Exhibit 99.1
CHANGE IN CONTROL
AGREEMENT
This Change in Control Agreement
(the “Agreement”), dated July 14, 2008, is between
Nara Bancorp, Inc. and its subsidiary Nara Bank, (collectively, the
“Company”) and
(“Executive”). This Agreement supersedes any currently
operable change in control agreement between Company and
Executive.
I. Generally
. Executive understands and
acknowledges that Company may be merged or consolidated with or
into another entity and that such entity shall automatically be
subject to the rights and obligations of Company
hereunder.
II. “Change in
Control” shall mean :
(a) The consummation of a
merger or consolidation of Company with or into another entity or
any other corporate reorganization, if more than fifty percent
(50%) of the combined voting power of the continuing or
surviving entity’s securities outstanding immediately after
such merger, consolidation or other reorganization is owned by
persons who were not stockholders of Company immediately prior to
such merger, consolidation or other reorganization;
(b) The sale, transfer or other
disposition of all or substantially all of the Company’s
assets; or
(c) Any transaction as a result
of which any person is the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of Company representing at least fifty
percent (50%) of the total voting power represented by
Company’s then outstanding voting securities. For purposes of
this Paragraph (iv), the term “person” shall have the
same meaning as when used in Sections 13(d) and 14(d) of the
Exchange Act but shall exclude: (x) A trustee or other
fiduciary holding securities under an employee benefit plan of
Company or a subsidiary of Company; and (y) A corporation
owned directly or indirectly by the stockholders of Company in
substantially the same proportions as their ownership of the common
stock of Company.
A transaction shall not constitute a
Change in Control if its sole purpose is to change the state of
Company’s incorporation or to create a holding company that
will be owned in substantially the same proportions by the persons
who held Company’s securities immediately before such
transactions.
III. Occurrence of a
Change in Control . If
there is a Change in Control (as defined in § II) during the
term of Agreement, and any of the following events occur, in
addition to any monies already owed under other operative
agreements, if applicable, the Company will pay Executive one
(1) year of Base Salary, the pro-rata portion of
Executive’s Bonus accrued up to the date of separation from
the Company, and all unvested options to purchase shares will
automatically vest, if:
(a) Executive is involuntarily
terminated without Cause (as defined in § V) within twelve
(12) months following the date of such Change in Control, but
within the term of the Agreement; or
(b) Executive terminates voluntarily
with Good Reason (as defined in § IV) within twelve
(12) months following the date of such Change in Control, but
within the term of the Agreement.
For purposes of this § III (b),
the date of a Change in Control will be the closing date of such
transactions described in § II.
IV. “Good
Reason” shall mean the occurrence during the Term of this
Agreement of any of the following:
(a) a material reduction in
Executive’s duties and/or responsibilities without regard to
any title given to Executive by the Company or any successor
company;
(b) a requirement by the Company or
any successor company, without Executive’s consent, that
Executive relocate their office to a location greater than fifty
(50) miles from Executive’s place of residence;
or
(c) a material breach of the
Agreement or any other material agreements between the parties by
the Company or any successor company which is not cured by the
Company or any successor company within thirty (30) days
following the Company’s receipt of written notice by
Executive to the Company describing such alleged breach.
V. Termination for
Cause . If there is a
termination “For Cause” as defined in this § V,
then it will be presumed that the Executive cannot trigger the
provisions of § III. For purpose of this Agreement, “For
Cause” shall mean: (a) Executive is convicted of a
felony or commits a crime involving dishonesty, breach of trust, or
physica
