March 15, 1999
Xx. Xxxxxxx X. Xxxx
00 Xxxxxxxxx Xxxxx
Xxxxxx, Xxxxxxxxxx 00000
Dear Xxxx:
Pursuant to our discussion, the bonus eligibility portion of your agreement
dated February 9, 1998 with Eldorado Bank was amended, retroactive to January 1,
1999.
Bonus Eligibility: Payable based on 1999 annual (calendar year) net income of
Mortgage Banking Division:
Net Income * Bonus Payments
---------------------------------------
Under $1,000,000 0
Over $1,000,000 $ 50,000
Over $2,000,000 $125,000
Over $3,000,000 $175,000
Over $4,000,000 $225,000
Over $5,000,000 $275,000
Over $6,000,000 $325,000
If earned, payable after completion of Bank's annual audited
financial statements. No bonus is earned or is payable
unless you are actively employed as of the bonus payment
date. Therefore, should your employment terminate for the
reasons of (1) voluntary resignation or (2) for cause, you
have not earned any bonus for the calendar year covered by
this bonus plan. If the Mortgage Division is sold and as a
result of that sale your employment is terminated within 90
days of the date of sale, you will be eligible for a bonus
payment pro-rated from January 1, 1999, through the date
your employment terminates.
Any bonus payment will be pro-rated between net income
levels and bonus payment amounts are based on actual net
income performance, adjusted as outlined below. Your bonus
eligibility may be changed in the future at the discretion
of the Bank.
* Net Income Adjustments:
" plus legal costs associated with Xxxxxxxx, et
al cases;
" cost of funds will be equal to Eldorado
Bank's cost to fund warehouse line - now fed
funds rate plus 1%;
" inter-company charges, i.e., Human Resources,
Accounting, MIS, etc. will be charged to the
division in accordance with Eldorado Bank's
1999 approved budget as of January 27, 1999,
and
" taxes will be calculated at actual rates.
In addition, the Committee granted you an option to purchase an additional
5,000 shares of Eldorado Bancshares, Inc. Class B Common Stock pursuant to terms
similar to that previously granted to you. This brings the total options
granted to you to 10,000 shares. A separate Option Agreement will be forwarded
under separate cover.
Sincerely,
/s/ Xxxxxx X. Xxxxxx Approved by: /s/ Xxxxxxx X. Xxxx Date: 3/18/99
Xxxxxx X. Xxxxxx
President and Chief Executive Officer
