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Exhibit 10.2  

 
 

PACIFIC CENTURY FINANCIAL CORPORATION    
    
    ONE-YEAR INCENTIVE PLAN    
    
    (Effective as of January 1, 1999)    

Contents  

	Article 1.    Establishment, Objectives, and Effective Date	 	1
	Article 2.    Definitions	 	1
	Article 3.    Administration	 	2
	Article 4.    Eligibility and Participation	 	3
	Article 5.    Contingent Awards	 	3
	Article 6.    Determination and Payment of Final Awards	 	3
	Article 7.    Termination of Employment	 	4
	Article 8.    Beneficiary Designation	 	5
	Article 9.    Rights of Employees	 	5
	Article 10.    Change in Control	 	5
	Article 11.    Amendment, Modification, and Termination	 	5
	Article 12.    Withholding	 	6
	Article 13.    Indemnification	 	6
	Article 14.    Successors	 	6
	Article 15.    Legal Construction	 	6

   PACIFIC CENTURY FINANCIAL CORPORATION

ONE-YEAR INCENTIVE PLAN  

ARTICLE 1.    ESTABLISHMENT, OBJECTIVES, AND EFFECTIVE DATE.  

        1.1.    Establishment of the Plan.    Pacific Century Financial Corporation, a Delaware corporation ("PCFC"), hereby
establishes an incentive compensation plan to be known as the "Pacific Century Financial Corporation One-Year Incentive Plan" ("Plan"), as set forth in this document. 

        1.2.    Objectives of the Plan.    The objectives of the Plan are to optimize the profitability and growth of PCFC and
its Subsidiaries through incentives for each current annual period which are consistent with PCFC's goals and which link the personal interests of Participants to those of PCFC's stockholders; to
provide Participants with an incentive for excellence in individual performance; and to promote teamwork among Participants. 

        1.3.    Effective Date.    The Plan shall become effective as of January 1, 1999 ("Effective Date"). The Plan
shall commence on the Effective Date and shall remain in effect, subject to the right of the Board of Directors to amend or terminate the Plan at any time pursuant to Article 11 hereof, until
January 1, 2009. 

ARTICLE 2.    DEFINITIONS.  

                Whenever
used in the Plan, the following capitalized terms shall have the meanings set forth below: 

        2.1.  "Award Agreement" shall mean an agreement entered into by PCFC and each Participant setting forth the terms and
conditions applicable to an Award granted under this Plan. 

        2.2.  "Board of Directors" or "Board" shall mean the Board of Directors of
PCFC. 

        2.3.  "Change in Control" of PCFC shall mean any one or more of the following: (i) any person, including
a "group" as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, becomes the beneficial owner of shares of PCFC having 25% or more of the total number of votes that may be cast
for the election of Directors of PCFC; or (ii) as a result of, or in connection with, any cash tender or exchange offer, merger or other business combination, sale of assets or contested
election, or any combination of the foregoing transactions, the persons who were Directors of PCFC before the transaction shall cease to constitute a majority of the Board of Directors of PCFC or any
successor to PCFC. 

        2.4.  "Code" shall mean the Internal Revenue Code of 1986, as amended from time to time. 

        2.5   "Committee" shall mean the Compensation Committee of the Board of Directors of PCFC. 

        2.6.  "Contingent Award" or "Award" shall mean an award which is contingent on
the achievement of designated performance goals which is granted to an Eligible Employee at the outset of the Performance Period. 

        2.7.  "Disability" shall have the meaning ascribed to such term under the long-term disability plan sponsored by
PCFC or a Subsidiary and applicable to the Participant, or if no such plan exists, the meaning as determined at the sole discretion of the Committee. 

        2.8.  "Effective Date" shall have the meaning ascribed to such term in Article 1.3 hereof. 

        2.9.  "Eligible Employees" shall mean officers or other employees of PCFC or any Subsidiary, who, in the opinion of the
Committee, are or give promise of becoming of exceptional importance to PCFC or any Subsidiary, and of making substantial contributions to the success, growth, and profit of PCFC 

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and
its Subsidiaries. Neither members of the Committee nor any member of the Board who is not an employee of PCFC or a Subsidiary shall be an Eligible Employee. 

        2.10. "Final Award" shall mean the award ultimately paid out to each Participant based on the Committee's determination under
Article 6. 

        2.11. "Named Executive Officer" shall mean a Participant who, as of the date of vesting or payout of an Award, as applicable,
is one of the group of "covered employees" as defined under Code Section 162(m) and regulations thereunder. 

        2.12. "Net Income" shall mean PCFC's consolidated net income before taxes for the Performance Period, as reported in the
annual report to shareholders (or as otherwise reported to shareholders) adjusted as described in this Section. The Committee may, in its sole discretion, adjust PCFC's reported net income for the
following in determining Net Income: 

	(a)
	Expenses
associated with this incentive plan; 
	(b)
	Any
extraordinary or unusual gain or loss transaction; 
	(c)
	Securities
gains or losses; and 
	(d)
	Dividends
on preferred shares. 

        The
Committee will, in its sole discretion, determine any adjustments to be made pursuant to this definition. 

        2.13. "Participant" shall mean a person that the Committee, in its sole discretion, selects from among the Eligible Employees
to be granted a Contingent Award. 

        2.14. "Performance-Based Exception" means the performance-based exception from the tax deduction limitations of Code
Section 162(m). 

        2.15. "Performance Period", with respect to any Award, shall mean PCFC's fiscal year. 

        2.16. "Plan" shall mean this PCFC One-Year Incentive Plan, as it may be amended from time to time. 

        2.17. "Retirement" shall mean the termination of a Participant's employment with PCFC or a Subsidiary under circumstances
where the Participant terminates on or after the retirement dates specified under the Employees' Retirement Plan of Bank of Hawaii. 

        2.18. "Salary" shall mean the actual base salary for the Performance Period. 

        2.19. "Subsidiary" shall mean any corporation in which PCFC or any Subsidiary (as defined hereby) owns 50 percent or
more of the total combined voting power of all classes of stock. 

ARTICLE 3.    ADMINISTRATION.  

        3.1.    The Committee.    The Plan shall be administered by the Committee. The members of the Committee shall be
appointed from time to time by, and shall serve at the discretion of, the Board of Directors. 

        3.2.    Authority of the Committee.    Except as limited by law or by the articles of incorporation or bylaws of PCFC,
and subject to the provisions herein, the Committee shall have full power to interpret and administer the Plan, including to: identify and designate Eligible Employees and Participants under the Plan;
determine the size of Awards; determine the terms and conditions of Awards in a manner consistent with the Plan; construe and interpret the Plan and any Award Agreement or any other agreement or
instrument entered into under the Plan; establish, amend, or waive rules and regulations for the Plan's administration; amend the terms and conditions of any outstanding Award or Award Agreement to
the extent such terms and conditions are within the discretion of the Committee as 

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provided
in the Plan; and amend, modify, or terminate the Plan in the manner described in Article 11. As permitted by law, the Committee may delegate its authority as identified herein. 

        3.3.    Decisions Binding.    All determinations and decisions made by the Committee pursuant to the provisions of the
Plan and all related orders and resolutions of the Committee shall be final, conclusive, and binding on all persons, including PCFC and its Subsidiaries, their shareholders, their employees, and the
directors, Eligible Employees, Participants, and their estates and beneficiaries. 

ARTICLE 4.    ELIGIBILITY AND PARTICIPATION.  

        4.1.    Eligibility.    Eligible Employees of PCFC or any Subsidiary shall be eligible to participate in the Plan. 

        4.2.    Participation.    Subject to the provisions of the Plan, the Committee may, from time to time and at its sole
discretion, designate the Eligible Employees who shall be Participants and receive grants of Contingent Awards under the Plan. 

ARTICLE 5.    CONTINGENT AWARDS.  

        5.1.    Grant.    The Committee may, from time to time and at its sole discretion, make a grant of a Contingent Award
to each Participant. The Contingent Award for any Participant shall be an amount or range of amounts (expressed either in dollars or as percentages of Salary for the Performance
Period). The Committee shall cause notice to be given to each Participant of his or her participation under the Plan. 

        In
the event that the Committee determines that it is advisable to grant Awards to Named Executive Officers which do not qualify for the Performance-Based Exception, the Committee may
make such grants without satisfying the requirements of Code Section 162(m). 

        5.2.    Incentive Pool.    In the case of a Contingent Award to a Named Executive Officer which is intended by the
Committee to qualify for the Performance-Based Exception, the Contingent Award shall be determined by the Committee by the end of the first quarter of the applicable Performance Period and shall not
exceed a percent of the Incentive Pool for the Performance Period specified by the Committee. The Incentive Pool shall be established for each Performance Period and shall be an amount designated as a
percent of PCFC's Net Income for the Performance Period, which percent of PCFC's Net Income shall be determined by the Committee prior to the end of the first quarter of the Performance Period. The
aggregate of Contingent Awards made to Named Executives for a Performance Period that are intended to qualify for the Performance-Based Exception shall not exceed the Incentive Pool for the
Performance Period. The Committee may, but need not, grant such Contingent Awards up to the full amount of the Incentive Pool. 

        5.3.    Value.    A Contingent Award shall be of no immediate and certain value, and rather the amount payable to a
Participant with respect to a Contingent Award for any given Performance Period shall be the Final Award as determined under Article 6. 

ARTICLE 6.    DETERMINATION AND PAYMENT OF FINAL AWARDS.  

        6.1.    Determination of Final Awards.    Subject to the terms and conditions of the Plan, after the applicable
Performance Period has ended, the Committee shall determine the Final Award to be paid to each Participant. Each Participant's performance during the Performance Period shall be assessed by the
Participant's manager, who shall make a recommendation of Final Award to the Chief Executive Officer of PCFC. The Chief Executive Officer shall thereafter also assess each Participant's performance
during the Performance Period and shall make a recommendation of Final Award to the Committee. However, the determination of Final Award for a Participant shall be within the sole discretion of the
Committee. In this regard, the Committee may follow the recommendation by the 

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Chief
Executive Officer or may make a lesser or greater Final Award, taking into account the Participant's overall contribution to PCFC and its Subsidiaries for the Performance Period, the corporate
performance of PCFC and its Subsidiaries for the Performance Period, and such other criteria as the Committee may determine to promote the objectives of the Plan in an individual case. The Committee
may determine the amount of any Final Award to a Participant without regard to the amount of the Participant's Contingent Award. Except as otherwise provided in the case of a Change in Control or
other event as described in Article 10, the Committee may modify or repeal the Contingent Award of any Participant at any time before the determination of the Participant's Final Award.
However, in the case of a Contingent Award which is designed to qualify for the Performance-Based Exception with respect to a Named Executive Officer, the Final Award shall not result in an upward
adjustment of the Contingent Award to an amount greater than the maximum percent of the Incentive Pool determined pursuant to Article 5.2 (although the Committee shall retain the discretion to
adjust such the Contingent Award downward). 

        6.2.    Maximum Awards.    Notwithstanding any other provision of the Plan, the maximum aggregate payout with respect
to a Contingent Award granted in any one Plan Year to any one Participant shall be $2,000,000. 

        6.3.    Payment.    Payment of Final Awards shall be made in a single lump sum as soon practicable following the close
of the applicable Performance Period and the determination of the Final Awards. 

        However,
a Participant may make a request, on a form approved by the Committee, for the deferral of all or part of any payment he or she may receive, provided that such request is
delivered to the Human Resources Division no later than November 1 of the Performance Period. The Committee may accept or reject any such request for a deferral and may determine the conditions
of such deferral at the Committee's sole discretion. 

        Payment
of Final Awards shall be made normally in the form of cash. However, the Committee, in its sole discretion, may provide for payment of Final Awards in the form of PCFC stock,
restricted stock or nonqualified stock options. 

        6.4.    Participation During Performance Period.    Unless determined otherwise by the Committee and set forth in the
Participant's Award Agreement, in the event that an Eligible Employee's participation commences or terminates (for reason other than a termination of employment as described in Article 7)
mid- term during a Performance Period, the Participant shall receive a payout of the Award which is prorated in a manner determined by the Committee in its sole discretion. 

ARTICLE 7.    TERMINATION OF EMPLOYMENT.  

        7.1.    Termination of Employment Due to Death, Disability, or Retirement.    Unless determined otherwise by the
Committee and set forth in the Participant's Award Agreement, in the event the employment of a Participant is terminated by reason of death, Disability, or Retirement during a Performance Period, the
Participant shall receive a payout of the Final Award which is prorated in a manner determined by the Committee in its sole discretion. Payments of any prorated Final Awards shall be made at the
similar time as payments are made to Participants who did not terminate employment during the applicable Performance Period. 

        7.2.    Termination of Employment for Other Reasons.    Unless determined otherwise by the Committee and set forth in
the Participant's Award Agreement, in the event that a Participant's employment terminates during a Performance Period for any reason other than those reasons set forth in Article 7.1, all
Awards for that Performance Period shall be forfeited by the Participant. 

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ARTICLE 8.    BENEFICIARY DESIGNATION.  

        Each Participant under the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit
under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant, shall
be in a form prescribed by PCFC, and shall be effective only when filed by the Participant in writing with PCFC during the Participant's lifetime. In the absence of any such designation, benefits
remaining unpaid at the Participant's death shall be paid to the Participant's estate. 

ARTICLE 9.    RIGHTS OF EMPLOYEES.  

        9.1.    Employment.    Nothing in the Plan shall interfere with or limit in any way the right of PCFC or a Subsidiary
to terminate any Participant's employment at any time, nor confer upon any Participant any right to continue in the employ of the of PCFC or a Subsidiary. 

        9.2.    Participation.    No Employee shall have the right to be selected to receive an Award under this Plan, or,
having been so selected, to be selected to receive a future Award. 

        9.3.    Nontransferability.    No Award shall be sold, assigned, transferred, encumbered, hypothecated, or otherwise
anticipated by a Participant and, during the lifetime of a Participant, any payment shall be payable only to the Participant. 

ARTICLE 10.    CHANGE-IN-CONTROL.  

        10.1.    Treatment of Outstanding Awards.    Notwithstanding any other provision of the Plan to the contrary, in the
event of a dissolution or liquidation of PCFC, or a Change in Control of PCFC, the amount of cash payable with respect to any Contingent Award for a Performance Period that ends after such event shall
be determined and payable as if the Performance Period ended on the date of such event and a Final Award shall be calculated and paid under the Plan in an amount equal to two times the Contingent
Award. The Contingent Award shall be calculated based on the annualized Salary of the Participant for the shortened Performance Period. The Final Award calculated under this Article 10 shall be
multiplied by a fraction, the numerator of which shall be the number of full months of the Performance Period, as adjusted under this Article 10, and the denominator of which shall be the
number of full months in the intended Performance Period. The Final Award under this Article 10 shall be paid to such Participant within ten days of the end of the shortened Performance Period. 

        10.2.    Termination, Amendment, and Modifications of Change in Control Provisions.    Notwithstanding any other
provision of the Plan or any Award Agreement provision, the provisions of this Article 10 may not be terminated, amended, or modified on or after the date of a Change in Control to affect
adversely any Award theretofore granted under the Plan without the prior written consent of the Participant with respect to the Participant's outstanding Awards; provided, however, the Board of
Directors, upon recommendation of the Committee, may terminate, amend, or modify this Article 10 at any time and from time to time prior to the date of a Change in Control. 

        10.3.    Pooling of Interests Accounting.    Notwithstanding any other provision of the Plan to the contrary, in the
event that the consummation of a Change in Control is contingent on using pooling of interests accounting methodology, the Board may take any action necessary, including but not limited to the
amendment or repeal of any Contingent Award, to preserve the use of pooling of interests accounting. 

ARTICLE 11.    AMENDMENT, MODIFICATION AND TERMINATION.  

        11.1.    Amendment, Modification and Termination.    The Board or the Committee, may, at any time, terminate, amend,
modify, or suspend this Plan provided that no such amendment, modification, 

5

 

suspension,
or termination of the Plan shall in any manner (except as allowable under Section 10.3) adversely affect in any material way any Final Award made under the Plan without the consent
of the Participant holding the Final Award. 

        11.2.    Compliance with Code Section 162(m).    Except as otherwise provided by this Article 11.2, at all
times when Code Section 162(m) is applicable, all Awards granted under this Plan shall comply with the requirements of Code Section 162(m). However, in the event the Committee determines
that such compliance is not desired with respect to the initial grant of any Award under the Plan, then compliance with Code Section 162(m) shall not apply and be required for such Award. In
addition, in the event that changes are made to Code Section 162(m) to permit greater flexibility with respect to any Award available under the Plan, the Committee may, subject to this
Article 11, make any adjustments it deems appropriate. 

ARTICLE 12.    WITHHOLDING.  

        PCFC shall have the power and the right to deduct, withhold, or require a Participant to remit to PCFC an amount sufficient to satisfy federal, state, and local
taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan. 

ARTICLE 13.    INDEMNIFICATION.  

        Each person who is or shall have been a member of the Committee, or of the Board, shall be indemnified and held harmless by PCFC against and from any loss, cost,
liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in
which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with PCFC's approval,
or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give PCFC an opportunity, at its own expense, to handle and
defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to
which such persons may be entitled under PCFC's articles of incorporation or bylaws, as a matter of law, or otherwise, or any power that PCFC have to indemnify them or hold them harmless. 

ARTICLE 14.    SUCCESSORS.  

        All obligations of PCFC under the Plan with respect to Awards granted hereunder shall be binding on any successor to PCFC, whether the existence of such successor
is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of PCFC. 

ARTICLE 15.    LEGAL CONSTRUCTION.  

        15.1.    Gender and Number.    Except where otherwise indicated by the context, any masculine term used herein also
shall include the feminine; the plural shall include the singular and the singular shall include the plural. 

        15.2.    Severability.    In the event any provision of the Plan shall be held illegal or invalid for any reason, the
illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

        15.3.    Requirements of Law.    The granting of Contingent Awards and the payment of Final Awards under the Plan
shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

        15.4.    Governing Law.    To the extent not preempted by federal law, the Plan, and all agreements hereunder, shall
be construed in accordance with and governed by the laws of the state of Delaware. 

6

BANK OF HAWAII CORPORATION

HUMAN RESOURCES AND COMPENSATION COMMITTEE OF

THE BOARD OF DIRECTORS RESOLUTIONS  

RE: ADOPTION OF AMENDMENT NO. 2003-1 TO THE PACIFIC CENTURY FINANCIAL CORPORATION ONE-YEAR INCENTIVE PLAN  

WHEREAS,
Bank of Hawaii Corporation ("BOHC") maintains the Pacific Century Financial Corporation One-Year Incentive Plan, effective as of January 1, 1999 ("Plan"); and 

WHEREAS,
under Section 11.1 of the Plan, the Human Resources and Compensation Committee of the Board of Directors of BOHC ("Committee") is authorized to amend the Plan. 

NOW,
THEREFORE, BE IT RESOLVED THAT: 

	1.
	The
Committee hereby adopts Amendment No. 2003-1 to the Plan in the form substantially as attached hereto, effective as of January 1, 2003.

	2.
	The
appropriate members of the Committee are hereby authorized and directed to take any and all actions necessary and desirable to carry out the intent of the foregoing resolution. 

I,
David A. Heenan, hereby certify that I am the duly appointed and acting Chairperson of the Human Resources and Compensation Committee of the Board of
Directors of Bank of Hawaii Corporation, and that the above resolutions were adopted at a meeting of the Committee held on January 24, 2003, at
which meeting a quorum was at all times present and acting, and that said resolutions are still in full force and effect. 

DATED:  January 24, 2003

	 	 	HUMAN RESOURCES AND COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF BANK OF HAWAII CORPORATION
	

 	
 	

By	
 	

/s/  DAVID A. HEENAN      
 Its Chairperson

AMENDMENT NO. 2003-1 TO THE

PACIFIC CENTURY FINANCIAL CORPORATION

ONE-YEAR INCENTIVE PLAN  

        1.     Effective
as of January 1, 2003, the Pacific Century Financial Corporation One-Year Incentive Plan ("Plan") shall be amended by removing references to
the "Pacific Century Financial Corporation One-Year Incentive Plan" and inserting in lieu thereof references to the "Bank of Hawaii Corporation Executive Incentive Plan" as the name of the
Plan. 

        2.     Effective
as of January 1, 2003, the Plan shall be amended by removing references to the "Pacific Century Financial Corporation" and "PCFC" and inserting in lieu
thereof references to the "Bank of Hawaii Corporation" and "BOHC", respectively, as sponsoring employer of the Plan. 

        3.     Effective
as of January 1, 2003, the following new paragraph shall be added at the end of Section 6.1 of the Plan: "The Final Award shall constitute
compensation that is earned as of the date of determination and payment of such Final Award. Further, in accordance with Article 7 and subject to certain exceptions as provided under
Article 7, a Participant shall not be entitled to a payment of a Final Award unless such Participant is employed in good standing by BOHC or a Subsidiary throughout the Performance Period and
the period ending on the date of the determination and payment of such Final Award." 

        4.     Effective
as of January 1, 2003, Section 7.2 of the Plan shall be revised to read as follows: "Unless determined otherwise by the Committee and set forth in
the Participant's Award Agreement, in the event that a Participant is not employed in good standing throughout the Performance Period and the period ending on the date of the determination and payment
of a Final Award other than for those reasons set forth in Section 7.1, the Participant shall not be entitled to any Final Awards for the Performance Period." 

        5.     Effective
as of January 1, 2003, Section 7.1 of the Plan shall be revised to read as follows: "In the event the employment of a Participant is terminated by
reason of death, Disability, or Retirement during a Performance Period, the Committee in its sole discretion shall determine whether the Participant shall be entitled to the payout of any Final Award
and, if so, shall also determine the manner in which any Final Award shall be prorated. The Participant shall not be entitled to any Final Award until the date of determination and payment of the
Final Award. Payments of any prorated Final Awards in this case shall be made at the similar time as payments are made to Participants who did not terminate employment during the applicable
Performance Period." 

BANK OF HAWAII CORPORATION

HUMAN RESOURCES AND COMPENSATION COMMITTEE OF

THE BOARD OF DIRECTORS RESOLUTIONS  

RE: ADOPTION OF AMENDMENT NO. 2004-1 TO THE BANK OF HAWAII CORPORATION EXECUTIVE INCENTIVE PLAN  

        WHEREAS, Bank of Hawaii Corporation ("BOHC") maintains the Bank of Hawaii Corporation Executive Incentive Plan ("EIP"), originally effective as of
January 1, 1999; 

        WHEREAS,
BOHC also maintains the Bank of Hawaii Corporation 2004 Stock and Incentive Compensation Plan ("2004 Plan"), effective as of April 30, 2004; 

        WHEREAS,
Article 10 of the 2004 Plan provides for cash-based performance awards in a manner that meets the $1 million deduction limitation requirements under
Section 162(m) of the Internal Revenue Code of 1986, as amended ("Code"); 

        WHEREAS,
BOHC desires to designate the EIP as an underlying "subplan" of the 2004 Plan that comprises the operating administrative guidelines for contingent incentive cash awards made
under Article 10 of the 2004 Plan, where awards under the EIP shall constitute awards under Article 10 of the 2004 Plan for purposes of meeting the requirements of Code
Section 162(m); and 

        WHEREAS,
under Section 11.1 of the EIP, the Human Resources and Compensation Committee of the Board of Directors of BOHC ("Committee") is authorized to amend the Plan. 

        NOW,
THEREFORE, BE IT RESOLVED THAT: 

        1.     The
Committee hereby adopts Amendment No. 2004-1 to the EIP in the form substantially as attached hereto effective as of the date of its adoption. 

        2.     The
Committee hereby approves and acknowledges that the awards made under the guidelines of the EIP shall be granted in a manner consistent with the terms and conditions
of the 2004 Plan and shall constitute awards granted under Article 10 of the 2004 Plan. 

        3.     The
appropriate members of the Committee are hereby authorized and directed to take any and all actions necessary and desirable to carry out the intent of the foregoing
resolutions. 

        I,
David A. Heenan, hereby certify that I am the duly appointed and acting Chairperson of the Human Resources and Compensation Committee of the Board of Directors of Bank of Hawaii
Corporation, and that the above resolutions were adopted at a meeting of the Committee held on December 10, 2004, at which meeting a quorum was at all times present and acting, and that said
resolutions are still in full force and effect. 

        DATED:
December 10, 2004 

	 	 	HUMAN RESOURCES AND COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF BANK OF HAWAII CORPORATION
	

 	
 	
By	
 	

/s/  DAVID A. HEENAN      
Its Chairperson

AMENDMENT NO. 2004-1 TO THE

BANK OF HAWAII CORPORATION

EXECUTIVE INCENTIVE PLAN  

        1.     The
following new Article 1.4 shall be added at the end of Article 1 of the Bank of Hawaii Corporation Executive Incentive Plan: 

        1.4.  Status
of Plan.    Effective as of December 10, 2004, the Plan shall constitute and be administered as a subplan of the Bank of Hawaii Corporation 2004
Stock and Incentive Compensation Plan ("2004 Plan"), where the Plan shall comprise the administrative guidelines for the grant of cash-based awards under Article 10 of the 2004
Plan. Accordingly, an award granted hereunder shall constitute an award under the 2004 Plan for purposes of applying the performance measures described in Article 11 of the 2004 Plan and
meeting the "performance-based compensation" requirements under Code Section 162(m). In the event of any inconsistency between the terms of the Plan and the 2004 Plan, the terms of the 2004
Plan shall apply to the extent such terms are more restrictive or impose additional requirements. Thus, for example, the term "Change in Control" as described in Article 2.3 hereunder shall
mean such term as defined in Section 2.8 of the 2004 Plan. 

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Exhibit 10.3  

 
 

Key Executive
  
  Change-in-Control
  
  Severance Agreement  
  

Bank of Hawaii Corporation  

1

 
  
 

    Contents    
    

	 
	 	 
	 	Page

	Article 1.	 	Establishment and Purpose	 	3
	Article 2.	 	Definitions and Construction	 	3
	Article 3.	 	Severance Benefits	 	5
	Article 4.	 	Just Cause	 	7
	Article 5.	 	Form and Timing of Severance Benefits	 	7
	Article 6.	 	Parachute Payments	 	7
	Article 7.	 	Other Rights and Benefits Not Affected	 	7
	Article 8.	 	Successors	 	8
	Article 9.	 	Administration	 	8
	Article 10.	 	Legal Fees	 	8

2

 
 
 

Bank of Hawaii Corporation
  
  Key Executive
  
  Change-in-Control Severance Agreement  
  

Article 1. Establishment and Purpose  

        1.1   Effective Date. This Executive Change-in-Control Severance Agreement (the
"Agreement) is made and entered into pursuant to Bank of Hawaii Corporation's Key Executive Severance Plan (the "Plan"), and is
effective as of this            day of            , 2004 (the "Effective Date"), by
and between Bank of Hawaii Corporation  ("BOHC"), a Delaware corporation,
and                        , an executive (the "Executive") of BOHC and its
subsidiary, Bank of Hawaii (the "Bank"). This Agreement shall supersede and replace any prior severance agreement entered into between BOHC and the
Executive. 

        1.2   Term of the Agreement. The Agreement shall commence as of the Effective Date written above, and shall continue until the
Board of Directors of BOHC (the "Board") determines, in good faith and in its sole discretion, that the Executive is no longer to be included in the
Plan and so notifies in writing the Executive during the term of this Agreement of such determination. 

                Provided,
however, in the event that a Change in Control of BOHC, as defined in Section 2.1 herein, occurs during the term of this Agreement, this Agreement shall
remain irrevocably in effect for the greater of twenty-four (24) months from the date of such Change in Control, or until all benefits have
been paid to the Executive hereunder. 

                Further,
in the event that the Board has knowledge that a third party has taken steps reasonably calculated to effect a Change in Control of BOHC, including, but not
limited to, the commencement of a tender offer for the voting stock of BOHC, or the circulation of a proxy to BOHC's shareholders, then this Agreement shall remain irrevocably in effect until the
Board, in good faith, determines that such third party has fully abandoned or terminated its effort to effect a Change in Control of BOHC. 

        1.3   Purpose of the Agreement. The purpose of this Agreement pursuant to the Plan, is to advance the interests of BOHC and the
Bank by assuring that BOHC and the Bank will have the continued employment and dedication of the Executive and the availability of his advice and counsel in the event that an acquisition or Change in
Control of BOHC occurs. This Agreement shall also assure the Executive of equitable treatment during the period of uncertainty that surrounds an acquisition or Change in Control, and allow the
Executive to act at all times in the best interests of BOHC and its shareholders. 

        1.4   Contractual Right to Benefits. This Agreement establishes and vests in the Executive a contractual right to the benefits
which he or she is entitled hereunder, enforceable by the Executive against BOHC. However, nothing herein shall require BOHC to segregate, earmark, or otherwise set aside any funds or other assets to
provide for any payments hereunder. 

                This
Agreement shall be considered an unfunded agreement to provide benefits to a select group of management or highly compensated employees, and is therefore intended to
be a "top-hat" plan exempt from the requirements of the provisions of Parts 2, 3, and 4 of Title I of ERISA. 

Article 2. Definitions and Construction  

        2.1   Definitions. Whenever used in the Agreement, the following terms shall have the meanings set forth below and, when the
meaning is intended, the initial letter of the word is capitalized. 

	(a)
	"Base Salary" means the annualized salary at the beginning of each Year, which includes all regular basic wages, before reduction for
any amounts deferred on a tax-qualified or 

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nonqualified
basis, payable in cash to an Executive for services rendered during the Year. Base Salary shall exclude bonuses, incentive compensation, special fees or awards, commissions, allowances,
or any other form of premium or incentive pay, or amounts designated by BOHC as payment toward or reimbursement of expenses. 

	(b)
	"Beneficial Owner" shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations
under the Securities Exchange Act of 1934, as amended (the "Exchange Act").

	(c)
	"Beneficiary" with respect to an Executive means the person or entities designated or deemed designated by an Executive pursuant to
Section 8.2 herein.

	(d)
	"Board" means the Board of Directors of BOHC.

	(e)
	"Change in Control" of BOHC means any one or more of the following occurrences:

	(i)
	Any Person, including a "group" as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, becomes the beneficial
owner of shares of BOHC having 25 percent or more of the total number of votes that may be cast for the election of Directors of BOHC; or

	(ii)
	As the result of, or in connection with, any cash tender or exchange offer, merger or other business combination, sale of assets or
contested election, or any combination of the foregoing transactions, the person who were Directors of BOHC before the transaction shall cease to constitute a majority of the Board of Directors of
BOHC or any successor to BOHC.

 

	(f)
	"Code" means the Internal Revenue Code of 1986, as amended.

	(g)
	"BOHC" means Bank of Hawaii Corporation, a Delaware corporation, or any successor thereto that adopts the Agreement, as provided in
Section 8.1 herein.

	(h)
	"Committee" means the Human Resources and Compensation Committee of the Board of Directors of BOHC or any other committee appointed by
the Board to administer this Agreement.

	(i)
	"Disability" means a physical or mental condition which renders an Executive unable to discharge his or her normal work responsibility
with BOHC or the Bank and which, in the opinion of a licensed physician selected by the Executive, subject to reasonable approval by the Committee based upon sufficient medical evidence, can be
reasonably expected to continue for a period of at least one full calendar year. If an Executive fails to select a physician with ten (10) business days
of a written request made by BOHC, then BOHC may select a physician for purposes of this paragraph.

	(j)
	"Effective Date" means the date the Agreement is approved by the Board, or such other date as the Board shall designate in its
resolution approving the Agreement, and as provided in Section 1.1 herein.

	(k)
	"Effective Date of Termination" means the date on which a voluntary employment termination or involuntary employment termination other
than for Just Cause occurs within twenty-four (24) months of a Change in Control which triggers Severance Benefits hereunder.

	(l)
	"ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time, or any successor act thereto.

	(m)
	"Expiration Date" means the date the Agreement expires, as provided in Section 1.2 herein. 

4

 

	(n)
	"Just Cause" means a termination of an Executive's employment by BOHC for which no Severance Benefits are payable hereunder, as
provided in Article 4 herein.

	(o)
	"Normal Retirement Date" shall mean the date the Executive reaches 65 years of age.

	(p)
	"Person" shall have the meaning ascribed to such terms in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and
14(d) thereof, including a "group" as defined in Section 13(d).

	(q)
	"Plan" means the Bank of Hawaii Corporation Key Executive Severance Plan, adopted April 27,
1983.

	(r)
	"Severance Benefit" means the payment of severance compensation as provided in Article 3 herein.

	(s)
	"Year" means the consecutive 12-month period beginning each January 1 and ending December 31. 

        2.2   Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the
feminine, the plural shall include the singular, and the singular shall include the plural. 

        2.3   Severability. In the event any provision of the Agreement shall be held illegal or invalid for any reason, the illegality
or invalidity shall not affect the remaining parts of the Agreement, and the Agreement shall be construed and enforced as if the illegal or invalid provision had not been included. 

        2.4   Modification. No express provisions of this Agreement may be modified, waived, or discharged unless such modification,
waiver, or discharge is agreed to by the Executive in writing and approved by the Human Resources and Compensation Committee of the Board of Directors. 

        2.5   Applicable Law. To the extent not preempted by the laws of the United States, the laws of the State of Hawaii shall be
the controlling law in all matters relating to the Agreement. 

Article 3. Severance Benefits  

        3.1   Right to Severance Benefits. The Executive shall be entitled to receive from BOHC Severance Benefits as described in
Section 3.2 herein, if there has been a Change in Control of BOHC, as defined in Section 2.1(e) herein, and if, within twenty-four  (24) months thereafter, the Executive voluntarily terminates
employment or is involuntarily terminated without Just Cause with BOHC. An Executive shall
not be entitled to receive Severance Benefits if the Executive's employment with BOHC or Bank of Hawaii ends due to an involuntary termination by BOHC for Just Cause, as provided under
Article 4 herein. 

        3.2   Description of Severance Benefits. In the event that an Executive becomes entitled to receive Severance Benefits, as
provided in Section 3.1 herein, BOHC shall pay to the Executive and provide the Executive with the following: 

	(a)
	An amount equal to three (3) times the Executive's highest annual Base Salary earned  (i) at any
time during the three (3) complete fiscal years immediately preceding the Effective Date of
Termination, or (ii) if the Executive was not employed during such time period, at any time thereafter; and

	(b)
	An amount equal to three (3) times the Executive's highest annual bonusearned under the
annual incentive plan (which, for purposes of this Agreement, means the One-Year Incentive Plan, or Key Contributor Incentive Plan, or any successor or alternative plan or arrangement
providing for an annual incentive bonus) during the three (3) complete fiscal years prior to the Effective Date of Termination, or, if shorter, over the
Executive's entire 

5

 

period
of employment. However, if the Executive's period of employment is less than one year, the bonus shall be considered zero (0); and 

	(c)
	An amount equal to three (3) times the Executive's highest annual incentive
compensation earned under the Bank of Hawaii Corporation Profit Sharing Plan, the Sustained Profit Growth Plan or any successor or alternative plan or arrangement providing for a long-term
incentive bonus, or any successor plans thereto over the three (3) complete fiscal years prior to the Effective Date of Termination, or, if shorter,
over the Executive's entire period of employment. However, if the Executive's period of employment is less than one year, the average incentive compensation shall be considered zero  (0); and

	(d)
	An amount equal to the excess of (i) the maximum payment the Executive would have
received under the annual incentive plan if he had continued in the employment of BOHC and the Bank through the end of the performance period following the Effective Date of Termination, and if the
Bank had met its maximum performance goals as provided under the terms of the Plan and the maximum amount payable to the Executive had been paid, over  (ii) the actual payout under the annual incentive
plan resulting from the Executive's termination of employment; and

	(e)
	A payout under the long-term incentive plan, in accordance with the terms of such plan; and

	(f)
	A continuation of all welfare benefits at no direct cost to the Executive, including medical insurance, long-term
disability, and group term life insurance for three (3) full years from the Effective Date of Termination or until the Executive reaches his Normal
Retirement Date, whichever occurs earlier. 

        3.3   Reduction of Severance Benefits. In the event there are fewer than thirty-six  (36) whole or partial months remaining from the Executive's Effective
Date of Termination until the Executive's Normal Retirement Date, as defined under
the Retirement Plan, then the amounts provided for under Sections 3.2(a), (b), and (c) above shall be reduced by a fraction, the numerator of which shall be the number of whole or partial
months remaining until the Executive's Normal Retirement Date, and the denominator of which shall be thirty-six (36).

        3.4   Fringe Benefits. The Executive's participation in fringe benefits prior to the Executive's Effective Date of Termination
shall be continued, or equivalent benefits shall be provided, at no cost to the Executive, for a period of three (3) years from the Executive's
Effective Date of Termination (or until he or she reaches his Normal Retirement Date, whichever occurs earlier).

        3.5   Relocation Benefits. Should the Executive move his residence in order to pursue other business opportunities within two  (2) years of Executive's
Effective Date of Termination, the Executive shall be reimbursed for any moving expenses (as defined in
Section 217(b) of the Code) incurred in that relocation (including taxes, if any, payable on the reimbursement) which are
not reimbursed by another employer. Benefits provided herein shall not exceed the assistance and benefits customarily provided by BOHC to transferred employees prior to the Change in Control. 

        3.6   Incentive Compensation. Any deferred awards previously granted to the Executive under BOHC's incentive compensation plans
and not previously paid to the Executive, shall immediately vest on the date of the Executive's Effective Date of Termination and shall be paid no later than ninety  (90) calendar days following that
date, and be included as compensation in the month paid. 

        3.8   Stock Options and SARs. Stock options ("options"), stock appreciation
rights ("SARs") and restricted shares, if any, granted to the Executive by BOHC will be exercisable or
payable pursuant to the terms of the applicable plans. 

6

 

Article 4. Just Cause  

        4.1   Just Cause. Nothing in this Agreement shall be construed to prevent BOHC or the Bank from terminating an Executive's
employment for Just Cause. In such case, no Severance Benefits shall be payable to the Executive under this Agreement. 

                Just
Cause shall mean the criminal conviction of the Executive for an act of fraud, embezzlement, theft or any other act constituting a felony. 

                The
determination that the Executive's actions constitute Just Cause for termination shall be made by the Board, acting in good faith. 

Article 5. Form and Timing of Severance Benefits  

        5.1   Form and Timing of Severance Benefits. The Severance Benefits described in Sections 3.2 (a), (b), (c), (d) and
(e), shall be paid in cash to the Executive in a single lump sum as soon as practicable following the Executive's Effective Date of Termination, but in no event beyond ninety  (90) calendar days from
such date. 

                The
Severance Benefits described in Section 3.2(f) and 3.5 herein shall be provided by BOHC to the Executive immediately upon the Executive's Effective Date of
Termination and shall continue to be provided for three (3) full calendar years from the Executive's Effective Date of Termination or until the
Executive reaches his or her Normal Retirement date, whichever occurs earlier. 

        5.2   Withholding of Taxes. BOHC shall withhold from any amounts payable under this Agreement all Federal, state, city, or
other taxes as legally shall be required. 

Article 6. Parachute Payments  

        6.1   Excise Tax Cap. In the event that a Change in Control of BOHC shall occur and a determination is made by BOHC, pursuant
to Sections 280G and 4999 of the Code (and corresponding state law provisions) that a golden parachute excise tax is due, the Executive's Severance
Benefits under this Plan shall be grossed up for the amount equal to and only equal to the amount necessary to pay the excise tax. 

        6.2   Subsequent Recalculation. In the event the Internal Revenue Service adjusts the excise tax computation of BOHC, as
provided in Section 6.1 herein, such that the Executive is liable for the payment of a greater excise tax under Sections 280G and 4999 of the Code, or such that the Executive does not receive
the full benefit that he or she would have received, BOHC shall reimburse the Executive for the full amount necessary to make the Executive whole (less any amounts received by
the Executive that he or she would not have received had the computation initially been computed as subsequently adjusted), including the value of the excise tax and all
corresponding interest and penalties due to the Internal Revenue Service. 

Article 7. Other Rights and Benefits Not Affected  

        7.1   Other Benefits. Neither the provisions of this Agreement nor the Severance Benefits provided for hereunder shall reduce
any amounts otherwise payable, or in any way diminish the Executive's rights as an employee of BOHC, whether existing now or hereafter, under any benefit, incentive, retirement, stock option, stock
bonus, stock purchase plan, or any employment agreement, or other plan or arrangement. 

        7.2   Employment Status. This Agreement does not constitute a contract of employment or impose on the Executive or BOHC any
obligation to retain the Executive as an employee, to change the status of the Executive's employment, or to change BOHC's policies regarding termination of employment. 

7

 

Article 8. Successors  

        8.1   Successors. BOHC will require any successor (whether direct or indirect, by purchase, merger,
consolidation, or otherwise) of all or substantially all of the business and/or assets of BOHC or of any division or subsidiary thereof to expressly assume and agree to perform
this Agreement in the same manner and to the same extent that BOHC would be required to perform it if no such succession had taken place. Failure of BOHC to obtain such assumption and agreement prior
to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle the Executive to compensation from BOHC in the same amount and on the same terms as they would be
entitled hereunder if terminated voluntarily following a Change in Control. Except for the purposes of implementing the foregoing, the date on which any succession becomes effective shall be deemed
the Effective Date of Termination. 

                This
Agreement shall inure to the benefit of and be enforceable by the Executive's personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees, and legatees. If an Executive should die while any amount would still be payable hereunder had the Executive continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Agreement, to the Executive's devisee, legatee, or other designee, or if there is no such designee, to the Executive's estate. 

        8.2   Beneficiaries. The beneficiary of the Executive under the Bank of Hawaii Corporation Money Purchase Plan shall be the
beneficiary of the Executive's benefits under this Agreement, unless a beneficiary is otherwise designated by the Executive in the form of a signed writing acceptable to the Committee. An Executive
may make or change such designation at any time. 

Article 9. Administration  

        9.1   Administration. This Agreement shall be administered by the Human Resources and Compensation Committee of the Board of
Directors. The Committee is authorized to interpret this Agreement, to prescribe and rescind rules and regulations, to provide conditions and assurances deemed necessary and advisable, to protect the
interests of BOHC, and to make all other determinations necessary or advisable for the Agreement's administration. 

                In
fulfilling its administrative duties hereunder, the Committee may rely on outside counsel, independent accountants, or other consultants to render advice or assistance. 

        9.2   Indemnification and Exculpation. The members of the Board, its agents and officers, directors, and employees of BOHC and
its affiliates shall be indemnified and held harmless by BOHC against and from any and all loss, cost, liability, or expense that may be imposed upon or reasonably incurred by them in connection with
or resulting from any claim, action, suit, or proceeding to which they may be a party or in which they may be involved by reason of any action taken or failure to act under this Agreement and against
and from any and all amounts paid by them in settlement (with BOHC's written approval) or paid by them in satisfaction of a judgment in any such action,
suit, or proceeding. The foregoing provision shall not be applicable to any person if the loss, cost, liability, or expense is due to such person's gross negligence or willful misconduct. 

Article 10. Legal Fees  

        10.1 Legal Fees and Expenses. BOHC shall pay all reasonable legal fees, costs of litigation, and other expenses incurred in
good faith by the Executive as a result of BOHC's refusal to provide the Severance Benefits to which the Executive becomes entitled under this Agreement, or as a result of BOHC's contesting the
validity, enforceability, or interpretation of the Agreement. Provided, however, that such payments shall not exceed the amount permitted by law and BOHC's Restated Articles of Incorporation. 

8

 

                IN
WITNESS WHEREOF, BOHC has caused this Agreement to be executed by a resolution of the Board of Directors, as of the day and year first above written. 

	 
	 	 
	 	 

	 	 	Bank of Hawaii Corporation
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Chairman & CEO
	

 	
 	

By:	
 	

 
	 	 	 	 	
(Executive)
	

ATTEST:	
 	

 	
 	

 
	

	
 	

 	
 	

 

9

QuickLinks

Key Executive Change-in-Control Severance Agreement

Contents

Bank of Hawaii Corporation Key Executive Change-in-Control Severance Agreement

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