Document:

wolff-bocemploymentagree

EXECUTION COPY                AMENDED AND RESTATED EMPLOYMENT AGREEMENT  THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) dated as  of February 7, 2022, is by and among BANC OF CALIFORNIA, INC., a Maryland corporation (the  “Company”), the BANC OF CALIFORNIA, N.A., a national banking association (the “Bank” and  together with the Company, “Employer”) and JARED WOLFF (“Executive”).  WHEREAS, Employer and Executive entered into an Employment Agreement dated March 4, 2019 (the  “Prior Agreement”);  WHEREAS, Employer desires to continue to employ Executive, and Executive desires to continue to be  employed by Employer upon the terms and subject to the conditions set forth in this Agreement, effective  as of the Effective Date, as defined below; and  WHEREAS, the Employer and Executive are entering into this Agreement to amend and modify certain  provisions of the Prior Agreement.  NOW, THEREFORE, in consideration of the premises and mutual covenants contained in this Agreement,  the parties agree as follows:  1. Employment.  Employer agrees to employ Executive, and Executive accepts employment with  Employer, upon the terms and conditions set forth in this Agreement and this Agreement amends  and restates the Prior Agreement in its entirety.  2. Term.  The term of employment under this Agreement shall begin on March 1, 2022, or such earlier  date that Employer and Executive shall mutually agree (the “Effective Date”), and shall expire on  February 28, 2025, unless terminated sooner as provided in this Agreement or unless extended as  provided in the next sentence (the “Employment Period”).  Unless this Agreement is terminated  earlier, commencing on March 1, 2025, and on each March 1st on or after March 1, 2025, the  “Renewal Date”), the Employment Period shall be extended for one (1) additional year (a  “Renewal Term”), unless either party notifies the other party at least ninety (90) days prior to the  applicable Renewal Date that the Employment Period shall not be so extended; provided, however,  that in no event shall the Employment Period be extended beyond February 28, 2027, except by  written agreement of the parties.  3. Duties.  During the Employment Period:  (a) Executive shall be employed by Employer as President & Chief Executive Officer of the  Company and the Bank, with the authority, duties and responsibilities as are customarily  assigned to this position.  Executive shall report directly to the Board of Directors of the  Company (the “Board”), and in his capacity as President and CEO of the Bank, to the  Board of Directors of the Bank.  During the Employment Period, Executive shall serve on  the Board without additional compensation, subject to election by the shareholders of the  Company, and shall also serve on the Board of Directors of the Bank as its Chairman.  

 

      2      (b) Executive shall devote his full business time, energy and skill to the business of Employer  (except for vacations and absences made necessary because of illness), and to the  promotion of Employer’s best interests.  Executive agrees to devote the time necessary to  discharge faithfully and efficiently his responsibilities under this Agreement.   Notwithstanding anything to the contrary in this Agreement, Executive may devote  reasonable time to (i) supervision of his personal investments, (ii) to activities involving  professional, charitable, educational, religious and similar types of organizations, (iii) to  speaking engagements, and (iv) to similar activities, to the extent that those other activities  do not interfere with the performance of Executive’s duties under this Agreement, or  conflict in any way with the business or interests of Employer, and are in compliance with  Employer’s policies and procedures in effect from time to time applicable to employees  with respect to actual or potential conflicts of interest, including, without limitation, the  Code of Business Ethics and Conduct and the Company’s policies on Outside Business  Interests and Related Party Transactions.  (c) Executive’s primary office and place of employment shall be at the Company’s  headquarters, which for the initial twelve (12) months of Executive’s Employment Period,  unless otherwise agreed by the Board, shall be at the Company’s current headquarters in  Santa Ana, California.    (d) Executive represents and warrants that there are no current or prior employment  agreements between him and his current or former employers—including but not limited  to any employee code of conduct, noncompetition, nonsolicitation or nondisclosure  agreements—that would restrict or otherwise adversely affect his accepting employment  with Employer or performing his expected job duties.  4. Compensation.  During the Employment Period:  (a) Executive shall be paid a base salary (“Annual Base Salary”) as follows:  (i) From the Effective Date through February 28, 2023, at the rate of Eight Hundred  Seventy Five Thousand Dollars ($875,000) per annum;  (ii) After February 28, 2023, at the rate determined by the Compensation Committee  of the Board (the “Committee”); provided, however, that the Committee may not  reduce the rate of Annual Base Salary without Executive’s written consent.  The Annual Base Salary shall be payable in accordance with Employer’s normal payroll  practices (but not less frequently than monthly), as those practices may be determined from  time to time.  (b) Executive shall be eligible to receive an annual bonus payable in cash (“Annual Bonus”)  with respect to each fiscal year during the Employment Period, with an annual target bonus  opportunity equal to one hundred percent (100%) of Executive’s rate of Annual Base  Salary in effect when the Annual Bonus terms for the year are approved (the “Target  Bonus”).  The actual Annual Bonus earned may be between zero percent (0%) and one  hundred fifty percent (150%) of the Target Bonus, depending on the level of achievement  of applicable goals. The Annual Bonus may be based on a combination of individual and  Company-related performance objectives, each of which shall be determined in good faith  by the Committee after consultation with Executive.  Executive must remain employed  through the last day of the fiscal year to which the Annual Bonus relates to earn and be  entitled to payment of any Annual Bonus for that year.  Payment of the Annual Bonus will  

 

      3      be made at the same time as bonuses are paid to other Named Executive Officers following  the Committee’s determination and certification of the performance results following the  end of the fiscal year performance measurement period, but not later than March 15th of  the year following the end of the fiscal year performance measurement period.  (c) Reserved.  (d) All amounts provided by Employer to Executive or any affiliate thereof, whether under  this Agreement, the Prior Agreement or otherwise, will be subject to such deductions and  clawback (recovery) (i) as may be required to be made pursuant to law, government  regulation, order or stock exchange listing requirement, (ii) pursuant to any policy that  Employer has adopted or may adopt or (iii) by agreement with, or consent of, Executive.  (e) Executive shall be eligible to receive long-term equity incentive awards commensurate  with Executive’s position on the schedule applicable to long-term awards made generally  to Employer’s executive officers.  Such awards to Executive shall be granted annually or  on a periodic basis by the Committee, with a target long-term equity incentive award that  is expected to be based on an annual target grant amount that is one hundred ten percent  (110%) of Annual Base Salary at the current rate then in effect and performance based  awards shall not be greater than fifty percent (50%) of any such awards.  The Board may  exercise discretion to increase or decrease the annual long-term equity target grant amount  for any year based on its evaluation of Executive’s performance or other factors, but not  less than a target grant amount of 50% of Annual Base Salary.  5. Vacation and Other Paid Time Off.  Executive shall be entitled to paid time off in accordance  with Employer’s paid time off policy, on the same terms as apply to Employer’s other executive  officers, which paid time off shall not be less than four (4) weeks per calendar year, prorated for  partial calendar years.    6. Benefits.  (a) During the Employment Period, Executive and/or Executive’s family, as the case may be,  shall be eligible for participation in all benefits under all plans, practices, policies and  programs provided by Employer on a basis that is no less favorable than those generally  applicable or made available to executives of Employer.  Executive shall be eligible for  participation in fringe benefits and perquisite plans, practices, policies and programs  (including, without limitation, expense reimbursement plans, practices, policies and  programs, as well as supplemental executive disability insurance benefits and vehicle  policies or vehicle allowances) on a basis that is no less favorable than those generally  applicable or made available to executives of Employer.  (b) Employer shall either provide an automobile, lease or reimburse Executive for Executive’s  lease of an automobile for Executive’s use, including business use, on mutually acceptable  terms.  (c) Employer shall promptly reimburse (in accordance with reimbursement policies and  procedures of Employer then in effect for its senior executive officers) Executive for  Executive’s annual membership fees in social and professional organizations relevant to  the Bank and approved by the Committee; provided, however, that such reimbursement  shall not exceed Twenty-Five Thousand Dollars ($25,000) per annum, prorated for any  partial calendar year during the Employment Period.  

 

      4      (d) Employer shall promptly reimburse (in accordance with reimbursement policies and  procedures of Employer then in effect for its senior executive officers) Executive for  reasonable attorney fees incurred by Executive in connection with the review and  negotiation of this Agreement.  7. Termination.  (a) Death or Disability.  Executive’s employment shall terminate automatically upon  Executive’s death during the Employment Period.  If Employer determines in good faith  that the Disability of Executive has occurred during the Employment Period (pursuant to  the definition of Disability set forth below), it may provide Executive with written notice  in accordance with Section 24 of its intention to terminate Executive’s employment.  In  such event, to the extent permitted by applicable law, Executive’s employment with  Employer shall terminate effective on the thirtieth day after receipt of such notice by  Executive (the “Disability Effective Date”); provided that, within thirty days after such  receipt, Executive shall not have returned to full-time performance of Executive’s duties.   For purposes of this Agreement, “Disability” shall mean the absence of Executive from  Executive’s duties with Employer on a full-time basis for ninety (90) consecutive days, or  a total of one hundred and eighty (180) days in any twelve-month period, as a result of  incapacity due to mental or physical illness which is determined to be total and permanent  by a physician selected by Employer or its insurers and acceptable to Executive or  Executive’s legal representative.  (b) With or Without Cause.  Employer may terminate Executive’s employment during the  Employment Period with or without Cause at any time upon notice to Executive.  For  purposes of this Agreement, “Cause” means Executive’s (i) personal dishonesty, gross  negligence, willful misconduct, fraud or breach of fiduciary duty, in each case in  connection with the performance of services on behalf of Employer or otherwise in  connection with Executive’s position with Employer; (ii) willful failure to perform  Executive’s duties for or on behalf of Employer or its affiliates, or to follow, or cooperate  in carrying out, any lawful and reasonable material written policy adopted by Employer  (including any written code of conduct or standards of ethics applicable to employees of  Employer) or any reasonable directive from the Board or the Board of Directors of the  Bank; (iii) continued and willful neglect of Executive’s duties for or on behalf of Employer  or its affiliates; (iv) the taking of, or omission to take, any action that is materially  disruptive of the business or affairs of Employer, other than actions taken or omitted in  good faith consistent with the best interests of Employer and its affiliates; (v) material  breach of any provision of this Agreement; (vi) intentional violation of any material law,  rule, regulation or judicial or administrative order to which Employer or any affiliate is  subject or of any formal administrative action entered into by Employer or any affiliate, or  imposed upon any of them; (vii) conduct that results in Executive’s suspension or  temporary or permanent prohibition or removal from participation in the conduct of the  affairs of Employer or any affiliate, or the assessment of any material civil money penalty  against Executive, in any such case pursuant to the rules and regulations of any applicable  regulatory agency having jurisdiction over Employer or its affiliates, or the issuance of any  permanent injunction or similar remedy by a court having jurisdiction over Employer  preventing Executive from executing or performing his material duties under this  Agreement; or (viii) conviction of, or plea of nolo contendere to, a felony or any other  crime involving moral turpitude, whether or not in connection with the business and affairs  of Employer or its affiliates; provided, however, that Executive shall have thirty (30) days  to cure any of the events or occurrences described in the immediately preceding clauses, to  

 

      5      the extent such events or occurrences are curable.  For purposes of this Section 8(b), no act  or failure to act, on the part of Executive, shall be considered “willful” unless it is done, or  omitted to be done, by Executive in bad faith or without reasonable belief that Executive’s  action or omission was in the best interests of Employer.  (c) With Good Reason.  Executive’s employment may be terminated by Executive with Good  Reason.  For purposes of this Agreement, “Good Reason” shall mean, in the absence of a  written consent of Executive, any of the following:  (i) a material diminution in Executive’s title, authority, reporting relationships, duties  or responsibilities (other than (aa) removal or failure to re-elect Executive as  Chairman of the Board of Directors of the Bank, or (bb) pursuant to Section  7(d)(ii)), including, without limitation, failure of Executive to be retained or  appointed (as the case may be) as President and Chief Executive Officer of the  ultimate publicly traded parent entity following a Change of Control;   (ii) a material breach of this Agreement by Employer (other than a breach of Section  4 resulting from a reduction in compensation or benefits that is required by a  regulatory authority or applicable law);   (iii) any requirement by Employer that Executive’s services be rendered primarily at a  location other than in the Orange County or Los Angeles metropolitan areas; or   (iv) Non-renewal of the Agreement by the Employer upon expiration of the  employment period.  To invoke a termination with Good Reason, Executive shall provide written notice to  Employer of the existence of one or more of the conditions described in clauses (i) through  (iv) within ninety (90) days following the initial existence of such condition or conditions,  and Employer shall have thirty (30) days following receipt of such written notice (the  “Cure Period”) during which it may remedy the condition if such condition is reasonably  subject to cure.  In the event that Employer fails to remedy the condition constituting Good  Reason during the applicable Cure Period, Executive’s “separation from service” (within  the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the  “Code”)) must occur, if at all, within sixty (60) days following such Cure Period in order  for such termination as a result of such condition to constitute a termination with Good  Reason.  (d) Without Good Reason.  Executive’s employment may be terminated by Executive without  Good Reason at any time upon sixty (60) days’ prior written notice to Employer.  (i) The period commencing on the date on which Employer receives notice of  Executive’s termination of his employment without Good Reason (the “Notice  Date”) and ending on the earlier of (i) sixty (60) days following the Notice Date  and (ii) such earlier date as designated by Employer shall be referred to as the  “Notice Period.”  (ii) During the Notice Period, Employer:  (1) shall continue to pay Executive the Annual Base Salary then in effect, in  accordance with Employer’s regular payroll practices and allow Executive  

 

      6      to participate in Employer’s benefit plans to the extent permitted by such  plans and applicable law.  (2) reserves the right to (i) change or remove any of Executive’s duties, (ii)  require Executive to remain away from Employer’s premises, and/or (iii)  take such other action as determined by Employer to aid and assist in the  transition process associated with Executive’s departure.  (3) may waive or terminate the Notice Period at any time and for any reason  or for no reason, in which case the Date of Termination (as defined below)  shall be the date on which Employer notifies Executive of such waiver or  termination.  (e) Upon Expiration of Employment Period.  Executive’s employment shall terminate  automatically upon expiration of the Employment Period if either party gives notice of  non-renewal as set forth in Section 2.  For purposes of clarity, if the Employer gives notice  of non-renewal upon expiration of the Employment Period, it will constitute a termination  by the Employer Without Cause that entitles Executive to Severance Benefits under  Section 8(b).  (f) Notice of Termination.  Any termination by Employer or Executive shall be communicated  by Notice of Termination to the other party to this Agreement given in accordance with  Section 24.  For purposes of this Agreement, a “Notice of Termination” means a written  notice that (i) indicates the specific termination provision in this Agreement relied upon,  (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances  claimed to provide a basis for termination of Executive’s employment under the provision  so indicated, and (iii) if the Date of Termination is other than the date of receipt of such  notice, specifies the Date of Termination (which date shall be not more than thirty (30)  days after the giving of such notice in the case of a termination with Cause or with Good  Reason).  The failure by Executive or Employer to set forth in the Notice of Termination  any fact or circumstance which contributes to a showing of Good Reason or Cause, as  applicable, shall not waive any right of Executive or Employer, respectively, hereunder or  preclude Executive or Employer, respectively, from asserting such fact or circumstance in  enforcing Executive’s or Employer’s rights hereunder.  (g) Date of Termination.  For purposes of this Agreement, “Date of Termination” means (i)  if Executive’s employment is terminated by Employer for Cause, or by Executive with  Good Reason, the date of receipt of the Notice of Termination (provided that if the  employment is terminated by Employer for Cause, the Date of Termination shall not be  before the expiration of the cure period  in Section 7(b)) or any later date specified therein  within thirty (30) days of such notice, as the case may be; (ii) if Executive’s employment  is terminated by Employer without Cause, the Date of Termination shall be the date on  which Employer notifies Executive of such termination; (iii) if Executive’s employment is  terminated by reason of death or Disability, the Date of Termination shall be the date of  death of Executive or the Disability Effective Date, as the case may be, and (iv) if  Executive’s employment is terminated by Executive without Good Reason, the Date of  Termination shall be the earlier of sixty (60) days following the Notice Date and such  earlier date as designated by Employer.  Upon Executive’s Date of Termination, Executive  shall, without further action of Employer or Executive, automatically cease to be an  employee, officer, director, and service provider of the Company, the Bank, the respective  affiliates of the Company and the Bank, the Board, and the Board of Directors of the Bank.  

 

      7      8. Obligations of Employer and Executive upon Termination of Employment.  (a) In the event of the termination of Executive’s employment for any reason, Executive shall  be entitled to any Accrued Obligations.  “Accrued Obligations” means (i) any base salary  that Executive has earned but not been paid during or prior to the Date of Termination,  which, if Executive’s employment is terminated by Executive for any reason, shall be paid  on the later of the Date of Termination or seventy-two (72) hours after the notice of  termination is given, and if Executive’s employment is terminated by Employer, shall be  paid on the Date of Termination, (ii) Executive’s Annual Bonus earned for the fiscal year  immediately preceding the fiscal year in which the Date of Termination occurs to the extent  such bonus has not been paid as of the Date of Termination (which shall be paid in the  ordinary course when annual bonuses are paid to Employer’s other executive officers); (iii)  any business expenses that are reimbursable under Section 6 that were incurred by  Executive as of the Date of Termination but have not been reimbursed on the Date of  Termination, subject to the submission of any required substantiation and documentation  and paid in the ordinary course consistent with past practice, and (iv) any payments or  benefits to which Executive or his beneficiary or estate is entitled under the terms of any  applicable Executive benefit plan (which shall be paid or provided pursuant to the terms of  the applicable plan, agreement or policy).  (b) In the event that, during the term of this Agreement, Employer terminates Executive’s  employment without Cause, the Employer gives notice of non-renewal upon expiration of  the Employment Period or Executive resigns with Good Reason, subject to Section 8(c),  Executive shall be entitled to the following severance benefits (the “Severance Benefits”):  (i) Severance pay in an amount equal to the sum of (A) one hundred percent (100%)  of Executive’s (A) Annual Base Salary in effect on the Date of Termination, and  (B) fifty percent (50%) of Executive’s Target Bonus in effect on the Date of  Termination (the “Severance Amount”) payable in lump sum on the first payroll  date coincident with or next following the sixtieth (60th) calendar day following  Executive’s Date of Termination;   (ii) For the twelve (12) month period following the Date of Termination, provided  Executive has elected group health plan continuation coverage (“COBRA”) under  an Employer-provided group health plan, Employer shall pay to Executive in equal  monthly installments, an amount equal to the monthly COBRA premium, less an  amount equal to the portion of the monthly health-care premium Executive was  paying prior to the Date of Termination;   (iii) Executive’s outstanding Inducement Awards (as defined in the Prior Agreement)  shall vest and become free of all restrictions; and  (iv) Notwithstanding the foregoing, if Employer terminates Executive’s employment  without Cause, the Employer gives notice of non-renewal upon expiration of the  Employment Period or Executive resigns with Good Reason, and the Date of  Termination occurs within two years immediately following a “Change of  Control” (as defined in Exhibit A), subject to Section 8(c), (A) the Severance  Amount will be equal to 300% of the sum of Executive’s Annual Base Salary and  actual bonus (or expected actual bonus as determined by the Committee,  whichever is higher) in effect on the Date of Termination (payable as provided in  subparagraph (b)(i) above); (B) Executive’s outstanding equity-based awards shall  vest and become free of restrictions immediately (with any performance-based  

 

      8      equity awards vesting at “target” performance levels unless the applicable  performance goals are determinable as of the Date of Termination and actual  performance exceeds “target” performance levels, in which case such  performance- based awards will vest based on the actual level of achievement  determined as of the Date of Termination); and (C) the period in Section 8(b)(ii)  following the Date of Termination during which Employer shall pay to Executive  in equal monthly installments, an amount equal to the monthly COBRA premium,  less an amount equal to the portion of the monthly health-care premium Executive  was paying prior to the Date of Termination will be eighteen (18) months.   (c) Any Severance Benefits pursuant to Section 8(b) is subject to and conditioned upon  Executive signing and delivering to Employer a general release and waiver (in the form set  forth as Exhibit B to this Agreement, as amended to conform to any changes in applicable  law after the Effective date) within twenty one (21) days following the Date of Termination  (or 45 days following the Date of Termination if Executive’s termination is part of a group  termination as set forth in 29 U.S.C. §626(f)(1)(F)(ii)), and not revoking the general release  within any applicable revocation period.  (d) If any payment or benefit received or to be received by Executive pursuant to this  Agreement or otherwise (“Payments”) would (i) constitute a “parachute payment”  within the meaning of Section 280G of the Code, and (ii) but for this subsection (d), be  subject to the excise tax imposed by Section 4999 of the Code, any successor provisions,  or any comparable federal, state, local or foreign excise tax (“Excise Tax”), then such  Payments shall be either (A) provided in full pursuant to the terms of this Agreement or  any other applicable agreement, or (B) provided as to such lesser extent which would result  in no portion of such Payments being subject to the Excise Tax, whichever of the foregoing  amounts, taking into account the applicable federal, state, local and foreign income,  employment and other taxes and the Excise Tax, results in the receipt by Executive, on an  after-tax basis, of the greatest amount of payments and benefits, notwithstanding that all or  some portion of such Payments may be subject to the Excise Tax.  If a reduction is required  pursuant to section, the reduction shall be made as follows:  (x) if none of the parachute  payments constitute non-qualified deferred compensation (within the meaning of Section  409A of the Code), then the reduction shall occur in the manner Executive elects in writing,  and (y) if any parachute payments constitute non-qualified deferred compensation or if  Executive fails to elect an order, then the parachute payments to be reduced will be  determined by the Accounting Firm (defined below) in a manner which has the least  economic cost to Executive and, to the extent the economic cost is equivalent, will be  reduced in the inverse order of when payment would have been made to Executive, until  the reduction is achieved.  Any determination required under this Section shall be made by  independent accounting firm designated by the Company (the “Accounting Firm”), whose  determination shall be conclusive and binding upon Executive and Employer for all  purposes.  For purposes of making the calculations required under this section, the  Accounting Firm 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; provided that the Accounting Firm  shall assume that Executive pays all taxes at the highest marginal rate.  Employer and  Executive shall furnish to the Accounting Firm such information and documents as the  Accounting Firm may reasonably request in order to make a determination under this  section.  Employer will bear all costs that the Accounting Firm may reasonably incur in  connection with any calculations contemplated by this section.  

 

      9      (e) Notwithstanding any other provision of this Agreement to the contrary, any payments made  to Executive pursuant to this Agreement, or otherwise, are subject to and conditioned upon  their compliance with 12 U.S.C. § 1828(k) and any regulations promulgated thereunder,  including 12 C.F.R. Part 359.  (f) As of the Date of Termination, Executive shall resign from all positions held with  Employer, including as a member of the Board of the Company and the Bank, and as a  director, officer, trustee, general partner or other capacity in which he is serving with any  entity at the request of Employer or by reason of his service for Employer.  (g) From and after the Date of Termination, Executive agrees to cooperate fully with  Employer’s reasonable requests in connection with any existing or future investigations,  claims, litigation, audits or similar actions involving Employer or its affiliates, whether  administrative, civil or criminal in nature, in which and to the extent Employer reasonably  deems Executive’s cooperation necessary.  Employer shall pay all reasonable, documented  travel and other expenses incurred by Executive in connection with providing his  cooperation if the expenses and costs are approved in advance in writing by Employer.   Executive also agrees to respond to requests from Employer and its counsel for information  needed to prepare such operational, financial and other reports, filings and documents that  relate to the time period during which Executive provided services to Employer or to the  termination of his services.  To the extent that Executive’s cooperation under this Section  8(g) requires more than a de minimis amount of time, Employer and Executive shall  negotiate mutually agreeable remuneration for such cooperation.  9. Nonsolicitation.  Unless otherwise agreed in writing, during the term of this Agreement, and for a  period of twenty-four (24) months following the Date of Termination, Executive shall not, and shall  not assist any other person to (i) solicit for hiring any employee of Employer or any of its affiliates  (or any individual who was such an employee at any time within the twelve (12) month period  preceding such solicitation), or seek to persuade any employee of Employer or any of its affiliates  (or any individual who was such an employee at any time within the twelve (12) month period  preceding such action) to discontinue employment, or (ii) solicit or encourage any independent  contractor providing services to Employer or any of its affiliates to terminate or diminish its  relationship with them.  10. Nondisclosure of Confidential Information.  (a) Executive acknowledges that Employer and its affiliates may disclose confidential  information to Executive during the Employment Term to enable him to perform his duties  hereunder.  Executive agrees that, except as required by law, regulatory directive or judicial  order or as permitted in Section 10(c) below, he will not, without the prior written consent  of Employer, during the Employment Term or at any time thereafter, disclose or permit to  be disclosed to any third party by any method whatsoever any of the confidential  information of Employer or any of its affiliates.  For purposes of this Agreement,  “confidential information” shall include, but not be limited to, any and all records, notes,  memoranda, data, ideas, processes, methods, techniques, systems, formulas, patents,  models, devices, programs, computer software, writings, research, personnel information,  customer information, or financial information of Employer or any of its affiliates, plans,  or any other information of whatever nature in the possession or control of Employer which  has not been published or disclosed to the general public (other than by acts of Executive  or his agents in violation of this Agreement), or which gives to Employer or any of its  affiliates an opportunity to obtain an advantage over competitors who do not know of or  

 

      10      use it.  The foregoing covenants will not prohibit Executive from disclosing confidential  or other information to other employees of Employer or to third parties to the extent that  such disclosure is necessary to the performance of his duties under this Agreement.  (b) Executive further agrees that if his employment hereunder is terminated for any reason, he  will not take originals or copies of any and all records, papers, programs, computer  software and documents and all matter of whatever nature containing secret or confidential  information of Employer or any of its affiliates.  (c) Notwithstanding anything to the contrary in this Employment Agreement, nothing in this  Employment Agreement, including this Section 10, is intended to prohibit Executive and  Executive is not prohibited from reporting possible violations of law to, filing charges with,  or making disclosures protected under the whistleblower provisions of U.S. federal law or  regulation, or participating in investigations of U.S. federal law or regulation by the U.S.  Securities and Exchange Commission, National Labor Relations Board, Equal  Employment Opportunity Commission, the Occupational Safety and Health  Administration, the U.S. Department of Justice, the U.S. Congress, any U.S. agency  Inspector General or any self-regulatory agencies such as the SEC or federal, state or local  governmental agencies (collectively, “Government Agencies,” and each a “Government  Agency”).  Accordingly, Executive does not need the prior authorization of the Company  to make any such reports or disclosures or otherwise communicate with Government  Agencies and is not required to notify Employer that he has engaged in any such  communications or made any such reports or disclosures.  In addition, Executive is hereby  notified that 18 U.S.C. § 1833(b) states as follows:  “An individual shall not be held criminally or civilly liable under any  Federal or State trade secret law for the disclosure of a trade secret  that—(A) is made—(i) in confidence to a Federal, State, or local  government official, either directly or indirectly, or to an attorney; and  (ii) solely for the purpose of reporting or investigating a suspected  violation of law; or (B) is made in a complaint or other document filed  in a lawsuit or other proceeding, if such filing is made under seal.”  Accordingly, notwithstanding anything to the contrary in this Agreement, Executive  understands that he has the right to disclose in confidence trade secrets to federal, state,  and local government officials, or to an attorney, for the sole purpose of reporting or  investigating a suspected violation of law.  Executive understands that he also has the right  to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if  the filing is made under seal and protected from public disclosure.  Executive understands  and acknowledges that nothing in this Agreement is intended to conflict with 18 U.S.C. §  1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18  U.S.C. § 1833(b).  11. Intellectual Property.  Executive agrees promptly to reduce to writing and to disclose and assign,  and hereby does assign, to Employer, its subsidiaries, successors, assigns and nominees, all  inventions, discoveries, improvements, copyrightable material, trademarks, programs, computer  software and ideas concerning the same, capable of use in connection with the business of Employer  or any of its affiliates, which Executive may make or conceive, either solely or jointly with others,  during the period of his employment by Employer, its subsidiaries or successors.  Executive agrees,  at Employer’s expense, that upon a request by Employer, to execute, acknowledge and deliver to  Employer all such papers, including applications for patents, applications for copyright and  

 

      11      trademark registrations, and assignments thereof, as may be necessary, and at all times to assist  Employer, its parent, subsidiaries, successors, assigns and nominees in every proper way to patent  or register said programs, computer software, ideas, inventions, discoveries, improvements,  copyrightable material or trademarks in any and all countries and to vest title thereto in Employer,  its parent, subsidiaries, successors, assigns or nominees.  Upon a request by Employer, Executive  will promptly report to Employer all discoveries, inventions or improvements of whatsoever nature  conceived or made by him at any time he was employed by Employer, its parent, subsidiaries or  successors.  All such discoveries, inventions and improvements which are applicable in any way to  Employer’s business shall be the sole and exclusive property of Employer.  12. Additional Remedies.  Executive recognizes that his services under this Agreement are of a  personal, special, unique and extraordinary character and irreparable injury will result to Employer  and to its business and properties in the event of any breach by Executive of any of the provisions  of Sections 9, 10 or 11, and that Executive’s continued employment is predicated on the  commitments undertaken by him pursuant to those Sections.  In the event of any breach of any of  Executive’s commitments pursuant to Sections 9, 10 or 11, Employer shall be entitled, in addition  to any other remedies and damages available, to injunctive relief to restrain the violation of such  commitments by Executive or by any person or persons acting for or with Executive in any capacity  whatsoever.  13. Section 409A.  (a) Notwithstanding anything to the contrary in this Agreement, if at the time of Executive’s  termination of employment, Executive is a “specified employee” within the meaning of  Section 409A of the Code and the regulations and guidance of general applicability issued  thereunder (“Section 409A”), any and all amounts payable under this Agreement that  constitute “nonqualified deferred compensation” payable due to a “separation from  service” (as those terms are used in Section 409A) and would (but for this provision) be  payable within six (6) months following the date of termination, shall instead be paid on  the next business day following the expiration of such six (6)-month period or, if earlier,  upon Executive’s death, in each case, with interest from the date on which payment would  otherwise have been made, calculated at the applicable federal rate provided under Section  7872(f)(2)(A) of the Code.  If Executive receives compensation under Section 9 that can  in whole or in part be treated as paid under a “separation pay plan” described in Treasury  Regulations Section 1.409A-1(b)(9)(iii) or as a “short-term deferral” described in  Treasury Regulation Section 1.409A-1(b)(4), then, to the extent permitted under Section  409A, such compensation shall be treated accordingly.  (b) For purposes of Section 9, all references to “termination of employment” and correlative  phrases shall be construed to require a “separation from service” (as defined in Treasury  Regulations Section 1.409A-1(h) after giving effect to the presumptions contained therein).  (c) Each payment made under this Agreement shall be treated as a separate payment and the  right to a series of installment payments under this Agreement shall be treated as a right to  a series of separate payments.  (d) Any amount that Executive is entitled to be reimbursed or to have paid on his behalf under  this Agreement that would constitute nonqualified deferred compensation subject to  Section 409A shall be subject to the following additional rules:  (i) no reimbursement of  any such expense shall affect Executive’s right to reimbursement of any such expense in  any other taxable year; (ii) reimbursement of the expense shall be made, if at all, promptly,  but not later than the end of the calendar year following the calendar year in which the  

 

      12      expense was incurred; and (iii) the right to reimbursement shall not be subject to liquidation  or exchange for any other benefit.  (e) It is intended that the terms of this Agreement comply with Section 409A, or an exemption  therefrom, and the terms of this Agreement will be interpreted accordingly; provided,  however, that Employer and its executives, officers, directors, agents and representatives  (including, without limitation, legal counsel) will not have any liability to Executive or any  related party with respect to any taxes, penalties, interest or other costs or expenses  Executive or any related party may incur with respect to or as a result of Section 409A or  for damages for failing to comply with Section 409A.  14. Adjustments to Comply with Final Interagency Guidance on Sound Incentive Compensation  Policies.  Notwithstanding anything herein to the contrary, the compensation or benefits provided  under this Agreement are subject to modification, as necessary to comply with requirements  imposed by the Board, or the Board of Directors of the Bank, to comply with the “Final Interagency  Guidance on Sound Incentive Compensation Policies” issued on an interagency basis by the Federal  Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance  Corporation and the Office of Thrift Supervision, effective June 25, 2010, or any amendment,  modification or supplement thereto, which shall be deemed to include, without limitation, any rules  adopted pursuant to Section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection  Act.  15. Non-disparagement.  During and for two years after the Employment Period:  (a) Executive agrees to refrain from making any statements about Employer or its officers or  directors that would disparage, or reflect unfavorably upon the image or reputation of the  Employer or any such officer or director;  (b) Employer shall direct its officers and directors to refrain from making any statements about  Executive that would disparage, or reflect unfavorably upon the image or reputation of  Executive; provided, however, that the foregoing shall not prohibit Employer from  complying with its policies regarding public statements with respect to Employer, or  otherwise complying with applicable law; and  (c) Nothing in this Agreement or elsewhere shall prohibit (i) honest and good faith reporting  by Executive to Employer, (ii) honest and good faith reporting by Executive or Employer  to law enforcement authorities, or (iii) compliance with applicable law.  16. Provisions Required By Law.  Notwithstanding anything herein to the contrary, any provisions  that are now or are in the future required by applicable law, rule, regulation or regulatory guidance  or policy of general applicability to be included in this Agreement that are not expressly stated  herein shall be deemed to be a part of this Agreement as fully as if such provisions were expressly  stated herein.  17. No Duplication of Employer Obligations.  With respect to any payments or other compensation  to be provided hereunder by Employer, the provision of such payments or other compensation by  any subsidiary or affiliate of the Company shall be deemed to reduce, to the same extent, the  obligation of the Company to provide such payments or other compensation, and vice versa.  18. Assignment; Benefit.  No party shall have the right to assign this Agreement or any rights or  obligations hereunder without the consent of the other party; provided, however, that the Company  may assign its rights and obligations hereunder (i) to any entity controlled by, under the control of,  

 

      13      or under common control with, the Company (as long as such entity is no less capable of fulfilling  the obligations of Employer hereunder), or (ii) to any successor to Employer upon any liquidation,  dissolution or winding up of Employer, upon any merger or consolidation of Employer or upon any  sale of all or substantially all of the assets of Employer (as long as such successor is capable of  fulfilling the obligations of Employer hereunder).  The Bank and the Company’s other subsidiaries  shall be deemed to be beneficiaries of this Agreement  19. Waiver.  Failure of any party hereto at any time to require performance by any other party of any  provision of this Agreement shall in no way affect the rights of such first party to require  performance of that provision, and any waiver by any party hereto of any provision of this  Agreement shall not be construed as a waiver of any continuing or succeeding breach of such  provision, a waiver of the provision itself, or a waiver of any rights under this Agreement.  20. Severability.  If any clause, phrase, provision or portion of this Agreement or the application  thereof to any person or circumstance shall be invalid or unenforceable under any applicable law,  such event shall not affect or render invalid or unenforceable the remainder of this Agreement and  shall not affect the application of any clause, provision or portion hereof to other persons or  circumstances.  21. Benefits.  The provisions of this Agreement shall inure to the benefit of Employer, its successors  and assigns, and shall be binding upon Employer and Executive, its and his heirs, personal  representatives and successors, including, without limitation, Executive’s estate and the executors,  administrators or trustees of such estate.  22. Governing Law.  To the extent not governed by the federal laws of the United States of America,  this Agreement shall be construed and enforced in accordance with the laws of the State of  California.  23. Arbitration.  Executive agrees to sign and be bound by the terms of the Arbitration Agreement,  which is attached as Exhibit C.  24. Notices.  All notices, requests, demands and other communications in connection with this  Agreement shall be made in writing and shall be deemed to have been given when delivered by  hand or two (2) business days after mailing at any general or branch United States Post Office, by  registered or certified mail postage prepaid, addressed as follows, or to such other address as shall  have been designated in writing by the addressee:  If to Employer:  Banc of California, Inc.  3 MacArthur Place  Santa Ana, California 92707  Attention: General Counsel  If to Executive:  At Executive’s last address in the records of Employer.  25. Entire Agreement.  This Agreement sets forth the entire understanding of the parties and  supersedes all prior agreements, arrangements, and communications, whether oral or written,  pertaining to the subject matter hereof, and this Agreement shall not be modified or amended except  by written agreement of Employer and Executive.  

 

      14      26. Captions.  The headings and captions hereof are for convenience only and shall not affect the  construction of this Agreement.  27. Counterparts.  This Agreement may be executed in multiple counterparts, each of which shall be  deemed an original and all of which shall constitute but one and the same instrument.  28. Construction.  Employer and Executive acknowledge that this Agreement was the result of arms- length negotiations between sophisticated parties, each represented by legal counsel.  Each and  every provision of this Agreement shall be construed as though both parties participated equally in  the drafting of same, and any rule of construction that a document shall be construed against the  drafting party shall not be applicable to this Agreement.  29. Survival.  The obligations contained in this Agreement shall survive the termination of Executive’s  employment with Employer or expiration of this Agreement as necessary to carry out the intentions  of the parties as described herein.  30. Tax Withholding.  Employer shall have the right and power to deduct from all payments or  benefits provided pursuant to this Agreement (and/or require Executive to remit to Employer or  any subsidiary or affiliate thereof promptly upon notification) the amount required to satisfy any  federal, state, local or other tax withholding obligations required by law to be withheld.      (Signature page to follow)     

 

      15        IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first set forth above.    BANC OF CALIFORNIA, INC.  By: /s/ Robert Sznewajs   Name: Robert Sznewajs  Title: Chairman of the Board  Date:   February 8, 2022     BANC OF CALIFORNIA, N.A.  By: /s/ Robert Sznewajs   Name: Robert Sznewajs  Title: Director  Date:   February 8, 2022     EXECUTIVE  /s/ Jared Wolff    Jared Wolff  Date:  February 7, 2022       

 

      16      EXHIBIT A  DEFINITION OF CHANGE OF CONTROL  For the purposes of this Agreement “Change of Control” means:  (a)  Any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities  Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) becomes the beneficial  owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more  of either (i) the then-outstanding shares of common stock of the Company (the “Outstanding  Company Common Stock”) or (ii) the combined voting power of the then-outstanding voting  securities of the Company entitled to vote generally in the election of directors (the “Outstanding  Company Voting Securities”); provided, however, that, for purposes hereof, the following  acquisitions shall not constitute a Change of Control: (A) any acquisition directly from the  Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan  (or related trust) sponsored or maintained by the Company or any company affiliated with the  Company, or (D) any acquisition pursuant to a transaction that complies with clauses (c)(i), (c)(ii)  and (c)(iii) below;  (b)  Individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for  any reason to constitute at least a majority of the Board; provided, however, that any individual  becoming a director subsequent to the Effective Date whose election, or nomination for election by  the Company’s stockholders, was approved by a vote of at least a majority of the directors then  comprising the Incumbent Board shall be considered as though such individual was a member of  the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption  of office occurs as a result of an actual or threatened election contest with respect to the election or  removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf  of a Person other than the Board;  (c)  Consummation of a reorganization, merger, statutory share exchange or consolidation or similar  transaction involving the Company or any of its subsidiaries, a sale or other disposition of all or  substantially all of the assets of the Company, or the acquisition of assets or stock of another entity  by the Company or any of its subsidiaries (each, a “Business Combination”), in each case, unless,  following such Business Combination, (i) all or substantially all of the individuals and entities that  were the beneficial owners of the Outstanding Company Common Stock and the Outstanding  Company Voting Securities immediately prior to such Business Combination beneficially own,  directly or indirectly, greater than 50% of the then-outstanding shares of common stock (or, for a  non-corporate entity, equivalent securities) and the combined voting power of the then-outstanding  voting securities entitled to vote generally in the election of directors (or, for a non-corporate entity,  equivalent governing body), as the case may be, of the entity resulting from such Business  Combination (including, without limitation, an entity that, as a result of such transaction, owns the  Company or all or substantially all of the Company’s assets either directly or through one or more  subsidiaries) in substantially the same proportions as their ownership immediately prior to such  Business Combination of the Outstanding Company Common Stock and the Outstanding Company  Voting Securities, as the case may be, (ii) no Person (excluding any corporation resulting from such  Business Combination or any employee benefit plan (or related trust) of the Company or such  corporation resulting from such Business Combination) beneficially owns, directly or indirectly,  30% or more of, respectively, the then-outstanding shares of common stock of the corporation  resulting from such Business Combination or the combined voting power of the then-outstanding  voting securities of such corporation, except to the extent that such ownership existed prior to the  Business Combination, and (iii) at least a majority of the members of the board of directors (or, for  

 

      17      a non-corporate entity, equivalent governing body) of the entity resulting from such Business  Combination were members of the Incumbent Board at the time of the execution of the initial  agreement or of the action of the Board providing for such Business Combination; or  (d)  Approval by the stockholders of the Company of a complete liquidation or dissolution of the  Company.     

 

      18      EXHIBIT B  GENERAL RELEASE  [Subject to modification to conform with changes in applicable law or regulations after the Execution  Date]  SEPARATION AGREEMENT AND GENERAL RELEASE  BANC OF CALIFORNIA, INC., a Maryland corporation (the “Company”), the BANC OF  CALIFORNIA, N.A., a national banking association (the “Bank,” and together with the Company,  “Employer”) and JARED WOLFF (“Executive”) (collectively the “Parties”) enter into this Separation  Agreement and General Release (“General Release”) on the following terms:  WHEREAS, Executive was employed by Employer pursuant to an amended and restated employment  agreement entered into by and between Executive and Employer dated as of _________, 2022 (the  “Employment Agreement”).  Capitalized terms used but not defined herein shall have the meaning set  forth in the Employment Agreement; and  WHEREAS, the Date of Termination of Executive’s employment with Employer was  _______________________, and Executive acknowledges that regardless of signing this General Release,  he has received his final paycheck for all wages earned through the Date of Termination, except for any  payments which, pursuant to the terms of the Employment Agreement, are not yet due to be paid;  NOW, THEREFORE, in consideration of the premises and mutual covenants contained in this General  Release, the Parties agree as follows:  1. Subject to Executive’s compliance with his promises and agreements contained in this General  Release and provided Executive does not revoke this Agreement, Employer shall provide Executive  with the Severance Benefits set forth in Section 8(b) of the Employment Agreement.  2. In consideration of the payments and benefits to which Executive is entitled under this General  Release, Executive for himself, his heirs, administrators, representatives, executors, successors, and  assigns (collectively “Releasors”) does hereby irrevocably and unconditionally release, acquit and  forever discharge the Company, the Bank, and their respective parents, subsidiaries, affiliates and  divisions (the “Affiliated Entities”) and their respective predecessors and successors and their  respective, current and former, trustees, officers, directors, partners, shareholders, agents,  employees, attorneys, consultants, independent contractors, and representatives, including, without  limitation, all persons acting by, through, under, or in concert with any of them (collectively,  “Releasees”), and each of them from any and all charges, complaints, claims, liabilities,  obligations, promises, agreements, controversies, damages, remedies, actions, causes of action,  suits, rights, demands, costs, losses, debts, and expenses (including attorneys’ fees and costs) of  any nature whatsoever, known or unknown, whether in law or equity and whether arising under  federal, state, or local law (“Claims”), including without limitation, Claims for personal injury;  Claims for breach of any implied or express contract or covenant; Claims for promissory estoppel;  Claims for failure to pay wages, benefits, vacation pay, severance pay, attorneys’ fees, or any  compensation of any sort; Claims for failure to grant equity or allow equity to vest; Claims for  wrongful termination, public policy violations, defamation, interference with contract or  prospective economic advantage, invasion of privacy, fraud, misrepresentation, emotional distress,  breach of fiduciary duty, breach of the duty of loyalty or other common law or tort causes of action;  

 

      19      Claims of harassment, retaliation or discrimination based upon race, color, sex, national origin,  ancestry, age, disability, handicap, medical condition, religion, marital status, or any other protected  class or status under federal, state, or local law; Claims arising under or relating to employment,  employment contracts, unlawful effort to prevent employment, or unfair or unlawful business  practices, including without limitation all claims arising under Title VII of the Civil Rights Act of  1964 (“Title VII”); the Civil Rights Act of 1991; the Civil Rights Acts of 1866 and/or 1871, 42  U.S.C. Section 1981; the Americans With Disabilities Act of 1990 (“ADA”), 42 U.S.C. § 12101 et  seq.; the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq.,; the Older  Workers Benefits Protection Act (“OWBPA”); the Family Medical Leave Act, 29 U.S.C. § 2601  et seq.; the California Labor Code; the California Fair Employment and Housing Act (“FEHA”),  Cal. Gov. Code § 12900 et seq.; the Occupational Safety and Health Act (“OSHA”), 29 U.S.C. §  651 et seq. or any other health/safety laws, statutes or regulations; the Employee Retirement Income  Security Act of 1974, as amended (“ERISA”), 29 U.S.C. § 1001 et seq.; the Internal Revenue Code;  the California Family Rights Act (“CFRA”), Cal. Gov. Code § 12945 et seq.; including any  amendments to or regulations promulgated under these statutes and including the similar laws of  any other states, any state human rights act, or any other applicable federal, state or local  employment statute, law or ordinance, which Executive and the Releasors had, now have, or may  have in the future against each or any of the Releasees from the beginning of the world until and  including the Execution Date (collectively, “Released Claims”).  3. OWBPA; Meaning of Signing This General Release.  Executive expressly acknowledges and  agrees that (a) Executive has carefully read this General Release and fully understands what it  means, including the fact that he is waiving his rights under ADEA; (b) Executive has been advised  in writing to consult an independent attorney of Executive’s choice before signing this General  Release; (c) Executive has been given twenty-one (21) calendar days to consider this General  Release, or, in the case of a group termination as set forth in 29 U.S.C. §626(f)(1)(F)(ii), forty-five  (45) days; (d) in the case of a group termination as set forth in 29 U.S.C. §626(f)(1)(F)(ii),  Executive has been provided the information required by 29 U.S.C. §626(f)(1)(H); (e) Executive  has agreed to this General Release knowingly and voluntarily of Executive’s own free will; (f) in  consideration of Executive’s promises contained in this General Release, he is receiving  consideration beyond that to which he is otherwise entitled, including, without limitation, the  Severance Benefits; (g) Executive may revoke Executive’s waiver and release of Claims under the  ADEA within seven (7) calendar days after the Execution Date by sending a written Notice of  Revocation to the address of Employer as set forth in Section 24 of the Employment Agreement;  and (h) except for Executive’s waiver and release of Claims under the ADEA, which shall not  become effective or enforceable as to any Party until the date upon which the revocation period has  expired without revocation by Executive, this General Release shall become effective on the  Execution Date.  Executive understands and agrees that modifications or amendments to this  General Release will not restart the twenty-one (21) or forty-five (45) day consideration period, as  applicable, set forth in this Section 3.  For avoidance of doubt, if Executive revokes his waiver and  release of Claims under the ADEA pursuant to this Section, Employer will not provide any of the  Severance Benefits.  4. Notwithstanding anything else to the contrary in this General Release, this General Release shall  not affect: the obligations of the Company set forth in the Employment Agreement or the  indemnification agreement or other obligations that, in each case with respect to such other  obligations, by their terms, are to be performed after the Execution Date (defined below), including,  without limitation, Executive’s rights to any vested benefits, vested pension rights or vested rights  to equity); any obligations of the Bank to repay any bank deposits; obligations to indemnify  Executive respecting acts or omissions in connection with Executive’s service as a director, officer  or employee of the Affiliated Entities; obligations with respect to insurance coverage under any of  

 

      20      the Affiliated Entities’ (or any of their respective successors) directors’ and officers’ liability  insurance policies; or any right Executive may have to obtain contribution in the event of the entry  of judgment against Executive as a result of any act or failure to act for which both Executive and  any of the Affiliated Entities are jointly responsible.  5. Executive represents that, except for anonymous whistleblower complaints filed with the SEC or  other similar regulatory agencies, the Releasors have not initiated, filed, or caused to be filed any  Released Claims against any of the Releasees.  Executive further agrees not to initiate, file, cause  to be filed, or otherwise pursue any Released Claims, either as an individual on his own behalf, or  as a representative, member or shareholder in a class, collective or derivative action and further  agrees not to encourage any person, including any current or former employee of the Releasees, to  file any kind of Claim against the Releasees.  Executive, however, retains the right to challenge the  validity of the waiver of Executive’s Claims under the ADEA set forth in Sections 2 and 3 of this  General Release.  6. Executive further acknowledges that he may hereafter discover claims or facts in addition to or  different than those that he now knows or believes to exist with respect to the subject matter of this  General Release and that, if known or suspected at the time of entering into this General Release,  may have materially affected this General Release and Executive’s decision to enter into it.   Nevertheless, Executive hereby waives any right, claim or cause of action that might arise as a  result of such different or additional claims or facts and Executive expressly waives any and all  rights and benefits confirmed upon him by the provisions of California Civil Code Section 1542,  which provides as follows:  “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE  CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT  TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE  RELEASE, AND THAT IF KNOWN BY HIM OR HER WOULD HAVE  MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE  DEBTOR OR RELEASED PARTY.”  Executive further expressly waives any rights he may have under Section 1542, as well as under  any other statute or common law principles of similar effect in any other jurisdiction determined  by a court of competent jurisdiction to apply.  7. This General Release shall be construed, enforced and interpreted in accordance with and governed  by the laws of the State of California, without reference to its principles of conflict of laws.  8. The Parties intend for the provisions of this General Release to be enforced to the fullest extent  permissible under all applicable laws and public policies.  They also intend that unenforceability  or the modification to conform with those laws or public policies of any provision of this General  Release shall not render unenforceable or impair the remainder of this General Release.   Accordingly, if any provision shall be determined to be invalid or unenforceable either in whole or  in part, this General Release shall be deemed amended to delete or modify as necessary the invalid  or unenforceable provisions to alter the balance of this General Release in order to render the same  valid and enforceable.  9. This General Release may not be orally cancelled, changed, modified or amended, and no  cancellation, change, modification or amendment shall be effective or binding, unless in writing  and signed by both parties to this General Release.  

 

      21      10. In the event of the breach or a threatened breach by Executive of any of the provisions of this  General Release, the Releasees would suffer irreparable harm, and in addition and supplementary  to other rights and remedies existing in its favor, the Releasees shall be entitled to specific  performance and/or injunctive or other equitable relief from a court of competent jurisdiction in  order to enforce or prevent any violations of the provisions hereof without posting a bond or other  security.  11. Notwithstanding anything to the contrary in this General Release, Executive understands that  nothing in this General Release is intended to prohibit Executive and Executive is not prohibited  from reporting possible violations of law to, filing charges with, making disclosures protected under  the whistleblower provisions of U.S. federal or California state law or regulation, or participating  in investigations of U.S. federal or California state law or regulation by the U.S. Securities and  Exchange Commission, National Labor Relations Board, Equal Employment Opportunity  Commission, the Occupational Safety and Health Administration, the U.S. Department of Justice,  the U.S. Congress, any U.S. agency Inspector General or any self-regulatory agencies such as the  SEC or federal, state or local governmental agencies (collectively, “Government Agencies,” and  each a “Government Agency”).  Accordingly, Executive does not need the prior authorization of  Employer to make any such reports or disclosures or otherwise communicate with Government  Agencies and is not required to notify Employer that he has engaged in any such communications  or made any such reports or disclosures.  Executive agrees, however, to waive any right to receive  any monetary award resulting from such a report, charge, disclosure, investigation or proceeding,  except that Executive may receive and fully retain any award from a whistleblower award program  administered by a Government Agency.  In addition, Executive is hereby notified that 18 U.S.C. §  1833(b) states as follows:  “An individual shall not be held criminally or civilly liable under any Federal  or State trade secret law for the disclosure of a trade secret that—(A) is made— (i) in confidence to a Federal, State, or local government official, either  directly or indirectly, or to an attorney; and (ii) solely for the purpose of  reporting or investigating a suspected violation of law; or (B) is made in a  complaint or other document filed in a lawsuit or other proceeding, if such  filing is made under seal.”  Accordingly, notwithstanding anything to the contrary in this General Release, Executive  understands that he has the right to disclose in confidence trade secrets to federal, state, and local  government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected  violation of law.  Executive understands that he also has the right to disclose trade secrets in a  document filed in a lawsuit or other proceeding, but only if the filing is made under seal and  protected from public disclosure.  Executive understands and acknowledges that nothing in this  Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of  trade secrets that are expressly allowed by 18 U.S.C. § 1833(b).  (Signature page to follow)     

 

      22          Executive has executed this General Release on __________________, 20_____  (the “Execution Date”).  BANC OF CALIFORNIA, INC.  By:    Name:    Title:   Date:        BANC OF CALIFORNIA, N.A.  By:    Name:    Title:   Date:        EXECUTIVE      Jared Wolff  Date:           

 

      23      EXHIBIT C  ARBITRATION AGREEMENT  This Arbitration Agreement (“Agreement”), dated as of the Effective Date is between BANC OF  CALIFORNIA, INC., a Maryland corporation (the “Company”), the BANC OF CALIFORNIA, N.A.,  a national banking association (the “Bank,” and together with the Company, “Employer”) and JARED  WOLFF (“Executive”) (collectively, the “Parties”):  Whereas, Executive entered into an amended and restated employment agreement with Employer as of  February 7, 2022 (the “Employment Agreement”).  Capitalized terms used but not defined in this  Agreement shall have the meaning set forth in the Employment Agreement.  In order to resolve all disputes between them as expeditiously as possible, Employer and Executive agree  as follows:  1. Arbitrable Claims.  (a) To the fullest extent permitted by law, and except as otherwise provided in this Agreement,  any and all claims or controversies between Employer and Executive (or between  Executive and any present or former officer, director, agent, or employee of Employer or  any parent, subsidiary, or other entity affiliated with Employer) relating in any manner to  the employment or the termination of employment of Executive shall be resolved by final  and binding arbitration (“Arbitrable Claims”).  (b) Arbitrable Claims shall include, but not be limited to, contract claims, tort claims, and  claims relating to compensation, benefits, and stock options, as well as claims based on  any federal, state, or local law, statute, or regulation, including but not limited to any claims  arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in  Employment Act, the Americans with Disabilities Act, the Fair Labor Standards Act, the  Family and Medical Leave Act, the California Fair Employment and Housing Act, the  California Labor Code, the California Unfair Competition Law, and the California Wage  Orders.  (c) Notwithstanding the foregoing, Arbitrable Claims shall not include claims for  unemployment benefits, workers’ compensation claims, claims under the National Labor  Relations Act, or claims precluded by federal statute from agreements for pre-dispute  arbitration (collectively, “Excluded Claims”).  (d) Arbitration shall be final and binding upon the parties and shall be the exclusive remedy  for all Arbitrable Claims.  2. Arbitration Procedure.  (a) Except as specifically provided herein, any arbitration proceeding shall be conducted in  accordance with the then current JAMS Employment Arbitration Rules & Procedures (the  “Arbitration Rules”) to the extent not inconsistent with this Agreement.  A copy of the  current Arbitration Rules is attached.  The Arbitration Rules are also available for review  at www.jamsadr.com/rules-employment-arbitration.  (b) Arbitration shall be initiated by the aggrieved party giving all other parties written notice  as described in this paragraph (“Notice of Dispute”).  Written notice of a claim by  

 

      24      Executive shall be mailed by certified or registered mail, return receipt requested, to  Executive’s last address in the records of the Company.  Written notice of a claim by  Employer shall be mailed to the last known address of Executive.  The Notice of Dispute  shall identify and describe the nature of all claims asserted, the facts upon which such  claims are based, and the relief sought.  3. Arbitrator Selection and Authority.  (a) A neutral and impartial arbitrator shall be chosen by mutual agreement of the parties;  however, if the parties are unable to agree upon an arbitrator within sixty (60) days after  date of the Notice of Dispute, then a neutral and impartial arbitrator shall be appointed in  accordance with the Arbitration Rules.  The arbitrator shall have exclusive authority to  resolve all Arbitrable Claims, except that a court and not the arbitrator shall determine  arbitrability and whether all or any part of this Agreement is void or unenforceable.  The  arbitrator’s authority shall include the authority to rule on a motion to dismiss and/or  summary judgment by either party, and the arbitrator shall apply the standards governing  such motions under the Federal Rules of Civil Procedure.  The arbitrator shall prepare a  written decision containing the essential findings and conclusions on which any decision  or award is based.  The arbitrator shall apply the same substantive law with the same  statutes of limitations and same individual remedies that would apply if the claims were  brought in a court of law.  (b) The arbitrator shall also have the authority to award costs and fees to the prevailing party  as provided by applicable law to the same extent as a court.  Otherwise, each party shall  pay its own costs and attorney’s fees.  Employer shall pay the costs and fees of the arbitrator  and reimburse Executive for any filing fees paid to initiate arbitration.  (c) The arbitrator shall not have the authority to adjudicate class, collective, or representative  claims (including without limitation claims under the California Private Attorneys General  Act on behalf of any person other than Executive individually), to award any class,  collective, or other representative relief on behalf of any person other than Executive, or,  without all parties’ consent, to consolidate the claims of two or more individuals, or  otherwise preside over any form of a class, collective, or other representative proceeding.  4. Actions To Compel Arbitration or Enforce Award.  Either Employer or Executive may bring an  action in court to compel arbitration under this Agreement and to enforce an arbitration award.   Otherwise, neither party shall initiate or prosecute any lawsuit in any way related to any Arbitrable  Claim.  Nothing in this Agreement, however, precludes a party from filing an administrative charge  with an agency that has jurisdiction over a claim that is otherwise arbitrable.  Moreover, nothing in  this Agreement prohibits either party from seeking provisional relief pursuant to Section 1281.8 of  the California Code of Civil Procedure.  5. Location of Arbitration.  All arbitration hearings under this Agreement shall be conducted in the  California county in which the Company’s headquarters are located, unless otherwise agreed by  the parties.  6. Waiver of Jury Trial.  The parties understand and agree that by entering into this Agreement, they  are each waiving the right to a trial by jury.  7. Waiver of Class, Representative, and Collective Claims.  To the fullest extent permitted by law,  Executive and Employer each waives any right either may have to bring any class, collective, or  representative action against the other party, whether in arbitration, in court, or otherwise, or to  

 

      25      participate as a member of any class or collective action against the other party (“Waived Claims”).   If a court or an arbitrator determines in any proceeding between the Parties that any such claims  cannot be waived, then the non-waivable claims shall be adjudicated in court or such other forum  as provided by law and not in arbitration.  8. Bifurcation and Stay.  In the event either party asserts against the other party in a judicial forum  both Arbitrable Claims and also Excluded Claims and/or Waived Claims, then such claims shall be  bifurcated as follows: (a) Arbitrable Claims shall be subject to arbitration and (b) all Excluded  Claims and any Waived Claims that a court or arbitrator in any proceeding between the Parties  determines cannot lawfully be waived shall be adjudicated in court or such other forum as provided  by law and not in arbitration.  To the extent permitted by law, all such claims to be adjudicated  outside of arbitration shall be stayed for the duration of the arbitration proceedings.  9. Applicable Law.  This Agreement shall be governed by the Federal Arbitration Act and, to the  extent permitted by such Act, the laws of the State of California.  10. Severability.  If any provision of this Agreement shall be held to be invalid, unenforceable, or void,  by a court of competent jurisdiction or an arbitrator such provision shall be stricken from the  Agreement, and the remainder of the Agreement shall remain in full force and effect.  11. Entire Agreement; Amendment.  Employer and Executive understand and agree that this  Agreement contains a full and complete statement of any agreements and understandings regarding  resolution of disputes between the parties, and the parties agree that this Agreement supersedes all  previous agreements, whether written or oral, express or implied, relating to the subjects covered  in this Agreement.  The parties also agree that the terms of this Agreement cannot be revoked or  modified except in a written document signed by both Executive and an officer of Employer.  12. Term of Agreement.  This Agreement shall be effective as of the Effective Date and shall survive  the termination of Executive’s employment with Employer.  13. Acknowledgement.  The parties voluntarily have entered into this Agreement, and they  acknowledge that they have been given the opportunity to discuss this agreement with legal counsel  and to review the Arbitration Rules before signing this agreement, and they have availed themselves  of this opportunity to the extent they wish to do so.  (Signature page to follow)  

 

      26      IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first set forth above.    BANC OF CALIFORNIA, INC.  By: /s/ Robert Sznewajs   Name: Robert Sznewajs  Title: Chairman of the Board  Date:   February 8, 2022     BANC OF CALIFORNIA, N.A.  By: /s/ Robert Sznewajs   Name: Robert Sznewajs  Title: Director  Date:   February 8, 2022     EXECUTIVE  /s/ Jared Wolff     Jared Wolff  Date:  February 7, 2022Document

Exhibit 10.1
MALIBU BOATS, INC.
DIRECTORS’ COMPENSATION POLICY
(As Amended August 25, 2021)
Directors of Malibu Boats, Inc., a Delaware corporation (the “Company”), who are not employed by the Company or one of its subsidiaries (“Outside Directors”) are entitled to the compensation set forth below for their service as a member of the Board of Directors (the “Board”) of the Company. The Board has the right to amend this policy from time to time.
						
	Cash Compensation	
	Annual Retainer	$65,000
	Board Chairperson Retainer	$40,000
	Additional Committee Chair Retainers	
	Audit Committee Chair	$20,000
	Compensation Committee Chair	$15,000
	Nominating and Governance Committee Chair	$10,000
	Additional Non-Chair Committee Member Retainers	
	Audit Committee Member	$5,000
	Compensation Committee Member	$5,000
	Nominating and Governance Committee Member	$2,000
	Equity Compensation	
	Annual Equity Award	$110,000

Cash Compensation
Each Outside Director will be entitled to an annual cash retainer while serving on the Board in the amount set forth above (the “Annual Retainer”). An Outside Director who serves as the Chairperson of the Board or the Chair of the Audit Committee, the Compensation Committee or the Nominating and Governance Committee of the Board will be entitled to an additional annual cash retainer while serving in that position in the applicable amount set forth above (an “Additional Board and Committee Chair Retainer”). An Outside Director who serves as a member of the Audit Committee, the Compensation Committee or the Nominating and Governance Committee of the Board and is not the Chair of such committee will be entitled to an additional annual cash retainer while serving in that position in the applicable amount set forth above (together with Additional Board and Committee Chair Retainers, the “Additional Board and Committee Retainers”). 
The amounts of the Annual Retainer and Additional Board and Committee Retainers reflected above are expressed as annualized amounts. These retainers will be paid on a quarterly basis, at the end of each quarter in arrears, and will be pro-rated if an Outside Director serves (or serves in the corresponding position, as the case may be) for only a portion of the quarter (with the proration based on the number of calendar days in the quarter that the director served as an Outside Director or held the particular position, as the case may be, divided by 365).  The Annual Retainer and Additional Board and Committee Retainers set forth above are effective beginning with the quarter ending September 30, 2021.
Equity Awards
Annual Equity Awards for Continuing Board Members
On the date of each annual meeting of the Company’s stockholders, each Outside Director then in office following the meeting will automatically be granted an annual equity award consisting of either fully vested shares of the Company’s common stock or fully vested stock units payable on a deferred basis, as determined in accordance with each Outside Director’s election made in accordance with the Company’s Outside Director Stock-For-Fees Program below (and if no such election is made, the Outside Director’s award will consist of fully vested shares of the Company’s common stock). The number of shares of common stock or stock units granted as each Outside Director’s annual equity award shall be determined by dividing (1) the Annual Equity Award grant value set forth above by (2) the per-share closing price of the Company’s common stock on the date of such annual meeting, with the result rounded down to the nearest whole share. In the event that more than one annual meeting of the Company’s stockholders occurs during a given fiscal year, annual equity awards will be made only in connection with the first such meeting to occur in that year.  The annual equity awards set forth above will become effective beginning on the date of the 2021 annual meeting of the Company’s stockholders.
For each new Outside Director appointed or elected to the Board other than on the date of an annual meeting of the Company’s stockholders, on the date that the new Outside Director first becomes a member of the Board, the new Outside Director will automatically be entitled to a pro-rata portion of the annual equity award (a “Pro-Rata 

Annual Award”) determined by dividing (1) a pro-rata portion of the Annual Equity Award grant value set forth above by (2) the per-share closing price of the Company’s common stock on the date the new Outside Director first became a member of the Board. The pro-rata portion of the Annual Equity Award grant value for purposes of a Pro-Rata Annual Award will equal the Annual Equity Award grant value set forth above multiplied by a fraction (not greater than one), the numerator of which is 12 minus the number of whole months that as of the particular grant date had elapsed since the Company’s last annual meeting of stockholders at which annual equity awards were granted by the Company to Outside Directors, and the denominator of which is 12, with the result to be rounded down to the nearest whole share. Each Pro-Rata Annual Award will be fully vested on the grant date, and will consist of either fully vested shares of the Company’s common stock or fully vested stock units payable on a deferred basis, as determined in accordance with each Outside Director’s election made in accordance with the Company’s Outside Director Stock-For-Fees Program below (and if no such election is made, the Outside Director’s Pro-Rata Annual Award will consist of fully vested shares of the Company’s common stock).
Provisions Applicable to All Outside Director Equity Awards
Each equity award will be made under and subject to the terms and conditions of the Company’s Long-Term Incentive Plan (the “Plan”) or any successor equity compensation plan approved by the Company’s stockholders and in effect at the time of grant.
Expense Reimbursement
All Outside Directors will be entitled to reimbursement from the Company for their reasonable travel (including airfare and ground transportation), lodging and meal expenses incident to meetings of the Board or committees thereof or in connection with other Board related business.
Elective Grants of Equity Awards
The Company has established the following Outside Director Stock-For-Fees Program (the “Program”) effective as of February 6, 2014 (the first business day following the date of the closing of the Company’s initial public offering). Pursuant to the Program, Outside Directors may elect that their Annual Retainer and Additional Board and Committee Retainers be converted into either (1) shares of the Company’s common stock or (2) rights to receive an award of stock units under the Plan that will be paid on a deferred basis. Pursuant to the Program, Outside Directors may also elect to receive any annual equity award described above in stock units under the Plan that will be paid on a deferred basis.
The Program is an Appendix to the Plan, and any shares of common stock issued under the Program under the Plan shall be charged against the applicable share limits of the Plan. Except as otherwise expressly provided herein, the provisions of the Plan shall govern all stock units credited and shares issued pursuant to the Program.
An Outside Director may elect to exchange the right to receive payment of all or a portion of his or her Annual Retainer and Additional Board and Committee Retainers payable with respect to a particular calendar year for the right to receive either a grant of (1) shares of common stock or (2) stock units under the Program in lieu of such retainers (or portion thereof, as applicable). An Outside Director may also elect to receive all or a portion of his or her annual equity award described above in stock units under the Plan that will be paid on a deferred basis pursuant to the terms of the Program. Such election shall be made by completing the election form as the Board may prescribe from time to time (an “ Election Form “), and filing such completed form with the Company by the deadline determined below. Once an Election Form is validly filed with the Company, it shall automatically continue in effect for future calendar years unless the Outside Director changes or revokes his or her Election Form prior to the beginning of any such future calendar years.
With respect to any calendar year, except as otherwise provided below for new directors, an Outside Director may file an Election Form with the Company on or before December 31 immediately preceding the start of such calendar year or any earlier deadline that may be established with respect to the particular year. Such Election Form shall become irrevocable as of such December 31 and shall be effective with respect to the Annual Retainer and Additional Board and Committee Retainers for the calendar year commencing on the January 1 that next follows such December 31.
Notwithstanding anything to the contrary in the Program, to the extent permissible under Section 409A of the Code, any individual who first becomes an Outside Director after the date hereof and during the first three (3) quarters of a particular calendar year may file an Election Form with the Company no later than thirty (30) days after such individual first becomes an Outside Director. Such Election Form shall be irrevocable and shall be effective with respect to the director’s Annual Retainer and Additional Board and Committee Retainers paid for services rendered during the calendar year in which the Election Form is filed for any quarter in such calendar year that commences after such Election Form is filed with the Company. Such Election Form may also defer payment of the portion of the Outside Director’s annual equity award attributable to services performed after the date the Election Form is filed.
The Annual Retainer and Additional Board and Committee Retainers are paid by the Company on a quarterly basis. Upon the last business day of each quarter of a calendar year for which an Outside Director has made a valid and timely election to receive either shares of common stock or stock units under the Program in lieu of all or a portion of his or her Annual Retainer and Additional Board and Committee Retainers for that quarter (each, a “Crediting Date”), the Company shall automatically grant the Outside Director a number of shares of common stock or stock units, as applicable, determined by dividing (i) the amount of the Exchanged Retainer, by (ii) the per-share closing price of the Company’s common stock on that Crediting Date, with the result rounded down to the nearest 

whole share or unit. The “Exchanged Retainer” is that portion of the Outside Director’s Annual Retainer and Additional Board and Committee Retainers that would have otherwise been paid in cash to the Outside Director for his or her service on the Board during that quarter but for his or her election pursuant to the Program. Any fractional amount less than the price of a share of the common stock as of such Crediting Date shall be paid in cash. 
Stock units shall be used solely as a device for the determination of the number of shares of common stock eventually to be delivered to an Outside Director upon payment of such stock units. Stock units shall not be treated as property or as a trust fund of any kind. Stock units granted to an Outside Director pursuant to the Program shall be credited to an unfunded bookkeeping account maintained by the Company on behalf of each Outside Director to which the Outside Director’s stock units shall be credited. Not less frequently than annually, the Company shall provide each Outside Director with a current statement of his or her account reflecting all credits of stock units as of such date.
An Outside Director shall have no rights as a stockholder of the Company, no dividend rights (except as expressly provided below with respect to dividend equivalent rights) and no voting rights with respect to stock units credited under the Program and any shares of common stock underlying or issuable in respect of such stock units until such shares are actually issued to and held of record by the Outside Director. No assets have been secured or set aside by the Company with respect to the stock units and, if amounts become payable to an Outside Director pursuant to the Program, the Outside Director’s rights with respect to such amounts shall be no greater than the rights of any general unsecured creditor of the Company.
As of any date that the Company pays an ordinary cash dividend on its Common Stock, the Company shall credit the Outside Director’s account with an additional number of stock units equal to (a) the amount of the ordinary cash dividend paid by the Company on a single share of common stock on that date, multiplied by (b) the number of stock units credited to the Outside Director’s account as of the record date for such ordinary cash dividend (including any stock units previously credited as dividend equivalents and with such total number subject to adjustment pursuant to Section 3.3 of the Plan), divided by (c) the closing price of a share of common stock on that date. No such payment shall be made with respect to any stock units which, as of the record date for such ordinary cash dividend, have been paid pursuant to the payment terms below.
Any stock units credited to an Outside Director’s account under the Program shall be fully vested at all times, and shall be payable in an equivalent number of shares of common stock (either by delivering one or more certificates, registered in the name of the Outside Director, for such shares or by entering such shares in the name of the Outside Director in book-entry form, as determined by the Company in its discretion) upon or as soon as practicable, and in all events within 30 days, following the first to occur of (A) the date of the Outside Director’s Separation from Service or (B) the occurrence of a change in control under the Plan that constitutes a “change in the ownership,” a “change in the effective control,” or a “change in the ownership of a substantial portion of the assets” of the Company within the meaning of the Treasury Regulations promulgated under Section 409A of the Code.
As used herein, a “Separation from Service” occurs when an Outside Director dies, retires, or otherwise has a termination of service with the Company that constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h), without regard to the optional alternative definitions available thereunder. Notwithstanding the foregoing, in the event the Outside Director is a “specified employee” (within the meaning of Treasury Regulation Section 1.409A-1(i)) on the date of the Outside Director’s Separation from Service, the Outside Director shall not be entitled to payment of any stock units credited under the Program that would otherwise be paid in connection with his or her Separation from Service until the earlier of (A) the date which is six (6) months after his or her Separation from Service with the Company for any reason other than death, or (ii) the date of the Outside Director’s death (and, in either case, payment will be made within thirty (30) days following that event); provided that this six-month delay shall apply only to the extent such delay in payment is required to comply with, and avoid the imputation of any tax, penalty or interest under, Section 409A of the Code.
Shares issued under the Program and stock units credited under the Program shall be subject to the terms of the Plan. Shares of common stock issued with respect to the Program may be issued under the Plan or may be issued under any other authority of the Company. Notwithstanding the foregoing provisions, in the event that the Company is not able to issue shares of Common Stock in payment of any stock units credited under the Program, such stock units shall be settled by payment in cash equal to the applicable number of stock units not eligible to be paid in shares, multiplied by the fair market value of a share of common stock on the date the stock units are paid.
Notwithstanding anything contained in the Program or in the Plan to the contrary, prior to the time the stock units are paid, neither the stock units nor any interest therein or amount payable in respect thereof may be sold, assigned, transferred, pledged or otherwise disposed of, alienated or encumbered, either voluntarily or involuntarily, other than by will or the laws of descent and distribution. The Program, including any Election Forms filed hereunder, shall be construed and interpreted to comply with Section 409A of the Code.

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