Document:

Employment Agreement between Beverly Hills Bancorp Inc. and Larry B. Faigin

 EXHIBIT 10.1 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement is made and entered into as of March 7, 2006 by
and between Beverly Hills Bancorp, Inc., a Delaware corporation (the “Company”), and Larry B. Faigin (“Executive”). 
 1.
Engagement and Responsibilities 
 1.1 Upon the terms and subject to the conditions set forth in this Agreement, the Company hereby
engages and employs Executive as an officer of the Company, with the title “Chief Executive Officer.” Executive hereby accepts such engagement and employment. 
 1.2 Executive’s duties and responsibilities shall be those incident to the positions set forth in Section 1.1 as set forth in the Bylaws of the Company and those which are normally and customarily vested in
such offices of a corporation. In addition, Executive’s duties shall include those duties and services for the Company and its affiliates as the Board shall in its discretion, from time to time reasonably direct which are not inconsistent with
Executive’s positions described in Section 1.1. 
 1.3 Executive agrees to devote all of Executive’s business time, energy and
efforts to the business of the Company and will use Executive’s best efforts and abilities faithfully and diligently to promote the Company’s business interests. For so long as Executive is employed by the Company, or for so long as
Executive is receiving severance under Section 5.2 of this Agreement, Executive shall not, directly or indirectly, either as an employee, employer, consultant, agent, investor, principal, partner, stockholder (except as the holder of less than
1% of the issued and outstanding stock of a publicly held corporation), corporate officer or director, or in any other individual or representative capacity, engage or participate in any business that is in competition in any manner whatsoever with
the business of the Company Group, as such businesses are now or hereafter conducted. Subject to the foregoing prohibition and provided such services or investments do not violate any applicable law, regulation or order, or interfere in any way with
the faithful and diligent performance by Executive of the services to the Company otherwise required or contemplated by this Agreement, the Company expressly acknowledges that Executive may: 
 1.3.1 make and manage personal business investments of Executive’s choice without consulting the Board; and 
 1.3.2 serve in any capacity with any non-profit civic, educational or charitable organization without consulting with the Board.

 1.4 Covenants of Executive 
 1.4.1 Best Efforts; Exclusive Duty. Executive shall use his best efforts and skills in the business and interests of the Company, do his utmost to enhance and develop the 

 
interests and welfare of the Company, and devote substantially all of his professional time and attention to the Company’s business. 
 1.4.2 Rules and Regulations. Executive shall obey all rules, regulations and special instructions of the Company and all other
rules, regulations, guides, handbooks, procedures, policies and special instructions applicable to the Company’s business in connection with his duties hereunder and shall endeavor to improve his ability and knowledge of the Company’s
business in an effort to increase the value of his services for the mutual benefit of the Company and Executive. 
 1.4.3
Compliance. Executive shall use his best efforts and skills to cause the Company to comply with all of its contractual obligations and commitments and applicable laws, rules and regulations. 
 2. Definitions 
 2.1 “Bank” shall
mean First Bank of Beverly Hills, a California state chartered bank that, as of the date of this Agreement, is a wholly owned subsidiary of the Company. 
 2.2 “Board” shall mean the Board of Directors of the Company. 
 2.3 “Change of
Control” with respect to the Company shall be deemed to have if occurred upon the occurrence of any one or more of the following: 
 2.3.1 any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), is or becomes the “beneficial owner” (as defined in Rule 3d-3 under said
Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding voting securities; or 
 2.3.2 the Company merges or consolidates with any other corporation other than a merger or consolidation that results in the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or the parent corporation of the surviving entity) more
than 50% of the total voting power represented by the voting securities of the Company, the surviving entity or the parent of the surviving entity, as applicable, outstanding immediately after such merger or consolidation; or 
 2.3.3 the complete liquidation of the Company; or 
 2.3.4 the occurrence of a transaction pursuant to which the Company no longer owns 50% or more of the outstanding voting securities of the
Bank. 
 2.4 “Company Group” as of any date shall mean the Company and each Person that the Company directly or indirectly
Controls as of such date. 
 2.5 “Control” shall mean, with respect to any Person, (i) the beneficial ownership of more
than 50% of the outstanding voting securities of such Person, or (ii) the power, directly or 

  

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indirectly, by proxy, voting trust or otherwise, to elect a majority of the outstanding directors, trustees or other managing persons of such Person.

 2.6 “For Cause” shall mean, in the context of a basis for termination of Executive’s employment with the Company,
that: 
 2.6.1 Executive breaches any obligation, duty or agreement under this Agreement, which breach is not cured or
corrected within 15 days of written notice thereof from the Company (except for breaches of Sections 1.3, 6 and 7 of this Agreement, which cannot be cured and for which the Company need not give any opportunity to cure); or 
 2.6.2 Executive commits any act of personal dishonesty, fraud, breach of fiduciary duty or trust; or 
 2.6.3 Executive is convicted of, or pleads guilty or nolo contendere with respect to, theft, fraud, a crime involving moral turpitude, or
a felony under federal or applicable state law; or 
 2.6.4 Executive commits any act of personal conduct that, in the
reasonable opinion of the Board, gives rise to a material risk of liability under federal or applicable state law for discrimination or sexual or other forms of harassment or other similar liabilities to subordinate employees; or 
 2.6.5 Executive commits continued and repeated substantive violations of specific written directions of the Board, which directions are
consistent with this Agreement and Executive’s position as the Chief Executive Officer or continued and repeated substantive failure to perform duties assigned by or pursuant to this Agreement; provided that no discharge shall be deemed for
Cause under this subsection 2.6.5 unless Executive first receives written notice from the Company advising him of the specific acts or omissions alleged to constitute violations of written directions or a material failure to perform his duties,
and such violations or material failure continue after he shall have had a reasonable opportunity to correct the acts or omissions so complained of; or 
 2.6.6 Executive commits any act, or fails to commit any act, that, in the reasonable opinion of the Board, gives rise to a material risk of material liability under federal or state banking or lending laws (the type
of liability that could result in a cease and desist order, civil monetary penalty, consent decree, memorandum of agreement or similar regulatory action); provided that the Board may not terminate Executive for Cause under this
Section 2.6.6 unless the Board: (a) gives Executive notice of its intent to terminate Executive under this Section and provides Executive an opportunity to appear before the Board to explain his conduct, and (b) if such action (or
failure to act) is capable of being cured or corrected by Executive (and was not a fraudulent act by Executive) in a manner that could mitigate material risk of liability, the Board gives Executive the opportunity to cure or correct such action or
failure to act for 60 days, and Executive promptly commences to cure and correct such conduct; or 
 2.6.7 Executive willfully
commits or willfully causes any member of the Company Group to commit any material violation of law, rule or regulation affecting the 

  

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Company Group or regulatory order or consent to which any member of the Company Group is subject. 
 2.7 “Good Reason” shall mean the occurrence of one or more of the following: (a) without the consent of Executive, the Board
assigns any duties to Executive substantially inconsistent with, or reflecting an adverse change in, Executive’s position, duties, responsibilities or status as the chief executive officer of the Company, provided that Executive must
advise the Board within five days of assignment of such duties that he believes such duties would give him the right to terminate his employment for Good Reason and the Board does not withdraw such assignment; or (b) without the consent of
Executive, the Company relocates Executive’s principal place of employment to a location that is not in either Los Angeles County or Ventura County, California; or (c) the Company employs a person as an officer of the Company senior to
Executive; or (d) a Change of Control occurs; or (e) the Board fails to nominate Executive for re-election as a director of the Company unless: (i) Executive advises the Board he does not want to serve as director; or (ii) a
regulator of the Company or the Bank has requested or demanded that Executive not serve as a director of the Company or Bank. 
 2.8
“Person” shall mean an individual or a partnership, corporation, trust, association, limited liability company, governmental authority or other entity. 
 3. Compensation and Benefits 
 3.1 Base Salary. The Company shall pay to Executive a base
salary while Executive is employed by the Company. The base salary shall be at an annual rate of $275,000 for 2006, $285,000 for 2007, $295,000 for 2008 and the amount agreed to between the Board and Executive for 2009 and thereafter, but if no such
agreement is reached in any year thereafter, the base salary shall be the same as the prior year. The Company shall pay base salary to Executive in installments in the same manner and at the same times the Company Group pays base salaries to other
executive officers of the Company Group, but in no event less frequently than equal monthly installments. 
 3.2 Incentive
Compensation. The Company and Executive shall in good faith attempt to agree upon incentive compensation plan for Executive for each calendar year during the term of Executive’s employment. In addition, the Board may, in its sole
discretion, award performance bonuses to Executive from time to time. 
 3.3 Expense Reimbursement. Executive shall be entitled to
reimbursement from the Company for the reasonable costs and expenses that Executive incurs in connection with the performance of Executive’s duties and obligations under this Agreement in a manner consistent with the Company’s practices
and policies therefor. 
 3.4 Executive Benefit Plans. Executive shall be entitled to participate in any pension, savings and group
term life, medical, dental, disability and other group benefit plans which the Company Group makes available to its employees generally. At such time as Executive is eligible for Medicare, the Company Group shall be permitted to exclude Executive
from its medical insurance plans provided that it reimburses Executive for Medicare coverages A and B. 
  

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 3.5 Vacation. Executive shall be entitled to paid vacation that accrues at the rate of 2.5 days
per calendar month, provided that no vacation shall accrue at any time when Executive has 15 days of accrued and unused vacation. 
 3.6
Disability. In the event of any disability or illness of Executive, if Executive shall receive payments as a result of such disability or illness under any disability plan maintained by the Company, the Company shall be entitled to deduct the
amount of such payments received from base salary payable to Executive during the period of such illness and/or disability. 
 3.7
Withholding. The Company may deduct from any compensation payable to Executive (including payments made pursuant to Sections 3 and 5 of this Agreement in connection with or following termination of employment) amounts sufficient to cover
Executive’s share of applicable federal, state and/or local income tax withholding, old-age and survivors’ and other social security payments, state disability and other insurance premiums and payments. 
 4. Termination of Employment 
 Executive’s
employment pursuant to this Agreement commenced as of January 1, 2006 and shall terminate on the earliest to occur of the following: 
 4.1 upon the death of Executive; 
 4.2 upon the delivery to Executive of written notice of termination by the Company if Executive
shall suffer a physical or mental disability which renders Executive, in the reasonable judgment of the Board, unable to perform his duties and obligations under this Agreement for either 90 consecutive days or 180 days in any 12-month period;

 4.3 upon 60 days’ written notice from Executive; 
 4.4 upon written notice from Executive to the Company for Good Reason provided that such notice is received within 90 days of the event or circumstance constituting Good Reason; 
 4.5 upon delivery to Executive of written notice of termination by the Company (i) For Cause, or (ii) without cause following receipt of
written notice of termination from Executive pursuant to Section 4.3 of this Agreement; or 
 4.6 upon delivery to Executive of written
notice of termination by the Company without cause. 
 5. Effect of Termination upon Compensation and Benefits 
 5.1 Upon termination of Executive’s employment for any reason: (i) Executive shall be entitled to base salary accrued through the date of
termination of employment; (ii) Executive shall be entitled to reimbursement of expenses incurred prior to termination of employment that are payable in accordance with Section 3.4 of this Agreement; (iii) Executive shall be entitled
to any benefits accrued or earned in accordance with the terms of any applicable benefit plans and 

  

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programs of the Company; and (iv) Executive shall be entitled to incentive compensation if and only if expressly provided for in the incentive
compensation plan for Executive. 
 5.2 If Executive’s employment is terminated by the Company pursuant to Section 4.6 (without
cause) or by the Executive pursuant to Section 4.3 (for Good Reason), and provided that Executive executes and delivers to the Company, and does not revoke, a written release (the “Release”) of any and all claims against the
Company Group with respect to all matters arising out of Executive’s employment by the Company, or the termination thereof (other than claims for any entitlements under the terms of this Agreement, claims under any plans or programs of the
Company under which Executive has accrued a benefit, and rights to indemnification under applicable law or agreement), the Company agrees to until the later to occur of two years from the date of termination of employment and December 31, 2008:

 5.2.1 continue to pay to Executive base salary when and in the manner as if Executive’s employment had not terminated;
and 
 5.2.2 continue to pay premiums (subject to co-payments and reimbursements) for Executive to participate in the
Company’s medical, dental, vision and life insurance plans at the Company’s expense to the extent permitted under the plans provided, however, that the Company need provide this medical, dental and vision insurance coverage
if Executive is not covered by another medical, dental and/or visions plan, provided further however, that if such other group health plan excludes any pre-existing condition that Executive or Executive’s dependents may
have when coverage under such group health plan would otherwise begin, coverage under this Section 5.2.2 shall continue (but not beyond the one-year period) with respect to such pre-existing condition until such exclusion under such other group
health plan lapses or expires. If Executive is required to make an election under Sections 601 through 607 of the Executive Retirement Income Security Act of 1974 (commonly known as COBRA) to qualify for the benefits described in this
Section 5.2.2, the obligations of the Company under this Section 5.2.2 shall be conditioned upon Executive’s timely making such an election; and provided further however, that if at the date of termination of employment Executive is
65 or older, the Company’s obligation with respect to medical plans shall be limited to reimbursement for Medicare coverages as provided in Section 3.5 of this Agreement. 
 The Company shall be entitled to defer payment of any amounts under this Section 5.2 until the expiration of any period during which Executive shall
have the right to revoke the Release. 
 5.3 In the event of termination of Executive’s employment pursuant to Section 4.5
(termination by the Company For Cause), and subject to applicable law and regulations, the Company shall be entitled offset against any payments due Executive the loss and damage, if any, which shall have been suffered by the Company as a result of
the acts or omissions of Executive giving rise to termination under Section 4.5. The foregoing shall not be construed to limit any cause of action, claim or other rights that the Company may have against Executive in connection with such acts
or omissions. 
 5.4 Executive acknowledges that the Company has the right to terminate Executive’s employment without cause and that
such termination shall not be a breach of this Agreement or 

  

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any other express or implied agreement between the Company and Executive. Accordingly, in the event of such termination, Executive shall be entitled only to
those benefits specifically provided for in this Agreement in the event of such termination, and shall not have any other rights to any compensation or damages from the Company for breach of contract or tortuous injury. 
 5.5 Executive acknowledges that in the event of termination of his employment for any reason, Executive shall not be entitled to any severance or other
compensation from the Company except as specifically provided in this Section 5. Without limitation on the generality of the foregoing, this Section supersedes any plan or policy of the Company that provides for severance to its officers or
employees, and Executive shall not be entitled to any benefits under any such plan or policy. 
 5.6 Executive shall have no obligation to
offset any payments he receives from the Company following the termination of his employment by any payments he receives from his subsequent employer, except that any payments Executive receives under the employee benefit plans or programs of a
subsequent employer shall offset any payments he receives from comparable employment benefit plan or program of the Company. 
 6. Covenant Not To
Solicit 
 Executive agrees that from the date of this Agreement to the second anniversary of termination of Executive’s employment,
Executive will not directly or indirectly, either alone or by action in concert with others: 
 6.1 induce or attempt to influence any
employee of any member of the Company Group to engage in any activity in which Executive is prohibited from engaging by Section 1.3 of this Agreement or to terminate his or her employment with any member of the Company Group; or 
 6.2 employ or offer employment to any person who was employed by any member of the Company Group at the time of termination of Executive’s
employment with the Company. 
 7. Confidentiality 
 Executive agrees not to disclose or use at any time (whether during or after Executive’s employment with the Company) for Executive’s own benefit or purposes or the benefit or purposes of any other Person
any non-public information regarding the Company Group and its business, operations, assets, financial condition and properties, including without limitation, trade secrets, business plans, policies, pricing information and customer date provided
that the foregoing covenant shall not restrict Executive from disclosing information to the extent required by law. Executive agrees that upon termination of his employment with the Company for any reason, he will return to the Company immediately
all memoranda, books, papers, plans, information, letters and other data, and all copies thereof or therefrom, in any way relating to the business of the Company Group except that he may retain personal notes, notebooks, diaries, rolodexes and
addresses and phone numbers. Executive further agrees that he will not retain or use for his account at any time any trade names, trademark or other proprietary business 

  

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designation used or owned in connection with the business of any member of the Company Group. 
 8. Non-Compliance. Subject to the following sentence, but notwithstanding any other provision of this Agreement to the contrary, if Executive is employed by the Company, any breach of the provisions of
Sections 1.3, 6 or 7 hereof shall entitle the Company to terminate the employment of Executive for Cause, and, whether or not Executive is employed by the Company, from and after any breach by Executive of the provisions of Sections 1.3, 6
or 7, the Company shall cease to have any obligations to make payments to Executive under this Agreement, including Section 5.3.3. 
 9. Specific
Performance. Executive acknowledges and agrees that the Company’s remedies at law for a breach or threatened breach of any of the provisions of Sections 1.3, 6 or 7 hereof would be inadequate and, in recognition of this fact, Executive
agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond, shall be entitled to obtain equitable relief in the form of specific performance, temporary restraining
order, temporary or permanent injunction or any other equitable remedy which may then be available. 
 10. Arbitration 
 10.1 IN CONSIDERATION FOR AND AS A MATERIAL CONDITION OF EMPLOYMENT WITH THE COMPANY, EXECUTIVE AGREES THAT FINAL AND BINDING ARBITRATION UNDER THE THEN
APPLICABLE RULES AND PROCEDURES OF JAMS/ENDISPUTE WHICH SHALL BE THE EXCLUSIVE MEANS FOR RESOLVING ANY DISPUTE WHICH ARISES UNDER OR RELATING TO THIS AGREEMENT (EXCEPT THOSE LISTED IN 10.4 BELOW. NO OTHER ACTION MAY BE BROUGHT IN COURT OR IN ANY
OTHER FORUM. THIS AGREEMENT IS A WAIVER OF ALL RIGHTS TO A CIVIL COURT ACTION FOR A COVERED CLAIM. ONLY AN ARBITRATOR, NOT A JUDGE OR JURY, WILL DECIDE THE CLAIM. 
 10.2 Executive or the Company shall begin the arbitration process by delivering a written request for arbitration to the other party within the time limits that would apply to the filing of a civil court action.
Failure to deliver a timely written request for arbitration shall preclude the aggrieved party from instituting any legal, arbitration or other proceeding and shall constitute a complete waiver of all such claims. Statutory claims can be raised
within the limitations period provided by the applicable statute. 
 10.3 Claims covered by this provision include, but are not limited to,
the following: (i) alleged violations of federal, state and/or local constitutions, statutes, regulations or ordinances, including, but not limited to, laws dealing with unlawful discrimination and harassment; (ii) claims based on any
purported breach of contractual obligation, including but not limited to breach of the covenant of good faith and fair dealing, wrongful termination or constructive discharge; (iii) violations of public policy; (iv) claims relating to a
transfer, reassignment, denial of promotion, demotion, reduction in pay, or any other term or condition of employment; (v) claims based on contract or tort; and (vi) any and all other claims arising out of Executive’s employment with
or termination by the Company. This includes, but is not limited to, claims 

  

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brought under Title VII of the Civil Rights act of 1964; California Government Code Section 12960, et seq.; and any other federal, state or local
anti-discrimination laws relating to discrimination, including, but not limited to, those based on the following protected categories: genetic information or characteristics; sex and gender; race; religion; national origin; mental or physical
disability (including claims under the American With Disabilities Act); medical condition; veteran or military status; marital status; sexual orientation or preference; age; pregnancy; and retaliation or wrongful termination in violation of public
policy for alleging or filing or participating in any grievance or otherwise complaining of any wrong relating to the aforementioned categories or any public policy. 
 10.4 The following claims are expressly excluded and not covered by this Agreement for final and binding arbitration: (i) claims related to Workers’ Compensation and Unemployment Insurance;
(ii) administrative filings with governmental agencies such as the California Department of Fair Employment & Housing, the Equal Employment Opportunity Commission, the U.S. Department of Labor or the National Labor Relations Board;
(iii) claims that are expressly excluded by statute or are expressly required to be arbitrated under a different procedure pursuant to the terms of an employee benefit plan; and (iv) claims within the jurisdictional limits of small claims
court. This Agreement does not preclude either party from seeking appropriate interim injunctive relief pursuant to the California Code of Civil Procedure or applicable federal law before arbitration or while arbitration proceedings are pending.

 10.5 Any claim arising between Executive and the Company covered by the arbitration provisions of this Agreement shall be submitted to
final and binding arbitration under the rules and procedures of JAMS/Endispute, or any successor entity thereto, in effect upon the date the claim is submitted in writing to the Company, to which rules and procedures the parties hereby expressly
agree. The rules allow for discovery by each party as ordered by the arbitrator. The arbitrator must allow discovery adequate to arbitrate all claims, including access to essential documents and witnesses. In making his or her award, the arbitrator
shall have the authority to make any finding and provide any remedy. 
 10.6 The arbitrator must issue a written award. The arbitrator shall,
in the award or separately, make specific findings of fact, and set forth such facts in support of his or her decision, as well as the reasons and basis for his or her opinion. Should the arbitrator exceed the jurisdiction or authority here
conferred, any party aggrieved thereby may file a petition to vacate, amend or correct the arbitrator’s award in a court of competent jurisdiction, pursuant to applicable law. 
 10.7 The party initiating the mediation shall pay the arbitrator’s fees and the administrative costs of the arbitration and each party shall pay for
its own attorney’s fees and will not request any fees or costs from the other party. The arbitrator shall at his or her discretion award attorneys’ fees and costs to the prevailing party. 
 11. Miscellaneous 
 11.1 Notices. All notices,
requests, demands and other communications (collectively, “Notices”) given pursuant to this Agreement shall be in writing, and shall be delivered by personal service, courier, facsimile transmission or by United States first class,
registered or 

  

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certified mail, addressed to as follows: (a) if to the Company, to, to the Company’s executive offices to the attention of the Board of Directors;
and (b) if to Executive, to Executive’s address as set forth on the books and records of the Company. Any Notice, other than a Notice sent by registered or certified mail, shall be effective when received; a Notice sent by registered or
certified mail, postage prepaid return receipt requested, shall be effective on the earlier of when received or the third day following deposit in the United States mails (or on the seventh day if sent to or from an address outside the United
States). Any party may from time to time change its address for further Notices hereunder by giving notice to the other party in the manner prescribed in this Section. 
 11.2 Entire Agreement. This Agreement contains the sole and entire agreement and understanding of the parties with respect to the entire subject matter of this Agreement, and any and all prior discussions,
negotiations, commitments and understandings, whether oral or otherwise, between the Company and Executive, related to the subject matter of this Agreement are hereby merged herein. No representations, oral or otherwise, express or implied, other
than those contained in this Agreement have been relied upon by any party to this Agreement. 
 11.3 Severability. In the event that
any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect to
the fullest extent permitted by law. 
 11.4 Governing Law. This Agreement has been made and entered into in the State of California
and shall be construed in accordance with the laws of the State of California. 
 11.5 Captions. The various captions of this
Agreement are for reference only and shall not be considered or referred to in resolving questions of interpretation of this Agreement. 
 11.6 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. 
 11.7 Business Day. If the last day permissible for delivery of any notice under any provision of this Agreement, or for the performance of any
obligation under this Agreement, shall be other than a business day, such last day for such notice or performance shall be extended to the next following business day (provided, however, under no circumstances shall this provision be construed to
extend the date of termination of this Agreement). 
 11.8 Attorneys’ Fees. If any action or proceeding is brought to enforce or
interpret any provision of this Agreement, the prevailing party shall be entitled to recover as an element of its costs, and not its damages, its reasonable attorneys’ fees, costs and expenses. The prevailing party is the party who is entitled
to recover its costs in the action or proceeding. A party not entitled to recover its costs may not recover attorneys’ fees. No sum for attorneys’ fees shall be counted in calculating the amount of a judgment for purposes of determining
whether a party is entitled to recover its costs or attorneys’ fees. 
 11.9 Advice from Independent Counsel. The parties hereto
understand that this Agreement is legally binding and may affect such party’s rights. Each party represents to the 

  

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other that it has received legal advice from counsel of its choice regarding the meaning and legal significance of this Agreement to which it is a party and
that it is satisfied with its legal counsel and the advice received from it. 
 11.10 Judicial Interpretation. Should any provision of
this Agreement require judicial interpretation, it is agreed that a court interpreting or construing the same shall not apply a presumption that the terms hereof shall be more strictly construed against any Person by reason of the rule of
construction that a document is to be construed more strictly against the Person who itself or through its agent prepared the same, it being agreed that all parties have participated in the preparation of this Agreement. 
 11.11 Waiver of Jury Trial. IF NOTWITHSTANDING THE AGREEMENT THAT ALL DISPUTES BE SUBMITTED TO BINDING ARBITRATION, A DISPUTE IS SUBMITTED TO A
COURT, EACH PARTY HERETO WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY DISPUTE IN CONNECTION WITH OR RELATING TO THIS AGREEMENT, ANY RELATED AGREEMENT OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN, AND AGREE TO TAKE ANY AND ALL ACTION
NECESSARY OR APPROPRIATE TO EFFECT SUCH WAIVER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS WRITTEN CONSENT TO A TRIAL BY THE COURT. 
 IN WITNESS WHEREOF, this Agreement has been made and entered into as of the date and year first above written. 
  

			
	 BEVERLY HILLS BANCORP, INC.

		
	By	 	  
		
	Title	 	  
	
	 EXECUTIVE

	
	  
	 Larry B. Faigin

  

 - 11 -Incentive Stock Option Agreement between Beverly Hills Bancorp Inc. and Larry B.

 EXHIBIT 10.2 
 BEVERLY HILLS BANCORP 
 INCENTIVE STOCK OPTION AGREEMENT 
 2002 PLAN 
 THIS INCENTIVE STOCK OPTION
AGREEMENT (the “Agreement”) is made and entered into as of January 3, 2006, by and between Beverly Hills Bancorp Inc., a Delaware corporation (the “Company”), and Larry B. Faigin (the
“Optionee”), an Employee of the Company. 
 A. Pursuant to the Plan, the Administrator has determined that it is to the
advantage and best interest of the Company to grant to Optionee this option (the “Option”) to purchase a total of Twenty Eight Thousand Five Hundred Sixty Nine (28,569) shares of the Common Stock of the Company
(the “Shares” or the “Option Shares”), at the price determined as provided herein, and in all respects subject to the terms, definitions and provisions of the Beverly Hills Bancorp. 2002 Equity Participation Plan
(the “Plan”) adopted by the Company, which is incorporated herein by reference. 
 B. Unless otherwise defined herein,
capitalized terms used in this Agreement shall have the meanings set forth in the Plan. 
 NOW, THEREFORE, in consideration of the mutual
agreements contained herein, the Optionee and the Company hereby agree as follows: 
 1. Grant and Terms of Stock Option. 
 1.1 Grant of Option. The Company hereby grants to the Optionee the right and option to purchase, subject to the terms and conditions set forth in
the Plan and this Agreement, all or any part of the Shares at the purchase price of $10.50 per Share. 
 1.2 Nature of the Option.
This Option is intended by the Company and Optionee to be an Incentive Stock Option, as defined in Section 422 of the Code. 
 1.3
Vesting and Exercisability. Subject to the provisions of the Plan and the other provisions of this Agreement, this Option shall vest as follows: 
 1.3.1 9,523 shares shall vest on each of January 3, 2006, January 1, 2007 and January 1, 2008. 
 1.3.2 The Option shall be deemed fully vested upon termination of Optionee’s employment if Optionee’s employment with the Company is terminated by the Company without Cause (as defined below); 
 1.3.3 The Option shall be deemed fully vested upon the occurrence of a Change of Control of the Company. 
  

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 1.4 Change of Control Defined. For purposes of this Agreement, the term “Change of
Control” shall have the meaning ascribed to such term in the employment agreement between the Company and Optionee; provided, however, that if there is no such agreement, or such agreement does not define Change of Control, a
“Change of Control” with respect to the Company shall be deemed to have if occurred upon the occurrence of any one or more of the following: 
 1.4.1 any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other
than any individual who is a director of the Company as of the date of this Agreement and any affiliate of such individuals (or group of such persons), is or becomes the “beneficial owner” (as defined in Rule 3d-3 under said Act), directly
or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding voting securities; or 
 1.4.2 the Company merges or consolidates with any other corporation other than a merger or consolidation that results in the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or the parent corporation of the surviving entity) more
than 50% of the total voting power represented by the voting securities of the Company, the surviving entity or the parent of the surviving entity, as applicable, outstanding immediately after such merger or consolidation; or 
 1.4.3 the complete liquidation of the Company; or 
 1.4.4 the occurrence of a transaction pursuant to which the Company no longer owns 50% or more of the outstanding voting securities of the
Company’s subsidiary First Bank of Beverly Hills. 
 1.5 Termination of Vesting. In the event of a Termination of Employment with
respect to Optionee, this Option shall immediately cease vesting (except as provided in Section 1.3.2) and shall be cancelled to the extent of the number of Shares as to which this Option has not vested as of the date of termination.

 2. Term of Option. No portion of this Option may be exercised after January 3, 2011. Subject to Section 1.3.2 hereof, in the event of
Termination of Employment with respect to Optionee, this Option shall be cancelled as to any unvested Shares as provided in Section 1.5, and shall terminate and be cancelled with respect to any vested Shares on the earlier of
(i) January 3, 2011, or (ii) ninety (90) days after such Termination of Employment (or one (1) year in the case of such termination as a result of Optionee’s disability or death); provided, however, if Optionee’s
Termination of Employment is with Cause, this entire Option shall be cancelled and terminated as of the date of such termination and shall no longer be exercisable as to any Shares, whether or not previously vested. For purposes of this Agreement,
“Cause” shall mean (i) as such term is defined in the employment agreement between the Optionee and the Company and (ii) if no such employment agreement exists, any of the following acts or circumstances: (a) willful
destruction by Optionee of Company property having a material value to the Company; (b) fraud, embezzlement, theft, or comparable dishonest activity committed by Optionee (excluding acts involving a de minimis dollar value and not related to

  

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the Company); (c) Optionee’s conviction of or entering a plea of guilty or nolo contendere to any crime constituting a felony or any
misdemeanor involving fraud, dishonesty or moral turpitude (excluding acts involving a de minimis dollar value and not related to the Company); (d) Optionee’s breach, neglect, refusal, or failure to materially discharge Optionee’s
duties (other than due to physical or mental illness) commensurate with Optionee’s title and function or Optionee’s failure to comply with the lawful directions of the Board of Directors or the Chief Executive Officer of the Company, in
any such case that is not cured within fifteen (15) days after Optionee has received written notice thereof from the Board of Directors or the Chief Executive Officer of the Company; or (e) a willful and knowing material misrepresentation
to the Board of Directors or the Chief Executive Officer of the Company. For purposes of this Agreement, “Good Reason” shall mean (i) the transfer of Optionee’s principal place of employment to a geographic location more
than 30 miles from the location of Optionee’s current principal place of employment; or (ii) a reduction in Optionee’s gross annual base compensation (excluding any year-end or other bonuses). For purposes of this Agreement,
“Termination of Employment” means the termination of Optionee’s employment with the Company and its subsidiaries unless Optionee is deemed to be in Continuous Status as an Employee as a result of a leave of absence approved by
the Board as contemplated by Section 2(j) of the Plan. 
 3. Method of Exercise. 
 3.1 Delivery of Notice of Exercise. This Option shall be exercisable by written notice in the form attached hereto as Exhibit A which shall
state the election to exercise this Option, the number of Shares in respect of which this Option is being exercised, and such other representations and agreements with respect to such Shares as may be required by the Company pursuant to the
provisions of this Agreement and the Plan. Such written notice shall be signed by Optionee (or by Optionee’s beneficiary or other person entitled to exercise this Option in the event of Optionee’s death under the Plan) and shall be
delivered in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the exercise price. This Option shall not be deemed exercised until the Company receives such written notice accompanied
by the exercise price and any other applicable terms and conditions of this Agreement are satisfied. This Option may not be exercised for a fraction of a Share. 
 3.2 Restrictions on Exercise. No Shares will be issued pursuant to the exercise of this Option unless and until there shall have been full compliance with all applicable requirements of the Securities Act of
1933, as amended (whether by registration or satisfaction of exemption conditions), all Applicable Laws, and all applicable listing requirements of any national securities exchange or other market system on which the Common Stock is then listed. As
a condition to the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be necessary or appropriate, in the judgment of the Administrator, to comply with any Applicable Law. For
purposes of this Agreement, the term “Applicable Laws” means any applicable statute, ordinance, writ, judgment, injunction, rule, regulation, order or decree of any court or other governmental or regulatory body, agency or
authority, federal, state, local or foreign. Without limitation, Optionee shall purchase any shares under this Agreement for his own account only and not with a view to, or for the sale in connection with, any distribution of the shares. 

 

 -3- 

 3.3 Method of Payment. Payment of the exercise price shall be made in full at the time of
exercise: (i) in cash or by check payable to the order of the Company; (ii) unless prohibited by law, by delivery of a properly executed exercise notice together with any other documentation as the Administrator and the Optionee’s
broker, if applicable, require to effect an exercise of the options and delivery to the Company of the sale or loan proceeds required to pay the exercise price; or (iii) subject in each case to the advance approval of the Administrator in its
sole discretion, by delivery of shares of Common Stock already owned by Optionee, by delivery of a full recourse promissory note made by Optionee in favor of the Company or by any combination of the foregoing. Shares of Common Stock used to satisfy
the exercise price of this Option shall be valued at their Fair Market Value determined on the date of exercise (or if such date is not a business day, as of the close of the business day immediately preceding such date). In addition, the
Administrator may impose such other conditions in connection with the delivery of shares of Common Stock in satisfaction of the exercise price as it deems appropriate in its sole discretion, including without limitation a requirement that the shares
of Common Stock delivered have been held by the Optionee for a specified period of time. Any promissory note delivered pursuant to this Section shall have terms and provisions (including, without limitation, those relating to the maturity date,
payment schedule and interest rate) as determined by the Administrator in its sole discretion, shall be secured by the Shares acquired and shall comply with all Applicable Laws (including, without limitation, state and federal margin requirements).

 4. Non-Transferability of Option. 
 4.1 Transfer Restrictions. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution or to a beneficiary designated pursuant to the Plan, and may be exercised during the
lifetime of Optionee only by Optionee. During the six (6) month period after the death of Optionee, this Option may, to the extent it remained unexercised (but vested and exercisable by Optionee in accordance with its terms) on the date of
death, be exercised by Optionee’s beneficiary or other person entitled to exercise this Option in the event of Optionee’s death under the Plan. 
 4.2 Disqualifying Disposition. If Optionee sells or otherwise disposes of any of the Shares acquired upon exercise of this Option on or before the later of (i) two (2) years after the date hereof or
(ii) one year after the date such Shares were acquired, Optionee shall immediately notify the Company in writing of such disposition. Optionee agrees that he or she may be subject to income tax withholding by the Company on the taxable income
recognized as a result of such disposition and that Optionee shall be required to satisfy such withholding obligations either by making a payment to the Company in cash or by withholding from current earnings of Optionee. 
 2. 2002 Plan. The Company has adopted a 2002 Equity Participation Plan (such plan, together with any future amendments thereof, is referred to as the
“2002 Plan”). In the event that the 2002 Plan includes additional or alternative terms and conditions that are more favorable to Optionee, such terms and conditions are incorporated into this Agreement. 
 5. General. 
 6.1 Governing Law. This
Agreement shall be governed by and construed under the laws of the state of California applicable to Agreements made and to be performed entirely 

  

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in California, without regard to the conflicts of law provisions of Oregon or any other jurisdiction. 
 6.2 Notices. Any notice required or permitted under this Agreement shall be given in writing by express courier or by postage prepaid, United
States registered or certified mail, return receipt requested, to the address set forth below or to such other address for a party as that party may designate by ten (10) days advance written notice to the other parties. Notice shall be
effective upon the earlier of receipt or three (3) days after the mailing of such notice. 
  

			
	If to the Company:	  	Beverly Hills Bancorp
		  	23901 Calabasas Road, Suite 1050
		  	Calabasas, California 97005 91302
		  	Attn: Chief Financial Officer

 If to Optionee, at the address set forth on the signature page. 
 6.3 Community Property. Without prejudice to the actual rights of the spouses as between each other, for all purposes of this Agreement, the
Optionee shall be treated as agent and attorney-in-fact for that interest held or claimed by his or her spouse with respect to this Option and the parties hereto shall act in all matters as if the Optionee was the sole owner of this Option. This
appointment is coupled with an interest and is irrevocable. 
 6.4 Modifications. This Agreement may be amended, altered or
modified only by a writing signed by the Company and the Optionee hereto. 
 6.5 Additional Documents. Each party agrees to execute
any and all further documents and writings, and to perform such other actions, which may be or become reasonably necessary or expedient to be made effective and carry out this Agreement. 
 6.6 No Third-Party Benefits. Except as otherwise expressly provided in this Agreement, none of the provisions of this Agreement shall be for the
benefit of, or enforceable by, any third-party beneficiary. 
 6.7 Successors and Assigns. Except as provided herein to the contrary,
this Agreement shall be binding upon and inure to the benefit of the parties, their respective successors and permitted assigns. 
 6.8 No
Assignment. Except as otherwise provided in this Agreement, the Optionee may not assign any of his, her or its rights under this Agreement without the prior written consent of the Company, which consent may be withheld in its sole discretion.
The Company shall be permitted to assign its rights or obligations under this Agreement, but no such assignment shall release the Company of any obligations pursuant to this Agreement. 
 6.9 Severability. The validity, legality or enforceability of the remainder of this Agreement shall not be affected even if one or more of the
provisions of this Agreement shall be held to be invalid, illegal or unenforceable in any respect. 
 6.10 Equitable Relief. The
Optionee acknowledges that, in the event of a threatened or actual breach of any of the provisions of this Agreement, damages alone will be an 

  

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inadequate remedy, and such breach will cause the Company great, immediate and irreparable injury and damage. Accordingly, the Optionee agrees that the
Company shall be entitled to injunctive and other equitable relief, and that such relief shall be in addition to, and not in lieu of, any remedies they may have at law or under this Agreement. 
 6.11 Attorneys’ Fees. Should any litigation or arbitration be commenced (including any proceedings in a bankruptcy court) between the parties
hereto or their representatives concerning any provision of this Agreement or the rights and duties of any Person or entity hereunder, the party or parties prevailing in such proceeding shall be entitled, in addition to such other relief as may be
granted, to the reasonable attorneys’ fees and costs incurred by reason of such litigation. 
 6.12 Headings. The section
headings in this Agreement are inserted only as a matter of convenience, and in no way define, limit, extend or interpret the scope of this Agreement or of any particular section. 
 6.13 Number and Gender. Throughout this Agreement, as the context may require, (a) the masculine gender includes the feminine and the neuter
gender includes the masculine and the feminine; (b) the singular tense and number includes the plural, and the plural tense and number includes the singular; (c) the past tense includes the present, and the present tense includes the past;
(d) references to parties, sections, paragraphs and exhibits mean the parties, sections, paragraphs and exhibits of and to this Agreement; and (e) periods of days, weeks or month mean calendar days, weeks or months. 
 6.14 Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. 
 6.16 Complete Agreement. This Agreement and the Plan constitute the
parties’ entire agreement with respect to the subject matter hereof and supersede all agreements, representations, warranties, statements, promises and understandings, whether oral or written, with respect to the subject matter hereof.

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

			
	 Beverly Hills Bancorp Inc.

		
	By:	 	  
	 Name:
	 	
	 Its:
	 	

 Optionee acknowledges and agrees that the vesting of shares unvested as of the date of this
Agreement pursuant to Section 1.2 hereof is earned only by continuous status as an employee (not through the act of being hired or retained, being granted this option or acquiring shares hereunder). Optionee further acknowledges and agrees that
this Option, the transactions contemplated hereunder and the vesting schedule set forth herein do not constitute an express or implied promise of continued engagement as an employee of the 

  

 -6- 

 
Company for the vesting period, for any period, or at all. Nothing in this Agreement or the Plan shall limit in any manner whatsoever the right or power of
the Company or the Optionee to terminate Optionee’s relationship with the Company with or without cause. 
 Optionee acknowledges
receipt of a copy of the Plan. Optionee represents that he is familiar with the terms and provisions of the Plan, and hereby accepts this option subject to all of the terms and provisions thereof. Optionee also acknowledges that the grant of this
option, the purchase of shares upon exercise of this option, and the sale of such shares has important tax implications. Optionee has reviewed the Plan and this option in their entirety, has had an opportunity and has been encouraged to obtain the
advice of his or her independent legal counsel and tax advisor prior to executing this option and fully understands all provisions of this option. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of
the board or the administrator upon any questions arising under the Plan. 
  

			
	  
	Larry B. Faigin
	
	 Address:

	  
	  
	  

 CONSENT OF SPOUSE TO AGREEMENT 
 By his or her signature below, the spouse of Optionee affirms that he/she has read in its entirety and agrees to be bound by all of the terms and
conditions of the foregoing Agreement and the Plan. 
  

	
	
	   
	 Name:

  

 -7- 

 EXHIBIT A 
 NOTICE OF EXERCISE OF STOCK OPTION 
  

			
	 Beverly Hills Bancorp
	 	
		 	23901 Calabasas Road, Suite 1050
		 	Calabasas, California 97005 91302
	 Attn: Chief Financial Officer

		
	Ladies and Gentlemen:	 	
	
	 The undersigned hereby elects to exercise the option indicated below:

	
	 Date of Option: ___________, 200____

	 Type of Option: Incentive Stock Option

	 Number of Shares Being Exercised: ____________

	 Exercise Price Per Share: $__________

	 Total Exercise Price: $_____________

	 Method of Payment: ______________

 Enclosed herewith is payment in full of the total exercise price. 
 I represent that I am purchasing the shares for my own account and not with a view to, or for the sale in connection with, any distribution of the
shares. 
 My exact name, current address and social security number for purposes of the stock certificates to be issued and the shareholder
list of the Company are: 
  

			
		
	Name:	 	  
		
	Address:	 	  
		 	  

					
		
	Social Security Number:	 	  

  

					
		 		 	 Sincerely,

			
	 Dated:                                     
    
	 		 	   
		 		 	 (Optionee’s Signature)

  

 -8-

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