The Chief Banking Officer is a newly created position that reports directly to Simone Lagomarsino, President and CEO of the Company. Lagomarsino will remain the Bank's CEO. Arredondo will lead the Bank's customer-facing functions, including consumer and business banking, mortgage and marketing. He has more than 40 years of commercial and retail banking experience.

Prior to joining the Bank, Arredondo worked for Rabobank California, Roseville, CA for over nine years, last serving as President and Chief Operating Officer. Prior to Rabobank, Arredondo served as Executive Vice President and Chief Operating Officer at Mellon 1st Business Bank, Los Angeles, CA. He also held management positions at Santa Monica Bank and Bank of America.

The terms of Mr. Arredondo's at will employment arrangement with the Bank provide that he will: (i) earn an initial annual salary of $300,000, (ii) receive a sign on bonus of $40,000 subject to certain conditions; (iii) receive (subject to board approval) a restricted stock grant with a fair value up to $60,000 and a five-year vesting schedule, vesting 33.33% at the end of years 3, 4 and 5; (iv) receive (subject to board approval) incentive stock options with a fair value up to $40,000 and a four-year vesting schedule; (v) be eligible to participate in the Bank's incentive compensation plan at a pro-rated target of 38.5% of base, (vi) be eligible to participate in the Bank's 401(k) Plan, (vii) receive an auto allowance of $1,000 per month, and (viii) be eligible to participate in the Bank's other general employee benefits available to Company and Bank employees. In addition, upon completion of his first 90 days of employment and subject to board approval, Mr. Arredondo will be provided an agreement which will provide a payout equal to 18 month's salary in the event of a change in control.