This Agreement is made and is effective as of June 1, 2003, by and between Coast National Bank, a
national banking association (“Coast”), and Coast Bancorp, a California corporation (“Bancorp”) and Jack C.
WHEREAS, Executive is currently employed by Coast in the capacity as Chairman of the Board,
President and Chief Executive Officer, and Executive’s background, expertise and efforts have contributed to the
success and financial strength of Coast; and
WHEREAS, Coast wishes to assure itself of the continued opportunity to benefit from Executive’s
services for the period provided in this Agreement, and Executive wishes to serve in the employ of Coast on a
full-time basis solely in accordance with the terms hereof for such purposes; and
WHEREAS, the Board of Directors of Coast (“Board”) has determined that the best interests of Coast
would be served by Executive’s continued employment with Coast under the terms of this Agreement;
NOW, THEREFORE, in order to effect the foregoing, the parties hereto wish to enter into an
employment agreement on the terms and conditions set forth below. Accordingly, in consideration of the
premises and the respective covenants and agreements of the parties herein contained, and intending to be legally
bound hereby, the parties hereto agree as follows:
1. Definitions .
(a) “Agreement” means this employment agreement and any amendments hereto complying with
Section 15(a) hereof.
(b) “Board” means the Board of Directors of Coast unless the context otherwise requires.
(c) “Cause” means:
(1) Executive commits any act of embezzlement, fraud, dishonesty or breach of fiduciary
(2) Executive commits any act of unauthorized disclosure of any secrets or confidential
information of the Bank or induces any client, employee or customer of the Bank to break any
contract with the Bank;