VINEYARD NATIONAL BANCORP
THIRD MODIFICATION AGREEMENT AND COVENANT WAIVER BETWEEN VNBC AND FIRST TENNESSE
<DOCUMENT>
<TYPE>EX-10.19
<SEQUENCE>7
<FILENAME>exhibit10-19.htm
<DESCRIPTION>THIRD MODIFICATION AGREEMENT AND COVENANT WAIVER BETWEEN VNBC AND FIRST TENNESSEE BANK, NATIONAL ASSOCIATION
<TEXT>
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    <div style="TEXT-ALIGN: right"><font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
      10.19</font></div>
    <div>
      <hr style="COLOR: black" align="left" noshade size="1" width="100%">
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif">THIRD
      MODIFICATION AGREEMENT AND COVENANT WAIVER</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif">This
      Third Modification Agreement and Covenant Waiver (this &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Agreement</font>&#8221;) is made
      as of April 11, 2008 but effective March 15, 2008 (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Effective Date</font>&#8221;), by
      and between VINEYARD NATIONAL BANCORP, a California corporation (&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Borrower</font>&#8221;) and FIRST
      TENNESSEE BANK NATIONAL ASSOCIATION (&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Lender</font>&#8221;).&#160;&#160;Unless
      otherwise set forth herein, all capitalized terms used herein shall have the
      meaning given such terms in the Loan Documents (defined below).</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      WHEREAS, in connection with a $70,000,000.00 loan from Lender to Borrower (the
      &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Loan</font>&#8221;), the
      Borrower executed and delivered to Lender that certain Amended and Restated
      Promissory Note (&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Note</font>&#8221;) dated March
      29, 2007, that certain Loan Agreement (&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Loan Agreement</font>&#8221;),
      that certain&#160;&#160;Pledge Agreement together with Addendum to Pledge
      Agreement (collectively the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Pledge</font>&#8221;), each dated
      as of March 17, 2006, that certain Modification Agreement effective as of May
      11, 2006&#160;&#160;(&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">First Modification</font>&#8221;),
      and that certain Second Modification Agreement and Covenant Waiver effective
      as
      of March 29, 2007 (&#8220;Second Modification&#8221;) (this Agreement, the Note, the Loan
      Agreement, the Pledge, the First Modification, the Second Modification and
      any
      other documents executed by Borrower in connection with the Loan are
      collectively herein referred to as the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Loan
      Documents</font>&#8221;);</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      WHEREAS, Borrower desires to extend the maturity date of the Loan through June
      30, 2008;</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      WHEREAS, on or about May 17, 2006, Lender granted Borrower a waiver of the
      Tier
      1 Capital Ratio covenant as set forth in Section 4.11 of the Loan Agreement
      through and including the period ending March 31, 2007 and on March 10, 2008
      Lender granted Borrower a waiver (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Financial Covenant
      Waiver</font>&#8221;) of the Tier 1 Capital Ratio, Return on Average Assets Ratio, and
      Non-performing Loans Ratio covenants (collectively, the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Financial Covenants</font>&#8221;)
      set forth in Sections 4.11, 6.1(e), and 6.1(f), respectively, of the Loan
      Agreement between the period of December 31, 2007 and March 15, 2008 and
      Borrower has requested that Lender extend the Financial Covenant Waiver through
      and including June 30, 2008;</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>WHEREAS,
      Borrower has disclosed to and
      has requested from Lender a waiver (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Additional Waiver</font>&#8221;)
      of Borrower&#8217;s non-compliance with (i) Section 4.5 (Financial Reports) due to
      Borrower&#8217;s failure to submit its 2007 Annual Report on Form 10-K to Lender
      within ninety (90) days after the year ended December 31, 2007, and (ii) Section
      5.2 (Dividends, Redemptions and Other Payments) due to Borrower&#8217;s payment of a
      dividend on its common stock during the first quarter of 2008;</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif">WHEREAS,
      Borrower (i) is the sole common stockholder of Vineyard Statutory Trust I,
      Vineyard Statutory Trust II, Vineyard Statutory Trust III, Vineyard Statutory
      Trust IV, Vineyard Statutory Trust V, Vineyard Statutory Trust VI, Vineyard
      Statutory Trust VII, Vineyard Statutory Trust VIII, Vineyard Statutory Trust
      IX,
      and Vineyard Statutory Trust X (collectively, &#8220;the <font style="DISPLAY: inline; TEXT-DECORATION: underline">Trusts</font>&#8221;), and (ii)
      issued approximately $115 million of Floating Rate Junior Subordinated
      Debentures (collectively, the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Subordinated
      Debentures</font>&#8221;) representing the amounts owed by Borrower to the
      Trusts.&#160;&#160;As of March 15, 2008, the weighted average annual interest
      rate on the Subordinated Debentures was 6.60% and Borrower is required to make
      quarterly payments of accrued interest on the Subordinated Debentures (the
      &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Subordinated
      Debenture Interest Payments</font>&#8221;);</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif">WHEREAS,
      in 2002 Borrower issued approximately $5 million of subordinated debentures
      (the
&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Subordinated
      Debt</font>&#8221;), which Subordinated Debt bears a floating rate of interest of
      3.05% over the three month LIBOR and requires quarterly interest payments (the
      &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Subordinated Debt
      Interest Payments</font>&#8221;);</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif">WHEREAS,
      Borrower (i) in 2006 issued 10,000 shares of Floating Rate Series C
      Noncumulative Redeemable Perpetual Preferred Stock (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Series C Preferred
      Stock</font>&#8221;), each share of which Series C Preferred Stock is entitled to a
      noncumulative, annual dividend at the rate of three-month LIBOR plus 3.80%,
      payable quarterly (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Series C Preferred
      Stock
      Dividend</font>&#8221;), and (ii)&#160;&#160;in 2007 issued 2,300,000 shares of 7.50%
      Series D Noncumulative Preferred Stock (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Series D Preferred
      Stock</font>&#8221;), each share of which is entitled to a noncumulative annual
      dividend at a fixed rate of 7.50% per annum, payable quarterly (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Series D Preferred
      Stock
      Dividend</font>&#8221; and collectively with the Subordinated Debenture Interest
      Payments, the Subordinated Debt Interest Payments and the Series C Preferred
      Stock Dividends, the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Dividend</font>&#8221;);</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif">WHEREAS,
      Borrower has requested from Lender a waiver Section 5.2 (Dividends, Redemptions
      and Other Payments) (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Dividend Covenant</font>&#8221;)
      with respect to Borrower&#8217;s payment of the Dividend during the period ending on
      the New Maturity Date (defined below) (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Dividend Waiver</font>&#8221; and
      collectively with the Financial Covenant Waiver and the Additional Waiver,
      the
&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Waivers</font>&#8221;)</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif">WHEREAS,
      subject to the terms and conditions contained herein, Lender is willing to
      (i)
      extend the Maturity Date of the Loan, (ii) grant the Financial Covenant Waiver,
      (iii) grant the Additional Waiver, and (iv) grant the Dividend Waiver.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif">NOW,
      THEREFORE, FOR MUTUAL CONSIDERATIONS, the receipt and sufficiency of which
      is
      hereby acknowledged, the undersigned Borrower and Lender do hereby modify the
      Loan Documents as follows:</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000">1)</font></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000; TEXT-DECORATION: underline">Capitalized
      Terms</font><font style="DISPLAY: inline; COLOR: #000000">.&#160;&#160;Any
      capitalized term used but not defined herein shall have the meaning ascribed
      to
      it in the Loan Documents.&#160;&#160;All references to the &#8220;Loan Documents&#8221; in
      the Loan Agreement and any of the other Loan Documents shall include, without
      limitation, this Agreement and all other such Loan Documents, as modified by
      this Agreement.</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000">2)</font></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000; TEXT-DECORATION: underline">Extension
      of
      Maturity Date; Waiver</font><font style="DISPLAY: inline; COLOR: #000000">.
      Subject to Borrower&#8217;s compliance with all representations, warranties, covenants
      and agreements contained in this Agreement and all the other Loan Documents
      as
      modified hereby:</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000">a.</font></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000; TEXT-DECORATION: underline">Maturity
      Date</font><font style="DISPLAY: inline; COLOR: #000000">.</font><font style="DISPLAY: inline; COLOR: #000000">&#160;&#160;The
&#8220;Maturity
      Date&#8221; set
      forth in the Loan Agreement and elsewhere in the Loan Documents is hereby
      modified to mean June 30, 2008 (the &#8220;</font><font style="DISPLAY: inline; COLOR: #000000; TEXT-DECORATION: underline">New
      Maturity
      Date</font><font style="DISPLAY: inline; COLOR: #000000">&#8221;).</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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          <hr style="COLOR: black" noshade size="2">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000">b.</font></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000; TEXT-DECORATION: underline">Financial
      Covenant Waiver</font><font style="DISPLAY: inline; COLOR: #000000">.&#160;&#160;</font><font style="DISPLAY: inline; COLOR: #000000">Lender
      hereby extends the </font><font style="DISPLAY: inline; COLOR: #000000">Financial Covenant </font><font style="DISPLAY: inline; COLOR: #000000">Waiver
</font><font style="DISPLAY: inline; COLOR: #000000">for
      a period </font><font style="DISPLAY: inline; COLOR: #000000">through and including
</font><font style="DISPLAY: inline; COLOR: #000000">the
      New Maturity Date. </font><font style="DISPLAY: inline; COLOR: #000000">The </font><font style="DISPLAY: inline; COLOR: #000000">waiver
      contained in this Section 2(b) is
      limited to only the Financial Covenants (i.e. the covenants contained in
      Sections 4.11, 6.1(e), and 6.1(f) of the Loan Agreement) for the period ending
      on the New Maturity Date.&#160;&#160;</font><font style="DISPLAY: inline; COLOR: #000000">Lender&#8217;s waiver of the </font><font style="DISPLAY: inline; COLOR: #000000">Financial
</font><font style="DISPLAY: inline; COLOR: #000000">Covenants
      as set forth </font><font style="DISPLAY: inline; COLOR: #000000">in this Section 2(b)
</font><font style="DISPLAY: inline; COLOR: #000000">shall
      not constitute Lender&#8217;s consent to
      waive any other covenants or defaults by Borrower under the Loan
      Documents.</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000">c.</font></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000; TEXT-DECORATION: underline">Additional
      Waiver</font><font style="DISPLAY: inline; COLOR: #000000">.&#160;&#160;Lender
      hereby grants the Additional Waiver to Borrower.&#160;&#160;</font><font style="DISPLAY: inline; COLOR: #000000">Lender&#8217;s </font><font style="DISPLAY: inline; COLOR: #000000">grant
      of the Additional Waiver is a
      single </font><font style="DISPLAY: inline; COLOR: #000000">waiver of
</font><font style="DISPLAY: inline; COLOR: #000000">Borrower&#8217;s
      non-compliance
      with the applicable covenants prior to the date of this Agreement and shall
      </font><font style="DISPLAY: inline; COLOR: #000000">not constitute Lender&#8217;s
</font><font style="DISPLAY: inline; COLOR: #000000">waiver
      or </font><font style="DISPLAY: inline; COLOR: #000000">consent to </font><font style="DISPLAY: inline; COLOR: #000000">any
      future non-compliance, nor shall it
      constitute Lender&#8217;s </font><font style="DISPLAY: inline; COLOR: #000000">waive</font><font style="DISPLAY: inline; COLOR: #000000">r
      of</font><font style="DISPLAY: inline; COLOR: #000000">any other covenants or
      defaults by
      Borrower under the Loan Documents</font><font style="DISPLAY: inline; COLOR: #000000">.</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000">d.</font></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000; TEXT-DECORATION: underline">Dividend
      Waiver</font><font style="DISPLAY: inline; COLOR: #000000">.&#160;&#160;</font><font style="DISPLAY: inline; COLOR: #000000">Lender
      hereby </font><font style="DISPLAY: inline; COLOR: #000000">grants</font><font style="DISPLAY: inline; COLOR: #000000">the
</font><font style="DISPLAY: inline; COLOR: #000000">Dividend
      Waiver for a period
</font><font style="DISPLAY: inline; COLOR: #000000">through and including
      </font><font style="DISPLAY: inline; COLOR: #000000">the New Maturity Date.
      </font><font style="DISPLAY: inline; COLOR: #000000">The </font><font style="DISPLAY: inline; COLOR: #000000">waiver
      contained in this Section 2(d) is
      limited to only the Dividend (i.e. </font><font style="DISPLAY: inline; COLOR: #000000">the Subordinated Debenture
      Interest
      Payments, the Subordinated Debt Interest Payments</font><font style="DISPLAY: inline; COLOR: #000000">, </font><font style="DISPLAY: inline; COLOR: #000000">the
      Series C Preferred Stock
      Dividends</font><font style="DISPLAY: inline; COLOR: #000000">and the
</font><font style="DISPLAY: inline; COLOR: #000000">Series
      D Preferred Stock
      Dividend</font><font style="DISPLAY: inline; COLOR: #000000">) for the period
      ending on the New Maturity Date.&#160;&#160;</font><font style="DISPLAY: inline; COLOR: #000000">Lender&#8217;s waiver of the </font><font style="DISPLAY: inline; COLOR: #000000">Dividend
      Covenant </font><font style="DISPLAY: inline; COLOR: #000000">as set forth </font><font style="DISPLAY: inline; COLOR: #000000">in
      this Section 2(d) </font><font style="DISPLAY: inline; COLOR: #000000">shall not constitute
      Lender&#8217;s consent to
      waive any other covenants or defaults by Borrower under the Loan
      Documents.</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif">3)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Modification
      of the
      Note</font>.&#160;&#160;The Note and, where applicable, the other Loan
      Documents) are hereby modified as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif">a.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Interest
      Rate</font>.&#160;&#160;From and after March 15, 2008, interest shall accrue on
      the outstanding principal balance of the Note at a variable annual rate equal
      to
      the LIBOR Rate, as hereinafter defined, plus three hundred five (305) basis
      points (LIBOR Rate + 3.05%). As used herein, the term "LIBOR Rate" refers to
      the
      one month London Interbank Offered Rate, as determined by Lender from time
      to
      time in its sole (but reasonable) discretion.&#160;&#160;The LIBOR Rate shall be
      determined by Lender as of March 15, 2008 and adjusted by Lender on the same
      day
      of each month hereafter (or, if such date is not a business day, then on the
      next preceding business day).&#160;&#160;&#160;Each change in the rate of
      interest to be charged hereunder shall become effective, without notice to
      Borrower, on the date of such adjustment. Interest shall be calculated on the
      basis of a 360 day year and the actual number of calendar days
      elapsed.&#160;&#160;Notwithstanding anything else in this instrument to the
      contrary, in no event shall the maximum rate of interest payable in respect
      to
      the indebtedness evidenced hereby exceed the maximum rate of interest allowed
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      Schedule</font>.&#160;&#160;Said principal and accrued interest thereon shall be
      due and payable as hereinafter set forth:</font></div>
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      ($5,000,000.00) of the outstanding principal balance of the Loan.</font></div>
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      payable without demand.</font></div>
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      Loan, and Lender has no obligation to advance any new loan proceeds under the
      Loan.</font></div>
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      of Loan
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      Ownership</font>.&#160;&#160;Borrower shall not permit any significant change in
      the ownership, executive staff or management of Borrower or the Bank without
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      of Borrower and the Bank are material factors in Lender&#8217;s willingness to
      institute and maintain a lending relationship with Borrower.</font></div>
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      upon and subject to the timely satisfaction by Borrower of each of the following
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      representations and warranties made by Borrower to Lender under this Agreement
      and the other Loan Documents (including without limitation all of Borrower&#8217;s
      representations and warranties set forth in Section 3.9 of the Loan Agreement
      regarding the Pledged Shares of Bank stock) are and shall remain true and
      correct through and including the New Maturity Date and payment in full of
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      Financial Covenants, as waived hereby</font><font style="DISPLAY: inline; COLOR: #000000">).</font></font></div>
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      other Loan Documents without any further cure or grace period, notwithstanding
      anything to the contrary in the Loan Documents </font><font style="DISPLAY: inline; COLOR: #000000">(each, a &#8220;</font><font style="DISPLAY: inline; COLOR: #000000; TEXT-DECORATION: underline">Termination
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000">7)</font></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000; TEXT-DECORATION: underline">New
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      and without notice, shall
</font><font style="DISPLAY: inline; COLOR: #000000">be immediately all due
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      payable in full </font><font style="DISPLAY: inline; COLOR: #000000">upon the
      earlier of:</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      Maturity Date; </font><font style="DISPLAY: inline; COLOR: #000000">or</font></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman, serif"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; COLOR: #000000">The
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      and unpaid
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      immediately due and payable upon </font><font style="DISPLAY: inline; COLOR: #000000">the earlier to occur
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      further notice to Borrower.</font></font></div>
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</font><font style="DISPLAY: inline; COLOR: #000000">Lender</font><font style="DISPLAY: inline; COLOR: #000000">to
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      execution of this Agreement; this Agreement represents an arms-length
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      Agreement</font><font style="DISPLAY: inline; COLOR: #000000">.</font></font></div>
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      Borrower is a party, and the execution and performance of this Agreement by
      Borrower does not require the consent of any third party, or if the consent
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      of </font><font style="DISPLAY: inline; COLOR: #000000">Modification.</font></font></div>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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      Borrower shall, without further
      consideration, and at Borrower&#8217;s sole expense, execute and deliver such
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      deem necessary (a) to perfect any of
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      Documents shall survive the execution of this Agreement and remain in full
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      security interest on the Collateral shall continue to secure the remaining
      amounts outstanding in respect of all indebtedness that may be due and owing
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      indirect, fixed or contingent, liquidated or unliquidated, disputed or
      undisputed, known or unknown, which Borrower has or may acquire in the future
      relating in any way to any event, circumstance, action or failure to act to
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      advisedly and without coercion or duress from </font><font style="DISPLAY: inline; COLOR: #000000">Lender</font><font style="DISPLAY: inline; COLOR: #000000">,
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
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        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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<font style="DISPLAY: inline; COLOR: #000000">TIME
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      executed in one or more counterparts and may be delivered by facsimile or
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; COLOR: #000000; FONT-STYLE: italic; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000">[Signatures
      on Following Page]</font></font></div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7</font></div>
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        </div>
      </div>
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            <tr>
              <td valign="top" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td colspan="2" valign="top" width="63%">&#160;</td>
              <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
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            <tr>
              <td valign="top" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="top" width="60%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="25%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="3%" style="BORDER-BOTTOM: #ffffff solid">
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</div>
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        <div align="left">
          <table border="0" cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="top" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
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              <tr>
                <td valign="top" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                <td valign="top" width="60%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
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              <tr>
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                </td>
                <td valign="top" width="3%" style="BORDER-BOTTOM: #ffffff solid">
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              </tr>
              <tr>
                <td valign="top" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
                <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Name:&#160;</font></td>
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              <tr>
                <td valign="top" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                <td valign="top" width="60%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
                <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              </tr>

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</div><font style="DISPLAY: inline; FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
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    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 12pt; COLOR: #000000; FONT-FAMILY: Times New Roman, serif"><font style="DISPLAY: inline; COLOR: #000000">STATE
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      me, _<font style="TEXT-DECORATION: underline">Porter Robinson</font>_______, Notary Public
      of the state and county aforesaid, personally appeared ____<font style="TEXT-DECORATION: underline">Jeff Hudson</font>____________________, with
      whom I am personally acquainted (or proved to me on the basis of satisfactory
      evidence), and who, upon oath, acknowledged himself to be __<font style="TEXT-DECORATION: underline">SVP</font>________________ (or other
      officer
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      Association, a national banking association, the within named bargainor, and
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      2008.</font></font></div>
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<font style="FONT-STYLE: italic">G.
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April
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9</font></div>
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    <div>&#160;</div>
    <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">CERTIFICATE OF SECRETARY
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    <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">VINEYARD NATIONAL BANCORP</font></div>
    <div>&#160;</div>
    <div style="TEXT-ALIGN: left"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;I,
      Donald Pelgrim,
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      that I am charged with the duty of keeping and having official custody
      of&#160;the minutes and records of the Company.</div>
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      BANCORP, and that all such resolutions and instruments remain in effect, without
      change, to the date hereof.</div>
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    <div style="TEXT-ALIGN: left">&#160;</div>
    <div style="TEXT-ALIGN: left">
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" width="60%">

            <tr>
              <td valign="top" width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td colspan="2" valign="top" width="38%">&#160;</td>
              <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="top" width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="3%" style="BORDER-BOTTOM: #ffffff solid">
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                  </font></div>
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            <tr>
              <td valign="top" width="50%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" nowrap valign="bottom" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Donald
                Pelgrim, Jr.<font id="TAB2" style="FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman; LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font></td>
              <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="top" width="50%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Secretary
                of Vineyard National Bancorp</font></td>
              <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            </tr>
            <tr>
              <td valign="top" width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            </tr>

        </table>
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    </div>
    <div style="TEXT-ALIGN: left">&#160;</div>
    <div style="TEXT-ALIGN: center">&#160;</div>
    <div style="TEXT-ALIGN: center">&#160;</div>
    <div style="TEXT-ALIGN: left"><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">&#160;</div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>&#160;</div>
    <div style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">LOAN MODIFICATION
      RESOLUTION</font></div>
    <div style="TEXT-ALIGN: center">&#160;</div>
    <div style="TEXT-ALIGN: left"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font style="FONT-WEIGHT: bold">RESOLVED</font>,
      that it is in the best interests of
      the Company to modify a certain loan transaction between, on the one hand,
      the
      Company, acting on its own behalf as borrower, and on the other hand, FIRST
      TENNESSEE BANK NATIONAL ASSOCIATION, a national banking association, as lender,
      for a $70,000,000.00 loan originally made on March 17, 2006 (the "<font style="TEXT-DECORATION: underline">Loan</font>"), for the purpose of (i)
      extending the maturity date of the Loan until June 30, 2008 ("<font style="TEXT-DECORATION: underline">Maturity Date Extension</font>"), and (ii)
      obtaining certain covenant Waivers, as more particularly defined and described
      in that certain Third Modification Agreement and Covenant Waiver of even date
      (collectively, the Maturity Date Extension and the Waivers are referred to
      as
      the "<font style="TEXT-DECORATION: underline">Modification</font>").</div>
    <div style="TEXT-ALIGN: left">&#160;</div>
    <div style="TEXT-ALIGN: left"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font style="FONT-WEIGHT: bold">FURTHER
      RESOLVED</font>, that the President or other
      officers of the Company, be, and each is hereby authorized, empowered, and
      directed, for and on behalf of this Company, to sign and execute the Third
      Modification Agreement and Covenant Waiver and any other such agreements,
      certificates, instruments and documents of any kind and nature, and to take
      any
      action that, in his or their discretion, may be necessary or appropriate to
      consummate the Modification.</div>
    <div style="TEXT-ALIGN: left">&#160;</div>
    <div style="TEXT-ALIGN: left">&#160;</div>
    <div style="TEXT-ALIGN: left">&#160;</div>
    <div style="TEXT-ALIGN: left">&#160;</div>
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