Exhibit 2.2 (C)
SHAREHOLDER’S
AGREEMENT
THIS SHAREHOLDER’S
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 shareholder and officer and/or director of Bancorp (
“Shareholder” ).
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.
Shareholder is a member of
the Board of Directors and/or an executive officer of Bancorp
and/or Bank and owns shares of the common stock, no par value, of
Bancorp ( “Bancorp Stock” ).
C.
Shareholder is willing to
agree to vote or cause to be voted all shares of Bancorp Stock with
respect to which Shareholder has voting power on the date hereof or
hereafter acquired to approve the Reorganization Agreement and the
transactions contemplated thereby and all requisite matters related
thereto.
D.
Shareholder is willing to
agree to not compete with, use trade secrets or solicit customers
or employees of CVCB, CVC Bank, Bancorp or Bank as set forth in
this Agreement.
E.
Unless otherwise provided
in this Agreement, capitalized terms shall have the meanings given
to them in the Reorganization Agreement. In addition, the
term “director” shall include advisory directors, if
any, and the term “directorship” shall include advisory
directorships, if any.
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 Shareholder
agree as follows:
ARTICLE I
DIRECTOR/OFFICER-SHAREHOLDER’S
AGREEMENT
1.1
Agreement to
Vote. Shareholder shall vote,
or cause to be voted, at any meeting of shareholders of Bancorp to
approve the Reorganization Agreement and the transactions
contemplated thereby (the “Shareholders’
Meeting” ), all of the shares of Bancorp Stock over which
Shareholder has voting authority (the “Shares”
), as of the record date established to
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determine shareholders who have the right to
vote at any such Shareholders’ Meeting or to give consent to
action in writing (the “Record Date” ), to
approve the Reorganization Agreement, the Agreement of Merger and
the transactions contemplated thereby, including the principal
terms of the Merger.
1.2
[Intentionally Omitted.]
1.3
Restrictions on
Dispositions. Shareholder agrees
that, from and after the date of this Agreement and during the term
of this Agreement, he or she will not take any action that will
adversely affect his or her ability to comply with the obligations
imposed by this Agreement to vote the Shares, except (i) with
the prior written consent of CVCB or (ii) to change such right
from that of a shared right of Shareholder to vote the Shares to a
sole right of Shareholder to vote the Shares. Without
limiting the generality of the foregoing, Shareholder shall take no
actions that will reduce the number of Shares held by Shareholder
as of the date hereof.
1.4
Shareholder Approval.
Shareholder shall (i) recommend
shareholder approval of the Reorganization Agreement, the Agreement
of Merger and the transactions contemplated thereby by the Bancorp
shareholders at the Shareholders’ Meeting and
(ii) advise the Bancorp shareholders to reject any subsequent
proposal or offer received by Bancorp relating to any purchase,
sale, acquisition, merger or other form of business combination
involving Bancorp or any of its assets, equity securities or debt
securities and to proceed with the transactions contemplated by the
Reorganization Agreement; provided, however, that Shareholder shall
not be obligated to take any action specified above if the Board of
Directors of Bancorp is advised in writing by outside legal counsel
that, in the exercise of his or her fiduciary duties, a director of
Bancorp should not take such action.
1.5
Noncompetition.
Other than serving as a director, executive
officer or shareholder of CVCB or its subsidiaries, for a period of
twenty-four (24) months after the Effective Time of the Merger,
Shareholder agrees not to, without the prior written consent of
CVCB, own any shares of, organize, or otherwise be connected as an
officer, director, employee, principal, agent or consultant to any
financial institution (or any company directly or indirectly
controlled by, in control of or in common control with a financial
institution), other than CVCB or its subsidiaries, whose deposits
are insured by the Federal Deposit Insurance Corporation that has
its head offices or a branch office within San Joaquin County,
California. Attached hereto as Schedule 1.5 , if any,
is a true, complete and accurate list of (i) all direct or
indirect ownership interests of Shareholder in financial
institutions other than Bancorp or Bank (“ Existing Bank
Stock Ownership ”), and (ii) all consulting services
previously performed by Shareholder for financial institutions
other than Bancorp or Bank (“ Previously Performed
Consulting Services ”). The parties acknowledge and
agree that, notwithstanding anything in this Section 1.5 or in
Section 2.4 to the contrary, (x) the continued ownership
of the Existing Bank Stock Ownership (but no additions thereto) and
the future provision of Previously Performed Consulting Services
shall not violate the prohibitions set forth in this
Section 1.5 or in Section 2.4, (y) the direct or
indirect ownership of up to five percent (5%) of any class of
securities of a financial institution, or company that controls a
financial institution, shall not violate the prohibitions set forth
in this Section 1.5 provided that the main office of such
financial institution is not located in San Joaquin County,
California, and (z) with respect to a financial
institution
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with its main office located in San Joaquin
County, California, the direct or indirect ownership of up to the
lesser of ten thousand (10,000) shares or five percent (5%) of any
class of securities, shall not violate the prohibitions set forth
in this Section 1.5.
1.6
Stock Options . Shareholder shall not
exercise, and Company shall not permit Shareholder to exercise, any
stock options granted by Company or Company Bank to Shareholder
(“ Shareholder Stock Options ”).
Immediately prior to the Effective Time, the vesting of Shareholder
Stock Options shall accelerate and Company shall purchase each
outstanding and unexercised Shareholder 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 Shareholder Stock
Option; provided, however, that Shareholder 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 1.6, as of the Effective Time,
(i) all Shareholder Stock Options and the agreements under
which they were granted are hereby terminated,
(ii) Shareholder waives all rights in and to the Shareholder
Stock Options and the agreements under which they were granted, and
(iii) Shareholder 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 Shareholder 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 Shareholder Stock
Options.
1.7
Rule 144 . Shareholder
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 Shareholder
being deemed to be an affiliate of CVCB for purposes of
Rule 144 promulgated by the Securities and Exchange
Commission. Shareholder agrees to comply with any provisions
of Rule 144 that may be applicable to Shareholder.
ARTICLE II
CONFIDENTIAL INFORMATION.
2.1
Confidentiality.
Except as provided in Section 2.1 of this Agreement,
Shareholder agrees that during and after termination
of his or her directorship and/or 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, shareholders, licensees, licensors, vendors
or affiliates, that Shareholder may produce, obtain or otherwise
acquire or have access to during the course of his or her
directorship and/or employment by Bancorp, Bank, CVCB or CVC Bank
(whether before or after the date of this Agreement), including but
not
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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.
2.2
Limitation.
Shareholder 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 Shareholder’s obligations
hereunder, or (iii) is shown to have been known by Shareholder
prior to disclosure to Shareholder by Bancorp, Bank, CVCB or CVC
Bank. Without limiting the generality of the foregoing, the
parties agree that the identity of vendors commonly used in the
banking industry, and materials or computer programs of general
application and not containing any Bank customer data that were
created by Shareholder, are not Confidential Information.
2.3
Former Employer Information. Shareholder agrees that
he or she has not and will not, during the term of his or her
directorship and/or employment, (i) improperly use or disclose
any proprietary information or trade secrets of any former employer
or other person or entity with which Shareholder has an agreement
or duty to keep in confidence information acquired by Shareholder,
if any, or (ii) bring onto the premises of Bancorp, Bank, CVCB
or CVC Bank any document or confidential or proprietary information
belonging to such employer, person or entity unless consented to in
writing by such employer, person or entity; provided however that
this Section 2.3 shall not prevent Shareholder from making
proper use of Confidential Information in the ordinary course of
business during the term of his or her directorship and/or
employment with Bancorp, Bank, CVCB or CVC Bank and in accordance
with the terms of his or her directorship and/or employment.
2.4
Conflicting Activities. While serving as an officer
or director of Bancorp, Bank, CVCB or CVC Bank, Shareholder will
not work as an employee, director or consultant of any other
organization or engage in any other activities that conflict with
Shareholder’s obligations to Bancorp, Bank, CVCB or CVC Bank,
without the express prior written approval of CVC Bank.
2.5
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.
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2.6
Return of Confidential Material and Certification of
Compliance. In the event of Shareholder’s
termination of directorship and/or employment with Bancorp, Bank,
CVCB or CVC Bank for any reason whatsoever, Shareholder 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 of any nature pertaining to any
Confidential Information or to his or her employment, and
Shareholder will not retain or take with him any tangible materials
or electronically stored data, containing or pertaining to any
Confidential Information that Shareholder may produce, acquire or
obtain access to during the course of his or her directorship
and/or employment.
ARTICLE III
NONSOLICITATION
3.1
Nonsolicitation. Shareholder agrees that during the
period of his or her directorship and/or employment with Bancorp,
Bank, CVCB or CVC Bank and for twenty-four (24) months after the
date of termination of his or her directorship and/or employment
with Bancorp, Bank, CVCB or CVC Bank, he or she will not:
3.2
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, interview
or otherwise solicit employees to work for any other
competitor.
OR:
3.3
solicit, either on behalf of Shareholder or any third party, the
business of any client or customer of Bancorp, Bank, CVCB or CVC
Bank:
(a)
whose account Shareholder has been assigned to, serviced by or made
aware of during the twenty-four (24) month period prior to the date
of Shareholder’s termination of employment with or serving as
a director of Bancorp, Bank, CVCB or CVC Bank, or
(b)
using any Confidential Information of Bancorp, Bank, CVCB or CVC
Bank, either on behalf of Shareholder or
any third party
OR:
3.4
solicit the business of any prospective customer or client of
Bancorp, Bank, CVCB or CVC Bank:
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(a)
whose business Shareholder was involved in soliciting or recruiting
while employed by or serving as a director of Bancorp, Bank, CVCB
or CVC Bank, or
(b) using any Confidential
Information of Bancorp, Bank, CVCB or CVC Bank.
ARTICLE IV
EQUITABLE RELIEF
4.1
Equitable Relief.
Shareholder 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,
Shareholder agrees that if Shareholder 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. Shareholder further agrees that no bond or other
security shall be required in obtaining such equitable relief and
Shareholder hereby consents to such injunction’s issuance and
to the ordering of specific performance.
ARTICLE V
REPRESENTATIONS AND WARRANTIES
OF SHAREHOLDER
Shareholder 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:
5.1
Ownership and Related
Matters .
(a)
Schedule 5.1(a) hereto correctly sets forth the
number of Shares and the nature of Shareholder’s voting power
with respect thereto as of the date hereof. Within five business
days after the Record Date, Shareholder shall amend said
Schedule 5.1(a) to correctly reflect the number of Shares
and the nature of Shareholder’s voting power with respect
thereto as of the Record Date.
(b) There are no proxies,
voting trusts or other agreements or understandings to or by which
Shareholder or his or her spouse is a party or bound or that
expressly requires that any of the Shares be voted in any specific
manner other than as provided in this Agreement.
5.2
Authorization; Binding
Agreement. Shareholder 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 Shareholder enforceable in accordance with its terms,
except as the enforcement thereof may be limited by general
principles of equity.
5.3
Noncontravention.
The execution, delivery and performance of
this Agreement by Shareholder 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 Shareholder or his or her
spouse is subject.
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ARTICLE VI
GENERAL
6.1
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.
6.2
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
Shareholder) supersedes all prior agreements and understandings of
the parties in connection therewith.
6.3
Specific Performance.
Shareholder and CVCB each expressly
acknowledge that, in view of the uniqueness of the obligations of
Shareholder 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 Shareholder in accordance with its terms,
and therefore Shareholder 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.
6.4
Termination.
This entire Agreement shall terminate
automatically without further action at the termination of the
Reorganization Agreement in accordance with its terms except as
provided in Sections 1.2 and 1.5 of this Agreement. 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.
6.5
No Assignment.
Neither this Agreement nor any rights,
duties or obligations hereunder shall be assignable by CVCB or
Shareholder, 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.
6.6
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.
6.7
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.
6.8
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.
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6.9
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
Shareholder:
With a copy to:
Dodd ·
Mason · George LLP
Attention: Glenn T. Dodd, Esq.
1740 Technology Drive, Suite 205
San
Jose, CA 95110
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 6.9. 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.
6.10
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.
6.11
Not in Director Capacity.
Except to the extent set forth in
Section 1.4, no person executing this Agreement who is, during
the term hereof, a director of Bancorp, makes any agreement or
understanding herein in his or her capacity as such director. The
parties sign solely in their capacities as owners of or holders of
the power to vote shares of Bancorp Stock.
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6.12
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.
6.13
Regulatory Compliance.
Each of the provisions of this Agreement is
subject to compliance with all applicable regulatory requirements
and conditions.
6.14
Arbitration . Except for
actions for equitable relief (including, without limitation, those
contemplated by Sections 4.1 and 6.3 of this Agreement), any
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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SPOUSAL CONSENT
I
am the spouse
of ,
Shareholder 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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(Shareholder’s Spouse’s
Name)
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SHAREHOLDER’S
AGREEMENT
THIS SHAREHOLDER’S
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 shareholder and officer and/or director of Bancorp (
“Shareholder” ).
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.
Shareholder is a member of
the Board of Directors and/or an executive officer of Bancorp
and/or Bank and owns shares of the common stock, no par value, of
Bancorp ( “Bancorp Stock” ).
C.
Shareholder is willing to
agree to vote or cause to be voted all shares of Bancorp Stock with
respect to which Shareholder has voting power on the date hereof or
hereafter acquired to approve the Reorganization Agreement and the
transactions contemplated thereby and all requisite matters related
thereto.
D.
Shareholder is willing to
agree to not compete with, use trade secrets or solicit customers
or employees of CVCB, CVC Bank, Bancorp or Bank as set forth in
this Agreement.
E.
Unless otherwise provided
in this Agreement, capitalized terms shall have the meanings given
to them in the Reorganization Agreement. In addition, the
term “director” shall include advisory directors, if
any, and the term “directorship” shall include advisory
directorships, if any.
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 Shareholder
agree as follows:
ARTICLE I
DIRECTOR/OFFICER-SHAREHOLDER’S
AGREEMENT
1.1
Agreement to
Vote. Shareholder shall vote,
or cause to be voted, at any meeting of shareholders of Bancorp to
approve the Reorganization Agreement and the transactions
contemplated thereby (the “Shareholders’
Meeting” ), all of the shares of Bancorp Stock over which
Shareholder has voting authority (the “Shares”
), as of the record date established to
1
determine shareholders
who have the right to vote at any such Shareholders’ Meeting
or to give consent to action in writing (the “Record
Date” ), to approve the Reorganization Agreement, the
Agreement of Merger and the transactions contemplated thereby,
including the principal terms of the Merger.
1.2
[Intentionally
Omitted]
1.3
Restrictions on
Dispositions. Shareholder agrees that,
from and after the date of this Agreement and during the term of
this Agreement, he or she will not take any action that will
adversely affect his or her ability to comply with the obligations
imposed by this Agreement to vote the Shares, except (i) with
the prior written consent of CVCB or (ii) to change such right
from that of a shared right of Shareholder to vote the Shares to a
sole right of Shareholder to vote the Shares. Without
limiting the generality of the foregoing, Shareholder shall take no
actions that will reduce the number of Shares held by Shareholder
as of the date hereof.
1.4
Shareholder
Approval. Shareholder shall
(i) recommend shareholder approval of the Reorganization
Agreement, the Agreement of Merger and the transactions
contemplated thereby by the Bancorp shareholders at the
Shareholders’ Meeting and (ii) advise the Bancorp
shareholders to reject any subsequent proposal or offer received by
Bancorp relating to any purchase, sale, acquisition, merger or
other form of business combination involving Bancorp or any of its
assets, equity securities or debt securities and to proceed with
the transactions contemplated by the Reorganization Agreement;
provided, however, that Shareholder shall not be obligated to take
any action specified above if the Board of Directors of Bancorp is
advised in writing by outside legal counsel that, in the exercise
of his or her fiduciary duties, a director of Bancorp should not
take such action.
1.5
Noncompetition.
Other than
serving as a director, executive officer or shareholder of CVCB or
its subsidiaries, for a period of twenty-four (24) months after the
Effective Time of the Merger, Shareholder agrees not to, without
the prior written consent of CVCB, own any shares of, organize, or
otherwise be connected as an officer, director, employee,
principal, agent or consultant to any financial institution (or any
company directly or indirectly controlled by, in control of or in
common control with a financial institution), other than CVCB or
its subsidiaries, whose deposits are insured by the Federal Deposit
Insurance Corporation that has its head offices or a branch office
within San Joaquin County, California. Attached hereto as
Schedule 1.5 , if any, is a true, complete and accurate list
of (i) all direct or indirect ownership interests of
Shareholder in financial institutions other than Bancorp or Bank
(“ Existing Bank Stock Ownership ”), and
(ii) all consulting services previously performed by
Shareholder for financial institutions other than Bancorp or Bank
(“ Previously Performed Consulting Services
”). The parties acknowledge and agree that,
notwithstanding anything in this Section 1.5 or in
Section 2.4 to the contrary, (x) the continued ownership
of the Existing Bank Stock Ownership (but no additions
thereto)
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