Document:

ex10-1.htm

    Exhibit
10.1

     

    FREESTAR
TECHNOLOGY CORPORATION

     

    2007
STOCK INCENTIVE PLAN

     

    (as
amended effective December 2, 2008)

    

     

    1. Purposes of the
Plan.    The purposes of this Stock Incentive Plan
are to attract and retain the best available personnel for positions of
substantial responsibility, to provide additional incentive to Employees,
Directors and Consultants of the Company and its Subsidiaries and to promote the
success of the Company's business. To accomplish the foregoing, the Plan
provides that the Company may grant Options and Shares of Common Stock (each as
hereinafter defined). Options granted under the Plan may be incentive stock
options (as defined under Section 422 of the Code) or nonstatutory stock
options, as determined by the Administrator at the time of grant of an Option
and subject to the applicable provisions of Section 422 of the Code, as
amended, and the regulations promulgated thereunder.

    

    2. Definitions.    As
used herein, the following definitions shall apply:

    

    (a) "Administrator"
means the Board or any of its Committees appointed pursuant to Section 4 of
the Plan.

    

    (b) "Applicable
Laws" has the meaning set forth in Section 4(a) of the Plan.

    

    (c) "Award"
means an award of Options or Shares (each as defined below).

    

    (d) "Board"
means the Board of Directors of the Company.

    

    (e) "Code"
means the Internal Revenue Code of 1986, as amended.

    

    (f) "Committee"
means a committee of Directors or of other individuals satisfying Applicable
Laws appointed by the Board in accordance with Section 4 hereof.

     

    (g) "Common
Stock" means the common stock of the Company.

    

    (h) "Company"
means FreeStar Technology Corporation, a Nevada corporation.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    (i) "Consultant"
means any person who is engaged by the Company, or any Parent or Subsidiary, to
render services and is compensated for such services other than as an
Employee.

    

    (j) "Continuous
Status" means the absence of any interruption or termination of service as an
Employee, Director or Consultant. Continuous Status as an Employee or Consultant
shall not be considered interrupted in the case of: (i) sick leave;
(ii) military leave; (iii) any other leave of absence approved by the
Administrator, provided that such leave is for a period of not more than ninety
(90) days, unless reemployment upon the expiration of such leave is
guaranteed by contract or statute, or unless provided otherwise pursuant to
Company policy adopted from time to time; or (iv) in the case of transfers
between locations of the Company or between the Company, its Subsidiaries or
their respective successors. For purposes of this Plan, a change in status from
an Employee to a Consultant or from a Consultant to an Employee will not
constitute an interruption of Continuous Status.

    

    (k) "Director"
means a member of the Board.

    

    (l) "Employee"
means any person, which may include Officers and Directors, employed by the
Company or any Parent or Subsidiary of the Company, with the status of
employment determined by the Administrator in its discretion, subject to any
requirements of the Code.

    

    (m) "Exchange
Act" means the Securities Exchange Act of 1934, as amended.

    

    (n) "Fair
Market Value" means, as of any date, the fair market value of Common Stock
determined as follows:

    

    (i)   If the Common
Stock is listed on any established stock exchange or a national market system
including without limitation the National Market of the National Association of
Securities Dealers, Inc. Automated Quotation ("Nasdaq") System, its Fair
Market Value shall be the closing sales price for such stock as quoted on such
system on the date of determination (if for a given day no sales were reported,
the closing bid on that day shall be used), as such price is reported in The
Wall Street Journal or such other source as the Administrator deems
reliable;

    

    (ii)  If the Common Stock is
quoted on the Nasdaq System (but not on the National Market thereof) or
regularly quoted by a recognized securities dealer but selling prices are not
reported, its Fair Market Value shall be the mean between the bid and asked
prices for the Common Stock on the date of determination, as reported in The
Wall Street Journal or such other source as the Administrator deems reliable;
or

    

    (iii) In the absence of an established
market for the Common Stock, the Fair Market Value thereof shall be determined
in good faith by the Administrator.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (o) "Incentive
Stock Option" means an Option intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code, as designated in the
applicable written option agreement.

    

    (t) "Non-Employee
Director" shall mean a Director who is not an Employee.

    

    (u) "Nonstatutory Stock Option" means an Option not intended to
qualify as an Incentive Stock Option, as designated in the applicable written
option agreement.

    

    (v) "Option"
means a stock option granted pursuant to the Plan.

    

    (w) "Optionee"
means an Employee, Director or Consultant who receives an Option.

    

    (x) "Parent"
means a "parent corporation," whether now or hereafter existing, as defined in
Section 424(e) of the Code, or any successor provision.

    

    (y) "Plan"
means this 2007 Stock Incentive Plan.

    

    (z) "Restricted
Period" has the meaning set forth in Section 10(b) of the
Plan.

    

    (aa) "Rule 16b-3"
means Rule 16b-3 promulgated under the Exchange Act, as the same may be
amended from time to time, or any successor provision.

    

    (bb) "Share"
means a share of the Common Stock.

    

    (cc) "Stock
Exchange" means any stock exchange or consolidated stock price reporting system
on which prices for the Common Stock are quoted at any given time.

    

    (dd) "Subsidiary"
means a "subsidiary corporation," whether now or hereafter existing, as defined
in Section 424(f) of the Code, or any successor provision.

     

    3.  Stock Subject to the
Plan.    The maximum aggregate number of Shares that
may be issued under the Plan is 58,333,333 shares of Common
Stock.  The Shares may be authorized, but unissued, or reacquired
Common Stock. If an Award should expire, become forfeited or become
unexercisable for any reason without having been exercised or nonforfeitable in
full, the unpurchased Shares that were subject thereto shall, unless the Plan
shall have been terminated, become available for future grant under the Plan. In
addition, any Shares of Common Stock which are retained by the Company upon
exercise of an Option in order to satisfy the exercise or purchase price for
such Option or any withholding taxes due with respect to such exercise shall be
treated as not issued and shall continue to be available under the
Plan.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4. Administration of the
Plan.    

     

    (a)  Multiple Administrative
Bodies. If permitted by Rule 16b-3 and by the legal requirements
relating to the administration of incentive stock option plans, if any, of
applicable securities laws and the Code (collectively the "Applicable Laws"),
grants under the Plan may be made by the Board or a Committee appointed by the
Board, which Committee shall be constituted to comply with Applicable
Laws.

     

    (b)  General. If a Committee has
been appointed pursuant to this Section 4, such Committee shall continue to
serve in its designated capacity until otherwise directed by the Board. From
time to time the Board may increase the size of the Committee and appoint
additional members thereof, remove members (with or without cause) and appoint
new members in substitution therefor, fill vacancies, however caused, and remove
all members of the Committee and thereafter directly administer the Plan, all to
the extent permitted by the Applicable Laws.

    

    (c)  Powers of the Administrator.
Subject to the provisions of the Plan and in the case of a Committee, the
specific duties delegated by the Board to such Committee, and subject to the
approval of any relevant authorities, including the approval, if required, of
any Stock Exchange, the Administrator shall have the authority, in its
discretion:

    

    
      	
               
      

            	
              (i)

            	
              to
      determine the Fair Market Value of the Common Stock, in accordance with
      Section 2(q) of the Plan;

            

    

    
      	
               
      

            	
              (ii)

            	
              to
      select the Consultants, Directors and Employees to whom Awards may from
      time to time be granted hereunder;

            

    

    
      	
               
      

            	
              (iii)

            	
              to
      determine whether and to what extent Options or Shares or any combination
      thereof are granted hereunder;

            

    

    
      	
               
      

            	
              (iv)

            	
              to
      determine the number of Shares of Common Stock, if any, to be covered by
      each Award granted hereunder;

            

    

    
      	
               
      

            	
              (v)

            	
              to
      approve forms of agreement for use under the
  Plan;

            

    

    
      	
               
      

            	
              (vi)

            	
              to
      determine the terms and conditions, not inconsistent with the terms of the
      Plan, of any Award granted hereunder, including, but not limited to, the
      share price and any restriction or limitation, the vesting of any Option
      or the acceleration of vesting or waiver of a forfeiture restructure,
      based in each case on such factors as the Administrator shall determine,
      in its sole discretion;

            

    

    
      	
               
      

            	
              (vii)

            	
              to
      determine whether and under what circumstances an Option may be settled in
      cash instead of Common Stock;

            

    

    
      	
               
      

            	
              (viii)

            	
              to
      reduce the exercise price of any Option to the then current Fair Market
      Value if the Fair Market Value of the Common Stock covered by such Option
      shall have declined since the date the Option was granted; provided,
      however, that, to the extent required under Applicable Law or the rules of
      the applicable Stock Exchange, the Administrator shall not exercise such
      power without prior shareholder
approval.

            

    

    
      	
               
      

            	
              (ix)

            	
              to
      determine the terms and restrictions, if any, applicable to an award of
      Shares;

            

    

    
      	
               
      

            	
              (x)

            	
              to
      construe and interpret the terms of the Plan and awards granted pursuant
      to the Plan; and

            

    

    
      	
               
      

            	
              (xi)

            	
              in
      order to fulfill the purposes of the Plan and without amending the Plan,
      to modify Awards to participants who are foreign nationals or employed
      outside of the United States in order to recognize differences in local
      law, tax policies or customs.

            

    

    

    (d)  Effect of Administrator's
Decision. All decisions, determinations and interpretations of the
Administrator shall be final and binding on all holders of any
Award.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5. Eligibility.    

     

    (a)  Recipients of Grants. Awards
may be granted to eligible Employees, Directors and Consultants. Incentive Stock
Options may be granted only to Employees.

    

    (b)  Type of Option. Each Option
shall be designated in the written option agreement as either an Incentive Stock
Option or a Nonstatutory Stock Option. However, notwithstanding such
designations, to the extent that the aggregate Fair Market Value of Shares with
respect to which Options designated as Incentive Stock Options are exercisable
for the first time by any Optionee during any calendar year (under all plans of
the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options
shall be treated as Nonstatutory Stock Options. For purposes of this
Section 5(b), Incentive Stock Options shall be taken into account in the
order in which they were granted, and the Fair Market Value of the Shares
subject to an Incentive Stock Option shall be determined as of the date of the
grant of such Option.

    

    (c)  No Employment Rights. The
Plan shall not confer upon any Optionee any right with respect to continuation
of employment or consulting relationship with the Company, nor shall it
interfere in any way with such Optionee's right or the Company's right to
terminate his or her employment or consulting relationship at any time, with or
without cause.

     

    6.  Term of
Plan.    The Plan shall become effective upon its
adoption by the Board.  It shall continue in effect for ten (10) years
from the date thereof, unless sooner terminated under Section 15
hereof.

     

    7.  Term of
Option.    The term of each Option shall be the term
stated in the Option Agreement; provided, however, that the term shall be no
more than ten (10) years from the date of grant thereof or such shorter
term as may be provided in the Option Agreement and provided further that, in
the case of an Incentive Stock Option granted to an Optionee who, at the time
the Option is granted, owns stock representing more than ten percent (10%) of
the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the term of the Option shall be five (5) years from the date of
grant thereof or such shorter term as may be provided in the written option
agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    8. Option Exercise Price and
Consideration.    

     

    (a)  Exercise Price. The per share
exercise price for the Shares to be issued pursuant to exercise of an Option
shall be such price as is determined by the Board and set forth in the
applicable agreement, but shall be subject to the following:

    

    (i)  In
the case of an Incentive Stock Option that is:

    

    (A)  granted to an Employee
who, at the time of the grant of such Incentive Stock Option, owns stock
representing more than ten percent (10%) of the voting power of all classes of
stock of the Company or any Parent or Subsidiary, the per Share exercise price
shall be no less than 110% of the Fair Market Value per Share on the date of
grant.

    

    (B)  granted to any other
Employee, the per Share exercise price shall be no less than 100% of the Fair
Market Value per Share on the date of grant.

    

    (ii)  In the case of a
Nonstatutory Stock Option, the per Share exercise price will be determined by
the Administrator.

    

    (b)  Permissible Consideration.
The consideration to be paid for the Shares to be issued upon exercise of an
Option, including the method of payment, shall be determined by the
Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant) and may consist entirely of (1) cash,
(2) check, (3) promissory note, (4) other Shares, (5) to the
extent permitted under Applicable Laws, authorization for the Company to retain
from the total number of Shares as to which the Option is exercised that number
of Shares having a Fair Market Value on the date of exercise equal to the
exercise price for the total number of Shares as to which the Option is
exercised, (6) to the extent permitted under Applicable Laws, delivery of a
properly executed exercise notice together with such other documentation as the
Administrator and the broker, if applicable, shall require to effect an exercise
of the Option and delivery to the Company of the sale or loan proceeds required
to pay the exercise price and any applicable income or employment taxes,
(7) any combination of the foregoing methods of payment, or (8) such
other consideration and method of payment for the issuance of Shares to the
extent permitted under Applicable Laws.

     

    9. Exercise of
Option.    

     

    (a)  Procedure for Exercise; Rights as a
Shareholder. Any Option granted hereunder shall be exercisable at such
times and under such conditions as determined by the Administrator, and
reflected in the written option agreement, which may include vesting
requirements and/or performance criteria with respect to the Company and/or the
Optionee. An Option may not be exercised for a fraction of a Share.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    An Option shall be deemed to be exercised when written
notice of such exercise has been given to the Company in accordance with the
terms of the Option by the person entitled to exercise the Option and the
Company has received full payment for the Shares with respect to which the
Option is exercised. Full payment may, as authorized by the Board, consist of
any consideration and method of payment allowable under Section 8(b) of the
Plan. Until the issuance (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to such stock, not
withstanding the exercise of the Option. The Company shall issue (or cause to be
issued) such stock certificate promptly upon exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as provided in
Section 12 of the Plan.

     

     (b)  Termination of Employment or
Consulting Relationship. Unless otherwise provided in the Option, in the
event of termination of an Optionee's Continuous Status, such Optionee may, but
only within three (3) months after the date of such termination (or such
greater period of time as is determined by the Administrator, with such
determination in the case of an Incentive Stock Option being made at the time of
grant of the Option and not exceeding three (3) months after the date of
such termination), exercise his or her Option to the extent that the Optionee
was entitled to exercise it at the date of such termination. To the extent that
Optionee was not entitled to exercise the Option at the date of such
termination, or if Optionee does not exercise such Option to the extent so
entitled within the time specified herein, the Option shall
terminate.

    

    (c)  Disability of Optionee. In
the event of termination of an Optionee's Continuous Status as a result of his
or her total and permanent disability (within the meaning of
Section 22(e)(3) of the Code), Optionee may, but only within twelve
(12) months from the date of such termination, unless otherwise provided in
the Option (but in no event later than the expiration date of the term of such
Option as set forth in the Option Agreement), exercise the Option to the extent
otherwise entitled to exercise it at the date of such termination. To the extent
that Optionee was not entitled to exercise the Option at the date of
termination, or if Optionee does not exercise such Option to the extent so
entitled within the time specified herein, the Option shall
terminate.

    

    (d)
 Death of
Optionee. In the event of the death of an Optionee during the period of
Continuous Status, or death within three (3) months following the termination of
the Optionee's Continuous Status, the Option may be exercised, at any time
within twelve (12) months following the date of death, unless otherwise
provided in the Option (but in no event later than the expiration date of the
term of such Option as set forth in the Option Agreement), by the Optionee's
estate or by a person who acquired the right to exercise the Option by bequest
or inheritance, but only to the extent the Optionee was entitled to exercise the
Option at the date of death or, if earlier, the date of termination of the
Continuous Status. To the extent that Optionee was not entitled to exercise the
Option at the date of death or termination, as the case may be, or if Optionee
does not exercise such Option to the extent so entitled within the time
specified herein, the Option shall terminate.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e)  Extension of Exercise Period.
Notwithstanding the limitations set forth in Sections 9(b), (c) and
(d) above, the Administrator has full power and authority to extend the
period of time for which any Option granted under the Plan is to remain
exercisable following termination of an Optionee's Continuous Status from the
limited period set forth in the written option agreement to such greater period
of time as the Administrator shall deem appropriate.

    

    (f)  Rule 16b-3. Options
granted to Officer, Director, or greater than ten percent shareholder of the
Company shall comply with Rule 16b-3 and shall contain such additional
conditions or restrictions as may be required thereunder to qualify for the
maximum exemption for Plan transactions.

    

    (g)   Buyout Provisions. The
Administrator may at any time offer to buy out for a payment in cash or Shares,
an Option previously granted, based on such terms and conditions as the
Administrator shall establish and communicate to the Optionee at the time that
such offer is made.

     

    10. Shares.    

     

    (a) Grant of Shares. Shares of
Common Stock may be issued either alone, in addition to, or in tandem with other
Awards granted under the Plan. After the Administrator determines that it will
grant an award of shares of Common Stock under the Plan, it shall advise the
offeree in writing of the terms, conditions and restrictions (if any) related to
the offer, including the Restricted Period applicable to such award, the
imposition, if any, of any performance-based condition or other restriction on
an award of such Common Stock, the number of Shares that such person shall be
entitled to purchase, the price to be paid, if any. The prospective recipient of
an Award of Shares shall not have any rights with respect to any such Award,
unless and until such recipient has executed an award agreement, in the form
determined by the Administrator, evidencing the Award.

    

    (b) 
Lapse of Restrictions.
With respect to an Award of Shares, the Administrator shall prescribe in the
award agreement, the period in which such Shares becomes nonforfeitable, which
may be immediately, over time, or upon specified events (the "Restricted
Period").

    

    (c) 
Certificates. Each
recipient who is granted an Award of Shares shall be issued a stock certificate
in respect of such Shares, which certificate shall be registered in the name of
the recipient and shall bear an appropriate legend referring to the terms,
conditions, and restrictions applicable to any such Award; provided that the
Company may require that the stock certificates evidencing any Shares that are
subject to restrictions granted hereunder be held in the custody of the Company
until any restrictions thereon shall have lapsed, and may require that, as a
condition of any Award of Shares, the participant shall have delivered a stock
power, endorsed in blank, relating to the Shares covered by such
Award.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d) 
Rights as a
Shareholder. Except as otherwise provided in an Award Agreement, the
participant shall possess all incidents of ownership with respect to such Shares
during the Restricted Period, including the right to receive or reinvest
dividends with respect to such Shares and to vote such Shares. Certificates for
unrestricted Shares shall be delivered to the participant promptly after, and
only after, the Restricted Period shall expire without forfeiture in respect of
such Awards of Shares except as the Administrator, in its sole discretion, shall
otherwise determine.

     

    (e) 
Nontransferability.
During the Restricted Period, if any, the recipient of such award shall not be
permitted to sell, transfer, pledge, hypothecate or assign Shares awarded under
the Plan except by will or the laws of descent and distribution. Any attempt to
dispose of any restricted Shares during the Restricted Period in contravention
of any such restrictions shall be null and void and without effect.

    

    (f) 
Other Provisions. The
Award agreement shall contain such other terms, provisions and conditions not
inconsistent with the Plan as may be determined by the Administrator in its sole
discretion. In addition, the provisions of the Award agreements need not be the
same with respect to each purchaser.

     

    11.  Stock Withholding to Satisfy
Withholding Tax Obligations.    At the discretion of
the Administrator, Optionees may satisfy withholding obligations as provided in
this paragraph. When an Optionee incurs tax liability in connection with an
Option, which tax liability is subject to tax withholding under applicable tax
laws, and the Optionee is obligated to pay the Company an amount required to be
withheld under applicable tax laws, the Optionee may satisfy the withholding tax
obligation by one or some combination of the following methods: (a) by cash
payment, or (b) out of Optionee's current compensation, (c) if
permitted by the Administrator, in its discretion, by surrendering to the
Company Shares that (I) in the case of Shares previously acquired from the
Company, have been owned by the Optionee for more than six months on the date of
surrender, and (ii) have a fair market value on the date of surrender equal
to or less than Optionee's marginal tax rate times the ordinary income
recognized, or (d) by electing to have the Company withhold from the Shares
to be issued upon exercise of the Option, if any, that number of Shares having a
fair market value equal to the amount required to be withheld. For this purpose,
the fair market value of the Shares to be withheld shall be determined on the
date that the amount of tax to be withheld is to be determined (the "Tax
Date").

     

    All
elections by an Optionee to have Shares withheld to satisfy tax withholding
obligations shall be made in writing in a form acceptable to the Administrator
and shall be subject to the following restrictions: (a) the election must be
made on or prior to the applicable Tax Date; (b) once made, the election shall
be irrevocable as to the particular Shares of the Option as to which the
election is made; and (c) all elections shall be subject to the consent or
disapproval of the Administrator.

     

    In the
event the election to have Shares withheld is made by an Optionee and the Tax
Date is deferred under Section 83 of the Code because no election is filed
under Section 83(b) of the Code, the Optionee shall receive the full number
of Shares with respect to which the Option is exercised but such Optionee shall
be unconditionally obligated to tender back to the Company the proper number of
Shares on the Tax Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    12. Adjustments Upon Changes in
Capitalization, Corporate
Transactions.    

     

    (a) 
Changes in
Capitalization. Subject to any required action by the shareholders of the
Company, (i) the number of shares of Common Stock covered by each
outstanding Award, (ii) the number of shares of Common Stock that have been
authorized for issuance under the Plan but as to which no Awards have yet been
granted or that have been returned to the Plan upon cancellation or expiration
of an Award or otherwise, (iii) the maximum number of shares of Common
Stock for which Awards may be granted to any Employee under the Plan,
(iv) the price per share of Common Stock covered by each such outstanding
Award, and (v) the number of shares of Common Stock that may be granted
shall be proportionately adjusted for any increase or decrease in the number of
issued shares of Common Stock resulting from a stock split, reverse stock split,
stock dividend, combination, recapitalization or reclassification of the Common
Stock, or any other increase or decrease in the number of issued shares of
Common Stock effected without receipt of consideration by the Company; provided,
however, that conversion of any convertible securities of the Company shall not
be deemed to have been "effected without receipt of consideration." Such
adjustment shall be made by the Board, whose determination in that respect shall
be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of
any class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of shares of Common Stock subject to an Award.

    

    (b) 
Corporate Transactions.
In the event of the proposed dissolution or liquidation of the Company, each
Award will terminate immediately prior to the consummation of such proposed
action, unless otherwise provided by the Administrator. Additionally, the
Administrator may, in the exercise of its sole discretion in such instances,
declare that any Award shall terminate as of a date fixed by the Administrator
and that each Award shall be vested and non-forfeitable and any conditions on
each such Award shall lapse, as to all or any part of such Award, including
Shares as to which the Award would not otherwise be exercisable or
non-forfeitable. In the event of a proposed sale of all or substantially all of
the assets of the Company, or the merger of the Company with or into another
corporation, each Award shall be assumed or an equivalent Award shall be
substituted by such successor corporation or a parent or subsidiary of such
successor corporation, unless the Administrator determines, in the exercise of
its sole discretion and in lieu of such assumption or substitution, that the
Award shall be vested and non-forfeitable and any conditions on each such Award
shall lapse, as to all or any part of such Award, including Shares as to which
the Award would not otherwise be exercisable or non-forfeitable. If the
Administrator makes an Award exercisable or non-forfeitable in lieu of
assumption or substitution in the event of a merger or sale of assets, the
Administrator shall notify the recipient that such Award shall be exercisable
for a period of thirty (30) days from the date of such notice, and
thereafter will terminate upon the expiration of such period.

    

    13.  Non-transferability of
Awards.    An Award may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    14.  Time of Granting of an
Award.    The date of grant of an Award shall, for
all purposes, be the date on which the Administrator makes the determination
granting such Award, or such other date as is determined by the Board. Notice of
the determination shall be given to each Employee or Consultant to whom an Award
is so granted within a reasonable time after the date of such
grant.

     

    15. Amendment and Termination of the
Plan.    

     

    (a) Amendment and Termination.
The Board may amend, alter, suspend, discontinue, or terminate the Plan or any
portion thereof at any time; provided, that no such amendment, alteration,
suspension, discontinuation or termination shall be made without stockholder
approval if such approval is necessary to comply with any tax, securities or
regulatory.

    

    (b) 
Effect of Amendment or
Termination. Notwithstanding the foregoing, any such amendment or
termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated, unless mutually agreed otherwise between the Optionee and
the Board, which agreement must be in writing and signed by the Optionee and the
Company.

     

    16.  Conditions Upon Issuance of
Shares.    Shares shall not be issued pursuant to the
exercise of an Award unless the exercise of such Award and the issuance and
delivery of such Shares pursuant thereto shall comply with all relevant
provisions of law, including, without limitation, the Securities Act of 1933, as
amended, the Exchange Act, the rules and regulations promulgated thereunder, and
the requirements of any Stock Exchange.

     

    17.  Reservation of
Shares.    The Company, during the term of this Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan. The inability of the Company
to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

     

    18.  Agreements.  Awards
shall be evidenced by written agreements in such form as the Administrator shall
approve from time to time.

     

    19.   Governing
Law.  The Plan and all determinations made and actions taken
pursuant hereto shall be governed by the laws of the State of Nevada, without
giving effect to the conflict of laws principles thereof. Each party
submits to the exclusive jurisdiction and venue of any California State or
Federal court with respect to any controversy or claim arising out of, related
to, or connected with this Plan, its enforcement or interpretation or the Awards
issued hereunder.Asset Purchase Agreement

 Exhibit 10.1 
 ASSET PURCHASE AGREEMENT 
 by and between 
 PFF BANCORP, INC. 
 and 
 CALIFORNIA FINANCIAL PARTNERS, INC. 
 December 3, 2008 

 ASSET PURCHASE AGREEMENT 
 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
			
	 ARTICLE 1
	  	DEFINITIONS	  	2
			
	 ARTICLE 2
	  	PURCHASE AND SALE OF ASSETS	  	8
			
	 2.1
	  	Sale and Purchase of Assets	  	8
			
	 2.2
	  	Excluded Assets	  	9
			
	 2.3
	  	Assumption of Liabilities	  	9
			
	 2.4
	  	Excluded Liabilities	  	9
			
	 2.5
	  	Cure Costs	  	9
			
	 2.6
	  	“As Is” Transaction	  	9
			
	 2.7
	  	Consideration	  	10
			
	 2.8
	  	Payment of Purchase Price	  	10
			
	 ARTICLE 3
	  	REPRESENTATIONS AND WARRANTIES OF SELLER	  	10
			
	 3.1
	  	Organization and Good Standing	  	10
			
	 3.2
	  	No Conflicts	  	10
			
	 3.3
	  	Execution and Delivery	  	11
			
	 3.4
	  	Judgments; Litigation	  	11
			
	 3.5
	  	Title to Assets	  	11
			
	 3.6
	  	Compliance with Law	  	11
			
	 3.7
	  	Material Contracts	  	11
			
	 ARTICLE 4
	  	REPRESENTATIONS AND WARRANTIES OF PURCHASER	  	11
			
	 4.1
	  	Organization and Good Standing	  	11
			
	 4.2
	  	Execution and Delivery	  	12
			
	 4.3
	  	No Conflicts	  	12
			
	 4.4
	  	Financing	  	12
			
	 4.5
	  	Adequate Assurance of Assigned Contracts	  	12
			
	 4.6
	  	Investigation	  	12
			
	ARTICLE 5	  		  	13
			
	 5.1
	  	Conduct of Business of Seller	  	13
			
	 5.2
	  	Access to Information	  	14

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
			
	 5.3  
	  	Assignability of Certain Contracts, Etc	  	16
			
	 5.4  
	  	Consents Related to Advisory Contracts	  	16
			
	 5.5  
	  	Rejected Contracts	  	17
			
	 5.6  
	  	Further Agreements	  	17
			
	 5.7  
	  	Further Assurances	  	17
			
	 5.8  
	  	Preservation of Records	  	19
			
	 5.9  
	  	Publicity	  	19
			
	 5.10
	  	Notification of Certain Matters	  	20
			
	 5.11
	  	Amendment	  	20
			
	 5.12
	  	Waiver	  	20
			
	 ARTICLE 6
	  	CONDITIONS TO CLOSING	  	20
			
	 6.1  
	  	Conditions Precedent to the Obligations of the Purchaser and Seller	  	20
			
	 6.2  
	  	Conditions Precedent to the Obligations of Seller	  	21
			
	 6.3  
	  	Conditions Precedent to the Obligations of the Purchaser	  	22
			
	 6.4  
	  	Frustration of Closing Conditions	  	23
			
	 6.5  
	  	Survival of Representations and Warranties	  	23
			
	 6.6  
	  	Indemnification and Payment of Damages By Purchaser	  	23
			
	 ARTICLE 7
	  	CLOSING AND TERMINATION	  	24
			
	 7.1  
	  	Closing	  	24
			
	 7.2  
	  	Closing Deliveries by Seller	  	24
			
	 7.3  
	  	Closing Deliveries by the Purchaser	  	25
			
	 7.4  
	  	Termination of Agreement	  	25
			
	 7.5  
	  	Procedure Upon Termination	  	27
			
	 7.6  
	  	Effect of Termination	  	27
			
	 ARTICLE 8
	  	BANKRUPTCY COURT MATTERS	  	27
			
	 8.1  
	  	Competing Bid and Other Matters	  	27
			
	 8.2  
	  	Sale Order	  	28
			
	 ARTICLE 9
	  	GENERAL PROVISIONS	  	29
			
	 9.1  
	  	Notices	  	29

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
			
	              9.2  
	  	Severability	  	30
			
	 9.3  
	  	Entire Agreement	  	30
			
	 9.4  
	  	Successors and Assigns	  	30
			
	 9.5  
	  	Counterparts	  	31
			
	 9.6  
	  	Recitals, Schedules and Annexes	  	31
			
	 9.7  
	  	Construction	  	31
			
	 9.8  
	  	Governing Law	  	32
			
	 9.9  
	  	Jurisdiction, Waiver of Jury Trial	  	32
			
	 9.10
	  	Injunctive Relief	  	33
			
	 9.11
	  	Expenses	  	33
			
	 9.12
	  	Non Recourse	  	33
			
	 9.13
	  	Time of the Essence	  	33

  

 -iii- 

 ASSET PURCHASE AGREEMENT 
 THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is entered into as of December 3, 2008 between California Financial Partners,
Inc., a California corporation (“Purchaser”), and PFF Bancorp, Inc., a Delaware corporation (“Seller”). 
 R E C I T A L S 
 A. WHEREAS, Seller owns and desires to sell to Purchaser, and Purchaser desires to purchase from Seller,
certain assets of the Seller (the “Purchased Assets”). 
 B. WHEREAS, Seller shall be a debtor and debtor in possession in
that certain bankruptcy case (the “Chapter 11 Case”) under chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101 et eq. (the “Bankruptcy Code”) filed in the United States Bankruptcy Court for
the District of Delaware (the “Bankruptcy Court”). 
 C. WHEREAS, in connection with the Chapter 11 Case and subject to the
terms and conditions contained herein and following the entry of the Sale Order (as defined herein) finding the Purchaser as the winning bidder and subject to the terms and conditions thereof, Seller shall sell, transfer and assign to the Purchaser,
and the Purchaser shall purchase and acquire from Seller, pursuant to Sections 105, 363 and 365 of the Bankruptcy Code, the Purchased Assets, and assume from Seller the Assumed Liabilities (as defined herein), all as more specifically provided
herein and in the Sale Order. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the premises and the respective representations, warranties, covenants, agreements and conditions hereinafter set forth, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

 ARTICLE 1 
 DEFINITIONS 
 “Action” shall mean any actual or threatened claim, action, suit,
arbitration, hearing, inquiry, proceeding, complaint, charge or investigation by or before any Governmental Entity or arbitrator and any appeal from any of the foregoing. 
 “Advisers Act” shall mean the Investment Advisers Act of 1940, as amended. 
 “Advisory Contract” shall have the meaning set forth in Section 5.4. 
 “Affiliate” of
any Person shall mean any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with the former Person, where “control” means the power, directly or indirectly, to direct or cause the
direction of the management and policies of another Person, whether through the ownership of voting securities, by contract or otherwise. 
 “Agreement” shall have the meaning set forth in the Introduction. 
 “Alternative Transaction”
shall have the meaning set forth in Section 8.1. 
 “Assets” shall have the meaning set forth in
Section 2.1. 
 “Assigned Contracts” shall have the meaning set forth in Section 6.2(b). 

“Assumed Liabilities” shall have the meaning set forth in Section 2.3. 
 “Assumed Permit” shall have the meaning set forth in Section 5.3. 
 “Auction” shall have the meaning set forth in the Bidding Procedures Order. 
 “Back-up Bidder” shall have the meaning set forth in Section 8.1. 
 “Bankruptcy Code” shall have the meaning set forth in the Recitals. 
 “Bankruptcy Court” shall have the meaning set forth in the Recitals. 
 “Bankruptcy Exceptions” shall have the meaning set forth in Section 3.7. 
 “Bid Procedures Motion” shall have the meaning set forth in Section 8.1. 
 “Bidding Procedures Order” shall have the meaning set forth in Section 6.1(b). 
  

 -2- 

 “Business” shall mean any and all business activities of any kind that are conducted by
Seller. 
 “Business Day” shall mean any day other than a Saturday, Sunday or other day on which commercial banks in New
York City, New York are authorized or required by Law to be closed. 
 “Chapter 11 Case” shall have the meaning set forth in
the Recitals. 
 “Client” shall have the meaning set forth in Section 5.4. 
 “Client Consent” shall have the meaning set forth in Section 5.4. 
 “Client Notice” shall have the meaning set forth in Section 5.4. 
 “Closing” and “Closing Date” have the respective meanings assigned to such terms in Section 7.1.

 “Competing Bid” shall have the meaning set forth in Section 8.1. 
 “Confidential Information” shall have the meaning set forth in Section 5.2. 
 “Contract” shall mean any written or oral contract, purchase order, service order, sales order, indenture, note, bond, lease, license,
commitment or instrument or other agreement, arrangement or commitment that is binding upon a Person or its property. 
 “Cure
Costs” shall have the meaning set forth in the Bidding Procedures Order. 
 “Damages” shall have the meaning set
forth in Section 6.6. 
 “Documents” shall mean all of Seller’s written files, documents, instruments,
papers, books, reports, records, tapes, microfilms, photographs, letters, budgets, forecasts, plans, operating records, safety and environmental reports, data, studies and documents, Tax Returns, ledgers, journals, title policies, customer lists,
regulatory filings, operating data and plans, research material, technical documentation (design specifications, engineering information , test results, maintenance schedules, functional requirements, operating instructions, logic manuals,
processes, flow charts, etc.), user documentation (installation guides, user manuals, training materials, release notes, working papers, etc.), marketing documentation (sales brochures, flyers, pamphlets, web pages, etc.), and other similar
materials, in each case whether or not in electronic form. 
 “Employee” shall mean an individual who, as of the applicable
date, is employed by Seller in connection with the Business. 
  

 -3- 

 “Encumbrance” shall mean any lien, encumbrance, claim (as defined in Section 101(5)
of the Bankruptcy Code), right, demand, charge, mortgage, deed of trust, option, pledge, security interest or similar interest, title defects, hypothecations, easements, rights of way, restrictive covenants, encroachments, rights of first refusal,
preemptive rights, judgments, conditional sale or other title retention agreements and other impositions, imperfections or defects of title or restrictions on transfer or use of any nature whatsoever. 
 “Excluded Assets” shall have the meaning set forth in Section 2.2. 
 “Excluded Liabilities” shall have the meaning set forth in Section 2.4. 
 “Execution Date” shall have the meaning set forth in Section 5.1(a). 
 “Final Order” shall have the meaning set forth in the Bidding Procedures Order. 
 “Governmental Body” shall mean any government, quasi governmental entity, or other governmental or regulatory body, agency or political
subdivision thereof of any nature, whether foreign, federal, state or local, or any agency, branch, department, official, entity, instrumentality or authority thereof, or any court or arbitrator (public or private) of applicable jurisdiction.

 “Governmental Entity” shall mean any local, state, federal or foreign (i) court, (ii) government or
(iii) governmental department, commission, instrumentality, board, agency or authority, including the Internal Revenue Service and other taxing authorities. 
 “Income Tax” shall mean all Taxes based upon, measured by, or calculated with respect to gross or net income or gross or net receipts or profits, including any interest, penalty or addition thereto.

 “Intellectual Property” shall mean all intellectual property and proprietary rights of any kind, including the following:
(i) trademarks, service marks, trade names, slogans, logos, trade dress, internet domain names, uniform resource identifiers, rights in design, brand names, and other similar designations of source or origin, together with all goodwill,
registrations and applications related to the foregoing; (ii) patents, utility models and industrial design registrations (and all continuations, divisionals, continuations in part, provisionals, renewals, reissues, re-examinations and
applications for any of the foregoing); (iii)copyrights and copyrightable subject matter (including without limitation any registration and applications for any of the foregoing); (iv) trade secrets and other confidential or proprietary
business information (including manufacturing and production processes and techniques, research and development information, technology, drawings, specifications, designs, plans, proposals, technical data, financial, marketing and business data,
pricing and cost information, business and 

  

 -4- 

 
marketing plans, customer and supplier lists and information), know how, proprietary processes, formulae, algorithms, models, and methodologies;
(v) computer software, computer programs, and databases (whether in source code, object code or other form); and (vi) all rights to sue for past, present and future infringement, misappropriation, dilution or other violation of any of the
foregoing and all remedies at law or equity associated therewith. 
 “Knowledge” shall mean actual knowledge without
investigation. 
 “Laws” shall mean all federal, state, local or foreign laws, statutes, common laws, rules, codes,
regulations, restrictions, ordinances, orders, decrees, approvals, directives, judgments, rulings, injunctions, writs and awards of, or issued, promulgated, enforced or entered by, any and all Governmental Bodies, or court of competent jurisdiction,
or other requirement or rule of law. 
 “Leased Real Property” means all of the real property leased, subleased, licensed,
used or occupied by Seller, together with all buildings, structures, fixtures and improvements erected thereon, and any and all rights, privileges, easements, licenses, hereditaments and other appurtenances relating thereto, and used, or held for
use, in connection with the operation of the Business. 
 “Legal Requirement” shall mean any statute, law, ordinance, rule,
regulation, permit, order, writ, judgment, injunction, decree or award issued, enacted or promulgated by any Governmental Entity or any arbitrator. 
 “Liability” means any debt, liability, commitment or obligation of any kind, whether fixed, contingent or absolute, matured or unmatured, liquidated or unliquidated, accrued or not accrued, asserted or not asserted, known
or unknown, determined, determinable or otherwise, whenever or however arising (including, whether arising out of any contract or tort based on negligence or strict liability). 
 “Lien” shall mean all liens (including judgment and mechanics’ liens, regardless of whether liquidated), mortgages, assessments,
security interests, easements, claims, pledges, trusts (constructive or other), deeds of trust, options or other charges, encumbrances or restrictions. 
 “Material Adverse Effect” shall mean any event, change, occurrence, fact, condition or effect that has or would reasonably be expected to have, either indirectly or in the aggregate with any other
event, change, occurrence, fact, condition or effect, a materially adverse effect on the business, financial condition, capitalization, operations or financial performance of the Seller; provided, however, that in no event shall any of the
following, alone or in combination, be deemed to constitute a Material Adverse Effect: any material adverse change, event, circumstance or development with respect to, or effect resulting from: 
  

 -5- 

 (i) changes after the Closing Date in the U.S. or global economy or capital markets in general;

 (ii) changes after the Closing Date that affect generally the industries in which the Seller operates; 
 (iii) changes after the Closing Date in applicable law or in GAAP; 
 (iv) the announcement of this Agreement and the transactions contemplated hereby, including, but not limited to, any decline in customer business, or any resignation of any employees; 
 (v) failure(s) by the Seller to meet internal operating projections or forecasts, or published revenue or earnings or predictions; 
 (vi) any act or threat of terrorism or war, any armed hostilities or terrorist activities, any threat or escalation of armed hostilities or terrorist
activities or any governmental or other response or reaction to any of the foregoing or any natural disasters or any national or international calamity affecting the United States or other geographical region in which the Seller does business; or

 (vii) any action taken that is required by this Agreement or at the written request of the Purchaser. 
 “Material Contract” shall have the meaning set forth in Section 3.7. 
 “Monthly Payment” shall have the meaning set forth in Section 2.7. 
 “Ordinary Course of Business” shall mean the ordinary and usual course of normal day to day operations of the Business consistent with
past practice. 
 “Outside Back-up Date” shall have the meaning set forth in Section 8.1. 
 “Party” shall mean the Seller and/or the Purchaser. 
 “Permits” shall mean all notifications, licenses, permits (including environmental, construction and operation permits), franchises, certificates, approvals, consents, waivers, clearances, exemptions,
classifications, registrations, variances, orders, tariffs, rate schedules and other similar documents and authorizations issued by any Governmental Body to Seller and used, or held for use, in connection with the operation of the Business or
applicable to ownership of the Purchased Assets or assumption of the Assumed Liabilities. 
 “Permitted Assign” shall have
the meaning set forth in Section 9.4. 
  

 -6- 

 “Permitted Encumbrances” shall mean (i) Encumbrances for utilities and current
Taxes not yet due and payable or being contested in good faith; (ii) easements, rights of way, restrictive covenants, encroachments and similar non-monetary encumbrances or non-monetary impediments against any of the Purchased Assets which do
not, individually or in the aggregate, adversely affect the operation of the Business and, in the case of the Assumed Leased Real Property, which do not, individually or in the aggregate, adversely affect the use of occupancy of such Assumed Leased
Real Property as it relates to the operation of the Business or materially detract from the value of the Assumed Leased Real Property, (iii) applicable zoning Laws, building codes, land use restrictions and other similar restrictions imposed by
Law, (iv) materialmans’, mechanics’, artisans’, shippers’, warehousemens’ or other similar common law or statutory liens incurred in the Ordinary Course of Business and (v) such other Encumbrances or title
exceptions as the Purchaser may approve in writing in its sole discretion or which do not, individually or in the aggregate, adversely affect the operation of the Business. 
 “Person” shall mean all natural persons, corporations, business trusts, associations, companies, partnerships, joint ventures,
Governmental Entities and any other entities. 
 “Prevailing Bidder” shall have the meaning set forth in
Section 8.1. 
 “Purchase Price” shall have the meaning set forth in Section 2.7. 
 “Purchased Assets” shall have the meaning set forth in Section 2.1. 
 “Purchaser” shall have the meaning set forth in the Introduction. 
 “Purchaser’s Documents” shall have the meaning set forth in Section 9.12. 
 “Regulatory Approvals” shall mean any consents, waivers, approvals, orders, Permits or authorizations of any Governmental Body required
in connection with the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereunder. 
 “Representatives” shall have the meaning set forth in Section 5.2(a). 
 “Sale
Hearing” shall have the meaning set forth in the Bidding Procedures Order. 
 “Sale Motion” shall mean the motion
or motions of Seller, in form and substance reasonably acceptable to Seller and Purchaser, seeking approval and entry of the Sale Order. 
 “Sale Order” shall have the meaning set forth in Section 8.2. 
  

 -7- 

 “Seller” shall have the meaning set forth in the Introduction. 
 “Seller Disclosure Schedule” shall have the meaning set forth in Section 5.2(d). 
 “Seller’s Documents” shall have the meaning set forth in Section 9.12. 
 “Tax” and “Taxes” shall mean any and all taxes, charges, fees, tariffs, duties, impositions, levies or other
assessments, imposed by any Governmental Body, and include any interest, penalties or additional amounts attributable to, or imposed upon, or with respect to, Taxes and include any Liability for the Taxes of any other Person as a transferee or
successor, by law, contract or otherwise. 
 “Tax Liability” shall have the meaning set forth in
Section 5.1(b)(v). 
 “Tax Return” shall mean any return, report, information return, declaration, claim for
refund or other document (including any schedule or related or supporting information) supplied or required to be supplied to any Governmental Body with respect to Taxes, including amendments thereto. 
 “Treasury Regulations” shall have the meaning set forth in Section 7.2(d). 
 ARTICLE 2 
 PURCHASE AND SALE OF ASSETS 

 2.1 Sale and Purchase of Assets. Upon the terms and subject to the conditions contained herein, on the Closing Date, the Sellers
agree to sell or cause to be sold to the Purchaser, and the Purchaser agrees to purchase the assets (the “Assets”). Pursuant to Sections 105, 363 and 365 of the Bankruptcy Code and on the terms and subject to the conditions set
forth in this Agreement and the Sale Order, the Purchaser shall purchase, acquire and accept from the Seller, and Seller shall sell, transfer, assign, convey and deliver to the Purchaser, on the Closing Date all of the Seller’s right, title and
interest in, to and under, free and clear of all Encumbrances (other than Encumbrances included in the Assumed Liabilities and Permitted Encumbrances), the assets, properties and rights of any nature, tangible and intangible, real or personal,
wherever located, of the Seller with respect to those assets as set forth in Schedule 2.1, but in all cases excluding the Excluded Assets (collectively, the “Purchased Assets”). 
 2.2 Excluded Assets. Notwithstanding anything to the contrary contained herein, the Purchaser shall not include any and all of Seller’s
right, title and interest in the following (collectively, the “Excluded Assets”): (a) all assets of Seller other than the Purchased Assets; (b) Seller’s books and records; (c) any and all claims, deposits,
prepayments, refunds, rebates, causes of action, rights of recovery, rights of set- 

  

 -8- 

 
off and rights of recoupment relating to (i) any assets other than Purchased Assets; (ii) any claims and causes of action under Section 544
through 550 of the Bankruptcy Code; (iii) any other claims or causes of action under any other provision of the Bankruptcy Code and applicable law except any claims or causes of action relating to Purchased Assets, and (iv) those assets as
may be listed from time to time on Schedule 2.2. 
 2.3 Assumption of Liabilities. On the terms and subject to the conditions
set forth in this Agreement and the Sale Order, the Purchaser shall assume all of the following Liabilities of the Seller after the Closing Date, but in all cases excluding the Excluded Liabilities (collectively, the “Assumed
Liabilities”): 
 (a) any and all Liabilities of the Seller under each Assigned Contract arising after the Closing Date, provided
that each Assigned Contract must be assumed and assigned in accordance with the procedures set forth in the Sale Order; 
 (b) any and all
Liabilities for Taxes (other than Income Taxes) accruing after the Closing Date attributable to the Purchased Assets, including, without limitation, Liabilities for Taxes attributable to the ownership of the Purchased Assets from and after the
Closing Date. 
 2.4 Excluded Liabilities. The Purchaser shall not assume, and shall not be deemed to have assumed, any liabilities
other than those set forth in Section 2.3 (collectively, the “Excluded Liabilities”). 
 2.5 Cure Costs.
Any Cure Costs due with respect to Assigned Contracts shall be paid by Purchaser to the non-debtor counter-parties to such Assigned Contracts and such payment shall be a condition precedent to (i) the assumption by Seller of such Assigned
Contracts; and (ii) the assumption and assignment of the Assigned Contracts to Purchaser. 
 2.6 “As Is” Transaction.
PURCHASER HEREBY ACKNOWLEDGES AND AGREES THAT, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ARTICLE 3 OF THIS AGREEMENT, THE SELLER MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO ANY MATTER RELATING TO THE
PURCHASED ASSETS. WITHOUT IN ANY WAY LIMITING THE FOREGOING, SELLER HEREBY DISCLAIMS ANY WARRANTY, EXPRESS OR IMPLIED, OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE AS TO ANY PORTION OF THE PURCHASED ASSETS. PURCHASER FURTHER ACKNOWLEDGES
THAT PURCHASER HAS CONDUCTED AN INDEPENDENT INSPECTION AND INVESTIGATION OF THE PURCHASED ASSETS AS DESCRIBED IN SECTION 4.6 OF THIS AGREEMENT. ACCORDINGLY, PURCHASER WILL ACCEPT THE PURCHASED ASSETS AT THE CLOSING “AS IS,”
“WHERE IS,” AND “WITH ALL FAULTS.” 
  

 -9- 

 2.7 Consideration. The aggregate consideration to be paid for the Assets (the “Purchase
Price”) shall be: 
 (a) 35% of the gross sale commissions earned from the Assets for a period of forty eight (48) months (the
“Monthly Payment”); and 
 (b) the assumption by the Purchaser of the Assumed Liabilities. 
 2.8 Payment of Purchase Price. On the tenth (10th) day of each month following the Closing Date, the Purchaser shall pay the Monthly Payment
to the Seller by wire transfer of immediately available United States funds into an account to be designated by the Seller or its designee. 
 ARTICLE 3 
 REPRESENTATIONS AND WARRANTIES 
 OF SELLER 
 Seller hereby represents and warrants to, and covenants and agrees with, Purchaser that:

 3.1 Organization and Good Standing. Seller has been duly organized and is existing as a corporation in good standing under the laws
of the State of Delaware with full power and authority (corporate and other) to own and lease its properties and to conduct its business as currently conducted. 
 3.2 No Conflicts. To Seller’s Knowledge, the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby will not (a) conflict with or result in
a breach or violation of any term or provision of, or constitute a default under (with or without notice or passage of time, or both), or otherwise give any Person a basis for accelerated or increased rights or termination or nonperformance under,
any indenture, mortgage, deed of trust, loan or credit agreement, lease, license or other agreement or instrument to which Seller is a party or by which the Seller is bound or affected or to which any of the Assets is bound or affected,
(b) result in the violation of the provisions of the Articles of Incorporation or Bylaws of Seller or any Legal Requirement applicable to or binding upon it, (c) result in the creation or imposition of any Lien upon any of the Assets or
(d) otherwise adversely affect the contractual or other legal rights or privileges of Seller. 
 3.3 Execution and Delivery. To
Seller’s Knowledge, except as set forth in Schedule 3.3, all consents, approvals, authorizations and orders necessary for the execution, delivery and performance by Seller of this Agreement (including, without limitation, the transfer
and sale of the Assets to be sold by Seller to Purchaser) have been duly and lawfully obtained, and Seller has, and at the Closing will have, full right, power, 

  

 -10- 

 
authority and capacity to execute, deliver and perform this Agreement. This Agreement has been duly executed and delivered by Seller and constitutes a legal,
valid and binding agreement of Seller enforceable against Seller in accordance with its terms. 
 3.4 Judgments; Litigation. To
Seller’s Knowledge, except as set forth in Schedule 3.4, there is no (i) outstanding judgment, order, decree, award, stipulation or injunction of any Governmental Entity or arbitrator against or affecting the Assets or Liabilities
or (ii) Action pending against or affecting the Assets or Liabilities. 
 3.5 Title to Assets. To Seller’s Knowledge, Seller
has good and marketable title to the Assets free and clear of all Liens. 
 3.6 Compliance with Law. To Seller’s Knowledge,
through and including the date hereof, Seller (i) has not violated or conducted its business or operations in violation of, and has not used or occupied its properties or assets in violation of, any Legal Requirement, (ii) has not been
alleged to be in violation of any Legal Requirement, and (iii) has not received any notice of any alleged violation of, or any citation for noncompliance with, any Legal Requirement. 
 3.7 Material Contracts. Assuming (x) the entry of the Sale Order and (y) due execution by the other party or parties thereto, as of the
Closing Date, each material contract (“Material Contract”) will be in full force and effect and, subject to the bankruptcy exceptions (the “Bankruptcy Exceptions”), enforceable in accordance with its terms against
Seller and any other party thereto. 
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES OF PURCHASER 
 Purchaser hereby represents and warrants to, and
covenants and agrees with, Seller that: 
 4.1 Organization and Good Standing. Purchaser has been duly organized and is existing as a
corporation in good standing under the laws of the State of California with full corporate power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. 
 4.2 Execution and Delivery. This Agreement has been duly authorized by all necessary corporate action on the part of Purchaser, has been duly
executed and delivered by Purchaser and constitutes the legal, valid and binding agreement of Purchaser enforceable against Purchaser in accordance with its terms. 
 4.3 No Conflicts. The execution, delivery and performance of this Agreement by Purchaser and the consummation by Purchaser of the transactions 

  

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contemplated hereby will not conflict with or result in the violation of the provisions of the Articles of Incorporation or Bylaws of Purchaser. 

4.4 Financing. Purchaser (i) has, and at the Closing will have, sufficient internal funds available to pay any expenses incurred by the
Purchaser in connection with the transactions contemplated by this Agreement, (ii) has, and at the Closing will have, the resources and capabilities (financial and otherwise) to perform its obligations hereunder and to assume the Liabilities
(other than the Excluded Liabilities), and (iii) has not incurred any obligation, commitment, restriction or liability of any kind, which would impair or adversely affect such resources and capabilities. 
 4.5 Adequate Assurance of Assigned Contracts. As of the Closing, Purchaser will satisfy the conditions contained in Sections 365(b)
(1) (C) and 365(f) of the Bankruptcy Code with respect to the Assigned Contracts and Assumed Liabilities, as applicable. 
 4.6
Investigation. Purchaser has conducted its own independent review and analysis of the Business, the Purchased Assets and the Assumed Liabilities, of the value of such Purchased Assets and of the business, operations, technology, assets,
Liabilities, financial condition and prospects of the Business, and Purchaser acknowledges that Seller has provided Purchaser with access to the personnel, properties, premises and records of the Business for this purpose. Purchaser has conducted
its own independent review of all orders of, and all motions, pleadings, and other submissions to, the Bankruptcy Court in connection with the Chapter 11 Case. Purchaser acknowledges that the price being paid under this Agreement for the Purchased
Assets is the fair value for acquiring the Purchased Assets under the circumstances and that such value, rather than replacement cost, is the appropriate measure of damages if and to the extent Purchaser may have any recourse for any failure of
Seller to deliver the Purchased Assets in accordance with the terms of this Agreement. In entering into this Agreement, Purchaser has relied upon its own investigation and analysis as well as the representations and warranties made by Seller in
Article 3, and Purchaser acknowledges that Seller makes or has made any representation or warranty, either express or implied, as to the accuracy or completeness of any of the information provided or made available to Purchaser or any of its
Affiliates, except as and only to the extent expressly set forth in Article 3. 
 ARTICLE 5 
 COVENANTS AND AGREEMENTS 
 5.1 Conduct of
Business of Seller. 
  

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 (a) During the period from the execution date (the “Execution Date”) and continuing
until the earlier of the termination of this Agreement in accordance with Section 7.4 or the Closing, except (1) for any limitations on operations imposed by the Bankruptcy Court or the Bankruptcy Code, (2) as required by
applicable Law, (3) as otherwise expressly contemplated by this Agreement or (4) with the prior written consent of the Purchaser (such consent not to be unreasonably withheld, conditioned or delayed), the Seller shall: 
 (i) conduct the Business and operate and maintain the Purchased Assets in the Ordinary Course of Business, including maintaining accounting methods;

 (ii) use its commercially reasonable good faith efforts to (x) preserve the goodwill of and relationships with Governmental Bodies,
customers, Clients, suppliers, vendors, lessors, licensors, licensees, contractors, distributors, agents, Employees and others having business dealings with the Business; and (y) comply with all applicable Laws and, to the extent consistent
therewith, preserve their assets (tangible and intangible). 
 (b) During the period from the Execution Date and continuing until the earlier
of the termination of this Agreement in accordance with Section 7.4 or the Closing, except (1) for any limitations on operations imposed by, or actions required by, the Bankruptcy Court or the Bankruptcy Code, (2) as required
by applicable Law, (3) as otherwise expressly contemplated by this Agreement or (4) with the prior written consent of the Purchaser (such consent not to be unreasonably withheld, conditioned or delayed and, in the event that Seller
requests Purchaser’s consent in writing and Purchaser does not provide a response within five (5) Business Days after such request, Purchaser shall be deemed to have provided their prior written consent to such request), the Seller shall
not: 
 (i) mortgage, pledge or subject to any Encumbrance (other than a Permitted Encumbrance) the Business or any of the Purchased Assets;

 (ii) cancel or compromise any debt or material claim or waive or release any material right of the Seller that constitutes a Purchased
Asset or otherwise relates to the Business; 
 (iii) except with the prior written consent of Purchaser, such consent not to be unreasonably
withheld: (A) enter into any new Contract or renew any existing Contract requiring payments by or to Seller in excess of $20,000.00 over the thirty day period immediately following the execution thereof and (B) cancel, terminate, amend,
modify, supplement or rescind any Material Contract or any terms of any Material Contract, except for the purpose of effecting any changes in applicable Law or implementing regulatory requirements or in response to a breach or default by the other
party thereto; 
  

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 (iv) abandon any rights under any Material Contract or breach any Material Contracts; or 
 (v) make or rescind any material Tax election or take any material Tax position (unless required by Law) or file any amended Tax Return or change its
fiscal year or financial or Tax accounting methods, policies or practices, or settle any tax liability (“Tax Liability”), except in each case as would not reasonably be expected to result in Liability to the Purchaser or the
Business. 
 5.2 Access to Information. 
 (a) Seller agrees that, between the Execution Date and the earlier of the Closing Date and the date on which this Agreement is terminated in accordance with Section 7.4, the Purchaser shall be entitled,
through its officers, employees, counsel, accountants and other authorized representatives, agents and contractors (“Representatives”), to have such reasonable access to and make such reasonable investigation and examination of the
books and records, properties, businesses, assets, Employees, accountants, auditors, counsel and operations of Seller as the Purchaser’s Representatives may reasonably request. Any such investigations and examinations shall be conducted during
regular business hours upon reasonable advance notice and under reasonable circumstances, including Seller’s right to have its Representative accompany the Purchaser upon the Leased Real Property at the time of any inspection or examination and
shall be subject to restrictions under applicable Law. Pursuant to this Section 5.2, Seller shall furnish to the Purchaser and their Representatives such financial, operating and property related data and other information as such
Persons reasonably request. Seller shall use commercially reasonable efforts to cause its Representatives to reasonably cooperate with the Purchaser and the Purchaser’s Representatives in connection with such investigations and examinations,
and the Purchaser shall, and use their commercially reasonably efforts to cause their Representatives to, reasonably cooperate with Seller and its Representatives and shall use their reasonable efforts to minimize any disruption to the Business.

 (b) From and after the Closing Date, Seller shall give the Purchaser and the Purchaser’s Representatives reasonable access during
normal business hours to the offices, facilities, plants, properties, assets, Employees, Documents (including, without limitation, any Documents included in the Excluded Assets), personnel files and books and records of Seller pertaining to the
Business. In connection with the foregoing, Seller shall use commercially reasonable efforts to cause its Representatives to furnish to the Purchaser such financial, technical, operating and other information pertaining to the Business as the
Purchaser’s Representatives shall from time to time reasonably request and to discuss such information with such Representatives. Without limiting the generality of the foregoing, Seller shall cooperate with the Purchaser as may reasonably be
requested by the Purchaser for purposes of (i) enabling an independent accounting firm selected by the Purchaser to conduct an audit of the 

  

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Business; (ii) undertaking, with the consent of the Seller, which consent shall not be unreasonably withheld or delayed, any study of the condition or
value of the Purchased Assets; and (iii) undertaking any study relating to Seller’s compliance with Laws; and Seller acknowledges that information or access may be requested and used for such purpose. 
 (c) From and after the Closing Date, the Purchaser shall give Seller and Seller’s Representatives reasonable access during normal business hours to
the offices, facilities, plants, properties, assets, Employees, Documents (including, without limitation, any Documents included in the Purchased Assets), personnel files and books and records of the Purchaser pertaining to (i) the conduct of
the Business or ownership of the Purchased Assets prior to the Closing Date or (ii) the Excluded Assets and Liabilities. In connection with the foregoing, the Purchaser shall use commercially reasonable efforts to cause their Representatives to
furnish to Seller such financial, technical, operating and other information pertaining to (i) the conduct of the Business or ownership of the Purchased Assets prior to the Closing Date or (ii) the Excluded Assets and Liabilities, in each
case, as Seller’s Representatives shall from time to time reasonably request and to discuss such information with such Representatives. Without limiting the generality of the foregoing, the Purchaser shall, and shall use commercially reasonable
efforts to cause each of their Affiliates to, cooperate with Seller as may reasonably be requested by Seller for purposes of enabling an independent accounting firm selected by Seller to conduct an audit of the Business for periods prior to the
Closing Date, including access to Purchaser’s independent auditors’ working papers pertaining to the Business or the Purchased Assets. 
 (d) No information received pursuant to an investigation made under this Section 5.2 shall be deemed to (i) qualify, modify, amend or otherwise affect any representations, warranties, covenants or other agreements of Seller
set forth in this Agreement or any certificate or other instrument delivered to the Purchaser in connection with the transactions contemplated hereby, (ii) amend or otherwise supplement the information set forth in the schedules attached
hereto, (iii) limit or restrict the remedies available to the parties under applicable Law arising out of a breach of this Agreement or otherwise available at Law or in equity, or (iv) limit or restrict the ability of either party to
invoke or rely on the conditions to the obligations of the parties to consummate the transactions contemplated by this Agreement. 
 (e) All
information provided to the Purchaser pursuant to this Section 5.2, shall be considered confidential (the “Confidential Information”) and the Purchaser agrees that the Confidential Information will be used solely for the
purpose of consummating this Agreement and that all of the Confidential Information will be kept confidential; provided that any such information may be disclosed only to the limited group of the Purchaser’s officers, directors, employees,
agents, and outside advisors, who are actually engaged in and need to know the Confidential Information for the purpose of consummating this Agreement, who have been informed of the confidential nature of the 

  

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Confidential Information, and who have been advised by and agree with Purchaser that such information is to be kept confidential and shall not be used for
any purpose other than consummating of this Agreement. 
 5.3 Assignability of Certain Contracts, Etc. To the extent that the
assignment to the Purchaser of any Assigned Contract or assumed permit (“Assumed Permit”) pursuant to this Agreement is not permitted without the consent of a third party and such restriction cannot be effectively overridden or
canceled by the Sale Order or other related order of the Bankruptcy Court, then this Agreement will not be deemed to constitute an assignment of or an undertaking or attempt to assign such Assigned Contract or Assumed Permit, as applicable, or any
right or interest therein unless and until such consent is obtained; provided, however, that the parties hereto will use their commercially reasonable efforts, before the Closing, to obtain all such consents; provided, further,
that if any such consents are not obtained prior to the Closing Date, Seller and the Purchaser will reasonably cooperate with each other in any lawful and feasible arrangement designed to provide the Purchaser (such arrangement to be at the sole
cost and expense of the Purchaser) with the benefits and obligations of any such Assigned Contract and the Purchaser shall be responsible for performing all obligations under such Assigned Contract required to be performed by Seller on or after the
Closing Date to the extent set forth in this Agreement. 
 5.4 Consents Related to Advisory Contracts. Prior to Closing, Seller and
Purchaser shall seek the consent of each investment advisory client (each, a “Client”) that is a party to an investment advisory agreement with Seller (each, an “Advisory Contract”) to the assignment of such
Client’s Advisory Contract to Purchaser in accordance with the following procedures: 
 (a) Promptly after the Sale Order has been
approved by the Bankruptcy Court, Seller shall send a notice (in a form mutually agreed by the parties) (the “Client Notice”) to each of its Clients (A) informing the Client of the transactions contemplated by this Agreement
and that the transactions contemplated by this Agreement would result in an “assignment” (within the meaning of the Advisers Act) of such Client’s Advisory Contract; (B) stating that the consent of such Client is required for the
continued performance of such Advisory Contract by Purchaser; and (C) requesting that each Client provide affirmative written consent to the assignment of such Client’s Advisory Contract or that such Client enter into a new investment
advisory contract with Purchaser on substantially the same terms as its existing Advisory Contract (each, a “Client Consent”); 
 (b) To the extent reasonably practical following the Client Notice, Seller and Purchaser shall make personnel available to respond to inquiries from Clients and shall cooperate and use commercially reasonable good faith efforts to obtain
the Client Consent of each Client to the assignment of such Client’s Advisory Contract, which may include communication via telephone and delivery of additional written 

  

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notices, as mutually agreed upon by the parties. Seller and Purchaser shall share equally the out-of-pocket costs and expenses incurred in obtaining Client
Consent; and 
 (c) Each communication and Client Consent contemplated by this Section 5.4 shall be in compliance with the
Advisers Act, and any rules, regulations or interpretations of the Securities and Exchange Commission thereunder. 
 5.5 Rejected
Contracts. Seller shall not reject any Assigned Contract in any bankruptcy proceeding following the date hereof without the prior written consent of the Purchaser. 
 5.6 Further Agreements. The Purchaser authorizes and empowers Seller from and after the Closing Date to receive and to open all mail received by Seller relating to the Purchased Assets, the Business or the
Assumed Liabilities and to deal with the contents of such communications in accordance with the provisions of this Section 5.6. Seller shall (i) promptly deliver to the Purchaser any mail or other communication received by it after
the Closing Date and relating to the Purchased Assets, the Business or the Assumed Liabilities, (ii) promptly transfer in immediately available funds to the Purchaser any cash, electronic credit or deposit received by such Seller but solely to
the extent that such cash, electronic credit or deposit are Purchased Assets and (iii) promptly forward to the Purchaser any checks or other instruments of payment that it receives but solely to the extent that such checks or other instruments
are Purchased Assets. The Purchaser shall (x) promptly deliver to Seller any mail or other communication received by it after the Closing Date and relating to the Excluded Assets or the Excluded Liabilities, (y) promptly wire transfer in
immediately available funds to Seller, any cash, electronic credit or deposit received by the Purchaser but solely to the extent that such cash, electronic credit or deposit are Excluded Assets and (z) promptly forward to Seller any checks or
other instruments of payment that it receives but solely to the extent that such checks or other instruments are Excluded Assets. From and after the Closing Date, Seller shall refer all inquiries with respect to the Business, the Purchased Assets
and the Assumed Liabilities to the Purchaser, and the Purchaser shall refer all inquiries with respect to the Excluded Assets and the Excluded Liabilities to Seller. In the event that action is taken by any third party with respect to the Purchased
Assets within six (6) months of the Closing Date, upon reasonable request by the Seller, the Purchaser shall take reasonable actions to resolve or otherwise address such action. 
 5.7 Further Assurances. 
 (a) Subject
to the terms and conditions of this Agreement and applicable Law, Seller and the Purchaser shall use their respective commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary,
proper or advisable to consummate and make effective the transactions contemplated by this Agreement as soon as practicable, and shall coordinate and cooperate with each other in exchanging information, keeping the other party reasonably informed
with respect to the status of the matters contemplated by this Section 5.7 

  

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and supplying such reasonable assistance as may be reasonably requested by the other party in connection with the matters contemplated by this
Section 5.7. Without limiting the foregoing, following the Execution Date and until the date on which this Agreement is terminated in accordance with Section 7.4, the parties shall use their commercially reasonable efforts to
take the following actions but solely to the extent that such actions relate to the transactions contemplated by this Agreement: 
 (i)
obtain any required consents, approvals (including Regulatory Approvals), waivers, Permits, authorizations, registrations, qualifications or other permissions or actions by, and give all necessary notices to, and make all filings with, and
applications and submissions to, any Governmental Body or third party and provide all such information concerning such party as may be necessary or reasonably requested in connection with the foregoing; 
 (ii) avoid the entry of, or have vacated or terminated, any injunction, decree, order, or judgment that would restrain, prevent, or delay the
consummation of the transactions contemplated hereby; 
 (iii) take any and all reasonably necessary steps to avoid or eliminate every
impediment under any applicable Law that is asserted by any Governmental Body with respect to the transactions contemplated hereby so as to enable the consummation of such transactions to occur as expeditiously as possible; and 
 (iv) execute, acknowledge and deliver all such further conveyances, notices, assumptions, releases and acquaintances and such other instruments, and
cooperate and take such further actions, as may be reasonably necessary or appropriate to transfer and assign fully to the Purchaser and their successors and assigns, all of the Purchased Assets, and for the Purchaser and their successors and
assigns, to assume the Assumed Liabilities, and to otherwise make effective the transactions contemplated hereby and thereby. 
 Subject to
the terms and conditions of this Agreement, the parties shall not take any action or refrain from taking any action the effect of which would be to delay or impede the ability of Seller and the Purchaser to consummate the transactions contemplated
by this Agreement, unless in such party’s reasonable judgment, taking such action or refraining from taking such action is consistent with achieving the ultimate objective or consummating the transactions contemplated hereby or is required by
applicable Law. 
 (b) Following the Execution Date and until the earlier of the Closing Date and the date on which this Agreement is
terminated in accordance with Section 7.4, Seller, on the one hand, and the Purchaser, on the other hand, shall keep each other reasonably informed as to the status of matters relating to the completion of the transactions contemplated
hereby, including promptly furnishing the other with copies of notices or other communications received by Seller or the Purchaser or by any of their 

  

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respective Affiliates (as the case may be), from any third party and/or any Governmental Body with respect to the transactions contemplated by this
Agreement. 
 (c) The obligations of Seller pursuant to this Section 5.7 shall be subject to any orders entered, or approvals or
authorizations granted or required, by or under the Bankruptcy Court or the Bankruptcy Code (including in connection with the Chapter 11 Case), and Seller’s obligations as a debtor in possession to comply with any order of the Bankruptcy Court
(including the Bidding Procedures Order and the Sale Order) and Seller’s duty to seek and obtain the highest or otherwise best price for the Business as required by the Bankruptcy Code. Following the Closing, Purchaser shall provide to Seller
such further assistance as reasonably requested with respect to completion of all returns, filings and documentation and actions necessary or appropriate to administer the bankruptcy estate. 
 5.8 Preservation of Records. The Seller and the Purchaser agree that each of them shall preserve and keep the records held by them or their
Affiliates relating to the Business, the Purchased Assets and Assumed Liabilities for a period of five (5) years from the Closing Date, in the case of the Purchaser, and until the closing of the Chapter 11 Case or the liquidation and winding up
of Seller’s estate, in the case of Seller, and shall make such records available to the other party as may be reasonably required by such other party in connection with, among other things, any insurance claims by, actions or tax audits against
or governmental investigations of Seller or the Purchaser or any of their respective Affiliates or in order to enable Seller or the Purchaser to comply with their respective obligations under this Agreement and each other agreement, document or
instrument contemplated hereby or thereby. In the event Seller or the Purchaser wishes to destroy such records at the end of such five (5) year period, such party shall first give sixty (60) days prior written notice to the other party and
such other party shall have the right at its option and expense, upon prior written notice given to such party within such sixty (60) day period, to take possession of the records within one hundred and twenty (120) days after the date of
such notice, or such shorter period as the liquidation and winding up of Seller’s estate shall permit. 
 5.9 Publicity. The
Seller or the Purchaser may issue a press release or public announcement concerning this Agreement or the transactions contemplated hereby only with the prior written approval of the other parties hereto, which approval will not be unreasonably
withheld, conditioned or delayed, unless, in the sole judgment of the disclosing party, such disclosure is otherwise required by applicable Law or by the Bankruptcy Court with respect to filings to be made with the Bankruptcy Court in connection
with this Agreement. Without limiting the generality of the foregoing sentence, the party intending to make such release shall use its commercially reasonable efforts, consistent with such applicable Law or Bankruptcy Court requirement, to consult
with the other parties with respect to the text thereof. 
  

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 5.10 Notification of Certain Matters. Seller shall give prompt notice to the Purchaser, and the
Purchaser shall give prompt notice to Seller, of (i) any notice or other communication from any Person alleging that the consent of such Person which is or may be required in connection with the transactions contemplated by this Agreement is
not likely to be obtained prior to Closing and (ii) any written objection or proceeding that challenges the transactions contemplated hereby or the entry of the approval of the Bankruptcy Court. To the extent permitted by applicable Law, Seller
shall give prompt notice to the Purchaser of (i) any notice of any alleged violation of Law applicable to Seller, (ii) the commencement of any investigation, inquiry or review by any Governmental Body with respect to the Business or that
any such investigation, inquiry or review, to the Knowledge of Seller, is contemplated, (iii) the infringement or unauthorized use by any Person of any material Intellectual Property (of which Seller has Knowledge) and (iv) the execution
of any Material Contract entered into other than in the Ordinary Course of Business (and Seller shall deliver or make available a copy thereof to the Purchaser). 
 5.11 Amendment. This Agreement may be amended at any time by a written instrument executed by Purchaser and Seller. Any amendment effected pursuant to this Section 5.11 shall be binding upon all
parties hereto. 
 5.12 Waiver. Any term or provision of this Agreement may be waived in writing at any time by the party or parties
entitled to the benefits thereof. Any waiver affected pursuant to this Section 5.12 shall be binding upon all parties hereto. No failure to exercise and no delay in exercising any right, power or privilege shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, power or privilege preclude the exercise of any other right, power or privilege. No waiver of any breach of any covenant or agreement hereunder shall be deemed a waiver of any preceding
or subsequent breach of the same or any other covenant or agreement. The rights and remedies of each party under this Agreement are in addition to all other rights and remedies, at law or in equity that such party may have against the other parties.

 ARTICLE 6 
 CONDITIONS TO
CLOSING 
 6.1 Conditions Precedent to the Obligations of the Purchaser and Seller. The respective obligations of each party to
this Agreement to consummate the transactions contemplated by this Agreement are subject to the satisfaction or written waiver, on or prior to the Closing Date, of each of the following conditions (any or all of which may be waived in writing by
Seller and Purchaser in whole or in part to the extent permitted by applicable Law): 
 (a) there shall not be in effect any statute, rule,
regulation, executive order enacted, issued, entered or promulgated by a Governmental Body of 

  

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competent jurisdiction restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated hereby; and 
 (b) the Bankruptcy Court shall have entered the bidding procedures order (the “Bidding Procedures Order”) and Sale Order (as provided in
Article 7) and each of such orders shall be a Final Order and in form and substance reasonably satisfactory to Seller, the and the Purchaser, which orders shall not have been reversed, modified, amended or stayed. 
 6.2 Conditions Precedent to the Obligations of Seller. The obligations of Seller to consummate the transactions contemplated by this Agreement are
subject to the fulfillment, on or prior to the Closing Date, of each of the following conditions (any or all of which may be waived in writing by Seller in whole or in part to the extent permitted by applicable Law): 
 (a) the representations and warranties of the Purchaser set forth in Article 4 hereof shall be true and correct as of the Closing Date as though
made on and as of the Closing Date (except for such representations and warranties made as of a certain date, which shall be true and correct as of such date as though made on and as of such date) except where the failure of such representations or
warranties to be true and correct (without giving effect to any limitation or qualification as to “materiality” or “material adverse effect” set forth in such representations and warranties) has not had and would not reasonably
be expected to have, individually or in the aggregate, a material adverse effect on the Purchaser’s ability to consummate the transactions contemplated hereby, and Seller shall have received a certificate, substantially in the form attached
hereto as Exhibit D, signed by an authorized officer of the Purchaser, dated the Closing Date, to the foregoing effect; 
 (b) the
Purchaser shall have performed and complied in all material respects with all obligations and agreements required by this Agreement to be performed or complied with by the Purchaser on or prior to the Closing Date, including, without limitation,
Purchaser providing adequate assurance of future performance as required under the Bankruptcy Code to effect the assumption and assignment of the contracts of the Seller to be assumed and assigned pursuant to the Bidding Procedures Order ( the
“Assigned Contracts” as set forth on Schedule 6.2) and Assumed Liabilities, and Seller shall have received a certificate, substantially in the form attached hereto as Exhibit D, signed by an authorized officer of the
Purchaser, dated the Closing Date, to the foregoing effect; 
 (c) the Purchaser shall have delivered, or caused to be delivered, to Seller
all of the items set forth in Section 7.3; and 
 (d) the Purchaser shall have delivered to Seller appropriate evidence of all
necessary company action by the Purchaser in connection with the transactions contemplated hereby, including, without limitation: (i) certified copies of 

  

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resolutions duly adopted by the Purchaser’s partners or board approving the transactions contemplated by this Agreement and authorizing the execution,
delivery, and performance by the Purchaser of this Agreement; and (ii) a certificate as to the incumbency of officers of the Purchaser executing this Agreement and any instrument or other document delivered in connection with the transactions
contemplated by this Agreement. 
 6.3 Conditions Precedent to the Obligations of the Purchaser. The obligations of Purchaser to
consummate the transactions contemplated by this Agreement are subject to the fulfillment, on or prior to the Closing Date, of each of the following conditions (any or all of which may be waived in writing by the Purchaser in whole or in part to the
extent permitted by applicable Law): 
 (a) Seller shall have delivered to the Purchaser (i) a certified copy of the Sale Order and
(ii) copies of all affidavits of service of the Sale Motion or notice of such motion filed by or on behalf of Seller; 
 (b) the
representations and warranties of Seller set forth in Article 3 hereof shall be true and correct as of the Closing Date as though made on and as of the Closing Date (except for such representations and warranties made as of a certain date,
which shall be true and correct as of such date as though made on and as of such date) except where the failure of such representations or warranties to be true and correct (without giving effect to any limitation or qualification as to
“materiality” or “Material Adverse Effect” set forth in such representations and warranties) has not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and the Purchaser
shall have received a certificate, substantially in the form attached hereto as Exhibit E, signed by an authorized officer of the Seller, dated the Closing Date, to the foregoing effect; 
 (c) Seller shall have performed and complied in all material respects with all obligations and agreements required in this Agreement to be performed or
complied with by them on or prior to the Closing Date, and the Purchaser shall have received a certificate, substantially in the form attached hereto as Exhibit E, signed by an authorized officer of the Seller, to the forgoing effect;

 (d) Provided Purchaser has provided adequate assurance of future performance as required under the Bankruptcy Code to effect the assumption
and assignment of the Assigned Contracts, all of the Assigned Contracts set forth on Schedule 6.2 shall (i) be in full force and effect on the Closing Date, subject to the Bankruptcy Exception, (ii) be assignable to the Purchaser
without the consent of the counterparty to such Assigned Contract for such assignment (or such consent shall have been received prior to the Closing Date) and (iii) have had the amount of all of Seller’s breaches and defaults thereunder
finalized to the best of the Seller’s ability, such that the Cure Costs may be paid by the Purchaser (or creation of reserves therefor) in accordance with the Sale Order; 
  

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 (e) Seller shall have delivered, or caused to be delivered, to the Purchaser all of the items set forth
in Section 7.2; 
 (f) between the Execution Date and the Closing Date, there shall not have occurred a Material Adverse Effect,
unless Material Adverse Effect was caused by the Purchaser’s failure to fulfill any material obligations under this Agreement; 
 (g) the
Seller shall have complied with the sale process deadlines set forth in the Bidding Procedures Order; and 
 (h) the exclusive right of the
Seller to file and solicit acceptances of a plan of reorganization shall not have been terminated. 
 6.4 Frustration of Closing
Conditions. Neither Seller nor the Purchaser may rely on the failure of any condition set forth in Sections 6.1, 6.2 or 6.3, as the case may be, if such failure was caused directly by such party’s failure to comply with
any provision of this Agreement. 
 6.5 Survival of Representations and Warranties. None of the representations, warranties, covenants
and agreements of Seller in this Agreement or in any instrument delivered pursuant to this Agreement, including any rights arising out of any breach of such representations, warranties, covenants and agreements, shall survive the Closing Date;
provided that, nothing in this Section 6.5 shall limit the remedies of Purchaser after the Closing for breaches of representations, warranties, covenants or agreements resulting from fraud by Seller. 
 6.6 Indemnification and Payment of Damages By Purchaser. Purchaser will indemnify and hold harmless each of the Persons included within the
definition of Seller, and their respective Representatives, equityholders, controlling persons, Affiliates, and successors for, and will pay to such Persons the amount of any loss, liability, claim, damage or expense actually incurred (including
reasonable attorneys’ fees), whether or not involving a third-party claim (collectively, “Damages”), arising, directly or indirectly, from or in connection with (a) any breach of any representation or warranty made by
Purchaser in this Agreement or in any certificate delivered by Purchaser pursuant to this Agreement, (b) any Breach by Purchaser of any covenant or obligation of Purchaser in this Agreement, (c) any claim by any Person for brokerage or
finder’s fees or commissions or similar payments based upon any agreement or understanding alleged to have been made by such Person with Purchaser (or any Person acting on its behalf), or (d) any liability or obligation of any nature with
respect to the Liabilities. 
  

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 ARTICLE 7 
 CLOSING AND TERMINATION 
 7.1 Closing. Subject to the satisfaction of the conditions set forth
in Sections 6.1, 6.2 and 6.3 hereof or the waiver thereof by the party entitled to waive the applicable condition, the closing of the purchase and sale of the Purchased Assets, the assumption of the Assumed Liabilities and the
consummation of the other transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of Paul Hastings Janofsky & Walker, LLP, 515 South Flower Street, Los Angeles, California 90071 (or at
such other place as the parties may designate in writing) within five (5) days after the entry of the Sale Order, unless another time or date, or both, are agreed to in writing by the parties. The date on which the Closing shall be held is
referred to in this Agreement as the “Closing Date.” Unless otherwise agreed by the parties in writing, the Closing shall be deemed effective and all right, title and interest of the Seller in the Purchased Assets to be acquired by
the Purchaser hereunder shall be considered to have passed to the Purchaser and the assumption of all of the Assumed Liabilities shall be considered to have occurred as of 12:01 a.m. Eastern Time on the Closing Date. 
 7.2 Closing Deliveries by Seller. At the Closing, Seller shall deliver to the Purchaser: 
 (a) a duly executed bill of sale with respect to the Purchased Assets, substantially in the form attached hereto as Exhibit A; 
 (b) a duly executed assignment and assumption agreement with respect to the Assumed Liabilities, substantially in the form attached hereto as Exhibit
B; 
 (c) a true and correct copy of the Sale Order; 
 (d) a duly executed non foreign person affidavit of the Seller dated as of the Closing Date, sworn under penalty of perjury and in form and substance required under the Treasury Regulations issued pursuant to
Section 1445 of the Code, stating that the Seller is not a “foreign person” as defined in Section 1445 of the Code; 
 (e)
the officer’s certificates required to be delivered pursuant to Sections 6.3(b) and 6.3(c) substantially in the form attached hereto as Exhibit E; 
 (f) satisfactory resolution of any disputes regarding the Cure Costs to be assumed by Purchaser (or establishment of appropriate reserves therefore) in
accordance with the procedures set forth in the Sale Order; and 
 (g) any other previously undelivered certificates, agreements and other
documents required by this Agreement to be delivered by Seller at or prior to the Closing in connection with the transactions contemplated by this Agreement. 
  

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 7.3 Closing Deliveries by the Purchaser. At the Closing, the Purchaser shall deliver to (or at the
direction of) Seller: 
 (a) the Purchase Price, in the form of documentation reasonably acceptable to Seller evidencing the ability to pay
the Monthly Payments; 
 (b) a duly executed assignment and assumption agreement substantially in the form attached hereto as Exhibit
B; 
 (c) the officer’s certificates required to be delivered pursuant to Sections 6.2(a) and 6.2(b) substantially in
the form attached hereto as Exhibit D; and 
 (d) any other previously undelivered certificates, agreements and other documents
required by this Agreement to be delivered by the Purchaser at or prior to the Closing in connection with the transactions contemplated by this Agreement. 
 7.4 Termination of Agreement. This Agreement may be terminated as follows: 
 (a) by the mutual written
consent of Seller and the Purchaser at any time prior to the Closing; 
 (b) by either the Purchaser or Seller, if there shall be any Law that
makes consummation of the transactions contemplated hereby illegal or otherwise prohibited, or there shall be in effect a final non-appealable order of a Governmental Body of competent jurisdiction restraining, enjoining or otherwise prohibiting the
consummation of the transactions contemplated hereby; it being agreed that the parties hereto shall promptly appeal any adverse determination which is appealable (and pursue such appeal with reasonable diligence); 
 (c) by the Purchaser, if the Chapter 11 Case is dismissed or converted to a case or cases under Chapter 7 of the Bankruptcy Code, or if a trustee or
examiner to operate or manage the financial affairs, the business or the reorganization of Seller is appointed in the Chapter 11 Case; 
 (d)
by either the Purchaser or Seller, if (A) the Sale Order shall not have been approved by the Bankruptcy Court by the close of business on January 23, 2009 or (B) following its entry, the Sale Order shall fail to be in full force and
effect or shall have been stayed, reversed, modified or amended in any respect without the prior written consent of the Purchaser and Seller; provided that the right to terminate this Agreement under this Section 7.4(d) shall not be
available to any party whose failure to fulfill any material obligation under this Agreement has been the cause of, or resulted in, the failure of such order to meet these requirements on or before such date, including, without limitation, the
failure of Purchaser to provide adequate assurances of future performance as required by the Bankruptcy Code; 
  

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 (e) by either the Purchaser or Seller, if the Bidding Procedures Order shall fail to be in full force and
effect as of December 23, 2008 or shall have been stayed, reversed, modified or amended in any respect without the prior written consent of the Purchaser and Seller; provided that the right to terminate this Agreement under this
Section 7.4(e) shall not be available to any party whose failure to fulfill any material obligation under this Agreement has been the cause of, or resulted in, the failure of such order to meet these requirements on or before such date;

 (f) by either the Purchaser or Seller, if Seller has entered into an Alternative Transaction; 
 (g) automatically upon consummation of an Alternative Transaction; 
 (h) by the Purchaser, if there has been a Material Adverse Effect between the Execution Date and the Closing Date, unless such Material Adverse Effect was caused by the Purchaser’s failure to fulfill any material
obligations under this Agreement; 
 (i) by Seller, if the Purchaser has breached any representation, warranty, covenant or agreement
contained in this Agreement and as a result of such breach the conditions set forth in Section 6.2 and Section 6.3 hereof, as the case may be, would not then be satisfied at the time of such breach; provided,
however, that if such breach is curable by the Purchaser within ten (10) days through the exercise of its reasonable best efforts, then for so long as the Purchaser continues to exercise such reasonable best efforts Seller may not
terminate this Agreement under this Section 7.4(i) unless such breach is not cured within ten (10) days from written notice to the Purchaser of such breach; provided, further, that Seller is not then in material breach
of the terms of this Agreement, and provided further, that no cure period shall be required for a breach which by its nature cannot be cured; 
 (j) by Purchaser, if Seller has breached any representation, warranty, covenant or agreement contained in this Agreement and as a result of such breach the conditions set forth in Section 6.2 and Section 6.3 hereof,
as the case may be, would not then be satisfied at the time of such breach; provided, however, that if such breach is curable by Seller within ten (10) days through the exercise of its reasonable best efforts, then for so long as
Seller continues to exercise such reasonable best efforts the Purchaser may not terminate this Agreement under this Section 7.4(j) unless such breach is not cured within ten (10) days from written notice to Seller of such breach;
provided, further, that the Purchaser is not then in material breach of the terms of this Agreement, and provided further, that no cure period shall be required for a breach which by its nature cannot be cured; or 
  

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 (k) by Seller, if all of the conditions set forth in Sections 6.1 and 6.2 have been
satisfied (other than conditions that by their nature are to be satisfied at the Closing) or waived and Purchaser fails to deliver the Purchase Price at the Closing. 
 7.5 Procedure Upon Termination. In the event of a termination of this Agreement by the Purchaser or Seller, or both, pursuant to Section 7.4, (a) written notice thereof shall be given promptly
by the terminating party to the other parties hereto, specifying the provision hereof pursuant to which such termination is made, (b) except as contemplated by Section 8.1 with respect to the obligations of Purchaser to serve as a
Back-up Bidder hereunder, this Agreement shall thereupon terminate and become void and of no further force and effect and (c) the consummation of the transactions contemplated by this Agreement shall be abandoned without further action of the
parties hereto. If this Agreement is terminated as provided herein, each party shall redeliver all documents, work papers and other material of any other party relating to the transactions contemplated hereby, whether so obtained before or after the
execution hereof, to the party furnishing the same. 
 7.6 Effect of Termination. In the event that this Agreement is validly
terminated as provided herein, then each of the parties shall be relieved of its duties and obligations arising under this Agreement effective as of the date of such termination and such termination shall be without Liability to the Purchaser or
Seller. In no event shall any termination of this Agreement relieve any party hereto of any Liability for any willful breach of this Agreement by such party. 
 ARTICLE 8 
 BANKRUPTCY COURT MATTERS 
 8.1 Competing Bid and Other Matters. 
 (a) No later than two (2) days after the Execution Date, the Seller shall file with the Bankruptcy Court an application or motion seeking approval of the Bidding Procedures Order (the “Bid Procedures Motion”).

 (b) This Agreement and the transactions contemplated hereby are subject to Seller’s right and ability to consider higher or better
competing bids with respect to the Business and a material portion of the Purchased Assets pursuant to the Bidding Procedures Order (each a “Competing Bid”). From the date of execution of this Agreement by the Seller through entry
of the Bidding Procedures Order, and subject to compliance with Seller’s duties under the Bankruptcy Code and other applicable law (including, without limitation, the fiduciary duty of Seller’s directors), the Seller shall not solicit or
negotiate with respect to other offers to purchase the Purchased Assets or propose any plan of reorganization or plan of liquidation to retain or dispose of the Acquired Assets; provided, however, that Seller may solicit offers to purchase the

  

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Acquired Assets from parties other than parties in interest in the Chapter 11 Case. Following entry of the Bidding Procedures Order, the Seller may solicit
and negotiate higher and/or otherwise better offers from any party deemed appropriate by the Seller. 
 (c) From the date of entry of the
Bidding Procedures Order until the conclusion of the Sale Hearing, Seller shall have the responsibility and obligation to respond to any reasonable inquiries or offers to purchase all or any part of the Business, and perform any and all other acts
related thereto which are required under the Bankruptcy Code or other applicable Law, including, without limitation, supplying information relating to the Business and the assets of Seller to prospective Purchaser, subject only to the provisions of
the Bidding Procedures Order. 
 (d) If an Auction is conducted, and the Purchaser is not the prevailing party at the conclusion of such
Auction (such prevailing party, the “Prevailing Bidder” and the prevailing transaction, the “Alternative Transaction”), the Purchaser shall be required to serve as a back-up bidder (the “Back-up
Bidder”), but only to the extent the Purchaser was determined to be the second highest bid, and keep the Purchaser’s bid to consummate the transactions contemplated by this Agreement on the terms and conditions set forth in this
Agreement (as the same may be improved upon in the Auction) open and irrevocable until the earlier of (i) 5:00 p.m. (prevailing Eastern time) on the date which is five (5) days after the date of the Sale Hearing (the “Outside
Back-up Date”); or (ii) the date of closing of an Alternative Transaction with the Prevailing Bidder. Following the Sale Hearing and prior to the Outside Back-up Date, if the Prevailing Bidder fails to consummate the applicable
Alternative Transaction as a result of a breach or failure to perform on the part of such Prevailing Bidder, the Back-up Bidder (if the Back-up Bidder is the next highest bidder at the Auction) will be deemed to have the new prevailing bid, and
Seller will be authorized, without further order of the Bankruptcy Court, to consummate the transactions contemplated by this Agreement on the terms and conditions set forth in this Agreement (as the same may be improved upon in the Auction) with
the Back-up Bidder. 
 (e) The Seller shall promptly serve true and correct copies of the Sale Motion and all related pleadings in accordance
with the Bidding Procedures Order, the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, the Local Rules for the Bankruptcy Court and any other applicable order of the Bankruptcy Court. 
 8.2 Sale Order. The Sale Order shall be entered by the Bankruptcy Court substantially in the form attached hereto as Exhibit C and
otherwise in form and substance reasonably acceptable to Seller and the Purchaser. The Sale Order shall, among other things, (i) approve, pursuant to Sections 105, 363 and 365 of the Bankruptcy Code, (A) the execution, delivery and
performance by Seller of this Agreement, (B) the sale of the Purchased Assets to the Purchaser on the terms set forth herein and free and clear of all Encumbrances (other than Encumbrances included in the Assumed Liabilities and Permitted
Encumbrances), and (C) the performance by Seller of its respective 

  

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obligations under this Agreement; (ii) authorize and empower Seller to assume and assign to the Purchaser the Assigned Contracts; and (iii) find
that Purchaser is a “good faith” Purchaser within the meaning of Section 363(m) of the Bankruptcy Code, not a successor to the Seller and grant the Purchaser the protections of section 363(m) of the Bankruptcy Code. The Purchaser
agrees that it will promptly take such actions as are reasonably requested by Seller to assist in obtaining Bankruptcy Court approval of the Sale Order, including, without limitation, furnishing affidavits or other documents or information for
filing with the Bankruptcy Court for purposes, among others, of (a) demonstrating that the Purchaser is a “good faith” Purchaser under Section 363(m) of the Bankruptcy Code and (b) establishing adequate assurance of future
performance within the meaning of section 365 of the Bankruptcy Code. In the event that the Bankruptcy Court’s approval of the Sale Order shall be appealed, Seller shall use reasonable efforts to defend such appeal. 
 ARTICLE 9 
 GENERAL PROVISIONS

 9.1 Notices. All notices and other communications under or in connection with this Agreement shall be in writing and shall be
deemed given (a) if delivered personally (including by overnight express or messenger), upon delivery, (b) if delivered by registered or certified mail (return receipt requested), upon the earlier of actual delivery or three days after
being mailed, or (c) if given by telecopy, upon confirmation of transmission by telecopy, in each case to the parties at the following addresses: 
 (a) If to the Purchaser, addressed to: 
 California Financial Partners, Inc. 
 505 N. Brand Blvd., Suite 1470 
 Glendale, California 91203 
 Attention: Harvey H. Jacobson 
 Telecopy: (818) 550-9155 
 With a copy to: 
 Barton, Klugman & Oetting 
 350 S. Grand Ave., Suite 2200 
 Los Angeles, CA 
 Attention: Tom McCurrin and Jeffrey B. Harris 
 Telecopy: (213) 625-1832 
  

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 (b) If to Seller , addressed to: 
 PFF Bancorp, Inc. 
 1490 N. Claremont Blvd., Suite 100 
 Claremont, CA 91711 
 Attention: Kevin McCarthy 
 Telecopy: (909) 447-2098 
 With a copy to: 
 Paul, Hastings, Janofsky & Walker, LLP 
 191 N. Wacker Dr., Suite 3000 
 Chicago, IL 60606 
 Attention: Richard A. Chesley 
 Telecopy: (312) 499-6050 
 9.2 Severability. If any term or provision of this Agreement or the application thereof to any circumstance shall, in any jurisdiction and to any extent, be invalid or unenforceable, such term or provision shall be ineffective as to
such jurisdiction to the extent of such invalidity or unenforceability without invalidating or rendering unenforceable such term or provision in any other jurisdiction, the remaining terms and provisions of this Agreement or the application of such
terms and provisions to circumstances other than those as to which it is held invalid or enforceable. 
 9.3 Entire Agreement. This
Agreement, including the annexes and schedules attached hereto and other documents referred to herein, contains the entire understanding of the parties hereto in respect of its subject matter and supersedes all prior and contemporaneous agreements
and understandings, oral and written, between the parties with respect to such subject matter. 
 9.4 Successors and Assigns. This
Agreement shall be binding upon the Seller and Purchaser and, subject to entry of the Bidding Procedures Order (with respect to the matters covered thereby) and the Sale Order, and inure to the benefit of the parties and their respective successors
and permitted assigns, including, without limitation, any trustee or estate representative appointed in the Chapter 11 Case or any successor Chapter 7 case. Nothing in this Agreement shall create or be deemed to create any third party beneficiary
rights in any Person or entity not a party to this Agreement except as provided below. No assignment of this Agreement or of any rights or obligations hereunder may be made by Seller or the Purchaser (by operation of law or otherwise) without the
prior written consent of the other parties hereto and any attempted assignment without the required consents shall be void; provided, that the Purchaser may assign their rights and obligations hereunder in whole or in part to one or more wholly
owned Subsidiaries of the Purchaser (each, a “Permitted Assign”) (subject to the next succeeding sentence). Upon any such permitted assignment, the references in this 

  

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Agreement to the Purchaser shall also apply to any such assignee unless the context otherwise requires, and shall be binding upon and inure to the benefit of
Purchaser and Seller and their respective successors, heirs and assigns; provided, however, that Seller may not directly or indirectly transfer or assign any of Seller’s rights hereunder in whole or in part without the prior written consent of
Purchaser, and any such transfer or assignment without said consent shall be void, ab initio. Subject to the immediately preceding sentence, and except as specifically provided in this Agreement, this Agreement is not intended to benefit, and
shall not run to the benefit of or be enforceable by, any other person or entity other than the parties hereto and their permitted successors and assigns. 
 9.5 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute but one and the same Agreement.

 9.6 Recitals, Schedules and Annexes. The recitals, schedules and annexes to this Agreement are incorporated herein and, by this
reference, made a part hereof as if fully set forth at length herein. 
 9.7 Construction. 
 (a) Unless otherwise expressly provided, for purposes of this Agreement, the following rules of interpretation shall apply: 
 (i) All references in this Agreement to Articles, Sections, Schedules and Exhibits shall be deemed to refer to Articles, Sections, Schedules and Exhibits
to this Agreement. 
 (ii) All Exhibits and Schedules annexed hereto or referred to herein are hereby incorporated in and made a part of
this Agreement as if set forth in full herein. Any capitalized terms used in any Schedule or Exhibit but not otherwise defined therein shall be defined as set forth in this Agreement. 
 (iii) The Article, Section and paragraph captions herein are for convenience of reference only, do not constitute part of this Agreement and shall not
be deemed to limit or otherwise affect any of the provisions hereof. 
 (iv) The words “include,” “includes” and
“including,” when used herein shall be deemed in each case to be followed by the words “without limitation” (regardless or whether such words or similar words actually appear). 
 (v) When calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement,
the date that is the reference date in calculating such period shall be 

  

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excluded. If the last day of such period is not a Business Day, the period in question shall end on the next succeeding Business Day. 
 (vi) Any reference in this Agreement to $ shall mean U.S. dollars. 
 (vii) Any reference in this Agreement to gender shall include all genders, and words imparting the singular number only shall include the plural and vice versa. 
 (viii) The words such as “herein,” “hereinafter,” “hereof,” and “hereunder” refer to this Agreement as a whole
and not merely to a subdivision in which such words appear unless the context otherwise requires. 
 (b) The parties hereto agree that they
have been represented by legal counsel during the negotiation and execution of this Agreement and, therefore, waive the application of any Law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document
shall be construed against the party drafting such agreement or document. 
 (c) Purchaser acknowledges hereby that Seller may not comply
with the provisions of any bulk transfer laws of any jurisdiction in connection with the transactions contemplated by this Agreement. 
 9.8
Governing Law. THIS AGREEMENT IS TO BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH FEDERAL BANKRUPTCY LAW, TO THE EXTENT APPLICABLE, AND WHERE STATE LAW IS IMPLICATED, THE LAWS OF THE STATE OF DELAWARE SHALL GOVERN, WITHOUT GIVING EFFECT TO
THE CHOICE OF LAW PRINCIPLES THEREOF, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE. 
 9.9 Jurisdiction, Waiver of Jury
Trial. 
 (a) THE BANKRUPTCY COURT WILL HAVE JURISDICTION OVER ANY AND ALL DISPUTES BETWEEN OR AMONG THE PARTIES, WHETHER IN LAW OR
EQUITY, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY AGREEMENT CONTEMPLATED HEREBY; PROVIDED, HOWEVER, THAT IF THE BANKRUPTCY COURT IS UNWILLING OR UNABLE TO HEAR ANY SUCH DISPUTE, THE COURTS OF THE STATE OF DELAWARE AND THE FEDERAL
COURTS OF THE UNITED STATES OF AMERICA LOCATED IN DELAWARE WILL HAVE SOLE JURISDICTION OVER ANY AND ALL DISPUTES BETWEEN OR AMONG THE PARTIES, WHETHER IN LAW OR EQUITY, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY AGREEMENT CONTEMPLATED
HEREBY. 
  

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 (b) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 9.10 Injunctive Relief. The parties
agree that damages at Law may be an inadequate remedy for the breach of any of the covenants, promises and agreements contained in this Agreement by the Seller, and, accordingly, the Purchaser shall be entitled to injunctive relief with respect to
any such breach, including without limitation, specific performance of such covenants, promises or agreements or an order enjoining the Purchaser from any threatened, or from the continuation of any actual, breach of the covenants, promises or
agreements contained in this Agreement by the Seller. The rights set forth in this Section 9.10 shall be in addition to any other rights which the Purchaser may have at Law or in equity pursuant to this Agreement. 
 9.11 Expenses 
 (a) Except as
otherwise set forth in this Agreement, each of Seller and Purchaser shall each bear its own expenses (including attorneys’ fees) incurred in connection with the negotiation and execution of this Agreement and each other agreement, document and
instrument contemplated by this Agreement and the consummation of the transactions contemplated hereby and thereby. 
 (b) If any Party seeks
to enforce the terms and provisions of this Agreement, then the prevailing party in such action shall be entitled to recover from the non-prevailing Party, in addition to the remedies provided hereunder, all costs incurred in connection with such
action, including reasonable legal fees, expenses and costs incurred. 
 9.12 Non Recourse. Except as expressly contemplated by this
Agreement, no past, present or future director, officer, employee, incorporator, member, partner or equity holder of Seller or the Purchaser shall have any liability for any obligations or liabilities of Seller or the Purchaser under this Agreement
or Seller’s documents (“Seller’s Documents”) or the Purchaser’s documents (“Purchaser’s Documents”) of or for any claim based on, in respect of, or by reason of, the transactions contemplated
hereby and thereby. 
 9.13 Time of the Essence. Time is of the essence in the performance of each of the obligations of the parties
and with respect to all covenants and conditions to be satisfied by the parties in this Agreement and all documents, acknowledgments and instruments delivered in connection herewith. 
  

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 IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement, or has caused this Agreement
to be executed on its behalf by a representative duly authorized, all as of the date first above set forth. 
  

			
	 SELLER
 PPF BANCORP, INC.,

a Delaware corporation

		
	By:	 	/s/ Kevin McCarthy
		 	 Kevin McCarthy, President and Chief
 Executive Officer

  

			
	 PURCHASER
 CALIFORNIA FINANCIAL
PARTNERS, INC.,
 a California corporation

		
	By:	 	/s/ Harvey Jacobson
		 	Harvey Jacobson, President

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