Document:

ex101.htm

    

     

    EXECUTIVE
EMPLOYMENT AGREEMENT

     

    Executive
Name:      Paul C. Campbell

     

    Title(s):                      Chief
Financial Officer, Senior Vice President and Treasurer

     

    Effective
Date:          May 8,
2009

     

    

     

    For good
consideration, the Company employs Paul C. Campbell on the following terms and
conditions (the “Agreement”) as of the above date between EMAGIN CORPORATION, a
Delaware corporation (the “Company”), and the above named executive
(“Executive”).

     

               1.
EMPLOYMENT AGREEMENT

     

     1.1.
Employment, Duties, and Responsibilities. The Company hereby employs Executive
as its Chief Financial Officer, Senior Vice President and Treasurer and
Executive accepts such employment on the terms contained in this Agreement.
Within limitations established by the Bylaws of the Company, Executive shall
have each and all of the duties, responsibilities and authorities that are
consistent with his title. The Company shall retain full direction and control
of the manner, means and methods by which Executive performs the services for
which he is employed hereunder and of the place or places at which such services
shall be rendered. Executive shall report to the Board of Directors of the
Company.  Executive shall report to the Company’s Chief Executive
Officer and shall have additional reporting to the Company’s Board of Directors,
or the executive may also be assigned for period of time to a management
committee as directed in writing by the Board of Directors.

     

    1.2.
Term.  This Agreement shall commence on May 8, 2009 and shall continue
hereafter, unless terminated pursuant to this Section 3, for a period of thirty
six (36) months from the date hereof.

     

    1.3. Time
and Effort.  Executive shall use his best efforts to carry out the
duties and responsibilities that are consistent with his title and devote the
substantial portion of his entire business time, attention, and energy
exclusively to the business and affairs of the Company. During Executive’s
employment Executive shall not engage in any business activities outside those
of the Company to the extent that such activities would interfere with or
prejudice Executive’s obligations to the Company. Executive may serve as a
member of the Board of Directors of other organizations that do not compete with
the Company, and may participate in other professional, civic, governmental
organizations and activities that do not materially affect his ability to carry
out his duties.

     

    1.4.
Service to the Board of Directors.  The executive will provide
information and services to the Company’s Chief Executive Officer, the Board of
Directors and its Committees as needed to support company business.

        

    
      
        
        

      

      
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               2.
COMPENSATION

     

    2.1. Base
Salary. As compensation for performing services for the Company, Executive shall
be entitled to an annual salary of $282,000, subject to the deduction of
applicable taxes, payable in bi-weekly installments consistent with the
Company’s payroll practices. The annual base salary will be reviewed on or
before January 1 of each year by the Compensation Committee to determine if such
base salary should be increased due to inflation or in recognition of
Executive’s services to the Company.

     

    2.2.
Bonus. The Board or Compensation Committee of the Board may provide executive
with a bonus from time to time at their discretion.

     

    2.3. Time
Off.  Executive shall accrue personal time off for sick leave,
personal reasons, and holidays according to applicable company policy, except
that Executive shall accrue personal time off for vacation in accordance with
the Executive’s accrual rate of 30 days per each calendar year, with a maximum
of 45 days of unused vacation rolled over to the subsequent year in addition to
each calendar’s year accrual. The limits for accrual and rollover of personal
time, other than vacation policy specified herein, shall be pursuant to Company
policy, as may be modified company-wide from time to time.

     

    2.4.
Benefit Plans.  During Executive’s employment, Executive shall be
entitled to participate, to the extent of Executive’s eligibility, in the
employee fringe benefits made available by the Company to its employees. Nothing
in this Agreement shall preclude the Company from terminating or amending any
employee benefit plan or program as a whole from time to time.

     

    2.5.
Business Expenses. Upon submission of itemized expense statements in the manner
specified by the Company, Executive shall be entitled to reimbursement for
reasonable travel, relocation, and other reasonable business expenses incurred
by the Executive in the performance of his duties under this Agreement, or as
agreed to by the Board of Directors.

     

    2.6.
Stock Options and Grants. Executive and the Company shall enter into an
agreement whereby, among other things, Executive shall be entitled to receive
340,000 qualified stock options (the “Options”), which shall entitle Executive
to purchase  340,000 shares of common stock of the Company priced at
the closing price of the stock on the date of grant. The Options shall vest as
follows: 1/3 shall vest on the date of this Agreement, 1/3 shall vest on 1st
annual anniversary of this Agreement, and 1/3 shall vest on the 2nd annual
anniversary of this Agreement. Executive shall be eligible to participate in the
Company’s Stock Option and Stock Purchase Plans, as determined in the sole
discretion of the Board of Directors. The Board or Compensation Committee of the
Board may provide additional awards of stock options or stock grants from time
to time or on an incentive plan as deemed appropriate.

     

    2.7
Payments to Tatum LLC.  Executive acknowledges that in connection with
the Employee’s employment by the Company the Company is obligated to make
certain payments to Tatum LLC, including the payment of $1,000 per month and the
issuance of options to purchase 60,000 shares of the Company’s
stock.  Executive hereby agrees that he has no claims to such
payments.

     

    
      
        
        

      

      
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               3.
TERMINATION OF EMPLOYMENT

     

    3.1.
Voluntary. If Executive voluntarily terminates Executive’s employment with the
Company, other than for Good Reason as defined in Section 3.4 herein, Executive
shall cease to accrue salary, personal time off, benefits and other compensation
on the date of voluntary termination. Accrued benefits, if any, will be payable
in accordance with applicable benefit plan provisions.

     

    3.2. With
Cause. Notwithstanding anything herein to the contrary, the Company may
terminate Executive’s employment hereunder for cause for any one of the
following reasons: (a) failure to devote substantially all of Executive’s full
professional time, attention, energies, and abilities to Executive’s employment
duties for the Company, which failure is not cured within two weeks after the
Company gives Executive written notice of the failure; (b) inducement of any
customer, consultant, employee, or supplier of the Company to unreasonably
breach any contract with the Company or cease its business relationship with the
Company; (c) willful, deliberate, and persistent failure by Executive to
reasonably perform the duties and obligations of Executive’s employment which
are not remedied in a 90 day period of time after receipt of written notice from
the Company; (d) an act or acts of dishonesty undertaken by Executive resulting
in substantial personal gain by the Executive at the expense of the Company; (e)
material breach of a fiduciary or contractual duty to the Company; (f)
conviction of a felony, or (g) commission of an act that results in material
long term harm to the goodwill or reputation of the Company. To be deemed
terminated for Cause, the Company shall have given Employee written notice
stating the alleged Cause and shall have provided Employee an opportunity to
present evidence to the Board of Directors, at the Company’s offices on a date
and time mutually convenient to the Board, no sooner than one and not later than
two weeks after the foregoing notice, to refute the claim of Cause. Executive
shall cease to accrue salary, personal time off, benefits and other compensation
on the date of “with cause” termination by the Company. Accrued benefits, if
any, will be payable in accordance with applicable benefit plan provisions of
the Company.

     

     3.3.
Without Cause. The Company may terminate the employment of Executive at any time
without notice and without cause (as defined in Section
3.2).   In such event, Executive shall, at the Company’s sole
discretion, be entitled to either (i) monthly salary payments for twelve (12)
months, based on Executive’s monthly rate of base salary at the date of such
termination, or (ii) a lump-sum payment of Executives salary for such 12 month
period, based on Executive’s monthly rate of base salary at the date of such
termination. Executive shall also be entitled to receive (i) payment for accrued
and unpaid vacation pay and (ii) all bonuses that have accrued during the term
of the Agreement, but not been paid. Any non-vested Options pursuant to Section
2.6 of this Agreement shall vest immediately. Furthermore, shares of any of the
Executive’s stock subject to any lockups will be, provided such release does not
violate any contract that the Company is a party to, immediately released from
such restrictions by the company within 30 days of termination without cause.
Executive will otherwise cease to accrue salary and other benefits upon the date
of such final payment, other than the Company’s normal insurance policies for
terminated employees.

     

    The
executive will be able to retain all electronic equipment, media, and supplies
provided by the company for use primarily by the employee off site, on loan for
up to one year from the termination date, after which the executive will return
the equipment. Copies of data files relevant to the company will be downloaded
on additional over 100GB capacity bulk storage media provided by the company.
All company proprietary files will be deleted from such equipment.

     

    3.4.
Effect of Termination without “Cause” on Employee Stock Options.  The
Company hereby irrevocably offers to amend any stock options granted to
Executive to permit the full exercise thereof following termination of
Executive’s employment without Cause (as defined in Section 3.3) or because of
death or disability. The Company hereby also irrevocably offers to amend any
stock options granted to Executive to permit the immediate full vesting and
exercise thereof (provided such amendment does not violate any contract that the
Company is a party to) at any time after termination of Executive’s employment
without Cause or because of death or Disability to the same extent as if
Executive’s employment had not terminated. Executive or Executive’s personal
representative may accept either or both of such offers at any time before such
options otherwise expire by giving written notice to the Company. To the extent
that any options held by Executive are not incentive stock options within the
meaning of Section 422 of the Internal Revenue Code, Executive hereby accepts
both such offers.

     

    
      
        
        

      

      
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    3.5.
Termination for Good Reason.  If Executive terminates his employment
with the Company for Good Reason (as hereinafter defined), such termination will
be considered to be effectively the same as termination without cause; he shall
be entitled to the severance benefits set forth in Section 3.3 and vesting
benefits set forth in Section 3.4. For purposes of this Agreement, “Good Reason”
shall mean any of the following unless such change was initiated by or
voluntarily agreed to by Executive: (a) any significant change in the
Executive’s title, or position, or duties and responsibilities not voluntarily
made; (b) any involuntary decrease in base salary (other than any which may be
assessed on a percentage basis to the company as a whole); or (c) any material
breach by the Company of this Agreement.

     

    3.6.
Change of Control. If the Executive’s employment is terminated or his position
significantly changed or salary decreased as a result of the acquisition of the
Company by merger, sale of all or substantially all of the Company’s assets, or
other reorganization resulting in a change of 50% or more in the ownership of
the Company’s stock (other than a change of 50% or more in the ownership of the
Company’s stock resulting from the issuance of equity securities by the Company
the primary purpose of which is to raise capital and which results in the pro
rata dilution of the equity interests of all holders of common stock immediately
prior to such issuance), Executive shall be entitled to the severance benefits
set forth in Section 3.3 and vesting benefits set forth in Section 3.4. Neither
this Agreement nor its incorporated terms may be invalidated or deleted or
altered as part of the terms of any Change of Control actions. The Company’s
rights and obligations under this Agreement will inure to the benefit and be
binding upon the Company’s successors and assignees.

     

    3.7.
Disability. The Company may terminate this Agreement without liability if
Executive shall be permanently prevented from properly performing his essential
duties with reasonable accommodation by reason of illness or other physical or
mental incapacity for a period of more than 60 consecutive days. Upon such
termination, Executive shall be entitled to all accrued but unpaid Base Salary,
accrued bonus (if any), and accrued but unused paid time off. In the event
Executive’s employment terminates under this Section, Executive may pursue long
term disability benefits, if eligible, under any plan which the Company has
provided for Executive.

     

    3.8.
Death.  In the event of the death of Executive, the Company’s
obligations hereunder shall automatically cease and terminate; provided,
however, that within 15 days the Company shall pay to Executive’s heirs or
personal representatives Executive’s Base Salary and accrued but unused vacation
pay to the date of death.  All other amounts due Executive, including
bonuses, shall be paid to Executive’s estate in accordance with the full term of
this Agreement.

     

    
      
        
        

      

      
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               4.
Non Competition, Non Solicitation, Bankruptcy

     

    4.1. Non
Competition. The Executive hereby covenants and agrees that during the term of
this Agreement and for a period of one year following the end of the employment
term, the Executive will not, without the prior written consent of the Company,
indirectly or directly, on his own behalf or in the service or on behalf of
others, whether or not for compensation, engage in any business activity, or
have any interest in any person, firm, corporation or business, through a
subsidiary or parent entity or other entity (whether as a shareholder, agent,
joint venturer, security holder, trustee, partner, consultant, creditor lending
credit or money for the purpose of establishing or operating any such business,
partner or otherwise) with any Competing Business of the Company in the Covered
Area. For purposes of the Section this Section “Competing Business” means any
company engaging in the design, development, manufacturing, and marketing of
virtual imaging products which utilize OLEDs, or organic light emitting diodes,
OLED on silicon micro displays and related information technology solutions. For
purposes of this Section  “Covered Area” means all geographical areas
of the United States and other Foreign jurisdictions where the Company has
offices, manufactures or may contemplate offices or manufacturing of related
products and/or sells its products directly or in-directly through distributors
and/or other sales agents.

     

    4.2. Non
Solicitation.  The Executive further agrees that the Executive will
not divert any business of the Company and/or its affiliates or any customers or
suppliers of the Company and/or the Company’s and/or its affiliates’ business to
any other person, entity or competitor, or induce or attempt to induce, directly
or indirectly, any person to leave his or her employment with the
Company.

     

     4.3.
Bankruptcy.  In the event that the Company voluntarily or involuntary
files for bankruptcy under the Bankruptcy Code, the Executive shall use his best
efforts in keeping the Company solvent and in assisting the Company emerge from
bankruptcy as a reorganized entity, unless the Company is
liquidated.

     

    4.4.
Remedies.  The Executive acknowledges and agrees that his obligations
provided herein are necessary and reasonable in order to protect the Company and
its affiliates and their respective business and the Executive expressly agrees
that monetary damages would be inadequate to compensate the Company and/or its
affiliates for any breach by the Executive of his covenants and agreements set
forth herein. Accordingly, the Executive agrees and acknowledges that any such
violation or threatened violation of this Section 4 will cause irreparable
injury to the Company and that in addition to any other remedies that may be
available, in law, in equity or otherwise, the Company and its affiliates shall
be entitled to obtain injunctive relief against the threatened breach of this
Section 4 or the continuation of any such breach by the Executive without the
necessity of proving actual damages.

     

    
      
        
        

      

      
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              5.
General Provisions

     

    5.1.
Modification: No Waiver. No modification, amendment or discharge of this
Agreement shall be valid unless the same is in writing and signed by all parties
hereto. Failure of any party at any time to enforce any provisions of this
Agreement or any rights or to exercise any elections hall in no way be
considered to be a waiver of such provisions, rights or elections and shall in
no way affect the validity of this Agreement. The exercise by any party of any
of its rights or any of their elections under this Agreement shall not preclude
or prejudice such party from exercising the same or any other right it may have
under this Agreement irrespective of any previous action taken.

     

    5.2.
Notices. All notices and other communications required or permitted hereunder or
necessary or convenient in connection herewith shall be in writing and shall be
deemed to have been given when hand delivered or mailed by registered or
certified mail as follows (provided that notice of change of address shall be
deemed given only when received):

     

    If to the
Company, to:

    eMagin
Corporation

    10500
N.E. 8th Street, Suite 1400

    Bellevue,
WA 98004

    Attention:
Chief Executive Officer

    

    With a
copy to:

    Richard
Friedman, Esq.

    Sichenzia
Ross Friedman Ference LLP

    61
Broadway

    New York,
New York 10006

    

    If to
Executive, to:

    Paul C.
Campbell

    9109
156th Place
N.E.

    Redmond,
Washington 98052

    

     

    Or to
such other names or addresses as the Company or Executive, as the case may be,
shall designate by notice to each other person entitled to receive notices in
the manner specified in this Section.

     

    5.3.
Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.

     

    5.4.
Further Assurances. Each party to this Agreement shall execute all instruments
and documents and take all actions as may be reasonably required to effectuate
this Agreement.

     

    5.5.
Severability. Should any one or more of the provisions of this Agreement or of
any agreement entered into pursuant to this Agreement be determined to be
illegal or unenforceable, then such illegal or unenforceable provision shall be
modified by the proper court or arbitrator to the extent necessary and possible
to make such provision enforceable, and such modified provision and all other
provisions of this Agreement and of each other agreement entered into pursuant
to this Agreement shall be given effect separately from the provisions or
portion thereof determined to be illegal or unenforceable and shall not be
affected thereby.

     

    
      
        
        

      

      
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    5.6.
Successors and Assigns. Executive may not assign this Agreement without the
prior written consent of the Company. The Company may assign its rights without
the written consent of the executive, so long as the Company or its assignee
complies with the other material terms of this Agreement. The rights and
obligations of the Company under this Agreement shall inure to the benefit of
and be binding upon the successors and permitted assigns of the Company, and the
Executive's rights under this Agreement shall inure to the benefit of and be
binding upon his heirs and executors. The Company's subsidiaries and controlled
affiliates shall be express third party beneficiaries of this
Agreement.

     

    5.7.
Entire Agreement. This Agreement supersedes all prior agreements and
understandings between the parties, oral or written. No modification,
termination or attempted waiver shall be valid unless in writing, signed by the
party against whom such modification, termination or waiver is sought to be
enforced.

     

    5.8.
Counterparts; Facsimile. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original,
and all of which taken together shall constitute one and the same instrument.
This Agreement may be executed by facsimile with original signatures to
follow.

     

    5.9 No
Conflicts.  The Executive represents and warrants to the Company that
the execution of this Agreement by him and his employment by the Company
pursuant to this Agreement does not and will not conflict with or violate any
agreement to which the Executive is a party to.

     

    IN
WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed
this Agreement as of the date first written above.

     

    

     

    [signature page follows]

     

    
      
        
        

      

      
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                    eMagin
      Corporation 

                  	 
      	 
      
	 
      	
                    By:
      /s/ Andrew G. Sculley, Jr.

                  	 
      	 
      
	 
      	
                    Andrew
      G. Sculley, Jr.

                  	 
      	 
      
	 
      	
                    Chief
      Executive Officer

                  	 
      	 
      
	 
      	
                    Date:
      May 8, 2009

                  	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                    /s/
      Paul C. Campbell

                  	 
      	 
      
	 
      	
                    Paul
      C. Campbell

                  	 
      	 
      

          

        

      

       

       
                                                

     

    6Exhibit 10.1

TAMALPAIS BANCORP

EXECUTIVE SEVERANCE PLAN

PLAN DOCUMENT AND SUMMARY PLAN DESCRIPTION

Table of Contents

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Section 1.

 	
 Introduction

 	
  

 	
 1

 	
  

 
	
 Section
 2.

 	
 Eligibility
 For Participation in the Plan

 	
  

 	
 1

 	
  

 
	
 Section
 3.

 	
 Eligibility
 For Separation Benefits

 	
  

 	
 3

 	
  

 
	
 Section
 4.

 	
 Separation
 Benefits

 	
  

 	
 4

 	
  

 
	
 Section
 5.

 	
 Notices

 	
  

 	
 5

 	
  

 
	
 Section
 6.

 	
 Claims

 	
  

 	
 5

 	
  

 
	
 Section
 7.

 	
 Plan
 Amendment and Termination

 	
  

 	
 7

 	
  

 
	
 Section
 8.

 	
 Legal
 Rights Under ERISA

 	
  

 	
 7

 	
  

 
	
 Section
 9.

 	
 Other
 Important Information

 	
  

 	
 9

 	
  

 
	
 Section 10.

 	
 Important Plan Information

 	
  

 	
 10

 	
  

 

i.

TAMALPAIS BANCORP

EXECUTIVE SEVERANCE PLAN

PLAN DOCUMENT AND SUMMARY PLAN DESCRIPTION

Section
1.     Introduction

The Tamalpais
Bancorp Executive Severance Plan (the “Plan”) is designed to provide severance
benefits to eligible full-time or part-time regular Executive employees of
Tamalpais Bancorp or its subsidiary (the “Company”) whose employment is
involuntarily terminated by the Company due to position elimination and who are
designated by Tamalpais Bancorp as eligible for participation in the Plan. The
Plan supersedes any prior plan, policy or practice involving the payment of
severance benefits by the Company. While the Plan is in effect, any severance benefits
provided to an Executive by the Company must be paid pursuant to the Plan or
pursuant to another express written agreement between the Company and the
Executive which agreement must be signed by such Executive and a duly
authorized officer of the Company (the “Severance Agreement”); provided that
severance benefits will be provided under either the Plan or the Severance
Agreement, whichever provides the greater benefit.

The Plan is
designed to be an “employee welfare benefit plan,” as defined in Section 3(1)
of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
and, accordingly, this Plan is governed by ERISA. This document constitutes
both the official plan document and the required summary plan description under
ERISA.

Section
2.     Eligibility For Participation in the Plan

To be eligible
to participate in the Plan, an Executive must be employed by the Company as a
regular employee and not excluded from eligibility under the categories or
circumstances described below, his or her employment must be involuntarily
terminated by the Company, and the Executive must be designated by the Company
as a Plan participant. An Executive will not be eligible to participate in the
Plan if his or her service with the Company continues in another position or
capacity following job elimination, regardless of position or capacity.

	
  

 	
  

 	
  

 
	
  

 	
 A.     Excluded
 Categories: The following categories of Executives or individuals are not
 eligible to participate in this Plan:

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ·

 	
 Any
 Executive classified as an intern or as a temporary employee is not eligible.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ·

 	
 Any
 individual classified by the Company in any of the following categories at
 the time of termination of services by the Company is not eligible, even if a
 court or agency determines such individual should have been classified as a
 common law employee: (i) an independent contractor or consultant, (ii) an
 individual paid by or through an agency or employee leasing company or other
 third party, (iii) a freelance worker not treated as an employee, or (iv) a
 leased employee.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ·

 	
 Any
 Executive who is a party to a written agreement with the Company, other than
 the Separation and General Release Agreement referenced in Section 3 below,
 which agreement provides any form of separation pay or benefits to such
 Executive.

 

1

	
  

 	
  

 
	
  

 	
 B.     Excluded
 Circumstances: An Executive will not be eligible to participate in the
 Plan if the circumstances of his or her termination are as follows:

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ·

 	
 The
 Executive voluntarily terminates employment, quits or abandons performance of
 his or her duties, unless the Executive has already received notice that his
 or her employment will be terminated by the Company due to job elimination
 and the Plan Administrator determines, in its sole discretion, that such Executive’s
 earlier voluntary termination is in the best interests of the Company;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ·

 	
 The
 Executive is discharged for Cause as defined below;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ·

 	
 The
 Executive is offered and accepts another position with the Company (or with a
 new owner in connection with a change of control or sale of all or part of
 the Company), whether before or after notification of the elimination of his
 or her current position that would otherwise result in termination of his or
 her employment, even if there is a gap in employment following elimination of
 such position and commencement of the new assignment; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ·

 	
 The
 Executive is offered and declines a Comparable Position (as defined below)
 with the Company (or with a new owner in connection with a change of control
 or sale of all or part of the Company). A Executive who is offered a
 Comparable Position who does not accept such position within 30 days (or such
 greater time for acceptance specified in a written offer) will be deemed to
 have declined such Comparable Position.

 

	
  

 	
  

 
	
  

 	
 C.     Definitions
 for Section 2:

 

“Cause,” as
determined by the Plan Administrator, shall include, but is not limited to: (i)
any act of material dishonesty; (ii) any material breach of a fiduciary duty
(involving personal profit); (iii) any habitual neglect of, or habitual
negligence in carrying out, the Executive’s duties relating to his or her
employment with the Company; (iv) any willful violation of any law, rule or
regulation, which, by virtue of the Company’s regulatory restrictions imposed
as a result thereof, would have a material adverse effect on the business or
financial prospects of the Company; (v) any conviction for of any felony or
misdemeanor that would bar the Company from employing the Executive under
applicable banking laws or regulations, or which may be reasonably interpreted
to be harmful to the Company’s, or its affiliate’s, reputation; (vi) any
failure by the Executive to qualify at any time during his or her employment
for any fidelity bond; (vii) the requirement to comply with any final
cease-and-desist order or written agreement with any applicable state or
federal regulatory authority which requests or orders the Executive’s dismissal
or limits the Executive’s employment duties; (viii) any conduct which
constitutes unfair competition with the Company or its affiliates; or (ix) the
inducement of any client, customer, agent or employee to break any contract or
terminate the agency or employment relationship with the Company or its
affiliates.

2

“Comparable
Position” means a position with the following attributes: (i) monthly base
salary or hourly pay rate equal to the Executive’s monthly base salary or
hourly pay rate immediately prior to termination, or total cash compensation
equal to at least 85% of the Executive’s combined annual base salary and annual
target incentive pay for the Executive’s immediately previous position; and
(ii) a work location no more than 35 miles from the Executive’s immediately
previous work location.

Section
3.     Eligibility For Separation Benefits

To be eligible
to receive separation benefits under the Plan, in addition to meeting the
requirements for eligibility to participate in the Plan, the participant must
meet the following conditions:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ·

 	
 The
 participant must execute a “Separation and General Release Agreement”
 satisfactory to the Plan Administrator and within the time period established
 by the Plan Administrator, which includes any or all of the following
 provisions: (i) the participant’s agreement to cooperate with the orderly
 transfer of his or her duties as requested by the Company; (ii) the
 participant’s agreement to return all Company property by a date specified by
 the Plan Administrator; (iii) the participant’s agreement to continue to
 maintain the confidentiality of Company proprietary and confidential
 information, and (iv) the participant’s waiver and general release of all
 claims with respect to the Company and related parties, including the right
 to pursue any type of legal, equitable, or administrative claim, except for
 rights or claims that by law are unwaivable. All separation benefits payable
 under the Plan are conditioned on (1) any waiver of claims included in the
 Separation and General Release Agreement becoming effective and irrevocable,
 and (2) satisfaction by the participant of his or her obligations under such
 agreement.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ·

 	
 The
 participant must not voluntarily terminate his or her employment or fail to
 perform his or her assigned duties prior to the termination date established
 by the Company, unless the Plan Administrator determines, in its sole
 discretion, that earlier voluntary termination is in the best interests of
 the Company.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ·

 	
 The
 participant must not engage in conduct that would be Cause for termination,
 as described above, as determined by the Plan Administrator in its sole
 discretion.

 

3

Section
4.     Separation Benefits

Separation Pay Amount. The amount of a
participant’s Separation Pay benefit under this Plan shall be the sum of the
Executive’s (A) Annual Base Pay, and (B) highest annual bonus paid in the three
consecutive years prior to the termination date, which sum will be multiplied
by the “Severance Pay Multiplier” provided in Appendix A. The Separation Pay
will be made in conjunction with the provisions below. The Plan Administrator
may, in its sole discretion, agree to provide a participant with a Separation
Pay benefit in excess of the formula described in Appendix A.

“Annual Base
Pay” means, as reflected on the Company’s payroll records:

	
  

 	
  

 
	
 ·

 	
 for a
 participant who is a full-time employee, such person’s regular weekly base
 salary or wages from the Company as of his or her termination date as
 reflected on the Company’s payroll records, excluding overtime, premiums,
 differentials, living, or other allowances or bonuses multiplied by 52; or

 
	
  

 	
  

 
	
 ·

 	
 for a
 participant who is a part-time employee, such person’s average weekly wages
 from the Company for the most recent four weeks during which the participant
 worked on at least two days, excluding overtime, premiums, differentials, living,
 or other allowances or bonuses multiplied by 52.

 

Separation Pay Reduction. Separation Pay shall
be reduced to the extent permitted by law, by any debt that the participant
owes the Company at the time the severance pay benefit becomes payable.

Lump Sum Payment of Separation Pay. The
Separation Pay for which a participant is eligible under this Plan will be paid
to the participant in a lump sum cash payment no later than the next regular
Company payroll date for the payroll period commencing immediately after the
effective date of the participant’s Separation and General Release Agreement
described above, as specified in such Separation and General Release Agreement,
and the participant’s satisfaction of all conditions for payment set forth in
the Separation and General Release Agreement referenced in Section 3 above.
Notwithstanding the foregoing, if section 409A of the Internal Revenue Code, as
amended (“Section 409A”), is determined to be applicable to the Separation Pay
that is payable to a participant under this Plan, payment shall be made on the
next regular Company payroll date following the 181st day after the
termination of the participant’s employment with the Company if the participant
is a “specified employee” within the meaning of Section 409A.

COBRA Premium Payment. Until the expiration of
the number of months under the heading “COBRA Coverage Period” set forth on
Appendix A (the “COBRA Coverage Period”), if (i) a participant is entitled to
health care coverage continuation rights under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”) and/or under the Cal-COBRA law, if
applicable (“Cal-COBRA”), and (ii) his or her signed Separation and General
Release Agreement, referenced in Section 3 above, becomes effective and irrevocable,
then the Company will bear the full cost of COBRA and/or California COBRA
continuation coverage for the Executive and the Executive’s qualified
dependents, commencing on the Executive’s termination date. Such payments shall
be paid directly to the applicable provider on a monthly basis, provided that
the Executive timely elects COBRA or Cal-COBRA continuation coverage for the
Executive and/or Executive’s qualified dependents, until the expiration of the
COBRA Coverage Period after which any further COBRA or Cal-COBRA continuation
coverage shall be at the Executive’s sole expense. Notwithstanding the
foregoing, the amount of benefits provided under this paragraph during a
calendar year may not affect the benefits to be provided in any other calendar
year.

4

Withholding. All
separation benefits provided under the Plan will be subject to all applicable
withholding deductions as required by law.

Section
5.     Notices

Any notice or
other communication under the Plan must be in writing and will be deemed given
when delivered personally or when sent by certified or registered mail, return
receipt requested, or by overnight courier, addressed as follows or to such
other address as any party may hereafter designate in accordance with this
provision:

	
  

 	
  

 	
  

 
	
  

 	
 If to Tamalpais or the Plan Administrator:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Tamalpais
 Bancorp

 
	
  

 	
  

 	
 630 Las
 Gallinas Avenue

 
	
  

 	
  

 	
 San Rafael,
 CA 94903

 
	
  

 	
  

 	
 Attn:
 Director of Human Resources

 
	
  

 	
  

 	
  

 
	
  

 	
 If to the participant: to the address
 appearing in the payroll records of the Company.

 

Section
6.     Claims

Initial Claims Procedure:
Any Executive who does not receive a benefit under the Plan that he or she
feels he or she is entitled to receive may make a written claim to the Plan
Administrator within 90 days after his or her termination, in accordance with
the Notice provisions described above, and which explains the reasons for such
claim. The claimant will be informed of the Plan Administrator’s decision with
respect to the claim within 90 days after it is filed. Under special
circumstances, the Plan Administrator may require an additional period of not
more than 90 days to review the claim. If that happens, the claimant will
receive a written notice of that fact, which will also indicate the special
circumstances requiring the extension of time and the date by which the Plan
Administrator expects to make a determination with respect to the claim. If the
extension is required due to the claimant’s failure to submit information
necessary to decide the claim, the period for making the determination will be
tolled from the date on which the extension notice is sent until the date on
which the claimant responds to the Plan Administrator’s request for
information.

5

If a claim is
denied in whole or in part, or any adverse benefit determination is made with
respect to the claim, the claimant will be provided with a written notice
setting forth the reason for the determination, along with specific references
to Plan provisions on which the determination is based. This notice will also
provide an explanation of what additional information is needed to evaluate the
claim (and why such information is necessary), together with an explanation of
the Plan’s claims review procedure and the time limits applicable to such
procedure, as well as a statement of the claimant’s right to bring a civil
action under Section 502(a) of ERISA following an adverse benefit determination
on review. If an internal rule, guideline, protocol, or other similar criterion
was relied upon in making the determination, the notice will either provide
that rule, guideline, protocol or other similar criterion or will contain a
statement that it will be provided upon request.

Claims Appeal Procedure: If the claim has been
denied, and the claimant wishes to pursue the claim further, the claimant must
request that the Plan Administrator review the denial. The request must be in
writing and must be made within 60 days after written notification of denial.
In connection with this request, the claimant may review documents pertinent to
the claim (other than those that are legally privileged) and may submit to the
Plan Administrator written comments, documents, records, and other information
related to the claim.

The review by
the Plan Administrator will take into account all comments, documents, records,
and other information that the claimant submits relating to the claim. The Plan
Administrator will make a final written decision on a claim review, in most
cases within 60 days after receipt of a request for a review. In some cases,
the claim may take more time to review, and an additional processing period of
up to 60 days may be required. If that happens, the claimant will receive a
written notice of that fact, which will also indicate the special circumstances
requiring the extension of time and the date by which the Plan Administrator
expects to make a determination with respect to the claim. If the extension is
required due to the claimant’s failure to submit information necessary to
decide the claim, the period for making the determination will be tolled from
the date on which the extension notice is sent to the claimant until the date
on which the claimant responds to the Plan’s request for information.

The Plan
Administrator’s decision on the claim for review will be communicated to the
claimant in writing. If an adverse benefit determination is made with respect
to the claim, the notice will include (i) the specific reason(s) for any
adverse benefit determination, with references to the specific Plan provisions
on which the determination is based; (ii) a statement that the claimant is
entitled to receive, upon request and free of charge, reasonable access to (and
copies of) all documents, records and other information relevant to the claim
(other than those that are legally privileged); and (iii) a statement of the
claimant’s right to bring a civil action under Section 502(a) of ERISA. If an
internal rule, guideline, protocol, or other similar criterion was relied upon
in making the determination, the notice will either provide that rule,
guideline, protocol or other similar criterion or will contain a statement that
it will be provided upon request. The decision of Plan Administrator is final
and binding on all parties.

Requirement to Follow Claims Procedures: If a
claimant does not file his or her claim in accordance with the Plan’s claim
procedures described above, including applicable time limits, the claimant will
not be entitled to benefits under this Plan.

Limitation on Legal Action: No legal action
with respect to this Plan may be brought until a claimant has exhausted the
claims procedures described above, including the claims appeal procedure. No
legal action for coverage or benefits under the Plan may be commenced or
maintained more than 2 years after the circumstances giving rise to the claim
arose or, if earlier, 1 year after the claims procedures, including the claims
appeal procedure, is exhausted.

6

Section 7.     Plan
Amendment and Termination

Tamalpais
Bancorp reserves the right to amend or modify the Plan at any time, and in any
respect, by action of its duly authorized officer, with or without prior notice
to, and effective with respect to, Executives who may become eligible to
participate in the Plan or become eligible for benefits under the Plan in the
case of a reduction in benefits payable under the Plan, or who may otherwise
have become eligible to participate in the Plan in the case of an amendment
that excludes such Executives from eligibility to participate under the Plan.
However, no such amendment or termination will be effective to decrease
benefits under the Plan for which an Executive has already received notice of
eligibility and who fulfills payment conditions set forth herein.

Section 8.     Legal
Rights Under ERISA

An Executive
covered under the Plan is entitled to certain rights and protections under
ERISA. ERISA provides that you are entitled to:

	
  

 	
  

 
	
  

 	
 Receive Information About Your Plan and Benefits

 
	
  

 	
  

 
	
  

 	
 Examine,
 without charge, at the Plan Administrator’s office and at other specified
 locations, such as worksites, all documents governing the Plan, including a
 copy of the latest annual report (Form 5500 Series), if any, filed by the
 Plan with the U.S. Department of Labor and available at the Public Disclosure
 Room of the Employee Benefits Security Administration.

 
	
  

 	
  

 
	
  

 	
 Obtain, upon
 written request to the Plan Administrator, copies of documents governing the
 operation of the Plan, including copies of the latest annual report (Form
 5500 Series), if any, and updated summary plan description. The Plan
 Administrator may make a reasonable charge for the copies.

 
	
  

 	
  

 
	
  

 	
 Receive a
 summary of the Plan’s annual financial report (if any). The Plan
 Administrator is required by law to furnish each participant with a copy of
 this summary annual report.

 

7

	
  

 	
  

 
	
  

 	
 Prudent Actions by Plan Fiduciaries

 
	
  

 	
  

 
	
  

 	
 In addition
 to creating rights for Plan participants, ERISA imposes duties upon the
 people who are responsible for the operation of the Plan. The people who
 operate the Plan, called “fiduciaries” of the Plan, have a duty to do so
 prudently and in the interest of the Plan participants and beneficiaries. No
 one, including the employer or any other person, may fire an employee or
 otherwise discriminate against an employee in any way to prevent such
 employee from obtaining a welfare benefit or exercising such employee’s
 rights under ERISA.

 
	
  

 	
  

 
	
  

 	
 Enforce Rights

 
	
  

 	
  

 
	
  

 	
 If a claim
 for a welfare benefit is denied or ignored, in whole or in part, the claimant
 has a right to know why this was done, to obtain copies of documents relating
 to the decision without charge, and to appeal any denial, all within certain
 time schedules.

 
	
  

 	
  

 
	
  

 	
 Under ERISA,
 there are steps an employee can take to enforce the above rights. For
 instance, if an employee makes a written request for a copy of Plan documents
 or the latest annual report from the Plan Administrator and does not receive
 them within 30 days, the employee may file suit in a Federal court. In such a
 case, the court may require the Plan Administrator to provide materials and
 pay the employee up to $110 a day until the employee receives the materials,
 unless the materials were not sent because of reasons beyond the control of
 the Plan Administrator.

 
	
  

 	
  

 
	
  

 	
 If an
 employee has a claim for benefits that is denied or ignored, in whole or in
 part, the employee may file suit in a state or Federal court. If it should
 happen that Plan fiduciaries misuse the Plan’s money or if an employee is
 discriminated against for asserting his or her rights, such employee may seek
 assistance from the U.S. Department of Labor, or such employee may file suit
 in a Federal court. The court will decide who should pay court costs and
 legal fees. If the employee is successful, the court may order the person
 sued to pay these costs and fees. If the employee loses, the court may order
 the employee to pay these costs and fees, for example, if it finds the
 employee’s claim is frivolous.

 

An employee
who has any questions about the Plan should contact the Plan Administrator. An
employee who has any questions about this statement or his or her rights under
ERISA should contact the nearest office of the Employee Benefits Security
Administration, U.S. Department of Labor, listed in the telephone directory, or
the Division of Technical Assistance and Inquiries, Employee Benefits Security
Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W.,
Washington, D.C. 20210.

8

Section 9.     Other
Important Information

No Additional Rights Created. Neither the
establishment of this Plan, nor any modification thereof, nor the payment of
any benefits hereunder, shall be construed as giving to any individual (or any
beneficiary of either), or other person any legal or equitable right against
the Company, or any of its affiliates, or any officer, director or employee
thereof; and in no event shall the terms and conditions of employment by the
Company (or any affiliate) of any individual be modified or in any way affected
by this Plan.

Records. The records of the Company with
respect to the determination of Eligible Years of Service, employment history,
Base Pay, absences, and all other relevant matters shall be conclusive for all
purposes of this Plan.

Construction. The Plan is intended to be
governed by ERISA. The respective terms and provisions of the Plan shall be
construed, whenever possible and for all purposes, to be in conformity with the
requirements of ERISA, or any subsequent laws or amendments thereto. To the
extent not in conflict with ERISA or the terms of the Plan, the construction
and administration of the Plan shall be in accordance with applicable federal
law and the laws of the State of California applicable to contracts made and to
be performed within the State of California (without application of California
conflict of laws provisions).

Nontransferability. In no event shall the
Company make any payment under this Plan to any assignee or creditor of an
Executive, except as otherwise required by law. Prior to the time of a payment
hereunder, an Executive shall have no rights by way of anticipation or
otherwise to assign or otherwise dispose of any interest under this Plan, nor
shall rights be assigned or transferred by operation of law.

Plan Interpretation and Benefit Determination.
The Plan is administered and operated by the Plan Administrator, which has
complete authority, in such person or entity’s sole and absolute discretion, to
construe and interpret the terms of the Plan (and any related or underlying
documents or policies), and to determine the eligibility for, and amount of,
benefits due under the Plan. All such interpretations and determinations of the
Plan Administrator shall be final and binding upon all parties and persons
affected thereby. The Plan Administrator may appoint one or more individuals
and delegate such of its powers and duties as it deems desirable to any such
individual(s), in which case every reference herein made to the Plan
Administrator shall be deemed to mean or include the appointed individual(s) as
to matters within their jurisdiction.

9

Section
10.     Important Plan Information

	
  

 	
  

 
	
 Sponsor’s Name and Address:

 	
 Tamalpais
 Bancorp

 
	
  

 	
 630 Las
 Gallinas Avenue

 
	
  

 	
 San Rafael,
 CA 94903

 
	
  

 	
  

 
	
 Plan Number:

 	
 510

 
	
  

 	
  

 
	
 Employer Identification Number:

 	
 68-0250217

 
	
  

 	
  

 
	
 Plan Administrator:

 	
 Tamalpais
 Bancorp

 
	
  

 	
  

 
	
  

 	
 The Plan
 Administrator has delegated day-to-day administration of the Plan to the
 following person:

 
	
  

 	
 Director
 Human Resources

 
	
  

 	
  

 
	
 Agent to Receive Process:

 	
 Tamalpais
 Bancorp

 
	
  

 	
 630 Las
 Gallinas Avenue

 
	
  

 	
 San Rafael,
 CA 94903

 
	
  

 	
 Attn: Anjana
 Berde, Director Human Resources

 
	
  

 	
  

 
	
 Type of Plan:

 	
 The Plan is
 an unfunded employee welfare benefit plan. Benefits under the Plan are paid
 from the general assets of Tamalpais Bancorp. Benefits under the Plan are not
 insured by the Pension Benefit Guaranty Corporation.

 
	
  

 	
  

 
	
 Effective Date:

 	
 January 1,
 2009

 
	
  

 	
  

 
	
 Plan Year:

 	
 The calendar
 year, from January 1 to December 31.

 

10

Appendix A

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Severance Pay Multiplier

 	
  

 	
 COBRA Coverage Period

 (in months)

 
	
  

 	
  

 	 

 	
  

 	 

 	
  

 
	
 CEO

 	
  

 	
  

 	
 1.5

 	
  

 	
  

 	
 18

 
	
 EVP

 	
  

 	
  

 	
 1.0

 	
  

 	
  

 	
 12

 
	
 SVP

 	
  

 	
  

 	
 0.5

 	
  

 	
  

 	
 6

 
	
 FVP

 	
  

 	
  

 	
 0.25

 	
  

 	
  

 	
 3

 

December 24, 2008

Mark Garwood

11 Rock Rd.

Kentfield, CA 94904

Re:     Executive Severance
Plan

Dear Mark,

In the event your employment is terminated from
Tamalpais Bancorp and its affiliates during your employment, you will be
eligible to participate in the Tamalpais Bancorp Executive Severance Plan (the
“Plan”). A copy of the Plan, which may be amended from time to time in
accordance with its terms, is attached to this letter.

You will be eligible to receive the sum of your annual
base salary as of your termination date, multiplied by one and one-half (1.5)
and your highest annual bonus paid in the three consecutive years prior to your
termination date. In addition, you will receive continuation of health coverage
for 18 months, as described in the Plan.

Your participation in the Plan is subject to the terms
and conditions of the Plan, including your execution and non-revocation of a
release of claims as set forth in Section 3 of the Plan.

Sincerely,

	
  

 	
  

 	
  

 
	
 

 	
  

 
	
 Dr. Carolyn B. Horan, Chairman of the Board

 	
  

 
	
  

 	
  

 	
  

 
	
 Acknowledged:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	 

 	
  

 	
  

 
	
 Mark Garwood

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Dated: ________________________

 	
  

 	
  

 

December 24, 2008

Michael E. Moulton

56 Lucky Drive

Corte Madera, CA 94925

Re:     Executive Severance
Plan

Dear Michael,

In the event your employment is terminated from
Tamalpais Bancorp and its affiliates during your employment, you will be
eligible to participate in the Tamalpais Bancorp Executive Severance Plan (the
“Plan”). A copy of the Plan, which may be amended from time to time in
accordance with its terms, is attached to this letter.

You will be eligible to receive the sum of your annual
base salary as of your termination date, and your highest annual bonus paid in
the three (3) consecutive years prior to your termination date. In addition,
you will receive continuation of health coverage for twelve (12) months, as
described in the Plan.

Your participation in the Plan is subject to the terms
and conditions of the Plan, including your execution and non-revocation of a
release of claims as set forth in Section 3 of the Plan.

Sincerely,

	
  

 	
  

 	
  

 
	
 Mark Garwood

 	
  

 
	
 President, Chief Executive Officer

 	
  

 
	
  

 	
  

 	
  

 
	
 Acknowledged:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	 

 	
  

 	
  

 
	
 Michael Moulton

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Dated: ________________________

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