Document:

Amended and Restated Stock Incentive Plan

 Exhibit 10.10 
  
 1st CENTENNIAL BANCORP 
  
 2001 Stock
Incentive Plan 
 as Amended and Restated 
 March 19, 2004 
  
 Section 1. Purpose

  
 The purpose of the 1st Centennial Bancorp 2001 Stock Incentive Plan, as amended (the “Plan”) is to (i) encourage selected employees and directors of 1st Centennial Bancorp (the “Company”) and its subsidiaries to acquire a proprietary and vested interest in the growth
and performance of the Company; (ii) generate an increased incentive to contribute to the Company’s future success and prosperity, thus enhancing the value of the Company for the benefit of shareholders; and (iii) enhance the ability of the
Company and its subsidiaries to attract and retain individuals of exceptional talent upon whom, in large measure, the sustained progress, growth and profitability of the Company depend. 
  
 Section 2. Definitions 
  
 For purposes of the Plan, the following terms have the following meanings: 
  
 (a) “Award” means any award under the Plan, including any Option, Tandem SAR, Stand-Alone SAR, Restricted Stock
Award, or share of Phantom Stock. 
  
 (b) “Award
Agreement” means, with respect to each Award, the signed written agreement between the Company and the Participant setting forth the terms and conditions of the Award. 
  
 (c) “Board” means Board of Directors of the Company. 
  
 (d) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute.

  
 (e) “Committee” means the Personnel and Compensation
Committee of 1st Centennial Bancorp and 1st Centennial Bank. 
  
 (f) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any successor statute. 
  
 (g) “Fair Market Value” means as of any given date (a) if the Stock
is listed on any established stock exchange or a national market system, either the closing sale price for the Stock or the closing bid if no sales were reported, or the average of the bid and ask prices, as selected by the Committee in its
discretion, as quoted on such system or exchange, as reported in The Wall Street Journal; or (b) in the absence of an established market for the Stock, the fair market value of the Stock as determined by the Committee or the Board in good faith.

 (h) “Holder” means the holder of a Restricted Stock Award granted under Section 7. 

 
 (i) “Incentive Option” means any Option intended to be and
designated as an “incentive stock option” within the meaning of Section 422 of the Code. 
  
 (j) “Issue Date” shall mean the date established by the Board or the Committee on which Certificates representing shares of Restricted Stock
shall be issued by the Company pursuant to the terms of Section 7(b). 
  
 (k) “Nonqualified Stock Option” means any Option that is not an Incentive Option. 
  
 (l) “Option” means an option granted under Section 6. 
  

(m) “Optionee” means the holder of an Option granted under Section 6. 
  
 (n) “Participant” means an employee or director who is selected by the Board or the Committee to receive an Award
under the Plan. 
  
 (o) A share of “Phantom Stock” shall
mean the right, granted pursuant to Section 10, to receive in cash the Fair Market Value of a share of Stock. 
  
 (p) “Restricted Stock” or “Restricted Stock Award” means an Award of Stock subject to restrictions, as more fully described in Section
7. 
  
 (q) “Restriction Period” means the period
determined by the Board or the Committee under Section 7(b). 
  
 (r) “Rule 16b-3” means Rule 16b-3 under Section 16(b) of the Exchange Act, as amended from time to time, and any successor rule. 
  
 (s) “Stand-Alone SAR” shall mean a stock appreciation right granted pursuant to Section 9, which is not related to any Option. 
  
 (t) “Stock” means the Common Stock, no par value, of the Company,
and any successor security. 
  
 (u) “Tandem SAR” shall
mean a stock appreciation right granted pursuant to Section 8, which is related to an Option. 
  
 (v) “Terminating Event” has the meaning set forth in Section 11(a). 
  
 (w) “Termination” means, for purposes of the Plan, with respect to a Participant, that (a) if the Participant is a director of the Company, he
or she has ceased to be, for any reason, a director and (b) if the Participant is an employee, he or she has ceased to be, for any reason, employed by the Company or a subsidiary. 
  
 (x) “Termination for Cause” in the case of an employee, shall mean termination for malfeasance or gross
misfeasance in the performance of duties, conviction of illegal activity in connection therewith, any conduct seriously detrimental to the interests of the Company or a 
  

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 subsidiary corporation, or removal pursuant to the exercise of regulatory authority by the Board of Governors of the
Federal Reserve System (the “FRB”) or any applicable bank supervisory agency; and, in any event, the determination of the Board of Directors with respect thereto shall be final and conclusive. In the case of a director, Termination for
Cause shall mean removal pursuant to Sections 302 or 304 of the California Corporations Code or removal pursuant to the exercise of regulatory authority by the FRB or any applicable bank supervisory agency. 
  
 (y) “Vesting Date” means, for an Option or a portion of an Option,
the first date on which the Option or such portion may be exercised by the Optionee and, for shares of Restricted Stock, the date on which the shares cease to be forfeitable and become freely transferable shares in the hands of the Participant.

  
 Section 3. Administration 
  
 (a) General. The Plan shall be administered by the Committee with
respect to (i) approving Option grants and Restricted Stock or other Awards to the Company’s “Named Executive Officers” as that term is defined in applicable SEC regulations; (ii) modifying or canceling existing grants or awards to
Named Executive Officers; or (iii) imposing limitations, restrictions and conditions upon any such grant or award as the Committee deems necessary or advisable, unless the Board, in its discretion shall elect to grant or modify any awards to Named
Executive Officers which are not intended to be exempt compensation pursuant to Section 162(m) of the Code. The members of the Committee shall at all times (i) meet the independence requirements of the Nasdaq Stock Market, Inc.; (ii) qualify as
“non-employee directors” as defined in Section 16 of the Exchange Act; and (iii) qualify as “outside directors” under Section 162(m) of the Code. In connection with the administration of the Plan, the Committee, to the extent
authorized, shall have the powers possessed by the Board. The Board shall administer the Plan in all other respects, unless the Board in its discretion shall elect to delegate such administration to the Committee with respect to such other aspects
of the Plan. Nothing contained herein shall prevent the Board of Directors from delegating to the Committee full power and authority over the administration of the Plan. In addition, the Board or the Committee may, in its discretion, delegate to the
Chief Executive Officer and/or the Chief Financial Officer, authority to grant stock options or other awards to officers and employees who are neither executive officers nor directors of the Company or its subsidiaries, subject to such limitations
or conditions on such authority as the Board or the Committee may impose. As used throughout this Plan with respect to the grant of any Awards, the phrase “the Board or the Committee” shall be deemed to include, where appropriate such
officers as may have been granted authority to grant Awards pursuant to this paragraph. 
  
 Any action of the Board of Directors or the Committee with respect to administration of the Plan shall be taken pursuant to a majority vote of its members; provided, however, that with respect to action by the Board
of Directors in granting an option or other award to an individual director, such action must be authorized by the required number of directors without counting the interested director, who shall abstain as to any vote on his or her option or award.
An interested director may be counted in determining the presence of a quorum at a meeting of the Board of Directors where such action will be taken. 
  

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 (b) Authority. The Board or the Committee, as appropriate pursuant to Section 3(a), shall grant
Awards to directors and eligible employees. In particular and without limitation, the Board or the Committee, subject to the terms of the Plan, shall: 
  
 (i) Select the directors, officers and other employees to whom Awards may be granted; 
  
 (ii) determine whether and to what extent Awards are to be granted under the Plan; 
  
 (iii) determine the number of shares to be covered by each Award granted
under the Plan; and 
  
 (iv) determine the terms and conditions of
any Award granted under the Plan based upon factors determined by the Board or the Committee. 
  
 (c) Board and Committee Determinations Binding. Subject to the express provisions of the Plan, the Board (or the Committee, if authorized) shall have the authority to construe and interpret the Plan, any Award
and any Award Agreement; to define the terms used therein; to prescribe, amend, and rescind rules and regulations relating to administration of the Plan, to determine the duration and purposes of leaves of absence which may be granted to
Participants without constituting a termination of their employment for purposes of the Plan; and to make all other determinations necessary or advisable for administration of the Plan, including, without limitation, compliance with Rule 16b-3. Any
determination made by the Board or the Committee pursuant to the provisions of the Plan with respect to any Award shall be made in its sole discretion at the time of the grant of the Award or, unless in contravention of any express term of the Plan
or Award, at any later time. Determinations of the Board (or the Committee, if authorized) on matters referred to in this section shall be final and conclusive, and shall be binding on all persons, including the Company and Participants. 

 
 Section 4. Stock Subject to Plan 
  
 (a) Shares Available for Awards. The total number of shares of Stock
reserved and available for issuance pursuant to Awards under this Plan shall be 450,684 shares (30% of the number of shares of the Company’s stock issued and outstanding as of March 19, 2004), including 170,030 shares which were previously
subject to Options granted under the Company’s 1990 Stock Option Plan, and were transferred to this Plan on February 20, 2002. Such shares may consist, in whole or in part, of authorized and unissued shares or treasury shares or shares
reacquired in private transactions or open market purchases, but all shares issued under the Plan, regardless of source, shall be counted against the 450,684 share limitation. If any Option terminates or expires without being exercised in full or if
any shares of Stock subject to a Restricted Stock Award are forfeited, or if an Award otherwise terminates without a payment being made to the Participant in the form of Stock, the shares issuable under such Option or Award shall again be available
for issuance in connection with Awards. Any Award under this Plan shall be governed by the terms of the Plan and any applicable Award Agreement. 
  
 (b) Adjustments. In the event of any merger, reorganization, consolidation, recapitalization, stock dividend, stock split or other change in
corporate structure affecting the 
  

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 Stock without receipt of consideration by the Company, such substitution or adjustments shall be made in the aggregate
number of shares of Stock reserved for issuance under the Plan, in the number and exercise price of shares subject to outstanding Options, and in the number of shares subject to other outstanding Awards, as may be determined to be appropriate by the
Board or the Committee, in its sole discretion; provided, however, that the number of shares subject to any Award shall always be a whole number. 
  
 (c) Individual Limitation. The Company may not grant Awards under the Plan for more than 150,000 shares to any one Participant in any one fiscal
year, subject to adjustment from time to time as provided in Section 4(b) above. Determinations under the preceding sentence shall be made in a manner that is consistent with Section 162(m) of the Code and regulations promulgated thereunder. The
provisions of this Section 4(c) shall not apply in any circumstance with respect to which the Board or the Committee determines that compliance with Section 162(m) of the Code is not necessary. 
  
 Section 5. Eligibility 
  
 Awards may be granted to all salaried employees, including officers and directors, and non-employee directors of the Company
and its subsidiaries. However, directors of the Company and its subsidiary corporations who are not also salaried officers or employees of the Company or a subsidiary corporation are not eligible to receive Incentive Options under the Plan, but only
other types of Awards. 
  
 Section 6. Stock Options 
  
 (a) Types. Any Option granted under the Plan shall be in such form as
the Board or Committee may from time to time approve. The Board or the Committee shall have the authority to grant to any Participant Incentive Options, Nonqualified Stock Options or both types of Options. 
  
 (b) Incentive Options. Incentive Options may be granted only to
salaried employees of the Company or a Subsidiary. Any portion of an Option that is not designated as, or does not qualify as, an Incentive Option shall constitute a Nonqualified Stock Option. 
  
 (c) Terms and Conditions. Options granted under the Plan shall be
subject to the following terms and conditions: 
  
 (i) Option
Term. Each Option and all rights or obligations thereunder shall expire on such date as the Board or the Committee may determine, but not later than ten (10) years from the date such Option is granted, and shall be subject to earlier termination
as provided elsewhere in the Plan. As to any Incentive Option granted to an Optionee who, immediately before the option is granted, owns beneficially more than ten percent (10%) of the outstanding stock of the Company (whether acquired upon exercise
of Options or otherwise), such option must not be exercisable by its terms after five (5) years from the date of its grant. 
  
 (ii) Grant Date. The time an Option is granted, sometimes referred to as the grant date, shall be the day of the action of the Board or the
Committee described in Section 3(a) hereof; provided, however, that if appropriate resolutions of the Board or the Committee indicate that an Option is to be granted as of and on some future date, the time such Option is granted shall 
  

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 be such future date. If action by the Board or the Committee is taken by the unanimous written consent of its members,
such action shall be deemed to be at the time the last Board or Committee member signs the consent. 
  
 (iii) Exercise Price. The exercise price per share of stock subject to each Option shall be determined by the Board or the Committee but shall not
be less than one hundred percent (100%) of the fair market value of such stock at the time such Option is granted. As to any Incentive Option granted to an Optionee who, immediately before the Option is granted, owns beneficially more than ten
percent (10%) of the outstanding stock of the Company, the purchase price must be at least one hundred ten percent (110%) of the fair market value of the stock at the time when such Option is granted. The fair market value of such stock shall be
determined in accordance with any reasonable valuation method, including the valuation methods described in Treas. Reg. § 20.2031-2. The purchase price of any shares purchased shall be paid in full in cash at the time of each such purchase.

  
 (iv) Exercisability. Each Option shall be exercisable
in such installments, which need not be equal, and upon such conditions as the Board or the Committee shall determine; provided, however, that if an Optionee shall not in any given installment period purchase all of the shares which such Optionee is
entitled to purchase in such installment period, such Optionee’s right to purchase any shares not purchased in such installment period shall continue until the expiration of such Option. No Option or installment thereof shall be exercisable
except with respect to whole shares, and fractional share interests shall be disregarded except that they may be accumulated in accordance with the next preceding sentence. 
  
 (v) Limit on Exercisability. The aggregate fair market value (determined as of the time the Option is granted) of the
stock for which any salaried officer or employee may be granted Incentive Options which are first exercisable during any one calendar year (under all Incentive Stock Option Plans of the Company and its subsidiaries) shall not exceed One
Hundred Thousand Dollars ($100,000). 
  
 (vi) Method of
Exercise; Payment. Options may be exercised by ten (10) days written notice delivered to the Company stating the number of shares with respect to which the Option is being exercised, together with cash in the amount of the purchase price for
such shares. No fewer than ten (10) shares may be purchased at one time unless the number purchased is the total number which may be purchased under the Option. 
  

Options may also be exercised by delivering to the Company (i) an exercise notice instructing the Company to deliver the certificates for the shares
purchased to a designated brokerage firm which shall sell the stock in the market as soon as the Option is exercised; and (ii) a copy of irrevocable instructions delivered to the brokerage firm to sell the shares acquired upon exercise of the Option
and to deliver to the Company from the sale proceeds sufficient cash to pay the exercise price and applicable withholding taxes arising as a result of the exercise, with the balance of the sales proceeds, if any, after payment of any broker’s
commission, credited to the Optionee’s brokerage account. 
  
 The Company may require any Optionee, or any person to whom an Option is transferred under Section 6(c)(viii) hereof, as a condition of exercising any such Option, to give written 
  

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 assurances satisfactory to the Company stating that such person is acquiring the stock subject to the Option for such
person’s own account and not with any present intention of selling or otherwise distributing the stock. The requirement of providing written assurances, and any assurances given pursuant to the requirement, shall be inoperative if (i) the
shares to be issued upon the exercise of the Option have been registered under a then currently effective registration statement under the Securities Act of 1933, as amended, or (ii) a determination is made by counsel for the Company that such
written assurances are not required in the circumstances under the then applicable federal securities laws. 
  
 (vii) Cessation of Employment; Disability. Except as provided in Subsections 6(c)(i) above and 6(c)(vii) below, if an Optionee ceases to be
employed by or to serve as a director of the Company or a subsidiary corporation for any reason other than death or disability, such Optionee’s Option shall expire ninety (90) days thereafter, and during such period after such Optionee ceases
to be an employee or director, such Option shall be exercisable only as to those shares with respect to which installments, if any, had accrued as of the date on which the Optionee ceased to be employed by or ceased to serve as a director of the
Company or such subsidiary corporation. Except as provided in Subsections 6(c)(i) above 6(c)(viii) below, if an Optionee ceases to be employed by or ceases to serve as a director of the Company or a subsidiary corporation by reason of disability
(within the meaning of Section 22(e)(3) of the Code), such Optionee’s Option shall expire not later than one (1) year thereafter, and during such period after such Optionee ceases to be an employee or director such Option shall be exercisable
only as to those shares with respect to which installments, if any, had accrued as of the date on which the Optionee ceased to be employed by or ceased to serve as a director of the Company or such subsidiary corporation. 
  
 (viii) Termination of Employment for Cause. If an Optionee’s
employment by or service as a director of the Company or a subsidiary corporation is terminated for Cause, such Optionee’s Option shall expire immediately; provided, however, that the Board of Directors may, in its sole discretion, within
thirty (30) days of such termination, waive the expiration of the Option by giving written notice of such waiver to the Optionee at such Optionee’s last known address. In the event of such waiver, the Optionee may exercise the Option only to
such extent, for such time, and upon such terms and conditions as if such Optionee had ceased to be employed by or ceased to serve as a director of the Company or such subsidiary corporation upon the date of such termination for a reason other than
Cause, disability, or death. 
  
 (ix) Death of Optionee.
Except as provided in Subsection 6(c)(i) above, if any Optionee dies while employed by or serving as a director of the Company or a subsidiary corporation or during the 90-day or one-year period referred to in Subsection 6(c)(vi) above, such
Optionee’s Option shall expire one (1) year after the date of such death. After such death but before such expiration, the persons to whom the Optionee’s rights under the Option shall have passed by Will or by the applicable laws of
descent and distribution shall have the right to exercise such Option to the extent that installments, if any, had accrued as of the date on which the Optionee ceased to be employed by or ceased to serve as a director of the Company or such
subsidiary corporation. 
  

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 Section 7. Restricted Stock 
  
 (a) General. Restricted Stock Awards may be issued hereunder to Participants, for no cash consideration or for such
amount as the Board or the Committee in its discretion shall determine, either alone or in addition to other Awards granted under the Plan. The provisions of Restricted Stock Awards need not be the same with respect to each recipient. The Committee
may provide upon grant of a Restricted Stock Award that any shares of Restricted Stock that may be purchased by the Holder in cash and are subsequently forfeited by the Holder prior to the Vesting Date therefor shall be reacquired by the Company at
the purchase price originally paid therefor by the Holder, if applicable. 
  
 (b) Issue Date and Vesting Date. At the time of the grant of a Restricted Stock Award, the Board or the Committee shall establish an Issue Date or Issue Dates and a Vesting Date or Vesting Dates with respect to
such shares. The Board or the Committee may provide upon grant of a Restricted Stock Award that different numbers or portions of the shares subject to the Award shall have different Vesting Dates. The Board or the Committee also may provide that the
Vesting Dates will be accelerated upon the subsequent occurrence of a specified event (e.g., early retirement of the Holder) as the Board or the Committee may specify. The Board or the Committee also may establish upon grant of a Restricted Stock
Award that some or all of the shares subject thereto shall be subject after the Vesting Date to additional restrictions upon transfer or sale, although not to forfeiture. 
  
 (c) Issuance of Certificates. Reasonably promptly after the Issue Date with respect to shares of Restricted Stock,
the Company shall cause to be issued a stock certificate, registered in the name of the Participant to whom such shares were granted, evidencing such shares; provided, that the Company shall not cause such a stock certificate to be issued unless it
has received a stock power duly endorsed in blank with respect to such shares. Each such stock certificate shall bear the following legend: 
  
 “The transferability of this certificate and the shares of stock represented hereby are subject to the restrictions, terms and conditions (including
forfeiture provisions and restrictions against transfer) contained in the 1st Centennial Bancorp 2001 Stock
Incentive Plan and related Award Agreement, and such rules, regulations and interpretations as 1st Centennial
Bancorp’s Board of Directors or Compensation Committee may adopt. Copies of the Plan, Award Agreement and rules, regulations and interpretations, if any, are on file at the principal executive office of 1st Centennial Bancorp, 218 East State Street, Redlands, California 92373.” 
  
 Such legend shall not be removed until such shares vest pursuant to the terms hereof. 
  
 Each certificate issued pursuant to this Section 7 (c) together with the
stock powers relating to the shares of Restricted Stock evidenced by such certificate, shall be held by the Company unless the Board or the Committee determines otherwise. 
  
 (d) Consequences of Vesting. Upon the vesting of a share of Restricted Stock pursuant to the terms of the Plan and
the applicable Award Agreement, the restrictions on transfer described in Section 7(c) shall cease to apply to such share. Reasonably promptly after a share of Restricted Stock vests, the Company shall cause to be delivered to the Participant to
whom such 
  

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 shares were granted, a certificate evidencing such share, free of the legend set forth in Section 7(c). Notwithstanding
the foregoing, such share still may be subject to restrictions on transfer as a result of applicable securities laws. 
  
 (e) Dividends. If and to the extent the Board or the Committee so specifies upon grant, the Holder of shares of Restricted Stock shall be entitled
to receive from the Company, after the grant date and until the Vesting Date, dividends or other distributions with respect to the shares identical or comparable in financial value to the dividends and other distributions that would have been
received by the Holder had the shares not been subject to the restrictions on Restricted Stock imposed under the Plan, and the Holder shall not be required to return any such distributions to the Company in the event of forfeiture of the Restricted
Stock; provided that any such dividends or distribution payable to the Holder that constitute Stock or other equity securities of the Company shall be issued in the same manner and subject to the same restrictions and conditions as apply to the
shares of Restricted Stock as to which such dividends and distributions are paid. The Board or the Committee in its discretion may require that any dividends paid on shares of Restricted Stock shall be held in escrow until all restrictions on such
shares have lapsed. 
  
 (f) Voting Rights. If and to the
extent the Board or the Committee so specifies upon grant, the Holder of shares of Restricted Stock shall be entitled to vote or direct the voting of such shares after the grant date and until the Vesting Date. 
  
 (g) Termination. Except to the extent otherwise provided in the Award
Agreement and pursuant to this section, in the event of a Termination of employment or directorship during the Restriction Period, all shares still subject to restriction shall be forfeited by the Participant. If the recipient has paid cash for the
Award, the stock will be repurchased at the same price originally paid by the Participant. In the event that the Company requires such a return of shares, it also shall have the right to require the return of all dividends paid on such shares,
whether by termination of any escrow arrangement under which such dividends are held or otherwise. 
  
 Section 8. Tandem SARs 
  
 The Board or the Committee may grant in connection with any Option granted hereunder one or more Tandem SARs relating to a number of shares of Stock less than or equal to the number of shares of Stock subject to the related Option. A Tandem
SAR may be granted at the same time as, or, in the case of a Non-Qualified Stock Option, subsequent to the time that its related Option is granted. 
  
 (a) Benefit Upon Exercise. The exercise of a Tandem SAR with respect to any number of shares of Stock shall entitle the Participant to a payment,
for each such share, equal to the excess of (i) the Fair Market Value of a share of Stock on the exercise date over (ii) the option exercise price of the related Option. Such payment shall be made as soon as practicable after the effective date of
such exercise. The Board or the Committee shall specify at the time of grant that the value of the SAR shall be paid in cash, in Stock reserved under the Plan, or a combination of both, or that the Participant can choose the method of payment at the
time of exercise. 
  

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 (b) Term and Exercise of Tandem SARs. 
  
 (i) A Tandem SAR shall be exercisable only if and to the extent that its
related Option is exercisable. 
  
 (ii) The exercise of a Tandem
SAR with respect to a number of shares of Stock shall cause the immediate and automatic cancellation of its related Option with respect to an equal number of shares. The exercise of an Option, or the cancellation, termination or expiration of an
Option (other than pursuant to this Section 8(b)(ii)), with respect to a number of shares of Stock shall cause the automatic and immediate cancellation of any related Tandem SARs to the extent that the number of shares of Stock remaining subject to
such Option is less than the number of shares subject to such Tandem SARs. 
  
 Tandem SARs shall be cancelled in the order in which they became exercisable. 
  
 (iii) A Tandem SAR may be exercised for all or any portion of the shares as to which it is exercisable; provided, that no partial exercise of a Tandem SAR
shall be for an aggregate exercise price of the related Option of less than $1,000. The partial exercise of a Tandem SAR shall not cause the expiration, termination or cancellation of the remaining portion thereof. 
  
 (iv) No Tandem SAR shall be assignable or transferable otherwise than
together with its related Option. 
  
 (v) A Tandem SAR shall be
exercised by delivering notice to the Company’s principal office, to the attention of its Secretary (or the Secretary’s designee), no less than two (2) business days in advance of the effective date of the proposed exercise. Such notice
shall be accompanied by the applicable Award Agreement, shall specify the number of shares of Stock with respect to which the Tandem SAR is being exercised and the effective date of the proposed exercise and shall be signed by the Participant or
other person then having the right to exercise the Option to which the Tandem SAR is related. Such notice may be withdrawn at any time prior to the close of business on the business day immediately preceding the effective date of the proposed
exercise. 
  
 (c) Effect of Termination of Employment. The
provisions set forth in Section 6(vi) through (viii) with respect to the exercise of Options following cessation or termination of employment or service as a director shall apply as well to the exercise of Tandem SARs. 
  
 Section 9. Stand-Alone SARs 
  
 (a) Exercise Price. The exercise price per share of a Stand-Alone SAR
shall be determined by the Board or the Committee at the time of grant, but shall in no event be less than the Fair Market Value of a share of Stock on the date of grant. 
  
 (b) Benefit Upon Exercise. The exercise of a Stand-Alone SAR with respect to any number of shares of Stock shall
entitle the Participant to a payment, for each such share, equal to the excess of (i) the Fair Market Value of a share of Stock on the exercise date over (ii) the exercise price of the Stand-Alone SAR. Such payments shall be made as soon as
practicable. The Board or the Committee shall specify at the time of grant that the value of the SAR shall be paid in cash, in Stock reserved under the Plan, or a combination of both, or that the Participant can choose the method of payment at the
time of exercise. 
  

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 (c) Term and Exercise of Stand-Alone SARs. 
  
 (i) A Stand-Alone SAR shall become cumulatively exercisable as provided in
the applicable Award Agreement. The Board or the Committee shall determine the vesting schedule and expiration date of each Stand-Alone SAR. 
  
 (ii) A Stand-Alone SAR may be exercised for all or any portion of the shares as to which it is exercisable; provided, that no partial exercise of a
Stand-Alone SAR shall be for an aggregate exercise price of less than $1,000. The partial exercise of a Stand-Alone SAR shall not cause the expiration, termination or cancellation of the remaining portion thereof. 
  
 (iii) A Stand-Alone SAR shall be exercised by delivering notice to the
Company’s principal office, to the attention of its Secretary (or the Secretary’s designee), no less than two (2) business days in advance of the effective date of the proposed exercise. Such notice shall be accompanied by the applicable
Plan Agreement, shall specify the number of shares of Stock with respect to which the Stand-Alone SAR is being exercised, and the effective date of the proposed exercise, and shall be signed by the Participant. The Participant may withdraw such
notice at any time prior to the close of business on the business day immediately preceding the effective date of the proposed exercise. 
  
 (d) Effect of Termination of Employment. The provisions set forth in Section 6(vi) through (viii) with respect to the exercise of Options following
cessation or termination of employment or service as a director shall apply as well to the exercise of Stand-Alone SARs. 
  
 Section 10. Phantom Stock 
  
 (a) Vesting Date. At the time of the grant of shares of Phantom Stock, the Board or the Committee shall establish a Vesting Date or Vesting Dates
with respect to such shares. The Board or the Committee may divide such shares into classes and assign a different Vesting Date for each class. Provided that all conditions to the vesting of a share of Phantom Stock imposed pursuant to Section 10(c)
are satisfied, and except as provided in Section 10(d), upon the occurrence of the Vesting Date with respect to a share of Phantom Stock, such share shall vest. 
  

(b) Benefit Upon Vesting. Upon the vesting of a share of Phantom Stock, the Participant shall be entitled to receive in cash, within 30 days of
the date on which such share vests, an amount equal to the sum of (i) the Fair Market Value of a share of Stock on the date on which such share of Phantom Stock vests and (ii) the aggregate amount of cash dividends paid with respect to a share of
Stock during the period commencing on the date on which the share of Phantom Stock was granted and terminating on the date on which such share vests. 
  
 (c) Conditions to Vesting. At the time of the grant of shares of Phantom Stock, the Board or the Committee may impose such restrictions or
conditions to the vesting of such shares as it, in its absolute discretion, deems appropriate. By way of example and not by way of limitation, the Board or the Committee may require, as a condition to the vesting of any class or classes of shares of
Phantom Stock, that the Participant or the Company achieves such performance goals as the Board or the Committee may specify. 
  

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 (d) Effect of Termination of Employment. Unless the applicable Award Agreement or the Board or the
Committee provides otherwise, shares of Phantom Stock that have not vested, together with any dividends credited on such shares, shall be forfeited upon the Participant’s termination of employment for any reason. 
  
 Section 11. Terminating Events 
  
 (a) Definition of a “Terminating Event.” For purposes of
Section 11(b), a “Terminating Event” means: (i) a reorganization, merger, or consolidation of the Company with one or more corporations as a result of which the Company will not be the surviving corporation, (ii) a sale of substantially
all the assets and property of the Company to another person, corporation or entity, or (iii) a “change in control,” i.e., any other single transaction involving the Company (such as a tender offer) where there is a change in ownership of
at least twenty-five percent (25%) of the Company’s outstanding shares, unless such change in ownership results from (i) a transfer of shares to another corporation in exchange for at least eighty percent (80%) control of that corporation, or
(ii) the issuance of additional shares of stock by the Company in a public stock offering or similar transaction. 
  
 (b) Impact of Event. In the event of a “Terminating Event” as defined in Section 11(a), any surviving corporation or entity or acquiring
corporation or entity, or affiliate of such corporation or entity, may assume any Options, Restricted Stock Awards or any other Awards outstanding under the Plan or may substitute similar awards for those outstanding under the Plan. In the event any
surviving corporation or entity or acquiring corporation or entity in a Terminating Event does not assume such Options or Awards or does not substitute similar Options or other Awards for those outstanding under the Plan, then (i) the vesting of
such Options or other Awards outstanding under the Plan shall be accelerated and made fully exercisable and all restrictions thereon shall lapse ten (10) days prior to the closing of the Terminating Event; and (ii) upon the closing of the
Terminating Event, any Options outstanding under the Plan shall be terminated if not exercised prior to the closing, unless the Board of Directors in its sole discretion determines prior to the effective date of the Terminating Event that all
outstanding Options and the Plan itself should continue in full force and effect. In the case of such a determination by the Board of Directors, or in the event that any pending Terminating Event does not occur, the Plan and all outstanding Options
and other Awards thereunder shall continue in force with all original vesting schedules in effect. 
  
 (c) Notice to Participants of Terminating Event. Not less than thirty (30) days prior to a Terminating Event, the Board of Directors or the
Committee shall notify each Participant of the pendancy of the Terminating Event. With respect to Holders of Restricted Stock or Participants with Stand-Alone SARs or Phantom Stock, the notice shall simply inform such Participants of the pendancy of
the Terminating Event and of the fact that the restrictions on their Restricted Stock will lapse, or that they will become entitled to their payments pursuant to their Stand-Alone SARs or Phantom Stock, on the closing of the Terminating Event. In
the case of Optionees, the notice shall inform such Optionees that their Options shall, notwithstanding the provisions of Sections 5(c)(iv) hereof, become exercisable in full and not only as to those shares with respect to which 
  

 12 

 installments, if any, have then accrued, subject, however, to earlier expiration or termination as provided elsewhere in
the Plan, and further subject to the condition that the Terminating Event in fact occurs. Optionees shall then be entitled to exercise any Options or portions thereof commencing on the tenth (10th) day, and ending on the third (3rd) day, prior to
the Terminating Event, or at such other times as may be specified by the Board of Directors in connection with the Terminating Event. In the case of Participants with Tandem SARs, the notice shall inform such Participant of the need to choose
between the exercise of the SAR or the underlying Option and of the fact that any remaining unexercised portion of the Option or the Tandem SAR shall lapse if not exercised within the required time period. 
  
 Section 12. Acceleration of Options or other Awards. 
  
 Notwithstanding the provisions of Sections 6(c)(iv), 7(b), 8(b)(i) or
9(c)(i) hereof or any provision to the contrary contained in any Award Agreement, the Board of Directors (or the Committee), in its sole discretion, may accelerate the vesting of all or any Award then outstanding. The decision by the Board of
Directors to accelerate an Award or to decline to accelerate an Award shall be final. In the event of the acceleration of Options or SARs as the result of a decision by the Board of Directors pursuant to this Section 12, each outstanding Option or
SAR so accelerated shall be exercisable for a period from and after the date of such acceleration and upon such other terms and conditions as the Board of Directors may determine in its sole discretion, provided that such terms and conditions (other
than terms and conditions relating solely to the acceleration of exercisability and the related termination of an Option or SAR) may not adversely affect the rights of any Participant without the consent of the Participant so adversely affected. Any
outstanding Option or SAR which has not been exercised by the holder at the end of such period shall terminate automatically at that time. 
  
 Section 13. General Provisions 
  
 (a) Award Grants. Any Award may be granted either alone or in addition to other Awards granted under the Plan. Subject to the terms and
restrictions set forth elsewhere in the Plan, the Board or the Committee shall determine the consideration, if any, payable by the Participant for any Award and, in addition to those set forth in the Plan, any other terms and conditions of the
Awards. The Board or the Committee may condition the grant or payment of any Award upon the attainment of specified performance goals or such other factors or criteria, including vesting based on continued service on the Board or employment, as the
Board or the Committee shall determine. Performance objectives may vary from Participant to Participant and among groups of Participants and shall be based upon such Company, subsidiary, group or division factors or criteria as the Committee may
deem appropriate, including, but not limited to, earnings per share or return on equity. The other provisions of Awards also need not be the same with respect to each recipient. Unless specified otherwise in the Plan or by the Board or the
Committee, the date of grant of an Award shall be the date of action by the Board or the Committee to grant the Award. 
  
 (b) Award Agreement. As soon as practicable after the date of an Award grant, the Company and the Participant shall enter into a written Award
Agreement identifying the date of grant, and specifying the terms and conditions of the Award. Options and SARs are not exercisable until after execution of the Award Agreement by the Company and the Participant, but a delay in execution of the
Award Agreement shall not affect the validity of the Option or SAR grant. 
  

 13 

 (c) Certificates; Transfer Restrictions. All certificates for shares of Stock or other securities
delivered under the Plan shall be subject to such stock transfer orders, legends and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the SEC, any market in which the Stock is then traded
and any applicable federal, state or foreign securities law. 
  
 (d) Tax Withholding. The Company shall be entitled to withhold, and shall withhold, the minimum amount of any federal, state or local tax attributable to any shares deliverable or cash payments due under the Plan, whether upon
exercise of an Option, expiration of a Restriction Period for Restricted Stock or occurrence of any other event concerning an Award requiring such withholding, after giving the person entitled to receive such delivery notice as far in advance of
such event as practicable. The Company may defer making delivery as to any such shares, if any such tax is payable, until indemnified to its satisfaction. Such withholding obligation of the Company may be satisfied by any reasonable method,
including, if the Board or the Committee so provides, reducing the number of shares otherwise deliverable to or on behalf of the Holder on such Taxable Event by a number of shares of Stock having a fair value, based on the Fair Market Value of the
Stock on the date of such Taxable Event, equal to the amount of such withholding obligation. With the approval of the Board or the Committee, which it shall have sole discretion to grant, a Participant may satisfy the foregoing requirement by
electing to have the Company withhold from delivery shares of Stock having a value equal to the amount of tax to be withheld. Such shares shall be valued at their Fair Market Value on the date as of which the amount of tax to be withheld is
determined (the “Tax Date”). Fractional share amounts shall be settled in cash. Such a withholding election may be made with respect to all or any portion of the shares to be delivered pursuant to an Award. To the extent required for such
a withholding of Stock to qualify for the exemption available under Rule 16b-3, such an election by a grantee whose transactions in Stock are subject to Section 16(b) of the Exchange Act shall be: (i) subject to the approval of the Board or the
Committee in its sole discretion; (ii) irrevocable; (iii) made no sooner than six months after the grant of the award with respect to which the election is made; and (iv) made at least six months prior to the Tax Date unless such withholding
election is in connection with exercise of an Option and both the election and the exercise occur prior to the Tax Date in a “window period” of ten business days beginning on the third day following release of the Company’s quarterly
or annual summary statement of sales and earnings. 
  
 (e)
Notification of Election Under Section 83(b) of the Code. If any Participant shall, in connection with the acquisition of shares of Restricted Stock under the Plan, make the election permitted under Section 83(b) of the Code (i.e., an
election to include in gross income in the year of transfer the amounts specified in Section 83(b)), such Participant shall notify the Company of such election within ten days of filing notice of the election with the Internal Revenue Service, in
addition to any filing and notification required pursuant to regulations issued under the authority of Section 83(b). 
  
 (f) Transferability. No Award shall be assignable or otherwise transferable by the Participant other than by will or by the laws of descent and
distribution. During the life of a Participant, an Award shall be exercisable, and any elections with respect to an Award may be made, only by the Participant or the Participant’s guardian or legal representative. 
  

 14 

 (g) Adjustment of Awards; Waivers. The Board or the Committee may adjust the performance goals and
measurements applicable to Awards (i) to take into account changes in law and accounting and tax rules, (ii) to make such adjustments as the Board or the Committee deems necessary or appropriate to reflect the inclusion or exclusion of the impact of
extraordinary or unusual items, events or circumstances in order to avoid windfalls or hardships, and (iii) to make such adjustments as the Board or the Committee deems necessary or appropriate to reflect any material changes in business conditions.
In the event of hardship or other special circumstances of a Participant and otherwise in its discretion, the Board or the Committee may waive in whole or in part any or all restrictions, conditions, vesting, or forfeiture with respect to any Award
granted to such Participant. 
  
 (h) Non-Competition. The
Board or the Committee may condition its discretionary waiver of a forfeiture, the acceleration of vesting at the time of Termination of a Participant holding any unexercised or unearned Award, the waiver of restrictions on any Award, or the
extension of the expiration period to a period not longer than that provided by the Plan upon such Participant’s agreement (and compliance with such agreement) (i) not to engage in any business or activity competitive with any business or
activity conducted by the Company and (ii) to be available for consultations at the request of the Company’s management, all on such terms and conditions (including conditions in addition to (i) and (ii)) as the Committee may determine.

  
 (i) Regulatory Compliance. Each Award under the Plan
shall be subject to the condition that, if at any time the Board or the Committee shall determine that (i) the listing, registration or qualification of the shares of Stock upon any securities exchange or for trading in any securities market or
under any state or federal law, (ii) the consent or approval of any government or regulatory body or (iii) an agreement by the Participant with respect thereto, is necessary or desirable, then such Award shall not be consummated in whole or in part
unless such listing, registration, qualification, consent, approval or agreement shall have been effected or obtained free of any conditions not acceptable to the Board or the Committee. 
  
 (j) Rights as Shareholder. Unless the Plan, the Board or the Committee expressly specifies otherwise, an Optionee
shall have no rights as a shareholder with respect to any shares covered by an Option until the stock certificates representing the shares are actually delivered to the Optionee. Except as specified in Section 4(b), no adjustment shall be made for
dividends or other rights for which the record date is prior to the date the certificates are delivered. The rights of Holders shall be as specified in their Award Agreements, as determined by the Board or the Committee in accordance with Section 7
hereof. 
  
 (k) Beneficiary Designation. The Board or the
Committee, in its discretion, may establish procedures for a Participant to designate a beneficiary to whom any amounts payable in the event of the Participant’s death are to be paid. 
  
 (l) Additional Plans. Nothing contained in the Plan shall prevent the
Company or a subsidiary from adopting other or additional compensation arrangements for its directors and employees. 
  

 15 

 (m) No Employment Rights; No Right to Directorship. Neither the adoption of this Plan nor the
grant of any Award hereunder shall (i) confer upon any employee any right to continued employment nor shall it interfere in any way with the right of the Company or a subsidiary to terminate the employment of any employee at any time; or (ii) confer
upon any Participant any right with respect to continuation of the Participant’s membership on the Board or interfere in any way with provisions in the Company’s Articles of Incorporation and Bylaws relating to the election, appointment,
terms of office, and removal of members of the Board. 
  
 (n)
Rule 16b-3. With respect to persons subject to Section 16 of the Exchange Act, transactions under this Plan are intended to comply with the applicable conditions of Rule 16b-3. To the extent any provision of this Plan or action by the Board
or the Committee fails to so comply, it shall be adjusted to comply with Rule 16b-3, to the extent permitted by law and deemed advisable by the Board or the Committee. It shall be the responsibility of persons subject to Section 16 of the Exchange
Act, not of the Company, the Board or the Committee, to comply with the requirements of Section 16 of the Exchange Act; and neither the Company nor the Committee shall be liable if this Plan or any transaction under this Plan fails to comply with
the applicable conditions of Rule 16b-3, or if any such person incurs any liability under Section 16 of the Exchange Act. 
  
 (o) Governing Law. The Plan and all Awards shall be governed by and construed in accordance with the laws of the State of California. 

 
 (p) Use of Proceeds. All cash proceeds to the Company under the
Plan shall constitute general funds of the Company. 
  
 (q)
Assumption by Successor. The obligations of the Company under the Plan and under any outstanding Award may be assumed by any successor corporation, which for purposes of the Plan shall be included within the meaning of “Company.”

  
 Section 14. Amendments and Termination 
  
 The Board may amend, alter or discontinue the Plan or any Award, but no
amendment, alteration or discontinuance shall be made which would impair the rights of a Participant under an outstanding Award without the Participant’s consent. No amendment, alteration or discontinuance shall require shareholder approval
unless it would: 
  
 (a) increase in the total number of shares
reserved for issuance pursuant to Awards under the Plan; 
  
 (b)
change the minimum option price for Options; 
  
 (c) increase the
maximum term of Awards provided for herein; or 
  
 (d) permit
Awards to be granted to anyone other than a director or a salaried officer or employee of the Company or a subsidiary corporation. 
  
 Any amendment or modification requiring shareholder approval shall be deemed adopted as of the date of the action of the Board of Directors effecting such
amendment or modification and 
  

 16 

 shall be effective immediately, unless otherwise provided therein, subject to approval thereof within twelve (12) months
before or after the effective date by shareholders of the Company holding not less than a majority of the voting power of the Company. 
  
 Section 15. Effective Date of Plan 
  
 The effective date of the Plan is September 21, 2001. 
  
 Section 16. Term of Plan 
  
 No Award shall be granted on or after September 21, 2011, but Awards granted prior to September 21, 2011 may extend beyond that date. 
  

 17Employment Agreement of Beth Sanders

 Exhibit 10.31 
  
 EMPLOYMENT AGREEMENT 
  
 THIS AGREEMENT is made this 24th day of November 2004, between 1st Centennial Bancorp (“1st Centennial”), 1st Centennial Bank (the “Bank”), both having a principal place of
business at 218 East State Street, Redlands, California 92373 (collectively referred to herein as the “Company” unless the context otherwise requires), and Beth Sanders (“Executive”), whose residence address is 11177 Opal Avenue,
Redlands, California 92374. 
  
 W I T N E S S E T H

  
 WHEREAS, the Company desires to continue to avail
itself of the skill, knowledge and experience of Executive in order to insure the successful management of its business; 
  
 WHEREAS, the parties hereto desire to specify the terms controlling Executive’s employment by the Company; 
  
 NOW, THEREFORE, in consideration of the mutual covenants hereinafter
set forth, and intending to be legally bound, it is agreed that from and after December 1, 2004 (the “Effective Date”), the following terms and conditions shall apply to Executive’s said employment: 
  

	 	A.	TERM OF EMPLOYMENT 

  
 The Company hereby employs Executive and Executive hereby accepts employment with the Company for the period of three (3) years (the
“Term”) commencing with the Effective Date, subject, however, to prior termination of this Agreement as hereinafter provided. Where used herein, “Term” shall refer to the entire period of employment of Executive by the Company
hereunder, whether for the period provided above, or whether extended or terminated earlier as hereinafter provided. If either party to this Agreement does not desire for the Agreement to be renewed at the end of the Term, such party shall so notify
the other party not less than three (3) months prior to the expiration of the Term. If no notice is given and the parties fail to take any affirmative action to enter into a new employment agreement, this Agreement shall continue in full force and
effect for an additional year. 
  

	 	B.	DUTIES OF EXECUTIVE 

  
 1. Duties. Executive shall perform the duties of Executive Vice President and Chief Financial Officer of 1st Centennial and the Bank, subject to the powers by law vested in the Boards of Directors of 1st Centennial and the Bank and in 1st Centennial’s shareholders. During the Term, Executive shall perform exclusively the services herein contemplated to be performed by Executive faithfully, diligently and to the best of
Executive’s ability, consistent with the highest and best standards of the banking industry and in compliance with all applicable laws and the Articles of Incorporation, Bylaws and internal written policies of 1st Centennial and the Bank. 
  

 2. Conflicts of Interest. Except as permitted by the prior written consent of the
Company’s Board of Directors, Executive shall devote Executive’s entire productive time, ability and attention to the business of the Company during the Term and Executive shall not directly or indirectly render any services of a business,
commercial or professional nature, to any other person, firm or corporation, whether for compensation or otherwise, which are in conflict with the Company’s interests. Notwithstanding the foregoing, Executive may make investments of a passive
nature in any business or venture, provided however, that neither such business or venture is in competition, directly or indirectly, in any manner with the Company. 
  

	 	C.	COMPENSATION 

  
 1. Salary. For Executive’s services hereunder, the Company shall pay or cause to be paid as annual base salary to Executive
the sum of One Hundred Thirty-Six Thousand Dollars ($136,000) for each year of the Term. Said salary shall be payable in equal installments in conformity with the Company’s normal payroll period. Annual adjustments after the first year of the
Term may be made in the discretion of the Board of Directors. 
  
 2. Bonuses. Executive shall receive such bonuses as the Board of Directors, in its sole discretion, shall determine. 
  
 3. Other. Executive and the Company are also parties to a Salary Continuation Agreement dated December 1, 2001. 
  

	 	D.	EXECUTIVE BENEFITS 

  
 1. Vacation. Executive shall be entitled to a four (4) week vacation during each year of the Term; provided, however, that for each
year of the Term, Executive is required to and shall take at least two (2) weeks of said vacation (the “Mandatory Vacation”), which shall be taken consecutively. Executive is encouraged to use all accrued vacation benefits and will be
expected to take vacation in the year it is earned. Vacation benefits shall not accrue above one hundred sixty (160) hours at any time. The Board of Directors, in its discretion, may waive the provision with respect to unused vacation time.

  
 2. Group Medical and Life Insurance
Benefits. The Company shall provide for Executive, at the Company’s expense, group health and life insurance benefits in accordance with the Company’s Personnel Policy as in effect from time to time. Said coverage shall be in existence
or shall take effect as of the Effective Date hereof and shall continue throughout the Term. Provision of the insurance is subject to Executive’s passing the necessary physical examinations for qualification, if any. 
  
 3. Automobile. The Company shall provide Executive,
for Executive’s sole use, a suitable full-sized Company-owned automobile, which automobile shall at no time be older than three (3) years. The specific make and model of such automobile shall be determined by mutual agreement, but the purchase
price shall not exceed Forty Thousand Dollars ($40,000). The Company shall pay all operating expenses of any nature whatsoever with regard to such automobile, provided Executive furnishes to the Company adequate records and other documentary
evidence required by federal and state statutes and regulations issued by the appropriate taxing authorities for the substantiation of such payments as deductible business 

  

 2 

 
expenses of the Company and not as deductible compensation to Executive. The Company shall also procure and maintain in force an automobile liability
insurance policy on such automobile, containing all reasonable and necessary coverage. 
  

	 	E.	REIMBURSEMENT FOR BUSINESS EXPENSES 

  
 Executive shall be entitled to reimbursement by the Company for any ordinary and necessary business expenses incurred by Executive in the
performance of Executive’s duties and in acting for the Company during the Term, which types of expenditures shall be determined by the Board of Directors, provided that: 
  
 (a) Each such expenditure is of a nature qualifying it as a proper deduction on the federal and state income
tax returns of the Company as a business expense and not as deductible compensation to Executive; and 
  
 (b) Executive furnishes to the Company adequate records and other documentary evidence required by federal and state statutes and
regulations issued by the appropriate taxing authorities for the substantiation of such expenditures as deductible business expenses of the Company and not as deductible compensation to Executive. 
  

	 	F.	TERMINATION 

  
 1. Termination for Cause. The Company may terminate this Agreement at any time by action of the Board of Directors, if Executive
fails to perform or habitually neglects the duties which she is required to perform hereunder, if Executive engages in illegal activity which materially adversely affects the Company’s reputation in the community or which evidences the lack of
Executive’s fitness or ability to perform Executive’s duties as reasonably determined by the Board of Directors in good faith, or if Executive commits any act which would cause termination of coverage under the Bank’s Bankers’
Blanket Bond as to Executive (as distinguished from termination of coverage as to the Bank as a whole). In the event the Company terminates this Agreement for cause as provided herein, Executive shall not be eligible for any severance benefits
otherwise contemplated by this Agreement. Such termination shall not prejudice any remedy which the Company may have at law, in equity, or under this Agreement. 
  
 2. Death or Disability. In the event of Executive’s death or if Executive is found to be
physically or mentally disabled (as hereinafter defined) by the Board of Directors in good faith, this Agreement shall terminate without any further liability or obligation by the Company to Executive. 
  
 For purposes of this Agreement only, physical or mental
disability shall be defined as Executive being unable to fully perform under this Agreement for a continuous period of ninety (90) days or a cumulative period of one-hundred eighty (180) days in any calendar year. If there should be a dispute
between the Company and Executive as to Executive’s physical or mental disability for purposes of this Agreement, the question shall be settled by the opinion of an impartial reputable physician or psychiatrist agreed upon by the parties or
their representatives, or if the parties cannot agree within ten (10) days after a request for designation of such party, then by a physician or psychiatrist designated by the San Bernardino County 

  

 3 

 
Medical Association. The certification of such physician or psychiatrist as to the question in dispute shall be final and binding upon the parties hereto.

  
 In the event of such disability, in lieu of
any payments otherwise due under this Agreement, the Company will provide salary continuation for one hundred eighty (180) days, less accrued sick leave. Accrued sick leave is to be utilized until exhausted prior to salary continuation
provided herein. 
  
 3. Action by Supervisory
Authority. If the Bank is closed by or taken over by the California Department of Financial Institutions or other supervisory authority, including the Federal Deposit Insurance Corporation, such bank supervisory authority may immediately
terminate this Agreement without further liability or obligation by the Company to Executive. 
  
 4. Merger or Other Corporate Reorganization. In the event of: (i) a merger where either the Bank or 1st Centennial fails to be the surviving corporation, (ii) a transfer of all or substantially all of the assets of the Bank or
1st Centennial, or (iii) any acquisition, consolidation or other corporate reorganization where there is a change in
ownership of at least twenty-five percent (25%) of 1st Centennial’s stock except as may result from (i) a
transfer of shares to another corporation in exchange for at least eighty percent (80%) control of that corporation, or (ii) the issuance of additional shares of stock by 1st Centennial in a public stock offering or similar transaction, (collectively, a “change in control”), this Agreement shall not be terminated, and the
surviving entity shall be bound by all of the provisions of the Agreement. If in connection with or within one (1) year following the effective date of such “change in control,” Executive’s employment is terminated without cause or
“constructively terminated” (as defined below), Executive (or her estate, representative or administrators) shall be entitled to receive from the Company or its successor entity, as the case may be, a lump sum payment in an amount equal to
twelve (12) months’ then base salary at the time of such termination. Such payment shall be in lieu of any other payments otherwise due under this Agreement, and this Agreement shall thereupon be terminated and be of no further force or effect.
For purposes of this Agreement, “constructive termination” shall include: (i) any decrease in salary or benefits below those in effect for Executive immediately prior to the change in control, or (ii) any relocation of Executive to a
location more than twenty-five (25) miles from that of her principal place of business immediately prior to the change in control. 
  
 Notwithstanding the preceding paragraph, if the Bank and/or 1st Centennial is not the surviving entity in any transaction contemplated above and said transaction is in any manner the result of any suggestion or order of
the Department of Financial Institutions, the Federal Reserve Board or the FDIC, then, in such event, this Agreement shall terminate immediately upon the consummation of such transaction and Executive agrees that all rights, duties and obligations
and benefits herein conferred shall thereupon terminate and that Executive shall be entitled to no further compensation or benefits from the Bank and/or 1st Centennial other than as required by applicable law. In addition, neither the Bank nor 1st Centennial shall be required to make any payments under this paragraph which may be prohibited by law. 
  

 4 

 5. Termination Without Cause. Notwithstanding anything to the contrary contained
herein, it is agreed by the parties hereto that the Company may at any time and for any reason terminate this Agreement and Executive’s employment by the Company by action of the Board of Directors. Such termination shall be effective
immediately upon the giving of notice to Executive from the Company, and all benefits provided by the Company hereunder to Executive shall thereupon cease, except as provided in this paragraph. Notwithstanding the foregoing, it is agreed that in the
event of such termination, Executive shall continue to be paid Executive’s base salary for a period of twelve (12) months immediately following the effective date of Executive’s termination. Such payments shall be payable to Executive in
accordance with the normal method of payment as specified in this Agreement and shall be reduced by the amount of any payments received by Executive from other employment. In addition, the insurance benefits provided to Executive hereunder shall be
continued if permissible for a period of ninety (90) days after termination. If for any reason such coverage is not permissible, the Company shall instead reimburse Executive for comparable COBRA health insurance continuation coverage, not to exceed
the amount per month which the Company was paying on Executive’s behalf as of the date of termination, provided that the total number of days of coverage by the Company and/or reimbursement for COBRA coverage combined shall not exceed ninety
(90) days. Such action shall not be construed as a breach of this Agreement, and the payment of such sums shall constitute full and complete performance by the Company (or any successor-in-interest) of its obligations hereunder. Notwithstanding any
provision to the contrary in this Paragraph F.5, no severance benefits shall be payable to Executive hereunder if Executive’s employment is terminated for any of the reasons delineated in Paragraph F.1 hereof. 
  
 6. Effect of Termination. In the event of the
termination of this Agreement for any reason (except as provided herein), Executive shall be entitled to the salary earned by Executive prior to the date of termination as provided for in this Agreement (except that Executive shall not be entitled
to any bonus in the event her employment is terminated for cause as provided in Paragraph F.1 above or in the event Executive voluntarily resigns), computed pro rata up to and including that date; but Executive shall be entitled to no further
compensation for services rendered after the date of termination, except as provided in Paragraph F.4 or Paragraph F.5 above. Notwithstanding the foregoing, however, in the event this Agreement is terminated due to non-renewal in accordance with
Paragraph A hereof or due to termination without cause pursuant to Paragraph F.4 hereof, Executive shall be entitled to the pro rata portion of her bonus earned for the partial year in question, to be paid as soon as practicable after completion of
the audit of the Company’s financial statements for that year. 
  
 7. Golden Parachute Limitation. Severance compensation under Paragraph F.4 or F.5 hereof will be reduced as provided below to avoid the penalties imposed on “parachute payments” under the Internal
Revenue Code of 1986 (the “Code”). 
  
 (a) If the present value of all Executive’s severance compensation provided by the Company under Paragraph F.4 or F.5 hereof and outside this Agreement is high enough to cause any such payment to be a “parachute payment” (as
defined in Section 280G(b)(2) of the Code), then one or more of such payments will be reduced by the minimum amount required to prevent the severance compensation under this Agreement from being a “parachute payment.” 
  

 5 

 (b) Executive may direct the Company regarding the order of reducing severance
compensation and other payments from the Company to comply with this Paragraph F.7. 
  

	 	G.	GENERAL PROVISIONS 

  
 1. Trade Secrets. During the Term, Executive will have access to and will become acquainted with what Executive and the Company
acknowledge are trade secrets, to wit, knowledge or data concerning the Company, including its operations and methods of doing business, and the identity of customers of the Company, including knowledge of their financial condition and their
financial needs. Executive shall not disclose any of the aforesaid trade secrets, directly or indirectly, or use them in any way, either during the Term or thereafter, except as required in the course of Executive’s employment with the Company.

  
 2. Indemnification. To the extent
permitted by law, applicable statutes and the Bylaws or resolutions of the Bank or the Company in effect from time to time, the Company shall indemnify Executive against liability or loss arising out of Executive’s actual or asserted
misfeasance or non-feasance in the performance of Executive’s duties or out of any actual or asserted wrongful act against, or by, the Company including but not limited to judgments, fines, settlements and expenses incurred in the defense of
actions, proceedings and appeals therefrom. However, the Company shall have no duty to indemnify Executive with respect to any claim, issue or matter as to which Executive has been adjudged to be liable to the Company in the performance of her
duties, unless and only to the extent that the court in which such action was brought shall determine upon application that, in view of all of the circumstances of the case, Executive is fairly and reasonably entitled to indemnification for the
expenses which such court shall determine. The Company shall endeavor to keep in force Directors and Officers Liability Insurance to indemnify and insure the Company and Executive from and against the aforesaid liabilities. The provisions of this
paragraph shall apply to the estate, executor, administrator, heirs, legatees or devisees of Executive. 
  
 3. Return of Documents. Executive expressly agrees that all manuals, documents, files, reports, studies, instruments or other
materials used and/or developed by Executive during the Term are solely the property of the Company, and that Executive has no right, title or interest therein. Upon termination of this Agreement, Executive or Executive’s representative shall
promptly deliver possession of all of said property to the Company in good condition. 
  
 4. Arbitration. In the event of a breach or dispute pertaining to or arising from this Agreement, the parties hereto agree that any
such dispute between the parties arising out of any section of this Agreement will, on the written notice of one party served on the other, be submitted to binding arbitration governed by the laws, rules, regulations and ordinances applicable in San
Bernardino County, State of California. In such event, each of the parties will appoint one person as an arbitrator to hear and determine the dispute and if they are unable to agree, then the two arbitrators so chosen will select a third impartial
arbitrator whose decision will be final and conclusive upon the parties. A material or anticipatory breach of any section of this Agreement shall not release either party from the obligations of this Paragraph G.4. 
  

 6 

 5. Notices. All notices, demands or other communications hereunder shall be in
writing and shall be delivered in person (professional courier acceptable); or by United States mail, certified or registered, postage prepaid, with return receipt requested; or by facsimile transmission; or otherwise actually delivered, to the
addresses for the parties appearing at the inception of this Agreement. The persons or addresses to which mailings or deliveries shall be made may change from time to time by notice given pursuant to the provisions of this Paragraph G.5. Any notice,
demand or other communication given pursuant to this Agreement shall be deemed to have been given on the date actually delivered, if delivered in person, three days following the date mailed, if delivered by U.S. mail, or upon written confirmation
of transmission, if delivered by facsimile. 
  
 6. Review by Counsel. Executive represents and warrants to the Company that she has had this Agreement reviewed by independent legal counsel of her choice, or if she has not, that she has had the opportunity to do so, and hereby
waives any claim, objection or defense on the grounds that this Agreement has not been reviewed by legal counsel of her choice. 
  
 7. California Law. This Agreement is to be governed by and construed in accordance with the laws of the State of California.

  
 8. Captions and Paragraph Headings.
Captions and paragraph headings used herein are for convenience only and are not a part of this Agreement and shall not be used in construing it. 
  
 9. Invalid Provisions. Should any provision of this Agreement for any reason be declared invalid, void, or unenforceable by a court
of competent jurisdiction, the validity and binding effect of any remaining portion shall not be affected, and the remaining portions of this Agreement shall remain in full force and effect as if this Agreement had been executed with said provision
eliminated. 
  
 10. Entire Agreement. This
Agreement contains the entire agreement of the parties. It supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of Executive by the Company with the exception of the salary
continuation agreement referred to herein and such stock option agreements as the Company and Executive may enter into from time to time. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, oral
or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement shall be valid or binding. This Agreement may not
be modified or amended by oral agreement, but only by an agreement in writing signed by 1st Centennial, the Bank and
Executive. 
  
 11. Receipt of Agreement.
The parties hereto acknowledge that they have read this Agreement in its entirety and further acknowledge receipt of a fully executed copy thereof. A fully executed copy shall be an original for all purposes, and is a duplicate original. 

 

 7 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
above written. 
  

			
	1ST CENTENNIAL BANCORP
		
	 By:
	 	 /s/ Patrick J. Meyer

	 	 	 Patrick J. Meyer

	 	 	 Chairman of the Board

	
	1ST CENTENNIAL BANK
		
	 By:
	 	 /s/ Patrick J. Meyer

	 	 	 Patrick J. Meyer

	 	 	 Chairman of the Board

  

	
	
	 /s/ Beth Sanders

	Beth Sanders
	 (“Executive”)

  

 8

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