Temecula Valley Bank Bonus Pool Arrangement for Executive Officers (2005–2006)

Summary

Temecula Valley Bank has established a bonus pool equal to about 10% of Temecula Valley Bancorp Inc.'s pre-tax, pre-bonus net income to pay annual incentive bonuses to certain officers. Some bonuses are discretionary, while others are fixed by employment agreements. For 2005 and 2006, CEO Stephen H. Wacknitz receives 6% and 5% respectively of pre-tax, pre-bonus net income. William McGaughey, Executive VP/COO, receives the greater of $100,000 or 1.5% of pre-tax net income. Other executives may receive bonuses based on performance, subject to board approval.

EX-10.35 3 a5074570ex10_35.txt EXHIBIT 10.35 Exhibit 10.35--Bonus Pool Arrangement Temecula Valley Bank ("Bank") has earmarked approximately 10% of the pre tax, pre bonus net income of Temecula Valley Bancorp Inc ("Company"), payable by the Bank, to pay annual incentive bonuses to certain officers of the Bank. Within the group entitled to participate in pool are the officers designated below as well as other officers of the Bank. The bonus paid to some officers is discretionary and for others, the amount is fixed in the Employment Agreement of the involved individual. For the year ended December 31, 2005, pursuant to the Employment Agreement of Stephen H. Wacknitz, CEO, President and Chairman of the Bank, he is entitled to receive 6% of the pre tax, pre bonus net income of the Company. For the year ended December 31, 2006, pursuant to his Employment Agreement, he is entitled to receive 5% of the pre tax, pre bonus net income of the Company. Pursuant to the Employment Agreement of William McGaughey, Executive Vice President/ Chief Operating Officer, he is entitled to receive the greater of $100,000 or 1.5% of the pre-tax net income of the Company, payable by the Bank. Upon the recommendation of the Executive Compensation Committee and approval by the Board of Directors, the following executives may receive an annual incentive bonus based upon performance: a. James Andrews, Executive Vice President/Real Estate Industries Group b. Donald A. Pitcher, Executive Vice President/Chief Financial Officer c. Thomas Shepherd, Executive Vice President/Chief Credit Officer d. Scott J. Word, Executive Vice President/ Senior Lending Officer