Document:

Exhibit 10.2

CHINO COMMERCIAL BANK,
N.A.

SALARY CONTINUATION PLAN

1.                                       Purpose.

The purpose of this Salary Continuation Plan (the “Plan”) is to provide
to those individuals upon whom responsibilities for the successful
administration and management of the Bank rest, and whose past and future
contributions to the Bank are recognized as critical to the continued success
of the Bank, certain additional benefits in consideration of such contributions
to the Bank. The term “Bank” as used in the Plan, shall mean and include Chino
Commercial Bank, N.A., a national banking association, any bank holding company
affiliate thereof and any consolidated subsidiary corporations and successors.

2.                                       Administration.

2.1           General. The Plan shall be administered by the Board of Directors
of Chino Commercial Bank, N.A. (the “Board of Directors”) unless and until the
Board of Directors delegates administration to a committee (the “Compensation
Committee”), as provided in Section 2.3 below. Any action by the Board of
Directors with respect to administration of the Plan shall be taken pursuant to
a majority vote by its members; provided, however, that with respect to any
action taken by the Board of Directors in connection with the grant of any
benefits under the Plan to an individual director, such action must be
authorized by the required number of directors without counting the interested
director, who shall abstain from any vote regarding benefits which may be
granted to him or her under the Plan and the determination, construction or
interpretation of any of the terms and conditions of his or her Salary
Continuation Agreement (as defined in Section 3 below). An interested
director may be counted in determining the presence of a quorum at a meeting of
the Board of Directors where such action will be taken.

2.2           Powers. The Board of Directors shall have the power, subject
to, and within the limitations of, the express provisions of the Plan:

a.             To
determine from time to time which of the persons who are eligible to receive
benefits under the Plan will be granted such benefits and how and when such
benefits will be granted;

b.             To
construe and interpret the Plan and any benefits granted pursuant to the Plan;
to establish, amend or rescind rules and regulations for the Plan’s
administration; to determine, construe and interpret any and all of the terms
and conditions of any Salary Continuation Agreement (as defined in Section 3
below); and to correct any defect, supply any omission or reconcile any
inconsistency in the Plan or in any Salary Continuation Agreement in a manner
and to the extent it shall deem necessary or expedient to make the Plan fully
effective; and

 

c.             To
exercise such other powers and to perform such other acts as it deems necessary
or expedient to administer the Plan and otherwise promote the best interests of
the Bank.

2.3           Compensation Committee. The Board of Directors may delegate
administration of the Plan to a Compensation Committee appointed by the Board
of Directors and composed of not fewer than three (3) members of the Board
of Directors. All members of the Compensation Committee shall be members of the
Board of Directors. Each member of the Compensation Committee shall serve on
such committee until removed by the Board of Directors or until such member
otherwise vacates such position. The Compensation Committee shall have, in
connection with administration of the Plan, the powers theretofore possessed by
the Board of Directors as set forth in Section 2.2 hereof, subject,
however, to such resolutions, not inconsistent with the provisions of the Plan,
as may be adopted from time to time by the Board of Directors. Any action of
the Compensation Committee with respect to administration of the Plan shall be
taken pursuant to a majority vote or to the unanimous written consent of its
members. The Board of Directors may abolish the Compensation Committee at any
time and revest in the Board of Directors the administration of the Plan.

3.                                       Eligibility.

All salaried officers and other key employees of the Bank may, upon
action by the Board of Directors, be eligible to receive benefits under the
Plan. Members of the Board of Directors of the Bank, who are not salaried
officers or otherwise key employees of the Bank, shall not be eligible to
receive benefits under the Plan.

Each individual who is granted benefits under the Plan (collectively,
the “Participants”) shall enter into a Salary Continuation Agreement with the
Bank (“Salary Continuation Agreement” or “Agreement”), the terms and conditions
of which will be determined by the Board of Directors or the Compensation
Committee, as the case may be. The terms and conditions of each Salary
Continuation Agreement need not be identical. No rights to receive benefits
shall exist in the absence of a duly executed Salary Continuation Agreement.

4.                                       Funding; Limitation on Bank’s
Obligations.

The Bank shall have the right, but not the obligation, to earmark or
segregate any funds or other assets to be used for payment of any benefits
granted under the Plan. Under no circumstances shall any act by the Bank, the
Board of Directors or the Compensation Committee, if any, be considered as
evidence of the creation of a trust fund, an escrow, or any other segregation
of assets for the benefit of any Participant in the Plan, or the benefit of any
beneficiary of a Participant. If at any time the Bank, in its sole discretion,
shall earmark or set aside any cash funds or other assets to pay benefits under
this Plan, the same shall, nevertheless, remain and be regarded as part of the
general assets of the Bank subject to the claims of its general creditors.

The Bank’s obligation to make payments described in the Plan is an
unfunded and unsecured contractual obligation only; and in the event any
insurance company issuing a life insurance or annuity policy or other
investment instrument purchased by the Bank to fund any 

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Salary Continuation Agreement hereunder shall fail or
be in imminent danger thereof, the Bank shall have the right to take immediate
action to recoup so much of its investment as possible, and shall have no
obligation to fund any Agreement hereunder or portion thereof to the extent
that such Agreement was intended to be funded by the proceeds of such policy,
annuity or other investment. Neither the Participants nor their beneficiaries
shall have any beneficial or preferred interest by way of trust, escrow, lien
or otherwise, in any specific assets or funds of the Bank, including any
insurance or annuity contracts or the proceeds therefrom, as described below. Participants
and their beneficiaries shall look solely to the general credit of the Bank for
satisfaction of any current or future obligation due under this Plan.

No life insurance or annuity policy purchased by the Bank in connection
with the Plan shall in any way be considered to be security for the performance
of the Bank’s obligations under the Plan. The Bank shall be the owner and
beneficiary of such policy(ies) and any such policy shall be, and remain, a
general unpledged, unrestricted asset of the Bank. However, the Bank may, in
its discretion, elect to pay death benefits to participants in the Plan by
means of Split Dollar life insurance policies. In such event, the Bank would
still be the sole owner of the policies and have the right to exercise all
incidents of ownership, and would be the beneficiary of the remaining death
proceeds of the Policy after the interests of the Participants’ had been paid. If
death benefits are to be paid in this manner, the Bank shall enter into Split
Dollar Agreements with applicable Participants, specifying the benefits to be
paid and related matters.

Nothing contained in the Plan, and no action taken by the Board of
Directors or the Compensation Committee, as the case may be, in connection with
the administration of the Plan, shall create or be construed to create a trust
of any kind, or a fiduciary relationship between the Bank and the Participants,
their designated beneficiaries or any other person.

5.                                       Calculation of Benefits Payable to
Participants.

The specific amount of benefits paid to Participants will vary
depending on such factors as, but not limited to, an individual Participant’s
age at the time of entry into the Plan and the number of remaining years prior
to his or her stated retirement date. Upon acceptance of a salaried officer or
other key employee of the Bank into the Plan, the Bank shall determine the
specific amount of benefits to be granted such Participant and shall delineate
such benefits in such Participant’s Salary Continuation Agreement and Split
Dollar Agreement if applicable.

For purposes of this Section 5, a Participant will be deemed to
have been “continuously employed” by the Bank if he or she has performed his or
her duties as an employee of the Bank on a full-time basis without any material
break in employment. A “material break in employment” shall be defined as (i) voluntary
termination by a Participant of his or her employment or termination by the
Bank without cause of a Participant’s employment for a period of ninety (90)
consecutive days, (ii) termination
by the Bank with cause, or (iii) a cumulative period of time totaling one hundred
eighty (180) days during any calendar year, during which time the Participant has ceased to
perform his or her duties as an employee of the Bank on a full-time basis;
provided, however, that a material break in employment shall not include any
military leave, sick leave or other bona fide leave of absence (to be
determined by the Board of Directors or the Compensation Committee, as the case
may be) of the Participant. For purposes of determining the amount of benefits
to be paid to a Participant in accordance with his or her 

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Salary Continuation Agreement, commencing upon the
effective date of a Participant’s Agreement, each twelve-month period in which
a Participant has been continuously employed by the Bank shall be deemed a “Full
Year of Employment With the Bank Completed.”

5.1           Retirement. When a Participant reaches the retirement date
as set forth in such Participant’s Salary Continuation Agreement, the Bank
shall pay retirement benefits to such Participant in the amounts set forth in
his or her Agreement. Such benefits shall be payable in equal monthly
installments to such Participant for a period of ten (10) consecutive
years commencing on the first business day of the month following the stated
retirement date and continuing on the first business day of each month
thereafter for one hundred twenty (120) consecutive months until the specified
number of installments have been paid in full. The Bank shall have no
obligation under this Section 5.1 to any Participant who was not
continuously employed by the Bank during the period from the date of execution
of such Participant’s Salary Continuation Agreement until such Participant’s
stated retirement date as set forth in his or her Agreement; provided, however,
that such Participant may be entitled to receive a certain percentage of such
retirement benefits as provided for in subsections 5.3.b through 5.3.d herein.

5.2           Death Prior to Retirement. In the event a Participant dies
after acceptance into the Plan but prior to the retirement date set forth in
such Participant’s Salary Continuation Agreement, and the Bank has entered into
a Split Dollar Agreement with such Participant, then the Bank shall pay to the
beneficiary designated by the Participant, the Participant’s surviving spouse,
if any, or to the Personal Representative of the Participant’s estate, as the
case may be (as more fully described in Section 7 hereof), a lump sum
benefit as specified in the Participant’s Split Dollar Agreement, or as
otherwise specified in the applicable life insurance policy or policies. If no
Split Dollar Agreement has been entered into, then the Bank shall pay to such
beneficiary the benefits upon death prior to retirement that are delineated in
such Participant’s Salary Continuation Agreement. Payment of such benefits
shall be made in equal monthly installments commencing on the first business
day of the month following the Participant’s death and shall continue on the
first business day of each month thereafter for one hundred twenty (120)
consecutive months until all of the specified number of installments have been
paid in full. However, the Bank shall have no obligation to pay any such
benefits if the cause of death is one for which coverage is excluded under the
applicable life insurance policy or policies.

5.3           Termination of Employment.

a.             Termination for Cause. In the event the Bank terminates a
Participant’s employment with the Bank for cause, the Bank shall have no
obligation to pay any benefits under the Plan to such Participant or any
beneficiary thereof. If a Participant has entered into a written employment
agreement with the Bank, then, solely for the purpose of determining benefits
to be paid under the Plan, “cause” shall have the same definition as that set
forth in such employment agreement. If a Participant has not entered into a
written employment agreement with the Bank, then, solely for the purpose of
determining benefits to be paid under the Plan, “cause” shall be defined as: (i) failure
to perform or habitual neglect of the duties which a Participant is required to
perform as an employee of the Bank, (ii) a Participant’s suspension or
removal from office by the Comptroller of the Currency, the Federal Deposit
Insurance Corporation or any other regulatory agency having appropriate
jurisdiction, (iii) engagement in illegal activity which materially
adversely affects the Bank’s reputation in the community or 

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which evidences the lack of the Participant’s fitness or ability to
perform his or her duties as an employee of the Bank as determined by the Board
of Directors in good faith, or (iv) the commission by the Participant of
any act which would cause termination of coverage under the Bank’s Bankers’
Blanket Bond as to the Participant (as distinguished from termination of
coverage as to the Bank as a whole).

Notwithstanding
any other provision of this subsection 5.4(a), termination of a Participant’s
employment with the Bank as a result of such Participant’s death or “total
disability” (as defined in subsection 5.4(d) hereof) will not be deemed to
be termination for “cause” for the purpose of determining benefits to be paid
under the Plan.

b.             Termination without Cause. In the event the Bank terminates
a Participant’s employment with the Bank without cause prior to the Participant’s
stated retirement date, such Participant shall receive an annual retirement
benefit equal to the percentage of total retirement benefits (which would
otherwise have been payable to a Participant upon retirement pursuant to Section 5.1
hereof) which have vested as of the date of termination as determined by the
vesting schedule for “Benefits Upon Termination by the Bank Without Cause” set
forth in such Participant’s Salary Continuation Agreement. Such benefits shall
be payable by the Bank for ten (10) consecutive years in one hundred
twenty (120) equal monthly installments commencing on the first business day of
the month following a Participant’s retirement date as set forth in his or her
respective Salary Continuation Agreement and continuing on the first business
day of each month thereafter until all of the specified number of installments
have been paid in full. Solely for the purpose of determining benefits to be
paid under the Plan, termination “without cause” shall mean termination of a
Participant’s employment with the Bank for any reason whatsoever; provided,
however, that termination “without cause” shall not include any termination of
Participant’s employment with the Bank for “cause,” or as a result of a
Participant’s voluntary termination of his or her employment with the Bank, a
Participant’s death or total disability, as a result of any Reorganization (as
defined in Section 6 hereof) or any other exclusion from such definition
as may be set forth in a Participant’s Salary Continuation Agreement.

c.             Voluntary Termination. In the event a Participant
voluntarily terminates his or her employment with the Bank, such Participant
shall receive an annual retirement benefit equal to the percentage of total
retirement benefits (which would otherwise have been payable to a Participant
upon retirement pursuant to Section 5.1 hereof) which have vested as
determined by the vesting schedule for benefits upon voluntary termination set
forth in such Participant’s Salary Continuation Agreement. However, in order to
qualify for any benefits in the event of voluntary termination, the Participant
must refrain from engaging in the business of banking within a twenty-five
(25) mile radius of the Bank’s main office, or any branch office, or of any
location for which the Bank has applied for a branch office. Such benefits shall be payable by the
Bank for ten (10) consecutive years in one hundred twenty (120) equal
monthly installments commencing upon the first business day of the month
following Participant’s retirement date as set forth in his or her respective
Agreement and continuing on the first business day of each month thereafter
until all of the specified number of installments have been paid in full.

d.             Total Disability. In the event a Participant suffers a total
disability after acceptance into the Plan but prior to retirement, such
Participant shall receive an annual 

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retirement benefit equal to the percentage of total retirement benefits
(which would otherwise have been payable to a Participant upon retirement
pursuant to Section 5.1 hereof) which have vested as determined by the
vesting schedule for benefits upon disability set forth in such Participant’s
Salary Continuation Agreement. Such benefits shall be payable by the Bank for ten
(10) consecutive years in one hundred twenty (120) equal monthly
installments commencing upon the first business day of the month following
Participant’s retirement date as set forth in his or her respective Agreement
and continuing on the first business day of each month thereafter until all of
the specified number of installments have been paid in full. In the event a
Participant has entered into a written employment agreement with the Bank,
then, solely for the purpose of determining benefits to be paid under the Plan,
“total disability” shall have the same definition as that set forth in such
employment agreement, if any. If a Participant has not entered into a written
employment agreement with the Bank (or if “total disability” is not defined in
such employment agreement), then, solely for the purpose of determining
benefits to be paid under the Plan, “total disability” shall be defined as the
inability of a Participant to engage in his or her regular duties as an
employee of the Bank by reason of any medically determined physical or mental
impairment for a period of ninety (90) consecutive days or a cumulative period of one hundred
eighty (180) days
during any one calendar year.

5.4           Death Subsequent to Retirement, Disability or Other Termination of Employment.
In the event a Participant dies subsequent to the retirement date
set forth in his or her Salary Continuation Agreement or subsequent to the date
of his or her termination of employment by the Bank as a result of any
Reorganization of the Bank, and such Participant has entered into a Split
Dollar Agreement with the Bank, then the Bank (or successor entity if
applicable) shall immediately cease paying any retirements benefits under such
Salary Continuation Agreement, and shall instead pay a lump sum death benefit
to the Participant’s beneficiary as specified in the Participant’s Split Dollar
Agreement or as otherwise specified in the applicable life insurance policy or
policies. In the event a Participant dies subsequent the termination of his or
her employment by the Bank without cause, voluntary termination of employment,
or termination of employment due to total disability, as described in
subsections 5.3.b through 5.3.d hereof, then the amount of benefits due under
the Participant’s Split Dollar Agreement shall be proportional to the amount of
the Participant’s benefits which were vested pursuant to the Participant’s
Salary Continuation Agreement at the time of such termination. No deductions
shall be made from the death benefit for any payments previously made under
this Salary Continuation Agreement.

If a Participant has not entered into a Split Dollar Agreement with the
Bank, then all of the retirement benefits (or the remaining retirement
benefits, as the case may be) which are due the Participant pursuant to Section 5.1,
5.3.b through 5.3.d or Section 6 hereof, and in accordance with his or her
Salary Continuation Agreement, shall be payable by the Bank to the appropriate
beneficiary in such installments and on such dates as were payable to the
Participant prior to his or her death. However, the Bank shall have no
obligation to pay or continue to pay (as applicable) any such benefits if the
cause of death is one for which coverage is excluded under the applicable life
insurance policy or policies.

5.5           Early or Late Retirement. In connection with benefits to be
paid under the Plan, any Participant may apply directly to the Board of
Directors for an early or late retirement. In the event the Board of Directors
accepts the Participant’s application for early or late retirement, 

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such Participant’s Salary Continuation Agreement shall be amended to
reflect the revised terms of such Participant’s retirement date and amount of
retirement benefits. Such revised benefits shall be payable by the Bank pursuant
to this Section 5.5 only to the extent that the Participant was
continuously employed by the Bank during the period from the date of execution
of such Participant’s Agreement until the date of such Participant’s revised
retirement date. To the extent that the Participant was not continuously
employed by the Bank during such period, the Participant’s benefits under the
Plan, if any, will be covered by either Section 5.3 or Section 6
herein. Retirement benefits under this Section 5.5 shall be payable in equal
monthly installments for a period of ten (10) consecutive years commencing
on the first business day of the month following the Participant’s revised
retirement date and continuing on the first business day of each month
thereafter for one hundred twenty (120) consecutive months until all of the
specified installments have been paid in full. In the event such Participant
dies subsequent to his or her revised retirement date set forth in his or her
amended Salary Continuation Agreement, and has not entered into a Split Dollar
Agreement with the Bank, then all of the retirement benefits (or remaining
retirement benefits, as the case may be) which are due such Participant under
his or her Agreement shall be payable by the Bank to the beneficiary designated
by such Participant, to the Participant’s surviving spouse, if any, or to the
Participant’s estate, as the case may be (as more fully described in Section 7
herein), in such installments and on such dates as were payable to the
Participant prior to his or her death. If the Bank has entered into a Split
Dollar Agreement with a Participant, then payment of death benefits shall be in
a lump sum as specified in such Participant’s Split Dollar Agreement or as
otherwise specified in the applicable life insurance policy or policies. However,
the Bank shall have no obligation to pay or continue to pay (as applicable)
such benefits if the cause of death is one for which coverage is excluded under
the applicable life insurance policy or policies.

6.                                       Reorganization.

For purposes of this Plan, a “Reorganization” shall include: (i) a
reorganization, merger, or consolidation of the Bank with one or more
corporations as a result of which the Bank will not be the surviving entity, (ii) a
sale of substantially all the assets and property of the Bank to another
person, corporation or entity, or (iii) a “change in control”, i.e., any
other single transaction involving the Bank (such as a tender offer) where
there is a change in ownership of at least twenty-five percent (25%) of the
Bank’s outstanding shares, unless such change in ownership results from (i) a
transfer of shares to another corporation in exchange for at least eighty
percent (80%) control of that corporation, or (ii) the issuance of
additional shares of stock by the Bank in a secondary stock offering, private
placement or similar transaction. In the event of any reorganization, this Plan
shall not be terminated, and the surviving or resulting corporation, or the
transferee of the Bank’s assets or stock, whichever may apply, shall be bound
by and shall have the benefits of the Plan and each Salary Continuation
Agreement then in effect. The Bank shall take all actions necessary to ensure
that such corporation or transferee is bound by all of the provisions of the
Plan. In the event that the employment of any Participant is terminated (or “constructively
terminated”) in connection with or within one (1) year following a
Reorganization, the Participant shall be one hundred percent (100%) vested in
the total benefit as described in subsection 1(a) of this Agreement. For
purposes of this Plan, “constructive termination” shall include: (i) any
decrease in salary or benefits below those in effect for the Participant
immediately prior to the Reorganization or (ii) any relocation of the
Participant more 

 7
 

 

than twenty-five (25) miles from his or her principal place of
business immediately prior to the Reorganization.

Notwithstanding the prior paragraph, no payment shall be made to any
Participant any Salary Continuation Agreement to the extent that such payment,
when aggregated with all other payments considered for purposes of calculating
a parachute payment, would result in an excess parachute payment as defined
under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”),
and each Participant’s Salary Continuation Agreement shall contain a provision
to such effect.

7.                                       Beneficiaries.

A Participant may designate one or more primary or contingent
beneficiaries to receive all or any specified portion of any benefits under the
Plan which, at the time of such Participant’s death, remain payable by the Bank
to such Participant. Such Participant may designate such beneficiary(ies) on Exhibit A
to his or her Salary Continuation Agreement. The designation of any such beneficiaries
may be changed or revoked at any time prior to a Participant’s death by giving
the Bank three (3) days’ written notice of such change or revocation in
the manner provided in Section 12 of the Plan.

In the event a Participant shall fail to designate a beneficiary prior
to his or her death or designates a beneficiary and thereafter revokes such
designation without naming another beneficiary, or designates one or more
beneficiaries and all such beneficiaries so designated shall fail to survive the
Participant, any payments of benefits under the Plan shall be made to the
Participant’s surviving spouse, if any, or otherwise to the Personal
Representative of the Participant’s estate.

Unless a Participant has specified otherwise in the beneficiary designation,
the beneficiary or beneficiaries designated by the Participant shall become
fixed as of the Participant’s death so that, if a beneficiary survives a
Participant but dies prior to the receipt of all payments due such beneficiary,
such remaining payments shall be payable to the Personal Representative of such
beneficiary’s estate.

Participants and their beneficiaries shall not have any assignable
interest in the future payments due under the Plan, nor any right to
anticipate, dispose of, pledge or encumber the same prior to actual receipt
thereof, nor shall the same be subject to attachment, garnishment, or execution
following judgment or other legal process instituted by a Participant’s
creditors or any such beneficiary; provided, however, that the balance of a
Participant’s benefit payments shall at all times be subject to offset for
debts owed by such Participant to the Bank.

8.                                       Withholding Taxes.

The Bank may withhold from any payment made under the Plan (and remit
to the proper taxing authority) such amounts as it may be required to withhold
under any applicable federal, state, local or foreign law.

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9.                                       Effect on Employment Rights and Other
Benefit Programs.

Nothing in the Plan, in any Salary Continuation Agreement or in any
Split Dollar Agreement shall be deemed to give any Participant any right to
remain in the employ of the Bank nor to affect the right of the Bank to
terminate the employment of any Participant at any time, with or without cause,
which right is hereby reserved. This Plan shall not be considered a supplement
to any contract of employment, either oral or written, between any Participant
and the Bank.

The Plan is in addition to, and not in lieu of, any benefit plan or
program in which a Participant may be or become eligible to participate by
reason of his or her association with the Bank.

10.                                 Binding Effect of Salary Continuation
Agreements.

Subject to the provisions hereof, the agreements created by this Plan
shall be binding upon and inure to the benefit of the parties hereto, the successors
and assigns of the Bank, and the Participants’ beneficiaries, personal
representatives, and heirs.

11.                                 Amendment and Termination.

The Board of Directors or the Compensation Committee, as the case may
be, may terminate the Plan, or make such changes in it and additions to it as
it shall deem advisable; provided, however, that no termination or amendment of
the Plan may, without the consent of a Participant, terminate such Participant’s
benefits under the Plan or materially and adversely affect the Participant’s
rights under the Plan, except in the event of certain changes in the law
described in the sentence immediately following. The Bank reserves the right to
terminate or modify a Participant’s outstanding agreement or benefits in the
event of (i) any changes in federal tax laws which would limit the Bank’s
available tax deductions in connection with the funding of any Agreements
hereunder; or (ii) any changes in applicable laws, regulations or
regulatory policies which would cause the Plan or Agreements to be legally
impermissible or would subject the Bank to criticism by a bank regulatory
agency.

12.                                 Notices.

All notices or other communications required or permitted to be given
hereunder shall be in writing and shall be deemed to have been duly given, upon
personal delivery (professional courier acceptable) or three (3) business
days following deposit with the United States Postal Service, by registered or
certified mail, postage prepaid, with return receipt requested, to the
following addresses: (a) if to the Bank, to its principal place of
business, and (b) if to a Participant, to his or her address set forth on
the signature page of his or her respective Salary Continuation Agreement.
Such persons or addresses may change from time to time by notice given pursuant
to the provisions of this Section.

13.                                 Governing Law.

Except to the extent governed by the laws of the United States, this
Plan shall be governed by and construed in accordance with the laws of the
State of California.

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14.                                 Effective Date of Plan.

The Plan was adopted by the Bank on February 19, 2004 and the
first year of the Plan shall be the fiscal year ending December 31, 2004.

 

 10Exhibit 10.3

CHINO COMMERCIAL BANK,
N.A.

SALARY CONTINUATION
AGREEMENT

This Salary Continuation Agreement (the “Agreement”) is entered into
effective the 1st day of June, 2004, by and between Chino Commercial Bank,
N.A., a national banking association (the “Bank”), and Dann H. Bowman (the
“Participant”), pursuant to the Salary Continuation Plan of the Bank (the “Plan”),
a copy of which is attached hereto and incorporated herein by this reference. All
capitalized terms not herein defined shall have the same meaning ascribed to
them as in the Plan.

1.             Grant of Salary Continuation Benefits. Pursuant to the
action of the Board of Directors or the Compensation Committee, as the case may
be, the Bank hereby grants to the Participant the salary continuation benefits
set forth in subsections 1(a) through (g) hereof. For purposes of
this Agreement, “Full Years of Employment With the Bank Completed” shall have
the same meaning as set forth in the Plan.

(a)           Benefits Upon Retirement. The Bank shall pay to the
Participant an annual retirement benefit of Forty-four Thousand Dollars
($44,000) per year for ten (10) consecutive years. Such payments shall be
made in one hundred twenty (120) equal monthly installments commencing on the
first business day of the month following the Participant’s retirement date (as
set forth below) and continuing on the first business day of each month
thereafter until the specified number of installments have been paid in full. The
Bank shall have no obligation under this subsection 1(a), except as provided in
subsection 1(c) through (f) herein, if the Participant was not
continuously employed (as defined in Section 5 of the Plan) by the Bank
during the period from the date of execution of this Agreement until the
Participant’s retirement date set forth below. For purposes of this Agreement
and the Plan, the Participant’s retirement date shall be the first day of the
calendar month following the Participant’s sixty-fifth (65th) birthday.

(b)           Benefits Upon Death Prior to Retirement. In the event the
Participant dies prior to retirement while still employed by the Bank, the Bank
shall pay to the beneficiary designated by the Participant, the Participant’s
surviving spouse, if any, or to the Personal Representative of the Participant’s
estate, as the case may be (as more fully described in Section 6 hereof),
a lump sum benefit as specified in the Participant’s Split Dollar Agreement, a
copy of which is attached hereto as Exhibit “A,” or as otherwise specified
in the applicable life insurance policy or policies.

(c)           Benefits Upon Termination of Employment by the Bank Without Cause. In
the event the Bank terminates the Participant’s employment with the Bank
without cause (as defined in Section 5.4 of the Plan), the Bank shall pay
to the Participant a certain percentage of the retirement benefits granted by
the Bank in subsection 1(a) of this Agreement. The annual retirement
benefit payable by the Bank to the Participant pursuant to this subsection 

 

1(c) shall be equal to the amount which corresponds to the
percentage of such retirement benefits which have vested as determined by the
following vesting schedule:

	
  Full Years of

  Employment with the

  Bank Completed1

  	
   

  	
  Percent of

  Retirem ent Benefits

  Vested

  	
   

  	
  Full Years of

  Employment with the

  Bank Completed

  	
   

  	
  Percent of Retirement

  Benefits Vested

  	
   

  
	
   

  	
  1

  	
   

  	
   

  	
   

  	
  14

  	
  %

  	
   

  	
   

  	
  5

  	
   

  	
   

  	
   

  	
  70

  	
  %

  	
   

  
	
   

  	
  2

  	
   

  	
   

  	
   

  	
  28

  	
  %

  	
   

  	
   

  	
  6

  	
   

  	
   

  	
   

  	
  84

  	
  %

  	
   

  
	
   

  	
  3

  	
   

  	
   

  	
   

  	
  42

  	
  %

  	
   

  	
   

  	
  7

  	
   

  	
   

  	
   

  	
  100

  	
  %

  	
   

  
	
   

  	
  4

  	
   

  	
   

  	
   

  	
  56

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Such retirement payments shall be payable by the Bank for ten (10) consecutive
years in one hundred twenty (120) equal monthly installments commencing upon
the first business day of the month following the Participant’s retirement date
(as set forth in subsection 1(a) hereof) and continuing on the first
business day of each month thereafter until the specified number of installments
have been paid in full.

(d)           Benefits Upon Voluntary Termination of Employment by Participant. In
the event the Participant voluntarily terminates his employment with the Bank,
the Bank shall pay to the Participant a certain percentage of the retirement
benefits granted by the Bank in subsection 1(a) of this Agreement. However,
in order to qualify for any benefits in the event of voluntary termination, the
Participant must refrain from engaging in the business of banking
within a twenty-five (25) mile radius of the Bank’s main office, or any branch
office, or of any location for which the Bank has applied for a branch office. The annual retirement benefit payable by
the Bank to the Participant pursuant to this subsection 1(d) shall be
equal to the amount which corresponds to the percentage of such retirement
benefits which have vested as determined by the following vesting schedule:

	
  Full Years of

  Employment with the

  Bank Completed1

  	
   

  	
  Percent of

  Retirem ent Benefits

  Vested

  	
   

  	
  Full Years of

  Employment with the

  Bank Completed

  	
   

  	
  Percent of Retirement

  Benefits Vested

  	
   

  
	
   

  	
  1

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  	
   

  	
  7

  	
   

  	
   

  	
   

  	
  28

  	
  %

  	
   

  
	
   

  	
  2

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  	
   

  	
  8

  	
   

  	
   

  	
   

  	
  42

  	
  %

  	
   

  
	
   

  	
  3

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  	
   

  	
  9

  	
   

  	
   

  	
   

  	
  56

  	
  %

  	
   

  
	
   

  	
  4

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  	
   

  	
  10

  	
   

  	
   

  	
   

  	
  70

  	
  %

  	
   

  
	
   

  	
  5

  	
   

  	
   

  	
   

  	
  0

  	
  %

  	
   

  	
   

  	
  11

  	
   

  	
   

  	
   

  	
  84

  	
  %

  	
   

  
	
   

  	
  6

  	
   

  	
   

  	
   

  	
  14

  	
  %

  	
   

  	
   

  	
  12

  	
   

  	
   

  	
   

  	
  100

  	
  %

  	
   

  

 

Such retirement payments shall be payable by the Bank for ten (10) consecutive
years in one hundred twenty (120) equal monthly installments commencing upon
the first business day of the month following the Participant’s retirement date
(as set forth in subsection 1(a) hereof) with the Bank and continuing on
the first business day of each month thereafter until the specified number of
installments have been paid in full.

(e)           Benefits Upon Termination of Employment Due to Total Disability. In
the event the Participant’s employment with the Bank is terminated due to “total
disability” (as 

1 Commencing on the effective date of this
Agreement.

 

 2
 

 

defined in Section 5.4 of the Plan), the Bank shall pay to the
Participant a certain percentage of the retirement benefits granted by the Bank
in subsection 1(a) of this Agreement. The amount of the annual retirement
benefit payable by the Bank to the Participant pursuant to this subsection 1(e) shall
be identical to that specified in the vesting schedule set forth in subsection
1(c) above concerning termination without cause.

2.             Death Subsequent to Retirement, Disability or Other Termination of
Employment. In the event the Participant dies subsequent to the
retirement date set forth in subsection 1(a), or as contemplated by Section 4,
or subsequent to the date of his termination of employment by the Bank as a
result of any Reorganization of the Bank as described in Section 5 below,
the Bank (or successor entity if applicable) shall immediately cease paying any
retirements benefits under this Agreement, and shall instead pay a lump sum
death benefit to the Participant’s beneficiary as specified in the Participant’s
Split Dollar Agreement or as otherwise specified in the applicable life
insurance policy or policies. In the event the Participant dies subsequent the
termination of his employment by the Bank without cause, voluntary termination
of employment, or termination of employment due to total disability, as
described in subsections 1(c) through (e) hereof, then the amount of
benefits due under the Participant’s Split Dollar Agreement shall be
proportional to the amount of the Participant’s benefits which were vested
pursuant to the Participant’s Salary Continuation Agreement at the time of such
termination. No deductions shall be made from the death benefit for any payments
previously made under this Salary Continuation Agreement.

3.             Termination of Employment For Cause. In the event the Bank
terminates the Participant’s employment with the Bank for “cause” (as defined
in the Plan), the Bank shall have no obligation to pay any benefits under the
Plan, this Agreement or the Participant’s Split Dollar Agreement to the
Participant or any beneficiary thereof.

4.             Early or Late Retirement. The Participant may apply to the
Board of Directors for an early or late retirement. The decision whether to
accept or reject such an application shall be in the sole discretion of the
Board of Directors, and the Board shall have no obligation whatsoever to accept
any such application. In the event the Board of Directors accepts the
Participant’s application for early or late retirement, this Agreement shall be
amended to reflect the revised terms of the Participant’s retirement date and
amount of such retirement benefits. Such revised benefits shall be payable by
the Bank pursuant to this Section 4 only to the extent that the
Participant was continuously employed by the Bank during the period from the
date of execution of this Agreement until the date of the Participant’s revised
retirement date. Retirement benefits under this Section 4 shall be payable
in equal monthly installments for a period of ten (10) consecutive years
commencing on the first business day of the month following the Participant’s
revised retirement date and continuing on the first business day of each month
thereafter for one hundred twenty (120) consecutive months until all of the
specified installments have been paid in full.

5.             Reorganization. For purposes of this Agreement, a “Reorganization”
shall include: (i) a reorganiza­tion, merger, or consolidation of the Bank
with one or more corporations as a result of which the Bank will not be the
surviving entity, (ii) a sale of substantially all the assets and property
of the Bank to another person, corporation or entity, or (iii) a Achange in control,@ i.e., any other single transaction
involving the Bank (such as a tender offer) where 

 3
 

 

there is a change in ownership of at least twenty-five percent (25%) of
the Bank=s outstanding shares, unless such
change in ownership results from (i) a transfer of shares to another
corporation in exchange for at least eighty percent (80%) control of that
corporation, or (ii) the issuance of additional shares of stock by the Bank
in a secondary stock offering, private placement or similar transaction. In the event of any Reorganization, the
surviving or resulting corporation, or the transferee of the Bank’s assets or
stock, whichever  may apply, shall be
bound by and shall have the benefits of the Plan and this Agreement. The Bank
shall take all actions necessary to ensure that such corporation or transferee
is bound by the provisions of the Plan and this Agreement.

In the event that the Participant’s employment is terminated (or “constructively
terminated”) in connection with or within one (1) year following a
Reorganization, the Participant shall be one hundred percent (100%) vested in
the total benefit as described in subsection 1(a) of this Agreement. For
purposes of this Agreement, “constructive termination” shall include: (i) any
decrease in salary or benefits below those in effect for the Participant
immediately prior to the Reorganization or (ii) any relocation of the
Participant more than twenty-five (25) miles from his principal place of business immediately prior
to the Reorganization.

Notwithstanding the prior paragraph, no payment shall be made to the
Participant under this Salary Continuation Agreement to the extent that such
payment, when aggregated with all other payments considered for purposes of
calculating a parachute payment, would result in an excess parachute payment as
defined under Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”).

6.             Beneficiaries. The Participant may designate one or more
primary or contingent beneficiaries to receive all or any specified portion of
any benefits under the Plan which, at the time of the Participant’s death
remain payable by the Bank to the Participant. The Participant may designate
such beneficiary(ies) on Exhibit A attached hereto. The designation of any
such beneficiaries may be changed or revoked at any time prior to the
Participant’s death by giving the Bank three (3) days’ written notice of
such change or revocation in the manner provided in Section 9 of this
Agreement.

In the event the Participant shall fail to designate a beneficiary
prior to his death or designates a beneficiary and thereafter revokes such
designation without naming another beneficiary, or designates one or more
beneficiaries and all such beneficiaries so designated shall fail to survive
the Participant, any payments of benefits under the Plan and this Agreement
shall be made to the Participant’s surviving spouse, if any, or otherwise to
the Personal Representative of the Participant’s estate.

Unless the Participant has otherwise specified in the beneficiary
designation, the beneficiary or beneficiaries designated by the Participant
shall become fixed as of the Participant’s death so that, if a beneficiary
survives the Participant but dies prior to the receipt of all payments due such
beneficiary, such remaining payments shall be payable to the Personal
Representative of such beneficiary’s estate.

 4
 

 

The Participant and his beneficiaries shall not have any assignable
interest in the future payments due under the Plan or this Agreement, nor any
right to anticipate, dispose of, pledge or encumber the same prior to actual
receipt thereof, nor shall the same be subject to attachment, garnishment, or
execution following judgment or other legal process instituted by the
Participant’s creditors or any such beneficiary; provided, however, that the
balance of the Participant’s benefit payments shall at all times be subject to
offset for debts owed by the Participant to the Bank.

7.             Effect on Employment Rights. Nothing in this Agreement shall
be deemed to give the Participant any right to remain in the employ of the Bank
nor to affect the right of the Bank to terminate the employment of the
Participant at any time, with or without cause, which right is hereby reserved.
This Agreement shall not be considered a supplement or amendment to any
contract of employment, either oral or written, between the Participant and the
Bank.

8.             Limitation on the Bank’s Obligation to Fund Agreement. The
Bank’s obligation to make payments hereunder is an unfunded and unsecured
contractual obligation only; and in the event any insurance company or other
obligor issuing a life insurance or annuity policy or other investment
instrument purchased by the Bank to fund this Agreement shall fail or be in
imminent danger thereof, the Bank shall have the right to take immediate action
to recoup so much of its investment as possible, and shall have no obligation
to fund this Agreement or portion thereof to the extent that this Agreement was
intended to be funded by the proceeds of such policy, annuity or other
investment. Neither the Participant nor his beneficiaries shall have any
beneficial or preferred interest by way of trust, escrow, lien or otherwise, in
any specific assets or funds of the Bank, including any insurance or annuity
contracts or the proceeds therefrom, as described below.

No life insurance or annuity policy or other investment instrument
purchased by the Bank in connection with this Agreement shall in any way be
considered to be security for the performance of the Bank’s obligations
hereunder. The Bank shall be the owner and beneficiary of such policy(ies) and
any such policy shall be, and remain, a general unpledged, unrestricted asset
of the Bank.

9.             Notices. All notices or other communications required or
permitted to be given hereunder shall be in writing and shall be deemed to have
been duly given, upon personal delivery (professional courier acceptable) or
three (3) business days following deposit with the United States Postal
Service, by registered or certified mail, postage prepaid, with return receipt
requested, to the following addresses: (a) if to the Bank, to its
principal place of business, and (b) if to the Participant, to his address
set forth on the signature page hereof. Such persons or addresses may
change from time to time by notice given pursuant to the provisions of this
Section.

10.           Governing Law. Except to the extent governed by the laws of
the United States, this Agreement shall be governed by and construed in
accordance with the laws of the State of California.

11.           Plan Provisions. This Agreement is subject to all of the
provisions of the Plan, all of the terms and conditions of which have been
incorporated herein by reference, and is 

 5
 

 

further subject to all interpretations, amendments, rules and
regulations which may from time to time be promulgated and adopted pursuant to
the Plan. In the event of any conflict between the provisions of this Agreement
and those of the Plan, the provisions of the Plan shall control. No termination
or amendment of the Plan may, without the consent of the Participant, terminate
the Participant’s benefits under this Agreement or materially and adversely
affect the Participant’s rights under this Agreement, except in the event of
certain changes in laws or regulations described in the sentence immediately
following. The Bank reserves the right to terminate or modify a Participant’s
outstanding agreement or benefits in the event of (i) any changes in
federal tax laws which would limit the Bank’s available tax deductions in
connection with the funding this Agreement; or (ii) any changes in
applicable laws, regulations or regulatory policies which would cause this
Agreement to be legally impermissible or would subject the Bank to criticism by
a bank regulatory agency.

12.           Legal and Tax Advice; Review by Counsel. The Bank has not
provided the Participant with advice, warranties or representations regarding
any of the legal or tax effects to the Participant with respect to the grant of
benefits herein. By accepting this grant and by signing this Agreement, the
Participant acknowledges that he is familiar with the terms of the Plan and
this Agreement, that he has been encouraged by the Bank to discuss the Plan and
this Agreement with his own legal and tax advisers, and that he agrees to be
bound by all of the terms and conditions of the Plan and this Agreement. The
Participant represents and warrants to the Bank that he has had this Agreement
reviewed by independent legal counsel of his choice, or if he has not, that he
has had the opportunity to do so, and hereby waives any claim, objection or
defense on the grounds that this Agreement has not been reviewed by legal
counsel of his choice.

 

	
  

  	
  CHINO COMMERCIAL BANK, N.A. 

  a national banking association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   /s/
  Pollyanna Franks

  
	
   

  	
  By

  	
   

  

 

PARTICIPANT

Dann H. Bowman

President
and Chief Executive Officer

	
  /s/ Dann H. Bowman

  	
   

  

DANN
H. BOWMAN

Participant’s Address:

[Intentionally Omitted]

 6
 

 

EXHIBIT A

DESIGNATION OF
BENEFICIARIES

Pursuant to the terms of a Salary Continuation Agreement, effective June 1,
2004, between Chino Commercial Bank, N.A. (the “Bank”) and me, I hereby
designate the following beneficiary(ies) to receive any payments which may be
due and payable by the Bank under such Agreement after my death:

	
  Primary Beneficiary:

  	
   

  	
  Patricia L. Bowman

  
	
   

  	
   

  	
   

  
	
  Contingent
  Beneficiary:

  	
   

  	
  David Bowman, Joseph Bowman, Joshua Bowman, each as
  to an equal 33%

  

 

The Primary Beneficiary named above shall be the designated beneficiary
referred to in Section 6 of said Agreement if he or she is living at the
time death benefit payments become due and payable by the Bank, and the
Contingent Beneficiary named above shall be the designated beneficiary referred
to in Section 6 of said Agreement only if he or she is living at the time
death benefits become due and payable by the Bank and the Primary Beneficiary
is not then living.

I hereby reserve the right to change said beneficiary(ies) at any time
prior to my death by notice to the Bank in accordance with Section 9 of
the Agreement.

 

	
  Dated:

  	
  12/29/04

  	
   

  	
  /s/ Dann H. Bowman

  
	
   

  	
   

  	
  DANN H. BOWMAN

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   Witness:

  	
   /s/ Robin Mora

  	
   

  	
   

  
					

 

 7

CHINO COMMERCIAL BANK, NA

Split Dollar Agreement

CHINO COMMERCIAL BANK, NA

SPLIT
DOLLAR AGREEMENT

(ADDENDUM A TO THE
CHINO COMMERCIAL BANK SALARY CONTINUATION AGREEMENT)

THIS AGREEMENT is
adopted this 1st day of June, 2004, by and between CHINO COMMERCIAL BANK, NA,
located in Chino, California (the “Company”), and DANN H. BOWMAN (the “Executive”).
This Agreement shall append the Split Dollar Endorsement entered into on even
date herewith or as subsequently amended, by and between the aforementioned
parties.

INTRODUCTION

To encourage the
Executive to remain an employee of the Company, the Company is willing to
divide the death proceeds of a life insurance policy on the Executive’s life. The
Company will pay life insurance premiums from its general assets.

AGREEMENT

The Company and
the Executive agree as follows:

Article 1

General Definitions

The following
terms shall have the meanings specified:

1.1       “Insured” means
the Executive.

1.2       “Insurer” means
each life insurance carrier in which there is a Split Dollar Policy Endorsement
attached to this Agreement.

1.3       “Normal Retirement Age”
means the Executive attaining sixty-five (65) years of age.

1.4       “Policy” means
the specific life insurance policy or policies issued by the Insurer.

1.5       “Salary
Continuation  Agreement” means that Salary Continuation Agreement between the
Company and the Executive on even date herewith or as subsequently amended.

1.6       “Termination for Cause”  shall be defined as set forth in Article 7.

1.7       “Termination of Employment”  means that the Executive ceases to be
employed by the Company for any reason, other than by reason of a leave of
absence approved by the Company.

 

Article 2

Policy
Ownership/Interests

2.1       Company Ownership.
The Company is the sole owner of the Policy and shall have the right to
exercise all incidents of ownership. The Company shall be the beneficiary of
the remaining death proceeds of the Policy after the Interest of the Executive
or the Executive’s transferee has been paid according to Section 2.2
below.

2.2       Executive’s Interest.
The Executive shall have the right to designate the beneficiary of the death
proceeds. The Executive shall also have the right to elect and change
settlement options that may be permitted. Upon the termination of this
Agreement according to Article 7 herein, the Executive, the Executive’s
transferee or the Executive’s beneficiary shall have no rights or interests in
the Policy and no death benefit shall be paid under this Section 2.2.

2.2.1          Death During Active
Service. If the Executive dies while in the active service of the
Company, the Company shall pay to the Executive’s beneficiary $317,639 (Three
Hundred Seventeen Thousand Six Hundred Thirty-Nine Dollars) upon the death of
the Executive.

2.2.2        Death During Payment of a
Benefit under the Salary Continuation Agreement. If the Executive
dies after any benefit payments have commenced under Article 2 of the
Salary Continuation Agreement but before receiving all such payments, the
Company shall cease paying the remaining benefit, if any, and shall then pay to
the Executive’s beneficiary the split dollar death benefit described in Section 2.2.1
of this Agreement.

2.2.3        Death After Termination of
Employment But Before Commencement of Payment under the Salary Continuation
Plan. If the Executive is entitled to a benefit under Article 2
of the Salary Continuation Agreement, but dies prior to the commencement of
said benefit payments, the Company shall pay no benefit under the Salary
Continuation Agreement but shall pay to the Executive’s beneficiary the split
dollar death benefit described in Section 2.2.1 of this Agreement.

However, if the
payments being made pursuant to the Salary Continuation Agreement at the time
of the Executive’s death represent only a portion of the total benefits due
thereunder, due to the application of the vesting schedule set forth in Section 1
(c) through (e) thereof, then the Company shall pay to the Executive’s
beneficiary the same proportion of the split dollar death benefit as the vested
proportion of the benefit that was being paid pursuant to the Salary
Continuation Agreement at the time of Executive’s death.

However, if the
Executive is entitled to only a portion of the benefits to be paid under the
Executive’s Salary Continuation Agreement pursuant to the vesting schedule set
forth in Section 1 (c) through (e) thereof, then the Company
shall pay to the Executive’s beneficiary the same proportion of the split
dollar death benefit as the vested proportion of the benefit due pursuant to
the Salary Continuation Agreement.

 2
 

 

2.2.4        Death After Payment of All
Benefits under the Salary Continuation Agreement. If the Executive
dies after receiving all benefit payments under Article 2 of the Salary
Continuation Agreement, the Company shall still pay to the Executive’s
beneficiary the split dollar death benefit described in Section 2.2.1 of
this Agreement. However, if the payments made pursuant to the Salary
Continuation Agreement represented only a portion of the total benefits due
thereunder, due to the application of the vesting schedule set forth in Section 1
(c) through (e) thereof, then the Company shall pay to the Executive’s
beneficiary the same proportion of the split dollar death benefit as the vested
proportion of the benefit that was paid pursuant to the Salary Continuation
Agreement.

2.3        Comparable Coverage.
Upon execution of this Agreement, the Company shall maintain the Policy in full
force and effect and in no event shall the Company amend, terminate or
otherwise abrogate the Executive’s interest in the Policy, unless the Company
replaces the Policy with a comparable insurance policy to cover the benefit
provided under this Agreement and the Company and the Executive execute a new
Split Dollar Policy Endorsement for said comparable insurance policy. The
Policy or any comparable policy shall be subject to the claims of the Company’s
creditors.

Article 3

Premiums

3.1           Premium Payment. The Company
shall pay any premiums due on the Policy.

3.2       Economic Benefit.
The Company shall determine the economic benefit attributable to the Executive
based on the amount of the current term rate for the Executive’s age multiplied
by the aggregate death benefit payable to the Executive’s beneficiary. The “current
term rate” is the minimum amount required to be imputed under Revenue Rulings
64-328 and 66-110, or any subsequent applicable authority.

3.3       Imputed Income. The Company shall impute
the economic benefit to the Executive on an annual basis.

Article 4

Assignment

The Executive may
assign without consideration all of the Executive’s interests in the Policy and
in this Agreement to any person, entity or trust. In the event the Executive
transfers all of the Executive’s interest in the Policy, then all of the
Executive’s interest in the Policy and in the Agreement shall be vested in the
Executive’s transferee, who shall be substituted as a party hereunder and the
Executive shall have no further interest in the Policy or in this Agreement.

 3
 

 

Article 5

Insurer

The Insurer shall
be bound only by the terms of the Policy. Any payments the Insurer makes or
actions it takes in accordance with the Policy shall fully discharge it from
all claims, suits and demands of all entities or persons. The Insurer shall not
be bound by or be deemed to have notice of the provisions of this Agreement.

Article 6

Claims and Review Procedure

6.1          Claims
Procedure. Any person or entity who has not received benefits under
the Plan that he or she believes should be paid (the “claimant”) shall make a
claim for such benefits as follows:

6.1.1           Initiation
— Written Claim. The claimant initiates a claim by submitting to the
Company a written claim for the benefits.

6.1.2           Timing
of Company Response. The Company shall respond to such claimant
within 90 days after receiving the claim. If the Company determines that
special circumstances require additional time for processing the claim, the
Company can extend the response period by an additional 90 days by notifying
the claimant in writing, prior to the end of the initial 90-day period that an
additional period is required. The notice of extension must set forth the
special circumstances and the date by which the Company expects to render its
decision.

6.1.3           Notice
of Decision. If the Company denies part or all of the claim, the
Company shall notify the claimant in writing of such denial. The Company shall
write the notification in a manner calculated to be understood by the claimant.
The notification shall set forth:

(a)                      The specific
reasons for the denial,

(b)       A reference to the specific provisions of
this Agreement on which the denial is based,

(c)       A description of any additional
information or material necessary for the claimant to perfect the claim and an
explanation of why it is needed,

(d)       An explanation of this Agreement’s review
procedures and the time limits applicable to such procedures, and

(e)       A statement of the claimant’s right to
bring a civil action under ERISA Section 502(a) (29 United States
Code section 1132(a)) following an adverse benefit determination on review.

6.2          Review
Procedure. If the Company denies part or all of the claim, the
claimant shall have the opportunity for a full and fair review by the Company
of the denial, as follows:

 4
 

 

6.2.1           Initiation
— Written Request. To initiate the review, the claimant, within 60
days after receiving the Company’s notice of denial, must file with the Company
a written request for review.

6.2.2           Additional
Submissions — Information Access. The claimant shall then have the
opportunity to submit written comments, documents, records and other
information relating to the claim. The Company shall also provide the claimant,
upon request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant (as defined in applicable
ERISA regulations) to the claimant’s claim for benefits.

6.2.3           Considerations
on Review. In considering the review, the Company shall take into
account all materials and information the claimant submits relating to the
claim, without regard to whether such information was submitted or considered
in the initial benefit determination.

6.2.4           Timing
of Company Response. The Company shall respond in writing to such
claimant within 60 days after receiving the request for review. If the Company
determines that special circumstances require additional time for processing the
claim, the Company can extend the response period by an additional 60 days by
notifying the claimant in writing, prior to the end of the initial 60-day
period that an additional period is required. The notice of extension must set
forth the special circumstances and the date by which the Company expects to
render its decision.

6.2.5           Notice
of Decision. The Company shall notify the claimant in writing of its
decision on review. The Company shall write the notification in a manner
calculated to be understood by the claimant. The notification shall set forth:

(a)                      The specific
reasons for the denial,

(b)       A reference to the specific provisions of
this Agreement on which the denial is based,

(c)       A statement that the claimant is entitled
to receive, upon request and free of charge, reasonable access to, and copies
of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the claimant’s claim for benefits, and

(d)       A statement of the claimant’s right to
bring a civil action under ERISA Section 502(a).

Article 7

Amendments and Termination

7.1       This Agreement may be amended or
terminated only by a written agreement signed by the Company and the Executive.

 5
 

 

7.2       In the event this Agreement is terminated
under this Article 7, the Company shall not sell, surrender or transfer
ownership of the Policy without first giving the Executive or the Executive’s
transferee the option to purchase the Policy for a period of sixty (60) days
from written notice of such intention. The purchase price shall be an amount
equal to the cash surrender value of the Policy.

7.3       Notwithstanding any provision of this
Agreement to the contrary, the Company shall not pay any benefit under this
Agreement if the Company terminates the Executive’s employment for:

(a)        Willful breach of duty in
the course of employment or habitual neglect of employment responsibilities and
duties;

(b)       Conviction of any felony or
crime involving moral turpitude, fraud or dishonesty;

(c)        Willful violation of any
state or federal banking or securities law, the rules or regulations of
any banking agency, or any material Company rule, policy or resolution
resulting in an adverse effect on the Company; or

(d)        Disclosure to any third
party by the Executive, without authority or permission, of any secret or
confidential information of the Company.

7.4       Suicide or Misstatement.
The Company shall not pay any benefit under this Agreement if the Executive
commits suicide within two years after the date of this Agreement. In addition,
the Company shall not pay any benefit under this Agreement if the Executive has
made any material misstatement of fact on an employment application or resume
provided to the Company, or on any application for any benefits provided by the
Company to the Executive.

Article 8

Miscellaneous

8.1       Binding Effect.
This Agreement shall bind the Executive and the Company and their
beneficiaries, survivors, executors, administrators and transferees, and any
Policy beneficiary.

8.2       No Guarantee of Employment.
This Agreement is not an employment policy or contract. It does not give the
Executive the right to remain an employee of the Company, nor does it interfere
with the Company’s right to discharge the Executive. It also does not require
the Executive to remain an employee nor interfere with the Executive’s right to
terminate employment at any time.

8.3       Applicable Law.
The Agreement and all rights hereunder shall be governed by and construed
according to the laws of the State of California, except to the extent preempted
by the laws of the United States of America.

8.4         Reorganization. The Company shall
not merge or consolidate into or with another company, or reorganize, or sell
substantially all of its assets to another company, firm or person unless such
succeeding or continuing company, firm or person agrees to assume and discharge
the obligations of the Company.

 6
 

 

8.5       Notice. Any
notice, consent or demand required or permitted to be given under the
provisions of this Split Dollar Agreement by one party to another shall be in
writing, shall be signed by the party giving or making the same, and may be
given either by delivering the same to such other party personally, or by
mailing the same, by United States certified mail, postage prepaid, to such
party, addressed to his or her last known address as shown on the records of
the Company. The date of such mailing shall be deemed the date of such mailed
notice, consent or demand.

8.6       Entire Agreement. This
Agreement constitutes the entire agreement between the Company and the
Executive as to the subject matter hereof. No rights are granted to the
Executive by virtue of this Agreement other than those specifically set forth
herein.

8.7       Administration. The
Company shall have powers which are necessary to administer this Agreement,
including but not limited to:

(a)            Interpreting the provisions of this Agreement;

(b)           Establishing and revising the method of accounting for this
Agreement;

(c)            Maintaining a record of benefit payments; and

(d)       Establishing rules and prescribing
any forms necessary or desirable to administer this Agreement.

8.8          Named Fiduciary. The
Company shall be the named fiduciary and plan administrator under the Agreement.
The named fiduciary may delegate to others certain aspects of the management
and operation responsibilities of the plan including the employment of advisors
and the delegation of ministerial duties to qualified individuals.

IN WITNESS
WHEREOF, the Executive and the Company consent to this Agreement on the date
above written.

	
  EXECUTIVE:

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
  CHINO COMMERCIAL BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Dann H. Bowman

  	
   

  	
  By

  	
  /s/ Pollyanna Franks

  
	
  Dann H.
  Bowman

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
  Chairman Compensation

  

 

 7
 

 

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

Primary:       Patricia
L. Bowman

Contingent:   David
Bowman, Joseph Bowman and Joshua Bowman, each as to an equal 33%

Note:                         To name a
trust as beneficiary, please provide the name of the trustee(s) and the exact
name and date of the trust agreement.

I understand that
I may change these beneficiary designations by delivering a new written
designation to the Plan Administrator. I further understand that the
designations will be automatically revoked if the beneficiary predeceases me,
or, if I have named my spouse as beneficiary and our marriage is subsequently
dissolved.

Name:   Dann
H. Bowman

	
  Signature:

  	
   

  	
  /s/ Dann H. Bowman

  	
   

  	
  Date:

  	
   

  	
  12/29/04

  

 

 

SPOUSAL CONSENT (Required if Spouse
not named beneficiary):

I consent to the beneficiary designation above, and
acknowledge that if I am named beneficiary and our marriage is subsequently
dissolved, the designation will be automatically revoked.

	
  Spouse Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  Date:

  	
   

  

 

Received by the
Plan Administrator this                 
day of                                    ,
2004.

	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 8

 

POLICY
ENDORSEMENT

Contract Owner:           CHINO
COMMERCIAL BANK, NA

The
undersigned Owner requests that the policy(ies) shown in the attached Schedule Page issued
by Clarica Life Insurance Co.-US (the “Insurer”) provide for the
following beneficiary designation:

1. Upon the death of the Insured, proceeds shall be paid in one
sum to the Owner, its successors or assigns, as Beneficiary, to the extent
claimed by said Owner. 

2. Any proceeds at the death of the Insured in excess of the
amount paid under the provisions of paragraph 1 of this Policy Endorsement
shall be paid in one sum in accordance with the written direction of the Owner.
Such direction will be provided to the Insurer at the time of claim. The
Insurer will be protected in relying solely on the Owner to provide the name(s) of
the party(ies) to pay any excess not paid under paragraph 1. If the Owner fails
to provide the name(s) of the party(ies) at the time of claim, then any
proceeds payable under this paragraph shall be paid in one sum to the
Beneficiary.

3. It is hereby provided that (i) any payment made to the
Beneficiary or other party under paragraph 2 of this Policy Endorsement shall
be a full discharge of the Insurer to the extent thereof; (ii) such
discharge shall be binding on all parties claiming any interest under the
Policy; and (iii) the Insurer shall have no responsibility with respect to
the amounts so claimed.

4. It is agreed by the undersigned that this designation shall be
subject in all respects to the contractual terms of the Policy.

The
undersigned is signing in a representative capacity for the Owner and warrants
that he or she has the authority to bind the entity on whose behalf this
document is being executed.

Signed
at Chino, California, this 29th day of December, 2004.

OWNER:

CHINO COMMERCIAL BANK, NA

	
  By:

  	
   

  	
  /s/ Jo Anne Painter

  	
   

  	
  By:

  	
   

  	
  /s/ Pollyanna Franks

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  EVP/CFO

  	
   

  	
  Title:

  	
   

  	
  Chairman Compensation

  

 

 1
  
 

 

Schedule
Page

Policy(ies) Subject to Policy Endorsement

 

	
  Policy Number

  	
   

  	
  Insured

  
	
   

  	
   

  	
  Dann H. Bowman

  

 

 

 2
  

 

POLICY
ENDORSEMENT

Contract Owner:           CHINO
COMMERCIAL BANK, NA

The
undersigned Owner requests that the policy(ies) shown in the attached Schedule Page issued
by West Coast Life Insurance Co. (the “Insurer”) provide for the
following beneficiary designation:

1. Upon the death of the Insured, proceeds shall be paid in one
sum to the Owner, its successors or assigns, as Beneficiary, to the extent
claimed by said Owner. 

2. Any proceeds at the death of the Insured in excess of the
amount paid under the provisions of paragraph 1 of this Policy Endorsement
shall be paid in one sum in accordance with the written direction of the Owner.
Such direction will be provided to the Insurer at the time of claim. The
Insurer will be protected in relying solely on the Owner to provide the name(s) of
the party(ies) to pay any excess not paid under paragraph 1. If the Owner fails
to provide the name(s) of the party(ies) at the time of claim, then any
proceeds payable under this paragraph shall be paid in one sum to the
Beneficiary.

3. It is hereby provided that (i) any payment made to the
Beneficiary or other party under paragraph 2 of this Policy Endorsement shall
be a full discharge of the Insurer to the extent thereof; (ii) such
discharge shall be binding on all parties claiming any interest under the
Policy; and (iii) the Insurer shall have no responsibility with respect to
the amounts so claimed.

4. It is agreed by the undersigned that this designation shall be
subject in all respects to the contractual terms of the Policy.

The
undersigned is signing in a representative capacity for the Owner and warrants
that he or she has the authority to bind the entity on whose behalf this
document is being executed.

Signed
at Chino, California, this 29th day of December, 2004.

OWNER:

CHINO COMMERCIAL BANK, NA

	
  By:

  	
   

  	
  /s/ Jo Anne Painter

  	
   

  	
  By:

  	
   

  	
  /s/ Pollyanna Franks

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  EVP/CFO

  	
   

  	
  Title:

  	
   

  	
  Chairman Compensation

  

 

 1
 

 

Schedule
Page

Policy(ies) Subject to Policy Endorsement

 

	
  Policy Number

  	
   

  	
  Insured

  
	
   

  	
   

  	
  Dann H. Bowman

  

 

 2

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