Document:

Letter Agreement with Releases, dated June 30, 2006

 Exhibit 10.1 
 June 30, 2006 
 Joseph M. Velli 
 [Address] 
 LETTER AGREEMENT with RELEASES 
 Dear Joe: 
 This Letter Agreement (“Letter Agreement”) sets forth our agreement regarding the termination of your employment with The Bank of New York (the
“Company”) upon the consummation of the sale of BNY Brokerage, Inc., BNY Research, Commission and Payment Services LLC and Global Execution Technologies Limited, as described in the Contribution Agreement by and among The Bank of New York
Company, Inc. (“BNY Co.”) and ConvergEx Holdings, LLC (“Holdings”) dated as of the date herewith (“Contribution Agreement”). It sets forth the payments and benefits that you will receive upon your termination of
employment as set forth herein as well as the additional payments and benefits that you will receive if you sign the attached First and Second Releases (Attachments A and B respectively) as described in Section II(13) below.

 This Letter Agreement shall be a binding obligation of the parties as of the date first written above, but this Letter Agreement and any Release executed
by you hereunder shall become null and void if the Contribution Agreement is terminated prior to the “Closing” (as such term is defined in the Contribution Agreement) or if the Closing occurs and you elect to terminate the Employment
Agreement with Holdings and BNY ConvergEx Group, LLC (“Group”) dated today (“Employment Agreement”) in accordance with its terms prior to the Closing. In this connection, the provisions of BNY Co.’s Code of Conduct
(September 30, 2005 edition) (“Code of Conduct”) that would or could potentially be breached by your execution of the Employment Agreement on or prior to the Closing are hereby waived. 
 Termination Date: Your employment with the Company and its affiliates shall terminate effective upon the Closing (“Termination Date”), on which
date any delegation of signing authority to you by the Company shall be revoked and your title and participation on the BNY Co. Executive Committee shall cease. 

	I.	Payments and Benefits: 

  

	 	1.	Payment upon Termination: Shortly after the Termination Date, you will be paid for any unused but accrued vacation. This payment will be paid to you in the same manner
as you had been receiving your bi-weekly salary (that is, by direct deposit or check, as applicable). 

  

	 	2.	Stock Option Grants: Options that are vested as of your Termination Date, or become vested within three (3) months of your Termination Date, shall be exercisable
for a period of three (3) months following your Termination Date. Options that are not vested within three (3) months of your Termination Date shall be forfeited. A copy of your Stock Option Grant Detail Report is attached as
Attachment C. 

  

	 	3.	Executive Disability Plan: As a member of the Company’s Executive Disability Plan, you have an individual insurance policy in your name. You may continue your
Executive Disability coverage with the carrier, Unum Provident, under the terms of your policy, by paying the premiums yourself. 

  

	 	4.	Executive Bonus Life Insurance Plan: As a participant in the Executive Bonus Life Insurance Plan, you currently have an individual life insurance policy in your name.
You may continue your Life Insurance coverage with the carrier, New York Life, under the terms of your policy, by paying the premiums yourself. 

  

	 	5.	Non-Contributory Life Insurance Plan: You will be able to convert your coverage under the Non-Contributory Life Insurance Plan to an individual policy with Prudential
if you so elect. 

  

	 	6.	Defined Benefit Plan: Your benefits under the Retirement Plan of The Bank of New York Company, Inc. are vested and shall be payable to you in accordance with such
Plan. 

 The Company is also offering you the opportunity to receive payments and benefits in addition to those described above. In order to
receive these payments and/or benefits, you must execute the First and Second Releases in accordance with the provisions of Section II(13) below. These additional payments and benefits are: 
  

	II.	Additional Payments and Benefits: 

  

	 	7.	Special Compensation Award: Provided that the Closing occurs during the 2006 calendar year, a Special Compensation Award determined in accordance herewith, less
applicable taxes, will be paid to you in cash at the Closing. The amount of this Special Compensation Award, less applicable taxes, shall be determined by multiplying $3,867,044.00 by a fraction, the numerator of which is the number of days from
January 1, 2006 to the Closing and the denominator of which is 365. 

  

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	 	8.	Special Cash Payments: In addition, a Special Cash Payment of $750,000.00, less applicable taxes, will be paid to you at the Closing. In addition, a second Special
Cash Payment equal to $5,771,500.00, less applicable taxes, will be paid to you at the Closing. 

 Upon your written
instructions to the Company all or a portion of the cash payments in II(7) and II(8) shall be paid to Holdings on your behalf at the Closing. A draft of such written instructions is attached for your convenience as Attachment D. 

 

	 	9.	Restricted Stock: All of your outstanding restricted shares and share units shall be forfeited as of the Termination Date. 

  

	 	10.	Performance Shares: All of your outstanding performance shares and share units (including any shares or share units earned but not delivered) shall be forfeited as of
the Termination Date. 

  

	 	11.	Stock Option Grants: Rather than as noted in Section I(2) above, all your outstanding stock options shall fully vest as of the Termination Date and such options shall
be treated in accordance with this Section II(11). For stock options granted prior to February 8, 2000, you will have up to three (3) months from your Termination Date, or to the original expiration date, whichever is earlier, to exercise
any outstanding stock options you may have been granted. For stock options granted on or after February 8, 2000 but prior to 2006, you will have up to three (3) years from your Termination Date, or to the original expiration date,
whichever is earlier, to exercise any outstanding stock options you may have been granted. 

 For stock options granted in 2006,
you will have through the full ten (10) year term, in accordance with the applicable stock option agreement, to exercise any outstanding stock options you may have been granted. Notwithstanding the foregoing, any options granted to you in 2006
which are not vested as of the Termination Date, or do not become vested within three (3) months of the Termination Date, in both cases pursuant to their original terms, will become fully vested three (3) months following your Termination
Date, or one year (1) from grant date, whichever is later (see Attachment C). 
  

	 	12.	Medical Benefits. You are currently eligible to receive direct access only (full cost) medical benefits under the Company’s retiree medical program (in accordance
with the terms and conditions of such program) (“Retiree Medical Program”) so long as you terminate service from the Company on or after age 55. The Company will consider your continued and uninterrupted full-time service with Holdings or
Group equivalent to service with the Company for purposes of your eligibility to receive benefits under the Retiree Medical Program such that you will be eligible to participate in the Retiree Medical Program upon retirement from Holdings and Group
on or after age 55 on the same basis as if you had retired from the Company on the date on which you retire from Holdings and Group. 

  

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	 	13.	Conditions you must meet in order to receive the payments and benefits described in this Section II above: You must sign and not revoke your execution of the Release
in the time period set forth herein. 

  

	 	(a)	As to the First Release: You may take until at least 21 days following the date of this Letter Agreement to consider whether or not you will accept the Company’s
offer, but must sign the First Release (Attachment A) no later than eight (8) days prior to the Closing. Furthermore, you shall have seven (7) days following your signing of the First Release to revoke your execution. If you
revoke your execution of the First Release within the time period contemplated herein, the provisions of this Letter Agreement shall be of no force or effect. Please note that you must sign the First Release before a notary. If you cannot locate a
notary, please contact me and I will arrange either to have a notary present in my office when you wish to sign, or will give you an address at another Company location where notaries are available. You may wish to consult an attorney before
executing the First Release. 

  

	 	(b)	As to the Second Release: In addition, on the day of the Closing, you must sign and have notarized the Second Release (Attachment B) and deliver such
executed Second Release to the Company immediately prior to the consummation of the transactions contemplated by the Contribution Agreement. 

 It is expressly understood and agreed that if you accept the Company’s offer to provide the additional payments and/or benefits described in Section II, above, you will not be entitled to any other payment or benefit or to participate
in any other benefit plan, including the BNY Co. Supplemental Executive Retirement Plan, other than as set forth above or those in which you have vested rights as of your Termination Date. A listing of those plans is attached as Attachment
E. 
 You acknowledge that you have been advised by your counsel as to the application of Section 409A of the Internal Revenue Code of 1986, as
amended and its implementing guidance and regulations (“Section 409A”), to this Letter Agreement. If your counsel determines that the application of Section 409A to any payment or benefit under this Letter Agreement would result in
your being subject to the payment of interest or additional tax under Section 409A, or to a delay in any payment or benefit as a consequence of Section 409A, the Company agrees to renegotiate in good faith the terms of this Letter
Agreement with the intent to avoid or reduce the application of Section 409A on you. 
 By signing the First and Second Releases, unless and until the
Company publicly discloses this Letter Agreement, you agree to maintain in confidence and not publish, release or in any manner disseminate or disclose any communications relating to the negotiations which led to the execution of this Letter
Agreement, except to your immediate family, attorneys and/or tax advisors, Holdings and Group or its or their boards of managers, as required by law or to the extent necessary in connection with enforcing any rights you may have under this Letter
Agreement or the First and Second Releases. 
  

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 You also agree to keep confidential all non-public business-related information about the Company, its parent, all of
their present and former subsidiaries and affiliates, and each of them, including without limitation, business contacts, transactions, contracts, finances, personnel, customers or corporate affairs of which you became aware during the tenure of your
employment, whether or not relating to or arising out of your specific job duties (“Confidential Information”). The term “Confidential Information” does not include information which: (1) is generally available to the public
other than as a result of a disclosure by the Company or an affiliate, (2) was available to the Company or an affiliate on a non-confidential basis prior to its disclosure by it or its agents and (3) becomes available to the Company or an
affiliate on a non-confidential basis from a source other than its agents, provided, however, that such source is not bound by a confidentiality obligation to the Company, its affiliates or its agents. Nothing herein shall prevent you from
disclosing Confidential Information necessary to enforce your rights under this Letter Agreement or the First or Second Releases or in connection with any cooperation you may provide to the Company pursuant to this Letter Agreement. Furthermore, you
shall not be deemed to be in breach of the confidentiality provisions of this paragraph in connection with the performance of your duties and responsibilities for Holding, Group and/or their subsidiaries on and following the Closing or in connection
with performing any services for the B-Trade/G-Trade businesses on and following the Closing. 
 For so long as you are employed by Holdings or Group, the
provisions of Section III.B.1 of the Code of Conduct are waived with respect to your employment-related activities at Holdings, Group or their subsidiaries or as necessary for you to perform your employment-related activities for the B-Trade/G-Trade
businesses. 
 You also agree not to take any action orally or in writing or make any public statement that would disparage the Company and/or its parents or
any of its affiliates. 
 You also agree to cooperate with the Company with respect to any past, present or future legal matters that relate to or arise out
of your employment with the Company. The Company shall provide you with indemnification to the extent and on the terms set forth in Article VII of the Company’s By-Laws as in effect on the date hereof (provided that you shall also have the
benefit of any favorable amendments thereto after the date hereof) on a basis no less favorable to you than it would provide such indemnification to its directors and senior executives and, if you are asked or required by the Company to testify or
otherwise participate in any litigation, investigation or inquiries involving the Company, its parent, subsidiaries or affiliates, whether administrative, civil or criminal in nature, (each a “Proceeding”) or you become a party to any such
Proceeding, the Company will pay promptly as incurred any and all expenses reasonably incurred by you in connection with such participation or Proceeding (including, without limitation, the expenses for separate legal representation to the extent
the Company and you jointly determine in good faith that such separate representation is warranted by the circumstances). The Company also agrees to continue to provide you with coverage under the Company’s directors’ and officers’
insurance policies at a level and on terms and conditions no less favorable to you than the Company provides its senior executives until such time as suits or claims can no longer be brought against you as a matter of law. 
  

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 Except as otherwise permitted under the Contribution Agreement, you agree that as of the Termination Date (or promptly
thereafter) you will return all Company-owned property, including but not limited to, any keys, identification cards, credit cards, lap top computers, passwords and other property. As of the Termination Date, you will no longer have access to the
Company car and driver you have been utilizing for business purposes. 
 The Company acknowledges receiving a copy of the Employment Agreement. The payments
and benefits provided to you herein shall not be subject to offset by the Company or repayment by you for any reason including on account of any claims the Company or its affiliates may have against you. 
 Both you and the Company expressly acknowledge, represent and agree that this Letter Agreement and the attachments to this Letter Agreement are fully integrated and
contain and constitute the complete and entire agreement and understanding of both of us with respect to the ending of the employment relationship and supersede any and all agreements, understandings, and discussions, whether written or oral,
between us with respect to the subject matter hereof, including the July 11, 2000 letter agreement between BNY Co. and you relating to a termination after a Change in Control (as therein defined) of BNY Co. We both further acknowledge,
represent and agree that neither you nor the Company has made any representations, promises or statements to induce the other to enter into this Letter Agreement, and both you and the Company specifically disclaim reliance, and represent that there
has been no reliance, on any such representations, promises or statements and any rights arising therefrom. 
 The invalidity or unenforceability of any
provision of this Letter Agreement and the First and Second Releases shall have no effect on and shall not impair the validity or enforceability of any other provision of this Letter Agreement and the First and Second Releases. 
 This Letter Agreement shall be governed by the laws of the State of New York (regardless of conflict of laws principles) as to all matters including, without limitation,
validity, construction, effect, performance and remedies. 
 This Letter Agreement is without prejudice to the Company’s and/or your rights and
remedies, all of which it expressly reserves in the event the proposal set forth in this Letter Agreement is not accepted and the First and Second Releases are not executed by you. Neither this Letter Agreement nor the attachments constitutes an
admission by either party. 
 In order to effectuate this arrangement, please sign this Letter Agreement and sign (and have notarized) the attached First
Release no later than eight (8) days prior to the Closing and the Second Release on the Closing. 
 This Letter Agreement may be executed in
counterparts, each of which shall be deemed an original but all of which taken together shall constitute one and the same instrument. 
  

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 On behalf of the Company, I thank you for your service and wish you well in your future endeavors. 
  

	
	 Sincerely,

	
	   
	 Thomas E. Angers

	 Executive Vice President

	 Human Resources

	 Tel: (212) 635-7715

 Accepted and agreed to: 
  

							
	  	  		  	  	  	
	Joseph M. Velli	  		  	Date	  	

  

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 Attachment A 
 FIRST RELEASE 
 First Release executed this             
day of                      by Mr. Joseph M. Velli, whose address is [Address]. 
 In consideration of the gross sum of one dollar ($1.00) and other valuable consideration received from The Bank of New York or its affiliate employing you (the
“Company”), as set forth more fully in the attached Letter Agreement dated June 30, 2006 (the “Letter Agreement”), as of the date of this First Release, Mr. Velli, for himself and for his heirs, executors,
administrators, successors and assigns, forever releases and discharges the Company, its parent, all of their present and former subsidiaries and affiliates (“Company Affiliated Parties”), and each of them, all of their present and former
officers, directors, employees, agents, representatives, successors and assigns, and each of them (hereinafter collectively referred to as the “Released Parties”), from and against any and all legally waiveable claims, demands, causes of
action, suits, grievances, proceedings, complaints, charges, liabilities damages and remedies of any type (individually and collectively, “Claims”) that Mr. Velli may have by reason of any matter, cause, act or omission, as of the
date of this Release, arising out of or relating to Mr. Velli’s employment with or termination from the Company or any affiliate. This release applies to Claims that Mr. Velli knows about and those Mr. Velli may not know about
occurring at any time on or before the effective date of the attached Letter Agreement. 
 This includes a release of all rights and Claims under Title VII
of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act of 1967, as amended, the Rehabilitation Act of 1973, the Civil Rights Acts of 1866 and 1991, the Americans with Disabilities Act of 1990, the Equal Pay Act of
1963, the Family & Medical Leave Act of 1993, the Fair Labor Standards Act of 1938, the Older Workers Benefit Protection Act of 1990, the Occupational Safety and Health Act of 1970, the Sarbanes-Oxley Act of 2002, the Worker Adjustment and
Retraining Notification Act of 1989, the New York State and New York City anti-discrimination laws, as well as any other federal, state or local statute, regulation or common law regarding employment, employment discrimination, termination,
retaliation, equal opportunity or wage and hour. Mr. Velli specifically understands that he is releasing Claims based on race, color, sex, sexual orientation or preference, marital status, religion, national origin, citizenship, veteran status,
disability, age and other category protected by law. 
 This also includes a release of any Claims for breach of contract, any tortious act or other civil
wrong, attorney’s fees, and all compensation and benefit claims including, without limitation, Claims concerning salary, bonus and any award(s) or grant(s) under any incentive compensation plan or program. 
 Notwithstanding the foregoing, this instrument does not release the Company from its obligations under the Letter Agreement dated June 30, 2006. Nor does it release
the Company from its obligations pursuant to any other Company benefit plan not specifically referred to in the Letter Agreement dated June 30, 2006 

  

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with respect to which Mr. Velli has vested rights on the date hereof or as of the date of his termination of employment, all of which benefits shall be
governed by, and expire in accordance with, the terms of those plans; nor does it release the Company or any Company Affiliated Party from any obligations it has to indemnify Mr. Velli pursuant to its or its affiliates’ corporate
governance documents or applicable law or to cover him pursuant to the Company’s and/or its affiliates’ insurance policies. Nor does it release the Company from its obligations to Mr. Velli as a past, present, or future customer or
client of the Company. In addition, nothing herein shall release any Company Affiliated Party from any claim that arises after the date of this First Release, or any claim Mr. Velli may have pursuant to the Contribution Agreement or any related
agreement. 
 As of the date of this First Release, Mr. Velli represents and agrees that he has not filed any claims, charges, complaints, lawsuits or
arbitrations against the Company in any administrative, judicial or arbitral forum with any municipal, state or federal agency charged with the enforcement of any law or any self regulatory organization relating to the Claims he has released herein
and he agrees not to institute or be represented as a party in, any lawsuit, charge, complaint or other proceeding against or involving the Company based on his employment with the Company relating to the claims he has released herein, whether by
individual or class action, with any administrative agency, regulatory, judicial, or other forum, under any federal, state or local laws, rules, regulations or any other basis, based upon any act or omission occurring up to and including the date
this First Release is fully executed, and he agrees that he shall not seek or accept any award or settlement from any such source or proceeding. In the event that he institutes, is a party to, or is a member of a class that institutes any such
action, Mr. Velli’s claims shall be dismissed or class membership terminated with prejudice immediately upon presentation of this First Release. This First Release does not affect his participation in any investigation conducted by the
Equal Employment Opportunity Commission, but he acknowledges that he is not entitled to any other monies other than those payments described in the Letter Agreement. Notwithstanding the foregoing, the above does not apply to any lawsuit, charge,
complaint or other proceeding claiming age discrimination by him against the Company or challenging the validity of the provisions of the First Release releasing and discharging claims under the Age Discrimination in Employment Act of 1967 or the
Older Workers Benefit Protection Act of 1990. 
 Mr. Velli represents and warrants that he has been advised to consult independent legal counsel before
signing this First Release and that he has executed this First Release after having the opportunity to consider its terms for at least 21 days. Mr. Velli further represents and warrants that he has read this First Release carefully, that he has
discussed it, or has had reasonable opportunity to discuss it, with his attorney, that he fully understands its terms, and that he is signing it voluntarily and of his own free will. 
 This First Release shall become effective and irrevocable on the 8th day following the day on which Mr. Velli signed it, unless Mr. Velli at any time prior to that effective date revokes this First Release
by giving written notice of revocation to Thomas E. Angers, Executive Vice President, at the address set forth in the attached Letter Agreement. Such revocation of this First Release shall operate to revoke all of the Company’s obligations
under the Letter Agreement, except to the extent such payment or benefit is due pursuant to the applicable plan or law. 
  

	
	
	   
	Joseph M. Velli

  

 9 

							
	STATE OF	  	)	  		  	
		  	)ss.:	  		  	
	COUNTY OF	  	)	  		  	

 On this              day of
                        , before me personally came Mr. Joseph M. Velli to me known and known to me to be the person
described in and who executed the foregoing First Release and he duly acknowledged to me that he executed the same. 
  

	
	
	   
	Notary Public

  

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 Attachment B 
 SECOND RELEASE 
 Second Release executed this
             day of                          by
Mr. Joseph M. Velli, whose address is [Address]. 
 In consideration of the gross sum of one dollar ($1.00) and other valuable consideration
received from The Bank of New York or its affiliate employing you (the “Company”), as set forth more fully in the attached Letter Agreement dated June 30, 2006 (the “Letter Agreement”), as of the date of this Second Release,
Mr. Velli, for himself and for his heirs, executors, administrators, successors and assigns, forever releases and discharges the Company, its parent, all of their present and former subsidiaries and affiliates (“Company Affiliated
Parties”), and each of them, all of their present and former officers, directors, employees, agents, representatives, successors and assigns, and each of them (hereinafter collectively referred to as the “Released Parties”), from and
against any and all legally waiveable claims, demands, causes of action, suits, grievances, proceedings, complaints, charges, liabilities damages and remedies of any type (individually and collectively, “Claims”) that Mr. Velli may
have by reason of any matter, cause, act or omission, as of the date of this Release, arising out of or relating to Mr. Velli’s employment with or termination from the Company or any affiliate. This release applies to Claims that
Mr. Velli knows about and those Mr. Velli may not know about occurring at any time on or before the effective date of the attached Letter Agreement. 
 This includes a release of all rights and Claims under Title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act of 1967, as amended, the Rehabilitation Act of 1973, the Civil Rights Acts of 1866 and
1991, the Americans with Disabilities Act of 1990, the Equal Pay Act of 1963, the Family & Medical Leave Act of 1993, the Fair Labor Standards Act of 1938, the Older Workers Benefit Protection Act of 1990, the Occupational Safety and Health
Act of 1970, the Sarbanes-Oxley Act of 2002, the Worker Adjustment and Retraining Notification Act of 1989, the New York State and New York City anti-discrimination laws, as well as any other federal, state or local statute, regulation or common law
regarding employment, employment discrimination, termination, retaliation, equal opportunity or wage and hour. Mr. Velli specifically understands that he is releasing Claims based on race, color, sex, sexual orientation or preference, marital
status, religion, national origin, citizenship, veteran status, disability, age and other category protected by law. 
 This also includes a release of any
Claims for breach of contract, any tortious act or other civil wrong, attorney’s fees, and all compensation and benefit claims including, without limitation, Claims concerning salary, bonus and any award(s) or grant(s) under any incentive
compensation plan or program. 
 Notwithstanding the foregoing, this instrument does not release the Company from its obligations under the Letter Agreement
dated June 30, 2006. Nor does it release the Company from its obligations pursuant to any other Company benefit plan not specifically referred to in the Letter Agreement dated June 30, 2006 with respect to which Mr. Velli has vested
rights on the date hereof, all of which benefits shall be 

  

 11 

 
governed by, and expire in accordance with, the terms of those plans; nor does it release the Company or any Company Affiliated Party from any obligations it
has to indemnify Mr. Velli pursuant to its or its affiliates’ corporate governance documents or applicable law or to cover him pursuant to the Company’s and/or its affiliates’ insurance policies. Nor does it release the Company
from its obligations to Mr. Velli as a past, present, or future customer or client of the Company. In addition, nothing herein shall release any Company Affiliated Party from any claim that arises after the date of this Second Release, or any
claim Mr. Velli may have pursuant to the Contribution Agreement or any related agreement. 
 As of the date of this Second Release, Mr. Velli
represents and agrees that he has not filed any claims, charges, complaints, lawsuits or arbitrations against the Company in any administrative, judicial or arbitral forum with any municipal, state or federal agency charged with the enforcement of
any law or any self regulatory organization relating to the Claims he has released herein and he agrees not to institute or be represented as a party in, any lawsuit, charge, complaint or other proceeding against or involving the Company based on
his employment with the Company relating to the claims he has released herein, whether by individual or class action, with any administrative agency, regulatory, judicial, or other forum, under any federal, state or local laws, rules, regulations or
any other basis, based upon any act or omission occurring up to and including the date this Second Release is fully executed, and he agrees that he shall not seek or accept any award or settlement from any such source or proceeding. In the event
that he institutes, is a party to, or is a member of a class that institutes any such action, Mr. Velli’s claims shall be dismissed or class membership terminated with prejudice immediately upon presentation of this Second Release. This
Second Release does not affect his participation in any investigation conducted by the Equal Employment Opportunity Commission, but he acknowledges that he is not entitled to any other monies other than those payments described in the Letter
Agreement. Notwithstanding the foregoing, the above does not apply to any lawsuit, charge, complaint or other proceeding claiming age discrimination by him against the Company or challenging the validity of the provisions of the Second Release
releasing and discharging claims under the Age Discrimination in Employment Act of 1967 or the Older Workers Benefit Protection Act of 1990. 
 Mr. Velli represents and warrants that he has been advised to consult independent legal counsel before signing this Second Release and that he has executed this Second Release after having the opportunity to consider its terms for at
least 21 days. Mr. Velli further represents and warrants that he has read this Second Release carefully, that he has discussed it, or has had reasonable opportunity to discuss it, with his attorney, that he fully understands its terms, and that
he is signing it voluntarily and of his own free will. 
 This Second Release shall become effective and irrevocable immediately upon signing. 
  

	
	
	   
	Joseph M. Velli

  

 12 

							
	STATE OF	  	)	  		  	
		  	)ss.:	  		  	
	COUNTY OF	  	)	  		  	

 On this              day of
                        , before me personally came Mr. Joseph M. Velli to me known and known to me to be the person
described in and who executed the foregoing Second Release and he duly acknowledged to me that he executed the same. 
  

	
	
	   
	Notary Public

  

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 Attachment C 
 [Stock Option Grant Detail Report] 
  

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 Attachment D 
 [Date]             
 Thomas E. Angers 
 Executive Vice President 
 Human Resources 
 The Bank of New York 
 One Wall Street 
 New York, NY 
 Dear Tom: 
 Pursuant to Section II(8) of the letter agreement between The Bank of New York (the “Company”) and me dated as June 30, 2006 (the
“Letter Agreement”), I hereby instruct the Company to pay $                         at the Closing to
                     on my behalf and to pay the remaining portion of the payments in Section II(7) and (8) of the Letter Agreement,
after deduction for all applicable taxes, directly to me. 
  

	
	 Sincerely,

	
	   
	 Joseph M. Velli

  

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 Attachment E 
 OTHER COMPANY BENEFIT PLANS 
 TO WHICH INDIVIDUAL HAS VESTED RIGHTS 
 AS OF TERMINATION DATE 
  

	1.	The Retirement Plan of The Bank of New York Company, Inc. 

  

	2.	The Bank of New York Company, Inc. Excess Benefit Plan 

  

	3.	The Employee Savings & Investment Plan of The Bank of New York Company, Inc. 

  

 16Employee Severance Agreement, dated July 11, 2000

 Exhibit 10.2 
 July 11, 2000 
 Mr. Joseph M. Velli 
 The Bank of New York 
 One Wall Street 
 New York, New York 10286 
 Dear Mr. Velli: 
 The
Bank of New York Company, Inc., a New York corporation (the “Company”), considers the establishment and maintenance of a sound and vital management to be essential to protecting and enhancing the best interests of the Company and its
shareholders. In this connection, the Company recognizes that, as is the case with many publicly held corporations, the possibility of a change in control may arise and that such possibility, and the uncertainty and questions which it may raise
among management of the Company and its principal subsidiary, The Bank of New York (the “Bank”), may result in the departure or distraction of management personnel to the detriment of the Company and its shareholders. Accordingly, the
Board of Directors of the Company (the “Board”) has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of management of the Company and the Bank to their assigned
duties without distraction in circumstances arising from the possibility of a change in control of the Company. In particular, the Board believes it important, should the Company or its shareholders receive a proposal for transfer of control of the
Company, that you be able to assess and advise the Board whether such proposal would be in the best interests of the Company and its shareholders and to take such other action regarding such proposal as the Board might determine to be appropriate,
without being influenced by the uncertainties of your own situation. 
 In order to induce you to remain in the employ of the Company, this
letter agreement sets forth the severance benefits which the Company agrees will be provided to you in the event your employment with the Company or the Bank is terminated subsequent to a “change in control” of the Company under the
circumstances described below. 
 1. Agreement to Provide Services; Right to Terminate. 
 (i) Except as otherwise provided in paragraph (ii) below, the Company, the Bank or you may terminate your employment at any time, subject to the
Company’s providing the benefits hereinafter specified in accordance with the terms hereof. 

 Mr. Joseph M. Velli 
  

 (ii) In the event a tender offer or exchange offer is made by a Person (as hereinafter defined) for
more than 25% of the combined voting power of the Company’s outstanding securities ordinarily having the right to vote at elections of directors (“Voting Securities”), including shares of the common stock of the Company, you agree
that you will not leave the employ of the Company or the Bank (other than as a result of Disability or upon Retirement, as such terms are hereinafter defined) and will render the services contemplated in the recitals to this Agreement until such
tender offer or exchange offer has been abandoned or terminated or a change in control of the Company, as defined in Section 3 hereof, has occurred. For purposes of this Agreement, the term “Person” shall mean and include any
individual, corporation, partnership, group, association or other “person”, as such term is used in Section 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), other than the Company, the Bank, any other
subsidiary of the Company or any employee benefit plan(s) sponsored by the Company, the Bank or any other subsidiary of the Company. 
 2.
Term of Agreement. This Agreement shall commence on the date hereof and shall continue in effect until December 31, 2000; provided, however, that commencing on January 1, 2001 and each January 1 thereafter, the term
of this Agreement shall automatically be extended for one additional year unless at least 90 days prior to such January 1st date, the Company or you shall have given notice that this Agreement shall not be extended; and provided, further, that,
notwithstanding the delivery of any such notice, this Agreement shall continue in effect for a period of twenty-four (24) months after a change in control of the Company, as defined in Section 3 hereof, if such change in control shall have
occurred during the term of this Agreement, as it may be extended by the first proviso set forth above. Notwithstanding anything in this Section 2 to the contrary, this Agreement shall terminate if you or the Company or the Bank terminate your
employment prior to a change in control of the Company. 
 3. Change in Control. For purposes of this Agreement, a
“change in control” of the Company shall be deemed to occur if (A) any “person” (as such term is defined in Section 3(a)(9) and as used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)), excluding the Company or any of its subsidiaries, a trustee or any fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries, an underwriter temporarily holding securities
pursuant to an offering of such securities or a corporation owned, directly or indirectly, by stockholders of the Company in substantially the same proportion as their ownership of the Company, is or becomes the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of the Company’s then outstanding securities (“Voting Securities”);
provided, however, that the event described in this clause (A) shall not be deemed to be a change in control if (x) it involves the acquisition of the Company’s Voting Securities from the Company in connection with the
acquisition by the Company of a business or operations of or controlled by such person, (y) a 

  

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majority of the Incumbent Directors (as defined below) approve a resolution providing expressly that such acquisition does not constitute a change in control
under this Section 3 and (z) such person does not become the beneficial owner of 35% or more of the Company’s Voting Securities; or (B)during any period of not more than two years, individuals who constitute the Board as of the
beginning of the period (the “Incumbent Directors”) and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in clause (A) or (C) of
this sentence) whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds of the Incumbent Directors then on the Board, either by a specific vote or by approval of the
proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination (each such new director shall also be deemed to be an Incumbent Director) cease for any reason to constitute a
majority of the Board; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to directors, as a result of any other actual
or threatened solicitation of proxies or consents by or on behalf of any person other than the Board or as a result of an actual or threatened acquisition of 25% or more of the Company’s Voting Securities shall be deemed to be an Incumbent
Director; or (C) there occurs the consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its subsidiaries that requires the approval of the Company’s
shareholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination: (i) at least 60% of the total voting power of (x) the
corporation resulting from such Business Combination (the “Surviving Corporation”), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 95% or more of the voting securities
eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is represented by the Company’s Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is
represented by shares into which such Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of the Company’s Voting
Securities among the holders thereof immediately prior to the Business Combination and (ii) after giving effect to the Business Combination, at least (I) a majority of the members of the board of directors of the Surviving Corporation and
of any corporation that owns 25% or more but less than 50% of the Voting Securities of the Surviving Corporation or (II) a majority of the members of the board of directors of any corporation that owns at least 50% of the Voting Securities of
the Surviving Corporation, were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination; or (D) the shareholders of the Company approve a plan of complete
liquidation of the Company; or (E) the consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets. 
  

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 4. Termination Following Change in Control. If any of the events described
in Section 3 hereof constituting a change in control of the Company shall have occurred, you shall be entitled to the benefits provided in Section 5 hereof upon the termination of your employment with the Company or the Bank within
twenty-four (24) months after such event, unless such termination is (a) because of your death or Retirement, (b) by the Company for Cause or Disability or (c) by you other than for Good Reason (as all such capitalized terms are
hereinafter defined). 
 (i) Disability. Termination by the Company of your employment based on “Disability” shall mean your
absence from your duties with the Company on a full time basis for one hundred eighty (180) consecutive days as a result of your incapacity due to physical or mental illness, unless within thirty (30) days after Notice of Termination (as
hereinafter defined) is given to you following such absence you shall have returned to the full time performance of your duties. 
 (ii)
Retirement. Termination by you or by the Company of your employment based on “Retirement” shall mean termination on or after your attainment of age sixty-five (65). 
 (iii) Cause. Termination by the Company or the Bank of your employment for “Cause” shall mean termination upon (a) the willful and
continued failure by you to perform substantially your duties with the Company or the Bank (other than any such failure resulting from your incapacity due to physical or mental illness) after a demand for substantial performance is delivered to you
by the Chairman of the Board or President of the Company or the Chief Executive Officer of the Bank, as appropriate, which specifically identifies the manner in which such executive believes that you have not substantially performed your duties, or
(b) the willful engaging by you in illegal conduct which is materially and demonstrably injurious to the Company or the Bank. For purposes of this paragraph (iii), no act, or failure to act, on your part shall be considered “willful”
unless done, or omitted to be done, by you in bad faith and without reasonable belief that your action or omission was in, or not opposed to, the best interests of the Company or the Bank. Any act, or failure to act, based upon authority given
pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company or the Bank shall be conclusively presumed to be done, or omitted to be done, by you in good faith and in the best interests of the Company and
the Bank. It is also expressly understood that your attention to matters not directly related to the business of the Company or the Bank shall not provide a basis for termination for Cause so long as the Board has approved your engagement in such
activities. Notwithstanding the foregoing, you shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to you a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters
of the entire membership of the Board at a meeting of the Board called and held for the purpose (after reasonable notice to you and an opportunity for you, together with your counsel, to be heard before the Board), 

  

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finding that in the good faith opinion of the Board you were guilty of the conduct set forth above in (a) or (b) of this paragraph (iii) and
specifying the particulars thereof in detail. 
 (iv) Good Reason. Termination by you of your employment for “Good
Reason” shall mean termination based on: 
 (A) a determination by you, in your reasonable judgment, that there has been
an adverse change in your status or position(s) as an executive officer of the Company or the Bank as in effect immediately prior to the change in control, including, without limitation, any adverse change in your status or position as a result of a
diminution in your duties or responsibilities (other than, if applicable, any such change directly attributable to the fact that the Company is no longer publicly owned) or the assignment to you of any duties or responsibilities which are
inconsistent with such status or position(s), or any removal of you from or any failure to reappoint or reelect you to such position(s) (except in connection with the termination of your employment for Cause, Disability or Retirement or as a result
of your death or by you other than for Good Reason); 
 (B) a reduction by the Company or the Bank in your base salary as in
effect immediately prior to the change in control; 
 (C) the failure by the Company or the Bank to continue in effect any
Plan (as hereinafter defined) in which you are participating at the time of the change in control of the Company (or Plans providing you with at least substantially similar benefits) other than as a result of the normal expiration of any such Plan
in accordance with its terms as in effect at the time of the change in control, or the taking of any action, or the failure to act, by the Company or the Bank which would adversely affect your continued participation in any of such Plans on at least
as favorable a basis to you as is the case on the date of the change in control or which would materially reduce your benefits in the future under any of such Plans or deprive you of any material benefit enjoyed by you at the time of the change in
control; 
 (D) the failure by the Company or the Bank to provide and credit you with the number of paid vacation days to
which you are then entitled in accordance with its normal vacation policy as in effect immediately prior to the change in control; 
 (E) the requirement by the Company or the Bank that you be based at an office that is greater than 35 miles from where your office is located immediately prior to the change in control except for required travel on the business of the
Company or the Bank to an extent substantially consistent with the business travel obligations which you undertook on behalf of the Company or the Bank prior to the change in control; 
  

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 (F) the failure by the Company to obtain from any Successor (as hereinafter defined)
the assent to this Agreement contemplated by Section 6 hereof; 
 (G) any purported termination by the Company or the
Bank of your employment which is not effected pursuant to a Notice of Termination satisfying the requirements of paragraph (v) below (and, if applicable, paragraph (iii) above); and for purposes of this Agreement, no such purported
termination shall be effective; or 
 (H) any refusal by the Company or the Bank to continue to allow you to attend to matters
or engage in activities not directly related to the business of the Company or the Bank which, prior to the change in control, you were permitted by the Board to attend to or engage in. 
 For purposes of this Agreement, “Plan” shall mean any compensation plan such as an incentive, stock option or restricted stock plan or any employee benefit plan such as a thrift, pension, profit sharing,
medical, disability, accident, life insurance plan or a relocation plan or policy or any other plan, program or policy of the Company or the Bank intended to benefit employees. 
 (v) Notice of Termination. Any purported termination by the Company or the Bank or by you following a change in control shall be
communicated by written Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon.

 (vi) Date of Termination. “Date of Termination” following a change in control shall mean (a) if your
employment is to be terminated for Disability, thirty (30) days after Notice of Termination is given (provided that you shall not have returned to the performance of your duties on a full-time basis during such thirty (30) day period),
(b) if your employment is to be terminated by the Company or the Bank for Cause or by you pursuant to Sections 4(iv)(F) and 6 hereof or for any other Good Reason, the date specified in the Notice of Termination, or (c) if your
employment is to be terminated by the Company or the Bank for any reason other than Cause, the date specified in the Notice of Termination, which in no event shall be a date earlier than ninety (90) days after the date on which a Notice of
Termination is given, unless an earlier date has been expressly agreed to by you in writing either in advance of, or after, receiving such Notice of Termination. In the case of termination by the Company or the Bank of your employment for Cause, if
you have not previously expressly agreed in writing to the termination, then within thirty (30) days after receipt by you of the Notice of Termination with respect thereto, you may notify the Company that a dispute exists concerning the
termination, in which event the Date of Termination shall be the date set either by mutual written agreement of the parties or by the arbitrators in a proceeding as provided in Section 13 hereof. During the pendency of any such dispute, the

  

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Company or the Bank will continue to pay you your full compensation in effect just prior to the time the Notice of Termination is given and until the dispute
is resolved in accordance with Section 13. 
 5. Compensation Upon Termination or During Disability; Other
Agreements. 
 (i) During any period following a change in control of the Company that you fail to perform your duties as a result of
incapacity due to physical or mental illness, you shall continue to receive your salary at the rate then in effect and any benefits or awards under any Plans shall continue to accrue during such period, to the extent not inconsistent with such
Plans, until your employment is terminated pursuant to and in accordance with Sections 4(i) and 4(vi) hereof. Thereafter, your benefits shall be determined in accordance with the Plans then in effect. 
 (ii) If your employment shall be terminated for Cause following a change in control of the Company, the Company or the Bank shall pay you your salary
through the Date of Termination at the rate in effect just prior to the time a Notice of Termination is given plus any benefits or awards (including both the cash and stock components) which pursuant to the terms of any Plans have been earned and
are otherwise payable, but which have not yet been paid to you. Thereupon the Company and the Bank shall have no further obligations to you under this Agreement. 
 (iii) If, within twenty-four (24) months after a change in control of the Company shall have occurred, your employment by the Company or the Bank shall be terminated (a) by the Company or the Bank other than
for Cause, Disability or Retirement or (b) by you for Good Reason, then the Company shall pay or cause the Bank to pay to you, no later than the fifth business day following the Date of Termination, without regard to any contrary provisions of
any Plan, the following: 
 (A) (x) your salary through the Date of Termination at the rate in effect just prior to the time a Notice of
Termination is given, (y) any benefits or awards (including both the cash and stock components) which pursuant to the terms of any Plans have been earned and otherwise payable, but which have not yet been paid to you and (z) a pro
rata portion of your annual bonus for the fiscal year in which the Date of Termination occurs in an amount equal to the result of multiplying (1) the greater of (I)(aa) the bonus payable to you for the prior fiscal year pursuant to the
terms of the Company’s 1994 Management Incentive Compensation Plan (the “MICP”)(or any successor plan) and (bb) one plus the average percentage increase (if any) of (i) the bonus payable under the MICP (or any successor plan) for
the fiscal year in which your Date of Termination occurs, determined based on performance through your Date of Termination, to each of the officers of the Company who is both (w) a named executive officer (within the 

  

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meaning of Item 402 of Regulation S-K under the Exchange Act) of the Company for the last complete fiscal year which ended prior to the date of the
change in control of the Company and (v) is a Covered Employee as such term is defined in the 1994 MICP (or a successor plan) for the fiscal year in which the change in control of the Company occurs over (ii) the bonus payable to each of
such named executive officers for the fiscal year immediately prior to your Date of Termination and (II) the bonus payable to you under the MICP (or any successor plan) for the fiscal year ended prior to your Date of Termination, and (2) a
fraction, the numerator of which is the number of days in the fiscal year in which the Date of Termination occurs through the Date of Termination and the denominator of which is three hundred sixty-five (365); and 
 (B) as severance pay a lump sum in cash equal to the sum of the following amounts: 
 (1) two times the sum of (x) your annual rate of salary in effect just prior to the time a Notice of Termination is given or, if
higher, the annual salary in effect immediately prior to the change in control of the Company and (y) the highest annual bonus earned by you from the Company and its affiliates during the last three (3) completed fiscal years of the
Company immediately preceding your Date of Termination, annualized in the event you were not employed by the Company or its affiliates for the whole of any such fiscal year (the “Bonus Amount”); and 
 (2) the lump sum actuarial equivalent (utilizing actuarial assumptions no less favorable to you than those in effect under the
Company’s Retirement Plan immediately prior to the change in control) of the excess of the (A) benefits under the Company’s Retirement Plan, Excess Benefit Plan and Supplemental Executive Retirement Plan (collectively, the
“Defined Benefit Plans”) which you would receive if your employment continued for two years after the Date of Termination (and that your age was increased by two years from your age at the Date of Termination), assuming for this purpose
that (x) your accrued benefits under the Defined Benefit Plans were fully vested, (y) in each of the two years you received (a) salary at the annual rate in effect immediately prior to the change in control and (b) bonus
compensation equal to the Bonus Amount and (z) there were no reduction or offset under the Defined Benefit Plans for the actuarial value of your account under the Employee Stock Ownership Plan of The Bank of New York Company, Inc. (the
“ESOP”), over (B) the vested accrued benefits payable under the Defined Benefit Plans as of the Date of Termination if there were no reduction or offset thereunder for the actuarial value of your ESOP account. 
  

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 (iv) If, within twenty-four (24) months after a change in control of the Company, as defined in
Section 3 above, shall have occurred, your employment by the Company or the Bank shall be terminated (a) by the Company or the Bank other than for Cause, Disability or Retirement or (b) by you for Good Reason, then the Company shall
maintain or cause the Bank to maintain in full force and effect, for the continued benefit of you and your dependents for a period terminating on the earliest of (a) two years after the Date of Termination, (b) the commencement date of
equivalent benefits from a new employer or (c) your attainment of age sixty-five (65), all insured and self-insured employee welfare benefit Plans in which you were entitled to participate immediately prior to the Date of Termination,
provided that your continued participation is possible under the general terms and provisions of such Plans (and any applicable funding media) and you continue to pay an amount equal to your regular contribution under such plans for such
participation. If, at the end of two years after the Termination Date, you have not reached your sixty-fifth birthday and you have not previously received or are not then receiving equivalent benefits from a new employer, the Company shall or cause
the Bank to arrange, at its sole cost and expense, to enable you to convert your and your dependents’ coverage under such Plans to individual policies or programs upon the same terms as employees of the Company and the Bank may apply for such
conversions. In the event that your participation in any such Plan is barred, the Company shall or cause the Bank, at its sole cost and expense, to arrange to have issued for the benefit of you and your dependents individual policies of insurance
providing benefits substantially similar (on an after-tax basis) to those which you otherwise would have been entitled to receive under such Plans pursuant to this paragraph (iv) or, if such insurance is not available at a reasonable cost to
the Company or the Bank, the Company shall or cause the Bank to otherwise provide you and your dependents with equivalent benefits (on an after-tax basis). You shall not be required to pay any premiums or other charges in an amount greater than that
which you would have paid in order to participate in such Plans. 
 (v) In the event it shall be determined that any payment, award, benefit
or distribution (or any acceleration of any payment, award, benefit or distribution) by the Company (or any of its affiliated entities) or any entity which effectuates a change in control (or any of its affiliated entities) to or for your benefit,
whether pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Section 5 (the “Payments”), would be subject to the excise tax imposed by Section 4999 of
the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalties are incurred by you with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively
referred to as the “Excise Tax”), then the Company shall pay you an additional payment (a “Gross-Up Payment”) in an amount such that after payment by you of all taxes (including any Excise Tax) imposed upon the Gross-Up Payment,
you retain an amount of the Gross-Up Payment equal to the sum of (x) the Excise Tax imposed upon the Payments and (y) the product of any deductions disallowed because of 

  

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the inclusion of the Gross-up Payment in your adjusted gross income and the highest applicable marginal rate of federal income taxation for the calendar year
in which the Gross-up Payment is to be made. For purposes of determining the amount of the Gross-up Payment, you shall be deemed to (i) pay federal income taxes at the highest marginal rates of federal income taxation for the calendar year in
which the Gross-up Payment is to be made, (ii) pay applicable state and local income taxes at the highest marginal rate of taxation for the calendar year in which the Gross-up Payment is to be made, net of the maximum reduction in federal
income taxes which could be obtained from deduction of such state and local taxes and (iii) have otherwise allowable deductions for federal income tax purposes at least equal to those which could be disallowed because of the inclusion of the
Gross-up Payment in the Executive’s adjusted gross income. The Gross-up Payment under this paragraph (v) with respect to any Payment shall be made no later than thirty (30) days following such Payment. 
 Notwithstanding the foregoing, if it shall be determined that you are entitled to a Gross-Up Payment, but that the Payments would not be subject to the
Excise Tax if the Payments were reduced by an amount that is less than 10% of the portion of the Payments that would be treated as “parachute payments” under Section 280G of the Code, then the amounts payable to you under this
Agreement shall be reduced (but not below zero) to the maximum amount that could be paid to you without giving rise to the Excise Tax (the “Safe Harbor Cap”), and no Gross-Up Payment shall be made to you. The reduction of the amounts
payable hereunder, if applicable, shall be made by reducing first the payments under Section 5(iii)(B)(1), unless an alternative method of reduction is elected by you. For purposes of reducing the Payments to the Safe Harbor Cap, only amounts
payable under this Agreement (and no other Payments) shall be reduced. If the reduction of the amounts payable hereunder would not result in a reduction of the Payments to the Safe Harbor Cap, no amounts payable under this Agreement shall be reduced
pursuant to this provision. 
 As a result of the uncertainty in the application of Section 4999 of the Code at the time of the
Determination, it is possible that Gross-Up Payments which will not have been made by the Company should have been made (“Underpayment”) or Gross-up Payments are made by the Company which should not have been made
(“Overpayment”), consistent with the calculations required to be made hereunder. In the event that you are thereafter required to make payment of any Excise Tax or additional Excise Tax, the Accounting Firm shall determine the amount of
the Underpayment that has occurred and any such Underpayment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) shall be promptly paid by the Company to or for your benefit. In the event the amount of the
Gross-up Payment exceeds the amount necessary to reimburse you for your Excise Tax, the Accounting Firm shall determine the amount of the Overpayment that has been made and any such Overpayment (together with interest at the rate provided in
Section 1274(b)(2) of the Code) shall be promptly paid by you (to the extent you have received a refund if the applicable 

  

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 Mr. Joseph M. Velli 
  

 
Excise Tax has been paid to the Internal Revenue Service) to or for the benefit of the Company. You shall cooperate, to the extent your expenses are
reimbursed by the Company, with any reasonable requests by the Company in connection with any contests or disputes with the Internal Revenue Service in connection with the Excise Tax. 
 (vi) All determinations required to be made under paragraph (v) of this Section, including whether and when a Gross-Up Payment is required and the
amount of such Gross-Up Payment or the reduction of the Payments to the Safe Harbor Cap, as well as the assumptions to be utilized in arriving at such determinations, shall be made by the public accounting firm that is retained by the Company as of
the date immediately prior to the change in control (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and you within fifteen (15) business days of the receipt of notice from the Company
or you that there has been a Payment, or such earlier time as is requested by the Company (collectively, the “Determination”). In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group
effecting the change in control, you may appoint another nationally recognized public accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and
expenses of the Accounting Firm shall be borne solely by the Company and the Company shall enter into any agreement requested by the Accounting Firm in connection with the performance of the services hereunder. If the Accounting Firm determines that
no Excise Tax is payable by you, it shall furnish you with a written opinion to such effect, and to the effect that failure to report the Excise Tax, if any, on your applicable federal income tax return will not result in the imposition of a
negligence or similar penalty. In the event the Accounting Firm determines that the Payments shall be reduced to the Safe Harbor Cap, it shall furnish you with a written opinion to such effect. The Determination by the Accounting Firm shall be
binding upon the Company and you. 
 (vii) Except as specifically provided in paragraph (iv) above, the amount of any payment provided
for in this Section 5 shall not be reduced, offset or subject to recovery by the Company or the Bank by reason of any compensation earned by you as the result of employment by another employer after the Date of Termination, or otherwise.

 6. Successors; Binding Agreement. 
 (i) The Company will seek, by written request at least five business days prior to the time a Person becomes a Successor (as hereinafter defined), to have such Person by agreement in form and substance satisfactory to
you, assent to the fulfillment of the Company’s obligations under this Agreement. Failure of such Person to furnish such assent by the later of (A) three business days prior to the time such Person becomes a Successor or (B) two
business days after such Person receives a written request to so assent shall constitute Good Reason for 

  

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termination by you of your employment if a change in control of the Company occurs or has occurred. For purposes of this Agreement, “Successor”
shall mean any Person that succeeds to, or has the practical ability to control (either immediately or with the passage of time), the Company’s business directly, by merger or consolidation, or indirectly, by purchase of the Company’s
Voting Securities or otherwise. 
 (ii) This Agreement shall inure to the benefit of and be enforceable by your personal or legal
representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If you should die while any amount would still be payable to you hereunder if you had continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement to your devisee, legatee or other designee or, if there be no such designee, to your estate. 
 (iii) For purposes of this Agreement, the “Company” shall include any corporation or other entity which is the surviving or continuing entity in respect of any merger, consolidation or form of business
combination in which the Company ceases to exist. 
 7. Fees, Expenses and Interest; Mitigation. 
 (i) The Company shall, or cause the Bank to, reimburse you, on a current basis, for all reasonable legal fees and related expenses incurred by you in
connection with the Agreement following a change in control of the Company, including, without limitation, (a) all such fees and expenses, if any, incurred in contesting or disputing any termination of your employment or incurred by you in
seeking advice with respect to the matters set forth in Section 8 hereof or (b) your seeking to obtain or enforce any right or benefit provided by this Agreement, in each case, regardless of whether or not your claim is upheld by a court
of competent jurisdiction; provided, however, you shall be required to repay any such amounts to the Company to the extent that a court issues a final and non-appealable order setting forth the determination that the position taken by you was
frivolous or advanced by you in bad faith. In addition to the fees and expenses provided herein, you shall also be paid interest on any disputed amount ultimately paid to you at the prime rate announced by the Bank from time to time from the date
payment should have been made until paid in full. 
 (ii) You shall not be required to mitigate the amount of any payment the Company or the
Bank becomes obligated to make to you in connection with this Agreement, by seeking other employment or otherwise. 
 8. Taxes. All
payments to be made to you under this Agreement will be subject to required withholding of federal, state and local income and employment taxes. 
  

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 Mr. Joseph M. Velli 
  

 9. Survival. The respective obligations of, and benefits afforded to, the Company and you as
provided in Sections 5, 6(ii), 7, 8, 13 and 14 of this Agreement shall survive termination of this Agreement. 
 10. Notice. For the
purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested,
postage prepaid and addressed, in the case of the Company, to the address set forth on the first page of this Agreement or, in the case of the undersigned employee, to the address set forth below his signature, provided that all notices to the
Company shall be directed to the attention of the Chairman of the Board or President of the Company, with a copy to the Secretary of the Company, or to such other address as either party may have furnished to the other in writing in accordance
herewith, except that notice of change of address shall be effective only upon receipt. 
 11. Miscellaneous. No provision of this
Agreement may be modified, waived or discharged unless such modification, waiver or discharge is agreed to in a writing signed by you and the Chairman of the Board or President of the Company. No waiver by either party hereto at any time of any
breach by the other party hereto of, or of compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement. The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of the State of New York applied without regard to conflict of laws principles. 
 12. Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and
effect. 
 13. Arbitration. Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively
by arbitration in New York City by three arbitrators in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrators’ award in any court having jurisdiction; provided, however,
that you shall be entitled to seek specific performance of your right to be paid until the Date of Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement. The Company shall bear all costs and
expenses arising in connection with any arbitration proceeding pursuant to this Section 13. 
 14.
Employee’s Commitment. You agree that subsequent to your period of employment with the Company and the Bank, you will not at any time communicate or disclose to any unauthorized person, without the written consent 

  

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 Mr. Joseph M. Velli 
  

 
of the Company, any proprietary processes of the Company or any subsidiary or other confidential information concerning their business, affairs, products,
suppliers or customers which, if disclosed, would have a material adverse effect upon the business or operations of the Company and its subsidiaries, taken as a whole; it being understood, however, that the obligations of this Section 14 shall
not apply to the extent that the aforesaid matters (a) are disclosed in circumstances where you are legally required to do so or (b) become generally known to and available for use by the public otherwise than by your wrongful act or
omission. 
 15. Related Agreements. To the extent that any provision of any other agreement between the Company, the Bank or any
of the Company’s other subsidiaries and you shall limit, qualify or be inconsistent with any provision of this Agreement, then for purposes of this Agreement, while the same shall remain in force, the provision of this Agreement shall control
and such provision of such other agreement shall be deemed to have been superseded, and to be of no force or effect, as if such other agreement had been formally amended to the extent necessary to accomplish such purpose. 
 16. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument. 
 If this letter correctly sets forth our agreement on the subject matter hereof,
kindly sign and return to the Company the enclosed copy of this letter which will then constitute our agreement on this subject and will supersede our previous letter agreement dated September 11, 1998. 
  

			
	Sincerely,
	
	THE BANK OF NEW YORK COMPANY, INC.
		
	By	 	/s/ Gerald L. Hassel

			
	    Name:	 	
	    Title:	 	

  

			
	 Agreed to this 10th day
 of October, 2000.

	
	/s/ Joseph M. Velli
	 Joseph M. Velli
 Address:

  

 -13-

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