Document:

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HUMAN RESOURCES
                         EMPLOYEE SEVERANCE PAY PLAN
================================================================================
INTRODUCTION
                           First Community Bancorp is the sponsor of the
                           Employee Severance Pay Plan Policy ("the Plan").
                           First Community Bancorp and its subsidiaries (the
                           "Company" or the "Companies" as the context requires)
                           have adopted the Plan to provide financial assistance
                           to those employees who are involuntarily terminated
                           from the Company. This Plan will expire on December
                           31, 2001, unless terminated prior thereto or extended
                           as provided below.

                           The purpose of this Plan is to provide certain
                           benefits ("Severance Benefits") to Eligible Employees
                           (defined below whose employment is involuntarily
                           terminated by any of the Companies for reasons such
                           as permanent layoffs, permanent reductions in force,
                           cutbacks in business, the discontinuance of all or
                           any part of a Company's operations or the elimination
                           of an Eligible Employee's job) resulting from the
                           Company's acquisition of, or merger with, another
                           financial institution.

                           Furthermore, this document serves as both the Plan
                           document and summary plan description and sets forth
                           the requirements for eligibility under the Plan,
                           explains the Severance Benefits available under the
                           Plan and the manner in which payments are calculated,
                           describes circumstances which may limit or terminate
                           an Eligible Employee's eligibility for Severance
                           Benefits and discusses the administration of the Plan
                           in general.

                           In all cases, your rights and benefits under the
                           Plan, if any, are governed solely by the terms and
                           conditions of this Plan. None of the Companies, their
                           current and former directors, shareholders, officers,
                           employees or agents, will be bound by or liable to
                           you or anyone for any representation, promise or
                           inducement made by any of their officers, employees,
                           or agents about the Plan that is not contained in
                           this Plan.

                           Interpretation and application of the Plan to a
                           particular circumstance will be made by the Company
                           at its sole discretion. The Company has the sole and
                           absolute power and authority to make all legal and
                           factual determinations, construe and interpret terms
                           and provisions, and make eligibility and benefit
                           determinations in accordance with its interpretation
                           of the Plan. First Community Bancorp also reserves
                           the right to change, suspend, continue or terminate
                           all or any part of the Plan, either in an individual
                           case or in general, at any time without notice. A
                           copy of this Plan may be obtained from the Human
                           Resource Director of First Community Bancorp.

                           The Plan is not intended to, and does not, provide
                           employees with vested benefits. Moreover, the Plan
                           may be terminated or amended at any time and for any
                           reason by First Community Bancorp. If the Plan is
                           terminated or the eligibility criteria or benefits
                           changed in general, the change will apply to all
                           Eligible Employees except for Eligible Employees who
                           have signed a settlement Agreement and General
                           Release (the "Agreement") or whose Severance Pay
                           Period (defined

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                           below) began before the effective date of the change.
                           This Plan and the policies set forth herein are not
                           intended to imply a contractual relationship, except
                           for employees who have signed an Agreement, and this
                           Plan does not affect the at-will employment status of
                           the employees to which this Plan applies.

                           Any time the words "you" and "your" are used in this
                           Policy; they are to be understood as synonymous with
                           "Eligible Employee."

HOW THE PLAN
OPERATES
                           WHO IS ELIGIBLE TO  PARTICIPATE

                               ELIGIBLE EMPLOYEES - You are an "Eligible
                               Employee" for purposes of this Plan if you
                               experience an "Employment Loss," as defined
                               below, and are a salaried or hourly employee of
                               any of the Companies who has completed at least
                               three (3) months of continuous service with any
                               of the Companies. The Company will notify you in
                               writing if your employment is involuntarily
                               terminated and you are an Eligible Employee.

                               INELIGIBLE PERSONS - An individual is not
                               eligible to participate in the Plan if such
                               individual falls into one of the following
                               categories:

                                    1.  You are an independent contractor;
                                    2.  You are employed through an agency or
                                        are a temporary employee;
                                    3.  You are employed without regular
                                        employee benefits under a written
                                        agreement for a defined period of time;
                                    4.  You are employed under a written
                                        agreement that provides for payment in
                                        the event of a termination of
                                        employment; and/or
                                    5.  You are covered by another severance or
                                        change in control plan.

WHAT IS AN
"EMPLOYMENT
LOSS"?
                           EMPLOYMENT LOSS DEFINED - As used in this Plan,
                           "Employment Loss' means a termination of employment,
                           initiated by a Company, which results directly from
                           changes in such Company's business needs, operations
                           or organization including reorganizations, staffing
                           changes, job eliminations or reductions in work
                           force.

                           WHAT IS EXCLUDED FROM EMPLOYMENT LOSS? - There are
                           certain circumstances that do not qualify and are
                           excluded from the category of an Employment Loss. If
                           you are an employee that falls into one of these
                           categories, you will not receive Severance Benefits.
                           The following circumstances, among others, are NOT
                           included in the category of Employment Loss as
                           defined in the Plan:

                               1.   Terminations for cause;

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                               2.   Reductions of less than 50% in an employee's
                                    scheduled hours, unless such reductions
                                    change the employee's benefits status from
                                    eligible to ineligible;
                               3.   Reassignments within the Companies; and/or
                               4.   Transfers to a Successor Employer (as used
                                    in this Plan, "Successor Employer" means an
                                    employer that acquires assets or a share of
                                    ownership in a Company, or an employer with
                                    whom a Company contracts for services or to
                                    perform functions it previously performed).

DISQUALIFICATION
OF BENEFITS UNDER
THE PLAN
                           Circumstances can occur which will disqualify you
                           from receiving Severance Benefits even after you are
                           notified of an Employment Loss. You will not receive
                           Severance Benefits if:

                               1.   You resign from your position before your
                                    termination date;
                               2.   You stop working for any reason before your
                                    termination date;
                               3.   You refuse an assignment or fail to fully
                                    perform any assignment given to you
                                    by a Company before your termination date;
                               4.   You are terminated for cause;
                               5.   Your employment is terminated at the end of
                                    a leave of absence as a result of your
                                    failure to return to work;
                               6.   You withdraw from employment due to
                                    participation in a long-term disability
                                    plan;
                               7.   Your employment terminates due to your death
                                    or incapacitation;
                               8.   You accept employment within a Company or a
                                    Successor Employer; and/or
                               9.   You fail to accept an offer of a Comparable
                                    Position, as defined below, within a Company
                                    or a Successor Employer.

COMPARABLE
POSITION
OFFERED
                           If you are offered a Comparable Position within one
                           of the Companies or a Successor Employer and refuse
                           the position, you will not receive Severance Benefits
                           under this Plan. For purposes of defining "Comparable
                           Position," the Human Resource Director (as defined
                           below) will determine, in his sole discretion,
                           whether the position you are offered is comparable to
                           the position you held at the time you received notice
                           of your job elimination. For purposes of this Plan, a
                           Comparable Position is one that has job
                           responsibilities and skill requirements that are
                           similar to the previous position held by you and
                           requires limited additional training to perform
                           competently, that is within a reasonable commuting
                           distance and that is at a reasonably similar salary
                           level. If questions arise as to the comparability of
                           the position, your Severance Benefits may be

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                           withheld until the matter is resolved by the Human
                           Resource Director of First Community Bancorp.

                           Reasonable commuting distance is defined as no
                           further than 30 miles from your current work location
                           at the time of your job elimination. Reasonably
                           similar salary level is defined as no more than a 20%
                           reduction in your base salary at the time of your job
                           elimination.

CALCULATION OF
PLAN BENEFITS
                           Two forms of Severance Benefits are defined under the
                           Plan: a Basic Severance Benefit and a Supplemental
                           Severance Benefit (each defined below and
                           collectively a "Severance Benefit"). If, in the
                           estimation of the Human Resource Director, you
                           qualify for a Basic Severance Benefit under the Plan,
                           you will receive a Basic Severance Benefit Statement,
                           an example of which is set forth below, showing the
                           manner in which your payment was calculated. No
                           action is necessary on your part to receive the Basic
                           Severance Benefit.

                           To receive a Supplemental Severance Benefit under the
                           Plan, you must be eligible to Participate in the Plan
                           and you must return a signed and properly completed
                           Agreement to the Human Resource Director.

                           TYPES OF BENEFITS

                               BASIC SEVERANCE BENEFIT - If you are eligible to
                               participate in the Plan, you will receive
                               compensation equal to one pay period based on
                               your Salary on the Day you were notified of the
                               termination or as of the termination date,
                               whichever is greater (the "Basic Severance
                               Benefit"). "Salary" means your base salary and
                               excludes compensation under any incentive plan,
                               agreement, commissions, bonuses, overtime or
                               other payments offered under any employee health,
                               pension, savings or welfare benefit plan
                               maintained by the Company.

                               SUPPLEMENTAL SEVERANCE BENEFIT - You will be
                               offered a Supplemental Severance Benefit under
                               this Plan provided that you sign an Agreement.

                               A Supplemental Severance Benefit is an additional
                               one time Severance Benefit (a "Supplemental
                               Severance Benefit") which will be calculated
                               based on your length of service with a Company.
                               Under the Plan, your months and years of service
                               will be calculated based upon your most recent
                               date of hire or rehire, as applicable, until the
                               effective date of your termination. Such years of
                               service include any periods of time you were
                               employed by a Company including time spent on
                               such things as vacation, holiday, jury duty,
                               medical or family leave of absence provided that
                               each such period did not exceed six (6)

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                               months or result in the termination of your
                               employment. Each year of service is completed on
                               the anniversary date of hire (or rehire).

                               Calculation of the Supplemental Severance Benefit
                               will be in accordance with the following chart:

<TABLE>
<CAPTION>
                               --------------------------- ------------------------------
                               YEARS OF CONTINUOUS SERVICE SUPPLEMENTAL SEVERANCE BENEFIT
                               --------------------------- ------------------------------
<S>                                                        <C>
                               Less than 1 year            4 weeks of Salary
                               --------------------------- ------------------------------
                               1 or more years             4 weeks of Salary
                                                           plus 1 additional week for
                                                           each FULL year of service
                                                           beginning with the first
                                                           year.
                               --------------------------- ------------------------------

                               --------------------------- ------------------------------
                               SO THAT AN EMPLOYEE WITH:   WOULD BE ELIGIBLE FOR:
                               --------------------------- ------------------------------
                               2 full years of service     6 weeks of Salary
                               --------------------------- ------------------------------
                               3 full years of service     7 weeks of Salary
                               --------------------------- ------------------------------
                               4 full years of service     8 weeks of Salary
                               --------------------------- ------------------------------
                               5 full years of service     9 weeks of Salary
                               --------------------------- ------------------------------
</TABLE>

                               Eligible Employees at the Senior Vice President
                               level will receive a minimum severance payment of
                               twelve weeks and eligible employees at the
                               Executive Vice President level will receive a
                               minimum severance payment of sixteen weeks under
                               the Supplemental Severance Benefit regardless of
                               years of service. In addition, the Company will
                               offer employees eligible for the Supplemental
                               Severance Benefit outplacement services. However,
                               the Company has absolute discretion regarding the
                               kind, nature, quality and cost of outplacement
                               services to be offered.

                               STATEMENT OF BENEFITS - You will receive a
                               personalized statement showing the calculation of
                               your Basic Severance Benefit (the "Basic Benefit
                               Statement"). The amount of your Supplemental
                               Severance Benefit, if you are eligible for one,
                               will be set forth in the personalized statement
                               (the "Supplemental Benefit Statement") at the
                               time the Company delivers the Agreement.

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                           PAYMENT OF BENEFITS - If you are entitled to receive
                           the Basic Severance Benefit payment, the Basic
                           Severance Benefit will be paid to you by either a
                           check or a direct deposit in the same manner as you
                           received your paycheck when employed. If you are
                           entitled to receive the Supplemental Severance
                           Benefit payment, the Supplemental Severance Benefit
                           payment will be paid to you after the expiration of
                           seven (7) calendar days following the date you sign
                           the Agreement. The Human Resource Director has the
                           sole discretion to provide the Supplemental Severance
                           Benefit payment, to those employees eligible, in one
                           lump sum or in equal semi-monthly installments.
                           Authorized deductions and other deductions required
                           by law will be taken from all payments.

DENIAL AND
APPEAL OF
BENEFITS
                           If you feel that you are entitled to Severance
                           Benefits or that your Severance Benefits are not
                           correctly stated on either the Basic Benefit
                           Statement or the Supplemental Benefit Statement, you
                           should make a claim in writing to the Human Resource
                           Director of First Community Bank. Your claim should
                           state the reasons for your appeal of the denial or
                           miscalculation of Severance Benefits. Furthermore, in
                           order to be considered timely, your claim should be
                           mailed to the Human Resource Director within sixty
                           (60) calendar days of the denial or miscalculation of
                           Severance Benefits. If the claim is not received
                           within the allotted time frame, your claim will be
                           denied. Under exceptional circumstances, if the claim
                           is not received timely, the Company may elect to
                           review your claim.

                           Should a claim be filed timely, the Human Resource
                           Director will consider the claim and respond to you
                           within thirty (30) days of its receipt, or as soon as
                           practicable thereafter. Upon review of your claim,
                           you may be requested to provide additional facts,
                           documents or evidence, if necessary, within five (5)
                           days of written notice of such a request. At the
                           conclusion of your appeal, if you are entitled to
                           Severance Benefits or a modification of Severance
                           Benefits, you will be notified accordingly. If,
                           however, the claim is denied in total or in part, the
                           reasons for the denial will be stated in writing with
                           specific references to the Plan provisions on which
                           the denial is based. Unless the Human Resource
                           Director determines that there are special
                           circumstances, the review by the Human Resource
                           Director will be final.

TERMINATING OR
AMENDING THE
PLAN
                           The Plan may be terminated or amended at any time for
                           any reason by First Community Bancorp. NO PERSON IS
                           AUTHORIZED TO MAKE PROMISES REGARDING SEVERANCE
                           BENEFIT EXCEPT AS PROVIDED IN THIS PLAN. The
                           Severance Benefits available to employees who have
                           been notified in writing of the intention to

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                           terminate their employment prior to any amendment or
                           termination of this Plan ill not be reduced as the
                           result of such plan amendment or termination.

PAYMENT OF
BENEFITS UPON
AN EMPLOYEE'S
DEATH
                           If you die having satisfied all of the requirements
                           to receive a Severance Benefit, any Severance
                           Benefits not already paid to you will be distributed
                           to your legal successor, if not prohibited by law.

WHO ADMINISTERS
THE PLAN?
                           The Company by which you were employed will
                           administer the Plan through its Human Resource
                           Director. Please contact the Human Resource Director
                           at the following Company locations:

                           First Community Bancorp
                           2310 Camino Vida Roble, Suite B
                           Escondido, CA  92009
                           EIN 33-0885320

WHAT ARE MY RIGHTS
UNDER THE EMPLOYEE
RETIREMENT INCOME
SECURITY ACT
("ERISA")?
                           Under ERISA, if you are eligible to participate in
                           the Plan, you have the right to examine all Plan
                           documents without charge at the Plan Administrator's
                           office. You may also obtain copies of Plan documents
                           and other Plan information upon written request to
                           the Plan Administrator. These include copies of all
                           documents filed by the Companies with the U.S.
                           Department of Labor, such as annual reports. The Plan
                           Administrator may charge a reasonable fee for any
                           copies provided.

                           ERISA gives you the right to receive written notice
                           if your claim under the Plan is denied by one of the
                           Companies. It also provides you the right to a full
                           review of your case. If you request Plan materials
                           and do not receive them within 30 days, you may file
                           suit in federal court. The court may require the Plan
                           Administrator to provide the materials and pay up to
                           $100 per day until you receive them, unless the
                           materials were not sent due to reasons beyond the
                           control of the Human Resource Director.

                           If you have a claim for Severance Benefits that is
                           denied or ignored, you may file suit in a state or
                           federal court. If you are discriminated against for
                           asserting your rights, you may seek assistance from
                           the U.S. Department of Labor, or you may file suit in
                           federal court. The court will decide who should pay
                           court costs and legal fees. If you win your case, the
                           court may order the Companies to pay these

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                           costs. If you lose and if the court, for example,
                           finds that your claim is frivolous, you may be
                           ordered to pay these costs.

                           If you have any questions about the Plan, you should
                           contact the Human Resource Director. If you have any
                           questions about this statement or your rights under
                           ERISA, you should contact the nearest Area Office of
                           the Pension and Welfare Benefits Administration, U.S.
                           Department of Labor, listed in your telephone
                           directory or the Division of Technical Assistance and
                           Inquiries, Pension and Welfare Benefits
                           Administration, U.S. Department of Labor, 200
                           Constitution Avenue N.W., Washington, D.C. 20210.

STATUS OF YOUR
COMPANY BANKING
SERVICES AND
BENEFITS, IF ANY,
UPON TERMINATION
                           BANKING SERVICES - Your banking services will remain
                           at their present rates through the last day of the
                           month in which you are terminated. Your branch of
                           account, if any, will be notified by Human Resources
                           prior to such date. Please notify your branch of
                           account if you wish to change any of your banking
                           services.

                           EMPLOYEE LOANS AND CASH LINES - Your employee loan
                           will revert to the customer rate, if not already at
                           such rate, beginning the month following your
                           termination, as per your original loan agreement. If
                           you close your Company checking account, you will
                           continue to make at least the minimum monthly payment
                           on your outstanding overdraft protection line
                           balance. If you keep your Company checking account,
                           the overdraft protection line will continue under the
                           original agreement.

                           MEDICAL/DENTAL/VISION COVERAGE - Your current health
                           insurance benefits provided by the Company, if any,
                           will continue through the last day of the month in
                           which your termination occurs. Your current health
                           insurance benefits provided by the Company, if any,
                           will not continue during the period in which a
                           Supplemental Severance Benefit, if any, is being
                           paid. You may elect to continue your benefits under
                           the Consolidated Omnibus Budge Reconciliation Act
                           ("COBRA") once coverage under your current health
                           insurance benefits provided by the Company, if any,
                           ends. You will be notified by the Company's COBRA
                           administrator, and receive information to sign up.

                           COBRA is the legislation that allows you to continue
                           your current medical, dental and vision benefits up
                           to 18 months after your termination. The legislation
                           also permits individuals with pre-existing conditions
                           to continue COBRA coverage even if they obtain
                           coverage under a new employer's plan, if the new plan
                           excludes treatment for the pre-existing condition. In
                           the event that you obtain subsequent health insurance
                           coverage, you must immediately notify the Company

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                           of such coverage. Upon such notice, the Company shall
                           have no further obligation to continue such COBRA
                           coverage.

                           LONG-TERM DISABILITY ("LTD") - Long-Term Disability
                           insurance coverage ends on your last active day of
                           employment which generally is your Termination Date
                           and is not convertible to a private plan.

                           NON-CONTRIBUTORY LIFE INSURANCE/ACCIDENTAL DEATH &
                           DISMEMBERMENT ("AD&D") - The Company's
                           non-contributory life insurance will continue through
                           the last day of the month in which your termination
                           date occurs. Upon termination, you will receive a
                           notice of conversion privilege. If you are interested
                           in converting to an individual policy, please contact
                           the Human Resource Director for a Life Conversion
                           Application.

                           VOLUNTARY LIFE INSURANCE AND/OR AD&D - If you
                           currently have Voluntary Life and/or AD&D insurance
                           coverage, it will continue through the last day of
                           the month in which your termination occurs. You may
                           be eligible to continue this plan at current group
                           rates through the carrier. If you are interest in
                           continuing this insurance you must request an
                           "Election of Portability Coverage" form from the
                           Human Resource Director.

                           401(K) PLAN - If you are a current participant in the
                           401(k) Plan, a letter will be mailed to you in
                           approximately two (2) weeks after your termination
                           with information for disbursement of your funds. The
                           information will include: a Participant Distribution
                           Election Form and a Special Tax Notice regarding plan
                           payments. Since this distribution is from a qualified
                           plan, the taxable amount of your distribution is
                           eligible for rollover into another qualified plan or
                           IRA. If you have any questions regarding your
                           account, call your Company's Human Resource Director.

ADDITIONAL
PLAN INFORMATION

<TABLE>
<CAPTION>
<S>                                                             <C>
                           Plan Number:                         001

                           Type of Plan:                        Severance Benefit Plan

                           Name/Address of Registered           Arnold Hahn
                           Agent for Service of Legal Address:  Executive Vice President
                                                                Human Resource Director
                                                                First Community Bancorp
                                                                2310 Camino Vida Roble, Suite B
                                                                Escondido, CA  92009

                           Plan Year:                           January1 , 2001 - December 31, 2001
</TABLE>

                                       9
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                             FIRST COMMUNITY BANCORP

                       EMPLOYEE SEVERANCE PAY PLAN POLICY

         I HAVE READ THE ABOVE SEVERANCE PAY PLAN POLICY AND UNDERSTAND THE
         TERMS AND CONDITIONS REGARDING SAME.

Date:                                   Employee:
     -----------------------------               -------------------------------

Employee Name:                          Social Security Number:
              --------------------                             -----------------

Mailing Address:                        Company Name and Number:
                ------------------                              ----------------

Daytime Telephone Number:
                         ----------------------

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                             BASIC SEVERANCE BENEFIT

The Company notified you on , 2001 that your termination date will be , 2001.
Your Basic Severance Benefit (as defined in the Employee Severance Pay Plan)
payment, will be prepared in the amount of your Salary (as defined in the
Employee Severance Pay Plan) for one pay period, minus legally required and
authorized deductions. Based on the following statement you will (have)
receive(d) a check or a direct deposit in the same manner as you received pay
when employed on______________. This Basic Severance Benefit is paid to you in
addition to and in combination with, any regular compensation due to you from
the Company as of your termination date. Salary does not include any shift
differential, commission pay, overtime or incentive payments you may have
received during your period of employment.

1. Basic Severance Benefit Payment:
   Salary received for one pay period                       =
                                                                 ---------------

2. Regular Compensation due to you as of                    =
                                         ---------------         ---------------

   Includes               hours of accrued vacation.
            -------------

3. Total Gross Amount of Final Pay                          =
                                                                 ---------------

                                       11
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       CALCULATION OF THE SUPPLEMENTAL SEVERANCE BENEFIT - (IF APPLICABLE)

         In addition to the Basic Severance Benefit described above, you will be
         entitled to a Supplemental Severance Benefit if you (1) sign the
         Settlement Agreement and General Release (the "Agreement") delivered to
         you with this statement. The calculation of such Supplemental Severance
         Benefit is set forth below.

         A. Most recent hire date
                                                   --------------------------

         B. Termination date
                                                   --------------------------

         C. Number of full years of service
                                                   --------------------------

         D. Number of weeks of Supplemental
            Severance Benefits
                                                   --------------------------

         E. Weekly Salary rate
                                                   --------------------------

         F. Supplemental Severance Benefit
            amount (gross) (D x E)
                                                   --------------------------

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                                 ACKNOWLEDGMENTS

Prepared by:                                 Reviewed by:
             -----------------------                      ----------------------

Date:                                        Date:
      ------------------------------               -----------------------------

The above information has been discussed with me and I agree that it is correct.

----------------------------                 ----------------
Employee's Signature                         Date

I authorize the Human Resource Director or my former manager to contact me in
writing or by telephone at my home.

-----------------------------                -----------------
Employee's Signature                         Date

                                       13<PAGE>

                         EXECUTIVE EMPLOYMENT AGREEMENT

         THIS AGREEMENT (the "Agreement") is made effective as of the 21st day
of October, 1999, between FIRST PROFESSIONAL BANK, N.A. ("Employer") and GENE
GAINES ("Executive").

                                    RECITALS

         WHEREAS, Employer desires to employ Executive as its Chief Executive
Officer, and Executive desires to be employed by Employer, on the terms and
subject to the conditions set forth in this Agreement:

         NOW, THEREFORE, in consideration of the foregoing promises and the
terms, covenants and conditions set forth herein, the parties hereto agree as
follows:

         1. DEFINITIONS. For purposes of this Agreement, the definition set
forth on Exhibit B hereto shall apply unless the context clearly indicates
otherwise.

         2. EMPLOYMENT AND TERM. Employer hereby employs Executive and Executive
hereby accepts employment, upon the terms and conditions set forth herein. The
term of this Agreement (the "Term") shall be for a period of one year,
commencing October 20, 1999 and ending on October 19, 2000, unless earlier
terminated in accordance with the provisions hereof. This Agreement shall
automatically renew for successive one-year periods thereafter, unless
terminated by either party giving written notice of termination to the other
party at least ninety (90) days prior to the expiration of the then-current
one-year term.

         3. DUTIES. Executive shall serve as the Chief Executive Officer of
Employer and shall perform the duties and have the responsibilities set forth on
Exhibit A attached hereto and incorporated herein by reference, and shall have
the authority and perform such other duties, services and responsibilities
incident to such position as are customary of the Chief Executive Officer of a
bank, and such other reasonable duties and responsibilities as are determined
from time to time by the Board. Executive shall report to the Board, Executive
shall devote one hundred percent (100%) of his business time, attention and
skill to the performance of his duties hereunder, except that Executive is
permitted to spend a reasonable amount of business time to complete his
obligations under his Consulting Agreement with Shapiro Consulting Group, and
shall perform his duties to the best of his ability and subject to the policies
and instructions of the Board. Executive will not, without the prior written
approval of Employer, engage in any other business activity which would
interfere with the performance of his duties, services, and responsibilities
hereunder or which is in violation of policies established from time to time by
the Board.

         4. COMPENSATION.

                  (a) SALARY. Executive will receive an annual base salary of
One Hundred Fifty Thousand Dollars ($150,000) during the Term (the "Annual Base
Salary"), payable in equal bi-weekly installments. Salary payments shall be
subject to withholding and all other applicable taxes. Executive's Annual Base
Salary shall be reviewed at least annually by the Compensation Committee of the
Board and may be increased in the discretion of the Board based upon Executive's
performance. Employer's performance and profitability and other factors
generally used by Employer and in the industry in adjusting salaries of
executive employees.

                                       1
<PAGE>

                  (b) ANNUAL BONUS. Executive may be eligible to receive an
annual bonus in an amount of up to 50% of his Annual Base Salary, based upon the
attainment of either (i) specific corporate budgetary and strategic objectives
or (ii) specific Individual performance objectives, any of which shall be set by
the Board. Bonuses, if any, may be payable in a combination of a lump sum cash
payment and the issuance of options to purchase shares of common stock of
Employer's parent company, Professional Bancorp, Inc. ("PBI"), to be allocated
as mutually agreed upon by the parties.

                  (c) STOCK OPTIONS. In consideration of Executive agreeing to
enter into this Agreement, on November 1, 1999, Employer caused PBI to grant to
Executive fully vested stock options to purchase 30,000 shares of PBI's common
stock at an exercise price of $11.16 per share. These 30,000 options shall be
exercisable on the earlier of: (i) the closing of the sale of all or
substantially all of the assets of Employer or PBI to, or the merger of Employer
or PBI with, a third party, (ii) on the fifteenth of the month anniversary date
of the effective date of this Agreement if Employer or PBI has not entered into
a Definitive Agreement to sell all or substantially all of its assets to or to
merge with a third party, or (iii) the date Employer terminates this Agreement
at will pursuant to Section 8(e) hereof or Employee terminates this Agreement
for Good Cause pursuant to Section 8(c) hereof. On the nine month anniversary
date of the effective date of this Agreement, if by such date PBI or Employer
has not entered into a Definitive Agreement to sell all or substantially all of
its assets to or to merge with a third party, Employer shall cause PBI to grant
to Executive fully vested and immediately exercisable options to purchase 20,000
shares of PBI's common stock at an exercise price determined pursuant to the
applicable stock option plan. Executive shall be eligible to receive additional
performance-based options, consistent with PBI's applicable stock option plans,
as determined by the Compensation Committee of the Board. All options are
subject to the terms of the applicable stock option plan(s).

                  (d) SEVERANCE. If Employer terminates this Agreement at will
pursuant to Section 8(e) hereof or if Employer terminates this Agreement for
Good Reason pursuant to Section 8 (c ) hereof, Employer will continue to pay
Executive the monthly base salary that he is earning at the time of the Notice
of Termination for twelve months following the date of the Notice of
Termination.

         5. FRINGE BENEFITS.

                  (a) INCENTIVE PLANS/BENEFITS. Subject to the eligibility
requirements of each plan, Executive shall be entitled to participate in all
medical or health plans, dental and vision plans, life insurance plans,
disability plans, 401(K)/savings and retirement plans, welfare plans, incentive
plans, equity based plans and all other benefits generally available to
full-time officers or senior management employees of Employer in effect from
time to time. All insurance is subject to the terms of the policies in effect
and to Executive's insurability under such policies.

                  (b) AUTO ALLOWANCE. Executive shall be entitled to an auto
allowance of Five Hundred Dollars ($500) per month.

                  (c) VACATION. Executive shall receive twenty (20) paid
vacation days per year.

                  (d) BUSINESS EXPENSES. In accordance with the policies
relating to Employer's senior executive employees, Employer will reimburse
Executive for reasonable out-of-pocket expenses incurred by Executive in the
performance of his duties hereunder. All such reimbursements will be made upon
submission to Employer of written expense reports or other documentation which
describe and substantiate such business expenses and which are in such form as
Employer may from time to time prescribe for its executive employees.

                                       2
<PAGE>

6. CONFIDENTIAL INFORMATION. Executive acknowledges that in his position with
Employer, he will be exposed to and receive information relating to the
confidential affairs of Employer, Employer's subsidiaries and PBI, including but
not limited to, Employer's, Employer's subsidiaries' and PBI's customer lists,
financial information, strategic plans, business and marketing plans and
strategies, information concerning Employer's, Employer's subsidiaries' and
PBI's products, promotions, customers, development, financing, expansion plans,
business policies and practices, and other information considered by Employer,
Employer's subsidiaries and PBI to be confidential, proprietary and in the
nature of trade secrets (the "Confidential Information"). Executive acknowledges
that the Confidential Information is a valuable, special and unique asset of
Employer's subsidiaries' and PBI's businesses. Executive agrees to keep all
Confidential Information confidential and shall not, during the Term or
thereafter, directly or indirectly disclose all or any part of the Confidential
Information in any manner whatsoever to any person, firm, corporation,
association or other than outside professionals employed by Employer or use such
Confidential Information for his own personal benefit, without the prior written
consent of Employer, unless such disclosure is made in the ordinary course of
Employer's business and is necessary and advances the best interests of
Employer.

         7. EMPLOYER DOCUMENTS. Executive expressly agrees that all plans,
customer lists, reports, manuals, documents, files, studies, instruments and
other materials used and/or developed by Executive relating to Employer,
Employer's subsidiaries and PBI and their respective customers are solely the
property of the Employer, Employer's respective subsidiary or PBI and that
Executive has no right, title or interest therein. During Executive's employment
with Employer and after termination thereof, regardless of the reason therefor,
Executive shall hold fiduciary capacity for the benefit of Employer, all such
plans, lists, disks, documentation, programs, reports, memoranda, diaries,
notes, records, letters, manuals and all other documents and information of
Employer. Upon termination of Executive's employment for any reason, Executive
shall immediately deliver all such documents, without retaining any copies
thereof, to Employer.

         8. TERMINATION OF EMPLOYMENT.

                  (a) DEATH OR INCAPACITY. This Agreement shall terminate
automatically upon Executive's death during the Term. This Agreement shall also
terminate on the date of the determination by the Board that the Incapacity of
Executive has occurred during the Term ("Incapacity Effective Date").

                  (b) CAUSE. Employer may terminate Executive's employment for
Cause, as defined herein.

                  (c) GOOD REASON. Executive may terminate his employment for
Good Reason, as defined herein.

                  (d) WRITTEN NOTICE. Executive may terminate this Agreement at
any time upon ninety (90) days' prior written notice to Employer.

                  (e) AT WILL. Employer may terminate this Agreement by written
notice to Executive at any time for any reason.

                  (f) NOTICE OF TERMINATION. Any termination (except by death)
shall be communicated by a Notice of Termination to the other party hereto given
in accordance with Section 14 of this Agreement. For purposes of this Agreement,
a "Notice of Termination" means a written notice which (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 under the provision so indicated, (iii) in
the case of termination is pursuant to a resolution of the Board (which, in the
case of Cause, is pursuant to Section 8(b) hereof), and (iv) if the Date of
Termination (as defined below) is other than the date of such notice, specifies
the termination date. The failure by 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. "Date of Termination" means (I) if
Executive's employment is terminated by Employer for Cause, or by Employer other
than for Cause, death or Incapacity, the date of the Notice of Termination

                                       3
<PAGE>

or any later date specified therein, as the case may be, (ii) if Executive's
employment is terminated by Executive for Good Reason, the Date of Termination
shall be thirty (30) days after the date of the Notice of Termination, however
Employer may specify an earlier date in its discretion after its receipt of the
notice from Executive, (iii) if Executive's employment is terminated by reason
of death or Incapacity, the Date of Termination shall be the date of death of
Executive or the Incapacity Effective Date, as the case may be, and (iv) if
Executive's employment is terminated by Written Notice by Executive, the Date of
termination shall be ninety (90) days after the date of the Notice of
Termination.

         9. OBLIGATIONS OF EMPLOYER UPON TERMINATION.

                  (a) OBLIGATIONS UPON TERMINATION. Upon termination of this
Agreement for any reason, Employer's sole obligation to Executive (except as
otherwise expressly set forth herein) shall be to pay any accrued but unpaid
salary or bonus up to the Date of Termination, less withholding and other taxes
are required by law, and provide to Executive any other accrued amounts or
benefits required to be paid or provided or which Executive is eligible to
receive under any Employer plan in which Executive participated (such other
amounts and benefits shall be paid to Executive within thirty (30) days after
the Date of Termination; and any benefits shall be paid pursuant to the
applicable Employer plan.

                  (b) EXCISE TAX LIMITATION. To the extent that the payment and
benefits provided under this Agreement and payments or benefits provided to, or
for the benefit of, Executive under any other Employer plan or agreement (such
payments or benefits are collectively referred to as the "Payments") would be
subject to the excise tax (the "Excise Tax") imposed under Section 4999 of the
Internal Revenue Code of 1986, as amended, the Payments shall be reduced (but
not below zero) if and to the extent necessary so that no Payment to be made or
benefit to be provided to Executive shall be subject to the Excise Tax.

         10. NON-EXCLUSIVITY OF RIGHTS. Nothing in this Agreement shall prevent
or limit Executive's continuing or future participation in any Employer plan for
which Executive may qualify, nor shall anything herein limit or otherwise affect
such rights as Executive may have under any contract or agreement with Employer
or any of Employer's subsidiaries. Amounts which are vested benefits or which
Executive is otherwise entitled to receive under any Employer plan or subsequent
to the Date of Termination shall be payable in accordance with such plan,
policy, program, contract or agreement except as explicitly modified by this
Agreement.

         11. NON-SOLICITATION ON NON-COMPETITION. During the Term hereof,
Executive agrees that he shall not, directly or indirectly, either individually
or as an owner, partner, director, agent, employee, or otherwise, solicit,
endeavor to entice away from Employer or any of Employer's subsidiaries or
otherwise engage in any activity intended to disrupt or terminate the
relationship of Employer or nay of Employer's subsidiaries with any of their
clients, customers, employees or agents. During the Term hereof, Executive
agrees that he shall not, directly or indirectly, either individually or as an
owner, partner, director, agent, employee, consultant or otherwise, compete with
Employer or any of Employer's subsidiaries or PBI.

         12. REMEDIES. Executive agrees that any breach by Executive of the
terns of Section 6, 7 or 11 hereof would result in irreparable injury and damage
to Employer and Employer's parents and/or subsidiaries for which Employer and
Employer's parents and subsidiaries would have no adequate remedy at law.
Therefore, in the event of Executive's breach or threatened breach of Section
6,7 or 11 hereof, Executive agrees that Employer and Employer's parents and
subsidiaries shall be entitled to an immediate preliminary restraining order and
an injunction restraining and enjoining Executive to prevent such breach or
threatened breach or continued breach by Executive and any and all persons or
entities acting for and/or with Executive, without having to prove damages, and
to all costs and expenses, including reasonable attorneys' fees and costs, in
addition to any other remedies to which Employer or Employer's subsidiaries may
be entitled at law or in equity. In addition to or in lieu of the above,
Employer or Employer's subsidiaries may pursue all other remedies available to
Employer and Employer's subsidiaries for such breach or threatened breach,
including the recovery of damages and reasonable attorneys' fees, from
Executive.

         13. SUCCESSORS: BINDING AGREEMENT. This Agreement shall be binding upon
the respective successors, assigns, heirs and representative of the parties.

                                       4
<PAGE>

         14. NOTICES. Any notice, request or other information to be given or
served hereunder by any party to another shall be deemed given or served
hereunder by any party to another if in writing and delivered personally or sent
by prepaid registered or certified mail, return receipt requested, to:

                  If to Employer:  First Professional Bank, N. A.
                                   606 Broadway
                                   Santa Monica, Ca. 90401
                                   Attn:  Mr. Matthew Wagner,
                                          Chairman of the Board

                  If to Executive: Mr. Gene F. Gaines
                                   1210 North Wetherly Drive
                                   Los Angeles, Ca. 90069

Or to such other address as any party may designate for itself by notice to the
other party given in accordance with the provisions hereof.

         15. ENTIRE AGREEMENT. This Agreement contains the entire agreement of
the parties with respect to the subject matter hereof and supersedes any and all
other agreements or understandings, written or oral, relating to such subject
matter. Each party to this Agreement acknowledges that no representations,
inducements, promises or agreements, oral or otherwise, have been made by any
party, or anyone acting on behalf of any party, which are not embodied herein,
and that no other agreement, statement or promise not contained in this
Agreement concerning its subject matter shall be valid or binding .

         16. MODIFICATION: WAIVER. No provision of this Agreement may be
modified, waived or discharged unless such modification, waiver or discharge is
agreed to in writing and signed by each party hereto. No waiver by either party
hereto at any time of any breach by the other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or at any prior or subsequent time.

         17. NON-ASSIGNABILITY. Executive acknowledges that his services are
unique and personal. Accordingly, Executive may not assign any of his rights or
delegate his duties or obligations under this Agreement.

         18. GOVERNING LAW. This Agreement shall be governed and construed and
the legal relationship and obligations of the parties determined in accordance
with the laws of the State of California.

         19. SEVERABILITY. Should any provision of this Agreement for any reason
be declared invalid, void or unenforceable by a court of competent jurisdiction,
the validity and binding effect of any remaining portion shall not be affected,
and the remaining portions of this Agreement shall remain in full force and
effect as if this Agreement had been executed with said provision eliminated.

         20. SURVIVAL. The provisions of Sections 6,7 and 11 shall survive the
termination or expiration of the Agreement.

         21. ARBITRATION. In the event that any dispute shall arise between the
parties concerning the provisions of this Agreement by either of the parties
hereto, and the parties are unable to mutually adjust and settle same, such
dispute or disputes (other that dispute(s) concerning an alleged or threatened
breach be Executive of Section 6,7 or 11 hereof) shall be submitted to binding
arbitration in Santa Monica or Los Angeles, California pursuant to the
applicable commercial rules of the American Arbitration Association, and the
decision and determination of the arbitrators shall be final and binding upon
the parties.

         22. KEY PERSON INSURANCE. Executive agrees to make all reasonable
effort to obtain any key person insurance requested by Employer.

                                       5
<PAGE>

         IN WITNESS WHEREOF, the Bank has caused this Agreement to be executed
in its corporate name by an officer duly authorized to enter into and execute
this Agreement, and Executive has affixed his signature hereto, as of the date
and year first above written.

                                    FIRST PROFESSIONAL BANK, N.A.

                                    By:
                                         ---------------------------------------
                                         Julie P Thompson, Chairman of the Board

                                         ---------------------------------------
                                         Gene Gaines

                                       6
<PAGE>

                FIRST AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT

         This First Amendment to Executive Employment Agreement I made effective
as of the 1st day of February, 2000 among FIRST PROFESSIONAL BANK, N.A. (the
"Bank") and PROFESSIONAL BANCORP, INC. ("PBI") (PBI and the Bank being
collectively referred to herein as "Employer") and Gene Gaines ("Executive").

                                    RECITALS

         WHEREAS, the Bank and Executive entered into an Employment Agreement
dated effective as of the 21st day of October, 1999 (the "Employment
Agreement"); and

         WHEREAS, PBI now desires to also employ Executive, and PBI, the Bank
and Executive desire to amend the Employment Agreement in certain respects.

         NOW, THEREFORE, in consideration of the foregoing promises and the
terms covenants and conditions that are set forth herein, the parties here to
agree as follows:

1.       SECTION 3.  The first sentence of Section 3 of the Employment Agreement
is hereby amended to read as follows:

                  "Effective as of the date hereof, Executive shall serve as the
         Chairman of the Board and Chief Executive Officer of both PBI and the
         Bank and shall perform the duties and the responsibilities set forth in
         Exhibit A attached hereto and incorporated herein in reference and
         shall have the authority and perform such other duties, services and
         responsibilities incident in such positions as are the customary of the
         Chairman of the Board and Chief Executive Officer of a bank and a bank
         holding company, and such other reasonable duties and responsibilities
         that are determined from time to time by the Boards of Directors of the
         Bank and PBI (collectively, the "Board").

2.       SECTION 4(a). The first sentence of Section 4(a) of the Employment
Agreement is hereby amended to read as follows:

                  "Effective February 1, 2000, Executive shall receive an annual
         base salary of Two Hundred Thousand Dollars ($200,000) during the
         remainder of the Term (the "Annual Base Salary"), payable in equally,
         bi-weekly installments."

3.       SECTION 4(c). Section 4(c) is hereby amended and restated in its
entirety to read as follows:

                  "(c) STOCK OPTIONS. Effective February 1, 2000, the options to
         purchase 30,000 shares of PBI's common stock granted to Executive on
         November 1, 1999 are cancelled. In consideration of Executive agreeing
         to enter into this First Amendment to Executive Employment Agreement,
         PBI shall grant to Executive, effective February 1, 2000, stock options
         to purchase 100,000 shares of PBI. Of these options, as many thereof as
         possible shall be incentive stock options (as permitted by the
         applicable plan), and the remainder shall be non-qualified options. The
         options shall vest as follows: (i) option to purchase 50,000 shares
         shall vest immediately on the effective date hereof, (ii) options to
         purchase 25,000 shares shall vest on February 1, 2001, and (iii) the
         remaining options to purchase $25,000 shares shall vest on February 1,
         2002. The exercise price of the options hall be the average of the
         closing sales prices of the shares of PBI during the 30 day period
         immediately preceding February 1, 2000."

4.       RATIFICATION. The remainder of the Employment Agreement is hereby
ratified in all respects.

                                       7
<PAGE>

         IN WITNESS WHEREOF, this First Amendment has been executed by Executive
and by duly authorized officers of the Bank and PBI effective as of the date
first written above.

                                      FIRST PROFESSIONAL BANK, N.A.
--------------------------------
Gene Gaines, Executive
                                      By:
                                           --------------------------------
                                      Title:
                                              -----------------------------

                                      PROFESSIONAL BANCORP, INC.

                                      By:
                                           --------------------------------
                                      Title:
                                              -----------------------------

                                       8

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