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a2013omnibusstockincenti

       FIRST CHOICE BANCORP                                            2013 OMNIBUS STOCK INCENTIVE PLAN                                                                                                                                                                                               

 

                               FIRST CHOICE BANCORP                         2013 OMNIBUS STOCK INCENTIVE PLAN                                  TABLE OF CONTENTS                                                                                      Page  1.   Purpose ........................................................................................................................................ 1  2.   Definitions ..................................................................................................................................... 1       2.1   "Award" ............................................................................................................................... 1       2.2   "Award Agreement" ............................................................................................................. 1       2.3   "Base Price" ........................................................................................................................ 1       2.4   "Board" ............................................................................................................................... 1       2.5   "Code" ................................................................................................................................ 1       2.6   "Committee" ........................................................................................................................ 1       2.7   "Company" .......................................................................................................................... 1       2.8   "Deferral Period" ................................................................................................................. 1       2.9   "Deferred Shares" ............................................................................................................... 1       2.10  "Employee" ......................................................................................................................... 1       2.11  "Fair Market Value" ............................................................................................................. 1       2.12  "Freestanding Stock Appreciation Right" ............................................................................. 2       2.13  "Grant Date" ........................................................................................................................ 2       2.14  "Incentive Stock Option" ...................................................................................................... 2       2.15  "Nonemployee Director" ...................................................................................................... 2       2.16  "Nonqualified Stock Option"................................................................................................. 2       2.17  "Option" .............................................................................................................................. 2       2.18  "Optionee"........................................................................................................................... 2       2.19  "Option Price"...................................................................................................................... 2       2.20  "Participant" ........................................................................................................................ 2       2.21  "Performance Objectives" .................................................................................................... 2       2.22  "Performance Period" .......................................................................................................... 3       2.23  "Performance Share"........................................................................................................... 3       2.24  "Performance Unit" .............................................................................................................. 3       2.25  "Qualified Performance-Based Award" ................................................................................ 3       2.26  "Restricted Shares" ............................................................................................................. 3       2.27  "Shares" .............................................................................................................................. 3       2.28  "Spread" ............................................................................................................................. 3       2.29  "Stock Appreciation Right" ................................................................................................... 3       2.30  "Subsidiary" ........................................................................................................................ 3       2.31  "Tandem Stock Appreciation Right" ..................................................................................... 3  3.   Shares Available Under the Plan ................................................................................................... 3       3.1   Reserved Shares ................................................................................................................ 3       3.2   Reduction Ratio .................................................................................................................. 4       3.3   ISO Maximum ..................................................................................................................... 4       3.4   Maximum Calendar Year Award .......................................................................................... 4  4.   Plan Administration ....................................................................................................................... 4       4.1   Board Committee Administration ......................................................................................... 4       4.2   Committee Delegation. ........................................................................................................ 4  5.   Options ......................................................................................................................................... 4       5.1   Number of Shares ............................................................................................................... 4       5.2   Option Price. ....................................................................................................................... 4       5.3   Consideration. ..................................................................................................................... 4       5.4   Payment of Option Price in Shares ...................................................................................... 5       5.5   Cashless Exercise............................................................................................................... 5       5.6   Performance-Based Options. .............................................................................................. 5       5.7   Vesting................................................................................................................................ 5       5.8   ISO Dollar Limitation ........................................................................................................... 5       5.9   Exercise Period ................................................................................................................... 6       5.10  Award Agreement ............................................................................................................... 6  6.   Stock Appreciation Rights. ............................................................................................................ 6       6.1   Payment in Cash or Shares ................................................................................................. 6                                             i  

 

     6.2   Maximum SAR Payment ..................................................................................................... 6       6.3   Exercise Period ................................................................................................................... 6       6.4   Change in Control ............................................................................................................... 6       6.5   Dividend Equivalents ........................................................................................................... 6       6.6   Award Agreement ............................................................................................................... 6       6.7   Tandem Stock Appreciation Rights ...................................................................................... 6       6.8   Exercise Period ................................................................................................................... 7       6.9   Freestanding Stock Appreciation Rights .............................................................................. 7  7.   Restricted Shares.......................................................................................................................... 7       7.1   Transfer of Shares .............................................................................................................. 7       7.2   Consideration ...................................................................................................................... 7       7.3   Substantial Risk of Forfeiture............................................................................................... 7       7.4   Dividends, Voting and Other Ownership Rights ................................................................... 7       7.5   Restrictions on Transfer ...................................................................................................... 7       7.6   Performance-Based Restricted Shares ................................................................................ 8       7.7   Dividends ............................................................................................................................ 8       7.8   Award Agreement ............................................................................................................... 8  8.   Deferred Shares. ........................................................................................................................... 8       8.1   Deferred Compensation ...................................................................................................... 8       8.2   Consideration ...................................................................................................................... 8       8.3   Deferral Period .................................................................................................................... 8       8.4   Dividend Equivalents and Other Ownership Rights .............................................................. 8       8.5   Performance Objectives ...................................................................................................... 8       8.6   Award Agreement. .............................................................................................................. 8  9.   Performance Shares and Performance Units. ................................................................................ 9       9.1   Number of Performance Shares or Unit ............................................................................... 9       9.2   Performance Period. ........................................................................................................... 9       9.3   Performance Objectives. ..................................................................................................... 9       9.4   Threshold Performance Objectives ...................................................................................... 9       9.5   Payment of Performance Shares and Units ......................................................................... 9       9.6   Maximum Payment. ............................................................................................................ 9       9.7   Dividend Equivalents ........................................................................................................... 9       9.8   Adjustment of Performance Objectives. ............................................................................... 9       9.9   Award Agreement ............................................................................................................... 9  10.  Transferability. .............................................................................................................................. 9       10.1  Transfer Restrictions. ........................................................................................................ 10       10.2  Limited Transfer Rights ..................................................................................................... 10       10.3  Restrictions on Transfer .................................................................................................... 10  11.  Adjustments ................................................................................................................................ 10  12.  Fractional Shares ........................................................................................................................ 10  13.  Withholding Taxes....................................................................................................................... 10  14.  Certain Terminations of Employment, Hardship and Approved Leaves of Absence ...................... 11  15.  Foreign Participants. ................................................................................................................... 11  16.  Amendments and Other Matters. ................................................................................................. 11       16.1  Plan Amendments ............................................................................................................. 11       16.2  Award Deferrals ................................................................................................................ 11       16.3  Conditional Awards. .......................................................................................................... 12       16.4  Repricing Prohibited .......................................................................................................... 12       16.5  No Employment Right. ...................................................................................................... 12       16.6  Tax Qualification ............................................................................................................... 12  17.  Effective Date.............................................................................................................................. 12  18.  Termination ................................................................................................................................. 12  19.  Limitations Period........................................................................................................................ 12  20.  Governing Law ............................................................................................................................ 12                                                 ii  

 

                           FIRST CHOICE BANCORP                       2013 OMNIBUS STOCK INCENTIVE PLAN    1.    Purpose.  The purpose of the First Choice Bancorp 2013 Omnibus Stock Incentive Plan  (the  "Plan")  is  to  strengthen First  Choice  Bancorp (the  “Company”)  and  those  banks  and  corporations  which  are  or  hereafter  become  subsidiary  corporations  by  providing  additional  means  of  attracting  and  retaining  competent  managerial  personnel  and  by  providing  to  participating  directors,  officers,  key  employees  and  consultants  of  the  Company  and  its  subsidiaries added incentive for high levels of performance and for unusual efforts to increase the  earnings of the  Company  and  any  subsidiaries and allow  the opportunity  to  participate  in the  ownership of the Company and thereby have an interest in the success and increased value of  the  Company.   The  Plan  seeks  to  accomplish  these  purposes  and  achieve  these  results  by  providing  a  means  whereby  such  directors,  officers,  key  employees  and  consultants  may  purchase shares of the Common Stock of the Company or otherwise participate in the increased  value of the Company.     2.    Definitions.  As used in this Plan, the following terms shall be defined as set forth below:           2.1   "Award" means any Option, Stock Appreciation Right, Restricted Shares, Deferred  Shares, Performance Shares or Performance Units granted under the Plan.                 2.2   "Award Agreement" means an agreement, certificate, resolution or other form of  writing or other evidence approved by the Committee which sets forth the terms and conditions  of an Award.                 2.3   "Base Price" means the price to be used as the basis for determining the Spread  upon the exercise of a Freestanding Stock Appreciation Right.                 2.4   "Board" means the Board of Directors of the Company.                 2.5   "Code" means the Internal Revenue Code of 1986, as amended from time to time.                 2.6   "Committee" means the Company’s Compensation Committee of the Board, as  described in Section 4.                 2.7   "Company" means First Choice Bancorp, a California banking corporation, or any  successor corporation.                 2.8   "Deferral  Period" means  the  period  of  time  during  which  Deferred  Shares  are  subject to deferral limitations under Section 8.                 2.9   "Deferred Shares" means an Award pursuant to Section 8 of the right to receive  Shares at the end of a specified Deferral Period.                 2.10  "Employee" means any person, including an officer, employed by the Company or  a Subsidiary.                 2.11  "Fair Market Value" means the fair market value of the Shares as determined by  the Committee from time to time.  Unless otherwise determined by the Committee, the fair market  value of the Common Stock shall be as determined in accordance with any reasonable valuation                                          1  

 

method  selected  by  the  Committee,  including  the  valuation  methods  described  in  Treasury  Regulation Section 20.2031-2, and in accordance with Generally Accepted Accounting Principles.                 2.12  "Freestanding  Stock  Appreciation  Right" means  a  Stock  Appreciation  Right  granted pursuant to Section 6 that is not granted in tandem with an Option or similar right.                 2.13  "Grant Date" means the date specified by the Committee on which a grant of an  Award shall become effective, which shall not be earlier than the date on which the Committee  takes action with respect thereto.                 2.14  "Incentive  Stock  Option" means  any  Option  that  is  intended  to  qualify  as  an  "incentive stock option" under Code Section 422 or any successor provision.                 2.15  "Nonemployee Director" means a member of the Board who is not an Employee.                 2.16  "Nonqualified Stock Option" means an Option that is not intended to qualify as an  Incentive Stock Option.                 2.17  "Option" means any option to purchase Shares granted under Section 5.                 2.18  "Optionee" means  the  person  so  designated  in  an  agreement  evidencing  an  outstanding Option.                 2.19  "Option Price" means the purchase price payable upon the exercise of an Option.                 2.20  "Participant" means  an  Employee,  Nonemployee  Director  or  Consultant  who  is  selected by the Committee to receive benefits under this Plan, provided that only Employees shall  be eligible to receive grants of Incentive Stock Options.                 2.21  "Performance Objectives" means the performance objectives established pursuant  to  this  Plan  for  Participants  who  have  received  Awards.  Performance  Objectives  may  be  described in terms of Company-wide objectives or objectives that are related to the performance  of the individual Participant or the division, department or function within the Company in which  the Participant is employed. Performance Objectives may be measured on an absolute or relative  basis. Relative performance may be measured by a group of peer companies or by a financial  market index.  Any Performance Objectives applicable to a Qualified Performance-Based Award  shall  be  limited  to  specified  levels  of  or  increases  in  the  Company's  return  on  equity,  diluted  earnings per share, total earnings, earnings growth, return on capital, return on assets, earnings  before interest and taxes, sales, sales growth, gross margin, return on investment, increase in  the fair market value of the Shares, share price (including but not limited to, growth measures and  total stockholder return), operating profit, net earnings, cash flow (including, but not limited to,  operating cash flow and free cash flow), cash flow return on investment (which equals net cash  flow divided by total capital), financial return ratios, total return to stockholders, market share,  earnings measures/ratios, economic value added (EVA), balance sheet measurements such as  loan or deposit growth, internal rate of return, increase in net present value or expense targets,  "Employer of Choice" or similar survey results, client satisfaction surveys and productivity. Except  in the case of a Qualified Performance-Based Award, if the Committee determines that a change  in the business, operations, corporate structure or capital structure of the Company, or the manner  in  which  it  conducts  its  business,  or  other  events  or  circumstances  render  the  Performance  Objectives unsuitable, the Committee may modify such Performance Objectives or the related                                          2  

 

minimum  acceptable  level  of  achievement,  in  whole  or  in  part,  as  the  Committee  deems  appropriate and equitable.                 2.22  "Performance Period" means a period of time established under Section 9 within  which the Performance Objectives relating to a Performance Share, Performance Unit, Deferred  Shares or Restricted Shares are to be achieved.                 2.23  "Performance Share" means a bookkeeping entry that records the equivalent of  one Share awarded pursuant to Section 9.                 2.24  "Performance Unit" means a bookkeeping entry that records a unit equivalent to  $1.00 awarded pursuant to Section 9.                 2.25  "Qualified Performance-Based Award" means an Award or portion of an Award  that is intended to satisfy the requirements for "qualified performance-based compensation" under  Code Section 162(m). The Committee shall designate any Qualified Performance-Based Award  as such at the time of grant.                2.26  "Restricted Shares" mean Shares granted under Section 7 subject to a substantial  risk of forfeiture.                 2.27  "Shares" means shares of the Common Stock of the Company, no par value, or  any security into which Shares may be converted by reason of any transaction or event of the  type referred to in Section 11.                 2.28  "Spread" means,  in  the  case  of  a  Freestanding  Stock  Appreciation  Right,  the  amount by which the Fair Market Value on the date when any such right is exercised exceeds the  Base  Price  specified  in  such  right  or,  in the  case  of a  Tandem  Stock  Appreciation  Right,  the  amount by which the Fair Market Value on the date when any such right is exercised exceeds the  Option Price specified in the related Option.                 2.29  "Stock  Appreciation  Right" means  a right  granted  under  Section  6,  including  a  Freestanding Stock Appreciation Right or a Tandem Stock Appreciation Right.                 2.30  "Subsidiary" means a corporation or other entity in which the Company has a direct  or indirect ownership or other equity interest, provided that for purposes of determining whether  any  person  may  be  a  Participant  for  purposes  of  any  grant  of  Incentive  Stock  Options.   "Subsidiary" means any corporation (within the meaning of the Code) in which the Company owns  or  controls  directly  or indirectly  more  than  50  percent  of  the  total  combined  voting  power  represented by all classes of stock issued by such corporation at the time of such grant.                 2.31  "Tandem  Stock  Appreciation  Right" means  a  Stock  Appreciation  Right  granted  pursuant to Section 6 that is granted in tandem with an Option or any similar right granted under  any other plan of the Company.           3.    Shares Available Under the Plan.              3.1   Reserved Shares.  Subject to adjustment as provided in Section 11, the maximum  number of Shares that may be (i) issued or transferred upon the exercise of Options or Stock  Appreciation  Rights,  (ii)  awarded  as  Restricted  Shares  and  released  from  substantial  risk  of  forfeiture, (iii) issued or transferred in payment of Deferred Shares or Performance Shares, or (iv)                                          3  

 

issued or transferred in payment of dividend equivalents paid with respect to Awards, shall not in  the  aggregate  exceed 1,390,620 shares.   Such  Shares  may  be  Shares  of  original  issuance,  Shares held in Treasury, or Shares that have been reacquired by the Company.                 3.2   Reduction Ratio.  For purposes of Section 3.1, each Share issued or transferred  pursuant to an Award other than a Stock Option shall reduce the number of Shares available for  issuance under the Plan by 1 Share.                 3.3   ISO Maximum.  In no event shall the number of Shares issued upon the exercise  of Incentive Stock Options exceed 300,000 subject to adjustment as provided in Section 11.                 3.4   Maximum Calendar Year Award.  No Participant may receive Awards representing  more than 100,000 Shares in any one calendar year, subject to adjustment as provided in Section  11.  In addition, the maximum number of Performance Units that may be granted to a Participant  in any one calendar year is 100,000.           4.    Plan Administration.                    4.1   Board  Committee  Administration.  This  Plan  shall  be  administered  by  a  Compensation Committee appointed by the Board from among its board members, provided that  the full Board may at any time act as the Committee. The interpretation and construction by the  Committee of any provision of this Plan or of any Award Agreement and any determination by the  Committee pursuant to any provision of this Plan or any such agreement, notification or document,  shall be final and conclusive. No member of the Committee shall be liable to any person for any  such action taken or determination made in good faith.                 4.2   Committee Delegation.  The Committee may delegate to one or more officers of  the Company the authority to grant Awards to Participants who are not directors or executive  officers of the Company, provided that the Committee shall have fixed the total number of shares  of Stock subject to such grants.            5.    Options.  The Committee may from time to time authorize grants to Participants of options  to  purchase  Shares  upon  such  terms  and  conditions  as  the  Committee  may  determine  in  accordance with the following provisions:          5.1   Number of Shares.  Each grant  shall  specify  the  number  of Shares  to  which  it  pertains.                 5.2   Option Price.  Each grant shall specify an Option Price per Share, which shall be  equal to or greater than the Fair Market Value per Share on the Grant Date.                 5.3   Consideration.  Each grant shall specify the form of consideration to be paid in  satisfaction of the Option Price and the manner of payment of such consideration, which may  include  (i)  cash  in  the  form  of  currency  or  check  or  other  cash  equivalent  acceptable  to  the  Company, (ii) nonforfeitable, unrestricted Shares owned by the Optionee which have a value at  the time of exercise that is equal to the Option Price, (iii) any other legal consideration that the  Committee  may  deem  appropriate,  including  without  limitation  any  form  of  consideration  authorized under Section 5.4, on such basis as the Committee may determine in accordance with  this Plan, or (iv) any combination of the foregoing.                                                   4  

 

      5.4   Payment of Option Price in Shares.  On or after the Grant Date of any Option other  than an Incentive Stock Option, the Committee may determine that payment of the Option Price  may also be made in whole or in part in the form of Restricted Shares or other Shares that are  subject  to  risk  of  forfeiture  or  restrictions  on  transfer.  Unless  otherwise  determined  by  the  Committee, whenever any Option Price is paid in whole or in part by means of any of the forms  of  consideration  specified  in  this  Section  5.4,  the  Shares  received  by  the  Optionee  upon  the  exercise of the Options shall be subject to the same risks of forfeiture or restrictions on transfer  as those that applied to the consideration surrendered by the Optionee, provided that such risks  of forfeiture and restrictions on transfer shall apply only to the same number of Shares received  by the Optionee as applied to the forfeitable or restricted Shares surrendered by the Optionee.                 5.5   Cashless  Exercise.   To  the  extent  permitted  by  applicable  law,  any  grant  may  provide for deferred payment of the Option Price from the proceeds of sale through a bank or  broker on the date of exercise of some or all of the Shares to which the exercise relates.                  In addition, all or a portion of a stock option may be exercised, with prior written approval  of the Committee, with Shares of the Company which when added to the cash payment, if any,  has a Fair Market Value equal to the full amount of the exercise price of the Option, or part thereof,  then being exercised.  If all or part of payment is made in Shares as heretofore provided, such  payment shall be deemed to have been made only upon receipt by the Company of all required  share certificates, all stock powers and other required transfer documents necessary to transfer  the Shares to the Company.  Payment by an Optionee as provided herein shall be made in full  concurrently with the Optionee's notification to the Company of his intention to exercise all or part  of an Option.                  In  addition,  the  Optionee  shall  have  the  right  upon  the  exercise  of  an  Option  by  surrendering for cancellation a portion of an Option to the Company for the number of shares (the  "Surrendered Shares") specified in the holder's notice of exercise, by delivery to the Company  with such notice written instructions from such holder to apply the Appreciated Value (as defined  below) of the Surrendered Shares to payment of the exercise price for shares subject to the Option  that are being acquired upon such exercise.  The term "Appreciated Value" for each share subject  to the Option shall mean the excess of the Fair Market Value thereof over the exercise price then  in effect.  Payment by an Optionee as provided herein shall be made in full concurrently with the  Optionee's notification to the Company of his intention to exercise all or part of the Option.  If all  or part of payment is made in Shares of the Company as heretofore provided, such payment shall  be  deemed  to  have  been  made  only  upon  receipt  by  the  Company  of  all  required  share  certificates, and all stock powers and other required transfer documents necessary to transfer the  Shares of the Company.                5.6   Performance-Based Options.  Any grant of an Option may specify Performance  Objectives that must be achieved as a condition to exercise of the Option.                 5.7   Vesting.  Each Option grant may specify a period of continuous employment of the  Optionee by the Company or any Subsidiary (or, in the case of a Nonemployee Director, service  on  the  Board)  that  is  necessary  before  the  Options  or  installments  thereof  shall  become  exercisable, and any grant will provide for the earlier exercise of such rights in the event of a  change in control of the Company or other similar transaction or event.                 5.8   ISO Dollar Limitation.  Options granted under this Plan may be Incentive Stock  Options,  Nonqualified  Stock  Options  or  a  combination  of  the  foregoing,  provided  that  only  Nonqualified Stock Options may be granted to Nonemployee Directors. Each grant shall specify                                          5  

 

whether (or the extent to which) the Option is an Incentive Stock Option or a Nonqualified Stock  Option. Notwithstanding any such designation, to the extent that the aggregate Fair Market Value  of  the  Shares  with  respect  to  which  Options  designated  as  Incentive  Stock  Options  are  exercisable  for the  first time by an Optionee  during any  calendar  year  (under all  plans  of  the  Company) exceeds $100,000, such Options shall be treated as Nonqualified Stock Options.                 5.9   Exercise Period.  No Option granted under this Plan may be exercised more than  ten years from the Grant Date.                 5.10  Award  Agreement.  Each  grant  shall  be  evidenced  by  an  Award  Agreement  containing such terms and provisions as the Committee may determine consistent with this Plan.           6.    Stock Appreciation Rights.  The Committee may also authorize grants to Participants of  Stock Appreciation Rights. A Stock Appreciation Right is the right of the Participant to receive  from  the  Company  an  amount,  which  shall  be  determined  by  the  Committee  and  shall  be  expressed as a percentage (not exceeding 100 percent) of the Spread at the time of the exercise  of such right. Any grant of Stock Appreciation Rights under this Plan shall be upon such terms  and conditions as the Committee may determine in accordance with the following provisions:           6.1   Payment in Cash or Shares.  Any grant may specify that the amount payable upon  the exercise of a Stock Appreciation Right may be paid by the Company in cash, Shares or any  combination thereof and may (i) either grant to the Participant or reserve to the Committee the  right to elect among those alternatives or (ii) preclude the right of the Participant to receive and  the Company to issue Shares or other equity securities in lieu of cash.                 6.2   Maximum SAR Payment.  Any grant may specify that the amount payable upon  the  exercise  of  a  Stock  Appreciation  Right  shall  not  exceed  a  maximum  specified  by  the  Committee on the Grant Date.                 6.3   Exercise Period.  Any grant may specify (i) a waiting period or periods before Stock  Appreciation Rights shall become exercisable and (ii) permissible dates or periods on or during  which Stock Appreciation Rights shall be exercisable.                 6.4   Change in Control.  Any grant may specify that a Stock Appreciation Right may be  exercised only in the event of a change in control of the Company or other similar transaction or  event.                 6.5   Dividend Equivalents.  On or after the Grant Date of any Stock Appreciation Rights,  the Committee may provide for the payment to the Participant of dividend equivalents thereon in  cash or Shares on a current, deferred or contingent basis.                 6.6   Award Agreement.  Each grant shall be evidenced by an Award Agreement which  shall describe the subject Stock Appreciation Rights, identify any related Options, state that the  Stock Appreciation Rights are subject to all of the terms and conditions of this Plan and contain  such other terms and provisions as the Committee may determine consistent with this Plan.                 6.7   Tandem Stock Appreciation Rights.  Each grant of a Tandem Stock Appreciation  Right shall provide that such Tandem Stock Appreciation Right may be exercised only (i) at a time  when the related Option (or any similar right granted under any other plan of the Company) is  also exercisable and the Spread is positive; and (ii) by surrender of the related Option (or such  other right) for cancellation.                                           6  

 

              6.8   Exercise  Period.   No  Stock  Appreciation  Right granted  under  this Plan  may be  exercised more than ten years from the Grant Date.                 6.9   Freestanding  Stock  Appreciation  Rights.   Regarding  Freestanding  Stock  Appreciation Rights only:                       (i)   Each  grant  shall  specify  in  respect  of  each  Freestanding  Stock    Appreciation Right a Base Price per Share, which shall be equal to or greater than the Fair Market  Value on the Grant Date;                             (ii)  Successive  grants  may  be  made  to  the  same  Participant  regardless  of  whether  any  Freestanding  Stock  Appreciation  Rights  previously  granted  to  such  Participant  remain unexercised; and                             (iii) Each grant shall specify the period or periods of continuous employment of  the Participant by the Company or any Subsidiary that are necessary before the Freestanding  Stock Appreciation Rights or installments thereof shall become exercisable, and any grant may  provide for the earlier exercise of such rights in the event of a change in control of the Company  or other similar transaction or event.                 7.    Restricted Shares.  The Committee may also authorize grants to Participants of Restricted  Shares upon such terms and conditions as the Committee may determine in accordance with the  following provisions:           7.1   Transfer  of  Shares.   Each  grant  shall  constitute  an  immediate  transfer  of  the  ownership of Shares to the Participant in consideration of the performance of services, subject to  the substantial risk of forfeiture and restrictions on transfer hereinafter referred to.                 7.2   Consideration.  Each grant may be made without additional consideration from the  Participant or in consideration of a payment by the Participant that is less than the Fair Market  Value on the Grant Date.                 7.3   Substantial Risk of Forfeiture.  Each grant shall provide that the Restricted Shares  covered thereby shall be subject to a "substantial risk of forfeiture" within the meaning of Code  Section 83 for a period to be determined by the Committee on the Grant Date, and any grant or  sale may provide for the earlier termination of such risk of forfeiture in the event of a change in  control of the Company or other similar transaction or event.                 7.4   Dividends, Voting and Other Ownership Rights.  Unless otherwise determined by  the Committee, an award of Restricted Shares shall entitle the Participant to dividend, voting and  other ownership rights during the period for which such substantial risk of forfeiture is to continue.                 7.5   Restrictions on Transfer.  Each grant shall provide that, during the period for which  such substantial risk of forfeiture is to continue, the transferability of the Restricted Shares shall  be prohibited or restricted in the manner and to the extent prescribed by the Committee on the  Grant Date. Such restrictions may include, without limitation, rights of repurchase or first refusal  in the Company or provisions subjecting the Restricted Shares to a continuing substantial risk of  forfeiture in the hands of any transferee.                                                   7  

 

      7.6   Performance-Based Restricted Shares.  Any grant or the vesting thereof may be  further conditioned upon the attainment of Performance Objectives established by the Committee  in  accordance  with  the applicable provisions of Section 9  regarding  Performance  Shares  and  Performance Units.                 7.7   Dividends.  Any grant may require that any or all dividends or other distributions  paid on the Restricted Shares during the period of such restrictions be automatically sequestered  and reinvested on an immediate or deferred basis in additional Shares, which may be subject to  the same restrictions as the underlying Award or such other restrictions as the Committee may  determine.                 7.8   Award  Agreements.  Each  grant  shall  be  evidenced  by  an  Award  Agreement  containing such terms and provisions as the Committee may determine consistent with this Plan.  Unless  otherwise  directed  by  the  Committee,  all  certificates  representing  Restricted  Shares,  together with a stock power that shall be endorsed in blank by the Participant with respect to such  Shares, shall be held in custody by the Company until all restrictions thereon lapse.           8.    Deferred Shares.  The Committee may authorize grants of Deferred Shares to Participants  upon  such  terms  and  conditions  as  the  Committee  may  determine  in  accordance  with  the  following provisions:           8.1   Deferred  Compensation.   Each  grant  shall  constitute  the  agreement  by  the  Company  to  issue  or  transfer  Shares  to  the  Participant  in  the  future  in  consideration  of  the  performance of services, subject to the fulfillment during the Deferral Period of such conditions  as the Committee may specify.                 8.2   Consideration.  Each grant may be made without additional consideration from the  Participant or in consideration of a payment by the Participant that is less than the Fair Market  Value on the Grant Date.                 8.3   Deferral  Period.   Each  grant  shall  provide  that  the  Deferred  Shares  covered  thereby shall be subject to a Deferral Period, which shall be fixed by the Committee on the Grant  Date, and any grant or sale may provide for the earlier termination of such period in the event of  a change in control of the Company or other similar transaction or event.                 8.4   Dividend Equivalents and Other Ownership Rights.  During  the  Deferral Period,  the Participant shall not have any right to transfer any rights under the subject Award, shall not  have any rights of ownership in the Deferred Shares and shall not have any right to vote such  shares, but the Committee may on or after the Grant Date authorize the payment of dividend  equivalents on  such  shares  in  cash  or additional  Shares on a  current,  deferred or  contingent  basis.                 8.5   Performance  Objectives.   Any  grant  or  the  vesting  thereof  may  be  further  conditioned  upon  the  attainment  of  Performance  Objectives  established  by  the  Committee  in  accordance  with  the  applicable  provisions  of  Section  9 regarding  Performance  Shares  and  Performance Units.                 8.6   Award  Agreement.  Each  grant  shall  be  evidenced  by  an  Award  Agreement  containing such terms and provisions as the Committee may determine consistent with this Plan.                                                   8  

 

9.    Performance Shares and Performance Units.  The Committee may also authorize grants  of Performance Shares and Performance Units, which shall become payable to the Participant  upon the achievement of specified Performance Objectives, upon such terms and conditions as  the Committee may determine in accordance with the following provisions:                 9.1   Number of Performance Shares or Units.  Each grant shall specify the number of  Performance  Shares  or  Performance  Units  to  which  it  pertains,  which  may  be  subject  to  adjustment to reflect changes in compensation or other factors.                 9.2   Performance Period.  The Performance Period with respect to each Performance  Share or Performance  Unit  shall  commence on  the  Grant  Date  and  may be  subject  to earlier  termination in the event of a change in control of the Company or other similar transaction or  event.                 9.3   Performance Objectives.  Each grant shall specify the Performance Objectives that  are to be achieved by the Participant.                 9.4   Threshold  Performance  Objectives.  Each  grant  may  specify  in  respect  of  the  specified Performance Objectives a minimum acceptable level of achievement below which no  payment will be made and may set forth a formula for determining the amount of any payment to  be  made  if  performance  is  at  or  above  such  minimum  acceptable level  but  falls  short  of  the  maximum achievement of the specified Performance Objectives.                 9.5   Payment of Performance Shares and Units.  Each grant shall specify the time and  manner of payment of Performance Shares or Performance Units that shall have been earned,  and any grant may specify that any such amount may be paid by the Company in cash, Shares  or any combination thereof and may either grant to the Participant or reserve to the Committee  the right to elect among those alternatives.                 9.6   Maximum  Payment.  Any  grant  of  Performance  Shares  may  specify  that  the  amount issuable with respect thereto may not exceed a maximum specified by the Committee on  the  Grant  Date. Any grant  of Performance  Units may  specify that  the  amount  payable, or  the  number  of  Shares  issued,  with  respect  thereto  may  not  exceed  maximums  specified  by  the  Committee on the Grant Date.                 9.7   Dividend  Equivalents.   Any  grant  of  Performance  Shares  may  provide  for  the  payment  to  the  Participant of  dividend  equivalents  thereon  in  cash  or  additional  Shares on a  current, deferred or contingent basis.                 9.8   Adjustment of Performance Objectives.  If provided in the terms of the grant, the  Committee  may  adjust  Performance  Objectives  and  the  related  minimum  acceptable  level  of  achievement if, in the sole judgment of the Committee, events or transactions have occurred after  the Grant Date that are unrelated to the performance of the Participant and result in distortion of  the Performance Objectives or the related minimum acceptable level of achievement.                 9.9   Award Agreement.  Each grant shall be evidenced by an Award Agreement which  shall state that the Performance Shares or Performance Units are subject to all of the terms and  conditions of this Plan and such other terms and provisions as the Committee may determine  consistent with this Plan.           10.   Transferability.                                              9  

 

              10.1  Transfer Restrictions.  Except as provided in Section 10.2, no Award granted under  this  Plan  shall  be  transferable  by  a  Participant  other  than  by  will  or  the  laws  of  descent  and  distribution, and Options and Stock Appreciation Rights shall be exercisable during a Participant's  lifetime only by the Participant or, in the event of the Participant's legal incapacity, by his guardian  or legal representative acting in a fiduciary capacity on behalf of the Participant under state law.  Any attempt to transfer an Award in violation of this Plan shall render such Award null and void.                 10.2  Limited  Transfer  Rights.  The  Committee  may  expressly  provide  in  an  Award  agreement (or an amendment to an Award agreement) that a Participant may transfer such Award  (other than an Incentive Stock Option), in whole or in part, to a spouse or lineal descendant (a  "Family Member"), a trust for the exclusive benefit of Family Members, a partnership or other  entity in which all the beneficial owners are Family Members, or any other entity affiliated with the  Participant that may be approved by the Committee. Subsequent transfers of Awards shall be  prohibited except in accordance with this Section 10.2. All terms and conditions of the Award,  including provisions relating to the termination of the Participant's employment or service with the  Company or a Subsidiary, shall continue to apply following a transfer made in accordance with  this Section 10.2.                 10.3  Restrictions on Transfer.  Any Award made under this Plan may provide that all or  any part of the Shares that are (i) to be issued or transferred by the Company upon the exercise  of Options or Stock Appreciation Rights, upon the termination of the Deferral Period applicable to  Deferred Shares or upon payment under any grant of Performance Shares or Performance Units,  or (ii) no longer subject to the substantial risk of forfeiture and restrictions on transfer referred to  in Section 7, shall be subject to further restrictions upon transfer.           11.   Adjustments.  The Committee may make or provide for such adjustments in the (a) number  of  Shares  covered  by  outstanding  Options,  Stock  Appreciation  Rights,  Deferred  Shares,  Restricted Shares and Performance Shares granted hereunder, (b) prices per share applicable  to such Options and Stock Appreciation Rights, and (c) kind of shares covered thereby (including  shares of another issuer), as the Committee in its sole discretion may in good faith determine to  be equitably required in order to prevent dilution or enlargement of the rights of Participants that  otherwise  would  result  from  (x)  any  stock  dividend,  stock  split,  combination  or  exchange  of  Shares, recapitalization or other change in the capital structure of the Company, (y) any merger,  consolidation, spin-off, spin-out, split-off, split-up, reorganization, partial or complete liquidation  or other distribution of assets (other than a normal cash dividend), issuance of rights or warrants  to purchase securities or (z) any other corporate transaction or event having an effect similar to  any of the foregoing. Moreover, in the event of any such transaction or event, the Committee may  provide  in  substitution  for  any  or  all  outstanding  Awards  under  this  Plan  such  alternative  consideration as it may in good faith determine to be equitable under the circumstances and may  require in connection therewith the surrender of all Awards so replaced. The Committee may also  make or  provide for  such adjustments  in  each  of  the  limitations  specified  in  Section 3 as the  Committee in its sole discretion may in good faith determine to be appropriate in order to reflect  any transaction or event described in this Section 11.     12.   Fractional Shares.   The  Company  shall  not  be  required  to  issue  any  fractional Shares  pursuant  to  this  Plan.  The  Committee  may  provide  for  the  elimination  of  fractions  or  for  the  settlement thereof in cash.     13.   Withholding Taxes.  To the extent that the Company is required to withhold federal, state,  local or foreign taxes in connection with any payment made or benefit realized by a Participant or                                          10  

 

other  person  under  this  Plan,  it  shall  be  a  condition  to  the  receipt  of  such  payment  or  the  realization  of  such  benefit  that  the  Participant  or  such  other  person  make  arrangements  satisfactory to the Company for payment of all such taxes required to be withheld. At the discretion  of the Committee, such arrangements may include relinquishment of a portion of such benefit.     14.   Certain  Terminations  of  Employment,  Hardship  and  Approved  Leaves  of  Absence.   Notwithstanding any other provision of this Plan to the contrary, in the event of termination of  employment by reason of death, disability, normal retirement, early retirement with the consent of  the Company or leave of absence approved by the Company, or in the event of hardship or other  special circumstances, of a Participant who holds an Option or Stock Appreciation Right that is  not immediately and fully exercisable, any Restricted Shares as to which the substantial risk of  forfeiture or the prohibition or restriction on transfer has not lapsed, any Deferred Shares as to  which the Deferral Period is not complete, any Performance Shares or Performance Units that  have not been fully earned, or any Shares that are subject to any transfer restriction pursuant to  Section 10.3, the Committee may in its sole discretion take any action that it deems to be equitable  under the circumstances or in the best interests of the Company, including, without limitation,  waiving or modifying any limitation or requirement with respect to any Award under this Plan.     15.   Foreign Participants.  In order to facilitate the making of any grant or combination of grants  under this Plan, the Committee may provide for such special terms for Awards to Participants who  are  foreign nationals,  or  who  are  employed  by  or  perform  services  for  the  Company  or  any  Subsidiary outside of the United States of America, as the Committee may consider necessary or  appropriate  to  accommodate  differences  in  local  law,  tax  policy  or  custom.  Moreover, the  Committee  may  approve  such  supplements  to,  or  amendments,  restatements  or  alternative  versions of,  this  Plan  as  it  may  consider  necessary  or  appropriate  for  such  purposes  without  thereby affecting the terms of this Plan as in effect for any other purpose, provided that no such  supplements, amendments, restatements or alternative versions shall include any provisions that  are inconsistent with the terms of this Plan, as then in effect, unless this Plan could have been  amended  to  eliminate  such  inconsistency  without  further  approval  by  the  stockholders  of  the  Company.     16.   Amendments and Other Matters.                    16.1  Plan Amendments.  This Plan may be amended from time to time by the Board,  but no such amendment shall increase any of the limitations specified in Section 3, other than to  reflect an adjustment made in accordance with Section 11, without the further approval of the  stockholders of the Company. The Board may condition any amendment on the approval of the  stockholders of the Company if such approval is necessary or deemed advisable with respect to  the applicable listing or other requirements of a national securities exchange or other applicable  laws, policies or regulations.                 16.2  Award Deferrals.   The  Committee  may permit Participants to elect  to defer the  issuance of Shares or the settlement of Awards in cash under the Plan pursuant to such rules,  procedures or programs as it may establish for purposes of this Plan. In the case of an award of  Restricted  Shares,  the  deferral  may  be  effected  by  the Participant's  agreement  to  forego  or  exchange his or her award of Restricted Shares and receive an award of Deferred Shares. The  Committee also may provide that deferred settlements include the payment or crediting of interest  on the deferral amounts, or the payment or crediting of dividend equivalents where the deferral  amounts are denominated in Shares.                                                   11  

 

      16.3  Conditional  Awards.  The  Committee  may  condition  the  grant  of  any  award  or  combination of Awards under the Plan on the surrender or deferral by the Participant of his or her  right to receive a cash bonus or other compensation otherwise payable by the Company or any  Subsidiary to the Participant.                 16.4  Repricing Prohibited.  The Committee shall not reprice any outstanding Option,  directly  or  indirectly,  without  the  approval  of  the  stockholders  of  the  Company,  provided  that  nothing herein shall prevent the Committee from taking any action provided for in Section 11.                 16.5  No Employment Right.  This Plan shall not confer upon any Participant any right  with respect to continuance of employment or other service with the Company or any Subsidiary  and  shall  not  interfere  in  any  way  with  any  right  that  the  Company  or  any  Subsidiary  would  otherwise have to terminate any Participant's employment or other service at any time.                 16.6  Tax Qualification.  To the extent that any provision of this Plan would prevent any  Option that was intended to qualify under particular provisions of the Code from so qualifying,  such provision of this Plan shall be null and void with respect to such Option, provided that such  provision shall remain in effect with respect to other Options, and there shall be no further effect  on any provision of this Plan.           17.   Effective Date.  This Plan shall become effective on May, 9 2013 following its approval by  the stockholders of the Company.     18.   Termination.  This Plan shall terminate on the tenth anniversary of the date upon which it  is approved by the stockholders of the Company, and no Award shall be granted after that date.     19.   Limitations Period.  Any person who believes he or she is being denied any benefit or right  under the Plan may file a written claim with the Committee. Any claim must be delivered to the  Committee within forty-five (45) days of the specific event giving rise to the claim. Untimely claims  will not be processed and shall be deemed denied. The Committee, or its designated agent, will  notify the Participant of its decision in writing as soon as administratively practicable. Claims not  responded to by the Committee in writing within ninety (90) days of the date the written claim is  delivered  to  the  Committee  shall  be  deemed  denied.  The  Committee's  decision  is  final  and  conclusive and binding on all persons. No lawsuit relating to the Plan may be filed before a written  claim is filed with the Committee and is denied or deemed denied and any lawsuit must be filed  within one year of such denial or deemed denial or be forever barred.     20.   Governing Law.  The validity, construction and effect of this Plan and any Award hereunder  will be determined in accordance with California law.                                           12  

 

                   SECRETARY'S CERTIFICATE OF ADOPTION            I, the undersigned, do hereby certify:                1.    That I am the duly elected and acting Secretary of First Choice Bancorp; and                2.    That the foregoing First Choice Bancorp 2013 Omnibus Stock Incentive Plan was  duly adopted by the Board of Directors of First Choice Bancorp as the Omnibus Stock Incentive  Plan for the Company at a meeting duly called as required by law and convened on the 26th day  of July, 2018, subject to approval by the Company’s stockholders, and subject to any necessary  amendment or approval from any of the Company’s regulatory agencies.                  IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the seal of  the Company this 26th day of July, 2018.                                                    /s/ Phillip Thong______________________                                            Phillip Thong, Secretary                                [SEAL]                                              13Exhibit

EXHIBIT 10.4
 
December 30, 2017

Pat Wadors

Dear Pat:

This letter agreement (the “Agreement”) is entered into between you and ServiceNow, Inc. (the “Company”) and is effective as of the date set forth above (the “Effective Date”). The purpose of this Agreement is to confirm the current terms and conditions of your employment with the Company.  

		
	1.
	Position. You will continue to serve as the Company’s Chief Talent Officer reporting to the Company’s Chief Executive Officer (the “CEO”).  You will have all of the duties, responsibilities and authority commensurate with the position.  Your employment with the Company commenced on September 11, 2017 (your “Start Date”).  Your office will be at the Company’s headquarters, currently located in Santa Clara, CA.  You will be expected to devote your full working time and attention to the business of the Company.

		
	2.
	Term. Subject to the terms of this Agreement, this Agreement will remain in effect for a period commencing on the Start Date and continuing until termination of your employment as set forth herein (the “Employment Term”).  

		
	3.
	Cash Compensation. 

		
	a.
	Base Salary. Your current annual base salary (the “Base Salary”) as of the Effective Date will be Three Hundred Twenty-Five Thousand Dollars ($325,000), less required deductions and withholdings, payable in accordance with the Company’s normal payroll practices.  Your Base Salary will be subject to adjustment by the Leadership Development and Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”). Your Base Salary will be pro-rated for any partial years of employment during your Employment Term.

		
	b.
	Sign-On Bonus.  In the first payroll period following your Start Date, you received a one-time bonus payment of One Million Dollars ($1,000,000) (the “Sign-on Bonus”), subject to clawback or repayment pursuant to Section 6 of this Agreement.  

		
	c.
	Target Bonus. During the Employment Term, you will be eligible to participate in our executive corporate bonus program. Your current annual bonus target is fifty-four percent (54%) of your Base Salary, which equals One Hundred Seventy-Five Thousand Dollars ($175,000) for the applicable fiscal year (your “Target Bonus”).  Whether you receive the Target Bonus, and the amount of any actual bonus amount awarded (your “Actual Bonus”), will be determined by the Compensation Committee in its sole discretion based in all cases upon the achievement of both Company and individual performance objectives as established by the Compensation Committee.  To earn any Actual Bonus, you must be employed by the Company on the last day of the period to which such bonus relates and at the time bonuses are paid, except as otherwise provided herein. Your bonus participation will be subject to all the terms, conditions and restrictions of the applicable Company bonus plan, as amended from time to time. Your Actual Bonus for fiscal year 2017 will be pro rated based upon the number of days you are employed within each quarter during fiscal year 2017. The Actual Bonus shall be subject to required deductions and withholdings.

		
	4.
	Benefits, Vacation & Expenses. 

		
	a.
	You will be entitled to participate in all employee retirement, welfare, insurance, benefit and vacation programs of the Company as are in effect from time to time and in which other senior executives of the Company are eligible to participate, on the same terms as such other senior executives, pursuant to the governing plan documents.

		
	b.
	The Company will, in accordance with applicable Company policies and guidelines, reimburse you for all reasonable and necessary expenses incurred by you in connection with your performance of services on behalf of the Company.

		
	5.
	Equity Awards. 

		
	a.
	Prior Equity Awards. The Company has previously granted you equity awards under the Company’s 2012 Equity Incentive Plan (the “Equity Plan”).  Such awards will continue to be subject to their existing terms and any additional terms set forth in this Agreement.  

		
	i.
	New-Hire RSU. On September 17, 2017 (the “Grant Date”), you were granted a restricted stock unit award to acquire 77,417 shares of the Company’s common stock (the “New- Hire RSU”) under the Equity Plan (the “Equity Plan”). The New-Hire RSU will vest in equal quarterly installments over the twelve (12) quarters commencing August 17, 2017 (e.g., the first quarter of vesting shall occur on November 17, 2017); provided that, subject to Section 8 below, vesting will depend on your continued employment as Chief Talent Officer of the Company on the applicable time-based vesting dates, and remains subject to the terms and conditions of the Equity Plan and the restricted stock unit award agreement governing the New Hire RSU, and this Agreement.  The New-Hire RSU is subject to clawback or repayment pursuant to Section 6 of this Agreement.

		
	ii.
	Sign-On RSU. On the Grant Date, you were granted a restricted stock unit award to acquire such 17,204 shares of the Company’s common stock (the “Sign-On RSU”) under the Equity Plan. The Sign-On RSU will vest in full on August 17, 2018; provided that, subject to Section 8 below, vesting will depend on your continued employment as Chief Talent Officer of the Company on the applicable time-based vesting date, and remains subject to the terms and conditions of the Equity Plan, the restricted stock unit award agreement governing the Sign-On RSU, and this Agreement.  The Sign-On RSU is subject to clawback or repayment pursuant to Section 6 of this Agreement.  

		
	iii.
	Initial PRSU. On the Grant Date, you were granted a performance-based restricted stock unit award to acquire 10,323 shares of the Company’s common stock (the “Initial PRSU”) under the Equity Plan. The Initial PRSU will be subject to the same performance metrics as the 2017 performance-based restricted stock units granted to other senior executives of the Company. The Initial PRSU shall have a one-year performance period ending December 31, 2017, and time-vest as follows: one third (1/3) of the shares that satisfy the performance metrics vesting on February 17, 2018, and the remaining two thirds (2/3) of the shares that satisfy the performance metrics vesting in equal quarterly installments over eight (8) subsequent quarters, with the first such quarter of vesting occurring on May 17, 2018.  Subject to Section 8 below, vesting will depend on your continued employment as Chief Talent Officer of the Company on the applicable time-based vesting dates, and remains subject to the terms and conditions of the Equity Plan, the restricted stock unit award agreement governing the Initial PRSU, and this Agreement.  

		
	b.
	Future Equity. You may be eligible for future equity grants as determined by and pursuant to the terms established by the Compensation Committee.  The amount and performance metrics for subsequent performance-based restricted stock units will be determined by the Compensation Committee. 

		
	6.
	Clawback.  

		
	a.
	The Sign-On Bonus and a dollar amount equal to the value of the Sign-On RSU shall be subject to clawback or repayment to the Company in full based upon (respectively): (i) the dollar amount of the Sign-On Bonus, and (ii) the closing price of the Company’s common stock on the New York Stock Exchange on the vesting date for the Sign-On RSU, if you are terminated by the Company for Cause or you voluntarily resign without Good Reason, in either case before the second (2nd) anniversary of the Start Date.    

  
		
	b.
	A dollar amount equal to the value of the New-Hire RSU shall be subject to clawback or repayment by you to the Company if you are terminated by the Company for Cause or you voluntarily resign without Good Reason, in either case: (i) before the third (3rd) anniversary of the Grant Date, in an amount equal to (A) twenty-five (25%) percent, multiplied by (B) the aggregate value of the vested shares of the Company’s common stock subject to the New-Hire RSU, based upon the applicable closing prices of the Company’s common stock on the New York Stock Exchange on each applicable vesting date, and (ii) on or after the third (3rd) anniversary of the Grant Date but before the fourth (4th) anniversary of the Grant Date (the “Final Year”), in an amount equal to (A) twenty-five (25%) percent, multiplied by (B) the quotient of the number of three (3) month periods in the Final Year that you were not employed by the Company for such entire three (3) month period divided by four (4), and (C) further multiplied by the aggregate value of the vested shares of the Company’s common stock subject to the New-Hire RSU, based upon the applicable closing prices of the Company’s common stock on the New York Stock Exchange on each applicable vesting date.  

		
	c.
	In the event the clawback or repayment is triggered, you agree to repay any and all amounts due within ten (10) calendar days following the termination of your employment and you hereby authorize the Company to withhold such amount from any amounts owed to you by the Company, to the extent legally permitted.  You further agree to execute any documents and/or agreements necessary at the time the clawback or repayment is triggered to authorize the Company to withhold such amount from any amounts owed to you by the Company, to the extent legally permitted.

		
	7.
	Definitions. As used in this Agreement, the following terms have the following meanings.

		
	a.
	Cause. For purposes of this Agreement, “Cause” for the Company to terminate your employment hereunder shall mean the occurrence of any of the following events, as determined by the Company in its sole and absolute discretion:  

		
	i.
	your conviction of, or plea of nolo contendere to, any felony or any crime involving fraud, dishonesty or moral turpitude;

		
	ii.
	your commission of or participation in a fraud or act of dishonesty against the Company that results in (or would reasonably be expected to result in) material harm to the business of the Company;

		
	iii.
	your intentional, material violation of any contract or agreement between you and the Company or any statutory duty you owe to the Company or the improper disclosure of confidential information (as defined in the Company’s standard confidentiality agreement);

		
	iv.
	your conduct that constitutes gross insubordination, incompetence or habitual neglect of duties and that results in (or would reasonably be expected to result in) material harm to the business of the Company;

		
	v.
	your material failure to perform the duties of your position as Chief Talent Officer; 

		
	vi.
	your material failure to follow the Company’s material policies; or

		
	vii.
	your failure to cooperate with the Company in any investigation or formal proceeding;

provided, however, that the action or conduct described in clauses (iii), (iv), (v), (vi) and (vii) above will constitute “Cause” only if such action or conduct continues after the Company has provided you with written notice thereof and thirty (30) days to cure the same if such action or conduct is curable.

		
	b.
	Change in Control. For purposes of this Agreement, “Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events (excluding in any case transactions in which the Company or its successors issues securities to investors primarily for capital raising purposes):

		
	i.
	the acquisition by a third party of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction;

		
	ii.
	a merger, consolidation or similar transaction following which the stockholders of the Company immediately prior thereto do not own at least fifty percent (50%) of the combined outstanding voting power of the surviving entity (or that entity’s parent) in such merger, consolidation or similar transaction; 

		
	iii.
	the dissolution or liquidation of the Company; or

		
	iv.
	the sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company.

Notwithstanding any of the foregoing, any transaction or transactions effected solely for purposes of changing the Company’s domicile will not constitute a Change in Control pursuant to the foregoing definition.

		
	c.
	COBRA. For purposes of this Agreement, “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

		
	d.
	Code.  For purposes of this Agreement, “Code” means the Internal Revenue Code of 1986, as amended.

		
	e.
	Disability. For purposes of this Agreement, “Disability” shall have that meaning set forth in Section 22(e)(3) of the Code.

		
	f.
	Good Reason. For purposes of this Agreement, “Good Reason” for you to terminate your employment hereunder shall mean the occurrence of any of the following events without your consent:

		
	i.
	any material diminution in your authority, duties or responsibilities as in effect immediately prior to such reduction or a material diminution in the authority, duties or responsibilities of the person or persons to whom you are required to report;

		
	ii.
	a material reduction by the Company in your annual Base Salary or Target Bonus, as initially set forth herein or as increased thereafter; provided, however, that Good Reason shall not be deemed to have occurred in the event of a reduction in your annual Base Salary or Target Bonus that is pursuant to a salary or bonus reduction program affecting substantially all of the employees of the Company or substantially all similarly situated executive employees and that does not adversely affect you to a greater extent than other similarly situated employees;

		
	iii.
	a relocation of your business office to a location that would increase your one-way commute distance by more than thirty-five (35) miles from the current location at which you performed your duties immediately prior to the relocation, except for required travel by you on the Company’s business to an extent substantially consistent with your business travel obligations prior to the relocation; 

		
	iv.
	you not being appointed as the most senior human resources officer of the parent entity of the Company or any successor company through a merger, reorganization or other restructuring; or

		
	v.
	failure of a successor entity to assume this Agreement;

provided, however, that, any such termination by you shall only be deemed for Good Reason pursuant to this definition if: (1) you give the Company written notice of your intent to resign for Good Reason within ninety (90) days following the first occurrence of the condition(s) that you believe constitute(s) Good Reason, which notice shall describe such condition(s); (2) the Company fails to remedy such condition(s) within thirty (30) days following receipt of the written notice (the “Cure Period”); and (3) you voluntarily resign your employment within one hundred twenty (120) days following the end of the Cure Period.

		
	8.
	Effect of Termination of Employment.

		
	a.
	Termination by the Company for Cause, Death or Disability or Voluntary Resignation without Good Reason. In the event your employment is terminated by the Company for Cause, your employment terminates due to your death or Disability (which termination may be implemented by written notice by the Company if you have a Disability), or you voluntarily resign your employment other than for Good Reason, you will be paid only: (i) any earned but unpaid Base Salary; (ii) except in the case of termination for Cause or voluntary resignation without Good Reason, the amount of any Actual Bonus earned and payable from a prior bonus period which remains unpaid by the Company as of the date of the termination of employment determined in good faith in accordance with customary practice, to be paid at the same time as bonuses are paid for that period to other eligible executives; (iii) other unpaid and then-vested amounts, including any amount payable to you under the specific terms of any agreements, plans or awards, including insurance and health and benefit plans in which you participate, unless otherwise specifically provided in this Agreement; and (iv) reimbursement for all reasonable and necessary expenses incurred by you in connection with your performance of services on behalf of the Company in accordance with applicable Company policies and guidelines, in each case as of the effective date of such termination of employment (the “Accrued Compensation”). 

		
	b.
	Termination without Cause or Voluntary Resignation for Good Reason, Absent a Change in Control. During the time period from the Effective Date through the third (3rd) anniversary of the Effective Date, if the Company terminates your employment without Cause or you voluntarily resign your employment for Good Reason, in either case not in connection with a Change in Control (which is dealt with in Section 8(c) below), provided that (except with respect to the Accrued Compensation) you deliver to the Company a signed general release of claims in favor of the Company on the Company’s standard form of release (the “Release”) and satisfy all conditions to make the Release effective within sixty (60) days following your termination of employment, then, you shall be entitled to:

		
	i.
	the Accrued Compensation; and

		
	ii.
	a lump sum payment equal to six (6) months of your then-current Base Salary, less required deductions and withholdings;

		
	iii.
	a lump sum payment equal to fifty percent (50%) of your Actual Bonus for the then-current fiscal year based on: (x) actual achievement of Company performance objectives and (y) deemed 100% achievement of personal performance objectives, if any, less any quarterly payment previously paid, if any, subject to required deductions and withholdings and paid when annual bonuses are otherwise paid to active employees, but no later than March 15th of the year following the year in which the termination of employment occurs; and 

		
	iv.
	a payment of the COBRA premiums (or reimbursement to you of such premiums) for continued health coverage for you and your dependents for a period of six (6) months. 

Notwithstanding the foregoing, nothing in this Section 8 shall reduce your obligations under Section 3(b) or Section 6 of this Agreement.

		
	c.
	Termination without Cause or Resignation for Good Reason, in Connection with a Change in Control.  During the time period from the Effective Date through the third (3rd) anniversary of the Effective Date, in the event a Change in Control occurs and if the Company terminates your employment without Cause or if you voluntarily resign your employment for Good Reason, in either case within the period beginning three (3) months before, and ending twelve (12) months following, such Change in Control; and provided that (except with respect to the Accrued Compensation) you deliver to the Company the signed Release and satisfy all conditions to make the Release effective within sixty (60) days following your termination of employment, then, (in lieu of any benefits pursuant to Section 8(b)), you shall be entitled to: 

		
	i.
	the Accrued Compensation;

		
	ii.
	a lump sum payment equal to six (6) months of your then-current Base Salary, less required deductions and withholdings; 

		
	iii.
	a lump sum payment equal to fifty percent (50%) of your Target Bonus for the then-current fiscal year less any quarterly payment previously paid, if any, subject to required deductions and withholdings; 

		
	iv.
	a payment of the COBRA premiums (or reimbursement to you of such premiums) for continued health coverage for you and your dependents for a period of six (6) months; and 

		
	v.
	immediate acceleration of one hundred percent (100%) of the number of then-unvested shares subject to equity grants, unless otherwise provided (and to the extent specified) by the terms of such grants.

Notwithstanding the foregoing, nothing in this Section 8 shall reduce your obligations under Section 3(b) or Section 6 of this Agreement.

		
	d.
	Miscellaneous. For the avoidance of doubt, the benefits payable pursuant to Sections 8(b) through (c) are mutually exclusive and not cumulative.  All lump sum payments provided in this Section 8 shall be made no later than the 60th day following your termination of employment (unless explicitly provided otherwise above).  In addition, Sections 8(b) and 8(c) and the benefits conferred therein shall expire and terminate on the third (3rd) anniversary of the Effective Date.  Notwithstanding anything to the contrary in this Agreement, (i) any reference herein to a termination of your employment is intended to constitute a “separation from service” within the meaning of Section 409A of the Code, and Section 1.409A-1(h) of the regulations promulgated thereunder, and shall be so construed, and (ii) no payment will be made or become due to you during any period that you continue in a role with the Company that does not constitute a separation from service, and will be paid once you experience a “separation from service” from the Company within the meaning of Section 409A of the Code. In addition, notwithstanding anything to the contrary in this Agreement, upon a termination of your employment, you agree to resign prior to the time you deliver the Release from all positions you may hold with the Company and any of its subsidiaries or affiliated entities at such time, and no payment will be made or become due to you until you resign from all such positions, unless requested otherwise by the Board.

		
	9.
	Parachute Payments. In the event that the severance and other benefits provided for in this Agreement or otherwise payable to you (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section, would be subject to the excise tax imposed by Section 4999 of the Code, then, at your discretion, your severance and other benefits under this Agreement shall be payable either (i) in full, or (ii) as to such lesser amount which would result in no portion of such severance and other benefits being subject to the excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by you on an after-tax basis, of the greatest amount of severance benefits under this Agreement, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code. Any reduction shall be made in the following manner: first a pro-rata reduction of (i) cash payments subject to Section 409A of the Code as deferred compensation and (ii) cash payments not subject to Section 409A of the Code, and second a pro rata cancellation of (i) equity-based compensation subject to Section 409A of the Code as deferred compensation and (ii) equity-based compensation not subject to Section 409A of the Code, with equity all being reduced in reverse order of vesting and equity not subject to treatment under Treasury regulation 1.280G- Q & A 24(c) being reduced before equity that is so subject. Unless the Company and you otherwise agree in writing, any determination required under this Section shall be made in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon you and the Company for all purposes. For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and you shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Accountants shall deliver to the Company and you sufficient documentation for you to rely on it for purpose of filing your tax returns. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section.

		
	10.
	Section 409A. To the extent (i) any payments to which you become entitled under this Agreement, or any agreement or plan referenced herein, in connection with your termination of employment with the Company constitute deferred compensation subject to Section 409A of the Code and (ii) you are deemed at the time of such termination of employment to be a “specified” employee under Section 409A of the Code, then such payment or payments shall not be made or commence until the earlier of (i) the expiration of the six (6)-month period measured from the date of your “separation from service” (as such term is at the time defined in regulations under Section 409A of the Code) with the Company; or (ii) the date of your death following such separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to you, including (without limitation) the additional twenty percent (20%) tax for which you would otherwise be liable under Section 409A(a)(1)(B) of the Code in the absence of such deferral. Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph shall be paid to you or your beneficiary in one lump sum (without interest).

Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in-kind benefit under this Agreement (or otherwise referenced herein) is determined to be subject to (and not exempt from) Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not affect the expenses eligible for reimbursement or in kind benefits to be provided in any other calendar year, in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which you incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit. 

To the extent that any provision of this Agreement is ambiguous as to its exemption or compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder are exempt from Section 409A to the maximum permissible extent, and for any payments where such construction is not tenable, that those payments comply with Section 409A to the maximum permissible extent. To the extent any payment under this Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A.  Payments pursuant to this Agreement (or referenced in this Agreement), and each installment thereof, are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the regulations under Section 409A.

		
	11.
	At Will Employment. Employment with the Company is for no specific period of time.  Your employment with the Company continues to be “at will,” meaning that either you or the Company may terminate your employment at any time, with or without cause, and with or without advance notice.  Any contrary representations that may have been made to you are superseded by this Agreement.  This is the full and complete agreement between you and the Company on this term. Although your compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company (other than you).

		
	12.
	Confidential Information and Other Company Policies. You will continue to be bound by and comply fully with your existing At Will Employment, Confidential Information and Invention Assignment Agreement (the “CIIA”) as well as the insider trading policy, code of conduct, and any other policies and programs adopted by the Company regulating the behavior of its employees, as such policies and programs may be amended from time to time to the extent the same are not inconsistent with this Agreement, unless you consent to the same at the time of such amendment.

		
	13.
	Company Records and Confidential Information. 

		
	a.
	Records. All records, files, documents and the like, or abstracts, summaries or copies thereof, relating to the business of the Company or the business of any subsidiary or affiliated companies, which the Company or you prepare or use or come into contact with, will remain the sole property of the Company or the affiliated or subsidiary company, as the case may be, and will be promptly returned upon termination of employment. 

		
	b.
	Confidentiality. You acknowledge that you have acquired and will acquire knowledge regarding confidential, proprietary and/or trade secret information in the course of performing your responsibilities for the Company, and you further acknowledge that such knowledge and information is the sole and exclusive property of the Company. You recognize that disclosure of such knowledge and information, or use of such knowledge and information, to or by a competitor could cause serious and irreparable harm to the Company.

		
	14.
	Indemnification. You and the Company will enter into the form of indemnification agreement provided to other similarly situated officers of the Company. 

		
	15.
	Arbitration. You and the Company agree to submit to mandatory binding arbitration, in Santa Clara County, California, before a single neutral arbitrator, any and all claims arising out of or related to this Agreement and your employment with the Company and the termination thereof, except that each party may, at its or his option, seek injunctive relief in court related to the improper use, disclosure or misappropriation of a party’s proprietary, confidential or trade secret information. YOU AND THE COMPANY HEREBY WAIVE ANY RIGHTS TO TRIAL BY JURY IN REGARD TO SUCH CLAIMS. This agreement to arbitrate does not restrict your right to file administrative claims you may bring before any government agency where, as a matter of law, the parties may not restrict your ability to file such claims (including, but not limited to, the National Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor). However, you and the Company agree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrative claims. The arbitration shall be conducted through the American Arbitration Association (the “AAA”), provided that, the arbitrator shall have no authority to make any ruling or judgment that would confer any rights with respect to the trade secrets, confidential and proprietary information or other intellectual property of the Company upon you or any third party. The arbitrator shall issue a written decision that contains the essential findings and conclusions on which the decision is based. The arbitration will be conducted in accordance with the AAA employment arbitration rules then in effect. The AAA rules may be found and reviewed at http://www.adr.org. If you are unable to access these rules, please let me know and I will provide you with a hardcopy. The parties acknowledge that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either of the parties against the other in connection with any matter whatsoever arising out of or in any way connected with this Agreement.

		
	16.
	Compensation Recoupment. All amounts payable to you hereunder shall be subject to recoupment pursuant to the Company’s current compensation recoupment policy, and any additional compensation recoupment policy or amendments to the current policy adopted by the Board from time to time hereafter, as allowed by applicable law. 

		
	17.
	Miscellaneous. 

		
	a.
	Absence of Conflicts; Competition with Prior Employer. You represent that your performance of your duties under this Agreement will not breach any other agreement as to which you are a party. You agree that you have disclosed to the Company all of your existing employment and/or business relationships, including, but not limited to, any consulting or advising relationships, outside directorships, investments in privately held companies, and any other relationships that may create a conflict of interest. You are not to bring with you to the Company, 

or use or disclose to any person associated with the Company, any confidential or proprietary information belonging to any former employer or other person or entity with respect to which you owe an obligation of confidentiality under any agreement or otherwise. The Company does not need and will not use such information and we will assist you in any way possible to preserve and protect the confidentiality of proprietary information belonging to third parties. Also, we expect you to abide by any obligations to refrain from soliciting any person employed by or otherwise associated with any former employer and suggest that you refrain from having any contact with such persons until such time as any non-solicitation obligation expires.

		
	b.
	Successors. This Agreement is binding on and may be enforced by the Company and its successors and permitted assigns and is binding on and may be enforced by you and your heirs and legal representatives. Any successor to the Company or substantially all of its business (whether by purchase, merger, consolidation or otherwise) will in advance assume in writing and be bound by all of the Company’s obligations under this Agreement and shall be the only permitted assignee.

		
	c.
	Notices. Notices under this Agreement must be in writing and will be deemed to have been given when personally delivered or two days after mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. Mailed notices to you will be addressed to you at the home address which you have most recently communicated to the Company in writing.  Notices to the Company will be addressed to the CEO at the Company’s corporate headquarters.

		
	d.
	Waiver. No provision of this Agreement will be modified or waived except in writing signed by you and an officer of the Company duly authorized by its Board or the Compensation Committee. No waiver by either party of any breach of this Agreement by the other party will be considered a waiver of any other breach of this Agreement.

		
	e.
	Severability. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision.

		
	f.
	Withholding. All sums payable to you hereunder shall be reduced by all federal, state, local and other withholding and similar taxes and payments required by applicable law.

		
	g.
	Entire Agreement. This Agreement, together with the CIIA, supersede and replace any prior agreements, representations or understandings (whether written, oral, implied or otherwise) between you and the Company, including, without limitation, your offer letter with the Company dated July 25, 2017, and constitute the entire agreement between you and the Company concerning the subject matter herein. This Agreement may be amended, or any of its provisions waived, only by a written document executed by both parties in the case of an amendment, or by the party against whom the waiver is asserted.

		
	h.
	Governing Law. This Agreement will be governed by the laws of the State of California without reference to conflict of laws provisions.

		
	i.
	Survival. The provisions of this Agreement shall survive the termination of your employment for any reason to the extent necessary to enable the parties to enforce their respective rights under this Agreement.

[SIGNATURE PAGE TO AGREEMENT FOLLOWS]

Please indicate your acceptance of this Agreement by signing the bottom portion of this Agreement. 

Best regards,

/s/ John J. Donahoe                             
John J. Donahoe
President & Chief Executive Officer
ServiceNow, Inc.

I, the undersigned, hereby accept and agree to the terms and conditions of my employment with the Company as set forth in this Agreement.

Accepted and agreed to as of the Effective Date.

    

By: /s/ Pat Wadors                                       
Pat Wadors 

[SIGNATURE PAGE TO AGREEMENT]

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