Exhibit 2.2 (E)
NONSOLICITATION
AGREEMENT
THIS NONSOLICITATION
AGREEMENT (
“Agreement” ), dated as of May 28, 2008 is
entered into by and between Central Valley Community Bancorp, a
California corporation and registered bank holding company under
the Federal Bank Holding Company Act ( “CVCB” ),
Service 1 st Bancorp, a California corporation and
registered bank holding company under the Federal Bank Holding
Company Act ( “Bancorp” ), and the
undersigned officer of Service 1st Bancorp and/or Service 1
st Bank ( “Officer” ).
RECITALS
A.
CVCB, Central Valley Community Bank, a California banking
corporation ( “CVC Bank” ), Bancorp, and Service
1 st Bank, a
California banking corporation ( “Bank” ),
entered into that certain Reorganization Agreement and Plan of
Merger dated as of May 28, 2008 (the “Reorganization
Agreement” ). Pursuant to the Reorganization
Agreement, Bancorp shall be merged with CVCB and Bank will be
merged into CVC Bank ( “Merger” ).
B.
Officer is an officer of Bancorp or Bank.
C.
Officer is willing to agree to not use trade secrets or solicit
customers or employees of CVCB, CVC Bank, Bancorp or Bank as set
forth in this Agreement.
D.
Unless otherwise provided in this Agreement, capitalized terms
shall have the meanings given to them in the Reorganization
Agreement.
NOW THEREFORE, in
consideration of the premises and of the respective
representations, warranties and covenants, agreements and
conditions contained herein and in the Reorganization Agreement,
and intending to be legally bound hereby, CVCB and Officer agree as
follows:
ARTICLE I
CONFIDENTIAL INFORMATION AND
NONSOLICITATION
1.1
Confidentiality.
Except as provided in Section 1.2 of this Agreement, Officer
agrees that during and after termination of his or
her employment with Bancorp, Bank, CVCB or CVC Bank, as the case
may be, he or she shall keep Confidential Information (as defined
below) confidential and shall not directly or indirectly, use,
divulge, publish or otherwise disclose or allow to be disclosed any
aspect of Confidential Information without CVCB’s prior
written consent; “Confidential
Information” includes but is not limited to trade
secrets, confidential information, knowledge or data of Bancorp,
Bank, CVCB or CVC Bank, or any of their clients, customers,
consultants, Officers, licensees, licensors, vendors or affiliates,
that Officer may produce, obtain or otherwise acquire or have
access to during the course of his or her employment by Bancorp,
Bank, CVCB or CVC Bank (whether before or after the date of this
Agreement), including but not limited to: business plans, records,
and affairs; customer files and lists; sales practices; methods and
techniques; sources of supply and vendors; special business
relationships with vendors and agents; financial matters; mergers;
acquisitions; personnel matters
including compensation
packages; product specifications; pricing information; technical
data; operations and production costs; and other similar matters
which are confidential. All Confidential Information and all
tangible materials containing Confidential Information are and
shall remain the sole property of Bancorp, Bank, CVCB or CVC Bank,
as the case may be.
1.2
Limitation. Officer
shall have no obligation under this Agreement to maintain in
confidence any information that (i) is in the public domain at
the time of disclosure, (ii) though originally Confidential
Information, subsequently enters the public domain other than by
breach of Officer’s obligations hereunder, or (iii) is
shown to have been known by Officer prior to disclosure to Officer
by Bancorp, Bank, CVCB or CVC Bank. Without limiting the
generality of the foregoing, the parties agree that the identity of
vendors, sources of supply, the Federal Home Loan Bank of San
Francisco, correspondent banks, brokers, or other companies
commonly used in the banking industry, and materials or computer
programs of general application and computerized trading programs
that Officer has developed and used, and not containing any Bank
customer data, are not Confidential Information.
1.3
Conflicting Activities. While serving as an officer
of Bancorp, Bank, CVCB or CVC Bank, Officer will not work as an
employee, director or consultant of any other organization or
engage in any other activities that conflict with Officer’s
obligations to Bancorp, Bank, CVCB or CVC Bank, without the express
prior written approval of CVC Bank. Officer will be allowed
to continue his participation as the Chairman of the Board for the
Tracy Chamber of Commerce and to participate on the Community
Resource Committee of the Sutter Tracy Hospital.
1.4
Trade Names and Styles.
The undersigned acknowledges and agrees that any and all
trade names and styles used by Bancorp or Bank, including, but not
limited to, the terms “Service 1 st
Bank” and all trademarks, visual designs and logos under
which Bancorp or Bank do business (collectively, the
“Marks” ), are valuable trade names and service
marks, the ownership of which will pass, for valuable
consideration, to CVC Bank upon the Merger. The undersigned
agrees that use by any entity, other than the Bank or CVC Bank, of
the Marks in San Joaquin County or in California generally would
both cause public and customer confusion, and dilute the value of
CVC Bank’s investment in the Merger. Therefore, the
undersigned unconditionally agrees that he or she will not enter
into any business arrangement or agreement, whether formal or
informal, directly or indirectly, where the term “Service 1
st
Bank,” or any other Mark, is used for the purpose of doing
business as a financial services provider, or in connection with
the sale, promotion or marketing of financial services to the
public in San Joaquin County or in California generally following
the merger.
1.5
Return of Confidential Material and Certification of
Compliance. In the event of Officer’s
termination of employment with Bancorp, Bank, CVCB or CVC Bank for
any reason whatsoever, Officer agrees promptly to surrender and
deliver to Bancorp, Bank, CVCB or CVC Bank, as the case may be, all
records, materials, equipment, drawings, documents and data
pertaining to any Confidential Information or to his or her
employment, and Officer will not retain or take with him any
tangible materials or electronically stored data (except trading
programs developed by Officer or programs of general application
developed by Officer, and not containing any Bank customer
information) containing or pertaining to any Confidential
Information that Officer may produce, acquire or obtain access to
during the course of his or her employment.
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1.6
Nonsolicitation. Officer agrees that during the
period of his or her employment with Bancorp, Bank, CVCB or CVC
Bank and until the later to occur of (i) the expiration of
twelve (12) months immediately following the Effective Date of the
Merger or (ii) the expiration of six (6) months
immediately following the termination of his or her employment with
Bancorp, Bank, CVCB or CVC Bank, he or she will not:
(1)
induce, solicit, recruit or encourage any employee of Bancorp,
Bank, CVCB or CVC Bank to leave the employ of Bancorp, Bank, CVCB
or CVC Bank, which means that he or she will not:
(a)
disclose to any third party the names, backgrounds or
qualifications of any employees or otherwise identify them as
potential candidates for employment with a competitor; or
(b)
personally or through any other person approach, recruit, or
contact employees to work for any other competitor.
OR:
(2)
Except for deposits from an agency of the State of California,
solicit, either on behalf of Officer or any third party, the
business of any client or customer of Bancorp, Bank, CVCB or CVC
Bank:
(a)
whose account Officer has been assigned to, serviced by or made
aware of during the twenty-four (24) month period prior to the date
of Officer’s termination of employment with Bancorp, Bank,
CVCB or CVC Bank, or
(b)
using any Confidential Information (as hereinafter defined) of
Bancorp, Bank, CVCB or CVC Bank, either on behalf of Officer or any
third party;
OR:
(3)
solicit the business of any prospective customer or client of
Bancorp, Bank, CVCB or CVC Bank:
(a)
whose business Officer was involved in soliciting or recruiting
while employed by Bancorp, Bank, CVCB or CVC Bank, or
(b)
using any Confidential Information of Bancorp, Bank, CVCB or CVC
Bank.
1.7
Limitations . It will not be a violation of
Section 1.6 if a former employee of Bancorp, Bank, CVCB or CVC
Bank seeks employment with Officer’s new employer on an
unsolicited basis. Officer or his or her new employer will be
allowed to solicit a former employee of Bancorp or Bank who is
terminated by Bancorp, Bank, CVCB or CVC Bank prior to or after the
Merger.
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ARTICLE II
STOCK OPTIONS, SHARES AND
EMPLOYMENT AGREEMENT
2.1
Stock
Options . Officer
shall not exercise, and Company shall not permit Officer to
exercise, any stock options granted by Company or Company Bank to
Officer (“ Officer Stock Options ”).
Immediately p rior to the
Effective Time, the vesting of Officer Stock Options shall
accelerate and Company shall purchase each outstanding and
unexercised Officer Stock Option for an amount equal to the value
of the Per Share Merger Consideration (using the Parent
Determination Price to value the Per Share Stock Component) less
the exercise price in respect of each such Officer Stock Option;
provided, however, that Officer acknowledges and agrees that a
portion of the amount payable hereunder shall be placed into and
subject to the Escrow contemplated by Section 4.10 of the
Reorganization Agreement (the contents of which are hereby
incorporated herein by reference). Except as specifically set
forth in this Section 2.1, as of the Effective Time,
(i) all Officer Stock Options and the agreements under which
they were granted are hereby terminated, (ii) Officer waives
all rights in and to the Officer Stock Options and the agreements
under which they were granted, and (iii) Officer forever
releases and discharges Company, CVCB and their respective parents,
subsidiaries, affiliates, successors, assigns, officers, directors,
employees, agents, attorneys, and representatives, from any and all
causes of action, judgments, liens, indebtedness, damages, claims,
liabilities, demands, and causes of action of whatever kind or
nature, whether known or unknown, suspected or unsuspected, that
Officer has or may have against Company, CVCB or any of their
respective parents, subsidiaries, affiliates, successors, assigns,
officers, directors, employees, agents, attorneys and
representatives relating to, arising from or in connection with the
Officer Stock Options.
2.2
Rule 144 . Officer
acknowledges that upon receipt of the no par value per share common
stock of CVCB (“ CVCB Common Stock ”) in
connection with the Merger, his or her status as a director,
officer or shareholder of Bancorp or CVCB may result in Officer
being deemed to be an affiliate of CVCB for purposes of
Rule 144 promulgated by the Securities and Exchange
Commission. Officer agrees to comply with any provisions of
Rule 144 that may be applicable to Officer.
2.3
Termination of Employment Agreement
. Effective upon the Closing,
and without any further action by Officer, except for any severance
benefits payable in connection with the Merger under
Section 16(e) of that certain Employment Agreement
between Officer, Bancorp and Bank, dated as of July 15, 2004
(“ Employment Agreement ”), the Employment
Agreement shall terminate for all intents and purposes and be of no
further force or effect.
ARTICLE III
EQUITABLE
RELIEF
3.1
Equitable Relief.
Officer agrees that it would be impossible or inadequate to measure
and calculate CVCB’s damages from any breach of the covenants
set forth in this Agreement. Accordingly, Officer agrees that
if Officer breaches this Agreement, CVCB will have available, in
addition to any other right or remedy available, the right to
obtain an injunction from a court of competent jurisdiction
restraining such breach or threatened breach and to specific
performance of any such provision of this Agreement. Officer
further agrees that no bond or other security shall be required in
obtaining such equitable relief and Officer hereby consents to such
injunction’s issuance and to the ordering of specific
performance.
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ARTICLE IV
REPRESENTATIONS AND WARRANTIES
OF OFFICER
Officer represents
and warrants to CVCB that the statements set forth below are true
and correct as of the date of this Agreement, except those that are
specifically as of a different date:
4.1
Authorization; Binding Agreement. Officer has the legal
right, power, capacity and authority to execute, deliver and
perform this Agreement, and this Agreement is the valid and binding
obligation of Officer enforceable in accordance with its terms,
except as the enforcement thereof may be limited by general
principles of equity.
4.2
Noncontravention. The execution, delivery
and performance of this Agreement by Officer will not
(a) require any third party consents; (b) result in the
creation or imposition of any encumbrance on any of the Shares; or
(c) violate any applicable laws or rules to which Officer
or his or her spouse is subject.
ARTICLE V
GENERAL
5.1
Amendments. To the fullest extent
permitted by law, this Agreement and any schedule or exhibit
attached hereto may be amended by agreement in writing of both
parties hereto at any time.
5.2
Integration. This Agreement
constitutes the entire agreement between the parties pertaining to
the subject matter hereof and (except for the Reorganization
Agreement if executed by Officer) supersedes all prior agreements
and understandings of the parties in connection
therewith.
5.3 Specific
Performance. Officer and CVCB each
expressly acknowledge that, in view of the uniqueness of the
obligations of Officer contemplated hereby, CVCB would not have an
adequate remedy at law for money damages in the event that this
Agreement has not been performed by Officer in accordance with its
terms, and therefore Officer and CVCB agree that CVCB shall be
entitled to specific enforcement of the terms hereof in addition to
any other remedy to which it may be entitled at law or in
equity.
5.4
Termination. This entire Agreement
shall terminate automatically without further action at the
termination of the Reorganization Agreement in accordance with its
terms. Upon termination of this Agreement as provided herein,
the respective obligations of the parties hereto shall immediately
become void and have no further force and effect.
5.5 No
Assignment. Neither this Agreement
nor any rights, duties or obligations hereunder shall be assignable
by CVCB or Officer, in whole or in part. Any attempted assignment
in violation of this prohibition shall be null and void. Subject to
the foregoing, all of the terms and provisions hereof shall be
binding upon, and inure to the benefit of, the successors of the
parties hereto.
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5.6
Headings. The descriptive headings
of the several Articles and Sections of this Agreement are inserted
for convenience only and do not constitute a part of this
Agreement.
5.7
Counterparts. This Agreement may be
executed in one or more counterparts, all of which shall be
considered one and the same agreement and shall become effective
when one or more counterparts have been signed by each party hereto
and delivered to each party hereto.
5.8 Gender, Number,
and Tense. Throughout this
Agreement, unless the context otherwise requires,
(i) the masculine,
feminine and neuter genders each includes the other;
(ii) the singular
includes the plural, and the plural includes the singular;
and
(iii) the past
tense includes the present, and the present tense includes the
past.
5.9
Notices. Any notice or
communication required or permitted hereunder, shall be deemed to
have been given if in writing and (a) delivered in person,
(b) delivered by confirmed facsimile transmission, or
(c) mailed by certified or registered mail, postage prepaid
with return receipt requested, addressed as follows:
If to
CVCB:
Central Valley
Community Bancorp
7100 North Financial
Drive, Suite 101
Fresno,
California 93720
Attention: Daniel J.
Doyle, CEO
With a
copy to:
Downey Brand
LLP
Attention: James K.
Dyer, Jr., Esq.
3425 Brookside Road,
Suite A
Stockton, CA
95219
If to
Officer:
With a
copy to:
Dodd ·
Mason · George LLP
Attention: Glenn
T. Dodd, Esq.
1740 Technology
Drive, Suite 205
San Jose, CA
95110
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or at such other
address and to the attention of such other person as a party may
notice to the other in accordance with this Section 4.9. Any
such notice or communication shall be deemed received on the date
delivered personally or delivered by confirmed facsimile
transmission or on the third Business Day after it was sent by
certified or registered mail, postage prepaid with return receipt
requested.
5.10 Governing
Law. This Agreement shall be
construed in accordance with, and governed by, the laws of the
State of California, except to the extent preempted by the laws of
the United States.
5.11 Attorneys’
Fees. If any legal action or
any arbitration is brought for the enforcement of this Agreement or
because of an alleged dispute, breach or default in connection with
this Agreement, the prevailing party shall be entitled to recover
reasonable attorneys’ fees and other costs and expenses
incurred in that action or proceeding, in addition to any other
relief to which it may be entitled.
5.12 Regulatory
Compliance. Each of the provisions of
this Agreement is subject to compliance with all applicable
regulatory requirements and conditions.
5.13
Arbitration
.
Except for actions for equitable
relief (including, without limitation, those contemplated by
Sections 3.1 and 5.3 of this Agreement), a ny disputes arising from, relating to or in
connection with this Agreement which cannot be resolved informally
between the parties shall be submitted to final and binding
arbitration in Sacramento, California under the rules and
regulations of the American Arbitration Association.
[Signature
page follows]
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IN WITNESS
WHEREOF, the parties to this Agreement have duly executed this
Agreement as of the day and year first above written.
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CENTRAL VALLEY COMMUNITY
BANCORP
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By:
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Daniel J. Doyle, Chief
Executive Officer
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SERVICE 1 ST
BANCORP
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By:
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John O. Brooks, Chief
Executive Officer
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OFFICER
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Name:
ROBERT E. BLOCH
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SPOUSAL CONSENT
I am the spouse
of ,
Officer in the above Agreement. I understand that I may consult
independent legal counsel as to the effect of this Agreement and
the consequences of my execution of this Agreement and, to the
extent I felt it necessary, I have discussed it with legal counsel.
I hereby confirm this Agreement and agree that it shall bind my
interest in the Shares, if any.
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(Officer’s
Spouse’s Name)
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NONSOLICITATION
AGREEMENT
THIS NONSOLICITATION
AGREEMENT (
“Agreement” ), dated as of May 28, 2008 is
entered into by and between Central Valley Community Bancorp, a
California corporation and registered bank holding company under
the Federal Bank Holding Company Act ( “CVCB” ),
Service 1 st Bancorp, a California corporation and
registered bank holding company under the Federal Bank Holding
Company Act ( “Bancorp” ), and the
undersigned officer of Service 1st Bancorp and/or Service 1
st Bank ( “Officer” ).
RECITALS
A.
CVCB, Central Valley Community Bank, a California banking
corporation ( “CVC Bank” ), Bancorp, and Service
1 st Bank, a California banking corporation (
“Bank” ), entered into that certain
Reorganization Agreement and Plan of Merger dated as of
May 28, 2008 (the “Reorganization
Agreement” ). Pursuant to the Reorganization Agreement,
Bancorp shall be merged with CVCB and Bank will be merged into CVC
Bank ( “Merger” ).
B.
Officer is an officer of Bancorp or Bank.
C.
Officer is willing to agree to not use trade secrets or solicit
customers or employees of CVCB, CVC Bank, Bancorp or Bank as set
forth in this Agreement.
D.
Unless otherwise provided in this Agreement, capitalized terms
shall have the meanings given to them in the Reorganization
Agreement.
NOW THEREFORE, in
consideration of the premises and of the respective
representations, warranties and covenants, agreements and
conditions contained herein and in the Reorganization Agreement,
and intending to be legally bound hereby, CVCB and Officer agree as
follows:
ARTICLE I
CONFIDENTIAL INFORMATION AND
NONSOLICITATION
1.1
Confidentiality.
Except as provided in Section 1.2 of this Agreement, Officer
agrees that during and after termination of his or
her employment with Bancorp, Bank, CVCB or CVC Bank, as the case
may be, he or she shall keep Confidential Information (as defined
below) confidential and shall not directly or indirectly, use,
divulge, publish or otherwise disclose or allow to be disclosed any
aspect of Confidential Information without CVCB’s prior
written consent; “Confidential Information”
includes but is not limited to trade secrets, confidential
information, knowledge or data of Bancorp, Bank, CVCB or CVC Bank,
or any of their clients, customers, consultants, Officers,
licensees, licensors, vendors or affiliates, that Officer may
produce, obtain or otherwise acquire or have access to during the
course of his or her employment by Bancorp, Bank, CVCB or CVC Bank
(whether before or after the date of this Agreement), including but
not limited to: business plans, records, and affairs; customer
files and lists; sales practices; methods and techniques; sources
of supply and vendors; special business relationships with vendors
and agents; financial matters; mergers; acquisitions; personnel
matters
including compensation
packages; product specifications; pricing information; technical
data; operations and production costs; and other similar matters
which are confidential. All Confidential Information and all
tangible materials containing Confidential Information are and
shall remain the sole property of Bancorp, Bank, CVCB or CVC Bank,
as the case may be.
1.2
Limitation. Officer
shall have no obligation under this Agreement to maintain in
confidence any information that (i) i
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