Document:

exv10w16

 

Exhibit 10.16

RETIREMENT AND CONSULTING AGREEMENT

This Retirement and Consulting Agreement is made as of this 6th day of
December, 2002, by and between MBNA Corporation, a Maryland corporation with
its head office in Wilmington, Delaware (together with its affiliates
hereinafter the “Corporation”), and Charles M. Cawley (the “Executive”).

The Executive founded MBNA America Bank, N.A., (the “Bank”), the Corporation’s
principal subsidiary, in 1982 and has served for many years as the leader of
the Corporation and the Bank, serving as President and director of the
Corporation since its formation and initial public offering in 1991 and most
recently as its Chief Executive Officer, and serving as Chairman and Chief
Executive Officer of the Bank from 1991 to 2002 and President from 1985 to
2002.

In consideration of the Executive’s long standing service and leadership, the
Corporation desires to provide certain benefits to the Executive following his
retirement from the Corporation. In addition, the Corporation desires to
continue to have the exclusive benefit of the Executive’s advice, counsel and
services following his retirement.

In consideration of the above matters and for other good and valuable
consideration, the sufficiency of which each of the parties acknowledge, the
Corporation and the Executive, intending to be legally bound hereby, agree to
the following terms and conditions.

1.    Consulting Services.

Following the Executive’s retirement from the Corporation, the Executive agrees
to be available to provide such consulting services to the Corporation as may
be reasonably requested by the Corporation. The terms of such consulting
services, including the scope, times and compensation, shall be as mutually
agreed to by the Corporation and the Executive.

2.    Post-Retirement Benefits.

Beginning on the Executive’s retirement date, and continuing for the remainder
of the Executive’s life, the Corporation agrees to provide the Executive with
the benefits described below. Upon the death of the Executive, the Corporation
agrees to provide these same benefits to the Executive’s spouse for the
remainder of the spouse’s life.

     (a)  Office and Administrative Support. The Corporation will provide at
its expense an office, including furnishings and equipment, comparable to the
Executive’s principle office at the Corporation immediately prior to his
retirement. Such office will be at a Corporation facility selected by the
Executive. The Corporation will also provide at its expense a full time
assistant and a full time secretary selected by and reporting to the Executive.
Such assistant and secretary shall be employed by the Corporation, with

 

 

compensation and benefits comparable to those provided to the Executive’s staff
immediately prior to his retirement, and with periodic increases in
compensation and benefits comparable to those provided to other administrative
staff for senior executives at the Corporation.

     (b)  Security Services. The Corporation will provide to the Executive and
maintain and monitor at its expense home security systems (including
appropriate fencing and gates, lighting and alarms) at each of the Executive’s
personal residences comparable to the existing security services provided to
the Executive, or if greater, the security services provided to the Executive
immediately prior to his retirement. The Corporation will provide to the
Executive a driver trained in personal protection and acceptable to the
Executive in his sole discretion for personal travel at such times as the
Executive may request.

     (c)  Airplane Use. The Corporation will permit the Executive to use
corporate aircraft (owned or leased by the Corporation at its expense) for all
corporate business travel and for all personal travel, including personal
travel of members of the Executive’s family and others chosen by the Executive
(whether or not the Executive is on the flight), at any times and for travel to
any destination the Executive chooses. The Corporation need not make an
aircraft available for the Executive’s exclusive use and may provide an
aircraft that is suitable for the particular travel and number of passengers
chosen in size and range, provided that the aircraft is a jet and not smaller
than any corporate aircraft (owned or leased by the Corporation). The
Executive agrees to give at least 12 hours notice of any travel for which the
Executive requests a corporate aircraft, except for travel in response to a
personal emergency. The Corporation will pay the cost for all corporate
business and personal use. The Executive will reimburse the Corporation for
all personal use attributed to the Executive in excess of $250,000 per calendar
year (pro rated for the first calendar year if the Executive’s retirement does
not begin on or about the start of a calendar year). For purposes of this
Agreement, the cost of personal use will be determined using applicable IRS
methods and rates. For purposes of calculating the above $250,000 threshold,
no cost will be included for a person accompanying at the request of the
Corporation an executive traveling on business, notwithstanding that under IRS
requirements the Corporation would be required to impute income to the
executive for the person’s travel.

     (d)  Medical Benefits. The Corporation will provide, at its cost, to the
Executive until age 65 and his spouse until age 65 the medical benefits
provided to employees of the Corporation generally. The Corporation will
provide, at its cost, to the Executive after age 65 and his spouse after age 65
Medicare supplemental health insurance coverage.

3.    Non-competition.

For as long as the Corporation provides the benefits and payments provided
under this Agreement (the “Restricted Period”), unless otherwise agreed in
writing by the Corporation, the Executive will not, directly or indirectly, in
any capacity (including as director, officer, employee, stockholder, partner,
owner, consultant or advisor) provide

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services of any kind, anywhere in the world, to any issuer of MasterCard, VISA,
American Express, Discover Card or any other type of credit card or charge
card, any bank or other lender which makes consumer loans of any kind, any
insurance company or agency which issues or markets personal lines insurance
policies, or any affiliate of any such entity. These services include, but are
not limited to, services relating to (i) sales, endorsement, co-branding or
similar agreements, (ii) product development and marketing, (iii) credit
approval and collections, (iv) customer service, (v) funding or other treasury
matters, (vi) loan portfolio acquisitions, mergers or other acquisitions, (vii)
financial, legal or accounting matters, or (viii) acquisition of or advice or
assistance to others to acquire the Corporation or the Bank or beneficial
ownership of 10% or more of the Corporation’s Common Stock. In addition, the
Executive agrees that during the Restricted Period, the Executive will not
provide services to any affinity group or commercial organization, or any
affiliate of such entity, relating to an affinity or co-branded credit card,
consumer loan or personal lines insurance program with the Corporation or any
other entity. The Executive agrees that these restrictions are reasonable.

4.    Confidentiality.

(a)  Following the end of the Executive’s employment by the Corporation, or
sooner upon request of the Corporation, the Executive will deliver to the
Corporation the originals and all copies of all records and other documents
acquired in the Executive’s capacity as an employee of the Corporation which
relate to the Corporation or its business, customers, vendors or employees and
which are in the Executive’s possession or within the Executive’s control,
other than records and other documents which (i) are a matter of public record,
(ii) relate directly and primarily to the Executive’s compensation and benefits
as an employee of the Corporation, (iii) the Corporation gives the Executive
permission to retain in the Executive’s possession, or (iv) are needed to
perform consulting services as contemplated under Section 1 of this Agreement.
The Executive shall not retain or deliver to any other person any copies of any
such records or documents. Upon the Executive’s request made following the end
of the Executive’s employment, the Corporation will promptly provide to the
Executive a copy of each document that (i) relates directly to the Executive’s
compensation and benefits as an employee of the Corporation; (ii) is needed by
the Executive to perform consulting services as contemplated under Section 1 of
this Agreement; or (iii) is requested by the Executive and is not deemed
confidential by the Corporation in its sole discretion. Section 4(b) will
apply to any documents delivered by the Corporation to the Executive pursuant
to clauses (i) and (ii) of the preceding sentence.

     (b)  The Executive will not use for the Executive’s benefit or for the
benefit of any person other than the Corporation, and, except as necessary or
appropriate in the performance of his duties to the Corporation, including as a
consultant as contemplated under Section 1 of this Agreement, will not ever
disclose to any person any confidential information concerning the Corporation.
The Executive acknowledges that all information concerning the Corporation,
its plans, programs, policies, finances, customers, vendors, employees and
business shall be deemed confidential unless a matter

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of public record or unless publicly known otherwise than through a breach
by the Executive of this Agreement. Disclosure which otherwise would
constitute a breach of this Section 4 shall not be deemed a breach thereof to
the extent such disclosure is required by law.

     (c)  The obligations of the Executive under this Section 4 shall survive
the termination of this Agreement without regard to the basis for such
termination.

5.    Term.

     (a)  The Executive may terminate this Agreement at any time upon written
notice to the Corporation of such termination, provided that the provisions of
paragraph 4 shall survive the termination of this Agreement, without regard to
the reason for such termination.

     (b)  The Corporation may terminate Section 1 of this Agreement concerning
consulting services from the Executive at any time upon written notice to the
Executive of such termination. The Corporation may not otherwise terminate
this Agreement unless the Executive materially breaches this Agreement and the
Executive fails to cure such breach within thirty (30) days after receipt of
notice thereof from the Board of Directors of the Corporation as authorized by
not less than two-thirds (2/3) of all of the members thereof and there is a
determination of such breach in a binding and final judgment, order or decree
of a court or other agency of competent jurisdiction, in effect after
exhaustion or lapse of all rights of appeal.

6.    Taxes.

The Corporation shall report amounts paid by the Corporation to the Executive
or the benefits received by the Executive under this Agreement as required by
law. The Corporation may withhold from any amounts payable to the Executive
all federal, state or local taxes or payments as may be required by law or as
may be expressly authorized by the Executive to be withheld, deducted or
reduced from those amounts. The Executive shall be responsible for all taxes
on all amounts paid by the Corporation to the Executive or the benefits
received by the Executive under this Agreement.

     7.    Other Terms.

     (a)  This Agreement represents the entire agreement, and supersedes all
prior and contemporaneous agreements and understandings, relative to the same
subject matter. Except as set forth below, this Agreement does not affect or
amend prior agreements as to the Corporation’s benefit plans available
generally to employees, the Corporation’s Supplemental Executive Retirement
Plan if applicable, split dollar insurance agreements if applicable, stock
option and restricted stock agreements if applicable, and any Executive
Deferred Compensation Plan agreements with the Executive. Notwithstanding the
preceding sentence, the Corporation and the Executive agree that the term
“competition” in the Corporation’s Supplemental Executive Retirement Plan and
in the

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Policies adopted under the Corporation’s 1997 Long Term Incentive Plan
shall be interpreted to include the activities described in Section 3 of this
Agreement, and this agreement concerning the term “competition” shall survive
any termination of this Agreement.

     (b)  This Agreement may not be amended or changed, and neither party shall
be deemed to have waived any provision of this Agreement, unless the amendment
or change or waiver is set forth in a writing signed by a duly authorized
officer of the Corporation and by the Executive. The failure of either party
to enforce any term of this Agreement shall not constitute a waiver of any
rights or deprive the party of the right to insist thereafter upon strict
adherence to that or any other term of this Agreement, nor shall a waiver of
any breach of this Agreement constitute a waiver of any preceding or succeeding
breach.

     (c)  The Executive acknowledges that the Executive has read and
understands each provision of this Agreement and has had an opportunity for
counsel of the Executive’s choice to review this Agreement and that no promises
or inducements have been made for the Executive to sign this Agreement except
as expressly set forth in this Agreement.

     (d)  This Agreement shall be interpreted under the laws of the State of
Delaware, without regard to principles of conflicts of laws.

     (e)  The Executive agrees that any breach by the Executive of any
provision of Section 3 or Section 4 of this Agreement would cause the
Corporation irreparable damage and that no remedy available at law would be
adequate for such violation. Accordingly, in addition to any other remedies
available at law or in equity or under any Corporation benefit or compensation
plan or this Agreement, the Corporation may immediately seek enforcement of
this Agreement in a court of appropriate jurisdiction by means of specific
performance or injunction, without posting of a bond, or otherwise.

     (f)  It is the intention of the parties that this Agreement shall be
enforceable to the fullest extent allowed by law. In the event that a court
holds any provision of Section 3 or Section 4 of this Agreement to be
unenforceable, the parties agree that, if allowed by law, that provision shall
be reduced to the degree necessary to render it enforceable without affecting
the rest of this Agreement, and, if such reduction is not allowed by law, the
parties shall promptly agree in writing to a provision to be substituted
therefor which will have an effect as close as possible to the invalid
provision that is consistent with applicable law. The invalidity or
unenforceability of any provision of this Agreement shall not affect or limit
the validity and enforceability of the other provisions hereof.

     (g)  The Corporation shall pay all costs and expenses, including
reasonable attorneys’ fees, of the Corporation and the Executive in connection
with any legal proceeding or action, whether or not instituted by the
Corporation or the Executive, relating to the interpretation or enforcement of
any provision of this Agreement, provided that if the Executive instituted the
proceeding and the judge, arbitrator or other person presiding over the
proceeding affirmatively finds that the Executive instituted the proceeding in
bad

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faith, the Executive shall pay all costs and expenses, including
reasonable attorneys’ fees, of the Executive and the Corporation.

     (h)  This Agreement may not be assigned by the Executive. This Agreement
shall inure to the benefit of and be enforceable by the Executive’s spouse and
his or her estate and legal representatives. This Agreement shall inure to the
benefit of and be binding upon and enforceable by the Corporation’s successors
and assigns, including any successor through merger or purchase of
substantially all the assets of the Corporation.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

	 	 
	 	EXECUTIVE
	 
	 	/s/ Charles M. Cawley

Charles M. Cawley
	 
	 	MBNA CORPORATION
	 
	 	By:  /s/ Lance L. Weaver

Lance L. Weaver

Chief Administrative Officer

6exv10w17

 

Exhibit 10.17

AGREEMENT

This Agreement is made this 15th day of December, 2002 (the “Effective Date”),
by and between MBNA Corporation, a Maryland corporation with its head office in
Wilmington, Delaware (together with its affiliates hereinafter the
“Corporation”), and Norma Lerner.

In consideration of Alfred Lerner’s long service to and outstanding leadership
of the Corporation and for the other reasons set forth below, the Corporation
agrees to provide the following benefits to Norma Lerner and her family:

1.    Security.

The Corporation provided security for Mr. Lerner and his family pursuant to the
Corporation’s Executive Protection Program. A threat assessment by an
independent security consultant indicated significant risk to Mr. Lerner and
his family due to his public profile. The Corporation’s management has
determined to continue this security for Mr. Lerner’s wife, Norma Lerner, and
his daughter, Nancy Beck, and her spouse and children because management wants
there to be no question about the continued safety and well being of Mr.
Lerner’s family after his death.

The Corporation shall continue the security services provided to Mrs. Lerner
and Mrs. Beck and her spouse and children. The security services provided
shall be the same as provided prior to Mr. Lerner’s death, and shall include
use of corporate aircraft for business and personal travel, use of corporate
vehicles with specially trained drivers, and home security and alarm systems
and monitoring. The security services may be modified and may include other
security and protective services as the Corporation’s officers deem appropriate
based on the family’s security needs. The Corporation shall pay the entire
cost of providing these security services, except that Mrs. Lerner shall
reimburse the Corporation for the amount of corporate aircraft use for personal
travel by the family members covered by this Agreement in excess of $250,000
annually, with the value determined using applicable IRS methods and rates.

2.    Personal Assistant and Office.

The Corporation will provide to Mrs. Lerner, at its expense, an office for
corporate and personal business matters at a location and with appropriate
furnishings and equipment and with appropriate administrative support as may be
reasonably requested by Mrs. Lerner.

3.    Medical Benefits.

The Corporation will provide to Mrs. Lerner COBRA continuation of medical
benefits for as long as she is eligible to receive them and, thereafter,
supplemental Medicare benefits as currently provided in its policy for
employees and spouses of employees after age 65. The Corporation will
reimburse Mrs. Lerner for the cost of the premium payments for these benefits.

 

 

4.    Taxes.

The benefits provided under this Agreement may be taxable income to Mrs.
Lerner. The Corporation shall report the benefit amounts as required by law.
Mrs. Lerner shall be responsible for the payment of all taxes relating to these
benefits.

5.    Term.

This Agreement shall continue in effect for Mrs. Lerner’s life.

6.    Other Provisions.

This Agreement may not be amended or changed, and neither party shall be deemed
to have waived any provision of this Agreement, unless the amendment or change
or waiver is set forth in a writing signed by a duly authorized officer of the
Corporation and by Mrs. Lerner.

This Agreement shall be interpreted under the laws of the State of Delaware,
without regard to principles of conflicts of laws.

The parties have executed this Agreement as of the date first above written.

	 	 
	 	/s/ Norma Lerner

Norma Lerner
	 
	 	MBNA CORPORATION
	 
	 	By /s/ Lance L. Weaver

        Lance L. Weaver

        Chief Administrative Officer

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