Document:

Exhibit 10.1

		

			Exhibit 10.1 Form of Restricted Stock Unit Award Notice under the Jones Soda Co. 2011 Incentive Plan

		

		

			 

		

		
			JONES SODA CO.
2011 INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD NOTICE
		

		
			Jones Soda Co. (the “Company”) hereby grants to you a Restricted Stock Unit Award (the “Award”).  The Award is subject to all the terms and conditions set forth in this Restricted Stock Unit Award Notice (the “Award Notice”) and in the Restricted Stock Unit Award Agreement and the Jones Soda Co. 2011 Incentive Plan (the “Plan”), which are incorporated into this Award Notice in their entirety.    

		

			
					
						Participant:

					
					
						 

				
	
					
						Grant Date:

					
					
						 

				
	
					
						Number of Restricted Stock Units:

					
					
						 

				
	
					
						Vesting Schedule:

					
					
						 

				

		
			Additional Terms/Acknowledgement:  You acknowledge receipt of, and understand and agree to, the Award Notice, the Restricted Stock Unit Award Agreement and the Plan.  You further acknowledge that as of the Grant Date, the Award Notice, the Restricted Stock Unit Award Agreement and the Plan set forth the entire understanding between you and the Company regarding the Award and supersede all prior oral and written agreements on the subject.
		

			
					
						JONES SODA CO.

					
						__________________________________
By:____________________________
Title:____________________________

					
					
						PARTICIPANT

_________________________________

					
						[Name]

					
						 

				
	
					
						﻿

					
					
						 

				
	
					
						Attachments:
1.  Restricted Stock Unit Award Agreement

					
					
						 

				

		
			 
		

		

		

		 

		

			 

		

 

		

			Exhibit 10.1 Form of Restricted Stock Unit Award Notice under the Jones Soda Co. 2011 Incentive Plan

		

		

			 

		

		JONES SODA CO.
		

		
			2011 INCENTIVE PLAN
		

		
			RESTRICTED STOCK UNIT AWARD AGREEMENT
		

		
			Pursuant to your Restricted Stock Unit Award Notice (the “Award Notice”) and this Restricted Stock Unit Award Agreement (this “Agreement”), Jones Soda Co. (the ”Company”) has granted you a Restricted Stock Unit Award (the “Award”) under its 2011 Incentive Plan (the “Plan”) for the number of Restricted Stock Units indicated in your Award Notice.  Capitalized terms not explicitly defined in this Agreement but defined in the Plan have the same definitions as in the Plan.
		

		
			The details of the Award are as follows:
		

		
			1.Vesting
		

		
			The Award will vest and become payable according to the vesting schedule set forth in the Award Notice (the “Vesting Schedule”).    One share of the Company’s Common Stock will be issuable for each Restricted Stock Unit that vests.  Restricted Stock Units that have vested and are no longer subject to forfeiture according to the Vesting Schedule are referred to herein as “Vested Units.”  Restricted Stock Units that have not vested and remain subject to forfeiture under the Vesting Schedule are referred to herein as “Unvested Units.”  The Unvested Units will vest (and to the extent so vested cease to be Unvested Units remaining subject to forfeiture) in accordance with the Vesting Schedule (the Unvested and Vested Units are collectively referred to herein as the “Units”).  As soon as practicable after Unvested Units become Vested Units, but in no event later than forty-five days after vesting, the Company will settle the Vested Units by issuing to you one share of the Company’s Common Stock for each Vested Unit.
		

		
			2.Termination of Service
		

		
			Unless the Committee determines otherwise prior to your Termination of Service, all Unvested Units will immediately be forfeited to the Company upon your Termination of Service without payment of any consideration to you.
		

		
			3.Consideration for Award
		

		
			The Company acknowledges your payment of full consideration for the Award in the form of services previously rendered and/or services to be rendered hereafter to the Company (in either case, in an amount equal to no less than the aggregate par value of the shares of the subject to the Award).
		

		
			4.Securities Law Compliance
		

		
			4.1You represent and warrant that you (a) have been furnished with a copy of the Plan and all information which you deem necessary to evaluate the merits and risks of receipt of the Award, (b) have had the opportunity to ask questions and receive answers concerning the information received about the Award and the Company, and (c) have been given the 
		

		 

		

			 

		

 

		opportunity to obtain any additional information you deem necessary to verify the accuracy of any information obtained concerning the Award and the Company.
		

		
			4.2You hereby agree that you will in no event sell or distribute all or any part of the shares of the Company’s Common Stock that you receive pursuant to settlement of this Award (the “Shares”) unless (a) there is an effective registration statement under the Securities Act and applicable state securities laws covering any such transaction involving the Shares or (b) the Company receives an opinion of your legal counsel (concurred in by legal counsel for the Company) stating that such transaction is exempt from registration or the Company otherwise satisfies itself that such transaction is exempt from registration.  
		

		
			4.3You confirm that you have been advised, prior to your receipt of the Award, that neither the offering of the Shares nor any offering materials have been reviewed by any administrator under the Securities Act or any other applicable securities act.
		

		
			4.4You hereby agree to indemnify the Company and hold it harmless from and against any loss, claim or liability, including attorneys’ fees or legal expenses, incurred by the Company as a result of any breach by you of, or any inaccuracy in, any representation, warranty or statement made by you in this Agreement or the breach by you of any terms or conditions of this Agreement.
		

		
			5.Transfer Restrictions
		

		
			Any sale, transfer, assignment, pledge, encumbrance, hypothecation, conveyance in trust, gift, transfer by bequest, devise or descent, or other transfer or disposition of any kind, whether voluntary or by operation of law, directly or indirectly, of Units will be strictly prohibited and void.
		

		
			6.No Rights as Shareholder
		

		
			You will have no voting rights or rights to any cash dividend, or other rights as a shareholder of the Company with respect to the Units, unless and until any Shares have been issued to you upon settlement of any Vested Units pursuant to Section 1 hereof.
		

		
			7.Independent Tax Advice
		

		
			You acknowledge that determining the actual tax consequences to you of receiving or disposing of the Units and Shares issued thereunder may be complicated.  These tax consequences will depend, in part, on your specific situation and may also depend on the resolution of currently uncertain tax law and other variables not within the control of the Company.  You are aware that you should consult a competent and independent tax advisor for a full understanding of the specific tax consequences to you of receiving the Units and receiving or disposing of the Shares.  Prior to executing this Agreement, you either have consulted with a competent tax advisor independent of the Company to obtain tax advice concerning the receipt of the Units and the receipt or disposition of the Shares in light of your specific situation or you have had the opportunity to consult with such a tax advisor but chose not to do so.
		

		

		

		 

		

			

		

 

		8.Book Entry Registration of Shares
		

		
			The Company may issue the Shares by registering the Shares in book entry form with the Company’s transfer agent in your name in which case the applicable restrictions will be noted in the records of the Company’s transfer agent and in the book entry system.
		

		
			9.Tax Withholding
		

		
			You agree to make arrangements satisfactory to the Company for the payment of any federal, state, local or foreign withholding tax obligations in connection with this Award (e.g., at vesting and/or upon receipt of the Shares) and you acknowledge that the Company may refuse to issue any Shares to you until you satisfy such withholding tax obligations.    You may satisfy such withholding obligation by any of the following means or a combination thereof:  (a) tendering a cash payment to the Company, (b) having the Company withhold an amount from any cash amount otherwise due or become due from the Company to you, (c) having the Company withhold a number of shares of the Company’s Common Stock that would otherwise become issuable under the Award (up to the employer’s minimum tax withholding rate) or (d) surrendering to the Company already owned shares of the Company’s Common Stock (up to the employer’s minimum required tax withholding rate).  Notwithstanding the previous sentence, you acknowledge and agree that the Company and any Related Company have the right to deduct from payments of any kind otherwise due to you any federal, state or local taxes of any kind required by law to be withheld with respect the Award.
		

		
			10.General Provisions
		

		
			10.1Assignment.  The Company may assign its rights under this Agreement at any time, whether or not such rights are then exercisable, to any person or entity selected by the Company’s Board of Directors, including, but not limited to, one or more of the Company’s shareholders.
		

		
			10.2No Waiver.  No waiver of any provision of this Agreement will be valid unless in writing and signed by the person against whom such waiver is sought to be enforced, nor will failure to enforce any right hereunder constitute a continuing waiver of the same or a waiver of any other right hereunder.
		

		
			10.3Undertaking.  You hereby agree to take whatever additional action and execute whatever additional documents the Company may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either you or the Units pursuant to the express provisions of this Agreement.
		

		
			10.4Agreement Is Entire Contract.  This Agreement and the Award Notice constitute the entire contract between the parties hereto with regard to the subject matter hereof and supersede all prior oral or written agreements on the subject.  This Agreement is made pursuant to the provisions of the Plan and will in all respects be construed in conformity with the express terms and provisions of the Plan.
		

			
	
			
				 10.5
			Successors and Assigns.  The provisions of this Agreement will inure to the benefit of, and be binding on, the Company and its successors and assigns and you and your 
		

		 

		

			

		

 

			legal representatives, heirs, legatees, distributees, assigns and transferees by operation of law, whether or not any such person will have become a party to this Agreement and agreed in writing to join herein and be bound by the terms and conditions hereof.

			
	
			
				 10.6
			Compliance with Law. The issuance and transfer of shares of Common Stock shall be subject to compliance by you and the Company with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange or quotation system on which the Company’s shares of Common Stock may be listed. No shares of Common Stock shall be issued or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel.

			
	
			
				 10.7
			Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by you or the Company to the Committee for review. The resolution of such dispute by the Committee shall be final and binding on you and the Company.

			
	
			
				 10.8
			Restricted Stock Units Subject to Plan. This Agreement is subject to the Plan as approved by the Company’s shareholders. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

			
	
			
				 10.9
			Severability. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

			
	
			
				 10.10
			Discretionary Nature of Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in its discretion. The grant of the Restricted Stock Units in this Agreement does not create any contractual right or other right to receive any Restricted Stock Units or other Awards in the future. Future Awards, if any, will be at the sole discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of your employment with the Company.

			
	
			
				 10.11
			Amendment. The Committee has the right to amend, alter, suspend, discontinue or cancel the Restricted Stock Units, prospectively or retroactively; provided, that, no such amendment shall adversely affect your material rights under this Agreement without your consent. 

			
	
			
				 10.12
			Adjustments. If any change is made to the outstanding Common Stock or the capital structure of the Company, if required, the Restricted Stock Units shall be adjusted or terminated in any manner as contemplated by Section 15 of the Plan.

			
	
			
				 10.13
			No Employment or Service Contract.  Nothing in this Agreement will affect in any manner whatsoever the right or power of the Company, or a Related Company, to terminate your employment or services on behalf of the Company, for any reason, with or without Cause.

		 

		

			

		

 

			
	
			
				 10.14
			Section 409A Compliance.  Payments made pursuant to this Agreement and the Plan are intended to qualify for an exception from or comply with Section 409A of the Code.  Notwithstanding any other provision in this Agreement and the Plan to the contrary, the Company, to the extent it deems necessary or advisable in its sole discretion, reserves the right, but shall not be required, to unilaterally amend or modify this Agreement and/or the Plan so that the Award qualifies for exemption from or complies with Section 409A of the Code; provided, however, that the Company makes no representations that the Award shall be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to the Award.

			
	
			
				 10.15
			Counterparts.  This Award Notice may be executed in two or more counterparts, each of which will be deemed an original, but which, upon execution, will constitute one and the same instrument.

			
	
			
				 10.16
			Governing Law.  To the extent not otherwise governed by the last of the United States, this Agreement will be construed and administered in accordance with and governed by the laws of the State of Washington without giving effect to principles of conflicts of law.

		
			 [Sections 11 and 12 are for non-U.S. employees:]
		

		
			﻿
		

		
			11.Limitation on Rights; No Right to Future Grants; Extraordinary Item of Compensation.  
		

		
			In accepting the Award, you acknowledge, understand and agree that (a) the Plan is established voluntarily by the Company, it is discretionary in nature, and may be amended, suspended or terminated by the Company at any time; (b) the grant of the Award is voluntary and occasional and does not create any contractual or other right to receive future grants of Awards, or benefits in lieu of Awards, even if  have been granted repeatedly in the past; (c) all decisions with respect to future Award grants, if any, will be at the sole discretion of the Company; (d) you are voluntarily participating in the Plan; (e) the Award and any Shares acquired under the Plan are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Company, and which is outside the scope of your service contract, if any; (f) the Award and any Shares acquired under the Plan are not intended to replace any compensation; (g) the Award and any Shares acquired under the Plan are not part of normal or expected compensation for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or any Related Company; (h) the future value of the Award is unknown and cannot be predicted with certainty; (i) no claim or entitlement to compensation or damages shall arise from forfeiture of the Award resulting from your Termination of Service by the Company or a Related Company (for any reason whatsoever and whether or not in breach of local laws) and in consideration of the grant of the Award to which you are otherwise not entitled, you irrevocably agree never to institute any claim against the Company or any Related Company, waive your ability, if any, to bring any such claim, and release the Company or any Related Company from any such claim; if, notwithstanding the foregoing, any such claim is allowed 
		

		 

		

			

		

 

		by a court of competent jurisdiction, then, by participating in the Plan, you shall be deemed irrevocably to have agreed not to pursue such claim and agree to execute any and all documents necessary to request dismissal or withdrawal of such claims; (j) in the event of your Termination of Service (whether or not in breach of local laws), your right to vest in the Award under the Plan, if any, will terminate effective as of the date that you are no longer actively retained and will not be extended by any notice period mandated under local law; and (k) the Award and the benefits under the Plan, if any, will not automatically transfer to another company in the case of a merger, take-over or transfer of liability. 
		

		
			12.Data Privacy.  
		

		
			By entering into this Agreement and accepting the Award, you explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of any of your personal data that is necessary to facilitate the implementation, administration and management of the Award and the Plan.    You understand that the Company and any Related Company may, for the purpose of implementing, administering and managing the Plan, hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title any shares of stock or directorships held in the Company, details of all Awards or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).
		

		
			You understand that Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, including any broker with whom the Shares issued upon vesting of the Award may be deposited, and that these recipients may be located in your country or elsewhere, and that the recipient’s country (e.g., the United States) may have different data privacy laws and protections than your country  You understand that you may request a list with the names and addresses of any potential recipients of the Data by contacting the Company.  You authorize the Company, and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purposes of implementing, administering and managing your participation in the Plan.  You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan.  You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Company.  You understand, however, that refusing or withdrawing your consent may affect your ability to participate in the Plan.  For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact the Company.
		

		
			﻿
		

		
			﻿Exhibit 10.18

 

CREDIT UNION OF THE PACIFIC

INCENTIVE COMPENSATION ACHIEVEMENT PLAN

Whereas the Board of Directors of Credit Union of the Pacific, a federal credit union (the "Credit Union") has adopted an incentive compensation plan for certain designated senior managers (the "Managers") of the Credit Union and its subsidiaries and affiliates, now therefore, Credit Union and those Managers entering into this Agreement, covenant and agree as follows:

1. Name. There is hereby established a plan to be known as the "Credit Union of the Pacific Incentive compensation Achievement Plan" (hereinafter the "Plan").

2. Administrative Committee. The Plan shall be administered by an Administrative Committee composed of three members of the Board of Directors of the Credit Union. The Plan Administrative Committee is hereby vested with full powers of administration of the Plan within the performance goals established from time to time by the Board of Directors, subject only to the provisions herein set forth. The Administrative Committee shall be composed of the President/CEO of the Credit Union and two other members of the Board of Directors selected by the directors from those members of the Board who are not employees of the Credit Union. Members of the Administrative Committee other than the President/CEO shall not be eligible to share in the benefits of the Plan. All decisions regarding any

 

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benefits to be shared with the President/CEO under the Plan shall be made exclusively by the other members of the Administrative Committee and the President/CEO shall not participate in such decisions. The Administrative Committee shall have full power and authority to interpret, construe, and administer the Plan, and, pursuant to such interpretations and constructions thereof, and actions hereunder, determine the final amount and recipient of any payment to be made under the Plan. Any Manager or other person who shall disagree with any decision of the Administrative Committee may promptly appeal such decision to the Board of Directors of the credit Union for final determination. The final determination of the Board of Directors shall be binding and conclusive on such persons for all purposes. No member of the Administrative committee, or of the Board of Directors , shall be liable to any person for any action taken or omitted in connection with the interpretation and administration of the Plan unless such action is due to such person's willful misconduct or lack of goqd faith.

3. Membership. The Managers entitled to share in the benefits of the Plan shall be divided into two groups. one group shall consist of the President/CEO. The other group shall be those managers designated by the Board of Directors as Members who report directly to the President/CEO.

4. Deferred Incentive Compensation. In accordance with the achievement targets established by the Board of Directors, the Administrative Committee shall determine the amount of

 

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deferred incentive compensation to be shared by each Manager who is a participant in the Plan. The amount of deferred incentive compensation allocated by the Administrative Committee to Managers reporting directly to the President/CEO shall range from zero to six percent of the particular Manager's annual salary. The amount of deferred incentive compensation allocated by the Administrative Committee to the President/CEO shall range from zero percent to twelve percent of the President/CEO's annual salary. For the purposes of the Plan, "annual salary" shall be the amount of annual base salary, exclusive of incentive compen$ation or bon ses, paid to the M nager for t e calendar year preceding the year of allocation by the Administrative Comm;i.ttee.

S. Deferred Compensation Account. Following the determination by the Administrative committee of the amount of deferred incentive compensation to be allocated to a Manager, the credit Union shall deposit to a book reserve (the "Deferred compensation Account") an amount of money equal to the amount of deferred incentive compensation allocated to each Manager. Funds credited to the Deferred Compensation Account 111qy be kept in cash or invested and reinvested in mutual funds, stocks, bonds, securities or other assets as may be approved by the Administrative Committee within guidelines established by the Board of Directors from time to time.

a. In exercising the foregoing discretionary investment powers, the Board of Directors may authorize the

 

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Administrative Committee to engage the services of independent investment counsel and may delegate to such investment counsel full or limited authority to select the assets in which the funds are to be invested.

b. To the extent deemed appropriate by the Board of Directors or the Administrative Committee, the wishes of the Managers for whom deferred incentive compensation has been allocated shall be taken into account in making investments decisions.

c. The Managers acknowledge and agree, on behalf of each Manager and the Manager's beneficiaries, heirs, and personal representatives, that they assume all risks in connection with the decrease in the value of the funds which are invested or which continue to be invested in the Deferred Compensation Account. Each Manager also hereby acknowledges and agrees that while the assets in the Deferred Compensation Account have been earmarked for payment of deferred compensation as provided for in the Plan, the funds in the Deferred Compensation Account shall at all times remain the assets of the credit Union and shall be subject to the liabilities and cla.ims of creditors of the Credit Union.

6. Payment of Deferred Compensation. The benefit to be paid to a Manager as deferred incentive compensation (unless the benefits are forfeited by any of the events of forfeiture specified in paragraph 7 below) shall be as follows:

 

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a. If the Manager's employment with Credit Union is terminated on or after the Manager shall have reached the age of 65, the Credit Union shall pay the Manager an amount equal to the fair market value of assets in the Deferred Compensation Account allocated to the Manager in 120 equal monthly payments commencing on the last day of the month following the month in which the Manager's employment is terminated. Notwithstanding the foregoing, the total amount payable to the Manager shall be appropriately increased or decreased from time to time as the case ay be, to reflect the appreciation or depreciation in value and the net income or loss of the funds allocated to the Manager which remain invested in the Deferred Compensation Account. If a Manager should die on or after the Manager's 60th birthday and before the 120 monthly payments are made, the unpaid balance will continue to be paid to the Manager's designated beneficiary in instal:lments for the unexpired period of the 120 monthly payments.

b. If a Manager's employment with the Credit Union is terminated for any reason other than the Manager's death or total disability before the Manager sha l have reached the age of 60, then the amount of the Deferred Compensation Account allocated to such Manager shall continue to be invested or held in cash as the Administrative Committee in its discretion may determine and no payments shall be made until the Manager shall have reached the age of 60 at which time payments shall be made in the same manner

 

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and to the same extent as set forth in the preceding subparagraph.

c. If the Manager's employment with the Credit Union is terminated because of the death or total disability of the Manager before the Manager has reached the age of 60, the Credit Union shall commence paying benefits payable Wider the Plan to the Manager (in the case of the Manager's disability) or to the Manager's designated beneficiary (in the event of the death of the Manager) in the same manner as specified in Section 6(a) above, except that the payments shall commence on or before the last day of the second month following the month in which the Manager's employment with the Credit Union has been terminated due to the Manager's death or total disability.

d. In the event of the death of both the Manager and the beneficiary of a deceased Manager before payment the Manager's entire interest in the Deferred Allocation Account, the remaining value of the Deferred Compensation Account allocated to such Manager shall be paid in a lump sum as soon as practicable to the estate of such designated beneficiary.

e. The Manager's beneficiary shall be the person designated by the Manager on a form provided by the Administrative Committee and delivered to the Administrative committee prior to the death of the Manager. A Manager shall be entitled to change the designation of a beneficiary, without the consent of such prior beneficiary, by executing a new beneficiary designation form and delivering it to the Administrative

 

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Committee. If a Manager has not designated a beneficiary, or if a designated beneficiary fails to survive the Manager, payment of a deceased Manager's allocated interest in the Deferred Compensation Account shall be paid to the Manager's estate.

f. A Manager shall be deemed to have become totally disabled for the purposes of payments under the Plan if the Administrative Committee shall find on the basis of medical evidence satisfactory to the committee that the Manager is totally disabled, mentally or physically, so as to be unable to engage in further employment by the Credit Union and that such disability will'be permanent and continuous during the Manager's lifetime.

g. Notwithstanding anything herein contained to the contra::ry, the Administrative Committee shall have the right in its discretion to vary the manner and time of making the inst llment distributions provided for in the Plan, and may make a distribution in a single lump sum or in periodic installments over a shorter or longer riod of time than the time provided for in the Plan as the Administrative committee may, in its discretion, find appropriate.

7. Forfeiture of Benefits.The benefits to be paid to a Manager shall be subject to forfeiture _upon the occurrence of any of the following:

a. Notwithstanding anything otherwise provided in the Plan, except in the case of the death or total disability of a Manager while still an employee of the Credit Union, if any

 

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Manager shall terminate employment prior to January 1, 1999, all benefits which may have accrued under the Plan shall be forfeited and the Manager shall be entitled to receive no payments of deferred compensation under the Plan.

b. After the Manager ceases to be employed by the Credit Union, the Manager fails or refuses to provide advice and counsel to the Credit Union when reasonably requested to do so.

8. Rights of Managers to Payments Are Those of Unsecured Creditor. Nothing contained in the Plan and no action taken pursuant to the provisions of the Plan shall create or be construed to create a trust of any kind, or any fiduciary relationship between the Credit Union, Board of Directors, or Administrative committee and the Manager, the beneficiary of a Manager, or any other person. Any funds which may be invested under the provisions of the Plan in the Deferred Compensation Account or elsewhere, shall continue for all purposes to be a part of the general funds of the Credit Union, and no person other than the credit Union shall by virtue of the provisions of the Plan have any interest in such funds. To the extent that any person acquires a right to receive any payments from the Credit Union under the provisions of the Plan, such right shall be no greater than the right of any unsecured general creditor of the Credit Union.

9. Non-Assignment of Rights. The right of a Manager or any other person receive any payment or benefit under the Plan may

 

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not be assigned, transferred, pledged, or encumbered except by will or by the laws of descent and distribution.

10. Payment to Minor. Incompetent. or Disabled Person.If the person to whom any payment is to be made under the Plan is determined by the Administrative Committee to be incompetent or a minor, any payment due {unless a prior claim therefor shall have been made by a duly appointed guardian or other legal representative) may be paid to the spouse or to a child, parent, brother or sister of the Manager, or to such other person deemed by the Administrative Committee to incurred expense for such person otherwise entitled to payment, in such manner and proportions as the Administrative Committee may determine.Any such payment shall be a complete discharge of the liability of the Credit Union under the Plan.

11. No Right to Continued Employment. Nothing contained in the Plan shall be construed as conferring upon any Manager any right to continue in the employ of the Credit Union as an executive or in any other capacity.

12. Rights Under the Plan are not Salary or Compensation for Other B.enefits. No right to any benefit under the Plan, or the payment of any such benefit, shall be deemed salary or other compensation for the purposes of determining benefits to which the Manager may be entitled under any retirement or employee benefit plan or other plan or arrangement of the Credit Union for any of its employees.

 

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13. Binding Effect. This Plan shall be binding upon and inure to the benefit of the Credit Union, its successors and assigns, and the Managers and their heirs, executors, administrators, and legal representatives.

14. Arbitration. Any dispute or controversy arising under the Plan will be resolved by arbitration pursuant to the provisions of R.C.W. 7.04 and subject to the rules (but not the jurisdiction) of the American Arbitration Association (where provision is not made within R.C.W. 7.04). The arbitration will be conducted in conformity with Washington Mandatory Arbitration Rule 5.2 and the Washington Rules of Evidence. The arbitrator's award shall set forth findings of fact and conclusions of law upon which the award is based in the same manner as is required in a trial before a judge in the superior Court of the State of Washington.

The parties shall select a single arbitrator within ten (10) days of the receipt of demand for arbitration. If the parties fail to appoint an arbitrator within the ten (10) day period, any party may make immediate application to the King County Superior Court for the appointment of an a bitrator. The arbitration hearing shall take place in Seattle, Washington, and shall commence within thirty (30) days of the appointment of an arbitrator.

The arbitrator may, in the arbitrator's discretion, award costs of arbitration (including the arbitrator's fee, if any) and attorneys' fees to the prevailing party. Judgment upon the award

 

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may be entered in the Superior Court of the State of Washington for the County of King and thereafter transmitted to any court of appropriate jurisdiction.

15. Amendment. The credit Union reserves to itself the right to amend, terminate, or revoke the Plan in whole or in its entirety at any time.

 

IN WITNESS WHEREOF, the parties have set their hands below, effective the 1st day of January 1994.

CREDIT UNION OF THE PACIFIC

By-----------------

 

Manager

  

Manager

 

 

Manager

BOP\CUPDEP.CO.M

 

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Addendum to the Incentive Compensation Achievement Plan dated January 31, 1994 between Laura Lee Stewart and Credit Union of the Pacific now known as Sound Community Bank

Whereas paragraph Six A of the agreement calls for the Executive to receive monthly payments for a period of one hundred and twenty months after the employees termination or age 65, and whereas executive and bank prefer that executive work through 2016 will commence on the 1st day of February 2017 and continue for 120 months.

 

 

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