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Exhibit 10(cc)    
  

Relocation Program Description  

        The Company offers a relocation program (the "Relocation Program") for eligible employees, including executive officers, who relocate at the Company's request and,
in appropriate circumstances, to eligible new employees who relocate in connection with their employment by the Company. The Company believes this program offers a valuable incentive to attract and
retain key employees. 

        Effective
July 30, 2002, the Relocation Program was revised in response to Sarbanes-Oxley to eliminate certain loan benefits for executive officers who relocate at the Company's
request. The following description of the Relocation Program describes benefits available to eligible executive officers prior to this date, and the revisions made to the program for executive
officers in response to Sarbanes-Oxley. The relocation benefits made available prior to July 30, 2002, to eligible executive officers, as described below, continue to be made available to
eligible employees who are not executive officers of the Company. 

        Prior
to July 30, 2002, executive officers who relocated were eligible to receive a first mortgage loan (subject to applicable lending guidelines) from Wells Fargo Home
Mortgage, Inc. (WFHMI) on the same terms as those available to any employee of the Company, which terms include a waiver of the loan origination fee. In addition, prior to July 30, 2002,
executive officers who relocated to a designated high cost area (or in certain limited circumstances to a location not designated as a high cost area) may have received from the Company a mortgage
interest subsidy on the first mortgage loan of up to 25% of the executive's annual base salary, payable over a period not less than the first three years of the first mortgage loan, and a
30-year, interest-free second mortgage down payment loan in an amount up to 100% of his or her annual base salary to purchase a new primary residence. The second mortgage loan
must be repaid in full if the executive terminates employment with the Company or retires, or if the executive sells the residence. A relocating executive officer may have also received a transfer
bonus of up to 30% of the executive's base salary. 

        On
and after July 30, 2002, executive officers are still eligible (subject to applicable lending criteria) to receive a first mortgage loan from WFHMI, except that the loan must
be on the same terms as those available to any residential home mortgage customer. However, executive officers are no longer eligible for a mortgage interest subsidy from the Company relating to the
first mortgage loan on, or an interest-free second mortgage down payment loan for the purchase of a new primary residence. Under the revised Relocation Program, the Company may pay a
relocating executive officer a transfer bonus in an amount determined by senior management on the earlier of the date he or she commences employment or purchases a new home. Any executive officer who
had received the mortgage interest subsidiary and interest-free down payment loan benefit prior to July 30, 2002, pursuant to the Relocation Program may continue to receive such
benefits, but may not amend the terms of the loan to which these benefits relate. 

        For
many relocations made at the Company's request, the Company pays all related home purchase closing costs and household goods moving expenses for the relocating executive officer. The
Relocation Program also assists eligible relocating executives in defraying costs associated with selling their current residences. Available benefits may include payment of selling costs customarily
incurred by a seller of residential real estate (such as real estate commissions, title and appraisal fees, and other routine closing costs), purchase of the relocating executive's home at its
appraised market value by a third party relocation company using Company funds, and certain cash incentives to executives who locate buyers for their homes directly. 

        With
the exception of expenses paid to or on behalf of the executive officer to move household goods and sell his or her home, the benefits described above (other than the mortgage
loans) are treated as taxable income to the executive. The Relocation Program also includes, as a potential additional benefit, reimbursement of the amount of taxes paid on the taxable portion of
amounts received by the executive under the Relocation Program. 

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Exhibit 10(cc)Exhibit 10.13

 

CENTRAL PACIFIC BANK

SUPPLEMENTAL RETIREMENT AGREEMENT

 

THIS AGREEMENT is adopted
this 28th day of June, 2002, by and between CENTRAL PACIFIC BANK, a
state-chartered commercial bank located in Honolulu, Hawaii (the “Company”),
and JOICHI SAITO (the “Executive”).

 

INTRODUCTION

 

To provide supplemental
retirement benefits to the Executive for his years of service to the Company,
the Company is willing to provide the benefits contained in this Agreement to
the Executive. The Company will pay the benefits from its general assets.

 

AGREEMENT

 

The Company and the
Executive agree as follows:

 

Article 1

Definitions

 

Whenever used in this
Agreement, the following words and phrases shall have the meanings specified:

 

1.1         “Code” means the Internal Revenue Code of 1986, as amended.

 

1.2         “Normal Retirement Date”
means the June 30, 2002.

 

1.3         “Plan Year”
means a twelve-month period commencing on July 1 and ending on June 30 of each
year.  The initial Plan Year shall
commence on July 1, 2002.

 

1.4         “Termination for Cause”
See Article 5.

 

1.5         “Termination of
Employment” means that the Executive ceases to be employed by the
Company for any reason, voluntary or involuntary, other than by reason of a
leave of absence approved by the Company.

 

1

 

Article 2

Lifetime Benefits

 

2.1         Normal Retirement Benefit.
Upon Termination of Employment on or after the Normal Retirement Date for
reasons other than death, the Company shall pay to the Executive the benefit
described in this Section 2.1 in lieu of any other benefit under this
Agreement.

 

2.1.1     Amount
of Benefit. The annual benefit under this Section 2.1 is $75,000.
The Company’s Board of Directors, in its sole discretion, may increase the
annual benefit under this Section 2.1.1.

 

2.1.2     Payment of Benefit. The Company
shall pay the annual benefit to the Executive in 12 equal monthly installments
commencing with the month following the Executive’s Normal Retirement Date,
paying the annual benefit to the Executive for his remaining lifetime, or to
his beneficiary for her remaining lifetime or June 2020, whichever comes first.

 

Article 3

Death Benefits

 

3.1         Death During Active
Service. If the Executive dies while in the active service of the
Company, the Company shall pay to the Executive’s beneficiary the benefit
described in this Section 3.1. This benefit shall be paid in lieu of the
benefits under Article 2.

 

3.1.1     Amount
of Benefit. The annual benefit under this Section 3.1 is the Normal
Retirement Benefit amount described in Section 2.1.1.

 

3.1.2     Payment of Benefit. The Company
shall pay the annual to the Executive’s Beneficiary in 12 equal monthly
installments commencing with the month following the Executive’s death, paying
the annual benefit to the Executive’s beneficiary for her remaining lifetime or
until June 2020, whichever comes first.

 

3.2         Death During Payment of a
Lifetime Benefit. If the Executive dies after any Lifetime Benefit
payments have commenced under this Agreement but before receiving all such
payments, the Company shall pay the benefits to the Executive’s Beneficiary at
the same time and in the same amounts that would have been paid to the
Executive for the Beneficiary’s remaining lifetime or up to June 2020,
whichever comes first. If the Beneficiary does survive the Executive, then the
Beneficiary, has the right to petition the Company for an alternative form of
payment. However, the Company has complete and total authority regarding the
decision to grant an alternative form of payment. However, if the Beneficiary
does not survive the death of the Executive, then all remaining benefit
payments will cease.

 

2

 

Article 4

Beneficiary

 

4.1         Beneficiary.
The beneficiary of the Executive shall be Ms. Yoko Saito.

 

Article 5

General Limitations

 

5.1         Termination for Cause.
Notwithstanding any provision of this Agreement to the contrary, the Company
shall not pay any benefit under this Agreement if the Company either (i)
terminates the Executive’s employment prior to the Normal Retirement Date for,
or (ii) while paying Lifetime Benefits determines that the Executive committed
one of the following acts while in the employ of the Company prior to the
Normal Retirement date:

 

(a)        Gross negligence or gross neglect of duties;

 

(b)        Commission of a felony or of a gross misdemeanor involving
moral turpitude; or

 

(c)        Fraud, disloyalty, dishonesty or willful
violation of any law or significant Company policy committed in connection with
the Executive’s employment and resulting in an adverse effect on the Company.

 

Article 6

Claims and Review Procedures

 

6.1         Claims Procedure.
An Executive or beneficiary (“claimant”) who has not received benefits under
the Agreement that he or she believes should be paid shall make a claim for
such benefits as follows:

 

6.1.1     Initiation
– Written Claim. The claimant initiates a claim by submitting to the
Company a written claim for the benefits.

 

6.1.2     Timing of Company Response. The Company
shall respond to such claimant within 90 days after receiving the claim. If the
Company determines that special circumstances require additional time for
processing the claim, the Company can extend the response period by an
additional 90 days by notifying the claimant in writing, prior to the end of
the initial 90-day period, that an additional period is required. The notice of
extension must set forth the special circumstances and the date by which the
Company expects to render its decision.

 

6.1.3     Notice
of Decision. If the Company denies part or all of the claim, the
Company shall notify the claimant in writing of such denial. The Company shall
write the notification in a manner calculated to be understood by the claimant.
The notification shall set forth:

 

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(a)        The specific reasons for the denial;

 

(b)        A reference to the specific provisions
of the Agreement on which the denial is based;

 

(c)        A description of any additional
information or material necessary for the claimant to perfect the claim and an
explanation of why it is needed;

 

(d)        An explanation of the Agreement’s review
procedures and the time limits applicable to such procedures; and

 

(e)        A statement of the claimant’s right to
bring a civil action under ERISA Section 502(a) following an adverse benefits
determination on review.

 

6.2         Review Procedure.
If the Company denies part or all of the claim, the claimant shall have the
opportunity for a full and fair review by the Company of the denial, as
follows:

 

6.2.1     Initiation
– Written Request. To initiate the review, the claimant, within 60
days after receiving the Company’s notice of denial, must file with the Company
a written request for review.

 

6.2.2     Additional
Submissions – Information Access. The claimant shall then have the
opportunity to submit written comments, documents, records and other
information relating to the claim. The Company shall also provide the claimant,
upon request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant (as defined in applicable
ERISA regulations) to the claimant’s claim for benefits.

 

6.2.3     Considerations on Review. In
considering the review, the Company shall take into account all material and
information the claimant submits relating to the claim, without regard to
whether such information was submitted or considered in the initial benefit
determination.

 

6.2.4     Timing of Company Response. The Company
shall respond in writing to such claimant within 60 days after receiving the
request for review. If the Company determines that special circumstances
require additional time for processing the claim, the Company can extend the
response period by an additional 60 days by notifying the claimant in writing,
prior to the end of the initial 60-day period, that an additional period is
required. The notice of extension must set forth the special circumstances and
the date by which the Company expects to render its decision.

 

6.2.5     Notice of Decision. The Company
shall notify the claimant in writing of its decision on review. The Company
shall write the notification in a manner calculated to be understood by the
claimant. The notification shall set forth:

 

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(a)        The specific reasons for the denial;

 

(b)        A reference to the specific provisions
of the Agreement on which the denial is based;

 

(c)        A statement that the claimant is
entitled to receive, upon request and free of charge, reasonable access to, and
copies of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the claimant’s claim for benefits; and

 

(d)        A statement of the claimant’s right to
bring a civil action under ERISA Section 502(a).

 

Article 7

Amendments and Termination

 

This Agreement may be
amended or terminated only by a written agreement signed by the Company and the
Executive.

 

Article 8

Miscellaneous

 

8.1         Binding Effect.
This Agreement shall bind the Executive and the Company, and their
beneficiaries, survivors, executors, successors, administrators and transferees.

 

8.2         No Guarantee of
Employment. This Agreement is not an employment policy or contract.
It does not give the Executive the right to remain an employee of the Company,
nor does it interfere with the Company’s right to discharge the Executive. It
also does not require the Executive to remain an employee nor interfere with
the Executive’s right to terminate employment at any time.

 

8.3         Non-Transferability.
Benefits under this Agreement cannot be sold, transferred, assigned, pledged,
attached or encumbered in any manner.

 

8.4         Reorganization.
The Company shall not merge or consolidate into or with another company, or
reorganize, or sell substantially all of its assets to another company, firm,
or person unless such succeeding or continuing company, firm, or person agrees
to assume and discharge the obligations of the Company under this Agreement.
Upon the occurrence of such event, the term “Company” as used in this Agreement
shall be deemed to refer to the successor or survivor company.

 

8.5         Tax Withholding.
The Company shall withhold any taxes that are required to be withheld from the
benefits provided under this Agreement.

 

5

 

8.6         Applicable Law.
The Agreement and all rights hereunder shall be governed by the laws of the
State of Hawaii, except to the extent preempted by the laws of the United
States of America.

 

8.7         Unfunded Arrangement.
The Executive and beneficiary are general unsecured creditors of the Company
for the payment of benefits under this Agreement. The benefits represent the
mere promise by the Company to pay such benefits. The rights to benefits are
not subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment, or garnishment by creditors. Any insurance
on the Executive’s life is a general asset of the Company to which the
Executive and beneficiary have no preferred or secured claim.

 

8.8         Entire Agreement.
This Agreement constitutes the entire agreement between the Company and the
Executive as to the subject matter hereof. No rights are granted to the
Executive by virtue of this Agreement other than those specifically set forth
herein.

 

8.9         Administration.
The Company shall have powers which are necessary to administer this Agreement,
including but not limited to:

 

(a)        Establishing and revising the method of accounting for the
Agreement;

 

(b)        Maintaining a record of benefit payments;

 

(c)        Establishing rules and prescribing any forms necessary or
desirable to administer the Agreement; and

 

(d)        Interpreting the provisions of the Agreement.

 

8.10       Named Fiduciary.
The Company shall be the named fiduciary and plan administrator under this
Agreement. It may delegate to others certain aspects of the management and
operational responsibilities including the employment of advisors and the
delegation of ministerial duties to qualified individuals.

 

IN WITNESS WHEREOF, the
Executive and the Company have signed this Agreement.

 

	
  EXECUTIVE

  	
   

  	
  Central
  Pacific Bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Joichi Saito

  	
   

  	
  /s/ Neal K. Kanda

  
	
  Joichi Saito

  	
   

  	
  Neal K.
  Kanda

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Executive
  Vice President

  

 

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