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Exhibit 10.20    
    

GUARANTEE AGREEMENT  

 First Community Bancorp  

 Dated as of February 5, 2004  

 
 
 

TABLE OF CONTENTS    
    

	 
	 
	 	Page

	ARTICLE I

DEFINITIONS AND INTERPRETATION
	

SECTION 1.1.	

Definitions and Interpretation	
 	

1
	

ARTICLE II

POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE
	

SECTION 2.1.	

Powers and Duties of the Guarantee Trustee	
 	

3
	

SECTION 2.2.	

Certain Rights of the Guarantee Trustee	
 	

4
	

SECTION 2.3.	

Not Responsible for Recitals or Issuance of Guarantee	
 	

6
	

SECTION 2.4.	

Events of Default; Waiver	
 	

6
	

SECTION 2.5.	

Events of Default; Notice	
 	

6
	

ARTICLE III

THE GUARANTEE TRUSTEE
	

SECTION 3.1.	

The Guarantee Trustee; Eligibility	
 	

6
	

SECTION 3.2.	

Appointment, Removal and Resignation of the Guarantee Trustee	
 	

7
	

ARTICLE IV

GUARANTEE
	

SECTION 4.1.	

Guarantee	
 	

7
	

SECTION 4.2.	

Waiver of Notice and Demand	
 	

8
	

SECTION 4.3.	

Obligations Not Affected	
 	

8
	

SECTION 4.4.	

Rights of Holders	
 	

9
	

SECTION 4.5.	

Guarantee of Payment	
 	

9
	

SECTION 4.6.	

Subrogation	
 	

9
	

SECTION 4.7.	

Independent Obligations	
 	

9
	

SECTION 4.8.	

Enforcement	
 	

10
	 	 	 	 

i

 

	

ARTICLE V

LIMITATION OF TRANSACTIONS; SUBORDINATION
	

SECTION 5.1.	

Limitation of Transactions	
 	

10
	

SECTION 5.2.	

Ranking	
 	

10
	

ARTICLE VI

TERMINATION
	

SECTION 6.1.	

Termination	
 	

11
	

ARTICLE VII

INDEMNIFICATION
	

SECTION 7.1.	

Exculpation	
 	

11
	

SECTION 7.2.	

Indemnification	
 	

11
	

SECTION 7.3.	

Compensation; Reimbursement of Expenses	
 	

12
	

ARTICLE VIII

MISCELLANEOUS
	

SECTION 8.1.	

Successors and Assigns	
 	

13
	

SECTION 8.2.	

Amendments	
 	

13
	

SECTION 8.3.	

Notices	
 	

13
	

SECTION 8.4.	

Benefit	
 	

14
	

SECTION 8.5.	

Governing Law	
 	

14
	

SECTION 8.6.	

Counterparts	
 	

14

ii

 
 

GUARANTEE AGREEMENT    
    

        This GUARANTEE AGREEMENT (the "Guarantee"), dated as of February 5, 2004, is executed and delivered by First Community Bancorp, incorporated in California
(the "Guarantor"), and JPMorgan Chase Bank, as trustee (the "Guarantee Trustee"), for the benefit of the Holders (as defined herein) from time to time of the Capital Securities (as defined herein) of
First Community Bancorp/CA Statutory Trust VII, a Delaware statutory trust (the "Issuer"). 

        WHEREAS,
pursuant to an Amended and Restated Declaration of Trust (the "Declaration"), dated as of February 5, 2004, among the trustees named therein of the Issuer, First
Community Bancorp, as sponsor, and the Holders from time to time of undivided beneficial interests in the assets of the Issuer, the Issuer is issuing on the date hereof securities, having an aggregate
liquidation amount of up to $60,000,000, designated the TP Securities (the "Capital Securities"); and 

        WHEREAS,
as incentive for the Holders to purchase the Capital Securities, the Guarantor desires irrevocably and unconditionally to agree, to the extent set forth in this Guarantee, to
pay to the Holders of Capital Securities the Guarantee Payments (as defined herein) and to make certain other payments on the terms and conditions set forth herein. 

        NOW,
THEREFORE, in consideration of the purchase by each Holder of the Capital Securities, which purchase the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes
and delivers this Guarantee for the benefit of the Holders. 

 
 

ARTICLE I
  DEFINITIONS AND INTERPRETATION    
    

        SECTION 1.1.    Definitions and Interpretation.    

        In
this Guarantee, unless the context otherwise requires: 

        (a)   capitalized
terms used in this Guarantee but not defined in the preamble above have the respective meanings assigned to them in this Section 1.1; 

        (b)   a
term defined anywhere in this Guarantee has the same meaning throughout; 

        (c)   all
references to "the Guarantee" or "this Guarantee" are to this Guarantee as modified, supplemented or amended from time to time; 

        (d)   all
references in this Guarantee to Articles and Sections are to Articles and Sections of this Guarantee, unless otherwise specified; 

        (e)   terms
defined in the Declaration as of the date of execution of this Guarantee have the same meanings when used in this Guarantee, unless otherwise defined in this
Guarantee or unless the context otherwise requires; and 

        (f)    a
reference to the singular includes the plural and vice versa. 

        "Beneficiaries"
means any Person to whom the Issuer is or hereafter becomes indebted or liable. 

        "Corporate
Trust Office" means the office of the Guarantee Trustee at which the corporate trust business of the Guarantee Trustee shall, at any particular time, be principally
administered. 

        "Covered
Person" means any Holder of Capital Securities. 

        "Debentures"
means the junior subordinated debentures of First Community Bancorp, designated the Junior Subordinated Debt Securities due 2034, held by the Institutional Trustee (as
defined in the Declaration) of the Issuer. 

        "Event
of Default" has the meaning set forth in Section 2.4. 

        "Guarantee
Payments" means the following payments or distributions, without duplication, with respect to the Capital Securities, to the extent not paid or made by the Issuer:
(i) any accrued and 

 

unpaid
Distributions (as defined in the Declaration) which are required to be paid on such Capital Securities to the extent the Issuer has funds available in the Property Account (as defined in the
Declaration) therefor at such time, (ii) the Redemption Price (as defined in the Indenture) to the extent the Issuer has funds available in the Property Account therefor at such time, with
respect to any Capital Securities called for redemption by the Issuer, (iii) the Special Redemption Price (as defined in the Indenture) to the extent the Issuer has funds available in the
Property Account therefor at such time, with respect to Capital Securities called for redemption upon the occurrence of a Special Event (as defined in the Indenture), and (iv) upon a voluntary
or involuntary liquidation, dissolution, winding-up or termination of the Issuer (other than in connection with the distribution of Debentures to the Holders of the Capital Securities in
exchange therefor as provided in the Declaration), the lesser of (a) the aggregate of the liquidation amount and all accrued and unpaid Distributions on the Capital Securities to the date of
payment, to the extent the Issuer has funds available in the Property Account therefor at such time, and (b) the amount of assets of the Issuer remaining available for distribution to Holders
in liquidation of the Issuer after satisfaction of liabilities to creditors of the Issuer as required by applicable law (in either case, the "Liquidation Distribution"). 

        "Guarantee
Trustee" means JPMorgan Chase Bank, until a Successor Guarantee Trustee has been appointed and has accepted such appointment pursuant to the terms of this Guarantee and
thereafter means each such Successor Guarantee Trustee. 

        "Holder"
means any holder, as registered on the books and records of the Issuer, of any Capital Securities; provided, however, that, in determining whether the holders of the requisite
percentage of Capital Securities have given any request, notice, consent or waiver hereunder, "Holder" shall not include the Guarantor or any Affiliate of the Guarantor. 

        "Indemnified
Person" means the Guarantee Trustee (including in its individual capacity), any Affiliate of the Guarantee Trustee, or any officers, directors, shareholders, members,
partners, employees, representatives, nominees, custodians or agents of the Guarantee Trustee. 

        "Indenture"
means the Indenture, dated as of February 5, 2004, between the Guarantor and JPMorgan Chase Bank, not in its individual capacity but solely as trustee, and any
indenture supplemental thereto pursuant to which the Debentures are to be issued to the Institutional Trustee of the Issuer. 

        "Liquidation
Distribution" has the meaning set forth in the definition of "Guarantee Payments" herein. 

        "Majority
in liquidation amount of the Capital Securities" means Holder(s) of outstanding Capital Securities, voting together as a class, but separately from the holders of Common
Securities, of more than 50% of the aggregate liquidation amount (including the stated amount that would be paid on redemption, liquidation or otherwise, plus accrued and unpaid Distributions to, but
excluding, the date upon which the voting percentages are determined) of all Capital Securities then outstanding. 

        "Obligations"
means any costs, expenses or liabilities (but not including liabilities related to taxes) of the Issuer, other than obligations of the Issuer to pay to holders of any Trust
Securities the amounts due such holders pursuant to the terms of the Trust Securities. 

        "Officer's
Certificate" means, with respect to any Person, a certificate signed by one Authorized Officer of such Person. Any Officer's Certificate delivered with respect to compliance
with a condition or covenant provided for in this Guarantee shall include: 

        (a)   a
statement that each officer signing the Officer's Certificate has read the covenant or condition and the definitions relating thereto; 

        (b)   a
brief statement of the nature and scope of the examination or investigation undertaken by each officer in rendering the Officer's Certificate; 

2

 

        (c)   a
statement that each such officer has made such examination or investigation as, in such officer's opinion, is necessary to enable such officer to express an informed
opinion as to whether or not such covenant or condition has been complied with; and 

        (d)   a
statement as to whether, in the opinion of each such officer, such condition or covenant has been complied with. 

        "Person"
means a legal person, including any individual, corporation, estate, partnership, joint venture, association, joint stock company, limited liability company, trust,
unincorporated association, or government or any agency or political subdivision thereof, or any other entity of whatever nature. 

        "Responsible
Officer" means, with respect to the Guarantee Trustee, any officer within the Corporate Trust Office of the Guarantee Trustee with direct responsibility for the
administration of any matters relating to this Guarantee, including any vice president, any assistant vice president, any secretary, any assistant secretary, the treasurer, any assistant treasurer,
any trust officer or other officer of the Corporate Trust Office of the Guarantee Trustee customarily performing functions similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of that officer's knowledge of and familiarity with the particular subject. 

        "Successor
Guarantee Trustee" means a successor Guarantee Trustee possessing the qualifications to act as Guarantee Trustee under Section 3.1. 

        "Trust
Securities" means the Common Securities and the Capital Securities. 

 
 

ARTICLE II
  POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE    
    

        SECTION 2.1.    Powers and Duties of the Guarantee Trustee.    

        (a)   This
Guarantee shall be held by the Guarantee Trustee for the benefit of the Holders of the Capital Securities, and the Guarantee Trustee shall not transfer this
Guarantee to any Person except a Holder of Capital Securities exercising his or her rights pursuant to Section 4.4(b) or to a Successor Guarantee Trustee on acceptance by such Successor
Guarantee Trustee of its appointment to act as Successor Guarantee Trustee. The right, title and interest of the Guarantee Trustee shall automatically vest in any Successor Guarantee Trustee, and such
vesting and cessation of title shall be effective whether or not conveyancing documents have been executed and delivered pursuant to the appointment of such Successor Guarantee Trustee. 

        (b)   If
an Event of Default actually known to a Responsible Officer of the Guarantee Trustee has occurred and is continuing, the Guarantee Trustee shall enforce this
Guarantee for the benefit of the Holders of the Capital Securities. 

        (c)   The
Guarantee Trustee, before the occurrence of any Event of Default and after the curing or waiving of all Events of Default that may have occurred, shall undertake to
perform only such duties as are specifically set forth in this Guarantee, and no implied covenants shall be read into this Guarantee against the Guarantee Trustee. In case an Event of Default has
occurred (that has not been cured or waived pursuant to Section 2.4(b)) and is actually known to a Responsible Officer of the Guarantee Trustee, the Guarantee Trustee shall exercise such of the
rights and powers vested in it by this Guarantee, and use the same degree of care and skill in its exercise thereof, as a prudent person would exercise or use under the circumstances in the conduct of
his or her own affairs. 

3

 

        (d)   No
provision of this Guarantee shall be construed to relieve the Guarantee Trustee from liability for its own negligent action, its own negligent failure to act, or its
own willful misconduct, except that: 

        (i)    prior
to the occurrence of any Event of Default and after the curing or waiving of all Events of Default that may have occurred: 

        (A)  the
duties and obligations of the Guarantee Trustee shall be determined solely by the express provisions of this Guarantee, and the Guarantee Trustee shall not be liable
except for the performance of such duties and obligations as are specifically set forth in this Guarantee, and no implied covenants or obligations shall be read into this Guarantee against the
Guarantee Trustee; and 

        (B)  in
the absence of bad faith on the part of the Guarantee Trustee, the Guarantee Trustee may conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon any certificates or opinions furnished to the Guarantee Trustee and conforming to the requirements of this Guarantee; but in the case of any such certificates or
opinions furnished to the Guarantee Trustee, the Guarantee Trustee shall be under a duty to examine the same to determine whether or not on their face they conform to the requirements of this
Guarantee; 

        (ii)   the
Guarantee Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer of the Guarantee Trustee, unless it shall be proved that
such Responsible Officer of the Guarantee Trustee or the Guarantee Trustee was negligent in ascertaining the pertinent facts upon which such judgment was made; 

        (iii)  the
Guarantee Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the written direction of the
Holders of not less than a Majority in liquidation amount of the Capital Securities relating to the time, method and place of conducting any proceeding for any remedy available to the Guarantee
Trustee, or exercising any trust or power conferred upon the Guarantee Trustee under this Guarantee; and 

        (iv)  no
provision of this Guarantee shall require the Guarantee Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of
any of its duties or in the exercise of any of its rights or powers, if the Guarantee Trustee shall have reasonable grounds for believing that the repayment of such funds is not reasonably assured to
it under the terms of this Guarantee, or security and indemnity, reasonably satisfactory to the Guarantee Trustee, against such risk or liability is not reasonably assured to it. 

        SECTION 2.2.    Certain Rights of the Guarantee Trustee.    

        (a)   Subject
to the provisions of Section 2.1: 

        (i)    The
Guarantee Trustee may conclusively rely, and shall be fully protected in acting or refraining from acting upon, any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed, sent
or presented by the proper party or parties. 

        (ii)   Any
direction or act of the Guarantor contemplated by this Guarantee shall be sufficiently evidenced by an Officer's Certificate. 

        (iii)  Whenever,
in the administration of this Guarantee, the Guarantee Trustee shall deem it desirable that a matter be proved or established before taking, suffering or
omitting any action hereunder, the Guarantee Trustee (unless other evidence is herein specifically prescribed) may, in 

4

 

the
absence of bad faith on its part, request and conclusively rely upon an Officer's Certificate of the Guarantor which, upon receipt of such request, shall be promptly delivered by the Guarantor. 

        (iv)  The
Guarantee Trustee shall have no duty to see to any recording, filing or registration of any instrument or other writing (or any rerecording, refiling or
reregistration thereof). 

        (v)   The
Guarantee Trustee may consult with counsel of its selection, and the advice or opinion of such counsel with respect to legal matters shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with such advice or opinion. Such counsel may be counsel to the
Guarantor or any of its Affiliates and may
include any of its employees. The Guarantee Trustee shall have the right at any time to seek instructions concerning the administration of this Guarantee from any court of competent jurisdiction. 

        (vi)  The
Guarantee Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Guarantee at the request or direction of any Holder,
unless such Holder shall have provided to the Guarantee Trustee such security and indemnity, reasonably satisfactory to the Guarantee Trustee, against the costs, expenses (including attorneys' fees
and expenses and the expenses of the Guarantee Trustee's agents, nominees or custodians) and liabilities that might be incurred by it in complying with such request or direction, including such
reasonable advances as may be requested by the Guarantee Trustee; provided, however, that nothing
contained in this Section 2.2(a)(vi) shall be taken to relieve the Guarantee Trustee, upon the occurrence of an Event of Default, of its obligation to exercise the rights and powers
vested in it by this Guarantee. 

        (vii) The
Guarantee Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Guarantee Trustee, in its discretion, may make such
further inquiry or investigation into such facts or matters as it may see fit. 

        (viii) The
Guarantee Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents, nominees, custodians
or attorneys, and the Guarantee Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. 

        (ix)  Any
action taken by the Guarantee Trustee or its agents hereunder shall bind the Holders of the Capital Securities, and the signature of the Guarantee Trustee or its
agents alone shall be sufficient and effective to perform any such action. No third party shall be required to inquire as to the authority of the Guarantee Trustee to so act or as to its compliance
with any of the terms and provisions of this Guarantee, both of which shall be conclusively evidenced by the Guarantee Trustee's or its agent's taking such action. 

        (x)   Whenever
in the administration of this Guarantee the Guarantee Trustee shall deem it desirable to receive instructions with respect to enforcing any remedy or right or
taking any other action hereunder, the Guarantee Trustee (A) may request instructions from the Holders of a Majority in liquidation amount of the Capital Securities, (B) may refrain from
enforcing such remedy or right or taking such other action until such instructions are received and (C) shall be protected in conclusively relying on or acting in accordance with such
instructions. 

        (xi)  The
Guarantee Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith and reasonably believed by it to be authorized or
within the discretion or rights or powers conferred upon it by this Guarantee. 

        (b)   No
provision of this Guarantee shall be deemed to impose any duty or obligation on the Guarantee Trustee to perform any act or acts or exercise any right, power, duty or
obligation conferred 

5

 

or
imposed on it, in any jurisdiction in which it shall be illegal or in which the Guarantee Trustee shall be unqualified or incompetent in accordance with applicable law to perform any such act or
acts or to exercise any such right, power, duty or obligation. No permissive power or authority available to the Guarantee Trustee shall be construed to be a duty. 

        SECTION 2.3.    Not Responsible for Recitals or Issuance of Guarantee.    

        The
recitals contained in this Guarantee shall be taken as the statements of the Guarantor, and the Guarantee Trustee does not assume any responsibility for their correctness. The
Guarantee Trustee makes no representation as to the validity or sufficiency of this Guarantee. 

        SECTION 2.4.    Events of Default; Waiver.    

        (a)   An
Event of Default under this Guarantee will occur upon the failure of the Guarantor to perform any of its payment or other obligations hereunder. 

        (b)   The
Holders of a Majority in liquidation amount of the Capital Securities may, voting or consenting as a class, on behalf of the Holders of all of the Capital
Securities, waive any past Event of Default and its consequences. Upon such waiver, any such Event of Default shall cease to exist, and shall be deemed to have been cured, for every purpose of this
Guarantee, but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon. 

        SECTION 2.5.    Events of Default; Notice.    

        (a)   The
Guarantee Trustee shall, within 90 days after the occurrence of an Event of Default, transmit by mail, first class postage prepaid, to the Holders of the
Capital Securities, notices of all Events of Default actually known to a Responsible Officer of the Guarantee Trustee, unless such defaults have been cured before the giving of such notice,  provided,
however, that the Guarantee Trustee shall be protected in withholding such notice if and so
long as a Responsible Officer of the Guarantee Trustee in good faith determines that the withholding of such notice is in the interests of the Holders of the Capital Securities. 

        (b)   The
Guarantee Trustee shall not be charged with knowledge of any Event of Default unless the Guarantee Trustee shall have received written notice thereof from the
Guarantor or a Holder of the Capital Securities, or a Responsible Officer of the Guarantee Trustee charged with the administration of this Guarantee shall have actual knowledge thereof. 

 
 

ARTICLE III
  THE GUARANTEE TRUSTEE    
    

        SECTION 3.1.    The Guarantee Trustee; Eligibility.    

        (a)   There
shall at all times be a Guarantee Trustee which shall: 

        (i)    not
be an Affiliate of the Guarantor; and 

        (ii)   be
a corporation or national association organized and doing business under the laws of the United States of America or any state or territory thereof or of the
District of Columbia, or Person authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least 50 million U.S. dollars ($50,000,000), and
subject to supervision or examination by federal, state, territorial or District of Columbia authority. If such corporation or national association publishes reports of condition at least annually,
pursuant to law or to the requirements of the supervising or examining authority referred to above, then, for the purposes of this Section 3.1(a)(ii), the combined capital and surplus of such
corporation or national association shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. 

6

 

        (b)   If
at any time the Guarantee Trustee shall cease to be eligible to so act under Section 3.1(a), the Guarantee Trustee shall immediately resign in the manner and
with the effect set forth in Section 3.2(c). 

        (c)   If
the Guarantee Trustee has or shall acquire any "conflicting interest' within the meaning of Section 310(b) of the Trust Indenture Act, the Guarantee Trustee
shall either eliminate such interest or resign to the extent and in the manner provided by, and subject to, this Guarantee. 

        SECTION 3.2.    Appointment, Removal and Resignation of the Guarantee Trustee.    

        (a)   Subject
to Section 3.2(b), the Guarantee Trustee may be appointed or removed without cause at any time by the Guarantor except during an Event of Default. 

        (b)   The
Guarantee Trustee shall not be removed in accordance with Section 3.2(a) until a Successor Guarantee Trustee has been appointed and has accepted such
appointment by written instrument executed by such Successor Guarantee Trustee and delivered to the Guarantor. 

        (c)   The
Guarantee Trustee appointed to office shall hold office until a Successor Guarantee Trustee shall have been appointed or until its removal or resignation. The
Guarantee Trustee may resign from office (without need for prior or subsequent accounting) by an instrument in writing executed by the Guarantee Trustee and delivered to the Guarantor, which
resignation shall not take effect until a Successor Guarantee Trustee has been appointed and has accepted such appointment by an instrument in writing executed by such Successor Guarantee Trustee and
delivered to the Guarantor and the resigning Guarantee Trustee. 

        (d)   If
no Successor Guarantee Trustee shall have been appointed and accepted appointment as provided in this Section 3.2 within 60 days after delivery of an
instrument of removal or resignation, the Guarantee Trustee resigning or being removed may petition any court of competent jurisdiction for appointment of a Successor Guarantee Trustee. Such court may
thereupon, after prescribing such notice, if any, as it may deem proper, appoint a Successor Guarantee Trustee. 

        (e)   No
Guarantee Trustee shall be liable for the acts or omissions to act of any Successor Guarantee Trustee. 

        (f)    Upon
termination of this Guarantee or removal or resignation of the Guarantee Trustee pursuant to this Section 3.2, the Guarantor shall pay to the Guarantee
Trustee all amounts owing to the Guarantee Trustee under Sections 7.2 and 7.3 accrued to the date of such termination, removal or resignation. 

 
 

ARTICLE IV
  GUARANTEE    
    

        SECTION 4.1.    Guarantee.    

        (a)   The
Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the Guarantee Payments (without duplication of amounts theretofore paid by the
Issuer), as and when due, regardless of any defense (except as defense of payment by the Issuer), right of set-off or counterclaim that the Issuer may have or assert. The Guarantor's
obligation to make a Guarantee Payment may be satisfied by direct payment of the required amounts by the Guarantor to the Holders or by causing the Issuer to pay such amounts to the Holders. 

        (b)   The
Guarantor hereby also agrees to assume any and all Obligations of the Issuer and in the event any such Obligation is not so assumed, subject to the terms and
conditions hereof, the Guarantor hereby irrevocably and unconditionally guarantees to each Beneficiary the full payment, when and as due, of any and all Obligations to such Beneficiaries. This
Guarantee is intended to be for the Beneficiaries who have received notice hereof. 

7

 

        SECTION 4.2.    Waiver of Notice and Demand.    

        The
Guarantor hereby waives notice of acceptance of this Guarantee and of any liability to which it applies or may apply, presentment, demand for payment, any right to require a
proceeding first against the Issuer or any other Person before proceeding against the Guarantor, protest, notice of nonpayment, notice of dishonor, notice of redemption and all other notices and
demands. 

        SECTION 4.3.    Obligations Not Affected.    

        The
obligations, covenants, agreements and duties of the Guarantor under this Guarantee shall in no way be affected or impaired by reason of the happening from time to time of any of the
following: 

        (a)   the
release or waiver, by operation of law or otherwise, of the performance or observance by the Issuer of any express or implied agreement, covenant, term or condition
relating to the Capital Securities to be performed or observed by the Issuer; 

        (b)   the
extension of time for the payment by the Issuer of all or any portion of the Distributions, Redemption Price, Special Redemption Price, Liquidation Distribution or
any other sums payable under the terms of the Capital Securities or the extension of time for the performance of any other obligation under, arising out of, or in connection with, the Capital
Securities (other than an extension of time for the payment of the Distributions, Redemption Price, Special Redemption Price, Liquidation Distribution or other sums payable that results from the
extension of any interest payment period on the Debentures or any extension of the maturity date of the Debentures permitted by the Indenture); 

        (c)   any
failure, omission, delay or lack of diligence on the part of the Holders to enforce, assert or exercise any right, privilege, power or remedy conferred on the
Holders pursuant to the terms of the Capital Securities, or any action on the part of the Issuer granting indulgence or extension of any kind; 

        (d)   the
voluntary or involuntary liquidation, dissolution, sale of any collateral, receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the Issuer or any of the assets of the Issuer; 

        (e)   any
invalidity of, or defect or deficiency in, the Capital Securities; 

8

  

        (f)    the
settlement or compromise of any obligation guaranteed hereby or hereby incurred; or 

        (g)   any
other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a guarantor, it being the intent of this
Section 4.3 that the obligations of the Guarantor hereunder shall be absolute and unconditional under any and all circumstances. 

        There
shall be no obligation of the Holders to give notice to, or obtain consent of, the Guarantor with respect to the happening of any of the foregoing. 

        SECTION 4.4.    Rights of Holders.    

        (a)   The
Holders of a Majority in liquidation amount of the Capital Securities have the right to direct the time, method and place of conducting any proceeding for any remedy
available to the Guarantee Trustee in respect of this Guarantee or to direct the exercise of any trust or power conferred upon the Guarantee Trustee under this Guarantee;  provided, however, that (subject to Sections 2.1 and 2.2) the Guarantee Trustee shall have the right to
decline to follow any such direction if the Guarantee Trustee, being advised by legal counsel, shall determine that the actions so directed would be unjustly prejudicial to the Holders not taking part
in such direction or if the Guarantee Trustee being advised by legal counsel determines that the action or proceeding so directed may not lawfully be taken or if the Guarantee Trustee in good faith by
its board of directors or trustees, executive committee or a trust committee of directors or trustees and/or Responsible Officers shall determine that the action or proceeding so directed would
involve the Guarantee Trustee in personal liability. 

        (b)   Any
Holder of Capital Securities may institute a legal proceeding directly against the Guarantor to enforce the Guarantee Trustee's rights under this Guarantee, without
first instituting a legal proceeding against the Issuer, the Guarantee Trustee or any other Person. The Guarantor waives any right or remedy to require that any such action be brought first against
the Issuer, the Guarantee Trustee or any other Person before so proceeding directly against the Guarantor. 

        SECTION 4.5.    Guarantee of Payment.    

        This
Guarantee creates a guarantee of payment and not of collection. 

        SECTION 4.6.    Subrogation.    

        The
Guarantor shall be subrogated to all (if any) rights of the Holders of Capital Securities against the Issuer in respect of any amounts paid to such Holders by the Guarantor under
this Guarantee; provided, however, that the Guarantor shall not (except to the extent required by
applicable provisions of law) be entitled to enforce or exercise any right that it may acquire by way of subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of
payment under this Guarantee, if, after giving effect to any such payment, any amounts are due and unpaid under this Guarantee. If any amount shall be paid to the Guarantor in violation of the
preceding sentence, the Guarantor agrees to hold such amount in trust for the Holders and to pay over such amount to the Holders. 

        SECTION 4.7.    Independent Obligations.    

        The
Guarantor acknowledges that its obligations hereunder are independent of the obligations of the Issuer with respect to the Capital Securities and that the Guarantor shall be liable
as principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this Guarantee notwithstanding the occurrence of any event referred to in subsections (a) through (g),
inclusive, of Section 4.3 hereof. 

9

 

        SECTION 4.8.    Enforcement.    

        A
Beneficiary may enforce the Obligations of the Guarantor contained in Section 4.1 (b) directly against the Guarantor, and the Guarantor waives any right or remedy to
require that any action be brought against the Issuer or any other person or entity before proceeding against the Guarantor. 

        The
Guarantor shall be subrogated to all rights (if any) of any Beneficiary against the Issuer in respect of any amounts paid to the Beneficiaries by the Guarantor under this Guarantee;  provided,
however, that the Guarantor shall not (except to the extent required by applicable provisions
of law) be entitled to enforce or exercise any rights that it may acquire by way of subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of payment under this
Guarantee, if, after giving effect to such payment, any amounts are due and unpaid under this Guarantee. 

 
 

ARTICLE V
  LIMITATION OF TRANSACTIONS; SUBORDINATION    
    

        SECTION 5.1.    Limitation of Transactions.    

        So
long as any Capital Securities remain outstanding, if (a) there shall have occurred and be continuing an Event of Default or (b) the Guarantor shall have selected an
Extension Period as provided in the Declaration and such period, or any extension thereof, shall have commenced and be continuing, then the Guarantor may not (x) declare or pay any dividends or
distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Guarantor's capital stock or (y) make any payment of principal of or interest or
premium, if any, on or repay, repurchase or redeem any debt securities of the Guarantor that rank pari passu in all respects with or junior in interest
to the Debentures (other than (i) payments under this Guarantee, (ii) repurchases, redemptions or other acquisitions of shares of capital stock of the Guarantor (A) in connection
with any employment contract, benefit plan or other similar arrangement with or for the benefit of one or more employees, officers, directors, or consultants, (B) in connection with a dividend
reinvestment or stockholder stock purchase plan or (C) in connection with the issuance of capital stock of the Guarantor (or securities convertible into or exercisable for such capital stock),
as consideration in an acquisition transaction entered into prior to the occurrence of the Event of Default or the applicable Extension Period, (iii) as a result of any exchange,
reclassification, combination or conversion of any class or series of the Guarantor's capital stock (or any capital stock of a subsidiary of the Guarantor) for any class or series of the Guarantor's
capital stock or of any class or series of the Guarantor's indebtedness for any class or series of the Guarantor's capital stock, (iv) the purchase of fractional interests in shares of the
Guarantor's capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (v) any declaration of a dividend in connection
with any stockholder's rights plan, or the issuance of rights, stock or other property under any stockholder's rights plan, or the redemption or repurchase of rights pursuant thereto, or
(vi) any dividend in the form of stock, warrants, options or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same
stock as that on which the dividend is being paid or ranks pari passu with or junior to such stock). 

        SECTION 5.2.    Ranking.    

        This
Guarantee will constitute an unsecured obligation of the Guarantor and will rank subordinate and junior in right of payment to all present and future Senior Indebtedness (as defined
in the Indenture) of the Guarantor. By their acceptance thereof, each Holder of Capital Securities agrees to the foregoing provisions of this Guarantee and the other terms set forth herein. 

        The
right of the Guarantor to participate in any distribution of assets of any of its subsidiaries upon any such subsidiary's liquidation or reorganization or otherwise is subject to the
prior claims of creditors of that subsidiary, except to the extent the Guarantor may itself be recognized as a creditor of 

10

 

that
subsidiary. Accordingly, the Guarantor's obligations under this Guarantee will be effectively subordinated to all existing and future liabilities of the Guarantor's subsidiaries, and claimants
should look only to the assets of the Guarantor for payments thereunder. This Guarantee does not limit the incurrence or issuance of other secured or unsecured debt of the Guarantor, including Senior
Indebtedness of the Guarantor, under any indenture or agreement that the Guarantor may enter into in the future or otherwise. 

 
 

ARTICLE VI
  TERMINATION    
    

        SECTION 6.1.    Termination.    

        This
Guarantee shall terminate as to the Capital Securities (i) upon full payment of the Redemption Price or the Special Redemption Price, as the case may be, of all Capital
Securities then outstanding, (ii) upon the distribution of all of the Debentures to the Holders of all of the Capital Securities or (iii) upon full payment of the amounts payable in
accordance with the Declaration upon dissolution of the Issuer. This Guarantee will continue to be effective or will be reinstated, as the case may be, if at any time any Holder of Capital Securities
must restore payment of any sums paid under the Capital Securities or under this Guarantee. 

 
 

ARTICLE VII
  INDEMNIFICATION    
    

        SECTION 7.1.    Exculpation.    

        (a)   No
Indemnified Person shall be liable, responsible or accountable in damages or otherwise to the Guarantor or any Covered Person for any loss, damage or claim incurred
by reason of any act or omission of such Indemnified Person in good faith in accordance with this Guarantee and in a manner that such Indemnified Person reasonably believed to be within the scope of
the authority conferred on such Indemnified Person by this Guarantee or by law, except that an Indemnified Person shall be liable for any such loss, damage or claim incurred by reason of such
Indemnified Person's negligence or willful misconduct with respect to such acts or omissions. 

        (b)   An
Indemnified Person shall be fully protected in relying in good faith upon the records of the Issuer or the Guarantor and upon such information, opinions, reports or
statements presented to the Issuer or the Guarantor by any Person as to matters the Indemnified Person reasonably believes are within such other Person's professional or expert competence and who, if
selected by such Indemnified Person, has been selected with reasonable care by such Indemnified Person, including information, opinions, reports or statements as to the value and amount of the assets,
liabilities, profits, losses, or any other facts pertinent to the existence and amount of assets from which Distributions to Holders of Capital Securities might properly be paid. 

        SECTION 7.2.    Indemnification.    

        (a)   The
Guarantor agrees to indemnify each Indemnified Person for, and to hold each Indemnified Person harmless against, any and all loss, liability, damage, claim or
expense incurred without negligence, willful misconduct or bad faith on the part of the Indemnified Person, arising out of or in connection with the acceptance or administration of the trust or trusts
hereunder, including but not limited to the costs and expenses (including reasonable legal fees and expenses) of the Indemnified Person defending itself against, or investigating, any claim or
liability in connection with the exercise or performance of any of the Indemnified Person's powers or duties hereunder. The obligation to indemnify as set forth in this Section 7.2 shall
survive the resignation or removal of the Guarantee Trustee and the termination of this Guarantee. 

11

 

        (b)   Promptly
after receipt by an Indemnified Person under this Section 7.2 of notice of the commencement of any action, such Indemnified Person will, if a claim in
respect thereof is to be made against the Guarantor under this Section 7.2, notify the Guarantor in writing of the commencement thereof; but the failure so to notify the Guarantor
(i) will not relieve the Guarantor from liability under paragraph (a) above unless and to the extent that the Guarantor did not otherwise learn of such action and such failure results in
the forfeiture by the Guarantor of substantial rights and defenses and (ii) will not, in any event, relieve the Guarantor from any obligations to any Indemnified Person other than the
indemnification obligation provided in paragraph (a) above. The Guarantor shall be entitled to appoint counsel of the Guarantor's choice at the Guarantor's expense to represent the Indemnified
Person in any action for which indemnification is sought (in which case the Guarantor shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the Indemnified
Person or Persons except as set forth below); provided, however, that such counsel shall be satisfactory
to the Indemnified Person. Notwithstanding the Guarantor's election to appoint counsel to represent the Indemnified Person in any action, the Indemnified Person shall have the right to employ separate
counsel (including local counsel), and the Guarantor shall bear the reasonable fees, costs and expenses of such separate counsel (and local counsel), if (i) the use of counsel chosen by the
Guarantor to represent the Indemnified Person would present such counsel with a conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action include both the
Indemnified Person and the Guarantor and the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it and/or other Indemnified Persons which are different
from or additional to those available to the Guarantor, (iii) the Guarantor shall not have employed counsel satisfactory to the Indemnified Person to represent the Indemnified Person within a
reasonable time after notice of the institution of such action or (iv) the Guarantor shall authorize the Indemnified Person to employ separate counsel at the expense of the Guarantor. The
Guarantor will not, without the prior written consent of the Indemnified Persons, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action,
suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the Indemnified Persons are actual or potential parties to such claim or action) unless
such settlement, compromise or consent includes an unconditional release of each Indemnified Person from all liability arising out of such claim, action, suit or proceeding. 

        SECTION 7.3.    Compensation; Reimbursement of Expenses.    

        The
Guarantor agrees: 

        (a)   to
pay to the Guarantee Trustee from time to time such compensation for all services rendered by it hereunder as the parties shall agree to from time to time (which
compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); and 

        (b)   except
as otherwise expressly provided herein, to reimburse the Guarantee Trustee upon request for all reasonable expenses, disbursements and advances incurred or made
by it in accordance with any provision of this Guarantee (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or
advance as may be attributable to its negligence or willful misconduct. 

        The
provisions of this Section 7.3 shall survive the resignation or removal of the Guarantee Trustee and the termination of this Guarantee. 

12

 
 
 

ARTICLE VIII
  MISCELLANEOUS    
    

        SECTION 8.1.    Successors and Assigns.    

        All
guarantees and agreements contained in this Guarantee shall bind the successors, assigns, receivers, trustees and representatives of the Guarantor and shall inure to the benefit of
the Holders of the Capital Securities then outstanding. Except in connection with any merger or consolidation of the Guarantor with or into another entity or any sale, transfer or lease of the
Guarantor's assets to another entity, in each case to the extent permitted under the Indenture, the Guarantor may not assign its rights or delegate its obligations under this Guarantee without the
prior approval of the Holders of not less than a Majority in liquidation amount of the Capital Securities. 

        SECTION 8.2.    Amendments.    

        Except
with respect to any changes that do not adversely affect the rights of Holders of the Capital Securities in any material respect (in which case no consent of Holders will be
required), this Guarantee may be amended only with the prior approval of the Holders of not less than a Majority in liquidation amount of the Capital Securities. The provisions of the Declaration with
respect to amendments thereof shall apply equally with respect to amendments of the Guarantee. 

        SECTION 8.3.    Notices.    

        All
notices provided for in this Guarantee shall be in writing, duly signed by the party giving such notice, and shall be delivered, telecopied or mailed by first class mail, as follows: 

        (a)   If
given to the Guarantee Trustee, at the Guarantee Trustee's mailing address set forth below (or such other address as the Guarantee Trustee may give notice of to the
Holders of the Capital Securities): 

JPMorgan
Chase Bank

600 Travis Street, 50 Floor

Houston, TX 77002

Attention: Institutional Trust Services—

First Community Bancorp/CA Statutory Trust

Telecopy: 713-216-2101

Telephone: 713-216-4181 

        (b)   If
given to the Guarantor, at the Guarantor's mailing address set forth below (or such other address as the Guarantor may give notice of to the Holders of the Capital
Securities and to the Guarantee Trustee): 

First
Community Bancorp

120 Wilshire Blvd.

Santa Monica, CA 90401

Attention: Victor Santoro

Telecopy: (310) 451-4555

Telephone: (310) 458-1521 

        (c)   If
given to any Holder of the Capital Securities, at the address set forth on the books and records of the Issuer. 

        All
such notices shall be deemed to have been given when received in person, telecopied with receipt confirmed, or mailed by first class mail, postage prepaid, except that if a notice or
other document is refused delivery or cannot be delivered because of a changed address of which no notice 

13

 

was
given, such notice or other document shall be deemed to have been delivered on the date of such refusal or inability to deliver. 

        SECTION 8.4.    Benefit.    

        This
Guarantee is solely for the benefit of the Holders of the Capital Securities and, subject to Section 2.1(a), is not separately transferable from the Capital Securities. 

        SECTION 8.5.    Governing Law.    

        THIS
GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF. 

        SECTION 8.6.    Counterparts.    

        This
Guarantee may contain more than one counterpart of the signature page and this Guarantee may be executed by the affixing of the signature of the Guarantor and the Guarantee Trustee
to any of such counterpart signature pages. All of such counterpart signature pages shall be read as though one, and they shall have the same force and effect as though all of the signers had signed a
single signature page. 

        THIS
GUARANTEE is executed as of the day and year first above written. 

	 	 	First Community Bancorp,

as Guarantor
	

 	
 	

By:	
 	

/s/ Victor R. Santoro

	 	 	Name:	 	Victor R. Santoro

	 	 	Title:	 	Executive Vice President and

	 	 	 	 	Chief Financial Officer

	

 	
 	
JPMORGAN CHASE BANK, as Guarantee Trustee
	

 	
 	

By:	
 	

/s/ Maria D. Calzado

	 	 	Name:	 	Maria D. Calzado

	 	 	Title:	 	Vice President

14

QuickLinks

Exhibit 10.20

TABLE OF CONTENTS

GUARANTEE AGREEMENT

ARTICLE I DEFINITIONS AND INTERPRETATION

ARTICLE II POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

ARTICLE III THE GUARANTEE TRUSTEE

ARTICLE IV GUARANTEE

ARTICLE V LIMITATION OF TRANSACTIONS; SUBORDINATION

ARTICLE VI TERMINATION

ARTICLE VII INDEMNIFICATION

ARTICLE VIII MISCELLANEOUSQuickLinks
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Exhibit 10.21  

 
 

Castle Creek Financial
  P.O. Box 1329, 6051 El Tordo
  Rancho Santa Fe, California 92067    
    

May 14,
2003 

Matthew
P. Wagner

President and Chief Executive Officer

First Community Bancorp

6110 El Tordo

Rancho Santa Fe, CA 92067 

Dear
Matthew: 

        This
letter will confirm that First Community Bancorp ("First Community") has engaged Castle Creek Financial LLC ("Castle Creek") as the exclusive financial advisor to First Community
and any entities it may form, acquire or invest in (collectively, 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.

	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 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 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 or 

 

Chairman
of the Board of the Company or such other persons as the President and Chairman shall specifically designate and that it will not treat information obtained from any other person or source as
having been provided by the Company. Castle Creek and the Company agree to be bound by the terms Confidentiality Agreement, executed by both parties in connection with the execution of this agreement,
and attached hereto as Appendix B. 

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

	(A)
	$9,000
at the beginning of each fiscal quarter (which initial payment shall be made upon the execution hereof),

	(B)
	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,

	(C)
	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

($ in millions)
	 	 
	 	Fees
 

	(1	)	If	 	$0 to $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

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

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

For
purposes of this agreement, "Transaction Value" means the sum of (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 product of (a) the highest consideration paid or payable for a share of such class of capital stock determined
as described in the following paragraph and (b) the sum, determined as of the fifth trading day immediately preceding the closing date, of (1) the total number of shares of such class of
capital stock of the Company or such financial institution plus (2) the number of shares of such class issuable upon exercise of 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;
(iv) the consideration paid or payable for the assets of the Company or the assets of another financial institution, as the case may be and (v) in the case of an acquisition or sale, the
aggregate face value of all liabilities, including accounts payable, accruals and income taxes payable of the Company, or the financial institution, as the case may be. 

The
determination of the "consideration paid or payable for a share of such class 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 

2

 

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 extraordinary compensation paid
directly or indirectly by the purchaser to principals, management or employees of the Company or affiliates of the Company in connection with or in anticipation of the Transaction or by the Company to
principals, management or employees of a financial institution acquired by the Company or in which the Company invests, including but not limited to cash payments, stock or option grants, consulting
arrangements and non-competition arrangements, (v) any payments to the Company or the financial institution and their respective affiliates for non-competition
agreements, (vi) any payments pursuant to earn-outs, royalties or other similar arrangements, (vii) any payments payable after closing upon the occurrence of certain
contingencies 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 (iv) 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 average closing sale (trade) price for such securities during the five trading days immediately preceding 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 takes the form of a purchase of assets and an assumption of liabilities, then the "Transaction Value" of the Company or the financial institution shall be deemed to include the amount
of cash, securities, or other consideration paid to the Company or the financial institution and their respective shareholders, and affiliates, as the case may be, in respect of the assets, plus the
aggregate face amount of all liabilities, including accounts payable, accruals, and income taxes payable of the Company, or the financial institution, assumed by the purchaser and its affiliates or
the Company, as the case may be. 

If
a Transaction involves the acquisition of less than all of the Company's outstanding equity securities, then the fee payable pursuant to Section 3(B) shall nonetheless be calculated as
though all such equity securities had been so acquired by the purchaser. 

	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 addition to professional fees, our billing statements include reimbursable
expenses normally 

3

 

incurred
in the conduct of the work. The reimbursable expenses will include a flat ten percent of Castle Creek's monthly costs for data services, telephone, fax, postage and general office expenses
which will be categorized on our statement as indirect expenses. These indirect expenses shall not include any allocation for employee costs or debt service costs, rent, lease obligations, utilities
or other pre-existing overhead items; provided, however, that Castle Creek may seek reimbursement from the Company for any the identifiable increase in any pre-existing
overhead items (other than employee costs or debt service costs, rent, lease obligations, utilities) incurred as a result of the services provided under this agreement. 

	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 letter agreement, providing that such Transaction is completed within two years following the termination of this letter 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 and to the quarterly retainer fee under Section 3(A) to the extent payable prior to the termination date. 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, 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(D) 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 consummation 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 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 

4

 

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, including the indemnity in Appendix A and the confidentiality agreement in Appendix B, embodies the sole terms of the agreement between the Company and
Castle Creek with respect to the subject matter hereof and supersedes 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
letter 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 and employees. Any advice provided to the Company by Castle Creek pursuant to this agreement is solely for the information and
assistance of the Board of Directors of the Company. Such advice shall be treated as confidential information, shall not be disclosed publicly in any manner without Castle Creek's prior written
approval and shall not be relied upon by the Company's shareholders or any third party. 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 

5

 

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. 

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:	 	May 19, 2003	 	 

6

   APPENDIX A  

        This Appendix A is a part of and is incorporated into that certain letter agreement dated May 14, 2003, between First Community Bancorp (the
"Company") and Castle Creek Financial LLC ("Castle Creek") (the letter agreement and this Appendix A are referred to herein as the "Agreement"). Capitalized terms used herein without definition
shall have the meanings ascribed to them in such letter agreement. 

        The
Company agrees to indemnify and hold harmless Castle Creek, any affiliates and their respective officers, directors, members, representatives and agents and any other persons
controlling Castle Creek or any of its affiliates (Castle Creek and each such other person or entity each being referred to as an "Indemnified Person"), to the fullest extent lawful, from and against
all claims, liabilities, losses, damages, and expenses (including without limitation and as incurred, reimbursement of all costs of investigating, preparing, pursuing, or defending any such claim or
action, including reasonable fees and expenses of counsel to, and the per diem costs and expenses of personnel of, the Indemnified Person, whether or not arising out of pending litigation,
governmental investigation, arbitration or other alternative dispute resolution, or other action or proceeding or threatened litigation, governmental investigation, arbitration or other alternative
dispute resolution, or other action or proceeding) directly or indirectly related to or arising out of, or in connection with (i) actions taken or omitted to be taken by the Company, its
affiliates, employees, directors, partners, representatives or agents in connection with any Transaction or activities contemplated by this Agreement; (ii) actions taken or omitted to be taken
by any Indemnified Person pursuant to the terms of, or in connection with services rendered pursuant to, this Agreement, provided that in the case of this subsection (ii), the Company shall not be
responsible for any claim, liability, loss, damage or expense arising primarily out of or based primarily upon the fraud, misrepresentation, willful misconduct or gross negligence (as determined by
the judgment of a court of competent jurisdiction, no longer subject to appeal or further review) of or by such Indemnified Person; and (iii) any untrue statement or alleged untrue statement of
a material fact contained in any information provided to Castle Creek in writing by the Company under the Agreement in connection with a Transaction or proposed Transaction or any omission or alleged
omission to state a material fact necessary to make the statements therein provided by the Company in writing to Castle Creek in connection with any Transaction or Proposed Transaction not misleading
(other than untrue statements or alleged untrue statements in, or omissions or alleged omissions from, information relating to an Indemnified Person furnished in writing by or on behalf of such
Indemnified Person expressly for use by the Company). If multiple claims are brought against an Indemnified Person in an arbitration with respect to at least one of which indemnification is permitted
under applicable law and provided for under this Agreement, the Company agrees that any arbitration award shall be conclusively deemed to be based on claims as to which indemnification is permitted
and provided for, except to the extent that the arbitration award expressly states that the award, or any portion thereof, is based solely on a claim as to which indemnification is not available. 

        If
the indemnification provided for herein is unavailable to an Indemnified Person in respect of any claims, liabilities, losses, damages or expenses, then the Company, in lieu of
indemnifying such Indemnified Person, shall contribute to the amount paid or payable by such Indemnified Person as a result of such claims, liabilities, losses, damages or expenses (i) in such
proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Indemnified Person on the other, as well as any other relevant equitable considerations.
It is further agreed that the relative benefits to the Company on the one hand and Castle Creek on the other hand with respect to the services rendered under this Agreement shall be deemed to be in
the same proportion as (i) the aggregate Transaction Value bears to (ii) the fees actually paid to Castle Creek with respect to the services provided pursuant to this Agreement in
connection with the Transaction. The Company also agrees that no Indemnified Person shall have any liability to the Company for or in connection with this Agreement and the engagement of Castle Creek
hereunder, except for such claims, liabilities, 

A-1

 

losses,
damages, or expenses incurred by the Company to the extent they are appropriately judicially determined (without possibility of appeal or review) to have resulted from such Indemnified
Person's fraud, misrepresentation (other than a representation of information provided by the Company to Castle Creek in writing under the terms hereof), willful misconduct or gross negligence, and
the Company agrees that in no event shall the Indemnified Persons be required to contribute an amount in the aggregate greater than the fees actually received by Castle Creek for its services
performed under this Agreement. 

        If
any action or other proceeding or investigation is commenced as to which an Indemnified Person demands indemnification, the Indemnified Person shall have the right to retain counsel
of its own choice to represent it, the Company shall pay the reasonable fees and expenses of such counsel, and such counsel shall to the extent consistent with its professional responsibilities
cooperate with the Company and any counsel designated by the Company, provided, that in no event shall the Company be required to pay fees and expenses under this indemnity for more than one firm of
attorneys for the Indemnified Person in any jurisdiction in any one legal action or group or related legal actions. The Company shall be liable as provided herein for any settlement of any claim
against Castle Creek or any Indemnified Person made with the Company's written consent, which consent shall not be unreasonably withheld. The Company agrees that it will not, without the prior written
consent of Castle Creek, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding relating to the matters contemplated by Castle Creek's
engagement (whether or not any Indemnified Person is a party thereto) unless such settlement, compromise or consent includes an unconditional release of Castle Creek and each other Indemnified Person
from all liability arising or that may arise out of such claim, action, or proceeding. 

        The
indemnity and contribution obligations of the Company set forth herein shall be in addition to any liability or obligation the Company may otherwise have to any Indemnified Person.
The Company and the Indemnified Persons hereby consent to personal jurisdiction, service and venue in any of the State or Federal Courts in the Central District or Southern Districts of California. 

        It
is understood that, in addition to Castle Creek's engagement pursuant to this Agreement, Castle Creek may also be engaged to act for the Company in one or more additional capacities,
and that the terms of such additional engagements may be embodied in one or more separate written agreements. The provisions of this Appendix A shall apply to any such separate agreements, any
modification to this Agreement, and any modifications of such separate agreements, and the provisions of this Appendix A shall remain in full force and effect following the completion,
expiration or termination of this Agreement or such additional agreements or modifications of any of the foregoing. 

A-2

   Appendix B  

CONFIDENTIALITY AGREEMENT  

 May 14, 2003  

        First Community Bancorp and/or its affiliates (collectively the "Company") and Castle Creek Financial LLC ("Castle Creek") have entered into an agreement, dated
of even date herewith (the "Engagement Letter") whereby the Company has engaged Castle Creek to be its exclusive financial advisor in connection with a variety of Transactions (as defined in the
Engagement Letter) and other services to be provided by Castle Creek, as set forth in the Engagement Letter ("Services"). In connection therewith and the undertakings of each of the Company and Castle
Creek pursuant to the Engagement Letter, each party is interested in protecting the confidentiality of certain information revealed to the other in furtherance of the Engagement Letter. Therefore, the
Company and Castle Creek hereby agree to permit certain directors, officers, employees, and advisers of the other party to review and discuss such information, subject to the following terms and
conditions: 

	1.
	Definition of Confidential Information. The term "Confidential Information" as used in this Confidentiality Agreement shall mean all
information, trade secrets and documents concerning the Company, Castle Creek or any Transaction or Services, which is furnished or otherwise disclosed by either party or its representatives to the
receiving party (together with all analyses, compilations, notes, studies, or other documents, whether prepared by the receiving party or others, which contain or otherwise are derived from such
information) either before or after the date of this Confidentiality Agreement, and regardless of the manner in which it is furnished and whether or not it is labeled "confidential". Confidential
Information shall also include any "nonpublic personal information," provided by the Company to Castle Creek as that term is defined under Title V of the Gramm-Leach-Bliley Act of 1999, as it may be
amended from time to time, the regulations promulgated thereunder or other applicable law (collectively, "Privacy Laws").

	2.
	Use of Confidential Information. The Confidential Information shall be used solely for the purpose of the Company's and Castle Creek's
analysis of the Transaction or in furtherance of the Services. All Confidential Information will be kept confidential by the receiving party; provided, however, the receiving party may disclose the
Confidential Information or portions of the Confidential Information to such of its directors, officers, employees, and advisers who need to know such information for the purposes of discussion and
analysis of the Transaction or Services, each of whom shall be advised of the terms of this Confidentiality Agreement and who shall be bound by this Confidentiality Agreement upon their receipt of the
Confidential Information. The parties agree that any advice rendered by Castle Creek pursuant to the Engagement Letter shall not be disclosed in any manner without Castle Creek's prior written
approval and will be treated by the Company and Castle Creek as confidential.

	3.
	Legally Required Disclosures. If either the Company or Castle Creek is requested or required by applicable law or regulation (including
any requirement of law arising by means of deposition, interrogatory, request for documents or information, subpoena, civil investigative demand or similar process, or by a regulatory body or agency
or other legal entity with applicable jurisdiction) to disclose any of the Confidential Information, the disclosing party shall, unless prohibited by law or regulation, provide the resisting party
with prompt prior written notice of such request or requirement and shall cooperate with the resisting party, at the resisting party's expense, so that the resisting party may seek a protective order
or other appropriate remedy to avoid disclosure and, if requested by the resisting party, shall cooperate in lawfully resisting such disclosure. If such protective order or other remedy is not
obtained, or if the resisting party waives compliance with the provisions of this paragraph, the disclosing party may disclose only that portion of the Confidential Information which, as advised by
its counsel, is legally required to be disclosed, and 

B-1

 

shall
exercise reasonable efforts to obtain assurance that confidential treatment will be accorded such Confidential Information. 

	4.
	Nondisclosure of and Treatment of Confidential Information. Neither the Company nor Castle Creek shall disclose to any person not
otherwise permitted under this Confidentiality Agreement any of the Confidential Information or any other terms, conditions or other facts with respect to any Transaction or Services, including the
status of any such Transaction or Services. Each party shall at all times protect the Confidential Information from inadvertent disclosure and keep such information confidential. If any applicable
Privacy Law or other applicable law now or hereafter imposes a higher standard of confidentiality to Confidential Information than the standard set forth in this Confidentiality Agreement, such
standard shall prevail over this Confidentiality Agreement with respect to such Confidential Information. Notwithstanding the foregoing or anything in this Confidentiality Agreement or the Engagement
Letter to the contrary, no disclosure by the Company of the existence or status of i) any proposed or actual Transaction, ii) the Services or iii) this Confidentiality Agreement
or the Engagement Letter shall be deemed to be in violation of this Confidentiality Agreement or the Engagement Letter.

	5.
	Exceptions. The term "Confidential Information" shall not include any information which:

	(i)
	at
or after the time of disclosure is generally available to the public (other than as a result of a disclosure by the Company or Castle Creek in breach of this
Confidentiality Agreement);

	(ii)
	was
available to the Company or Castle Creek on a non-confidential basis from a source other than directors, officers, employees, or advisers of the
disclosing party who, insofar as is known to the receiving party, was not prohibited from transmitting the information to the receiving party by a contractual, legal or fiduciary obligation to the
disclosing party; or

	(iii)
	has
been independently developed by the Company or Castle Creek without violation of any obligation under this Confidentiality Agreement.

	6.
	No Representation or Warranty. Although the Company and Castle Creek have each endeavored to include in the Confidential Information
that information known to them which they believe to be relevant for the other party's purposes, both the Company and Castle Creek understand and agree that neither the other party nor any of the
other party's representatives have made or are making any representation or warranty, express or implied, as to the accuracy or completeness of the Confidential Information, except with respect to
information provided to the other in writing. the Company and Castle Creek each agree that neither the other party nor any of the other party's representatives will have any liability to the receiving
party or to any other person resulting from the delivery or use of the Confidential Information, except to the extent such Confidential Information is delivered in writing, is materially inaccurate or
misleading and the delivering party knows that the receiving party intends to make use of the information in furtherance of any Transaction or Services.

	7.
	Return or Destruction of Materials. Should either the Company or Castle Creek not proceed with the Transaction, the Company and Castle
Creek both agree, that upon written request, each will turn over to the other party, or upon request destroy, all copies of the Confidential Information provided to it by the other. If so requested in
writing by the other party, the Company and Castle Creek will each certify to the other that such party has in fact returned or destroyed such documents required hereunder to be so treated. This
provision shall only apply with respect to information provided to the other pursuant to the terms of the Engagement Letter and the services provided pursuant thereto and not information provided to
any member or employee of the other acting in any other capacity (e.g., as a director of the Company).

	8.
	No Waiver. It is further understood and agreed that no failure or delay in exercising any right, power or privilege under this
Confidentiality Agreement shall operate as a waiver of any right, 

B-2

 

power
or privilege, nor shall any single or partial exercise of any right, power or privilege preclude any other or further exercise of any right, power or privilege or the exercise of any other
right, power or privilege under this Confidentiality Agreement. 

	9.
	Enforceability. To the extent any provision of this Confidentiality Agreement shall be determined to be void, illegal or otherwise
unenforceable, the same shall have no effect on the enforceability of the balance of this Confidentiality Agreement.

	10.
	Entire Agreement; Amendments. This Confidentiality Agreement, along with the Engagement Letter, contains the entire understanding
between the Company and Castle Creek with respect to the subject matter of this Confidentiality Agreement and the Engagement Letter, and neither may 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.

	11.
	Remedies. The Company and Castle Creek each recognize that irreparable injury may result to the non-breaching party in the
event that this Confidentiality Agreement is breached by the breaching party or by any director, officer, employee, or adviser of the breaching party, or by any person given access to the Confidential
Information in violation of the terms and conditions of this Confidentiality Agreement. Accordingly, in addition to any and all other remedies at law or in equity to which the
non-breaching party may be entitled, the non-breaching party shall also have the right to obtain equitable relief, including without limitation injunctive relief, to prevent
any disclosure of any Confidential Information, or to prevent any other breach of this Confidentiality Agreement, plus reasonable attorney's fees and other litigation costs and expenses incurred in
connection with successfully obtaining any such remedies and/or relief.

	12.
	Assignment; Benefit; Duration. Neither the Company nor Castle Creek may assign, transfer, license, or sublicense its rights under this
Confidentiality 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 Confidentiality Agreement will inure to the benefit of and be binding upon both the Company and Castle Creek and their respective successors and assigns, and shall remain in effect
until one year after the last to terminate of the Engagement Letter or such other agreements as specified in Section 14 below.

	13.
	Governing Law; Disputes. This Confidentiality Agreement will be governed by and construed in accordance with the laws of the State of
California, without regard to the conflicts of law principles thereof. The Company and Castle Creek each voluntarily and knowingly waives any right it may have to a trial by jury in any such
adjudication. The prevailing party in any such adjudication will have its reasonable attorney's fees and other litigation costs and expenses paid by the non-prevailing party.

	14.
	Other Agreements. It is understood that, in addition to Castle Creek's engagement pursuant to this Engagement Letter, Castle Creek may
also be engaged to act for the Company in one or more additional capacities, and that the terms of such additional engagements may be embodied in one or more separate written agreements. The
provisions of this Confidentiality Agreement shall apply to any such separate agreements (whether or not specifically referenced therein), any modification to the Engagement Letter, and any
modifications of such separate agreements, and the provisions of this Confidentiality Agreement shall remain in full force and effect following the completion, expiration or termination of this
Agreement or such additional agreements or modifications of any of the foregoing for a period of one year after the last of such agreements to expire. 

B-3

 

        IN
WITNESS WHEREOF, the undersigned being the duly authorized representatives of the respective party, intending such party to be bound hereby, executes this Confidentiality Agreement as
of the date first set forth above. 

	Castle Creek Financial, LLC	 	First Community Bancorp
	

By:	
 	

/s/ William J. Ruh	
 	

By:	
 	

/s/ Matthew P. Wagner
	Name:	 	William J. Ruh	 	Name:	 	Matthew P. Wagner
	Title:	 	Executive Vice President	 	Title:	 	President and CEO

B-4

QuickLinks

Castle Creek Financial P.O. Box 1329, 6051 El Tordo Rancho Santa Fe, California 92067

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