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EXHIBIT 10.10.2

FIRST AMENDMENT

TO THE LIFE INSURANCE ENDORSEMENT METHOD SPLIT

DOLLAR PLAN AGREEMENT BY AND BETWEEN

SOUTHWEST COMMUNITY BANK AND STUART McFARLAND

This First Amendment (“Amendment”) is made and entered into effective this October 29, 2004,
by and between Southwest Community Bank, with its principal offices located in the City of
Carlsbad, California, (hereinafter the “Bank”) and Stuart F. McFarland, (hereinafter “the
Executive”). This First Amendment hereby amends the Life Insurance Endorsement Method Split Dollar
Plan Agreement, effective as of January 6, 2003, by and between the Bank and the Executive, as
follows:

	 	1)  	The following policy shall be added under the heading “Insurer/Policy Number:”,
immediately following the Northwestern Mutual Life Insurance policy identified:
	 
	 	   	Language Inserted: Security Life of Denver Insurance Company/1572293.
	 
	 	2)  	Under Section VI, “Division of Death Proceeds”, the entire Paragraph number 1,
beginning with the words “ If Death occurs on or before. . .”, and continuing through “. . .
value of the Policy”, shall be deleted and shall be replaced with the following language:
	 
	 	   	Replacement Language: If death occurs on or before the attainment of age seventy (70), the
Insured’s beneficiary(ies), (designated in accordance with Paragraph III), shall be entitled to an
amount equal to the lesser of one million dollars ($1,000,000), or one hundred percent (100%) of
the net at risk insurance portion of the proceeds. If death occurs after age seventy (70) but on
or before age eighty (80), the Insured’s beneficiary (ies) shall be entitled to the lesser of seven
hundred thousand dollars ($700,000), or one hundred percent (100%) of the net at risk insurance
proceeds. If death occurs after age eighty (80), the Insured’s beneficiaries shall be entitled to
the lesser of four hundred thousand dollars ($400,000), or one hundred percent (100%) of the net at
risk insurance proceeds. The net at risk insurance portion is the total proceeds less the cash
value of the Policy.
	 
	 	3)  	Under Section VI, “Division of Death Proceeds”, Paragraph number 2, the following policy
shall be added to the end of that paragraph:
	 
	 	   	Language Inserted: Security Life of Denver Insurance Company/1572293.
	 
	 	   	Paragraph 2 at Section VI shall now read as follows: Payment of the death benefit determined by the
preceding paragraph shall be made and distributed from the Policies in the following order, with
resort to each succeeding policy only to the extent that the proceeds of each prior listed Policy
are insufficient to satisfy the

 

 

	 	   	specified death benefit in full: (a) Northwestern Mutual
Life/16232160 (b) Beneficial Life/BL2114939 (c) Security Life of Denver Insurance Company/1572293.

To the extent that any paragraph, term, or provision of the Life Insurance Endorsement Method Split
Dollar Plan Agreement is not specifically amended herein, or in any other amendment thereto, said
paragraph, term, or provision shall remain in full force and effect as set forth in said Agreement.

IN WITNESS WHEREOF, the Insured and a duly authorized Bank officer have signed this Agreement as of
the written date.

SOUTHWEST COMMUNITY BANK

	 	 	 	 	 	 	 
	By:

	 	/s/ Frank J. Mercardante
	 	 	 	Date: 10/29/04
	

	 	

	 	 	 	 
	

	 	     Frank J. Mercardante	 	 	 	 
	

	 	     Chief Executive Officer	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Stuart F, McFarland
	 	 	 	Date:10/29/04
	

	 	

	 	 	 	 
	

	 	     Stuart F. McFarland	 	 	 	 
	 
	 	 	 	 	 	 
	 /s/ Barbara S. Cavalluzzi	 	 	 	/s/ Paul M. Weil
	 	 	 	 	 
	

	 	     Witness
	 	 	 	           Witnessexv10w30

 

EXHIBIT 10.30

EXECUTIVE SUPPLEMENTAL COMPENSATION AGREEMENT

     This Agreement is made and entered into effective as of January 20, 2005 by and between
Southwest Community Bank, with its principal offices located in the City of Carlsbad, California
(“the Bank”), and Alan J. Lane an individual residing in the State of California (“the Executive”).

R E C I T A L S

     WHEREAS, the Executive is an employee of the Bank, serving since July 15, 2004;

     WHEREAS, the Bank desires to establish a compensation benefit program as a fringe benefit
for executive officers of the Bank in order to attract and retain individuals with extensive and
valuable experience in the banking industry;

     WHEREAS, the Executive’s experience and knowledge of the affairs of the Bank and the banking
industry are extensive and valuable;

     WHEREAS, it is deemed to be in the best interests of the Bank to provide the Executive with
certain fringe benefits, on the terms and conditions set forth herein, in order to reasonably
induce the Executive to remain in the Bank’s employment; and

     WHEREAS, the Executive and the Bank wish to specify in writing the terms and conditions upon
which this additional compensatory incentive will be provided to the Executive;

     NOW, THEREFORE, in consideration of the services to be performed by the Executive in the
future, as well as the mutual promises and covenants contained herein, the Executive and the Bank
agree as follows:

A G R E E M E N T

1. Terms and Definitions.

     1.1. Administrator. The Bank shall be the “Administrator” and, solely for the
purposes of ERISA as defined in subparagraph 1.8 below, the “fiduciary” of this Agreement where a
fiduciary is required by ERISA.

     1.2. Applicable Percentage. The term “Applicable Percentage” shall mean that
percentage listed on Schedule “A” attached hereto which is adjacent to the number of calendar years
which shall have elapsed from the date of this Agreement and ending on the date payments are to
first begin under the terms of this Agreement. However, if the Executive’s employment is terminated
under subparagraph 5.1 (“Termination Without Cause”), then the Applicable Percentage from the
preceding sentence is accelerated by two years (20%). Notwithstanding the foregoing or the
percentages set forth on Schedule “A”, but subject to all other terms and conditions set forth
herein, the “Applicable Percentage” shall be one hundred percent (100%)

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upon the Executive’s death, or upon the Executive’s termination of employment that is on account of
or after a “Change in Control” (see subparagraphs 1.3 and 5.4). With regard to the Executive’s
“Constructive Termination of Employment” (as defined in subparagraph 1.5), the preceding sentence
only applies if the Constructive Termination of employment occurs within three hundred and
sixty-five (365) days from the Change in Control, and the Executive has not accepted an employment
contract with the new employer that is for a term of at least two (2) years.

     1.3. Change in Control. The term “Change in Control” shall mean the occurrence of any
of the following events with respect to the Bank (with the term “Bank” being defined for purposes
of determining whether a “Change in Control” has occurred to include a Holding Company if one is
formed in the future: (i) a change in control of a nature that would be required to be reported in
response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), or in response to any other form or report to the
regulatory agencies or governmental authorities having jurisdiction over the Bank or any stock
exchange on which the Bank’s shares are listed which requires the reporting of a change in control;
(ii) any merger, consolidation or reorganization of the Bank in which the Bank does not survive;
(iii) any sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one
transaction or a series of transactions) of any assets of the Bank having an aggregate fair market
value of fifty percent (50%) of the total value of the assets of the Bank, reflected in the most
recent balance sheet of the Bank; (iv) a transaction whereby any “person” (as such term is used in
the Exchange Act) or any individual, corporation, partnership, trust or any other entity becomes
the beneficial owner, directly or indirectly, of securities of the Bank representing twenty-five
percent (25%) or more of the combined voting power of the Bank’s then outstanding securities; or
(v) a situation where, in any one-year period, individuals who at the beginning of such period
constitute the Board of Directors of the Bank cease for any reason to constitute at least a
majority thereof, unless the election, or the nomination for election by the Bank’s shareholders,
of each new Director is approved by a vote of at least three-quarters (3/4) of the Directors then
still in office who were Directors at the beginning of the period. Notwithstanding the foregoing
or anything else contained herein to the contrary, there shall not be a “Change of Control” for the
purposes of this Agreement if the event which would otherwise come within the meaning of the term
“Change of Control” involves an Employee Stock Ownership Plan sponsored by the Bank which is the
party that acquires “control” or is the principal participant in the transaction constituting a
“Change in Control,” as described above.

     1.4. The Code. The “Code” shall mean the Internal Revenue Code of 1986, as amended
(the “Code”).

     1.5. Constructive Termination of Employment. The term “Constructive Termination of
Employment” means termination of Employment by Executive because the working conditions are so
intolerable or aggravated that a reasonable person in the Executive’s position would be compelled
to resign, provided that the Executive advised the Bank of the conditions and the Bank failed to
take timely reasonable actions to remedy the conditions.

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     1.6. Disability/Disabled. The term “Disability” or “Disabled” shall have the same
meaning given such terms in any policy of disability insurance maintained by the Bank for the
benefit of the Executive. In the absence of such a policy which extends coverage to the Executive
in the event of disability, the terms shall mean bodily injury or disease (mental or physical)
which wholly and continuously prevents the performance of duty for at least six (6) months.

     1.7. Effective Date. The term “Effective Date” shall mean the date first written
above.

     1.8. ERISA. The term “ERISA” shall mean the Employee Retirement Income Security Act
of 1974, as amended.

     1.9. Executive Benefit. The term “Executive Benefit” or “Retirement Benefit
Payments” shall mean the benefits determined pursuant to subparagraphs 3.1 and in accordance with
Schedule “B”, and reduced or adjusted to the extent: (i) required under the other provisions of
this Agreement, including, but not limited to, Paragraphs 5, 6, and 7 hereof; (ii) required by
reason of the lawful order of any regulatory agency or body having jurisdiction over the Bank; or
(iii) required in order for the Bank to properly comply with any and all applicable state and
federal laws, including, but not limited to, income, employment and disability income tax laws
(e.g., FICA, FUTA, SDI).

     1.10. Normal Retirement Date. The term “Normal Retirement Date” shall mean the
Retirement, as defined below, of the Executive upon attainment of age fifty-five (55).

     1.11. Plan Year. The term “Plan Year” shall mean the Bank’s fiscal year.

     1.12. Retirement. The term “Retirement” or “Retires” shall refer to the date which the
Executive acknowledges in writing to Bank to be the last day the Executive will provide any
significant personal services, whether as an employee or independent consultant or contractor, to
the Bank. For purposes of this Agreement, the phrase “significant personal services” shall mean
more than ten (10) hours of personal services rendered to one or more individuals or entities in
any thirty (30) day period.

     1.13. Termination for Cause. The term “Termination for Cause” shall mean termination
of the employment of the Executive by reason of any of the following, and only by reason of any of
the following:

               (a) The Executive’s deliberate violation of (i) any state or federal banking or securities
laws, or of the Bylaws, rules, policies or resolutions of the Bank, or (ii) of the rules or
regulations of the California Department of Financial Institutions, the Federal Deposit Insurance
Corporation, the Federal Reserve Board of Governors, the Office of the Comptroller of the Currency
or any other regulatory agency or governmental authority having jurisdiction over the Bank, which
has a material financial adverse effect upon the Bank; or

               (b) The Executive’s conviction of (i) any felony or (ii) a crime involving moral turpitude or
a fraudulent or dishonest act which, in each case, has a material adverse effect on the Bank.

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     1.14. Year of Service. The term “Year of Service” shall mean any calendar year in
which the Executive is employed by the Bank for at least six (6) months.

     1.15. Accrued Liability Balance. The term “Accrued Liability Balance” shall mean the
amount that has been accrued by the Employer on its financial statements to fund the retirement
benefits expense of the Employee as of the end of the month preceding the Employee’s termination of
employment.

2. Scope, Purpose and Effect.

     2.1. Contract of Employment. Although this Agreement is intended to provide the
Executive with an additional incentive to remain in the employ of the Bank, this Agreement shall
not be deemed to constitute a contract of employment between the Executive and the Bank nor shall
any provision of this Agreement restrict or expand the right of the Bank to terminate the
Executive’s employment. This Agreement shall have no impact or effect upon any separate written
Employment Agreement which the Executive may have with the Bank, it being the parties’ intention
and agreement that unless this Agreement is specifically referenced in said Employment Agreement
(or any modification thereto), this Agreement (and the Bank’s obligations hereunder) shall stand
separate and apart and shall have no effect on or be affected by, the terms and provisions of said
Employment Agreement.

     2.2. Fringe Benefit. The benefits provided by this Agreement are granted by the Bank
as a fringe benefit to the Executive and are not a part of any salary reduction plan or any
arrangement deferring a bonus or a salary increase. The Executive has no option to take any
current payments or bonus in lieu of the benefits provided by this Agreement.

     2.3. Prohibited Payments. Notwithstanding anything in this Agreement to the contrary
(and in particular in subparagraphs 1.8 or 3 hereof), if any payment made under this Agreement is a
“golden parachute payment” as defined in Section 28(k) of the Federal Deposit Insurance Act (12
U.S.C. section 1828(k) and Part 359 of the Rules and Regulations of the Federal Deposit Insurance
Corporation (collectively, the “FDIC Rules”) or is otherwise prohibited, restricted or subject to
the prior approval of a Bank Regulator, then no payment shall be made hereunder without complying
with said FDIC Rules.

3. Executive Benefits Payments.

     3.1. Payments Commence Upon Normal Retirement Date. If the Executive shall remain in
the continuous employment of the Bank until attaining fifty-five (55) years of age, the Executive
shall be entitled to be paid the Applicable Percentage of the Executive Benefits, as defined in
Schedule B, in substantially equal monthly installments on the first day of each month, beginning
with the month following the month in which the Executive Retires or upon such later date as may be
mutually agreed upon by the Executive and the Bank in advance of said Retirement date, payable for
a period of one hundred and eighty (180) months.

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     3.3. Payments in the Event of the Executive’s Death. In the event of the Executive’s
death, any payments under this, paragraph 3 shall be prorated to the date of death.

4. Payments in the Event Disability Occurs Prior to Retirement. In the event the Employee
becomes Disabled at any time after the Effective Date of this Agreement but prior to Retirement,
the Employee shall be entitled to be paid The Accrued Liability Balance as specified in Section
1.15 in sixty (60) substantially equal monthly installments on the first day of each month,
beginning with the month following the month in which the Employee becomes Disabled.

5. Payments in the Event Executive Is Terminated Prior to Retirement. As indicated in
subparagraph 2.1 above, the Bank reserves the right to terminate the Executive’s employment, with
or without Cause but subject to any written employment agreement which may then exist, at any time
prior to the Executive’s Retirement. In the event that the employment of the Executive shall be
terminated, other than by reason of Disability or Retirement, then this Agreement shall terminate
upon the date of such termination of employment; provided, however, that the Executive shall be
entitled to the following benefits as may be applicable depending upon the circumstances
surrounding the Executive’s termination:

     5.1. Termination Without Cause. If the Executive’s employment is terminated by the
Bank without cause, and such termination is not subject to the provisions of subparagraph 5.4
below, the Executive shall be entitled to be paid the Applicable Percentage of the Executive
Benefits as defined above calculated as of the end of the year following the year the Employee was
terminated, in substantially equal monthly installments on the first day of each month, beginning
with the month following the month in which the Executive attains fifty-five (55) years of age, or
any month thereafter, as requested in writing by the Executive and delivered to the Bank or its
successor thirty (30) days prior to the commencement of installment payments.

     5.2. Voluntary Termination by the Executive.

          (a) If the Applicable Percentage is one hundred percent (100%), the Executive shall be
entitled to be paid the Applicable Percentage of the Executive Benefits, as defined in Schedule B,
in substantially equal monthly installments on the first day of each month, beginning with the
month following the month in which the Executive attains fifty-five (55) years of age, or any month
thereafter, as requested in writing by the Executive and delivered to the Bank or its successor
thirty (30) days prior to the commencement of installment payments

          (b) If the Executive’s employment is terminated by voluntary resignation prior to the date
specified in Schedule A which corresponds to an Applicable Percentage equal to one hundred percent
(100%) and such resignation is not subject to the provisions of subparagraph 5.4 below, then the
Executive shall forfeit any and all rights and benefits he may have under the terms of this
Agreement and shall have no right to be paid any of the amounts which would otherwise be due or
paid to the Executive by the Bank pursuant to the terms of this Agreement.

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          (c) Termination of Employment of Executive that is a “Constructive Termination of Employment”
(as defined in subparagraph 1.5) shall not be considered as a voluntary Termination by Executive
but rather as a Termination of Employment by Bank without cause.

     5.3. Termination for Cause. The Executive agrees that if his employment with the Bank
is terminated “for cause,” as defined in subparagraph 1.13 of this Agreement, he shall forfeit any
and all rights and benefits he may have under the terms of this Agreement and shall have no right
to be paid any of the amounts which would otherwise be due or paid to the Executive by the Bank
pursuant to the terms of this Agreement; provided however, if the Executive is terminated for
disability, he shall be entitled to benefits under Section 4.

     5.4. Termination on Account of or After a Change in Control. In the event the
Executive’s employment with the Employer is terminated by the Employer in conjunction with, or by
reason of, a “Change in Control” (as defined in subparagraph 1.3 above then the Executive shall be
entitled to be paid the Applicable Percentage of the Executive Benefits, as defined above, in
substantially equal monthly installments on the first day of each month, beginning with the month
following the month in which the Change in Control has occurred, as requested in writing by the
Executive and delivered to the Bank or its successor thirty (30) days prior to the commencement of
installment payments; provided, however, that in the event the Executive does not request a
commencement date as specified, such installments shall be paid on the first day of each month,
beginning with the month following the month in which the Executive attains fifty-five (55) years
of age. The installments shall be payable for a period of one hundred and eighty (180) months.

6. IRS Section 280G Issues.  If all or any portion of the amounts payable to the Executive
under this Agreement, either alone or together with other payments which the Executive has the
right to receive from the Bank, constitute “excess parachute payments” within the meaning of
Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), that are subject to the
excise tax imposed by Section 4999 of the Code (or similar tax and/or assessment), Executive shall
be responsible for the payment of such excise tax and Bank (and its successor) shall be responsible
for any loss of deductibility related thereto; provided, however, that Bank and Executive shall
cooperate with each other and use all reasonable efforts to minimize to the fullest extent possible
the amount of excise tax imposed by Section 4999 of the Code. If, at a later date, it is
determined (pursuant to final regulations or published rulings of the Internal Revenue Service,
final judgment of a court of competent jurisdiction, or otherwise) that the amount of excise taxes
payable by the Executive is greater than the amount initially so determined, then the Executive
shall pay an amount equal to the sum of such additional excise taxes and any interest, fines and
penalties resulting from such underpayment. The determination of the amount of any such excise
taxes shall be made by the independent accounting firm employed by the Bank immediately prior to
the change in control or such other independent accounting firm or advisor as may be mutually
agreeable to Bank and Executive in the exercise of their reasonable good faith judgment.

7. Right To Determine Funding Methods. The Bank reserves the right to determine, in its
sole and absolute discretion, whether, to what extent and by what method, if any, to provide for

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the payment of the amounts which may be payable to the Executive, under the terms of this
Agreement. In the event that the Bank elects to fund this Agreement, in whole or in part, through
the use of life insurance or annuities, or both, the Bank shall determine the ownership and
beneficial interests of any such policy of life insurance or annuity. The Bank further reserves
the right, in its sole and absolute discretion, to terminate any such policy, and any other devise
used to fund its obligations under this Agreement, at any time, in whole or in part. Consistent
with Paragraph 9 below, the Executive shall have no right, title or interest in or to any funding
source or amount utilized by the Bank pursuant to this Agreement, and any such funding source or
amount shall not constitute security for the performance of the Bank’s obligations pursuant to this
Agreement. In connection with the foregoing, the Executive agrees to execute such documents and
undergo such medical examinations or tests which the Bank may request and which may be reasonably
necessary to facilitate any funding for this Agreement including, without limitation, the Bank’s
acquisition of any policy of insurance or annuity.

8. Claims Procedure. The Bank shall, but only to the extent necessary to comply with
ERISA, be designated as the named fiduciary under this Agreement and shall have authority to
control and manage the operation and administration of this Agreement. Consistent therewith, the
Bank shall make all determinations as to the rights to benefits under this Agreement. Any decision
by the Bank denying a claim by the Executive for benefits under this Agreement shall be stated in
writing and delivered or mailed, via registered or certified mail, to the Executive, the
Executive’s spouse or the Executive’s beneficiaries, as the case may be. Such decision shall set
forth the specific reasons for the denial of a claim. In addition, the Bank shall provide the
Executive, or as applicable, the Executive’s spouse or beneficiaries, with a reasonable opportunity
for a full and fair review of the decision denying such claim.

9. Status as an Unsecured General Creditor. Notwithstanding anything contained herein to
the contrary: (i) the Executive shall have no legal or equitable rights, interests or claims in or
to any specific property or assets of the Bank as a result of this Agreement; (ii) none of the
Bank’s assets shall be held in or under any trust for the benefit of the Executive or held in any
way as security for the fulfillment of the obligations of the Bank under this Agreement; (iii) all
of the Bank’s assets shall be and remain the general unpledged and unrestricted assets of the Bank;
(iv) the Bank’s obligation under this Agreement shall be that of an unfunded and unsecured promise
by the Bank to pay money in the future; and (v) the Executive shall be an unsecured general
creditor with respect to any benefits which may be payable under the terms of this Agreement.

Notwithstanding subparagraphs (i) through (v) above, the Bank and the Executive acknowledge and
agree that, in the event of a Change in Control, upon request of the Executive, or in the Bank’s
discretion if the Executive does not so request and the Bank nonetheless deems it appropriate, the
Bank shall establish, not later than the effective date of the Change in Control, a
Rabbi Trust or multiple Rabbi Trusts (the “Trust” or “Trusts”) upon such terms and conditions as
the Bank, in its sole discretion, deems appropriate and in compliance with applicable provisions of
the Code, in order to permit the Bank to make contributions and/or transfer assets to the Trust or
Trusts to discharge its obligations pursuant to this Agreement. The principal of the Trust or
Trusts and any earnings thereon shall be held separate and apart from other funds of the Bank to be
used exclusively for discharge of the Bank’s obligations pursuant to this Agreement and shall

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continue to be subject to the claims of the Bank’s general creditors until paid to the Executive in
such manner and at such times as specified in this Agreement.

10. Discretion of Board to Accelerate Payout. Notwithstanding any of the other provisions
of this Agreement, the Board of Directors of the Bank or the Holding Company may, if determined in
its sole and absolute discretion to be appropriate, accelerate the payment of the amounts due under
the terms of this Agreement, provided that the Executive: (i) consents to the revised payout terms
determined appropriate by the Board of Directors; and (ii) does not negotiate or in any way
influence the terms of proposed altered/accelerated payout (said decision to be made solely by the
Board of Directors and offered to the Executive on a “take it or leave it basis”).

11. Miscellaneous.

     11.1. Opportunity To Consult With Independent Advisors. The Executive acknowledges
that he has been afforded the opportunity to consult with independent advisors of his choosing
including, without limitation, accountants or tax advisors and counsel regarding both the benefits
granted to him under the terms of this Agreement and the (i) terms and conditions which may affect
the Executive’s right to these benefits and (ii) personal tax effects of such benefits including,
without limitation, the effects of any federal or state taxes, Section 280G of the Code, and any
other taxes, costs, expenses or liabilities whatsoever related to such benefits, which in any of
the foregoing instances the Executive acknowledges and agrees shall be the sole responsibility of
the Executive notwithstanding any other term or provision of this Agreement. The Executive further
acknowledges and agrees that the Bank shall have no liability whatsoever related to any such
personal tax effects or other personal costs, expenses, or liabilities applicable to the Executive
and further specifically waives any right for himself or herself, and his or her heirs,
beneficiaries, legal representatives, agents, successor and assign to claim or assert liability on
the part of the Bank related to the matters described above in this subparagraph 11.1. The
Executive further acknowledges that he has read, understands and consents to all of the terms and
conditions of this Agreement, and that he enters into this Agreement with a full understanding of
its terms and conditions.

     11.2. Arbitration of Disputes. All claims, disputes and other matters in question
arising out of or relating to this Agreement or the breach or interpretation thereof, other than
those matters which are to be determined by the Bank in its sole and absolute discretion, shall be
resolved by binding arbitration before a representative member, selected by the mutual agreement of
the parties, of the Judicial Arbitration and Mediation Services, Inc. (“JAMS”), located in San
Diego, California. In the event JAMS is unable or unwilling to conduct the arbitration provided
for under the terms of this Paragraph, or has discontinued its business, the parties agree that a
representative member, selected by the mutual agreement of the parties of the American Arbitration
Association (“AAA”) located in San Diego, California, shall conduct the binding arbitration
referred to in this Paragraph. Notice of the demand for arbitration shall be filed in writing with
the other party to this Agreement and with JAMS (or AAA, if necessary). In no event shall the
demand for arbitration be made after the date when institution of legal or equitable proceedings
based on such claim, dispute or other matter in question would be barred by the applicable statute
of limitations. The arbitration shall be subject to such rules of

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procedure used or established by JAMS, or if there are none, the rules of procedure used or
established by AAA. Any award rendered by JAMS or AAA shall be final and binding upon the parties,
and as applicable, their respective heirs, beneficiaries, legal representatives, agents, successors
and assigns, and may be entered in any court having jurisdiction thereof. The obligation of the
parties to arbitrate pursuant to this clause shall be specifically enforceable in accordance with,
and shall be conducted consistently with, the provisions of Title 9 of Part 3 of the California
Code of Civil Procedure. Any arbitration hereunder shall be conducted in San Diego, California,
unless otherwise agreed to by the parties.

     11.3. Attorneys’ Fees. In the event of any arbitration or litigation concerning any
controversy, claim or dispute between the parties hereto, arising out of or relating to this
Agreement or the breach hereof, or the interpretation hereof, the prevailing party shall be
entitled to recover from the losing party reasonable expenses, attorneys’ fees and costs incurred
in connection therewith or in the enforcement or collection of any judgment or award rendered
therein. The “prevailing party” means the party determined by the arbitrator(s) or court, as the
case may be, to have most nearly prevailed, even if such party did not prevail in all matters, not
necessarily the one in whose favor a judgment is rendered.

     11.4. Notice. Any notice required or permitted of either the Executive or the Bank
under this Agreement shall be deemed to have been duly given, if by personal delivery, upon the
date received by the party or its authorized representative; if by facsimile, upon transmission to
a telephone number previously provided by the party to whom the facsimile is transmitted as
reflected in the records of the party transmitting the facsimile and upon reasonable confirmation
of such transmission; and if by mail, on the third (3rd) day after mailing via U.S.
first class mail, registered or certified, postage prepaid and return receipt requested, and
addressed to the party at the address given below for the receipt of notices, or such changed
address as may be requested in writing by a party.

	 	 	 	 	 
	

	 	If to the Bank:
	 	Southwest Community Bank
	

	 	 	 	5810 El Camino Real
	

	 	 	 	Suite D
	

	 	 	 	Carlsbad, CA 92013
	

	 	 	 	Attention: Chief Executive Officer
	 
	 	 	 	 
	

	 	If to the Executive:
	 	Alan J. Lane
	

	 	 	 	41090 Avenida Verde
	

	 	 	 	Temecula, CA 92591

	 	 	 
	

	 	and a copy to:
	

	 	Lawrence S. Branton, Esq.
	

	 	Branton & Wilson, APC
	

	 	701 B St., Suite 1255
	

	 	San Diego, CA 92101-8187

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     11.5. Assignment. The Executive shall have no power or right to transfer, assign,
anticipate, hypothecate, modify or otherwise encumber any part or all of the amounts payable
hereunder, nor, prior to payment in accordance with the terms of this Agreement, shall any portion
of such amounts be: (i) subject to seizure by any creditor of the Executive, by a proceeding at
law or in equity, for the payment of any debts, judgments, alimony or separate maintenance
obligations which may be owed by the Executive; or (ii) transferable by operation of law in the
event of bankruptcy, insolvency or otherwise. Any such attempted assignment or transfer shall be
void.

     11.6. Binding Effect/Merger or Reorganization. This Agreement shall be binding upon
and inure to the benefit of the Executive and the Bank. Accordingly, the Bank shall not merge or
consolidate into or with another corporation, or reorganize or sell substantially all of its assets
to another corporation, firm or person, unless and until such succeeding or continuing corporation,
firm or person agrees to assume and discharge the obligations of the Bank under this Agreement. In
the alternative, the Holding Company may agree to assume and discharge the obligation of the Bank
under this Agreement. Upon the occurrence of such event, the term “Bank” as used in this Agreement
shall be deemed to refer to such surviving or successor firm, person, entity or corporation, or the
Holding Company, as the case may be.

     11.7. Nonwaiver. The failure of either party to enforce at any time or for any period
of time any one or more of the terms or conditions of this Agreement shall not be a waiver of such
term(s) or condition(s) or of that party’s right thereafter to enforce each and every term and
condition of this Agreement.

     11.8. Partial Invalidity. If any terms, provision, covenant, or condition of this
Agreement is determined by an arbitrator or a court, as the case may be, to be invalid, void, or
unenforceable, such determination shall not render any other term, provision, covenant or condition
invalid, void or unenforceable, and the Agreement shall remain in full force and effect
notwithstanding such partial invalidity.

     11.9. Entire Agreement. This Agreement supersedes any and all other agreements,
either oral or in writing, between the parties with respect to the subject matter of this Agreement
and contains all of the covenants and agreements between the parties with respect thereto. Each
party to this Agreement acknowledges that no other representations, inducements, promises, or
agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any
party, which are not set forth herein, and that no other agreement, statement, or promise not
contained in this Agreement shall be valid or binding on either party.

     11.10. Modifications. Any modification of this Agreement shall be effective only if
it is in writing and signed by each party or such party’s authorized representative.

     11.11. Paragraph Headings. The paragraph headings used in this Agreement are included
solely for the convenience of the parties and shall not affect or be used in connection with the
interpretation of this Agreement.

10

 

     11.12. No Strict Construction. The language used in this Agreement shall be deemed to
be the language chosen by the parties hereto to express their mutual intent, and no rule of strict
construction will be applied against any person.

     11.13. Governing Law. The laws of the State of California, other than those laws
denominated choice of law rules, and where applicable, the rules and regulations of the Board of
Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the
Comptroller of the Currency, or any other regulatory agency or governmental authority having
jurisdiction over the Bank or its holding company, shall govern the validity, interpretation,
construction and effect of this Agreement.

     IN WITNESS WHEREOF, the Bank and the Executive have executed this Agreement on the date first
above-written in the City of Carlsbad, California.

	 	 	 	 	 	 	 	 	 
	SOUTHWEST COMMUNITY BANK	 	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Frank J. Mercardante

	 	 
	 	/s/ Alan J. Lane

	 	 
	

	 	Frank J. Mercardante
	 	 	 	Alan J. Lane	 	 
	

	 	Chief Executive Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	/s/ Barbara S. Cavalluzzi
	 	 	 	/s/ Paul M. Weil	 	 
	

	 	

	 	 
	 	

	 	 
	

	 	Witness
	 	 	 	Witness	 	 

11

 

SCHEDULE A

	 	 	 	 	 
	CALENDAR YEAR	 	APPLICABLE PERCENTAGE
	Inception of service to 04/19/2005:

	 	 	7	%
	 
	 	 	 	 
	04/20/2005 to 04/19/2006:

	 	 	14	%
	 
	 	 	 	 
	04/20/2006 to 04/19/2007:

	 	 	21	%
	 
	 	 	 	 
	04/20/2007 to 04/19/2008:

	 	 	28	%
	 
	 	 	 	 
	04/20/2008 to 04/19/2009:

	 	 	35	%
	 
	 	 	 	 
	04/20/2009 to 04/19/2010:

	 	 	42	%
	 
	 	 	 	 
	04/20/2010 to 04/19/2011:

	 	 	49	%
	 
	 	 	 	 
	04/20/2011 to 04/19/2012:

	 	 	56	%
	 
	 	 	 	 
	04/20/2012 to 04/19/2013:

	 	 	63	%
	 
	 	 	 	 
	04/20/2013 to 04/19/2014:

	 	 	70	%
	 
	 	 	 	 
	04/20/2014 to 04/19/2015:

	 	 	77	%
	 
	 	 	 	 
	04/20/2015 to 04/19/2016:

	 	 	85	%
	 
	 	 	 	 
	04/20/2016 to 04/19/2017:

	 	 	92	%
	 
	 	 	 	 
	04/20/2017 and beyond:

	 	 	100	%

Beginning in the year 2006, the Executive shall be entitled to the Applicable Percentage
increase for each calendar year, during which he is employed by the Bank for at least six
months.

1

 

SCHEDULE B

EXECUTIVE BENEFITS

Pursuant to the terms of this Agreement, The Bank shall pay to the Executive One Hundred Thousand
Dollars ($100,000) per year, for a period of fifteen (15) years (180 months), payable in twelve
equal monthly installments. The amount of Executive Benefits payable under the Agreement shall be
adjusted each year from the date of commencement of payments of the Executive Benefits until the
death of the Executive as follows:

     a. The Executive Benefits shall be increased at the rate of three percent (3%) compounded
each year.

2

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