Document:

Exhibit 10.1

 

REGAL ENTERTAINMENT GROUP

SUMMARY OF

ANNUAL EXECUTIVE INCENTIVE PROGRAM

 

Our board of
directors and our stockholders have approved the following material terms for
payment of bonuses under our annual executive incentive programs.

 

Payment of an
annual incentive to a covered executive officer is contingent upon the
attainment of one or more performance goals (which may be stated as alternative
goals) established in writing by the compensation committee of the board of
directors, while the attainment of such goals is substantially uncertain, for a
covered executive officer for each performance period, which is generally our
taxable year. Performance goals may be based on one or more business criteria
that apply to an individual, a business unit or our company as a whole, but
need not be based on an increase or positive result under the business criteria
selected. The compensation committee is prohibited from increasing the amount
of compensation payable if a performance goal is met, but may reduce or
eliminate compensation even if such performance goal is attained.

 

Performance
goals are based on one or more of the following business criteria: (1) total
stockholder return; (2) such total stockholder return as compared to total
return (on a comparable basis) of a publicly available index such as, but not
limited to, the Standard & Poor’s 500 Stock Index; (3) net
income; (4) pretax earnings; (5) earnings before interest expense,
taxes, depreciation and amortization (“EBITDA”);
(6) earnings before interest expense, taxes, depreciation, amortization and rent (“EBITDAR”); (7) pretax
operating earnings after interest expense and before bonuses and extraordinary
or special items; (8) EBITDAR margin; (9) earnings per share; (10) return
on equity; (11) return on capital; (12) return on investment;
(13) operating earnings; (14) working capital; (15) ratio of
debt to stockholders’ equity; and (16) revenue. The maximum annual cash
incentive award that may be granted to any covered executive officer in any one
year based on attainment of one or more of the foregoing performance goals is
$3 million. Under the company’s 2002 Stock Incentive Plan, the maximum
equity incentive award that may be granted to any covered executive officer in
any one year based on attainment of one or more of the foregoing performance
goals is 2,000,000 shares.

 

The annual
incentive compensation payable in any fiscal year based on such performance
goals cannot be determined because the payment of such compensation is
contingent upon attainment of the pre-established performance goals, the
maximum amount of such compensation depends on our company’s performance for
the applicable performance period, and the actual annual incentive compensation
to a covered executive officer may reflect exercise of the compensation
committee’s discretion to reduce the annual incentive compensation otherwise
payable upon attainment of the performance goal.Exhibit 10.1

 

SECOND
AMENDMENT TO

LIFE
INSURANCE

ENDORSEMENT
METHOD SPLIT DOLLAR PLAN

AGREEMENT

 

THIS
SECOND AMENDMENT TO THE LIFE INSURANCE ENDORSEMENT METHOD SPLIT DOLLAR PLAN
AGREEMENT (the “Second
Amendment”) is entered into as of March 19, 2008 between Larry Putnam (the
“Insured”)and Santa Lucia Bank, a banking company organized under the laws of
California, (the “Bank”) located in Atascadero, California.

 

WHEREAS, the Insured and the Bank entered into
the Life Insurance Endorsement Method Split Dollar Plan Agreement (the “Agreement”)
dated January 10, 2001;

 

WHEREAS, the Insured and the Bank have agreed to
amend the Agreement to avoid certain adverse accounting implications presented
by the current form of Agreement;

 

NOW,
THEREFORE, for
good and valuable consideration the receipt and sufficiency of which are hereby
acknowledged, the Insured and the Bank hereto agree as follows:

 

1.             Paragraph IV of the Agreement is hereby
amended and restated in its entirety to read as follows:

 

IV.
PREMIUM PAYMENT METHOD AND BANK’S DUE DILIGENCE

 

Subject to the following,
the Bank shall pay an amount equal to the planned premiums and any other
premium payments that might become necessary to keep the policy in force.  The Bank shall exercise due diligence in reviewing
the financial stability of the insurance company and the policy that are the
subject of this Agreement.  If the Bank
believes that the Insurer under the policy is financially weak or that the
policy is not performing well, the Bank may, at any time, surrender the policy
or substitute a different policy provided that the Bank is under no obligation
to invest in such replacement policy any more than the proceeds available from
the cash surrender value of the original policy.  The Insured will cooperate by undertaking any
necessary medical examination. The Bank
may sell, surrender or transfer ownership of the policy to the Insurer or any
third party, provided that, in the event of any such sale, surrender or
transfer prior to termination of this Agreement, the Bank replaces the policy
with a life insurance policy or policies on the life of the Insured providing
death benefits that are at least as much as that of the policy being replaced.
The rights, duties and benefits of the Bank or the Insured with respect to any
such replacement policy shall be subject to the terms of this Agreement. At the
request of the Bank, the Insured shall take any and all actions that the Bank
determines may be reasonably necessary for the sale, surrender or transfer of
the policy, the issuance of a replacement policy(ies), and subjecting the
replacement policy(ies) to the terms of this Agreement.

 

2.             Capitalized terms used herein and not
otherwise defined shall have the same meaning as set forth in the Agreement.

 

3.             This Second Amendment may be entered into
in one or more counterparts, all of which shall be considered one and the same
instrument, and it shall become effective when one or more counterparts have
been signed by each of the parties and delivered to the other parties, it being
understood that all parties need not sign the same counterpart.

 

4.             Except as expressly modified herein, the
terms of the Agreement are confirmed.

 

1

 

Executed at Atascadero,
California as of the date set forth above.

 

	
   

  	
   

  	
   

  	
  Bank:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Santa Lucia Bank

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Larry H. Putnam

  	
   

  	
   /s/ John C. Hansen

  
	
  Witness

  	
   

  	
  Name: John C. Hansen

  
	
   

  	
   

  	
   

  	
  Title: President/COO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Insured:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ John C. Hansen

  	
   

  	
  /s/ Larry H. Putnam

  
	
  Witness

  	
   

  	
  Larry Putnam

  

 

2Exhibit 10.2

 

FIRST
AMENDMENT TO

LIFE
INSURANCE

ENDORSEMENT
METHOD SPLIT DOLLAR PLAN

AGREEMENT

 

THIS
FIRST AMENDMENT TO THE LIFE INSURANCE ENDORSEMENT METHOD SPLIT DOLLAR PLAN
AGREEMENT (the “First
Amendment”) is entered into as of March 19, 2008 between John C. Hansen
(the “Insured”)and Santa Lucia Bank, a banking company organized under the laws
of California, (the “Bank”) located in Atascadero, California.

 

WHEREAS, the Insured and the Bank entered into
the Life Insurance Endorsement Method Split Dollar Plan Agreement (the “Agreement”)
dated January 21, 1997, as amended;

 

WHEREAS, the Insured and the Bank have agreed to
amend the Agreement to avoid certain adverse accounting implications presented
by the current form of Agreement;

 

NOW,
THEREFORE, for
good and valuable consideration the receipt and sufficiency of which are hereby
acknowledged, the Insured and the Bank hereto agree as follows:

 

1.     Paragraph IV of the Agreement is hereby amended and
restated in its entirety to read as follows:

 

IV.
PREMIUM PAYMENT METHOD AND BANK’S DUE DILIGENCE

 

Subject to the following,
the Bank shall pay an amount equal to the planned premiums and any other
premium payments that might become necessary to keep the policy in force.  The Bank shall exercise due diligence in reviewing
the financial stability of the insurance company and the policy that are the
subject of this Agreement.  If the Bank
believes that the Insurer under the policy is financially weak or that the
policy is not performing well, the Bank may, at any time, surrender the policy
or substitute a different policy provided that the Bank is under no obligation
to invest in such replacement policy any more than the proceeds available from
the cash surrender value of the original policy.  The Insured will cooperate by undertaking any
necessary medical examination. The Bank
may sell, surrender or transfer ownership of the policy to the Insurer or any
third party, provided that, in the event of any such sale, surrender or
transfer prior to termination of this Agreement, the Bank replaces the policy
with a life insurance policy or policies on the life of the Insured providing
death benefits that are at least as much as that of the policy being replaced.
The rights, duties and benefits of the Bank or the Insured with respect to any
such replacement policy shall be subject to the terms of this Agreement. At the
request of the Bank, the Insured shall take any and all actions that the Bank
determines may be reasonably necessary for the sale, surrender or transfer of
the policy, the issuance of a replacement policy(ies), and subjecting the
replacement policy(ies) to the terms of this Agreement.

 

2.     Capitalized terms used herein and not otherwise
defined shall have the same meaning as set forth in the Agreement.

 

3.     This First Amendment may be entered into in one or
more counterparts, all of which shall be considered one and the same
instrument, and it shall become effective when one or more counterparts have
been signed by each of the parties and delivered to the other parties, it being
understood that all parties need not sign the same counterpart.

 

1

 

4.     Except as expressly modified herein, the terms of the
Agreement are confirmed.

 

Executed at Atascadero,
California as of the date set forth above.

 

	
   

  	
   

  	
   

  	
  Bank:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Santa Lucia Bank

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ John C. Hansen

  	
   

  	
  /s/ Larry H. Putnam

  
	
  Witness

  	
   

  	
  Name: Larry H. Putnam

  
	
   

  	
   

  	
   

  	
  Title: CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Insured:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Larry H. Putnam

  	
   

  	
   /s/ John C. Hansen

  
	
  Witness

  	
   

  	
  John C. Hansen

  

 

2

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