Document:

Exhibit 4.3

 

AMENDED AND RESTATED PLEDGE AGREEMENT

 

This AMENDED AND RESTATED PLEDGE AGREEMENT, dated as of August 11, 2015 (as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the provisions hereof and of each First Lien Agreement (as defined below), this “Pledge Agreement”) is hereby entered into among First Data Corporation, a Delaware corporation (the “Company”), each of the Subsidiaries of the Company listed on the signature pages hereto or that becomes a party hereto pursuant to Section 9 (each such Subsidiary being a “Subsidiary Pledgor” and, collectively, the “Subsidiary Pledgors”; the Subsidiary Pledgors and the Company are referred to collectively as the “Pledgors”) and Wells Fargo Bank, National Association, in its capacity as collateral agent (in such capacity and together with any successors in such capacity, the “Collateral Agent”), pursuant to each First Lien Agreement (as amended, amended and restated, supplemented or otherwise modified from time to time) defining the rights of the holders of Obligations (as defined below).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to Section 9.01 of each of the Existing First Lien Agreements (as defined below), this Pledge Agreement amends and restates the Pledge Agreement, dated as of August 20, 2010 (the “Original Pledge Agreement”), among the Pledgors and the Collateral Agent;

 

WHEREAS, each Guarantor (as defined in the Existing First Lien Agreements) has, pursuant to the guarantee provisions under each applicable First Lien Agreement, unconditionally guaranteed the Obligations;

 

WHEREAS, each Pledgor has received substantial benefits from the proceeds of the Obligations existing on the date hereof and will receive substantial benefits from future Obligations and each is, therefore, willing to be a party to this Pledge Agreement;

 

WHEREAS, this Pledge Agreement is given by each Pledgor in favor of the Collateral Agent for the benefit of the Secured Parties (as defined in the Amended and Restated Security Agreement, dated as of August 11, 2015 (the “Security Agreement”), among the Company, the Subsidiary Grantors named therein and the Collateral Agent) to secure the payment and performance of all of the Obligations;

 

WHEREAS, in order to secure the obligations under the Senior Credit Facility, the Pledgors have also granted to the administrative agent for the benefit of the holders of the obligations under the Senior Credit Facility, a first priority security interest in the Collateral (as defined below) (subject to certain priorities upon realization of any value from the Collateral as set forth in the Intercreditor Agreement (as defined in the Security Agreement));

 

WHEREAS, from time to time after the date hereof, the Company may, subject to the terms and conditions of the First Lien Agreements and the Security Documents, incur Additional First Lien Obligations (as defined below), that the Company desires to secure by the

 

 

Collateral on a pari passu basis with the Obligations existing prior to the incurrence of such Additional First Lien Obligations;

 

WHEREAS, each Subsidiary Pledgor is a Subsidiary of the Company; and

 

WHEREAS, (a) the Pledgors are the legal and beneficial owners of the Equity Interests, described in Schedule 1 hereto and issued by the entities named therein (the pledged Equity Interests are, together with any Equity Interests of the issuer of such Equity Interests or any other Subsidiary directly held by any Pledgor in the future (the “After-acquired Shares”), in each case, except to the extent excluded from the Collateral for the applicable Obligations pursuant to the last paragraph of Section 2 below, referred to collectively herein as the “Pledged Shares”) and (b) each of the Pledgors is the legal and beneficial owner of the Indebtedness described in Schedule 1 hereto (together with any other Indebtedness owed to any Pledgor hereafter and required to be pledged pursuant to the First Lien Agreements, the “Pledged Debt”);

 

NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Pledgor and the Collateral Agent hereby agree to amend and restate the Original Pledge Agreement in its entirety as follows:

 

1.                                      Defined Terms.

 

(a)                                 Unless otherwise defined herein, terms defined in the Indenture (as defined in the Security Agreement) and used herein shall have the meanings given to them in the Indenture.

 

(b)                                 The following terms shall have the following meanings:

 

“Additional First Lien Agreement” shall have the meaning assigned to such term in the Security Agreement.

 

“Additional First Lien Obligations” shall have the meaning assigned to such term in the Security Agreement.

 

“Collateral” shall have the meaning provided in Section 2.

 

“Existing First Lien Agreements” shall have the meaning assigned to such term in the Security Agreement.

 

“First Lien Agreements” shall have the meaning assigned to such term in the Security Agreement.

 

“First Lien Documents” shall have the meaning assigned to such term in the Security Agreement.

 

“Obligations” shall have the meaning assigned to such term in the Security Agreement.

 

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“Original Pledge Agreement” shall have the meaning assigned to such term in the preamble hereof.

 

“Proceeds” and any other term used herein or in other First Lien Documents without definition that is defined in the UCC has the meaning given to it in the UCC.

 

“Secured Parties” shall have the meaning assigned to such term in the Security Agreement.

 

As used herein, the term “Equity Interests” shall mean, collectively, Stock and Stock Equivalents (each as defined in the Security Agreement).

 

As used herein, the term “UCC” shall mean the Uniform Commercial Code as from time to time in effect in the State of New York; provided, however, that, in the event that, by reason of mandatory provisions of law, any of the attachment, perfection or priority of the Collateral Agent’s and the Secured Parties’ security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of definitions related to such provisions

 

(c)                                  The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Pledge Agreement shall refer to this Pledge Agreement as a whole and not to any particular provision of this Pledge Agreement, and Section references are to Sections of this Pledge Agreement unless otherwise specified.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.

 

(d)                                 The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

 

2.                                      Grant of Security.  Each Pledgor hereby transfers, assigns and pledges to the Collateral Agent, for the benefit of the Secured Parties, and grants to the Collateral Agent, for the benefit of the Secured Parties and confirms its prior grant to the Collateral Agent for the benefit of the Secured Parties of, a lien on and a security interest in (the “Security Interest”) all of such Pledgor’s right, title and interest in, to and under the following, whether now owned or existing or at any time hereafter acquired or existing (collectively, the “Collateral”):

 

(a)                                 the Pledged Shares held by such Pledgor and the certificates representing such Pledged Shares and any interest of such Pledgor in the entries on the books of the issuer of the Pledged Shares or any financial intermediary pertaining to the Pledged Shares and all dividends, cash, warrants, rights, instruments and other property or Proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Shares.

 

(b)                                 the Pledged Debt and the instruments evidencing the Pledged Debt owed to such Pledgor, and all interest, cash, instruments and other property or Proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such Pledged Debt; and

 

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(c)                                  to the extent not covered by clauses (a) and (b) above, respectively, all Proceeds of any or all of the foregoing Collateral.

 

This Pledge Agreement amends and restates the Original Pledge Agreement. The obligations of the Grantors under the Original Pledge Agreement and the grant of security interest in the Collateral by the Pledgors under the Original Pledge Agreement shall continue under this Pledge Agreement, and shall not in any event be terminated, extinguished or annulled, but shall hereafter be governed by this Pledge Agreement. All references to the Pledge Agreement in any First Lien Document shall be deemed to refer to this Pledge Agreement and the provisions hereof.  To the extent applicable, the Pledgors hereby acknowledge, confirm and agree that any pledge of Collateral and any delivery of any instruments related to such pledge previously made in favor of the Collateral Agent under the Original Pledge Agreement are in full force and effect as of the date hereof and effectuate the perfection of the security interests granted under this Pledge Agreement.  For the avoidance of doubt, all Security Interests in the Collateral granted with respect to the Original Pledge Agreement will be deemed granted with respect to this Pledge Agreement at the same time and in the same manner as they were granted under the Original Pledge Agreement, and nothing in this Pledge Agreement shall be construed to impair any previous grant of such Security Interests in the Collateral.

 

Notwithstanding the foregoing, the Collateral for the Obligations shall not include any Excluded Stock and Stock Equivalents (as defined in the Security Agreement), nor shall it include any of the following:

 

(i)                                     any Stock (as defined in the Security Agreement) and other securities of a Subsidiary to the extent that the pledge of such Stock and other securities would result in the Company being required to file separate financial statements of such Subsidiary with the Securities and Exchange Commission (the “SEC”), but only to the extent necessary to not be subject to such requirement and only for so long as such requirement is in existence and only with respect to the relevant Obligations affected; provided that neither the Company nor any Subsidiary shall take any action in the form of a reorganization, merger or other restructuring a principal purpose of which is to provide for the release of the Lien on any Stock pursuant to this clause (i).  In addition, in the event that Rule 3-16 of Regulation S-X under the Securities Act of 1933, as amended (“Rule 3-16”), is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other Governmental Authority (as defined in the Security Agreement)) of separate financial statements of any Subsidiary of the Company due to the fact that such Subsidiary’s Stock secures the Obligations affected thereby, then the Stock of such Subsidiary will automatically be deemed not to be part of the Collateral securing the relevant Obligations affected thereby but only to the extent necessary to not be subject to such requirement and only for so long as required to not be subject to such requirement.  In such event, this Pledge Agreement may be amended or modified, without the consent of any Secured Party, to the extent necessary to release the Security Interests in favor of the Collateral Agent on the shares of Stock that are so deemed to no longer constitute part of the Collateral for the relevant Obligations only.  In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would

 

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permit) such Subsidiary’s Stock to secure the Obligations in excess of the amount then pledged without the filing with the SEC (or any other Governmental Authority) of separate financial statements of such Subsidiary, then the Stock of such Subsidiary will automatically be deemed to be a part of the Collateral for the relevant Obligations.  For the avoidance of doubt and notwithstanding anything to the contrary in this Security Agreement, nothing in this clause (i) shall limit the pledge of such Stock and other securities from securing the Credit Agreement Obligations (as defined in the Security Agreement) at all times or from securing any Obligations that are not in respect of securities subject to regulation by the SEC.

 

3.                                      Security for Obligations.  This Pledge Agreement secures the payment of all the Obligations of each Pledgor.  Without limiting the generality of the foregoing, this Pledge Agreement secures the payment of all amounts that constitute part of the Obligations and would be owed by any of the Pledgors to the Secured Parties under the First Lien Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving any Pledgor.

 

4.                                      Delivery of the Collateral.  Subject to the terms of the Intercreditor Agreement, all certificates or instruments, if any, representing or evidencing the Collateral shall be promptly delivered to and held by or on behalf of the Collateral Agent pursuant hereto to the extent required by the First Lien Agreements and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to the Collateral Agent.  Subject to the terms of the Intercreditor Agreement, the Collateral Agent shall have the right, at any time after the occurrence and during the continuance of an Event of Default and with notice to the relevant Pledgor, to transfer to or to register in the name of the Collateral Agent or any of its nominees any or all of the Pledged Shares.  Each delivery of Collateral (including any After-acquired Shares) shall be accompanied by a notice to the Collateral Agent describing the securities theretofore and then being pledged hereunder.

 

5.                                      Representations and Warranties.  Each Pledgor represents and warrants as follows:

 

(a)                                 Schedule 1 hereto (i) correctly represents as the date hereof (A) the issuer, the certificate number, the Pledgor and the record and beneficial owner, the number and class and the percentage of the issued and outstanding Equity Interests of such class of all Pledged Shares and (B) the issuer, the initial principal amount, the Pledgor and holder, date of issuance and maturity date of all Pledged Debt and (ii) together with the comparable schedule to each supplement hereto, includes all Equity Interests, debt securities and promissory notes required to be pledged hereunder.  Except as set forth on Schedule 1, and except for Excluded Stock and Stock Equivalents, the Pledged Shares represent all (or 65% in the case of pledges of the Voting Stock of Foreign Subsidiaries) of the issued and outstanding Equity Interests of each class of Equity Interests in the issuer on the date hereof.

 

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(b)                                 Such Pledgor is the legal and beneficial owner of the Collateral pledged or assigned by such Pledgor hereunder free and clear of any Lien, except for Permitted Liens and the Lien created by this Pledge Agreement.

 

(c)                                  As of the date hereof, the Pledged Shares pledged by such Pledgor hereunder have been duly authorized and validly issued and, in the case of Pledged Shares issued by a corporation, are fully paid and non-assessable.

 

(d)                                 The execution and delivery by such Pledgor of this Pledge Agreement and the pledge of the Collateral pledged by such Pledgor hereunder pursuant hereto create a legal, valid and enforceable security interest in such Collateral to the extent the creation of such security interest in the Stock of Foreign Subsidiaries is governed by the UCC and, upon delivery of such Collateral to the Collateral Agent in the State of New York, shall constitute a fully perfected Lien on and security interest in the Collateral, securing the payment of the Obligations, in favor of the Collateral Agent for the benefit of the Secured Parties to the extent the creation and perfection of such security interest in the stock of Foreign Subsidiaries is governed by the UCC, except as enforceability thereof may be limited by bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and subject to general principles of equity. For the avoidance of doubt, nothing in this Pledge Agreement shall be construed to impair in any manner any previous perfections obtained with respect to the security interests in the Collateral pursuant to the Original Pledge Agreement.

 

(e)                                  Such Pledgor has full power, authority and legal right to pledge all the Collateral pledged by such Pledgor pursuant to this Pledge Agreement, and this Pledge Agreement constitutes a legal, valid and binding obligation of each Pledgor to the extent the creation and perfection of such security interest in the Stock of the Foreign Subsidiaries is governed by the UCC, enforceable in accordance with its terms, except as enforceability thereof may be limited by bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and subject to general principles of equity.

 

6.                                      Certification of Limited Liability Company, Limited Partnership Interests, Equity Interests in Foreign Subsidiaries and Pledged Debt.

 

(a)                                 In the event that any Equity Interests in any Subsidiary that is organized as a limited liability company or limited partnership and pledged hereunder shall be represented by a certificate, the applicable Pledgor shall cause the issuer of such interests to elect to treat such interests as a “security” within the meaning of Article 8 of the UCC of its jurisdiction of organization or formation, as applicable, by including in its organizational documents language substantially similar to the following and, accordingly, such interests shall be governed by Article 8 of the UCC of its jurisdiction of organization:

 

“The Partnership/Company hereby irrevocably elects that all membership interests in the Partnership/Company shall be securities governed by Article 8 of the Uniform Commercial Code of [jurisdiction of organization or formation, as applicable].  Each certificate evidencing partnership/membership interests in the Partnership/Company shall bear the following legend:  “This certificate evidences

 

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an interest in [name of Partnership/LLC] and shall be a security for purposes of Article 8 of the Uniform Commercial Code.”  No change to this provision shall be effective until all outstanding certificates have been surrendered for cancellation and any new certificates thereafter issued shall not bear the foregoing legend.”

 

(b)                                 The Company agrees that all Indebtedness in excess of $10,000,000 of any Pledgor or any Subsidiary thereof that is owing to the Company or any Subsidiary Pledgor shall be evidenced by one or more promissory notes.

 

(c)                                  In the event that any Equity Interests in any Foreign Subsidiary pledged hereunder are not represented by a certificate, the Pledgors agree not to permit such Foreign Subsidiary to issue Equity Interests represented by a certificate to any other Person.

 

7.                                      Further Assurances.  Each Pledgor agrees that at any time and from time to time, at the expense of such Pledgor, it will execute or otherwise authorize the filing of any and all further documents, financing statements, agreements and instruments, and take all such further actions (including the filing and recording of financing statements, fixture filings, mortgages, deeds of trust and other documents), which may be required under any applicable law, or which, the Collateral Agent may reasonably request, in order (x) to perfect and protect any pledge, assignment or security interest granted or purported to be granted hereby (including the priority thereof) or (y) to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral. Each Pledgor agrees that, in the event any Pledgor takes any action to grant or perfect a Lien in favor of the Credit Agreement Collateral Agent in any assets, such Pledgor shall also take such action to grant or perfect a Lien in favor of the Collateral Agent to secure the Obligations, whether or not such action was requested by the Collateral Agent.

 

8.                                      Voting Rights; Dividends and Distributions; Etc.

 

(a)                                 So long as no Event of Default shall have occurred and be continuing:

 

(i)                                     Each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Collateral or any part thereof for any purpose not prohibited by the terms of this Pledge Agreement, the other First Lien Documents or any Additional First Lien Agreement.

 

(ii)                                  The Collateral Agent shall execute and deliver (or cause to be executed and delivered) to each Pledgor all such proxies and other instruments as such Pledgor may reasonably request for the purpose of enabling such Pledgor to exercise the voting and other rights that it is entitled to exercise pursuant to paragraph (i) above.

 

(b)                                 Subject to paragraph (c) below, each Pledgor shall be entitled to receive and retain and use, free and clear of the Lien created by this Pledge Agreement, any and all dividends, distributions, principal and interest made or paid in respect of the Collateral to the extent permitted by each First Lien Agreement, as applicable; provided, however, that any and all noncash dividends, interest, principal or other distributions that would constitute Pledged Shares or Pledged Debt, whether resulting from a subdivision, combination or reclassification of the outstanding Equity Interests of the issuer of any Pledged Shares or received in exchange for

 

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Pledged Shares or Pledged Debt or any part thereof, or in redemption thereof, or as a result of any merger, consolidation, acquisition or other exchange of assets to which such issuer may be a party or otherwise, shall be, and shall be forthwith delivered to the Collateral Agent to hold as, Collateral and shall, if received by such Pledgor, be received in trust for the benefit of the Collateral Agent, be segregated from the other property or funds of such Pledgor and be forthwith delivered to the Collateral Agent as Collateral in the same form as so received (with any necessary endorsement).

 

(c)                                  Subject to the terms of the Intercreditor Agreement, upon written notice to a Pledgor by the Collateral Agent following the occurrence and during the continuance of an Event of Default,

 

(i)                                     all rights of such Pledgor to exercise or refrain from exercising the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to Section 8(a)(i) shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to exercise or refrain from exercising such voting and other consensual rights during the continuance of such Event of Default, provided that, the Collateral Agent shall have the right from time to time following the occurrence and during the continuance of an Event of Default to permit the Pledgors to exercise such rights.  After all Events of Default have been cured or waived, each Pledgor will have the right to exercise the voting and consensual rights that such Pledgor would otherwise be entitled to exercise pursuant to the terms of Section 8(a)(i) (and the obligations of the Collateral Agent under Section 8(a)(ii) shall be reinstated);

 

(ii)                                  all rights of such Pledgor to receive the dividends, distributions and principal and interest payments that such Pledgor would otherwise be authorized to receive and retain pursuant to Section 8(b) shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to receive and hold as Collateral such dividends, distributions and principal and interest payments during the continuance of such Event of Default.  After all Events of Default have been cured or waived, the Collateral Agent shall repay to each Pledgor (without interest) all dividends, distributions and principal and interest payments that such Pledgor would otherwise be permitted to receive, retain and use pursuant to the terms of Section 8(b);

 

(iii)                               all dividends, distributions and principal and interest payments that are received by such Pledgor contrary to the provisions of Section 8(b) shall be received in trust for the benefit of the Collateral Agent shall be segregated from other property or funds of such Pledgor and shall forthwith be delivered to the Collateral Agent as Collateral in the same form as so received (with any necessary endorsements); and

 

(iv)                              in order to permit the Collateral Agent to receive all dividends, distributions and principal and interest payments to which it may be entitled under Section 8(b) above, to exercise the voting and other consensual rights that it may be entitled to exercise pursuant to Section 8(c)(i) above, and to receive all dividends, distributions and principal and interest payments that it may be entitled to under Sections 8(c)(ii) and (c)(iii) above, such Pledgor shall from time to time execute and deliver to the

 

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Collateral Agent, appropriate proxies, dividend payment orders and other instruments as the Collateral Agent may reasonably request in writing.

 

9.                                      Transfers and Other Liens; Additional Collateral; Etc.  Each Pledgor shall:

 

(a)                                 not (i) except as permitted by each First Lien Agreement and the Intercreditor Agreement, sell or otherwise dispose of, or grant any option or warrant with respect to, any of the Collateral or (ii) create or suffer to exist any consensual Lien upon or with respect to any of the Collateral, except for the Lien created by this Pledge Agreement, provided that in the event such Pledgor sells or otherwise disposes of assets as permitted by each First Lien Agreement and the Intercreditor Agreement, and such assets are or include any of the Collateral, upon the request of the applicable Pledgor the Collateral Agent shall release such Collateral to such Pledgor free and clear of the Lien created by this Pledge Agreement concurrently with the consummation of such sale;

 

(b)                                 pledge and, if applicable, cause each Subsidiary to pledge, to the Collateral Agent for the benefit of the Secured Parties, immediately upon acquisition thereof, all the Equity Interests and all evidence of Indebtedness held or received by such Pledgor or Subsidiary required to be pledged hereunder pursuant to each First Lien Agreement, in each case pursuant to a supplement to this Pledge Agreement substantially in the form of Annex A hereto (it being understood that the execution and delivery of such a supplement shall not require the consent of any Pledgor hereunder and that the rights and obligations of each Pledgor hereunder shall remain in full force and effect notwithstanding the addition of any new Subsidiary Pledgor as a party to this Pledge Agreement); and

 

(c)                                  defend its and the Collateral Agent’s title or interest in and to all the Collateral (and in the Proceeds thereof) against any and all Liens (other than Permitted Liens and the Lien created by this Pledge Agreement), however arising, and any and all Persons whomsoever.

 

10.                               Collateral Agent Appointed Attorney-in-Fact.  Each Pledgor hereby appoints, which appointment is irrevocable and coupled with an interest, the Collateral Agent as such Pledgor’s attorney-in-fact, with full authority in the place and stead of such Pledgor and in the name of such Pledgor or otherwise, to take any action and to execute any instrument, in each case after the occurrence and during the continuance of an Event of Default and with notice to such Pledgor, that the Collateral Agent may deem reasonably necessary or advisable to accomplish the purposes of this Pledge Agreement, including to receive, indorse and collect all instruments made payable to such Pledgor representing any dividend, distribution or principal or interest payment in respect of the Collateral or any part thereof and to give full discharge for the same.

 

11.                               The Collateral Agent’s Duties.  The powers conferred on the Collateral Agent hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers.  Except for the safe custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral, as to ascertaining or taking action with respect to calls,

 

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conversions, exchanges, maturities, tenders or other matters relative to any Pledged Shares, whether or not the Collateral Agent or any other Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve rights against any parties or any other rights pertaining to any Collateral.  The Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its own property.

 

12.                               Remedies.  Subject to the terms of the Intercreditor Agreement, if any Event of Default shall have occurred and be continuing:

 

(a)                                 The Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected Collateral) and also may with notice to the relevant Pledgor, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any exchange broker’s board or at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, at such price or prices and upon such other terms as are commercially reasonable irrespective of the impact of any such sales on the market price of the Collateral.  The Collateral Agent shall be authorized at any such sale (if it deems it advisable to do so) to restrict the prospective bidders or purchasers of Collateral to Persons who will represent and agree that they are purchasing the Collateral for their own account for investment and not with a view to the distribution or sale thereof, and, upon consummation of any such sale, the Collateral Agent shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral so sold.  Each purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of any Pledgor, and each Pledgor hereby waives (to the extent permitted by law) all rights of redemption, stay and/or appraisal that it now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.  The Collateral Agent or any Secured Party shall have the right upon any such public sale, and, to the extent permitted by law, upon any such private sale, to purchase all or any part of the Collateral so sold, and the Collateral Agent or such Secured Party may pay the purchase price by crediting the amount thereof against the Obligations.  Each Pledgor agrees that, to the extent notice of sale shall be required by law, at least ten days’ notice to such Pledgor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.  The Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.  To the extent permitted by law, each Pledgor hereby waives any claim against the Collateral Agent arising by reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price that might have been obtained at a public sale, even if the Collateral Agent accepts the first offer received and does not offer such Collateral to more than one offeree.

 

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(b)                                 The Collateral Agent shall apply the Proceeds of any collection or sale of the Collateral in the manner specified in the Intercreditor Agreement.  Upon any sale of the Collateral by the Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the Collateral Agent or of the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Collateral Agent or such officer or be answerable in any way for the misapplication thereof.

 

(c)                                  Subject to the Intercreditor Agreement, the Collateral Agent may exercise any and all rights and remedies of each Pledgor in respect of the Collateral.

 

(d)                                 All payments received by any Pledgor in respect of the Collateral after the occurrence and during the continuance of an Event of Default shall be received in trust for the benefit of the Collateral Agent shall be segregated from other property or funds of such Pledgor and shall be forthwith delivered to the Collateral Agent as Collateral in the same form as so received (with any necessary endorsement).

 

13.                               Amendments, etc. with Respect to the Obligations; Waiver of Rights.  Each Pledgor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Pledgor and without notice to or further assent by any Pledgor, (a) any demand for payment of any of the Obligations made by the Collateral Agent or any other Secured Party may be rescinded by such party and any of the Obligations continued, (b) the Obligations, or the liability of any other party upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Collateral Agent or any other Secured Party, (c) any First Lien Agreement or any other First Lien Document and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Collateral Agent or the other Secured Parties, as applicable, may deem advisable from time to time, and (d) any collateral security, guarantee or right of offset at any time held by the Collateral Agent or any other Secured Party for the payment of the Obligations may be sold, exchanged, waived, surrendered or released.  Neither the Collateral Agent nor any other Secured Party shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for this Pledge Agreement or any property subject thereto.  When making any demand hereunder against any Pledgor, the Collateral Agent or any other Secured Party may, but shall be under no obligation to, make a similar demand on the Company or any other Pledgor or any other person, and any failure by the Collateral Agent or any other Secured Party to make any such demand or to collect any payments from the Company or any other Pledgor or any other person or any release of the Company or any other Pledgor or any other person shall not relieve any Pledgor in respect of which a demand or collection is not made or any Pledgor not so released of its several obligations or liabilities hereunder, and shall not impair or affect the rights and remedies, express or implied, or as a matter of law, of the Collateral Agent or any other Secured Party against any Pledgor.  For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.

 

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14.                               Continuing Security Interest; Assignments Under the First Lien Agreements; Release.

 

(a)                                 This Pledge Agreement shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon each Pledgor and the successors and assigns thereof, and shall inure to the benefit of the Collateral Agent and the other Secured Parties and their respective successors, endorsees, transferees and assigns until all the Obligations (other than any contingent indemnity obligations not then due) under the First Lien Documents and each Additional First Lien Agreement shall have been satisfied by payment in full.

 

(b)                                 A Subsidiary Pledgor shall automatically be released from its obligations hereunder as relates to any First Lien Agreement and the Collateral of such Subsidiary Pledgor shall be automatically released with respect to such First Lien Agreement upon such Subsidiary Pledgor ceasing to be a Guarantor under such First Lien Agreement in accordance with the applicable provision(s) of such First Lien Agreement.

 

(c)                                  The Collateral shall be automatically released from the Liens of this Pledge Agreement with respect to the Liens securing the Obligations of any series, in whole or in part, as provided in the applicable First Lien Agreement governing such obligations.  Any such release in connection with any sale, transfer or other disposition of such Collateral shall result in such Collateral being sold, transferred or disposed of, as applicable, free and clear of the applicable Liens of this Pledge Agreement.

 

(d)                                 In connection with any termination or release pursuant to the foregoing paragraph (a), (b) or (c), the Collateral Agent shall execute and deliver to any Pledgor or authorize the filing of, at such Pledgor’s expense, all documents that such Pledgor shall reasonably request to evidence such termination or release.  Any execution and delivery of documents pursuant to this Section 14 shall be without recourse to or warranty by the Collateral Agent.

 

15.                               Reinstatement.  Each Pledgor further agrees that, if any payment made by any Pledgor or other Person and applied to the Obligations is at any time annulled, avoided, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or repaid, or the Proceeds of Collateral are required to be returned by any Secured Party to such Pledgor, its estate, trustee, receiver or any other party, including any other Pledgor, under any bankruptcy law, state, federal or foreign law, common law or equitable cause, then, to the extent of such payment or repayment, any Lien or other Collateral securing such liability shall be and remain in full force and effect, as fully as if such payment had never been made or, if prior thereto the Lien granted hereby or other Collateral securing such liability hereunder shall have been released or terminated by virtue of such cancellation or surrender), such Lien or other Collateral shall be reinstated in full force and effect, and such prior cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect any Lien or other Collateral securing the obligations of any Pledgor in respect of the amount of such payment.

 

16.                               Notices.  All notices, requests and demands pursuant hereto shall be made in accordance with Section 13.02 of the Indenture.  All communications and notices hereunder to

 

12

 

any Subsidiary Pledgor shall be given to it in care of the Company at the Company’s address set forth in Section 13.02 of the Indenture and all notices to any Authorized Representative (as defined in the Security Agreement) of any Additional First Lien Obligations, at its address set forth in the Additional First Lien Secured Party Consent, as such address may be changed by written notice to the Collateral Agent and the Company.

 

17.                               Counterparts.  This Pledge Agreement may be executed by one or more of the parties to this Pledge Agreement on any number of separate counterparts (including by facsimile or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

18.                               Severability.  Any provision of this Pledge Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

19.                               Integration.  This Pledge Agreement together with the other First Lien Documents represents the agreement of each of the Pledgors with respect to the subject matter hereof and there are no promises, undertakings, representations or warranties by the Collateral Agent or any other Secured Party relative to the subject matter hereof not expressly set forth or referred to herein or in the other First Lien Documents.

 

20.                               Amendments in Writing; No Waiver; Cumulative Remedies.

 

(a)                                 None of the terms or provisions of this Pledge Agreement or any of the First Lien Documents may be waived, amended, supplemented or otherwise modified except by a written instrument executed by the affected Pledgor and the Collateral Agent in accordance with the terms of each applicable First Lien Agreement and the Intercreditor Agreement.

 

(b)                                 Neither the Collateral Agent nor any Secured Party shall by any act (except by a written instrument pursuant to Section 20(a) hereof), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default or in any breach of any of the terms and conditions hereof.  No failure to exercise, nor any delay in exercising, on the part of the Collateral Agent or any other Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  A waiver by the Collateral Agent or any other Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy that the Collateral Agent or such other Secured Party would otherwise have on any future occasion.

 

13

 

(c)                                  The rights, remedies, powers and privileges herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.

 

21.                               Section Headings.  The Section headings used in this Pledge Agreement are for convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof.

 

22.                               Successors and Assigns.  This Pledge Agreement shall be binding upon the successors and assigns of each Pledgor and shall inure to the benefit of the Collateral Agent and the other Secured Parties and their respective successors and assigns, except that no Pledgor may assign, transfer or delegate any of its rights or obligations under this Pledge Agreement without the prior written consent of the Collateral Agent.

 

23.                               WAIVER OF JURY TRIAL.  EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS PLEDGE AGREEMENT, ANY OTHER FIRST LIEN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

24.                               Submission to Jurisdiction; Waivers.  Each party hereto irrevocably and unconditionally:

 

(a)                                 submits for itself and its property in any legal action or proceeding relating to this Pledge Agreement and the other First Lien Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New York and appellate courts from any thereof;

 

(b)                                 consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

 

(c)                                  agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Person at its address referred to in Section 16 or at such other address of which the Collateral Agent shall have been notified pursuant thereto;

 

(d)                                 agrees that nothing herein shall affect the right of any other party hereto (or any Secured Party) to effect service of process in any other manner permitted by law or shall limit the right of any party hereto (or any Secured Party) to sue in any other jurisdiction; and

 

(e)                                  waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section 24 any special, exemplary, punitive or consequential damages.

 

14

 

25.                               GOVERNING LAW.  THIS PLEDGE AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

26.                               Subject to Intercreditor Agreement.  Notwithstanding anything herein to the contrary, the Liens and security interests granted to the Collateral Agent pursuant to this Pledge Agreement and the exercise of any right or remedy by the Collateral Agent hereunder are subject to the terms of the Intercreditor Agreement.  In the event of any conflict between the terms of the Intercreditor Agreement and the terms of this Pledge Agreement, the terms of the Intercreditor Agreement shall govern and control.  Notwithstanding anything herein to the contrary, prior to the Discharge of the Credit Agreement Obligations, all requirements of any Pledgor pursuant to this Pledge Agreement to endorse, assign, transfer or otherwise deliver or grant control over any Collateral to the Collateral Agent shall be deemed satisfied by endorsement, assignment, delivery or control of such Collateral to the Credit Agreement Collateral Agent pursuant to the Credit Agreement Documents.  Any endorsement, assignment, transfer or delivery to or Control by the Credit Agreement Collateral Agent shall be deemed an endorsement, assignment, transfer or delivery to or Control by the Collateral Agent for all purposes hereunder.

 

THIS PLEDGE AGREEMENT IS SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT DATED AS OF AUGUST 20, 2010 (AS AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME), AMONG THE COMPANY, THE COLLATERAL AGENT AND THE CREDIT AGREEMENT COLLATERAL AGENT, AND ACKNOWLEDGED BY THE PLEDGORS.

 

27.                               Additional First Lien Obligations.  On or after the date hereof and so long as expressly permitted by the Senior Credit Facility and any First Lien Agreement then outstanding, the Company may from time to time designate Indebtedness at the time of incurrence to be secured on a pari passu basis with the Obligations as Additional First Lien Obligations hereunder by delivering to the Collateral Agent, the Credit Agreement Collateral Agent and each other Authorized Representative (a) a certificate signed by an Officer of the Company (i) identifying the obligations so designated and the initial aggregate principal amount or face amount thereof, (ii) stating that such obligations are designated as Additional First Lien Obligations for purposes hereof, (iii) representing that such designation of such obligations as Additional First Lien Obligations complies with the terms of the Senior Credit Facility and any First Lien Agreement then outstanding and (iv) specifying the name and address of the Authorized Representative for such obligations, (b) a fully executed Additional First Lien Secured Party Consent (as defined in the Security Agreement) and (c) a fully executed joinder to the Intercreditor Agreement.  Each Authorized Representative agrees that upon the satisfaction of all conditions set forth in the preceding sentence, the Collateral Agent shall act as agent under and subject to the terms of the Security Documents for the benefit of all Secured Parties, including, without limitation, any Secured Parties that hold any such Additional First Lien Obligations, and each Authorized Representative agrees to the appointment, and acceptance of the appointment, of the Collateral Agent as agent for the holders of such Additional First Lien Obligations as set forth in each Additional First Lien Secured Party Consent and agrees, on

 

15

 

behalf of itself and each Secured Party it represents, to be bound by this Pledge Agreement and the Intercreditor Agreement.

 

28.                               Force Majeure.  In no event shall the Collateral Agent be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Collateral Agent shall use reasonable efforts that are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances

 

[Signature Pages Follow]

 

16

 

IN WITNESS WHEREOF, each of the undersigned has caused this Pledge Agreement to be duly executed and delivered by its duly authorized officer as of the day and year first above written.

 

	
 
    	
 
    	
       FIRST   DATA CORPORATION, as Pledgor
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael K. Neborak
    
	
 
    	
 
    	
Name:   Michael K. Neborak
    
	
 
    	
 
    	
Title:   Executive Vice President, Director of Finance
    

 

[Signature Page to Pledge Agreement]

 

 

	
 
    	
The   following entities, each as Pledgor:
    
	
 
    	
 
    
	
 
    	
BANKCARD   INVESTIGATIVE GROUP INC.

BUYPASS   INCO CORPORATION

CALL   INTERACTIVE HOLDINGS LLC

CESI   HOLDINGS, INC.

CLOVER   MARKETPLACE, LLC

CLOVER   NETWORK, INC.

CONCORD   COMPUTING CORPORATION

CONCORD   CORPORATE SERVICES, INC.

CONCORD   EFS FINANCIAL SERVICES, INC.

CONCORD   EFS, INC.

CONCORD   EMERGING TECHNOLOGIES, INC.

CONCORD   FINANCIAL TECHNOLOGIES, INC.

CONCORD   ONE, LLC

CONCORD   PAYMENT SERVICES, INC.

CONCORD   PROCESSING, INC.

CONCORD   TRANSACTION SERVICES, LLC

CTS   HOLDINGS, LLC

CTS, INC.

EPSF   CORPORATION

FDFS   HOLDINGS, LLC

FDGS   GROUP LLC

FDR   IRELAND LIMITED

FDR   MISSOURI INC.

FDS   HOLDINGS INC.

FIRST   DATA CAPITAL, INC.

FIRST   DATA CARD SOLUTIONS, INC.

FIRST   DATA COMMERCIAL SERVICES HOLDINGS, INC.

FIRST   DATA COMMUNICATIONS CORPORATION

FIRST   DATA EC, LLC

FIRST   DATA GOVERNMENT SOLUTIONS, INC.

FIRST   DATA GOVERNMENT SOLUTIONS, LP

FIRST   DATA LATIN AMERICA INC.

FIRST   DATA MERCHANT SERVICES CORPORATION

FIRST   DATA MERCHANT SERVICES NORTHEAST, LLC

FIRST   DATA MERCHANT SERVICES SOUTHEAST, L.L.C.

FIRST   DATA MOBILE HOLDINGS, INC.

FIRST   DATA PAYMENT SERVICES, LLC

FIRST   DATA REAL ESTATE HOLDINGS L.L.C.

FIRST   DATA REPORTING SERVICES LLC

FIRST   DATA RESOURCES, LLC

FIRST   DATA RETAIL ATM SERVICES L.P.

FIRST   DATA SOLUTIONS INC.

FIRST   DATA TECHNOLOGIES, INC.
    

 

[Signature Page to Pledge Agreement]

 

 

	
 
    	
FIRST   DATA TRANSPORTATION SERVICES INC.

FIRST   DATA VOICE SERVICES

FSM   SERVICES INC.

FUNDSXPRESS, INC.

FUNDSXPRESS   FINANCIAL NETWORK, INC.

GIFT   CARD SERVICES, INC.

GYFT, INC.

IGNITE   PAYMENTS, LLC

INSTANT   CASH SERVICES, LLC

LINKPOINT   INTERNATIONAL, INC.

MAS   INCO CORPORATION

MAS   OHIO CORPORATION

NATIONAL   PAYMENT SYSTEMS INC.

NEW   PAYMENT SERVICES, INC.

PAYPOINT   ELECTRONIC PAYMENT SYSTEMS, LLC

PAYSYS   INTERNATIONAL, INC.

PERKA, INC.

REMITCO   LLC

SAGEBRUSH   HOLDINGS LLC

SIZE   TECHNOLOGIES, INC.

STAR   NETWORKS, INC.

STAR   PROCESSING, INC.

STAR   SYSTEMS ASSETS, INC.

STAR   SYSTEMS, INC.

STAR   SYSTEMS, LLC

STRATEGIC   INVESTMENT ALTERNATIVES LLC

TASQ   LLC

TASQ   TECHNOLOGY, INC.

TELECHECK   INTERNATIONAL, INC.

TRANSACTION   SOLUTIONS, LLC

UNIFIED   MERCHANT SERVICES

VALUELINK,   LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael K. Neborak
    
	
 
    	
 
    	
Name:
    	
Michael   K. Neborak
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President, Director of Finance
    

 

[Signature Page to Pledge Agreement]

 

 

	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION,

as   Collateral Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stefan Victory
    
	
 
    	
 
    	
Name:   Stefan Victory
    
	
 
    	
 
    	
Title:   Vice President
    

 

[Signature Page to Pledge Agreement]

 

 

ANNEX A
 TO THE PLEDGE AGREEMENT

 

SUPPLEMENT NO. [    ], dated as of [            ] (this “Supplement”), to the AMENDED AND RESTATED PLEDGE AGREEMENT, dated as of August 11, 2015 (the “Pledge Agreement”), among First Data Corporation, a Delaware corporation (the “Company”), each of the Subsidiaries of the Company listed on the signature pages hereto (each such Subsidiary being a “Subsidiary Pledgor” and, collectively, the “Subsidiary Pledgors”;  the Subsidiary Pledgors and the Company are referred to collectively as the “Pledgors”) and Wells Fargo Bank, National Association, as Collateral Agent (in such capacity, the “Collateral Agent”) under the First Lien Agreements referred to below.

 

A.                                    Reference is made to the Credit Agreement dated as of September 24, 2007 (as the same may be amended, restated, supplemented or otherwise modified, refinanced or replaced from time to time, the “Credit Agreement”) among the Company, the lenders or other financial institutions or entities from time to time parties thereto (the “Lenders”), Credit Suisse, Cayman Islands Branch, as Administrative Agent and as Collateral Agent and the Guarantee dated as of September 24, 2007 (as the same may be amended, restated, supplemented and or otherwise modified from time to time, the “Guarantee”), among the Company, the Guarantors party thereto and the Collateral Agent.

 

B.                                    Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Pledge Agreement.

 

C.                                    The Pledgors have received substantial benefits from the proceeds of the Obligations existing on the date hereof and will receive substantial benefits from future Obligations and each, therefore, has entered into the Pledge Agreement.

 

D.                                    The undersigned Guarantors (each an “Additional Pledgor”) are (a) the legal and beneficial owners of the Equity Interests described in Schedule 1 hereto and issued by the entities named therein (such pledged Equity Interests, together with any Equity Interests of the issuer of such Pledged Shares or any other Subsidiary held directly by any Additional Pledgor in the future, in each case, except to the extent excluded from the Collateral for the applicable Obligations pursuant to the penultimate paragraph of Section 1 below (the “After-acquired Additional Pledged Shares”), referred to collectively herein as the “Additional Pledged Shares”) and (b) the legal and beneficial owners of the Indebtedness described under Schedule 1 hereto (together with any other Indebtedness owed to any Additional Pledgor hereafter and required to be pledged pursuant to the First Lien Agreements, the “Additional Pledged Debt”).

 

E.                                     The First Lien Agreements and Section 9(b) of the Pledge Agreement provide that additional Subsidiaries may become Subsidiary Pledgors under the Pledge Agreement by execution and delivery of an instrument in the form of this Supplement.  Each undersigned Additional Pledgor is executing this Supplement in accordance with the

 

A-1

 

requirements of Section 9(b) of the Pledge Agreement to pledge to the Collateral Agent for the benefit of the Secured Parties the Additional Pledged Shares and the Additional Pledged Debt and to become a Subsidiary Pledgor under the Pledge Agreement as consideration for credit previously extended to the Company.

 

Accordingly, the Collateral Agent and each undersigned Additional Pledgor agree as follows:

 

SECTION 1.                            In accordance with Section 9(b) of the Pledge Agreement, each Additional Pledgor by its signature hereby transfers, assigns and pledges to the Collateral Agent, for the benefit of the Secured Parties, and hereby grants to the Collateral Agent, for the benefit of the Secured Parties, a security interest in all of such Additional Pledgor’s right, title and interest in the following, whether now owned or existing or hereafter acquired or existing (collectively, the “Additional Collateral”):

 

(a)                                 the Additional Pledged Shares held by such Additional Pledgor and the certificates representing such Additional Pledged Shares and any interest of such Additional Pledgor in the entries on the books of the issuer of the Additional Pledged Shares or any financial intermediary pertaining to the Additional Pledged Shares and all dividends, cash, warrants, rights, instruments and other property or Proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Additional Pledged Shares;

 

(b)                                 the Additional Pledged Debt and the instruments evidencing the Additional Pledged Debt owed to such Additional Pledgor, and all interest, cash, instruments and other property or Proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such Additional Pledged Debt; and

 

Notwithstanding the foregoing, the Additional Collateral for the Obligations shall not include any Excluded Stock and Stock Equivalents.

 

For purposes of the Pledge Agreement, the Collateral shall be deemed to include the Additional Collateral.

 

SECTION 2.                            Each Additional Pledgor by its signature below becomes a Pledgor under the Pledge Agreement with the same force and effect as if originally named therein as a Pledgor, and each Additional Pledgor hereby agrees to all the terms and provisions of the Pledge Agreement applicable to it as a Pledgor thereunder.  Each reference to a “Subsidiary Pledgor” or a “Pledgor” in the Pledge Agreement shall be deemed to include each Additional Pledgor.  The Pledge Agreement is hereby incorporated herein by reference.

 

SECTION 3.                            Each Additional Pledgor represents and warrants as follows:

 

A-2

 

(a)                                 Schedule 1 hereto correctly represents as of the date hereof (A) the issuer, the certificate number, the Additional Pledgor and registered owner, the number and class and the percentage of the issued and outstanding Equity Interests of such class of all Additional Pledged Shares and (B) the issuer, the initial principal amount, the Additional Pledgor and holder, date of and maturity date of all Additional Pledged Debt. Except as set forth on Schedule 1 and except for Excluded Stock and Stock Equivalents, the Pledged Shares represent all (or 65% in the case of pledges of the Voting Stock of Foreign Subsidiaries) of the issued and outstanding Equity Interests of each class of Equity Interests of the issuer on the date hereof.

 

(b)                                 Such Additional Pledgor is the legal and beneficial owner of the Additional Collateral pledged or assigned by such Additional Pledgor hereunder free and clear of any Lien, except for (i) the Lien created by this Supplement to the Pledge Agreement or (ii) Liens permitted by the First Lien Agreements.

 

(c)                                  As of the date hereof, the Additional Pledged Shares pledged by such Additional Pledgor hereunder have been duly authorized and validly issued and, in the case of Additional Pledged Shares issued by a corporation, are fully paid and non-assessable.

 

(d)                                 The execution and delivery by such Additional Pledgor of this Supplement and the pledge of the Additional Collateral pledged by such Additional Pledgor hereunder pursuant hereto create a valid and perfected first-priority security interest in the Additional Collateral to the extent the creation of such security interest in the Stock of Foreign Subsidiaries is governed by the UCC, as applicable, and upon delivery of such Additional Collateral to the Collateral Agent in the State of New York, shall constitute a fully perfected lien and security interest in the Additional Collateral to the extent the creation and perfection of such security interest in the Stock of Foreign Subsidiaries is governed by the UCC, securing the payment of the Obligations, in favor of the Collateral Agent for the benefit of the Secured Parties.

 

(e)                                  Such Additional Pledgor has full power, authority and legal right to pledge all the Additional Collateral pledged by such Additional Pledgor pursuant to this Supplement, and this Supplement constitutes a legal, valid and binding obligation of each Additional Pledgor to the extent the creation and perfection of such security interest in the Stock of Foreign Subsidiaries is governed by the UCC, enforceable in accordance with its terms, except as enforceability thereof may be limited by bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and subject to general principles of equity.

 

SECTION 4.                            This Supplement may be executed by one or more of the parties to this Supplement on any number of separate counterparts (including by facsimile or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  A set of the copies of this Supplement signed by all

 

A-3

 

the parties shall be lodged with the Collateral Agent and the Company.  This Supplement shall become effective as to each Additional Pledgor when the Collateral Agent shall have received counterparts of this Supplement that, when taken together, bear the signatures of such Additional Pledgor and the Collateral Agent.

 

SECTION 5.                            Except as expressly supplemented hereby, the Pledge Agreement shall remain in full force and effect.

 

SECTION 6.                         THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 7.                            Any provision of this Supplement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and in the Pledge Agreement, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

SECTION 8.                            All notices, requests and demands pursuant hereto shall be made in accordance with Section 16 of the Pledge Agreement.  All communications and notices hereunder to each Additional Pledgor shall be given to it in care of the Company at the Company’s address set forth in Section 13.02 of the Indenture.

 

A-4

 

IN WITNESS WHEREOF, each Additional Pledgor and the Collateral Agent have duly executed this Supplement to the Pledge Agreement as of the day and year first above written.

 

	
 
    	
[NAME   OF ADDITIONAL PLEDGOR]
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
[                      ],   as Collateral Agent
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

SCHEDULE 1
 TO SUPPLEMENT NO. [   ]
 TO THE PLEDGE AGREEMENT

 

Pledged Shares

 

	
Record
   owner
    	
 
    	
Issuer
    	
 
    	
Certificate
   No.
    	
 
    	
Number of
   Shares
    	
 
    	
% of Shares
   Owned
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Pledged Debt

 

	
Payee
    	
 
    	
Issuer
    	
 
    	
Principal
   Amount
    	
 
    	
Date of
   Instrument
    	
 
    	
Maturity
   DateEX-10.1

 Exhibit 10.1 
 SEPARATION AND SETTLEMENT AGREEMENT 
 This Separation and Settlement
Agreement (this “Agreement”) is entered into as of August 12, 2015, by and between Ronald J. Nicolas, Jr. (the “Executive”), and Banc of California, Inc., a Maryland corporation (the
“Company”). The Executive and the Company are referred to as the “Parties,” and each as a “Party,” in this Agreement. 
 WHEREAS, the Executive has been employed by the Company as, among other things, Chief Financial Officer of the Company; 
 WHEREAS, the Executive is party to an employment agreement with the Company, effective as of November 5, 2012 (the “Employment Agreement”); and 

WHEREAS, the Executive has provided the Company with notice of his resignation pursuant to Section 9 of the Employment Agreement,
and the Executive and the Company wish to set forth their mutual agreement as to the terms and conditions of such resignation. 

NOW, THEREFORE, the Company and the Executive hereby agree as follows: 

1. Resignation. Effective as of 12:01 a.m. on November 15, 2015, or such earlier date as the Company may elect by providing
10 days’ written notice to the Executive (the “Resignation Date”), the Executive hereby resigns from his employment with the Company and from all other positions the Executive then holds with respect to the Company and its
subsidiaries or affiliates (the Company and all of its subsidiaries and affiliates and any predecessor entities are hereinafter referred to as the “Affiliated Entities”), including as an officer or member of the board of directors
of any Affiliated Entity (the “Resignation”). During the period the Executive is employed following the expiration of the term of the Employment Agreement on November 5, 2015 (the “Expiration Date”) and the
Resignation Date, the Executive shall receive a base salary and employee benefits as provided prior to the Expiration Date. Within 15 business days following the Resignation Date or such earlier time as required by applicable law, the Executive
will be paid all of his Accrued Obligations (as defined in the Employment Agreement) pursuant to Section 10(a) of the Employment Agreement earned or accrued through the Resignation Date. All capitalized terms used but not defined hereunder
shall have the meaning set forth in the Employment Agreement, which is attached as Exhibit A hereto. 
 2.
Acknowledgment. The Executive acknowledges and agrees that for purposes of all plans, agreements, policies, and arrangements of the Company and its affiliates in which the Executive participated or to which Executive was a party (including,
without limitation, the Employment Agreement), the Resignation shall be a voluntary separation. Moreover, in the case of any such plan, agreement, policy, or arrangement that includes the concept of resignation with “good reason” or a
similar term of like meaning (including, without limitation, the Employment Agreement), the Executive agrees that the Resignation shall be considered to have been made without “good reason” or such similar term. Nothing contained in this
Agreement shall limit the ability of the Company to terminate the Executive’s employment for Cause, or the ability of the Executive to resign his employment for Good Reason, in each case, prior to the Resignation Date; provided that the
Executive acknowledges and agrees that neither the execution and delivery of this Agreement nor the transition of responsibilities contemplated hereunder shall entitle the Executive (and the Executive hereby waives any right) to resign from the
Company and its affiliates for “good reason” or a similar term of like meaning for purposes of any plan, agreement, policy, or arrangement of the Company or the Affiliated Entities (including, without limitation, the Employment Agreement).
In the event of such a termination for Cause, the Executive shall only be entitled to payment of all of his Accrued Obligations pursuant to Section 10(a) of the Employment Agreement earned or accrued through the date of such termination, and in
the event of either a termination for Cause or a resignation for Good Reason, the Executive shall not be entitled to any of the payments or benefits set forth in Section 3 of this Agreement. 

 3. Separation Payments and Benefits. Subject to the Executive’s
compliance with the terms of this Agreement and the non-revocation of the Release (as defined in Section 4) and the Subsequent Release, following the Revocation Date (as defined in Section 16(f) of this Agreement), the Company shall pay or
provide the payments and benefits set forth below in full satisfaction of the obligations of the Company to the Executive. 
 (a) The Company shall make to the Executive, within 30 days following the Revocation Date, a lump sum cash payment equal to $750,000, subject to applicable tax withholding; provided,
however, that, during the period prior to the Resignation Date, the Executive shall have used his best efforts to have performed the work assignments reasonably requested by the Chief Executive Officer and shall not have resigned or taken
vacation or leave of absence (other than his previously scheduled vacation from September 14–18, 2015, and any such vacation or leave of absence that is approved in advance by the Company in writing); and provided, further,
that, on or before the Resignation Date, the Executive shall have delivered a comprehensive summary of such matters as the Chief Executive Officer shall reasonably request in order to ensure an effective transition of duties. 

(b) In consideration for the Executive’s agreement to consult with the Company during the period commencing on the Resignation Date
and ending on the date that is five months following the Resignation Date (the “Consulting Period”), and subject to the Executive’s continued compliance with the covenants set forth in Sections 5, 6, and 7 of this
Agreement, the Company shall pay the Executive, within 30 days following the Revocation Date, a lump sum cash payment equal to $250,000, in consideration of the Executive’s agreement to provide continuing services (the “Consulting
Fee”). Either the Company or the Executive may terminate the Consulting Period at any time and for any reason (or no reason) by providing the other Party with 30 days’ advance written notice of such termination. If the Consulting
Period is terminated by the Executive for any reason or by the Company with Cause prior to the date that is five months following the Resignation Date, the Executive shall repay to the Company a prorated portion of the Consulting Fee, determined as
the product of the Consulting Fee multiplied by a fraction, the numerator of which is the number of days between the date of the Executive’s termination of service and the date that is five months following the Resignation Date and the
denominator of which is the number of days in the Consulting Period had it not been terminated. 
 (c) During the Consulting
Period, the Company shall provide the Executive with a payment (the “COBRA Subsidy”) each month equal to the monthly cost of continued coverage for the Executive and, where applicable, the Executive’s spouse and dependents,
under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) paid by the Executive under the Company’s group health plan pursuant to Section 4980B of the Code, less the amount that the Executive would be
required to contribute for such health coverage if the Executive were an active employee of the Company; provided that the Executive is eligible for and timely elects COBRA continuation coverage. If the Consulting Period is terminated by the
Company without Cause, the Company shall continue to provide the Executive with the COBRA Subsidy through the date that is five months following the Resignation Date. 

  
 2 

 (d) The outstanding equity awards held by the Executive shall continue to vest in accordance
with their respective terms during the Consulting Period. If the Consulting Period is terminated by the Company without Cause, the Executive shall be fully vested in any outstanding equity award that would have vested by its terms between the date
on which the Consulting Period terminates and the date that is five months following the Resignation Date. 
 (e) Except as
provided in Section 1 and this Section 3, the Executive shall be entitled to no other compensation and/or benefits of any kind from any of the Affiliated Entities. 
 4. Release of Claims. 
 (a) In consideration of and in exchange for the
benefits provided to him under this Agreement, including, but not necessarily limited to, the Company’s acceptance of the Executive’s resignation effective as of the Resignation Date, and the benefits set forth in Section 3 of this
Agreement, the Executive, of his own free will, voluntarily, and unconditionally releases and forever discharges (this “Release”) the Affiliated Entities, their respective directors, officers, employees, agents, stockholders,
successors, and assigns (both individually and in their official capacities with the Company) (the “Company Releasees”) from, any and all past or present causes of action, suits, agreements, or other claims that the Executive, his
dependents, relatives, heirs, executors, administrators, successors, and assigns has or may hereafter have from the beginning of time to the date hereof against the Company or the Company Releasees upon or by reason of any matter, cause, or thing
whatsoever, including, but not limited to, any matters arising out of his employment by the Affiliated Entities, and the cessation of said employment, or any claim for compensation, and including, but not limited to, any alleged violation of the
Civil Rights Acts of 1964 and 1991, the Equal Pay Act of 1963, the Age Discrimination in Employment Act of 1967, the Rehabilitation Act of 1973, the Employee Retirement Income Security Act of 1974, the Older Workers Benefit Protection Act of 1990,
the Americans with Disabilities Act of 1990, the California Fair Employment and Housing Act, the California Family Rights Act, the California Worker Adjustment and Retraining Notification Act, and any other federal, state, or local law, regulation,
or ordinance, or public policy, contract, or tort law having any bearing whatsoever on the terms and conditions of employment or termination of employment. The Release shall not, however, constitute a waiver of any of the Executive’s rights to
compensation and benefits due under this Agreement. 

  
 3 

 (b) The Executive represents and warrants that he is not aware of any claim by him other
than the claims that are released by this Release. The Executive further acknowledges that he may hereafter discover claims or facts in addition to or different than those that he now knows or believes to exist with respect to the subject matter of
this Release and that, if known or suspected at the time of entering into this Release, may have materially affected this Release and the Executive’s decision to enter into it. Nevertheless, the Executive hereby waives any right, claim, or
cause of action that might arise as a result of such different or additional claims or facts, and the Executive hereby expressly waives any and all rights and benefits confirmed upon him by the provisions of California Civil Code Section 1542,
which provides as follows: 
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN
HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 
 (c) The Executive acknowledges that he has received a copy of this Agreement prior to its execution and has been advised hereby of his opportunity to review and consider the Release for 21 days prior
to its execution. The Executive further acknowledges that he has been advised hereby to consult with an attorney prior to executing this Agreement. The Executive enters into this Agreement having freely and knowingly elected, after due
consideration, to execute this Agreement and to fulfill the promises set forth herein. The Release shall be revocable by the Executive during the seven-day period following its execution, and shall not become effective or enforceable until the
expiration of such seven-day period. In the event of such a revocation, the Executive shall not be entitled to the consideration set forth in this Section 3. 
 (d) The Executive represents and warrants that there has been no assignment or other transfer of any interest in any claim that the Executive may have against the Company or any of the Company Releasees.
The Executive represents that he has not commenced or joined in any claim, charge, action, or proceeding whatsoever against the Company or any of the Company Releasees arising out of or relating to any of the matters set forth in this Release. The
Executive further agrees that he will not seek or be entitled to any personal recovery in any claim, charge, action, or proceeding whatsoever against the Company or any of the Company Releasees for any of the matters set forth in the Release.

 (e) The Executive acknowledges that, in his decision to enter into this Agreement, including the Release, he has not relied
on any representations, promises, or agreements of any kind, including oral statements by representatives of the Company or any of the Company Releasees, except as set forth in the Release and this Agreement. 

(f) Nothing contained in the Release shall be deemed or construed as an admission of wrongdoing or liability on the part of the Company
or any of the Company Releasees. 
 (g) The Executive agrees that, as soon as practicable following the Resignation Date, the
Executive shall execute a release of claims in a form to be provided to him by the Company that shall be substantially consistent with the foregoing provisions of this Section 4 (the “Subsequent Release”). 

  
 4 

 5. Mutual Nondisparagement. The Executive shall not disparage any of the
Affiliated Entities, their current or former directors, officers, employees, agents, stockholders, successors, and assigns (both individually and in their official capacities with the Company). The Company shall instruct its current officers and
directors (as such terms are used for purposes of Section 16 of the Securities Exchange Act of 1934) not to disparage the Executive. For purposes of this Agreement, to “disparage” means to make statements, whether oral or written,
whether direct or indirect, whether true or false and whether acting alone or through any other person, that cast the subject of the statement in a critical or unfavorable light or that otherwise cause damage to, or intend to embarrass, the subject
of the statement. The Executive may not disclose such termination of employment until the Company has made a public announcement of such termination. Nothing in the foregoing will preclude either the Executive or the Company from providing truthful
disclosures as required by applicable law or legal process. 
 6. Confidential Information; Restrictive Covenants;
Return of Property. 
 (a) Nonsolicitation; Confidentiality; Additional Remedies. The Executive shall be subject to
each of the covenants set forth in Section 11 (Nonsolicitation), Section 12 (Nondisclosure of Confidential Information), and Section 13 (Additional Remedies) of the Employment Agreement. 

(b) Forfeiture and Repayments. With respect to obligations in existence pursuant to the Employment Agreement, all of the remedies
under the Employment Agreement shall remain in full force and effect (and no additional remedies shall be available to the Company with respect to those obligations). With respect to obligations arising in connection with this Agreement, the
Executive agrees that, if a court issues a judgment or an arbitrator issues a final judgment that states that the Executive has violated the provisions of Section 5 or 6 of this Agreement, in any material respect, on or following the
Resignation Date, he will forfeit and not be entitled to any further payments in accordance with Section 3 of this Agreement, and he will be obligated to repay to the Company any amounts paid after the date of the violation pursuant to the
applicable provisions of Section 3(a) of this Agreement and shall pay such other damages incurred by the Company as a result of the Executive’s breaches of such obligations. Such amount shall be paid to the Company in cash in a single lump
sum within 10 business days after the judgment is entered by the trial court or final judgment by the arbitrator. 
 (c)
Scope of Restrictions; Consideration. The Executive acknowledges that the restrictions set forth in this Section 6 are reasonable and necessary to protect the Company’s business and goodwill. The Executive acknowledges that if any
of these restrictions or obligations are found by a court having jurisdiction to be unreasonable or overly broad or otherwise unenforceable, he and the Company agree that the restrictions or obligations shall be modified by the court so as to be
reasonable and enforceable and if so modified shall be fully enforced. The Executive acknowledges and agrees that the compensation and benefits provided in this Agreement constitute adequate and sufficient consideration for the covenants made by the
Executive in this Section 6. As further consideration for the covenants made by the Executive in this Section 6, the Affiliated Entities have provided the Executive certain proprietary and other confidential information about the Company,
including, but not limited to, business plans and strategies, budgets and budgetary projections, income and earnings projections and statements, cost analyses and assessments, and/or business assessments of legal and regulatory issues. 

  
 5 

 (d) Return of Property. The Executive represents and warrants that he will return all
Employment Materials (as defined below) to the Company within three days of the Resignation Date, although the Company may subsequently elect to provide any Employment Materials it deems necessary for the consulting period. For the purposes of this
Section 6(d), “Employment Materials” include, but are not limited to, computers, mobile telephones, computer software, computer disks, tapes, printouts, source, HTML and other code, flowcharts, schematics, designs, graphics,
drawings, photographs, charts, graphs, notebooks, customer lists, sound recordings, other tangible or intangible manifestation of content, and all other documents whether printed, typewritten, handwritten, electronic, or stored on computer disks,
tapes, hard drives, or any other tangible medium and whether an original or a copy. 
 7. Cooperation. The
Executive agrees to cooperate with the Company after his departure as reasonably requested by the Company, including with respect to any communications to current and former employees or directors of any of the Affiliated Entities as may reasonably
be requested by the Company in connection with such departure. The Executive will be available, on a nonexclusive basis upon reasonable notice, to respond to questions and provide assistance to the Company regarding matters for which he was
responsible and about which he had knowledge in connection with his employment with any of the Affiliated Entities for up to 100 hours in the aggregate during the five-month period following the Resignation Date. The Executive also will
cooperate in any potential or pending litigation or arbitration that may involve him in any capacity as a result of his employment with, or service as a member of the board of directors of, any of the Affiliated Entities. This includes, if
necessary, meeting at mutually convenient times with attorneys of any of the Affiliated Entities, attending meetings, depositions and trial, and providing truthful testimony. Nothing contained in this Section 7 shall restrict the
Executive’s ability to seek and/or accept full-time employment during the cooperation period. 
 8.
Restriction on Sale of Company Stock. The Executive agrees that, during the 90-day period commencing on the Resignation Date, the Executive shall not, directly or indirectly, sell, assign, transfer, convey, gift, pledge, hypothecate or
otherwise encumber or dispose of any shares of Company common stock beneficially owned by the Executive. 
 9.
Forum Selection. The Parties agree that any dispute, claim, or controversy based on common law, equity, or any federal, state, or local statute, ordinance, or regulation (other than workers’ compensation claims and, at the Company’s
election, claims for injunctive, or other relief under Sections 5 and 6 of this Agreement) arising out of or relating in any way to the Executive’s employment, the terms, benefits, and conditions of employment, or concerning this Agreement
and the resulting termination of employment, including whether such a dispute is arbitrable, shall be settled by arbitration. The arbitration proceeding will be conducted under the employment dispute resolution arbitration rules of the Judicial
Arbitration and Mediation Service (JAMS) in effect at the time a demand for arbitration under the rules is made, and such proceeding will be adjudicated in Los Angeles, California. The decision of the arbitrator(s), including determination of the
amount of any damages suffered, will be exclusive, final, and binding on all Parties, their heirs, executors, administrators, successors, and assigns. The non-prevailing Party will be responsible for the arbitrators’ fees, the prevailing
Party’s attorneys’ fees, and reasonable costs relating to the dispute. 

  
 6 

 10. Applicable Law. Except to the extent that federal law governs, this
Agreement shall be governed by and construed and enforced in accordance with the laws of the State of California, without regard to any applicable state’s choice of law provisions. 

11. Integrated Agreement; Amendments. Except with respect to the provisions of the Employment Agreement expressly
referenced herein and Section 16 of the Employment Agreement, which the Parties agree shall survive in its entirety, this Agreement sets forth the entire agreement of the Company and the Executive with respect to the subject matter hereof, and
supersedes all other agreements between any of the Affiliated Entities and the Executive and any employment or severance plan, policy, agreement, or arrangement of any of the Affiliated Entities. Without limiting the generality of the foregoing, the
Executive expressly acknowledges and agrees that, except as specifically set forth in this Agreement and the Employment Agreement to the extent that it is incorporated herein, he is not entitled to receive any severance pay, severance benefits,
compensation, or employee benefits of any kind whatsoever from the Company or any of its affiliates. This Agreement may not be amended unless the amendments are in writing and signed by the Executive and an authorized representative of the
Company. 
 12. Severability. The invalidity or unenforceability of any particular provision in this
Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if the invalid or unenforceable provision were omitted. 
 13. Taxes. Notwithstanding any other provision of this Agreement, the Company may withhold from any amounts payable under this Agreement, or any other benefits received pursuant hereto, such
federal, state, and/or local taxes as shall be required to be withheld under any applicable law or regulation. Section 14 (Section 409A) of the Employment Agreement shall survive in its entirety and apply to this Agreement.

 14. Successors. This Agreement is personal to the Executive and without the prior written consent of the
Company shall not be assignable by the Executive other than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives and the legal representatives
of his estate to the extent applicable. This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. In the event of the Executive’s death following the Expiration Date and prior to the Revocation
Date and provided that the Executive has been continuously employed with the Company through his death, the Executive’s estate shall be entitled to receive the payments and benefits set forth in Sections 3(a) and 3(b) within 30 days
following the date of the Executive’s death in full satisfaction of the obligations of the Company to the Executive. 
 15. Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

  
 7 

 16. Representations and Warranties. By signing this Agreement, the Executive warrants
that he: 
 (a) has carefully read and reviewed this Agreement; 

(b) fully understands all of its terms and conditions; 
 (c) fully understands that this Agreement is legally binding and that by signing it he is giving up certain rights; 
 (d) has not relied on any other representations by the Company or its employees or agents, whether written or oral, concerning the terms of this Agreement; 

(e) has been advised of his opportunity to consider for up to 21 days whether to accept the Release; 

(f) will have seven days to revoke each of the Release (but not the remainder of this Agreement) and the Subsequent Release after signing
it, with the eighth day following the execution of the Subsequent Release being referred to as the “Revocation Date”; 
 (g) has been advised by, and has had the opportunity to consult with, an attorney prior to executing this Agreement; 
 (h) acknowledges that all notice requirements under any other agreement, arrangement, or plan have been fully satisfied; 
 (i) executes and delivers this Agreement freely and voluntarily; 
 (j) is waiving
any rights or claims he may have under the Age Discrimination in Employment Act of 1967, as amended; and 
 (k) is not waiving
any rights or claims that may arise after this Agreement is signed. 
 17. Notices. All notices, requests,
demands, and other communications required to or permitted to be given under this Agreement will refer to the provision under this Agreement for which notice is given, will be in writing and will be effective (a) when personally delivered,
(b) two business days after deposit in the United States certified mail, return receipt requested and postage prepaid, or (c) the next business day after deposit with a national overnight delivery service reasonably approved by the Parties
(Federal Express and DHL WorldWide Express are approved), shipping charges prepaid and next-business-day delivery selected, in each case, addressed to each Party at the following address: 

If to the Executive: 
 To the address last on the records of the Company. 

  
 8 

 If to the Company: 

Banc of California, Inc. 
 18500 Von Karman Ave, Suite 1100 
 Irvine, California 92612 

Attention: General Counsel 
 Each Party will make an ordinary, good faith effort to ensure that he or it will accept or receive notices that are given under this Section 17 and that any person to be given notice actually
receives that notice. A Party may change or supplement the addresses given below the signature line, or designate additional addresses, for purposes of this paragraph by giving the other Party written notice of the new address in the manner set
forth above. 
 18. Headings. The headings and captions of the Sections of this Agreement are inserted for
convenience of reference only and are not to be considered in the construction or the interpretation of this Agreement. 

[Signature Page Follows] 

  
 9 

 IN WITNESS WHEREOF, each of the Parties hereto has duly executed this Agreement as of the
date first set forth above. 
  

					
	BANC OF CALIFORNIA, INC.
		
	By:	 	 /s/ Steven A. Sugarman

	Name:	 	Steven A. Sugarman
	Title:	 	President and Chief Executive Officer
	
	EXECUTIVE
	
	/s/ Ronald J. Nicolas, Jr.
	  
 Ronald J. Nicolas,
Jr.

  
 [Signature
Page to Nicolas Separation and Settlement Agreement] 

 EXHIBIT A 
 EMPLOYMENT AGREEMENT 

 Execution Copy 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (this
“Agreement”) is made effective as of November 5, 2012 (the “Effective Date”), by and between First PacTrust Bancorp, Inc. (“Employer” or “Bancorp”), and Ronald J. Nicolas, Jr. (the “Employee”).

 WITNESSETH: 
 WHEREAS, Employer desires to employ Employee and Employee desires to be employed by Employer upon the terms and subject to the conditions set forth herein; 

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereby agree as follows: 

1. Employment. Employer hereby agrees to employ Employee to serve initially as Executive Vice President: Finance, until such time
as his appointment as Chief Financial Officer shall become effective, and Employee hereby accepts employment with Employer upon the terms and conditions herein set forth. 
 2. Term. The term of employment under this Agreement shall begin on November 5, 2012 (the “Commencement Date”) and shall expire on the date that is three years from the Commencement
Date (the “Term End Date”), unless terminated sooner as hereinafter provided or unless extended as provided in the next sentence. Commencing on November 5, 2015, and on each anniversary of such date, the term of this Agreement shall
automatically be extended for one additional year unless either party notifies the other party at least ninety (90) days prior to such date or anniversary date that the term of this Agreement will not be extended. Reference herein to the term
hereunder shall refer to both the initial term and any extended term hereunder. 
 3. Duties. Employee will, during the
term hereof: 
  

	 	(a)	be employed by Employer on a full-time basis with all such authority, duties and responsibilities as are commensurate with his position initially as Executive Vice
President: Finance, until such time as his appointment as Chief Financial Officer shall become effective, and as may be consistent with each such position, reporting directly to the Chief Executive Officer and shall perform such other duties and
responsibilities on behalf of Employer and its affiliates as reasonably may be directed by the Board of Directors of Employer; and 

  

	 	(b)	devote his full business time, energy, and skill to the business of Employer and to the promotion of Employer’s best interests, except for vacations and absences
made necessary because of illness. 

 4. Compensation. During the term of this Agreement, Employer shall
pay Employee: 
  

	 	(a)	on the Effective Date, a one-time signing bonus in the form of a grant under the First PacTrust Bancorp, Inc. 2011 Omnibus
Incentive Plan (the “Omnibus Incentive Plan”) of 25,000 shares of restricted voting common stock of Bancorp, which shares shall vest in increments of 20% on each the first, second, third, fourth and fifth anniversary dates of the Effective
Date. The terms of such grant shall be subject to the terms of the final restricted stock agreement evidencing such grant, the form of which shall be attached hereto as Exhibit A (the “Restricted Stock Agreement”). In the event of a
conflict between the Restricted Stock Agreement and this Agreement, the terms of the Restricted Stock Agreement shall control. 

	 	(b)	a base salary at the rate of $325,000.00 per annum, payable in periodic payments in accordance with Employer’s practices for other executive, managerial, and
supervisory employees (but not less frequently than monthly), as such practices may be determined from time to time and subject to customary tax withholdings. The Board of Directors (the “Board”) of Bancorp or the Compensation Committee of
the Board of Directors of Bancorp (the “Committee”) will review such base salary at least annually and, in their discretion, may increase such salary; provided, however, that, unless and solely to the extent the Board or Committee
shall specifically provide otherwise, any such increase in salary shall not be considered as included in “base salary” for purposes of calculating Employee’s severance benefits pursuant to Section 10(b) hereof.

  

	 	(c)	for each calendar year during the term of this Agreement, Employee shall be eligible to receive an annual bonus equal to up to 100% of Employee’s base salary in
effect at the beginning of such calendar period, with a target bonus equal to 50% of base salary (the “Target Bonus”), based upon Employee’s performance, as the Board or the Committee, in their sole discretion may determine, in the
achievement of annual target performance goals established by the Board or the Committee at or prior to the commencement of such calendar year. In addition to the Target Bonus, Employee may receive additional or special compensation, such as equity
awards, incentive pay or bonuses, based upon Employee’s performance, commencing with Employee’s performance in 2012, as the Board or the Committee in their sole discretion, may from time to time determine. Any amounts payable under this
Section 4(c) that constitute “nonqualified deferred compensation” within the meaning of Section 409A (as defined in Section 14(a) of this Agreement) shall be subject to such terms or conditions that satisfy the applicable
requirements of Section 409A. 

 All such payments, and any other compensation provided by Employer to
Employee, whether under this Agreement or otherwise, will be subject to such deductions and clawback (recovery) as may be required to be made pursuant to law, government regulation, order, stock exchange listing requirement (or any policy of
Employer adopted pursuant to any such law, government regulation, order or stock exchange listing requirement) or by agreement with, or consent of, Employee. 
 5. Options.  
  

	 	(a)	General. Employee may receive grants of options from Bancorp from time to time for his services as an executive at Employer and/or any subsidiary of Employer. On
the Effective Date, Employee shall receive a grant under the Omnibus Incentive Plan of non-qualified stock options from Bancorp for the purchase of 75,000 shares of Bancorp’s voting common stock at an
exercise price per share equal to the closing market price per share of Bancorp’s common stock on the Effective Date (the “Initial Grant”) The Initial Grant shall become vested and exercisable in five equal annual installments of
15,000 shares on each of the first through the fifth anniversaries, respectively, of the Effective Date. The terms of the Initial Grant, including the foregoing vesting schedule, shall be subject to the terms of the final option agreement which
evidences the Initial Grant, which shall be attached hereto as Exhibit B (the “Initial Grant Agreement”). In the event of a conflict between the Initial Grant Agreement and this Agreement, the terms of the Initial Grant Agreement shall
control. 

  

	 	(b)	Designation of Beneficiary. From time to time, by signing a form furnished to Employer, Employee may designate any legal or natural person or persons (who may be
designated contingently or successively) to whom to transfer the Grant if he were to die before he exercised the Grant. If Employee fails to designate a beneficiary as provided above, or if the designated beneficiary dies before Employee or before
complete payment, the Grant shall be transferred to the Employee’s estate. For purposes of this Agreement, the term “designated beneficiary” means the person or persons designated by Employee as his beneficiary in the last effective
beneficiary designation form filed with Employer, or if Employee has failed to designate a beneficiary, the Employee’s estate. 

  
 2 

 6. Automobile and Other Expenses. During the term of this Agreement, Employer shall
lease and allow Employee use of, one (1) new-condition Chevy Volt automobile (the “Car”). Employee shall be solely responsible for all fuel, maintenance and other similar charges associated with
the Employee’s personal non-business use of the Car. Employee shall obtain and constantly maintain in good standing, at Employer’s expense, a comprehensive automobile liability policy in a form
reasonably acceptable to Employer (the “Policy”). Employee shall cause the insurance provider of the Policy to list Employer as an additional insured and Employee shall provide Employer with a certificate evidencing the Policy. Any damage
or liability caused or associated with Employee’s use of the Car shall be the sole responsibility of Employee. At the conclusion of the term of this Agreement or the expiration of the lease of the Car, whichever occurs first, Employee shall
promptly return the Car to Employer in good condition, normal wear and tear excepted. Employee shall be reimbursed for other expenses incurred in connection with Employer’s business in accordance with Employer’s expense reimbursement
policy for senior executives. 
 7. Benefits. Employee shall be entitled to participate in such vacation, life insurance,
medical, dental, pension, supplemental disability, retirement plans and other programs as may be approved from time to time by Employer for the benefit of its executive employees. 

8. Vacation. Employee shall be entitled to the greater of the accrual of 1.67 days of vacation for each month of service or such
other accruals as outlined in Employer’s human resource policies. In the event that the full vacation for any calendar year is not taken by Employee, Employee’s ongoing accrual of vacation will be limited by the maximum level of carryover
accrued vacation allowed for in Employer’s then existing policy for the carry forward of accrued vacation. 
 9.
Termination. 
  

	 	(a)	Employee’s employment with Employer shall be terminated (i) by reason of Employee’s death or (ii) by reason of Employee’s becoming permanently
disabled for purposes of Employer’s long-term disability program. 

  

	 	(b)	Employer may terminate Employee’s employment hereunder for any reason, with or without Cause, at any time upon notice to Employee. 

 

	 	(c)	Employee may terminate his employment hereunder without Good Reason at any time prior to March 31, 2012 and after March 31, 2012 upon sixty
(60) days’ prior written notice to Employer. In the event of termination of Employee’s employment pursuant to this Section 9(c), Employer may elect to waive the period of notice, or any portion thereof, and, if Employer so
elects, Employer will pay Employee his base salary for the period so waived. 

  

	 	(d)	Employee may terminate his employment for Good Reason within ninety (90) days following the occurrence of any condition constituting Good Reason (as defined
below), provided that Employee has first provided notice to Employer specifying in reasonable detail the condition giving rise to the Good Reason, Employee has provided Employer with a period of thirty (30) days to remedy the condition (and the
notice so specifies), and Employer has failed to remedy the condition within this thirty (30) day period. 

  

	 	(e)	Employer and Employee may also terminate Employee’s employment with Employer by issuing a notice to the other pursuant to Section 2 hereof.

  
 3 

 10. Severance Benefits. 

 

	 	(a)	In the event of the termination of Employee’s employment, for any reason, Employee shall be entitled to any Accrued Obligations (as defined herein).

  

	 	(b)	 In the event that Employer terminates Employee’s employment after March 31, 2013 without Cause, or Employee resigns after that date with Good
Reason, subject to Sections 10(e)-(i) and Section 14, (i) Employee shall be entitled to severance pay equal to up to twenty-four (24) months’ salary at the rate of salary in effect on the date his employment with Employer
terminates, except to the extent of any increases in the amount of base salary at the Effective Date which are excluded from the calculation of severance benefits as provided at Section 4(b) above, provided that the total amount of such
severance shall not exceed the amount of base salary multiplied by the months then remaining for the balance of the term then in effect under the Agreement (ii) the Initial Grant, to the extent not theretofore fully vested, shall become fully
vested and immediately exercisable in accordance with its terms, provided that the Initial Grant must be exercised on or before the 90th day following the termination of employment and any unexercised portion thereof shall lapse and be forfeited after
such date, and (iii) in the event the Employee is not theretofore fully vested in the restricted shares provided under Section 4(a) as a signing bonus, the Employee shall be entitled to be appointed as an advisor of Employer and shall be
permitted to continue serving in that capacity until all such restricted shares have vested in full. 

  

	 	(c)	 Subject to Section 14, any severance pay to be paid pursuant to Section 10(b) shall be paid in 24 equal monthly installments commencing on
the first business day coincident with or next following the sixtieth (60th) calendar date following Employee’s termination of employment. 

  

	 	(d)	In the event of Employee’s death within 24 months of termination for any reason, all remaining eligible benefits under this section shall be paid to
Employee’s designated beneficiary as noted in Section 5(b) of this Agreement. 

  

	 	(e)	Any severance pay to be paid pursuant to Section 10(b) is subject to and conditioned upon Employee signing and delivering (and not revoking) to Employer a general
release and waiver (in a form reasonably acceptable to Employer), waiving all claims the Employee may have against Employer, its parents, subsidiaries, successors, assigns, affiliates, and their respective executives, officers and directors relating
to Employee’s employment with Employer. 

  

	 	(f)	The payment of the severance pay under Section 10(b) is conditioned upon the Employee’s compliance with the
non-solicitation and nondisclosure requirements set forth in Sections 11 and 12 hereof. 

  

	 	(g)	Notwithstanding any other provision of this Agreement to the contrary, if payments under this Agreement, together with any other payments received or to be received by
Employee in connection with a “change in control” (for purposes of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”)) would cause any amount to be nondeductible for federal income tax purposes
pursuant to Section 280G of the Code, then benefits under this Agreement shall be reduced (but not less than zero) to the extent necessary so as to maximize payments to Employee without causing any amount to become nondeductible. Employee shall
determine the allocation of such reduction among payments to Employee. 

  
 4 

	 	(h)	Notwithstanding any other provision of this Agreement to the contrary, any payments made to Employee pursuant to this Agreement, or otherwise, are subject to and
conditioned upon their compliance with 12 U.S.C. § 1828(k) and any regulations promulgated thereunder, including 12 C.F.R. Part 359. 

  

	 	(i)	For purposes of this Agreement: 

  

	 	(A)	“Accrued Obligations” means (i) any base salary that Employee has earned but not been paid during or prior to the Employee’s termination of
employment, (ii) pay for any vacation time earned but not used through the date of termination, subject to Section 8 of this Agreement, (iii) any business expenses that are reimbursable under Section 6 that were incurred by
Employee as of the Employee’s termination of employment but have not been reimbursed on the date of termination, subject to the submission of any required substantiation and documentation, and (iv) any payments or benefits to which
Employee or his beneficiary or estate is entitled under the terms of any applicable employee benefit plan. 

  

	 	(B)	Termination for “Cause” shall mean termination of the employment of Employee because of Employee’s personal dishonesty, incompetence, willful
misconduct, breach of a fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule, regulation (other than traffic violations or similar offenses) or final cease-and-desist order, willful violation of material Company’s policies and procedures including employee manual or material breach of any provision of this Agreement.
Employee shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to Employee a copy of a resolution, duly adopted by the affirmative vote of not less than a majority of the entire membership of the
Board of Directors of Bancorp at a meeting or meetings of the Board called and held for such purpose (after reasonable notice to Employee and an opportunity for Employee, together with Employee’s counsel, to be heard before the Board), stating
that in the good faith opinion of the Board, Employee has engaged in conduct described in the preceding sentence and specifying the particulars thereof in detail. For purposes of this section, the term “incompetence” shall mean inability,
as determined by the Board of Directors of Employer in their reasonable judgment, to perform stated duties. 

  

	 	(C)	“Good Reason” shall exist if, without Employee’s express written consent, Employer shall: 

 

	 	(1)	assign to Employee duties that are materially inconsistent with that of a senior member of the finance team of Employer; 

 

	 	(2)	unless required by regulatory authorities, reduce the salary of Employee, or materially reduce the amount of paid vacations to which he is entitled;

  

	 	(3)	materially breach this Agreement; or 

  

	 	(4)	require Employee to relocate his principal business office outside of the Los Angeles-Orange County metropolitan area or such other area as may be mutually agreeable
between Employee and Employer; or assign to Employee duties that would reasonably require such relocation. 

  
 5 

 11. Nonsolicitation. 

 

	 	(a)	Unless otherwise agreed in writing, during the term of this Agreement, and for a period of twenty four (24) months following a termination of Employee’s
employment with Employer entitling Employee to severance pay under Section 10(b), Employee shall not induce or attempt to induce any individual or entity who was an employee, agent or independent contractor of Employer or any of its affiliates
during the period of Employee’s employment hereunder to discontinue providing services to Employer or any of its affiliates. 

  

	 	(b)	Unless otherwise agreed in writing, during the term of this Agreement, and for a period of twenty four (24) months following a termination of Employee’s
employment with Employer entitling Employee to severance pay under Section 10(b), Employee shall not, and will not assist any other person to (a) hire or solicit for hiring any employee of Employer or any of its affiliates or seek to
persuade any employee of Employer or any of its affiliates to discontinue employment or (b) solicit or encourage any independent contractor providing services to Employer or any of its affiliates to terminate or diminish its relationship with
them. 

 12. Nondisclosure of Confidential Information. Employee acknowledges that Employer and its
affiliates may disclose confidential information to Employee during the term of this Agreement to enable him to perform his duties hereunder. Employee hereby covenants and agrees that, except as required by law, regulatory directive or judicial
order, he will not, without the prior written consent of Employer, during the term of this Agreement or at any time thereafter, disclose or permit to be disclosed to any third party by any method whatsoever any of the confidential information of
Employer or any of its affiliates. For purposes of this Agreement, “confidential information” shall include, but not be limited to, any and all records, notes, memoranda, data, ideas, processes, methods, techniques, systems, formulas,
patents, models, devices, programs, computer software, writings, research, personnel information, customer information, financial information of Employer or any of its affiliates, plans, or any other information of whatever nature in the possession
or control of Employer which has not been published or disclosed to the general public, or which gives to Employer or any of its affiliates an opportunity to obtain an advantage over competitors who do not know of or use it. Employee further agrees
that if his employment hereunder is terminated for any reason, he will leave with Employer and will not take originals or copies of any and all records, papers, programs, computer software and documents and all matter of whatever nature containing
secret or confidential information of Employer or any of its affiliates. 
 Employee agrees promptly to reduce to writing and to
disclose and assign, and hereby does assign, to Employer, its subsidiaries, successors, assigns and nominees, all inventions, discoveries, improvements, copyrightable material, trademarks, programs, computer software and ideas concerning the same,
capable of use in connection with the business of Employer or any of its affiliates, which Employee may make or conceive, either solely or jointly with others, during the period of his employment by Employer, its subsidiaries or successors.

 Employee agrees, at Employer’s expense, that upon a request by Employer, to execute, acknowledge and deliver to Employer
all such papers, including applications for patents, applications for copyright and trademark registrations, and assignments thereof, as may be necessary, and at all times to assist Employer, its parent, subsidiaries, successors, assigns and
nominees in every proper way to patent or register said programs, computer software, ideas, inventions, discoveries, improvements, copyrightable material or trademarks in any and all countries and to vest title thereto in Employer, its parent,
subsidiaries, successors, assigns or nominees. 

  
 6 

 Upon a request by Employer, Employee will promptly report to Employer all discoveries,
inventions, or improvements of whatsoever nature conceived or made by him at any time he was employed by Employer, its parent, subsidiaries or successors. All such discoveries, inventions and improvements which are applicable in any way to
Employer’s business shall be the sole and exclusive property of Employer. 
 The covenants set forth in this
Section 12 are made by Employee in consideration of the employment, or continuing employment of, and the compensation paid to, Employee during his employment by Employer. The foregoing covenants will not prohibit Employee from disclosing
confidential or other information to other employees of Employer or to third parties to the extent that such disclosure is necessary to the performance of his duties under this Agreement. 

Any breach of this covenant of nondisclosure will result in the forfeiture by Employee and all other persons acting for or with Employee
in any capacity whatsoever of any and all rights to severance pay under Section 10 hereof unpaid at the time of breach and in such event Employer shall have no further obligation to pay any amounts related thereto. 

13. Additional Remedies. Employee recognizes that his services hereunder are of a personal, special, unique and extraordinary
character and irreparable injury will result to Employer and to its business and properties in the event of any breach by Employee of any of the provisions of Sections 11 and 12 of this Agreement or either of them, and that Employee’s continued
employment is predicated on the commitments undertaken by him pursuant to said Sections. In the event of any breach of any of Employee’s commitments pursuant to Sections 11 and 12 or either of them, Employer shall be entitled, in addition to
any other remedies and damages available, to injunctive relief to restrain the violation of such commitments by Employee or by any person or persons acting for or with Employee in any capacity whatsoever. 

14. Section 409A. 
  

	 	(a)	Notwithstanding anything to the contrary in this Agreement, if at the time of Employee’s termination of employment, Employee is a “specified employee,”
as defined below, any and all amounts payable under Section 10 on account of such termination of employment that constitute “nonqualified deferred compensation” under Section 409A of Code and the regulations and guidance of
general applicability issued thereunder (“Section 409A”) and would (but for this provision) be payable within six (6) months following the date of termination, shall instead be paid on the next business day following the expiration of
such six (6) month period or, if earlier, upon Employee’s death, in each case, with interest from the date on which payment would otherwise have been made, calculated at the applicable federal rate provided under Section 7872(f)(2)(A)
of the Code. If Employee receives compensation under Section 10 that can in part be treated as paid under a “separation pay plan” described in Treasury Regulation Section 1.409A-1(b)(9) then, to the extent permitted under
Section 409A, the compensation shall be treated as first made from the separation pay plan. 

  

	 	(b)	For purposes of Section 10 of this Agreement, all references to “termination of employment” and correlative phrases shall be construed to require a
“separation from service” (as defined in Treasury regulation Section 1.409A-1(h) after giving effect to the presumptions contained therein), and the term “specified employee” means an individual determined by Employer to be
a specified employee under Treasury regulation Section 1.409A-1(i) in accordance with the policies of Employer. 

  
 7 

	 	(c)	Each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments under this Agreement shall be treated as
a right to a series of separate payments. 

  

	 	(d)	Any amount that Employee is entitled to be reimbursed or to have paid on his behalf under this Agreement that would constitute nonqualified deferred compensation
subject to Section 409A shall be subject to the following additional rules: (i) no reimbursement of any such expense shall affect the Employee’s right to reimbursement of any such expense in any other taxable year;
(ii) reimbursement of the expense shall be made, if at all, promptly, but not later than the end of the calendar year following the calendar year in which the expense was incurred; and (iii) the right to reimbursement shall not be subject
to liquidation or exchange for any other benefit. 

  

	 	(e)	The parties acknowledge and agree that, to the extent applicable, this Agreement shall be interpreted in accordance with Section 409A and the Treasury regulations
and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued in the future. The parties shall cooperate in good faith and take all steps reasonably necessary and
practicable consistent with the terms of this Agreement to comply with the requirements of Section 409A in order to avoid income inclusion under Section 409A or the imposition of taxes thereunder. 

15. Reserved. 
 16. Adjustments to Comply with Final Interagency Guidance on Sound Incentive Compensation Policies. Notwithstanding anything herein to the contrary, the compensation or benefits provided under this
Agreement are subject to modification, as necessary to comply with requirements imposed by Bancorp’s Board of Directors to comply with the “Final Interagency Guidance on Sound Incentive Compensation Policies” issued on an interagency
basis by the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the Office of Thrift Supervision, effective June 25, 2010, or any amendment , modification or supplement thereto,
which shall be deemed to include, without limitation, any rules adopted pursuant to Section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. 
 17. Provisions Required By Law. Notwithstanding anything herein to the contrary, any provisions that are now or are in the future required by applicable law, rule, regulation or regulatory guidance
or policy of general applicability to be included in this Agreement that are not expressly stated herein (including, without limitation, any provisions so required under 12 C.F.R. Section 163.39) shall be deemed to be a part of this Agreement
as fully as if such provisions were expressly stated herein. 
 18. No Duplication of Employer Obligations. With respect
to any payments or other compensation to be provided hereunder by Employer, the provision of such payments or other compensation by the Bank shall be deemed to reduce, to the same extent, the obligation of Bancorp to provide such payments or other
compensation, and vice versa. 
 19. Assignment; Benefit. No party shall have the right to assign this Agreement or any
rights or obligations hereunder without the consent of each of the other parties; provided, however, that Employer may assign its rights and obligations hereunder (i) to any entity controlled by, under the control of, or under common control
with, Employer (as long as such entity is no less capable of fulfilling the obligations of Employer hereunder), or (ii) to any successor to Employer upon any liquidation, dissolution or winding up of Employer, upon any merger or consolidation
of Employer or upon any sale of all or substantially all of the assets of Employer (as long as such successor is capable of fulfilling the obligations of Employer hereunder). 

  
 8 

 20. Waiver. Failure of any party hereto at any time to require performance by any
other party of any provision of this Agreement shall in no way affect the rights of such first party to require performance of that provision, and any waiver by any party hereto of any provision of this Agreement shall not be construed as a waiver
of any continuing or succeeding breach of such provision, a waiver of the provision itself, or a waiver of any rights under this Agreement. 
 21. Severability. If any clause, phrase, provision or portion of this Agreement or the application thereof to any person or circumstance shall be invalid or unenforceable under any applicable law,
such event shall not affect or render invalid or unenforceable the remainder of this Agreement and shall not affect the application of any clause, provision, or portion hereof to other persons or circumstances. 

22. Benefits. The provisions of this Agreement shall inure to the benefit of Employer, its successors and assigns, and shall be
binding upon Employer and Employee, its and his heirs, personal representatives and successors including without limitation Employee’s estate and the executors, administrators, or trustees of such estate. 

23. Relevant Law. To the extent not governed by the Federal laws of the United States of America, this Agreement shall be
construed and enforced in accordance with the laws of the State of California. Any dispute between the parties hereto not relating to the enforcement of Section 11 or Section 12 hereof shall be settled by arbitration in California in
accordance with the then applicable rules of the American Arbitration Association and judgment upon the award rendered may be entered in any court having jurisdiction thereof. 
 24. Notices. All notices, requests, demands and other communications in connection with this Agreement shall be made in writing and shall be deemed to have been given when delivered by hand or two
of Employer’s business days after mailing at any general or branch United States Post Office, by registered or certified mail postage prepaid, addressed as follows, or to such other address as shall have been designated in writing by the
addressee: 
 If to Employer: 
 First PacTrust Bancorp, Inc. 
 18500 Von Karman, Suite 1100 

Irvine, California 92612 
 Attention: Chief Executive Officer 
 If to Employee: 

Ronald J. Nicolas, Jr. 
 c/o First PacTrust Bancorp, Inc. 
 18500 Von Karman, Suite 1100 

Irvine, California 92612 
 25. Entire Agreement. This Agreement sets forth the entire understanding of the parties and supersedes all prior agreements, arrangements, and communications, whether oral or written, pertaining to
the subject matter hereof, and this Agreement shall not be modified or amended except by written agreement of Employer and Employee. 

  
 9 

 26. Captions. The headings and captions hereof are for convenience only and shall not
affect the construction of this Agreement. 
 27. Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original and all of which shall constitute but one and the same Agreement, which shall be sufficiently evidenced for all purposes by any one executed counterpart. 

28. Construction. Employer and the Employee acknowledge that this Agreement was the result of arms-length negotiations between
sophisticated parties each represented by legal counsel. Each and every provision of this Agreement shall be construed as though both parties participated equally in the drafting of same, and any rule of construction that a document shall be
construed against the drafting party shall not be applicable to this Agreement. 
 29. Survival. The obligations
contained in this Agreement shall survive the termination of Employee’s employment with Employer or expiration of this Agreement as necessary to carry out the intentions of the parties as described herein. 

[SIGNATURE PAGE FOLLOWS] 

  
 10 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first set
forth above. 
  

			
	Employer
	
	FIRST PACTRUST BANCORP, INC.
		
	By:	 	 /s/ Steven Sugarman

		 	Name:
		 	Title: Chief Executive Officer
	
	Employee
	
	 /s/ Ronald J. Nicolas, Jr.

	Ronald J. Nicolas, Jr.

  
 11 

 EXHIBIT A 
 FORM OF RESTRICTED STOCK AGREEMENT 
 FIRST PACTRUST BANCORP, INC.

 2011 OMNIBUS INCENTIVE PLAN 
 RESTRICTED STOCK AGREEMENT 
 RS No.         

 Shares of Restricted Stock are hereby awarded on November 5, 2012 by First PacTrust Bancorp, Inc., a Maryland
corporation (the “Corporation”), to Ronald J. Nicolas, Jr. (the “Grantee”) in accordance with the following terms and conditions: 
 1. Share Award. In accordance with Section 4(a) of the Employment Agreement between and between the Corporation and the Grantee dated as of the date hereof (the “Employment
Agreement”), the Corporation hereby awards to the Grantee 25,000 shares (the “Shares”) of the voting common stock of the Corporation (“Common Stock”) pursuant to the First PacTrust Bancorp, Inc. 2011 Omnibus Incentive Plan,
as the same may be amended from time to time (the “Plan”), and upon the terms and conditions and subject to the restrictions in the Plan and as hereinafter set forth. A copy of the Plan, as currently in effect, is incorporated herein by
reference and is attached hereto. Capitalized terms used herein which are not defined in this Agreement shall have the meaning ascribed to such terms in the Plan. 
 2. Restrictions on Transfer and Restricted Period. Except as otherwise provided in Section 3 or Section 8 of this Agreement, during the period (the “Restricted Period”)
commencing on the date of this Agreement and terminating on November 5, 2015, Shares with respect to which the Restricted Period has not lapsed may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated by the
Grantee. Shares with respect to which the Restricted Period has lapsed shall sometimes be referred to herein as “Vested.” 
 Except as otherwise provided in Section 3 or Section 8 of this Agreement and subject to Section 10(b) of the Employment Agreement, provided that the Grantee is then serving as a Director or
an Employee of the Corporation or any Subsidiary, Shares shall become Vested in accordance with the following schedule: 
  

					
	 Date of Vesting
	  	Cumulative Shares Vested	 
		
	 November 5, 2013
	  	 	5,000	  
	 November 5, 2014
	  	 	10,000	  
	 November 5, 2015
	  	 	15,000	  
	 November 5, 2016
	  	 	20,000	  
	 November 5, 2017
	  	 	25,000	  

 3. Termination of Service. Upon the termination of the Grantee’s service, the Shares shall
become forfeited or Vested, as the case may be, as and to the extent provided in Sections 8.9 and 8.10 of the Plan, subject to Section 10(b) of the Employment Agreement, if applicable under the circumstances of the termination of the
Grantee’s service. 

  
 12 

 4. Issuance of the Shares. Promptly after the date of this Agreement, the Corporation
shall recognize the Grantee’s ownership of the Shares through (i) a crediting of the Shares to a book entry account maintained by the Corporation (or its transfer agent or other designee) for the benefit of the Grantee, with appropriate
electronic notation of the restrictions on transfer provided herein, or another similar method, or (ii) the issuance of a certificate representing the Shares in the name of the Grantee, bearing any legend that the Corporation deems appropriate
to reflect the restrictions on transfer provided herein, to be held in custody by the Corporation or its designee for the benefit of the Grantee until the Shares represented thereby become Vested. 

The Grantee agrees that simultaneously with the execution of this Agreement, the Grantee shall execute the stock power attached hereto
and that the Grantee shall promptly deliver such stock power to the Corporation. The Grantee further agrees to execute and deliver any and all additional stock powers and/or other instruments as the Corporation from time to time requests as it may,
in its judgment, deem to be advisable to fulfill the purposes of this Agreement. 
 5. Grantee’s Rights. Subject to
all limitations provided in this Agreement, the Grantee, as owner of the Shares during the Restricted Period, shall have all the rights of a stockholder, including, but not limited to, the right to receive all dividends and other distributions paid
on the Shares and the right to vote such Shares. If any such dividends or distributions are paid in shares of Common Stock, such shares of Common Stock shall be subject to the same restrictions then applicable to the Shares with respect to which
they were paid. 
 6. Vesting. Upon Shares becoming Vested, the Corporation shall release such Shares to the Grantee
(i) by appropriate transfer to an unrestricted book entry account maintained by the Corporation (or its transfer agent or other designee) for the benefit of the Grantee (or, if the Grantee is deceased, to the Grantee’s legal
representative) or by other appropriate electronic notation of the lapse or expiration of the Restricted Period with respect to such Shares, (ii) by delivering to the Grantee (or, if the Grantee is deceased, to the Grantee’s legal
representative) a certificate issued in respect of such Shares (without any legend contemplated by Section 4 above), or (iii) by any other means deemed appropriate by the Corporation. 

7. Adjustments for Changes in Capitalization of the Corporation. In the event of any merger, reorganization, consolidation,
recapitalization, separation, liquidation, stock dividend, split up, share combination or other change in the corporate structure of the Corporation affecting the shares of the Corporation’s Common Stock, such adjustment shall be made in the
number and class of shares subject to this Agreement as shall be determined to be appropriate and equitable by the Committee to prevent dilution or enlargement of rights, provided that the number of shares covered by this Agreement shall always be a
whole number. 
 8. Effect of Change in Control. If a Change in Control shall occur after March 31, 2013, all
previously unvested Shares shall become Vested in full. Notwithstanding the foregoing, no Shares which have previously been forfeited shall thereafter become Vested. 
 9. Delivery and Registration of Shares of Common Stock. The Corporation’s obligation to deliver the Shares hereunder shall, if the Committee so requests, be conditioned upon the receipt of a
representation as to the investment intention of the Grantee or any other person to whom such Shares are to be delivered, in such form as the Committee shall determine to be necessary or advisable to comply with the provisions of the Securities Act
of 1933, as amended (the “Securities Act”), or any other Federal, state or local securities regulation. It may be provided that any representation requirement shall become inoperative upon a registration of such shares or other action
eliminating the necessity of such representation under such Securities Act or other securities regulation. The Corporation shall not be required to deliver any shares of Common Stock hereunder prior to (i) the admission of such shares to
listing on any stock exchange or automated quotation system on which the shares of Common Stock may then be listed or quoted and (ii) the completion of such registration or other qualification of such shares under any state or Federal law, rule
or regulation, as the Committee shall determine to be necessary or advisable. 

 10. Plan and Plan Interpretations as Controlling. The Shares hereby awarded and the
terms and conditions herein set forth are subject in all respects to the terms and conditions of the Plan, which are controlling. All determinations and interpretations made in the discretion of the Committee shall be binding and conclusive upon the
Grantee or the Grantee’s legal representatives with regard to any question arising hereunder or under the Plan. 
 11.
Grantee Service. Nothing in this Agreement shall interfere with or limit in any way the right of the Corporation or any Subsidiary to terminate the Grantee’s employment or service at any time, nor confer upon the Grantee any right to
continue in the employ or service of the Corporation or any Subsidiary. 
 12. Withholding Tax. Upon Shares becoming
Vested (or at any such earlier time, if any, that an election is made by the Grantee under Section 83(b) of the Code, or any successor provision thereto), the Corporation may withhold from any payment or distribution made hereunder sufficient
Shares to cover any applicable withholding and employment taxes, or require the Grantee to remit to the Company an amount sufficient to satisfy such taxes. The Corporation shall have the right to deduct from all dividends paid with respect to Shares
the amount of any taxes which the Corporation is required to withhold with respect to such dividend payments, or require the Grantee to remit to the Company an amount sufficient to satisfy such taxes. 

13. Grantee Acceptance. The Grantee shall signify the Grantee’s acceptance of the terms and conditions of this Agreement by
signing in the space provided below, by signing the attached stock power, and by returning a signed copy hereof and of the attached stock power to the Corporation. 
 [SIGNATURE PAGE FOLLOWS] 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first above written. 
  

			
		 	FIRST PACTRUST BANCORP, INC.
		
	By:	 	 /s/ Steven Sugarman

		
		 	ACCEPTED:
		
		 	 /s/ Ronald J. Nicolas, Jr.

		 	Ronald J. Nicolas, Jr.
		
		 	  

		 	(Street Address)
		
		 	  

		 	(City, State & Zip Code)

 STOCK POWER 

For value received, I hereby sell, assign, and transfer to First PacTrust Bancorp, Inc. (the “Corporation”) all shares of the
voting common stock of the Corporation, standing in my name on the books and records of the Corporation (whether in certificated form or book-entry or similar form), that are issued to me pursuant to that certain Restricted Stock Agreement, dated
November 5, 2012, to which the Corporation and I are parties (as the same may from time to time be amended, the “Agreement”), and do hereby irrevocably constitute and appoint the Secretary of the Corporation attorney, with full power
of substitution, to transfer this stock on the books and records of the aforesaid Corporation. To the extent the restrictions on transfer of any portion of such shares under the Agreement have lapsed or expired, this Stock Power shall cease to be of
legal effect with respect to that portion of such shares following their release to me, free of restriction, as provided in the Agreement. 
  

	
	 /s/ Ronald J. Nicolas, Jr.

	Ronald J. Nicolas, Jr.

 Dated: 

In the presence of: 

 EXHIBIT B 
 FORM OF STOCK OPTION AGREEMENT 
 FIRST PACTRUST BANCORP, INC.

 2011 OMNIBUS INCENTIVE PLAN 
 NON-QUALIFIED STOCK OPTION AGREEMENT 
 NQSO
NO.          
 This Option is granted on November 5, 2012 (the “Grant
Date”) by First PacTrust Bancorp, Inc., a Maryland corporation (the “Corporation”), to Ronald J. Nicolas, Jr. (the “Optionee”) in accordance with the following terms and conditions: 

1. Option Grant and Exercise Period. In accordance with Section 5(a) of the Employment Agreement by and between the
Corporation and the Optionee dated as of the date hereof (the “Employment Agreement”), the Corporation hereby grants to the Optionee a Non-Qualified Stock Option (“Option”) to purchase,
pursuant to the First PacTrust Bancorp, Inc. 2011 Omnibus Incentive Plan, as the same may be amended from time to time (the “Plan”), and upon the terms and conditions therein and hereinafter set forth, an aggregate of 75,000 shares (the
“Option Shares”) of the voting common stock of the Corporation (“Common Stock”) at the price of $         per share (the “Exercise Price”). A copy of the Plan, as currently in
effect, is incorporated herein by reference and is attached to this Agreement. Capitalized terms used herein which are not defined in this Agreement shall have the meanings ascribed to such terms in the Plan. 

This Option shall be exercisable only during the period (the “Exercise Period”) commencing on the date(s) set forth in
Section 2 below, and ending at 5:00 p.m., Pacific time, on the date 10 years after the Grant Date, such later time and date being hereinafter referred to as the “Expiration Date,” subject to earlier vesting and/or earlier expiration
pursuant to Sections 5 and 7 below. 
 2. Method of Exercise of This Option. This Option may be exercised during the
Exercise Period with respect to not more than the cumulative number of Option Shares set forth below on or after the date(s) indicated, by giving written notice to the Corporation as hereinafter provided specifying the number of Option Shares to be
purchased. 
  

					
	 Cumulative Number of Option Shares Exercisable
	  	Date	 
		
	 15,000
	  	 	November 5, 2013	  
	 30,000
	  	 	November 5, 2014	  
	 45,000
	  	 	November 5, 2015	  
	 60,000
	  	 	November 5, 2016	  
	 75,000
	  	 	November 5, 2017	  

 The notice of exercise of this Option shall be in the form prescribed by the Committee and directed to the
address set forth in Section 10 below. The date of exercise is the date on which such notice is received by the Corporation. Such notice shall be accompanied by payment in full of the aggregate Exercise Price for the Option Shares to be
purchased upon such exercise. Payment shall be made (i) in cash or its equivalent, (ii) by tendering previously acquired shares of Common Stock having an aggregate Fair Market Value at the time of exercise equal to the aggregate Exercise
Price or (iii) by a combination of (i) and (ii). In addition, the Corporation may establish a cashless exercise program in accordance with applicable laws and regulations. Promptly after such payment, subject to Section 3 below, the
Corporation shall issue and deliver to the Optionee or other person exercising this Option a certificate or certificates representing the shares of Common Stock so purchased, registered in the name of the Optionee (or such other person), or, upon
request, in the name of the Optionee (or such other person) and in the name of another in such form of joint ownership as requested by the Optionee (or such other person) pursuant to applicable state law. In lieu of issuing a certificate or
certificates representing the shares of Common Stock so purchased, the Corporation may cause such shares to be credited to a book entry account maintained by the Corporation (or its transfer agent or other designee) for the benefit of the Optionee
or other person exercising this Option, including any joint owner as provided in the immediately preceding sentence. 
 3.
Delivery and Registration of Shares of Common Stock. The Corporation’s obligation to deliver shares of Common Stock hereunder shall, if the Committee so requests, be conditioned upon the receipt of a representation as to the investment
intention of the Optionee or any other person to whom such shares are to be delivered, in such form as the Committee shall determine to be necessary or advisable to comply with the provisions of the Securities Act of 1933, as amended (the
“Securities Act”), or any other Federal, state or local securities law or regulation. In requesting any such representation, it may be provided that such representation requirement shall become inoperative upon a registration of such
shares or other action eliminating the necessity of such representation under the Securities Act or other securities law or regulation. The Corporation shall not be required to deliver any shares upon exercise of this Option prior to (i) the
admission of such shares to listing on any stock exchange or system on which the shares of Common Stock may then be listed and (ii) the completion of such registration or other qualification of such shares under any state or Federal law, rule
or regulation, as the Committee shall determine to be necessary or advisable. 
 4. Nontransferability of This Option.
This Option may not be sold, transferred, pledged assigned or otherwise alienated or hypothecated, other than: (i) upon the Optionee’s death, to the person designated as the Optionee’s Beneficiary or, if no Beneficiary has been
properly designated by the Optionee, by will or by the laws of descent and distribution, (ii) pursuant to a Qualified Domestic Relations Order or (iii) by gift to any member of the Optionee’s immediate family or to a trust for the
benefit of one or more of the Optionee’s immediate family members. During the lifetime of the Optionee, this Option shall be exercisable only by the Optionee or a person acting with the legal authority of the Optionee unless it has been
transferred as permitted hereby, in which case it shall be exercisable only by such transferee. For the purpose of this Section 4, an Optionee’s “immediate family” shall mean the Optionee’s spouse, children and
grandchildren. 
 In the event this Option is transferred as permitted by this Section 4, the person to whom this Option
has been transferred may exercise this Option to the extent this Option would have been exercisable by the Optionee if the Option were not so transferred. The provisions of this Option shall be binding upon, inure to the benefit of and be
enforceable by the parties hereto, the successors and assigns of the Corporation and any person acting with the legal authority of the Optionee or to whom this Option is transferred in accordance with this Section 4. 

 5. Termination of Service; Expiration. The exercisability of this Option following a
termination of the service of the Optionee shall be as and to the extent provided in Sections 6.8 and 6.9 of the Plan, subject to acceleration of vesting under Section 10(b) of the Employment Agreement, if applicable under the circumstances of
the termination of the Optionee’s service. In no event shall this Option be exercisable following the Expiration Date. 

6. Adjustments for Changes in Capitalization of the Corporation. In the event of any merger, reorganization, consolidation,
recapitalization, separation, liquidation, stock dividend, split-up, share combination or other change in the corporate structure of the Corporation affecting the shares of the Corporation’s Common Stock,
such adjustment shall be made in the number and class of shares covered by this Option and Exercise Price of this Option as shall be determined to be appropriate and equitable by the Committee to prevent dilution or enlargement of rights; and
provided that the number of shares subject to this Option shall always be a whole number. 
 7. Effect of Change in
Control. If a Change in Control shall occur after March 31, 2013, this Option shall (to the extent it is not then so exercisable) become exercisable in full and remain so exercisable for the remainder of its term, subject to Sections
6.8 and 6.9 of the Plan. Notwithstanding the foregoing this Option shall not become exercisable to the extent that it has previously been exercised or otherwise terminated. 
 8. Stockholder Rights Not Granted by This Option. The Optionee is not entitled by virtue hereof to any rights of a stockholder of the Corporation or to notice of meetings of stockholders or to
notice of any other proceedings of the Corporation. 
 9. Withholding Tax. The Corporation shall have the power and the
right to deduct or withhold, or require the Optionee to remit to the Corporation, an amount sufficient to satisfy Federal, state and local taxes (including the Optionee’s FICA obligation) required by law to be withheld with respect to this
Option. 
 10. Notices. All notices hereunder to the Corporation shall be delivered or mailed to it addressed to the
Secretary of First PacTrust Bancorp, Inc., 18500 Von Karman Avenue, Suite 1100, Irvine, California 92612. Any notices hereunder to the Optionee shall be delivered personally or mailed to the Optionee’s address noted below. Such addresses for
the service of notices may be changed at any time provided written notice of the change is furnished in advance to the Corporation or to the Optionee, as the case may be. 
 11. Plan and Plan Interpretations as Controlling. This Option and the terms and conditions herein set forth are subject in all respects to the terms and conditions of the Plan, which are
controlling. All determinations and interpretations made in the discretion of the Committee shall be final and conclusive upon the Optionee or the Optionee’s legal representatives with regard to any question arising hereunder or under the Plan.

 12. Optionee Service. Nothing in this Agreement shall interfere with or limit in any way the right of the Corporation
or any Subsidiary to terminate the Optionee’s employment or service at any time, nor confer upon the Optionee any right to continue in the employ or service of the Corporation or any Subsidiary. 

13. Optionee Acceptance. The Optionee shall signify his acceptance of the terms and conditions of this Option by signing in the
space provided below and returning a signed copy hereof to the Corporation at the address set forth in Section 10 above. 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first above written. 
  

			
		 	FIRST PACTRUST BANCORP, INC.
		
	By:	 	 /s/ Steven Sugarman

		
		 	ACCEPTED:
		
		 	 /s/ Ronald J. Nicolas, Jr.

		 	Ronald J. Nicolas, Jr.
		
		 	  

		 	(Street Address)
		
		 	  

		 	(City, State and Zip Code)

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