Document:

Exhibit 10.16

 Exhibit 10.16 

FIXED RATE JUNIOR SUBORDINATED CONVERTIBLE DEBT SECURITY 

DUE 2038 
 THIS SECURITY HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED,
SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE ,REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS
SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN ONLY (A) TO THE COMPANY,
(B) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THE HOLDER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER”, AS DEFINED IN RULE 144A, THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED
INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a)(1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT OR TO ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH SUBPARAGRAPHS THAT IS ACQUIRING THIS SECURITY OR SUCH
INTEREST OR PARTICIPATION FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR
(D) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT SUBJECT TO THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (C) OR (D) ABOVE TO REQUIRE THE
DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN ACCORDANCE WITH THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY. THE HOLDER OF THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, BY
ITS ACCEPTANCE HEREOF OR THEREOF, AS THE CASE MAY BE, AGREES THAT IT WILL COMPLY WITH THE FOREGOING RESTRICTIONS. 
 IN CONNECTION WITH ANY
TRANSFER, THE HOLDER OF THIS SECURITY WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE REQUIRED BY THE INDENTURE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS. 

  
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 THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $25,000 AND
MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN DENOMINATIONS OF LESS THAN $25,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF
THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS SECURITY OR SUCH INTEREST OR PARTICIPATION, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST
WHATSOEVER IN THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN. 
 THIS OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED
STATES OR ANY AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE CORPORATION (THE “FDIC”). THIS OBLIGATION IS SUBORDINATED TO THE CLAIMS OF THE DEPOSITORS AND THE CLAIMS OF GENERAL AND SECURED CREDITORS OF THE
COMPANY, IS INELIGIBLE AS COLLATERAL FOR A LOAN BY THE COMPANY OR ANY OF ITS SUBSIDIARIES. 

  
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 Fixed Rate Junior Subordinated Convertible Debt Security due 2038 

of 
 Square 1 Financial, Inc. 

Square 1 Financial, Inc., a bank holding company incorporated in the State of Delaware (the “Company”, which term includes any
successor permitted under the Indenture (as defined herein)), for value received, promises to pay to Wilmington Trust Company, not in its individual capacity but solely as Institutional Trustee for Square 1 Financial Capital Trust I, a Delaware
statutory trust, or registered assigns, the principal amount of SEVEN MILLION SIX HUNDRED FORTY-FIVE THOUSAND Dollars ($7,645,000) on September 30, 2038 (the “Maturity Date”) (or any Optional Redemption Date or the Special Redemption
Date, each as defined herein, or any earlier date of acceleration of the maturity of this Debt Security), and to pay interest on the outstanding principal amount of this Debt Security from September 30, 2008, or from the most recent Interest
Payment Date (as defined below) to which interest has been paid or duly provided for, quarterly (subject to deferral as set forth herein) in arrears on March 31, June 30, September 30 and December 31 of each year,
commencing on December 31, 2008 (each, an “Interest Payment Date”), at a rate per annum, which, with respect to any Interest Period (as defined in the Indenture), will be equal to 8.00% (the “Interest Rate”) (provided that
the Interest Rate for any Interest Period may not exceed the highest rate permitted by North Carolina law, as the same may be modified by United States law of general application) until the principal hereof shall have been paid or duly provided for,
and on any overdue principal and (without duplication and to the extent that payment of such interest is enforceable under applicable law) on any overdue installment of interest at an annual rate equal to the then applicable Interest Rate,
compounded quarterly. The amount of interest payable for any Interest Period will be computed on the basis of a 360-day year of twelve 30-day months, and the amount payable for any partial period shall be computed on the basis of the number of days
elapsed in a 360-day year of twelve 30-day months. 
 The interest installment so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Debt Security (or one or more Predecessor Securities, as defined in the Indenture) is registered at the close of business on the “regular record
date” for such interest installment, which shall be the fifteenth day prior to such Interest Payment Date, whether or not such day is a Business Day (as defined herein). Any such interest installment (other than Deferred Interest (as defined
herein)) not punctually paid or duly provided for shall forthwith cease to be payable to the holders on such regular record date and may be paid to the Person in whose name this Debt Security (or one or more Predecessor Securities) is registered at
the close of business on a special record date to be fixed by the Trustee for the payment of such defaulted interest, notice whereof shall be given to the holders of the Debt Securities not less than 10 days prior to such special record date, all as
more fully provided in the Indenture. 
 Payment of the principal of and premium, if any, and interest on this Debt Security due on the
Maturity Date, any Optional Redemption Date or the Special Redemption Date, as the case may be, shall be made in immediately available funds against presentation and surrender of this Debt Security at the office or agency of the Trustee maintained
for that purpose in 

  
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Wilmington, Delaware, or at the office or agency of any other Paying Agent appointed by the Company maintained for that purpose in Wilmington, Delaware or Philadelphia, Pennsylvania. Payment of
interest on this Debt Security due on any Interest Payment Date other than the Maturity Date, any Optional Redemption Date or the Special Redemption Date, as the case may be, shall be made at the option of the Company by check mailed to the holder
thereof at such address ‘as shall appear in the Debt Security Register or by wire transfer of immediately available funds to an account appropriately designated by the holder hereof. Notwithstanding the foregoing, so long as the holder of this
Debt Security is the Institutional Trustee, payment of the principal of and premium, if any, and interest on this Debt Security shall be made in immediately available funds when due at such place and to such account as may be designated by the
Institutional Trustee. All payments in respect of this Debt Security shall be payable in any coin or currency of the United States of America that at the time of payment is legal tender for payment of public and private debts. 

Notwithstanding anything to the contrary contained herein, if any Interest Payment Date, other than the Maturity Date, any Optional Redemption
Date or the Special Redemption Date, falls on a day that is not a Business Day, then any interest payable will be paid on, and such Interest Payment Date will be moved to, the next succeeding Business Day, and additional interest will accrue for
each day that such payment is delayed as a result thereof. If the Maturity Date, any Option Redemption Date or the Special Redemption Date falls on a day that is not a Business Day, then the principal, premium, if any, and/or interest payable on
such date will be paid on the next succeeding Business Day, and no additional interest will accrue in respect of such payment made on such next succeeding Business Day. 

So long as no Event of Default pursuant to Sections 5.01(b), (e), (f), (g), (h) or (i) of the Indenture has occurred and is
continuing, the Company shall have the right, from time to time and without causing an Event of Default, to defer payments of interest on the Debt Securities by extending the interest payment period on the Debt Securities at any time and from time
to time during the term of the Debt Securities, for up to 20 consecutive quarterly periods (each such extended interest payment period, together with all previous and further consecutive extensions thereof, is referred to herein as an
“Extension Period”). No Extension Period may end on a date other than an Interest Payment Date or extend beyond the Maturity Date, any Optional Redemption Date or the Special Redemption Date, as the case may be. During any Extension
Period, interest will continue to accrue on the Debt Securities, and interest on such accrued interest (such accrued interest and interest thereon referred to herein as “Deferred Interest”) will accrue at an annual rate equal to the
Interest Rate applicable during such Extension Period, compounded quarterly from the date such Deferred Interest would have been payable were it not for the Extension Period, to the extent permitted by applicable law. No interest or Deferred
Interest (except any Additional Amounts (as defined in the Indenture) that may be due and payable) shall be due and payable during an Extension Period, except at the end thereof. At the end of any Extension Period, the Company shall pay all Deferred
Interest then accrued and unpaid on the Debt Securities; provided, however. that during any Extension Period, the Company may not (i) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Company’s capital stock, (ii) make any payment of principal of or premium, if any, or interest on or repay, repurchase or redeem any debt securities of the Company that rank pari passu in all respects with or
junior in 

  
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interest to the Debt Securities or (iii) make any payment under any guarantees of the Company that rank in all respects pari passu with or junior in respect to the Capital Securities
Guarantee (other than (a) repurchases, redemptions or other acquisitions of shares of capital stock of the Company (A) in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of one or
more employees, officers, directors or consultants, (B) in connection with a dividend reinvestment or stockholder stock purchase plan or (C) in connection with the issuance of capital stock of the Company (or securities convertible into or
exercisable for such capital stock), as consideration in an acquisition transaction entered into prior to such Extension Period, (b) as a result of any exchange or conversion of any class or series of the Company’s capital stock (or any
capital stock of a subsidiary of the Company) for any class or series of the Company’s capital stock or of any class or series of the Company’s indebtedness for any class or series of the Company’s capital stock, (c) the purchase
of fractional interests in shares of the Company’s capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (d) any declaration of a dividend in connection with any
,stockholder’s rights plan, or the issuance of rights, stock or other property under any stockholder’s rights plan, or the redemption or repurchase of rights pursuant thereto or (e) any dividend in the form of stock, warrants, options
or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks pari passu with or junior to such stock). Prior to the
termination of any Extension Period (including all previous and further consecutive extensions that are part of such Extension Period (including all previous and further consecutive extensions that are part of such Extension Period) shall exceed 20
consecutive quarterly periods. Upon the termination of any Extension Period and upon the payment of all Deferred Interest, the Company may commence a new Extension Period and upon the payment of all Deferred Interest, the Company may commence a new
Extension Period, subject to the foregoing requirements. The Company must give the Trustee notice of its election to begin or extend an Extension Period no later than the close of business on the fifteenth Business Day prior to the applicable
Interest Payment Date. 
 The indebtedness evidenced by this Debt Security is, to the extent provided in the Indenture, subordinate and
junior in right of payment to the prior payment in full of all Senior Indebtedness (as defined in the Indenture), and this Debt Security is issued subject to the provisions of the Indenture with respect thereto. Each holder of this Debt Security, by
accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee on such holder’s behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the
subordination so provided and (c) appoints the Trustee such holder’s attorney-in-fact for any and all such purposes. Each holder hereof, by such holder’s acceptance hereof, hereby waives all notice of the acceptance of the
subordination provisions contained herein and in the Indenture by each holder of Senior Indebtedness, whether now outstanding or hereafter incurred, and waives reliance by each such holder upon said provisions. 

The Company waives diligence, presentment, demand for payment, notice of nonpayment, notice of protest, and all other demands and notices.

  
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 This Debt Security shall not be entitled to any benefit under the Indenture hereinafter referred
to and shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by or on behalf of the Trustee. 

The provisions of this Debt Security are continued on the reverse side hereof and such continued provisions shall for all purposes have the
same effect as though fully set forth at this place. 
 This Debt Security may contain more than one counterpart of the signature page and
this Debt Security may be executed and authenticated by the affixing of the signature of a proper officer of the Company, and the signature of the Trustee providing authentication, to any of such counterpart signature pages. All of such counterpart
signature pages shall be read as though one, and they shall have the same force and effect as though the Company had executed, and the Trustee had authenticated, a single signature page. 

  
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 IN WITNESS WHEREOF, the Company has duly executed this certificate. 

 

					
	SQUARE 1 FINANCIAL, INC.
		
	By:	 	 /s/ Richard J. Casey

		 	Name:	 	Richard J. Casey
		 	Title:	 	President and Chief Executive Officer

 Date: September 30, 2008 

CERTIFICATE OF AUTHENTICATION 

This certificate represents Debt Securities referred to in the within-mentioned Indenture. 

 

					
	WILMINGTON TRUST COMPANY,
	not in its individual capacity but solely as the Trustee
		
	By:	 	 /s/ Lori L. Donahue

		 	Name:	 	Lori L. Donahue
		 	Title:	 	Assistant Vice President

 Date: September 30, 2008 

  
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 FORM OF REVERSE OF SECURITY 

This Debt Security is one of a duly authorized series of debt securities of the Company (collectively, the “Debt Securities”), all
issued or to be issued pursuant to an Indenture (the “Indenture”), dated as of September 30, 2008, duly executed and delivered between the Company and Wilmington Trust Company, as Trustee (the “Trustee”), to which Indenture
and all indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the holders of the Debt Securities of which this
Debt Security is a part. 
 Upon the occurrence and continuation of a Tax Event, an Investment Company Event or a Capital Treatment Event
(each, a “Special Event”), the Company shall have the right to redeem this Debt Security, at its option, in whole with all other Debt Securities but not in part, at any time, within 90 days following the occurrence of such Special Event
(the “Special Redemption Date”) at the Special Redemption Price (as defined herein). 
 The Company shall also have the right to
redeem this Debt Security at its option, in whole or (provided that all accrued and unpaid interest has been paid on all Debt Securities for all Interest Periods terminating on or prior to such date) from time to time in part, on any Interest
Payment Date on or after September 30, 2013 (each, an “Option Redemption Date”), at the Optional Redemption Price (as defined herein). 

Any redemption pursuant to the proceeding two paragraphs will be made, subject to receipt by the Company of prior approval from the Board of
Governors of the Federal Reserve System (the “Federal Reserve”) if then required under applicable capital guidelines or policies of the Federal Reserve, upon not less than 30 days’ nor more than 60 days’ prior written notice. If
the Debt Securities are only partially redeemed by the Company, the Debt Securities will be redeemed pro rata or by any other method utilized by the Trustee. In the event of redemption of this Debt Security in part only, a new Debt Security or Debt
Securities for the unredeemed portion hereof will be issued in the name of the holder hereof upon the cancellation hereof. 
 “Optional
Redemption Price” means an amount in cash equal to 100% of the principal amount of this Debt Security being redeemed plus unpaid interest accrued thereon to the related Optional Redemption Date. 

“Special Redemption Price” means, with respect to the redemption of this Debt Security following a Special Event, an amount in cash
equal to 104.00% of the principal amount of this Debt Security to be redeemed prior to September 30, 2009 and thereafter equal to the percentage of the principal amount of this Debt Security that is specified below for the Special Redemption
Date plus, in each case, unpaid interest accrued thereon to the Special Redemption Date: 
  

					
	 Special Redemption During the 12-Month Period Beginning
September 30,
	  	Percentage of Principal Amount	 
	 2009
	  	 	103.20	  
	 2010
	  	 	102.40	  
	 2011
	  	 	101.60	  
	 2012
	  	 	100.80	  
	 2013 and thereafter
	  	 	100.00	  

  
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 The Debt Securities shall be convertible into shares of Square 1 Financial, Inc. Common Stock in
the manner and according to the terms set forth in the Indenture. 
 In case an Event of Default, as defined in the Indenture, shall have
occurred and be continuing, the principal of all of the Debt Securities may be declared, and, in certain cases, shall ipso facto become, due and payable, and upon any such declaration of acceleration shall become due and payable, in each case, in
the manner, with the effect and subject to the conditions provided in the Indenture. 
 The Indenture contains provisions permitting the
Company and the Trustee, with the consent of the holders of a majority in aggregate principal amount of the Debt Securities at the time outstanding affected thereby, as specified in the Indenture, to execute supplemental indentures for the purpose
of adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture of modifying in any manner the rights of the holders of the Debt Securities; provided. however. that no such
supplemental indenture shall, among other things, without the consent of the holders of each Debt Security then outstanding and affected thereby (i) change the Maturity Date of any Debt Security, or reduce the principal amount thereof or any
premium thereon, or reduce the rate (or manner of calculation of the rate) or extend the time of payment of interest thereon, or reduce (other than as a result of the maturity or earlier redemption of any such Debt Security in accordance with the
terms of the Indenture and such Debt Security) or increase the aggregate principal amount of Debt Securities then outstanding, or change any of the redemption provisions, or make the principal thereof or any interest or premium thereon payable in
any coin or currency other than United States Dollars, or impair or affect the right of any holder to institute suit for payment thereof, or (ii) reduce the aforesaid percentage of Debt Securities the holders of which are required to consent to
any such supplemental indenture. The Indenture also contains provisions permitting the holders of a majority in aggregate principal amount of the Debt Securities at the time outstanding, on behalf of the holders of all the Debt Securities, to waive
any past default in the performance of any of the covenants contained in the Indenture, or established pursuant to the Indenture, and its consequences, except (a) a default in payments due in respect of any of the Debt Securities, (b) in
respect of covenants or provisions of the Indenture which cannot be modified or amended without the consent of the holder of each Debt Security affected, or (c) in respect of the covenants of the Company relating to its ownership of Common
Securities of the Trust. Any such consent or waiver by the holder of this Debt Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such holder and upon all future holders and owners of this Debt Security and
of any Debt Security issued in exchange herefor or in place hereof (whether by registration of transfer or otherwise), irrespective of whether or not any notation of such consent or waiver is made upon this Debt Security. 

  
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 No reference herein to the Indenture and no provision of this Debt Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to make all payments due on this Debt Security at the time and place and at the rate and in the money herein prescribed. 

As provided in the Indenture and subject to certain limitations herein and therein set forth, this Debt Security is transferable by the holder
hereof on the Debt Security Register (as defined in the Indenture) of the Company, upon surrender of this Debt Security for registration of transfer at the office or agency of the Trustee in Wilmington, Delaware, or at any other office or agency of
the Company in Wilmington, Delaware or Philadelphia, Pennsylvania, accompanied by a written instrument or instruments of transfer in form satisfactory to the Company or the Trustee duly executed by the holder hereof or such holder’s attorney
duly authorized in writing, and thereupon one or more new Debt Securities of authorized denominations and for the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be made for any such
registration of transfer, but the Company or the Trustee may require payment of a sum sufficient to cover any tax, fee or other governmental charge payable in relation thereto as specified in the Indenture. 

Prior to due presentment for registration of transfer of this Debt Security, the Company, the Trustee, any Authenticating Agent, any Paying
Agent, any transfer agent and the Debt Security registrar may deem and treat the holder hereof as the absolute owner hereof (whether or not this Debt Security shall be overdue and notwithstanding any notice of ownership or writing hereon) for the
purpose of receiving payment of the principal of and premium, if any, and interest on this Debt Security and for all other purposes, and none of the Company, the Trustee, any Authenticating Agent, any Paying Agent, any transfer agent or any Debt
Security registrar shall be affected by any notice to the contrary 
 As provided in the Indenture and subject to certain limitations herein
and therein set forth, Debt Securities are exchangeable for a like aggregate principal amount of Debt Securities of different authorized denominations, as requested by the holder surrendering the same. 

The Debt Securities are issuable only in registered certificated form without coupons. 

No recourse shall be had for the payment of the principal of or premium, if any, or interest on this Debt Security, or for any claim based
hereon, or otherwise in respect hereof, or based on or in respect of the Indenture, against any incorporator, stockholder, officer, director, employee or agent, past, present or future, as such, of the Company or of any predecessor or successor
corporation of the Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the
issuance hereof, expressly waived and released. 

  
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 All terms used but not defined in this Debt Security shall have the meanings assigned to them in
the Indenture. 
 THIS DEBT SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT
REGARD TO CONFLICT OF LAWS. PRINCIPLES OF SAID STATE OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 

  
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 CONVERSION REQUEST 
  

	To:	Wilmington Trust Company, 

	    	as Trustee 

 The undersigned owner of these Debt Securities hereby irrevocably exercises the option to convert
these Debt Securities, or the portion below designated, into Common Stock (as such term is defined in the Indenture, dated September 30, 2008, between Square 1 Financial, Inc. and Wilmington Trust Company, as Debenture Trustee (the
“Indenture”) in accordance with the terms of the Indenture and the Amended and Restated Declaration of Trust (as amended from time to time, the “Declaration”), dated as of September 30, 2008, by Richard J. Casey and Ronald
Gorczynski, as Administrative Trustees, Wilmington Trust Company, as Delaware Trustee and Institutional Trustee, Square 1 Financial, Inc., as Sponsor, and by the Holders, from time to time, of undivided beneficial interests in the assets of the
Trust to be issued pursuant to the Declaration. Pursuant to the aforementioned exercise of the option to convert these Debt Securities, the undersigned hereby directs the Conversion Agent (as that term is defined in the Declaration) to immediately
convert such Debt Securities on behalf of the undersigned, into Common Stock (at the conversion rate specified in the terms of the Debt Securities set forth as Annex I to the Indenture). 

The undersigned does also hereby direct the Conversion Agent that the shares issuable and deliverable upon conversion, together with any check in payment for
fractional shares, be issued in the name of and delivered to the undersigned, unless a different name has been indicated in the assignment below. If shares are to be issued in the name of a person other than the undersigned, the undersigned will pay
all transfer taxes payable with respect thereto. 
  

	
	 Date:
                                         
                                         
                                         
                                         
                                         
          
  

	Number of Debt Securities to be converted:                         
                                         
                                         
                                         
           

  

 If a name or names other than the undersigned, please indicate in the spaces below the name or names in which the
Shares of Common Stock are to be issued, along with the address or addresses of such person or persons. 
  

			
	   
	 	  

  

	
	
Date:                         
                                         
                                         
                                         
                                         
                           
  

	
Signature:                        
                                         
                                         
                                         
                                         
                          
  

	 Signature
Guarantee:1                              
                                         
                                         
                                         
                                       

 

  
 1 Signature must be guaranteed by an “eligible guarantor institution” that is a bank, stockbroker, savings and loan association or credit union, meeting the requirements of the Security
registrar, which requirements include membership or participation in the Securities Transfer Agents Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security registrar in
addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.Exhibit 10.17

 Exhibit 10.17 

SPLIT DOLLAR LIFE INSURANCE AGREEMENT 

THIS AGREEMENT (the “Agreement”) is made and entered into this 20th day of
June, 2012 by and between Square 1 Bank, a North Carolina bank, located in Durham, NC (the “Bank”), and Douglas Bowers, a current employee of the Bank (hereinafter referred to as the “Employee”). 

INTRODUCTION 
 WHEREAS,
Employee is an officer or other highly paid employee of the Bank; 
 WHEREAS, the Bank is purchasing insurance policies (hereinafter
referred to as the “Insurance Policy(ies)”), with John Hancock and Mass Mutual (hereinafter collectively referred to as the “Insurer”), on the life of the Employee; 

WHEREAS, the Bank desires to induce Employee to continue to utilize Employee’s best efforts on behalf of the Bank by its payment of
premiums due on the Insurance Policy(ies); and 
 WHEREAS, the Bank is the sole owner of the Insurance Policy(ies) and elects to endorse a
portion of the death benefit of the Insurance Policy(ies) to Employee, or Employee’s designated beneficiary. 
 NOW, THEREFORE, in
consideration of the mutual undertakings set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Bank and the Employee agree as follows: 

 

	1.	Ownership 

  

	 	1.1.	Ownership of Insurance Policy. The Bank is the sole owner of the Insurance Policy(ies) and shall have the right to exercise all incidents of ownership. The Bank shall be the beneficiary of the remaining death
proceeds of the Insurance Policy(ies) after payment of the Employee Death Benefit as defined and provided for in this Agreement. The Bank shall at all times be entitled to the Policy(ies) cash surrender value, as that term is defined in the
Insurance Policy(ies), less any Insurance Policy loans and unpaid interest or cash withdrawals previously incurred by the Bank and any applicable Insurance Policy surrender charges. The cash surrender value shall be determined as of the date of the
surrender of the Insurance Policy or death of the Employee, as the case may be. 

  

	 	1.2.	Right to Insurance Policy. Notwithstanding any provision hereof to the contrary, the Bank shall have the right to sell or sun-ender the Insurance Policy(ies) without terminating this Agreement, provided
(i) the Bank replaces the Insurance Policy(ies) with a comparable life insurance policy or arrangement that provides the benefit provided under this Agreement and (ii) the Bank and the Employee (who will not unreasonably withhold his
signature) execute a new Split Dollar Policy Endorsement for said comparable coverage arrangement, at which time all references to “Insurance Policy” hereunder shall refer to such replacement coverage arrangement. Without limitation, the
Insurance Policy(ies) at all times shall be the exclusive property of the Bank, and shall be subject to the claims of the Bank’s creditors. 

  
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	2.	Premiums. 

  

	 	2.1.	Payment of Premium. The Bank shall pay each premium on the Insurance Policy(ies) to the Insurer on or before the due date of such premium or within the grace period allowed by the Insurance Policy(ies) for the
payment of such premium. 

  

	 	2.2.	Economic Benefit. The Bank shall determine the economic benefit attributable to the Employee based on the life insurance premium factor for the Employee’s age multiplied by the amount of current life
insurance protection payable to the Employee’s beneficiary. The “life insurance premium factor” is the minimum amount required to be imputed under Treasury Regulation § 1.61-22(d)(3)(ii), or any subsequent applicable authority.
The Bank shall impute the economic benefit to the Employee on an annual basis by adding the economic benefit to the Employee’s Form W-2, or, if applicable, Form 1099. 

 

	3.	Bank’s Interests. Upon the death of the Employee and whereby death proceeds are payable by the Insurance Carrier, the Bank shall be entitled to receive an amount equal to all death benefits due under the
Insurance Policy less those explicitly provided to the Employee’s designated beneficiary under Section 4 hereof (the “Bank’s Policy Interest”). The Batik’s Policy Interest shall be payable as provided in Section 6
of this Agreement. The Bank’s Policy Interest shall be reduced by any amount borrowed against the Insurance Policy(ies) by Bank. 

  

	4.	Employee’s Interests. The Employee Death Benefit shall be equal to the product of three (3) times the Employee’s current base salary as of the Employee’s date of death; provided however, that
under no circumstances shall the Employee Death Benefit exceed $1,000,000 (the “EDB Cap”). The Employee Death Benefit will be paid as follows: (A) pursuant to the then currently in force group life insurance policy provided by Square
1 to its employees (the “Square 1 GTL Policy”), an amount equal to two (2) times the Employee’s current salary (subject to the limitation that such amount shall not exceed $400,000); phis: (B) pursuant to this Agreement, an
amount equal to (i) the Employee Death Benefit, less (ii) any amount paid pursuant Square 1 GTL Policy as described in part (A) of this section; provided that, for the avoidance of doubt, any and all such payments being subject to the
EDB Cap. The Employee shall have the limited right during the term of Employee’s employment with the Bank to designate and change the direct and contingent beneficiaries (collectively, the “Beneficiary”) of the Employee portion of the
death benefits of the Insurance Policy (the “Employee Death Benefit”). 

  

	5.	Beneficiary 

  

	 	5.1.	 Beneficiary Designation. The Employee’s Beneficiary designation shall be made in writing and delivered to the Bank in a form acceptable to
the Insurer and Bank. Employee’s designated Beneficiary may be amended by the Employee from time 

  
 2 

	 	
to time during the term of this Agreement. Upon the acceptance by the Bank of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be cancelled. The Bank shall
be entitled to rely on the last Beneficiary Designation Form filed by the Employee and accepted by the Bank prior to the Employee’s death. 

  

	 	5.2.	Beneficiary Acknowledgement. No designation or change in designation of a Beneficiary shall be effective until received, accepted, and acknowledged in writing by the Bank or its designated agent.

  

	 	5.3.	Facility of Payment. If the Bank determines in its discretion that a benefit is to be paid to a minor, or to any person who has been determined to be legally incompetent by a court of competent jurisdiction, the
Bank may direct payment of such benefit to the guardian, legal representative, or other person having the care or custody of such minor, incompetent person or incapable person. Prior to distribution of the benefit, the Bank may require such proof of
incompetence, minority, or guardianship as it may deem appropriate. Any payment of a benefit shall be a payment for the account of the Employee and the Employee’s Beneficiary, as the case may be, and shall be a complete discharge of any
liability under the Agreement for such payment amount. 

  

	 	5.4.	No Beneficiary Designation. If the Employee dies without a valid designation of Beneficiary, or if all designated Beneficiaries predecease the Employee, then the Employee’s surviving spouse shall be the
designated Beneficiary. If the Employee also dies without a surviving spouse, the benefits shall be made payable to the personal representative of the Employee’s estate. 

 

	6.	Death Claims. 

  

	 	6.1.	Bank’s Benefit. Upon the death of Employee, the Bank shall be entitled to receive a portion of the death benefits payable under the Insurance Policy equal to the Bank’s Policy Interest and the receipt
of this amount by the Bank shall constitute satisfaction of the Bank’s rights under Section 3 of this Agreement. 

  

	 	6.2.	Employee’s Benefit. Upon the death of Employee, the Beneficiary shall be entitled to receive the amount of the death benefits equal to the Employee Death Benefit and the receipt of this amount by the
Beneficiary shall constitute satisfaction of the Employee’s rights under this Agreement. 

  

	 	6.3.	Benefit Paid by Insurance Carrier. The benefit payable to Employee’s Beneficiaries shall be paid solely by the Insurer from the proceeds of the Insurance Policy(ies) on the life of the Insured. In no event
shall the Bank be obligated to pay a death benefit under this Agreement from its general funds. Should an Insurer refuse or be unable to pay death proceeds endorsed to Insured under the express terms of this Agreement, or should the Bank cancel the
Insurance Policy(ies) for any reason, neither Employee nor any Beneficiary shall be entitled to a death benefit. If Bank elects to cancel the Insurance Policy(ies) for any reason, Bank shall promptly notify the Employee of such cancellation in
writing. 

  
 3 

	 	6.4.	Suicide or Misstatement. The amount of the benefit payable to Employee’s Beneficiaries may be reduced or eliminated if the Employee (i) fails or refuses to truthfully and completely supply such
information or complete any forms as may be reasonably required by the Bank or the Insurer, (ii) otherwise fails to cooperate with the reasonable requests of the Bank or the Insurer, or (iii) dies under circumstances such that the
Insurance Policy(ies) does not pay a full death benefit, as provided in the insurance policy. It is understood and agreed by the Bank and the Employee that the Employee shall not be required to provide any medical information, medical history, or
take any medically-related test or examination in connection with this Agreement or the Insurance Policy(ies). 

  

	7.	Termination of Agreement. 

  

	 	7.1.	Termination Events. This Agreement shall automatically terminate on the occurrence of any of the following events prior to the death of the Employee: 

 

	 	(a)	Written notice given by either party to the other; 

  

	 	(b)	Termination of the employment of Employee (whether voluntary or involuntary); or 

  

	 	(c)	Bankruptcy, receivership, or dissolution of the Bank. 

  

	 	7.2.	Rights Upon Termination. If this Agreement is terminated pursuant to this Section 7, the Employee shall forfeit all rights hereunder, including the right to designate a Beneficiary, and Bank at its sole
discretion may retain or terminate the Insurance Policy(ies), with Bank as the sole remaining beneficiary thereunder. 

  

	 	7.3.	Amendments. Prior to the Employee’s death, this Agreement may be amended or terminated, in whole or in part, by the Bank at its sole discretion; provided, however, that if the Employee’s interests are
adversely affected, such amendment or termination by action of the Bank may not become effective earlier than thirty days (30) after delivering a written notice of such action to the Employee. This Agreement may not be amended after the date of
the Employee’s death. 

  

	8.	Insurance Company Not a Party. The Insurer (i) shall not be deemed a party to this Agreement for any purpose nor in any way responsible for its validity; (ii) shall not be obligated to inquire as to the
validity or legality of the distribution of any monies payable or paid by it under the Insurance Policy(ies); and (iii) shall be fully discharged from any and all liability under the terms of the Insurance Policy(ies) upon payment or other
performance of its obligations in accordance with the terms of the Insurance Policy(ies). The Insurer shall not be bound by or be deemed to have notice of the provisions of this Agreement. 

  
 4 

	9.	Administration 

  

	 	9.1.	Plan Administrator. This Agreement shall be administered by a Plan Administrator, which shall consist of the Bank’s board of directors or such committee as the board shall appoint. The Employee may be a
member of the Administrator. 

  

	 	9.2.	Plan Administrator Duties. The Plan Administrator shall have the discretion and authority to: (i) make, amend, interpret and enforce all appropriate rules and regulations for the administration of this
Agreement; and (ii) decide or resolve any and all questions, including interpretations of this Agreement, as may arise in connection with this Agreement. 

  

	 	9.3.	Binding Effect of Decisions. Any decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation, and application of this
Agreement and the rules and regulations promulgated hereunder shall be final, conclusive, and binding upon all persons having any interest in this Agreement. 

  

	 	9.4.	Indemnity of Plan Administrator. The Bank shall indemnify and hold harmless the members of the Plan Administrator, and those to whom management and operational responsibilities of the plan have been delegated,
against any and all claims, losses, damages, expenses (including reasonable attorney fees and related legal costs and expenses) or liabilities arising from any action or failure to act with respect to this Agreement, except in the case of willful
misconduct by the Plan Administrator or any of its members. 

  

	 	9.5.	Information. To enable the Administrator to perform its functions, the Bank shall supply complete and timely information to the Administrator on all matters relating to the date and circumstances of the
retirement, death, or Termination of Employment of the Employee, as well as and such other pertinent information as the Administrator may reasonably require. 

  

	10.	Claims and Review Procedure 

  

	 	10.1.	Written Claim. A person who believes that he or she being denied a benefit to which he or she is entitled under this Agreement (hereinafter referred to as a “Claimant”) may file a written request for
such benefit with the Plan Administrator, setting forth his or her claim. The request must be addressed to the Bank at its then principal place of business. 

  
 5 

	 	10.2.	Timing of Response. Upon receipt of a claim from a Claimant, the Plan Administrator shall advise the Claimant that a written reply will be forthcoming within ninety (90) days and shall, in fact, deliver such
written reply within such period. The Plan Administrator may, however, extend the reply period for up to an additional ninety (90) days for reasonable cause. If the claim is denied in whole or in part, the Plan Administrator shall adopt a
written opinion, using language calculated to be understood by the Claimant, setting forth: 

  

	 	(d)	The specific reason or reasons for such denial; 

  

	 	(e)	The specific reference to pertinent provisions of this Agreement on which such denial is based; 

  

	 	(f)	A description of any additional material or information necessary for the Claimant to perfect his or her claim and an explanation why such material or such information is necessary; 

 

	 	(g)	Appropriate information as to the steps to be taken if the Claimant wishes to submit the claim for review; and 

  

	 	(h)	The time limits for requesting a review under Section 10.3 and for review under Section 10.4 hereof. 

  

	 	10.3.	Request for Review. With ninety (90) days after the receipt by the Claimant of the written opinion described in Section 10.2, the Claimant may request in writing that the determination of the Plan
Administrator be reviewed. Such request must be addressed to the Bank at its then principal place of business. The Claimant or his or her duly authorized representative may, but need not, review the pertinent documents and submit issues and comments
in writing for consideration by the Plan Administrator. If the Claimant does not request a review of the Plan Administrator’s determination within such ninety (90) day period, he or she shall be barred and estopped from challenging the
Plan Administrator’s determination. 

  

	 	10.4.	Review of Decision. The Plan Administrator will review its determination within ninety (90) days after receipt of a request for review. After considering all materials presented by the Claimant, the Plan
Administrator will render a written opinion, written in a manner calculated to be understood by the Claimant, setting forth the specific reasons for the decision and containing specific references to the pertinent provisions of this Agreement on
which the decision is based. If special circumstances require that the ninety (90) day time period be extended, the Plan Administrator will so notify the Claimant and will render the decision as soon as possible, but no later than one hundred
twenty (120) days after receipt of the request for review. 

  

	11.	Binding Effect. This Agreement shall bind the Employee and the Bank and their respective heirs, beneficiaries, survivors, executors, administrators, representatives, successors, transferees and assigns, and any
Insurance Policy Beneficiary. 

  

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

 

	13.	 Waiver of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BANK AND EMPLOYEE HEREBY IRREVOCABLY AND EXPRESSLY

  
 6 

	 	
WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREIN OR THE ACTIONS OF THE BANK IN THE NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT THEREOF. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

  

	14.	Entire Agreement; Oral Agreements Ineffective. This Agreement constitutes the entire and final agreement between the Bank and Employee as to the subject matter hereof and may not be contradicted by evidence of
prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties. 

  

	15.	No Third Party Beneficiaries. Other than as expressly set forth herein, the benefits of this Agreement shall not inure to any third party. This Agreement shall not be construed as creating any rights, claims, or
causes of action against Bank or any of its officers, directors, agents, or employees in favor of any person or entity other than Employee. 

  

	16.	Severability. If any one or more of the provisions of this Agreement is declared invalid, illegal, or unenforceable in any jurisdiction, the validity, legality, and enforceability of the remaining provisions
shall not in any way be affected or impaired, and that invalidity, illegality, or unenforceability in one jurisdiction shall not affect the validity, legality, or enforceability of the remaining provisions hereof. 

 

	17.	 Governing Law; Venue; Service of Process. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH
CAROLINA. THIS AGREEMENT HAS BEEN ENTERED INTO IN DURHAM COUNTY, NORTH CAROLINA, AND IS PERFORMABLE FOR ALL PURPOSES IN DURHAM COUNTY, NORTH CAROLINA. THE PARTIES HEREBY AGREE THAT ANY LAWSUIT, ACTION, OR PROCEEDING THAT IS BROUGHT (WHETHER IN
CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED THEREBY, OR THE ACTIONS OF THE BANK IN THE NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT OF ANY OF THIS AGREEMENT SHALL BE BROUGHT IN A STATE OR
FEDERAL COURT OF COMPETENT JURISDICTION LOCATED IN DURHAM COUNTY, NORTH CAROLINA. EMPLOYEE HEREBY IRREVOCABLY AND UNCONDITIONALLY (A) SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS, (B) WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER
HAVE AS TO THE VENUE OF ANY SUCH LAWSUIT, ACTION, OR PROCEEDING BROUGHT IN ANY SUCH COURT, AND (C) FURTHER WAIVES ANY CLAIM THAT IT MAY NOW OR HEREAFTER HAVE THAT ANY SUCH COURT IS AN INCONVENIENT

  
 7 

	 	
FORUM. EACH OF THE PARTIES HERETO AGREE THAT SERVICE OF PROCESS UPON IT MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED AT THE ADDRESS FOR NOTICES CONTAINED IN THE SIGNATURE
PAGE OF THIS AGREEMENT. 

  

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

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

									
	BANK:	 		 	EMPLOYEE:
					
	By:	 	 /s/ Geoff Imboden
	 		 	By:	 	 /s/ Douglas Bowers

					
	Print Name:	 	 Geoff Imboden
	 		 	Print Name:	 	 Douglas Bowers

					
	Title:	 	 SVP + Treasurer
	 		 	Address:	 	  

					
		 		 		 		 	  

  
 8

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