Document:

EX 10.110 SalaryContinuationAgreement_Ford

EXHIBIT 10.110

EXECUTIVE SALARY CONTINUATION AGREEMENT
This Executive Salary Continuation Agreement (the “Agreement”) is made effective April 4, 2014 (the “Effective Date”), and is entered into by and between Central Valley Community Bank (the “Bank”) and James Ford (the “Executive”), each a “Party” and together the “Parties.”
RECITALS
		
	A.
	The Executive is a valued executive of the Bank, and currently serves as the Bank’s President.

		
	B.
	The Bank’s Board of Directors (the “Board”) has determined that the Executive’s services to the Bank are valuable.  The Bank and the Executive desire to enter into this Agreement under which the Bank has agreed to make certain payments to the Executive at retirement.  

		
	C.
	The Parties intend that this Agreement shall constitute an unfunded arrangement maintained primarily to provide supplemental retirement benefits for the Executive under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  The parties further intend that this Agreement shall constitute a nonqualified deferred compensation arrangement under the Internal Revenue Code (“Code”).  The Executive is fully advised of the Bank’s financial status and has had substantial input in the design of and benefits provided under this Agreement.

AGREEMENT
In consideration of the mutual promises, covenants, and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 
I.EMPLOYMENT
The Bank agrees to employ the Executive in such capacity as the Bank may from time to time determine. The Executive will continue in the employ of the Bank in such capacity and with such duties and responsibilities as may be assigned to him, and with such compensation as may be determined from time to time by the Board.  Subject to the terms of this Agreement and any current or future employment agreement between the Bank and the Executive, either the Bank or the Executive may terminate the employment relationship at any time, for any reason or for no reason. 
II.FRINGE BENEFITS
The salary continuation benefits provided by this Agreement are granted by the Bank as a fringe benefit to the Executive and are not part of any salary reduction plan or an arrangement deferring a bonus or a salary increase. The Executive has no option to take any current payment or bonus in lieu of salary continuation benefits.
III.RETIREMENT BENEFIT AND EARLY RETIREMENT BENEFIT

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EXHIBIT 10.110

For purposes of this Section, “Retirement” and “Retire” mean that the Executive remains in the continuous employ of the Bank from the Effective Date and then retires from active employment (and his Employment Terminates) with the Bank, after September 1, 2018.
A.Retirement Benefit.
If the Executive Retires on or after September 1, 2023, the Bank shall pay the Executive an annual retirement benefit equal to One Hundred Thousand Dollars and No/100 ($100,000.00), in equal monthly installments (each of which shall be 1/12 of the annual benefit), for a period of one hundred twenty (120) months, commencing on the first day of the month following the date of the Executive’s Retirement.  Beginning with the thirteenth month that benefits are paid, and continuing thereafter until paid in full, the annual benefit shall be increased each year by three percent (3%) from the previous year’s benefit to account for cost of living increases.  In the event of the Executive’s death prior to the date all payments have been made, Section IV of this Agreement shall control. Any benefit payable under this Section shall be subject to reduction or elimination as provided in Section VII.
B.Early Retirement Benefit.
If the Executive Retires on or after September 1, 2018, and prior to September 1, 2023, the Bank shall pay the Executive an annual early retirement benefit, based on the month of retirement, equal to:
	
																			
	Retirement Month
	Ret. Year
	Annual Amount
	 
	 
	Retirement Month
	Ret. Year
	Annual Amount
	 
	 
	Retirement Month
	Ret. Year
	Annual Amount

	September
	2018
	

	$50,000
	

	 
	 
	May
	2020
	

	$66,667
	

	 
	 
	January
	2022
	

	$83,333
	

	October
	2018
	

	$50,833
	

	 
	 
	June
	2020
	

	$67,500
	

	 
	 
	February
	2022
	

	$84,167
	

	November
	2018
	

	$51,667
	

	 
	 
	July
	2020
	

	$68,333
	

	 
	 
	March
	2022
	

	$85,000
	

	December
	2018
	

	$52,500
	

	 
	 
	August
	2020
	

	$69,167
	

	 
	 
	April
	2022
	

	$85,833
	

	January
	2019
	

	$53,333
	

	 
	 
	September
	2020
	

	$70,000
	

	 
	 
	May
	2022
	

	$86,667
	

	February
	2019
	

	$54,167
	

	 
	 
	October
	2020
	

	$70,833
	

	 
	 
	June
	2022
	

	$87,500
	

	March
	2019
	

	$55,000
	

	 
	 
	November
	2020
	

	$71,667
	

	 
	 
	July
	2022
	

	$88,333
	

	April
	2019
	

	$55,833
	

	 
	 
	December
	2020
	

	$72,500
	

	 
	 
	August
	2022
	

	$89,167
	

	May
	2019
	

	$56,667
	

	 
	 
	January
	2021
	

	$73,333
	

	 
	 
	September
	2022
	

	$90,000
	

	June
	2019
	

	$57,500
	

	 
	 
	February
	2021
	

	$74,167
	

	 
	 
	October
	2022
	

	$90,833
	

	July
	2019
	

	$58,333
	

	 
	 
	March
	2021
	

	$75,000
	

	 
	 
	November
	2022
	

	$91,667
	

	August
	2019
	

	$59,167
	

	 
	 
	April
	2021
	

	$75,833
	

	 
	 
	December
	2022
	

	$92,500
	

	September
	2019
	

	$60,000
	

	 
	 
	May
	2021
	

	$76,667
	

	 
	 
	January
	2023
	

	$93,333
	

	October
	2019
	

	$60,833
	

	 
	 
	June
	2021
	

	$77,500
	

	 
	 
	February
	2023
	

	$94,166
	

	November
	2019
	

	$61,667
	

	 
	 
	July
	2021
	

	$78,333
	

	 
	 
	March
	2023
	

	$95,000
	

	December
	2019
	

	$62,500
	

	 
	 
	August
	2021
	

	$79,167
	

	 
	 
	April
	2023
	

	$95,833
	

	January
	2020
	

	$63,333
	

	 
	 
	September
	2021
	

	$80,000
	

	 
	 
	May
	2023
	

	$96,666
	

	February
	2020
	

	$64,167
	

	 
	 
	October
	2021
	

	$80,833
	

	 
	 
	June
	2023
	

	$97,500
	

	March
	2020
	

	$65,000
	

	 
	 
	November
	2021
	

	$81,667
	

	 
	 
	July
	2023
	

	$98,333
	

	April
	2020
	

	$65,833
	

	 
	 
	December
	2021
	

	$82,500
	

	 
	 
	August
	2023
	

	$99,166
	

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	September
	2023
	

	$100,000
	

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EXHIBIT 10.110

The early retirement benefit shall be paid in lieu of any other benefit under this Agreement, in equal monthly installments (each of which shall be 1/12 of the annual benefit) for a period of one hundred twenty (120) months, commencing on the first day of the month following the date of the Executive’s Retirement.  Beginning with the thirteenth month that benefits are paid, and continuing thereafter until paid in full, the annual benefit shall be increased each year by three percent (3%) from the previous year’s benefit to account for cost of living increases.  In the event of the Executive’s death prior to the date all payments have been made, Section IV of this Agreement shall control.  Any benefit payable under this Section shall be subject to reduction or elimination as provided in Section VII.  If the Executive Retires before September 1, 2018, this Agreement shall immediately terminate and the Executive shall not be entitled to receive any benefits under this Agreement. 
IV.DEATH BENEFIT
In the event of the Executive’s death, no benefits shall be payable hereunder and this Agreement shall automatically terminate.  If the Executive is already in pay status at the time of his death, no further payments will be made, and his right to any additional payments will terminate.  Notwithstanding the foregoing, in the event that the Policy(ies) described in that certain Life Insurance Endorsement Method Split Dollar Agreement between the Bank and the Executive of even date herewith (the “Split Dollar Agreement”) is/are surrendered, lapse or are otherwise terminated by the Bank, and the Bank does not replace such Policy(ies) with other comparable life insurance, such that no death benefits are payable under the Split Dollar Agreement, then in the event of the Executive’s death, the Executive’s beneficiaries under the Split Dollar Agreement shall be entitled to the payment of the benefits, if any, described in Section VI(A) or VI(B) of the Split Dollar Agreement, as applicable, in lieu of any other benefit under this Agreement.
V.TERMINATION OF EMPLOYMENT AND DISABILITY 
“Termination of Employment” or “Employment Terminates” means that the Executive’s employment with the Bank is terminated and the Executive actually separates from service with the Bank and does not continue in his prior capacity.  Termination of Employment does not include the Executive’s military leave, sick leave or other bona fide leave of absence (such as temporary employment with the government) if the period of leave does not exceed six months, or if longer, so long as his right to reemployment with the Bank is provided either in contract or by statute.  Notwithstanding the foregoing, Executive’s employment shall be deemed to have terminated, and Executive shall have suffered an Employment Termination, when the Parties reasonably anticipate that Executive will have a permanent reduction in the level of bona fide services provided to the Bank, to a level of service that is less than fifty percent (50%) of the average level of bona fide services provided by Executive to the Bank in the immediately preceding thirty-six (36) month period. Notwithstanding anything to the contrary, the terms “Termination of Employment” and “Employment Terminates” shall be construed in accordance with Code Section 409A, together with regulations and guidance promulgated thereunder, as amended from time to time (collectively referred to as “Code Section 409A”).

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EXHIBIT 10.110

A.    Voluntary Termination of Employment.
In the event of the Executive’s Voluntary Termination prior to Retirement or prior to a Change In Control, this Agreement shall immediately terminate and the Executive shall not be entitled to receive any benefits under this Agreement.  “Voluntary Termination” means the Executive’s Employment Terminates prior to Retirement by Executive’s voluntary action.
B.    Involuntary Termination of Employment.
In the event of the Executive’s Involuntary Termination on or after September 1, 2018, and prior to Retirement, the Bank shall pay the Executive an involuntary termination benefit, in lieu of any other benefit under this Agreement.  The involuntary termination benefit shall be an amount equal to the present value (determined as of the first day of the month in which Involuntary Termination occurs) of the annual early retirement benefit that Executive would have received for ten (10) years had Executive Retired on the first day of the month in which Involuntary Termination occurs, as described in Section III(B) above.  The involuntary termination benefit shall be paid in a lump sum, determined by using the assumptions set forth in Section IX(K) and the payment shall be made on the date the Executive attains age sixty-five (65).  In the event of the Executive’s Involuntary Termination prior to September 1, 2018, no benefits shall be payable under this Agreement.  “Involuntary Termination” means the Executive’s Employment Terminates by action of the Bank prior to Retirement, and such Termination of Employment is not For Cause.  Any benefit payable under this Section shall be subject to reduction or elimination as provided in Section VII.
C.    Termination of Employment For Cause.
In the event the Executive’s Employment Terminates For Cause prior to Retirement, then this Agreement shall immediately terminate and the Executive shall forfeit all benefits and shall not be entitled to receive any benefits under this Agreement.  “For Cause” shall mean any of the following actions by the Executive that result in an adverse effect on the Bank: (1) gross negligence or gross neglect; (2) the commission of a felony or gross misdemeanor involving moral turpitude, fraud, or dishonesty; (3) the willful violation of any law, rule, or regulation (other than a traffic violation or similar offense); (4) an intentional failure to perform stated duties; or (5) a breach of fiduciary duty involving personal profit.  If a dispute arises as to whether Termination of Employment was For Cause, such dispute shall be resolved by arbitration as set forth in this Agreement.  
D.    Disability.
In the event the Executive becomes Disabled on or after September 1, 2018, and prior to Retirement or Termination of Employment, and Executive’s Employment Terminates because of such Disability, the Bank shall pay the Executive an annual disability benefit in an amount determined by calculating the annual amount payable if the Executive’s Accrual Balance, determined as of the first day of the month in which the Executive’s Employment Terminates due to Disability, is paid over ten (10) years with interest accruals.  The Accrual Balance shall be calculated on a monthly basis as described in Section IV above.

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EXHIBIT 10.110

The disability benefit shall be paid in lieu of any other benefit under this Agreement, in equal monthly installments (each of which shall be 1/12 of the annual benefit) for a period of one hundred twenty (120) months, commencing on the first day of the month following the date of the Executive’s Termination of Employment.  Beginning with the thirteenth month that benefits are paid, and continuing thereafter until paid in full, the annual benefit shall be increased each year by three percent (3%) from the previous year’s benefit to account for cost of living increases.  In the event of the Executive’s death prior to the date all payments have been made, Section IV of this Agreement shall control. Any benefit payable under this Section shall be subject to reduction or elimination as provided in Section VII.
“Disabled” or “Disability” shall mean that the Executive (1) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (2) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering Bank employees.  If there is a dispute regarding whether the Executive is Disabled, such dispute shall be resolved by a mutually agreeable physician. Such resolution shall be binding upon all Parties to this Agreement.  The determination of Disability shall be made in a uniform and nondiscriminatory manner applied to all Bank employees under similar circumstances.  Notwithstanding anything to the contrary, the term “Disability” shall be construed in accordance with Code Section 409A.  
VI.CHANGE IN CONTROL
Upon a Change In Control, the Bank shall pay the Executive a lump sum payment equal to the present value (calculated using the assumptions set forth in Section IX(K), determined as of the date of payment) of one hundred percent (100%) of the benefit that the Executive would have received under Section III(A) had the Executive been employed by the Bank until September 1, 2023.  The lump sum payment shall be made on the first day of the month following the date of Change In Control.  The payment of a lump sum pursuant to this Section shall be in lieu of any other benefit under this Agreement.  Any benefit payable under this Section shall be subject to reduction or elimination as provided in Section VII.
A “Change In Control” shall be deemed to have occurred on the date that any one person, or more than one person acting as a group, acquires ownership of stock of the Bank that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Bank.  However, if any one person or more than one person acting as a group, is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Bank, the acquisition of additional stock by the same person or persons will not be considered to cause a Change In Control.  Further, an increase in the percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction in which the Bank acquires its stock in exchange for property will not be considered to cause a Change In Control.  Transfers of Bank stock on account of death, gift, transfers between family members or transfers to a qualified retirement plan maintained by the Bank shall not be considered 

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EXHIBIT 10.110

in determining whether there has been a Change In Control.  For purposes of this Section, the term “Bank” shall include any holding company, meaning any corporation that is a majority shareholder of the Bank.  A “Change In Control” shall be interpreted in accordance with the definition of “Change in Ownership” under Code Section 409A, and to the extent that an event or series of events does not constitute a “Change in Ownership” under Code Section 409A, the event or series of events will not constitute a “Change In Control” under this Agreement.
VII.LEGAL AND REGULATORY RESTRICTIONS ON BENEFIT PAYMENTS
Benefit payments under this Agreement are subject to any restrictions imposed by applicable state or federal laws, rules, regulations, or orders or directives issued by regulatory authorities (referred to as “Payment Restrictions”).  Bank shall not be required to make any payment to Executive or take any other action under this Agreement if such payment or action will or reasonably could result in any violation of any Payment Restrictions, including but not limited to the specific Payment Restrictions described in this subsections (A) and (B) below.
		
	A.
	Restrictions on Contracts and Payments for Insured Depository Institutions in Troubled Status.

The parties acknowledge and agree that while the restrictions contained in the Federal Deposit Insurance Act, Section 18(k) [12 U.S.C. §1828(k)], relating to contracts for and payment of executive compensation and benefits by insured depository institutions in “troubled” condition, do not currently apply to the Bank or the Executive, such provisions could apply in the future.
B.    Delayed Payments to Certain Executives Under Code Section 409A.
If Executive is a Specified Employee as of the date of Termination of Employment, payments under this Agreement may not be made before the date that is six months after Termination of Employment (or, if earlier than the end of the six-month period, the date of death of the Executive).  Payments to which the Executive would otherwise be entitled during the first six months following Termination of Employment, but for this Six-Month Delay provision, shall be accumulated and paid on the first day of the seventh month following Termination of Employment.  
(i)Specified Employee.  
Executive shall be deemed to be a “Specified Employee” if, as of the date of Executive’s Termination of Employment, Executive is a Key Employee of the Bank and the Bank (or its holding company, Central Valley Community Bancorp) has stock which is publicly traded on an established securities market or otherwise. 
(ii)Key Employee.  
If Executive meets each of the requirements of Internal Revenue Code Section 416(i)(1)(A)(i), (ii), and (iii) (applied in accordance with the regulations thereunder and disregarding Section 416(i)(5)) at any time during a twelve month period ending on December 31 (the “Specified Employee Identification Date”), then Executive shall be treated as a Key Employee for the entire twelve 

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EXHIBIT 10.110

month period beginning on the following April 1.  Such April 1 date shall be the “Specified Employee Effective Date” for purposes of Section 409A. 
C.    Clawback.  
In the event that any Payment Restrictions or any contractual arrangement with or required by a regulatory authority require Bank to seek or demand repayment or return of any payments made to Executive under this Agreement for any reason, Executive agrees to repay to Bank the aggregate amount of such payments no later than thirty (30) days following Executive’s receipt of a written notice from Bank indicating that payments received by Executive under this Agreement are subject to recapture or clawback.  
VIII.RESTRICTIONS ON FUNDING
The Bank shall have no obligation to set aside, earmark or entrust any fund or money with which to pay its obligations under this Agreement. To the extent the Executive or any successor in interest becomes eligible to receive benefits under this Agreement, he or she shall be and remain a general creditor of the Bank in the same manner as any other creditor having a general claim for unpaid compensation.  The Bank reserves the absolute right, in its sole discretion, to purchase life insurance in conjunction with the benefits provided under this Agreement.  The Bank further reserves the absolute right, in its sole discretion, to establish a grantor trust which may be used to hold Bank assets to be maintained as reserves against the Bank’s unfunded, unsecured obligations hereunder.  Such reserves shall at all times be subject to the claims of the Bank’s creditors.  If a trust or other vehicle is established, the Bank’s obligations hereunder shall be reduced to the extent assets are utilized to meet its obligations.  Any trust established by the Bank and the assets held in trust shall conform in substance to the terms of the model trust described in Revenue Procedure 92-64, 1992-33 IRB 11 (8-17-92).  The Bank reserves the absolute right, in its sole discretion, to terminate any life insurance purchased or any grantor trust established for these purposes at any time, in whole or in part.  At no time shall the Executive have any lien or right, title or interest in or to any specific investment or to any assets of the Bank.  If the Bank elects to invest in a life insurance, disability or annuity policy upon the life of the Executive, then the Executive shall assist the Bank by freely submitting to a physical exam and supplying such additional information necessary to obtain such insurance or annuities.
IX.MISCELLANEOUS
A.    Prohibition Against Alienation or Assignment.
The Executive, his surviving spouse, and any other beneficiary(ies) under this Agreement shall not have any power or right to transfer, assign, anticipate, hypothecate, mortgage, commute, modify or otherwise encumber in advance any benefit which may become payable hereunder.  No benefits shall be subject to seizure for the payment of any debts, judgments, alimony or separate maintenance owed by the Executive or the Executive’s beneficiary(ies), or be transferable by operation of law in the event of bankruptcy, insolvency or otherwise. In the event the Executive or any beneficiary attempts to assign, commute, hypothecate, transfer or dispose of the benefits which may become payable hereunder, the Bank’s liabilities shall forthwith cease and terminate.

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EXHIBIT 10.110

B.    Binding Obligation of the Bank and Any Successor in Interest.
The Bank shall not merge or consolidate into or with another bank or sell substantially all of its assets to another bank, firm or person until such bank, firm or person agrees, in writing, to assume and discharge the Bank’s duties and obligations under this Agreement. This Agreement shall be binding upon the Parties, their successors, beneficiaries, heirs and personal representatives.
C.    Amendment or Revocation.
It is agreed by and between the Parties that, during the lifetime of the Executive, this Agreement may be amended or revoked at any time or times, in whole or in part, by the mutual written consent of the Executive and the Bank.
D.    Gender.
Whenever in this Agreement words are used in the masculine, feminine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter gender, whenever they should so apply.
E.    Effect on Other Bank Benefit Plans.
Except as provided in Section VII, nothing contained in this Agreement shall affect the Executive’s rights or shall create any rights to participate in or be covered by any qualified or non-qualified pension, profit-sharing, group, bonus or other supplemental compensation or fringe benefit plan sponsored or offered by the Bank.
F.    Headings.
Headings and subheadings in this Agreement are inserted for reference and convenience only and shall not be deemed a part of this Agreement.
G.    Applicable Law.
The validity and interpretation of this Agreement shall be governed by applicable federal law and the laws of the State of California.
H.    Partial Invalidity.
If any term, provision, covenant, or condition of this Agreement is determined by an arbitrator or a court to be invalid, void, or unenforceable, such determination shall not render any other term, provision, covenant, or condition invalid, void, or unenforceable, and the Agreement shall remain in full force and effect notwithstanding such partial invalidity.

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EXHIBIT 10.110

I.    Not a Contract of Employment.
This Agreement shall not be deemed to constitute a contract of employment between the Parties, nor shall any provision hereof restrict the right of the Bank to discharge the Executive, or restrict the right of the Executive to terminate employment. 
J.    Effective Date.
This Agreement shall be effective on the Effective Date specified above.
K.    Present Value.
All present value calculations under this Agreement shall be based on the following discount rate:
		
	Discount Rate:
	The discount rate as used in the APB 12 calculations for this Agreement.  The initial rate shall be four and 55/100 percent (4.55%).  

L.    Contradiction in Terms of Agreement and Exhibits.
If there is a contradiction in the terms of this Agreement and the exhibits attached hereto with respect to the benefits payable, then the terms set forth in the Agreement shall control.
X.ERISA PROVISIONS
A.    Named Fiduciary and Plan Administrator.
The “Named Fiduciary and Plan Administrator” of this Agreement shall be Central Valley Community Bank.  The Board, in its discretion, may appoint one or more individuals to serve in this capacity.  As Named Fiduciary and Plan Administrator, the Bank shall be responsible for the management, control and administration of the Agreement.  The Named Fiduciary may delegate to others certain aspects of the management and operation, including the employment of advisors and the delegation of ministerial duties to qualified individuals.
B.    Claims Procedure and Arbitration.
In the event a dispute arises with respect to benefits under this Agreement and the disputed benefits are not paid, then the Executive or his beneficiaries may make a written claim to the Named Fiduciary and Plan Administrator named above within sixty (60) days from the date payments are refused.  The Named Fiduciary and Plan Administrator shall review the written claim and, if the claim is denied in whole or in part, they shall respond in writing within sixty (60) days of receipt of such claim, stating specific reasons for the denial, and providing references to the provisions of this Agreement upon which the denial is based and any additional material or information necessary to perfect the claim.  Such written notice shall further indicate the additional steps to be taken by 

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EXHIBIT 10.110

claimant(s) if a further review of the claim is desired.  A claim shall be deemed denied if the Named Fiduciary and Plan Administrator fail to take any action within the prescribed sixty (60) day period.
If claimants desire a second review they shall notify the Named Fiduciary and Plan Administrator in writing within sixty (60) days of the initial claim denial.  Claimants may review this Agreement or any documents relating thereto and submit any written issues and comments that may be appropriate.  In their sole discretion, the Named Fiduciary and Plan Administrator shall then review the second claim and provide a written decision within sixty (60) days of receipt of such claim.  This decision shall likewise state the specific reasons for the decision and shall include reference to specific provisions of this Agreement upon which the decision is based.
If claimants continue to dispute the benefit denial based upon completed performance of this Agreement or the meaning and effect of the terms and conditions thereof, then claimants may submit the dispute to an arbitrator for final arbitration.  The arbitrator shall be selected by mutual agreement of the Bank and the claimants.  The arbitrator shall operate under any generally recognized set of arbitration rules.  The Parties agree that they and their heirs, personal representatives, successors and assigns shall be bound by the decision of such arbitrator with respect to any controversy properly submitted to it for determination.
Where a dispute arises as to benefits forfeited as a result of the Bank’s discharge of the Executive For Cause, such dispute shall likewise be submitted to arbitration as described above and the Parties agree to be bound by the arbitrator’s decision.
		
	XI.
	TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE LAW, RULES OR REGULATIONS

The Bank is entering into this Agreement upon the assumption that certain existing tax laws, rules and regulations will continue in effect in their current form.  If any such assumptions should change and the change has a detrimental effect on this Agreement, then the Bank reserves the right to terminate or modify this Agreement.  This paragraph shall become null and void effective immediately upon a Change In Control.
XII.CODE SECTION 280G
Notwithstanding any provision of this Agreement to the contrary, if all or a portion of any benefit payment under this Agreement, alone or together with any other compensation or benefit, will be a non-deductible expense to the Bank by reason of Code Section 280G, the Bank shall reduce the benefits payable under this Agreement as necessary to avoid the application of Section 280G.  The Bank shall have the power to reduce benefits payable under this Agreement to zero, if necessary.
		
	XIII.
	USE OF TRADE SECRETS AND SOLICITATION AFTER TERMINATION OF EMPLOYMENT

In further consideration of this Agreement, Executive agrees not to use Bank’s trade secrets and confidential information to compete with Bank at any time, directly or indirectly.  As further consideration, for a period of one (1) year following termination of his employment, Executive 

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EXHIBIT 10.110

agrees not to solicit, directly or indirectly, (A) any employees of Bank or consultants to Bank who are located within the state of California to terminate such employment or consulting arrangement or to work for anyone in competition with Bank; and (B) any Bank customers who are known to Executive as a result of his employment with Bank.  In the event that Executive breaches his obligations under this section, Bank shall have the right, in its sole discretion, to not pay any benefit due Executive under this Agreement.
XIV.PROHIBITION AGAINST ACCELERATION
Notwithstanding anything to the contrary, neither the time nor the scheduling of payments under this Agreement may be accelerated unless such acceleration is permissible under Code Section 409A, other applicable law and the terms of this Agreement.  
IN WITNESS WHEREOF, the Parties acknowledge that each has carefully read this Agreement and executed the original on the date written below and that, upon execution, each has received a conforming copy.

	
		
	BANK:

CENTRAL VALLEY COMMUNITY BANK

By:    /s/Daniel J. Doyle      
   Daniel J. Doyle
   Chief Executive Officer

Dated:      April 4, 2014         
	EXECUTIVE:

JAMES FORD 

/s/James M. Ford            
James  M. Ford

Dated:      April 7, 2014         

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EXHIBIT 10.110

EXHIBIT A

BENEFICIARY DESIGNATION

I, ______________________________, designate the following as beneficiary of benefits under the Executive Salary Continuation Agreement payable following my death:

Primary Beneficiary:                                

Contingent Beneficiary:                                

		
	NOTE:
	To name a trust as beneficiary, please provide the name of the trustee and the exact date of the trust agreement.  

I understand that I may change these beneficiary designations by filing a new written designation with Central Valley Community Bank.  I further understand that the designations will be automatically revoked if the beneficiary predeceases me, or, if I have named my spouse as beneficiary, in the event of the dissolution of our marriage.  

Dated:                , 2014                                    
[Executive]

ACCEPTED by Central Valley Community Bank

Dated:                , 2014        By:                              
Daniel Doyle
Chief Executive Officer

{00262394.DOC /3 }    12EX 10.111 Ford_SplitDollarAgreement

EXHIBIT 10.111

LIFE INSURANCE SPLIT DOLLAR
ENDORSEMENT METHOD AGREEMENT 
Insurers and Policy Numbers:            39114453
Bank:                        Central Valley Community Bank
Insured:                    James Ford
Relationship of Insured to Bank:        President
This Life Insurance Split Dollar Endorsement Method Agreement (the "Agreement") is made effective as of April 4, 2014, and is entered into by and between Central Valley Community Bank (the "Bank") and James Ford (the “Insured”), each a “Party” and together the “Parties.”    

AGREEMENT

The respective rights and duties of the Bank and the Insured in the above-referenced policy shall be pursuant to the terms set forth below:
		
	I.
	DEFINITIONS

Refer to the policy contract for the definition of all terms in this Agreement.  
		
	II.
	POLICY TITLE AND OWNERSHIP

Title and ownership shall reside in the Bank for its use and for the use of the Insured in accordance with this Agreement. The Bank alone may, to the extent of its interest, exercise the right to borrow or withdraw on the policy cash values. Where the Bank and the Insured (or assignee, with the consent of the Insured) mutually agree to exercise the right to increase the coverage under the subject Split Dollar policy, then, in such event, the rights, duties and benefits of the parties to such increased coverage shall continue to be subject to the terms of this Agreement.
		
	III.
	BENEFICIARY DESIGNATION RIGHTS

The Insured (or assignee) shall have the right and power to designate a beneficiary or beneficiaries to receive the Insured's share of the proceeds payable upon the death of the Insured, and to elect and change a payment option for such beneficiary, subject to any right or interest the Bank may have in such proceeds, as provided in this Agreement.

		
	IV.
	PREMIUM PAYMENT METHOD

{00269227.DOC / }    B-1

The Bank intends to pay an amount equal to the planned premiums and any other premium payments that might become necessary to keep the policy in force.
		
	V.
	TAXABLE BENEFIT

Annually the Insured will receive a taxable benefit equal to the assumed cost of insurance as required by the Internal Revenue Service. The Bank (or its administrator) will report to the Insured the amount of imputed income each year on Form W-2 or its equivalent.
		
	VI.
	DIVISION OF DEATH PROCEEDS

Subject to Paragraphs VII and IX herein, the division of the death proceeds of the policy is as follows:
		
	A.
	Should the Insured be employed by the Bank at the time of death, the Insured’s beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to a lump sum payment equal to the present value of the Normal Retirement Benefit under that certain Executive Salary Continuation Agreement between the Bank and Insured dated of even date herewith (the "Salary Continuation Agreement") assuming that the payments would begin on the date of death and continue for one hundred and twenty months following such Retirement (as those terms are defined in the Salary Continuation Agreement), or one hundred percent (100%) of the total proceeds of the policy, whichever amount is less.  Present value calculations shall be made using the assumptions set forth in Section X(K) of the Salary Continuation Agreement.  

		
	B.
	Should the Insured be retired from the Bank at the time of death, the Insured’s beneficiary(ies), designated in accordance with Paragraph III, shall be entitled to a lump sum payment equal to the present value of one hundred percent (100%) of the sum of all remaining payments that would have been made under the Salary Continuation Agreement, but for the Insured's death, or one hundred percent (100%) of the total proceeds of the policy, whichever amount is less.  Present value calculations shall be made using the assumptions set forth in Section X(K) of the Salary Continuation Agreement.  

		
	C.
	The Bank shall be entitled to the remainder of such proceeds.

		
	D.
	The Bank and the Insured (or assignees) shall share in any interest due on the death proceeds on a pro rata basis as the proceeds due each respectively bears to the total proceeds, excluding any such interest.

		
	VII.
	DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

During the Insured's life, the Bank shall at all times be entitled to an amount equal to the policy’s cash value, as that term is defined in the policy contract, less any policy loans and unpaid interest or cash withdrawals previously incurred by the Bank and any applicable 

{00269227.DOC / }    2

surrender charges.  Such cash value shall be determined as of the date of surrender.  Notwithstanding the foregoing, upon Insured's death, the proceeds of the policy shall first be used to satisfy the obligations to Insured's beneficiaries set forth in Paragraph VI.  
		
	VIII.
	RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS

In the event the policy involves an endowment or annuity element, the Bank’s right and interest in any endowment proceeds or annuity benefits, on expiration of the deferment period, shall be determined under the provisions of this Agreement by regarding such endowment proceeds or the commuted value of such annuity benefits as the policy's cash value. Such endowment proceeds or annuity benefits shall be considered to be like death proceeds for the purposes of division under this Agreement.
		
	IX.
	TERMINATION OF AGREEMENT

This Agreement shall terminate upon the occurrence of any one of the following:
		
	1.
	The Insured shall be discharged from employment with the Bank for cause. The term for “cause” shall mean any of the following that result in an adverse effect on the Bank: (i) gross negligence or gross neglect; (ii) the commission of a felony or gross misdemeanor involving moral turpitude, fraud, or dishonesty; (iii) the willful violation of any law, rule, or regulation (other than a traffic violation or similar offense); (iv) an intentional failure to perform stated duties; or (v) a breach of fiduciary duty involving personal profit; or

		
	2.
	Surrender, lapse, or other termination of the Policy by the Bank.

Upon such termination, the Insured (or assignee) shall have a fifteen (15) day option to receive from the Bank an absolute assignment of the policy in consideration of a cash payment to the Bank, whereupon this Agreement shall terminate. Such cash payment referred to above shall be the greater of:
(a)    The Bank’s share of the cash value of the policy on the date of                 such assignment, as defined in this Agreement; or
(b)    The amount of the premiums which have been paid by the Bank                 prior to the date of such assignment, plus interest.
If within said fifteen (15) day period, the Insured fails to exercise the option, fails to tender the required cash payment, or dies, then the option shall terminate, and the Insured (or assignee) agrees that all of the Insured’s rights, interest and claims in the policy shall terminate as of the date of the termination of this Agreement.
The Insured expressly agrees that this Agreement shall constitute sufficient written notice to the Insured of the Insured’s option to receive an absolute assignment of the policy as set forth herein.

{00269227.DOC / }    3

Except as provided above, this Agreement shall terminate upon distribution of the death benefit proceeds in accordance with Paragraph VI above.
		
	X.
	INSURED’S OR ASSIGNEE’S ASSIGNMENT RIGHTS

The Insured may not, without the written consent of the Bank, assign to any individual, trust or other organization, any right, title or interest in the subject policy nor any rights, options, privileges or duties created under this Agreement.
		
	XI.
	AGREEMENT BINDING UPON THE PARTIES

This Agreement shall bind the Insured and the Bank, their heirs, successors, personal representatives and assigns.
		
	XII.
	ERISA PROVISIONS

The following provisions are part of this Agreement and are intended to meet the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”):
		
	A.
	Named Fiduciary and Plan Administrator.

The “Named Fiduciary and Plan Administrator” of this Life Insurance Split Dollar Endorsement Method Agreement shall be Central Valley Community Bank.  As Named Fiduciary and Plan Administrator, the Bank shall be responsible for the management, control, and administration of this Agreement as established herein. The Named Fiduciary may delegate to others certain management and operational responsibilities, including the employment of advisors and the delegation of any ministerial duties to qualified individuals.
		
	B.
	Funding Policy.

The funding policy for this Agreement shall be to maintain the subject policy in force by paying, when due, all premiums required.
		
	C.
	Basis of Payment of Benefits.

Direct payment by the Insurer is the basis of payment of benefits under this Agreement, with those benefits in turn being based on the payment of premiums as provided in this Agreement.
		
	D.
	Claim Procedures.

Claim forms or claim information as to the subject policy can be obtained by contacting EquiasAlliance at 901-756-0870. When the Named Fiduciary has a claim which may be covered under the provisions described in the insurance policy, he or she should contact the office named above, and either complete a claim form and forward it to an authorized representative of the Insurer or advise the Named 

{00269227.DOC / }    4

Fiduciary what further requirements are necessary.  The Insurer will evaluate and make a decision as to payment. If the claim is payable, a benefit check will be issued in accordance with the terms of this Agreement.
In the event that a claim is not eligible under the policy, the Insurer will notify the Named Fiduciary of the denial pursuant to the requirements under the terms of the policy. If the Named Fiduciary is dissatisfied with the denial of the claim and wishes to contest such claim denial, he or she should contact the office named above and they will assist in making inquiry to the Insurer. All objections to the Insurer’s actions should be in writing and submitted to the office named above for transmittal to the Insurer.
		
	XIII.
	GENDER

Whenever in this Agreement words are used in the masculine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter gender, whenever they should so apply.
		
	XIV.
	INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT

The Insurer shall not be deemed a party to this Agreement, but will respect the rights of the parties as herein developed upon receiving an executed copy of this Agreement. Payment or other performance in accordance with the policy provisions shall fully discharge the Insurer for any and all liability.
		
	XV.
	AMENDMENT OR REVOCATION

It is agreed by and between the parties hereto that, during the lifetime of the Insured, this Agreement may be amended or revoked at any time or times, in whole or in part, by the mutual written consent of the Insured and the Bank, provided however that following a Change in Control of the Bank (as that term is defined in the Salary Continuation Agreement), this Agreement may only be modified by the mutual consent of the Bank and Insured.
		
	XVI.
	EFFECTIVE DATE

The Effective Date of this Agreement shall be the date first stated above.
		
	XVII.
	SEVERABILITY AND INTERPRETATION

If a provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall nonetheless be enforceable according to their terms.  Further, in the event that any provision is held to be overbroad as written, such provision shall be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to law and enforced as amended.
		
	XVIII.
	APPLICABLE LAW

{00269227.DOC / }    5

The validity and interpretation of this Agreement shall be governed by applicable federal law and the laws of the State of California.
		
	XIX.
	USE OF TRADE SECRETS AND SOLICITATION AFTER TERMINATION OF EMPLOYMENT

In further consideration of this Agreement, Executive agrees not to use Bank’s trade secrets and confidential information to compete with Bank at any time, directly or indirectly.  As further consideration, for a period of one (1) year following termination of his employment, Executive agrees not to solicit, directly or indirectly, (A) any employees of Bank or consultants to Bank who are located within the state of California to terminate such employment or consulting arrangement or to work for anyone in competition with Bank; and (B) any Bank customers who are known to Executive as a result of his employment with Bank.  In the event that Executive breaches his obligations under this section, Bank shall have the right, in its sole discretion, to not pay any benefit due Executive under this Agreement.

Executed at Fresno, California on April 4,2014. 

	
		
	BANK:

CENTRAL VALLEY COMMUNITY BANK
   

By: /s/Daniel J. Doyle                         
Name: Daniel J. Doyle   
Title: CEO
	INSURED:

JAMES FORD

/s/ James M. Ford   
James M. Ford   

{00269227.DOC / }    6

BENEFICIARY DESIGNATION FORM
FOR LIFE INSURANCE SPLIT DOLLAR
ENDORSEMENT METHOD AGREEMENT

PRIMARY DESIGNATION:
Name                Address                Relationship    
                                                    
                                                    
                                                    

SECONDARY (CONTINGENT) DESIGNATION:
                                                    
                                                    
                                                    

All sums payable under the Life Insurance Split Dollar Endorsement Method Agreement by reason of my death shall be paid to the Primary Beneficiary, if he or she survives me, and if no Primary Beneficiary shall survive me, then to the Secondary (Contingent) Beneficiary.

                                                
 
James Ford                            Date

{00269227.DOC / }    7

EXHIBIT A
INSURED EMPLOYED BY BANK AT DEATH

	
		
	Age of Insured at the 
Time of Death 
	Amount of Death Benefit, or 100% 
of the proceeds, whichever amount is less

	64
	$

	65
	 

	66
	 

	67
	 

	68
	 

	69
	 

	70
	 

	71
	 

	72
	 

	73
	 

	74
	 

	75
	 

	76
	 

	77
	 

	78
	 

	79 or older
	$0.00 and this Agreement automatically terminates

{00269227.DOC / }    1

EXHIBIT B
INSURED NOT EMPLOYED BY BANK AT DEATH

	
		
	Age of Insured at the 
Time of Death 
	Amount of Death Benefit, or 100% 
of the proceeds, whichever amount is less

	64
	 

	65
	 

	66
	 

	67
	 

	68
	 

	69
	 

	70
	 

	71
	 

	72
	 

	73
	 

	74
	 

	75
	 

	76
	 

	77
	 

	78
	 

	79 or older
	$0.00 and this Agreement automatically terminates

{00269227.DOC / }    2

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