Document:

Exhibit 10.21

 

[Letterhead of Castle Creek Financial LLC]

 

November 17, 2005

 

Matthew P. Wagner

President and Chief
Executive Officer

First Community Bancorp

6110 El Tordo

Rancho Santa Fe, CA  92067

 

Dear Matthew:

 

This letter agreement (the “Agreement”) will confirm
that First Community Bancorp (the “Company”) has engaged Castle Creek Financial
LLC (“Castle Creek”) as the exclusive financial advisor to the Company in
connection with the Company’s efforts to (a) acquire or invest in other
financial institutions, excepting therefrom the opening of individual bank
branches in the ordinary course of business; (b) effect a sale of the
Company or a material amount of its assets; or (c) pursue a financing or
recapitalization transaction (collectively, the “Transaction”).  As the exclusive financial advisor to the
Company, Castle Creek will, in addition to providing services in connection
with a proposed Transaction provide other services pursuant to paragraph 9.

 

1.                                       In
connection with a proposed Transaction, at the request of the Company, Castle
Creek will provide such services as the Company shall reasonably request
including: (i) assisting the Company in the structuring of the financial
aspects of a Transaction; (ii) identifying alternative potential parties
and contacting such parties as the Company may designate; (iii) negotiating
the terms of a Transaction with such parties; (iv) assisting the Company
in communicating the strategic implications of the Transaction to the
investment community; and (v) advising the Company in connection with its
efforts to raise any additional capital that may be required to facilitate the
Transaction.  Further, Castle Creek and
the Company expressly acknowledge that the fees provided for under paragraph 3
for a completed Transaction were determined in light of the fact that
significant financial advisory services are rendered to the Company in
connection with potential Transactions that are not successfully
completed.  Thus, such fees earned pursuant
to paragraph 3 will serve as compensation for services rendered in connection
with a completed Transaction and in connection with potential Transactions that
are not successfully completed.  Further,
such fees are in recognition of the exclusive arrangement between Castle Creek
and the Company, and Castle Creek’s commitment to source and present
opportunities in the Company’s geographic market and niche for the Company’s
sole consideration and decision before presenting such opportunities to any
third party.

 

2.                                       In
connection with a proposed Transaction, you will furnish Castle Creek with such
material regarding the business and financial condition of the Company as we
request, all of which will be accurate and complete in all material respects at
the time furnished in writing.  The
Company will also use its reasonable best efforts to assure that its personnel,
consultants, experts, attorneys and accountants are made available to Castle
Creek upon Castle Creek’s reasonable request in connection with services
provided or to be provided by Castle Creek. 
During the term of this Agreement, the Company shall promptly notify
Castle Creek of (i) any material changes in the business or financial
condition of the

 

 

Company
from the written information provided to Castle Creek, and (ii) any
material events or developments relating to the financial condition or business
operations or prospects of the Company and promptly make available for Castle
Creek’s review copies of all filings related to the Transaction made by the
Company with any regulatory agency and copies of all press releases related to
the Transaction issued by the Company. 
We are relying, without independent verification, on the accuracy and
completeness of all information furnished to us in writing by the Company or
any other party or potential party to any Transaction.  Castle Creek agrees that all requests for
information from the Company will be directed only to the President, Chief
Financial Officer or General Counsel of the Company or such other persons as
the President shall specifically designate and that it will not treat
information obtained from any other person or source as having been provided by
the Company.

 

3.                                       In
consideration of the services to be provided hereunder, the Company agrees to
pay to Castle Creek the following cash fees:

 

(A)                              In
the event that a sale of the Company is completed, an amount equal to two
percent (2.0%) of the Transaction Value (as defined below) for the Transaction,
net of the cost of a “fairness opinion” if such opinion is deemed necessary,

 

(B)                                In
the event that an acquisition of or investment in another financial institution
is completed by the Company, an amount based upon the following schedule will
be owed to Castle Creek upon the consummation of the acquisition or investment
based upon the Transaction Value for the Transaction, net of the cost of a “fairness
opinion” if such opinion is deemed necessary:

 

	
   

  	
   

  	
   

  	
   

  	
  Deal Value

  	
   

  	
   

  	
   

  	
  Fees

  
	
   

  	
   

  	
   

  	
   

  	
  ($ in millions)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (1)

  	
   

  	
  If

  	
   

  	
  $ 0 < $20

  	
   

  	
  then

  	
   

  	
  1.5% of the
  Transaction Value

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  If

  	
   

  	
  Over $20

  	
   

  	
  then

  	
   

  	
  $300,000, plus
  1.0% of the amount of the Transaction Value in excess of $20 million

  

 

(C)                                In the event of a
financing or recapitalization, the fees will be determined in accordance with
paragraph 8 below.

 

(D)                               Fees
payable pursuant to paragraphs 3 (A), (B) and (C) shall be paid upon
and only upon the closing of the Transaction.

 

For
purposes of this Agreement, “Transaction Value” means the sum of (as applicable
for the particular Transaction): (i) with respect to each class of capital
stock of the Company in the event of a sale of the Company or of the financial
institution which is acquired by the Company or in which the Company invests,
the aggregate consideration paid or payable for all shares of such capital
stock and for all shares of such classes issuable upon exercise of

 

2

 

options,
warrants or other rights, or conversion or exchange of securities to the extent
that such options are then exercisable; (ii) in the case of an acquisition
or sale, the aggregate liquidation value of any preferred stock or other
preferential interests redeemed or remaining outstanding; (iii) the fair
market value of any assets distributed to the shareholders of the Company or
such financial institution that is purchased, in connection with the
Transaction; and (iv) in the case of an asset purchase or sale, the
aggregate consideration paid or payable for the assets of the Company or the
assets of the financial institution.

 

The
determination of the “aggregate consideration paid or payable” for shares of
any classes of capital stock in connection with the Transaction shall include
cash, securities (valued in accordance with the following paragraph), or other
assets or consideration paid or payable by the purchaser or any of its
affiliates, as the case may be, determined without regard to any allocations
between the Company or its affiliates in the event of a sale of the Company or
between the financial institution or its affiliates in the event such financial
institution is acquired by the Company or the Company invests in such financial
institution, including but not limited to (i) assets (net of debt or
payables) of the Company or such financial institution retained by the Company
or such financial institution or their respective stockholders and affiliates,
as the case may be (ii) any deferred installments of the purchase price, (iii) any
portion of the purchase price held in escrow subsequent to closing which is
payable pursuant to the terms of the escrow arrangement, irrespective of
whether such amounts are in fact paid, (iv) any payments pursuant to earn-outs, royalties
or other similar arrangements, (v) any payments payable after closing upon
the occurrence of certain events or conditions or the satisfaction of certain
earnings, sales levels or other performance objectives which are agreed to on
or before the closing, irrespective of whether such amounts are in fact paid, (vii) the
amount of any dividends or other extraordinary payments or distributions to
stockholders of the Company or the financial institution in connection with or
in anticipation of the Transaction, and (vii) consideration paid by the
purchaser or its affiliates as a deposit, reimbursement of expenses, liquidated
damages, walk-away fee or other arrangement.

 

In the event that all or any portion of the
Transaction Value for a Transaction is paid in stock or other securities,
deferred installments or other non-cash consideration, the amount of the fee
payable with respect to such items shall be determined on the basis of the fair
market cash equivalent value of such non-cash consideration as of the day
preceding the closing date of the Transaction as reasonably determined by
Castle Creek and the Company, provided that the value of securities (received
as consideration) which have an existing public trading market shall be
determined by the closing sale (trade) price on the closing date.

 

Any portion of the fee which is payable with respect
to any earn-out, royalty or similar arrangement where the amount payable is not
a certain amount, shall be calculated and paid at the closing based upon the
estimated net present value thereof as reasonably determined by Castle Creek
and the Company.

 

If a Transaction involves the acquisition of less
than all of outstanding securities of the Company, but securities representing
more than 50% of the combined voting power of the then outstanding securities
of the Company, then the fee payable pursuant to Section 3(A) shall
nonetheless be calculated as though all such equity securities had been so
acquired by the purchaser.

 

3

 

4.                                       Regardless of whether a Transaction is
completed, the Company will reimburse Castle Creek, upon its demand, for all
reasonable out-of-pocket expenses (including travel expenses and fees and
disbursements of counsel retained by Castle Creek in connection with this
engagement).  In seeking such
reimbursement, Castle Creek shall provide an explanation of such charges.

 

5.                                       The Company agrees to indemnify and hold
Castle Creek harmless in accordance with the terms and conditions of Appendix A
attached hereto and made a part hereof as though fully set forth in this
Agreement.  No termination or
modification hereof, or completion of Castle Creek’s engagement hereunder,
shall limit or affect such indemnification.

 

6.                                       Castle Creek’s services hereunder may be
terminated by the Company or Castle Creek at any time upon 30 days written
notice, provided that Castle Creek shall be entitled to any fees payable
pursuant to Section 3 and Section 8 hereof in the event that the
Company completes a Transaction (i) on which Castle Creek provided advice
or participated in discussions with any of the investors in such Transaction or
(ii) with any of the parties as to which Castle Creek advised the Company
or with whom the Company engaged in discussions regarding a possible
Transaction prior to the termination of this Agreement, providing that such
Transaction is completed within eighteen months following the termination of this
Agreement.  In addition, Castle Creek
shall remain entitled to the reimbursement of fees and expenses under the terms
and conditions described in Section 4 hereof, to the extent the same have
been incurred on or prior to the date of such termination.  Furthermore, the provisions of this Section 6,
and Sections 5 (including Appendix A), 10, 11, 12, 13, 14, 15 and 16, as well
as the Confidentiality Agreement, shall survive any termination of this
Agreement.

 

7.                                       In order to coordinate our efforts with
respect to any Transaction for which we intend to engage a financial advisor,
during the period of our engagement hereunder neither the Company nor any
representative thereof (other than Castle Creek) will initiate discussions
regarding a Transaction except through Castle Creek.  If the Company or its management receives an
inquiry regarding a Transaction, they will promptly advise Castle Creek of such
inquiry in order that we can evaluate such prospective party and its interest
and assist the Company in any resulting negotiations.

 

8.                                       Pursuant to section 3(C) hereinabove,
it is understood and agreed that if the Company decides to pursue a financing
or recapitalization Transaction for which Castle Creek is to provide any of the
financial advisory services described above in Section 1 hereof, the
Company and Castle Creek shall negotiate in good faith acceptable compensation
for Castle Creek in consideration of such services, which compensation will
take into account, among other things, the results obtained and the custom and
practice among investment bankers acting in similar situations.  The compensation owed to Castle Creek in
accordance with the fee structure agreed upon by the Company and Castle Creek
in respect of a financing or recapitalization Transaction shall be paid to
Castle Creek in cash upon the completion of any such Transaction.

 

9.                                       It is understood and agreed that Castle Creek
will provide such other services that may from time to time be mutually agreed
upon by Castle Creek and the Company. 
Castle Creek expressly acknowledges that it will not be compensated
specifically for these

 

4

 

services other than the reimbursement for all
reasonable out-of-pocket expenses, but that such fees earned from acting as a
financial advisor to the Company for a Transaction will serve as compensation
to Castle Creek for such non-Transaction services rendered.  Such services rendered to the Company not
directly related to a specific Transaction may include, but are not exclusive
to (i) the development and preparation of long term financial and
strategic plans, (ii) assistance with investor and public relations, and (iii) capital
management advisory services.

 

10.                                 Except as expressly provided herein, no fee
paid or payable to Castle Creek or any of its affiliates shall be used as an
offset or credit against any other fee paid or payable to Castle Creek or any
of its affiliates.

 

11.                                 This Agreement, along with the indemnity in
Appendix A and the Confidentiality Agreement attached hereto as Annex B, embody
the sole terms of the agreement between the Company and Castle Creek with
respect to the subject matter hereof and supersede all previous agreements,
whether oral or written, between the Company and Castle Creek with respect to the
subject matter hereof.  This Agreement
may not be altered, varied, revised or amended, except by an instrument in
writing signed by both the Company and Castle Creek after the date first
written above.  The Company and Castle
Creek have not made any other agreements or representations of any kind with
respect to such subject matter.

 

12.                                 This Agreement shall be governed by and
construed in accordance with the laws of the State of California without regard
to principles of conflict of laws.  Any
right to trial by jury with respect to any claim or proceeding related to or
arising out of this engagement or any transaction or conduct in connection
herewith, is waived.  Any claim or
dispute arising out of this Agreement or the alleged breach thereof shall be submitted
by the parties to binding and nonappealable arbitration by the American
Arbitration Association (“AAA”) in San Diego, California, under the commercial rules then
in effect for the AAA, except as provided herein.  The AAA shall recommend three arbitrators who
are knowledgeable in the field of investment banking.  The parties shall agree upon one of the three
arbitrators or, if no arbitrator is mutually agreed upon, the AAA shall appoint
one of the three arbitrators within 30 days of such failure.  The award rendered by the arbitrator shall
include costs of arbitration, reasonable attorneys’ fees and fees of experts
and other witnesses, but shall not include punitive damages against either
party.  Each party shall have the right
to request the arbitrator to order reasonable and limited discovery.  Notwithstanding this provision, either party
may seek appropriate injunctive relief.

 

13.                                 This Agreement may be executed in
counterparts, each of which shall be deemed an original and all of which shall
continue one and the same instrument.

 

14.                                 The obligations of the Company hereunder
shall be the joint and several obligations of the entities comprising the term
Company.

 

15.                                 The Company expressly acknowledges that
Castle Creek has been retained solely as an advisor to the Company, and not as
an advisor to or agent of any other person, and that the Company’s engagement
of Castle Creek is not intended to confer rights upon any persons not a party
hereto (including shareholders, employees or creditors of the Company) as
against Castle Creek, Castle Creek’s affiliates or their respective directors,
officers, agents

 

5

 

and employees. Any advice provided to the Company by
Castle Creek pursuant to this Agreement is solely for the information and
assistance of the executive management and Board of Directors of the
Company.  Such advice shall be treated as
confidential information and shall not be disclosed to any third party except
in accordance with the terms of the Confidentiality Agreement.  Any reference to Castle Creek or to any
affiliate of Castle Creek in any release or communication to any party outside
the Company is subject to Castle Creek’s prior written approval, which approval
shall not be unreasonably withheld or delayed. 
If this Agreement is terminated prior to any release or communication,
no reference shall be made to Castle Creek without Castle Creek’s prior written
approval.

 

16.                                 Neither the Company nor Castle Creek may
assign, transfer, license, or sublicense its rights under this Agreement
without the other party’s prior written consent, which may be granted or
withheld in the other party’s sole and absolute discretion.  Subject to the limitation in this paragraph,
this Agreement will inure to the benefit of and be binding upon both the
Company and Castle Creek and their respective successors and assigns.

 

17.                                 Castle Creek represents that it has the
necessary expertise to provide the services contemplated by this Agreement and
that the compensation provided for herein is fair and reasonable and comparable
to the compensation that would be charged by an independent provider of such
services with the same type, level and quality of expertise.  The Company acknowledges that the services
contemplated herein will meet legitimate needs of the Company and that it is in
the best interests of the Company to obtain such services.

 

18.                                 After closing a Transaction, Castle Creek
shall have the right to place advertisements in financial and other newspapers
and other newspapers and journals at its own expense describing its services to
the Company under this Agreement, provided that Castle Creek shall have
submitted a copy of any such proposed advertisements to the Company for its
prior approval, which approval shall not be unreasonably withheld or delayed.

 

[Signature Page Follows]

 

6

 

Please confirm that the
foregoing is in accordance with your understanding by signing and returning to
us the duplicates of this Agreement and the related indemnification agreement
which shall thereupon constitute binding agreements.

 

Very
truly yours,

 

	
  Castle Creek Financial LLC

  	
   

  
	
   

  
	
   

  
	
  /s/ William J.
  Ruh

  	
   

  
	
  William J. Ruh

  
	
  Executive Vice
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted and
  agreed:

  	
   

  
	
   

  	
   

  
	
  First Community Bancorp

  	
   

  
	
   

  	
   

  
	
  on its behalf
  and on behalf of the Company,

  	
   

  
	
  as defined above.

  	
   

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Matthew P.
  Wagner

  	
   

  
	
  Name:

  	
  Matthew P.
  Wagner

  
	
  Title:

  	
  President and
  CEO

  
	
  Date:

  	
  November 23,
  2005

  
				

 

7Exhibit 10.23

 

First Community
Bancorp

 

Executive Incentive Plan

Last Updated: February 8,
2006

 

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. Generally,
CEO compensation under the Plan will be determined by the CNG Committee or the
Board, as determined by the Board; the CEO and Executive Vice President, Human
Resources (“HR Director”) will administer compensation under the Plan for the
employees in salary grades 2, 3 and A; compensation under the Plan for
employees in salary grades B and below will be administered by the HR Director
along with the member of the IP Committee who is such employee’s direct or
indirect manager.

 

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; provided, however, that the CNG Committee
shall determine the Plan Performance Measures, Performance Measure Weights,
Achievement Levels and corresponding Award Opportunities for Plan Participants
who are members of the IP Committee. 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; provided,
however, that the CNG Committee will review achievements against Performance
Measures for members of the IP Committee. 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. Notwithstanding the foregoing, the IP Committee
may recommend executives in salary grade C for participation in the Plan on an
exception basis subject to 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.

 

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. For each Performance Measure, a
Performance Target will be set that will be used to gauge the Achievement
Level.

 

Each Performance Measure will operate independently i.e. it is possible
for one Performance Measure to generate an Award Opportunity 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,
representing a percentage of a Performance Target, 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.

 

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 $

  	
   

  	
  CNG / Board Discretion

  
	
  Other Executives (Grades 2, 3 and A)

  	
   

  	
  50% of Base $

  	
   

  	
  80% of Base $

  	
   

  	
  CNG / CEO Discretion

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Achievement Level (% of Target)

  	
   

  	
  90%

  	
   

  	
  100%

  	
   

  	
  Over 100%

  
	
  Award Opportunities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Key Contributors (Grades B)

  	
   

  	
  10% of Base $

  	
   

  	
  30% of Base $

  	
   

  	
  CEO/IP Discretion

  
	
  Other Key Officers (Grade C)

  	
   

  	
  10% of Base $

  	
   

  	
  20% of Base $

  	
   

  	
  30% of Base $

  

 

The Performance Measure and Performance Target for the
current Performance Period, as approved by the CNG Committee, along with
corresponding Award Opportunities, are set forth on Exhibit A.

 

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;
provided, however, that the CNG Committee shall determine and approve Awards
for members of the IP Committee. Any Award payable to the CEO shall be subject
to the approval of the CNG Committee and/or the Board of Directors, as determined
by the Board.

 

For purposes of the Plan, salary means annual base salary in effect at
the end of the Performance Period. 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.

 

In addition to all other eligibility provisions described herein,
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.

 

3

 

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.

 

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 if 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, 2006 – December 31, 2006

 

	
  Overall Performance Measure: EPS

  	
   

  	
  Performance Target:       

  
	
   

  	
   

  	
   

  
	
  Achievement Level (% of Target)

  	
   

  	
  90%

  	
   

  	
  100%

  	
   

  	
  Over 100%

  
	
  Award Opportunities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CEO First Community Bancorp (Grade 1)

  	
   

  	
  60% of Base $

  	
   

  	
  100% of Base $

  	
   

  	
  CNG/Board Discretion

  
	
  Other Executives (Grades 2, 3 and A)

  	
   

  	
  50% of Base $

  	
   

  	
  80% of Base $

  	
   

  	
  CNG/CEO/IP 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 $

  

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]