Document:

a5611101ex10_22.htm

    
      Exhibit
10.22

       

      B/E
AEROSPACE, INC,

      MANAGEMENT
INCENTIVE PLAN (60%) – FY 2008

      

      I.  Purpose

      

      The
purpose of this Management Incentive Plan (the “Plan”) is
to reward and encourage significant contributions to the success of BE
Aerospace, Inc. (the “Corporation”)
and its respective businesses.

      

      II.  Eligibility

      

      Eligibility
for participation in this Plan is determined by the following senior
executives:  the Chairman & CEO, the President & COO, the Sr.
Vice President, CFO & Treasurer and the Vice President of Human
Resources.  This Plan primarily includes all site vice presidents and
general managers reporting directly to the Group/Segment Vice President &
General Manager.  The Vice President of Human Resources will ensure
consistent eligibility requirements and administration throughout the
Corporation.

      

      III.  Plan
Approval

      

      The
financial and strategic business objectives (both criteria and targets) (the
“Objectives”)
will be established for the Corporation and the Segments/Business Units at the
beginning of the fiscal year.  These Objectives are reviewed by the
Chairman & CEO, the President & COO and the Sr. Vice President, CFO
& Treasurer and then submitted for approval to the Compensation Committee of
the Board of Directors (the “Committee”).

      

      IV.  Plan Participation
Level

      

      The
maximum potential incentive compensation for each executive is 60% of the
executive’s base salary (“Maximum
Award”), which is determined based on the level of achievement of the
applicable Objectives and individual strategic
initiatives.  Individual awards are targeted at 85% of the maximum
award (or 51% of base salary) (“Target
Award”).  Individuals who achieve each of the target levels of
the applicable Objectives and individual strategic initiatives are eligible to
receive the Target Award.  Actual individual awards can be increased
by the Committee in its sole discretion up to the Maximum Award or decreased
down to zero based on an individual’s performance and his/her contribution
related to the business unit to which the individual was assigned during the
performance period (e.g.,
site/segment/Corporation).

      

      The Target Award of 85%
(e.g., 51% of base salary)
contemplates:

      
        	
                 
      

              	
                ·

              	
                100%
      achievement of the targets for the Objectives and individual strategic
      initiatives.

              

      

      

      The Maximum Award of 100%
(e.g., 60% of base salary)
contemplates:

      
        	
                 
      

              	
                ·

              	
                110%
      achievement of the targets for the Objectives and individual strategic
      initiatives.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      In
extraordinary cases, an award of up to an additional 10% of base salary can be
achieved if the following criteria are met:

      

      
        	
                ·

              	
                The
      site, segment and Corporation exceed all financial and strategic goals by
      110% or greater, and

              

      

      
        	
                ·

              	
                Individual
      performance is at a superior level as determined by the executive’s
      immediate supervisor, upon recommendation by the Chairman & CEO, the
      President & COO and the Sr. Vice President, CFO & Treasurer and as
      approved by the Committee, subject to the Corporation’s ability to
      pay.

              

      

      

      For more
detailed information about how the bonus payouts are calculated, please refer to
Sections VI and VII, and the examples shown on page 4.

      

      V.  Allocation of
Awards

      

      The Plan
features two components, the Objectives, or financial metrics, and individual
strategic initiatives, which are collectively used to determine the incentive
payout amount:

      

      
        	
                 
      

              	
                ·

              	
                Objectives – Eighty
      percent (80%) of the potential incentive payment amount is based on the
      attainment of specified levels of four financial metrics weighted as set
      forth below:

              

      

      

      
        	
                 
      

              	
                1.

              	
                EBIT (earnings before interest
      and taxes) –  weighed at
30%

              

      

      

      
        	
                 
      

              	
                2.

              	
                Operating Cash Flow
      (EBITDA), defined as earnings before interest, taxes, depreciation
      and amortization, plus or minus the change in working capital and related
      operating non-current assets and liabilities (exclusive of cash) less
      capital expenditures – weighed at
30%

              

      

      

      
        	
                 
      

              	
                3.

              	
                Bookings – weighed at
      20%

              

      

      

      
        	
                 
      

              	
                4.

              	
                Operating Margin –
      weighed at 20%

              

      

      

      
        	
                 
      

              	
                ·

              	
                Individual Strategic
      Initiatives – Twenty percent (20%) of the potential incentive
      payment amount is based on the attainment of specified individual
      strategic initiatives.

              

      

      

      The
percent of the incentive payment amount attributed to each Objective and the
individual strategic initiatives is determined independently with respect to the
remaining goals.

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      VI.  Financial Metrics Plan
Design (80% Weighting)

      

      Incentive
payouts with respect to each Objective will only occur if at least eighty
percent (80%) of the target levels of the Objective are achieved (the “Minimum
Threshold”).  The Target Award is paid out upon 100%
achievement of each Objective and the Maximum Award is paid out upon 110% of
achievement of each Objective.  The payout percentage of base salary
for each level of achievement between 80% and 110% is shown on the chart below
for each Objective.

      

      Exhibit
1:

      

      
        	 
      	
                EBIT (30%)

              	
                OPERATING CASH FLOW (30%)

              	
                BOOKINGS (20%)

              	
                OPERATING MARGIN (20%)

              	 
      
	 
      	
                %
      of plan realized

              	
                %
      of base

              	
                %
      of plan realized

              	
                %
      of base

              	
                %
      of plan realized

              	
                %
      of base

              	
                %
      of plan realized

              	
                %
      of base

              	
                Total
      % of Base

              
	
                Minimum
      Threshold

              	
                80%

              	
                0.14%

              	
                80%

              	
                0.14%

              	
                80%

              	
                0.10%

              	
                80%

              	
                0.10%

              	
                0.48%

              
	 
      	
                81%

              	
                0.27%

              	
                81%

              	
                0.27%

              	
                81%

              	
                0.18%

              	
                81%

              	
                0.18%

              	 
      
	 
      	
                82%

              	
                0.40%

              	
                82%

              	
                0.40%

              	
                82%

              	
                0.27%

              	
                82%

              	
                0.27%

              	 
      
	 
      	
                83%

              	
                0.53%

              	
                83%

              	
                0.53%

              	
                83%

              	
                0.36%

              	
                83%

              	
                0.36%

              	 
      
	 
      	
                84%

              	
                0.66%

              	
                84%

              	
                0.66%

              	
                84%

              	
                0.44%

              	
                84%

              	
                0.44%

              	 
      
	 
      	
                85%

              	
                0.79%

              	
                85%

              	
                0.79%

              	
                85%

              	
                0.53%

              	
                85%

              	
                0.53%

              	 
      
	 
      	
                86%

              	
                0.92%

              	
                86%

              	
                0.92%

              	
                86%

              	
                0.61%

              	
                86%

              	
                0.61%

              	 
      
	 
      	
                87%

              	
                1.05%

              	
                87%

              	
                1.05%

              	
                87%

              	
                0.70%

              	
                87%

              	
                0.70%

              	 
      
	 
      	
                88%

              	
                1.18%

              	
                88%

              	
                1.18%

              	
                88%

              	
                0.79%

              	
                88%

              	
                0.79%

              	 
      
	 
      	
                89%

              	
                1.31%

              	
                89%

              	
                1.31%

              	
                89%

              	
                0.87%

              	
                89%

              	
                0.87%

              	 
      
	 
      	
                90%

              	
                1.44%

              	
                90%

              	
                1.44%

              	
                90%

              	
                0.96%

              	
                90%

              	
                0.96%

              	 
      
	 
      	
                91%

              	
                2.16%

              	
                91%

              	
                2.16%

              	
                91%

              	
                1.44%

              	
                91%

              	
                1.44%

              	 
      
	 
      	
                92%

              	
                2.88%

              	
                92%

              	
                2.88%

              	
                92%

              	
                1.92%

              	
                92%

              	
                1.92%

              	 
      
	 
      	
                93%

              	
                3.60%

              	
                93%

              	
                3.60%

              	
                93%

              	
                2.40%

              	
                93%

              	
                2.40%

              	 
      
	 
      	
                94%

              	
                4.32%

              	
                94%

              	
                4.32%

              	
                94%

              	
                2.88%

              	
                94%

              	
                2.88%

              	 
      
	 
      	
                95%

              	
                5.04%

              	
                95%

              	
                5.04%

              	
                95%

              	
                3.36%

              	
                95%

              	
                3.36%

              	 
      
	 
      	
                96%

              	
                6.48%

              	
                96%

              	
                6.48%

              	
                96%

              	
                4.32%

              	
                96%

              	
                4.32%

              	 
      
	 
      	
                97%

              	
                7.92%

              	
                97%

              	
                7.92%

              	
                97%

              	
                5.28%

              	
                97%

              	
                5.28%

              	 
      
	 
      	
                98%

              	
                9.36%

              	
                98%

              	
                9.36%

              	
                98%

              	
                6.24%

              	
                98%

              	
                6.24%

              	 
      
	 
      	
                99%

              	
                10.80%

              	
                99%

              	
                10.80%

              	
                99%

              	
                7.20%

              	
                99%

              	
                7.20%

              	 
      
	
                Target
      Award (85%)

              	
                100%

              	
                12.24%

              	
                100%

              	
                12.24%

              	
                100%

              	
                8.16%

              	
                100%

              	
                8.16%

              	
                40.8%

              
	 
      	
                101%

              	
                12.46%

              	
                101%

              	
                12.46%

              	
                101%

              	
                8.30%

              	
                101%

              	
                8.30%

              	 
      
	 
      	
                102%

              	
                12.67%

              	
                102%

              	
                12.67%

              	
                102%

              	
                8.45%

              	
                102%

              	
                8.45%

              	 
      
	 
      	
                103%

              	
                12.89%

              	
                103%

              	
                12.89%

              	
                103%

              	
                8.59%

              	
                103%

              	
                8.59%

              	 
      
	 
      	
                104%

              	
                13.10%

              	
                104%

              	
                13.10%

              	
                104%

              	
                8.74%

              	
                104%

              	
                8.74%

              	 
      
	 
      	
                105%

              	
                13.32%

              	
                105%

              	
                13.32%

              	
                105%

              	
                8.88%

              	
                105%

              	
                8.88%

              	 
      
	 
      	
                106%

              	
                13.54%

              	
                106%

              	
                13.54%

              	
                106%

              	
                9.02%

              	
                106%

              	
                9.02%

              	 
      
	 
      	
                107%

              	
                13.75%

              	
                107%

              	
                13.75%

              	
                107%

              	
                9.17%

              	
                107%

              	
                9.17%

              	 
      
	 
      	
                108%

              	
                13.97%

              	
                108%

              	
                13.97%

              	
                108%

              	
                9.31%

              	
                108%

              	
                9.31%

              	 
      
	 
      	
                109%

              	
                14.18%

              	
                109%

              	
                14.18%

              	
                109%

              	
                9.46%

              	
                109%

              	
                9.46%

              	 
      
	
                Maximum
      Award (100%)

              	
                110%

              	
                14.40%

              	
                110%

              	
                14.40%

              	
                110%

              	
                9.60%

              	
                110%

              	
                9.60%

              	
                48.0%

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      VII.  Individual Strategic
Initiatives Plan Design   (20% Weighting)

      

      A target
payout of 10.2% of base salary (85% target X 60% plan X 20% weighting = 10.2%)
is available for individuals who fully achieve all of their individual strategic
initiatives.  Lesser payouts for lesser levels of performance are
available at the discretion of management.  A maximum payout of up to
12% is available in recognition of superior performance.

      

      Examples:

      

      
        	
                1.

              	
                2008
      projected bonus payment calculations - Assumes 2008 Plan targets achieved
      at 100% and 100% credit on individual strategic
    initiatives.

              

      

      

      

      
        	
                NAME

              	
                (A)

                SALARY

              	
                (B)

                Maximum  Award

              	
                 

                 

                 

                Target
      Award at 85%

              	
                (C)

                (80%
      weighted) % earned  FINANCIAL METRICS

              	
                (D)

                (20%
      weighted) %
      

                earned
      

                INDIVIDUAL
      STRATEGIC INITIATIVES

              	
                (E)

                % of
      Award Earned

              	
                (F)

                 $
      award Earned

              
	
                Doe,
      John

              	
                $200,000

              	
                60%

              	
                 

                51%

              	
                40.8%

              	
                10.2%

              	
                51%

              	
                $102,000

              

      

      

      

      
        	
                2.

              	
                2008
      projected bonus payment calculations – Assumes 100% EBIT, 95% Cash Flow,
      110% Bookings, 98% Operating Margin; and partial credit on achievement of
      individual strategic initiatives.

              

      

      

      

      
        	
                NAME

              	
                (A)

                SALARY

              	
                (B)

                Maximum  Award

              	
                 

                 

                Target
      Award at 85%

              	
                (C)

                (80%
      weighted) % earned  FINANCIAL METRICS

              	
                (D)

                (20%
      weighted) %
      

                earned

                INDIVIDUAL
      STRATEGIC INITIATIVES

              	
                (E)

                % of
      Award Earned

              	
                (F)

                 $
      award Earned

              
	
                Doe,
      John

              	
                $200,000

              	
                60%

              	
                 

                51%

              	
                33.1%

              	
                5.0%

              	
                38.1%

              	
                $76,200

              

      

      

      VIII.  Administration of the
Plan

      

      
        	
                ·

              	
                Business
      unit/site awards are based on performance independent of segment or
      Corporate performance.  The actual amount or percentage of
      incentive compensation, if any, will be based upon achievement of the
      Objectives outlined in Section VI and the individual strategic initiatives
      outlined in Section VII.  Furthermore, the actual amount of
      individual awards are subject to individual performance and its effect on
      the achievement of these business goals, as bonus payments are not
      guaranteed.  The Corporation reserves the right to increase or
      reduce the amount of the incentive compensation paid under this Plan in
      its sole discretion notwithstanding the level of attainment of the
      specified Objective or individual strategic
  initiatives.

              

      

      .

      
        	
                ·

              	
                The
      Committee, respective Group/Segment Vice President & General Manager,
      Sr. Vice President, CFO & Treasurer, the President & COO, and the
      Chairman & CEO will review attainment of the business plan goals and
      objectives at the close of the fiscal year.  Awards will be paid
      in cash as soon as practicable after the Corporation has publicly reported
      its fiscal year results and in no event later than March 15,
      2009.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

         

        
          
          

        

      

      
        	
                ·

              	
                Exceptions
      and adjustments to the Plan and the awards may be made at the discretion
      of the Committee upon the recommendation of the Chairman & CEO,
      President & COO and Sr. Vice President, CFO &
      Treasurer.

              

      

      

      
        	
                ·

              	
                Participants
      in the Plan who enter after the start of the fiscal year may receive a
      prorated award.

              

      

      

      
        	
                ·

              	
                Employee Benefits,
      Taxes and Deductions - Awards paid under
      this Plan are subject to applicable taxes, withholding as required by law,
      401(k) contributions and other payroll
  deductions.

              

      

      

      
        	
                ·

              	
                Transfer or Change of
      Assignment -
      A participant transferring into or out of qualifying positions
      during the fiscal year may receive a prorated award based on a share of
      time spent in the qualifying
assignment.

              

      

      

      
        	
                ·

              	
                Termination of
      Employment -
      Any participant who resigns or is dismissed from employment with
      the Corporation and its subsidiaries and affiliates for any reason or who
      is not on the active payroll on the date that the award is paid, will not
      be eligible for an award.

              

      

      

      Nothing
in this Plan will be construed to give any employee any right to continue in the
employment of the Corporation and its subsidiaries and affiliates or to continue
on any assignment.  Further, nothing in this Plan will interfere in
any way with the right of the Corporation to terminate the employment of any
employee affected by this Plan at any time and for any reason.

      

      Participation
in the Plan is discretionary.  Nothing in this Plan will interfere in
any way with the right of the Corporation to (i) change or modify the terms and
conditions of this Plan or (ii) reassign a participant to a different incentive
plan for future years.  In addition, nothing in the Plan confers on a
participant the right or entitlement to receive compensation or bonus in any
specific amount for any future fiscal year.  Moreover, the awards
under the Plan do not constitute wages, or regular, recurrent or contractual
compensation and will have no effect on the determination of employee-related
rights or benefits under law or any plan of the Corporation or its subsidiaries
and affiliates.

      

      The
benefits provided pursuant to the awards are in no way secured, guaranteed or
warranted by the Corporation.EXHIBIT 10.1

                             PACIFIC CAPITAL BANCORP
                             -----------------------

                            MANAGEMENT RETENTION PLAN
                          (Effective February 13, 2008)

<PAGE>

                             PACIFIC CAPITAL BANCORP
                             -----------------------

                            MANAGEMENT RETENTION PLAN
                          (Effective February 13, 2008)

                                TABLE OF CONTENTS

  1.     Introduction........................................................1

  2.     Purpose.............................................................1

  3.     Eligibility to Participate..........................................2

  4.     When Participation Ends.............................................2

  5.     Severance Benefits..................................................2-3

                Eligibility to Receive Benefits..............................2
                Involuntarily Terminated.....................................2-3
                Other Pay/Benefits...........................................3
                Retiree Health Plan Benefits.................................3
                Exclusion of Benefits........................................3
                Limitation on Benefits.......................................3

  6.     Exclusions for Severance Payment....................................3-4

  7.     Severance Payment...................................................4

  8.     Rules for Determining Average Annual Compensation...................4

                Average Annual Compensation..................................4
                Cash Bonus...................................................4
                Cash Commissions.............................................4
                No Fringe Benefits...........................................4
                No Stock Options.............................................4

  9.     Time and Form of Severance Payment..................................4

10.      Withholding.........................................................5

11.      Excise Tax and Non-Deductibility Limitations........................5

12.      Retiree Health Plan.................................................5

13.      Employment Status...................................................5

                Transfer of Employment.......................................5

                                       i

<PAGE>

14.      Successors..........................................................6

                Company's Successors.........................................6
                Failure to Obtain Assumption.................................6
                Successor Fund...............................................6

Definitions.................................................................7-10

                Administration of the Plan ERISA Required Information
                Cause
                Change of Control
                Change of Control Date
                Code
                Determination
                Disability
                Exchange Act
                Good Reason
                Governing Law
                Incumbent Directors
                Plan Year
                Severance Window Period
                Severance Agreement and General Release

                                       ii

<PAGE>

                             PACIFIC CAPITAL BANCORP
                             -----------------------

                            MANAGEMENT RETENTION PLAN
                          (Effective February 13, 2008)

1.       Introduction
         ------------

On  November  24,  1998,  Pacific  Capital  Bancorp,  a  California  corporation
(hereinafter referred to as Pacific Capital), established a management retention
plan entitled "Pacific Capital Bancorp  Management  Retention Plan" (hereinafter
referred to as the "Plan") for the  benefit of certain  eligible  executives  of
Pacific  Capital  and its  subsidiaries  (hereinafter  referred  to as  "Pacific
Capital").  The  Compensation  Committee  of the Board of  Directors  of Pacific
Capital  (the  "Committee")  approved  this new plan to replace the 1998 Plan on
February 13, 2008.

The Plan shall  remain in effect until  terminated  by the Board of Directors by
resolution adopted by three-fourths of the Incumbent Directors.

This  document  ("Plan  Document")  is intended to give  participants  an easily
understood  explanation of the Plan. This Plan Document, in conjunction with any
future amendments,  constitutes the official Plan Document for the Plan. You may
request an additional copy of this Plan Document by sending a written request to
the address below. Please note that capitalized terms have specialized  meanings
which are defined in either the section  where it is first used or at the end of
the Plan Document.

Neither the receipt of the Plan Document nor the use of the term "you" indicates
that you are  eligible  for a  retention  benefit  under  the Plan.  Only  those
executives who are selected for participation and satisfy the requirements for a
Severance Payment contained in the Plan are eligible for a benefit.

If you  have  questions  regarding  the  Plan,  you may  contact  the  Corporate
Secretary at:

                             Pacific Capital Bancorp
                               1021 Anacapa Street
                             Santa Barbara, CA 93106
                             Telephone: 805-564-6298
2.       Purpose.
         --------

The purpose of this Plan is to:

     o    enhance the ability of Pacific  Capital to retain  existing  executive
          management and, if needed, attract new executives;

     o    provide reasonable  severance benefits for eligible  executives in the
          event of  termination  of employment  following a Change of Control of
          Pacific Capital, and;

     o    enhance executive morale.

                                     Page 1

<PAGE>

3.       Eligibility to Participate
         --------------------------

You become  eligible to participate in the Plan if Pacific  Capital  employs you
within a  position  or  salary  grade  (or  similar  category)  selected  by the
Compensation Committee of the Board of Directors ("Committee") to participate in
the Plan.  If you are among the  executive  employees  whose  rank,  position or
salary grade (or similar  category) is selected for  participation,  you will be
notified in writing. Employment in an executive capacity does not entitle you to
selection for  participation  in the Plan.  The  Committee  shall not select any
category of employees for participation unless it determines that each person in
that category is a member of a select group of management or  highly-compensated
employees as defined by the Employee Retirement Income Securities Act ("ERISA").
The Plan shall be  unfunded  for tax  purposes  and for  purposes  of Title I of
ERISA.  The  Committee's  selection  of a category of  executive  employees  for
participation shall be made solely in its discretion and shall be conclusive and
binding.

If you are covered under the terms of an employment agreement, change in control
agreement,  or other  similar  agreement  entered  into  between you and Pacific
Capital,  or another  subsidiary or entity  subsequently  acquired,  you are not
eligible  to  participate  in this Plan until the terms of such other  agreement
expire.

If you are selected  for  participation,  you will  receive a written  Notice of
Participation from the Corporate Secretary to be executed and returned by you.

4.       When Participation Ends
         -----------------------

You will cease to be a  participant  in the Plan as of the first to occur of the
following events:

     o    the date you receive all of the Severance  Payments due under the Plan
          in the event you are eligible for severance;

     o    the date the  Committee  notifies  you that as a result of a change in
          your  employment  status,  you are no longer  included  in a  category
          selected to be a participant in the Plan;

     o    the date your employment ends for any reason, which does not result in
          your eligibility for severance;

     o    the Board of Directors terminates the Plan;

5.       Severance Benefits
         ------------------

Eligibility to Receive Benefits:  You are eligible to receive benefits following
a Change of Control only if:

     o    you are a participant  in the Plan at the time of your  termination of
          employment;   and  you  have  signed  and   returned   the  Notice  of
          Participation form;

     o    you have  signed the  Severance  Agreement  and  General  Release  and
          delivered it to Pacific Capital;

     o    your  employment  is  Involuntarily  Terminated  by  Pacific  Capital.
          Involuntarily Terminated shall have the following meaning:

          o    your  employment is terminated by Pacific  Capital other than for
               Cause within the Severance Window,

                                     Page 2

<PAGE>

          o    your  employment is terminated by Pacific  Capital as a result of
               your death or your Disability within the Severance Window, or

          o    you  terminate  your   employment  for  Good  Reason  within  the
               Severance Window Period,

     Other Pay/Benefits. If (1) your employment is terminated at any time during
     the  Severance  Window  Period and you are  entitled to receive a Severance
     Payment,  (2) you  participate in any Retiree  Health Plan,  and/or (3) you
     timely  exercise  your  rights  under  Title X of the  Consolidated  Budget
     Reconciliation  Act of 1985 ("COBRA") to continue to participate in Pacific
     Capital's  Health/Dental/Vision  ("H/D/V") plans after your  termination of
     employment,  Pacific  Capital  will  continue to pay all premiums and costs
     associated  with your  participation  (and your spouse and  dependents)  in
     Company H/D/V plans according to your elections and the terms/conditions of
     those plans for the period  beginning as of the date of your termination of
     employment. Payments end the earlier of:

     o    the date you and your  spouse  and  dependents  become  covered  under
          another employer's health and/or dental insurance plans, or

     o    the last day of the period you and/or your spouse and  dependents  are
          eligible to participate in Pacific  Capital's  H/D/V plans as provided
          under COBRA.

   Exclusion of Benefits

   In the event your  employment is terminated  for any reason,  either prior to
   the  occurrence  of a Change of Control Date or after the  expiration  of the
   Severance  Window  Period  following  a Change of Control  Date,  you are not
   entitled to receive any benefits  under this Plan.  Other than this Plan, you
   may be entitled to receive  Severance  Benefits that may apply under existing
   benefit plans and policies of Pacific Capital.

   Limitation on Benefits

   By executing and returning to Pacific Capital a Notice of Participation,  you
   acknowledge  that payment of benefits to you under this Plan,  if any, is the
   only  compensation  that  you are  entitled  to as a  result  of  Involuntary
   Termination  following  a Change  of  Control.  You have no right to bring or
   maintain  any suit,  action,  or other  proceeding  seeking  compensation  or
   damages based on any alleged  wrongful  termination of your  employment  with
   Pacific Capital. Employee waives and releases any rights that he/she may have
   under  California  Civil Code  Section  1542 to the full extent that all such
   rights may lawfully be waived.

6.       Exclusions for Severance Payment
         --------------------------------

You are not eligible for Severance Benefits,  if any of the following conditions
apply:

     o    You fail to  report  to work or resign  from  employment  prior to the
          effective  date of your  termination  of  employment  set forth in the
          notice of termination;

     o    You announce in writing your  intention  to  terminate  employment  or
          retire  prior  to  the  date  Pacific  Capital   announces  that  your
          employment will terminate;

     o    Your termination of employment is due to Cause;

     o    You  voluntarily  resign or terminate your  employment  other than for
          Good Reason,

                                     Page 3

<PAGE>

     o    Your employment ends in connection with the sale of assets or a change
          in ownership of any part of Pacific  Capital's  operations and you are
          offered a comparable position with comparable pay with the acquirer.

7.       Severance Payment
         -----------------

The Severance Payment is equal to an amount multiplied by your Severance Payment
Percentage  based on your position at the time of your termination of employment
times your Average Annual Compensation.

Position                                            Severance Payment Percentage
------------------------                            ----------------------------
Executive Vice President                                        200%
Senior Vice President                                           100%
*Any Other Employees Selected by The Compensation
 Committee for Participation                                    100%

8.       Rules for Determining Average Annual Compensation
         -------------------------------------------------

Average  Annual  Compensation.  The  average of your annual  base  salary,  cash
bonuses, and commissions paid for the last three full Plan Years (or your actual
full Plan Years of employment if employed for less than three years).

Cash Bonus. A cash bonus,  if any, is determined  after the close of a Plan Year
and normally is paid during the first quarter of the following Plan Year.

Cash Commissions.  Any cash commission is determined and paid after the close of
a Plan Year, and the amount, if any, is paid during the following Plan Year.

No Fringe Benefits.  Your Average Annual Compensation for any Plan Year does not
include any fringe  benefits  provided  by Pacific  Capital,  including  Pacific
Capital's  I  &  I  Plan  or  Employee  Stock   Ownership   Plan,  any  matching
contributions  to any 401(k) plan, any  contributions or accruals to the Retiree
Health Plans, and any premiums on life, disability, or medical insurance.

No Stock Options.  Your Average Annual  Compensation  for any Plan Year does not
include any income or gain realized on any stock options or other  securities or
rights  granted to you by Pacific  Capital  under any stock option plan or other
incentive plan in effect at any time.

9.       Time and Form of Severance Payment
         ----------------------------------

Any  Severance  Payment that you are entitled to receive under this Plan will be
paid by Pacific  Capital in a lump sum by the later of (1) if no Dispute is made
with  respect to the  Determination,  (as those terms are used in the Plan),  15
business days after the date of the delivery of the Determination,  and (2) if a
Dispute is made with respect to the  Determination,  15 business  days after the
date of the  Dispute  resolution  but in no event later than the 15th day of the
third month  following the end of the year of the Plan Year in which the payment
becomes due.

Notwithstanding  the  foregoing,  if any  payment  to be made  under the Plan is
considered  nonqualified  deferred  compensation  subject to Section 409A of the
Code and  otherwise  would be made within six months  following a  Participant's
termination of employment to such  Participant who is a "specified  employee" as
defined for purposes of Code Section  409A,  then such payment  shall be delayed
and paid no earlier than the first day of the seventh  calendar month  following
such termination of employment.

                                     Page 4

<PAGE>

10.      Withholding
         -----------

All  amounts  paid by Pacific  Capital to you under this Plan are subject to all
applicable  federal,  state, and local payroll and withholding taxes,  including
any withholding obligations under Code Sections 4999 or 409A.

11.      Excise Tax and Non-Deductibility Limitations
         --------------------------------------------

If a determination is made that payments and benefits payable to any participant
under this Plan, when aggregated with any other payments or benefits received or
to be received under any other plan by reason of the occurrence of the Change of
Control  would be subject to the Excise Tax imposed by Section 4999 of the Code,
the  Severance  Payments  shall be reduced to an amount that will not require an
Excise  Tax under  Section  4999 of the Code.  The  Accountants  shall  make the
Determination as to whether the Severance  Payments are subject to an Excise Tax
and shall be reduced.  No gross-up  payments for excise taxes shall be paid to a
participant.

12.      Retiree Health Plan
         -------------------

Your rights and benefits under this Plan are in addition to any rights under any
Retiree  Health  Plan.  Nothing in this Plan shall limit your  rights  under any
Retiree  Health  Plan and  nothing in any  Retiree  Health Plan shall limit your
rights under this Plan.

13.      Employment Status
         -----------------

This Plan does not  constitute  a contract  of  employment  or impose on Pacific
Capital any obligation to:

     o    retain you as an employee,

     o    change status of your employment, or

     o    change Pacific Capital's policies regarding termination of employment.

This Plan does not  constitute  a contract  of  employment  or impose on you any
obligation to continue your  employment  with Pacific Capital for any particular
period of time.

Subject to the provisions of any written  employment  agreement  between you and
Pacific  Capital,  your  employment is and  continues to be at-will,  as defined
under applicable law. If your employment with Pacific Capital terminates for any
reason at any time other than during the Severance Window Period,  including any
termination  prior to a Change of  Control  Date,  you are not  entitled  to any
payments,  benefits, damages, awards, or other compensation under this Plan. You
will  only be  entitled  to  payments,  benefits,  damages,  awards,  and  other
compensation  that are available under Pacific  Capital's  established  employee
plans and practices at the time of termination.

Transfer of Employment.  Notwithstanding  anything in this Plan to the contrary,
the  reassignment  of your  employment  from Pacific  Capital to any subsidiary,
shall not, by itself, be considered a Termination of Employment.

                                     Page 5

<PAGE>

14.      Successors
         ----------

Company's Successors.  Pacific Capital requires any successor to Pacific Capital
(whether by purchase, lease, merger,  consolidation,  liquidation, or otherwise)
or to all (or substantially all) of Pacific Capital's business and/or assets, to
assume  this Plan and  expressly  agree to  perform  all of the  obligations  of
Pacific Capital under this Plan. For all purposes under this Plan, references to
Pacific Capital include any successor to Pacific Capital and its business and/or
assets, as appropriate. Any corporation, partnership, limited liability company,
or other person or entity which is the successor of Pacific Capital  (whether by
purchase, lease, merger,  consolidation,  liquidation or otherwise) or successor
to all (or  substantially  all) of the business and/or assets of Pacific Capital
(including the stock of any subsidiary of Pacific Capital) is considered to have
assumed all of Pacific  Capital's  obligations  under this Plan. This assumption
applies regardless of whether or not any successor specifically  acknowledges in
writing that it is assuming all obligations under this Plan.

Failure to Obtain  Assumption.  The  failure  of  Pacific  Capital to obtain the
assumption  of this  Plan by its  successor  prior to the  effectiveness  of any
succession  will  be  considered  to  be  the  Involuntary  Termination  of  the
participants  in  this  Plan.  The  Involuntary  Termination  of  each  effected
participant  is effective as of the day before the  succession  effective  date.
Effected  participants  are entitled to receive the same  Severance  Payment and
other benefits under this Plan that they would have been entitled to receive had
their  employment  been  terminated  in an  Involuntary  Termination  after  the
succession effective date and after the occurrence of a Change of Control.

Successor  Fund.  If a  transaction  occurs  in which  any  person  or entity is
considered  a  successor  to  Pacific   Capital  and  the  successor   does  not
specifically  assume  all of  Pacific  Capital's  obligations  under  this Plan,
Pacific Capital:

     o    will  retain a  sufficient  amount to pay,  based on the  compensation
          levels of the participants who are Pacific Capital employees as of the
          date immediately  preceding the close of the  transaction,  all of the
          Severance Payments and other benefits that are then payable, and

     o    within two years from the closing date may be payable to participants,
          and

     o    promptly after the close of the transaction will use the assets and/or
          consideration to pay the Severance Payments and other benefits payable
          to the participants.

                                     Page 6

<PAGE>

DEFINITIONS
-----------

Administration of the Plan

The sponsor and Administrator of this Plan is:
Pacific Capital Bancorp
1021 Anacapa Street
Santa Barbara, California  93101
Attn:  Ms. Noma Bruton - Chief People Officer
Phone: (805) 899-8497

The Designated Agent for service of process:
General Counsel
Pacific Capital Bancorp
1021 Anacapa Street
Santa Barbara, California 9311

Pacific  Capital  may  change  the name and  position  of the  Administrator  or
--------------------------------------------------------------------------------
Designated Agent at any time.
-----------------------------

Cause
-----

Cause for  termination  of the  participant's  employment by Pacific  Capital is
defined as:

     o    the continued failure by the participant to substantially  perform the
          participant's  duties  (unless  such  failure is due to  participant's
          Disability) after written  documentation  specifying the participant's
          performance  failures is delivered to the  participant and a period of
          at least 14  business  days is given to the  participant  to cure such
          failures;

     o    any act of dishonesty,  breach of confidentiality or ethics violation,
          or fraud by the participant;

     o    the participant's  conviction of a felony, or commission of a criminal
          or other act that will probably cause  substantial  economic damage to
          Pacific Capital or substantial injury to its business reputation; or

     o    the order of a regulatory agency.

Change of Control
-----------------

Change of Control is defined as the occurrence of any of the following events:

     o    a "Change in the  Ownership"  of the  corporation  - defined under the
          regulations as the  acquisition by one person (or more than one person
          acting  as a  group)  of more  than  50% (or  such  higher  percentage
          designated in the plan) of the total fair market value or total voting
          power of a corporation;

     o    a change in "effective control" of the corporation - defined under the
          regulations as either (a) the  acquisition by one person (or more than

                                     Page 7

<PAGE>

          one person  acting as a group) of stock  possessing  more than 30% (or
          such higher  percentage  designated  in the plan) of the total  voting
          power of a corporation  during the 12-month  period ending on the date
          of the most recent  acquisition,  or (b) the replacement of a majority
          (or  such  higher portion  designated  in the plan)  of the members of
          the corporation's  board during any 12-month period by directors whose
          appointment  or election is not endorsed by a majority (or such higher
          portion) of the members of the board as constituted  immediately prior
          to the date of such appointment or election;

     o    a change in the ownership of a "substantial  portion" of the assets of
          the  corporation - defined under the regulations as the acquisition of
          the assets of a corporation with a total gross fair market value equal
          to or more than 40% (or such higher percentage designated in the plan)
          of the total gross fair market value of all assets of the  corporation
          determined immediately prior to such acquisition.

Change of Control Date
----------------------

The Change of Control Date is the earliest of:

     o    the date on which the Change of Control occurs;

     o    the date on which Pacific  Capital  executes an agreement  which would
          result in the  occurrence  of a Change of  Control

     o    the date on which the Board of Directors of Pacific Capital approves a
          transaction which, if completed,  would result in a Change of Control;
          or

     o    the date Pacific Capital fails to satisfy its obligations to have this
          Plan  assumed by any  successor  to Pacific  Capital  involved  in the
          Change of Control.

Code
----

Code means the Internal Revenue Code of 1986, as amended.

Determination
-------------

Determination.  An initial  determination  as to whether any  payments  would be
subject  to the  Excise  Tax shall be made at  Pacific  Capital's  expense by an
accounting firm selected by Pacific Capital (which firm may be Pacific Capital's
regular outside  auditors) (the  "Accountants").  The Accountants  shall provide
their determination (the "Determination"), together with supporting calculations
and  documentation,  to Pacific Capital and the participant within 30 days after
the date of the participant's Termination of Employment.  For purposes of making
the   calculations,   the  Accountants  may  make  reasonable   assumptions  and
approximations  concerning  applicable  taxes and may rely on  reasonable,  good
faith  interpretations  concerning the  application of Sections 280G and 4999 of
the Code.  Pacific  Capital and the  participant  shall furnish  information and
documents to the  Accountants as they may reasonably  request in order to make a
Determination.  Pacific  Capital shall bear all costs that the  Accountants  may
reasonably  incur in  connection  with  any  calculations  contemplated  by this
section.  If the  Accountants  determine  that no  Excise  Tax is  payable  by a
participant,  Pacific  Capital  shall  cause  the  Accountants  to  provide  the
participant an opinion that the Accountants have substantial authority under the
Code not to report an Excise Tax on the participant's federal income tax return.

                                     Page 8

<PAGE>

Dispute. The Participant and Pacific Capital shall have the right to dispute the
Determination  (the  "Dispute").  The  participant  and/or Pacific Capital shall
initiate the Dispute,  if at all, by  delivering  to the  Administrator  written
notice of the Dispute within 10 days after the delivery of the  Determination by
the  Accountants.  If a  written  notice  of  Dispute  is not  delivered  to the
Administrator within such 10-day period, it shall be conclusively  presumed that
there  is no  Dispute  and  the  Determination  shall  be  binding,  final,  and
conclusive  upon  the  participant  and  Pacific  Capital.  If  Pacific  Capital
initiates the Dispute,  they shall promptly deliver to the participant a copy of
the written notice delivered to the Administrator. Pacific Capital shall pay the
reasonable  attorney  fees,  costs,  and expenses  incurred in good faith by the
participant in connection with the resolution of any Dispute,  regardless of the
outcome of the Dispute.

Disability
----------

Disability  shall  have the same  meaning  as that term is  defined  in  Pacific
Capital's Long-Term Disability Plan.

Exchange Act
------------

Exchange Act means the Securities Exchange Act of 1934, as amended.

Good Reason
-----------

Good Reason shall mean the  occurrence of any of the following  events,  without
the  participant's  express  written  consent:

     o    A material diminution in the Participant's base compensation.

     o    A material  diminution  in the  Participant's  authority,  duties,  or
          responsibilities.

     o    A material diminution in the authority, duties, or responsibilities of
          the  supervisor  to  whom  the  Participant  is  required  to  report,
          including a requirement  that a service provider report to a corporate
          officer or  employee  instead of  reporting  directly  to the board of
          directors of a corporation (or similar  governing body with respect to
          an entity other than a corporation).

     o    A material diminution in the budget over which the Participant retains
          authority.

     o    A material change in the geographic  location at which the Participant
          must perform the services.

     o    Any other action or inaction that constitutes a material breach by the
          Company  of  the  agreement  under  which  the  Participant   provides
          services.

Notwithstanding  the  foregoing,  no event or condition  shall  constitute  Good
Reason unless the Participant provides notice to the Company of the existence of
the condition described in this Section within a period not to exceed 90 days of
the initial  existence  of the  condition,  upon the notice of which the Company
must be  provided  a period of at least 30 days  during  which it may remedy the
condition and not be required to pay severance.  Your continued employment shall
not constitute  your consent to, or a waiver of your rights with respect to, any
act or failure to act constituting Good Reason hereunder.

Governing Law
-------------

This  Plan  Document  shall be  governed  and  interpreted  in  accordance  with
California law.

                                     Page 9

<PAGE>

Incumbent Directors
-------------------

Incumbent  Directors  means  directors  of Pacific  Capital  who are elected (or
nominated  for  election)  to the  Board by the  affirmative  vote of at least a
majority of the Incumbent  Directors at the time of such election or nomination.
An  individual  who is  elected or  nominated  in  connection  with an actual or
threatened  Proxy  Contest  relating to the election of  directors  shall not be
considered an Incumbent Director.

Plan Year
---------

Plan Year means the period  beginning  January 1st and ending  December  31st of
each year.

Severance Window Period
-----------------------

The Severance Window Period is a period of 24 months  immediately  following the
Change of Control Date.

Severance Agreement and General Release
---------------------------------------

Each Plan  Participant  shall agree to a General  Release that is dependent upon
the executive  position of the Plan Participant and the corresponding  Severance
Payment as follows:

Executive Vice President:

A Severance  Agreement  and General  Release  which  shall  include,  but not be
limited  to, (i) a clause  providing  for the general  release of the Bank,  its
officers, directors, employees, agents, and insurers, (ii) a covenant precluding
the Participant,  for a period of twelve (12) months following the conclusion of
his/her  employment with the Bank, from soliciting or encouraging any person who
is an employee  of the Bank at the time the  Participant's  employment  with the
Bank  concludes,  or at any time  within  the  preceding  six (6)  months was an
employee of the Bank,  to leave their  employment  with the Bank or to otherwise
accept  employment with another  employer,  and (iii) a covenant  precluding the
Participant,  for a period of twelve (12) months  following  the  conclusion  of
his/her  employment  with the Bank,  from  requesting,  suggesting,  soliciting,
calling  upon,  or  inducing  any person who is then a client or customer of the
Bank to modify or curtail his/her /its business or banking relationship with the
Bank.

Senior Vice President:

A Severance  Agreement  and General  Release  which  shall  include,  but not be
limited  to, (i) a clause  providing  for the general  release of the Bank,  its
officers, directors, employees, agents, and insurers, (ii) a covenant precluding
the Participant,  for a period of twelve (12) months following the conclusion of
his/her  employment with the Bank, from soliciting or encouraging any person who
is an employee  of the Bank at the time the  Participant's  employment  with the
Bank  concludes,  or at any time  within  the  preceding  six (6)  months was an
employee of the Bank,  to leave their  employment  with the Bank or to otherwise
accept employment with another employer.

                                    Page 10

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