Document:

Exhibit 10.30

 

AMC ENTERTAINMENT HOLDINGS, INC.

ANNUAL INCENTIVE COMPENSATION PROGRAM

CONTINUING STRUCTURE

(As Modified by the Compensation Committee February 24, 2016)

 

AMC Entertainment Holdings, Inc. (along with all of its subsidiaries, the “Corporation”) shall have an Annual Incentive Compensation Program (“AIP”) structured as set forth below.  The AIP shall automatically be continued for each of the Corporation’s fiscal years until terminated or revised by the Compensation Committee.

 

1.              Structure:  Each participant shall have an incentive at target based upon a percentage of his or her base salary (the “Incentive at Target”).  The Incentive at Target shall be allocated between (i) a component paid out based upon attainment of the Company Performance Target (defined below) during the applicable fiscal year (the “Company Component”) and (ii) a component paid out based on the participant’s achievement of individual Key Performance Metrics with supervisory discretion during the applicable fiscal year (the “Individual Component”).

 

2.              Participation:

 

a.                   Named Executive Officers:  The Corporation’s Named Executive Officers (as determined pursuant to SEC Rules), shall participate in the AIP at the following Incentive at Target levels and allocations:

 

	
Name
    	
 
    	
Position
    	
 
    	
Target
   (% of Salary)
    	
 
    	
Mix
   Company/Individual
    	
 
    
	
Adam Aron
    	
 
    	
President & CEO
    	
 
    	
125
    	
%
    	
100/0
    	
 
    
	
Craig Ramsey
    	
 
    	
EVP & Chief Financial Officer
    	
 
    	
70
    	
%
    	
100/0
    	
 
    
	
John McDonald
    	
 
    	
EVP, US Operations
    	
 
    	
70
    	
%
    	
80/20
    	
 
    
	
Elizabeth Frank
    	
 
    	
EVP, Chief Content & Programming Officer
    	
 
    	
65
    	
%
    	
80/20
    	
 
    
	
Mark McDonald
    	
 
    	
EVP, Development
    	
 
    	
65
    	
%
    	
80/20
    	
 
    

 

b.                   Other Employees:  All other participants along with their Incentive at Target level and allocation shall be determined at the discretion of the CEO in consultation with the SVP Human Resources.

 

3.              Payout:  Unless otherwise provided in a written agreement with the employee, an employee must remain employed on the last day of the applicable fiscal year to be eligible for any payout under the AIP and employees hired after the beginning of the applicable fiscal year shall have their payouts prorated.

 

a.                   Company Component:  The Company Component payout shall be determined based upon the attainment as certified by the Compensation Committee of the Company Performance Target.

 

i.                      Company Performance Target:  The Company Performance Target (adopted pursuant to Section 10 of the Corporation’s 2013 Equity Incentive Plan) shall be the Adjusted EBITDA (as defined in the Corporation’s 10-K) provided for in the Corporation’s annual financial performance plan for the applicable fiscal year as approved by the Board of Directors (the “Financial Plan”).

 

 

iii.              Payout Scale:  The Company Component payout shall be on a scale as set forth on Exhibit A attached hereto (payout for performance that falls between two stated levels shall be determined by linear interpolation).

 

iv.               Supplemental Net Income Threshold for the CEO & CFO:  The Compensation Committee shall have discretion with regard to the CEO and CFO to reduce the Company Component Payout as provided above in the event the Corporation fails to achieve at least 80% of the net income provided for in the Financial Plan (the “Net Income Threshold”).  Determination of achievement of the Net Income Threshold shall be made by the Compensation Committee, but shall exclude the impacts of the following:

 

1.                   Gains or losses from the Corporation’s investment in National Cinemedia LLC, including gains or losses from the sale or disposition of all or a portion of the Corporation’s ownership interest (including as-converted shares of National Cinemedia, Inc.) or from adjustments due to changes in the underlying value of the shares of National Cinemedia, Inc.

 

2.                   Losses from discontinued Canadian operations.

 

3.                   Expenses related to mergers and acquisitions approved by the Board.

 

4.                   Gains or losses from Board approved refinancing of debt obligations related to acquisition activity and/or resulting in lower outstanding debt or cash interest expense.

 

5.                   Gains or losses from one time significant or unusual items, subject to Compensation Committee review and approval.

 

b.                   Individual Component:  The Individual Component payout shall be determined as follows:

 

i.                      Named Executive Officers:  The payout shall be determined by the Compensation Committee in consultation with the CEO.

 

ii.                  Other Participants:  The payout shall be determined by each participant’s supervisor subject to parameters established by the CEO in consultation with the SVP Human Resources.

 

 

EXHIBIT A

 

PAYOUT SCALE

 

	
 
    	
AEBITDA
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Attained
    	
 
    	
PAYOUT
    	
 
    	
 
    
	
 
    	
%
    	
 
    	
%
    	
 
    	
 
    
	
 
    	
80.0
    	
%
    	
0.0
    	
%
    	
 
    
	
 
    	
81.0
    	
%
    	
10.0
    	
%
    	
 
    
	
 
    	
82.0
    	
%
    	
20.0
    	
%
    	
 
    
	
 
    	
83.0
    	
%
    	
30.0
    	
%
    	
 
    
	
 
    	
84.0
    	
%
    	
40.0
    	
%
    	
 
    
	
 
    	
85.0
    	
%
    	
45.0
    	
%
    	
 
    
	
 
    	
86.0
    	
%
    	
50.0
    	
%
    	
 
    
	
 
    	
87.0
    	
%
    	
56.0
    	
%
    	
 
    
	
 
    	
88.0
    	
%
    	
62.0
    	
%
    	
 
    
	
 
    	
89.0
    	
%
    	
68.0
    	
%
    	
 
    
	
 
    	
90.0
    	
%
    	
74.0
    	
%
    	
 
    
	
 
    	
91.0
    	
%
    	
80.0
    	
%
    	
 
    
	
 
    	
92.0
    	
%
    	
86.0
    	
%
    	
 
    
	
 
    	
93.0
    	
%
    	
89.0
    	
%
    	
 
    
	
 
    	
94.0
    	
%
    	
92.0
    	
%
    	
 
    
	
 
    	
94.8
    	
%
    	
94.4
    	
%
    	
 
    
	
 
    	
95.0
    	
%
    	
95.0
    	
%
    	
 
    
	
 
    	
96.0
    	
%
    	
96.0
    	
%
    	
 
    
	
 
    	
97.0
    	
%
    	
97.0
    	
%
    	
 
    
	
 
    	
98.0
    	
%
    	
98.0
    	
%
    	
 
    
	
 
    	
99.0
    	
%
    	
99.0
    	
%
    	
 
    
	
 
    	
100.0
    	
%
    	
100.0
    	
%
    	
 
    
	
 
    	
101.0
    	
%
    	
105.0
    	
%
    	
 
    
	
 
    	
102.0
    	
%
    	
110.0
    	
%
    	
 
    
	
 
    	
103.0
    	
%
    	
115.0
    	
%
    	
 
    
	
 
    	
104.0
    	
%
    	
120.0
    	
%
    	
 
    
	
 
    	
105.0
    	
%
    	
125.0
    	
%
    	
 
    
	
 
    	
106.0
    	
%
    	
130.0
    	
%
    	
 
    
	
 
    	
107.0
    	
%
    	
135.0
    	
%
    	
 
    
	
 
    	
108.0
    	
%
    	
140.0
    	
%
    	
 
    
	
 
    	
109.0
    	
%
    	
145.0
    	
%
    	
 
    
	
 
    	
110.0
    	
%
    	
150.0
    	
%
    	
 
    
	
 
    	
111.0
    	
%
    	
155.0
    	
%
    	
 
    
	
 
    	
112.0
    	
%
    	
160.0
    	
%
    	
 
    
	
 
    	
113.0
    	
%
    	
165.0
    	
%
    	
 
    
	
 
    	
114.0
    	
%
    	
170.0
    	
%
    	
 
    
	
 
    	
115.0
    	
%
    	
175.0
    	
%
    	
 
    
	
 
    	
116.0
    	
%
    	
180.0
    	
%
    	
 
    
	
 
    	
117.0
    	
%
    	
185.0
    	
%
    	
 
    
	
 
    	
118.0
    	
%
    	
190.0
    	
%
    	
 
    
	
 
    	
119.0
    	
%
    	
195.0
    	
%
    	
 
    
	
 
    	
120.0
    	
%
    	
200.0
    	
%Exhibit 10.31

 

AMC ENTERTAINMENT HOLDINGS, INC.

 

2013 EQUITY INCENTIVE PLAN

 

Performance Stock Unit Award Notice

 

	
1.
    	
 
    	
Participant:
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Type of Award:
    	
 
    	
Performance Stock Units
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Target Units:
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Maximum Units:
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Subject to reduction to satisfy tax withholding obligations as   and when due pursuant to Section 3(c) of the Performance Stock Unit   Award Agreement
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
Date of Grant:
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
Vesting:
    	
 
    	
The Performance Stock Units are eligible to vest in [*] as set   forth in Section 2 of the Performance Stock Unit Award Agreement.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
Performance Goal(s):
    	
 
    	
Vesting of the Performance Stock Units shall be subject to the   following Performance Goal(s) as set forth in Section 2 of the   Performance Stock Unit Award Agreement:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
[*]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.
    	
 
    	
Settlement:
    	
 
    	
Each Performance Stock Unit shall be convertible into one share   of Common Stock within 30 days of vesting subject to Section 3 of the   Performance Stock Unit Award Agreement.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
9.
    	
 
    	
Dividend Equivalents:
    	
 
    	
The Performance Stock Units shall be entitled to dividend   equivalents as set forth in Section 1 of the Performance Stock Unit   Award Agreement.
    

 

By executing this Performance Stock Unit Award Notice, the Participant agrees and acknowledges that the Performance Stock Units described herein are granted under and governed by the terms and conditions of the Performance Stock Unit Award Agreement attached hereto and the AMC Entertainment Holdings, Inc. 2013 Equity Incentive Plan, both of which are hereby incorporated by reference and together with this Performance Stock Unit Award Notice constitute one document.  This Performance Stock Unit Award Notice may be signed in counterparts, each of which shall be an original with the same effect as if signatures thereto and hereto were upon the same instrument.

 

	
PARTICIPANT
    	
 
    	
AMC   ENTERTAINMENT HOLDINGS, INC.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
[*]
    	
 
    	
Name:
    	
[*]
    
	
 
    	
 
    	
 
    	
Title:
    	
[*]
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

AMC ENTERTAINMENT HOLDINGS, INC.

 

2013 EQUITY INCENTIVE PLAN

 

Performance Stock Unit Award Agreement

 

[*]

 

SECTION 1.                         GRANT OF PERFORMANCE STOCK UNIT AWARD.

 

(a)               Performance Stock Unit Award.  AMC Entertainment Holdings, Inc. (the “Company”) hereby grants to the Participant whose name is set forth on the applicable Performance Stock Unit Award Notice (the “Notice”) on the date set forth on such Notice (such date, the “Date of Grant”), Performance Stock Units (the “Units”) in an amount set forth in the Notice, pursuant to the terms and conditions set forth in the Notice, this agreement (the “Agreement”) and the AMC Entertainment Holdings, Inc. 2013 Equity Incentive Plan (the “Plan”).  The Units are intended to constitute “qualified performance-based compensation” as that term is used in Section 162(m) of the Code, which Units shall be subject to the terms and conditions of Section 10 of the Plan.

 

(b)               No Purchase Price.  In lieu of a purchase price, this Award is made in consideration of Service previously rendered, and to be rendered, by the Participant to the Company.

 

(c)                Equity Incentive Plan and Defined Terms. Capitalized terms not defined herein shall have the same meaning as in the Plan.  In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

 

(d)               Dividend Equivalents.  Each Unit held as of the record date for dividends or other distributions paid in respect of shares of Common Stock shall be entitled to a dividend equivalent equal to the amount paid in respect of one share of Common Stock.  Prior to vesting, such dividend equivalents shall accumulate and be paid within thirty (30) days following the date and to the extent the Units vest.  All rights to dividend equivalents shall be forfeited along with and to the extent the Units are forfeited.

 

SECTION 2.                         VESTING AND FORFEITURE; PERFORMANCE GOALS

 

(a)               Vesting and Forfeiture.  Unless earlier forfeited, all or a portion of the Maximum Units (as set forth on the Notice) are eligible to vest based upon [*] for the [*] beginning [*] and ending [*] (the “Performance Period”).  Unless otherwise provided in a written employment agreement with the Participant in effect as of the Date of Grant, all Units shall be immediately forfeited upon termination of the Participant’s Service for any reason prior to the last day of the Performance Period.  Each Unit that becomes vested in accordance with Section 2(a) shall be referred to herein as a “Vested Unit”.  Each Unit that does not become a Vested Unit shall be forfeited and canceled immediately without consideration as of the Vesting Date.

 

(b)               Performance Goals.  The Committee shall determine, in its sole discretion, and certify in writing whether and the extent to which the Performance Goal(s) were achieved with respect to the Performance Period.  Such determination and certification shall occur as soon as practicable following the receipt of the Company’s financial statements for the applicable Performance Period.  For the avoidance of doubt, the Committee may adjust the Performance Goal(s) (including, without limitation, to prorate goals and payments for a partial plan year) pursuant to Section 10.5 of the Plan and subject to compliance with Section 162(m) of the Code.

 

SECTION 3.                         SETTLEMENT OF PERFORMANCE STOCK UNITS

 

(a)               Time of Settlement.  Subject to the terms of the Plan and this Agreement, each Unit shall be settled within thirty (30) days following vesting (each a “Settlement Date”).  On the Settlement Date, the applicable Units shall be converted into an equivalent number of shares of Common Stock that will be immediately distributed to the Participant (or the Participant’s legal representative). With regard to shares of Common Stock delivered on the Settlement Date, the Company may at its election either (i) issue a certificate representing the shares, or (ii) not issue any certificate representing the shares and

 

 

instead document the Participant’s interest by registering the shares with the Company’s transfer agent (or another custodian selected by the Company) in book-entry form.

 

(b)               Delay of Settlement.  Notwithstanding Section 3(a), the Settlement Date may be delayed where the Company reasonably anticipates that the settlement of the Vested Units will violate Federal securities laws or other applicable law; provided that the Vested Units shall be settled at the earliest date at which the Company reasonably anticipates that the settlement will not cause such violation.  For purposes of this Section 3(b), the making of a payment that would cause inclusion in gross income or the application of any penalty provision of the Code shall not be treated as a violation of applicable law.

 

(c)                Withholding Requirements.  As of the date any withholding tax is paid by the Company on behalf of the Participant with regard to the Units (a “Taxable Date”), the Company shall accelerate settlement and withhold shares of Common Stock with a Fair Market Value on the Taxable Date equal to the minimum amount of the applicable tax withholding, plus any minimum tax withholding liability incurred as a result of such acceleration; provided that, in connection with taxes owed on the Settlement Date, the Participant may elect at any time no later than five (5) business days prior to the Settlement Date to satisfy any withholding requirement by remitting to the Company an amount in cash equal to the minimum applicable tax withholding in connection with the settlement of the Vested Units.

 

SECTION 4.                         MISCELLANEOUS PROVISIONS.

 

(a)               Securities Laws. Subject to Section 3(b), no shares of Common Stock will be issued or transferred pursuant to this Agreement unless and until all then applicable requirements imposed by Federal and state securities and other laws, rules and regulations and by any regulatory agencies having jurisdiction, and by any exchanges upon which the shares of Common Stock may be listed, have been fully met.  As a condition precedent to the issuance of shares of Common Stock pursuant to this Agreement, the Company may require the Participant to take any reasonable action to meet such requirements.  The Committee may impose such conditions on any shares of Common Stock issuable pursuant to this Agreement as it may deem advisable, including, without limitation, restrictions under the Securities Act of 1933, as amended, under the requirements of any exchange upon which such shares of the same class are then listed, and under any blue sky or other securities laws applicable to such shares.  The Committee may also require the Participant to represent and warrant at the time of issuance or transfer that the shares of Common Stock are being acquired only for investment purposes and without any current intention to sell or distribute such shares.

 

(b)               Participant Undertaking.  The Participant agrees to take whatever additional action and execute whatever additional documents the Company may deem necessary or advisable to carry out or effect the obligations or restrictions imposed on either the Participant or upon the shares of Common Stock issued pursuant to this Agreement.

 

(c)                No Right to Continued Service. Nothing in this Agreement or the Plan shall confer upon the Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Subsidiary employing or retaining the Participant) or of the Participant, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without Cause.

 

(d)               Notification. Any notification required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or within three (3) days of deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. A notice shall be addressed to the Company at its principal executive office and to the Participant at the address that he or she most recently provided to the Company.

 

(e)                Entire Agreement. This Agreement, the Notice and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof.

 

3

 

(f)                 Waiver. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature.

 

(g)                Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the Participant, the Participant’s assigns and the legal representatives, heirs and legatees of the Participant’s estate, whether or not any such person shall have become a party to this Agreement and have agreed in writing to be joined herein and be bound by the terms hereof.

 

(h)               Severability.  The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

 

(i)                   Amendment.  This Agreement shall not be amended unless such amendment is agreed to in writing by both the Participant and the Company.

 

(j)                  Governing Law. This Agreement and all rights hereunder shall be subject to and interpreted in accordance with the laws of the State of Delaware, without reference to the principles of conflicts of laws, and to applicable Federal securities laws.

 

(k)               Section 409A Compliance.  To the extent applicable, it is intended that the Units comply with the requirements of Section 409A of the Code and the Treasury Regulations and other guidance, compliance programs and other interpretive authority thereunder (“Section 409A”), and that this Agreement shall be interpreted and applied by the Committee in a manner consistent with this intent in order to avoid the imposition of any additional tax under Section 409A.  In the event that (i) any provision of this Agreement, (ii) the Units or any payment or transaction in respect of the Units or (iii) other action or arrangement contemplated by the provisions of this Agreement is determined by the Committee to not comply with the applicable requirements of Section 409A, the Committee shall have the authority to take such actions and to make such changes to this Agreement as the Committee deems necessary to comply with such requirements.  No payment that constitutes deferred compensation under Section 409A that would otherwise be made under this Agreement upon a termination of Service will be made or provided unless and until such termination is also a “separation from service,” as determined in accordance with Section 409A.  Notwithstanding the foregoing or anything elsewhere in this Agreement to the contrary, if the Participant is a “specified employee” as defined in Section 409A at the time of termination of Service with respect to the Units, then solely to the extent necessary to avoid the imposition of any additional tax under Section 409A, the commencement of any payments or benefits under the Units shall be deferred until the date that is six months following the Participant’s termination of Service (or, if earlier, the date of death of the Participant).  Notwithstanding anything to the contrary in this Agreement, dividend equivalents shall be paid no later than the March 15 following the calendar year during which the Participant first acquires a vested, legally binding right to receive the dividend equivalent.  In no event whatsoever shall the Company be liable for any additional tax, interest or penalties that may be imposed on the Participant by Section 409A or any damages for failing to comply with Section 409A.

 

4

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