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                                                                  EXHIBIT 10.1

                            ANGELICA CORPORATION

                            EMPLOYMENT AGREEMENT

         This agreement (this "Agreement") has been entered into this 1st
day of June 2005 by and between Angelica Corporation, a Missouri corporation
(the "Company"), and David A. Van Vliet, an individual (the "Executive").

         WHEREAS, the Board of Directors of the Company has determined that
it is in the best interests of the Company and its stockholders to retain
the Executive in the employ of the Company as President and Chief Operating
Officer of the Company as of the Effective Date (as defined below); and

         WHEREAS, this Agreement contains the terms and conditions that have
been negotiated by the Company and the Executive as an inducement to the
Executive to accept an offer of employment with the Company and as an
incentive to reinforce and encourage the continued attention and dedication
of the Executive to the Company and its business throughout the Employment
Period (as defined below), even in connection with a Change in Control;

         NOW THEREFORE, in consideration of the mutual promises herein
contained, the parties hereby agree as follows:

SECTION 1:    DEFINITIONS AND CONSTRUCTION.

         1.1  DEFINITIONS. For purposes of this Agreement, the following
words and phrases, whether or not capitalized, shall have the meanings
specified below, unless the context plainly requires a different meaning.

              1.1(a) "ACCRUED OBLIGATIONS" has the meaning set forth in
              Section 4.1(a) of this Agreement.

              1.1(b) "ANNUAL BONUS" has the meaning set forth in Section
              2.4(b) of this Agreement.

              1.1(c) "ANNUAL BASE SALARY" has the meaning set forth in
              Section 2.4(a) of this Agreement.

              1.1(d) "BOARD" means the Board of Directors of the Company.

              1.1(e) "CAUSE" has the meaning set forth in Section 3.3 of
              this Agreement.

              1.1(f) "CHANGE IN CONTROL" means:

                     (i) The acquisition by any individual, entity or
                     group, or a Person (within the meaning of Section
                     13(d)(3) or 14(d)(2) of the Exchange Act) of
                     ownership of

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                     20% or more of either (a) the then outstanding shares
                     of common stock of the Company (the "Outstanding
                     Company Common Stock") or (b) the combined voting
                     power of the then outstanding voting securities of
                     the Company entitled to vote generally in the
                     election of directors (the "Outstanding Company
                     Voting Securities"); or

                     (ii)Individuals who, as of the date hereof,
                     constitute the Board (the "Incumbent Board")
                     cease for any reason to constitute at least a
                     majority of the Board; provided, however, that
                     any individual becoming a director subsequent to
                     the Effective Date whose election, or nomination
                     for election, by the Company's stockholders was
                     approved by a vote of at least a majority of the
                     directors then comprising the Incumbent Board
                     shall be considered as though such individual
                     were a member of the Incumbent Board, but
                     excluding, as a member of the Incumbent Board,
                     any such individual whose initial assumption of
                     office occurs as a result of an actual or
                     threatened solicitation of proxies or consents by
                     or on behalf of a Person other than the Board; or

                     (iii) Approval by the stockholders of the Company
                     of a reorganization, merger or consolidation, in
                     each case, unless, following such reorganization,
                     merger or consolidation, (1) more than 50% of,
                     respectively, the then outstanding shares of
                     common stock of the corporation resulting from
                     such reorganization, merger or consolidation and
                     the combined voting power of the then outstanding
                     voting securities of such corporation entitled to
                     vote generally in the election of directors is
                     then beneficially owned, directly or indirectly,
                     by all or substantially all of the individuals
                     and entities who were the beneficial owners,
                     respectively, of the Outstanding Company Common
                     Stock and Outstanding Company Voting Securities
                     immediately prior to such reorganization, merger
                     or consolidation in substantially the same
                     proportions as their ownership, immediately prior
                     to such reorganization, merger or consolidation,
                     of the Outstanding Company Common Stock and
                     Outstanding Company Voting Securities, as the
                     case may be, (2) no Person beneficially owns,
                     directly or indirectly, 20% or more of,
                     respectively, the then outstanding shares of
                     common stock of the corporation resulting from
                     such reorganization, merger or consolidation or
                     the combined voting power of the then outstanding
                     voting securities of such corporation, entitled
                     to vote generally in the election of directors,
                     and (3) at least a majority of the members of the
                     board of directors of the corporation resulting
                     from such reorganization, merger or consolidation
                     were members of the Incumbent Board at the time
                     of the execution of the initial agreement
                     providing for such reorganization, merger or
                     consolidation; or

                     (iv)Approval by the stockholders of the Company
                     of (1) a complete liquidation or dissolution of
                     the Company or (2) the sale or other disposition
                     of all or substantially all of the assets of the
                     Company, other than to a corporation, with
                     respect to which following such sale or other
                     disposition, (A) more than 50% of, respectively,
                     the then outstanding shares of common stock of
                     such corporation and the combined voting power of
                     the then outstanding voting securities of such

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                     corporation entitled to vote generally in the
                     election of directors is then beneficially owned,
                     directly or indirectly, by all or substantially
                     all of the individuals and entities who were the
                     beneficial owners, respectively, of the
                     Outstanding Company Common Stock and Outstanding
                     Company Voting Securities immediately prior to
                     such sale or other disposition in substantially
                     the same proportions as their ownership,
                     immediately prior to such sale or other
                     disposition, of the Outstanding Company Common
                     Stock and Outstanding Company Voting Securities,
                     as the case may be, (B) no Person beneficially
                     owns, directly or indirectly, 20% or more of,
                     respectively, the then outstanding shares of
                     common stock of such corporation and the combined
                     voting power of the then outstanding voting
                     securities of such corporation entitled to vote
                     generally in the election of directors and (C) at
                     least a majority of the members of the board of
                     directors of such corporation were members of the
                     Incumbent Board at the time of the execution of
                     the initial agreement or action of the Board
                     providing for such sale or other disposition of
                     assets of the Company.

              1.1(g) "CHANGE IN CONTROL DATE" means the date that a Change
              in Control first occurs.

              1.1(h) "COMPANY" has the meaning set forth in the first
              paragraph of this Agreement and, with regard to successors, in
              Section 7.2 of this Agreement.

              1.1(i) "DATE OF TERMINATION" has the meaning set forth in
              Section 3.8 of this Agreement.

              1.1(j) "DISABILITY" has the meaning set forth in Section 3.2
              of this Agreement.

              1.1(k) "DISABILITY EFFECTIVE DATE" has the meaning set forth
              in Section 3.2 of this Agreement.

              1.1(l) "EFFECTIVE DATE" means June 6, 2005.

              1.1(m) "EMPLOYMENT PERIOD" means the period beginning on the
              Effective Date and ending on the Date of Termination.

              1.1(n) "ENTITLEMENT DATE" has the meaning set forth in Section
              4.2 of this Agreement.

              1.1(o) "EXCHANGE ACT" means the Securities Exchange Act of
              1934, as amended.

              1.1(p) "GOOD REASON" has the meaning set forth in Section 3.4
              of this Agreement.

              1.1(q) "INCUMBENT BOARD" has the meaning set forth in Section
              1.1(f)(ii) of this Agreement.

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              1.1(r) "LONG-TERM BONUS" has the meaning set forth in Section
              2.4(c) of this Agreement.

              1.1(s) "NOTICE OF TERMINATION" has the meaning set forth in
              Section 3.7 of this Agreement.

              1.1(t) "OTHER BENEFITS" has the meaning set forth in Section
              4.4 of this Agreement.

              1.1(u) "OUTSTANDING COMPANY COMMON STOCK" has the meaning set
              forth in Section 1.1(f)(i) of this Agreement.

              1.1(v) "OUTSTANDING COMPANY VOTING SECURITIES" has the meaning
              set forth in Section 1.1(f)(i) of this Agreement.

              1.1(w) "PERSON" means any "person" within the meaning of
              Sections 13(d) and 14(d) of the Exchange Act.

              1.1(x) "RESTRICTED SHARES" has the meaning set forth in
              Section 2.4(e) of this Agreement.

              1.1(y) "SUPPLEMENTAL PLAN" has the meaning set forth in
              Section 2.4(f) of this Agreement.

         1.2  GENDER AND NUMBER. When appropriate, pronouns in this Agreement
used in the masculine gender include the feminine gender, words in the
singular include the plural, and words in the plural include the singular.

         1.3  HEADINGS. All headings in this Agreement are included solely
for ease of reference and do not bear on the interpretation of the text. As
used in this Agreement, the terms "Article" and "Section" mean the text that
accompanies the specified Article or Section of the Agreement.

         1.4  APPLICABLE LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of Missouri, without
reference to its conflict of law principles.

SECTION 2:    TERMS AND CONDITIONS OF EMPLOYMENT.

         2.1  PERIOD OF EMPLOYMENT; TERM OF AGREEMENT. The Executive shall
remain in the employ of the Company throughout the Employment Period in
accordance with the terms and provisions of this Agreement. Either party to
this Agreement may terminate the Employment Period (and the Executive's
employment with the Company) at any time by giving the other party a Notice
of Termination, subject only to the obligation of the Company to pay the
benefits to the Executive as specified in Section 4 of this Agreement. The
term of this Agreement shall begin as of the Effective Date and shall end on
the Date of Termination.

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         2.2  POSITIONS AND DUTIES.

              2.2(a) Throughout the Employment Period, the Executive shall
              serve as President and Chief Operating Officer of the Company,
              subject to the reasonable directions of the Chief Executive
              Officer of the Company and the Board. The Executive shall have
              such authority and shall perform such duties as are specified
              in or contemplated by the Bylaws of the Company for the
              offices to which he has been appointed and shall so serve
              subject to the control exercised by the Chief Executive
              Officer of the Company and the Board from time to time.

              2.2(b) Throughout the Employment Period (but excluding any
              periods of vacation and sick leave to which the Executive is
              entitled), the Executive shall devote reasonable attention and
              time during normal business hours to the business and affairs
              of the Company and shall use his reasonable best efforts to
              perform faithfully and efficiently such responsibilities as
              are assigned to him under or in accordance with this
              Agreement; provided that, it shall not be a violation of this
              Section 2.2(b) for the Executive to (i) serve on corporate,
              civic or charitable boards or committees, (ii) deliver
              lectures or fulfill speaking engagements, or (iii) manage
              personal investments, so long as such activities do not
              significantly interfere with the performance of the
              Executive's responsibilities as an employee of the Company in
              accordance with this Agreement or violate the Company's
              conflict of interest policy as is in effect at such times. The
              Executive agrees that during the Employment Period the
              Executive will serve on no more than two corporate boards of
              directors, of which not more than one such board membership
              will be with a corporation that has securities that are
              publicly traded on a national stock exchange, the Nasdaq
              Market or the like.

         2.3  SITUS OF EMPLOYMENT. Throughout the Employment Period, the
Executive's services shall be performed at the Company's divisional
headquarters offices located in the greater Atlanta, Georgia metropolitan
area.

         2.4  COMPENSATION.

              2.4(a) ANNUAL BASE SALARY. The Executive will initially
              receive an annual base salary ("Annual Base Salary") of Three
              Hundred Ten Thousand Dollars ($310,000.00), which shall be
              paid in equal or substantially equal bi-weekly installments.
              During the Employment Period, the Annual Base Salary payable
              to the Executive shall be reviewed by the Board and/or the
              Compensation and Organization Committee, initially in February
              2006 and not less than once annually thereafter, and shall be
              increased at the discretion of the Board or the Compensation
              and Organization Committee of the Board but shall not be
              reduced without the consent of the Executive.

              2.4(b) ANNUAL INCENTIVE BONUSES. In addition to Annual Base
              Salary, the Executive will be entitled to earn an incentive
              bonus for each fiscal year (the "Annual Bonus") during the
              Employment Period. The Board will set, on or before the 90th
              day of such fiscal year, the criteria which will be required
              to be achieved by the Executive

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              during the fiscal year to earn all or a specified percentage
              of his Annual Bonus. The maximum Annual Bonus that the
              Executive may earn is one hundred percent (100%), and the
              target bonus is fifty percent (50%), of the Executive's
              then-current Annual Base Salary; PROVIDED, HOWEVER, that for
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              the 2005 fiscal year ending January 28, 2006, any Annual Bonus
              the Executive may earn will be prorated for the eight months
              during which the Executive will be employed by the Company in
              the fiscal year; and, PROVIDED, FURTHER, that the Executive's
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              Annual Bonus for the 2005 fiscal year shall not be less than
              One Hundred Twenty-Four Thousand Dollars ($124,000.00). Except
              as set forth in this Section 2.4(b) and Section 4 below, the
              Executive must be employed on the last day of the fiscal year
              in order to be entitled to receive an Annual Bonus for such
              fiscal year.

              2.4(c) LONG-TERM INCENTIVE PLAN AWARDS. The Executive will be
              entitled to earn long-term incentive awards payable in
              accordance with a plan established by the Board or the
              Compensation and Organization Committee (the "Long-Term
              Incentive Awards"). The Executive will be eligible to earn
              Long-Term Incentive Awards during the Employment Period
              beginning with the 2006 to 2009 performance period on the
              basis of the achievement of performance goals established for
              the three-year performance periods. The Board will set, on or
              before the 90th day of such performance period, the
              performance goals to be achieved during the performance period
              that is then commencing in order for the Executive to earn all
              or a specified portion of each Long-Term Incentive Award. The
              Long-Term Incentive Award amount that may be earned by the
              Executive will be set at sixty percent (60%) of the
              Executive's Annual Base Salary at the beginning of the
              performance period.

              2.4(d) STOCK OPTIONS. As a material inducement to the
              Executive to accept employment with the Company as its
              President and Chief Operating Officer, the Board will grant to
              the Executive as of the Effective Date, options to purchase
              Fifty Thousand (50,000) shares of the Company's Common Stock
              with an exercise price equal to the closing price of the
              Company's Common Stock on the New York Stock Exchange on the
              day prior to the Effective Date. The options shall have a term
              of ten years from the date of grant and all such options shall
              vest and become exercisable on January 28, 2006.

              As an additional material inducement to the Executive to
              accept employment with the Company, the Board will grant to
              the Executive as of the Effective Date additional options to
              purchase: (i) Twenty-Five Thousand (25,000) shares of the
              Company's Common Stock with an exercise price equal to 105% of
              the closing price of the Company's Common Stock on the New
              York Stock Exchange on the day prior to the Effective Date,
              and (ii) Twenty-Five Thousand (25,000) shares of the Company's
              Common Stock with an exercise price equal to 110% of the
              closing price of the Company's Common Stock on the New York
              Stock Exchange on the day prior to the Effective Date. Each of
              these additional options shall have a term of ten years from
              the date of grant and all such options shall vest and become
              exercisable on January 28, 2006.

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              The options described in this Section 2.4(d) will be granted
              outside the Company's existing stock-based compensation plan,
              but the Company will use its best efforts to file, and have
              declared effective, a registration statement covering the
              issuance of the shares subject to these options as soon as
              practicable after the date of grant.

              2.4(e) RESTRICTED STOCK. As a material inducement to the
              Executive to accept employment with the Company as its
              President and Chief Operating Officer, the Board will grant to
              the Executive as of the Effective Date an award of Twenty
              Thousand (20,000) shares of the Company's Common Stock (the
              "Restricted Shares"). Unless vested sooner upon the occurrence
              of a Change in Control, four thousand (4,000) of the
              Restricted Shares shall be scheduled to vest upon the final
              determination as of the end of each fiscal year of the Company
              starting with the 2005 fiscal year and ending with the 2009
              fiscal year that net revenue increases at a cumulative rate of
              at least fifteen percent (15%) on an annual basis from the
              2004 fiscal year baseline net revenue from continuing
              operations (i.e., $316 million) AND gross margin increases by
                          ----                ---
              at least 0.9% on an annual basis from the 2004 fiscal year
              baseline gross margin from continuing operations (i.e.,
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              15.5%). To the extent that the Restricted Shares for a
              particular fiscal year do not fully vest due to the failure to
              achieve the performance levels set forth in the immediately
              preceding sentence: (i) two-thirds (2/3) of the Restricted
              Shares attributable to such fiscal year will vest if the
              cumulative rate of increase in net revenue from the 2004
              fiscal year baseline through the end of such fiscal year is at
              least ten percent (10%) on an annual basis AND the increase in
                                                         ---
              gross margin from the 2004 fiscal year baseline through the
              most recently completed fiscal year is at least 0.6% on an
              annual basis, or (ii) one-third (1/3) of the Restricted Shares
              attributable to such fiscal year will vest if the cumulative
              rate of increase in net revenue from the 2004 fiscal year
              baseline through the end of such fiscal year is at least seven
              percent (7%) on an annual basis AND the cumulative increase in
                                              ---
              gross margin from the 2004 fiscal year baseline through the
              end of such fiscal year is at least 0.3% on an annual basis.
              For purposes of this Section 2.4(e), there will be no prorated
              vesting of Restricted Stock above the designated partial
              vesting levels if actual performance for a fiscal year is
              higher than the levels designated.

              To the extent that all or a portion of the Restricted Shares
              that were scheduled to vest in a prior fiscal year or years
              did not vest due to the failure to meet the cumulative
              performance levels for such fiscal year or years, all or the
              designated portion of the those unvested Restricted Shares
              applicable to prior fiscal years will vest in any subsequent
              fiscal year if, and at the level that, the cumulative
              performance levels for such subsequent fiscal year are
              achieved. By way of illustration, assume that for the 2005
              fiscal year, only 1/3 of the Restricted Shares attributable to
              that year are vested on the basis of the cumulative
              performance levels through fiscal 2005, and in the 2006 fiscal
              year only 2/3 of the Restricted Shares attributable to that
              year are vested on the basis of the cumulative performance
              levels through fiscal 2006 and in the 2007 fiscal year all of
              the Restricted Shares attributable to that year are vested on
              the basis of the cumulative performance levels through fiscal
              2007. In this case, 1/3 of the 4,000 Restricted Shares
              attributable to the 2005 fiscal year, or 1,333 Restricted
              Shares, would fully vest after the 2005 fiscal year. After the
              2006 fiscal year, 2/3 of the 4,000 Restricted Shares

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              attributable to the 2006 fiscal year, or 2,667 Restricted
              Shares, PLUS another 1/3 of the Restricted Shares, or 1,333
              Restricted Shares, attributable to the 2005 fiscal year that
              remained unvested after the 2005 fiscal year, would fully
              vest. After the 2007 fiscal year, all 4,000 Restricted Shares
              attributable to the 2007 fiscal year PLUS the remaining 1/3 of
              the original shares attributable to the 2005 and 2006 fiscal
              years, 2,666 Restricted Shares in the aggregate, that had not
              vested after the prior fiscal year or years, would fully vest.

              The Restricted Shares described in this Section 2.4(e) will be
              awarded outside the Company's existing stock-based
              compensation plan, but the Company will use its best efforts
              to file, and have declared effective, a registration statement
              covering the issuance of the Restricted Shares as soon as
              practicable after the date of the award.

              2.4(f) SAVINGS, DEFERRED COMPENSATION AND RETIREMENT PLANS.
              Throughout the Employment Period, the Executive shall be
              entitled to participate in all savings, deferred compensation
              and retirement plans generally available to other peer
              executives of the Company, including the Company's 401(k) Plan
              and the Supplemental Retirement Benefits Plan. For purposes of
              the Supplemental Retirement Benefits Plan (the "Supplemental
              Plan"), the Executive will participate at the maximum
              percentage of forty percent (40%) of his final average
              compensation for purposes of computing the Executive's
              benefits thereunder.

              2.4(g) WELFARE BENEFIT PLANS. Throughout the Employment Period
              (and thereafter, subject to Sections 4.1(c) and 4.2(e) of this
              Agreement), the Executive and/or the Executive's family, as
              the case may be, shall be eligible for participation in and
              shall receive all benefits under welfare benefit plans,
              practices, policies and programs provided by the Company
              (including, without limitation, medical, prescription, dental,
              disability, salary continuance, employee life, group life,
              accidental death and travel accident insurance plans and
              programs) to the extent generally available to other peer
              executives of the Company.

              2.4(h) RELOCATION EXPENSES. As set forth in Section 2.3 of
              this Agreement, the Executive's principal office shall be
              located in the Company's divisional headquarters in
              metropolitan Atlanta, Georgia. The Executive's current plans
              are to purchase a condominium in the Atlanta, Georgia
              metropolitan area and maintain his primary home in the St.
              Louis, Missouri metropolitan area for a period of up to two
              years after the Effective Date. The Company will pay the
              Executive a relocation bonus equal to Fifty Thousand Dollars
              ($50,000.00), due and payable upon the Executive closing on
              the purchase of a condominium for his personal use in the
              Atlanta, Georgia metropolitan area. The Company will also pay
              to the Executive an additional relocation bonus of Twenty-Five
              Thousand Dollars ($25,000.00), due and payable upon the
              Executive being accepted for membership and joining a golf or
              country club in the Atlanta, Georgia metropolitan area. The
              Company will also reimburse the Executive for dues related to
              such club membership not to exceed Three Hundred Twenty-Five
              Dollars ($325.00) per month. The Executive shall also be
              reimbursed for his actual out-of-pocket expenses

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              associated with his move from the St. Louis, Missouri
              metropolitan area to the Atlanta, Georgia metropolitan area,
              subject to submission to the Company of proper documentation
              to reasonably support the reimbursement. For a period of two
              years after the Effective Date, the Executive will also be
              reimbursed for the full cost of his commercial airfare between
              Atlanta, Georgia and St. Louis, Missouri that is not otherwise
              reimbursable under the Company's business expense
              reimbursement policies, practices and procedures as set forth
              in Section 2.4(i). The Executive will also be reimbursed for
              the full cost of his spouse's commercial airfare between
              Atlanta, Georgia and St. Louis, Missouri for up to ten (10)
              round trips per year during the two-year period after the
              Effective Date. The Executive will also be provided with a
              leased vehicle mutually acceptable to the Executive and the
              Company for his business and/or non-business uses while in the
              Atlanta, Georgia metropolitan area, with such lease payments
              and other leasing expenses (but not operating or maintenance
              expenses) borne by the Company for the period of two years
              after the Effective Date.

              2.4(i) BUSINESS EXPENSES. Throughout the Employment Period,
              the Executive shall be entitled to receive prompt
              reimbursement for all reasonable business expenses incurred by
              the Executive in the conduct of the business of the Company
              (including travel and entertainment expenses) in accordance
              with the policies, practices and procedures generally
              applicable within the Company.

              2.4(j) OFFICE AND SUPPORT STAFF. Throughout the Employment
              Period, the Executive shall be entitled to an office or
              offices of a size and with furnishings and other appointments,
              and to secretarial and other assistance commensurate with his
              office, duties and responsibilities with the Company.

              2.4(k) VACATION. For the balance of the 2005 fiscal year after
              the Effective Date, the Executive shall be entitled to two (2)
              weeks of paid vacation. Beginning in the 2006 fiscal year and
              thereafter throughout the Employment Period, the Executive
              shall be entitled to paid vacation equal to four (4) weeks per
              year.

SECTION 3:    TERMINATION OF EMPLOYMENT.

         3.1  DEATH. The Executive's employment shall terminate automatically
upon the Executive's death during the Employment Period.

         3.2 DISABILITY. If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period
(pursuant to the definition of Disability set forth below), the Company may
give to the Executive written notice in accordance with Section 8.2 of its
intention to terminate the Executive's employment. In such event, the
Executive's employment with the Company shall terminate effective on the
thirtieth (30th) day after receipt of such notice by the Executive (the
"Disability Effective Date"), provided that, within the thirty (30) days
after such receipt, the Executive shall not have returned to full-time
performance of the Executive's duties. For purposes of this Agreement,
"Disability" shall mean that the Executive has been unable to perform the
services required of the Executive under this Agreement on a full-time basis
for a period of one hundred eighty (180)

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consecutive regular business days by reason of a physical and/or mental
condition. "Disability" shall be deemed to exist when certified by a
physician selected by the Company and acceptable to the Executive or the
Executive's legal representative (such agreement as to acceptability not to
be withheld unreasonably). The Executive will submit to such medical or
psychiatric examinations and tests as such physician deems necessary to make
any such Disability determination.

         3.3  TERMINATION FOR CAUSE. The Company may terminate the
Executive's employment during the Employment Period for "Cause," which shall
mean termination based upon: (a) the Executive's willful and continued
failure to substantially perform his duties with the Company (other than as
a result of incapacity due to physical or mental condition), after a written
demand for substantial performance is delivered to the Executive by the
Board or the Chief Executive Officer, which specifically identifies the
manner in which the Executive has not substantially performed his duties,
(b) the Executive's commission of an act constituting a criminal offense
involving moral turpitude, dishonesty, or breach of trust, or (c) the
Executive's material breach of any provision of this Agreement. For purposes
of this Section 3.3, no act or failure to act on the Executive's part shall
be considered "willful" unless done or omitted to be done without good faith
on the part of the Executive and without the Executive's reasonable belief
that the act or omission was in the best interest of the Company.
Notwithstanding the foregoing, the Executive shall not be deemed to have
been terminated for Cause unless and until (x) he receives a Notice of
Termination from the Company, (y) he is given the opportunity, with counsel,
to be heard before the Board or the Compensation and Organization Committee,
and (z) the Board or the Compensation and Organization Committee, as the
case may be, finds, in its good faith opinion, the Executive was guilty of
the conduct set forth in the Notice of Termination.

         3.4  GOOD REASON. The Executive may terminate his employment with
the Company during the Employment Period for "Good Reason," which shall
mean:

              3.4(a) the assignment to the Executive of any duties
              inconsistent in any respect with the Executive's position
              (including status, offices, titles and reporting
              requirements), authority, duties or responsibilities as
              contemplated by Section 2.2(a) or any other action by the
              Company which results in a diminution in such position,
              authority, duties or responsibilities, excluding for this
              purpose any action (i) not taken in bad faith by the Company
              and (ii) which the Company remedies promptly after receipt of
              notice thereof given by the Executive;

              3.4(b) (i) the failure by the Company to continue in effect
              any benefit or compensation plan, stock ownership plan, life
              insurance plan, health and accident plan or disability plan to
              which the Executive is entitled as specified in Section 2.4,
              provided that the Company may amend, modify or replace any
              such plan or plans as long as the Executive is entitled to
              benefits under the amended, modified or replaced plan or plans
              that are substantially similar to those of the plan or plans
              so amended, modified or replaced, (ii) the taking of any
              action by the Company which would adversely affect the
              Executive's participation in, or materially reduce the
              Executive's benefits under, any plans described in Section
              2.4, or deprive the Executive of any benefits enjoyed by the
              Executive as described in Section 2.4(i) and (j), or (iii) the
              failure by the Company to

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              provide the Executive with paid vacation to which the
              Executive is entitled as described in Section 2.4(k);

              3.4(c) the Company's requiring the Executive to be based at
              any office or location other than that described in Section
              2.3;

              3.4(d) a material breach by the Company of any provision of
              this Agreement;

              3.4(e) any purported termination by the Company of the
              Executive's employment otherwise than as expressly permitted
              by this Agreement; or

              3.4(f) in connection with a Change in Control, the failure of
              a successor of the Company to expressly assume and agree to
              perform this Agreement pursuant to the provisions of Section
              7.2 of this Agreement prior to the Change in Control Date;
              provided, however, that a termination of employment by the
              Executive: (A) subsequent to an express assumption and
              agreement to perform this Agreement by such successor on or
              after the Change in Control Date, or (B) subsequent to a date
              that is two years after a Change in Control Date, shall not be
              deemed to be for "Good Reason" under this subsection.

         For purposes of this Section, any good faith determination of "Good
Reason" made by the Executive shall be conclusive unless and until such
determination is overturned by a court of competent jurisdiction.

         3.5  VOLUNTARY TERMINATION BY THE EXECUTIVE. The Executive may
voluntarily terminate his employment with the Company for any reason or for
no reason at any time during the Employment Period.

         3.6  TERMINATION BY THE COMPANY WITHOUT CAUSE. The Company may
terminate the Executive's employment with the Company for any reason or for
no reason, without citing Cause, at any time during the Employment Period,
subject to the provisions of Section 4 of this Agreement.

         3.7  NOTICE OF TERMINATION. Any termination by the Company or by the
Executive shall be communicated by Notice of Termination given in accordance
with Section 8.2 to the other party. For purposes of this Agreement, a
"Notice of Termination" means a written notice which (i) indicates the
specific termination provision in this Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive's
employment under the provision so indicated, and (iii) if the Date of
Termination (as defined in Section 3.8 hereof) is other than the date of
receipt of such notice, specifies the Date of Termination. The failure by
the Executive or the Company to set forth in the Notice of Termination any
fact or circumstance which contributes to a showing of Good Reason or Cause
shall not waive any right of the Executive or the Company hereunder or
preclude the Executive or the Company from asserting such fact or
circumstance in enforcing the Executive's or the Company's rights hereunder.

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         3.8  DATE OF TERMINATION. "Date of Termination" means (i) if the
Executive's employment is terminated by the Company for Cause or any other
reason, the date of receipt by the Executive of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the
Executive's employment is terminated by reason of death or Disability, the
date of death of the Executive or the Disability Effective Date, as the case
may be, or (iii) if the Executive's employment is terminated by the
Executive for Good Reason, the date specified in the Notice of Termination
which date shall not be more than thirty (30) or less than fifteen (15) days
after the receipt of such notice; or (iv) if the Executive's employment is
terminated by the Executive voluntarily (either prior to or after a Change
in Control Date), the date that is specified in the Notice of Termination.
If within thirty (30) days after any Notice of Termination is given, the
party receiving such Notice of Termination notifies the other party that a
dispute exists concerning the termination, the Date of Termination shall be
the date on which the dispute is finally determined, either by mutual
written agreement of the parties, or by a final judgment, order or decree of
a court of competent jurisdiction (the time for appeal therefrom having
expired and no appeal having been perfected).

SECTION 4:    CERTAIN BENEFITS UPON TERMINATION.

         4.1  TERMINATION WITHOUT CAUSE OR FOR GOOD REASON NOT IN CONNECTION
WITH A CHANGE IN CONTROL. If, prior to a Change in Control Date during the
Employment Period (except in the event that one of the following
terminations of employment occurs within the six-month period prior to the
earlier of (a) a Change in Control Date or (b) the execution of a definitive
agreement or contract that eventually results in a Change in Control, which
shall result in the payment of severance benefits set forth in Section 4.2
of this Agreement), (i) the Company shall terminate the Executive's
employment without Cause, or (ii) the Executive shall terminate his
employment for Good Reason, the Executive shall be entitled to the payment
of the benefits provided below:

              4.1(a) ACCRUED OBLIGATIONS. Within thirty (30) days after the
              Date of Termination, the Company shall pay to the Executive
              the sum of (i) the Executive's Annual Base Salary through the
              Date of Termination to the extent not previously paid, (ii)
              the accrued benefit payable to the Executive under any
              compensation plan, program or arrangement in which the
              Executive is a participant subject to the computation of
              benefits provisions of such plan, program or arrangement, and
              (iii) any accrued vacation pay; in each case to the extent not
              previously paid (the "Accrued Obligations").

              4.1(b) ANNUAL BASE SALARY CONTINUATION. For a period of twelve
              (12) months beginning in the month immediately subsequent to
              the month in which the Date of Termination occurs, the Company
              shall pay to the Executive, on a bi-weekly basis consistent
              with its then-existing payroll practices, an amount equal to
              one/twenty-sixth (1/26th) of the Executive's then-current
              Annual Base Salary. The Company at any time may elect to pay
              the balance of such payments then remaining in a lump sum,
              without discount.

              4.1(c) CONTINUATION OF MEDICAL AND HEALTH BENEFITS. The
              Company shall, during the period specified below in this
              Section 4.1(c), continue to make available to the

                                     12

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              Executive and to other eligible members of his immediate
              family, medical and health benefits equivalent to those to
              which the Executive and the eligible members of his immediate
              family would have been entitled had the Executive's employment
              with the Company continued. Such benefits will be made
              available to the Executive for a period not to exceed twelve
              (12) months following the Date of Termination, or until such
              time as reasonably comparable benefits become available to the
              Executive and the eligible members of his immediate family
              under another employer-provided plan, whichever occurs
              earlier. Such benefits, for so long as they are made available
              hereunder, shall be made available to the Executive at a cost
              to the Executive that is not greater than his cost would have
              been had his employment with the Company continued.

              4.1(d) ACCELERATION OF VESTING OF CERTAIN STOCK OPTIONS.
              Notwithstanding anything to the contrary contained in this
              Agreement, in any stock-based compensation plan maintained by
              the Company under which stock options have been granted to the
              Executive, or in any stock option agreement entered into
              between the Company and the Executive pursuant to such plan or
              otherwise, any stock options held by the Executive that have
              not expired as of the Date of Termination that are scheduled
              to vest in accordance with their respective terms within the
              twelve-month period following the Date of Termination shall be
              deemed to have vested immediately prior to the Date of
              Termination. Any such option, and each option that vested
              prior to the Date of Termination but remain unexercised on the
              Date of Termination, shall remain exercisable in accordance
              with the terms of the stock-based compensation plan and/or the
              stock option agreement under which such stock option was
              initially awarded to the Executive.

         4.2  BENEFITS UPON TERMINATION WITHOUT CAUSE OR FOR GOOD REASON IN
CONNECTION WITH A CHANGE IN CONTROL. If (a) a Change in Control occurs
during the Employment Period and within one (1) years after the Change in
Control Date (i) the Company shall terminate the Executive's employment
without Cause, or (ii) the Executive shall terminate employment with the
Company for Good Reason, OR, alternatively, (b) if one of the
above-described terminations of employment occurs within the six-month
period prior to the earlier of (i) a Change in Control Date or (ii) the
execution of a definitive agreement or contract that eventually results in a
Change in Control, then the Executive shall become entitled to the payment
of the benefits as provided below as of either (y) the Date of Termination,
in the case where the sequence of the requisite events is as set forth in
subsection (a) above or (z) the Change in Control Date, in the case where
the sequence of the requisite events occurred as set forth in subsection (b)
above (the relevant date for purposes of entitlement to the benefits as set
forth in this Section 4.2 is hereinafter referred to as the "Entitlement
Date"):

              4.2(a) ACCRUED OBLIGATIONS. Within thirty (30) days after the
              Entitlement Date, the Company shall pay to the Executive the
              Accrued Obligations.

              4.2(b) SEVERANCE AMOUNT. Subject to Section 5.1(a) of this
              Agreement, the Company shall pay to the Executive within
              thirty (30) days after the Entitlement Date as severance pay
              in a lump sum, in cash, an amount equal to one and one-half
              (1 1/2) times an amount equal to the Executive's then-current
              Annual Base Salary.

                                     13

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              4.2(c) PRO-RATED ANNUAL BONUS. Subject to Section 5.1(a) of
              this Agreement, the Company shall pay to the Executive within
              thirty (30) days after the Entitlement Date in a lump-sum
              payment, in cash, an amount equal to the Executive's maximum
              Annual Bonus for the fiscal year in which the Entitlement Date
              occurs, prorated with the numerator being the number of months
              in the fiscal year to the Entitlement Date (including the
              month in which the Entitlement Date occurs as a full month)
              and the denominator being 12. This payment will be in lieu of
              any right of the Executive to receive an Annual Bonus for the
              fiscal year in which the Entitlement Date occurs.

              4.2(d) STOCK OPTIONS AND RESTRICTED STOCK. To the extent not
              otherwise provided for under the terms of the Company's
              stock-based compensation plans or the Executive's award or
              grant agreements, all stock options and restricted stock held
              by the Executive that have not expired in accordance with
              their respective terms shall fully vest as of the Entitlement
              Date.

              4.2(e) MEDICAL AND HEALTH BENEFIT CONTINUATION. The Executive
              will be entitled to the continuation for two (2) years after
              the Entitlement Date of medical and health benefits to the
              Executive and/or the Executive's family at least equal to
              those which would have been provided to them in accordance
              with the plans, programs, practices and policies described in
              Section 2.4(g) if the Executive's employment with the Company
              had not been terminated; provided, however, that if the
              Executive becomes reemployed with another employer and is
              eligible to receive medical or health benefits under another
              employer-provided plan, the medical and health benefits
              described herein shall be secondary to those provided under
              such other plan during such applicable period of eligibility.

              4.2(f) SUPPLEMENTAL RETIREMENT BENEFITS. The Company shall
              credit the Executive as of the Entitlement Date with an
              additional five (5) years of service to be aggregated with the
              Executive's actual years of service under the Supplemental
              Plan for purposes of the calculation of the Executive's
              entitlement to benefits under such plan.

         4.3  BENEFITS UPON TERMINATION BY THE EXECUTIVE WITHOUT GOOD CAUSE
IN CONNECTION WITH A CHANGE IN CONTROL. If a Change in Control occurs and
the Executive determines to terminate his employment with the Company within
six months after the Change in Control Date without a showing of Good
Reason, then the Executive shall become entitled to the payment of benefits
as provided below:

              4.3(a) ACCRUED OBLIGATIONS. Within thirty (30) days after the
              Date of Termination, the Company shall pay to the Executive
              the Accrued Obligations.

              4.3(b) SEVERANCE AMOUNT. Within thirty (30) days after the
              Date of Termination, the Company shall pay to the Executive as
              severance pay in a lump sum, in cash, an amount equal to
              one-half (1/2) times the Executive's then-current Annual Base
              Salary.

                                     14

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<PAGE>

              4.3(c) STOCK OPTIONS AND RESTRICTED STOCK. To the extent not
              otherwise provided for under the terms of the Company's
              stock-based compensation plans or the Executive's award or
              grant agreements, all stock options and restricted stock held
              by the Executive that have not expired in accordance with
              their respective terms shall fully vest as of the Date of
              Termination.

              4.3(d) SUPPLEMENTAL RETIREMENT BENEFITS. The Company shall
              credit the Executive as of the Date of Termination with an
              additional five (5) years of service to be aggregated with the
              Executive's actual years of service under the Supplemental
              Plan for purposes of the calculation of the Executive's
              entitlement to benefits under such plan.

         4.4  DEATH. If the Executive's employment is terminated by reason of
the Executive's death during the Employment Period (either prior or
subsequent to the Change in Control Date), this Agreement shall terminate
without further obligations to the Executive's legal representatives under
this Agreement, other than for (i) payment of Accrued Obligations (which
shall be paid to the Executive's estate or beneficiary, as applicable, in a
lump sum in cash within thirty (30) days of the Date of Termination) and
(ii) the timely payment or provision of such other benefits required to be
paid or provided by the Company to the Executive or the Executive's family
under any plan, program, policy, practice, contract or agreement of the
Company generally provided to other peer executives and their families
("Other Benefits"), including all such benefits payable in the event of
death.

         4.5  DISABILITY. If the Executive's employment is terminated by
reason of the Executive's Disability during the Employment Period (either
prior or subsequent to a Change in Control), this Agreement shall terminate
without further obligations to the Executive, other than for (i) payment of
Accrued Obligations (which shall be paid to the Executive in a lump sum in
cash within thirty (30) days of the Date of Termination) and (ii) the timely
payment or provision of Other Benefits including all such benefits payable
in the event of Disability.

         4.6  TERMINATION FOR ANY OTHER REASON. If the Executive's employment
shall be terminated for Cause or by the Executive voluntarily (either prior
to or subsequent to the six-month period after the Change in Control Date as
set forth in Section 4.3), this Agreement shall terminate without further
obligations to the Executive other than the obligation to pay to the
Executive the Accrued Obligations. In such case, all of the Executive's
Accrued Obligations shall be paid to the Executive in a lump sum in cash
within thirty (30) days of the Date of Termination.

         4.7  ENTIRE AGREEMENT; BENEFITS UNDER OTHER PLANS SUPERSEDED. This
Agreement is the entire agreement of the parties on the subject matter
contained herein. The benefits payable pursuant to this Agreement are in
lieu of and in substitution for any termination benefits payable by the
Company in conjunction with any other plan, program, policy, practice,
contract or agreement that the Company may have had either in the past,
currently or in the future.

         4.8  FULL SETTLEMENT. The parties agree that the Company's
obligation to make the payments provided for in this Agreement and otherwise
to perform its obligations hereunder are intended to be in full settlement
of all claims that the Executive may have against the Company with respect
to the termination of the Executive's employment with the Company and the
Executive may be required to

                                     15

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execute and deliver an agreement to this effect prior to receipt of any
payments under this Agreement. The payments to be made by the Company or any
other obligation that the Company is required to perform pursuant to this
Agreement shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against
the Executive or others. In no event shall the Executive be obligated to
seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this
Agreement and, except as provided in Sections 4.1(c) and 4.2(e), such
amounts shall not be reduced whether or not the Executive obtains other
employment. To the extent the Executive prevails in any contest with respect
to the validity or enforceability of, or liability under, any provision of
this Agreement or any guarantee of performance thereof (including as a
result of any contest by the Executive regarding the amount of any payment
pursuant to this Agreement), the Company agrees to pay promptly, to the full
extent permitted by law, all legal fees and expenses which the Executive may
reasonably incur as a result of any such contest, plus in each case interest
on any delayed payment at the applicable Federal rate provided for in Code
Section 7872(f)(2)(A).

         4.9  RESOLUTION OF DISPUTES. If there shall be any dispute between
the Company and the Executive (i) as to whether any termination of the
Executive's employment was for Cause, or (ii) as to whether any termination
of the Executive's employment for Good Reason was made in good faith, then,
unless and until there is a final, non-appealable judgment by a court of
competent jurisdiction declaring that such termination was for Cause or that
the determination by the Executive of the existence of Good Reason was not
made in good faith, the Company shall pay all amounts, and provide all
benefits, to the Executive and/or the Executive's family or other
beneficiaries, as the case may be, that the Company would be required to pay
or provide pursuant to Section 4.1 or 4.2 as though such termination was
without Cause or for Good Reason, as the case may be; provided, however,
that the Company shall not be required to pay any disputed amounts pursuant
to this Section 4.9 except upon receipt of an undertaking by or on behalf of
the Executive to repay all such amounts to which the Executive is ultimately
adjudged by such court not to be entitled.

SECTION 5:    RETENTION BENEFITS AFTER CHANGE IN CONTROL.

         5.1  ENTITLEMENT TO RETENTION BENEFITS. In the event that after a
Change in Control, the Executive is retained in the employment of the
Company without the occurrence of Good Reason and the Executive does not
exercise his right to terminate after a Change in Control without Good
Reason under Section 4.3, the Executive shall receive the payment of the
following benefits as a retention bonus:

              5.1(a) RETENTION BONUS. On the date that is six (6) months
              after the Change in Control Date, if the Executive remains
              employed by the Company on such date, the Company shall pay to
              the Executive the first installment of a retention bonus in a
              lump sum, in cash, amount equal to three-quarters (3/4) of the
              Executive's then-current Annual Base Salary plus one-half
              (1/2) of the Executive's maximum Annual Bonus for the fiscal
              year in which the Change in Control Date occurs, with the
              Annual Bonus amount to be prorated with the numerator being
              the number of months in the fiscal year to the Change in
              Control Date (including the month in which the Change in
              Control occurs as a full month) and the denominator being 12.
              On the date that is twelve (12) months after the Change in
              Control Date, if the Executive remains employed by the Company
              on such

                                     16

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              date, the Company shall pay to the Executive the second
              installment of the retention bonus in a lump sum, in cash,
              equal to the first installment of the retention bonus as set
              forth in this Section 5.1(a). Any amounts paid to Executive
              pursuant to this Section 5.1(a) will reduce on a
              dollar-for-dollar basis the payments that would be made to the
              Executive, if any, pursuant to Sections 4.2(b) and 4.2(c) of
              this Agreement.

              5.1(b) SUPPLEMENTAL RETIREMENT BENEFITS. If the Executive
              remains employed as of the date that is twelve (12) months
              after the Change in Control Date, the Company shall credit the
              Executive as of the Date of Termination with an additional
              five (5) years of service to be aggregated with the
              Executive's actual years of service under the Supplemental
              Plan for purposes of the calculation of the Executive's
              entitlement to benefits under such plan.

SECTION 6:    NON-COMPETITION.

         6.1  NON-COMPETE AGREEMENT.

              6.1(a) During the period beginning on the Date of Termination
              and ending one (1) year thereafter, the Executive shall not,
              without prior written approval of the Board, become a partner,
              officer, director, stockholder, advisor, employee, consultant,
              agent, salesman or otherwise of any business enterprise in
              substantial direct competition (as defined in Section 6.1(b))
              with the Company or any of its subsidiaries in the United
              States or in any other country in which the Company does
              business on the Date of Termination; provided that, if the
              Executive's employment is terminated for Good Reason, then the
              Executive will not be subject to the restrictions of this
              Section 6.1(a). This restriction will not limit the
              Executive's right to invest in five percent (5%) or less of
              the outstanding capital stock or other equity securities of
              any corporation, the stock or securities of which are publicly
              traded on a national stock exchange.

              6.1(b) For purposes of Section 6.1, a business enterprise with
              which the Executive becomes associated shall be considered in
              substantial direct competition, if such entity competes with
              the Company or its subsidiaries in any business in which the
              Company or any of its subsidiaries is engaged and is within
              the Company's or the subsidiary's market area as of the Date
              of Termination.

              6.1(c) During the period beginning on the Date of Termination
              and ending one (1) year thereafter, the Executive shall not
              directly or indirectly solicit the employment of, recruit,
              employ, hire, cause to be employed or hired, entice away or
              establish a business relationship with, (i) any then current
              employee of the Company or any of its subsidiaries or (ii) any
              person who was employed by the Company or any of its
              subsidiaries during the six (6) months immediately prior to
              the date that the Executive first solicits such person.

         6.2  CONFIDENTIAL INFORMATION. The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its
affiliated companies, and their respective businesses, which shall have been
obtained by the Executive during the Executive's employment by the Company
and which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this
Agreement). After termination of the Executive's employment with the
Company, the Executive shall not, without the prior written consent of the
Company, or as may otherwise be required by law or legal process,
communicate or divulge any such information, knowledge or data to anyone
other than the Company and those designated by it. In no event shall an
asserted violation of the provisions of this Section constitute a basis for
deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

                                     17

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SECTION 7:    SUCCESSORS.

         7.1  SUCCESSORS OF THE EXECUTIVE. This Agreement is personal to the
Executive and, without the prior written consent of the Company, the rights
(but not the obligations) shall not be assignable by the Executive otherwise
than by will or the laws of descent and distribution. This Agreement shall
inure to the benefit of and be enforceable by the Executive's legal
representatives.

         7.2  SUCCESSORS OF COMPANY. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform
it if no such succession had taken place. Failure of the Company to obtain
such agreement prior to the effectiveness of any such succession shall be a
breach of this Agreement and may entitle the Executive to terminate this
Agreement for Good Reason pursuant to Section 3.4(f). As used in this
Agreement, "Company" shall mean the Company as hereinbefore defined and any
successor to its business and/or assets which assumes and agrees to perform
this Agreement by operation of law, or otherwise.

SECTION 8:    MISCELLANEOUS.

         8.1  OTHER AGREEMENTS. The Board may, from time to time in the
future, provide other incentive programs and bonus arrangements to the
Executive with respect to the occurrence of a Change in Control that will be
in addition to the benefits required to be paid in the designated
circumstances in connection with the occurrence of a Change in Control. Such
additional incentive programs and/or bonus arrangements will affect or
abrogate the benefits to be paid under this Agreement only in the manner and
to the extent explicitly agreed to by the Executive in any such subsequent
program or arrangement.

         8.2  NOTICE. For purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall
be deemed to have been duly given when delivered or mailed by certified or
registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses as set forth below; provided that all notices shall be
directed to such other address as one party may have furnished to the other
in writing in accordance herewith, except that notice of change of address
shall be effective only upon receipt.

              Notice to Executive:

              David A. Van Vliet
              c/o Angelica Textile Services, Inc.
              1105 Sanctuary Parkway
              Suite 210
              Alpharetta, Georgia 30004

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                  Notice to Company:

                  Angelica Corporation
                  424 South Woods Mill Road
                  Chesterfield, Missouri  63017-3406
                  Attention: Secretary

         8.3  VALIDITY. The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any
other provision of this Agreement.

         8.4  WITHHOLDING. The Company may withhold from any amounts payable
under this Agreement such Federal, state or local taxes as shall be required
to be withheld pursuant to any applicable law or regulation.

         8.5  WAIVER. The Executive's or the Company's failure to insist upon
strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company
may have hereunder, including, without limitation, the right of the
Executive to terminate employment for Good Reason pursuant to Section 3.4
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

IN WITNESS WHEREOF, the Executive and, the Company, pursuant to the
authorization from its Board, have caused this Agreement to be executed in
its name on its behalf, all as of the day and year first above written.

                                 "Executive"

                                 /s/ David A. Van Vliet
                                 ---------------------------------------
                                 David A. Van Vliet

                                 "Company"

                                 ANGELICA CORPORATION

                                 By: /s/ Steven L. Frey
                                     -----------------------------------
                                 Name: Steven L. Frey
                                       ---------------------------------
                                 Title: Vice President
                                        --------------------------------

                                     19June 6 2005 Exhibit 10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the "Agreement") is entered into as of
May 16, 2005 (the "Effective Date"), by and between HERITAGE BANK OF COMMERCE, a California
banking corporation (the "Bank") and Raymond Parker, an individual (the "Executive").

RECITALS

WHEREAS, the Board of Directors of the Bank has approved and authorized the entry into this Agreement
with the Executive; and

WHEREAS, the parties desire to enter into this Agreement to set forth the terms and conditions for the
employment relationship of the Executive with the Bank.

AGREEMENT

NOW, THEREFORE, in consideration of the promises and mutual covenants and agreements herein
contained and intending to be legally bound hereby, the Bank and the Executive hereby agree as follows:

	Employment.  

1.1    Title.  The Executive is employed as Executive Vice President/Banking Division of the Bank.  In
this capacity, the Executive shall have such duties and responsibilities as may be designated to him by the President of the Bank and in
accordance with the objectives or policies of the Board of Directors, from time to time, in connection with the business activities of the
Bank.

1.2    Full-Time Employment.  During the Term (as defined in Section 2), and excluding any period of
vacation and sick leave to which the Executive is entitled, the Executive agrees to devote his full attention and time during normal
business hours to the business and affairs of the Bank in a manner and with such results as are consistent with his position and
compensation and to use the Executive's best efforts to perform such responsibilities.  During the Term it shall not be a violation of this
Agreement for the Executive to (A) serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking
engagements or teach at educational institutions and (C) manage personal investments, so long as such activities do not significantly
interfere with the performance of the Executive's responsibilities as an employee of the Bank in accordance with this Agreement.

1.3    Standard.  The Executive will set a high standard of professional conduct given his role with the
Bank and his responsibility relative to the Bank's presence and stature in the community.  The Executive will, at all times, emulate this
high professional standard of conduct in order to develop and enhance the Bank's reputation and image.  The Executive will comply
with all applicable rules, policies and procedures of the Bank and any of its subsidiaries and all pertinent regulatory standards as may
affect the Bank.

1.4    Location.  The Executive shall provide services for the Bank at its
principal executive offices located in San Jose California. The Executive agrees that the Executive will be regularly present at the
Bank's principal executive offices and that the Executive may be required to travel from time to time in the course of performing the
Executive's duties for the Bank.

1.5    No Breach of Contract.   The Executive hereby represents to the Bank that:  (i) the
execution and delivery of this Agreement by the Executive and the performance by the Executive of the Executive's duties hereunder
shall not constitute a breach of, or otherwise contravene, the terms of any other agreement or policy to which the Executive is a party or
by which he is otherwise bound; (ii) that the Executive has no information (including, without limitation, confidential information or
trade secrets) of any other person or entity which the Executive is not legally and contractually free to disclose the Bank; and
(iii) that the Executive is not bound by any confidentiality, trade secret or similar agreement (other than this Agreement) with any
other person or entity.

	Term.  The Bank hereby agrees to employ and continue in its
employ the Executive, and the Executive hereby accepts such employment and agrees to remain in the employ of the Bank, for the
period commencing on the date of this Agreement and extending until this Agreement is terminated in accordance with the provisions of
Section 6 below.

	Compensation.

3.1    Salary.  Subject to the further provisions of this Agreement, the Bank shall pay the Executive a
salary at an annual rate equal to $225,000 which will be paid in accordance with the Bank's normal payroll procedures.  Participation in
deferred compensation, discretionary or performance bonus, retirement, stock option and other employee benefit plans and in fringe
benefits shall not reduce the annual rate.

3.2    Bonus.  The Executive shall be eligible, for each calendar year ending during the Term of this
Agreement (prorated for partial years), an annual bonus (the "Annual Bonus") under the Heritage Commerce Corp
("HCC") Management Incentive Plan (the "Incentive Plan") subject to the terms, conditions and
limitations of the Incentive Plan.  For 2005, Executive shall be eligible to receive a target bonus under the Incentive Plan of up to 60% of
Base Salary, if the conditions and terms establish for 2005 for Executive Vice President level have been satisfied.  For 2006 and each
following year during the Term, Executive shall be entitled to participate in the Incentive Plan on the same basis and subject to the
same terms and conditions as all other Executive Vice President level officers.

3.3    Participation in Employee Benefit Plans.  During the Term of this
Agreement, the Executive and/or the Executive's family, as the case may be, shall be eligible to participate in and shall receive all
benefits (pension, thrift, profit sharing, life insurance, medical coverage, disability, medical, dental and vision, or other retirement or
employee benefits) under employee benefit plans, practices, policies and programs provided by the Bank to the extent applicable
generally to other executives in comparable positions with the Bank.

	401(k).  HCC maintains a 401(k) plan for its eligible employees.  Subject to the terms and
conditions set forth in the official plan documents, the Executive will be eligible to enroll in the 401(k) plan, and shall receive a matching
contribution in accordance with the terms of the 401(k) plan from HCC.

	Employee Stock Ownership Plan.  The Executive shall have the option to participate in the HCC's
Employee Stock Ownership Plan on the same basis as other executives in comparable positions with the Bank.

	Other.  The Executive's eligibility and all other terms and conditions of the Executive's
participation in the Bank's benefit, insurance and disability plans and programs will be governed by the official plan documents which
may change from year-to-year.  Notwithstanding the foregoing, at a minimum the Executive shall be entitled to the same benefits as all
other executives in comparable positions with the Bank. 

3.4    2004 Stock Option Plan.  The Executive will receive an nonqualified Stock Option grant of 25,000
shares of Common Stock pursuant to the terms of the HCC's 2004 Stock Option Plan (the "2004 Plan").  The exercise price
will be the Fair Market Value for the HCC's Common Stock on the date of grant as defined in the 2004 Plan.  The Executive's options
will vest in daily increments of 1/1460th from the date of grant until fully vested and shall expire ten years from the date of grant.  All
such options shall be subject to the terms and conditions of the 2004 Plan and shall be conditioned upon the Executive's execution of
an option agreement with HCC in a form specified by HCC.

3.5    Supplemental Executive Retirement Plan.  HCC maintains a Supplemental Executive Retirement
Plan ("SERP") for its executive officers.  Subject to the terms and conditions set forth in the official plan documents,
the Executive will be eligible to receive an annual benefit of up to $70,000 payable monthly commencing one month after the
Executive's sixty-second birthday.  All terms and conditions of the Executive's participation in the SERP will be governed by the official
plan documents.  

3.6    Business Expenses.  During the Term of this Agreement, the Executive shall be entitled to incur
and be reimbursed for all reasonable business expenses.  The Bank agrees that it will reimburse the Executive for all such expenses
upon the presentation by the Executive, from time to time, of an itemized account of such expenditures setting forth the date, the
purposes for which incurred, and the amounts thereof, together with such receipts showing payments in conformity with the Bank's
established policies.  Reimbursement shall be made within a reasonable period after the Executive's submission of an itemized account
in accordance with the Bank's policies.

3.7    Fringe Benefits.  During the Term of this Agreement, the Executive shall be entitled to receive the
following fringe benefits:

	a monthly auto allowance of $700 per month plus gasoline and maintenance; 

	payment of the monthly dues at one country club of the Executive's choice; and

	such other fringe benefits, commensurate with those available to other executives in comparable positions
with the Bank in accordance with the policies of Bank as in effect from time to time.

3.8    Vacations.  During the Term of this Agreement, the Executive shall be entitled to paid vacation in
accordance with the most favorable plans, policies, programs and practices of the Bank as in effect for the Executive or for other
executives in comparable positions with the Bank; provided, however, that the Executive shall be entitled to earn paid
vacation at the rate of not less than 25 days vacation days for each calendar year (reduced pro rata for any partial year), of which at
least 10 days (reduced pro rata for any partial year) must be taken consecutively.  Vacation may be accrued up to a maximum of 30
days of earned vacation.  Once this maximum is reached, the Executive shall cease to earn or accrue vacation unless and until the
Executive takes vacation and the Executive's accrued vacation has dropped below the maximum accrual level, at which time the
Executive shall recommence to earn and accrue paid vacation.  The date or dates of vacation shall be determined by the Executive and
the President, and will be subject to the Bank's business requirements.

	Indemnity.  The Bank shall indemnify and hold the Executive
harmless from any cost, expense or liability arising out of or relating to any acts or decisions made by the Executive on behalf of or in
the course of performing services for the Bank to the same extent the Bank indemnifies and holds harmless other executive officers and
directors of the Bank and in accordance with the Bank's articles of incorporation, bylaws and established policies.

	Certain Terms Defined.  For purposes of this Agreement:

5.1    "Accrued Obligations" means the sum of the Executive's Base Salary and accrued
vacation through the Date of Termination to the extent not theretofore paid, outstanding expense reimbursements and any
compensation previously deferred by the Executive to the extent not theretofore paid.

5.2    "Base Salary" means, as of any Date of Termination of employment, the highest
annual salary of the Executive in any of the last three years preceding such Date of Termination.

5.3    "Cause" shall mean (i) the Executive willfully breaches or
habitually neglects the duties which the Executive is required to perform under this Agreement; (ii) the Executive commits an intentional
act of moral turpitude that has a material detrimental effect on the reputation or business of the Bank; (iii) the Executive is convicted of a
felony or commits any material and actionable act of dishonesty, fraud, or intentional material misrepresentation in the performance of
the Executive's duties under this Agreement; (iv) the Executive engages in an unauthorized disclosure or use of inside
information, trade secrets or other confidential information; or (v) the Executive breaches a fiduciary duty, or willfully and
materially violates any other duty, law, rule, regulation or policy of the Bank or an affiliate.  If the Bank decides to terminate the
Executive's employment for Cause, the Bank will provide the Executive with notice specifying the grounds for termination, accompanied
by a brief written statement stating the relevant facts supporting such grounds.

5.4    "Change of Control" shall mean:

	the acquisition by any individual, entity, or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (a
"Person") of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 40%
or more of either (i) the then outstanding shares of common stock of HCC (the "Outstanding HCC Common Stock"
or (ii) the combined voting power of the then outstanding voting securities of the HCC entitled to vote generally in the election of
directors (the "Outstanding HCC Voting Securities"); provided, however, that for purposes of this
Subsection (a), the following acquisitions shall not constitute a Change of Control; (i) any acquisition directly from the HCC, (ii) any
acquisition by the HCC that reduces the number of shares issued and outstanding through a stock repurchase program or otherwise,
(iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the HCC or any corporation controlled by
the HCC or (iv) any acquisition by any corporation pursuant to a transaction which complies with clauses (i), (ii) and (iii) of Subsection
(c) of this Section 5.4; or 

	a majority of the individuals who, as of the Effective Date, constitute the Board (the "Incumbent
Board") cease for any reason other than resignation, death or disability to constitute at least a majority of the Board;
provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or
nomination for election by the HCC's shareholders, was approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board; or

	consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the HCC (a "Business Combination"), in each case, unless,
following such Business Combination, (i) all or substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding HCC Common Stock and Outstanding HCC Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and
the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case
may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of
such transaction owns the HCC or all or substantially all of the HCC's assets either directly or through one or more subsidiaries) in
substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding HCC
Common Stock and Outstanding HCC Voting Securities, as the case may be, (ii) no Person (excluding any corporation resulting from
such Business Combination or any employee benefit plan (or related trust) of the HCC or such corporation resulting from such Business
Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock of the
corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such
corporation except to the extent that such ownership existed prior to the Business Combination, and (iii) at least a majority of the
members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board
at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination;
or

	approval by the shareholders of the HCC of a complete liquidation or dissolution of the
HCC.

5.5    "Code" means the Internal Revenue Code of 1986, as amended and any successor
provisions to such sections.

5.6    "Common Stock" means shares of HCC's common stock, no par value.

5.7    "Date of Termination" means (i) if the Executive's employment is terminated due to the
Executive's death, the Date of Termination shall be the date of death; (ii) if the Executive's employment is terminated due to Disability,
the Date of Termination is the Disability Effective Date; (iii) if the Executive's employment is terminated by the Bank for Cause, the Date
of Termination is the date on which the Bank gives notice to the Executive of such termination; (iv) if the Executive's employment is
terminated by the Bank without Cause or by the Executive, the Date of Termination shall be the date specified in the notice of
termination (which date shall not be more than 30 days after the date on which such notice of termination is given); and (v) if the
Executive's employment terminates for any other reason, the Date of Termination shall be the Executive's final date of
employment.

5.8    "Disability" shall mean a physical or mental condition of the Executive which occurs
and persists and which, in the written opinion of a physician selected by the Bank or its insurers and acceptable to the Executive or the
Executive's legal representative, and, in the written opinion of such physician, the condition will render the Executive unable to return to
his duties for an indefinite period of not less than 90 days.

	Termination. 

6.1    This Agreement may be terminated for the following reasons:

	Death.  This Agreement shall terminate automatically upon the Executive's death.  

	Disability.  In the event of the Executive's Disability, the Bank may give the Executive a notice of
termination.  In such event, the Executive's employment  with the Bank shall terminate effective on the 30th day after receipt of such
notice by the Executive (the "Disability Effective Date") provided that within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive' duties.

	Cause.  The Bank may terminate the Executive for Cause.

	Without Cause.  The Bank may terminate the Executive without Cause.

	Voluntary Termination By Executive.  The Executive may terminate this Agreement and his employment with the Bank
with or without cause.

6.2    Certain Benefits upon Termination.

	Termination without Cause.  If, during the Term, the Bank shall
terminate the Executive's employment for any reason other than Cause, death or Disability, the Bank shall pay to the Executive in a
lump sum in cash within 30 days after the Date of Termination the aggregate of the following amounts: 

	the Accrued Obligations;

	the amount equal to the product of (A) one and (B) the sum of (x) the Executive's annual Base Salary and
(y) the highest Annual Bonus paid or payable, including any bonus or portion thereof which has been earned but deferred (and
annualized for any year during which the Executive was employed for less than twelve full months), for the most recently completed
three years during the Term, if any (such higher amount being referred to as the "Highest Annual Bonus");
and

	For one year after the Executive's Date of Termination, or such longer period as may be provided by the
terms of the appropriate plan, program, practice or policy, the Bank shall continue benefits to the Executive and/or the Executive's
family at least equal  to those which would have been provided to them in accordance with the plans, programs, practices and policies
described in Section 3.3 of this Agreement if the Executive's employment had not been terminated, but not less favorable than that
provided to other executives in comparable positions with the Bank; provided, however, the Bank's obligation
hereunder with respect to the foregoing benefits shall be limited to the extent that the Executive obtains any such benefits pursuant to a
subsequent employer's benefit plans, in which case the Bank may reduce the coverage of any benefits it is required to provide the
Executive hereunder so long as the aggregate coverages and benefits of the combined benefit plans is no less favorable to the
Executive than the coverages and benefits required to be provided hereunder.

	Termination and Change of Control.  If, during the
Term, the Bank shall terminate the Executive's employment without Cause in connection with a Change of Control and such termination
occurs within 120 days before or 12 months following a Change of Control, the Bank shall pay to the Executive in a lump sum in cash
within 30 days after the Date of Termination the aggregate of the following amounts: 

	the Accrued Obligations;

	the amount equal to the product of (A) two and (B) the sum of (x) the Executive's annual Base Salary and
(y) the Highest Annual Bonus; and,

	for two years after the Executive's Date of Termination, or such longer period as may be provided by the
terms of the appropriate plan, program, practice or policy, the Bank shall continue benefits to the Executive and/or the Executive's
family at least equal  to those which would have been provided to them in accordance with the plans, programs, practices and policies
described in Section 3.3 of this Agreement if the Executive's employment had not been terminated, but not less favorable than that
provided to other executives in comparable positions with the Bank; provided, however, the Bank's obligation
hereunder with respect to the foregoing benefits shall be limited to the extent that the Executive obtains any such benefits pursuant to a
subsequent employer's benefit plans, in which case the Bank may reduce the coverage of any benefits it is required to provide the
Executive hereunder so long as the aggregate coverages and benefits of the combined benefit plans is no less favorable to the
Executive than the coverages and benefits required to be provided hereunder.

	Death.  If the Executive's employment terminates during the
Term by reason of the Executive's death, this Agreement shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued Obligations and any Bonus Award for the year in which the
death occurred prorated through the Date of Termination.  Accrued Obligations shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days of the Date of Termination; provided, however, that payment may be
deferred until the Executive's executor or personal representative has been appointed and qualified pursuant to the laws in effect in the
Executive's jurisdiction of residence at the time of the Executive's death.  The Executive's estate and/or beneficiaries shall be entitled to
receive, benefits at least equal to the most favorable benefits provided by the Bank to the estate and beneficiaries of other executives in
comparable positions with the Bank under such plans, programs, practices and policies relating to death benefits, if any as in effect on
the date of the Executive's death.  

	Disability.  If the Executive's
employment terminates during the Term by reason of the Executive's Disability, this Agreement shall terminate without further
obligations to the Executive under this Agreement, other than for payment of Accrued Obligations and any Bonus Award for the year in
which the termination occurs prorated through the Date of Termination. 

	Cause/Voluntary Termination.  If the Executive's employment terminates for Cause during the
Term, this Agreement shall terminate without further obligations to the Executive other than the obligation to pay to the Executive the
Accrued Obligations.  If the Executive's employment terminates due to the Executive voluntarily termination during the Term, this
Agreement shall terminate without further obligations to the Executive other than the obligation to pay to the Executive  the Accrued
Obligations.

	Single Trigger Event.  The provisions for payments contained in this Section 6.2 may be triggered
only once during the term of this Agreement, so that, for example, should the Executive be terminated because of a Disability and
should there thereafter be a Change of Control, then the Executive would be entitled to be paid only under Section 6.2(d) and not under
Section 6.2(b) as well. In addition, the Executive shall not be entitled to receive severance benefits of any kind from any parent, wholly
owned subsidiary or other affiliated entity of the Bank if in connection with the same event of series of events the payments provided for
in this Section 6.2  have been triggered.

	Assignment.  This Agreement will inure to the benefit of and be binding upon the Bank and any of
its successors and assigns.  In view of the personal nature of the services to be performed under this Agreement by the Executive, the
Executive will not have the right to assign or transfer any of his rights, obligations or benefits under this Agreement.  The Bank will
require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Bank to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that the Bank would be required to perform it if no such succession had taken place.  As used in this Agreement,
"Bank" shall mean the Bank as hereinbefore defined and any successor to its business and/or assets as aforesaid which
assumes and agrees to perform this Agreement by operation of law, or otherwise.

	Confidential Information.  During the Term of this Agreement and thereafter, the Executive shall
not, except as may be required to perform his duties hereunder or as required by applicable law, disclose to others for use, whether
directly or indirectly, any Confidential Information regarding the Bank, HCC or any subsidiary or affiliate thereof ("Bank
Group").  "Confidential Information" shall mean information about the Bank Group, its respective clients
and customers that is not available to the general public and that was learned by the Executive in the course of his employment by the
Bank, including (without limitation) any data, formulae, information, proprietary knowledge, trade secrets and client and customer lists
and all papers, resumes, records and the documents containing such Confidential Information.  The Executive acknowledges that such
Confidential Information is specialized, unique in nature and of great value to the Bank Group, and that such information gives the Bank
Group a competitive advantage.  Upon the termination of his employment, the Executive will promptly deliver to the Bank all documents
(and all copies thereof) containing any Confidential Information.

8.1    Noncompetition.  The Executive agrees that during the Term of this Agreement, he will not,
directly or indirectly, without the prior written consent of the Bank, provide consultative service with or without pay, own, manage,
operate, join, control, participate in, or be connected as a stockholder, partner, or otherwise with any business, individual, partner, firm,
corporation, or other entity which is then in competition with the Bank or any present affiliate of the Bank; provided,
however, that the "beneficial ownership" by the Executive, either individually or as a member of a
"group," as such terms are used in Regulation 13D of the Exchange Act, of not more than 1% of the voting stock of any
publicly held corporation shall not be a violation of this Agreement.  It is further expressly agreed that the Bank will or would suffer
irreparable injury if the Executive were to compete with the Bank or any subsidiary or affiliate of the Bank in violation of this Agreement
and that the Bank would by reason of such competition be entitled to injunctive relief in a court of appropriate jurisdiction, and the
Executive further consents and stipulates to the entry of such injunctive relief in such a court prohibiting the Executive from competing
with the Bank or any subsidiary or affiliate of the Bank in violation of this Agreement.

8.2    Right to Bank Materials.  The Executive agrees that all lists, materials, books, files, reports,
correspondence, records, and other documents ("Bank Materials") used, prepared, or made available to the
Executive, shall be and shall remain the property of the Bank.  Upon the termination of his employment, all Bank Materials shall be
returned immediately to the Bank, and the Executive shall not make or retain any copies thereof.

8.3    Anti-solicitation.  The Executive promises and agrees that during the Term of this Agreement, and,
for a period of two (2) years thereafter, he will not influence or attempt to influence customers, franchisees, landlords, or suppliers of the
Bank or any of its present or future subsidiaries or affiliates, either directly or indirectly, to divert their business to any individual,
partnership, firm, corporation or other entity then in competition with the business of the Bank, or any subsidiary or affiliate of the
Bank.

	Soliciting Employees.  The Executive promises and agrees that during the Term of this Agreement
and for a period of two (2) years thereafter, the Executive will not, directly or indirectly, individually or as a consultant to, or as an
employee, officer, stockholder, director or other owner of or participant in any business, solicit (or assist in soliciting) any person who is
then, or at any time within six (6) months prior thereto was, an employee of the Bank who earned annually $25,000 or more as an
employee of the Bank during the last six (6) months of his or her own employment to work for (as an employee, consultant or otherwise)
any business, individual, partnership, firm, corporation, or other entity whether or not engaged in competitive business with any entity in
the Bank Group.

	American Jobs Creation Act of 2004.  In the event that either party
after consultation with its or his tax adviser reasonably determines that any item payable by the Bank to the Executive would be, or is
reasonably likely to be,  pursuant to Section 409A of the Code, as amended by the American Jobs Creation Act of 2004, P.L. 108-357
or any regulations promulgated thereunder includible in the Executive's gross income in a taxable year before the year(s) in which the
Executive actually receives the item, such party shall notify the other party in writing.  Any such notice shall specify: (a) in reasonable
detail the basis and reasons for such party's determination; (b) any Internal Revenue Service notices, regulations, revenue rulings or
procedures, or other authority for the party's determination; and (c) any proposed amendment(s) to this Agreement that the notifying
party believes would prevent the inclusion of such item in a tax year before the Executive's actual year of receipt of such item of
income.  If such notification specifies proposed amendment(s) to this Agreement, the parties agree to negotiate in good faith the terms
and conditions of an amendment to this Agreement.  Provided, however, nothing in this Section 10 shall be construed or
interpreted to require the Bank to increase any amounts payable to the Executive pursuant to this Agreement or to consent to any
amendment that would materially and adversely change the Bank's financial accounting or tax treatment of the payments to the
Executive under this Agreement.

	Miscellaneous.

11.1    Notice.  For the purpose of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or
mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed to the respective addresses
set forth below, or to such other addresses as either party may have furnished to the other in writing in accordance herewith, except
that notice of a change of address shall be effective only upon actual receipt:

Company:  HERITAGE COMMERCE BANK

                 150 Almaden Blvd

                 San Jose, Ca 95113 

                  Attn:  President

with a copy to:  Buchalter, Nemer, Fields & Younger

                       601 South Figueroa Street, Suite 2400

                       Los Angeles, CA 90017

                       Attn:  Mark A. Bonenfant, Esq.

Executive:  Raymond Parker

                  150 Almaden Boulevard

                  San Jose, CA 95113

11.2    Amendments or Additions.  No amendment, modification or additions to this Agreement shall be
binding unless in writing and signed by both parties hereto.

11.3    Section Headings.  The section headings used in this Agreement are included solely for
convenience and shall not affect, or be used in connection with, the interpretation of this Agreement.

11.4    Severability.  The provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.

11.5    Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed
to be an original, but both of which together will constitute one and the same instrument.

11.6    Mediation.  Prior to engaging in any legal or equitable litigation or
other dispute resolution process, regarding any of the terms and conditions of this Agreement between the parties, or concerning the
subject matter of the Agreement between the parties, each party specifically agrees to engage in good faith, in a mediation process at
the expense of the Bank, complying with the procedures provided for under California Evidence Code Sections 1115 through and
including 1125, as then currently in effect.  The parties further and specifically agree to use their best efforts to reach a mutually
agreeable resolution of the matter.  The parties understand and specifically agree that should any party to this Agreement refuse to
participate in mediation for any reason, the other party will be entitled to seek a court order to enforce this provision in any court of
appropriate jurisdiction requiring the dissenting party to attend, participate, and to make a good faith effort in the mediation process to
reach a mutually agreeable resolution of the matter.

11.7    Arbitration.  To the extent not resolved through mediation as provided in Section 11.6, any
controversy arising out of or relating to the Executive's employment (whether or not before or after the expiration of the Term of
employment), any termination of the Executive's employment, this Agreement, the enforcement or interpretation of any such an
agreement, or because of an alleged breach, default, or misrepresentation in connection with any of the provisions of such an
agreement, including (without limitation) any state or federal statutory claims, shall be submitted to arbitration in San Jose
County, California, before a sole arbitrator (the "Arbitrator") selected from judicial arbitration mediation services
("JAMS"), or if JAMS is no longer able to supply the arbitrator, such arbitrator shall be selected from the American
Arbitration Association ("AAA"), and shall be conducted in accordance with the provisions of California Code of Civil
Procedure    1280 et seq. as the exclusive remedy of such dispute; provided, however, that provisional injunctive relief may, but need
not, be sought in a court of law while arbitration proceedings are pending, and any provisional injunctive relief granted by such court
shall remain effective until the matter is finally determined by the Arbitrator.  Final resolution of any dispute through arbitration may
include any remedy or relief that the Arbitrator deems just and equitable, including any and all remedies provided by applicable state or
federal statutes.  At the conclusion of the arbitration, the Arbitrator shall issue a written decision that sets forth the essential findings and
conclusions upon which the Arbitrator's award or decision is based.  Any award or relief granted by the Arbitrator hereunder shall be
final and binding on the parties hereto and may be enforced by any court of competent jurisdiction.

11.8    THE BANK AND THE EXECUTIVE HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL
OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE
TRANSACTIONS CONTEMPLATED HEREIN.  THE BANK AND THE EXECUTIVE REPRESENT THAT EACH HAS REVIEWED THIS
WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH
LEGAL COUNSEL.  IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT
TO A TRIAL BY THE COURT.

11.9    Miscellaneous.  No provision of this Agreement may be modified, waived or discharged unless
such waiver, modification or discharge is agreed to in writing and signed by the Executive and such officer as may be specifically
designated by the Board.  No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with,
any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time.  

11.10    Entire Agreement.  This Agreement embodies the entire agreement of the parties hereto
respecting the matters within its scope.  This Agreement supersedes all prior and contemporaneous agreements of the parties hereto
that directly or indirectly bears upon the subject matter hereof.  Any prior negotiations, correspondence, agreements, proposals or
understandings relating to the subject matter hereof shall be deemed to have been merged into this Agreement, and to the extent
inconsistent herewith, such negotiations, correspondence, agreements, proposals, or understandings shall be deemed to be of no force
or effect.  There are no representations, warranties, or agreements, whether express or implied, or oral or written, with respect to the
subject matter hereof, except as expressly set forth herein.

11.11    Governing Law.  The validity, interpretation, construction and performance of this Agreement shall
be governed by the laws of the State of California without regard to its conflicts of law principles.  

11.12    Withholding.  Any payments provided for hereunder shall be paid net of any applicable withholding
required under federal, state or local law.  

11.13    Attorney Fees.  In the event of any action, suit or proceeding brought under or in connection with
this Agreement, the prevailing party therein shall be entitled to recover, and the other party hereto agrees to pay, the prevailing party's
costs and expenses in connection therewith, including reasonable attorneys' fees.

11.14    Survival.  The provisions of this Agreement that may be reasonably interpreted as surviving
termination of this Agreement, including Sections 8.1, 8.2, 8.3, 10.6, 10.7, 10.8, 10.10, 10.11, 10.12, 11.6, 11.7 and 11.8 shall continue
in effect after termination of this Agreement.

IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement on the date first indicated
above.
COMPANY:

HERITAGE COMMERCE BANK,

a California banking corporation

By: ____________________________________

Walt Kaczmarek,

President

EXECUTIVE:

By: ____________________________________

Raymond Parker

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]