Document:

exhibit10-1_directorcomp.htm

 Exhibit 10.1

TERMINATION OF DIRECTOR COMPENSATION BENEFITS AGREEMENT AND ACKNOWLEDGEMENT OF RELINQUISHMENT OF DIRECTOR COMPENSATION BENEFITS ACCRUED THEREUNDER

THIS TERMINATION OF DIRECTOR COMPENSATION BENEFITS AGREEMENT AND ACKNOWLEDGEMENT OF RELINQUISHMENT OF DIRECTOR COMPENSATION BENEFITS ACCRUED THEREUNDER (hereinafter “Termination and Relinquishment”) is entered into as of June 30, 2010 (“Effective Date”), by and between Sonoma Valley Bank, a California Corporation (hereinafter the “Company”) and the director designated below (“Participant Director”).

 

WHEREAS, the Participant Director is or was a member of the Board of Directors of Sonoma Valley Bancorp and/or the Company and not also an officer or employee of the Company;

 

WHEREAS, the Company had previously entered into director compensation benefits agreements with various individual directors (individually and collectively referred to as the “Director Compensation Agreement(s)”), and the Participant Director had previously been selected to participate by entering into a Director Compensation Agreement in the form of that certain Director Compensation Benefits Agreement, dated January 1, 2001.

 

WHEREAS, the Company, with approval of Board of Directors, has determined that it is in the best interests of the Company to terminate the Director Compensation Agreement(s) (“Director Agreement Termination”).

 

WHEREAS, in connection with the Director Agreement Termination, as of the Effective Date the Participant Director desires to voluntarily relinquish any Director Benefits that would otherwise be payable to the Participant Director pursuant to the terms of the applicable Director Compensation Agreement, accrued or un-accrued, and to voluntarily relinquish, forfeit, and surrender any and all existing unvested and unpaid rights or benefits that may have accrued to the Participant Director as a result of having participated in such Director Compensation Agreement; and

 

WHEREAS, the Company, simultaneously with the Director Agreement Termination, desires to acknowledge the Participant Director’s voluntary relinquishment of all Director Benefits payable to the Participant Director pursuant to the applicable Director Compensation Agreement.

 

NOW THEREFORE, the Company and the Participant Director hereby agree to the following:

 

I.           Definitions.  Unless otherwise provided in this Termination and Relinquishment, the capitalized terms herein shall have the same meaning as under the applicable Director Compensation Agreement and any amendments thereto.

 

II.           Termination of Director Compensation Agreement. The Director Compensation Agreement, along with all obligations and duties arising thereunder (except as may be otherwise described in this Termination and Relinquishment), is terminated in its entirety, effective as of the Effective Date.  Upon such Director Agreement Termination, no further benefits shall accrue or vest under the Director Compensation Agreement.

 

  

  

  

III.           Termination of Further Participation.  As a result of the Director Agreement Termination as set forth above, the undersigned Participant Director hereby ceases to be a participant in the Director Compensation Agreement  for purposes of the accrual of any additional or supplemental Director Benefit from and after the Effective Date, and to accrue any additional benefits under the Director Compensation Agreement  that would otherwise accrue on or after the Effective Date, regardless of any Director Benefits indicated in the Director Compensation Agreement  .

 

IV.           Relinquishment of Accrued Benefits.  In connection with the Director Agreement Termination, as of the Effective Date, the Participant Director hereby voluntarily and without consideration, irrevocably relinquishes, forfeits and surrenders any and all right, title and interest in and to any and all accrued Director Benefit payments that would otherwise be payable to the Participant Director pursuant the terms of the applicable Director Compensation Agreement and further agrees that as of the Effective Date the Participant Director relinquishes, forfeits, and surrenders any and all unpaid, un-accrued or unvested benefits or rights that would have otherwise been payable to the Participant Director pursuant to the terms of the Director Compensation Agreement  if he or she had remained a participant under the Director Compensation Agreement  or which would otherwise vest or be paid on or after the Effective Date.  The Participant Director acknowledges and agrees that as of the Effective Date, he or she shall have relinquished, forfeited and surrendered all rights or benefits that would have otherwise accrued to or been payable to the Participant Director pursuant to the terms of the Director Compensation Agreement .

 

V.           Relinquishment Voluntary and Without Consideration.  The Company and Participant Director hereby acknowledge and agree that the Participant Director’s relinquishment, forfeiture and surrender of any and all rights payable to the Participant Director pursuant to the terms of the Director Compensation Agreement as set forth in this Termination and Relinquishment constitute the voluntary relinquishment of all of the Participant Director’s rights and benefits otherwise accrued or payable pursuant the terms of the Director Compensation Agreement (the “Participant's Relinquishment”).  The Company and Participant Director further acknowledge and agree that the Participant’s Relinquishment was the voluntary act of the Participant Director, and was made with out any consideration or offset of any payment otherwise payable to the Participant Director by the Company or any related party thereto.

 

VI.           Release of Claims.  In consideration of the rights granted herein, Participant Director, for himself and his successors and assigns and beneficiaries, hereby releases and forever discharges the Company from any and all manner of actions, causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liabilities, claims, demands, damages, losses, sums of money, defenses, costs or expenses of any nature whatsoever, Participant Director might otherwise have, whether known or unknown, suspected or unsuspected, fixed or contingent (collectively, “Claims”), which now exist or which may hereafter come into existence relating to the Director Compensation Agreement(s).

A.           Civil Code Section 1542 Waiver.  Participant Director certifies that he has read the following provisions of California Civil Code section 1542 and has had the meaning and effect of this provision explained by legal counsel:

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.

  

  

  

B.           Acknowledgement of Release.  Participant Director acknowledges that the release contained above constitutes a waiver of, and does hereby expressly, knowingly, and voluntarily waives and relinquishes to the fullest extent permitted by law, each and all of the provisions of California Civil Code section 1542.  Participant Director understands and acknowledges that the significance and consequence of this waiver of California Civil Code section 1542 is that, even if he should eventually suffer additional damages arising out of the facts referred to in this Termination and Relinquishment, he will not be able to make any claim for those damages against any other party hereto.  Furthermore, Participant Director acknowledges that he intends these consequences even as to claims for damages that may exist as of the date of this Termination and Relinquishment but which he does not know exist, and which, if known, would materially affect the decision to execute this Termination and Relinquishment, regardless of whether the lack of knowledge is the result of ignorance, oversight, error, negligence, or any other cause.

 

VII.           Acknowledgement.  The Participant Director hereby acknowledges that he or she has read and understands this Termination and Relinquishment and the Participant Director Agreement, and understands that by terminating participation in the Director Compensation Agreement, Participant Director shall be irrevocably and forever forfeiting any right, title or interest to any vested or unvested rights or benefits under the  Director Compensation Agreement.

 

VIII.           Advice of Counsel.  Participant Director acknowledges that he or she has been advised by Company to seek independent legal counsel, including tax counsel, regarding Participant Director’s entry into this Termination and Relinquishment, including the forfeiture of benefits and waiver of claims.  Neither Company nor Company’s counsel have provided legal or tax advice to the Participant Director.

 

IX.           Successors and Assigns.  This Termination and Relinquishment shall inure to the benefit of, and be binding upon, the Company, its successors and assigns, and the Participant Director.

 

X.           Governing Law.  This Termination and Relinquishment shall be governed by and construed under the laws of the state of California.

 

XI.           Counterparts.  This Termination and Relinquishment may be executed in one or more counterparts each of which is legally binding and enforceable.

 

 Director:___________________________                                                                           __________________________

       (Signature)                                                                  (Date)

 

 

Authorized Representative

Of Sonoma Valley Bank:                                           By:  _____________________                                                      Title:_____________

 

Date:  _________________

 

Witness: __________________________

 

Witness: __________________________exhibit10-2_serptermination.htm

 Exhibit 10.2

TERMINATION OF THE

 

FIRST AMENDED AND RESTATED

 

SONOMA VALLEY BANK

 

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

THIS TERMINATION OF THE FIRST AMENDED AND RESTATED SONOMA VALLEY BANK SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (this “Termination”) is entered into as of June 30, 2010 (“Effective Date”) with reference to the following facts:

 

A.           Effective December 17, 2008, Sonoma Valley Bank, a California corporation (the “Company”) adopted the FIRST AMENDED AND RESTATED SONOMA VALLEY BANK SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN, as amended on July 15, 2009 (as amended, the “Plan”).

 

B.           The Company desires to terminate the Plan as of the Effective Date so that no further benefits accrue or vest under the Plan.

 

C.           The Plan may be amended or terminated by the Personnel and Policies Committee, and the Personnel and Policies Committee has been directed by the Board of Directors of the Company to terminate the Plan.

 

NOW, THEREFORE, the Company is terminating the Plan upon the terms and subject to the conditions of this Termination.

 

1.           Termination of Plan.  The Plan, along with all obligations and duties arising thereunder (except as may be otherwise described in this Termination), is terminated in its entirety, effective as of the Effective Date.  Upon termination, no further benefits shall accrue or vest under the Plan.

 

2.           Participant Benefits.  Except to the extent that such benefits may be voluntarily relinquished, forfeited, or surrendered by any Participant, any vested but unpaid benefits which have accrued to any Participant as of the Effective Date shall continue to be administered and payable pursuant to the applicable terms of the Plan.

3.           No Further Obligations.  As of the Effective Date, no further benefits shall accrue or vest under the Plan.  The Company shall have no obligation to pay any further sums to any Participant under the Plan other than as set forth in Section 2 above.

4.           Termination Controlling.  In the event of any inconsistency between the terms of this Termination and the terms of the Plan, the terms of this Termination shall control.

  

  

  

5.           Defined Terms.  Capitalized terms used herein but not defined herein shall have the meanings ascribed to those terms in the Plan.

6.           Counterparts.  This Termination may be executed in one or more counterparts, each of which shall be an original and all of which shall together constitute one and the same document.

7.           Governing Law.  This Termination shall be governed by the laws of the State of California, notwithstanding its conflict of laws provisions.  Any legal action or proceeding relating to this Termination shall be instituted in a state or federal court in Sacramento County, California.  The parties agree to submit to the jurisdiction of, and agree that venue is proper in, these courts in any such legal action or proceeding.

8.           Necessary Action.  The Parties agree to take all action necessary or useful to complete and accomplish the intentions of this Termination.

9.           Entire Agreement.  This Termination contains the entire agreement and understandings by and between the parties hereto with respect to the subject matter hereof, and no representations, promises, agreements or understandings concerning such subject matter, written or oral, not herein contained shall be of any force or effect.

 

10.           Severability.  If any provision of this Termination is held to be invalid, void or unenforceable for any reason, the remaining provisions shall nevertheless continue in full force and effect, provided that nothing in this section shall be construed to limit or waive the breach of any representation with respect to enforceability of the Plan.

IN WITNESS WHEREOF, the Company has entered into this Termination effective as of the date first set forth above.

 

 

SONOMA VALLEY BANK

 

 

Date:   June 30, 2010               By      /s/C. Gorham

 

Name      C. Gorham                      

 

Title        EVP & COO                   

 

Date:   June 30, 2010                By      /s/Sean C. Cutting

 

Name      Sean C. Cutting                    

 

Title        President/CEO

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