Document:

EXHIBIT 4.8
  <P>
                  EMPLOYMENT AGREEMENT
  <P>
  EMPLOYMENT AGREEMENT, dated as of September 30, 1999,
  between Unico, Inc., a Delaware corporation (the
  "Company") and Richard S. Hyland, (the "Executive").
  The parties hereto agree as follows:
  <P>
  1.  Employment.
      ------------
       (a) Agreement to Employ.  Upon the terms and subject
           --------------------
  to the conditions of this Agreement, the Company shall
  hereby employ the Executive and the Executive hereby
  agrees to be employed by the Company.
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       (b) Term of Employment.  Subject to Section 5, the
           -------------------
  Company shall employ the Executive pursuant to the terms
  hereof for the period commencing on the date Executive
  begins exclusive employment with the Company (the
  "Start Date"), which shall be the earliest date
  reasonably possible for Executive, and ending on June
  30, 2000, provided that the Executive's employment
  with the Company shall be deemed to be automatically
  renewed upon the same terms and conditions for an
  additional one-year period on each of June 30, 2001
  and December 31, 2001 unless either party hereto shall
  have given the other party written notice that such
  party does not intend to renew the Agreement as of
  such date at least thirty (30) days in advance of the
  date on which this Agreement would otherwise
  automatically be renewed. The period during
  which the Executive is employed pursuant to this
  Agreement, including any renewal thereof in accordance
  with this Section (1)(b), shall be referred to as the
  "Employment Period."
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  2.  Position and Duties.
      --------------------
      During the Employment Period, the Executive shall
  serve as Director of Business Development of the
  Company and the Executive shall have the duties,
  responsibilities and obligations customarily assigned
  to individuals serving in the position or positions in
  which the Executive serves hereunder. The Executive
  shall report to the Chief Executive Officer of the
  Company. The Executive shall devote his full time to the
  services required of him hereunder, except for vacation
  time and reasonable periods of absence due to sickness,
  personal injury or other disability, and shall use her
  best efforts, judgment, skill and energy to perform such
  services in a manner consonant with the duties of his
  position and to improve and advance the business and
  interests of the Company.
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  3.  Compensation.
      -------------
      Salary and Bonus.  The Company shall pay the
      -----------------
  Executive a base salary at an annual rate of $36,000.
  The Company shall pay the Executive such base salary
  in equal bi-monthly installments or in such other
  installments as the parties may agree.
  <P>
        In consideration of accepting employment with the
  Company, the Company will issue 50,000 shares of
  common stock upon the signing of this agreement.  The
  Company agrees that the shares of common stock of the
  Company comprising the Signing Bonus shall be issued
  to the Employee as of the date of the execution of the
  Agreement, and such shares of common stock of the
  Corporation shall immediately be registered under S-8
  as soon as possible to make the securities available
  to be traded on the OTC Electronic Bulletin Board,
  without limitation or restriction.
  <P>
  4.  Benefits and Vacation.
      ----------------------
      During the Employment Period, the Executive shall be
  eligible to participate in the health, disability and
  life insurance plans sponsored or maintained by the
  Company for the benefit of its senior executive
  corporate officers to the extent that the Executive is
  eligible to participate in any such plans under the
  generally applicable provisions thereof. The Company
  may, in its discretion, amend or terminate any such
  plans in accordance with the terms thereof. During the
  Employment Period, the Executive shall be entitled to
  three weeks of paid vacation annually. Unused vacation
  days for any given calendar year may be carried over
  to the subsequent year, or, at Executive's option, may be
  surrendered to the Company for a cash payment equal to
  (a) the quotient of the number of unused vacation days
  surrendered, divided by 365, times (b) Executive's
  base salary for the year in which such unused vacation
  day was initially accrued.
  <P>
  5.  First Anniversary Employment Review.
      ------------------------------------
       (a) Within the thirty (30) days prior to and the
  thirty (30) days after the first anniversary of the
  Start Date (such sixty-day period is hereinafter
  referred to as the "Review Period"), the Company shall
  have the option to terminate Executive's employment
  with the Company. If the Company terminates Executive's
  employment with the Company during the Review Period,
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            (i)  at the Company's option, Executive shall
  be entitled to receive severance pay equal to the base
  salary payable to the Executive under Section 3(a) for
  the six months following such termination (payable
  monthly).
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            (ii) Section 11 hereof shall continue in full
  force and effect.
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       (b) Within the thirty (30) day period prior to the
  first anniversary of the Start Date, the Executive
  shall have the option to terminate Executive's
  employment with the Company.  If the Executive so
  terminates his employment with the Company,
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            (i) Executive shall receive no severance pay.
  <P>
            (ii) Section 11 hereof shall continue in full
  force and effect.
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  6.     Termination of Employment.
         --------------------------
       If the Executive's employment with the Company
  terminates earlier than upon the expiration of the
  Employment Period, other than a termination pursuant
  to Section 6 hereof, the Executive shall be entitled to
  receive the following payments under the following
  circumstances:
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       (a) Death.  Upon the death of the Executive, the
           ------
  Executive's spouse, if any, or his estate shall receive
  the Executive's base salary payable in the year of his
  death pursuant to Section 3(a) hereof, life insurance
  benefits and a pro rata portion of the Executive's
  Bonus that would have been payable pursuant to Section
  3(a) hereof with respect to the fiscal year in which the
  Executive died. Such pro rata portion shall be
  determined by multiplying (i) the total Bonus that the
  Executive would have received in respect of the year
  of his death by (ii) the quotient of the number of
  days in such year prior to his death, divided by 365.
  Such pro rata Bonus payment will be payable at the
  same time that the full Bonus would have been payable
  to the Executive pursuant to Section 3(a) hereof.
  <P>
       (b) Disability.  Upon the Disability of the
           -----------
  Executive, he shall receive his Earned Salary, any
  disability benefits payable under any disability
  program in which he participates, any other benefits
  under any benefit plan of the Company to which he is
  entitled pursuant to the terms of such plan and a
  portion of the Executive's Bonus that would have been
  payable pursuant to Section 3(a) hereof with respect
  to the fiscal year in which the Executive became
  disabled. Such pro rata portion shall be determined by
  multiplying (i) the total Bonus that the Executive
  would have received in respect of the year of his
  Disability by (ii) the quotient of the number of days
  in such year prior to his Disability, divided by 365.
  Such pro rata Bonus payment will be payable at the
  same time that the full Bonus would have been payable to
  the Executive pursuant to Section 3(a) hereof.
  <P>
        (c) Termination for Cause or a Resignation Other
            --------------------------------------------
  than for Good Reason.  If the Executive's employment
  ---------------------
  terminates due to a Termination for Cause or a
  Resignation Other than for Good Reason, the Executive
  shall receive his Earned Salary and any other benefits
  under any benefit plan of the Company to which he is
  entitled pursuant to the terms of such plan.
  <P>
       (d) Termination Without Cause or Resignation for
           ---------------------------------------------
  Good Reason. If the Executive's employment terminates due
  ------------
  to a Termination Without Cause or a Resignation for Good
  Reason the Executive shall receive severance pay equal to
  the base salary (but not the bonus) payable to the
  Executive under Section 3(a) for the six months
  immediately following such termination or resignation.
  Notwithstanding anything herein to the contrary, in no
  event shall the Company be obligated to pay any amount
  to the Executive with respect to any period after such
  six-month period.
  <P>
  7.  Definitions.
      -------------
  For purposes of this Agreement, capitalized terms have
  the following meanings:
  <P>
  "Cause" shall mean a termination by the Company due to
  -------
  (i) the continued failure (other than any such failure
  resulting from incapacity due to reasonably documented
  physical or mental illness) by the Executive
  substantially to perform his duties, responsibilities
  or obligations as an officer, director or employee of
  the Company or any of its subsidiaries after having been
  given written notice of such failure to perform,
  listing in reasonable specificity such failures, and
  after having failed to improve such performance within
  the time period (which shall have been a reasonable
  time period) specified in such notice or (ii) the
  engaging by the Executive in serious misconduct which
  is material to the performance by the Executive of his
  duties and obligations for the Company, including,
  without limitation, gross negligence, dishonesty, willful
  malfeasance, gross insubordination or gross misconduct
  or conviction of a felony or the entering of a plea of
  nolo contendere to a felony.
  <P>
  "Disability" shall mean the Executive's inability for
  ------------
  more than six months within any 12-month period of
  performing his duties, responsibilities or obligations
  as an officer, director or employee of the Company on a
  full-time basis because of a physical, mental or
  emotional incapacity resulting from injury, sickness or
  disease and within 30 days after written notice of
  termination has been given to the Executive, the
  Executive shall not have returned to the full-time
  performance of his duties, responsibilities and
  obligations. The date of termination in the case of a
  termination for "Disability" shall be the last day of
  the aforementioned 30-day period.
  <P>
  "Earned Salary" means the base salary earned, but unpaid,
  ---------------
  for services rendered to the Company on or prior to the
  date of disability, resignation or termination of the
  Executive's employment, as the case may be. Earned
  Salary shall be paid in a single lump sum as soon as
  practicable, but in no event more than 30 days
  following such date.
  <P>
  "Resignation for Good Reason" means a resignation by the
  -----------------------------
  Executive as a result of any of the following:
  <P>
       (a) a material breach by the Company of its
  obligations under this Agreement with respect to the
  base salary, Bonus, benefits or vacation to which the
  Executive is entitled under Sections 3 and 4 hereof;
  or
  <P>
       (b) the taking of any action by the Company that
  would substantially diminish the aggregate value of
  the benefits provided to the Executive under the benefit
  plans of the Company that may be in effect at such
  time in which he was participating, other than any such
  reduction which is (i) required by law, (ii)
  implemented in connection with a general concessionary
  arrangement affecting all employees or affecting the
  group of senior corporate executive employees or (iii)
  generally applicable to all similarly situated
  beneficiaries of such plans.
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  "Resignation Other than for Good Reason" shall be any
  ----------------------------------------
  resignation other than a Resignation with Good Reason.
  <P>
  "Termination for Cause" shall be any termination of the
  -------------------------
  Executive's employment by the Company for Cause.
  <P>
  "Termination Without Cause" shall be any termination of
  ---------------------------
  the Executive's employment by the Company other than a
  Termination for Cause.
  <P>
  8.  Full Discharge of Company Obligations.  The amounts
      --------------------------------------
  payable to the Executive pursuant to Section 5 or Section
  6 following termination of his employment shall be in
  full and complete discharge of the Executive's rights
  under this Agreement and any other claims he may have
  in respect of his employment by the Company or any of its
  subsidiaries.  Such amounts payable shall constitute
  liquidated damages with respect to any and all such
  rights and claims and, upon the Executive's receipt of
  such amounts, the Company shall be released and
  discharged from any and all liability to the Executive
  in connection with this Agreement or otherwise in
  connection with the Executive's employment with the
  Company and its subsidiaries.
  <P>
  9.   Noncompetition and Confidentiality.
       -----------------------------------
       (a) Noncompetition.  If the Executive's employment
           ---------------
  with the Company terminates during the Employment Period
  for any reason (other than a resignation by Executive
  pursuant to Section 6(c) or due to his death or
  Disability), during the six-month period following
  such termination or resignation of the Executive (the
  "Restriction Period"), the Executive shall not become
  associated with any entity, whether as a principal,
  partner, employee, consultant or shareholder (other
  than as a holder of not in excess of 1% of the
  outstanding voting shares of any publicly traded
  company), that is actively engaged in the any business
  that directly competes with any business, that at the
  time of termination, The Company was actively engaged
  in.
  <P>
       (b) Confidentiality.  Without the prior written
           ----------------
  consent of the Company, except for disclosures of
  Confidential Information (as defined below) in the
  ordinary course of business that, individually and in
  the aggregate, are not materially injurious to the
  Company or any of its subsidiaries, and except to the
  extent required by an order of a court having competent
  jurisdiction or under subpoena from an appropriate
  government agency, the Executive shall not disclose
  any trade secrets, customer lists, computer programs,
  drawings, designs, marketing or sales plans,
  management organization information (including data
  and other information relating to members of the Board
  or management), operating policies or manuals, business
  plans, financial records or other financial,
  commercial, business or technical information relating
  to the Company or any of its subsidiaries or information
  designated as confidential or proprietary that the
  Company or any of its subsidiaries may receive
  belonging to suppliers, customers or others who do
  business with the Company or any of its subsidiaries
  (collectively, "Confidential Information") to any
  third person unless such Confidential Information has
  been previously disclosed to the public by the Company
  or is in the public domain (other than by reason of the
  Executive's breach of this Section 11(b)). If the
  Executive receives an order of a court or a subpoena
  requiring the Executive to disclose any Confidential
  Information, as described above, the Executive shall
  promptly deliver a copy of such order or subpoena to
  the Company and the Company shall use its best efforts to
  assist the Executive in responding thereto.
  <P>
       (c) Company Property.  Promptly following the
           -----------------
  Executive's termination of employment, the Executive
  shall return to the Company all property of the
  Company, and all copies thereof in the Executive's
  possession or under his control, including, without
  limitation, all Confidential Information, in whatever
  media.
  <P>
       (d) Nonsolicitation of Employees.  During the
           -----------------------------
  Employment Period and the Restriction Period, the
  Executive shall not directly or indirectly induce any
  employee of the Company or any of its subsidiaries to
  terminate employment with such entity, and will not
  directly or indirectly, either individually or as
  owner, agent, employee, consultant or otherwise,
  employ or offer employment to any person who is or was
  employed by the Company or a subsidiary thereof unless
  such person shall have ceased to be employed by such
  entity for a period of at least six months.
  <P>
       e) Certain Payments to the Executive during the
          --------------------------------------------
  Restriction Period. If the Executive's employment with
  -------------------
  the Company is terminated due to a Termination for Cause
  or a Resignation Other than for Good Reason, then, as
  consideration for the covenants set forth in Section
  11(a) and Section 11(d), the Company shall pay the
  Executive, for the duration of the Restriction Period,
  the salary (but not the bonus) he otherwise would have
  received under Section 3(a).  If the Executive's
  employment with the Company is terminated due to a
  Termination Without Cause or a Resignation for Good
  Reason, then, as consideration for the covenants set
  forth in Section 11(a) and Section 11(d), the Company
  shall pay the Executive the compensation set forth in
  Section 8(d). If the Executive's employment is
  terminated pursuant to Section 6(b), then the receipt
  by the Executive of the compensation elected by the
  Company pursuant to Section 6(c) will constitute the
  consideration for the covenants set forth in Section
  11(a) and Section 11(d). If the Restriction Period
  extends beyond the Employment Period, the Company shall
  continue to pay the Executive his then current salary
  until the end of the Restriction Period for that
  portion of the Restricted Period, which extends beyond
  the Employment Period. Except in the case of a
  Termination Without Cause or such Resignation for Good
  Reason, the Company may elect at any time during the
  Restriction Period upon thirty (30) days prior written
  notice to discontinue such salary payments, in which
  event the Executive shall be released from any further
  obligation to comply with the provisions of Sections
  11(a) and 11(d) herein.  If the Company fails to
  timely make any payment due under this Section 11(e)
  and if such failure continues for ten (10) business days
  after notice by the Executive to the Company of such
  failure, the Executive shall be released from any
  further obligation to comply with the provisions of
  Sections 11(a) and 11(d) herein.
  <P>
       (f) Injunctive Relief with Respect to Covenants. The
           --------------------------------------------
  Executive acknowledges and agrees that the covenants and
  obligations of the Executive with respect to
  noncompetition, nonsolicitation, confidentiality and
  Company property relate to special, unique and
  extraordinary matters and that a violation of any of
  the terms of such covenants and obligations will cause
  the Company and its subsidiaries irreparable injury
  for which adequate remedies are not available at law.
  Therefore, the Executive agrees that the Company and its
  subsidiaries shall be entitled to an injunction,
  restraining order or such other equitable relief
  (without the requirement to post bond) as a court of
  competent jurisdiction may deem necessary or
  appropriate to restrain the Executive from committing
  any violation of the covenants and obligations
  contained in this Section 11. These injunctive
  remedies are cumulative and are in addition to any
  other rights and remedies the Company or its subsidiaries
  may have at law or in equity.
  <P>
  10. Miscellaneous.
      --------------
       (a) Binding Effect.  This Agreement shall be binding
           ---------------
  on the Company and any person or entity which succeeds to
  the interest of the Company (regardless of whether
  such succession occurs by operation of law, by reason
  of the sale of all or a portion of the Company's stock or
  assets or a merger, consolidation or reorganization
  involving the Company).  This Agreement shall also
  inure to the benefit of the Executive's heirs, executors,
  administrators and legal representatives.
  <P>
       (b) Assignment.  Except as provided under Section
           -----------
  12(a) above, neither this Agreement nor any of the rights
  or obligations hereunder shall be assigned or
  delegated by either party hereto without the prior
  written consent of the other party.
  <P>
       (c) Entire Agreement.  This Agreement supersedes any
           -----------------
  and all prior agreements between the parties hereto, and
  constitutes the entire agreement between the parties
  hereto with respect to the matters referred to herein,
  and no other agreement, oral or otherwise, shall be
  binding between the parties unless it is in writing
  and signed by the party against whom enforcement is
  sought.  There are no promises, representations,
  inducements or statements between the parties other
  than those that are expressly contained herein. The
  Executive acknowledges that she is entering into this
  Agreement of her own free will and accord, and with no
  duress, that she has read this Agreement and that she
  understands it and its legal consequences.  No parol
  or other evidence may be admitted to alter, modify or
  construe this Agreement, which may be changed only by
  a writing signed by the parties hereto.
  <P>
       (d) Severability; Reformation.  In the event that
           --------------------------
  one or more of the provisions of this Agreement shall
  become invalid, illegal or unenforceable in any
  respect, the validity, legality and enforceability of
  the remaining provisions contained herein shall not be
  affected thereby. In the event any of Section 11(a),
  (b), (c), (d) or (e) is not enforceable in accordance
  with its terms, the Executive and the Company agree
  that such Section, or such portion of such Section,
  shall be reformed to make it enforceable in a manner
  which provides the Company the maximum rights permitted
  under applicable law.
  <P>
       (e) Waiver.  Waiver by either party hereto of any
           -------
  breach or default by the other party of any of the terms
  of this Agreement shall not operate as a waiver of any
  other breach or default, whether similar to or
  different from the breach or default waived. No waiver
  of any provision of this Agreement shall be implied
  from any course of dealing between the parties hereto
  or from any failure by either party hereto to assert
  their rights hereunder on any occasion or series of
  occasions.
  <P>
       (f) Notices.  Any notice required or desired to be
           --------
  delivered under this Agreement shall be in writing and
  shall be delivered personally, by courier service, by
  registered mail, return receipt requested, or by telecopy
  and shall be effective upon dispatch to the
  party to whom such notice shall be directed, and shall
  be addressed as follows (or to such other address as the
  party entitled to notice shall hereafter designate in
  accordance with the terms hereof):
  <P>
  If to the Company:
                     Unico, Inc.
                     Harbor Park
                     333 Ludlow Street
                     Stamford, CT 06902
  <P>
       (g) Amendments.  This Agreement may not be altered,
           -----------
  modified or amended except by a written instrument signed
     by each of the parties hereto.
  <P>
       (h) Headings.  Headings to sections in this
           ---------
  Agreement are for the convenience of the parties only and
  are not intended to be part of or to affect the
  meaning or interpretation hereof.
  <P>
       (i) Counterparts.  This Agreement may be executed in
           -------------
  counterparts, each of which shall be deemed an original
  but both of which together shall constitute one and
  the same instrument.
  <P>
       (j) Withholding.  Any payments provided for herein
           -------------
  shall be reduced by any amounts required to be withheld
  by the Company from time to time under applicable
  Federal, state or local income or employment tax laws
  or similar statutes or other provisions of law then in
  effect.
  <P>
       (k) Governing Law.  This Agreement shall be governed
           --------------
  by the laws of the State of Connecticut, without
  reference to principles of conflicts or choice of law
  under which the law of any other jurisdiction would
  apply.
  <P>
  IN WITNESS WHEREOF, the Company has caused this Agreement
  to be executed by its duly authorized officer and the
  Executive has hereunto set her hand as of the day and
  year first above written.
  <P>
                   Unico, Inc.
  <P>
                   /s/  Jay R. Weppler
                   -------------------
                   By:  Jay R. Weppler.
                   Title:  Chief Executive Officer
  <P>
                   The Executive:
  <P>
                   /s/ Richard S. Hyland
                   ---------------------
                       Richard S. Hyland<PAGE>   1

                                                                    EXHIBIT 10.1

                            STOCK PURCHASE AGREEMENT

         This STOCK PURCHASE AGREEMENT dated as of March 29, 2000 (the
"Agreement"), is made and entered into by and between Foothill Independent
Bancorp, a California corporation (the "Company"), on the one hand, and each of
the following entities or persons (who shall collectively be referred to herein
as the "Basswood Group" and individually as a "Member" thereof), on the other
hand: Basswood Financial Partners, L.P., a Delaware limited partnership (the
"Basswood LP"), Basswood Partners, L.L.C., a Delaware limited liability company
("Basswood LLC"), Basswood Capital Management L.L.C., a Delaware limited
liability company ("BCM"), Whitewood Financial Partners, L.P., a Delaware
limited partnership ("Whitewood"), Basswood International Fund, Inc., a Cayman
Islands exempted company ("Basswood International"), and Matthew Lindenbaum and
Bennett Lindenbaum.

                                R E C I T A L S:
                                 - - - - - - - -

         A. The Company's Board of Directors has determined that it would be
advantageous and in the best interests of the Company and its shareholders for
the Company to repurchase shares of its common stock, without par value (the
"Common Stock") and, therefore, has previously approved and directed management
to effectuate open market and private purchases of shares of the Company's
Common Stock at prices approximating the prevailing prices of the Company's
Common Stock in the open market (the "Stock Purchase Program").

         B. The Basswood Group has informed the Company that its members intend
to sell the shares of Common Stock of the Company owned by its Members (the
"Basswood Shares"), a schedule of which is attached as Exhibit A hereto.

         C. The Company has advised the Basswood Group that, in furtherance of
the purposes of its Stock Purchase Program, the Company desires to purchase all
of the Basswood Group Shares (which shall sometimes be referred to herein as the
"Shares").

         D. According to reports obtained from NASDAQ, the stock market on which
the Company's shares are listed for trading, the average of the prices at which
shares of Common Stock of the Company have been sold during the 20 trading days
immediately preceding the date that substantive negotiations of this Agreement
were commenced was $11.55 per share.

         E. The Basswood Group Members are willing to sell the Shares to the
Company, and the Company has determined to buy those Shares, on the terms and
conditions hereinafter set forth.

         NOW, THEREFORE, in consideration of the foregoing and the respective
representations, warranties and covenants of the parties contained herein, the
parties hereby agree as follows:

         1. Sale of Basswood Shares. Subject to the terms and conditions set
forth hereinafter, at the Closing (as hereinafter defined), each Member of the
Basswood Group shall sell, transfer and convey to the Company, free and clear of
all claims, liens, pledges, options, security interests, encumbrances,
restrictions and adverse interests of any kind or nature whatsoever
(collectively, "Liens and Adverse Interests") and, subject to the Company's
rights under Section 8(a) below to assign its purchase rights hereunder as and
to the extent provided therein, the Company shall purchase from each Member, the
number of the Basswood Shares owned beneficially by such Member, as set forth
opposite such Member's name on Exhibit A hereto, for a purchase price of eleven
and one-half dollars ($11.50) per share (the "Per Share Purchase Price"). The
respective amounts payable to each Member of the Basswood Group for all of such
Member's Shares is also set forth on Exhibit A hereto (each Member's "Purchase
Price"). It shall be a condition precedent to the Company's obligations that the
closing price of its shares on the date hereof shall not have declined by more
than 20% from the Per Share Purchase Price stated above and it shall be a
condition precedent to the
<PAGE>   2

obligations of the Basswood Group Members that such closing price shall not have
increased by more than 20% from the Per Share Purchase Price.

         2. Payment for and Delivery of Shares. The delivery of the Basswood
Group Shares and the payment therefor shall take place concurrently at 10 A.M.
on March 31, 2000 or such other date and time that as may be agreed by the
parties (the "Settlement Date"). At that time and date the Members shall cause
to be effectuated an electronic transfer of ownership of the Basswood Group
Shares to the account of the Company and to the account of any Permitted Assigns
(as defined in Section 8(a) below) and, on confirmation that such electronic
transfer has been made, the Company and such Permitted Assignees, if any, shall
pay to each Member such Member's Purchase Price, as set forth in Exhibit A
hereto, by wire transfer of funds in accordance with wire transfer instructions
received from Basswood LP. In addition to the effectuation of the electronic
transfer of the Shares, the Company's obligation to pay for the Basswood Shares
shall be subject to the satisfaction of the following conditions: (i) that all
of the Basswood Shares are sold to the Company or its Permitted Assigns on or
before March 31, 2000, and (ii) that the parties shall have entered into a
Settlement Agreement substantially in the form of Exhibit B hereto.

         3. Representations and Warranties of the Company. The Company
represents and warrants to the Members of the Basswood Group as follows:

                  (a) The Company has the corporate power and authority to
execute and deliver and to perform its obligations under this Agreement;

                  (b) This Agreement has been duly and validly authorized,
executed and delivered by the Company and constitutes a valid and binding
agreement of the Company, enforceable against the Company in accordance with its
terms; and

                   (c) Neither the execution and delivery of, nor the
performance by the Company of its obligations under, this Agreement will result
in or constitute a breach or violation of, nor is any consent required to be
obtained under any contract, instrument or other agreement, written or oral, to
which the Company is subject or bound, other than any consent that has been
obtained.

         4. Representations and Warranties of the Basswood Group Members. The
Members of the Basswood Group jointly and severally represent and warrant to the
Company, as follows:

                  (a) Each of the Basswood Members which is not a natural person
represents and warrants on its own behalf that (i) it has the corporate, limited
liability company or partnership (as applicable) power and authority to execute
and deliver, and to perform its obligations under, this Agreement, (ii) the
execution, delivery and performance of this Agreement by such Member has been
duly authorized by all requisite action of such Member required under applicable
law or its organizational documents, and (iii) this Agreement constitutes such
Member's valid and binding obligation, enforceable against it in accordance with
its terms.

                  (b) Each of the Basswood Group Members who is a natural person
represents and warrants on his own behalf that he (i) has the capacity, right,
power and authority to execute and deliver, and to perform his obligations
under, this Agreement and to consummate the transactions contemplated hereby,
and (ii) this Agreement has been duly executed and delivered by such Member and
constitutes his valid and binding obligation, enforceable against him in
accordance with its terms.

                  (c) Neither the execution and delivery of, nor the performance
by the Basswood Group Members of their respective obligations under, this
Agreement will result in or constitute a breach or violation of any contract,
instrument or other agreement, written or oral, to which any such Basswood Group
Member is a party or to which such Member's Shares are subject or bound.

                                       2
<PAGE>   3

                  (d) Each of the Basswood Group Members owns beneficially (as
such term is defined below) the number of shares of Common Stock of the Company
set forth opposite his or its name under the column heading "Shares Beneficially
Owned" in Exhibit A attached hereto. Except for such shares listed in Exhibit A,
none of the Basswood Group Members and no Affiliate or Associate (as hereinafter
defined) of any of the Basswood Group Members owns beneficially, or of record,
any shares of Common Stock or other voting securities of the Company or any
rights, options or other securities that are or may become convertible,
exercisable or exchangeable for shares of Common Stock or any other voting
securities of the Company.

                  (e) The Basswood Group Members own beneficially the Shares set
forth opposite their respective names on Exhibit A and at the time of the
Closing shall have the right to, and shall, sell, transfer and convey such
Shares to the Company, free and clear of any and all Liens and Adverse Interests
of any kind and nature whatsoever, and without any restriction.

                  (f) Each Basswood Group Member possesses and has not assigned
or transferred to any Person the right to vote, or the right to give consents
with respect to, or any other rights of a shareholder under California law
arising out of such Member's ownership of, the Shares set forth opposite such
Member's name on Exhibit A. Except as otherwise provided in Section 4 below, no
such Member has executed or delivered, and it shall not execute or deliver, to
any Person any proxy to vote or exercise consensual rights with respect to any
of such Shares and it has not entered and shall not enter into, and none of such
Member's shares of Company Common Stock are subject to, any voting trust, power
of attorney or other agreement pertaining to the voting or consensual rights, or
the exercise of any other shareholder rights, arising out of the ownership of
such Shares of Common Stock.

         5. Irrevocable Proxy and Voting Instructions.

                  (a) Each Basswood Group Member hereby constitutes and appoints
George E. Langley and Donna Miltenberger, and each of them, individually, with
full power of substitution (each, a "Proxy Holder"), as such Member's true and
lawful proxy and attorney-in-fact:

                           (i) to vote all the Shares of each Member at any
meeting of the Company's shareholders (and any adjournment or postponement
thereof) for which the record date is any date preceding the cancellation of the
Shares following their acquisition by the Company hereunder, as the Proxy
Holders, or either of them, acting individually, deems appropriate, in his or
her sole and absolute discretion, on or with respect to any and all proposals to
be voted on at any such meetings, including, but not limited to the Company's
Special Shareholders Meeting called for April 25, 2000 at which shareholders of
record as of March 17, 2000 will be voting on a proposed reincorporation of the
Company and certain changes in its charter and bylaws; and

                           (ii) to execute and deliver any and all written
consents and to exercise all other consensual rights with respect to each such
Member's Shares as the Proxy Holders, or either of them, acting individually,
deems in his or her sole and absolute discretion to be appropriate.

                  (b) Concurrently herewith, or at any time hereafter at the
request of the Company, and in furtherance and not in limitation of their
obligations hereunder, the Basswood Group Members shall execute proxies or
written instructions to any record holder of their Basswood Shares that shall
direct such record holders to vote their beneficially owned Shares of Common
Stock FOR approval of all of the Proposals to be submitted to a vote of the
Company's shareholder at the Special Meeting. If a Basswood Group Member fails
for any reason to issue such instructions to the record or nominee holder of its
Shares or attempts to revoke any such instruction, such failure or attempted
revocation shall constitute a breach of this Agreement and, without limiting any
other rights or remedies that the Company have by reason thereof, the Proxy
Holders, or either of them individually, shall have the right to vote that
Members Shares at that Special Meeting in accordance with

                                       3
<PAGE>   4

the provisions of this Section 5. The vote of a Proxy Holder shall control in
any conflict between a vote of such Shares by a Proxy Holder and a vote by a
Basswood Member or by a record or nominee holder of such Shares.

                  (c) Each of the foregoing proxies and powers of attorney,
provided for in Paragraphs 5(a) and 5(b) above, are being granted as security
for the obligations of the Basswood Group Members under this Agreement and a
Settlement Agreement of even date herewith being entered into by them with the
Company (the "Settlement Agreement") and shall be irrevocable for a period of
eleven months following the date hereof, shall be deemed to be coupled with an
interest sufficient in law to support an irrevocable proxy and shall revoke all
prior proxies granted by such Basswood Group Members. The expiration of the
foregoing 11 month period shall be "tolled" during any period that any Basswood
Group Member is in breach of this Agreement or the Settlement Agreement and on
the remedying of such breach such 11 month period shall be extended for a period
of time equal to the duration of such breach.

                  (d) Each Basswood Group Member covenants that, except as set
forth above in this Section 5, such Member shall not exercise any voting or
consensual rights or grant any proxy or power of attorney to any Person with
respect to such Member's Shares, and any attempt to do so shall be void and
ineffective. The power of attorney granted in this Section 5 by each Basswood
Group Member is a durable power of attorney and shall survive such Member's
death, disability or other incapacity.

                  (e) Each Basswood Group Member shall execute and deliver such
other documents or instruments as may be requested by the Company to better
effectuate or evidence the power of attorney and proxy and the voting and
consensual rights granted hereunder to the Proxy Holders with respect to each
such Basswood Group Member's Shares. Such documents and instruments shall
include, but shall not be limited to, an irrevocable instruction to the
Inspector of Elections for any Company shareholders meeting, including the
Special Meeting, that in the event that such Member's Shares are voted by such
Member or such Member's agent or nominee in a manner inconsistent with this
Section 5 or inconsistent with voting instructions received from either or both
of the Proxy Holders, such votes or written consents from the Member or its
agent or nominee shall be disregarded and such Shares shall be voted in
accordance with instructions given by either or both of the Proxy Holders (or by
any persons to which they may, by substitution, assign such voting or consensual
rights with respect to such Shares).

         6. Specific Performance. Each of the Basswood Group Members hereby
acknowledges and agrees that irreparable injury to the Company would occur in
the event any of the provisions of Section 1 or of Section 5 hereof were not
performed in accordance with their specific terms or were otherwise breached and
that such injury would not be fully compensable in damages. It is therefore
agreed by the Basswood Group Members that, without limiting any other rights or
remedies available to the Company hereunder: (i) the Company shall be entitled
to temporary, preliminary and permanent injunctive relief against any breach or
threatened breach of, and to specific enforcement, of the terms of Section 1 or
the terms of Section 5 hereof; and (ii) none of the Basswood Group Members shall
take any action, directly or indirectly, in opposition to the Company's petition
seeking such relief on the grounds that any other remedy or relief is available
at law or in equity, and (iii) the Company shall not be obligated to post a
bond, cash deposit or other security as a condition to the granting of such
relief.

         7. Certain Definitions and Headings. As used in this Agreement:

                  (a) the terms "beneficial ownership" and "beneficially owned"
and any variants thereof shall have the meaning given to such terms in Rule
13d-3, as such Rule is currently in effect, under the Exchange Act;

                  (b) the term "Person" shall mean any natural person,
corporation, partnership (general or limited), limited liability company, group,
syndicate, trust, government or agency thereof, or any other association or
entity;

                                       4
<PAGE>   5

                  (c) the terms "Affiliates" and "Associates" shall have the
respective meanings set forth in Rule 12b-2 promulgated by the Commission under
the Securities Exchange Act of 1934, as in effect on the date hereof, and shall
include Persons who are Affiliates or Associates of any Person on the date
hereof or who become Affiliates or Associates of any Person subsequent to the
date hereof;

                  (d) the word "including" shall be deemed to be followed by the
words "without limitation" "but not limited to".

                  (e) The captions and section headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

         8. Miscellaneous.

                  (a) Successors and Assigns. All the terms and provisions of
this Agreement shall inure to the benefit of and shall be enforceable by the
respective successors and permitted assigns of the parties hereto; provided that
neither the Company, on the one hand, nor any of the Basswood Members, on the
other hand, may assign or otherwise transfer its rights or interests, nor
delegate its duties hereunder without the prior written consent of the other
party hereto. Neither the death, disability or incapacity (whether legal,
physical or mental) of any party hereto occurring after the date hereof shall
affect the continued and continuing validity or enforceability of this Agreement
on such party and its successors, heirs, representatives or assigns and this
Agreement shall survive and continue in full force and effect and to be binding
on such party and its successors, heirs, representatives or assigns
notwithstanding such death, disability or incapacity. Notwithstanding the
foregoing, the Company may assign its rights to purchase any of the Basswood
Group Shares to any of its directors or officers and to a limited number of
other sophisticated investors (a "Permitted Assign"), provided that the Company
shall be obligated to purchase and pay for any of the Shares which any Permitted
Assignee agrees, but fails, to purchase and pay for at the Closing.

                  (b) Survival. All representations, warranties, covenants,
agreements and understandings made by the parties in this Agreement or pursuant
hereto shall survive the date hereof indefinitely.

                  (c) Entire Agreement; Amendment. Except for the Settlement
Agreement, this Agreement (together with any Exhibits hereto) contains the
entire understanding of the parties hereto with respect to its subject matter
and there are no representations, warranties, agreements, covenants or
undertakings that pertain to the subject matter of this Agreement other than
those expressly set forth herein. This Agreement may be amended only by a
written instrument duly executed by the parties hereto or their respective
successors or permitted assigns or, in the case of the Basswood Group Members by
their Representative (as hereinafter defined).

                  (d) No Waiver. Any waiver by any party hereto of the duty to
perform or of a breach of any obligation of another party hereto under this
Agreement shall not be effective unless it is set forth in a written instrument
signed and delivered by the party against whom the waiver is sought to be
enforced and no such written waivers shall operate as or be construed to be a
waiver of any other instance of a breach (actual or threatened) of or failure to
perform the same obligation or of any other obligation of such party under this
Agreement. The failure of a party hereto to insist upon strict adherence to any
term of this Agreement on one or more occasions shall not be considered a waiver
or course of conduct and shall not deprive that party of the right thereafter to
insist upon strict adherence to that term or any other term of this Agreement.

                  (e) Notices. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be deemed to have been
given on the day when delivered by hand, on the day when sent by telecopy and
confirmed and on the third business day after being deposited in the mail
(registered or certified, postage prepaid, return receipt requested) to the
respective parties hereto as set forth in Exhibit E to the Settlement Agreement.

                                       5
<PAGE>   6

                  (f) Governing Law. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of California,
without reference to conflicts of law principles. Any action or proceeding
brought with respect to this Agreement or the performance or non-performance by
any party hereto of its obligations under this Agreement shall be brought and
maintained exclusively in the Superior Court of the State of California in Los
Angeles County or in the Federal District Court for the Central District of
California and no party hereto shall contest the subject matter or personal
jurisdiction or the venue of such court or courts, or assert the defense of
forum nonconviens and each party agrees to accept and not challenge the adequacy
of any notice in any such action or proceeding that is given by means of
certified or registered first class mail.

                  (g) Severability. If any term, provision covenant or
restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and
effect, unless such actions would substantially impair the material benefits of
any of the parties under the remaining provisions of this Agreement.

                  (h) Basswood Group Representative. Each Basswood Group Member
hereby irrevocably appoints Matthew Lindenbaum as such Member's attorney-in-fact
and representative (the "Representative"), to act in such Member's place, stead
and name, to do any and all things and to execute any and all documents and give
and receive any and all notices or instructions in connection with this
Agreement and the transactions contemplated hereby. Notwithstanding any
provision hereof to the contrary, the Company shall be entitled to rely upon, as
being binding on each of the Basswood Group Members, any action taken by the
Representative or upon any document, notice, instruction or other writing given
or executed by the Representative, and any such act, document, notice,
instruction or other writing shall bind and shall be strictly enforceable
against each of the Basswood Group Members.

                  (i) Further Assurances. At the request of any party (a
"requesting party") to another party hereto, on or at any time after the date
hereof, such other party shall execute and deliver such instruments and
documents requested by the requesting party in order to evidence or better
effectuate, but not to enlarge, the rights of the requesting party under this
Agreement.

                  (j) Interpretation. This Agreement is the result of
arms-length bargaining between the parties and no provision of this Agreement or
any ambiguity that may be found therein, shall be construed or interpreted
against a party hereto because such party, or its counsel, was the primary
draftsman of such provision.

                  (k) Expenses and Attorneys Fees. Each party hereto shall bear
its own expenses in connection with the execution and delivery and performance
by such party of this Agreement. In the event any legal action or other
proceeding is brought for the enforcement of this Agreement, or because of an
alleged dispute, breach or default in connection with any of the provisions of
this Agreement, the prevailing party or parties shall be entitled to recover
reasonable attorneys' fees and other costs incurred in that action or
proceeding, in addition to any other relief to which it or they may be entitled.

                  (l) Joint and Several Obligations. The representations and
warranties and the covenants of the Basswood Group Members under this Agreement
shall be joint and several.

                  (m) Counterparts. This Agreement may be executed in counter
parts, each of which shall be deemed an original, but each of which together
shall constitute one and the same Agreement.

                        [SIGNATURES FOLLOW ON NEXT PAGE]

                                       6
<PAGE>   7

         IN WITNESS WHEREOF, the parties hereto have executed and delivered, or
caused to be executed and delivered, this Settlement Agreement on the date first
above written.

FOOTHILL INDEPENDENT BANCORP                 BASSWOOD FINANCIAL PARTNERS, L.P.,
a California corporation
                                             By: Basswood Partners, L.L.C.,
                                                 its General Partner

By:   /s/ DONNA MILTENBERGER                     By:  /s/ MATTHEW LINDENBAUM
      ----------------------------                    --------------------------

WHITEWOOD FINANCIAL PARTNERS, L.P.,          BASSWOOD PARTNERS, L.L.C.

By:  /s/ MATTHEW LINDENBAUM                  By:  /s/ MATTHEW LINDENBAUM
      ----------------------------                ------------------------------

BASSWOOD INTERNATIONAL FUND, INC.,           BASSWOOD CAPITAL MANAGEMENT L.L.C.,

By:  /s/ MATTHEW LINDENBAUM                  By:  /s/ MATTHEW LINDENBAUM
      ----------------------------                ------------------------------

/s/ MATTHEW LINDENBAUM                       /s/ BENNETT LINDENBAUM
----------------------------                ------------------------------
Matthew Lindenbaum                           Bennett Lindenbaum

                                       7
<PAGE>   8

                                    EXHIBIT A

<TABLE>
<CAPTION>
                                                  Shares
Name of Basswood                               Beneficially       Purchase
  Group Member                                     Owned            Price
----------------                               ------------       --------
<S>                                            <C>              <C>
Basswood Financial Partners LP,
Basswood Partners LLC, Matthew
and Bennett Lindenbaum                            417,103       $4,796,684.50

Whitewood Financial Partners, L.P.                  4,193       $   48,219.50

Basswood International Fund, Inc.                 109,733       $1,261,929.50

Bennett Lindenbaum                                    100       $    1,150.00
                                                  -------       -------------
                           TOTALS                 531,129       $6,107,983.50
                                                  =======       =============

Basswood Shares to be purchased:

         By the Company:                          430,729       $4,953,383.50
         By certain officers and directors:       100,400       $1,154,600.00
                                                  -------       -------------
                           TOTALS                 531,129       $6,107,983.50
                                                  =======       =============
</TABLE>

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