Document:

Exhibit 10.2

 

Bank of Hawaii Corporation and Subsidiaries

 

RETENTION AGREEMENT

Between Bank of Hawaii and Managing Committee Member dated May 3, 2004

 

This Retention Agreement (“Agreement”) is between Managing Committee
Member (“you”) of address and Bank of Hawaii Corporation and Bank of Hawaii
(collectively, the “Bank”) of 130 Merchant Street, Honolulu, Hawaii 96813.  The purpose of this
Agreement is to describe the terms of your retention and transition from
employment with the Bank.

 

1.         Completion of your active
duties and separation from employment.  The date of your separation from employment
(“Separation Date”) will be twenty-four (24) months following your completion
of active employment duties (your “Inactive Service Date” or “ISD”), unless an
Alternate Separation Date (“ASD”) is selected or occurs between the ISD and the
Separation Date.

 

a.     Your ISD is scheduled to occur on XX XX, 2005.  The final determination of your ISD will be
made by the Bank, in its discretion, based upon the needs of the Bank in
achieving the goals of the Bank’s Retention Program.  The Bank may advance your ISD to any date
before XX XX, 2005, or may extend your ISD to any date within three months
after XX XX, 2005.  Any ISD beyond three
months from the original ISD date, will require mutual
agreement of the parties in writing.

 

b.     In the event you become employed elsewhere on a
part-time or full-time basis between the ISD and your scheduled Separation Date
or ASD, your separation from employment with the Bank will be effective immediately
upon your new employment and that date will be deemed to be your ASD.

 

c.     You may voluntarily elect an ASD by sending the Bank a
written notice.  The other circumstances
which can trigger the designation of an ASD are discussed below.

 

2.         Duties and compensation
until your inactive service date.  You agree to continue to work diligently in
your current position through the ISD, at which time you will be relieved of
all duties and responsibilities.

 

a.     You will be paid your normal salary and benefits
through the ISD.  You will participate in
the Executive Incentive Plan for calendar years 2004 and 2005, with the amount
payable for 2005 pro-rated based upon your ISD.

 

b.     In the event you become employed elsewhere on a
full-time or part-time basis prior to the ISD, you will receive only your
salary and vested benefits through the date you begin your new employment.

 

c.     You will not participate in any other incentive,
retention, bonus, or stock plan in 2004 or 2005.  You will not participate in any incentive,
retention, bonus, or stock plan on or after the ISD.  You acknowledge and agree that no
compensation or other payment except as specified in this Agreement and in the
Restricted Stock Unit (RSU) Grant (granted on October 23, 2003) is or will be
owed to you after the earlier of the Separation Date or the ASD.

 

3.         Return of Bank materials
on completion of active service; resignation from positions; treatment of club
membership.  On or prior
to the ISD, you:

 

a.     Will return to the Bank any information you have
about the Bank’s practices, customers, strategies, procedures or trade secrets,
including but not limited to, customer data, lists and accounts, growth plans,
business plans, and marketing strategies (collectively, the “Bank
Information”).  You will not retain any
copies of the Bank Information in any form or medium.

 

b.     You will also return any Bank property you have,
including American Express card, keys, cell phone, or other Bank equipment.

 

c.     You will resign any positions you hold as a director,
officer or other management official of any Bank affiliate or subsidiary, or as
trustee or fiduciary of any Bank benefit plan or trust, effective on the ISD.

 

d.     (1)       Effective
on the ISD, there will be no further reimbursements for expenses you incur at
the X Club.

 

(2)       We will waive your obligation to
reimburse the Bank for the remaining balance of the initial membership
fee.  This will result in imputed income
to you of approximately $X in 2005.  You
are responsible for the payroll taxes on this income and we will withhold the
appropriate amounts from your 2005 earnings.

 

 

(3)       Additional income to partially offset
your periodic membership dues will end on your ISD.  If you elect to discontinue your membership
prior to that date, you must notify the Bank’s Director of Human Resources in
writing, at least thirty (30) days prior to the date of discontinuance.  Upon timely receipt of your written notice,
we will consider your membership discontinued and the additional income related
to club dues will no longer be paid.  You
are responsible for abiding by your club’s specific procedures for membership
discontinuance and ensuring that no additional business expenses are incurred.

 

e.     In the event that your employment is terminated prior
to your ISD (1) by employment elsewhere, or (2) for “cause” pursuant to
Paragraph 6, you will comply with these requirements as of your termination
date (“Termination Date”).

 

4.         How to receive your
retention payment and continued benefits.  If you perform your duties to the Bank’s
satisfaction through the ISD (including your compliance with the requirements
in Paragraph 3, above, and if you comply with the requirements of this
Paragraph and Paragraphs 5, 8, 10, and 11, below, and Exhibit “A” to the
Agreement), you will receive a Retention Payment equal to twenty-four (24)
months of your base monthly salary as of the ISD.

 

a.     The Retention Payment will be provided to you in
the form of salary equivalent payments (“Continuation Payments”) on the same
schedule used to pay Bank employees generally, with eligibility to remain in
the Bank-sponsored benefit plans (unless otherwise provided in this Agreement)
as if you were an active employee of the Bank during the period between the ISD
and the Separation Date.

 

b.     You will make yourself available to the Bank for
consultation, as needed, through your Separation Date or ASD.  If you select and provide written notice of
an ASD or if you take new employment between the ISD and the Separation Date, thereby
triggering an ASD, the Continuation Payments (and associated benefits) will
cease as of the ASD, and the Bank will pay you a lump sum equal to the
difference between the Retention Payment and the amount of Continuation
Payments you have already received.  The
lump sum, less appropriate payroll deductions, will be paid to you within 45
days of the ASD.  You will receive by
separate cover information regarding your rights to health insurance
continuation after the Separation Date or ASD. 
To the extent that you have such rights, nothing in this Agreement will
impair those rights.

 

5.         When you are entitled to
the money and other benefits granted by this Agreement.  The salary,
benefits, Retention Payment and/or RSU Grant provided to you under this
Agreement (“Monetary Consideration”) is expressly conditioned upon your:

 

a.     Compliance with the terms of this Agreement, including
your waiver of ALL CLAIMS you have or might have against the Bank and the Bank
Releasees described in Paragraph 8 through the Separation Date or ASD; and

 

b.     (1) agreement to, and signing of, the Release of
Claims (“Release”) attached as Exhibit “A” on the Separation Date or ASD and
(2) adherence to that Release without revocation.

 

6.         Effect of this Agreement
on other severance arrangements.  Unless your employment is terminated for
“cause” as defined in the next Paragraph, it will be terminated by way of
resignation.  You understand and agree
that you are not entitled to benefits under our Basic Staff Severance Plan for
termination by resignation.  By acceptance of this Agreement and
in consideration of the monetary consideration provided to you under this
Agreement (“Monetary Consideration”), you are waiving and releasing any claim
for benefits under that Plan.  In
addition, the Key Executive Change-in-Control Severance Agreement entered into
by and between you and the Bank and effective XX XX, XXXX, shall be deemed to
have been terminated as of the ISD.  The
Bank makes no representation to you concerning your possible entitlement to
unemployment insurance benefits, and will truthfully report, should
unemployment compensation authorities ask, that the termination of your
employment was voluntary (or involuntary, if termination was for “cause.”)

 

7.         When your employment may
be terminated for cause. 
You agree and understand that your employment with the Bank may be
terminated for “cause” at any time on or before the Separation Date or ASD.

 

 

a.     “Cause” is defined to include: (1) your violation
of the Bank’s Employee Handbook, to include the Bank’s Code of Ethics and
Conduct (“the Code”), a copy of which has been provided to you; (2) your breach
of the terms of this Agreement;  (3) your
failure to successfully complete your transition objectives or to make
satisfactory progress toward your annual performance objectives through the
ISD, as determined by the Bank’s Chief Executive Officer; or (4) your violation
of the Code of Business Ethics and Conduct of the New York Stock Exchange (“the
NYSE Code”), a copy of which has been provided to you.  You understand and acknowledge that the
provisions of the Code or the NYSE Code may be changed from time to time
between the date on which you sign this Agreement (its “Execution Date”) and
the ASD or the Separation Date, and you agree that your violation of any of
those changed provisions prior to the ASD or the Separation Date will
constitute grounds for terminating your employment for “cause.”

 

b.     Termination for “cause” may be with or without
notice.  In the event that you are
terminated for “cause,” you will forfeit all remaining Monetary Consideration
that has not been paid to you as of the termination date, and upon the Bank’s
written demand you will repay the Bank the Retention Payment you have received
prior to the termination date.

 

c.     Your duties under this Agreement, including the
information disclosure and competition restrictions of Paragraph 11 and the
release of all claims as provided in Paragraphs 5 and 8 and Exhibit “A”, shall remain in the event you are terminated for
“cause.”  You agree that the payment to
you of salary and benefits and/or other consideration on or after the Effective
Date of this Agreement shall be good and sufficient consideration to require
your adherence to the promises you have made in this Agreement even if you are
terminated for “cause” and forfeit any unpaid or unvested Monetary
Consideration and repay any portion of the Retention Payment.

 

8.         Waiver of any claims you
may have.  You waive,
release and forego any and all claims that you have or might have through the
Effective Date of this Agreement against the Bank and any of its predecessors,
subsidiaries, related entities, officers, directors, shareholders, agents,
attorneys, employees, successors or assigns (“the Bank Releasees”), including
without restriction any claims arising from or related to your employment with
the Bank and/or your separation from employment with the Bank.

 

a.     The released claims include, but are not limited to,
claims arising under statutory or common law in the United States (including
federal, state or local jurisdictions) or any foreign country.  The released claims include, but are not
limited to, claims under anti-discrimination statutes such as Title VII of the
Civil Rights Act, the federal Age Discrimination in Employment Act (“ADEA”),
and Hawaii’s civil rights laws (Hawaii Revised Statutes Chapter 368 and 378);
claims under wage and hour laws; claims under the laws of contract and tort
(such as claims for breach of contract, infliction of emotional distress,
defamation, invasion of privacy, wrongful termination, etc.); claims based upon
the Hawaii Whistleblowers’ Protection Act, H.R.S. § 378-61, et seq.; claims
under the Sarbanes-Oxley Act of 2002, including Section 806 (18 U.S.C. § 1514A)
of the Corporate and Criminal Fraud Accountability Act of 2002 (Title VIII of Sarbanes-Oxley
Act of 2002); and claims for attorneys’ fees and/or costs.  THIS RELEASE COVERS ALL
CLAIMS THAT ARE BASED UPON ANY EVENT THAT OCCURRED THROUGH THE EFFECTIVE DATE
OF THIS AGREEMENT.

 

b.     You further agree that you will execute upon your
Separation Date or ASD, a further Release covering claims from the Effective
Date through your Separation Date or ASD in the form attached hereto as Exhibit
A.  The Release is expressly incorporated
into this Agreement as part of the Agreement.

 

9.         How we will respond to
employment verification requests.  The Bank and you agree that any inquiries
regarding verification of your employment will be handled through Bank of
Hawaii, Human Resources.  As is its
practice, Human Resources will only release information confirming your dates
of employment and position title to requesters or if we are required to report
further information by law, regulation or court order.

 

10.       Neither of us will make
negative comments about the other.  The Bank agrees that neither its officers nor
its directors will make any disparaging, negative or derogatory statements
about you.  You agree that you will not
make any disparaging, negative or derogatory comments about the Bank or the
Bank Releasees.

 

11.       Your agreement to keep
secrets and not to compete. 
You further agree as follows:

 

a.     Unless required or otherwise permitted by law, you
will not disclose to others or use the Bank Information or any summary or
derivative of that information.

 

 

b.     Unless required or otherwise permitted by law, you
will not disclose to others the terms of this Agreement or the benefits being
paid under it or the fact of their payment except that you may disclose this
information to your spouse or to your attorney, accountant or other
professional advisor to whom you must make the disclosure in order for them to
render professional services to you.  You
will instruct anyone to whom you make a permitted disclosure that he or she is
to maintain the confidentiality of this information just as you must.

 

c.     You acknowledge that your services under this
Agreement are of a special, unique, unusual, extraordinary and intellectual
character and that you will have access to Bank Information of extremely
confidential and sensitive nature crucial to the Bank’s success.  You further acknowledge and agree that if you
were to engage in the conduct prohibited by Subparagraphs 11.d, 11.e or 11.f,
the Bank would be irreparably harmed.

 

d.     In consideration of your acknowledgements, our
mutual promises and the Monetary Consideration, you agree that—for the duration
of the term of your active employment by the Bank and for a period of
twenty-four (24) full months following the earlier of your ISD or Termination
Date (“the Non-Compete Period”)—you will not, either directly or indirectly,
engage in or invest in, own, manage, operate, finance, control, be employed by,
work as a consultant or contractor for, or otherwise be associated with any
Financial Institution doing business in the state of Hawaii; provided, however,
that you may purchase or otherwise acquire up to one percent of any class of
securities of any such Financial Institution (but without otherwise
participating in the activities of such enterprise) if such securities are
listed on any national or regional securities exchange or have been registered
under Section 12(g) of the Securities Exchange Act of 1934.  The term “Financial Institution” is defined
as any commercial bank, savings institution, securities brokerage, mortgage
company, insurance broker, or other company or organization that competes in
the state of Hawaii with the Bank or any of its subsidiaries or related
companies or entities (“the Bank or Related Entities”).

 

e.     You agree that at any time following the Execution
Date of this Agreement through twelve (12) full months following the end of the
Non-Compete Period you will not solicit business of the same or similar type
being carried on by the Bank or Related Entities from any company, person, or
entity known by you to be a customer of the Bank or Related Entities, whether
or not you had personal contact with such company, person, or entity by reason
of your employment with the Bank.

 

f.      You will not, whether for your own account or the
account of any other person at any time following the Execution Date of this
Agreement through twelve (12) full months following the end of the Non-Compete
Period solicit, employ, or otherwise engage as an employee, independent
contractor, or otherwise, any person who is an employee of the Bank or in any
manner induce or attempt to induce any employee of the Bank to terminate his or
her employment with the Bank.

 

g.     You agree to notify the Bank in writing if you
accept employment at any time between the Execution Date of this Agreement and
one year following the end of the Non-Compete Period.  You further agree that the Bank may notify
your new employer of the terms of Paragraphs 10, 11, and 13 of this Agreement
and, at the Bank’s election, furnish the employer with a copy of this Agreement
or relevant portions thereof.

 

12.       Where notices are to be
sent. 
Any notice required or permitted by this Agreement shall be in writing
sent to the following addressees:  For
you, address; for the Bank, Bank of Hawaii, Human Resources #320, P. O. Box
2900, Honolulu,  HI  96846-6000.

 

13.       Enforcing this Agreement.  To the extent
permitted by law, if you breach any of your obligations under this Agreement,
the Bank will be entitled to recover the benefits paid under this Agreement and
to obtain all other relief provided by law or equity. You acknowledge and agree
that your breach of Paragraphs 3, 10, or 11 will result in irreparable harm to
the Bank for which it will have no adequate remedy at law and for which the
Bank will be entitled to immediate injunctive relief.

 

14.       Interpretation of this
Agreement.  In deciding
any question about the parties’ intent in creating this Agreement, the
following rules will be applied:

 

a.     If any covenant of Paragraph 11 is held by a court to
be unreasonable, arbitrary or against public policy, the covenant will be considered
to be divisible with respect to scope, time, and/or geographic area, and
enforced to the greatest extent permissible under law.  If any provision of this Agreement is deemed
to be unlawful, the provision will be deemed deleted from this Agreement and
the remainder of the Agreement will continue in effect.

 

b.     The paragraph headings and other guides in this
Agreement, as well as any cover letter or other documents accompanying it, are
only intended to improve the readability of the Agreement, and not to alter its
substance.

 

 

c.     This Agreement is formed at Honolulu, Hawaii, and is
to be interpreted and enforced under the applicable federal and Hawaii state
laws.

 

d.     This Agreement represents the complete agreement of
the parties and supersedes any and all prior agreements.

 

e.     This Agreement may only be amended in writing signed
by both you and the Bank.

 

f.      This Agreement is not intended to be and is not an
admission of any fact or wrongdoing or liability by any of the parties.

 

15.       Older Workers Benefit
Protection Act notice. 
The following is required by the Older Workers Benefit Protection Act
(“OWBPA”):

 

This Agreement includes a waiver of any claims you may have under the
Age Discrimination in Employment Act (“ADEA”) through the Effective Date of the
Agreement. You have up to 21 days from the date of this letter to accept the
terms of this Agreement, although you may accept it at any time within those 21
days. To properly weigh the advantages and disadvantages of signing this
Agreement and waiving your ADEA claims, you are advised to consult an attorney
about this Agreement prior to signing. 
If you want to accept the Agreement prior to the expiration of the 21
days, you will need to indicate your waiver of the 21-day consideration period
by signing in the space indicated below.

 

To accept this Agreement, please date, sign and return it to the Bank’s
Vice Chairman, Information, Operations & Human
Services.  (An extra
copy for your file is provided).  Once
you do so, pursuant to the OWBPA, you will still have an additional seven days
in which to revoke your acceptance. To revoke, you must send the Bank’s Vice
Chairman, Information, Operations & Human Services a written statement of
revocation by registered mail, return receipt requested.  If you do not revoke, the eighth day after
the date of your acceptance will be the “Effective Date” of this Agreement. The
Agreement will not be effective and enforceable until the revocation period has
expired.

 

	
  BANK OF
  HAWAII CORPORATION and

  BANK OF HAWAII

  
	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Michael E. O’Neill

  	
   

  
	
   

  	
  Michael E.
  O’Neill

  
	
   

  	
  Chairman of
  the Board & Chief Executive Officer

  

 

 

By
signing this Agreement, I acknowledge that I have had the opportunity to review
it carefully with an attorney of my choice; that I have read and understand its
terms; and that I voluntarily agree to them.

 

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Managing Committee Member

  
				

 

 

Pursuant to 29 C.F.R. § 1625.22(e)(6), I
hereby knowingly and voluntarily waive the twenty-one (21) day pre-execution
consideration period set forth in Older Workers Benefit Protection Act (29
U.S.C. § 626(f)(1)(F)(i)).

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Managing Committee Member

  
				

 

 

EXHIBIT A

[TO BE SIGNED ON THE SEPARATION DATE or ASD]

 

RELEASE OF CLAIMS

 

In consideration of the payments and other
consideration provided for by the agreement (“Agreement”) dated May 3, 2004,
which is attached hereto and expressly incorporated herein, I hereby
voluntarily and knowingly waive, release and forever forego any and all claims,
whether or not now known, suspected or claimed, that I ever had, now have, or
may later claim to have had against Bank of Hawaii (“the Bank”) and any of its
predecessors, subsidiaries, related entities, officers, directors,
shareholders, agents, insurers, attorneys, employees, successors or assigns
(“the Bank Releasees”) through the date of my signature below (“the Release
Date”), including without limitation all claims arising from or related to my
employment with the Bank and/or the separation of my employment with the Bank.

 

These claims include, but are not limited to,
claims arising under statutory or common law in the United States (including
federal, state or local jurisdictions) or any foreign country.  The released claims include, but are not
limited to, claims under anti-discrimination statutes such as Title VII of the
Civil Rights Act, the federal Age Discrimination in Employment Act (“ADEA”),
and Hawaii’s civil rights laws (Hawaii Revised Statutes Chapter 368 and 378);
claims under wage and hour laws; claims under the laws of contract and tort
(such as claims for breach of contract, infliction of emotional distress,
defamation, invasion of privacy, wrongful termination, etc.); claims based upon
the Hawaii Whistleblowers’ Protection Act, H.R.S. § 378-61, et seq.; claims
under the Sarbanes-Oxley Act of 2002, including Section 806 (18 U.S.C. § 1514A)
of the Corporate and Criminal Fraud Accountability Act of 2002 (Title VIII of
Sarbanes-Oxley Act of 2002); and claims for attorneys’ fees and/or costs.  This Release covers all claims that are based
upon any event, action, or inaction that occurred or was to have occurred
through the Release Date.

 

I
hereby acknowledge (1) that I have been advised to consult with an attorney
prior to signing this Release, (2) that I have been given more than twenty-one
days prior to signing in which to consider this Release, (3) that I have been
advised that this Release covers ALL CLAIMS (including employment-related
claims generally and ADEA claims specifically) I might have against the Bank or
the Bank Releasees through the date of this Release; and (4) that I have seven
days after signing this Release (“the Revocation Period”) in which to revoke my
agreement to this Release.  I understand
that I may revoke my agreement by notifying the Bank at any time during the
Revocation Period.  If I elect to revoke
my agreement to this Release, the Agreement will be void, and I will not
receive the Monetary Consideration provided under that Agreement.

 

UNDERSTOOD AND AGREED:

 

 

	
   

  	
   

  	
   

  	
   

  
	
  Managing Committee Member

  	
  Date

  

 

Pursuant to 29 C.F.R. § 1625.22(e)(6), I
hereby knowingly and voluntarily waive the twenty-one (21) day pre-execution
consideration period set forth in Older Workers Benefit Protection Act (29
U.S.C. § 626(f)(1)(F)(i)).

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Managing Committee MemberExhibit 4.1

                         [ACS Holdings, Inc. letterhead]

                                  July 26, 2004

Terence Byrne
Bartholomew International Investments Ltd., Inc.
216 Hidden Pines Dr.
Panama City Beach, Fl 32408

Dear Mr. Byrne:

      This letter agreement memorializes our agreement as to amending that
certain Consulting Services Agreement dated February 12, 2004, by and between
maxxZone.com, Inc., a Nevada corporation (the "Company"), and Bartholomew
International Investments Ltd., Inc., as amended on April 22, June 3, 2004 and
July 12, 2004 (the "Agreement"). All capitalized terms used herein shall be
ascribed those definitions provided for in the Agreement.

      Section 6 of the Agreement is hereby amended so that the Company shall
issue an additional eighty million (80,000,000) shares of common stock of the
Company (the "Shares") to Consultant for the performance of the Consulting
Services to the Company.

      If you agree with the foregoing, please sign below and return a copy of
this letter to me by facsimile today and the original by overnight delivery.

                                       Sincerely,

                                       Walter H. Roder II

Acknowledged and Agreed:

Bartholomew International Investments Ltd., Inc.

By:
   --------------------------------------
   Name:
        ---------------------------------
   Title:
        ---------------------------------

Dated:
      -----------------------------------

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