Document:

EX-10.1

EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”) is made effective as of May 6, 2011 (the “Effective
Date”), by and among First PacTrust Bancorp, Inc. a Maryland corporation (“Bancorp”) and Pacific
Trust Bank, a federally-chartered savings bank (“Bank”) (collectively “Employer or “First Pac”),
and Marangal I. Domingo (“Employee”).

WITNESSETH:

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

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

1. Employment. Employer hereby agrees to employ Employee as Chief Financial Officer,
and Employee hereby accepts employment with Employer upon the terms and conditions herein set
forth.

2. Term. The term of employment under this Agreement shall begin on May 6, 2011 (the
“Commencement Date”), and shall expire on the date that is three years from the
Commencement Date (the “Term End Date”), unless terminated sooner as hereinafter provided
or unless extended as provided in the next sentence. Commencing on May 6, 2014, and on each
anniversary of such date, the term of this Agreement shall automatically be extended for one
additional year unless either party notifies the other party at least ninety (90) days prior to
such date or anniversary date that the term of this Agreement will not be extended. Reference
herein to the term hereunder shall refer to both the initial term and any extended term hereunder.

3. Duties. Employee will, during the term hereof:

	 	(a)	 	be employed by Employer on a full-time basis with all such
authority, duties and responsibilities as are commensurate with his position as
Chief Financial Officer and as may be consistent with such position, reporting
directly to the President or Chief Executive Officer of the Bank or Bancorp, as
the case may be, and shall perform such other duties and responsibilities on
behalf of Employer and its affiliates as reasonably may be directed by the
Boards of Directors of Employer; and

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

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

	 	(a)	 	on the Effective Date, a one-time signing bonus in the form of
an inducement grant of 5,000 shares of restricted stock of Bancorp, which
            shares shall vest in one-third annual increments commencing on the first
anniversary of the Effective Date. The terms of such grant shall be subject to
the terms of the final restricted stock agreement evidencing such grant, the
form of which shall be attached hereto as Exhibit A (the “Restricted Stock
Agreement”). In the event of a conflict between the Restricted Stock Agreement
and this Agreement, the terms of the Restricted Stock Agreement shall control.

	 	(b)	 	a base salary at the rate of $275,000 per annum, payable in
periodic payments in accordance with Employer’s practices for other executive,
managerial, and supervisory employees (but not less frequently than monthly),
as such practices may be determined from time to time and subject to customary
tax withholdings. The Boards of Directors of Employer or the Compensation
Committees of the Boards of Directors of Employer (the “Committees”) will
review such base salary at least annually and, in their discretion, may
increase such salary.

	 	(c)	 	additional or special compensation, such as equity awards,
incentive pay or bonuses, based upon Employee’s performance, as the Boards of
Directors of Employer or the Committees in their discretion, may from time to
time determine. Any amounts payable under this Section 4(c) that constitute
“nonqualified deferred compensation” within the meaning of Section 409A (as
defined in Section 14(a) of this Agreement) shall be subject to such terms or
conditions that satisfy the applicable requirements of Section 409A.

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

5. Options:

	 	(a)	 	General. Executive may receive grants of options from
Bancorp from time to time for his services as an executive at Employer and/or
any subsidiary of Employer. On the Effective Date, Executive shall receive an
inducement grant of options from Bancorp for the purchase of 80,000 shares of
Bancorp’s common stock at an exercise price per share equal to the closing
market price per share of Bancorp’s common stock on the Effective Date (the
“Initial Grant”). The Initial Grant shall become vested and exercisable in
three annual installments of 26,666 shares, 26,667 shares and 26,667 shares on
the first, second and third anniversaries, respectively, of the Effective Date.
The terms of the Initial Grant, including the foregoing vesting schedule, shall
be subject to the terms of the final option agreement which evidences the
Initial Grant, which shall be attached hereto as Exhibit B (the “Initial Grant
Agreement”). In the event of a conflict between the Initial Grant Agreement
and this Agreement, the terms of the Initial Grant Agreement shall control.

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

6. Automobile and Other Expenses. During the term of this Agreement, Employer may:
(i) elect to furnish Employee with the use of an automobile of a make and model mutually agreeable
to Employer and Employee; or (ii) provide Employee with an auto allowance of $700.00 per month,
with annual increases in such payment to be determined by the Boards of Directors of Employer or
the Committees to reflect increases in the cost of living or fuel costs. Employee shall be
reimbursed for other expenses incurred in connection with Employer’s business in accordance with
Employer’s expense reimbursement policy for senior executives.

7. Benefits. Employee shall be entitled to participate in such vacation, life
insurance, medical, dental, pension, supplemental disability, retirement plans and other programs
as may be approved from time to time by Employer for the benefit of its executive employees.

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

9. Termination.

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

	 	(b)	 	Employer may terminate Employee’s employment hereunder for any
reason, with or without Cause, at any time upon notice to Employee, but any
termination by Employer other than termination for Cause shall not prejudice
Employee’s right to compensation or other benefits under this Agreement.

	 	(c)	 	Employee may terminate his employment hereunder without Good
Reason at any time upon forty-five (45) days’ prior written notice to Employer.
In the event of termination of Employee’s employment pursuant to this Section
9(c), Employer may elect to waive the period of notice, or any portion thereof,
and, if Employer so elects, Employer will pay Employee his base salary for the
period so waived.

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

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

10. Severance Benefits.

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

	 	(b)	 	In the event that Employer terminates Employee’s employment
without Cause or Employee resigns with Good Reason, subject to Sections
10(e)-(i) and Section 14, (i) Employee shall be entitled to severance pay equal
to twenty four (24) months’ salary at the rate of salary in effect on the date
his employment with Employer terminates, (ii) the Initial Grant, to the extent
not theretofore fully vested, shall become fully vested and immediately
exercisable in accordance with its terms and (iii) in the event the Employee is
not theretofore fully vested in the restricted shares provided under Section
4(a) as a signing bonus, the Employee shall be entitled to be appointed as an
advisor of Employer and shall be permitted to continue serving in that capacity
until all such restricted shares have vested in full.

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

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

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

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

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

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

(i) For purposes of this Agreement:

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

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

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

	 	(1)	 	assign to Employee duties that
are materially inconsistent with that of his position as Chief
Financial Officer of Employer (including status, offices,
title(s) and reporting requirements), authority, duties or
responsibilities, or any other action by Employer which results
in a material diminution in such position, authority, duties or
responsibilities;

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

	 	(3)	 	materially breach this Agreement;
or

	 	(4)	 	require Employee to relocate his
principal business offices outside of Southern California; or
his principal residence outside of Orange County, California, or
assign to Employee duties that would reasonably require such
relocation.

11. Nonsolicitation.

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

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

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

Employee agrees promptly to reduce to writing and to disclose and assign, and hereby does
assign, to Employer, its subsidiaries, successors, assigns and nominees, all inventions,
discoveries, improvements, copyrightable material, trademarks, programs, computer software and
ideas concerning the same, capable of use in connection with the business of Employer or any of its
affiliates, which Employee may make or conceive, either solely or jointly with others, during the
period of his employment by Employer, its subsidiaries or successors.

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

Upon a request by Employer, Employee will promptly report to Employer all discoveries,
inventions, or improvements of whatsoever nature conceived or made by him at any time he was
employed by Employer, its parent, subsidiaries or successors. All such discoveries, inventions and
improvements which are applicable in any way to Employer’s business shall be the sole and exclusive
property of Employer.

The covenants set forth in this Section 12 are made by Employee in consideration of the
employment, or continuing employment of, and the compensation paid to, Employee during his
employment by Employer. The foregoing covenants will not prohibit Employee from disclosing
confidential or other information to other employees of Employer or to third parties to the extent
that such disclosure is necessary to the performance of his duties under this Agreement.

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

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

14. Section 409A.

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

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

	 	(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 the
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 expense was incurred; and (iii) the right to reimbursement shall not
be subject to liquidation or exchange for any other benefit.

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

15. 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 Employer’s Boards of Directors to comply with the “Final Interagency Guidance on Sound
Incentive Compensation Policies” issued on an interagency basis by the Board of Governors of 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.

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 (including, without limitation, any provisions so required under 12
C.F.R Section 563.39) 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 the Bank shall be deemed to reduce, to the same extent, the obligation of Bancorp
to provide such payments or other compensation, and vice versa.

18. Assignment; Benefit. No party shall have the right to assign this Agreement or
any rights or obligations hereunder without the consent of each of the other parties; provided,
however, that Employer may assign its rights and obligations hereunder (i) to any entity controlled
by, under the control of, or under common control with, Employer (as long as such entity is no less
capable of fulfilling the obligations of Employer hereunder), or (ii) to any successor to Employer
upon any liquidation, dissolution or winding up of Employer, upon any merger or consolidation of
Employer or upon any sale of all or substantially all of the assets of Employer (as long as such
successor is capable of fulfilling the obligations of Employer hereunder).

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 Employee, its and his
heirs, personal representatives and successors including without limitation Employee’s estate and
the executors, administrators, or trustees of such estate.

22. Relevant Law. To the extent not governed by the Federal laws of the United States
of America, this Agreement shall be construed and enforced in accordance with the laws of the State
of California. Any dispute between the parties hereto not relating to the enforcement of Section
11 or Section 12 hereof shall be settled by arbitration in California in accordance with the then
applicable rules of the American Arbitration Association and judgment upon the award rendered may
be entered in any court having jurisdiction thereof.

23. Notices. All notices, requests, demands and other communications in connection
with this Agreement shall be made in writing and shall be deemed to have been given when delivered
by hand or two of Employer’s business days after mailing at any general or branch United States
Post Office, by registered or certified mail postage prepaid, addressed as follows, or to such
other address as shall have been designated in writing by the addressee:

	 	(a)	 	If to Employer:

Chairman of the Board

First PacTrust Bancorp, Inc.

610 Bay Boulevard

Chula Vista, California 91910; and

Chairman of the Board

Pacific Trust Bank

610 Bay Boulevard

Chula Vista, California 91910

If to Employee:

Marangal I. Domingo

9 Marble Sands

Newport Beach, CA 92660

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

25. Captions. The headings and captions hereof are for convenience only and shall not
affect the construction of this Agreement.

26. Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original and all of which shall constitute but one and the same Agreement,
which shall be sufficiently evidenced for all purposes by any one executed counterpart.

27. Construction. Employer and the Employee acknowledge that this Agreement was the
result of arms-length negotiations between sophisticated parties each represented by legal counsel.
Each and every provision of this Agreement shall be construed as though both parties participated
equally in the drafting of same, and any rule of construction that a document shall be construed
against the drafting party shall not be applicable to this Agreement.

28. Survival. The obligations contained in this Agreement shall survive the
termination of Employee’s employment with Employer or expiration of this Agreement as necessary to
carry out the intentions of the parties as described herein.

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

Employee:

      

First PacTrust Bancorp, Inc.

By:

      

Its:       

Pacific Trust Bank

By:

      

Its:       

EXHIBIT A

FORM OF RESTRICTED STOCK AGREEMENT

1

FIRST PACTRUST BANCORP, INC.

RESTRICTED STOCK AGREEMENT

RS No.   

Shares of Restricted Stock are hereby awarded on May 6, 2011 by First PacTrust Bancorp, Inc.,
a Maryland corporation (the “Corporation”), to Marangal I Domingo (the “Grantee”), in accordance
with the following terms and conditions:

1. Share Award. Pursuant to Section 4(a) of the Employment Agreement among the
Corporation, Pacific Trust Bank and the Grantee dated as of the date hereof (the “Employment
Agreement”), as an inducement material to the Grantee’s entering into employment with the
Corporation, the Corporation hereby awards to the Grantee 5,000 shares (“Shares”) of common stock
of the Corporation (“Common Stock”).

2. Restrictions on Transfer and Restricted Period. During the period (the “Restricted
Period”) commencing on the date of this Award Agreement and terminating on May 6, 2014, Shares with
respect to which the Restricted Period has not lapsed may not be sold, assigned, transferred,
pledged, or otherwise encumbered by the Grantee except, in the event of the death of the Grantee,
by will or the laws of descent and distribution or pursuant to a “domestic relations order,” as
defined in Section 414(p)(1)(B) the Internal Revenue Code of 1986, as amended (the “Code”), or as
hereinafter provided. Shares with respect to which the Restricted Period has lapsed shall
sometimes be referred to herein as “Vested.”

Provided that the Grantee has commenced employment under the Employment Agreement and does not
incur a Termination of Service or termination of employment prior to the Commencement Date (as
defined in the Employment Agreement), Shares shall become Vested in accordance with the following
schedule:

	 	 	 
	Date of Vesting	 	Cumulative Number of Shares Vested
	May 6, 2012

May 6, 2013

May 6, 2014

	 	1,666

3,333

5,000

The Compensation Committee of the Board of Directors of the Corporation (or such other committee
as may be designated by the Board of Directors of the Corporation)(the “Committee”) shall have the
authority, in its discretion, to accelerate the time at which any or all of the restrictions shall
lapse with respect to any Shares or to remove any or all of such restrictions, whenever the
Committee may determine that such action is appropriate by reason of changes in applicable tax or
other laws, changes in circumstances occurring after the commencement of the Restricted Period, or
any other reason. As used herein, the term “Termination of Service” means cessation of service
after the Commencement Date (as defined in the Employment Agreement) for any reason, whether
voluntary or involuntary, so that the affected individual is not a director, advisory director,
employee or advisor of the Corporation or any affiliate of the Corporation.

3. Termination of Service. Except as provided in Section 8 below, if the
Grantee incurs a Termination of Service for any reason (other than death or disability), all Shares
which are not Vested at the time of such Termination of Service shall upon such Termination of
Service be forfeited to the Corporation. If the Grantee incurs a Termination of Service by reason
of death or disability, all Shares awarded pursuant to this Award Agreement shall become Vested at
the time of such termination, and the Shares shall not thereafter be forfeited. In the event that
the employment of Grantee is terminated prior to the Commencement Date (as defined in the
Employment Agreement), all Shares shall upon such termination be forfeited to the Corporation.

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

The Grantee agrees that simultaneously with the execution of this Award Agreement, the Grantee
shall execute the stock powers attached hereto and that the Grantee shall promptly deliver such
stock powers to the Corporation. The Grantee further agrees to execute and deliver any and all
additional stock powers and/or other instruments as the Corporation from time to time requests as
it may, in its judgment, deem to be advisable to fulfill the purposes of this Award Agreement.

5. Grantee’s Rights. Subject to all limitations provided in this Award Agreement, the
Grantee, as owner of the Shares during the Restricted Period, shall have all the rights of a
stockholder, including, but not limited to, the right to receive all dividends paid on the Shares
and the right to vote such Shares.

6. Expiration of Restricted Period. Upon the lapse or expiration of the Restricted
Period with respect to a portion of the Shares, the Corporation shall release such Shares to the
Grantee (i) by appropriate transfer to an unrestricted book entry account maintained by the
Corporation (or its transfer agent or other designee) for the benefit of the Grantee (or, if the
Grantee is deceased, to his legal representative) or by other appropriate electronic notation of
the lapse or expiration of the Restricted Period with respect to such Shares, (ii) by delivering to
the Grantee (or, if the Grantee is deceased, to his legal representative) a certificate issued in
respect of such Shares (without any legend contemplated by Section 4 above), or (iii) by any other
means deemed appropriate by the Corporation.

7. Adjustments for Changes in Capitalization of the Corporation. In the event of any
change in the outstanding shares of Common Stock by reason of any reorganization, recapitalization,
stock split, stock dividend, combination or exchange of shares, merger, consolidation, or any
change in the corporate structure of the Corporation or in the shares of Common Stock, the number
and class of Shares covered by this Award Agreement shall be appropriately adjusted by the
Committee, whose determination shall be conclusive. Any shares of Common Stock or other securities
received, as a result of the foregoing, by the Grantee with respect to Shares subject to the
restrictions contained in Section 2 above shall also be subject to such restrictions, and any
certificate or other instruments representing or evidencing such shares or securities shall be
legended and deposited with the Corporation in the manner provided in Section 4 above.

8. Effect of Change in Control.  If a tender offer or exchange offer for shares
of the Corporation (other than such an offer by the Corporation) is commenced, or if a change in
control (as defined below) shall occur, and the Grantee within twelve months thereafter incurs a
Termination of Service for any reason whatsoever other than Cause (as defined in the Employment
Agreement), all previously unvested Shares shall vest in full upon the happening of such events;
provided, however, that no Shares which have previously been forfeited shall thereafter become
Vested. As used herein, the term “change in control” means the occurrence of any of the following
three events: (i) any third person, including a “group” as defined in Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended, shall become the beneficial owner of shares of the
Corporation with respect to which 25% or more of the total number of votes for the election of the
Corporation’s Board of Directors may be cast, (ii) as a result of, or in connection with, any cash
tender offer, merger or other business combination, sale of assets or contested election, or
combination of the foregoing, the persons who were directors of the Corporation shall cease to
constitute a majority of the Corporation’s Board of Directors, or (iii) the stockholders of the
Corporation shall approve an agreement providing either for a transaction in which the Corporation
will cease to be an independent publicly owned corporation or for a sale or other disposition of
all or substantially all the assets of the Corporation.

9. Delivery and Registration of Shares of Common Stock. The Corporation’s obligation
to deliver Shares hereunder shall, if the Committee so requests, be conditioned upon the receipt of
a representation as to the investment intention of the Grantee, in such form as the Committee shall
determine to be necessary or advisable to comply with the provisions of the Securities Act of 1933,
as amended (the “Securities Act”) or any other federal, state or local securities legislation. It
may be provided that any representation requirement shall become inoperative upon a registration of
the Shares or other action eliminating the necessity of such representation under such Securities
Act or other securities legislation. The Corporation shall not be required to deliver any Shares
hereunder prior to (i) the admission of such Shares to listing on any stock exchange on which
Shares may then be listed and (ii) the completion of such registration or other qualification of
such Shares under any state or federal law, rule or regulation, as the Committee shall determine to
be necessary or advisable.

10. Grantee Service. Subject to Grantee’s right, under Section 10(a) of the
Employment Agreement, to be appointed as an advisor of the Corporation and to continue serving as
an advisor of the Corporation until all of the Shares have Vested in full in the event that
Grantee’s employment is terminated by the Corporation without “Cause” (as defined in the Employment
Agreement) or is terminated as a result of the Grantee’s resignation for “Good Reason” (as defined
in the Employment Agreement), nothing in this Award Agreement shall limit the right of the
Corporation or any of its Affiliates to terminate the Grantee’s service as a director, advisory
director, employee or advisor, or otherwise impose upon the Corporation or any of its Affiliates
any obligation to employ or accept the services of the Grantee.

11. Withholding Tax. Upon the termination of the Restricted Period with respect to
any Shares (or at any such earlier time, if any, that an election is made by the Grantee under
Section 83(b) of the Code, or any successor thereto), the Corporation may withhold from any payment
or distribution made under the Plan sufficient Shares to cover any applicable withholding and
employment taxes. The Corporation shall have the right to deduct from all dividends paid with
respect to Shares the amount of any taxes which the Corporation is required to withhold with
respect to such dividend payments.

12. Amendment. The Committee may waive any conditions of or rights of the Corporation
or modify or amend the terms of this Award Agreement; provided, however, that the Committee may not
amend, alter, suspend, discontinue or terminate any provision hereof which may adversely affect the
Grantee without the Grantee’s (or his legal representative’s) written consent.

13. Grantee Acceptance. The Grantee shall signify his acceptance of the terms and
conditions of this Award Agreement by signing in the space provided below, by signing the attached
stock powers, and by returning a signed copy hereof and of the attached stock powers to the
Corporation.

IN WITNESS WHEREOF, the parties hereto have caused this Award Agreement to be

executed as of the date first above written.

FIRST PACTRUST BANCORP, INC.

	 	 	 	By: /s/ Gregory A.
Mitchell

ACCEPTED:

(Street Address)

(City, State & Zip Code)

STOCK POWER

For value received, I hereby sell, assign, and transfer to First PacTrust Bancorp, Inc. (the
“Corporation”) all shares of the capital stock of the Corporation, standing in my name on the books
and records of the aforesaid Corporation (whether in certificated form or book-entry or similar
form), that are issued to me pursuant to that certain Restricted Stock Agreement, dated May 6,
2011, to which the Corporation and I are parties (as the same may from time to time be amended, the
“Award Agreement”), and do hereby irrevocably constitute and appoint the Secretary of the
Corporation attorney, with full power of substitution, to transfer this stock on the books and
records of the aforesaid Corporation. To the extent the restrictions on transfer of any portion of
such shares under the Award Agreement have lapsed or expired, this Stock Power shall cease to be of
legal effect with respect to that portion of such shares following their release to me, free of
restriction, as provided in the Award Agreement.

Dated:

In the presence of:

2

STOCK POWER

For value received, I hereby sell, assign, and transfer to First PacTrust Bancorp, Inc. (the
“Corporation”) all shares of the capital stock of the Corporation, standing in my name on the books
and records of the aforesaid Corporation (whether in certificated form or book-entry or similar
form), that are issued to me pursuant to that certain Restricted Stock Agreement, dated May 6,
2011, to which the Corporation and I are parties (as the same may from time to time be amended, the
“Award Agreement”), and do hereby irrevocably constitute and appoint the Secretary of the
Corporation attorney, with full power of substitution, to transfer this stock on the books and
records of the aforesaid Corporation. To the extent the restrictions on transfer of any portion of
such shares under the Award Agreement have lapsed or expired, this Stock Power shall cease to be of
legal effect with respect to that portion of such shares following their release to me, free of
restriction, as provided in the Award Agreement.

Dated:

In the presence of:

3

STOCK POWER

For value received, I hereby sell, assign, and transfer to First PacTrust Bancorp, Inc. (the
“Corporation”) all shares of the capital stock of the Corporation, standing in my name on the books
and records of the aforesaid Corporation (whether in certificated form or book-entry or similar
form), that are issued to me pursuant to that certain Restricted Stock Agreement, dated May 6,
2011, to which the Corporation and I are parties (as the same may from time to time be amended, the
“Award Agreement”), and do hereby irrevocably constitute and appoint the Secretary of the
Corporation attorney, with full power of substitution, to transfer this stock on the books and
records of the aforesaid Corporation. To the extent the restrictions on transfer of any portion of
such shares under the Award Agreement have lapsed or expired, this Stock Power shall cease to be of
legal effect with respect to that portion of such shares following their release to me, free of
restriction, as provided in the Award Agreement.

Dated:

In the presence of:

4

EXHIBIT B

FORM OF INITIAL GRANT AGREEMENT

FIRST PACTRUST BANCORP, INC.

NON-QUALIFIED STOCK OPTION AGREEMENT-INDUCEMENT GRANT

NQSO NO.   

This Option is granted on May 6, 2011 (the “Grant Date”), by First PacTrust Bancorp, Inc., a
Maryland corporation (the “Corporation”), to Marangal I. Domingo the “Optionee”), in accordance
with the following terms and conditions:

1. Option Grant and Exercise Period. Pursuant to Section 5(a) of the Employment
Agreement by and among the Corporation, Pacific Trust Bank and the Optionee dated as of the date
hereof (the “Employment Agreement”), as an inducement material to the Optionee’s entering into
employment with the Corporation, the Corporation hereby grants to the Optionee a Non-Qualified
Stock Option (“Option”) to purchase an aggregate of 80,000 shares (the “Option Shares”) of the
common stock of the Corporation (“Common Stock”) at the price of $14.48 per share (the “Exercise
Price”).

This Option shall be exercisable only during the period (the “Exercise Period”) commencing on
the dates set forth in Section 2 below, and ending at 5:00 p.m., Pacific Standard Time, on the date
10 years after the Grant Date, such later time and date being hereinafter referred to as the
“Expiration Date,” subject to earlier vesting and earlier expiration in the event of a Termination
of Service or in the event that Optionee’s employment is terminated prior to the Commencement Date
(as defined in the Employment Agreement), as and to the extent provided in Section 5.

2. Method of Exercise of This Option. This Option may be exercised during the
Exercise Period, with respect to not more than the cumulative number of Option Shares set forth
below on or after the dates indicated, by giving written notice to the Corporation as hereinafter
provided specifying the number of Option Shares to be purchased.

	 	 	 	 	 
	Cumulative Number of Option Shares Exercisable	 	Date
	 	26,666	 	 	May 6, 2012

	 	53,333	 	 	May 6, 2013

	 	80,000	 	 	May 6, 2014

The notice of exercise of this Option shall be in the form prescribed by the Compensation Committee
of the Board of Directors of the Corporation (or such other committee as may be designated by the
Board of Directors of the Corporation)(the “Committee”) and directed to the address set forth in
Section 10 below. The date of exercise is the date on which such notice is received by the
Corporation. Such notice shall be accompanied by payment in full of the Exercise Price for the
Option Shares to be purchased upon such exercise. Payment shall be made (i) in cash, which may be
in the form of a check, money order, cashier’s check or certified check, payable to the
Corporation, or (ii) by delivering shares of Common Stock already owned by the Optionee having a
market value equal to the Exercise Price, or (iii) a combination of cash and such shares. Promptly
after such payment, subject to Section 3 below, the Corporation shall issue and deliver to the
Optionee or other person exercising this Option a certificate or certificates representing the
shares of Common Stock so purchased, registered in the name of the Optionee (or such other person),
or, upon request, in the name of the Optionee (or such other person) and in the name of another in
such form of joint ownership as requested by the Optionee (or such other person) pursuant to
applicable state law.

3. Delivery and Registration of Shares of Common Stock. The Corporation’s obligation
to deliver shares of Common Stock hereunder shall, if the Committee so requests, be conditioned
upon the receipt of a representation as to the investment intention of the Optionee, in such form
as the Committee shall determine to be necessary or advisable to comply with the provisions of the
Securities Act of 1933, as amended (the “Securities Act”) or any other federal, state or local
securities legislation. It may be provided that any representation requirement shall become
inoperative upon a registration of the Option Shares or other action eliminating the necessity of
such representation under such Securities Act or other securities legislation. The Corporation
shall not be required to deliver any shares hereunder prior to (i) the admission of such shares to
listing on any stock exchange on which shares may then be listed and (ii) the completion of such
registration or other qualification of such shares under any state or federal law, rule or
regulation, as the Committee shall determine to be necessary or advisable.

4. Nontransferability of This Option. This Option may not be assigned, encumbered,
transferred, pledged or hypothecated except, (i) in the event of the death of the Optionee, by will
or the applicable laws of descent and distribution or pursuant to a beneficiary designation as
described below, or (ii) pursuant to a “domestic relations order,” as defined in Section
414(p)(1)(B) of the Internal Revenue Code of 1986, as amended, or (iii) in a gift to any member of
the Optionee’s immediate family or to a trust for the benefit of one or more of such immediate
family members. During the lifetime of the Optionee, this Option shall be exercisable only by the
Optionee or a person acting with the legal authority of the Optionee unless it has been transferred
as permitted hereby, in which case it shall be exercisable only by such transferee. For the
purpose of this Section 4, the Optionee’s “immediate family” shall mean the Optionee’s spouse,
children and grandchildren.

From time to time, by signing a form furnished to the Corporation, the Optionee may designate
any legal or natural person or persons (who may be designated contingently or successively) to whom
to transfer the unexercised portion this Option if the Optionee were to die prior to the Expiration
Date without having exercised such unexercised portion. If the Optionee fails to designate a
beneficiary as provided above, or if the designated beneficiary dies before the Optionee or before
such unexercised portion is so transferred, such unexercised portion shall be transferred to the
Optionee’s estate. For purposes of this Option, the term “designated beneficiary” means the person
or persons designated by Optionee as Optionee’s beneficiary in the last effective beneficiary
designation form filed with the Corporation.

The provisions of this Option shall be binding upon, inure to the benefit of and be
enforceable by the parties hereto, the successors and assigns of the Corporation and any person
acting with the legal authority of the Optionee or to whom this Option is transferred in accordance
with this Section 4.

5. Termination of Service or Death of the Optionee. Except as provided in this
Section 5, and notwithstanding any other provision of this Option to the contrary, this Option
shall be exercisable only if the Optionee has not incurred a Termination of Service at the time of
such exercise. As used herein, the term “Termination of Service” means cessation of service after
the Commencement Date (as defined in the Employment Agreement) for any reason, whether voluntary or
involuntary, so that the Optionee is not an employee, a director or an advisory director of the
Corporation or any affiliate of the Corporation.

If the Optionee incurs a Termination of Service for any reason excluding death and Termination
of Service for Cause (as defined in the Employment Agreement), the Optionee may, but only within
the period of one year immediately succeeding such Termination of Service and in no event after the
Expiration Date, exercise this Option to the extent the Optionee was entitled to exercise this
Option on the date of Termination of Service (after giving effect to any acceleration of vesting as
provided in the last paragraph of this Section 5). If the Optionee incurs a Termination of Service
for Cause, all rights under this Option shall expire immediately.

In the event of the death of the Optionee prior to the Optionee’s Termination of
Service or during the one year period referred to in the immediately preceding paragraph, the
person or persons to whom the Option has been transferred pursuant to Section 4 may, but only to
the extent the Optionee was entitled to exercise this Option on the date of the Optionee’s death
(after giving effect to any acceleration of vesting as provided in the last paragraph of this
Section 5), exercise this Option at any time within the one year period following the death of the
Optionee, but in no event after the Expiration Date. Following the death of the Optionee, the
Committee may, in its sole discretion, as an alternative means of settlement of this Option, elect
to pay to the person to whom this Option is transferred pursuant to Section 4 the amount by which
the market value per share of Common Stock on the date of exercise of this Option shall exceed the
Exercise Price per Option Share, multiplied by the number of Option Shares with respect to which
this Option is properly exercised. Any such settlement of this Option shall be considered an
exercise of this Option for all purposes of this Option.

In the event that Optionee’s employment is terminated by the Corporation without Cause (as
defined in the Employment Agreement) or is terminated as a result of the Optionee resigning for
Good Reason (as defined in the Employment Agreement), this Option, to the extent not theretofore
vested and exercisable, shall become fully vested and exercisable and shall remain exercisable for
the period specified above in this Section 5.

In the event that Optionee’s employment is terminated prior to the Commencement Date (as
defined in the Employment Agreement), all rights under this Option shall expire immediately upon
such termination.

6. Adjustments for Changes in Capitalization of the Corporation. In the event of any
change in the outstanding shares of Common Stock after the Grant Date by reason of any
recapitalization, stock split, reverse stock split, stock dividend, reorganization, consolidation,
combination or exchange of shares, merger, or any other change in the corporate structure of the
Corporation or in the shares of Common Stock, the number and class of shares covered by this Option
and the Exercise Price shall be appropriately adjusted by the Committee, whose determination shall
be conclusive.

7. Effect of Merger or Other Reorganization. In the event of any merger,
consolidation or combination of the Corporation with or into another corporation (other than a
merger, consolidation or combination in which the Corporation is the continuing corporation and
which does not result in the outstanding shares of Common Stock being converted into or exchanged
for different securities, cash or other property, or any combination thereof), the Optionee shall
have the right (subject to the limitations contained herein), thereafter and during the Exercise
Period, to receive upon exercise of this Option an amount equal to the excess of the market value
on the date of such exercise of the securities, cash or other property, or combination thereof,
receivable upon such merger, consolidation or combination in respect of a share of Common Stock
over the Exercise Price, multiplied by the number of Option Shares with respect to which this
Option shall have been exercised. Such amount may be payable fully in cash, fully in one or more
of the kind or kinds of property payable in such merger, consolidation or combination, or partly in
cash and partly in one or more of such kind or kinds of property, all in the discretion of the
Committee.

8. Stockholder Rights Not Granted by This Option. The Optionee is not entitled by
virtue hereof to any rights of a stockholder of the Corporation or to notice of meetings of
stockholders or to notice of any other proceedings of the Corporation.

9. Withholding Tax. Where the Optionee or another person is entitled to
receive Option Shares pursuant to the exercise of this Option, the Corporation shall have the right
to require the Optionee or such other person to pay to the Corporation the amount of any taxes
which the Corporation or any of its affiliates is required to withhold with respect to such Option
Shares, or in lieu thereof, to retain, or sell without notice, a sufficient number of such shares
to cover the amount required to be withheld, or, in lieu of any of the foregoing, to withhold a
sufficient sum from the Optionee’s compensation payable by the Corporation to satisfy the
Corporation’s tax withholding requirements.

10. Notices. All notices hereunder to the Corporation shall be delivered or mailed
to it addressed to the Secretary of First PacTrust Bancorp, Inc., 610 Bay Boulevard, Chula Vista,
California 91910. Any notices hereunder to the Optionee shall be delivered personally or mailed
to the Optionee’s address noted below. Such addresses for the service of notices may be changed at
any time provided written notice of the change is furnished in advance to the Corporation or to the
Optionee, as the case may be.

11. Optionee Service. Nothing in this Option shall limit the right of the
Corporation or any of its affiliates to terminate the Optionee’s service as a director, advisory
director, or employee, or otherwise impose upon the Corporation or any of its affiliates any
obligation to employ or accept the services of the Optionee.

12. Amendment. The Committee may waive any conditions of or rights of the
Corporation or modify or amend the terms of this Award Agreement; provided, however, that the
Committee may not amend, alter, suspend, discontinue or terminate any provision hereof which may
adversely affect the Optionee without the Optionee’s (or his legal representative’s) written
consent.

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

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

FIRST PACTRUST BANCORP, INC.

	 	 	 	By: /s/ Gregory A.
Mitchell

ACCEPTED:

Marangal I. Domingo

5EX-10.1

Specimen Document

EXECUTIVE SEVERANCE PLAN

1. GENERAL POLICY.

In order to attract and retain the appropriate level of talent for its executive positions, The
Scotts Company LLC (the “Company”) will provide Severance Benefits to Executives in the event that
their employment is terminated without Cause in accordance with the terms of this Executive
Severance Plan (the “Plan”).

2. ELIGIBLE PARTICIPANTS.

2.1. Designation of Eligibility. The Board of Directors of the Scotts Miracle-Gro
Company (the “Board”) or the Compensation and Organization Committee of the Board (the “Committee”)
shall determine whether an associate is initially eligible, whether that associate retains that
eligibility to receive Severance Benefits under this Plan and the level of benefits to which that
associate may become entitled as provided herein. Eligibility decisions shall be made by official
action of the Board or the Committee, or the individual or committee to whom a delegation is made
by the Board or the Committee. Eligible associates shall be called “Executives” for the purposes
of this Plan. An Executive designated as eligible will be informed in writing and asked to sign a
“Participation Agreement,” in the form specified by the Company, and Executives who thereafter
become ineligible shall likewise be informed in writing and the Participation Agreement shall then
be null and void. Subject to paragraphs 2.2 and 2.3, Eligibility shall be effective on the date
established in the official eligibility decision. If an Executive is notified of ineligibility or
termination of the Plan, such notice shall be effective on the first anniversary of the date that
the Executive is notified of that decision. Each Executive must acknowledge, by executing the
Participation Agreement, that this Plan supersedes any prior agreement, arrangement, plan or
program for the payment of severance, salary continuation or the provision of other severance
benefits, as well the Executive’s acceptance of the authority of the Board and the Committee under
Article 4.

2.2. Notice of Eligibility. Except as otherwise specifically provided in a
Participation Agreement, an Executive is eligible for Severance Benefits under this Plan only if
the Executive receives a Notice of Termination from the Company. “Notice of Termination” means a
written notice expressly stating the Company’s decision to terminate the Executive’s employment
without Cause.

2.3. Acknowledgment and Release. Executives are eligible for Severance Benefits under
this Plan only if, within sixty days after the Effective Date of Termination, or such later date as
is permitted by law for signing and revocation, but not in excess of seventy days, they have signed
and not revoked a release agreement approved by the Company and effective after the Effective Date
of Termination (a “Release”). An Executive must also acknowledge in the Participation Agreement
that the Severance Benefits must be repaid, and the payment of any future Severance Benefits , if
any, will cease in the event that the Company determines in its sole discretion that the Executive
has breached any post-employment obligations owed to the Company, including those set forth in any
non-competition, non-solicitation and confidentiality provision signed by the Executive.

2.4. Release. The Company shall provide a Release to the Executive on or shortly
after the Effective Date of Termination, and the Executive may execute the Release during the time
period permitted by applicable law. After the execution of the Release, without revocation, and
the Company makes the payments referred to in Article 3, the Company shall have no further
obligations under this Plan to the Executive. Except for any payments made under this Plan, the
Company shall have no further severance obligations to the Executive, whether under another
agreement or plan, and no additional severance will be payable in connection with the Executive’s
termination of employment.

3. SEVERANCE BENEFITS. Provided that the conditions of Section 2 are satisfied, an
Executive shall be entitled to receive the payments and benefits specified in the Participation
Agreement or as otherwise specified below (“Severance Benefits”). Unless otherwise specified in a
Participation Agreement, payments, in accordance with the Company’s normal payroll processes and
withholding practices, shall commence within sixty days after the Effective Date of Termination, or
such later date as is permitted by law for signing and revoking the Release, but not in excess of
seventy days. For the purposes of the Plan (although not relevant to every Executive):

3.1. Base Salary. “Base Salary” means, except as specified in the Participation
Agreement, the salary of record for the Executive in United States dollars as annual salary
excluding all other amounts received, including under incentive or other bonus plans, whether or
not deferred.

3.2. Target Bonus Opportunity. “Target Bonus Opportunity” means, for any fiscal year,
the amount of money determined by multiplying the Executive’s bonus target percentage with respect
to his or her annual bonus award by the Executive’s then Base Salary. For example, if the
Executive’s Base Salary is $100,000.00 and the Executive’s bonus target percentage with respect to
his or her annual bonus award is 25%, then the Executive’s Target Bonus Opportunity is $25,000.00.

3.3. Prorated Annual Bonus Award. “Prorated Annual Bonus Award” means, for any fiscal
year, the annual bonus award that the Executive would have received had the Executive remained
employed for the entire fiscal year/performance period, but prorated based on the actual Base
Salary paid to the Executive during such fiscal year for services rendered through the Effective
Date of Termination. For the purposes of this paragraph, the Committee will not exercise its
discretion as to the subjective portion of the annual bonus award.

3.4. Benefits and Benefit Payment. An Executive shall be eligible to elect COBRA
continuation benefits as to medical, dental, and vision insurance benefits, and participation in
the Employee Assistance Program as provided by applicable law. At the time severance is paid,
pursuant to the first paragraph of this Section 3, the Company shall also pay Executive, an amount
equal to the excess of the then COBRA premium charged by the Company to terminated employees, as in
effect from time to time, over the premium for such benefits charged to active employees,
applicable to the benefits for which Executive was enrolled at the Effective Date of Termination (a
“Benefit Payment”). This Benefit Payment will be made for each month starting with the month
following the Effective Date of Termination for the length of the “Severance Period,” as set forth
in the Participation Agreement, but no more than eighteen months.

3.5. Outplacement Payment. In order to assist the Executive with his or her
transition, the Executive shall be entitled to receive outplacement services at the level in place
under the Company’s outplacement program in effect on the Effective Date of Termination.

3.6. Vested Benefits. All other benefits to which the Executive has a vested right,
as of the Effective Date of Termination, shall be paid or provided according to the provisions of
the governing plan or program.

3.7. Changes in Benefits. Any change to this Plan that alters the Severance Benefits
described in this Section 3 or in the Participation Agreement shall take effect one year after that
change is adopted by official action of the Board or the Committee. The previous sentence
notwithstanding, this Plan may be modified and altered at any time in order to comply with
applicable laws including tax or securities laws.

3.8. Tax Withholdings. All payments described herein or in the Participation
Agreement shall be reduced by applicable withholdings and paid pursuant to the Company’s ordinary
payroll practices. No interest shall accrue on any such payments.

3.9. Forfeiture. Any attempt by an Executive to negotiate or demand greater
benefits than those set forth above shall constitute a rejection of the Severance Benefits and
terminate the Executive’s eligibility for Severance Benefits, effective immediately.

3.10. Code Section 409A Compliance. It is the Company’s intent that amounts paid
under this Plan shall not constitute “deferred compensation” as that term is defined under Section
409A of the Internal Revenue Code of 1986, as amended (“Code Section 409A”), and the regulations
promulgated thereunder, because the amounts paid under this Plan are structured to comply with the
“short-term deferral” exception to Code Section 409A. However, if any amount paid under this Plan
is determined to be “deferred compensation” within the meaning of Code Section 409A and compliance
with one or more of the provisions of this Plan would cause or would result in a violation of Code
Section 409A, then such provision shall be interpreted or reformed in the manner necessary to
achieve compliance with Code Section 409A, including but not limited to, the imposition of a six
(6) month delay in payment to any “specified employee” (as defined in Code Section 409A) following
such specified employee’s date of termination which entitles him or her to a payment under this
Plan. All payments to be made upon a termination of employment under this Plan may only be made
upon a “separation from service” under Code Section 409A. In no event may the Executive, directly
or indirectly, designate the calendar year of a payment and where payment may occur in one year or
the next, it shall be made in the second year.

4. ADMINISTRATION PROVISIONS.

4.1 Adoption and Modification. This Plan has been adopted by the Committee.
Modifications to, or termination of, this Plan can occur only in writing through official action of
the Board, the Committee, or a designee of the Board or the Committee. Any communications or other
purported modifications to this Plan that have not been so adopted are void. In no case can this
Plan be modified or terminated, or the eligibility of an Executive revoked for two years following
a Change in Control.

4.2 Claims and Appeals.

A. Filing Claims. Any Executive who believes he or she is entitled to Severance
Benefits may file a claim for benefits with the Committee (or its designee).

B. Notification to Claimant. If a claim is wholly or partially denied, the Committee
(or its designee) will furnish written or electronic notification (in accordance with Department of
Labor Regulations Section 2520.104b-1(c)) of the decision to the Executive within 90 days of
receipt of the claim in a manner calculated to be understood by the Executive. Such notification
shall contain the following information:

	 	(1)	 	the specific reason or reasons for the denial;

	 	(2)	 	specific reference to pertinent Plan provisions upon which
the denial is based;

	 	(3)	 	a description of any additional material or information
necessary for the claimant to perfect the claim and an explanation of why such
material or information is necessary; and

	 	(4)	 	a description of the Plan’s claims review procedures
describing the steps to be taken and the applicable time limits to submit
claims for review, including a statement of the Execuitve’s right to bring a
civil action under ERISA section 502(a) following an adverse benefit
determination on review.

If special circumstances require an extension of time for the Committee (or its designee) to
process the claim, the 90-day period may be extended for an additional 90 days. Prior to the
termination of the initial 90-day period, the Executive shall be furnished with a written or
electronic notice setting forth the reason for the extension. The notice shall indicate the
special circumstances requiring an extension of time and the date by which the Committee (or its
designee) expects to render the benefit determination.

C. Review Procedure. An Executive or his or her authorized representative may, with
respect to any denied claim:

	 	(1)	 	request a full and fair review upon a written application
filed within 60 days after receipt by the claimant of written or electronic
notification of the denial of his or her claim;

	 	(2)	 	submit written comments, documents, records and other
information relating to the claim for benefits; and

	 	(3)	 	upon request, and free of charge, be provided reasonable
access to and copies of documents and records and other information relevant
to the claim for benefits.

Upon receipt of a timely, written application for review, the Committee (or its designee) shall
undertake a review, taking into account all comments, documents, records and information submitted
by the Executive relating to the claim without regard to whether the information was submitted or
considered in the initial benefit determination. If the Executive (or his or her duly authorized
representative) fails to appeal the initial benefit determination to the Committee (or its
designee) in writing within the prescribed period of time, then the Committee’s (or its designee’s)
adverse determination shall be final, binding and conclusive.

Any request or submission must be in writing and directed to the Committee (or its designee). The
Committee (or its designee) will have the sole responsibility for the review of any denied claim
and will take all steps appropriate in light of its findings.

D. Decision on Review. The Committee (or its designee) will render a decision upon
review no later than 60 days after receipt of the request for a review. If special circumstances
(such as the need to hold a hearing on any matter pertaining to the denied claim) warrant
additional time, the decision will be rendered as soon as possible, but not later than 120 days
after receipt of the request for review. Written notice specifying the circumstances requiring an
extension will be furnished to the Executive prior to the commencement of the extension. The
decision on review will be in writing and will include specific reasons for the decision, written
in a manner calculated to be understood by the Executive, as well as specific references to the
pertinent provisions of the Plan on which the decision is based, including a statement of the
Executive’s right to bring a civil action under ERISA section 502(a). If the decision on review is
not furnished to the Executive within the time limits prescribed above, the claim will be deemed
denied on review.

4.3 Administration. The Committee shall serve as the “Plan Administrator” of the Plan
and the “named fiduciary” within the meaning of such terms as defined in ERISA. The Plan
Administrator shall have full power and discretionary authority to determine eligibility for
Severance Benefits and to construe the terms of the Plan, including, but not limited to, the making
of factual determinations, the determination of all questions concerning benefits and procedures
for claim review and the resolution of all other questions arising under the Plan. Severance
Benefits under the Plan will be payable only if the Plan Administrator determines in the Plan
Administrator’s discretion that the Executive is entitled to them. The decisions of the Plan
Administrator shall be final and conclusive with respect to all questions concerning the
administration of this Plan.

The Plan Administrator may delegate to other persons responsibilities for performing certain
of the duties of the Plan Administrator under the terms of this Plan and may seek such expert
advice as the Plan Administrator deems reasonably necessary with respect to the Plan. The Plan
Administrator shall be entitled to rely upon the information and advice furnished by such
delegatees and experts, unless actually knowing such information and advice to be inaccurate or
unlawful. The Plan Administrator has discretionary authority to grant or deny benefits under this
Plan. In no event shall an Executive or any other person be entitled to challenge a decision of
the Plan Administrator in court or in any other administrative proceeding unless and until the
claim and appeals procedures established under this Plan have been complied with and exhausted.

4.4 Change in Control. This Plan shall be binding on the Company’s successors,
including following a Change in Control.

4.6 No Assignment. Severance Benefits payable under the Plan shall not be subject to
anticipation, alienation, pledge, sale, transfer, assignment, garnishment, attachment, execution,
encumbrance, levy, lien, or charge, and any attempt to cause such Severance Benefits to be so
subjected shall not be recognized, except to the extent required by law.

4.7 No Employment Rights. This Plan shall not confer employment rights upon any
person. No person shall be entitled, by virtue of the Plan, to remain in the employ of the Company
and nothing in the Plan shall restrict the right of the Company to terminate the employment of any
associate or other person at any time, for any reason and with or without notice or cause.

4.8 Plan Funding. No associate shall acquire by reason of the Plan any right in or
title to any assets, funds, or property of the Company. Any severance pay which becomes payable
under the Plan is an unfunded obligation and shall be paid from the general assets of the Company.
No employee, officer, director or agent of the Company personally guarantees in any manner the
payment of Severance Benefits.

4.9 Applicable Law. This Plan shall be governed and construed in accordance with the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and in the event that any
reference shall be made to State law, the laws of the State of Ohio shall apply, without regard to
its conflicts of law provisions.

4.10 Severability. If any provision of the Plan is found, held or deemed by a court
of competent jurisdiction to be void, unlawful or unenforceable under any applicable statute or
other controlling law, the remainder of the Plan shall continue in full force and effect.

5. DEFINITIONS.

5.1 “Cause” shall be as defined in The Scotts Miracle-Gro Company Amended and Restated
2006 Long-Term Incentive Plan or, if a successor long-term incentive plan is adopted, then
beginning one year after the effective date of the successor plan, Cause shall be as defined in
that successor plan.

5.2 “Change in Control” shall be as defined in The Scotts Miracle-Gro Company Amended and
Restated 2006 Long-Term Incentive Plan or, if a successor long-term incentive plan is adopted, then
beginning one year after the effective date of the successor plan, Change in Control shall be as
defined in that successor plan.

5.3 “Effective Date of Termination” means the date on which a termination of the Executive’s
employment occurs as specified in the Notice of Termination. For purposes of this Agreement,
references to a “termination of employment” or any form thereof shall mean a “separation from
service” as defined under Section 409A of United States Internal Revenue Code of 1986, as amended
from time to time.

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