Exhibit 10.7

 

Named Executive Officer Salary and Bonus Arrangements for 2005

 

Base Salaries

 

The base salaries for 2005 for the executive officers (the “named executive
officers”) of First PacTrust Bancorp, Inc. (the “Company”) and Pacific Trust
Bank who will be named in the compensation table that will appear in the
Company’s upcoming 2005 annual meeting proxy statement are as follows:

 

Name and Title

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   Base Salary

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Hans R. Ganz

President and Chief Executive Officer

   $ 225,493

James P. Sheehy

Secretary and Treasurer

   $ 121,763

Melanie M. Stewart

Executive Vice President – Lending

   $ 130,499

Regan J. Gallagher

Senior Vice President – Controller

   $ 89,918

Rachel M. Carrillo

Senior Vice President – Branch Operations

   $ 85,821

 

Description of 2005 Bonus Incentive Plan

 

On March 15, 2005, the Company’s Board of Directors approved a cash incentive
bonus plan for 2005 (the “2005 Bonus Plan”) for all officers and employees of
the Company and the Bank. Bonuses will be paid under the 2005 Bonus Plan in
early 2006 if and to the extent the Company’s performance in 2005 meets or
exceeds certain minimum levels on certain key performance indicators.

 

The key performance indicators used to determine whether any bonuses will be
paid under the 2005 Bonus Plan will be the same for all employees. The amounts
of the bonuses under the 2005 Bonus Plan, if earned, will be determined, in
part, by multiplying the employee’s salary by an the employee’s payout
percentage up to a maximum of 45% of salary, plus a discretionary component
which may or may not be paid in whole or in part based on the Compensation
Committee’s qualitative assessment of individual contributions toward the
Company’s success relative to Customer Service, Deposit Growth, Compliance, Loan
Originations and Portfolio Growth, Loan Charge-Off and Delinquency Ratios. While
the payout percentages will vary from employee to employee, they will increase
proportionately for all employees if and to the extent the Company attains a net
income level above the minimum threshold. All named executive officers are
eligible under the plan.

 

Discretionary Bonus 2005: The total discretionary amount available for
distribution to all employees will not to exceed 4% of after-tax net income.

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Director Fee Arrangements for 2005

 

Each director of First PacTrust Bancorp, Inc., (the “Company”) also is a
director of Pacific Trust Bank (the “Bank”). As of the March 11, 2005
shareholder record date for the 2005 annual meeting, as for 2004, each
non-employee director receives a fee of $600 for each Bank board meeting
attended. In addition, the Chairman of the Board receives an additional $300 per
Bank board meeting attended and each director receives $200 per Bank committee
meeting attended. Attendance by telephone is compensated at one-third the rate
for directors attending in person. Directors are not paid a fee for service on
the Company’s board. There are no deferred compensation arrangements with any
non-employee director.