Document:

EXHIBIT
10.21

 

PROMISSORY NOTE

 

	
  $100,000

  	
   

  	
  Santa Clara, CA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  September 1, 2001

  

For
Value Received,  the undersigned,
Stephen T. Lanza (“Borrower”), promises to pay to NeoMagic Corporation,
a Delaware corporation (the “Company”), the principal sum of One Hundred
Thousand Dollars ($100,000), with interest from the date hereof at a rate of
four and (82/100) percent (4.82%) per annum, interest and principal payable on
September 1, 2006.  All money paid
toward the satisfaction of this Note shall be applied first to the payment of
interest as required hereunder and then to the retirement of principal.

This
Note is a full recourse note against Borrower, and is secured by the net
after-tax proceeds of shares of Common Stock of the Company, pursuant to that
certain Security Agreement dated as of the date hereof.

Borrower
further agrees that, in the event that Borrower’s status as an employee or a
consultant with the Company (including a parent or subsidiary of the Company)
is terminated for any reason whatsoever prior to payment in full of this Note,
the payment and maturity of this Note shall, upon written notice of the
Company, be accelerated and all remaining unpaid principal and interest shall
become due and payable immediately upon the 45th day following the date of
mailing or personal delivery of such notice of the Company.

Subject
to any separate employment agreement between Borrower and Company, Borrower
understands and acknowledges that this Note does not modify Borrower’s at-will
status at the Company and does not constitute an employment agreement or a
promise by the Company to continue Borrower’s employment.  Either the Company or the Borrower may
terminate such employment relationship at any time, with or without cause.

If
an action is instituted for collection of this Note, Borrower agrees to pay
court costs and reasonable attorneys’ fees incurred by the holder hereof.

This
Note may be prepaid at any time without penalty.  This Note shall be binding upon and inure to the benefit of the
Company’s successors and assigns and Borrower’s heirs, executors and
administrators.  This Note shall be
construed in accordance with and governed by the laws of the State of
California applicable to agreements made and to be performed solely within such
state.

Borrower
hereby waives presentment, demand, notice of dishonor, protest, notice of
protest and all other demands, protests and notices in connection with the
execution, delivery, performance, collection and enforcement of this Note.

 

 

 

 

BORROWER
ACKNOWLEDGES AND UNDERSTANDS THAT THE RULE 144 HOLDING PERIOD WILL NOT COMMENCE
WITH RESPECT TO THE SHARES PURCHASED UNTIL THIS NOTE HAS BEEN PAID OR UNLESS
THIS NOTE IS FULLY SECURED BY COLLATERAL OTHER THAN THE SHARES PURCHASED.

 

 

 

	
   

  	
   

  
	
   

  	
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EXHIBIT 10.16    
  

Ultimate Electronics, Inc.

Bonus Plans

for Fiscal Years Ended

January 31, 2001 and January 31, 2002  

        Under our bonus plans, our executive officers may be awarded bonuses from an annual bonus pool, quarterly performance bonuses and discretionary bonuses determined
by the Board. The parameters under the annual bonus pool are changed from year to year at the discretion of the Board. 

        Fiscal 2001.    In fiscal 2001, the annual bonus pool was equal to $380,000 plus 14% of pretax earnings, prior to any bonus
accrual, in excess of $23,800,000. 

        Fiscal 2002.    In fiscal 2002, the annual bonus pool was equal to 12.25% of pretax earnings, prior to any bonus accrual, in
excess of $26,500,000 up to $31,200,000, plus 14% of pretax earnings, prior to any bonus accrual, in excess of $31,200,000. 

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EXHIBIT 10.16<PAGE>

                                EXHIBIT (10)(a)

                        CONSENT OF INDEPENDENT AUDITORS

<PAGE>

                        Consent of Independent Auditors

We consent to the reference to our firm under the caption "Independent Auditors"
in the Statements of Additional Information and to the use of our reports
(1) dated February 15, 2002 with respect to the statutory-basis financial
statements and schedules of Transamerica Life Insurance Company, (2) dated
February 1, 2002 with respect to the financial statements of certain
subaccounts of Retirement Builder Variable Annuity Account, which are
available for investment by contract owners of the Retirement Income Builder
Variable Annuity, (3) dated February 1, 2002 with respect to the financial
statements of certain subaccounts of Retirement Builder Variable Annuity
Account, which are available for investment by contract owners of the
Retirement Income Builder II Variable Annuity and (4) dated February 1, 2002
with respect to the financial statements of certain subaccounts of Retirement
Builder Variable Annuity Account, which are available for investment by
contract owners of Portfolio Select Variable Annuity, included in
Post-Effective Amendment No. 14 to the Registration Statement (Form N-4
No. 333-7509) and related Prospectuses of Retirement Income Builder Variable
Annuity, Retirement Income Builder II Variable Annuity and Portfolio Select
Variable Annuity.

                                                           /s/ Ernst & Young LLP

Des Moines, Iowa
April 25, 2002<PAGE>

                                EXHIBIT (10)(b)
                                ---------------

                        OPINION AND CONSENT OF ACTUARY
<PAGE>

               [Transamerica Life Insurance Company Letterhead]

April 10, 2002

Transamerica Life Insurance Company
4333 Edgewood Road NE
Cedar Rapids, Iowa  52499-0001

Re:    Retirement Builder Variable Annuity Account
       Portfolio Select Variable Annuity
       Registration on Form N-4            SEC File No. 333-7509

Dear Sir/Madam:

With regard to the above registration statement, I have examined such documents
and made such inquiries as I have deemed necessary and appropriate, and on the
basis of such examination, have the following opinions:

Fees and charges deducted under the Portfolio Select Variable Annuity policies
are those deemed necessary to appropriately reflect:

(1)    the expenses incurred in the acquisition and distribution of the
       policies,

(2)    the expenses associated with the development and servicing of the
       policies,

(3)    the assumption of certain risks arising from the operation and management
       of the policies and/or riders to the policy and that provides for a
       reasonable margin of profit.

Fees and charges assessed against the policy values in the Variable Account
include:

(i)    Service Charge and Administrative Charge

(ii)   Mortality and Expense Risk Fee (M&E)

(iii)  Taxes (including Premium and other Taxes if applicable)

(iv)   Surrender Charges

(v)    Any applicable rider fees or charges

The magnitude of each of the individual charges listed above in (i) through (v)
is established in the pricing of the Portfolio Select Variable Annuity, to
achieve a reasonable Return on Investment (ROI), which is within the range of
industry practice with respect to comparable variable annuity products.
<PAGE>

Transamerica Life Insurance Company
April 10, 2002
Page 2

Except by coincidence, it is not expected that actual charges assessed in a
given year would exactly offset actual expenses incurred. Acquisition expenses
(as well as major product and/or systems development expenses) are incurred "up
front" and recovered, with a reasonable profit margin, through future years'
charges. In addition, the company cannot increase certain charges under the
policies in the pricing process.

Therefore, in my opinion, the fees and charges deducted under the policies, in
the aggregate, are reasonable in relation to the services rendered, the expenses
expected to be incurred, and the risks assumed by the company.

I hereby consent to the use of this opinion, which is included as an Exhibit to
the Registration Statement.

/s/ R. Gene Hauser
-------------------------------------
R. Gene Hauser
Associate Actuary
Transamerica Life Insurance Company<PAGE>

                                EXHIBIT (10)(a)

                        CONSENT OF INDEPENDENT AUDITORS

<PAGE>

                        Consent of Independent Auditors

We consent to the reference to our firm under the caption "Independent Auditors"
in the Statement of Additional Information and to the use of our report dated
February 15, 2002 with respect to the statutory-basis financial statements and
schedules of Transamerica Life Insurance Company, included in Pre-Effective
Amendment No. 1 to the Registration Statement (Form N-4 No. 333-76230) and
related Prospectus of Retirement Income Builder III Variable Annuity.

                                                           /s/ Ernst & Young LLP

Des Moines, Iowa
April 25, 2002<PAGE>

                                EXHIBIT (10)(b)

                        OPINION AND CONSENT OF ACTUARY
<PAGE>

               [Transamerica Life Insurance Company Letterhead]

April 10, 2002

Transamerica Life Insurance Company
4333 Edgewood Road NE
Cedar Rapids, Iowa 52499-0001

Re:    Retirement Income Builder III
       Separate Account VA K
       Registration on Form N-4

Dear Sir/Madam:

With regard to the above registration statement, I have examined such documents
and made such inquiries as I have deemed necessary and appropriate, and on the
basis of such examination, have the following opinions:

Fees and charges deducted under the Retirement Income Builder III policies are
those deemed necessary to appropriately reflect:

(1)    the expenses incurred in the acquisition and distribution of the
       policies,

(2)    the expenses associated with the development and servicing of the
       policies,

(3)    the assumption of certain risks arising from the operation and management
       of the policies and/or riders to the policy and that provides for a
       reasonable margin of profit.

Fees and charges assessed against the policy values in the variable account
include:

(i)    Service Charge and Administrative Charge

(ii)   Mortality and Expense Risk Fee (M&E)

(iii)  Taxes (including premium and other taxes if applicable)

(iv)   Surrender Charges

(v)    Any applicable rider fees or charges
<PAGE>

Transamerica Life Insurance Company
April 10, 2002
Page 2

The magnitude of each of the individual charges listed above in (i) through (v)
is established in the pricing of the Retirement Income Builder III, to achieve a
reasonable Return on Investment (ROI), which is within the range of industry
practice with respect to comparable variable annuity products.

Except by coincidence, it is not expected that actual charges assessed in a
given year would exactly offset actual expenses incurred.  Acquisition expenses
(as well as major product and/or systems development expenses) are incurred "up
front" and recovered, with a reasonable profit margin, through future years'
charges.  In addition, the company cannot increase certain charges under the
policies in the pricing process.

Therefore, in my opinion, the fees and charges deducted under the policies, in
the aggregate, are reasonable in relation to the services rendered, the expenses
expected to be incurred, and the risks assumed by the company.

I hereby consent to the use of this opinion, which is included as an Exhibit to
the registration statement.

   /s/ R. Gene Hauser
--------------------------------------
R. Gene Hauser
Associate Actuary
Transamerica Life Insurance Company

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