Document:

Exhibit

10.59

 

SALARY

CONTINUATION AGREEMENT

 

This Agreement is made

and entered into this 1st day of June, 2002, by and between Western Sierra

National Bank, a national banking association (the “Employer”), and Phillip S.

Wood, an individual residing in the State of California (hereinafter referred

to as the “Executive”).

 

RECITALS

 

WHEREAS, the Executive is

an employee of the Employer and is serving as its Senior Vice President and

Chief Administrative Officer;

 

WHEREAS, the Executive’s

experience and knowledge of the affairs of the Employer and the banking

industry are extensive and valuable;

 

WHEREAS, it is deemed to

be in the best interests of the Employer to provide the Executive with certain

salary continuation benefits, on the terms and conditions set forth herein, in

order to reasonably induce the Executive to remain in the Employer’s

employment; and

 

WHEREAS, the Executive

and the Employer wish to specify in writing the terms and conditions upon which

this additional compensatory incentive will be provided to the Executive, or to

the Executive’s spouse or the Executive’s designated benefi­ciaries, as the

case may be;

 

NOW, THEREFORE, in

consideration of the services to be performed in the future, as well as the

mutual promises and covenants contained herein, the Executive and the Employer

agree as follows:

 

AGREEMENT

 

1.                                      Terms and Definitions.

 

1.1.                            Administrator.  The Employer shall be the “Administrator”

and, solely for the purposes of ERISA, the “fiduciary” of this Agreement where

a fiduciary is required by ERISA.

 

1.2.                            Annual Benefit.  The term “Annual Benefit” shall mean an

annual sum of thirty thousand dollars ($30,000) multiplied by the Applicable

Percentage (defined below) and then reduced to the extent required: (i) under

the other provisions of this Agreement; (ii) by reason of the lawful order of

any regulatory agency or body having jurisdiction over the Employer; and (iii)

in order for the Employer to properly comply with any and all applicable state

and federal laws, including, but not limited to, income, employment and

disability income tax laws (eg., FICA, FUTA, SDI).

 

1.3.  Applicable

Percentage.  The term “Applicable Percentage” shall mean

that percentage listed on Schedule “A” attached hereto which is adjacent to the

number of complete years (with a “year” being the performance of personal

services for or on behalf of the Employer as an employee for a period of 365

days) which have elapsed starting from the Effective Date of this Agreement and

ending on the date the Executive’s employment is terminated for purposes of

this Agreement.

 

1.4.                            Beneficiary.  The term “beneficiary” or “designated beneficiary” shall mean the

person or persons whom the Executive shall designate in a valid Beneficiary

Designation, a copy of which is attached hereto as Exhibit “B”, to receive the

benefits provided hereunder.  A

Beneficiary Designation shall be valid only if it is in the form attached

hereto and made a part hereof and is received by the Administrator prior to the

Executive’s death.

 

1.5.                            The Code.  The “Code” shall mean the Internal Revenue Code of 1986, as

amended (the “Code”).

 

 

1.6.                            Disability/Disabled.  The term “Disability” or “Disabled” shall

have the same meaning given such term in the principal disability insurance

policy covering the Executive, which is incorporated herein by reference.  In the event the Executive is not covered by

a disability policy containing a definition of “Disability” or “Disabled,”

these terms shall mean an illness or incapacity which, having continued for a

period of one hundred and eighty (180) consecutive days, prevents the Executive

from adequately performing the Executive’s regular employment duties.  The determination of whether the Executive

is Disabled shall be made by an independent physician selected by mutual

agreement of the parties.

 

1.7.                            Effective Date.  The term “Effective Date” shall mean May 1

2002.

 

1.8.                            ERISA. 

The term “ERISA” shall mean the Employee Retirement Income Security Act

of 1974, as amended.

 

1.9.                            Plan Year.  The term “Plan Year” shall mean the Employer’s calendar year.

 

1.10.                     Retirement.  The term “Retirement” or “Retires” shall refer to the date on

which the Executive attains the age of at least sixty-six (66) and acknowledges

in writing to the Employer to be the last day he will provide any significant

personal services, whether as an employee, director or independent consultant

or contractor, to the Employer.  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.

 

1.11                        Sale of Business.  The term “Sale of Business” shall mean any

(i) merger, consolidation or reorganization of the Employer’s parent or Western

Sierra Bancorp (“Parent”) in which (A) the Parent does not survive or (B) the

Parent survives with a resulting change in beneficial ownership of the Parent

of more than 50% of the voting shares of the Parent, (ii) sale of more than 50%

of the beneficial ownership of the voting shares of the Parent to any person or

group of persons acting in concert, or (iii) transfer or sale of more than 50%

of the total market value of the assets of the Parent as reflected in the most

recent published balance sheet of the Parent to another corporation that is not

a wholly-owned subsidiary of the Parent. 

Notwithstanding anything to the contrary, the merger of Employer with

the Parent or any subsidiary of the Parent shall not be deemed a “Sale of

Business.”

 

1.12.                     Surviving Spouse.  The term “Surviving Spouse” shall mean the

person, if any, who shall be legally married to the Executive on the date of

the Executive’s death.

 

1.13.                     Termination for Cause.  The term “Termination for Cause” shall mean

the termination of the Executive by the Employer upon the occurrence of any of

the following events:

 

(i) the Executive

is convicted of illegal activity by a court of competent jurisdiction or pleads

guilty to or nolo contendere to illegal activity, which activity materially

adversely affects the  Employer’s reputation

in the community or which evidences the lack of the Executive’s fitness or

ability to perform the Executive’s duty as determined by the Board of Directors

in good faith;

 

(ii) the Executive

has committed any illegal or dishonest act which would cause termination of

coverage under the Employer’s Bankers’ Blanket Bond as to the Executive, as

distinguished from termination of coverage as to the Employer as a whole;

 

(iii) the

Executive materially fails to perform, or habitually neglects, the Executive’s

duties or commits a material act of malfeasance or misfeasance in connection

therewith;

 

(iv) an action is

commenced by any bank regulatory agency having jurisdiction, to remove or

suspend the Executive from office, or a cease and desist order under 12 U.S.C.

1818(b) or any similar Federal or state statute is issued against the Executive

or the Employer which calls for the Executive’s suspension or removal from

office;

 

(v) deliberate or

repeated disregard of the policies and rules of the Employer as adopted by the

Employer’s board of directors;

 

(vi) unauthorized

use or disclosure of any of the trade secrets or confidential information of

the Employer or Parent;

 

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(vii) competition

with the Employer or the Parent or any of Parent’s subsidiaries (collectively

referred to “WSB Group”), inducement of any customer of any entity in the WSB

Group to breach a contract with any entity in the WSB Group or inducement of

any employee or agent of any entity in the WSB Group to terminate his or her

employment or agency relationship with such entity in the WSB Group;

 

(vii) gross

negligence adversely impacting the Employer or the Parent; or

 

(viii) willful

breach of this Agreement or any other willful misconduct.

 

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 Employer, this Agreement shall not be deemed to constitute a contract of employment

between the Executive and the Employer nor shall any provision of this

Agreement restrict or expand the right of the Employer 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 Employer, 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

Employer’s obligations hereunder) shall stand separate and apart and shall have

no effect upon, nor 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 Employer 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.

 

3.                                      Payments Upon or After Retirement.

 

3.1.                            Payments Upon Retirement.  If the Executive shall remain in the

continuous employment of the Employer until Retirement, the Executive shall be

entitled to be paid the Annual Benefit, with the Applicable Percent equal to

100% for a period of fifteen (15) years, in one hundred eighty (180) equal

monthly installments, with each installment to be paid 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 in writing by

the Executive and the Employer in advance of said Retirement Date.

 

3.2.                            Payments in the Event of Death After Retirement.  The Employer and Executive  agree that if the Executive Retires, but shall

die before receiving all of the one hundred eighty (180) monthly payments

described in paragraph 3.1 above, the Employer will make the remaining monthly

payments, undiminished and on the same schedule as if the Executive had not

died, to the Executive’s designated beneficiary.  If a valid Beneficiary Designation is not in effect, then the

remaining amounts due to the Executive under the term of this Agreement shall

be paid to the Executive’s Surviving Spouse. 

If the Executive leaves no Surviving Spouse, the remaining amounts due

to the Executive under the terms of this Agreement shall be paid to the duly

qualified personal representative, executor or administrator of the Executive’s

estate.

 

4.                                      Payments in the Event Death or Disability Occurs Prior

to Retirement.

 

4.1.                            Payments in the Event of Death Prior to Retirement.  In the event the Executive should die while

actively employed by the Employer at any time after the Effective Date of this

Agreement, but prior to Retirement, the Employer agrees to pay the Annual

Benefit with the Applicable Percentage equal to 100% for a period of fifteen

(15) years in one hundred eighty (180) equal monthly installments, with each

installment to be paid on the first of each month beginning with the month

following the Executive’s death, to the Executive’s designated

beneficiary.  If a valid Beneficiary

Designation is not in effect, then the amounts due to the Executive under the

terms of this Agreement shall be paid to the Executive’s Surviving Spouse.  If the Executive leaves no Surviving Spouse,

the amounts due to the Executive under the terms of this Agreement shall be

paid to the duly qualified personal representative, executor or administrator

of the Executive’s estate.

 

4.2.                            Payments in the Event of Disability Prior to

Retirement.  In the event

the Executive becomes Disabled while actively employed by the Employer at any

time after the Effective Date of this Agreement and

 

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remains Disabled at the

earliest applicable commencement date of payments pursuant to this Paragraph

4.2, the Executive shall: (i) continue to be treated during such period of

Disability as being gainfully employed but not actively employed by the

Employer and shall not have any applicable years of service added during the

time of disability for the purpose of determining the Annual Benefit; and (ii)

be entitled to be paid the Annual Benefit, with the Applicable Percentage as

set forth in Schedule A and as determined by the applicable years of service at

the time of disability, for fifteen (15) years in one hundred eighty (180)

equal monthly installments, with each installment to be paid on the first day

of each month, beginning with the month following the earlier of (1) the month

in which the Executive attains sixty-six (66) years of age; or (2) the date

upon which the Executive is no longer entitled to receive Disability benefits

under the Executive’s principal Disability insurance policy and does not, at

such time, return to and thereafter fulfill the responsibilities associated

with the employment position held with the Employer prior to becoming Disabled

by reason of such Disability continuing.

 

The Employer agrees that

if the Executive shall die before receiving all of the one hundred eighty (180)

monthly payments described in this paragraph 4.2, the Employer will make the

remaining monthly payments to Executive’s designated beneficiary.  If a valid beneficiary designation is not in

effect, then the remaining payments due to Executive shall be paid to

Executive’s Surviving Spouse.  If the

Executive leaves no Surviving Spouse, the remaining amounts due to Executive

shall be paid to the duly qualified personal representative, executor, or

administrator of the Executive’s estate.

 

If the Executive dies

after becoming Disabled and prior to being paid benefits pursuant to the prior

paragraph, the Employer will pay to Executive’s designated beneficiary the

Annual Benefit, with the Applicable Percentage as set forth in Schedule A and

as determined by the applicable years of service at the time of the Disability,

for a period of (15) years in equal monthly installments, with each installment

to be paid on the first day of each month, beginning with the month following

the date of Executive’s death.  If a valid

Beneficiary Designation is not in place, then the payments due to the Executive

under this paragraph shall be paid to the Executive’s Surviving Spouse.  If Executive leaves no Surviving Spouse, the

payments due to Executive under this paragraph shall be paid to the duly

qualified personal representative, executor, or administrator of the

Executive’s estate.

 

5.                                      Payments in the Event Employment is Terminated Other

than by Death, Disability, Termination for Cause or Retirement.

 

As indicated in Paragraph

2 above, the Employer 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 for any reason, including

voluntary termination by the Executive, but other than by reason of (i)

Disability except as provided in Paragraph 4.2, (ii) death, (iii) Termination

for Cause, (iv) Retirement or (v) termination for Sale of Business, the

Executive or his legal representative shall be entitled to be paid the Annual

Benefit, with the Applicable Percentage as set forth in Schedule A and as

determined by the applicable years of service at the time of termination of

employment with the Employer, for a period of 15 years in 180 equal monthly

installments, with each installment to be paid on the first day of each month,

beginning with the month following the month in which the Executive terminates

employment and attains age 66, provided however in the event the Executive dies

before receiving all of the 180 payments, the Employer agrees to make the

payments, undiminished and on the same schedule as if the Executive had not

died, to the Executive’s designated beneficiary and if a valid Beneficiary

Designation is not in place, then the payments shall be paid to the Executive’s

Surviving Spouse, and if there is neither a valid Beneficiary Designation nor

Surviving Spouse, the payments shall be paid to the duly qualified personal

representative, executor, or administrator of the Executive’s estate.  In the event Executive is entitled to

benefit payments pursuant to this Paragraph 5 and dies prior to age 66, then

such benefits, undiminished and on the same schedule as if the Executive had

not died, are to be paid beginning with the month following the Executive’s

death to Executive’s designated beneficiary and if a valid Beneficiary

Designation is not in place, then the payments shall be paid to the Executive’s

Surviving Spouse, and if there is neither a valid Beneficiary Designation nor

Surviving Spouse, the payments shall be paid to the duly qualified personal

representative, executor, or administrator of the Executive’s estate.

 

Notwithstanding anything

to the contrary, the Executive shall not be entitled to be paid any benefit

pursuant to the prior paragraph if Executive voluntarily terminates employment

with the Employer prior to the end of the second anniversary of the Effective

Date.

 

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5.1                               Termination in a Sale of Business.  In the event there is a Sale of Business and

the Executive does not have a written agreement in place for continued

employment for a term of at least two years beginning from the time of the

completion of the Sale of Business, in a position at least equivalent to

Executive’s position and at least at the same then base salary of Executive,

then the Executive shall be entitled to be paid in cash in a lump sum on the

date of the consummation of the Sale of Business, the present value of the

aggregate amount of the Annual Benefit, with the Applicable Percentage as set

forth in Schedule A and as determined by the applicable years of service of the

Executive at the time of the consummation of the Sale of Business plus an

additional three years of service, being paid for a period of fifteen (15)

years in one hundred eighty (180) monthly installments beginning on the first

day of the month following the consummation of the Sale of Business.  The present value of the amount shall be

determined using the long term monthly Applicable Federal Rate at the time of

the consummation of the Sale of Business.

 

Notwithstanding the prior

paragraph, no payment shall be made to Executive pursuant to this Agreement to

the extent that such payment when aggregated with all other payments considered

for purposes of calculating a parachute payment results in an excess parachute

payment as defined under Section 280G of the Code.

 

If the Internal Revenue

Service or any other tax authority makes any claim, demand or assessment in any

form based directly or indirectly, in whole or in part, on the allegation that

any payment under this Agreement and/or any other payment by Employer to or for

the benefit of the Executive at any time constitutes a “parachute payment”

under Section 280G of the Code or any similar or successor provision of federal

or state law, Executive agrees that Employer, its successors and assigns shall

have no obligation, whether for defense, indemnification, reimbursement or

otherwise, with respect to such claim, demand or assessment.

 

Notwithstanding anything

to the contrary, no benefit payments provided in this Paragraph 5.1 shall be

made to Executive, Executive’s designated beneficiary, Surviving Spouse or

Executive’s estate if the Executive is entitled to benefits provided by any

other Paragraph of this Agreement.

 

6.                                      Termination for Cause.

 

Notwithstanding anything

to the contrary, in the event the termination of employment of the Executive is

Termination for Cause as defined in Paragraph 1.13, the Executive shall not be

entitled to any benefits pursuant to this Agreement.

 

7.                                      No Ownership Rights to the Employer’s Assets.

 

The Employer reserves the

right to determine, in its sole and absolute discretion, whether, to what

extent and by what method, if any, to provide for the payment of the amounts

which may be payable to the Executive, the Executive’s spouse or the

Executive’s beneficiaries under the terms of this Agreement (“Benefits”).  The rights of the Executive or any

beneficiary of the Executive under this Agreement shall be solely those of an

unsecured creditor of the Employer.

 

In the event that the

Employer, in its sole and absolute discretion, elects to acquire an insurance

policy, an annuity or any other asset to recoup the costs or any portion

thereof of the Benefits, then such insurance policy, annuity or other asset

shall not be deemed to be held under any trust for the benefit of the Executive

or his beneficiaries or to be security for the performance of the obligations

of the Employer under this Agreement, but shall be, and remain, a general

unpledged, unrestricted asset of the Employer. 

The Executive and his beneficiaries shall have no rights whatsoever with

respect to, or any claim against, any such insurance policy, annuity or other

asset.  In connection with the Employer

electing to acquire any such insurance policy or annuity, the Executive agrees

to cooperate to facilitate such acquisition, and pursuant thereto shall execute

such documents and undergo such medical examinations or tests as the Employer

may reasonably request.

 

8.                                      Claims Procedure.

 

The Employer 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 Employer shall make all determinations

as to the rights to benefits under this Agreement.  Any decision by the Employer denying a claim by the Executive, the

Executive’s spouse, or the Executive’s bene­ficiary 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

beneficiary, as the case may

 

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be.  Such decision shall set forth the specific

reasons for the denial of a claim.  In

addition, the Employer shall provide the Executive, the Executive’s spouse or

the Executive’s beneficiary with a reasonable opportunity for a full and fair

review of the decision denying such claim.

 

9.                                      Status of an Unsecured General Creditor.

 

Notwithstand­ing anything

contained herein to the contrary: (i) neither the Executive, the Executive’s

spouse nor the Executive’s bene­ficiary shall have any legal or equitable

rights, interests or claims in or to any specific property or assets of the

Employer; (ii) none of the Employer’s assets shall be held in or under any

trust for the benefit of the Executive, the Executive’s spouse or the

Executive’s beneficiary or held in any way as security for the fulfillment of

the obligations of the Employer under this Agreement; (iii) all of the

Employer’s assets shall be and remain the general unpledged and unrestricted

assets of the Employer; (iv) the Employer’s obligation under this Agreement

shall be that of an unfunded and unsecured promise by the Employer to pay money

in the future; and (v) the Executive, the Executive’s spouse and the

Executive’s beneficiary shall be unsecured general creditors with respect to

any benefits which may be payable under the terms of this Agreement.

 

10.                               Covenant Not to Interfere.

 

The Executive agrees not

to take any action which prevents the Employer from collecting the proceeds of

any life insurance policy which the Employer may happen to own at the time of

the Executive’s death and of which the Employer is the designated beneficiary.

 

11.                               Miscellaneous.

 

11.1.  Opportunity to Consult with Independent

Counsel.  The

Executive acknowledges that he has been afforded the opportunity to consult

with independent counsel of his choosing regarding both the benefits granted to

him under the terms of this Agreement and the terms and conditions which may

affect the Executive’s right to these benefits.  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 Employer 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 the location nearest to Cameron Park.  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 or nearest to Cameron Park., 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 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 the Sacramento area,

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

 

6

 

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 Employer 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 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 Employer:

 

Western

Sierra National Bank

4080

Plaza Goldorado Circle

Cameron

Park, California 95682

Attention:

Charles Bacchi

Chairman

of the Board

 

If

to the Executive:

 

Phillip

S. Wood

Home

address

Folsom,

California

 

11.5.  Assignment.  Neither the Executive, the Executive’s

spouse, nor any other beneficiary under this Agreement shall have any power or

right to transfer, assign, 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 any such beneficiary, 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, the Executive’s

spouse, or any designated beneficiary; or (ii) transferable by operation of law

in the event of bankruptcy, insolvency or otherwise.  Any such attempted assignment or transfer shall be void and shall

terminate this Agreement, and the Employer shall thereupon have no further

liability hereunder.

 

11.6.  Binding Effect/Merger or Reorganization.  This Agreement shall be binding upon and

inure to the benefit of the Executive and the Employer and, as applicable,

their respective heirs, beneficiaries, legal representatives, agents,

successors and assigns.  Accordingly,

the Employer 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 Employer

under this Agreement.  Upon the

occurrence of such event, the term “Employer” as used in this Agreement shall

be deemed to refer to such surviving or suc­cessor firm, person, entity or

corporation.

 

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 term, 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.

 

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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.

 

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 Office of the Comptroller of the Currency or any

other regulatory agency or governmental authority having jurisdiction over the

Employer, shall govern the validity, interpretation, construction and effect of

this Agreement.

 

12.  Payment of Benefits Subject to Executive

Not Competing with Employer

 

Notwithstanding anything

to the contrary, the benefits payable to Executive pursuant to this Agreement

are conditioned upon the Executive not working as an employee, independent

contractor or consultant of or for a financial institution located within a 35

mile radius of the head office of Employer for a period of one year after

Executive terminates employment with Employer. 

In the event Executive breaches such condition, Employer shall

immediately terminate any and all remaining payments for benefits due Executive

or Executive’s beneficiaries pursuant to this Agreement, and Employer shall

have no liability to Executive or Executive’s beneficiaries for any benefits or

payments pursuant to this Agreement.  Notwithstanding the foregoing, in

the event of a Sale of Business, this paragraph shall be of no force or effect.

 

13.  Right of the Employer to Pay a Lump Sum.

 

Unless expressly provided

for herein, the Employer shall at its sole discretion have the right to pay in

a lump sum the then present value using the long term monthly Applicable

Federal Rate at such time of all payments vested and due the Executive or the

Executive’s beneficiary pursuant to this Agreement.

 

IN WITNESS WHEREOF, the

Employer and the Executive have executed this Agreement on the date first

above-written in the City of Cameron Park, California.

 

	

  Western

  Sierra National Bank

  	

  Phillip

  S. Wood

  
	

  “Employer”

  	

  “Executive”

  
	

   

  	

   

  
	

   

  	

   

  
	

  /s/ Charles Bacchi

  	

   

  	

  /s/ Phillip S. Wood

  	

   

  
	

  Charles

  Bacchi

  	

   

  
	

  Chairman

  of the Board

  	

   

  
				

 

8

 

SCHEDULE

A

 

	

  NUMBER OF COMPLETE

  YEARS OF SERVICE

  	

   

  	

  APPLICABLE

  PERCENTAGE

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  1

  	

   

  	

  12.5

  	

  %

  
	

   

  	

   

  	

   

  	

   

  
	

  2

  	

   

  	

  25.0

  	

  %

  
	

   

  	

   

  	

   

  	

   

  
	

  3

  	

   

  	

  37.5

  	

  %

  
	

   

  	

   

  	

   

  	

   

  
	

  4

  	

   

  	

  50.0

  	

  %

  
	

   

  	

   

  	

   

  	

   

  
	

  5

  	

   

  	

  62.5

  	

  %

  
	

   

  	

   

  	

   

  	

   

  
	

  6

  	

   

  	

  75.0

  	

  %

  
	

   

  	

   

  	

   

  	

   

  
	

  7

  	

   

  	

  87.5

  	

  %

  
	

   

  	

   

  	

   

  	

   

  
	

  8 or more

  	

   

  	

  100.0

  	

  %

  

 

9

 

SCHEDULE

B

 

BENEFICIARY

DESIGNATION

 

	

  TO:

  	

  The

  Administrator of

  
	

   

  	

  Western

  Sierra National Bank

  
	

   

  	

  Salary

  Continuation Agreement

  

 

Pursuant to the

provisions of my Salary Continuation Agreement with Western Sierra National

Bank permitting the designation of a beneficiary or beneficiaries by a

participant, I hereby designate the following persons and entities as primary

and secondary beneficiaries of any benefit under said Agreement payable by

reason of my death:

 

	

  NOTE:

  	

  To

  name a trust as beneficiary, please provide the name of the trustee and the

  exact date of the trust agreement.

  

 

In the

event the primary beneficiary is not the spouse of the Executive, the spouse of

the Executive will need to sign the Spousal Consent below and such signature

must be notarized.

 

Primary

Beneficiary:

 

	

  Beneficiary named

  	

   

  	

   

  	

   

  	

   

  
	

  Name

  	

   

  	

  Address

  	

   

  	

  Relationship

  

 

Secondary

(Contingent) Beneficiary:

 

	

  Secondary Beneficiary named

  	

   

  	

   

  	

   

  	

   

  
	

  Name

  	

   

  	

  Address

  	

   

  	

  Relationship

  

 

THE

RIGHT TO REVOKE OR CHANGE ANY BENEFICIARY DESIGNATION IS HEREBY RESERVED. ANY

PRIOR DESIGNATION OF PRIMARY BENEFICIARIES AND SECONDARY BENEFICIARIES IS

HEREBY REVOKED.

 

The Administrator shall

pay all sums payable under the Agreement by reason of my death to the Primary

Beneficiary, if he or she survives me, and if no Primary Beneficiary shall

survive me, then to the Secondary Beneficiary, and if no named beneficiary

survives me, then the Administrator shall pay all amounts in accordance with

the terms of my Salary Continuation Agreement. In the event that a named

beneficiary survives me and dies prior to receiving the entire benefit payable

under said Agreement then and in that event, the remaining unpaid benefit

payable according to the terms of my Salary Continuation Agreement shall be

payable to the personal representatives of the estate of said beneficiary who

survived me but died prior to receiving the total benefit provided by my Salary

Continuation Agreement.

 

	

   

  	

   

  	

  Phillip

  S. Wood

  	

   

  
	

   

  	

   

  	

  “Executive”

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Dated:

  	

  7/2/02

  	

   

  	

  /s/ Phillip S. Wood

  	

   

  
					

 

10Exhibit
10.60

 

ROSEVILLE 1ST NATIONAL
BANK

SALARY CONTINUATION AGREEMENT

 

THIS
AGREEMENT is made this 1st day January, 1998, by and between the ROSEVILLE 1ST
NATIONAL BANK, a national banking association located in Roseville, California
(the “Company”) and DOUGLAS A. NORDELL (the “Executive”).

 

INTRODUCTION

 

WITNESSETH:

 

WHEREAS, the Executive is in the employ of
the Company, serving as its Executive Vice-President; and

 

WHEREAS, the experience, knowledge of the
affairs of the Company, and reputation and contacts in the industry of the
Executive are so valuable that assurance of the Executive’s continued service
is essential for the future growth and profits of the Company, and it is in the
best interest of the Company to arrange terms of continued employment for the
Executive so as to reasonably assure the Executive’s remaining in the Company’s
employment during the Executive’s lifetime or until the age of retirement; and

 

WHEREAS, it is the desire of the Company that
the Executive’s services be retained as herein provided; and

 

WHEREAS, the Executive is willing to continue
in the employ of the Company provided the Company agrees to pay to the
Executive or the Executive’s

 

 

1

 

beneficiaries certain benefits in accordance with the terms and
conditions hereinafter set forth.

 

NOW, THEREFORE, in consideration of the
services to be performed in the future, as well as the mutual promises and
covenants herein contained, it is agreed as follows:

 

ARTICLE 1.

DEFINITIONS

 

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

 

1.1.1.                     “Change of Control” means: (i) a tender offer made and
consummated for the ownership of 50% or more of the outstanding voting securities
of the Company; (ii) a merger or consolidation of the Company with another bank
or corporation and as a result of such merger or consolidation less than 50% of
the outstanding voting securities of the surviving or resulting bank or
shareholders of the Company, other than affiliates (within the meaning of the
Securities Exchange Act of 1934) of any party to such merger or consolidation,
as the same shall have existed immediately prior to such merger or
consolidation, (iii) a sale of substantially all of the Company’s assets to
another bank or corporation which is not a wholly owned subsidiary; or (iv) an
acquisition of the Company by a person, within the meaning of Section 3(a)(9)
or of Section 13(d)(3) (as in effect on the date hereof) of the Securities
Exchange Act  of 1934, of 50% or
more of the outstanding voting securities of the Company (whether directly,
indirectly,

 

 

2

 

beneficially
or of record).  For purposes of this
agreement, ownership of voting securities shall take into account and shall
include ownership as determined by applying the provisions of Rule
13d-3(d)(l)(l) (as in effect on the date hereof) pursuant to the Securities
Exchange Act of 1934, and any merger with Western Sierra Bancorp, which is
completed before December 31, 1998, shall not constitute a change of control.

 

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

 

1.1.3.                     “Disability” means the
Executive suffering a sickness, accident or injury which, in the judgment of a
physician satisfactory to the Company, prevents the Executive from performing
substantially all of the Executive’s normal duties for the Company. As a
condition to any benefits, the Company may require the Executive to submit to
such physical or mental evaluations and tests as the Company’s Board of
Directors deems appropriate.

 

1.1.4.                     “Early  Termination” means the
Termination of Employment before Normal Retirement Age for reasons other than
death, Disability, Termination for Cause or following a Change of Control.

 

1.1.5.                     “Early Termination Date” means the month, day and year in which Early Termination occurs.

 

1.1.6.                     “Normal Retirement Age” means the Executive’s 65th birthday.

 

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

 

1.1.8.                     “Plan Year”  means a twelve-month period commencing on

 

 

3

 

January 1 and ending on December 31 of each year. The initial Plan Year
shall commence on the effective date of this Agreement.

 

1.1.9.                     “Termination for Cruse”.  See
Section 5.2.

 

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

 

ARTICLE 2.

LIFETIME BENEFITS

 

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

 

2.1.1.                     Amount of Benefit.  The annual benefit under this Section 2.1 is
$50,000.00. The Board of Directors may in its sole and absolute discretion
unilaterally increase the amount of the annual benefit amount at the end of
each Plan Year from the date of this Agreement to the Executive’s Normal
Retirement Date. If the Board of Directors increase the annual benefit, then
the Schedule A attached hereto shall also be recalculated to increase the benefits
under Article 2 of this Agreement.

 

2.1.2.                     Payment of Benefit.  The
Company shall pay the annual benefit to the Executive in 180 equal monthly
installments payable on the first day of each month commencing with the month
following the Executive’s Normal Retirement

 

 

4

 

Date and continuing for 179 additional months.

 

2.1.3.                     Benefit Increases.  Commencing on the first anniversary of the
first benefit payment, and continuing on each subsequent anniversary, the
Company’s Board of Directors, in its sole discretion, may increase the benefit.

 

2.2.                              Early Termination Benefit. 
Upon Early Termination, the Company shall pay to the Executive the
benefit described in this Section 2.2 in lieu of any other benefit under this
Agreement.

 

2.2.1.                     Amount of Benefit.  The benefit under this Section 2.2 is the
Early Termination Annual Benefit amount set forth in Schedule A for the Plan
Year ending immediately prior to the Early Termination Date except that the
Executive shall not be entitled to any benefit if he voluntarily terminates his
employment prior to the end of the second Plan Year. Any increase in the annual
benefit under section 2.1 shall require the recalculation of the Early
Termination Benefit set forth in Schedule A. The Early Termination Benefit
annual amount is determined by calculating a fixed annuity which is payable in
15 annual equal installments, crediting interest on the unpaid balance of the
Accrual Balance at an annual rate of 8.5%, compounded monthly.

 

2.2.2.                     Payment of Benefit.  The Company shall pay the annual benefit
amount to the Executive in 180 equal monthly installments payable on the first
day of each month commencing with the month following the Normal Retirement
Date and continuing for 179 additional months.

 

2.2.3.                     Benefit Increases.  Benefit payments may be increased as

 

 

5

 

provided in Section 2.1.3.

 

2.3.                              Disability Benefit.  If
the Executive terminates employment due to Disability prior to Normal
Retirement Age, the Company shall pay to the Executive the benefit described in
this Section 2.3 in lieu of any other benefit under this Agreement.

 

2.3.1.                     Amount of Benefit.  The benefit under this Section 2.3 is the
Disability Annual Benefit amount set forth in Schedule A for the Plan Year
ending immediately prior to the date in which the Termination of Employment
occurs. Any increase in the annual benefit under section 2.1 shall require the
recalculation of the Disability Annual Benefit amount set forth in Schedule A.
The Disability Annual Benefit amount is determined by calculating a fixed
annuity which is payable in 15 annual equal installments, crediting interest on
the unpaid balance of the Accrual Balance at an annual rate of 8.5%, compounded
monthly.

 

2.3.2.                     Payment of Benefit.  The Company shall pay the annual benefit
amount to the Executive in 180 equal monthly installments payable on the first
day of each month commencing with the month following the Termination of
Employment and continuing for 179 additional months.

 

2.3.3.                     Benefit Increases.  Benefit payments may be increased as
provided in Section 2.1.3.

 

2.4.                              Change of Control Benefit. 
Upon a Changes of Control, the Company shall pay to the Executive the
benefit described in this Section 2.4  in
lieu of any other benefit under this Agreement.

 

 

6

 

2.4.1.                     Amount of Benefit.
The annual benefit under this Section 2.1 is the Normal Retirement
Benefit amount described in Section 2.1.1.

 

2.4.2.                     Payment of Benefit.
The company shall pay the annual benefit to the beneficiary in 180 equal
monthly installments payable on the first day of each month commencing with the
month following the date of Executive’s termination of employment and
continuing for 179 additional months.

 

2.4.3.                     Benefit Increases.
Benefits payments may be increased as provided in Section 2.1.3.

 

ARTICLE 3.

DEATH BENEFITS

 

3.1.                              Death During Active Service.  If
the Executive dies while in the active service of the Company, the Company
shall pay to the Executive’s beneficiary the benefit described in this Section
3.1. This benefit shall be paid in lieu of the Lifetime Benefits of Article 2.

 

3.1.1.                     Amount of Benefit.  The annual benefit under this Section 3.1 is
the Normal Retirement Benefit amount described in Section 2.1.1.

 

3.1.2.                     Payment of Benefit.  The Company shall pay the annual benefit to
the beneficiary in 180 equal monthly installments payable on the first day of
each month commencing with the month following the date of Executive’s death
and continuing for 179 additional months.

 

3.2.                              Death During Benefit Period.  If
the Executive dies after the benefit payments have commenced under this
Agreement but before receiving all such

 

 

7

 

payments,
the Company shall pay the remaining benefits to the Executive’s beneficiary at
the same time and in the same amounts they would have been paid to the
Executive had the Executive survived.

 

3.3.                        Death Following Termination of Employment But
Before Benefits Commence. If
the Executive is entitled to benefits under this Agreement, but dies prior to
receiving said benefits, the Company shall pay to the Executive’s beneficiary
the same benefits, in the same manner, they would have been paid to the
Executive had the Executive survived, however, said benefit payments will
commence upon the Executive’s death.

 

ARTICLE 4.

BENEFICIARIES

 

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

 

4.2.                             Facility of Payment.  If
a  benefit is payable to a minor,
to a person declared incapacitated, or to a person incapable of handling the
disposition of his or

 

 

8

 

her property, the Company may pay such benefit to the guardian, legal
representative or person having the care or custody of such minor,
incapacitated person or incapable person. The Company may require proof of
incapacity, minority or guardianship as it may deem appropriate prior to
distribution of the benefit. Such distribution shall completely discharge the
Company from all liability with respect to such benefit.

 

ARTICLE 5.

GENERAL LIMITATIONS

 

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

 

5.1.                              Excess Parachute Payment. To the extent the benefit would be an
excess parachute payment under section 280G of the Code. In complying with this
provision, the Company hereby agrees to take all steps reasonably necessary to
maximize the benefit available to the Executive.

 

5.2.                              Termination for Cause. If the Company terminates the Executive’s
employment for:

 

5.2.1.                     any act of embezzlement, fraud, breach of fiduciary duty or dishonesty;

 

5.2.2.                     any conviction of a felony involving moral turpitude;

 

5.2.3.                     deliberate or repeated disregard of the policies and rules of Company
as adopted by Company’s Board of Directors;

 

5.2.4.                     unauthorized use or disclosure of any of the trade secrets or

 

 

9

 

confidential
information of Company;

 

5.2.3.                     competition with Company, inducement of any customer of the Company to
breach a contract with the Company, or inducement of any principal for whom the
Company acts as agent to terminate such agency relationship;

 

5.2.6.                     gross negligence adversely impacting the Company; or

 

5.2.7.                     willful breach of this Agreement or any other willful misconduct.

 

ARTICLE 6.

CLAIMS AND REVIEW PROCEDURES

 

6.1.                              Claims Procedure. The Company shall notify any person or
entity that makes a claim against the Agreement (the “Claimant”) in writing,
within ninety (90) days of Claimant’s written application for benefits, of his
or her eligibility or ineligibility for benefits under the Agreement. If the
Company determines that the Claimant is not eligible for benefits or full
benefits, the notice shall set forth (1) the specific reasons for such denial;
(2) a specific reference to 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 Claimant
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 Claimant of the special circumstances and the date by

 

 

10

 

which a decision is expected
to be made, and may extend the time for up to an additional ninety-day period.

 

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

 

ARTICLE 7.

AMENDMENTS AND TERMINATION

 

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

 

 

11

 

signed by the Company and the Executive.

 

ARTICLE 8.

MISCELLANEOUS

 

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

 

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

 

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

 

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

 

8.5.                              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.

 

8.6.                              Unfunded Arrangement.  The
Executive and beneficiary are general unsecured creditors of the Company for
the payment of benefits under this Agreement. The benefits represent the mere
promise by the Company to pay such benefits. The rights to benefits are not
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, attachment, or

 

 

12

 

garnishment by creditors. Any insurance on the Executive’s life is a
general asset of the Company to which the Executive and beneficiary have no
preferred or secured claim.

 

8.7.                              Recovery of Estate Taxes.  If
the Executive’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 Executive’s estate, then the Executive’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
Executive’s estate, exceeds the total estate tax which would have been payable
if the value of such benefit had not been included in the Executive’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.

 

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

 

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

 

8.9.1.                     Establishing and revising the method of accounting for the Agreement;

 

 

13

 

8.9.2.                     Maintaining a record of benefit payments; and

 

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

 

8.10.                        Named Fiduciary. For
purposes of the Employee Retirement Income Security Act of 1974, if applicable,
the Company shall be the named fiduciary and plan administrator under the
Agreement. The named fiduciary may delegate to others certain aspects of the
management and operation responsibilities of the plan including the employment
of advisors and the delegation of ministerial duties to qualified individuals.

 

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

 

 

	
  Dated:

  	
  July 24, 1998

  	
   

  	
  /s/ Douglas A. Nordell

  
	
   

  	
  DOUGLAS A. NORDELL

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ROSEVILLE 1ST NATIONAL
  BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
  July 24, 1998

  	
   

  	
  By:

  	
  /s/ Richard C. Seeba

  
	
   

  	
   

  	
  RICHARD C. SEEBA,
  President

  

 

 

14

 

BENEFICIARY DESIGNATION

 

ROSEVILLE 1ST NATIONAL
BANK

SALARY CONTINUATION AGREEMENT

 

Douglas A. Nordell

 

I designate the following as beneficiary of any death benefits under
the Roseville 1st National Bank Salary Continuation Agreement:

 

Primary: [named Primary]

 

 

Contingent: [Named Contingents]

 

 

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, in the event of the dissolution of our marriage.

 

	
  Signature

  	
  /s/ Douglas A. Nordell

  	
   

  
	
   

  
	
  Date:

  	
  July 24, 1998

  	
   

  
				

 

Accepted by the Company this 24th day of July, 1998.

 

	
  By

  	
  /s/ Richard C. Seeba

  	
   

  
	
   

  
	
  Title

  	
  President

  	
   

  
				

 

 

15

 

EXHIBIT A

 

SALARY
CONTINUATION AGREEMENT

 

 

16

 

EXHIBIT B

 

INCREASES
IN ANNUAL BENEFIT

 

By resolution of
the Board of Directors of Lake Community Bank, dated 6/25/02, the annual
benefit described in Section 2.1.1 of the Salary Continuation Agreement entered
into by and between Lake Community Bank and Douglas Nordell is increased to
$75,000.00.

 

	
   

  	
   

  	
   

  	
  Lake Community Bank

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
  6/25/02

  	
   

  	
   

  	
  By:

  	
  /s/ Billie L.
  Holmes

  
	
   

  	
   

  	
   

  	
   

  	
  Vice Chairman of the Board

  
						

 

 

17

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