Document:

Exhibit 10.23

 

HUMAN RESOURCES

EXECUTIVE
INCENTIVE PLAN

 

PURPOSE

 

First Community Bancorp
is the sponsor of this incentive plan (“the Plan”).  First Community Bancorp and its subsidiaries
(“the Company”) have designed the Plan to focus First Community Bancorp
executives on achieving the annual business plan during a particular
Performance Period.  The Plan provides
aggressive award opportunities and is intended to provide significant rewards
to First Community Bancorp’s executive team for exceptional corporate
performance.

 

APPROVAL AND ADMINISTRATION

 

The Plan has been
approved by the Compensation, Nominating and Governance (“CNG”) Committee of
the Board of Directors and will be administered by the Incentive Plan Committee
(“the IP Committee”) which is comprised of First Community Bancorp’s CEO and
executives reporting directly to the CEO. 
The IP Committee will recommend to the CNG Committee, for their approval
as early in the Performance Period as possible: the Plan Participants; Plan
Performance Measures; Performance Measure Weights; Achievement Levels and
corresponding Award Opportunities. At the end of the Performance Period, the IP
Committee will review achievements against Performance Measures, present
results and recommend Awards to the CNG Committee for their approval.  In evaluating any such Awards, the CNG
Committee shall do so outside the presence of management, except the CNG Committee
may request the presence of the CEO when considering Awards to members of
executive management other than the CEO. 
Notwithstanding any recommendations from the IP Committee, the CNG
Committee will be solely responsible for determining and granting any Awards
pursuant to the Plan.

 

Interpretation and
application of the Plan to a particular circumstance will be made by the CNG
Committee in its sole discretion. 
Subject to any authority granted to the full Board of Directors or a
committee of the independent directors thereof, the CNG Committee has the sole
and absolute power and authority to make all factual determinations, construe
and interpret terms and make eligibility and Award determinations in accordance
with its interpretation of the Plan.

 

ELIGIBILITY

 

Executives in salary
grades 1, 2, 3, A, and B are eligible for participation in the Plan.  The IP Committee will review those eligible
and recommend Participants to CNG Committee for their approval.  The IP Committee may recommend executives in
salary grade C for participation in the Plan on an exception basis for approval
by the CNG Committee.

 

PARTICIPANT

 

An individual who has
been recommended for participation in the Plan by the IP Committee and approved
by the CNG Committee is a Participant.

 

 

1

 

PERFORMANCE MEASURES

 

The IP Committee will
select one to two Performance Measures for the Plan for approval by the CNG Committee.  All Performance Measures will be key
indicators of financial performance.

 

Each Performance Measure
will operate independently i.e. it is possible for one Performance Measure to
generate an award and not the other; likewise, it is possible for one
Performance Measure to be achieved at a higher level than the other.  Performance Measures will be individually
weighted i.e. one Performance Measure may be counted more heavily in
calculating Awards than the other. 
Weights for each Performance Measure will be recommended at the
beginning of the Performance Period by the IP Committee for approval by the CNG
Committee; however, the CNG Committee will retain absolute authority over the
selection and weights accorded to any Performance Measures.  Achievement Levels will be established for
each Performance Measure along with corresponding Award Opportunities.

 

ACHIEVEMENT LEVELS AND AWARD
OPPORTUNITIES

 

Achievement Levels and
Award Opportunities for any Performance Period as approved by the CNG Committee
are set forth below, and are expressed as a percentage of base salary. The
table shows achievement of various levels of the established performance
measure, as a percentage of the performance target, during a  Performance Period and illustrates the corresponding
and maximum Award Opportunity at each specified Achievement Level.  Mathematical interpolation will be used to
calculate Awards for achievement between the levels established below.

 

The performance measure
and performance target for the current Performance Period, as approved by the
CNG Committee, along with corresponding Award opporunities, are set forth on Exhibit
A.

 

2

 

Performance Period:  January 1, xxxx – December 31, xxxx

 

	
  Overall Performance Measure:
          

  	
   

  	
  Performance Target:
  $          

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Achievement
  Level (% of Target)

  	
   

  	
  90%

  	
   

  	
  100%

  	
   

  	
  Over 100%

  	
   

  
	
  Award Opportunities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CEO
  First Community Bancorp (Grade 1)

  	
   

  	
  60% of Base $

  	
   

  	
  100% of Base $

  	
   

  	
  Board Discretion

  	
   

  
	
  Other
  Executives (Grades 2,3 and A)

  	
   

  	
  50% of Base $

  	
   

  	
  80% of Base $

  	
   

  	
  CEO/Board Discretion

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Achievement
  Level (% of Target)

  	
   

  	
  90%

  	
   

  	
  100%

  	
   

  	
  Over 100%

  	
   

  
	
  Award Opportunities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key Contributors
  (Grades B)

  	
   

  	
  10% of Base $

  	
   

  	
  30% of Base $

  	
   

  	
  CEO Discretion

  	
   

  
	
  Other Key Officers
  (Grade C)

  	
   

  	
  10% of Base $

  	
   

  	
  20% of Base $

  	
   

  	
  30% of Base $

  	
   

  

 

AWARDS

 

Awards under the Plan
based upon achievement of  Performance
Measures and will be submitted by the IP Committee to the CNG Committee for
approval.

 

For purposes of the Plan,
salary means annual base salary in effect at the end of the performance year.
Awards will be made through the payroll system, minus legally required and
authorized deductions.  Awards under the
Plan shall be considered eligible compensation for purposes of employee benefit
calculations in each case where permitted under the relevant employee benefit
plan.

 

Awards for individuals
who are Participants for less than a full Plan Year will be prorated using Participant’s
actual base salary paid during the time of participation in the Plan.  Awards for Participants who leave First
Community Bancorp during a Plan Year due to retirement, total and permanent
disability or death will be prorated using the same method.

 

To be eligible to receive
an Award under the Plan, a Participant must have a performance descriptor of “Achieves
Expectations” or better for the Performance Period.

 

ADJUSTMENTS

 

Performance Measures,
Achievement Levels and Award Opportunities may be adjusted during the Plan Year
only upon approval by the CNG Committee as it deems appropriate.  It is anticipated that such adjustments will
be made infrequently and only in the most extraordinary circumstances.

 

3

 

Because the Plan has
aggressive Award Opportunities intended for use with below market base salaries,
some adjustments may need to be made to Awards to recognize the fact that some Participant
base salaries are currently above market. 
In such cases, the CNG Committee may reduce an Award as it deems
appropriate to achieve a reasonable level of total compensation for each  participant.

 

PAYMENT OF AWARDS

 

Awards
will be paid as soon as administratively feasible after review of performance
against targets and approval by the CNG Committee.  To be eligible for Award payment, a
Participant must have been an employee of First Community Bancorp for at least
three months and be an employee of First Community Bancorp on the date that
Awards are paid or have left First Community Bancorp during the Performance
Period due to retirement, total and permanent disability or death.

 

Participants otherwise
eligible to receive an Award and who were assigned to different parts of the
organization during the Performance Period will have their Award calculated
based upon the part of the organization they are in at the end of the
Performance Period and the Performance targets achieved by that group for the
Performance Period.

 

NO
RIGHT OF ASSIGNMENT

 

No right or interest of
any Participant in the Plan is assignable or transferable.  In the event of a Participant’s death,
payment of any earned but unpaid Awards will be made to the Participant’s legal
successor, if not prohibited by law.

 

NO
RIGHT OF EMPLOYMENT

 

The Plan does not give any
employee any right to continue in the employment of First Community Bancorp and
does not constitute any contract or agreement of employment or interfere in any
way with the right the organization has to terminate such person’s
employment.  First Community Bancorp is
an “at will” employer and as such, can terminate an employment relationship
between itself and any of its employees at will, with or without cause, and
with or without notice.

 

AMENDMENT
OR TERMINATION OF THE PLAN

 

First Community Bancorp reserves
the right to change, amend, modify, suspend, continue or terminate all or any
part of the Plan either in an individual case or in general, at any time
without notice.

 

4

 

Exhibit
A

 

Performance Period:  January 1, 2005 – December 31, 2005

 

	
  Overall Performance Measure:
          

  	
   

  	
  Performance Target:
  $          

  	
   

  

 

	
  Achievement
  Level (% of Target)

  	
   

  	
  90%

  	
   

  	
  100%

  	
   

  	
  Over 100%

  	
   

  
	
  Award Opportunities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CEO First Community
  Bancorp (Grade 1)

  	
   

  	
  60% of Base $

  	
   

  	
  100% of Base $

  	
   

  	
  Board Discretion

  	
   

  
	
  Other Executives
  (Grades 2,3 and A)

  	
   

  	
  50% of Base $

  	
   

  	
  80% of Base $

  	
   

  	
  CEO/Board Discretion

  	
   

  

 

	
  Achievement Level (% of Target)

  	
   

  	
  90%

  	
   

  	
  100%

  	
   

  	
  Over 100%

  	
   

  
	
  Award Opportunities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key Contributors
  (Grades B)

  	
   

  	
  10% of Base $

  	
   

  	
  30% of Base $

  	
   

  	
  CEO Discretion

  	
   

  
	
  Other Key Officers
  (Grade C)

  	
   

  	
  10% of Base $

  	
   

  	
  20% of Base $

  	
   

  	
  30% of Base $

  	
   

  

 

5Exhibit 10.28

FIRST COMMUNITY BANCORP

STOCK INCENTIVE PLAN

STOCK AWARD AGREEMENT

 

[Insert
Date]

 

1.     Definitions.  Unless otherwise defined herein, the terms
defined in the First Community Bancorp 2003 Stock Incentive Plan, as amended
(the “Plan”) shall have the same defined meanings in this Stock Award Agreement
(“Agreement”) and the Notice of Stock Award Grant attached hereto as Appendix
A.

2.     Grant
of Stock Award.  Pursuant to the
terms and conditions set forth in the Notice of Stock Award Grant, this Agreement,
and the Plan, First Community Bancorp (the “Company”) grants to the grantee
named in the Notice of Stock Award Grant (“Grantee”) on the date of grant set
forth in the Notice of Stock Award Grant (“Date of Grant”) the number of Shares
set forth in the Notice of Stock Award Grant. 
This Stock Award is intended to be a Restricted Stock Award or a
Performance Stock Award, as provided in the Notice of Stock Award Grant.

3.     Vesting.  The Grantee shall vest in the Granted Stock
in accordance with the vesting schedule provided for in the Notice of Stock
Award Grant; provided, however, that the Grantee shall cease vesting in the
Granted Stock on the Grantee’s Termination Date or the date on which the Compensation
Committee of the Company’s Board of Directors (the “Administrator”) determines
that the performance goals provided for in the Notice of Stock Award Grant, if
any, were not satisfied during the designated period of time.  Notwithstanding the foregoing, upon the
occurrence of a Vesting Event, the Grantee shall become 100% vested in those
shares of Granted Stock that are outstanding on the date of the Vesting Event.  [Insert any additional terms relating to
vesting].

4.     Risk
of Forfeiture.

(a)   General Rule.  The
Granted Stock shall initially be subject to a Risk of Forfeiture.  The Shares subject to a Risk of Forfeiture
shall be referred to herein as “Restricted Shares”.

(b)   Lapse of Risk of Forfeiture.  The Risk of Forfeiture shall lapse as the
Grantee vests in the Granted Stock.

(c)   Forfeiture of Granted Stock.  The Restricted Shares shall automatically be
forfeited and immediately returned to the Company on the Grantee’s Termination
Date or the date on which the Administrator determines that the performance
goals provided for in the Notice of Stock Award Grant were not satisfied during
the designated period of time.

(d)   Additional Shares or Substituted Securities.  In the event of a stock split, reverse stock
split, stock dividend, recapitalization, combination or reclassification of the
Common Stock or any other increase or decrease in the number of issued and
outstanding Shares effected without receipt of consideration by the Company,
any new, 

 

1

 

substituted or additional securities or other
property (including money paid other than as an ordinary cash dividend) which
are by reason of such transaction distributed with respect to any Restricted
Shares or into which such Restricted Shares thereby become convertible shall
immediately be subject to a Risk of Forfeiture, which Risk of Forfeiture shall
lapse at the same time and in the same manner as the Risk of Forfeiture to
which the corresponding Restricted Share is subject.

(e)   Escrow.  Upon
issuance, the stock certificates for Granted Stock shall be deposited in escrow
with the Company to be held in accordance with the provisions of this
Agreement.  Any new, substituted or
additional securities or other property described in Subsection (d) above
shall immediately be delivered to the Company to be held in escrow, but only to
the extent the shares of Granted Stock are at the time Restricted Shares.  All regular cash dividends on Restricted
Shares (or other securities at the time held in escrow) shall be paid directly
to the Grantee and shall not be held in escrow (such distributions may,
however, be delivered to an address at the Company for delivery to the
Grantee).  Restricted Shares, together
with any other assets or securities held in escrow hereunder, shall be (i) surrendered
to the Company for cancellation upon forfeiture of the Restricted Shares; or
(ii) released to the Grantee upon the Grantee’s request to the
Administrator on or after the date the shares of Granted Stock are no longer
Restricted Shares.  Grantee agrees not to
make a request to the Company’s transfer agent for delivery of any share
certificates representing any shares of Granted Stock so long as such shares
are Restricted Shares.

5.     Rights
as a Stockholder.  The Grantee shall
have the rights of a stockholder with respect to the dividends paid by the
Company.  Grantee shall not be entitled
to vote any unvested shares of Granted Stock. 
Upon the vesting of any portion of the Stock Award, the Grantee shall
have the voting rights with respect to any such vested shares of Granted Stock.

6.     Non-transferability
of Stock Award.  Except as otherwise
provided for in Section 12 of the Plan, this Stock Award may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner
other than by will or by the laws of descent and distribution and may be
exercised, during the lifetime of the Grantee, only by the Grantee.  If the Grantee transfers all or part of this
Stock Award pursuant to the previous sentence, then the terms of this
Agreement, the Plan and the and the Notice of Stock Award shall apply to the
transferee to the same extent as to the Grantee.

7.     Regulatory
Compliance.  The issuance of Common
Stock pursuant to this Agreement shall be subject to full compliance with all
then applicable requirements of law and the requirements of any stock exchange
or interdealer quotation system upon which the Common Stock may be listed or
traded.

8.     Modification
and Termination.  The rights of the
Grantee are subject to modification and termination in certain events, as
provided in the Plan.

9.     Withholding
Tax.  The Company’s obligation to
deliver Shares or remove any restrictive legends upon vesting of such Shares
under the Plan shall be subject to the satisfaction of all applicable federal,
state and local income and employment tax withholding requirements.  The Grantee shall pay to the Company an
amount equal to the withholding amount (or the 

 

2

 

Company may withhold such amount from the Grantee’s salary) in
cash.  In the Administrator’s sole discretion,
the Grantee may pay the withholding amount with Shares (including previously
vested Granted Stock); provided, however, that payment in Shares shall be
limited to the withholding amount calculated using the minimum statutory
withholding rates, in accordance with applicable withholding requirements.

10.   Nondisclosure.  Grantee acknowledges that the grant and terms
of this Stock Award are confidential and may not be disclosed by Grantee to any
other person, including other employees of the Company and other participants
in the Plan, without the express written consent of the Company’s Chief
Executive Officer.  Notwithstanding the
foregoing, the Grantee may disclose the grant and terms of this Stock Award to
the Grantee’s family member, financial advisor, and attorney and as may be
required by law or regulation.  Any
breach of this provision will be deemed to be a material breach of this
Agreement.

11.   Governing
Law.  This Agreement shall be
governed by and interpreted in accordance with the internal laws of the State
of California without regard to principles of conflict of laws.

12.   Successors.  This Agreement shall inure to the benefit of
and be binding upon the parties hereto and their legal representatives, heirs,
and permitted transferees, successors and assigns.

13.   Plan.  This Agreement and the Notice of Stock Award
Grant are subject to all of the terms and provisions of the Plan, receipt of a
copy of which is hereby acknowledged by the Grantee.  The Grantee hereby agrees to accept as
binding, conclusive, and final all decisions and interpretations of the
Administrator upon any questions arising under the Plan, this Agreement, and
the Notice of Stock Award Grant.

14.   Rights
to Future Employment.  This Stock
Award does not confer upon the Grantee any right to continue in the Service of
the Company or any Affiliate, nor does it limit the right of the Company to
terminate the Service of the Grantee at any time.

15.   Entire
Agreement.  The Notice of Stock Award
Grant, this Agreement, and the Plan constitute the entire contract between the
parties hereto with regard to the subject matter hereof.  They supersede any other agreements,
representations or understandings (whether oral or written and whether express
or implied) which relate to the subject matter hereof.

 

[Remainder of Page Intentionally Left
Blank]

 

3

 

                By
your signature and the signature of the Company’s representative below, you and
the Company agree that this Stock Award is granted under and governed by the
terms and conditions of this Agreement and the Plan and the Notice of Stock
Award Grant, both of which are attached 
and incorporated herein by reference. 
This Stock Award is of no force and effect until this Agreement is
signed by you and the Company’s representative, the Notice of Stock Award Grant
is signed by you and the Spousal Consent form (attached hereto as Appendix B
and incorporated herein by reference) is signed by your spouse, if any.

 

	
  GRANTEE:

  	
   

  	
  FIRST COMMUNITY BANCORP

  
	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
  By: 

  	
   

  
	
  Name:

  	
  Name:

  	
  Michael L. Thompson

  
	
   

  	
   

  	
  Exec. Vice President, Dir. Human

  
	
   

  	
   

  	
   

  	
  Resources

  
	
  Social Security Number

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

Address:

 

4

 

APPENDIX A

 

FIRST COMMUNITY BANCORP

STOCK INCENTIVE PLAN

NOTICE
OF STOCK AWARD GRANT

This
Notice of Stock Award Grant is part of the Stock Award Agreement between
Grantee and the Company dated                        ,
and is of no force and effect until the Stock Award Agreement is signed by
Grantee and the Company’s representative, this Notice of Stock Award Grant is
signed by Grantee and the Spousal Consent form (attached hereto as Appendix B
and incorporated herein by reference) is signed by the spouse of Grantee, if
any.

                You
have been granted the following Stock Award:

Name of Grantee:                                                                                           

                Total Number of Shares Granted:                                                                  

(“Granted Stock”)

Type of Stock Award:                         [Restricted][Performance]
Stock Award

Date of Grant:                                                                                                   

 

Vesting Schedule:

[Insert for Restricted Stock]

The Granted Stock shall vest in full over              
years.  The first            
of the Granted Stock shall vest on the date 
the Grantee completes         
year(s) of continuous Service after the Vesting Commencement Date.  An additional             
of the Granted Stock shall vest on the date the Grantee completes each year of
continuous Service thereafter, so Grantee would be 100% vested in the Restricted
Stock on the            year
anniversary of the Vesting Commencement Date.

 

[Insert
for Restricted Performance Stock]

The Performance Goal
established for 100% vesting of the Granted Stock is annual [insert performance
measure] of $           
[per share].                 
percent of the Granted Stock will vest on the date the Compensation, Nominating
and Governance Committee of the Board (the “Administrator”) certifies that the
Company achieved annual [insert performance measure] of $           
[per share]. An additional         percent
of the Granted Stock will vest  on the
date the Administrator determines the Company achieved annual [insert
performance measure] of $            .
The remaining           
percent of the Granted Stock will vest on the date the Administrator determines
the Company achieved annual [insert performance measure] of $                
[per share].

 

Vesting Commencement Date:                                               

 

                Please sign below to acknowledge the terms and
conditions of this Stock Award.

 

	
  ACKNOWLEDGED BY GRANTEE:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
			

 

 

A-1

 

 

 APPENDIX B

SPOUSAL CONSENT

The
undersigned, the spouse of                                     
(“Grantee”), (i) acknowledges that he/she has read the foregoing Stock Award
Agreement (the “Agreement”) and Notice of Stock Award Grant and the First
Community Bancorp 2003 Stock Incentive Plan (collectively, the “Stock Award
Documents”), (ii) agrees that any interest that he/she now has or may hereafter
acquire in the shares of stock of First Community Bancorp now owned or
hereafter acquired by Grantee pursuant to the terms of this Agreement shall be
bound by the terms and provisions contained in the Stock Award Documents, and
(iii) agrees to be bound by the terms and provisions of the Stock Award
Documents, as fully as Grantee.

 

	
  Dated:

  	
  By:

  	
   

  
	
   

  	
  Print Name:

  

 

 

 

 

 

B-1

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