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  Exhibit 10.1    
    

 
 

  PACWEST BANCORP 2003 STOCK INCENTIVE PLAN
  as amended and restated, effective December 15, 2008    
    

        1.    Purpose of the Plan.    The purpose of this PacWest Bancorp 2003 Stock Incentive Plan is to offer certain
Employees, Non-Employee Directors, and Consultants the opportunity to acquire a proprietary interest in the Company. Through the Plan, the Company and its subsidiaries seek to attract,
motivate, and retain highly competent persons. The success of the Company and its affiliates are dependent upon the efforts of these persons. The Plan provides for the grant of options, restricted
stock awards, performance stock awards, and stock appreciation rights. An option granted under the Plan may be a Non-Statutory Stock Option or an Incentive Stock Option, as determined by
the Administrator. 

        2.    Definitions.    As used herein, the following definitions shall apply. 

        "2003
Plan" shall mean PacWest Bancorp 2003 Stock Incentive Plan, originally adopted as of April 18, 2003, and as amended and restated hereby. 

        "Act"
shall mean the Securities Act of 1933, as amended. 

        "Administrator"
shall mean the Board or any one of the Committees. 

        "Affiliate"
shall mean any parent or subsidiary (as defined in Sections 424(e) and (f) of the Code) of the Company. 

        "APB 25"
shall mean Opinion 25 of the Accounting Principles Board, as amended, and any successor thereof. 

        "Award"
shall mean an Option, Stock Award, or a SAR. 

        "Board"
shall mean the Board of Directors of the Company. 

        "Cause"
shall have the meaning given to it under the Participant's employment agreement with the Company or Affiliate, or a policy of the Company or an Affiliate. If the Participant does
not have an employment agreement or the employment agreement does not define this term, or the Company or an Affiliate does not have a policy that defines this term, then Cause shall include
malfeasance or gross misfeasance in the performance of duties or conviction of illegal activity in connection therewith or any conduct detrimental to the interests of the Company or an Affiliate which
results in termination of the Participant's service with the Company or an Affiliate, as determined by the Administrator. 

        "Change
in Control" shall mean: 

          (i)  the
consummation of a plan of dissolution or liquidation of the Company; 

         (ii)  the
individuals who, as of the effective date hereof, are members of the Board ("Incumbent Board"), cease for any reason to constitute at least two-thirds
of the members of the Board; provided, however, that if the election, or nomination for election by the Company's shareholders, of any new director was approved by a vote of at least
two-thirds of the Incumbent Board, such new director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; provided, further, however, that no individual
shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened "election contest" or other actual or threatened
solicitation of proxies or consents by or on behalf of an individual, entity or group (within the meaning of Section 13(d) or 14(d) of the Exchange Act)(a
"Person") other than the Board (a "Proxy Contest") including by reason of any agreement intended to avoid or settle any election contest or Proxy Contest; 

        (iii)  the
consummation of a plan of reorganization, merger or consolidation involving the Company, except for a reorganization, merger or consolidation where (A) the
shareholders of the Company immediately prior to such reorganization, merger or consolidation own directly or 

 

indirectly
at least 70% of the combined voting power of the outstanding voting securities of the company resulting from such reorganization, merger or consolidation (the "Surviving Company") in
substantially the same proportion as their ownership of voting securities of the Company immediately prior to such reorganization, merger or consolidation, and (B) the individuals who were
members of the Incumbent Board immediately prior to the execution of the agreement providing for such reorganization, merger or consolidation constitute at least two-thirds of the members
of the board of directors of the Surviving Company, or of a company beneficially owning, directly or indirectly, a majority of the voting securities of the Surviving Company; 

        (iv)  the
sale of all or substantially all the assets of the Company to another person; or 

         (v)  the
acquisition by another Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of stock representing
more than fifty percent (50%) of the voting power of the Company then outstanding by another Person. 

        "Code"
shall mean the Internal Revenue Code of 1986, as amended. 

        "Committee"
shall mean a committee appointed by the Board in accordance with Section 3 below. 

        "Common
Stock" shall mean the common stock of the Company, no par value. 

        "Company"
shall mean PacWest Bancorp, a Delaware corporation. 

        "Consultant"
shall mean any natural person who performs bona fide services for the Company or an Affiliate as a consultant or advisor, excluding Employees and Non-Employee
Directors. 

        "Date
of Grant" shall mean the effective date as of which the Administrator grants an Option to an Optionee, a Stock Award to a Grantee, or a SAR to an Optionee. 

        "Disability"
shall mean total and permanent disability as defined in Section 22(e)(3) of the Code. 

        "Employee"
shall mean any individual who is a common-law employee of the Company or an Affiliate. 

        "Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended. 

        "Exercise
Price," in the case of an Option, shall mean the exercise price of a share of Optioned Stock. "Exercise Price," in the case of a SAR, shall be determined by the Administrator
but shall not be less than 100% of the Fair Market Value of a Share on the Date of Grant of such SAR. 

        "Fair
Market Value" shall mean, as of any date, the value of Common Stock determined as follows: 

          (i)  If
the Common Stock is listed on any established stock exchange or a national market system, including without limitation, the Nasdaq National Market or The Nasdaq
SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system
for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator
deems reliable; 

         (ii)  If
the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high
bid and low asked prices for the Common Stock quoted by such recognized securities dealer on the last market trading day prior to the day of determination; or 

        (iii)  In
the absence of an established market for the Common Stock, its Fair Market Value shall be determined, in good faith, by the Administrator. 

        "FASB"
shall mean the Financial Accounting Standards Board. 

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        "Granted
Stock" shall mean the shares of Common Stock that were granted pursuant to a Stock Award. 

        "Grantee"
shall mean any person who is granted a Stock Award. 

        "Incentive
Stock Option" shall mean an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code. 

        "Mature
Shares" shall mean Shares that had been held by the Participant for a meaningful period of time such as six months or such other period of time that is consistent with FASB's
interpretation of APB 25. 

        "Non-Employee
Director" shall mean a non-employee member of the Board. 

        "Non-Statutory
Stock Option" shall mean an Option not intended to qualify as an Incentive Stock Option. 

        "Notice
of Stock Appreciation Rights Grant" shall mean the notice delivered by the Company to the Optionee evidencing the grant of an SAR. 

        "Notice
of Stock Option Grant" shall mean the notice delivered by the Company to the Optionee evidencing the grant of an Option. 

        "Option"
shall mean a stock option granted pursuant to the Plan. 

        "Option
Agreement" shall mean a written agreement that evidences an Option in such form as the Administrator shall approve from time to time. 

        "Optioned
Stock" shall mean the Common Stock subject to an Option. 

        "Optionee"
shall mean any person who receives an Option or a SAR. 

        "Participant"
shall mean an Optionee or a Grantee. 

        "Performance
Stock Award" shall mean an Award granted pursuant to Section 9 of the Plan. 

        "Plan"
shall mean this PacWest Bancorp 2003 Stock Incentive Plan, as amended and restated to date. 

        "Qualified
Note" shall mean a recourse note, with a market rate of interest, that may, at the discretion of the Administrator, be secured by the Optioned Stock or otherwise. 

        "Restricted
Stock Award" shall mean an Award granted pursuant to Section 8 of the Plan. 

        "Risk
of Forfeiture" shall mean the Grantee's risk that the Granted Stock may be forfeited and returned to the Company in accordance with Section 8 or 9 of the Plan. 

        "Rule 16b-3"
shall mean Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3. 

        "SAR"
or "Stock Appreciation Right" shall mean a stock appreciation right granted pursuant to the Plan. 

        "SAR
Agreement" shall mean a written agreement that evidences a SAR in such form as the Administrator shall approve from time to time. 

        "Service"
shall mean the performance of services for the Company (or any Affiliate) by an Employee, Non-Employee Director, or Consultant, as determined by the Administrator
in its sole discretion. Service shall not be considered interrupted in the case of: (i) a change of status (i.e., from Employee to
Consultant, Non-Employee Director to Consultant, or any other combination); (ii) transfers between locations of the Company or between the Company and any Affiliate; or
(iii) a 

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leave
of absence approved by the Company or an Affiliate. A leave of absence approved by the Company or an Affiliate shall include sick leave, military leave, or any other personal leave approved by
an authorized representative of the Company or an Affiliate. 

        "Service
Provider" shall mean an Employee, Non-Employee Director, or Consultant. 

        "Share"
shall mean a share of Common Stock. 

        "Stock
Award" shall mean a Restricted Stock Award or a Performance Stock Award. 

        "Stock
Award Agreement" shall mean a written agreement that evidences a Restricted Stock Award or Performance Stock Award in such form as the Administrator shall approve from time to
time. 

        "Tax"
or "Taxes" shall mean the federal, state, and local income, employment and excise tax liabilities incurred by the Participant in connection with his/her Awards. 

        "10%
Shareholder" shall mean the owner of stock (as determined under Section 424(d) of the Code) possessing more than 10% of the total combined voting power of all classes of
stock of the Company (or any Affiliate). 

        "Termination
Date" shall mean the date on which a Participant's Service terminates, as determined by the Administrator in its sole discretion. 

        "Vesting
Event" shall mean the earlier of: (i) the occurrence of a Change in Control; (ii) the termination of a Participant's Service (other than for Cause) following the
approval by the shareholders of the Company of any matter, plan or transaction which would constitute a Change in Control; (iii) the death
of the Participant, for all Stock Awards granted with an effective date of November 2, 2005 and afterward. 

        3.    Administration of the Plan.    

        (a)   Except
as otherwise provided for below, the Plan shall be administered by (i) the Board or (ii) a Committee, which Committee shall be constituted to
satisfy applicable laws. 

        (i)    Section 162(m).    To the extent that the Administrator determines that it is desirable to qualify
Awards as "performance-based compensation" within the meaning of Section 162(m) of the Code, the Plan shall be administered by a Committee comprised solely of two or more "outside directors"
within the meaning of Section 162(m) of the Code. 

        (ii)    Rule 16b-3.    To the extent desirable to qualify transactions hereunder as exempt under
Rule 16b-3, the transactions contemplated hereunder shall be structured to satisfy the requirements for exemption under Rule 16b-3. 

        (b)    Powers of the Administrator.    Subject to the provisions of the Plan and in the case of specific duties
delegated by the Administrator, and subject to the approval of relevant authorities, including the approval, if required, of any stock exchange or national market system upon which the Common Stock is
then listed, the Administrator shall have the authority, in its sole discretion: 

          (i)  to
determine the Fair Market Value of the Common Stock; 

         (ii)  to
select the Service Providers to whom Awards may, from time to time, be granted under the Plan; 

        (iii)  to
determine whether and to what extent Awards are granted under the Plan; 

        (iv)  to
determine the number of Shares that pertain to each Award; 

         (v)  to
approve the terms of the Option Agreements, Stock Award Agreements, and SAR Agreements; 

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        (vi)  to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award. Such terms and conditions may include, but are not limited to, the
Exercise Price, the status of an Option (Non-Statutory Stock Option or Incentive Stock Option), the time or times when Awards may be exercised, any vesting acceleration or waiver of
forfeiture restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall
determine; 

       (vii)  to
determine the method of payment of the Exercise Price; 

      (viii)  to
reduce the Exercise Price of any Option to the then current Fair Market Value if the Fair Market Value of the Optioned Stock has declined since the Date of Grant
of such Option, except as otherwise would cause an Option to be deemed to provide for a deferral of compensation within the meaning of Section 409A of the Code; 

        (ix)  to
delegate to others responsibilities to assist in administering the Plan; 

         (x)  to
construe and interpret the terms of the Plan, Option Agreements, Stock Award Agreements, SAR Agreements and any other documents related to the Awards; 

        (xi)  to
interpret and administer the terms of the Plan to comply with all Tax rules and regulations; and 

       (xii)  to
adopt, alter and repeal such administrative rules, guidelines and practices governing the operation of the Plan as it shall from time to time deem advisable. 

        (c)    Effect of Administrator's Decision.    All decisions, determinations, and interpretations of the Administrator
shall be final and binding on all Participants and any other holders of any Awards. The Administrator's decisions and determinations under the Plan need not be uniform and may be made selectively
among Participants whether or not such Participants are similarly situated. 

        (d)    Liability.    No member of the Committee shall be personally liable by reason of any contract or other
instrument executed by such member or on his/her behalf in his/her capacity as a member of the Committee for any mistake of judgment made in good faith, and the Company shall indemnify and hold
harmless each member of the Committee and each other employee, officer or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be
allocated or delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim) arising out of any act or omission to act in connection with
the Plan unless arising out of such person's own fraud or bad faith. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be
entitled under the Company's Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any power the Company may have to indemnify them or hold them harmless. 

        4.    Stock Subject To The Plan.    

        (a)    Basic Limitation.    The total number of Options, Stock Awards, and SARs that may be awarded under the Plan may
not exceed 3,500,000, subject to the adjustments provided for in Section 11 of the Plan. 

        (b)    Additional Shares.    In the event that any outstanding Award expires or is canceled or otherwise terminated,
the Shares that pertain to the unexercised Award shall again be available for the purposes of the Plan. In the event that Shares issued under the Plan are reacquired by the Company at their original
purchase price, such Shares shall again be available for the purposes of the Plan, except that the aggregate number of Shares which may be issued upon the exercise of Incentive Stock Options shall in
no event exceed 3,500,000 Shares, subject to the adjustments provided for in Section 11 of the Plan. 

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        5.    Eligibility.    The persons eligible to participate in the Plan shall be limited to Employees,
Non-Employee Directors, and Consultants who have the potential to impact the long-term success of the Company and/or its Affiliates and who have been selected by the
Administrator to participate in the Plan. 

        6.    Option Terms.    Each Option shall be evidenced by an Option Agreement, in the form approved by the
Administrator and may contain such provisions as the Administrator deems appropriate; provided, however, that each Option Agreement shall comply with the terms specified below. No person may be
granted (in any calendar year) Options to purchase more than 250,000 Shares, subject to the adjustments provided for in Section 11 of the Plan. Each Option Agreement evidencing an Incentive
Stock Option shall, in addition, be subject to Section 7 below. 

        (a)    Exercise Price.    

          (i)  The
Exercise Price of an Option shall be determined by the Administrator but shall not be less than 100% of the Fair Market Value of a Share on the Date of Grant of
such Option. 

         (ii)  Notwithstanding
the foregoing, where the outstanding shares of stock of another corporation are changed into or exchanged for shares of Common Stock without monetary
consideration to that other corporation, then, subject to the approval of the Board, Options may be granted in exchange for unexercised, unexpired stock options of the other corporation and the
exercise price of the Optioned Shares subject to each Option so granted may be fixed at a price less than 100% of the Fair Market Value of the Common Stock at the time such Option is granted if said
exercise price has been computed to be not less than the exercise price set forth in the stock option of the other corporation, with appropriate adjustment to reflect the exchange ratio of the shares
of stock of the other corporation into the shares of Common Stock of the Company. 

        (iii)  The
consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Administrator and may
consist entirely of (A) cash, (B) check, (C) Mature Shares, (D) Qualified Note, or (e) any combination of the foregoing methods of payment. The Administrator may
also permit Optionees, either on a selective or aggregate basis, to simultaneously exercise Options and sell the shares of Common Stock thereby acquired, pursuant to a brokerage or similar
arrangement, approved in advance by the Administrator, and use the proceeds from such sale as payment of part or all of the exercise price of such shares. Notwithstanding the foregoing, a method of
payment may not be used if it causes the Company to: (i) recognize compensation expense for financial reporting purposes; (ii) violate Section 402 of the Sarbanes-Oxley Act of
2002 or any regulations adopted pursuant thereto; or (iii) violate Regulation O, promulgated by the Board of Governors of the Federal Reserve System, as determined by the Administrator
in its sole discretion. 

        (b)    Vesting.    Any Option granted hereunder shall be exercisable and shall vest at such times and under such
conditions as determined by the Administrator and set forth in the Option Agreement, but in the case of an Optionee who is not an officer of the Company, a Non-Employee Director, or a
Consultant, an Option or Shares purchased thereunder shall vest at a rate of at least 20% per year. An Option may not be exercised for a fraction of a Share. Notwithstanding anything herein to the
contrary, upon the occurrence of a Vesting Event, all Options that are outstanding on the date of the Vesting Event shall become exercisable on such date (whether or not previously vested). 

        (c)    Term of Options.    No Option shall have a term in excess of 10 years measured from the Date of Grant of
such Option. 

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        (d)    Procedure for Exercise.    An Option shall be deemed to be exercised when written notice of such exercise has
been given to the Administrator in accordance with the terms of the Option Agreement by the person entitled to exercise the Option and full payment of the applicable Exercise Price for the Share being
exercised has been received by the Administrator. Full payment may, as authorized by the Administrator, consist of any consideration and method of payment allowable under Subsection (a)(iii)
above. In the event of a cashless exercise, the broker shall not be deemed to be an agent of the Administrator. 

        (e)    Effect of Termination of Service.    

        (i)    Termination of Service.    Upon termination of an Optionee's Service, other than due to death, Disability, or
Cause, the Optionee may exercise his/her Option, but only on or prior to the date that is
three months following the Optionee's Termination Date, and only to the extent that the Optionee was entitled to exercise such Option on the Termination Date (but in no event later than the expiration
of the term of such Option, as set forth in the Notice of Stock Option Grant to the Option Agreement). If, on the Termination Date, the Optionee is not entitled to exercise the Optionee's entire
Option, the Shares covered by the unexercisable portion of the Option shall revert to the Plan. If, after termination of Service, the Optionee does not exercise his/her Option within the time
specified herein, the Option shall terminate, and the Optioned Stock shall revert to the Plan. 

        (ii)    Disability of Optionee.    In the event of termination of an Optionee's Service due to his/her Disability, the
Optionee may exercise his/her Option, but only on or prior to the date that is twelve months following the Termination Date, and only to the extent that the Optionee was entitled to exercise such
Option on the Termination Date (but in no event later than the expiration date of the term of his/her Option, as set forth in the Notice of Stock Option Grant to the Option Agreement). To the extent
the Optionee is not entitled to exercise the Option on the Termination Date, or if the Optionee does not exercise the Option to the extent so entitled within the time specified herein, the Option
shall terminate, and the Optioned Stock shall revert to the Plan. 

        (iii)    Death of Optionee.    In the event that an Optionee should die while in Service, the Optionee's Option may be
exercised by the Optionee's estate or by a person who has acquired the right to exercise the Option by bequest or inheritance, but only on or prior to the date that is twelve months following the date
of death, and only to the extent that the Optionee was entitled to exercise the Option at the date of death (but in no event later than the expiration date of the term of his/her Option, as set forth
in the Notice of Stock Option Grant to the Option Agreement). If, at the time of death, the Optionee was not entitled to exercise his/her entire Option, the Shares covered by the unexercisable portion
of the Option shall immediately revert to the Plan. If after death, the Optionee's estate or a person who acquires the right to exercise the Option by bequest or inheritance does not exercise the
Option within the time specified herein, the Option shall terminate, and the Optioned Stock shall revert to the Plan. 

        (iv)    Cause.    In the event of termination of an Optionee's Service due to Cause, the Optionee's Options shall
terminate on the Termination Date. 

        (v)   To
the extend that the Company does not violate Section 409A of the Code or any regulations adopted, Section 402 of the Sarbanes-Oxley Act of 2002 or any
regulations adopted pursuant thereto or Regulation O, promulgated by the Board of Governors of the Federal Reserve System (as determined by the Administrator in its sole discretion), the 

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Administrator
shall have complete discretion, exercisable either at the time an Option or SAR is granted or at any time while the Option or SAR remains outstanding, to: 

        (A)  extend
the period of time for which the Option or SAR is to remain exercisable following the Optionee's cessation of Service from the limited exercise period otherwise
in effect for that Option or SAR to such greater period of time as the Administrator shall deem appropriate, but in no event beyond the expiration of the Option or SAR term; and/or 

        (B)  permit
the Option or SAR to be exercised, during the applicable post-Service exercise period, not only with respect to the number of vested Shares for which
such Option or SAR is exercisable at the time of the Optionee's cessation of Service but also with respect to one or more additional installments in which the Optionee would have vested had the
Optionee continued in Service. 

        (f)    Shareholder Rights.    Until the issuance (as evidenced by the appropriate entry on the books of the Company or
of a duly authorized transfer agent of the Company) of the stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect
to the Optioned Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such certificate promptly upon exercise of the Option. No adjustment will be made for
a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 11 below. 

        (g)    Non-transferability of Options.    Options may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of descent and distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. Notwithstanding
the immediately preceding sentence, the Administrator may permit an Optionee to transfer any Award which is not an Incentive Stock Option to one or more of the Optionee's immediate family members or
to trusts established in whole or in part for the benefit of the Optionee and/or one or more of such immediate family members. For purposes of the Plan, (i) the term  "immediate family" shall mean
the Optionee's spouse and issue (including adopted and step children) and (ii) the phrase "immediate family members
or to trusts established in whole or in part for the benefit of the Optionee and/or one or more of such immediate family members" shall be further limited, if necessary, so that neither the transfer
of an Award other than an Incentive Stock Option to such immediate family member or trust, nor the ability of a Optionee to make such a transfer shall have adverse consequences to the Company or the
Optionee by reason of Section 162(m) of the Code. 

        7.    Incentive Stock Options.    The terms specified below shall be applicable to all Incentive Stock Options, and
these terms shall, as to such Incentive Stock Options, supercede any conflicting terms in Section 6 above. Options which are specifically designated as Non-Statutory Stock Options
when issued under the Plan shall not be subject to the terms of this Section. 

        (a)    Eligibility.    Incentive Stock Options may only be granted to Employees. 

        (b)    Exercise Price.    The Exercise Price of an Incentive Stock Option shall not be less than 100% of the Fair
Market Value of a Share on the Date of Grant of such Option, except as otherwise provided for in Subsection (d) below. 

        (c)    Dollar Limitation.    In the case of an Incentive Stock Option, the aggregate Fair Market Value of the Optioned
Stock (determined as of the Date of Grant of each Option) with respect to Options granted to any Employee under the Plan (or any other option plan of the Company or any Affiliate) that may for the
first time become exercisable as Incentive Stock Options during any one calendar year shall not exceed the sum of $100,000. To the extent the Employee holds two or more such Options which become
exercisable for the first time in the same calendar year, the 

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foregoing
limitation on the exercisability of such Options as Incentive Stock Options shall be applied on the basis of the order in which such Options are granted. Any Options in excess of such
limitation shall automatically be treated as Non-Statutory Stock Options. 

        (d)    10% Shareholder.    If any Employee to whom an Incentive Stock Option is granted is a 10% Shareholder, then the
Exercise Price shall not be less than 110% of the Fair Market Value of a Share on the Date of Grant of such Option, and the Option term shall not exceed five years measured from the Date of Grant of
such Option. 

        (e)    Change in Status.    In the event of an Optionee's change of status from Employee to Consultant or to
Non-Employee Director, an Incentive Stock Option held by the Optionee shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a
Non-Statutory Stock Option three months and one day following such change of status. 

        (f)    Approved Leave of Absence.    If an Optionee is on an approved leave of absence, and the Optionee's
reemployment upon expiration of such leave is not guaranteed by statute or contract, including Company policies, then on the 91st day of such leave any Incentive Stock Option held by the
Optionee shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Non-Statutory Stock Option. 

        8.    Restricted Stock Award.    Each Restricted Stock Award shall be evidenced by a Stock Award Agreement, in the
form approved by the Administrator and may contain such provisions as the Administrator deems appropriate; provided, however, such Stock Award Agreement shall comply with the terms specified below. 

        (a)    Risk of Forfeiture.    

        (i)    General Rule.    Shares issued pursuant to a Restricted Stock Award shall initially be subject to a Risk of
Forfeiture. The Risk of Forfeiture shall be set forth in the Stock Award Agreement, and shall comply with the terms specified below. 

        (ii)    Lapse of Risk of Forfeiture.    The Risk of Forfeiture shall lapse as the Grantee vests in the Granted Stock.
The Grantee shall vest in the Granted Stock at such times and under such conditions as determined by the Administrator and set forth in the Stock Award Agreement. Notwithstanding the foregoing, upon
the occurrence of a Vesting Event, the Grantee shall become 100% vested in those shares of Granted Stock that are outstanding on the date of the Vesting Event. 

        (iii)    Forfeiture of Granted Stock.    Except as otherwise determined by the Administrator in its discretion, the
Granted Stock that is subject to a Risk of Forfeiture shall automatically be forfeited and immediately returned to the Company on the Grantee's Termination Date or the date on which the Administrator
determines that any other conditions to the vesting of the Restricted Stock were not satisfied during the designated period of time. 

        (b)    Rights as a Stockholder.    Upon vesting of a Restricted Stock Award, the Grantee shall have the rights of a
stockholder with respect to the voting of the vested shares of Granted Stock, subject to the conditions contained in the Stock Award Agreement. 

        (c)    Dividends.    The Stock Award Agreement may require or permit the immediate payment, waiver, deferral or
investment of dividends paid on the Granted Stock. 

        (d)    Non-transferability of Restricted Stock Award.    Except as otherwise provided for in
Section 12 of the Plan, Restricted Stock Awards may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent and
distribution and may be exercised, during the lifetime of the Grantee, only by the Grantee. Notwithstanding the immediately preceding sentence, the Administrator may permit a Grantee to 

9

 

transfer
any Award which is not an Incentive Stock Option to one or more of the Grantee's immediate family members or to trusts established in whole or in part for the benefit of the Grantee and/or
one or more of such immediate family members. For purposes of the Plan, (i) the term "immediate family" shall mean the Grantee's spouse and issue
(including adopted and step children) and (ii) the phrase "immediate family members or to trusts established in whole or in part for the benefit of the Grantee and/or one or more of such
immediate family members" shall be further limited, if necessary, so that neither the transfer of an Award other than an Incentive Stock Option to such immediate family member or trust, nor the
ability of a Grantee to make such a transfer shall have adverse consequences to the Company or the Grantee by reason of Section 162(m) of the Code. 

        9.    Performance Stock Award.    Each Performance Stock Award shall be evidenced by a Stock Award Agreement, in the
form approved by the Administrator, and may contain such provisions as the Administrator deems appropriate; provided, however, such Stock Award Agreement shall comply with the terms specified below. 

        (a)    Risk of Forfeiture.    

        (i)    General Rule.    Shares issued pursuant to a Performance Stock Award shall initially be subject to a Risk of
Forfeiture. The Risk of Forfeiture shall be set forth in the Stock Award Agreement, and shall comply with the terms specified below. 

        (ii)    Lapse of Risk of Forfeiture.    The Risk of Forfeiture shall lapse as the Grantee vests in the Granted Stock.
The Grantee shall vest in or accelerate vesting in the Granted Stock, in whole or in part, if certain goals established by the Administrator are achieved over a designated period of time, but not in
any event more than 10 years. At the discretion of the Administrator, the goals may be based upon the attainment of one or more of the following business criteria (determined either in absolute
terms or relative to the performance of one or more similarly situated companies or a published index covering the performance of a number of companies): net income; return on average assets ("ROA");
cash ROA; cash ROA; return on average equity ("ROE"); cash ROE; earnings per share ("EPS"); cash EPS; stock price; and efficiency ratio. Performance goals may be established on a
Company-wide basis or with respect to one or more business units or divisions. When establishing performance goals, the Administrator may exclude any or all "extraordinary items" as
determined under U.S. generally accepted accounting principles including, without limitation, the charges or costs associated with restructurings of the Company, discontinued operations, other unusual
or non-recurring items, and the cumulative effects of accounting changes. The Administrator may also adjust the performance goals for any performance cycle as it deems equitable in
recognition of unusual or non-recurring events affecting the Company, changes in applicable tax laws or accounting principles, or such other factors as the Administrator deems appropriate.
Notwithstanding the foregoing, upon the occurrence of a Vesting Event, the Grantee shall become 100% vested in those shares of Granted Stock that are outstanding on the date of the Vesting Event. 

        (iii)    Forfeiture of Granted Stock.    The Granted Stock that is subject to a Risk of Forfeiture shall automatically
be forfeited and immediately returned to the Company on the Grantee's Termination Date or the date on which the Administrator determines that any other conditions to the vesting of the Performance
Stock Award, including performance goals, were not satisfied during the designated period of time. 

        (b)    Rights as a Stockholder.    Upon vesting of a Performance Stock Award, the Grantee shall have the rights of a
stockholder with respect to the voting of the vested shares of Granted Stock, subject to the conditions contained in the Stock Award Agreement. 

10

 

        (c)    Dividends.    The Stock Award Agreement may require or permit the immediate payment, waiver, deferral or
investment of dividends paid on Granted Stock. 

        (d)    Non-transferability of Performance Stock Award.    Except as otherwise provided for in
Section 12 of the Plan, Performance Stock Awards may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent and
distribution and may be exercised, during the lifetime of the Grantee, only by the Grantee. Notwithstanding the immediately preceding sentence, the Administrator may permit a Grantee to transfer any
Award which is not an Incentive Stock Option to one or more of the Grantee's immediate family members or to trusts established in whole or in part for the benefit of the Grantee and/or one or more of
such immediate family members. For purposes of the Plan, (i) the term "immediate family" shall mean the Grantee's spouse and issue (including
adopted and step children) and (ii) the phrase "immediate family members or to trusts established in whole or in part for the benefit of the Grantee and/or one or more of such immediate family
members" shall be further limited, if necessary, so that neither the transfer of an Award other than an Incentive Stock Option to such immediate family member or trust, nor the ability of a Grantee to
make such a transfer shall have adverse consequences to the Company or the Grantee by reason of Section 162(m) of the Code. 

        10.    Stock Appreciation Rights.    Each SAR shall be evidenced by a SAR Agreement, in the form approved by the
Administrator and may contain such provisions as the Administrator deems appropriate; provided, however, that each SAR Agreement shall comply with the terms specified below. No person may be granted
(in any calendar year) SARs that pertain to more than 250,000 Shares, subject to the adjustments provided for in Section 11 of the Plan. 

11

 

 

        (a)    Exercise Price.    The Exercise Price of a SAR shall be determined by the Administrator but shall not be less
than 100% of the Fair Market Value of a Share on the Date of Grant of such SAR. 

        (b)    Vesting.    Any SAR granted hereunder shall be exercisable and shall vest at such times and under such
conditions as determined by the Administrator and set forth in the SAR Agreement. Notwithstanding anything herein to the contrary, upon the occurrence of a Vesting Event, all SARs that are outstanding
on the date of the Vesting Event shall become exercisable on such date (whether or not previously vested). 

        (c)    Term of SARs.    No SAR shall have a term in excess of 10 years measured from the Date of Grant of such
SAR. 

        (d)    Non-transferability of SARs.    SARs may not be sold, pledged, assigned, hypothecated, transferred,
or disposed of in any manner other than by will or by the laws of descent and distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. Notwithstanding the
immediately preceding sentence, the Administrator may permit an Optionee to transfer any Award which is not an Incentive Stock Option to one or more of the Optionee's immediate family members or to
trusts established in whole or in part for the benefit of the Optionee and/or one or more of such immediate family members. For purposes of the Plan, (i) the term  "immediate family" shall mean the
Optionee's spouse and issue (including adopted and step children) and (ii) the phrase "immediate family members
or to trusts established in whole or in part for the benefit of the Optionee and/or one or more of such immediate family members" shall be further limited, if necessary, so that neither the transfer
of an Award other than an Incentive Stock Option to such immediate family member or trust, nor the ability of a Optionee to make such a transfer shall have adverse consequences to the Company or the
Optionee by reason of Section 162(m) of the Code. 

        (e)    Procedure for Exercise.    A SAR shall be deemed to be exercised when written notice of such exercise has been
given to the Administrator in accordance with the terms of the SAR Agreement by the person
entitled to exercise the SAR. Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his or her death) shall receive an amount equal to the amount by which the
Fair Market Value (on the date of surrender) of a Share exceeds the Exercise Price of such SAR. The Company shall pay this amount in the form of: (i) Common Stock; (ii) cash; or
(iii) a combination of Common Stock and cash, as determined by the Administrator. 

        (f)    Effect of Termination of Service.    

        (i)    Termination of Service.    Upon termination of an Optionee's Service, other than due to death, Disability, or
Cause, the Optionee may exercise his/her SARs, but only on or prior to the date that is three months following the Optionee's Termination Date, and only to the extent that the Optionee was entitled to
exercise such SARs on the Termination Date (but in no event later than the expiration of the term of such SAR, as set forth in the Notice of Stock Appreciation Rights Grant to the SAR Agreement). If,
on the Termination Date, the Optionee is not entitled to exercise all of the Optionee's SARs, then the Shares that pertain to the unexercisable SARs shall revert to the Plan. If, after termination of
Service, the Optionee does not exercise his/her SARs within the time specified herein, the SARs shall terminate, and the Shares that pertain to the SARs shall revert to the Plan. 

        (ii)    Disability of Optionee.    In the event of termination of an Optionee's Service due to his/her Disability, the
Optionee may exercise his/her SARs, but only on or prior to the date that is twelve months following the Termination Date, and only to the extent that the Optionee was entitled to exercise such SARs
on the Termination Date (but in no event later 

12

 

than
the expiration date of the term of his/her SAR, as set forth in the Notice of Stock Appreciation Rights Grant to the SAR Agreement). To the extent the Optionee is not entitled to exercise the
SARs on the Termination Date, or if the Optionee does not exercise the SARs to the extent so entitled within the time specified herein, the SARs shall terminate, and the Shares that pertain to the
SARs shall revert to the Plan. 

        (iii)    Death of Optionee.    In the event that an Optionee should die while in Service, the Optionee's SARs may be
exercised by the Optionee's estate or by a person who has acquired the right to exercise the SARs by bequest or inheritance, but only on or prior to the date that is twelve months following the date
of death, and only to the extent that the Optionee was entitled to exercise the SARs at the date of death (but in no event later than the expiration date of the term of his/her SAR, as set forth in
the Notice of Stock Appreciation Rights Grant to the SAR Agreement). If, at the time of death, the Optionee was not entitled to exercise all of his/her SARs, the Shares that pertain to the
unexercisable SARs shall immediately revert to the Plan. If after death, the Optionee's estate or a person who acquires the right to exercise the SARs by bequest or inheritance does not exercise the
SARs to the extent so entitled within the time specified herein, the SARs shall terminate, and the Shares that pertain to the SARs shall revert to the Plan. 

        (iv)    Cause.    In the event of termination of an Optionee's Service due to Cause, the Optionee's SARs shall
terminate on the Termination Date. 

        11.    Adjustments Upon Changes in Capitalization.    

        (a)    Changes in Capitalization.    The limitations set forth in Sections 4, 6, and 10 of the Plan, the number
of Shares that pertain to each outstanding Award, and the Exercise Price of each Option and SAR shall be proportionately adjusted for any increase or decrease in the number of issued and outstanding
Shares resulting from a stock split, reverse stock split, stock dividend, recapitalization, combination or reclassification of the Common Stock, or any other increase or decrease in the number of
issued and outstanding Shares, effected without the receipt of consideration by the Company. Such adjustment shall be made by the Administrator, to the extent possible, so that the adjustment shall
not result in an accounting consequence under APB 25 and FASB Interpretation No. 44, as amended, and so that the adjustment shall not result in any taxes to the Company or the
Participant. The Administrator's determination with respect to the adjustment shall be final, binding, and conclusive. 

        (b)    Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, the
Administrator shall notify each Participant as soon as practicable prior to the effective date of such proposed transaction. In such event, the Administrator, in its discretion, may provide for a
Participant to fully vest in his/her Option and SAR, and the Right of Forfeiture to lapse on his/her Granted Stock. To the extent it has not been previously exercised, an Award will terminate upon
termination or liquidation of the Company. 

        12.    Deferral of Stock Awards and SARs.    The Administrator, in its sole discretion, may permit a Grantee to defer
his/her Stock Awards, and an Optionee to defer his/her SARs pursuant to the terms and conditions provided for in the PacWest Bancorp Directors Deferred Compensation Plan. Notwithstanding the
foregoing, to the extent an Award is determined to constitute a "deferral of compensation" within the meaning of Section 409A, any such subsequent deferral shall be made in accordance with the
terms of Code Section 409A(a)(4) and the regulations promulgated thereunder. 

        13.    Cancellation and Regrant of Awards.    The Administrator shall have the authority to effect, at any time and
from time to time, with the consent of the affected Optionee, the cancellation of any or all outstanding Options or SARs and to grant in substitution new Options or SARs covering the same or a
different number of Shares but with an Exercise Price per Share based on the Fair Market Value 

13

 

per
Share on the new Date of Grant of the Option or SAR. The Administrator shall also have the authority to effect, at any time and from time to time, with the consent of the affected Grantee, the
cancellation of any or all outstanding Stock Awards and to grant in substitution new Stock Awards covering the same or a different number of Shares. Notwithstanding the foregoing or anything in this
Plan to the contrary, the Administrator may not take any action which would constitute a "repricing" of Options or other Awards without recommending that such repricing be subject to the approval of
the Company's shareholders prior to effectiveness. For purposes of Section 4 hereof, Shares underlying any Award cancelled by the Company in such exchange shall be available for issuance under
the Plan; furthermore, except with respect to a Participant subject to Section 162(m) of the Code, a grant of any Award to a Participant pursuant to such exchange shall be disregarded for
purposes of determining whether such Participant has exceeded any limitations hereunder limiting the amount of any type of Award or aggregate amount of Awards that may be granted to a Participant
(except to the extent the number of Shares underlying such Awards exceeds the number of Shares underlying the Participant's cancelled Awards). 

        14.    Share Escrow/Legends.    Unvested Shares issued under the Plan may, in the Administrator's discretion, be held
in escrow by the Company until the Participant's interest in such Shares vests or may be issued directly to the Participant with restrictive legends on the certificates evidencing those unvested
Shares. 

        15.    Tax Withholding.    

        (a)   For
corporate purposes, the Company's obligation to deliver Shares upon the exercise of Options, deliver Shares or cash upon the exercise of SARs, or deliver Shares or
remove any restrictive legends upon vesting of such Shares under the Plan shall be subject to the satisfaction of all applicable federal, state and local income and employment tax withholding
requirements. 

        (b)   To
the extent permitted under Section 402 of the Sarbanes-Oxley Act of 2002 and the regulations adopted pursuant thereto, the Administrator may, in its
discretion, provide any or all holders of Non-Statutory Stock Options or SARS, or unvested Shares under the Plan with the right to use previously vested Shares in satisfaction of all or
part of the Taxes incurred by such holders in connection with the exercise of their Non-Statutory Stock Options or SARs, or the vesting of their Shares; provided, however, that this form
of payment shall be limited to the withholding amount calculated using the minimum statutory rates. Such right may be provided to any such holder in either or both of the following formats: 

        (i)    Stock Withholding:    The election to have the Company withhold, from the Shares otherwise issuable upon the
exercise of such Non-Statutory Stock Option or SAR, or the vesting of such Shares, a portion of those Shares with an aggregate Fair Market Value equal to the Taxes calculated using the
minimum statutory withholding rates interpreted in accordance with APB 25 and FASB Interpretation No. 44. 

        (ii)    Stock Delivery:    The election to deliver to the Company, at the time the Non-Statutory Stock
Option or SAR is exercised or the Shares vest, one or more Shares previously acquired by such holder (other than in connection with the Option or SAR exercise, or Share vesting triggering the Taxes)
with an aggregate Fair Market Value equal to the Taxes calculated using the minimum statutory rates interpreted in accordance with APB 25 and FASB Interpretation No. 44. 

        16.    Effective Date and Term of the Plan.    The Plan, as an amendment and restatement of the 2003 Plan, was
approved by the Board on February 8, 2006 and became effective upon approval by the Company's shareholders on April 19, 2006. It was subsequently amended and restated hereby on
May 14, 2008. Unless sooner terminated by the Administrator, the Plan shall continue until April 17, 2010. When the Plan terminates, no Awards shall be granted under the Plan thereafter.
The 

14

 

termination
of the Plan shall not affect any Shares previously issued or any Award previously granted under the Plan. 

        17.    Time of Granting Awards.    The Date of Grant of an Award shall, for all purposes, be the date on which the
Administrator makes the determination to grant such Award, or such other date as determined by the Administrator; provided, however, that any Award granted prior to the date on which the Plan is
approved by the Company's shareholders shall be subject to the shareholder's approval of the Plan. Notice of the determination shall be given to each Service Provider to whom an Award is so granted
within a reasonable period of time after the date of such grant. 

        18.    Amendment and Termination of the Plan.    

        (a)    Amendment and Termination.    The Board may at any time amend, alter, suspend, or discontinue the Plan, but no
amendment, alteration, suspension, or discontinuation shall be made which would impair the rights of any Participant under any grant theretofore made without his/her consent. In addition, to the
extent necessary and desirable to comply with Section 422 of the Code (or any other applicable law or regulation, including the requirements of any stock exchange or national market system upon
which the Common Stock is then listed), the Company shall obtain shareholder approval of any Plan amendment in such a manner and to such a degree as required. 

        (b)    Effect of Amendment and Termination.    Any such amendment or termination of the Plan shall not affect Awards
already granted, and such Awards shall remain in full force and effect as if this Plan had not been amended or terminated, unless mutually agreed otherwise between the Participant and the Board, which
agreement must be in writing and signed by the Participant and the Company. 

        19.    Regulatory Approvals.    

        (a)   The
implementation of the Plan, the granting of any Awards and the issuance of any Shares upon the exercise of any granted Awards shall be subject to the Company's
procurement of all approvals and
permits required by regulatory authorities having jurisdiction over the Plan, the Awards granted under it, and the Shares issued pursuant to it. 

        (b)   No
Shares or other assets shall be issued or delivered under the Plan unless and until there shall have been compliance with all applicable requirements of federal and
state securities laws, including the filing and effectiveness of the Form S-8 registration statement (if required) for the Shares issuable under the Plan, and all applicable listing
requirements of any stock exchange (or the Nasdaq National Market, if applicable) on which the Common Stock is then listed for trading (if any). 

        20.    No Employment/Service Rights.    Nothing in the Plan shall confer upon the Participant any right to continue in
Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Affiliate employing or retaining such person) or of the Participant,
which rights are hereby expressly reserved by each, to terminate such person's Service at any time for any reason, with or without cause. 

        21.    Governing Law.    This Plan shall be governed by California law, applied without regard to conflict of laws
principles. 

        22.    Code Section 409A.    Awards under this Plan are intended to be exempt from Section 409A of the
Code. Notwithstanding foregoing, to the extent (x) an Award constitutes a "deferral of compensation" within the meaning of Section 409A of the Code, (y) the Grantee or Optionee is
a "specified employee" as determined pursuant to Section 409A of the Code as of the date of his or her "separation from service" (within the meaning of Treasury
Regulation 1.409A-1(h)), and (z) any such Award cannot be settled or paid without subjecting the Grantee or Optionee to "additional tax", interest or penalties under
Section 409A of the Code, then any such settlement or payment that is 

15

 

payable
during the first six months following the Grantee's or Optionee's "separation from service" shall be paid or provided to the Grantee or Optionee on the first business day of the seventh
calendar month following the month in which his or her "separation from service" occurs or, if earlier, at his or her death. In addition, any settlement or payment of an Award that is subject to
Section 409A of the Code upon a termination of Service that represents a "deferral of compensation" within the meaning of Section 409A of the Code shall only be settled or paid upon a
"separation from service". 

16

QuickLinks

Exhibit 10.1

PACWEST BANCORP 2003 STOCK INCENTIVE PLAN as amended and restated, effective December 15, 2008QuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

  Exhibit 10.2    
    

 
    PACWEST BANCORP
  EXECUTIVE SEVERANCE PAY PLAN
  (as amended and restated effective December 15, 2008)    
    

        The purpose of the PacWest Bancorp Executive Severance Pay Plan, as amended and restated effective December 15, 2008 (the
"Plan") is to secure the continued services of certain senior executives of the Company and to ensure their continued dedication to their duties in the event of any threat or occurrence of a Change in
Control (as defined below). 

 
 

  ARTICLE I
  DEFINITIONS    
    

        1.1    Definitions    

        Whenever
used in this Plan, the following capitalized terms shall have the meanings set forth in this Section 1.1, certain other capitalized terms being defined elsewhere in this
Plan: 

        (a)   "Board"
means the Board of Directors of the Company. 

        (b)   "Change
in Control" shall mean the occurrence of any of the following: 

          (i)  Any
"Person" or "Group" (as such terms are defined in Section 13(d) of the Securities Exchange Act of 1934 (the "Exchange Act") and the rules and regulations
promulgated thereunder) is or becomes the "Beneficial Owner" (within the meaning of Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company, or of
any entity resulting from a merger or consolidation involving the Company, representing more than fifty percent (50%) of the combined voting power of the then outstanding securities of the Company or
such entity. 

         (ii)  The
individuals who, as of the date hereof, are members of the Board (the "Existing Directors"), cease, for any reason, to constitute more than fifty percent (50%) of
the number of authorized directors of the Company as determined in the manner prescribed in the Company's Articles of Incorporation and Bylaws;  provided, however, that if the election, or nomination for election, by the Company's stockholders of
any new director was approved by a vote of at least fifty percent (50%) of the Existing Directors, such a new director shall be considered an Existing Director;  provided, further, however, that no individual shall be
considered an Existing Director if such individual initially assumed office as a result of either an actual or threatened election contest ("Election Contest") or other actual or threatened
solicitation of proxies by or on behalf of anyone other than the Board (a "Proxy Contest"), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest. 

        (iii)  The
consummation of (x) a merger, consolidation or reorganization to which the Company is a party, whether or not the Company is the person surviving or
resulting therefrom, or (y) a sale, assignment, lease, conveyance or other disposition of all or substantially all of the assets of the Company, in one transaction or a series of related
transactions, to any Person other than the Company, where any such transaction or series of related transactions as is referred to in clause (x) or clause (y) above in this
subparagraph (iii) (a 'Transaction") does not otherwise result in a "Change in Control" pursuant to subparagraph (i) of this definition of "Change in Control";  provided, however, that no such Transaction shall constitute a "Change in Control" under this
subparagraph (iii) if the persons who were the Shareholders of the Company immediately before the consummation of such Transaction are the Beneficial Owners, immediately following the
consummation of such Transaction, of fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Person surviving or resulting from any merger,
consolidation or reorganization referred to in clause (x) above in this subparagraph (iii) or the 

 

Person
to whom the assets of the Company are sold, assigned, leased, conveyed or disposed of in any transaction or series of related transactions referred in clause (y) above in this
subparagraph (iii). 

        (c)   "Code"
means the Internal Revenue Code of 1986, as amended. 

        (d)   "Company"
means PacWest Bancorp, a Delaware corporation, and any successor or assignee as provided in Article V. 

        (e)   "Compensation"
means your highest annual compensation for any calendar year in the three calendar years ending with the calendar year which includes the date of your
termination of employment with the Company and its Subsidiaries, with your compensation for any such calendar year in which you do not complete twelve (12) months or service being annualized on
the basis of a twelve (12) month year. For purposes of determining your "Compensation", your annual compensation for any calendar year or portion thereof shall be limited to your base salary,
your automobile and other expense allowances (for those Executives who receive a company automobile in lieu of an automobile allowance, they shall be credited with an additional $1000.00 per month in
Compensation in lieu of an automobile allowance), and your bonus attributable to such calendar year regardless of when paid (or, if you did not receive a bonus for a calendar year, your target bonus
for such year), before reductions for any amounts excludable from your gross income for federal income tax purposes pursuant to Section 125 or Section 401(k) of the Code or under any
nonqualified deferred compensation plan. Notwithstanding anything herein to the contrary, "Compensation" shall not include your income from the grant or
vesting of restricted stock, or from the grant, vesting, or exercise of stock options. 

        (f)    "Disability"
means a physical or mental infirmity which substantially impairs your ability to perform your material duties for a period of at least one hundred eighty
(180) days in any two hundred seventy (270)) day period, and, as a result of such Disability, you have not returned to your full-time regular employment prior to termination. 

        (g)   "Employee
Grade" means the grade within the compensation system to which you are assigned by the Company. 

        (h)   "Executive"
means a regular full-time salaried employee of the Company or its Subsidiaries in Employee Grades 1, 2, 3, A or B, who does not have an
individual agreement with the Company or its Subsidiaries regarding Change in Control severance payments. 

        (i)    "Good
Reason" means, without your express written consent, any of the following events, provided that you give the Company or its Subsidiary at least thirty
(30) days prior written notice of your termination with the Company or its Subsidiary: 

          (i)  a
reduction by the Employer in your annual base salary as in effect immediately before such reduction; or 

         (ii)  (A)
any change in your duties and responsibilities that is inconsistent in any adverse respect with your position(s), duties or responsibilities as in effect
immediately before the Change in Control, or an adverse change, after the occurrence of a Change in Control, in your place in the Company's organization chart or in the seniority of the individual to
whom you report; provided, however, that Good Reason shall not be deemed to occur upon a change in
duties or responsibilities (other than reporting responsibilities) that is solely and directly a result of the Company no longer being a publicly traded entity and does not involve any other event set
forth in this paragraph (i), or (B) a material and adverse change in your titles or offices (including, if applicable, membership on the Board) with the Company as in effect immediately
prior to such Change in Control; or 

2

 

        (iii)  a
material reduction in the your annual target bonus opportunity (if any) (for this purpose, a reduction for any year of over ten percent (10%) of your annual target
bonus opportunity (if any) measured by the preceding year shall be considered "material"); or 

        (iv)  the
failure of the Company or its Subsidiaries to continue in effect any employee benefit plan, compensation plan, welfare benefit plan or material fringe benefit plan
in which you or your dependents are participating immediately prior to such Change in Control or the taking of any action by the Company which would adversely affect your or your dependents'
participation in or reduce your or your dependents' benefits under any such plan, unless you and your dependents are permitted to participate in other plans providing substantially equivalent benefits
in the aggregate (at substantially equivalent cost with respect to welfare benefit plans); or 

         (v)  the
failure of the Company or its Subsidiaries to (A) provide and credit you with the number of accrued annual leave days to which you are entitled in accordance
with the Company's normal annual leave policy as in effect immediately before the Change in Control or (B) provide you with paid annual leave in accordance with the most favorable annual leave
policies of the Company or any of its Subsidiaries as in effect for you immediately prior to such Change in Control; or 

        (vi)  the
Employer's requiring you to be based more than twenty five (25) miles from the location of your place of employment immediately before the Change in Control,
except for normal business travel in connection with your duties with the Company or its Subsidiaries; or 

       (vii)  the
failure of the Company to obtain the assumption agreement from any successor as contemplated in Article V hereof. 

        An
isolated, insubstantial and inadvertent action taken in good faith and which is remedied by the Company within ten (10) days after receipt of notice thereof given by you
shall not constitute Good Reason. Your right to terminate employment for Good Reason shall not be affected by incapacities due to mental or physical illness and your continued employment shall not
constitute consent to, or a waiver of rights with respect to, any event or condition constituting Good Reason. You must notify the Company of any event constituting Good Reason within ninety
(90) days following your knowledge of its existence or such event shall not constitute Good Reason under this Plan. 

        (k)   "Just
Cause" means: 

          (i)  the
willful and continued failure by you to perform substantially your duties with the Company and its Subsidiaries (other than any such failure resulting from your
incapacity due to physical or mental illness or any such failure subsequent to the delivery to you of a notice of the Company's intent to terminate your employment without Just Cause or subsequent to
your delivery to the Company of a notice of your intent to terminate employment for Good Reason), and such willful and continued failure continues after a demand for substantial performance is
delivered to you by the Company or its Subsidiaries which specifically identifies the manner in which you have not substantially performed your duties; 

         (ii)  the
willful engaging by you in illegal conduct or gross misconduct which is materially and demonstrably injurious to the business or reputation of the Company or its
Subsidiaries. 

        For
purposes of determining whether "Just Cause" exists, no act or failure to act on your part shall be considered "willful" unless done, or omitted to be done, by you in bad faith and
without reasonable belief that the action or omission was in, or not opposed to, the best interests of the Company and its Subsidiaries. Any act, or failure to act, based upon authority given pursuant
to a resolution duly adopted by the Board, based upon the advice of counsel for the Company or upon 

3

 

the
instructions to you by a more senior officer of the Company shall be conclusively presumed to be done, or omitted to be done, by you in good faith and in the best interests of the Company. Just
Cause
shall not exist unless and until the Company has delivered to you a copy of a resolution duly adopted by two-thirds (2/3) of the entire Board (excluding you if you are a Board member) at a
meeting of the Board called and held for such purpose (after reasonable notice to you and an opportunity for you, together with counsel, to be heard before the Board), finding that in the good faith
opinion of the Board an event set forth in clauses (i) or (ii) has occurred and specifying the particulars thereof in detail. The Company must notify you of any event constituting Just
Cause within ninety (90) days following the Company's knowledge of its existence or such event shall not constitute Just Cause under this Plan. 

        (l)    "Multiplier"
for each Employee Grade shall be the number set forth opposite such Employee grade below: 

					
	Employee Grade

 
	 	Multiplier 	 
	 Grade One
	 	 	3	 
	 Grade Two
	 	 	2	 
	 Grade Three
	 	 	2	 
	 Grade A
	 	 	2	 
	 Grade B
	 	 	1	 

        (m)  "Person"
shall have the meaning set forth in the definition of "Change in Control". 

        (n)   "Pro
Rata Bonus" means an amount equal to the product of (i) your target bonus for the calendar year which includes the date of your termination of employment
with the Company and its Subsidiaries and (ii) a fraction, the numerator of which is the number of days elapsed from the beginning of such calendar year through the date of your termination of
employment and the denominator of which is 365. 

        (o)   "Release"
means the Separation and General Release Agreement in the form attached hereto as Exhibit "A". 

        (p)   "Severance
Payment" means the payment of severance compensation as provided in Article III. 

        (q)   "Severance
Period" means the number of whole months equal to the product of 12 multiplied by the Multiplier for your Employee Grade, beginning on the date of your
termination of employment with the Company and its Subsidiaries. 

        (r)   "Subsidiary"
means any corporation or other Person, a majority of the voting power, equity securities or equity interest of which is owned directly or indirectly by the
Company. 

 
 

  ARTICLE II
  INDEMNIFICATION AND GROSS-UP FOR EXCISE TAXES    
    

        2.1    Indemnification and Gross-Up    

        The
Company hereby indemnifies you and holds you harmless from and against any and all liabilities, costs and expenses (including, without limitation, attorney's fees and costs, interest
and penalties) you may incur as a result of the excise tax imposed by Section 4999 of the Code or any similar provision of state or local income tax law (the "Excise Tax"), to the end that you
shall be placed in the same after-tax position with respect to the Severance Payment under this Plan and all other payments from the Company to you in the nature of compensation (including
without limitation, acceleration of equity awards and payouts under any deferred compensation plans triggered by the Change in Control) as you would have been in if the Excise Tax had never been
imposed. In 

4

 

furtherance
of such indemnification, the Company shall pay to you a payment (the "Gross-Up Payment") in an amount such that, after payment by you of all taxes, including income taxes and
Excise Tax imposed on the Gross-Up Payment and any interest or penalties (other than interest and penalties imposed by reason of your failure to file timely tax returns or to pay taxes
shown due on such returns and any tax liability, including interest and penalties, unrelated to the Excise Tax or the Gross-Up Payment), you shall be placed in the same
after-tax position with respect to the Severance Payment under this Plan and all other payments from the Company to you in the nature of compensation (including without limitation,
acceleration of equity awards and payouts under any deferred compensations plans triggered by the Change in Control) as you would have been in if the Excise Tax had never been imposed. At such time or
times necessary to carry out the purposes of this Article II in view of the withholding requirements of Section 4999 (c) (1) of the Code, the Company shall pay to you one or more
Gross-Up Payments for the Severance Payment and any other payments in the nature of compensation (including without limitation, acceleration of equity awards) which the Company determines
are "excess parachute payments" under Section 280G(b) (1) of the Code ("Excess Parachute Payments"). If, through a federal, state or local taxing authority (a "Taxing Authority"), or a
judgment of any court, you become liable for an amount of Excise Tax not covered by the Gross-Up Payment payable pursuant to the preceding sentence, the Company shall pay you an additional
Gross-Up Payment (including income taxes and Excise Tax imposed on such additional Gross-Up Payment and any interest or penalties (other than interest and penalties imposed by
reason of your failure to file timely tax returns or to pay taxes shown due on such returns and any tax liability, including interest and penalties, unrelated to the Excise Tax or the additional
Gross-Up Payment)) to make you whole for such additional Excise Tax; provided, however,
that, pursuant to Section 2.3, the Company shall have the right to require you to protest, contest, or appeal any such determination or judgment. For purposes of this Article II, any
amount which the Company is required to withhold under Sections 3402 or 4999 of the Code or under
any other provision of law shall be deemed to have been paid for you. Notwithstanding anything herein to the contrary, each Gross-Up Payment shall be paid to you within 60 days
after the date you remit the Excise Tax to the Internal Revenue Service (with the actual payment date during such 60-day period to be determined by the Company in its discretion). 

        2.2    Reporting    

        The
Company shall provide you with a written statement showing the computation of such Gross-Up Payment and the Excess Parachute Payments and Excise Tax to which it relates,
and setting forth the determination of the amount of gross income you are required to recognize as a result of such payments and your liability for the Excise Tax. All computations and determinations
required to be made under this Article II, including whether and when a Gross-Up Payment is required, the amount of such Gross-Up Payment and the assumptions to be
utilized in arriving at such computations and determinations, shall be made by the public accounting firm that is retained by the Company as of the date immediately prior to the Change in Control (the
"Accounting Firm") which shall provide detailed supporting calculations both to the Company and you within fifteen (15) business days of the receipt of notice from the Company or you that there
has been a Payment, or such earlier time as is requested by the Company (the "Determination"). For purposes of the Determination, you shall be deemed to (i) pay federal income taxes at the
highest marginal rates of federal income taxation for the calendar year in which the Gross-Up Payment is to be made and (ii) pay applicable state and local income taxes at the
highest marginal rate of taxation for the calendar year in which the Gross-Up Payment is to be made, net of the maximum reduction in federal income taxes which could be obtained from
deduction of such state and local taxes. 

        You
shall cause your federal, state and local income tax returns for the period in which you receive such Gross-Up Payment to be prepared and filed in accordance with such
statement, and, upon such fling, you shall certify in writing to the Company that such returns have been so prepared and filed. At 

5

 

your
request, the Company shall furnish to you, at no cost to you, assistance in preparing your federal, state and local income tax returns for the period in which you receive such
Gross-Up Payment in accordance with such statement. Notwithstanding the provisions of Section 2.1, the Company shall not be obligated to indemnify you from and against any tax
liability, cost or expenses (including, without limitation, any liability for the Excise Tax or attorney's fees or costs) to the extent such tax liability, cost or expense is attributable to your
failure to comply with the provisions of this Section 2.2. 

        2.3    Controversies    

        If
any controversy arises between you and a Taxing Authority with respect to the treatment on any return of the Gross-Up Amount, or of any payment you receive from the
Company as an excess Parachute Payment, or with respect to Excess Parachute Payment, including, without limitation, any audit, protest to an appeals authority of a Taxing Authority or litigation (a
"Controversy"), the Company shall have the right to participate with you in the handling of such Controversy. The Company shall have the right, solely with respect to a Controversy, to direct you to
protest or contest any proposed adjustment or deficiency, initiate an appeals procedure within any Taxing Authority, commence any judicial proceeding, make any settlement agreement, or file a
claim for refund of tax, and you shall not take any of such steps without the prior written approval of the Company, which the Company shall not unreasonably withhold. You shall be represented in any
Controversy by attorneys, accountants, and other advisors selected by the Company, and the Company shall pay the fees, costs and expenses of such attorneys, accountants, or advisors, and any tax
liability you may incur as a result of such payment. You shall promptly notify the Company of any communication with a Taxing Authority, and you shall promptly furnish to the Company copies of any
written correspondence, notices or documents received from a Taxing Authority relating to a Controversy. You shall cooperate fully with the Company in the handling of any Controversy;  provided,
however, that you shall not be obligated to furnish to the Company copies of any portion of
your tax returns which do not bear upon, and are not affected by, the Controversy. 

        2.4    Underpayments/Overpayments    

        As
a result of the uncertainty in the application of Section 4999 of the Code at the time of a Determination, it is possible that Gross-Up Payments which should have
been made by the Company may not have been made (an "Underpayment") or Gross-Up Payments are made by the Company which should not have been made (an "Overpayment"), consistent with the
calculations required to be made hereunder. In the event that you are thereafter required to make payment of any Excise Tax or additional Excise Tax, the Accounting Firm shall determine the amount of
the Underpayment that has occurred and any such Underpayment (together with interest at the rate provided in Section 1274(b)(2) of the Code) shall be promptly paid by the Company to or for your
benefit (but in no event more than 60 days after the date you remit the Excise Tax to the Internal Revenue Service (with the actual payment date during such 60-day period to be
determined by the Company in its discretion)). You shall pay over to the Company, within ten (10) days after your receipt thereof, any refund of an Overpayment that you receive from any Taxing
Authority (together with interest at the rate provided in Section 1274(b)(2) of the Code). For purposes of this Section 2.4, a reduction in your tax liability attributable to the
previous payment of the Gross-Up Amount or the Excise Tax shall be deemed to be an Overpayment. If you would have received an Overpayment of all or any portion of the Gross-Up
Payment or the Excise Tax, except that a Taxing Authority offset the amount of such Overpayment against other tax liabilities, interest, or penalties, you shall pay the amount of such offset over to
the Company (together with interest at the rate provided in Section 1274(b)(2) of the Code) within ten (10) days after receipt of notice from the Taxing Authority of such offset. 

6

 

 
 

  ARTICLE III
  SEVERANCE PAYMENTS    
    

        3.1    Right to Severance Payment; Release    

        Conditioned
on the execution and delivery by you (or your beneficiary or personal representative, if applicable) of the Release, you shall be entitled to receive a Severance Payment from
the Company in the amount provided in Section 3.2 and a Pro Rata Bonus payment described in Section 3.2 if (a) you are an Executive, and (b) within twenty four
(24) months after the occurrence of a Change of Control, your employment with the Company and its Subsidiaries terminates for any reason other than: 

        (a)   Death, 

        (b)   Disability,

        (c)   Termination
by the Company or its Subsidiaries for Just Cause, 

        (d)   Retirement
in accordance with the normal retirement policy of the Company, 

        (e)   Voluntary
termination by you for other than Good Reason, or 

        (f)    The
sale by the Company of the Subsidiary which employed you before such sale, if you have been offered employment with the purchaser of such Subsidiary on substantially
the same terms and conditions under which such you worked for the Subsidiary before the sale. 

If
your employment with the Company or its Subsidiaries is terminated before the occurrence of a Change in Control for any reason other than one of those enumerated immediately above, your employment
will be deemed to have been terminated by the Company without Just Cause on the day after the occurrence of the Change in Control if (i) within ninety (90) days before a Change in
Control actually occurs, your employment is terminated by the Company other than for Just Cause or by you for a reason that would have constituted Good Reason if the Change in Control had already
occurred or (ii) you reasonably demonstrate that the Company or its Subsidiaries involuntarily terminated your employment, or gave you Good Reason, at the request of a Person (other than the
Company or its Subsidiaries) who has indicated an intention or taken steps reasonably calculated to effect a Change in Control, or otherwise in connection with, or in anticipation of, a Change in
Control which actually occurs. The foregoing shall only apply to a Change in Control that qualifies as a "change in control event" within the meaning of Treas. Reg. 1.409A-3(i)(5)(i). 

        3.2    Amount of Severance Payment/Pro Rata Bonus Payment    

        If
you become entitled to a Severance Payment under this Plan, the amount of your Severance Payment shall equal the product of your Compensation multiplied by the Multiplier for your
Employee Grade. In addition, if you become entitled to a Severance Payment under this Plan, you shall also be entitled to receive an additional cash payment equal to your Pro Rata Bonus, but only to
the extent your annual bonus for the calendar year which includes the date of your termination of employment with the Company and its Subsidiaries has not already been paid. 

        3.3    No Mitigation    

        The
Company acknowledges and agrees that you shall be entitled to receive your entire Severance Payment regardless of any income, which you may receive from other sources following your
termination on or after the Effective Time. 

        3.4    Payment of Severance Payment    

        The
Severance Payment and the Pro Rata Bonus payment to which you are entitled shall be paid to you, in one lump sum cash payment, on the 55th day following your termination of
employment, provided you (or your beneficiary or personal representative, if applicable) have executed and delivered 

7

 

the
Release Agreement and any applicable revocation period has expired as of such payment date. If you should die before all amounts payable to you have been paid, such unpaid amounts shall be paid to
your beneficiary under this Plan or, if you have not designated such a beneficiary in writing to the Company, to the personal representative(s) of your estate. 

        3.5    Welfare Benefits    

        If
you are entitled to receive a Severance Payment under Section 3.1, you and your dependents will also be entitled to receive, during your Severance Period, the same level of
medical, dental, disability and life insurance benefits upon substantially the same terms and conditions (including employee contributions for such benefits) as existed immediately prior to your
termination date or, if more favorable to you, as such benefits and terms and conditions existed immediately prior to the Change in Control; provided, that, if you or dependents cannot continue to
participate in the Company plans providing such benefits, the Company shall otherwise provide such benefits on the same after-tax basis as if continued participation had been permitted.
Notwithstanding the foregoing, your right to medical, dental, disability or life insurance benefits shall be subject to cancellation by the Company if you or your dependents obtain alternative
coverage of a similar type during the Severance Period; provided, however, that if any such alternative group health coverage excludes any pre-existing condition that you or your
dependents may have when coverage under such group health plan would otherwise begin, coverage under this Section 3.5 shall continue (but not beyond the Severance Period) with respect to such
pre-existing condition until such exclusion under such other group health plan lapses or expires. You shall be obligated to notify the Company's Human Resources Department of any such
alternative coverage within thirty (30) days of its first becoming applicable to you or your dependents. In the event you are required to make an election under Sections 601 through 607
of ERISA (commonly known as COBRA) to qualify for continuing health benefits coverage described in this Section 3.5, the obligations of the Company and its Subsidiaries under this
Section 3.5 to continue your health benefits coverage shall be conditioned upon your timely making such an election. 

        3.6    Automobile    

        If
you become entitled to receive a Severance Payment under Section 3.1, and you then have the use of an automobile that is provided to you at the expense of the Company or any
Subsidiary, you shall have the right, for ninety (90) days following your termination of employment, (a) to continue your use of the automobile on the same basis on which you used it
immediately before your termination of employment, or (b) to purchase the automobile from the Company or Subsidiary for its lowest wholesale Kelley Blue Book value from a range determined based
on the actual mileage, condition and
features of the automobile you use, or, if the Company or Subsidiary has leased the automobile, to assume the lease, or (c) to take the actions described in clause (a) and (b) of
this sentence. 

        3.7    Outplacement Services    

        If
you become entitled to Severance Payment under Section 3.1, you will also become entitled to receive outplacement services in accordance with the Company's usual practice for
Executives as in effect immediately prior to the Change in Control or, if more favorable to you, in accordance with the Company's usual practice for Executives as in effect immediately prior to your
termination of employment. 

        3.8    Withholding of Taxes    

        The
Company may withhold from any amounts payable to you under this Plan all federal, state, city or other taxes required by applicable law to be withheld by the Company. 

8

 
 
 

  ARTICLE IV
  OTHER RIGHTS AND BENEFITS NOT AFFECTED    
    

        4.1    Other Benefits    

        Except
as set forth in Section 4.2, neither the provisions of this Plan nor the Severance Payment provided for hereunder shall reduce any amounts otherwise payable, or in any way
diminish your rights as an employee, whether existing now or hereafter, under any employee benefit, incentive, retirement, welfare, stock option, stock bonus or stock-based, or stock purchase plan,
program, policy or arrangement or any written employment agreement or other plan, program policy or arrangement not related to severance. 

        4.2    Other Severance Plans Superseded    

        As
of the date of adoption of this Plan, the terms and provisions of this Plan will supersede any and all other severance plans maintained by the Company or its Subsidiaries to the
extent they apply to Executives (except for any individual severance agreement between you and the Company and its Subsidiaries), and your participation in any other severance plan of the Company and
its Subsidiaries will be hereby terminated. To the extent you are a party to an individual severance agreement with the Company or any of its Subsidiaries, you shall be entitled to receive the
severance payments and benefits under such agreement, unless you elect to receive the payments and benefits under this Plan. 

        4.3    Employment Status    

        This
Plan does not constitute a contract of employment or impose on you any obligation to remain in the employ of the Company, nor does it impose on the Company or any of its
Subsidiaries any obligation to retain you in your present or any other position, nor does it change the status of your employment as an employee at will. Nothing in this Plan shall in any way affect
the right of the Company or any of its Subsidiaries in its absolute discretion to change or reduce your compensation at any time, or to change at any time one or more benefit plans, dental plans,
health care plans, savings plans, bonus plans, vacation pay plans, disability plans, and the like. 

 
 

  ARTICLE V
  SUCCESSOR TO THE COMPANY    
    

        The Company shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to
all or substantially all the business or assets of the Company, expressly and unconditionally to assume and agree to perform the Company's obligations under this Plan, in the same manner and to the
same extent that the Company would be required to perform if no succession or assignment had taken place. In such event, the term "Company", as used in this Plan, shall mean (from and after, but not
before, the occurrence of such event) the Company as herein before defined and any successor or assignee to the business or assets which by reason hereof becomes bound by the terms and provisions of
this Plan. 

 
 

  ARTICLE VI
  CONFIDENTIALITY    
    

        6.1    Nondisclosure of Confidential Material    

        In
the performance of your duties, you have previously had, and may in the future have, access to confidential records and information, including, but not limited to, development,
marketing, purchasing, organizational, strategic, financial, managerial, administrative, manufacturing, production, distribution and sales information, data, specifications and processes presently
owned or at any time hereafter developed by the Company or its agents or consultants or used presently or at any time hereafter in the course of its business, that are not otherwise part of the public
domain (collectively, the "Confidential 

9

 

Material").
All such Confidential Material is considered secret and has been and/or will be disclosed to you in confidence. By your acceptance of your Severance Payment under this Plan, you shall be
deemed to have acknowledged that the Confidential Material constitutes propriety information of the Company which draws independent economic value, actual or potential, from not being generally known
to the public or to other persons who could obtain economic value from its disclosure or use, and that the Company has taken efforts reasonable under the circumstances, of which this
Section 6.1 is an example, to maintain its secrecy. Except in the performance of your duties to the Company, you shall not, directly or indirectly for any reason whatsoever, disclose or use any
such Confidential Material that (i) has been publicly disclosed or was within your possession prior to its being furnished to you by the Company or becomes available to you on a nonconfidential
basis from a third party (in any of such cases, not due to a breach by you or your obligations to the Company or by breach of any other person of a confidential, fiduciary or confidential obligation,
the breach of which you know or reasonably should know), (ii) is required to be disclosed by you pursuant to applicable law, and you provide notice to the Company of such requirement as
promptly as possible, or (iii) was independently acquired or developed by you without violating any of the obligations under this Plan and without relying on Confidential Material of the
Company. All records, files, drawings, documents, equipment and other tangible items, wherever located, relating in any way to the Confidential Material or otherwise to the Company's business, which
you have prepared, used or encountered or shall in the future prepare, use or encounter, shall be and remain the Company's sole and exclusive property and shall be included in the Confidential
Material. Upon your termination of employment with the Company, or whenever requested by the Company, you shall promptly deliver to the Company any and all of the Confidential Material and copies
thereof, not previously delivered to the Company, that may be, or at any previous time has been, in your possession or under your control. 

        6.2    Nonsolicitation of Employees    

        By
your acceptance of your Severance Payment under this Plan, you agree that, for a period of two (2) years following your termination of employment with the Company or its
Subsidiaries, neither you nor any Person or entity in which you have an interest shall solicit any person who was employed on the date of your termination of employment by the Company or any of its
Subsidiaries, to leave the employ of the Company or any of its Subsidiaries. Nothing in this Section 6.2, however, shall prohibit you or any Person or entity in which you have an interest from
placing advertisements in periodicals of general circulation soliciting applications for employment, or from employing any person who answers any such advertisement. For purposes of this
Section 6.2, you shall not be deemed to have an interest in any corporation whose stock is publicly traded merely because you are the owner of not more than two percent (2%) of the outstanding
shares of any class of stock of such corporation, provided you have no active participation in the business of such corporation (other than voting your stock) and you do not provide services to such
corporation in any capacity (whether as an employee, an independent contractor or consultant, a board member, or otherwise). 

        6.3    Equitable Relief    

        By
your acceptance of your Severance Payment under this Plan, you shall be deemed to have acknowledged that violation of Sections 6.1 or 6.2 would cause the Company irreparable
damage for which the Company can not be reasonably compensated in damages in an action at law, and that therefore in the event of any breach by you of Sections 6.1 or 6.2, the Company shall be
entitled to make application to a court of competent jurisdiction for equitable relief by way of injunction or otherwise (without being required to post a bond). This provision shall not, however, be
construed as a waiver of any of the rights which the Company may have for damages under this Plan or otherwise, and, except as limited in Article VII, all of the Company's rights and remedies
shall be unrestricted. 

10

 
 
 

  ARTICLE VII
  ARBITRATION    
    

        Subject to the provisions of Section 6.3, any controversy or claim between you and the Company arising out of or relating to or
concerning this Plan (including the covenants contained in Section 6) and any dispute regarding your employment or the termination of your employment or any dispute regarding the application,
interpretation or validity of this Plan (each, an "Employment Matter") will be finally settled by arbitration in a location determined by you (which
location must be located within the County in which you primarily work) and administered by the American Arbitration Association (the "AAA") under its
Commercial Arbitration Rules then in effect. In the event of any conflict between this Plan and the rules of the American Arbitration Association, the provisions of this Plan shall be determinative.
If the parties are unable to agree upon an arbitrator, they shall select a single arbitrator from a list of seven arbitrators designated by the office of the American Arbitrator Association having
responsibility for the location selected by you, all of whom shall be retired judges who are actively involved in hearing private cases or members of the National Academy of Arbitrators, and who, in
either event, are residents of such forum. If the parties are unable to agree upon an arbitrator from such list, they shall each strike names alternatively from the list, with the first to strike
being determined by lot. After each party has used three strikes, the remaining name on the list shall be the arbitrator. The AAA's Commercial Arbitration Rules will be modified in the following ways:
(i) each arbitrator will agree to treat as confidential evidence and other information presented to them, (ii) there will be no authority to award punitive damages, (iii) there
will be no authority to amend or modify the terms of the Plan and (iv) a decision must be rendered within ten business days of the parties' closing statements or submission of
post-hearing briefs. To the extent permitted by law, the Company will pay or reimburse any reasonable expenses, including reasonable attorney's fees, you incur as a result of any
Employment Matter, provided that if such expenses are not reimbursed in connection with a dispute that is exempt from Section 409A of the Code pursuant to Treas. Reg.
1.409A-1(b)(11), then such payment shall be made by the Company to you no later than the 30th calendar day following the date on which the dispute was resolved. You or
the Company may bring an action or special proceeding in a state or federal court of competent jurisdiction sitting in Los Angeles County, California or such other jurisdiction as you may determine in
your discretion to enforce any arbitration award under Article VII. 

11

 

 
 

  ARTICLE VIII
  MISCELLANEOUS    
    

        8.1    Applicable law    

        TO
THE EXTENT NOT PREEMPTED BY THE LAWS OF THE UNITED STATES, THE LAWS OF THE STATE OF CALIFORNIA SHALL BE THE CONTROLLING LAW IN ALL MATTERS RELATING TO THIS PLAN, REGARDLESS OF THE
CHOICE-OF-LAW RULES OF THE STATE OF CALIFORNIA OR ANY OTHER JURISDICTION. 

        8.2    Construction    

        No
term or provision of this Plan shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provisions of this Plan
and any present or future statute law, ordinance, or regulation, the latter shall prevail, but in such event the affected provision of this Plan shall be curtailed and limited only to the extent
necessary to bring such provision with the requirements of the law. 

        8.3    Severability    

        If
a provision of this Plan shall be held illegal or invalid, the illegality or invalidity shall not affect the remaining parts of this Plan and this Plan shall be construed and enforced
as if the illegal or invalid provision had not been included. 

        8.4    Headings    

        The
Section headings in this Plan are inserted only as a matter of convenience, and in no way define, limit, or extend or interpret the scope of this Plan or of any particular Section. 

        8.5    Assignability    

        Your
rights or interests under this Plan shall not be assignable or transferrable (whether by pledge, grant of a security interest, or otherwise) by you, your beneficiaries or legal
representatives, except by will or by the laws of descent and distribution. 

        8.6    Term    

        This
Plan shall continue in full force and effect until its terms and provisions are completely carried out, unless terminated by the Board with at least a majority vote before the
commencement of a Change in Control Period (as defined below); provided, however, that no termination of this Plan shall be effective if made while the Company (or any Person acting on the Company's
behalf) (i) is conducting negotiations to effect a Change in Control, (ii) within ninety (90) days before the Company (or any Person acting on its behalf) executes a letter of
intent (whether or not binding) or a definitive agreement to effect a Change in Control, or (iii) during the period between execution of a definitive agreement to effect a Change in Control and
the consummation of the transactions contemplated thereunder (the first to occur of (i), (ii) or (iii) shall commence a "Change in Control Period"). A Change in Control Period shall
expire upon the first to occur of (A) the occurrence of a Change in Control and (B) the first anniversary of the commencement of the Change in Control Period. 

        8.7    Amendment/Termination    

        This
Plan may be amended in any respect by resolution adopted by the Board with at least a majority until the commencement of a Change in Control Period; provided, however, that this
Section 8.7 shall not be amended, and no amendment shall be effective if made during a Change in Control Period. After a Change in Control occurs, this Plan shall no longer be subject to
amendment, change, substitution, deletion, revocation or termination in any respect whatsoever until the second anniversary of such Change in Control. No agreement or representations written or oral,
express or 

12

 

implied,
with respect to the subject matter hereof, have been made by the Company which are not expressly set forth in this Plan. 

        8.8    Notices    

        For
purposes of this Plan, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given when personally delivered, telecopied,
or sent by certified or overnight mail, return receipt requested, postage prepaid, addressed to the respective addresses, or sent to the respective telecopier numbers, last given by each party to the
other, provided that all notices to the Company shall be directed to the attention of the Board of Directors with a copy to the General Counsel. All notices and communications shall be deemed to have
been received on the date of delivery thereof if personally delivered, upon return confirmation if telecopied, on the third business day after the mailing thereof, or on the date after sending by
overnight mail, except that notice of change of address shall be effective only upon actual receipt. No objection to the method of delivery may be made if the written notice or other communication is
actually received. 

        8.9    Interpretation and Administration    

        This
Plan shall be administered by the Board. The Board may delegate any of its powers under the Plan to a subcommittee of the Board. The Board or a subcommittee thereof shall have the
authority (i) to exercise all of the powers granted to it under the Plan, (ii) to construe, interpret and implement the Plan, (iii) to prescribe, amend and rescind rules and
regulations relating to the Plan, (iv) to make all determinations necessary or advisable in administration of the Plan and (v) to correct any defect, supply any omission and reconcile
any inconsistency in the Plan. Actions of the Board or a subcommittee thereof shall be taken by a majority vote of its members. 

        8.10    Section 409A    

        Notwithstanding
anything in this Plan to the contrary, in the event the payment of any amounts under this Plan would be treated as non-qualified deferred compensation under
Section 409A of the Code, such payment will be delayed for 6 months after the date of termination of employment if
required in order to avoid additional tax under Section 409A of the Code. If you die within 6 months following such termination of employment, any such delayed payments shall not be
further delayed, and shall be immediately payable to your beneficiary or estate in accordance with the applicable provisions of this Plan. Notwithstanding anything herein to the contrary, any payment
or benefit hereunder that is exempt from Section 409A of the Code pursuant to Treas. Reg. 1.409A-1(b)(9)(v)(A) or (C) shall be paid or provided to you only to the extent that
the expenses are not incurred, or the benefits are not provided, beyond the last day of your second taxable year following the taxable year in which your termination of employment occurs. To the
extent any expense reimbursement or the provision of any in-kind benefit under this Plan is determined to be subject to Section 409A of the Code, the amount of any such expenses
eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not affect the expenses eligible for reimbursement in any other taxable year (except for any
life-time or other aggregate limitation applicable to medical expenses), in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in
which you incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit. 

        8.11    Type of Plan.    

        This
Plan is intended to be, and shall be interpreted as an unfunded employee welfare plan under Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA") and Section 2520.104-24 of the Department of Labor Regulations, maintained primarily for the purpose of providing employee welfare benefits, to the extent that it provides
welfare benefits, and under Sections 201, 301 and 401 of ERISA, as a plan that is unfunded and maintained primarily for the 

13

 

purpose
of providing deferred compensation, to the extent that it provides such compensation, in each case for a select group of management or highly compensated employees. 

Dated:
December 15, 2008 

14

 
 
 

  Exhibit A
  Separation and General Release Agreement    
    

        In connection with the termination of your employment by PacWest Bancorp (the "Company"),
effective                , 200    ,
and in accordance with the terms and conditions of the PacWest Bancorp Executive Severance Pay Plan, as amended and restated from time to time (the "Plan"), the Company agrees to provide you,
contingent upon your execution of this agreement, with the following severance payment and benefits: 

	•
	[Insert description of severance payment and benefits] 

        In
consideration of the payment and benefits set forth above, you agree knowingly and voluntarily as follows: 

        You
knowingly and voluntarily waive and release forever whatever claims you ever had, now have or hereafter may have against the Company and any subsidiary or affiliate of the Company,
any of their successors or assigns and any of their present and former employees, directors, officers and agents (collectively referred to as "Releasees"), based upon any matter, occurrence or event
existing or occurring prior to the execution of this agreement, including anything relating to your employment with the Company and any of its subsidiaries or affiliates or to the termination of such
employment or to your status as a shareholder or creditor of the Company. 

        This
release and waiver includes but is not limited to any rights or claims under United States federal, state or local law and the national or local law of any foreign country
(statutory or decisional), for wrongful or abusive discharge, for breach of any contract, for misrepresentation, for breach of any securities laws, or for discrimination based upon race, color,
ethnicity, sex, age, national origin, religion, disability, sexual orientation, or any other unlawful criterion or circumstance, including rights or claims under the Age Discrimination in Employment
Act of 1967 ("ADEA")(except that you do not waive ADEA rights or claims that may arise after the date of this agreement). 

        You
agree never to institute any claim, suit or action at law or in equity against any Releasee in any way by reason of any claim you ever had, now have or hereafter may have relating to
the matters described in the two preceding paragraphs. You hereby acknowledge that you are familiar with the provisions of California Civil Code Section 1542 and that you expressly waive and
relinquish any and all
rights or benefits you may have under said Section 1542, to the full extent permitted by law. Said Section 1542 states: 

"A
general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have
materially affected his or her settlement with the debtor." 

        The
payment and benefits described herein shall be in lieu of any and all other amounts to which you might be, are now or may become entitled from the Company, its subsidiaries and
affiliates and, without limiting the generality of the foregoing, you hereby expressly waive any right or claim that you may have or assert to payment for salary, bonuses, medical, dental or
hospitalization benefits, life insurance benefits or attorneys' fees; provided, however, that
notwithstanding any other provision of this agreement, you do not waive any of your rights and the Company shall comply with its obligations with respect to continuation coverage requirements under
Section 4980B of the Internal Revenue Code of 1986, as amended (commonly referred to as "COBRA"). 

15

 

        [Your
signature below will also constitute confirmation that (i) you have been given at least twenty-one (21) days within which to consider this
release and its consequences, (ii) you have been advised prior to signing this agreement to consult, and have consulted, with an attorney of your choice, and (iii) you have been advised
that you may revoke this agreement at any time during the seven (7) day period immediately following the date you signed this letter.][Subject to
revision based on circumstances of participant, and in accordance with applicable law] 

        This
agreement shall be governed by the laws of State of California. 

        Please
confirm by returning to                    the enclosed copy of this agreement, signed in the place provided, that you have knowingly and voluntarily
decided to accept and agree to
the foregoing. 

					
	 	 	PACWEST BANCORP
	

 	
 	

 
	 	 	Name:	 	 
	 	 	Title:	 	 
	
 AGREED AND ACKNOWLEDGED:	
 	

 	
 	

 
	

 	
 	

 	
 	

 
	Name:	 	 	 	 
	Date:	 	 	 	 

16

QuickLinks

Exhibit 10.2

PACWEST BANCORP EXECUTIVE SEVERANCE PAY PLAN (as amended and restated effective December 15, 2008)

ARTICLE I DEFINITIONS

ARTICLE II INDEMNIFICATION AND GROSS-UP FOR EXCISE TAXES

ARTICLE III SEVERANCE PAYMENTS

ARTICLE IV OTHER RIGHTS AND BENEFITS NOT AFFECTED

ARTICLE V SUCCESSOR TO THE COMPANY

ARTICLE VI CONFIDENTIALITY

ARTICLE VII ARBITRATION

ARTICLE VIII MISCELLANEOUS

Exhibit A Separation and General Release Agreement

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