT 10.5

FIRST CALIFORNIA BANK

SPLIT DOLLAR AGREEMENT

(ADDENDUM A TO THE FIRST CALIFORNIA BANK SALARY CONTINUATION AGREEMENT)

     THIS AGREEMENT is adopted this 27th day of March, 2003, by and between FIRST
CALIFORNIA BANK, located in Camarillo, California (the “Company”), and CHONG GUK KUM (the
“Executive”). This Agreement shall append the Split Dollar Endorsement entered into on even date
herewith or as subsequently amended, by and between the aforementioned parties.

INTRODUCTION

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

AGREEMENT

The Company and the Executive agree as follows:

Article 1

General Definitions

The following terms shall have the meanings specified:

     1.1 “Insured” means the Executive.

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

     1.3
“Normal Retirement Age” means the Executive attaining 65 years of age.

     1.4
“Normal Retirement Date” means the later of the Normal Retirement Age or Termination of
Employment.

     1.5 “Policy” means the specific life insurance policy or policies issued by the Insurer.

     1.6 “Salary Continuation Agreement” means that Salary Continuation Agreement between the
Company and the Executive on even date herewith or as subsequently amended.

     1.7 “Termination for Cause” means the Company terminating the Executive’s employment for:

     (a) Gross negligence or gross neglect of duties to the Company;

     (b) Commission of a felony or of a gross misdemeanor involving moral turpitude in connection
with the Executive’s employment with the Company; or

     (c) Fraud, disloyalty, dishonesty or willful violation of any law or significant Company
policy committed in connection with the Executive’s employment and resulting in an adverse effect
on the Company.

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     1.8 “Termination of Employment” means that the Executive ceases to be employed by the Company
for any reason, other than by reason of a leave of absence approved by the Company.

Article 2

Policy Ownership/Interests

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

     2.2 Executive’s Interest. The Executive shall have the right to designate the beneficiary
death proceeds in the amount of $1,500,000 upon the death of the Executive, a) prior to Norm
Retirement Age while employed by the Company; or b) after Normal Retirement Date or after
Termination of Employment due to Disability or Change of Control as defined in the Salary
Continuation Agreement. The Executive shall also have the right to elect and change settlement
options that may be permitted. Upon the termination of this Agreement according to Article 7
herein, the Executive, the Executive’s transferee or the Executive’s beneficiary shall have no
rights or interests in the Policy and no death benefit shall be paid under this Section 2.2.

     2.3 Option to Purchase. The Company shall not sell, surrender or transfer ownership of the
Policy while this Agreement is in effect without first giving the Executive or the Executive’s
transferee the option to purchase the Policy for a period of 60 days from written notice of such
intention. The purchase price shall be an amount equal to the cash surrender value of the Policy.
This provision shall not impair the right of the Company to terminate this Agreement.

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

Article 3

Premiums

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

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

     3.3 Reimbursement. At the end of each Plan Year, the Executive shall reimburse the Company in
an amount equal to the economic benefit.

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Article 4

Assignment

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

Article 5

Insurer

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

Article 6

Claims and Review Procedure

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

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

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

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

     (a) The specific reasons for the denial,

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

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

     (d) An explanation of this Agreement’s review procedures and the time

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limits applicable to such procedures, and

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

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

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

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

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

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

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

     (a) The specific reasons for the denial,

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

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

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

Article 7

Amendments and Termination

     This Agreement may be amended or terminated only by a written agreement signed

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by the Company and the Executive; however, this Agreement will automatically terminate upon
the Executive’s Termination for Cause, Early Involuntary Termination or Early Voluntary Termination
(as defined in the Salary Continuation Agreement) or in the event the Insurer refuses to pay a
death benefit according to the terms of the Policy.

Article 8

Miscellaneous

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

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

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

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

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

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

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

     (a) Interpreting the provisions of this Agreement;

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

     (c) Maintaining a record of benefit payments; and

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

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

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

	 	 	 	 	 
	EXECUTIVE:	 	COMPANY
	 	 	FIRST CALIFORNIA BANK
	 
	/s/ Chong Guk Kum

	 	By
	 	/s/ James O. Birchfield
	 

	 	 	 	 
	Chong Guk Kum

	 	 	 	James O. Birchfield

Chairman of the Board

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SPLIT DOLLAR POLICY ENDORSEMENT (1 of 3)

FIRST CALIFORNIA BANK SPLIT DOLLAR AGREEMENT

Insured: Chong Guk Kum

Insurer: Massachusetts Mutual Life Insurance Company

Policy No.                                         

     Pursuant to the terms of the FIRST CALIFORNIA BANK SPLIT DOLLAR AGREEMENT dated March 27,
2003, the undersigned Owner requests that the above-referenced policy issued by the Insurer provide
for the following beneficiary designation and limited contract ownership rights to the Insured:

     1. Upon the death of the Insured, proceeds shall be paid in one sum to the Owner, its
successors or assigns, to the extent of its interest in the policy. It is hereby provided that the
Insurer may rely solely upon a statement from the Owner as to the amount of proceeds it is entitled
to receive under this paragraph.

     2. Any proceeds at the death of the Insured in excess of the amount paid under the provisions
of the preceding paragraph shall be paid in one sum to:

 

PRIMARY BENEFICIARY, RELATIONSHIP/SOCIAL SECURITY NUMBER

 

CONTINGENT BENEFICIARY, RELATIONSHIP/SOCIAL SECURITY NUMBER

The exclusive right to change the beneficiary for the proceeds payable under this paragraph,
to elect an optional method of settlement for the proceeds paid under this paragraph which are
available under the terms of the policy and to assign all rights and interests granted under this
paragraph are hereby granted to the Insured. The sole signature of the Insured shall be sufficient
to exercise said rights. The Owner retains all contract rights not granted to the Insured under
this paragraph.

     3. It is agreed by the undersigned that this designation and limited assignment of rights
shall be subject in all respects to the contractual terms of the policy.

     4. Any payment directed by the Owner under this endorsement shall be a full discharge of the
Insurer and such discharge shall be binding on all parties claiming any interest under the policy.

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

     Signed at Camarillo, California this 27th day of March, 2003.

	 	 	 	 	 
	INSURED:	 	OWNER
	 	 	FIRST-CALIFORNIA
	 
	/s/ Chong Guk Kum

	 	By
	 	/s/ James O. Birchfield
	 

	 	 	 	 
	Chong Guk Kum

	 	 	 	James O. Birchfield

Chairman of the Board

 

 

SPLIT DOLLAR POLICY ENDORSEMENT (2 of 3)

FIRST CALIFORNIA BANK SPLIT DOLLAR AGREEMENT

Insured: Chong Guk Kum

Insurer: New York Life Insurance Company

Policy No.                                         

     Pursuant to the terms of the FIRST CALIFORNIA BANK SPLIT DOLLAR AGREEMENT dated March 27,
2003, the undersigned Owner requests that the above-referenced policy issued by the Insurer provide
for the following beneficiary designation and limited contract ownership rights to the Insured:

     1. Upon the death of the Insured, proceeds shall be paid in one sum to the Owner, its
successors or assigns, to the extent of its interest in the policy. It is hereby provided that the
Insurer may rely solely upon a statement from the Owner as to the amount of proceeds it is entitled
to receive under this paragraph.

     2. Any proceeds at the death of the Insured in excess of the amount paid under the provisions
of the preceding paragraph shall be paid in one sum to:

 

PRIMARY BENEFICIARY, RELATIONSHIP/SOCIAL SECURITY NUMBER

 

CONTINGENT BENEFICIARY, RELATIONSHIP/SOCIAL SECURITY NUMBER

The exclusive right to change the beneficiary for the proceeds payable under this paragraph,
to elect an optional method of settlement for the proceeds paid under this paragraph which are
available under the terms of the policy and to assign all rights and interests granted under this
paragraph are hereby granted to the Insured. The sole signature of the Insured shall be sufficient
to exercise said rights. The Owner retains its contract rights not granted to the Insured under
this paragraph.

     3. It is agreed by the undersigned that this designation and limited assignment of rights
shall be subject in all respects to the contractual terms of the policy.

     4. Any payment directed by the Owner under this endorsement shall be a full discharge of the
Insurer and such discharge shall be binding on all parties claiming any interest under the policy.

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

Signed at Camarillo, California this 27th day of March, 2003.

	 	 	 	 	 
	INSURED:	 	OWNER:
	 	 	FIRST-CALIFORNIA
	 
	/s/ Chong Guk Kum

	 	By
	 	/s/ James O. Birchfield
	 

	 	 	 	 
	Chong Guk Kum

	 	 	 	James O. Birchfield
	 

	 	 	 	Chairman of the Board

 

 

SPLIT DOLLAR POLICY ENDORSEMENT (3 of 3)

FIRST CALIFORNIA BANK SPLIT DOLLAR AGREEMENT

Insured: Chong Guk Kum

Insurer: West Coast Life Insurance Company

Policy No.                                         

     Pursuant to the terms of the FIRST CALIFORNIA BANK SPLIT DOLLAR AGREEMENT dated March 27,
2003, the undersigned Owner requests that the above-referenced policy issued by West Coast Lift
Insurance Company (“Insurer”) provide for the following beneficiary designation and limited
contract ownership rights to the Insured:

     1. Upon the death of the Insured, proceeds shall be paid in one sum to the Owner, its
successors or assigns, to the extent of its interest in the policy. It is hereby provided that the
Insurer may rely solely upon a statement from the Owner as to the amount of proceeds it is entitled
to receive under this paragraph.

     2. Any proceeds at the death of the Insured in excess of the amount paid under the provisions
of the preceding paragraph shall be paid in one sum to:

 

PRIMARY BENEFICIARY, RELATIONSHIP/SOCIAL SECURITY NUMBER

 

CONTINGENT BENEFICIARY, RELATIONSHIP/SOCIAL SECURITY NUMBER

The exclusive right to change the beneficiary for the proceeds payable under this paragraph,
to elect any optional method of settlement for the proceeds paid under this paragraph which are
available under the terms of the policy and to assign all rights and interests granted under this
paragraph are hereby granted to the Insured. The sole signature of the Insured shall be sufficient
to exercise said rights. The Owner retains all contract rights not granted to the Insured under
this paragraph.

     3. It is agreed by the undersigned that this designation and limited assignment of rights
shall be subject in all respects to the contractual terms of the policy.

     4. Any payment directed by the Owner under this endorsement shall be a full discharge of the
Insurer, and such discharge shall be binding on all parties claiming any interest under the policy.

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

Signed at Camarillo, California this 27th day of March, 2003.

	 	 	 	 	 
	INSURED:	 	OWNER:
	 	 	FIRST-CALIFORNIA
	 
	/s/ Chong Guk Kum

	 	By
	 	/s/ James O. Birchfield
	 

	 	 	 	 
	Chong Guk Kum

	 	 	 	James O. Birchfield
	 

	 	 	 	Chairman of the Board

 

 

BENEFICIARY DESIGNATION

FIRST CALIFORNIA BANK

SALARY CONTINUATION AGREEMENT

Chong Guk Kum

I designate the following as beneficiary of any death benefits under this Agreement:

			
	Primary:	 	 

	 

 

			
	Contingent:	 	 

	 

 

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

I understand that I may change these beneficiary designations by filing a new written
designation with the Company. I further understand that the designations will be automatically
revoked if the beneficiary predeceases me, or, if I have named my spouse as beneficiary and our
marriage is subsequently dissolved.

	 	 	 	 	 
	Signature

	 	/s/ Chong Guk Kum
	 	 
	 

	 	 	 	 
	 

	 	Chong Guk Kum	 	 
	 
	Date 	 	3/27/03
	 

	 	 	 	 
	 
	Received by the Company this 27th day of March, 2003.
	 
	By

	 	/s/ James O. Birchfield	 	 
	 

	 	 	 	 
	 

	 	James O. Birchfield	 	 
	 

	 	Chairman of the Boardexv10w6

 

Exhibit 10.6

FIRST CALIFORNIA BANK

SALARY CONTINUATION AGREEMENT

     THIS AGREEMENT is adopted this 27th day of March, 2003, by and between FIRST
CALIFORNIA BANK located in Camarillo, California (the “Company”), and THOMAS E. ANTHONY (the
“Executive”).

INTRODUCTION

     To encourage the Executive to remain an employee of the Company, the Company is willing to
provide salary continuation benefits to the Executive. The Company will pay the benefits from its
general assets.

AGREEMENT

     The Company and the Executive agree as follows:

Article 1

Definitions

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

     1.1 “Change of Control” means the transfer of shares of the Company’s voting common stock such
that one entity or one person acquires (or is deemed to acquire when applying Section 318 of the
Code) more than 75 percent of the Company’s outstanding voting common stock.

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

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

     1.4 “Early Involuntary Termination” means that the Executive, prior to Normal Retirement Age,
has been notified in writing, that employment with the Company is terminated for reasons other than
an approved leave of absence, Termination for Cause, Disability, Change of Control or Early
Voluntary Termination.

     1.5 “Early Voluntary Termination” means that the Executive, prior to Normal Retirement Age,
has terminated employment with the Company for reasons other than Termination for Cause,
Disability, Change of Control or Early Involuntary Termination.

 

 

     1.6 “Effective Date” means January 1, 2003.

     1.7 “Normal Retirement Age” means the Executive attaining 65 years of age.

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

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

     1.10 “Termination for Cause” shall be defined as set forth in Article 5.

     1.11 “Termination of Employment” means that the Executive ceases to be employed by the Company
for any reason, other than by reason of a leave of absence approved by the Company.

Article 2

Lifetime Benefits

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

     2.1.1 Amount of Benefit. The annual benefit under this Section 2.1 is $63,000
(Sixty-three Thousand Dollars). Commencing at the end of the first Plan Year and each Plan
Year thereafter, the annual benefit shall be increased three percent (3%) from the previous
Plan Year to a projected annual benefit of $84,667 (Eighty-four Thousand Six Hundred
Sixty-seven Dollars) at Normal Retirement Age.

     2.1.2 Payment of Benefit. The Company shall pay the annual benefit to the Executive in
12 equal monthly installments commencing with the month following the Executive’s Normal
Retirement Date, paying the annual benefit to the Executive for a period of years equal to the
number of years that Executive is employed by Company between the Effective Date and
Executive’s Normal Retirement Date, a maximum of 11 years, unless Executive and Company
mutually agree to continue Executive’s employment beyond the Normal Retirement Date in which
case the benefit payment shall be extended for one additional year for each full year of
service beyond the Normal Retirement Date, but to a maximum aggregate of 15 years only.

     2.1.3 No Increases. Commencing with the first benefit payment, there shall be no further
increases in the amount of the annual benefit.

     2.2 Early Voluntary Termination. Upon an Early Voluntary Termination, the Executive will

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not be eligible for a benefit under this Agreement.

     2.3 Early Involuntary Termination Benefit. Upon an Early Involuntary Termination, the Company
shall pay to the Executive the benefit described in this Section 2.3 in lieu of any other benefit
under this Agreement.

     2.3.1 Amount of Benefit. The benefit under this Section 2.3 is the Early Involuntary
Lump Sum set forth on Schedule A for the Plan Year ending immediately prior to Termination of
Employment, determined by vesting the Executive in the Accrual Balance for the Plan Year
ending immediately prior to Termination of Employment.

     2.3.2 Payment of Benefit. The Company shall pay the benefit determined under Section
2.3.1 to the Executive in a lump sum within 30 days following Termination of Employment.

     2.4 Disability Benefit. Upon the Executive’s Termination of Employment prior to Normal
Retirement Age due to Disability, the Company shall pay to the Executive the benefit described in
this Section 2.4 in lieu of any other benefit under this Agreement.

     2.4.1 Amount of Benefit. The benefit under this Section 2.4 is the Disability annual
installment set forth on Schedule A, determined by vesting the Executive in the annual benefit
for the plan year ending immediately prior to termination of employment.

     2.4.2 Payment of Benefit. The Company shall pay the annual benefit determined in Section
2.4.1 to the Executive in 12 equal monthly installments commencing with the month following
Termination of Employment, paying the annual benefit to the Executive for a period of 11
years.

     2.4.3 No Increases. As provided in Section 2.1.3. there shall be no increases in
benefits once payment has commenced pursuant to this Section 2.4.

     2.5 Change of Control Benefit. Upon a Change of Control, followed within twelve (12) months
by the Executive’s Termination of Employment for reasons other than death, Disability or
retirement, the Company shall pay to the Executive the benefit described in this Section 2.5 in
lieu of any other benefit under this Agreement.

     2.5.1 Amount of Benefit. The benefit under this Section 2.5 is the Change of Control
annual Installment set forth on Schedule A, determined by vesting the Executive in the
projected Normal Retirement Benefit at Normal Retirement Age as described in Section 2.1.1.

     2.5.2 Payment of Benefit. The Company shall pay the annual benefit determined in Section
2.5.1 to the Executive in 12 equal monthly installments commencing with the month following
the Normal Retirement Age, paying the annual benefit to the Executive for a period of 11
years.

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     2.5.3 No Increases. As provided in Section 2.1.3. there shall be no increase in benefits
once payment commences pursuant to this Section 2.5.

     2.6 Loss Year. Anything in this Article 2 to the contrary notwithstanding, should the
Company’s operations (exclusive of extraordinary gains or expenses as determined by Generally
Accepted Accounting Principles) result in a loss for any fiscal year prior to the commencement of a
benefit payment, then the accrual for that year shall be omitted and all of the projected benefits
as set forth on Schedule A shall be adjusted downward as a result.

Article 3

Death Benefits

     3.1 Death During Active Service. If the Executive dies while in the active service of the
Company, the Company shall pay to the Executive’s beneficiary the split dollar death benefit
described in the Split Dollar Agreement attached as Addendum A between the Company and the
Executive in lieu of any other benefit under this Agreement.

     3.2 Death after Termination of Employment due to Retirement, Disability or Change of Control.
Upon the death of the Executive after Normal Retirement Date or after Termination of Employment due
to Disability or Change of Control as set forth in Article 2 of this Agreement, the Company shall
cease paying the remaining benefit, if any, and shall then pay to the Executive’s beneficiary the
split dollar death benefit described in the Split Dollar Agreement attached as Addendum A between
the Company and the Executive.

     3.3 Death after Early Involuntary Termination or Early Voluntary Termination. No death
benefit shall be paid upon the death of the Executive after an Early Involuntary Termination or an
Early Voluntary Termination.

Article 4

Beneficiaries

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

     4.2 Facility of Payment. If a benefit is payable to a minor, to a person declared
incompetent, or to a person incapable of handling the disposition of his or her property, the
Company may pay such benefit to the guardian, legal representative or person having the care or
custody of such minor,

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incompetent person or incapable person. The Company may require proof of incompetence,
minority or guardianship as it may deem appropriate prior to distribution of the benefit. Such
distribution shall completely discharge the Company from all liability with respect to such
benefit.

Article 5

General Limitations

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

     (a) Gross negligence or gross neglect of duties;

     (b) Commission of a felony or of a gross misdemeanor involving moral turpitude in
connection with the Executive’s employment with the Company; or

     (c) Fraud, disloyalty, dishonesty or willful violation of any law or significant Company
policy committed in connection with the Executive’s employment and resulting in an adverse
effect on the Company.

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

Article 6

Claims and Review Procedure

     6.1 Claims Procedure. An Executive or beneficiary (“claimant”) who has not received benefits
under the Agreement that he or she believes should be paid shall make a claim for such benefits as
follows:

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

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

     6.1.3 Notice of Decision. If the Company denies part or all of the claim, the Company
shall notify the claimant in writing of such denial. The Company shall write the notification
in

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a manner calculated to be understood by the claimant. The notification shall set forth:

     (a) The specific reasons for the denial;

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

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

     (d) An explanation of the Agreement’s review procedures and the time limits
applicable to such procedures; and

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

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

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

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

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

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

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

     (a) The specific reasons for the denial;

     (b) A reference to the specific provisions of the Agreement on which the denial

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is based;

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

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

Article 7

Amendments and Termination

     7.1 This Agreement may be amended or terminated only by a written agreement signed by the
Company and the Executive; however, this Agreement will automatically terminate if no benefit is
payable to the Executive due to the Executive’s Termination for Cause, Suicide or Misstatement as
set forth in Article 5 or upon an Early Voluntary Termination.

     7.2. The Company and the Executive agree to amend this Agreement in the event that there is a
change to applicable tax law or regulations or to the accounting treatment for the benefits to be
provided hereunder which materially increases the after-tax cost of the benefits. In the event an
amendment is required under this Section 7.2, such amendment shall be limited to decreasing the
benefits to be provided to the Executive only to the extent necessary so that net, after-tax impact
to the Company’s earnings will be substantially the same as such earnings would have been absent
the change in tax law, regulation, or accounting treatment.

Article 8

Miscellaneous

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

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

     8.3 Non-Competition. During such time as Executive is receiving benefit payments hereunder,
Executive shall not serve as an employee, officer or director of, or serve as a consultant or
advisor to, any financial institution, including but not limited to any bank, savings bank or
credit union, which has its headquarters or any branch office within the County of Ventura or the
County of Santa Barbara.

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

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     8.5 Reorganization. The Company shall not merge or consolidate into or with another company,
or reorganize, or sell substantially all of its assets to another company, firm, or person unless
such succeeding or continuing company, firm, or person agrees to assume and discharge the
obligations of the Company under this Agreement. Upon the occurrence of such event, the term
“Company” as used in this Agreement shall be deemed to refer to the successor or survivor company.

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

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

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

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

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

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

     (b) Maintaining a record of benefit payments;

     (c) Establishing rules and prescribing any forms necessary or desirable to administer the
Agreement; and

     (d) Interpreting the provisions of the Agreement.

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

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

	 	 	 	 	 	 	 
	EXECUTIVE:

	 	 	 	 	 	COMPANY:
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	FIRST CALIFORNIA BANK
	 
	 	 	 	 	 	 
	/s/ Thomas E. Anthony

	 	 	 	By
	 	/s/ James O. Birchfield
	 

	 	 	 	 	 	 
	Thomas E. Anthony

	 	 	 	 	 	     James O. Birchfield
	 

	 	 	 	 	 	     Chairman of the Board

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