Document:

Amendment to Robert P. Kelly Letter Agreement

 Exhibit 10.3 

 

 

 March 1, 2011 
 Mr. Robert P. Kelly 
 Chairman and Chief Executive Officer 

The Bank of New York Mellon Corporation 
 One
Wall Street 
 New York, NY 10286 

Dear Bob: 
 The purpose of this
letter is to confirm our agreement on the terms of an amendment to your supplemental executive retirement plan (“SERP”), effective this date. The SERP is memorialized in your January 31, 2006 letter with Mellon Financial Corporation,
as amended on December 22, 2006 and December 15, 2008. Your SERP benefit, prior to any applicable offsets provided for in the SERP, shall be frozen at the amount calculated on the basis of your employment credited through December 31,
2012. For purposes of calculating your SERP benefit, the three calendar years from which your “Final Average Compensation” shall be determined shall be 2010, 2011 and 2012 and the “Service Percentage” applied to your Final
Average Compensation for each full or partial year of employment with BNY Mellon from January 1, 2011 through December 31, 2012 shall be reduced from 2% to 1.4%, recognizing that the Service Percentage for employment on or prior to
December 31, 2010 shall remain at 2% (with any such percentage pro-rated for a partial year of employment). 
 Please
indicate your acceptance of this amendment by signing below. The amendment may be executed in two or more counterparts, each of which will be considered an original. A signature transmitted by facsimile or pdf will be considered an original
signature. 
  

					
	 Sincerely,

	
	The Bank of New York Mellon Corporation
		
	By:	 	 /s/ Lisa B. Peters

		 	Name:	 	Lisa B. Peters
		 	Title:	 	Senior Executive Vice President

  

	
	Robert P. Kelly
	
	 /s/ Robert P. Kelly

	 Date: March 2, 2011
  

cc: Jane SherburneTerms of Employment for Curtis Y. Arledge

 Exhibit 10.4 
 July 26, 2010 
 Mr. Curtis Arledge 

[Address] 
 Dear Curtis: 

We would like to offer you employment with The Bank of New York Mellon (the “Bank”), a wholly owned subsidiary of The Bank of New York Mellon
Corporation (“BNY Mellon” or the “Company”). You will be reporting to Chairman and Chief Executive Officer Robert P. Kelly, be a member of the Executive Committee (“EC”) and it will be recommended at the August 10,
2010 meeting of the Board of Directors (“Board”) that you be appointed by the Board as CEO of BNY Mellon Asset Management and Vice Chairman of BNY Mellon effective as of the date you commence employment with the Bank (your “Start
Date”). Your responsibilities and authorities as the CEO of BNY Mellon Asset Management will include the responsibilities of the prior CEO of BNY Mellon Asset Management as well as responsibility for BNY Mellon Wealth Management. At the time of
your hire, your principal place of employment will be Manhattan. 
 Unless BNY Mellon agrees otherwise, your Start Date will be October 29, 2010
or as soon thereafter as your obligations to your current employer permit, but in no event later than January 3, 2011. If you are ready, willing and able to commence employment on the Start Date, and BNY Mellon fails to employ you within 21 days
thereafter (other than due to your failure to satisfy the contingencies expressly set forth below or for reasons that would constitute “Cause” under the Executive Severance Plan, copy enclosed (“Severance Plan”)), in recognition
that you will forfeit or otherwise lose certain bonus pay and equity from your current employer in connection with your resignation, you will receive a prompt cash payment in the amount of $10,000,000, less applicable taxes, provided only that you
first execute (and do not revoke) a general release of all claims that is mutually acceptable. 
 As a member of the EC, your compensation is
comprised of base salary and annual bonus and long-term equity award opportunities. You will receive a base salary at an annual rate of $600,000, less applicable taxes and deductions. 
 Your annual bonus opportunity is governed by the Executive Incentive Compensation Plan (together with any successor plan, “EICP”). For 2010, provided that you are employed by the Bank on the
payment/grant date which will be on or before March 15, 2011, and to the extent that you have not received your 2010 annual bonus from your current employer, you will receive a cash bonus and a long-term equity award (your “2010
Award”) as follows. You will receive a cash bonus in the amount of $3,000,000, less applicable taxes and deductions. You will also receive a long-term equity award, pursuant to the BNY Mellon Long Term Incentive Plan (together with any
successor plan, “LTIP”) subject to your commencing employment with BNY Mellon and remaining employed through the grant date. The LTIP award will be as follows: 

 

	 	•	 	 $3,000,000 in BNY Mellon restricted shares. The number of restricted shares to be granted will be based on the average of BNY Mellon’s 25-day
closing prices used for annual employee (including executive) equity awards. The restricted shares will vest ratably in one third increments over 3 years from the date of the grant. (See the enclosed Addendum); and 

 Curtis Arledge 
 
 2
 
  

	 	•	 	 $2,000,000 in BNY Mellon stock options. The number of stock options to be granted will be based on estimated Black-Scholes value of BNY Mellon’s
25-day average closing prices used for annual employee (including executive) equity awards. The options will vest ratably in one quarter increments over 4 years from the date of the grant. (See Addendum). The Black-Scholes valuation will be made in
accordance with past practice as previously disclosed to you. 

 Your target bonus opportunity for 2011, under the EICP, will
be $6,700,000, payable on or before March 15, 2012. The actual amount earned for 2011 performance will be based on the 2011 performance criteria established by the HRCC and payable in accordance with the terms of the EICP. The
clawback/forfeiture provisions applicable to the cash portion of your 2010 Award are described in the Second Addendum (enclosed). 
 At a
meeting of the HRCC on July 22, 2010, your annual long-term equity award for 2011 in the amount of $6,700,000 was approved, subject to your commencing employment with BNY Mellon and remaining employed through the grant date. The grant will be
made at the same time as equity awards for 2011 are made to other senior executives of BNY Mellon. The form and the terms of the award will be determined by the HRCC and subject to the BNY Mellon LTIP, and will be no less favorable to you than the
form and terms of corresponding awards to senior executives of BNY Mellon generally. For your information in year 2010, EC equity was awarded 50% in stock options and 50% in restricted stock, with the restricted shares subject to minimum performance
criteria. 
 In addition, pursuant to the terms of the LTIP, the HRCC approved on July 22, 2010 an award in the amount of $9,000,000 in BNY
Mellon restricted shares, (the “Sign-on Grant”), subject to your commencing employment with BNY Mellon. The grant will be made on the first business day of the first month following your Start Date. The value of this Sign-on Grant has been
converted to BNY Mellon restricted shares based on the average of BNY Mellon’s 25-day closing prices from June 9, 2010 through July 14, 2010. The 347,625 shares ($9,000,000 in value as converted above) will vest ratably in one quarter
increments over four years from the date of the grant. In the event of a stock split or comparable event prior to the grant date, the number of shares subject to the Sign-on Grant will be equitably adjusted. (See Addendum). 

The provisions of this letter are intended to comply with Section 409A of the Internal Revenue Code (“Code”). If the Company determines
that it is necessary or appropriate for any payments after separation from employment to be delayed in order to avoid additional tax, interest and/or penalties under Section 409A of the Internal Revenue Code, then the payments and benefits
would not be made before the date which is the first day following the six (6) month anniversary of the date of the involuntary termination (or upon earlier death). 

 Curtis Arledge 
 
 3
 
  

 Beginning in 2011 you will also be eligible to participate in The Bank of New York Mellon Corporation
Deferred Compensation Plan for Employees (“Deferred Compensation Plan”). Under the Deferred Compensation Plan, eligible employees may voluntarily defer a portion of their annual cash bonus on a pretax basis. More information will be
provided after you start. 
 As referenced above, the Company maintains the Severance Plan for members of the EC. The Severance Plan has
severance provisions if an EC member’s employment is involuntarily terminated without “Cause” as defined by the plan. The HRCC will designate you as a participant in the Severance Plan as of your Start Date at its meeting on August
10, 2010. For purposes of the Severance Plan, you will be treated as if your employment commenced on January 1, 2010. In order to receive benefits under the Severance Plan on termination of employment, you will have to agree to reaffirm the
non-solicitation restrictions that then apply to you and to execute (and not timely revoke) a general release of all claims that is mutually acceptable. For the avoidance of doubt, the release required under the Severance Plan shall not require you
to release any rights you then have with respect to the grants described in the Addendum, to the 2011 EICP award, or to the cash portion of the 2010 Award. Furthermore, the provisions of Section 9(a) of the Severance Plan (relating to mitigation and
offset) shall apply equally to all economic rights and grants referred to in this letter. 
 You will have access to a car and driver and
corporate aircraft in accordance with BNY Mellon’s policies in effect from time to time for security purposes and to allow for more efficient use of your extensive business travel time. 
 As a member of the EC, you also will be covered under the Company’s stock ownership guidelines. These guidelines generally require that you own an amount of stock valued at four times your base
salary and also retain a portion of your equity awards. You have five years to achieve this ownership level and more information will be provided after you start. 
 It is understood and agreed that if any BNY Mellon payment or other obligation under this letter or the applicable plan is in conflict with any U.S. federal, state or local or other applicable law
(including without limitation, any regulations and interpretations there under), or any agreement between BNY Mellon and any government regulator or the listing requirements of the principle securities exchange on which BNY Mellon shares are then
listed, then BNY Mellon may reduce, revoke, cancel, adjust, claw back or impose different terms and conditions to the extent it deems necessary or appropriate in its sole discretion to effect such compliance. Subject only to the previous sentence,
the Sign-On Grant and the 2010 Award described in this letter will be subject to clawback and forfeiture only as described in the Addendum and the Second Addendum. The 2011 awards described in this letter will be subject to clawback and forfeiture
provisions no less favorable to you than those imposed under the corresponding awards to other members of the EC. 
 All new employees
participate in a general orientation session. We will work with you to schedule a time for a member of the Human Resources Department to sit with you, individually, to conduct this session. 
 A summary of benefit coverage for which you will be eligible is enclosed. Detailed information about the Flexible Benefit Plan will be discussed during your orientation session, and you will be eligible
to elect other available health coverage, life insurance and AD&D coverage than that provided automatically. In addition, you will be covered by our indemnification policies (as in effect from time to time) on a basis

 Curtis Arledge 
 
 4
 
  

 
at least as favorable as other senior executives of BNY Mellon. For the avoidance of doubt, any claim based on your alleged or actual breach, as a result of your activities on behalf of BNY
Mellon, of any restrictive covenant or similar obligation to your current employer that has been disclosed to BNY Mellon prior to the date hereof (but not any obligation not so disclosed) shall be promptly indemnified by BNY Mellon (and expenses,
including reasonable attorneys fees, relating to any such claim shall be promptly advanced to you) to the fullest extent permitted by applicable law, subject to (i) any procedural requirements set forth in our indemnification policies,
(ii) your good faith compliance with any limitations on your activities on behalf of BNY Mellon imposed by the office of the General Counsel and (iii) your otherwise reasonably cooperating with the efforts of the office of the General
Counsel in furtherance of your avoiding any potential breach of such agreements. 
 By federal law, you must be prepared to produce documents on
your first day of employment to prove your identity and employment eligibility in the United States. A list of acceptable documents is enclosed. If you are unable to produce the required documentation within three business days of your start date,
your employment cannot continue. 
 It is the policy of BNY Mellon to fingerprint all employees of our entities that are regulated by the
Federal Deposit Insurance Act and/or the Securities Exchange Act of 1934. You are required to have your fingerprints taken prior to employment. And, as part of our commitment to a drug free workplace, you are required to take a drug test prior to
your employment date. Please contact Stephanie Walker at 412-234-0911 to make the arrangements. 
 This offer is contingent upon a negative
result on the drug test and the successful and favorable completion of the fingerprint record and of a customary background check by a third party vendor selected by BNY Mellon. You agree to execute any and all documentation necessary for BNY Mellon
to have such fingerprint record and background check conducted. This offer is also contingent upon your representation that your employment with BNY Mellon under the terms of this letter will not violate any agreement, understanding or undertaking
with any prior employer. In addition, this offer is contingent upon you signing the enclosed non-solicitation and confidentiality agreement on or before your Start Date. We recommend that you have it reviewed by an attorney. Your employment with the
Bank, BNY Mellon, its subsidiaries, affiliates, successors, related companies and assigns will remain at all times at will. 
 Please
acknowledge your acceptance and agreement of the terms and conditions of this letter by signing below and returning the original copy to me as soon as possible but no later than July 31, 2010. Facsimile or other electronic transmission of any signed
original document will be deemed the same as delivery of an original. Curtis, we are confident that you will make a significant contribution to BNY Mellon and are very pleased you will be joining us. This offer will remain open for acceptance by you
until July 31, 2010. If you have any questions, please feel free to contact me at 212-635-1119. 
 Sincerely yours, 

/s/ Lisa B. Peters 
 Lisa B. Peters 

Chief Human Resources Officer 

 Curtis Arledge 
 
 5
 
  

 Enclosures 
  

	cc:	Mr. Robert P. Kelly 

 Barbara K.
Ross, Esquire 
 Robert M. Sedgwick, Esquire 
 Jane Sherburne, Esquire 
 Ms. Stephanie P. Walker 

Accepted and Agreed: 
 /s/ Curtis Y.
Arledge        Date: July 29, 2010 

 Addendum to July 26, 2010 Offer Letter 
 Page 1 of 2 
 Restricted Stock Awards 

Granted in the Form of Restricted Shares/Units 
 Executive Committee 
 Summary of Terms 

 

	 Plan:     
	The Bank of New York Mellon Corporation Long-Term Incentive Plan (the “Plan”) 

  

	 Vesting Schedule:     
	Sign-on Grant 

 347,625 shares vest ratably in 1/4
increments over four years from the grant date. 
  

	 	Guaranteed (per letter) 2010 Equity Bonus to be granted on or before March 15, 2011  

$3,000,000 in BNY Mellon restricted shares. The number of restricted shares to be granted will be based on the average of BNY
Mellon’s 25-day closing prices used for annual employee (including executives) equity awards. Shares vest ratably in 1/3 increments over three years from the date of grant. 

 

	 	Long-Term Equity Award Opportunity for 2011 

 The form and the terms of the award will be determined by the HRCC and subject to the BNY Mellon LTIP. 
 Shares/Units will forfeit if employment terminates prior to vesting, except for situations providing vesting below: 

 

	 Voluntary:     
	If voluntary termination is prior to the vesting date, then the unvested shares/units are forfeited. 

 

	 For Cause:     
	If terminated for cause prior to the vesting date, then the unvested shares/units are forfeited. 

  

	 Retirement:     
	Age 55 until age 60 with ten years of credited service: Shares vest 100%. 

 Age 55 until age 60 with less than ten years of credited service: Shares vest pro-rata. 
 Age 60 and older: Shares vest 100%. 
  

	 Death/Disability:     
	All shares/units fully vest. 

  

	 Involuntary Termination (without    
  cause and no separation
pay):     
	Unvested restricted stock shares/units are forfeited. 

  

	 Termination - Executive Committee     
Severance Plan/Receives
Separation     
Pay:     
	Restricted Stock/Units vests 100% on last day worked. 

  

	 Sale of Business:     
	Restricted Stock/Units vests 100% on last day worked. 

  

	 Change in Control:     
	Double Trigger - Award will vest if the Corporation terminates the awardee’s employment “without cause”, as defined in the Plan, within two years after the occurrence of a
post-grant date Change in Control, as defined in the Plan. 

  

	 Voting Rights:    
 (Restricted Stock
Only)     
	Awardee will be permitted to vote the shares during the period of restrictions. 

  

	 Dividends:     
	Awardee will receive dividends during the period of restrictions. 

  

	 Tax:     
	Taxes due on vesting may be paid by netting of shares per usual procedures. 

  

	 Note:     
	Any vesting that might occur within one-year from grant date (other than due to death, disability or prior contractual obligation) shall be delayed until the one-year anniversary of grant
date. 

 Retirement and Disability Provisions are NOT applicable to European Union. 

 

	 	Terms and agreements for awards in non-US locations may be modified as the Corporation deems necessary or advisable in connection with local laws, regulations or
practices. 

  

	 Clawback/Forfeiture Provisions:    
 (also as required by
applicable law)     
	The employee engages in conduct during the course of employment that is materially adverse to the interests of the Corporation, including failures to comply with rules and regulations, fraud or
conduct contributing to financial restatements or irregularities; or 

  

	 	The employee violates any post-termination obligations owed to the Corporation or any agreement restricting post-employment conduct; or 

 

	 	The employee engages in (i) the solicitation or diversion of customers or employees or engages in competition with the Corporation during employment or (ii) the
solicitation or diversion of customers or employees during the one year period commencing upon termination of employment with the Corporation, unless otherwise covered by an agreement or obligation restricting post-employment conduct, which would
control. 

 Addendum to July 26, 2010 Offer Letter 
 Page 2 of 2 
 Stock Option Awards 

Executive Committee 
 Summary of Terms 
  

	 Plan:     
	The Bank of New York Mellon Corporation Long-Term Incentive Plan (the "Plan") 

  

	 Term:     
	10 years 

  

	 Type:     
	Non-qualified stock options—not an Incentive Stock Option under Section 422 of the Internal Revenue Code, as amended. 

 

	 Option Price:     
	Closing price of The Bank of New York Mellon Corporation (BK) common stock on the date of grant. 

  

	 Vesting Schedule:     
	Guaranteed (per letter) 2010 Equity Bonus granted on or before March 15, 2011 

 $2,000,000 in BNY Mellon stock options. The number of stock options to be granted will be based on the estimated Black-Scholes value of the average of BNY Mellon's 25-day closing prices used for annual
employee (including executives) equity awards. 
  

	 	1/4 on first anniversary of the grant date 

 1/4 on second anniversary of the grant date 
 1/4 on third anniversary of the
grant date 
 1/4 on fourth anniversary of the grant date 

 

	 	Long-Term Equity Award Opportunity for 2011 

 The form and the terms of the award will be determined by the HRCC and subject to the BNY Mellon LTIP. 
 Stock options will forfeit if employment terminates prior to vesting, except for situations providing vesting below: 

 

	 Voluntary:     
	If voluntary termination, all options are forfeited. 

  

	 Retirement:     
	Age 55 until age 60: Unvested options forfeit on payroll separation date, three years from payroll separation date to exercise vested options. 

Age 60 until age 65: Continue vesting post-retirement. Five years from payroll separation date to exercise vested options. 

Age 65 and older. Full vesting of stock options. Seven years from payroll separation date to exercise vested options. 

 

	 Death/Disability:     
	All options fully vest. Two years to exercise vested stock options. 

  

	 Involuntary Termination    
 (without cause
and    
 No Separation Pay):     
	Unvested options forfeited; 30 days to exercise vested stock options from payroll separation date. 

  

	 Termination—Executive Committee    
 Severance Plan/Receives
Separation    
 Pay:     
	Options continue to vest during separation pay period. One-year to exercise vested stock options from payroll separation date. Unvested options forfeit on payroll separation date.

  

	 Sale of Business:     
	Pro-rata vesting of stock options based upon number of months worked. Two years from payroll separation date to exercise vested stock options. 

 

	 Change in Control:     
	Double Trigger—Options will vest if the Corporation terminates the optionee's employment "without cause", as defined in the Plan, within two years after the occurrence of a post-grant date
Change in Control, as defined in the Plan, and optionee will have a minimum of one-year to exercise such vested stock options. 

  

	 Note:     
	Any vesting that might occur within one-year from grant date (other than due to death, disability or prior contractual obligation) shall be delayed until the one-year anniversary of grant date.

  

	 	Terms and agreements for awards in non-US locations may be modified as the Corporation deems necessary or advisable in connection with local laws, regulations or
practices. 

  

	 	Retirement and Disability Provisions are NOT applicable to grants in European Union. 

 

	 Clawback/Forfeiture Provisions:    
 (also as
required by applicable law)     
	The employee engages in conduct during the course of employment that is materially adverse to the interests of the Corporation, including failures to comply with rules and regulations, fraud or
conduct contributing to financial restatements or irregularities; or 

  

	 	The employee violates any post-termination obligations owed to the Corporation or any agreement restricting post-employment conduct; or 

 

	 	The employee engages in (i) the solicitation or diversion of customers or employees or engages in competition with the Corporation during employment or (ii) the
solicitation or diversion of customers or employees during the one year period commencing upon termination of employment with the Corporation, unless otherwise covered by an agreement or obligation restricting post-employment conduct, which would
control. 

 Second Addendum 

Clawback of Cash 
 BNY
Mellon has the right to require you to repay some or all of any cash incentive award within three years of the award date if it reasonably believes you engaged in fraud, or directly or indirectly caused or contributed to any financial restatement or
other irregularity during the performance period. In addition, any award to you under this letter will be subject to recovery to the extent contemplated by Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and any
implementing rules or regulations or to the extent otherwise required by applicable law.

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