EXHIBIT 10.8
BAY CITIES BANK
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
PARTICIPATION AGREEMENT
THIS PARTICIPATION AGREEMENT (the "Participation Agreement") is
entered into as of this 25th day of January, 2002 by and between Bay Cities
Bank (the "Employer"), and Xxxx Xxxxxx, an executive of the Employer (the
"Participant").
RECITALS:
WHEREAS, the Employer has adopted the Bay Cites Bank Supplemental
executive Retirement Plan ("Plan") effective as of January 25, 2002, and the
Administrator has determined that the Participant shall be eligible to
participate in the Plan on the terms and conditions set forth in this
Participation Agreement and the Plan;
NOW, THEREFORE, in consideration of the foregoing and the agreements
and covenants set forth herein, the parties agree as follows:
1. Definitions. Except as otherwise provided, or unless the
context otherwise requires, the terms used in this Participation Agreement
shall have the same meanings as set forth in the Plan.
2. Plan. Plan means the Bay Cities Bank Supplemental executive
Retirement Plan, as the same may be altered or supplemented in any validly
executed Participation Agreement.
3. Incorporation of Plan. The Plan, a copy of which is attached
hereto as Exhibit A, is hereby incorporated into this Participation Agreement
as if fully set forth herein, and the parties hereby agree to be bound by all
of the terms and provisions contained in the Plan. The Participant hereby
acknowledges receipt of a copy of the Plan and, subject to the foregoing,
confirms his understanding and acceptance of all of the terms and conditions
contained therein.
4. Effective Date of Participation. The effective date of the
Participant's participation in the Plan shall be January 25, 2002 (the
"Participation Date").
5. Normal Retirement Age. The Participant's Normal Retirement
Age for purposes of the Plan and this Participation Agreement is age sixty-five
(65).
6. Prohibition Against Funding. Should any investment be
acquired in connection with the liabilities assumed under the Plan dn
Participation Agreement it is expressly understood and agreed that the
Participants and Beneficiaries shall not have any right with respect to, or
claim against, such assets nor shall any such purchase be construed to create a
trust of any kind or a fiduciary relationship between the Employer and the
Participants, their Beneficiaries, or any other person. Any such assets shall
be and remain a part of the general unpledged, unrestricted assets of the
Employer, subject to the claims of its general creditors. It is the express
intention of the parties hereto that this arrangement shall be unfunded for tax
purposes and for purposes of Title I of ERISA. The Participant shall be
required to look to the provisions of the Plan and to the Employer itself for
enforcement of any and all benefits due under this Participation Agreement,
and, to the extent the Participant acquires a right to receive payment under
the Plan and this
Participation Agreement, such right shall be no greater than the right of any
unsecured general creditor of the Employer. The Employer shall be designated
the owner and beneficiary of any investment acquired in connection with its
obligation under the Plan and this Participation Agreement.
7. Provisions Related to SERP Benefit.
a. Benefit. The SERP Benefit for the Participant shall
be an annual payment of ONE HUNDRED AND FIFTY
THOUSAND DOLLARS ($150,000), for a period of fifteen
(15) years beginning in the year of the last to
occur of Participant's termination of employment or
attaining Normal retirement Age; provided, however,
that the amount of such annual payment shall be
subject to the vesting provisions set forth in
subparagraph (b) below.
b. Vesting. Participant's right to payment of the SERP
Benefit shall begin to vest after completion of ten
(10) continuous Years of Service from the date
hereof. For each Year of Service thereafter
completed, Participant shall vest in and be entitled
to a percentage of the SERP Benefit described in
subparagraph (a) above along the following schedule:
Years of Service Percentage Vested
---------------- -----------------
1 Ten Percent (10%)
2 Fifteen Percent (15%) plus amounts
previously vested for a total of Twenty-Five
Percent (25%)
3 Fifteen Percent (15%) plus amounts
previously vested for at total of Forty Percent
(40%)
4 Fifteen Percent (15%) plus amounts
previously vested for a total of Fifty-Five Percent
(55%)
5 Fifteen Percent (15%) plus amounts
previously vested for a total of Seventy Percent
(70%)
6 Fifteen Percent (15%) plus amounts
previously vested for a total of Eighty-Five
Percent (85%)
7 Fifteen Percent (15%) plus amounts
previously vested for a total of One Hundred
Percent (100%)
c. If Participant shall terminate employment before
becoming fully vested in accordance with the
foregoing schedule, then the Employer shall begin
paying Participant the percentage of the SERP
Benefit in which the Participant was vested at the
time of termination of employment when the
Participant attains or would have attained Normal
Retirement Age. In the alternative, the Employer
may, at its
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sole option, pay to the Participant the present
commuted value of such SERP Benefit payment,
calculated as of the date of termination of
employment in accordance with generally accepted
actuarial principles. In the event Participant
terminates employment prior to becoming vested in at
least some percentage of the SERP Benefit in
accordance with the foregoing schedule, the
Participant shall forfeit any and all rights to
payment of the SERP Benefit.
d. Termination of Employment after Age 55 but Before
Normal Retirement Age. If Participant terminate
employment after reaching the age of fifty-five
(55), but before reaching Normal Retirement Age, at
the election of the employee the Employer will in
good faith negotiate for the SERP benefit to be paid
to Participant immediately in an amount and for a
term based on: (i) the vesting schedule above; (ii)
the difference between the then cash value of any
investment acquired in line with Section 6 above and
the Employer's actual cash investment in the same;
and (iii) the Employer's need to recapture its
investment in connection with liabilities assumed
under the Plan.
e. Change of Control. Notwithstanding the foregoing
provisions, upon the occurrence of a Change of
Control, as defined in the Plan, Participant shall
immediately become One Hundred Percent (100%) vested
in the SERP Benefit as described in subparagraph (a)
above.
f. Participant Disability. Notwithstanding the
foregoing provisions, if Participant terminates
employment due to Disability, Participant shall
immediately become One Hundred Percent (100% vested
in the SERP Benefit as described in paragraph (a)
above.
g. Form of SERP Benefit Payment. The annual SERP
Benefit will be paid equally in monthly installments
during the payment period. Each monthly installment
shall equal one-twelfth of the total annual SERP
Benefit. Upon the Participant's death, all remaining
payment shall be paid to the Participant's
Beneficiary(ies). Such distribution of the
aforementioned SERP Benefit shall commence on the
first day of the calendar month next following the
Participant's Normal Retirement or death.
h. Beneficiary. Each Participant may, from time to
time, designate one or more persons (whom ay be any
one or more members of such person's family or other
persons, administrators, trusts, foundations or
other entities) as his Beneficiary under the
Participation Agreement. Such designation shall be
made on a form prescribed by the Administrator (an
example of such form is attached hereto as Exhibit
B). Each Participant may at any time, and from time
to time, change any previous Beneficiary
designation, without notice to or consent of any
previously designated Beneficiary, by amending his
or her previous designation on a form prescribed by
the Administrator. If no person shall be designated
by the Participant as a Beneficiary, or if the
designated Beneficiary shall not survive the
Participant, payment of his interest shall be made
to the Participant's estate. If more than one person
is the beneficiary of a deceased Participant, each
such
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person shall receive a pro rata share of any death
benefit payable unless otherwise designated on the
applicable form.
8. General Provisions.
a. No Assignment.
No benefit under the Participation Agreement shall
be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge,
encumbrance, or charge, and any such action shall be
void for all purposes of the Participation
Agreement. No benefit shall in any manner be subject
to the debts, contracts, liabilities, engagements,
or torts of any person, nor shall it be subject to
attachments or other legal process for or against
any person, except to such extent as may be required
by law.
b. Headings.
The headings contained in the Participation
Agreement are inserted only as a matter of
convenience and for reference and in no way define,
limit, enlarge, or describe the scope or intent of,
or in any way affect this Participation Agreement or
the construction of any provision thereof.
c. Terms.
Capitalized terms shall have meaning as defined
herein. Singular nouns shall be read as plural,
masculine pronouns shall be read as feminine, and
vice versa, as appropriate.
d. Successors.
This Participation Agreement shall be binding upon
each of the parties and shall also be binding upon
their respective successors and the Employer's
assigns.
e. Amendments.
This Participation Agreement may not be modified or
amended except by a duly executed instrument in
writing signed by the Employer and the Participant.
IN WITNESS WHEREOF, each of the parties has caused this Participation
Agreement to be executed as of the day first above written.
PARTICIPANT: BAY CITIES BANK:
/s/ Xxxx Xxxxxx By: /s/ A. Xxxxxxx Xxxxxx
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XXXX XXXXXX Title: Chairman
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