Document:

Exhibit 4.1

 

EXHIBIT A

 

SERIES [A/B] COMMON STOCK WARRANT

 

PACWEST BANCORP

 

	
  Warrant Shares:

  	
  Initial Exercise Date:
                ,
  2009

  
	
   

  	
   

  
	
  Warrant
  Number:

  	
   

  

 

THIS SERIES [A/B] COMMON STOCK WARRANT (the “Warrant”)
certifies that, for value received,                
(the “Holder”) is entitled, upon the terms and subject to the
limitations on exercise and the conditions hereinafter set forth, at any time
on or after the date hereof (the “Initial Exercise Date”) and on or
prior to the close of business on                   (1) (the
“Termination Date”) but not thereafter, to subscribe for and purchase
from Pacwest Bancorp, a Delaware corporation (the “Company”), up to
             shares
(the “Warrant Shares”) of Common Stock. 
The purchase price of one share of Common Stock under this Warrant shall
be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.               Definitions.  Capitalized
terms used and not otherwise defined herein shall have the meanings set forth
in that certain Securities Purchase Agreement (the “Purchase Agreement”),
dated August 25, 2009, among the Company and the purchasers that are
signatories thereto.

 

Section 2.               Exercise.

 

a)             Exercise of Warrant.  Exercise of the purchase rights represented
by this Warrant may be made, in whole or in part, at any time or times on or
after the Initial Exercise Date and on or before the Termination Date by:  (i) delivery to the Company (or such
other office or agency of the Company as it may designate by notice in writing
to the registered Holder at the last address of the Holder as it shall appear
upon the Warrant Register of the Company) of a duly executed facsimile copy of
the Notice of Exercise Form annexed hereto; and (ii) within three (3) Trading
Days after the date said Notice of Exercise is delivered to the Company,
payment to the Company of the aggregate Exercise Price in respect of the
Warrant Shares thereby purchased by wire transfer in immediately available
funds or, if available, pursuant to the cashless exercise procedure specified
in Section 2(c) below. 
Notwithstanding anything herein to the contrary, the Holder shall not be
required to physically surrender this Warrant to the Company until the Holder
has purchased all of the Warrant Shares available hereunder and the Warrant has
been exercised in full, in which case, the Holder shall surrender this Warrant
to the Company for cancellation within three (3) Trading Days after the
date the final Notice of Exercise is delivered to the Company.  Partial exercises of this Warrant resulting
in purchases of a 

 

(1) As to the Series A Warrants, the six month anniversary of the date
of the Purchase Agreement; and as to the Series B Warrants, the one year
anniversary of the date of the Purchase Agreement.

 

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portion of the total
number of Warrant Shares available hereunder shall have the effect of lowering
the outstanding number of Warrant Shares purchasable hereunder in an amount
equal to the applicable number of Warrant Shares purchased.  The Holder and the Company shall maintain
records showing the number of Warrant Shares purchased and the date of such
purchases.  Absent manifest error, the
records of the Company shall be conclusive as to the number of Warrant Shares
issuable upon exercise and binding on the Company, the Holder and any
assignee.  The Company shall deliver any
objection to any Notice of Exercise Form within three (3) Business
Days after receipt of such notice.  In
the event of any dispute or discrepancy, the Company’s records shall govern.  The Holder and any
assignee, by acceptance of this Warrant, acknowledge and agree that, by reason
of the provisions of this paragraph, following the purchase of a portion of the
Warrant Shares hereunder, the number of Warrant Shares available for purchase
hereunder at any given time may be less than the amount stated on the face
hereof.

 

b)            Exercise Price.  The exercise price per share of the Common
Stock under this Warrant shall be $      (2),
subject to adjustment hereunder (as adjusted hereunder, the “Exercise Price”).

 

c)             Cashless Exercise.  If at the time of exercise hereof there is no
effective registration statement registering, or the prospectus contained
therein is not available for the issuance of, the Warrant Shares to the Holder,
then this Warrant may also be exercised, in whole or in part, at such time by
means of a “cashless exercise” in which the Holder shall be entitled to receive
a certificate for the number of Warrant Shares equal to the quotient obtained
by dividing [(A-B) (X)] by (A), where:

 

(A) = the VWAP on the Trading Day immediately
preceding the date on which the Holder elects to exercise this Warrant by means
of a “cashless exercise,” as set forth in the applicable Notice of Exercise;

 

(B) = the Exercise Price; and

 

(X) = the number of Warrant Shares that would be
issuable upon exercise of this Warrant in accordance with the terms of this
Warrant if such exercise were by means of a cash exercise rather than a
cashless exercise.

 

“VWAP” means, for any
date, the price determined by the first of the following clauses that applies: (a) if
the Common Stock is then listed or quoted on the Trading Market or another
national securities exchange, the daily volume weighted average price per share
of the Common Stock for such date (or the nearest preceding date) on the
Trading Market or such exchange on which the Common Stock is then listed or
quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m.
(New York City time) to 4:02 p.m. (New York City time), (b)  if the
Common Stock is then quoted on the OTC Bulletin Board, the volume weighted
average price per share of the Common Stock for such date (or the nearest
preceding date) on the OTC Bulletin Board, (c) if the 

 

(2) As to the Series A Warrants, $20.20; and, as to the Series B
Warrants, $20.20.

 

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Common Stock is not then
listed or quoted on a Trading Market or the OTC Bulletin Board and if prices
for the Common Stock are then reported in the “Pink Sheets” published by Pink
OTC Markets, Inc. (or a similar organization or agency succeeding to its
functions of reporting prices), the most recent bid price per share of the
Common Stock so reported, or (d) in all other cases, the fair market value
of a share of Common Stock as determined by an independent appraiser selected
in good faith by the Company and reasonably acceptable to the Holders of a
majority in interest of the Securities then outstanding, the fees and expenses
of which shall be paid by the Company.

 

d)            Mechanics of Exercise.

 

i.          Delivery of Certificates Upon Exercise.  Certificates for shares purchased hereunder
shall be transmitted by the Transfer Agent to the Holder by crediting the
account of the Holder’s prime broker with The Depository Trust Company through its
DWAC system if the Company is then a participant in such system and either (i) there
is an effective registration statement permitting the issuance of the Warrant
Shares to the Holder or (ii) this Warrant is being exercised via cashless
exercise, and otherwise by physical delivery to the address specified by the
Holder in the Notice of Exercise, in each case by the date that is three (3) Trading
Days after the latest of (A) the delivery to the Company of the Notice of
Exercise Form and receipt of the DWAC request from the Holder’s prime
broker (if applicable), (B) surrender of this Warrant (if required) and (C) payment
of the aggregate Exercise Price as set forth above (including by cashless
exercise, if permitted) (such date, the “Warrant Share Delivery Date”).  This Warrant shall be deemed to have been
exercised on the first date on which all of the foregoing specified in (A), (B) and
(C) shall have been delivered to the Company.  The Warrant Shares shall be deemed to have
been issued, and the Holder or any other person so designated to be named
therein shall be deemed to have become a holder of record of such shares for
all purposes, as of the date the Warrant has been properly exercised, with
payment to the Company of the Exercise Price (or by cashless exercise, if
permitted) and all taxes required to be paid by the Holder, if any, pursuant to
Section 2(d)(vi) prior to the issuance of such shares, having been
paid.

 

ii.         Delivery of New Warrants Upon
Exercise.  If this Warrant shall have
been exercised in part, the Company shall, at the request of a Holder and upon
surrender of this Warrant certificate, at the time of delivery of the
certificate or certificates representing Warrant Shares, deliver to Holder a
new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant
Shares called for by this Warrant, which new Warrant shall in all other
respects be identical to this Warrant.

 

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iii.        Rescission Rights.  If the Company fails to cause the Transfer
Agent to transmit to the Holder a certificate or the certificates representing
the Warrant Shares in the manner provided by Section 2(d)(i) by the
Warrant Share Delivery Date, then, the Holder will have the right to rescind
such exercise as provided in the Purchase Agreement.

 

iv.           Compensation for Buy-In on Failure to Timely Deliver
Certificates Upon Exercise.  In addition
to any other rights available to the Holder, if the Company fails to cause the
Transfer Agent to transmit to the Holder a certificate or the certificates
representing the Warrant Shares in the manner provided by Section 2(d)(i) by
the Warrant Share Delivery Date, and if after such date the Holder is required
by its broker to purchase (in an open market transaction or otherwise), or the
Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver
in satisfaction of a sale by the Holder of the Warrant Shares which the Holder
anticipated receiving upon such exercise (a “Buy-In”), then the Company
shall (A) pay in cash to the Holder the amount, if any, by which (x) the
Holder’s total purchase price (including brokerage commissions, if any) for the
shares of Common Stock so purchased exceeds (y) the amount obtained by
multiplying (1) the number of Warrant Shares that the Company was required
to deliver to the Holder in connection with the exercise at issue by (2) the
price at which the sell order giving rise to such purchase obligation was
executed, and (B) at the option of the Holder, either reinstate the
portion of the Warrant and equivalent number of Warrant Shares for which such
exercise was not honored (in which case such exercise shall be deemed
rescinded) or deliver to the Holder the number of shares of Common Stock that
would have been issued had the Company timely complied with its exercise and
delivery obligations hereunder.  For
example, if the Holder purchases Common Stock having a total purchase price of
$11,000 to cover a Buy-In with respect to an attempted exercise of shares of
Common Stock with an aggregate sale price giving rise to such purchase
obligation of $10,000, under clause (A) of the immediately preceding
sentence the Company shall be required to pay the Holder $1,000.  Notwithstanding the foregoing, the Company
shall not be required to make the payments set forth herein in the case of
uncertificated Warrant Shares if the Holder fails to timely file a request with
The Depository Trust Company to receive such uncertificated Warrant
Shares.  The Holder shall provide the
Company written notice indicating the amounts payable to the Holder in respect
of the Buy-In and, upon request of the Company, evidence reasonably
satisfactory to the Company of the amount of such loss.  Nothing herein shall limit a Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver
certificates representing shares of Common Stock upon exercise of the Warrant
as required pursuant to the terms hereof.

 

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v.         No Fractional Shares or Scrip.  No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant.  As to any fraction of a share which the
Holder would otherwise be entitled to purchase upon such exercise, the Company
shall, at its election, either pay a cash adjustment in respect of such final
fraction in an amount equal to such fraction multiplied by the Exercise Price
or round up to the next whole share.

 

vi.        Charges, Taxes and Expenses.  Issuance of certificates for Warrant Shares
shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such certificate, all of
which taxes and expenses shall be paid by the Company, and such certificates
shall be issued in the name of the Holder or in such name or names as may be
directed by the Holder; provided that in the event certificates for Warrant Shares
are to be issued in a name other than the name of the Holder, this Warrant when
surrendered for exercise shall be accompanied by the Assignment Form attached
hereto duly executed by the Holder and the Company may require, as a condition
thereto, the payment of a sum sufficient to reimburse it for any transfer tax
incidental thereto.

 

vii.       Closing of Books.  The Company will not close its stockholder
books or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

 

e)             Holder’s Exercise Limitations.  The Company shall not effect any exercise of
this Warrant, and a Holder shall not have the right to exercise any portion of
this Warrant, pursuant to Section 2 or otherwise, to the extent that after
giving effect to such issuance after exercise as set forth on the applicable
Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any
other Persons acting as a group together with the Holder or any of the Holder’s
Affiliates) would beneficially own in excess of the Beneficial Ownership
Limitation (as defined below).  For purposes of the foregoing sentence,
the number of shares of Common Stock beneficially owned by the Holder and its
Affiliates shall include the number of shares of Common Stock issuable upon
exercise of this Warrant with respect to which such determination is being
made, but shall exclude the number of shares of Common Stock which would be
issuable upon (i) exercise of the remaining, nonexercised portion of this
Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise
or conversion of the unexercised or nonconverted portion of any other
securities of the Company (including, without limitation, any other  Common Stock Equivalents) subject to a
limitation on conversion or exercise analogous to the limitation contained
herein beneficially owned by the Holder or any of its Affiliates.  Except
as set forth in the preceding sentence, for purposes of this Section 2(e),
beneficial ownership shall be calculated in accordance with Section 13(d) of
the Exchange Act and the rules and regulations promulgated thereunder, it
being acknowledged by the Holder that the Company is not representing to the
Holder that such calculation is in compliance with Section 13(d) of
the Exchange Act and the Holder is solely responsible for any schedules
required to be filed in accordance therewith.  
To the 

 

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extent that the
limitation contained in this Section 2(e) applies, the determination
of whether this Warrant is exercisable (in relation to other securities owned
by the Holder together with any Affiliates) and of which portion of this
Warrant is exercisable shall be in the sole discretion of the Holder, and the
submission of a Notice of Exercise shall be deemed to be the Holder’s
determination of whether this Warrant is exercisable (in relation to other
securities owned by the Holder together with any Affiliates) and of which
portion of this Warrant is exercisable, in each case subject to the Beneficial
Ownership Limitation, and the Company shall have no obligation to verify or
confirm the accuracy of such determination and shall have no liability for
exercises of the Warrant that are not in compliance with the Beneficial
Ownership Limitation.   In addition, a
determination as to any group status as contemplated above shall be determined
in accordance with Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder.  For
purposes of this Section 2(e), in determining the number of outstanding
shares of Common Stock, a Holder may rely on the number of outstanding shares
of Common Stock as reflected in (A) the Company’s most recent periodic or
annual report filed with the Commission, as the case may be, (B) a more recent
public announcement by the Company or (C) a more recent written notice by
the Company or the Transfer Agent setting forth the number of shares of Common
Stock outstanding.  Upon the written or oral request of a Holder, the
Company shall within two (2) Trading Days confirm orally and in writing to
the Holder the number of shares of Common Stock then outstanding as established
by (A), (B) or (C) above, as applicable.  In any case, the
number of outstanding shares of Common Stock shall be determined after giving
effect to the conversion or exercise of securities of the Company, including
this Warrant, by the Holder or its Affiliates since the date as of which such
number of outstanding shares of Common Stock was reported.  The “Beneficial Ownership Limitation”
shall be [4.99%/9.99%] of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance
of shares of Common Stock issuable upon exercise of this Warrant.  The Holder, upon not less than 61 days’ prior
notice to the Company, may decrease the Beneficial Ownership Limitation
provisions of this Section 2(e). 
Any such decrease will not be effective until the 61st day after such
notice is delivered to the Company and shall only be effective with respect to
such Holder.  The provisions of this
paragraph shall be construed and implemented in a manner otherwise than in
strict conformity with the terms of this Section 2(e) to correct this
paragraph (or any portion hereof) which may be defective or inconsistent with
the intended Beneficial Ownership Limitation herein contained or to make
changes or supplements necessary or desirable to properly give effect to such
limitation. The limitations contained in this paragraph shall apply to a
successor holder of this Warrant.  For the
avoidance of doubt, no additional consideration, cash or otherwise, will be
payable by the Company or the Holder as a result of any adjustment pursuant to
this Section 2(e).

 

Section 3.               Certain Adjustments.

 

a)             Stock Dividends and Splits. If the Company, at
any time while this Warrant is outstanding: (i) pays a dividend or
otherwise makes a distribution or distributions, in each case payable in shares
of its Common Stock, to all holders of Common Stock (and not to the Holders)
(excluding, for avoidance of doubt, any shares of Common Stock issued by the
Company upon exercise of this Warrant), (ii) subdivides 

 

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outstanding shares of
Common Stock into a larger number of shares, or (iii) combines (including by
way of reverse stock split) outstanding shares of Common Stock into a smaller
number of shares, then in each case the Exercise Price shall be multiplied by a
fraction, of which the numerator shall be the number of shares of Common Stock
(excluding treasury shares, if any) outstanding at 5:00 p.m. (New York
City time) on the Trading Day immediately before such event, and of which the
denominator shall be the number of shares of Common Stock that would be
outstanding immediately after, and solely as a result of, such event, and the
number of shares issuable upon exercise of this Warrant shall be
proportionately adjusted such that the aggregate Exercise Price of this Warrant
shall remain unchanged.  Any adjustment
made pursuant to this Section 3(a) shall become effective immediately
prior to 9:00 a.m. (New York city time) on the Ex-Dividend Date for such
dividend or distribution or the effective date of such subdivision or
combination, as the case may be.  “Ex-Dividend
Date” means, when used with respect to any dividend, distribution or
issuance, the first date on which the share of Common Stock trade on the
Trading Market, regular way, without the right to receive the relevant
dividend, distribution or issuance.

 

b)            [RESERVED]

 

c)             [RESERVED]

 

d)            Pro Rata Distributions.  If the Company, at any time while this
Warrant is outstanding, shall distribute to all holders of Common Stock (and
not to the Holders) evidences of its indebtedness or assets (excluding (i) any
dividend or distribution of Common Stock (which shall be subject to Section 3(a)),
(ii) any issuance of rights or warrants to subscribe for or purchase
shares Common Stock), (iii) any dividend or distribution of cash (which
shall be subject to Section 3(e)), and (iv) any dividend or
distribution in connection with a Fundamental Transaction (which shall be
subject to Section 3(f))), then in each such case the Exercise Price shall
be adjusted by multiplying the Exercise Price by a fraction, of which the
numerator shall be the VWAP on the Trading Day immediately preceding the
Ex-Dividend Date for such distribution, and of which the denominator shall be
such VWAP less the fair market value, on the Ex-Dividend Date for such
distribution, of the portion of such assets or evidence of indebtedness or the
portion of such subscription or purchase rights, in either case applicable to
one outstanding share of the Common Stock as determined by the Board of
Directors in good faith.  The adjustments
shall be described in a statement provided to the Holder, which shall set out
the portion of assets or evidences of indebtedness  or the portion of such subscription or
purchase rights, in either case applicable to one outstanding share of Common
Stock.  Such adjustment shall be made
whenever any such distribution is made and shall become effective immediately
prior to 9:00 a.m. (New York city time) on the Ex-Dividend Date for such
distribution.

 

e)             Cash Dividends. 
If the Company, at any time while this Warrant is outstanding, pays a
dividend or otherwise makes a distribution or distributions, in each case
consisting exclusively of cash, to all holders of Common Stock (and not to the
Holders) (excluding (i) any dividend or distribution in connection with a
Fundamental Transaction (which shall be the subject of Section 3(f)) and (ii) regular
cash dividends to 

 

7

 

the extent that such
dividends do not exceed $0.32 per share in any fiscal quarter (the “Dividend
Threshold Amount”), then the Exercise Price shall be multiplied by a fraction,
of which the numerator shall be the VWAP on the Trading Day immediately
preceding the Ex-Dividend Date for such distribution, and of which the
denominator shall be such VWAP less (i) in the case of a regularly
scheduled quarterly dividend, the amount in cash per share of Common Stock of
the distribution exceeding the Dividend Threshold Amount or (ii) in the
case of a dividend that is not a regularly scheduled quarterly dividend, the
amount in cash per share of Common Stock of the distribution.  Such adjustment shall become effective
immediately prior to 9:00 a.m. (New York city time) on the Ex-Dividend
Date for such distribution

 

f)             Fundamental Transaction. If, at any time while
this Warrant is outstanding, (i) the Company,
directly or indirectly, in one or more related transactions effects any merger or consolidation of
the Company with or into another Person and the Company is not the surviving
corporation, (ii) the Company,
directly or indirectly, effects
any sale, lease, license, assignment,
transfer, conveyance or other disposition of all or substantially all of its assets in one or a
series of related transactions, (iii) any, direct or indirect, purchase
offer, tender offer or exchange offer (whether by the Company or another
Person) is completed pursuant to which holders of Common Stock are permitted to
sell, tender or exchange their shares for other securities, cash or property
and has been accepted by the holders of 50% or more of the outstanding Common
Stock, (iv) the Company,
directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share
exchange pursuant to which the Common Stock is effectively converted into or
exchanged for other securities, cash or property, (v) the Company, directly or indirectly, in one or more related transactions  consummates
a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another
Person whereby such other Person acquires more than 50% of the
outstanding shares of Common Stock
(not including any shares of Common Stock held by the other Person or other
Persons making or party to, or associated or affiliated with the other Persons
making or party to, such stock or share purchase agreement or other
business combination) (each a “Fundamental Transaction”),
then, upon any subsequent exercise of
this Warrant, the Holder shall have the
right to receive, for each Warrant Share that would have been issuable upon
such exercise immediately prior to the occurrence of such Fundamental
Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on
the exercise of this Warrant), the number of
shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and any additional consideration (the
“Alternate Consideration”) receivable as
a result of such Fundamental Transaction by a holder of the number of shares of
Common Stock for which this Warrant is exercisable immediately prior to such
Fundamental Transaction (without regard to any limitation in Section 2(e) on
the exercise of this Warrant).  For purposes of any such exercise, the
determination of the Exercise Price shall be appropriately adjusted to apply to
such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental
Transaction, and the Company shall apportion the Exercise Price among the
Alternate Consideration in a reasonable manner reflecting the relative value of

 

8

 

any different components
of the Alternate Consideration.  If
holders of Common Stock are given any choice as to the securities, cash or
property to be received in a Fundamental Transaction, then the Holder shall be
given the same choice as to the Alternate Consideration it receives upon any
exercise of this Warrant following such Fundamental Transaction.

 

g)            Calculations. All calculations under this Section 3
shall be made to the nearest cent or the nearest 1/100th of a share, as the
case may be. For purposes of this Section 3, the number of shares of
Common Stock deemed to be issued and outstanding as of a given date shall be
the sum of the number of shares of Common Stock (excluding treasury shares, if
any) issued and outstanding.

 

h)            Notice to Holder.

 

i.      Adjustment to Exercise Price. Whenever the Exercise
Price is adjusted pursuant to any provision of this Section 3, the Company
shall promptly mail to the Holder a notice setting forth the Exercise Price
after such adjustment and setting forth a brief statement of the facts
requiring such adjustment.

 

ii.     Notice to Allow Exercise by Holder.
If during the term in which this Warrant may be exercised by the Holder (A) the
Company shall declare a dividend (or any other distribution in whatever form)
on the Common Stock, (B) the Company shall declare a special nonrecurring
cash dividend on or a redemption of the Common Stock, (C) the Company
shall authorize the granting to all holders of the Common Stock rights or
warrants to subscribe for or purchase any shares of capital stock of any class,
(D) the approval of any stockholders of the Company shall be required in
connection with any reclassification of the Common Stock, any consolidation or
merger to which the Company is a party, any sale or transfer of all or substantially
all of the assets of the Company, or any compulsory share exchange whereby the
Common Stock is converted into other securities, cash or property, or (E) the
Company shall authorize the voluntary or involuntary dissolution, liquidation
or winding up of the affairs of the Company, then, in each case, the Company
shall cause to be mailed to the Holder at its last address as it shall appear
upon the Warrant Register of the Company, at least 20 calendar days prior to
the applicable record or effective date hereinafter specified, a notice stating
(x) the date on which a record is to be taken for the purpose of such
dividend, distribution, redemption, rights or warrants, or if a record is not
to be taken, the date as of which the holders of the Common Stock of record to
be entitled to such dividend, distributions, redemption, rights or warrants are
to be determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected to become
effective or close, and the date as of which it is expected that holders of the
Common Stock of record shall be entitled to exchange their shares of the Common
Stock for securities, cash or other property 

 

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deliverable upon such
reclassification, consolidation, merger, sale, transfer or share exchange;
provided that the failure to mail such notice or any defect therein or in the
mailing thereof shall not affect the validity of the corporate action required
to be specified in such notice.  To the
extent that any notice provided hereunder constitutes, or contains, material,
non-public information regarding the Company or any of the Subsidiaries, the
Company shall simultaneously disclose such information in compliance with
applicable securities laws.  The Holder
shall remain entitled to exercise this Warrant during the period commencing on
the date of such notice to the effective date of the event triggering such
notice except as may otherwise be expressly set forth herein.

 

Section 4.               Transfer of Warrant.

 

a)             Transferability. 
Subject to compliance with applicable securities laws, this Warrant and
all rights hereunder are transferable, in whole and not in part, upon surrender
of this Warrant at the principal office of the Company or its designated agent,
together with a written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such
transfer.  Upon such surrender and, if
required, such payment, the Company shall execute and deliver a new Warrant in
the name of the assignee, and this Warrant shall promptly be cancelled.  The Warrant, if properly assigned in
accordance herewith, may be exercised by a new holder for the purchase of
Warrant Shares without having a new Warrant issued.

 

b)            New Warrants. This Warrant may be combined with
other Warrants upon presentation hereof at the aforesaid office of the Company,
together with a written notice specifying the names and denominations in which
new Warrants are to be issued, signed by the Holder or its agent or
attorney.  Subject to compliance with Section 4(a),
as to any transfer which may be involved in such combination, the Company shall
execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be combined in accordance with such notice. All Warrants issued on
transfers or exchanges shall include reference to the initial issuance date set
forth on the first page of this Warrant and shall be identical with this
Warrant except as to the number of Warrant Shares issuable pursuant thereto and
the Warrant number.

 

c)             Warrant Register. The Company shall register this
Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time.  The Company may deem and treat the registered
Holder of this Warrant as the absolute owner hereof for the purpose of any
exercise hereof or any distribution to the Holder, and for all other purposes,
absent actual written notice to the contrary.

 

d)            Understandings or Arrangements.   Such Holder is acquiring this Warrant as
principal for its own account and has no direct or indirect arrangement or
understandings with any other persons to distribute or regarding the
distribution of such Warrant (this representation and warranty not limiting
such Holder’s right to sell the Warrant pursuant to the Registration Statement
or otherwise in compliance with applicable federal and state securities laws).
Such Holder is acquiring this Warrant hereunder in the ordinary course of its
business.

 

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Section 5.               Miscellaneous.

 

a)             No Rights as Stockholder Until Exercise.  This Warrant does not entitle the Holder to
any voting rights, dividends or other rights as a stockholder of the Company
prior to the exercise hereof as set forth in Section 2(d)(i).

 

b)            Loss, Theft, Destruction or Mutilation of Warrant.
The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant or any stock certificate relating to the Warrant Shares, and in case of
loss, theft or destruction, of indemnity or security reasonably satisfactory to
it, and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock
certificate of like tenor and dated as of such cancellation, in lieu of such
Warrant or stock certificate. Applicants for a replacement
Warrant under such circumstances shall also comply with such other reasonable
regulations and procedures and pay such other reasonable charges as the Company
may prescribe.

 

c)             Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking
of any action or the expiration of any right required or granted herein shall
not be a Business Day, then, such action may be taken or such right may be
exercised on the next succeeding Business Day.

 

d)            No Inconsistent Actions.  Except and to the extent as waived or
consented to by the Holder, the Company shall not by any action, including,
without limitation, amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue
or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such actions as may be necessary or appropriate to protect the
rights of the Holder as set forth in this Warrant against impairment.  Without limiting the generality of the
foregoing, the Company will (i) not increase the par value of any Warrant
Shares above the amount payable therefor upon such exercise immediately prior
to such increase in par value, (ii) take all such action as may be
necessary or appropriate in order that the Company may validly and legally issue
fully paid and nonassessable Warrant Shares upon the exercise of this Warrant
and (iii) use commercially reasonable efforts to obtain all such
authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof, as may be, necessary to enable the Company to perform its
obligations under this Warrant.

 

e)             Jurisdiction. All questions concerning the
construction, validity, enforcement and interpretation of this Warrant shall be
determined in accordance with the provisions of the Purchase Agreement.

 

11

 

f)             Restrictions. 
The Holder acknowledges that the Warrant Shares acquired upon the
exercise of this Warrant, if not registered, and the Holder does not utilize
cashless exercise, will have restrictions upon resale imposed by state and
federal securities laws.

 

g)            Nonwaiver and Expenses.  No course of dealing or any delay or failure
to exercise any right hereunder on the part of the Holder shall operate as a
waiver of such right or otherwise prejudice Holder’s rights, powers or
remedies.  Without limiting any other
provision of this Warrant or the Purchase Agreement, if the Company willfully
and knowingly fails to comply with any provision of this Warrant, which results
in any material damages to the Holder, the Company shall pay to the Holder such
amounts as shall be sufficient to cover any costs and expenses including, but
not limited to, reasonable attorneys’ fees, including those of appellate
proceedings, incurred by Holder in collecting any amounts due pursuant hereto
or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

h)            Notices. 
Any notice, request or other document required or permitted to be given
or delivered to the Holder by the Company shall be delivered to the registered
Holder at the last address of the Holder as it shall appear upon the Warrant
Register of the Company.

 

i)              Limitation of Liability.  No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant to purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the Company
or by creditors of the Company.

 

j)              Remedies. 
The Holder, in addition to being entitled to exercise all rights granted
by law, including recovery of damages, will be entitled to seek specific
performance of its rights under this Warrant. 
The Company agrees that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by it of the
provisions of this Warrant and hereby agrees to waive and not to assert the
defense in any action for specific performance that a remedy at law would be
adequate.

 

k)             Successors and Assigns.  Subject to applicable securities laws, this
Warrant and the rights and obligations evidenced hereby shall inure to the
benefit of and be binding upon the successors and permitted assigns of the Company
and the successors and permitted assigns of Holder.  The provisions of this Warrant are intended
to be for the benefit of any Holder from time to time of this Warrant and shall
be enforceable by the Holder or holder of Warrant Shares.

 

l)              Amendment. 
This Warrant may be modified or amended or the provisions hereof waived
with the written consent of the Company and Holders holding Warrants at least
equal to 50% of the Warrant Shares issuable upon exercise of all then
outstanding Warrants issued under the Purchase Agreement.

 

12

 

m)            Severability. 
Wherever possible, each provision of this Warrant shall be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of this Warrant shall be prohibited by or invalid under applicable
law, such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provisions or the
remaining provisions of this Warrant.

 

n)            Headings. 
The headings used in this Warrant are for the convenience of reference
only and shall not, for any purpose, be deemed a part of this Warrant.

 

********************

 

(Signature
Pages Follow)

 

13

 

IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed by its officer thereunto duly
authorized as of the date first above indicated.

 

 

	
   

  	
  PACWEST BANCORP

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

14

 

NOTICE OF EXERCISE

 

TO:         PACWEST BANCORP

 

(1)   The undersigned hereby elects to purchase
                
Warrant Shares of the Company pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price
in full, together with all applicable transfer taxes, if any.

 

(2)   Payment shall take the form of (check
applicable box):

 

o in lawful money of the United States; or

 

o [if permitted] the cancellation of such
number of Warrant Shares as is necessary, in accordance with the formula set
forth in subsection 2(c), to exercise this Warrant with respect to the maximum
number of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 2(c).

 

(3)   Please issue a certificate or certificates
representing said Warrant Shares in the name of the undersigned or in such
other name as is specified below:

 

 

The Warrant Shares shall be delivered to the following DWAC Account
Number:

 

Account Number:

Account Name:

DTC Number

 

or by physical delivery of a certificate to:

 

 

(4)   The
undersigned is an “accredited investor” as defined in Regulation D promulgated
under the Securities Act of 1933, as amended.

 

[SIGNATURE OF
HOLDER]

 

	
  Name of
  Investing Entity:

  	
   

  
	
  Signature
  of Authorized Signatory of Investing Entity:

  	
   

  
	
  Name of
  Authorized Signatory:

  	
   

  
	
  Title of
  Authorized Signatory:

  	
   

  
	
  Date:

  	
   

  
						

 

 

ASSIGNMENT FORM

 

(To assign the foregoing Warrant, execute

this form and supply required information. 

Do not use this form to exercise the Warrant.)

 

FOR VALUE RECEIVED,
[        ] all of or
[              ]
shares of the foregoing Warrant and all rights evidenced thereby are hereby
assigned to

 

                                                                                              
whose address is

 

                                                                                                                                                         .

 

 

	
   

  	
  Dated: 
                              ,

  

 

 

	
   

  	
  Holder’s
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Holder’s
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature
  Guaranteed:

  	
   

  	
   

  
					

 

 

NOTE:  The signature to this
Assignment Form must correspond with the name as it appears on the face of
the Warrant, without alteration or enlargement or any change whatsoever, and
must be guaranteed by a bank or trust company. 
Officers of corporations and those acting in a fiduciary or other
representative capacity should file proper evidence of authority to assign the
foregoing Warrant.Exhibit 10.1

 

 

	
   

  	
  August 25, 2009

  

 

CONFIDENTIAL

 

PacWest Bancorp

10250 Constellation Blvd,
Suite 1640

Los Angeles, CA 90067

 

Dear Sirs:

 

This letter (the “Agreement”)
constitutes the agreement between Rodman & Renshaw, LLC (“Rodman”
or the “Placement Agent”) and PacWest Bancorp (the “Company”),
that Rodman shall serve as the exclusive placement agent for the Company, on a “reasonable
best efforts” basis, in connection with the proposed placement, to close no
later than August 28, 2009 (the “Placement”), of registered
securities of the Company, consisting of shares (the “Shares”) of the
Company’s common stock, par value $0.01 per share (the “Common Stock”),
warrants to purchase shares of Common Stock (the “Warrants”) and the
shares of Common Stock issuable upon exercise of the Warrants (together with
the Shares and the Warrants, the “Securities”). The terms of such
Placement and the Securities shall be mutually agreed upon by the Company and
the purchasers (each, a “Purchaser” and, collectively, the “Purchasers”)
and Rodman shall not, and nothing herein implies that Rodman would, have the
power or authority to bind the Company or any Purchaser and the Company shall
not, and nothing herein implies that the Company would, have an obligation to
issue any Securities or complete the Placement. This Agreement and the
documents executed and delivered by the Company and the Purchasers in
connection with the Placement shall be collectively referred to herein as the “Transaction
Documents.”  The date of the closing
of the Placement shall be referred to herein as the “Closing Date.”  The Company expressly acknowledges and agrees
that Rodman’s obligations hereunder are on a reasonable best efforts basis only
and that the execution of this Agreement does not constitute a commitment by
Rodman to purchase the Securities and does not ensure the successful placement
of the Securities or any portion thereof.

 

SECTION 1.           COMPENSATION
AND OTHER FEES.

 

As compensation
for the services provided by Rodman hereunder, the Company agrees to pay to
Rodman:

 

(A)          The fees set forth below with respect
to the Placement:

 

1.              A cash fee payable immediately upon (but
only in the event of) the closing of the Placement and equal to 3% of the
aggregate gross proceeds raised in the Placement; provided, however,
that such fee shall be reduced to 1% with respect to any portion of such
aggregate gross proceeds received from investors identified by the Company.

 

2.              Additionally, a
cash fee payable within 48 hours after (but only in the event of) the receipt
by the Company of any proceeds from the exercise of the Warrants sold in the
Placement to Purchasers and otherwise in compliance with Financial Industry 

 

Rodman & Renshaw, LLC o 1251 Avenue of the Americas, 20th Floor, New York, NY 10020

Tel: 212 356 0500 o Fax: 212 581 5690 o www.rodm.com o Member: FINRA, SIPC

 

 

Regulatory Authority (“FINRA”) Rule 5110 equal to 3% of the
aggregate cash exercise price received by the Company upon such exercise, if
any (the “Warrant Solicitation Fee”); provided, however,
that such fee shall be reduced to 1% with respect to any portion of such aggregate cash
exercise price received from investors identified by the Company; and
provided further that the Warrant Solicitation Fee shall be reduced (before any
reduction to the expense reimbursement to Rodman in Section B below) to
the extent (and only to the extent) that Rodman’s aggregate compensation for
the Placement, as determined under FINRA Rule 5110, would otherwise exceed
8%.  Such determination of the actual
Warrant Solicitation Fee shall be made promptly following completion of the
Placement and communicated in writing to the Company.

 

(B)           The Company also agrees to reimburse
Rodman’s reasonable travel and other out-of-pocket expenses, including the
reasonable fees and expenses of Rodman’s counsel, incurred by Rodman in
connection with its engagement hereunder (with supporting invoices/receipts in
reasonable detail) up to the lesser of $35,000 or 0.5% of the aggregate gross
proceeds raised in the Placement. Such reimbursement shall be payable
immediately upon (but only in the event of) the closing of the Placement.

 

SECTION 2.           REGISTRATION
STATEMENT.

 

The
Company represents and warrants to, and agrees with, the Placement Agent that:

 

(A)          The Company has filed
with the Securities and Exchange Commission (the “Commission”) a
registration statement on Form S-3 (Registration File No. 333-159999)
under the Securities Act of 1933, as amended (the “Securities Act”),
which became effective on June 30, 2009, for the registration under the
Securities Act of the Securities. At the time of such filing, the Company met
the requirements of Form S-3 under the Securities Act.  Such registration statement meets the
requirements set forth in Rule 415(a)(1)(x) under the Securities Act
and complies with said Rule. The Company will file with the Commission pursuant
to Rule 424(b) under the Securities Act, and the rules and
regulations (the “Rules and Regulations”) of the Commission
promulgated thereunder, a supplement to the form of prospectus included in such
registration statement relating to the placement of the Securities and the plan
of distribution thereof.  Such
registration statement, including the exhibits thereto, as amended at the date
of this Agreement, is hereinafter called the “Registration Statement”;
such prospectus in the form in which it appears in the Registration Statement
is hereinafter called the “Base Prospectus”; and the supplemented form
of prospectus, in the form in which it will be filed with the Commission
pursuant to Rule 424(b) (including the Base Prospectus as so
supplemented) is hereinafter called the “Prospectus Supplement.” Any
reference in this Agreement to the Registration Statement, the Base Prospectus
or the Prospectus Supplement shall be deemed to refer to and include the
documents incorporated by reference therein (the “Incorporated Documents”)
pursuant to Item 12 of Form S-3, which were filed under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), on or before the
date of this Agreement, or the filing date of the Base Prospectus or the
Prospectus Supplement, as the case may be; and any reference in this Agreement
to the terms “amend,” “amendment” or “supplement” with respect to the
Registration Statement, the Base Prospectus or the Prospectus Supplement shall
be deemed to refer to and include the filing of any document under the Exchange
Act after the date of this Agreement, or the filing date of the Base Prospectus
or the Prospectus Supplement, as the case may be, deemed to be incorporated
therein by reference. All references in this Agreement to financial statements
and schedules and other information that is “contained,” “included,” “described,”
“referenced,” “set forth” or “stated” in the Registration Statement, the Base
Prospectus or the Prospectus Supplement (and all other references of like
import) shall be deemed to mean and include all such financial statements and
schedules and other information that is or is deemed to be incorporated by
reference in the Registration Statement, the Base Prospectus or the Prospectus
Supplement, as the case 

 

2

 

may
be.  No stop order suspending the
effectiveness of the Registration Statement or the use of the Base Prospectus
or the Prospectus Supplement has been issued, and no proceeding for any such
purpose is pending or has been initiated or, to the Company’s actual knowledge,
is threatened by the Commission. For purposes of this Agreement, “free writing prospectus” has the
meaning set forth in Rule 405 under the Securities Act and the “Time of Sale Prospectus” means the
preliminary prospectus, if any, together with the free writing prospectuses, if
any, used in connection with the Placement, including any documents
incorporated by reference therein.

 

(B)           The Registration Statement (and any
further documents to be filed with the Commission  in connection with the Placement) contains or
will contain, as applicable, all exhibits and schedules as required by the
Securities Act. Each of the Registration Statement and any post-effective
amendment thereto, at the time it became or becomes effective, complied or will
comply, as applicable, in all material respects with the Securities Act and the
Exchange Act and the applicable Rules and Regulations and did not and, as
amended or supplemented, if applicable, will not, contain any untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading. The Base
Prospectus, the Time of Sale Prospectus, if any, and the Prospectus Supplement,
each as of its respective date, complied or will comply in all material
respects with the Securities Act and the Exchange Act and the applicable Rules and
Regulations. Each of the Base Prospectus, the Time of Sale Prospectus, if any,
and the Prospectus Supplement, as amended or supplemented, did not and will not
contain as of the date thereof (or as of the “applicable time,” in the case of
the Time of Sale Prospectus) any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading.  As used herein, the “applicable time” shall
mean 10:00 a.m. (Eastern time) on August 25, 2009.  The Incorporated Documents, when they were
filed with the Commission, conformed in all material respects to the
requirements of the Exchange Act and the applicable Rules and Regulations,
and none of such documents, when they were filed with the Commission, contained
any untrue statement of a material fact or omitted to state a material fact
necessary to make the statements therein (with respect to Incorporated
Documents incorporated by reference in the Base Prospectus or Prospectus
Supplement), in light of the circumstances under which they were made, not
misleading; and any further documents so filed and incorporated by reference in
the Base Prospectus, the Time of Sale Prospectus, if any, or Prospectus
Supplement, when such documents are filed with the Commission, will conform in
all material respects to the requirements of the Exchange Act and the
applicable Rules and Regulations, as applicable, and will not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading. No post-effective amendment to the Registration
Statement reflecting any facts or events arising after the date thereof, which
represent, individually or in the aggregate, a fundamental change in the
information set forth therein is required to be filed with the Commission.  There are no documents required to be filed
with the Commission in connection with the transaction contemplated hereby that
(x) have not been filed as required pursuant to the Securities Act or (y) will
not be filed within the requisite time period. There are no contracts or other
documents required to be described in the Base Prospectus, the Time of Sale
Prospectus, if any, or Prospectus Supplement, or to be filed as exhibits or
schedules to the Registration Statement, that have not been or will not be
described or filed as required. Notwithstanding anything to the contrary
contained herein, the Company makes no representation or warranty as to
information contained in or omitted from the Registration Statement, the Base
Prospectus, the Time of Sale Prospectus, if any, Prospectus Supplement or any
free writing prospectus, including any amendments or supplements thereto, in
reliance upon, and in conformity with, information furnished in writing to the
Company by or on behalf of Rodman expressly for use in or preparation thereof.

 

3

 

(C)           The Company is eligible to use free
writing prospectuses in connection with the Placement pursuant to Rules 164
and 433 under the Securities Act.  Any
free writing prospectus that the Company is required to file pursuant to Rule 433(d) under
the Securities Act in connection with the Placement has been, or will be, filed
with the Commission in accordance with the requirements of the Securities Act
and the applicable Rules and Regulations. 
Each free writing prospectus that the Company has filed, or is required
to file, pursuant to Rule 433(d) under the Securities Act or that was
prepared by or behalf of or used by the Company, in each case in connection
with the Placement, complies or will comply in all material respects with the
requirements of the Securities Act and the applicable Rules and
Regulations.  The Company will not,
without the prior consent of the Placement Agent, prepare, use or refer to, any
free writing prospectus in connection with the Placement.

 

(D)          The Company has delivered or made
available, or will as promptly as practicable deliver or made available, to the
Placement Agent complete conformed copies of the Registration Statement and of
each consent and certificate of experts, as applicable, filed as a part
thereof, and conformed copies of the Registration Statement (without exhibits),
the Base Prospectus, the Time of Sale Prospectus, if any, and the Prospectus
Supplement, as amended or supplemented, in such quantities and at such places
as the Placement Agent reasonably requests. 
Neither the Company nor any of its directors and officers has
distributed and none of them will distribute, prior to the Closing Date, any
offering material in connection with the offering and sale of the Securities
other than the Base Prospectus, the Time of Sale Prospectus, if any, the
Prospectus Supplement, the Registration Statement, copies of the documents
incorporated by reference therein and any other materials permitted by the
Securities Act.

 

SECTION 3.           REPRESENTATIONS
AND WARRANTIES. The Company hereby makes to the Placement Agent the
representations and warranties set forth in Article III of the Securities
Purchase Agreement of even date herewith by and among the Company and the
Purchasers.

 

SECTION 4.           ENGAGEMENT
TERM.  Rodman’s engagement hereunder
will be for the period of 45 days. The engagement may be terminated by either
the Company or Rodman at any time upon five days’ written notice and, subject
to the delivery and satisfaction (or waiver) of all closing conditions in
connection with the Placement, will be terminated automatically on the Closing
Date. Notwithstanding anything to the contrary contained herein, the provisions
concerning confidentiality, indemnification and contribution contained herein
and the Company’s obligations contained in the indemnification provisions will
survive any expiration or termination of this Agreement, and the Company’s
obligation to pay fees actually earned and payable and to reimburse expenses
actually incurred and reimbursable pursuant to Section 1 hereof, will
survive any expiration or termination of this Agreement.  Rodman agrees not to use any confidential
information concerning the Company provided to them by the Company for any
purposes other than those contemplated under this Agreement.

 

SECTION 5.           RODMAN
INFORMATION.  The Company agrees that
any information or advice rendered by Rodman in connection with this engagement
is for the confidential use of the Company only in their evaluation of the
Placement and, except as otherwise required by law or the rules and
regulations of the NASDAQ Global Select Market (the “Trading Market”), the
Company will not disclose or otherwise refer to the advice or information in
any manner without Rodman’s prior written consent; except that the Company may
file this Agreement as an exhibit to, and disclose Rodman’s role as placement
agent pursuant to this Agreement in, its filings with the Commission.

 

SECTION 6.           NO
THIRD-PARTY BENEFICIARIES; FIDUCIARY RELATIONSHIP.  This Agreement does not create, and shall not
be construed as creating, rights enforceable by any person or entity not a
party hereto, except those entitled hereto by virtue of the indemnification
provisions hereof.  The Company
acknowledges and agrees that Rodman is not and shall not be construed as a
fiduciary of the Company and shall have no duties or liabilities to the equity
holders or the creditors of the Company or any other person (other than the
Company) by virtue of this Agreement or the retention of Rodman hereunder, all
of which are hereby expressly waived.

 

4

 

SECTION 7.           CONDITIONS.  
The obligations of the Placement
Agent hereunder are subject to the accuracy in all material respects, when made
and on the Closing Date (unless as of a specified date therein), of the
representations and warranties of the Company contained herein, to the accuracy
of the statements of the Company made in any certificates delivered pursuant to
the provisions hereof, to the performance in all material respects of the
obligations of the Company hereunder required to be performed on or prior to
the Closing Date, and to each of the following additional terms and conditions:

 

(A)          No stop order
suspending the effectiveness of the Registration Statement shall have been
issued and no proceedings for that purpose shall have been initiated or threatened
by the Commission, and any request for additional information on the part of
the Commission (to be included in the Registration Statement, the Base
Prospectus or the Prospectus Supplement or otherwise) shall have been complied
with to the reasonable satisfaction of the Placement Agent.

 

(B)           The Placement Agent shall not have
discovered and disclosed to the Company on or prior to the Closing Date that
the Registration Statement, the Base Prospectus or the Prospectus Supplement or
any amendment or supplement thereto contains an untrue statement of a fact
which, in the reasonable opinion of counsel for the Placement Agent, is
material or omits to state any fact which, in the reasonable opinion of such
counsel, is material and is required to be stated therein or is necessary to
make the statements therein, in the case of the Base Prospectus or the
Prospectus, in light of the circumstances under which they were made, not
misleading.

 

(C)           All corporate proceedings and other
legal matters incident to the authorization, form, execution, delivery and
validity of each of this Agreement, the Securities, the Registration Statement,
the Base Prospectus and the Prospectus Supplement and all other legal matters
relating to this Agreement and the transactions contemplated hereby shall be
reasonably satisfactory in all material respects to counsel for the Placement
Agent, and the Company shall have furnished to such counsel all documents and
information that they may reasonably request to enable them to pass upon such matters.

 

(D)          The Placement Agent shall have
received from each of outside counsel to the Company and the general counsel to
the Company a copy of such counsel’s written opinion, addressed to the
Purchasers dated as of the Closing Date.

 

(E)           Since the date of the latest audited
financial statements included or incorporated by reference in the Base
Prospectus,  (i) neither the Company nor
any of its subsidiaries shall have sustained any material loss or interference
with its business from fire, explosion, flood, terrorist act or other calamity,
whether or not covered by insurance, or from any labor dispute or court or
governmental action, order or decree, otherwise than as set forth in or
contemplated by the Base Prospectus and (ii) there shall not have been any
material change in the capital stock or material increase in the long-term debt
of the Company or any of its subsidiaries or any material adverse change, or
any development involving a prospective material adverse change, in or
affecting the business, assets, financial condition or results of operations of
the Company and its subsidiaries, taken as a whole, otherwise than as set forth
in or contemplated by the Base Prospectus, the effect of which, in any such
case described in clause (i) or (ii), is, in the reasonable and good faith
judgment of the Placement Agent, so material and adverse as to make it
impracticable or inadvisable to proceed with the sale or delivery of the
Securities on the terms and in the manner contemplated by the Base Prospectus,
the Time of Sale Prospectus, if any, and the Prospectus Supplement.

 

5

 

(F)           The Common Stock is registered under
the Exchange Act and, as of the Closing Date, the Shares shall be listed and
admitted and authorized for trading on the Trading Market, and reasonably
satisfactory evidence of such actions shall have been provided to the Placement
Agent.  The Company shall have taken no
action designed to, or likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act or delisting or
suspending from trading the Common Stock from the Trading Market, nor has the
Company received any information suggesting that the Commission or the Trading
Market is contemplating terminating such registration or listing.

 

(G)           Subsequent to the execution and
delivery of this Agreement, there shall not have occurred any of the following:
(i) trading in securities generally on the Nasdaq Global Select Market,
the New York Stock Exchange or in the over-the-counter market, or trading in
any securities of the Company on any exchange or in the over-the-counter
market, shall have been suspended or minimum or maximum prices or maximum
ranges for prices shall have been established on any such exchange or such
market by the Commission, by such exchange or by any other regulatory body or
governmental authority having jurisdiction, (ii) a banking moratorium
shall have been declared by federal or California or New York authorities or a
material disruption shall have occurred in commercial banking or securities
settlement or clearance services in the United States, (iii) the United
States shall have become engaged in hostilities in which it is not currently
engaged or the subject of an act of terrorism, there shall have been an
escalation in hostilities involving the United States, or there shall have been
a declaration of a national emergency or war by the United States, or (iv) there
shall have occurred any other calamity or crisis or any change in general
economic, political or financial conditions in the United States or elsewhere,
if the effect of any such event in clause (iii) or (iv) makes it, in
the reasonable and good faith judgment of the Placement Agent, impracticable or
inadvisable to proceed with the sale or delivery of the Securities on the terms
and in the manner contemplated by the Base Prospectus, the Time of Sale
Prospectus, if any, and the Prospectus Supplement.

 

(H)          No action shall have been taken and no
statute, rule, regulation or order shall have been enacted, adopted or issued
by any governmental agency or body which would, as of the Closing Date, prevent
the issuance or sale of the Securities or reasonably be expected to materially
and adversely affect the business or operations of the Company; and no
injunction, restraining order or order of any other nature by any federal or
state court of competent jurisdiction shall have been issued as of the Closing
Date which would prevent the issuance or sale of the Securities or reasonably
be expected to materially and adversely affect the business or operations of
the Company.

 

(I)            The Company shall have entered into
one or more securities purchase agreements with each of the Purchasers and such
agreements shall be in full force and effect and shall contain representations
and warranties of the Company as agreed between the Company and the Purchasers.

 

(J)            FINRA shall have raised no objection
to the fairness and reasonableness of the terms and arrangements of this
Agreement.  In addition, the Company
shall, if requested by the Placement Agent, make or authorize Placement Agent’s
counsel to make on the Company’s behalf, an Issuer Filing with FINRA pursuant
to FINRA Rule 5110 with respect to the Registration Statement and pay all
filing fees required in connection therewith.

 

(K)          Prior to the Closing Date, the Company
shall have furnished to the Placement Agent such further information,
certificates and documents as the Placement Agent may reasonably request.

 

All
opinions, letters, evidence and certificates mentioned above or elsewhere in
this Agreement shall be deemed to be in compliance with the provisions hereof
only if they are in form and substance reasonably satisfactory to counsel for
the Placement Agent.

 

6

 

SECTION 8.           INDEMNIFICATION.         (A)  To the extent permitted by
law, the Company will indemnify Rodman and its affiliates, stockholders,
directors, officers, employees and controlling persons (within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act) against all
losses, claims, damages, expenses and liabilities, as the same are incurred
(including the reasonable fees and expenses of counsel), relating to or arising
out of its activities hereunder or pursuant to this Agreement, except to the
extent that any losses, claims, damages, expenses or liabilities (or actions in
respect thereof) are found in a final judgment (not subject to appeal) by a
court of law to have resulted primarily from Rodman’s willful misconduct or
gross negligence in performing the services described herein or from information
contained in or omitted from the Registration Statement, the Base Prospectus,
the Time of Sale Prospectus, if any, or Prospectus Supplement, including any
amendments or supplements thereto, in reliance upon, and in conformity with,
information furnished in writing to the Company by or on behalf of Rodman
expressly for use in or preparation thereof (and Rodman shall repay to the Company any
reimbursements or other amounts paid hereunder to the extent they are
attributable thereto).

 

(B)           To the extent permitted by law,
Rodman will indemnify the Company and its affiliates, stockholders, directors,
officers, employees and controlling persons (within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act) against all
losses, claims, damages, expenses and liabilities, as the same are incurred
(including the reasonable fees and expenses of counsel), relating to or arising
out of information contained in or omitted from the Registration Statement,
the Base Prospectus, the Time of Sale Prospectus, if any, or Prospectus
Supplement, including any amendments or supplements thereto, in reliance upon,
and in conformity with, information furnished in writing to the Company by or
on behalf of Rodman expressly for use in or preparation thereof.

 

(C)           Promptly after receipt by an
indemnified party of notice of any claim or the commencement of any action or
proceeding with respect to which the indemnified party is entitled to indemnity
hereunder, the indemnified party will notify the indemnifying party in writing
of such claim or of the commencement of such action or proceeding; provided,
however, that the failure timely to give such notice shall affect the
rights of an indemnified party hereunder only to the extent that such failure
has a material prejudicial effect on the defenses or other rights available to
the indemnifying party with respect to such claim, action or proceeding.  At election of the indemnifying party, the
indemnifying party will assume the defense of such claim, action or proceeding
and will employ counsel reasonably satisfactory to the indemnified party and
will pay the fees and expenses of such counsel. 
Notwithstanding the preceding sentence, the indemnified party will be
entitled to employ counsel separate from counsel for the indemnifying party and
from any other party in such claim, action or proceeding if counsel for the
indemnified party reasonably determines that it would be inappropriate under
the applicable rules of professional responsibility for the same counsel
to represent both the indemnifying party and the indemnified party.  In such event, the reasonable fees and
disbursements of no more than one such separate counsel will be paid by the
indemnifying party.  The indemnifying
party will have the exclusive right to settle the claim or proceeding; provided,
however, that the indemnifying party will not settle any such claim,
action or proceeding without the prior written consent of the indemnified party,
which will not be unreasonably withheld or delayed; provided, further,
that such consent shall not be required if the settlement includes a full and
unconditional release from all liability arising or that may arise out of such
claim or proceeding and does not include a statement as to or an admission of
fault, culpability or a failure to act by or on behalf of any indemnified
party.

 

7

 

(D)          The indemnifying party agrees to
notify the indemnified party promptly of the assertion against it or any other
person of any claim or the commencement of any action or proceeding relating to
a transaction contemplated by this Agreement.

 

(E)           If for any reason the foregoing
indemnity is unavailable to the indemnified party or insufficient to hold the
indemnified party harmless, then the indemnifying party shall contribute to the
amount paid or payable by the indemnified party as a result of such losses,
claims, damages or liabilities in such proportion as is appropriate to reflect
not only the relative benefits received by the indemnifying party on the one
hand and the indemnified party on the other, but also the relative fault of the
indemnifying party on the one hand and the indemnified party on the other that
resulted in such losses, claims, damages or liabilities, as well as any
relevant equitable considerations.  The
amounts paid or payable by a party in respect of losses, claims, damages and
liabilities referred to above shall be deemed to include any legal or other fees
and expenses incurred in defending any litigation, proceeding or other action
or claim.  Notwithstanding the provisions
hereof, Rodman’s share of the liability hereunder shall not be in excess of the
amount of fees actually received, or to be received, by Rodman under this
Agreement (excluding any amounts received as reimbursement of expenses incurred
by Rodman).

 

(F)           These indemnification provisions
shall remain in full force and effect whether or not the transaction
contemplated by this Agreement is completed and shall survive the termination
of this Agreement, and shall be in addition to any liability that the Company
might otherwise have to any indemnified party under this Agreement or
otherwise.

 

SECTION 9.           GOVERNING
LAW.  This Agreement will be governed
by, and construed in accordance with, the laws of the State of New York
applicable to agreements made and to be performed entirely in such State.  This Agreement may not be assigned by either
party without the prior written consent of the other party.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto, and their respective successors and
permitted assigns. To the extent permitted by applicable law, any right to
trial by jury with respect to any dispute arising under this Agreement or any
transaction or conduct in connection herewith is waived.  Each party hereto hereby irrevocably waives
personal service of process and consents to process being served in any such
suit, action or proceeding by delivering a copy thereof via overnight delivery
(with evidence of delivery) to such party at the address in effect for notices
to it under this Agreement and agrees that such service shall constitute good
and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to
limit in any way any right to serve process in any manner permitted by law. If
either party shall commence an action or proceeding to enforce any provisions
of a Transaction Document, then the prevailing party in such action or proceeding
shall be reimbursed by the other party for its attorneys’ fees and other costs
and expenses incurred with the investigation, preparation and prosecution of
such action or proceeding.

 

SECTION 10.         ENTIRE
AGREEMENT/MISC.  This Agreement
embodies the entire agreement and understanding between the parties hereto, and
supersedes all prior agreements and understandings, relating to the subject
matter hereof, except for the confidentiality agreement between Rodman and the
Company, dated August 5, 2009, which shall remain in full force and effect
in accordance with its terms.  If any
provision of this Agreement is determined to be invalid or unenforceable in any
respect, such determination will not affect such provision in any other respect
or any other provision of this Agreement, which will remain in full force and
effect.  This Agreement may not be
amended or otherwise modified or waived except by an instrument in writing
signed by both Rodman and the Company. 
The representations, warranties, agreements and covenants contained
herein shall survive the closing of the Placement and delivery and/or exercise
of the Securities, as applicable.  This
Agreement may be executed in two or more counterparts, all of which when taken
together shall be considered one 

 

8

 

and the same agreement
and shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not
sign the same counterpart.  In the event
that any signature is delivered by facsimile transmission or a .pdf format
file, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force
and effect as if such facsimile or .pdf signature page were an original
thereof.

 

SECTION 11.         NOTICES.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (a) the
date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified on the signature pages attached
hereto prior to 6:30 p.m. (New York City time) on a business day, (b) the
next business day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number on the
signature pages attached hereto on a day that is not a business day or
later than 6:30 p.m. (New York City time) on any business day, (c) the
business day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service, or (d) upon actual receipt by the
party to whom such notice is required to be given.  The address for such notices and communications
shall be as set forth on the signature pages hereto.

 

Please confirm that the
foregoing correctly sets forth our agreement by signing and returning to Rodman
a copy of this Agreement.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  RODMAN & RENSHAW, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward Rubin

  
	
   

  	
   

  	
  Name: Edward Rubin

  
	
   

  	
   

  	
  Title: CEO

  
	
   

  	
   

  
	
   

  	
  Address for notice:

  
	
   

  	
  1251
  Avenue of the Americas, 20th Floor

  
	
   

  	
  New
  York, New York, 10020

  
	
   

  	
  Fax:
  (646) 841-1640

  
	
   

  	
  Attention: General
  Counsel

  

 

9

 

Accepted and
agreed to as of

the date first
written above:

 

	
  PACWEST BANCORP

  
	
   

  
	
  By:

  	
  /s/ Jared M. Wolff

  	
   

  
	
   

  	
  Name: Jared M. Wolff

  	
   

  
	
   

  	
  Title: Executive Vice
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address for notice:

  
	
  10250 Constellation
  Blvd, Suite 1640

  
	
  Los Angeles, CA 90067

  
	
  Fax: (310) 201-0498

  
	
  Attention: General
  Counsel

  

 

10

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