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Exhibit 10.27    
  

NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, NO SHARES OF BUTTE COMMUNITY BANK'S COMMON STOCK SHALL BE ISSUED PURSUANT HERETO UNLESS THE BUTTE COMMUNITY BANK 2000
STOCK OPTION PLAN SHALL HAVE FIRST BEEN APPROVED BY THE SHAREHOLDERS OF BUTTE COMMUNITY BANK.

 
 

BUTTE COMMUNITY BANK
  
    NONQUALIFIED STOCK OPTION AGREEMENT    
  

        This
Nonqualified Stock Option Agreement (the "Agreement") is made and entered into as of the 1st of May, 2000, by and between Butte Community Bank, a California
corporation (the "Bank"), and Hubert I. Townshend ("Optionee"); 

        WHEREAS,
pursuant to the Butte Community Bank 2000 Stock Option Plan, as amended (the "Plan"), a copy of which is attached hereto, the Board of Directors of the Bank has authorized
granting to Optionee, a nonqualified stock option to purchase all or any part of Seven thousand five hundred (7,500) authorized but unissued shares of the Bank's common stock for cash at the price of
Sixteen Dollars and seventy-five Cents ($16.75) per share, such option to be for the term and upon the terms and conditions hereinafter stated; 

        NOW,
THEREFORE, it is hereby agreed: 

        1.    Grant of Option.    Pursuant to said
action of the Board of Directors and pursuant to authorizations granted by all appropriate regulatory and governmental agencies, the Bank hereby grants to Optionee the option to purchase, upon and
subject to the terms and conditions of the Plan, which is incorporated in full herein by this reference, all or any part of Seven thousand five hundred (7,500) shares of the
Bank's common stock (hereinafter called "stock") at the price of Sixteen Dollars and seventy-five Cents ($16.75) per share, which price is not less than one hundred percent (100%) of the
fair market value of the stock as of the date of action of the Board of Directors granting this option. 

        2.    Exercisability.    This option shall be
exercisable as to up to, but not including, 20% of the options shares granted per year for a five year period, at which time options will be exercisable at 100% of grant. The first 20% vesting will be
available for exercise 12 months from the date of grant. Upon death or disability of optionee, this grant will be deemed to be 100% vested. This option shall remain exercisable as to all of
such shares until April 30, 2010, (but not later than ten (10) years from the date this option is granted) unless this option has expired or terminated earlier in accordance with the
provisions hereof. Shares as to which this option becomes exercisable pursuant to the foregoing provision may be purchased at any time prior to expiration of this option. 

        3.    Exercise of Option.    This option may
be exercised by written notice delivered to the Bank stating the number of shares with respect to which this option is being exercised, together with cash in the amount of the purchase price of such
shares. Not fewer than ten (10) shares may be purchased at any one time unless the number of shares purchased is the total number of shares which is exercisable at such time, and in no event
may the option be exercised with respect to fractional shares. Upon exercise, Optionee shall make appropriate arrangements and shall be responsible for the withholding of any federal and state taxes
then due. 

        4.    Cessation of Directorship or
Employment.    Except as provided in Paragraphs 2 and 5 hereof, if Optionee shall cease to be a director or an employee of the Bank or a
subsidiary corporation for any reason other than Optionee's death or disability [as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended from time to time
(the "Code")], this option shall expire three (3) months thereafter. During the three (3) month period this option shall be exercisable only as to those installments, if any,
which had accrued as of the date when Optionee ceased to be a director or an employee of the Bank or a subsidiary corporation. 

 

        5.    Termination of Employment for
Cause.    If Optionee's employment with the Bank or a subsidiary corporation is terminated for cause, this option shall expire immediately,
unless reinstated by the Board of Directors within thirty days (30) days of such termination by giving written notice of such reinstatement to Optionee at his or her last known address. In the
event of such reinstatement, Optionee may exercise this option only to such extent, for such time, and upon such terms and conditions as if Optionee had ceased to be an employee of the Bank or a
subsidiary corporation upon the date of such termination for a reason other than cause, death or disability. Termination for cause
shall include, but not be limited to, termination for malfeasance or gross misfeasance in the performance of duties or conviction of a crime involving moral turpitude, and, in any event, the
determination of the Board of Directors with respect thereto shall be final and conclusive. 

        6.    Nontransferability; Death or Disability of
Optionee.    This option shall not be transferable except by will or by the applicable laws of descent and distribution and shall be
exercisable during Optionee's lifetime only by Optionee. If Optionee dies while serving as a director or an employee of the Bank or a subsidiary corporation, or during the three (3) month
period referred to in Paragraph 4 hereof, this option shall expire one (1) year after the date of Optionee's death or on the day specified in Paragraph 2 hereof, whichever is
earlier. After Optionee's death but before such expiration, the persons to whom Optionee's rights under this option shall have passed by will or by the applicable laws of descent and distribution or
the executor or administrator of Optionee's estate shall have the right to exercise this option as to those shares for which installments had accrued under Paragraph 2 hereof as of the date on
which Optionee ceased to be a director or an employee of the Bank or a subsidiary corporation. 

        If
Optionee terminates his or her directorship or employment because of disability, Optionee may exercise this option to the extent he or she is entitled to do so at the date of
termination, at any time within one (1) year of the date of termination, or before the expiration date specified in Paragraph 2 hereof, whichever is earlier. 

        7.    Employment.    This Agreement shall not
obligate the Bank or a subsidiary corporation to employ Optionee for any period, nor shall it interfere in any way with the right of the Bank or a subsidiary corporation to reduce Optionee's
compensation. 

        8.    Privileges of Stock
Ownership.    Optionee shall have no rights as a shareholder with respect to the Bank's stock subject to this option until the date of
issuance of stock certificates to Optionee. Except as provided in the Plan, no adjustment will be made for dividends or other rights for which the record date is prior to the date such stock
certificates are issued. 

        9.    Modification and Termination.    The
rights of Optionee are subject to modification and termination upon the occurrence of certain events as provided in Sections 13 and 14 of the Plan. 

        10.    Notification of Sale.    Optionee
agrees that Optionee, or any person acquiring shares upon exercise of this option, will notify the Bank not more than five (5) days after any sale or other disposition of such shares. No shares
issuable upon the exercise of this option shall be issued and delivered unless and until the Bank has fully complied with all applicable requirements of any regulatory agency having jurisdiction over
the Bank, and all applicable requirements of any exchange upon which stock of the Bank may be listed. 

        11.    Notices.    Any notice to the Bank
provided for in this Agreement shall be addressed to it in care of its President or Chief Financial Officer at its main office and any notice to Optionee shall be addressed to Optionee's address on
file with the Bank or a subsidiary corporation, or to such other address as either may designate to the other in writing. Any notice shall be deemed to be duly given if and when enclosed in a properly
sealed envelope and addressed as stated above and deposited, postage prepaid, with the United States Postal Service. In lieu of giving notice by mail as aforesaid, any written 

2

 

notice under this Agreement may be given to Optionee in person, and to the Bank by personal delivery to its President or Chief Financial Officer. 

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

	 
	 	 
	 	 

	OPTIONEE	 	BUTTE COMMUNITY BANK
	

 	
 	

 	
 	

 
	/s/  HUBERT I TOWNSHEND      
	 	By	 	/s/  K C ROBBINS      

	

 	
 	

 	
 	

 
	 	 	By	 	 
	 	 	 	 	

3

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Exhibit 10.27

BUTTE COMMUNITY BANK NONQUALIFIED STOCK OPTION AGREEMENTQuickLinks
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Exhibit 10.28    
  

 
 

BUTTE COMMUNITY BANK    
    
    DIRECTOR DEFERRED FEE AGREEMENT    
  

        THIS AGREEMENT is made this 8th day of April , 1998 by and between BUTTE COMMUNITY BANK, located in Paradise, California (the "Company"), and M.
ROBERT CHING (the "Director"). 

INTRODUCTION  

        To attract, retain and reward quality directors, and to promote orderly succession of its Board of director, the Company is willing to provide to the Director a
supplemental nonqualified deferred compensation agreement. The company will pay the accrued benefits from its general assets. 

AGREEMENT  

        The Director and the Company agree as follows: 

Article 1

Definitions  

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

        1.1    "Change of Control"    means the transfer of shares of the Company's voting common stock such that one entity
or one person acquires (or is deemed to acquire when applying Section 318 of the Code) more than 50 percent of the Company's outstanding voting common stock followed within twelve
(12) months by the termination or the Director's status as a member of the Company's Board of Directors. 

        1.2    "Deferral Account"    means the account maintained on the books of the Company as of March 1, 1998. 

        1.3    "Deferral Benefit"    means the benefit described in Article 4. 

        1.4    "Normal Retirement Date"    means the date of the Director's Termination of Service. 

        1.5    "Plan Anniversary Date"    means the twelve month anniversary date and each succeeding twelve month anniversary
date from the date set forth in Section 3.1 

        1.6    "Termination of Service"    means the Director's ceasing to serve on the Board of the Company or its successor
for any reason other than death. 

Article 2

Deferral Election  

        2.1    Initial Election.    By executing this Agreement, the Director agrees to defer the lesser of $12,000 or $100%
of his Fees, per year, for the duration of his service on the Company's Board of Directors. 

        2.2    Election Changes    

        2.2.1    Generally.    The Director may not modify the amount of his Fees that are being deferred without the written
consent of the majority of the Company's Board of Directors. To modify his deferral amount the Director must sign and submit to the Board of Directors, the Election Form (attached as
Exhibit A). Such modification shall be effective on the first day of the Plan Year commencing immediately after the date the modification is approved by the Company's Board of Directors. 

        2.2.2    Hardship.    If an unforeseeable financial emergency arising from the death of a family member, divorce,
sickness, injury, catastrophe or similar event outside the control of the Director occurs, the Director, by written instructions to the Company may reduce future deferrals under this Agreement. 

Article 3

Deferral Account  

        3.1    Establishing and Crediting.    The Company shall establish a Deferral Account on its books for the Director and
shall credit to the Deferral Account the following amounts.: 

        3.1.1    Deferrals.    The Fees deferred by the Director as of the time the Fees would have otherwise been paid to the
Director. 

        3.2    Statement of Accounts.    The Company shall provide to the Director, within 60 days of each Plan
Anniversary, a statement setting forth the Deferral Account balance. 

        3.3    Accounting Device Only.    The Deferral Account is solely a device for measuring amounts to be paid under this
Agreement. The are not a trust fund of any kind. The Director is a general unsecured creditor of the Company for the payment of benefits. The benefits represent the mere Company promise to pay such
benefits. The Director's rights are not subject in any manner to anticipation, alienation, transfer, assignment, pledge, encumbrance, attachment, or garnishment by the Director's creditors. 

Article 4

Lifetime Benefits  

        4.1    Normal Retirement Benefit.    Upon the Normal Retirement Date, the Company shall pay to the Director the
benefit described in this Section 4.1 in lieu of any other benefit under this Agreement. 

        4.1.1    Amount of Benefit.    The benefit under this Section 4.1 is the Deferral Account Balance at the
Director's Normal Retirement Date. 

        4.1.2    Payment of Benefit.    The Company shall pay the benefit to the Director in 60 equal monthly installments
commencing on the first day of the month following the Director's Normal Retirement Date. The Company shall continue to credit interests under Section 3.1.2 on the remaining account balance
during any applicable installment period. 

        4.2    Early Retirement Benefit.    Upon Termination of Service prior to the Normal Retirement Age for reasons other
than death, Change of Control or Disability, the Company shall pay to the Director the benefit described in this Section 4.1 in lieu of any other benefit under this Agreement. 

        4.2.1    Amount of Benefit.    The benefit under this Section 4.2 is the Deferral Account Balance at the
Director's Termination of Service. 

        4.2.2    Payment of Benefit.    The Company shall pay the benefit to the Director in 60 equal monthly installments
commencing on the first day of the month following the Director's Normal Retirement Age. The Company shall continue to credit interest under Section 3.1.2 on the remaining account balance
during ay applicable installment period. 

        4.3    Disability Benefit.    If the Director terminates service as a Director for Disability prior to Normal
Retirement Age, the Company shall pay t othe Diretor the benefit described in this Section 4.3 in lieu of any other benefit under this Agreement. 

        4.3.1    Amount of Benefit.    The benefit under this Section 4.3 is the Deferral Account Balance at the
Director's Termination of Service. 

        4.3.2    Payment of Benefit.    The Company shall pay the benefit to the Director in 60 equal monthly installments
commencing on the first day of the month following the Director's Normal 

Retirement Age. The Company shall continue to credit interest under Section 3.1.2 on the remaining account balance during ay applicable installment period. 

        4.4    Change of Control Benefit.    Upon a Change of Control, the Company shall pay to the Director the benefit
described in Section 4.4 in lieu of any other benefit under this Agreement. 

        4.4.1    Amount of Benefit.    The benefit under this Section 4.4 shall be the Deferral Account balance on
Termination of Service. 

        4.4.2    Payment of Benefit.    The company shall pay the benefit to the Director in a lump sum within 60 days
after the Director's Termination of Service. 

        4.5    Hardship Distribution.    Upon the Board of Director's determination (following petition by the Director) that
the Director has suffered an unforeseeable financial emergency as described in Section 2.2.2, the Company shall distribute to the Director all or a portion of the Deferral Account balance as
determined by the Company, but in no event shall the distribution be greater than is necessary to relieve the financial hardship. 

Article 5

Death Benefits  

        5.1    Death During Active Service.    If the Director dies while in the active service of the Company, the Company
shall pay to the Director's beneficiary the benefit described in this Section 5.1 in lieu of any other benefit under this Agreement. 

        5.1.1    Amount of Benefit.    The benefit under Section 5.1 is the Deferral Account balance at the date of the
Director's death. 

        5.1.2    Payment of Benefit.    The Company shall pay the benefit to the Director's beneficiary in a lump sum payment
within 60 days of the date of the Director's death. 

        5.2    Death During Benefit Period.    If the Director dies after benefit payments have commenced under this Agreement
but before receiving all such payments, the Company shall pay the remaining benefits to the Director's beneficiary at the same time and in the same amounts they would have been paid to the Director
had the Director survived. 

Article 6

Beneficiaries  

        6.1    Beneficiary Designation.    The Director shall designate a beneficiary by filing a written designation with the
Company. The Director may revoke or modifu the designation at any time by filing a new designation. However, designations will only be effective if signed by the Director and accepted by the company
during the Director's lifetime. The Director's beneficiary designation shall be deemed automatically revoked if the beneficiary predeceases the Director, or if the Director names a spouse as
beneficiary and the marriage is subsequently dissolved. It the Director dies without a valid beneficiary designation, all payments shall be made to the Director's surviving spouse, if any, and if
none, to the Director's surviving children or descendants of any deceased child by right of representation, and if no children of descendants survive, to the Director's estate. 

        6.2    Facility of Payment.    If a benefit is payable to a minor, to a person declared incompetent, or to a person
incapable of handling the disposition of his or her property the Company may pay such benefit to the guardian, legal representative or person having the care of custody of such minor, incompetent
person or incapable person. The Company may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Such distribution shall completely
discharge the company from all liability with respect to such benefit. 

Article 7

General Limitations  

        Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement: 

        7.1    Termination for Cause.    If the Company terminates the Director's service for: 

        7.1.1    Gross negligence or gross neglect or duties; 

        7.1.2    Commission of a felony or of a gross misdemeanor involving moral turpitude; or 

        7.1.3    Fraud, disloyalty, dishonesty or willful violation of any law or significant Company policy resulting in an adverse
effect on the Company. 

        7.2    Suicide.    If te Director commits suicide within two years after the date of this Agreement, of if the
Director has made any material misstatement of fact on any application for life insurance purchased by the Company. 

Article 8

Claims and Review Procedures  

        8.1    Claims Procedure.    The Company shall notify the Director's beneficiary in writing, within 90 days of
his or her written application for benefits, of his or her eligibility or ineligibility for benefits under the Agreement. If the Company determines that the beneficiary is not eligible for benefits or
full benefits, the notice shall set forth (1) the specific reasons for such denial, (2) a specific reference t the provisions of the Agreement on which the denial is based, (3) a
description of any additional information or material necessary for the claimant to perfect his or her claim, and a description of why it is needed, and (4) an explanation of the Agreement's
claims review procedure and other appropriate information as to the steps to be taken if the beneficiary wishes to have the claim reviewed. If the Company determines that there are special
circumstances requiring additional time to make a decision, the Company shall notify the beneficiary of the special circumstances and the date by which a decision is expected to be made, and may
extend the time for up to an additional 90 day period. 

        8.2    Review Procedure.    Of the beneficiary is determined by the Company not to be eligible for benefits, or if the
beneficiary believes that he or she is entitled to greater or different benefits, the beneficiary shall have the opportunity to have such claim reviewed by the Company by filing a petition for review
with the Company within 60 days after receipt of the notice issued by the Company. Said petition shall state the specific reasons which the beneficiary believes entitle him or her to benefits
or to greater or different benefits. Within 60 days after receipt by the Company of the petition, the Company shall afford the beneficiary (and counsel, if any) an opportunity to present his or
her position to the Company orally or in writing, and the beneficiary (or counsel) shall have the right to review the pertinent documents. The Company shall notify the beneficiary of its decision in
writing within the 60 day period, stating specifically the basis of its decision, written in a manner calculated to be understood by the beneficiary and the specific provisions of the Agreement
on which the decision is based. If, because of the need for a hearing, the 60 day period is not sufficient, the decision may be deferred for up to another 60 day period at the election
of the Company, but notice of this deferral shall be given to the beneficiary. 

Article 9

Amendments and Termination  

        9.1    This Agreement may be amended or terminated only by written agreement signed by the Company and Director. 

        9.2    Notwithstanding Section 9,1, the Company may amend or terminate this Agreement at any time if, pursuant to
legislative, judicial or regulatory action, continuation of the Agreement would (i) cause benefits to be taxable to the Director prior to actual receipt, or (ii) result in significant
financial penalties or other significantly detrimental ramifications to the Company (other than the 

financial impact of paying benefits)> In no event shall this Agreement be terminated under this Section 9.2 without payment to the Director of the Deferral Account Balance attributable to the
Director's Deferrals and interest credited on such amounts. 

Article 10

Miscellaneous  

        10.1    Binding Effect.    This Agreement shall bind the Director and the Company, and their beneficiaries, survivors,
executors, administrators and transferees. 

        10.2    No Guarantee of Service.    This Agreement is not a contract for services. It does not give the Director the
right to remain a Director of the Company, nor does it interfere with the shareholders' rights to replace the Director. It also does not require the Director to remain a Director nor interfere with
the Director's right to terminate services at any time. 

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

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

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

        10.6    Recovery of Estate Taxes.    If the Director's gross estate for federal estate tax purposes includes any
amount determined by reference to and on account of this Agreement, and if the beneficiary is other than the Director's estate, then the Director's estate shall be entitled to recover from the
beneficiary receiving such benefit under the terms of the Agreement, an amount by which the total estate tax due by the Director's estate, exceeds the total estate tax which would have been payable if
the value of such benefit had not been included in the Director's gross estate. If there is more than one person receiving such benefit, the right of recovery shall be against each such person. In the
event the beneficiary has a liability hereunder, the beneficiary may petition the Company for a lump sum payment in an amount not to exceed the beneficiary's liability hereunder. 

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

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

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

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

        10.10.1    Interpreting the provisions of the Agreement; 

        10.10.2    Establishing and revising the method of accounting for the Agreement; 

        10.10.3    Maintaining a record of benefit payments; and 

        10.10.4    Establishing rules and prescribing any forms necessary or desirable to administer the Agreement. 

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

        IN
WITNESS WHEREOF, the Director and a duly authorized Company officer have signed this Agreement. 

	DIRECTOR:	 	COMPANY:

Butte Community Bank
	

	
 	

 
	/s/  M ROBERT CHING      
	 	/s/  K C ROBBINS      
 President

 
 

EXHIBIT A
  TO
  DIRECTOR DEFERRED FEE AGREEMENT    
  

Modification to Deferral Election  

        I
elect to defer my Fees received under the Director Deferred Fee Agreement with the Company as follows: 

Amount of Deferral
  (initial and complete one) 

              
I elect to defer                         %

              of my Fees paid to me. 

              
I elect to defer $                        

              of all Fees paid to me. 

              
I elect not to defer any

              of my Fees paid to me. 

        I
understand that I may change the amount and duration of my deferrals by filing a new election form with the Company; provided, however, that any subsequent election will not be
effective until the calendar year following the year in which the new election is received by the Company. 

        Signature
                                         
                               
 

        Date
                                         
                                        

        Accepted
by the Company this          day of                         ,
        . 

        By
                                         
                                       
 

        Title
                                         
                          

Beneficiary Designation  

 BUTTE COMMUNITY BANK

DIRECTOR DEFERRED FEE AGREEMENT  

        I
designate the following as beneficiary of benefits under the Revenue Neutral Executive Agreement payable following my death: 

	Primary:	The M Robert Ching and Phyllis J Ching Irrevocable Insurance Trust dated June 15, 1997, A. Beverly Ching, Trustee
	

Contingent:	

    

	

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

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

	

Signature	

/s/  M ROBERT CHING      
	
 	

 
	Date April 8, 1998

	

Accepted by the Company this 8th day of April, 1998.
	

By	

/s/  K C ROBBINS      
 President	
 	

 

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Exhibit 10.28

BUTTE COMMUNITY BANK DIRECTOR DEFERRED FEE AGREEMENT

EXHIBIT A TO DIRECTOR DEFERRED FEE AGREEMENT

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