Document:

Exhibit 4.4

February 27, 2009

United States
Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

FNB Bancorp

975 El Camino Real

South San Francisco, California 94080

Ladies and
Gentlemen:

          Reference
is made to that certain Letter Agreement incorporating the Securities Purchase
Agreement – Standard Terms dated of even date herewith (the “Securities Purchase Agreement”) by and
among United States Department of Treasury (“Investor”)
and FNB Bancorp, a California corporation (“Company”).
Investor and Company desire to set forth herein certain additional agreements
regarding Company’s commitment to the holder of the Preferred Shares after the
closing of the transactions contemplated by the Securities Purchase Agreement.
Terms that are defined in the Securities Purchase Agreement are used in this
letter agreement as so defined. 

          In
order to comply with California Corporations Code §212(a), the Company has
modified section 7(b) of the Standard Provisions of each of the Certificate of
Designations attached as Annex A and Annex B to the Securities
Purchase Agreement (collectively, the “Certificates
of Designations”) to provide in pertinent part as follows:

	
 

	
“Whenever,
 at any time or times, dividends payable on the shares of Designated Preferred
 Stock have not been paid for an aggregate of six quarterly Dividend Periods
 or more, whether or not consecutive, the holders of the Designated Preferred
 Stock shall have the right, with holders of shares of any one or more other
 classes or series of Voting Parity Stock outstanding at the time, voting
 together as a class, to elect two directors...” 

          By
its execution hereof, the Company hereby confirms and agrees that as of the
date hereof and at all times while any shares of the Designated Preferred Stock
(as defined in each Certificate of Designations) are outstanding or issuable
upon exercise of the Warrant it shall maintain a range of directors of the
Company that will permit the holder of the Preferred Shares to elect two directors
in accordance with said sections 7(b). Currently Article III, Section 16 (the “Applicable Provision”) of the
Company’s
bylaws (the “Bylaws”) provides
for a range of directors of no less than five (5) and no more than nine (9). At
all times while any shares of the Designated Preferred Stock are outstanding,
the Company shall not fill more than seven (7) director positions. In the event
the Company desires to increase the number of directors beyond seven (7), then
the Company shall be required to amend the Bylaws to increase the maximum directors to
always allow for at least two open director seats for the holders of the
Preferred Shares to elect in accordance with Section 7(b) of the Standard Terms
of the Certificate of Determination of Preferences of Series A Fixed Rate
Cumulative Perpetual Preferred Stock of FNB Bancorp and Section 7(b) of the
Standard Terms of the Certificate of Determination of Preferences of Series B
Fixed Rate Cumulative Perpetual Preferred Stock of FNB Bancorp (and to amend the
bylaws to provide that such provision may not be modified, amended or repealed
by the Company’s board of directors (or any committee thereof) or without the
affirmative vote and approval of (x) the shareholders and (y) the holders of at
least a majority of the shares of Designated Preferred Stock outstanding at the
time of such vote and approval). 

United States Department of Treasury

FNB Bancorp

February 27, 2009

          The
parties hereto acknowledge that there would be no adequate remedy at law if the
Company fails to perform any of its obligations under this letter agreement and
that the Investor may be irreparably harmed by any such failure, and
accordingly agree that the Investor, in addition to any other remedy to which
it may be entitled at law or in equity, to the fullest extent permitted and
enforceable under applicable law shall be entitled to compel specific
performance of the obligations of the Company under this letter agreement
without the necessity of proving the inadequacy of monetary damages as a remedy
or the posting of a bond.

          This
letter agreement and the Certificates of Designations constitute the entire
agreement, and supersedes all other prior agreements, understandings,
representations and warranties, both written and oral, between the parties with
respect to the subject matter hereof.

          This
letter agreement may be executed in counterparts, each of which shall be deemed
an original and all of which shall together constitute one and the same
instrument. This letter agreement shall be governed in all respects, including
as to validity, interpretation and effect, by the internal laws of the State of
California, without giving effect to the conflict of laws rules thereof. 

[Remainder
of this page intentionally left blank]

United States Department of Treasury

FNB Bancorp

February 27, 2009

          IN
WITNESS WHEREOF, this letter agreement has been duly executed by the authorized
representatives of the parties hereto as of the date first above written.

	
 

	
 

	
 

	
 

	
 

	
FNB BANCORP

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	 

	
 

	
Name:

	
 

	
Thomas C.
 McGraw

	
 

	
Title:

	
 

	
Chief
 Executive Officer

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	 

	
 

	
Name:

	
 

	
David A.
 Curtis

	
 

	
Title:

	
 

	
Senior Vice
 President and Chief

	
 

	
 

	
 

	
Financial
 Officer

	
 

	
 

	
 

	
 

	
 

	
UNITED STATES DEPARTMENT OF THE TREASURY

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	 

	
 

	
Name:

	
 

	
 

	
 

	
Title:Exhibit 10.1

United States Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

Dear Ladies
and Gentlemen: 

          The
company set forth on the signature page hereto (the “Company”) intends to issue in a private placement the number
of shares of a series of its preferred stock set forth on Schedule A hereto
(the “Preferred Shares”) and a
warrant to purchase the number of shares of a series of its preferred stock set
forth on Schedule A hereto (the “Warrant”
and, together with the Preferred Shares, the “Purchases
Securities”) and the United States Department of the Treasury (the “Investor”) intends to purchase from the
Company the Purchased Securities. 

          The
purpose of this letter agreement is to confirm the terms and conditions of the
purchase by the investor of the Purchased Securities. Except to the extent
supplemented or superseded by the terms set forth herein or in the Schedules
hereto, the provisions contained in the Securities Purchase Agreement –
Standard Terms attached hereto as Exhibit A (the “Securities Purchase
Agreement”) are incorporated by reference herein. Terms that are defined in the
Securities Purchase Agreement are used in this letter agreement as so defined.
In the event of any inconsistency between the letter agreement and the
Securities Purchase Agreement, the terms of this letter agreement shall govern.

          Each
of the Company and the Investor hereby confirms its agreement with the other
party with respect to the issuance by the Company of the Preferred Securities
and the purchase by the Investor of the Purchased Securities pursuant to this
letter agreement and the Securities Purchase Agreement on the terms specified
on Schedule A hereto. 

          This
letter agreement (including the Schedules hereto), the Securities Purchase
Agreement (including the Annexes thereto), the Disclosure Schedules and the
Warrant constitute the entire agreement, and supersede all other prior
agreements, understandings, representations and warranties, both written and
oral, between the parties, with respect to the subject matter hereof. This
letter agreement constitutes the “Letter Agreement” referred to in the
Securities Purchase Agreement. 

          This
letter agreement may be executed in any number of separate counterparts, each
such counterpart being deemed to be an original instrument, and all such
counterparts will together constitute the same agreement. Executed signature
pages to this letter agreement may be delivered by facsimile and such
facsimiles will be deemed as sufficient as if actual signature pages had been
delivered. 

***

          In
witness whereof, this letter agreement has been duly executed and delivered by
the duly authorized representatives of the parties hereto as of the date
written below. 

	
 

	
 

	
 

	
 

	
UNITED
 STATES DEPARTMENT OF THE TREASURY

	
 

	
 

	
 

	
 

	
By:________________________________________

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
COMPANY:
 FIRST NATIONAL BANK OF NORTHERN
                      CALIFORNIA

	
 

	
 

	
 

	
 

	
By:________________________________________

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
Date:_____________________________

	
 

	
 

SCHEDULE A 

ADDITIONAL TERMS AND CONDITIONS

	
 

	
 

	
 

	
 

	
 

	
Company
 Information:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name of the
 Company:

	
 

	
FNB Bancorp
 (UST Sequence No. 846)

	
 

	
 

	
 

	
 

	
 

	
 

	
Corporate or
 other organizational form:

	
 

	
corporation

	
 

	
 

	
 

	
 

	
 

	
 

	
Jurisdiction
 of Organization:

	
 

	
California

	
 

	
 

	
 

	
 

	
 

	
 

	
Appropriate
 Federal Banking Agency:

	
 

	
Board of
 Governors of the Federal Reserve System

	
 

	
 

	
 

	
 

	
 

	
 

	
Notice
 Information:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
To: 

	
Thomas C.
 McGraw

	
Copy:

	
Joseph G.
 Mason

	
 

	
 

	
FNB Bancorp
 LLP

	
 

	
Dodd Mason
 George

	
 

	
 

	
975 El Camino
 Real, 3rd Floor

	
 

	
1740
 Technology

	
 

	
 

	
Drive, Suite
 205

	
 

	
San Jose, CA
 95110

	
 

	
 

	
South San
 Francisco, CA 94080

	
 

	
Telephone:
 (408) 452-1478

	
 

	
 

	
Telephone:
 (650) 875-4865

	
 

	
Email:
Mason@DoddMason.com 

	
 

	
 

	
Email:
TMcGraw@FamilyBank.com 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Terms of the
 Purchase:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Series of
 Preferred Stock Purchased:

	
 

	
Fixed Rate
 Cumulative

 Perpetual Preferred Stock,

 Series A

	
 

	
 

	
 

	
 

	
 

	
 

	
Per Share
 Liquidation Preference of Preferred Stock:

	
 

	
$1,000

	
 

	
 

	
 

	
 

	
 

	
 

	
Number of
 Shares of Preferred Stock Purchased:

	
 

	
12,000

	
 

	
 

	
 

	
 

	
 

	
 

	
Dividend
 Payment Dates on the Preferred Stock:

	
 

	
February 15,
 May 15, August

 15, November 15

	
 

	
 

	
 

	
 

	
 

	
 

	
Series of
 Warrant Preferred Stock:

	
 

	
Fixed Rate
 Cumulative

 Perpetual Preferred Stock,

 Series B

	
 

	
 

	
 

	
 

	
 

	
 

	
Number of
 Warrant Shares:

	
 

	
600.006

	
 

	
 

	
 

	
 

	
 

	
 

	
Number of Net
 Warrant Shares (after net settlement):

	
 

	
600

	
 

	
 

	
 

	
 

	
 

	
 

	
Exercise
 Price of the Warrant:

	
 

	
$0.01

	
 

	
 

	
 

	
 

	
 

	
 

	
Purchase
 Price:

	
 

	
$12,000,000

	
 

	
 

	
 

	
 

	
 

	
Closing:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Location of
 Closing:

	
 

	
Hughes
 Hubbard & Reed LLP

 One Battery Park Plaza

 New York, NY 10004

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Time of
 Closing:

	
 

	
9:00 a.m.
 (EST)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Date of
 Closing:

	
 

	
February 27,
 2009

	
 

	
 

	
 

	
 

	
 

	
Wire Information for Closing:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ABA Number:

	
 

	
[REDACTED TEXT]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Bank:

	
 

	
First National Bank of Northern California

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Account Name:

	
 

	
FNB Bancorp

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Account Number:

	
 

	
[REDACTED TEXT]

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Beneficiary:

	
 

	
not applicable

	
 

	
 

	
 

	
 

	
 

Contact for Confirmation of Wire Information:

David A. Curtis 

Senior Vice President and

Chief Financial Officer 

First National Bank of Northern California

975 El Camino Real, 3rd Floor

South San Francisco, CA 94080 

Telephone: (650) 875-4862

Email: DCurtis@FamilyBank.com 

SCHEDULE B 

CAPITALIZATION

	
 

	
 

	
 

	
Capitalization
 Date:      January 31, 2009

	
 

	
 

	
 

	
 

	
Common Stock

	
 

	
 

	
 

	
 

	
 

	
Par value:

	
no par

	
 

	
 

	
 

	
 

	
Total
 Authorized:

	
10,000,000

	
 

	
 

	
 

	
 

	
Outstanding:

	
3,030,000

	
 

	
 

	
 

	
 

	
Subject to
 warrants, options, convertible

 securities, etc.:

	
365,252
 (stock option plan only)

	
 

	
 

	
 

	
 

	
Reserved for
 benefit plans and other issuances:

	
365,252
 (stock option plan only)

	
 

	
 

	
 

	
 

	
Remaining
 authorized but unissued:

	
6,970,000 (includes
 365,252 shares reserved for options granted and remaining unexercised and
 options to be granted under the terms of the FNB Bancorp stock option plans)

	
 

	
 

	
 

	
 

	
Shares
 issued after Capitalization Date (other

 than pursuant to warrants, options,

 convertible securities, etc. as set forth

 above):

	
none

	
 

	
 

	
 

	
Preferred
 Stock

	
 

	
 

	
 

	
 

	
 

	
Par value:

	
no par

	
 

	
 

	
 

	
 

	
Total
 Authorized:

	
5,000,000

	
 

	
 

	
 

	
 

	
Outstanding
 (by series):

	
none

	
 

	
 

	
 

	
 

	
Reserved for
 issuance:

	
none

	
 

	
 

	
 

	
 

	
Remaining
 authorized but unissued:

	
5,000,000

	
 

	
 

	
 

	
Holders of
 5% or more of any class of capital stock

	
 

	
Primary
 Address

	
 

	
 

	
 

	
The Ricco
 Lagomarsino Trust (10.24%)

	
 

	
26 Hillcrest
 Drive

 Daly City, CA 94014

	
 

	
 

	
 

	
 

	
 

	
 

	
Thomas G.
 Atwood c/o Cypress Abbey Company (11.01%)

	
 

	
P.O. Box 516

 Colma, CA 94014

	
 

	
 

	
 

	
 

	
 

	
 

	
Thomas C.
 McGraw (5.16%, excluding stock options)

	
 

	
510 Fawn
 Drive

 San Anselmo, CA 94960

	
 

	
 

	
 

	
SCHEDULE C

	
 

	
 

	
 

	
LITIGATION

	
 

	
 

	
 

	
List any
 exceptions to the representation and warranty in Section 2.2(l) of the
 Securities Purchase Agreement – Standard Terms.

	
 

	
 

	
 

	
If none,
 please so indicate by checking the box:

	
x

	
 

	
 

	
 

	
 

	
SCHEDULE D

	
 

	
COMPLIANCE WITH LAWS

	
 

	
List any
 exceptions to the representation and warranty in the second sentence of
 Section 2.2(m) of the Securities Purchase Agreement – Standard Terms.

	
 

	
 

	
 

	
If none,
 please so indicate by checking the box:

	
x

	
 

	
 

	
 

	
 

	
List any
 exceptions to the representation and warranty in the last sentence of Section
 2.2(m) of the Securities Purchase Agreement – Standard Terms.

	
 

	
If none,
 please so indicate by checking the box:

	
x

	
 

	
 

	
 

	
 

	
SCHEDULE E

	
 

	
REGULATORY AGREEMENTS

	
 

	
List any
 exceptions to the representation and warranty in Section 2.2(s) of the
 Securities Purchase Agreement – Standard Terms.

	
 

	
If none,
 please so indicate by checking the box:

	
x

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