Document:

Exhibit 10.2

 

AMENDMENT 
 TO PACWEST BANCORP

2003 STOCK INCENTIVE PLAN

 

WHEREAS, PacWest Bancorp (the “Company”) sponsors the PacWest Bancorp Stock Incentive Plan, as amended and restated effective January 13, 2014 and as amended from time to time (the “Plan”) and capitalized terms used herein but not defined shall have the same meaning as under the Plan;

 

WHEREAS, Section 18 of the Plan provides that the Board of Directors of the Company may amend the Plan, except under circumstances not relevant hereto; and

 

WHEREAS, the Board of Directors desires to amend the Plan, effective as of December 11, 2014, to provide that Awards granted on or after such date shall be subject to double-trigger vesting upon a Change in Control, unless otherwise determined by the Committee.

 

NOW THEREFORE, the Plan is amended as follows, effective as of December 11, 2014:

 

1.                                      Section 2 is amended to amend the definition of “Vesting Event” in its entirety to read as follows:

 

“Vesting Event” shall mean the earlier of: (i) the occurrence of a Change in Control, for all Awards granted with an effective date prior to December 11, 2014; (ii) the termination of a Participant’s Service (other than for Cause) following the approval by the stockholders of the Company of any matter, plan or transaction which would constitute a Change in Control, for all Awards granted with an effective date prior to December 11, 2014; (iii) the termination of a Participant’s Service by the Company or any successor entity thereto without Cause or by the Participant for Good Reason (as defined in the Award Agreement, if applicable) within twenty-four months following the occurrence of a Change in Control, for all Awards granted with an effective date of December 11, 2014 or afterward; and (iv) the death of a Participant, for all Awards granted with an effective date of November 2, 2005 or afterward.

 

2.  The title to Section 11 is hereby amended to read as follows: “Adjustments Upon Changes in Capitalization; Change in Control” and Section 11 is amended to add a new subsection (c) to read as follows:

 

(c)                                  Change in Control.  This Section 11(c) shall apply to Awards granted with an effective date of December 11, 2014 or after.

 

(i)                                     Unless otherwise determined by the Committee (or unless otherwise set forth in an employment agreement or a severance agreement or plan applicable to a Participant), if a Participant’s Service is terminated by the Company or any successor entity thereto without Cause or by the Participant for Good Reason (as defined in the Award Agreement, if applicable), in each case

 

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upon or within twenty-four months after a Change in Control, each Award granted to such Participant prior to such Change in Control shall become fully vested (including the lapsing of all restrictions and conditions) and, as applicable, exercisable as of the date of such termination of Service, provided that, as of the Change in Control date, any outstanding Performance Stock Awards shall be deemed earned at the greater of the target level or actual performance level through the Change in Control date (or if no target level is specified, the maximum level) with respect to all open performance periods and shall be subject to time-based vesting following the Change in Control in accordance with the original performance period.

 

(ii)                                  Notwithstanding the foregoing, in the event of a Change in Control, a Participant’s Award may be treated, to the extent determined by the Committee to be permitted under Section 409A of the Code, in accordance with one of the following methods as determined by the Committee in its sole discretion: (i) provide for the issuance of substitute awards that will substantially preserve the otherwise applicable terms of any affected Award previously granted under the Plan, as determined by the Committee in its sole discretion; (ii) cancel such Award for fair value (as determined in the sole discretion of the Committee) which, in the case of Options and SARs, may equal the excess, if any, of the value of the consideration to be paid in the Change in Control transaction to holders of the same number of shares of Common Stock subject to such Options or SARs over the aggregate Exercise Price of such Options or SARs, as the case may be; or (iii) provide that for a period of at least 20 days prior to the Change in Control, any Options or SARs will be exercisable as to all shares of Common Stock subject thereto (but any such exercise will be contingent upon and subject to the occurrence of the Change in Control and if the Change in Control does not take place within a specified period after giving such notice for any reason whatsoever, the exercise will be null and void) and that any Options or SARs not exercised prior to the consummation of the Change in Control will terminate and be of no further force and effect as of the consummation of the Change in Control.  For the avoidance of doubt, in the event of a Change in Control, the Committee may, in its sole discretion, terminate any Option or SAR for which the Exercise Price is equal to or exceeds the per share value of the consideration to be paid in the Change in Control transaction without payment of consideration therefor.

 

IN WITNESS WHEREOF, PacWest Bancorp has caused this amendment to be executed by its duly authorized officers as of the 11th day of December, 2014.

 

	
 
    	
/s/   Kori Ogrosky
    
	
 
    	
Name:   Kori Ogrosky
    
	
 
    	
 
    
	
 
    	
Title:   EVP, General Counsel
    

 

2Exhibit 10.3

 

	

    	
 
    	
CLAWBACK   POLICY

 

EFFECTIVE DATE: DECEMBER 11, 2014

LAST REVIEWED: DECEMBER 11, 2014
    

 

Purpose:  The Board of Directors of PacWest Bancorp (the “Corporation”) has adopted this clawback policy (the “Clawback Policy”), effective as of December 11, 2014 (the “Effective Date”), to address the repayment, recoupment and forfeiture of certain incentive-based compensation awards and payments under certain circumstances.

 

Administration:  This Clawback Policy will be administered by the Compensation, Nominating and Governance Committee of the Board of Directors (the “CNG Committee”).  The CNG Committee is authorized, subject to the provisions of this Clawback Policy, to make such determinations and interpretations and to take such actions in connection with this Clawback Policy, including implementing any repayment, recoupment and forfeiture procedures, in each case, as it deems necessary or advisable.  Actions of the CNG Committee pursuant to this Clawback Policy may be taken by the vote of a majority of its members.  The Board of Directors of the Corporation (the “Board”) may, in its sole discretion, at any time and from time to time, administer this Clawback Policy, in which case the Board will have all of the authority and responsibility granted to the CNG Committee herein.  All determinations and interpretations made by the CNG Committee or the Board will be final, binding and conclusive. The CNG Committee shall review and approve this Clawback Policy no less than annually.

 

Covered Employees:  All Covered Employees (as defined below) are subject to this Clawback Policy.  For purposes of this Clawback Policy, the term “Covered Employee” means any current or former executive officer of the Corporation for purposes of the Securities Exchange Act of 1934, as amended, and any other employee who is designated by the CNG Committee as a Covered Employee for purposes of this Clawback Policy, as in effect from time to time.

 

Covered Awards:  This Clawback Policy applies to any annual or long-term cash, equity or equity-based incentive or bonus compensation paid, provided or awarded to any Covered Employee on or after the Effective Date (each, a “Covered Award”).

 

Clawback Events:  For purposes of this Clawback Policy, “Clawback Event” means the occurrence of any of the following events for a Covered Employee:

 

(i) a restatement of all or a portion of the Corporation’s financial statements; or

 

(ii) a financial statement, performance goal or metric that was materially inaccurate.  For these purposes, a performance goal or metric includes any goal or metric, including, but not limited to, corporate or business unit financial results and business unit or individual performance goals or metrics, used directly or indirectly to determine whether or not incentive compensation is to be paid, provided or awarded to a Covered Employee (or group of Covered Employees and/or other employees) or to determine the amount of any such compensation.

 

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Determination of Amount Subject to Recoupment, Repayment or Forfeiture.  If the CNG Committee determines, in its sole discretion, that a Clawback Event has occurred, the Committee may require recoupment, repayment and/or forfeiture of the portion of any Covered Award that represents the excess over what would have been paid if such Clawback Event had not occurred as determined by the CNG Committee in its sole discretion.

 

Notwithstanding anything herein to the contrary, the CNG Committee retains the sole discretion to determine whether, and to what extent, to enforce such recoupment, repayment or forfeiture upon consideration of each situation based on its individual facts and circumstances and may make determinations that are not uniform among the Covered Employees.

 

Amendment and Termination:  The CNG Committee or Board may terminate this Clawback Policy at any time.  The CNG Committee or Board may also, from time to time, suspend, discontinue, revise or amend this Clawback Policy in any respect whatsoever.  Nothing in this Clawback Policy will be deemed to limit or restrict the Corporation from providing for recoupment, repayment and/or forfeiture of compensation (including Incentive Compensation) under circumstances not set forth in this Clawback Policy.

 

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