Document:

Exhibit 10.13

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

This Amended and Restated Employment Agreement (this “Agreement”) is made this 28th day of August, 2006 (the “Effective Date”), by and between MISSION COMMUNITY
BANK (the “Bank”), having a
principal place of business at 581 Higuera Street, San Luis Obispo, California 93406,
and ANITA M. ROBINSON (“Executive”),
whose residence address is 8570 Corriente Road, Atascadero, California 93422,
with reference to the following:

R E C I T A L S

WHEREAS, the Bank is a banking corporation duly organized, validly existing,
and in good standing under the laws of the State of California, with power to
own property and carry on its business as it is now being conducted;

WHEREAS, the Bank desires to continue to avail itself of the skill, knowledge,
and experience of Executive in order to insure the successful management of its
business;

WHEREAS, the Bank and Executive entered into that certain Employment Agreement
effective January 1, 2002 (the “Original
Agreement”), which Original Agreement has been amended by mutual
agreement of the parties through the Effective Date;

WHEREAS, the parties hereto desire to specify the terms of Executive’s continued
employment by the Bank as controlling Executive’s continued employment with the
Bank; and

WHEREAS, the parties wish to enter into this Agreement to reflect the Original
Agreement as amended by the parties through the Effective Date and to supersede
the Original Agreement;

NOW, THEREFORE, in consideration of the mutual covenants
hereinafter set forth, and intending to be legally bound, it is agreed that
from and after the Effective Date, the following terms and conditions shall
apply to Executive’s said employment:

A G R E E M E N T

A.                                   TERM OF EMPLOYMENT

1.                                       Term. The Bank hereby employs Executive and Executive hereby accepts
employment with the Bank for the period commencing on January 1, 2002 and
terminating on December 31, 2007, unless terminated earlier as provided for in
this Agreement (the “Term”). Where
used herein, “Term” shall refer to the entire period of employment of Executive
by Bank hereunder, whether for the period provided above, including any
extensions thereof, or whether terminated earlier as hereinafter provided.

B.                                     DUTIES OF EXECUTIVE

1.                                       Duties. Executive shall perform the duties of President and Chief Executive
Officer of the Bank, subject to the powers by law vested in the Board of
Directors 

of
the Bank and in the Bank’s shareholders. The duties of Executive may be changed
from time to time by the mutual consent of Executive and Bank without resulting
in a rescission of this Agreement. Notwithstanding any such change from the
duties originally assigned and specified above, or hereafter assigned, the
employment of Executive shall be construed as continuing under this Agreement
as modified; provided, however, any material changes in Executive’s duties,
without Executive’s consent, shall be construed as a termination of Executive
without cause. During the Term, Executive shall perform exclusively the
services herein contemplated to be performed by Executive faithfully,
diligently, and to the best of Executive’s ability, consistent with the highest
and best standards of the banking industry and in compliance with all
applicable laws and the Bank’s Articles of Incorporation, Bylaws, and internal
written policies.

2.                                       Conflicts of Interest. Except as permitted by the prior written
consent of the Board of Directors of the Bank, Executive shall devote Executive’s
entire productive time, ability, and attention to the business of the Bank
during the Term, and Executive shall not directly or indirectly render any
services of a business, commercial, or professional nature, to any other
person, firm, or corporation, whether for compensation or otherwise, which are
in conflict with the Bank’s interest. 

C.                                     COMPENSATION

1.                                       Base Salary. For Executive’s services hereunder, commencing January 1, 2005, the
Bank shall pay or cause to be paid as annual base salary to Executive the sum
of One Hundred Sixty-Five Thousand Dollars ($165,000) for each year (i.e.,
12-month period) of the Term (the “Base Salary”).
Said salary shall be payable in equal installments in conformity with Bank’s
normal payroll periods. Annual adjustments, if any, commencing January 1, 2006,
may be made in the sole discretion of the Board of Directors.

2.                                       Bonuses. During the Term, Executive shall be entitled to receive as an
incentive, a bonus as determined and payable in accordance with the Bank’s Officers’
Incentive Compensation Program as set forth on Exhibit “A” hereto, as it may be
amended from time to time by mutual agreement of the Board of Directors and
Executive, together with such other bonus as the Board of Directors shall
determine from time to time in its sole and absolute discretion (collectively,
the “Incentive Bonus”).

D.                                    EXECUTIVE BENEFITS

1.                                       Vacation and Sick Pay. Executive shall be entitled to four (4)
weeks vacation during each year of the Term; provided, however, that for each
year of the Term, Executive is required to and shall take at least two (2)
weeks of said vacation (the “Mandatory Vacation”),
which shall be taken consecutively. Any vacation time not used in excess of the
Mandatory Vacation may be accumulated in accordance with Bank’s Personnel
Policy. Executive shall also be entitled to sick pay in accordance with Bank’s
Personnel Policy.

2.                                       Automobile Allowance. During the Term, the Bank shall provide
Executive with a $ 650.00 per month automobile allowance. Provided the Bank
pays the foregoing automobile allowance, the Bank shall have no other duty,
responsibility or liability on account of Executive’s automobile and at all
times during the Term, Executive shall maintain such insurance on the
automobile including, without limitation, liability for personal 

 2
 

injury
and property damage as the Bank shall from time to time reasonably require to
protect Bank against any loss which may arise from Executive’s use of the
automobile while working for the Bank.

3.                                       Group Medical and Life Insurance Benefits. The Bank shall provide for Executive, at
Bank’s expense, participation in the Bank’s existing medical, dental, vision, accident,
health and life insurance benefits in accordance with benefits provided to Bank
employees generally, but at a level commensurate with other officers of the
Bank; provided however, that Executive shall be provided $550,000 in life
insurance benefits (collectively, the “Insurance Coverage”).
Said Insurance Coverage shall be in existence as of the Effective Date hereof
and shall continue throughout the Term. The Bank’s liability to Executive for
any breach of this Paragraph D.3 shall be limited to the amount of premiums
required hereunder to be payable by the Bank to obtain or maintain, as applicable,
the coverages contemplated herein.

4.                                       Stock Options. All options to purchase shares of the
authorized but unissued Common Stock of Mission Community Bancorp (the “Company”) heretofore granted to Executive shall remain in
full force and effect subject to the terms and conditions of those options as
so granted. The Bank and Executive acknowledge and agree that as of the Effective
Date Executive has been granted options which remain unexercised to purchase
those shares of the Company’s Common Stock as listed on Exhibit “B” hereto.

5.                                       Additional Benefits. Executive shall be entitled to participate
in all programs, rights and benefits for which Executive is otherwise entitled
under any 401(k) plan, bonus plan, incentive plan, participation plan, extra
compensation plan, pension plan, profit sharing plan, savings plan, life,
medical, dental, other health care, disability or other insurance plan or
policy or other plan or benefit Bank may provide for senior executives or for
employees of Bank generally, from time to time, in effect during the Term. 

E.                                      REIMBURSEMENT FOR BUSINESS EXPENSES

1.                                       Business Expenses. Executive shall be entitled to
reimbursement by the Bank for any ordinary and necessary business expenses
incurred by Executive in the performance of Executive’s duties and in acting
for the Bank during the Term, which types of expenditures shall be determined
by the Board of Directors, provided that:

(a)                                  Each such expenditure is of a nature
qualifying it as a proper deduction on the federal and state income tax returns
of the Bank as a business expense and not as a deductible compensation to
Executive; and

(b)                                 Executive furnishes to the Bank adequate
records and other documentary evidence required by federal and state statutes
and regulations issued by the appropriate taxing authorities for the
substantiation of such expenditures as deductible business expenses of the Bank
and not as deductible compensation to Executive.

2.                                       Reimbursement. Executive agrees that, if at any time
payment made to Executive by Bank for business expense reimbursement shall be
disallowed in whole or in part as deductible business expense by the
appropriate taxing authorities, the amount so disallowed shall be treated as
taxable compensation to Executive.

 3
 

F.                                      TERMINATION

1.                                       Termination for Cause. The Bank may terminate Executive’s
employment at any time by action of the Board of Directors for “cause” if:

(a)                                  Executive fails to perform or habitually
neglects the duties which Executive is required to perform hereunder;

(b)                                 if Executive engages in illegal activity
which materially adversely affects the Bank’s reputation in the community or
which evidences the lack of Executive’s fitness or ability to perform Executive’s
duties as reasonably determined by the Board of Directors, in good faith;

(c)                                  Executive commits any act which would cause
termination of coverage under the Bank’s Bankers’ Blanket Bond as to Executive or
as to the Bank as a whole;

(d)                                 any regulatory authority having supervisory authority
over Bank exercises its cease and desist powers to remove Executive from office
or advises Bank that Executive should be removed from office;

(e)                                  if the Bank is closed by or taken over by the
California Commissioner of Financial Institutions or other supervisory
authority, including the Federal Deposit Insurance Corporation;

(f)                                    in the event of Executive’s death, or if
Executive is found to be physically or mentally incapable of performing
Executive’s duties for a period of ninety (90) days or greater by the Board of
Directors, in good faith; or

(g)                                 any other act or omission which would
constitute “cause” under California law occurs. Such termination shall not
prejudice any remedy which the Bank may have at law, in equity, or under this
Agreement.

Termination pursuant to this Paragraph F.1 shall become effective two
(2) days after written notice of termination.

2.                                       Change in Control Event. In the event of a “Change of Control”
Executive’s employment with the Bank may not be terminated by Bank, the
surviving or resulting entity or the transferee of the Bank’s assets. In the
event of a “Change of Control” Executive may terminate Executive’s employment
under this Agreement for “Good Cause.”

(a)                                              A Change of Control shall be deemed to have
occurred if:

(i)                                      there shall be consummated (A) any
consolidation or merger of the Company, other than a merger of the Company in
which the holders of the Company’s Common Stock immediately prior to the merger
have substantially the same proportionate ownership of common stock of the
surviving corporation immediately after the merger, in which the Company is not
the continuing or surviving corporation, or pursuant to which shares of the
Company’s Common Stock would be converted in whole or in part into cash,
securities or other property, if as a result of the consolidation or merger,
the continuing or 

 4
 

surviving
corporation acquired more than 50% of the total fair market value or total
voting power of the Company’s Common Stock, or (B) any sale, lease, exchange or
transfer (in one transaction or a series of related transactions) of all or
substantially all the assets (which shall be defined as more than 40% of the
total gross fair market value of all of the assets) of the Company, or

(ii)                                  the shareholders of the Company shall approve
any plan or proposal for the liquidation or dissolution of the Company, or

(iii)                               any “person” (as such term is used in Sections 13(d)(3) and 14(d)(2) of
the Securities Exchange Act of 1934 (the “Exchange Act”)), other than the
Company or a subsidiary thereof or a corporation owned, directly or indirectly,
by the shareholder of the Company, shall become the beneficial owner (within
the meaning of Rule 13(d)(3) under the Exchange Act) of securities of the
Company representing 35% or more of the combined voting power of the Company’s
then outstanding securities ordinarily (and apart from rights accruing in
special circumstances) having the right to vote in the election of directors,
as a result of a tender or exchange offer, open market purchases, privately
negotiated purchases or otherwise, or

(iv)                              at any time during a twelve-month period, individuals who, at the
beginning of such period, constituted the Board of Directors of the Company
shall cease for any reason to constitute at least a majority thereof, unless
the election or the nomination for election by the Company’s shareholders of
each new director during such twelve-month period was approved by a vote of at
least two-thirds of the directors then still in office who were directors at
the beginning of such twelve-month period, or

(v)                                 any “person” (as such term is used in
Sections 13(d)(3) and 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange
Act”)), other than the Company, Bank or a subsidiary thereof or a corporation
owned, directly or indirectly, by the shareholder of the Company or Bank, shall
become the beneficial owner (within the meaning of Rule 13(d)(3) under the
Exchange Act) of securities of the Bank representing 35% or more of the
combined voting power of the Bank’s then outstanding securities ordinarily (and
apart from rights accruing in special circumstances) having the right to vote
in the election of directors, as a result of a tender or exchange offer, open
market purchases, privately negotiated purchases or otherwise.

(b)                                 The following shall constitute “Good Cause”:

(i)                                     subsequent to a Change of Control, and
without Executive’s express written consent, the assignment to Executive of any
duties substantially inconsistent with Executive’s positions, duties,
responsibilities and status with Bank immediately prior to the Change of
Control, or a substantial change in Executive’s reporting responsibilities,
titles or offices as in effect immediately prior to the Change of Control, or
any removal of Executive from or any failure to re-elect Executive to any of
such positions, except in connection with the termination of Executive’s
employment pursuant to Paragraph F.1 hereof, or as a result of Executive’s
retirement, or by Executive other than for Good Cause;

(ii)                                  subsequent to a Change of Control a 10% or
greater reduction by Bank in Executive’s Base Salary and benefits as in effect
on the Effective Date 

 5
 

or
as the same may be increased from time to time;

(iii)                               subsequent to a Change of Control and without Executive’s express
written consent, Bank’s requiring Executive to be based anywhere other than
within 15 miles of Bank’s main office location immediately prior to the Change
of Control, exclusive of required travel on Bank business; or

(iv)                              subsequent to a Change of Control, the failure by Bank to obtain the
assumption of the agreement to perform this Agreement by any successor as
contemplated in Paragraph G.5 hereof.

3.                                       Termination Without Cause. Notwithstanding anything to the contrary
contained herein, it is agreed by the parties hereto that either the Bank or
Executive may at any time elect to terminate Executive’s employment by the Bank
for any reason. Such termination shall be effective upon the giving of not less
than five (5) days prior written notice where the Bank is terminating Executive’s
employment and upon the giving of not less than sixty (60) days’ prior written
notice where Executive is terminating her employment hereunder.

4.                                       Expiration of Term Without Renewal. If the Bank is unwilling, for any reason
whatsoever, to enter into a new employment agreement with Executive at the
expiration of the full Term, or the Executive and Bank are unable to reach a
mutually agreeable contract prior to the expiration of a full Term, or
Executive decides to retire or to take employment elsewhere at the expiration
of the full Term, then Executive’s employment with Bank shall terminate at the
end of the full Term.

5.                                       Effect of Termination.

(a)                                  In the event Executive’s employment with Bank
is terminated for any of the reasons specified in Paragraphs F.1 or F.3 (as a
result of Executive’s election to terminate) of this Agreement, Executive shall
be entitled to (i) the Base Salary and Incentive Bonus earned by Executive
prior to the date of termination, computed pro rata up to and including that
date, and (ii) accrued but unused vacation time, but Executive shall be
entitled to no further compensation or benefits otherwise provided for or
contemplated under this Agreement.

(b)                                 In the event Executive’s employment with Bank
is terminated pursuant to Paragraph F.3 of this Agreement (as a result of Bank’s
election to terminate and no Change of Control has occurred), Executive shall
be entitled to (i) the Base Salary and Incentive Bonus earned by Executive
prior to the date of termination, computed up to and including that date, (ii)
accrued but unused vacation time, and (iii) an amount equal to six (6) months
of Executive’s Base Salary in effect immediately prior to the date of
termination, payable in equal installments over six (6) months in accordance
with the Bank’s normal payroll periods.

(c)                                  In the event Executive’s employment with Bank
is terminated pursuant to Paragraph F.2 of this Agreement (as a result of Executive’s
election to terminate for Good Cause), or by Bank or the resulting or surviving
entity pursuant to Paragraph F.3 after a Change of Control has occurred, Executive
shall be entitled to (i) the Base Salary and Incentive Bonus earned by
Executive prior to the date of termination, computed pro rata up to 

 6
 

and
including that date, (ii) accrued but unused vacation time, (iii) the
continuation of the Insurance Coverage as provided in Paragraph D.3 hereof and
the automobile allowance as provided in Paragraph D.2 hereof for a period of
sixty (60) months from and after the date of termination, and (iv) an amount
equal to sixty (60) months of Executive’s Base Salary in effect immediately prior
to the date of termination in a lump sum payment.

(d)                                 The payment of such benefits shall discharge
Bank from any further liability to Executive under this Agreement.

(e)                                  In the event Executive’s employment with Bank
and the Term are terminated pursuant to Paragraph F of this Agreement, the
provisions of Paragraph G hereof shall survive said termination and shall inure
to the benefit of and be binding upon the parties hereto and their respective
executors, administrators, successors and assigns.

(f)                                    In the event Executive’s employment with Bank
is terminated in accordance with this Paragraph F of this Agreement (whether by
Executive or Bank) and at such time Executive is a member of the Board of
Directors of Company, Bank or any subsidiary thereof, or holds any other office
thereof, Executive shall, and hereby agrees to, tender Executive’s resignation
from the Board of Directors of the Company, Bank and all subsidiaries thereof
and any committees thereof and all other offices of the Company, Bank and all
subsidiaries thereof then held by Executive effective on the date of
termination. If such resignation is not received by the Bank within three (3)
days after the date of termination, Executive hereby authorizes and directs the
Board of Directors of all such entities to consider the failure to so act as
Executive’s resignation from all said positions effective as of the date of
termination.

G.                                     GENERAL PROVISIONS

1.                                       Trade Secrets. During the Term, Executive will have access
to and become acquainted with what Executive and Bank acknowledge are trade
secrets; to wit, knowledge or data concerning the Bank, including its
operations and methods of doing business, and the identity of customers of the
Bank, including knowledge of their financial condition and their financial
needs. Executive shall not disclose any of the aforesaid trade secrets,
directly or indirectly, or use them in any way, either during the Term or for a
period of five (5) years after the termination of this Agreement, except as
required in the course of Executive’s employment with the Bank.

2.                                       Covenant Not to Interfere. Executive hereby covenants and agrees that
Executive will not during the Term, or for the period during which Executive
receives any compensation from Bank, whether pursuant to this Agreement or
otherwise, plus an additional period of one (1) year, disrupt, damage, impair
or interfere with the business of Bank, whether by way of interfering with or
raiding its employees, disrupting its relationships with customers or their
agents, representatives or vendors, or otherwise. After termination of
employment, Executive is not, however, restricted from being employed by or
engaging in a competing business.

3.                                       Return of Documents. Executive expressly agrees that all manuals,
documents, files, reports, studies, instruments, or other materials used and/or
developed by Executive during the Term are solely the property of the Bank, and
that Executive has no right, title, or interest therein.  Upon termination of this Agreement, Executive
or Executive’s 

 7
 

representative
shall promptly deliver possession of all of said property to the Bank in good condition.

4.                                       Notices. All notices, demands, or other communications hereunder shall be in
writing and shall be delivered in person (professional courier acceptable); or
by United States mail, certified or registered, postage prepaid, with return
receipt requested; or by facsimile transmission; or otherwise actually delivered,
to the addresses for the parties appearing at the inception of this
Agreement.  The persons or addresses to
which mailings or deliveries shall be made may change from time to time by
notice given pursuant to the provisions of this Paragraph G.4.  Any notice, demand, or other communication
given pursuant to this Agreement shall be deemed to have been given on the date
actually delivered, if delivered in person, three (3) days following the date
mailed, if delivered by U.S. mail, or upon written confirmation of
transmission, if delivered by facsimile.

5.                                       Benefit of Agreement.  This
Agreement shall inure to the benefit of and be binding upon the parties hereto
and their respective executors, administrators, successors and assigns.

6.                                       Review by Counsel. 
Executive represents and warrants to the Bank that she has had this
Agreement reviewed by independent legal counsel of her choice, or if she has
not, that she has had the opportunity to do so, and hereby waives any claim, objection,
or defense on the grounds that this Agreement has not been reviewed by legal
counsel of her choice.

7.                                       California Law.  This
Agreement is to be governed by and construed in accordance with the laws of the
State of California.

8.                                       Captions and Paragraph Headings. 
Captions and paragraph headings used herein are for convenience only and
are not a part of this Agreement and shall not be used in construing this
Agreement.

9.                                       Invalid Provisions. 
Should any provision of the Agreement for any reason by declared
invalid, void, unenforceable by a court of competent jurisdiction, the validity
and binding effect of any remaining portion shall not be affected, and the
remaining portions of this Agreement shall remain in full force and effect as
if this Agreement had been executed with said provisions eliminated.

10.                                 Entire Agreement.  This
Agreement and the other agreements, plans or documents specifically referred to
herein, including Stock Option Agreements, contain the entire agreement of the
parties.  This Agreement supersedes any
and all other agreements, either oral or in writing, between the parties with
respect to the employment of Executive by the Bank, including the Original
Agreement and any Salary Protection Agreement.  
Each party to this Agreement acknowledges that no representation
inducements, promises, or agreements, oral or otherwise, have be made by any
party, or anyone acting on behalf of any party, which are not embodied herein,
and that no other agreement, statement, premise not contained in this Agreement
shall be valid or binding. This Agreement may not be modified or amended by
oral agreement but only by an agreement in writing signed by both the Bank and
Executive.

 8
 

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

	
  

  	
  MISSION COMMUNITY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William B. Coy

  	
   

  
	
   

  	
   

  	
  William B. Coy

  	
   

  
	
   

  	
  Its:

  	
  Chairman of the
  Board of Directors

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roxanne Carr

  	
   

  
	
   

  	
   

  	
  Roxanne Carr

  	
   

  
	
   

  	
  Its:

  	
  Vice Chairman of
  the Board of Directors

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
  /s/ Anita M. Robinson

  	
   

  
	
   

  	
  ANITA M. ROBINSON

  
						

 

 9
 

Exhibit A

BANK’S OFFICERS’ INCENTIVE COMPENSATION PROGRAM

PURPOSE

The purpose of the
Incentive Compensation Plan (“Plan”) is to provide an incentive to key
employees to improve the Bank’s financial performance, and to provide a vehicle
for awarding exceptional performance. Incentives are based on the achievement
of annual financial objectives consistent with the Bank’s long-term goals.

ELIGIBLITY

All Corporate
Officers and designated Loan Officers of Mission Community Bank are eligible to
participate in the Plan. Target awards are based on production and grouping.

A minimum of three
months continuous service with Mission Community Bank is necessary in order to
be eligible for an award under the Plan.

PLAN
ADMINISTRATION

A Personnel
Committee of the Board of Directors (“Committee”) administers the Plan, which
approves:  (1) plan participants, (2)
bonus award levels, (3) bank and business unit objectives and target
performance levels. The Committee also approves final incentive payouts. The
President and CEO of the Bank is delegated the responsibility for the day-to
day administration of the Plan, the objectives and the awards for the
executives and staff.

PERFORMANCE
OBJECTIVES

Awards under the
Plan are based on achievement of annual Bank objectives and Business Unit
objectives. The weighting of Bank objectives and Business Unit objectives is
dependent on the position the participating employee holds within the Bank.

	
  Bonus Opportunity for:

  	
   

  	
  Bank 

  Objectives

  	
   

  	
  Production 

  Objectives

  	
   

  
	
  ·              President & CEO

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  
	
  ·              Executive Vice Presidents

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  
	
  ·              SVP’s, VP’s, and AVP’s (Support)

  	
   

  	
  100

  	
  %

  	
  0

  	
  %

  
	
  ·              SVP’s, VP’s, and AVP’s (Production)

  	
   

  	
  20

  	
  %

  	
  80

  	
  %

  
	
  ·              Designated Loan Officers

  	
   

  	
  0

  	
  %

  	
  100

  	
  %

  

 

Bank and Business
Unit objectives are specified in advance of the Plan year and approved by the
President & CEO and the Board.

BUSINESS UNIT AND SBA PRODUCTION OBJECTIVES

Production
objectives are established for each participating Business Unit based on the
Bank’s annual goals and budget. Production objectives are specified in advance
of the Plan year. The department head of each branch or production Business
Unit will determine with his/her production officers how they will achieve
their Business Unit’s production objective.

Depending on
annual goals for the Business Unit, production objectives will typically
include commercial and construction loans, commercial real estate loans,
consumer loans, equity lines of credit, deposits, retention, and servicing. The
measurement of Business Unit objectives will be based on net loan or deposit
growth.  In addition, award payout
guidelines include the following stipulations:

 10
 

·                  Loans which are 60 consecutive days
delinquent for payment or by maturity, or are adversely classed as “substandard”
or “doubtful” during the first twelve months of the a loan will result in a 50%
commission charge back to the production officer.

·                  Loans which are classified “loss”
during the first twelve months of a loan will result in a 100% commission
charge back to the production officer.

·                  Commercial
Lines of Credit will be commissioned at 50% of the commitment amount.

The Bank offers a
separate Brokered Loan Incentive Program. 
The loans that are brokered to a secondary market lender are paid a
referral fee and are not a part of the production objectives.

Bonus Opportunity for Production
Objectives:  Business Unit

	
  Commercial
  & Construction Loans

  	
   

  	
   

  	
   

  
	
  Below minimum objectives

  	
   

  	
  -0-

  	
   

  
	
  Minimum objectives met (80% of goal)

  	
   

  	
  5
  BP

  	
   

  
	
  Target objectives met (100% of goal)

  	
   

  	
  10
  BP

  	
   

  
	
  Commercial
  Real Estate Loans

  	
   

  	
   

  	
   

  
	
  Below minimum objectives

  	
   

  	
  -0-

  	
   

  
	
  Minimum objectives met (80% of goal)

  	
   

  	
  3
  BP

  	
   

  
	
  Target objectives met (100% of goal)

  	
   

  	
  7
  BP

  	
   

  
	
  Deposits
  (DDA/MMA)

  	
   

  	
   

  	
   

  
	
  Below minimum objectives

  	
   

  	
  -0-

  	
   

  
	
  Minimum objectives met (80% of goal)

  	
   

  	
  5
  BP

  	
   

  
	
  Target objectives met (100% of goal)

  	
   

  	
  10
  BP

  	
   

  
	
  Consumer
  Equity Lines/Loans

  	
   

  	
   

  	
   

  
	
  Any Amount

  	
   

  	
  $50 fixed

  	
   

  
	
  Leases

  	
   

  	
   

  	
   

  
	
  Any Amount

  	
   

  	
  $100 fixed

  	
   

  

 

Bonus Opportunity for Production
Objectives:  SBA Business Unit

	
  Non-Broker

  	
   

  	
   

  	
   

  
	
  $0 - $1,000,000

  	
   

  	
  -0-

  	
   

  
	
  $1,000,001 - $3,999,999

  	
   

  	
  25BP

  	
   

  
	
  $4,000,000 - $9,000,000

  	
   

  	
  35BP

  	
   

  
	
  Over $9,000,000

  	
   

  	
  45BP

  	
   

  
	
  Internal
  Referral, No Broker

  	
   

  	
   

  	
   

  
	
  $0 - $1,000,000

  	
   

  	
  -0-

  	
   

  
	
  $1,000,001 - $3,999,999

  	
   

  	
  15BP

  	
   

  
	
  $4,000,000 - $9,000,000

  	
   

  	
  20BP

  	
   

  
	
  Over $9,000,000

  	
   

  	
  25BP

  	
   

  

 

INCENTIVE
AWARDS

Incentive awards for Business
Units are paid out quarterly and at the end of the Plan year.  If the Business Unit achieves its quarterly
objectives, 50% of its earned incentive is paid out to Participants.  The Business Unit must meet at least 80% of
its overall quarterly objectives for an incentive payout.  The amount of the payout to each individual
officer is based on the production of the individual officer.

The other 50% of the Business
Unit’s earned incentive will be distributed at the end of the Plan year based
on the achievement of the Plan year’s production objectives.  The earned incentive will be held in account
for year-end “true-up” and potential payout. 
The Business Unit must meet at least 80% of its overall production
objectives for the Plan year to be eligible for the final incentive
payout.  In addition, if the Bank does
not meet at least 80% of its overall objectives, all final payout is
forfeited.  The incentive amount
distributed is based upon the production of each individual officer within the
Business Unit.

Corporate and Production Loan
Officers (Underwriters) in the SBA Business Unit will share in the incentive
payout 50/50 between the originating Officer and Underwriter.  The incentive payout will be quarterly and at
the end of the year.  The SBA incentive
payout follows the same guidelines as all other Business Units.  The payout 

 11
 

is on a 50/50 basis with
quarterly incentive payouts if 80% of the production objective are met, “trued-up”
final payout at year-end contingent upon meeting at least 80% of the overall
production objectives, and the Bank realizing at least 80% of its overall
objectives.

Final awards for the Bank are
paid in cash following the end of the Plan year.  Individual employee awards are calculated
against the achievement of Bank objectives as shown below (as % of base
salary).

Participants must be employed
with the Bank when incentive is paid out to be eligible for the award.

Incentive awards will be paid
on a pro-rata basis if the Participant does not have full year of service
during the plan year.  Incentive awards
are based on the Participant’s base salary for bank objectives.  Other bonuses, incentives, benefits, or perks
are not included in total wages for incentive award payout.

Bonus
Opportunity for Bank Objectives

	
   

  	
   

  	
   

  	
   

  	
  Minimum

  (80% of 

  Goals)

  	
   

  	
  Target

  (100% 

  Goals)

  	
   

  	
  Maximum

  	
   

  
	
  Group
  1:

  	
   

  	
  ·     Chief Executive Officer

  	
   

  	
  15

  	
  %

  	
  20

  	
  %

  	
  Unlimited

  	
   

  
	
  Group
  2:

  	
   

  	
  ·     Executive Vice Presidents

  	
   

  	
  10

  	
  %

  	
  15

  	
  %

  	
  Unlimited

  	
   

  
	
  Group
  3:

  	
   

  	
  ·     Senior Vice Presidents

  	
   

  	
  8

  	
  %

  	
  12

  	
  %

  	
  Unlimited

  	
   

  
	
  Group
  4:

  	
   

  	
  ·     Vice Presidents

  	
   

  	
  7

  	
  %

  	
  10

  	
  %

  	
  Unlimited

  	
   

  
	
  Group 5:

  	
   

  	
  ·     Assistant Vice Presidents

  	
   

  	
  7

  	
  %

  	
  10

  	
  %

  	
  Unlimited

  	
   

  

 

TERMINATION
OF EMPLOYMENT

Unless determined otherwise
by the Committee, a Participant who terminates employment with the Bank or is
terminated by the Bank is not eligible to receive an incentive awards.

In the event of competitive
activity, failure to cooperate with the Bank or conduct detrimental to the best
interest of the Bank, the Committee may, at its discretion, remove a
participant from the Plan.

DEFINITIONS

	
  The “Plan”

  	
   

  	
  Incentive Compensation Plan of Mission Community
  Bank

  
	
   

  	
   

  	
   

  
	
  “Participants”

  	
   

  	
  All active Corporate Officers and designated Loan
  Officers of Mission Community Bank with a minimum of 3 months continuous
  service.

  
	
   

  	
   

  	
   

  
	
  The “Bank”

  	
   

  	
  Mission Community Bank

  
	
   

  	
   

  	
   

  
	
  The “Committee”

  	
   

  	
  The Personnel Committee of the Board of Directors

  
	
   

  	
   

  	
   

  
	
  “Production
  Objectives”

  	
   

  	
  Production objectives are established at the
  beginning of each annual performance period

  

 

 12
 

Exhibit B

STOCK OPTIONS

	
  Date 

  of Grant

  	
   

  	
  Option 

  Shares Granted

  	
   

  	
  Option

  Shares Unexercised

  	
   

  	
  Price

  Per Share

  	
   

  
	
  1/20/98

  	
   

  	
  2,000

  	
   

  	
  2,000

  	
   

  	
  $

  	
  10.00

  	
   

  
	
  1/20/98

  	
   

  	
  18,000

  	
   

  	
  18,000

  	
   

  	
  $

  	
  10.00

  	
   

  
	
  2/27/01

  	
   

  	
  5,000

  	
   

  	
  5,000

  	
   

  	
  $

  	
  8.25

  	
   

  

 

 13Exhibit 10.4

DIRECTOR
DEFERRED COMPENSATION AGREEMENT

THIS
AGREEMENT is made this                    
day of      ,         
by and between Horry County State Bank of Loris, South Carolina (the “Company”),
and                              
(the “Director”).

INTRODUCTION

In consideration
of the services performed and to be performed by the Director and to encourage
the Director to remain a director of the Company, the Company is willing to
provide to the Director a deferred fee opportunity, under the terms and
conditions herein set forth, and agree to provide the Director and his
beneficiary with certain benefits described herein.

AGREEMENT

The Director and
the Company agree 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
the transfer of 51% or more of the Company’s outstanding voting common stock
followed within twelve (12) months by termination of the Director’s status as a
member of the Company’s Board of Directors.

1.1.2        “Code” means the Internal
Revenue Code of 1986, as amended. 
References to a Code section shall be deemed to be that section as it
now exists and to any successor provision.

1.1.3        “Deferred Fee Account” shall
mean an account established on the books of the Company for the Director as
provided in section 3 hereof.

1.1.4        “Disability” means the
Director’s permanent inability to perform substantially all normal duties of
the Director’s position, as determined by the Company’s Board of Directors in
its sole discretion.  As a condition to
any benefits, the Company may require the Director to submit to such physical
or mental evaluations and test as the Board of Directors deems appropriate.

1.1.5        “Election Form” means the
Form attached as Exhibit 1.

1.1.6        “Fees” means the total
fees payable to the Director.

1.1.7        “Normal Retirement Date”
means the date on which the Director attains age 70.

1.1.8        “Prime Rate” shall mean
the highest base interest rate on corporate loans as declared in the Wall
Street Journal as of January 2 of each year, adjusted annually.

1.1.9        “Termination of Service”
means the Director’s ceasing to be a member of the Company’s Board of Directors
for any reason whatsoever.

Article 2

Deferral
Election

2.1   Initial Election.  The
Director shall make an initial deferral election under this Agreement by filing
with the Company a signed Election Form within 30 days after the date of this
agreement.  The Election Form shall set
forth the amount of Fees to be deferred and the form of benefit payment.  The Election Form shall be effective to defer
only Fees earned after the date the Election Form is received by the Company.

2.2   Election Changes.

2.2.1        Generally.  The
Director may modify the amount of Fees to be deferred by filing a subsequent
signed Election Form with the Company. 
The modified deferral

is subject to the approval of the Company and shall
not be effective until the calendar year following the year in which the
subsequent Election Form is received by the Company.  The Director may not change the form of
benefit payment initially elected under Section 2.1.

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

Article 3

Deferral
Account

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

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

3.1.2        Interest.  On the
first day of each monthly anniversary of the date of this Agreement, and
immediately prior to the payment of any benefits, interest on the account
balance shall accrue at an annual rate, compounded monthly, equal to Horry County
State Bank’s Prime Rate.  Beginning in
January 1998 and each year forward, on the first day of each monthly
anniversary of the date of this agreement, and immediately prior to the payment
of any benefits, interest on the account balance since the preceding credit
under this Section 3.1.2 shall accrue at an annual rate, compounded monthly,
equal to the Prime Rate.  The Board of
Directors retains the right to adjust the interest crediting rate at its
discretion.

3.2   Statement of Accounts. 
The Company shall provide to the Director, within one hundred twenty
(120) days after each anniversary of this Agreement, a statement setting forth
the Deferral Account balance.

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

Article 4

Lifetime
Benefits

4.1   Normal Retirement Benefit. 
If the Director terminates employment on or after the Normal Retirement
Date for reasons other than death, the Company shall pay to the Director the
benefit described in this Section 4.1.

4.1.1        Amount of Benefit. 
The benefit under this Section 4.1 is the Deferred Fee Account balance
at the Director’s Termination of Service.

4.1.2        Payment of Benefit. 
The Company shall pay the benefit to the Director in the form elected by
the Director on the Election Form.  The
Company shall continue to credit interest in the manner provided in Section
3.3.1 in the remaining account balance during any applicable installment
period.

4.2   Early Retirement Benefit. 
If the Director terminated employment prior to the Normal Retirement
Date, and for reasons other than death or Disability, the Company shall pay to
the Director the benefit described in this Section 4.2.

4.2.1        Amount of Benefit. 
The benefit under this Section 4.2 is calculated by recomputing the
Deferred Fee Account balance from its inception up to the date of the Director’s
Termination of Service, with the following modification:

4.2.2        Payment of Benefit. 
The Company shall pay the benefit to the Director in the form elected by
the Director on the Election Form.  The
Company shall continue

to credit interest in the manner provided in Section
3.1 on the remaining account balance during any applicable installment period.

4.3   Disability Benefit. 
If the Director terminates employment for Disability prior to the Normal
Retirement Date, the Company shall pay to the Director the benefit described in
this Section 4.3.

4.3.1        Amount of Benefit. 
The benefit under this Section 4.3 is the Deferred Fee Account balance
at the date of the Director’s Termination of Service.

4.3.2        Payment of Benefit. 
The Company shall pay the benefit to the Director, at the Company’s
discretion, either in a lump sum within 90 days, or in the form elected by the
Director on the Election Form.  The
Company shall continue to credit interest in the manner provided in section
3.1.2 on the remaining account balance during any applicable installment
period.

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

4.4.1        Amount of Benefit.  The
benefit under this Section 4.4 is the Deferred Fee Account balance at the date
of the Director’s Termination of Service.

4.4.2        Payment of Benefit.  The
Company shall pay the benefit to the Director in a lump sum within 90 days
after the Director’s Termination of Service.

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

Article 5

Death
Benefits

5.1   Death During Active Service. 
If the Director dies while in the active service of the Company, the
Company shall pay to the Director’s beneficiary the benefit described in this
Section 5.1.

5.1.1        Amount of Benefit. 
The benefit under Section 5.1 is the higher of $                   
or the Director’s Deferred Fee Account balance as of the date of death.

5.1.2        Payment of Benefit. 
The Company shall pay the benefit to the beneficiary as a lump sum within
90 days following the Director’s Death. 
The Company shall continue to credit interest under Section 3.1.2.

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

Article 6

Beneficiaries

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

6.2   Facility of Payment. 
If a benefit is payable to a beneficiary who is minor, to a person
declared incompetent, or to a person incapable of handling the disposition of
his or her

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

Article 7

General
Limitations

Notwithstanding any
provision of this Agreement to the contrary, the Company shall not pay any
benefit under this Agreement that is attributable to the interest earned on the
deferred Fees:

7.1   Excess Parachute Payment. 
To the extent any benefit permitted hereunder would be excessive under
Section 280G of the Code, the excess parachute payment will not be paid to the
Director.

7.2   Termination for Cause. 
If the Company terminates the Director’s service as a director for:

7.2.1        Gross negligence or gross
neglect of duties;

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

7.2.3        Fraud, dishonesty or
willful violation of any law or significant Company policy committed in
connection with the Director’s service and resulting in an adverse financial
effect on the Company

7.3   Suicide.  If the
Director commits suicide within two years after the date of this Agreement, or
if the Director has made any material misstatement of fact on any application
for life insurance purchased by the Company, then this Agreement shall
terminate and the Director shall automatically forfeit all amounts due
hereunder, except to the extent that he is vested.

Article 8

Claims
and Review Procedures

8.1   Claims Procedure.  The
Company shall notify the Director’s beneficiary in writing, within ninety (90)
days of his or her written application for benefits, of his or her eligibility
or noneligibility for benefits under the Agreement.  If the Company determines that the
beneficiary is not eligible for benefits or full benefits, the notice shall set
forth (1) the specific reasons for such denial, (2) a specific reference 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 beneficiary wishes to have the claim
reviewed.  If the Company determines that
there are special circumstances requiring additional time to make a decision,
the Company shall notify the beneficiary of the special circumstances and the
date by which a decision is expected to be made, and may extend the time for up
to an addition ninety-day period.

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

Article 9

Amendments
and Termination

The Company reserves the
right to amend or terminate this Agreement at any time prior to the Director’s
Termination of Service by written notice to the Director.  In no event shall this Agreement be
terminated without payment to the Director of the Deferred Fee Account balance
attributable to the Director’s deferrals and interest credited.

Article
10

Miscellaneous

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

10.2   No Guaranty of Employment. 
This Agreement is not a contract for services.  It does not give the Director the right to
remain an executive of the Company, nor does it interfere with the shareholder’s
rights to replace the Director.  It also
does not require the Director to remain a director nor interfere with the
Director’s right to terminate services at any time.

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

10.4   Tax Withholding.  The
Company shall withhold any federal income, state, employment, or other taxes
that are required to be withheld from the benefits provided under this
Agreement.

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

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

10.7   Prior Agreements.  This
Agreement sets forth the entire understanding of the parties hereto with
respect to the transactions contemplated hereby, and any previous agreements or
understandings between the parties hereto regarding the subject matter hereof
are merged into and superseded by this Agreement.

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

	
  DIRECTOR

  	
  Horry County State Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
  Cashier

  
						

 

I understand that I may not change the form of benefit elected, even if
I later change the amount of my deferrals under the Agreement.

Beneficiary
Designation

I designate the following
as beneficiary of benefits under the Deferred Compensation Agreement payable
following my death:

Primary:                                                                          

Contingent:                                                                     

Note: 
To name a trust as beneficiary, please provide the name of the trustee
and the exact 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

  	
   

  	
   

  
	
   

  
	
  Date

  	
   

  	
   

  
				

 

Accepted by the
Company this                  day
of                  ,
               .

	
  By

  	
   

  	
   

  
	
   

  
	
  Title

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