Document:

<PAGE>

                                  Exhibit 10.30

December 18, 2001

                                        Mr. Richard J. Dahl, President

Dear Richard:

This letter, upon your acceptance, will constitute a legally binding agreement
("letter Agreement") between you and Pacific Century Financial Corporation and
Bank of Hawaii (collectively "PCFC" or the "Company") governing the terms of
your employment by PCFC between the date of this letter agreement (the
"Effective Date") and March 31, 2002 (the "Completion Date"). This letter
agreement also provides the terms of your separation from employment with PCFC
if your employment terminates on or before the Completion Date.

You and PCFC agree as follows:

1.   Responsibilities. During the period from the Effective Date until the
     ----------------
     Completion Date (the "Term"), your sole duty as officer and employee of the
     Company will consist of using your best efforts to manage, in accordance
     with established PCFC operating standards, and direct and carry out, in
     accordance with policies, procedures and directions established by the
     Board of Directors of PCFC and under the direct supervision of Michael E.
     O'Neill, the disposition by sale or closure of PCFC interests in the
     following properties, investments and lines of business (collectively, the
     "Properties"):

     a.   All of the Company's operations and investments in the South Pacific
          except the Bank of Hawaii branches located in the Territory of
          American Samoa. This consists of the three branches of Bank of Hawaii
          in Fiji, the Company's investment in Bank of Queensland, Ltd., and the
          Company's interest in Banque de Tahiti, Bank of Hawaii - Nouvelle
          Caledonie, Bank of Hawaii (PNG) Ltd., Banque de Hawaii (Vanuatu),
          Ltd., National Bank of the Solomon Islands, and all of their
          subsidiaries (collectively the "South Pacific Operations").

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     b.   Bank of Hawaii branches and representative offices in Hong Kong, the
          Philippines, Korea, Singapore and Taiwan and Bank of Hawaii
          International Corporation, New York (collectively the "Asian
          Operations").

     c.   Pacific Century Bank, N.A. ("PCB").

In addition to the disposition of the Properties, you shall direct the
restructuring of Bank of Hawaii's Tokyo branch to a representative office.

In this letter agreement these dispositions and the restructuring of the Tokyo
branch are called the "Project". The Project will be completed when PCFC no
longer holds title to any of the Properties and the Tokyo branch has been
restructured to a representative office.

2.   No Employment Agreement. Nothing in this letter agreement shall be deemed
     -----------------------
     to create an employment agreement between you and PCFC providing for your
     employment by PCFC for any fixed period of time. Your employment with PCFC
     is terminable at will by you or PCFC and each shall have the right to
     terminate your employment with PCFC at any time, with or without cause.
     Except as specifically provided in this letter agreement, the termination
     of your employment shall not effect the incentive compensation to be paid
     to you.

3.   Project Approvals. In carrying out your responsibilities you will report
     -----------------
     directly to Michael E. O'Neill and will be responsible for keeping him
     fully informed, through written monthly progress reports and other reports
     as requested, of all developments related to the Project. The retention of
     outside professional assistance (investment bankers, accountants,
     attorneys, etc.), any significant changes in the operation of any of the
     Properties included within the Project during the Term, any binding or
     nonbinding letters of intent, term sheets or contracts or other agreements
     to dispose of any of the Properties and all other major elements related to
     the Project, will be subject to the prior approval of Michael E. O'Neill.
     All decisions related to the Project including Property operations will be
     subject to the final approval of PCFC and PCFC may terminate the Project in
     whole or in part at any time, all in its sole and absolute discretion.

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4.   Property Operations. PCFC anticipates entering into separation/retention
     -------------------
     agreements with Karl Pan, Marshall Laitsch, Mark Bauer and Kai Chin to
     encourage their continued and active participation and efforts to operate
     the Properties properly and to assist in carrying out the Project. During
     the Term, they will report to you and work with you in that regard. You
     will use your best efforts to ensure that the Properties continue to
     operate during the Term consistent with PCFC standards, procedures and
     controls and consistent with the divestiture plan presented to and approved
     by the PCFC Board of Directors and PCFC will continue to support the
     Properties at the same level as before the Effective Date.

5.   Support. You will retain your current offices and staff support and,
     -------
     consistent with other needs of the Company, will be entitled to call upon
     the internal resources of the Company (finance, accounting, legal, human
     resources, etc.) in carrying out your efforts on the Project.

6.   Corporate Titles and Responsibilities. During the Term, you will continue
     -------------------------------------
     to hold your present corporate title of President and will continue to
     serve on the Managing Committee for purposes of coordinating activities
     related to the Project with other Company operations and will continue as a
     member of the Board of Directors of Bank of Hawaii, Pacific Century
     Financial Corporation and any boards of directors for any of the Properties
     upon which you currently serve. To afford you maximum time to work on the
     Project, you will relinquish your membership on other PCFC subsidiary
     boards of directors unless directed otherwise.

7.   Project Goals. We each acknowledge and agree that it is in the best
     -------------
     interest of the Company and its shareholders that the Project be carried
     out in a manner which, to the greatest extent possible, protects the
     reputation of the Company while providing the greatest benefit of the
     Company, its shareholders and the Company's ongoing operations after
     completion of the Project. All aspects of the Project will be planned and
     conducted to achieve these goals.

8.   Base Compensation. During the Term you will receive the following base
     -----------------
     salary and benefits:

     a.   Effective on April 1, 2001, your base salary was increased to $600,000
          per annum, payable in semi-monthly installments.

     b.   You will continue to participate in the Company medical, dental, life
          insurance, long-term care, disability, profit sharing, money purchase,
          excess profit sharing, excess money purchase and vacation accrual
          employee benefit programs.

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     c.   You will continue to receive your automobile allowance, existing
          parking space, and the payment of your club dues.

     d.   Effective as of June 22, 2001, PCFC has granted you 35,000 shares of
          restricted PCFC common stock, which are subject to the terms of the
          Restricted Share Agreement dated as of June 22, 2001 (the "Restricted
          Stock Agreement"), between you and the Company.

9.   Termination of Other Compensation and Benefits. As of the Effective Date,
     ----------------------------------------------
     your participation in future grants under the Company Stock Option Program,
     in the One-Year Incentive Plan, in all Long-Term Incentive Plans and in all
     severance or separation plans (except for the Executive Change-in-Control
     Severance Agreement) will terminate, and you will not be entitled to any
     further payments or awards under those plans or agreements. Subject to
     paragraphs 11 and 12.h below, the compensation and benefits payable to you
     under this letter agreement the Restricted Stock Agreement and your
     Executive Change-In-Control Severance Agreement will be the only
     compensation and benefits you will be entitled to receive from the Company
     after the Effective Date.

10.  Incentive Compensation. You will be entitled to the following incentive
     ----------------------
     compensation for your work on the Project:

     a.   On the Completion Date PCFC will pay you a bonus of $1,500,000.

     b.   On the Completion Date PCFC will pay you an additional incentive bonus
          payment of not less than $1,250,000 and up to $3,000,000 to the extent
          you have, in the judgment of the Company acting in its sole and
          absolute discretion, successfully carried out your responsibilities
          under this letter agreement. In the event that all of the Properties
          have not been disposed of on the Completion Date, the Company shall
          consider the amount to be paid to you as the additional incentive
          bonus payment taking into consideration the Properties that were
          disposed of, the consideration received for the Properties disposed of
          and the number of, status of and prognosis for the Properties whose
          disposition is not then complete.

11.  Continued Employment. We each acknowledge that neither you nor PCFC has
     --------------------
     made a final decision as to whether your employment by PCFC will continue
     after the Completion Date. Provisions in this letter agreement related to
     the termination of employment are included only to facilitate that process
     if it does occur. If we mutually agree that your employment by PCFC will
     continue after the Completion Date:

<PAGE>

     a.   You will not receive the payment, if any, due under paragraph 10.a.
          above.

     b.   You will receive the payment due under paragraph 10.b. above in the
          amount determined by the Company.

     c.   Your participation in all programs and plans terminated under
          paragraph 9 above will be reinstated.

12.  Employment Termination. If your employment with the Company terminates:
     ----------------------

     a.   You will receive information regarding your rights to health insurance
          continuation after the termination. To the extent you have any such
          rights, nothing in this letter agreement will impair those rights.

     b.   On the date of your termination you will return to PCFC any
          information you have about PCFC's practices, procedures or trade
          secrets, including but not limited to customer data, lists, accounts,
          bank strategies, growth plans, business plans and marketing strategies
          and any Company properties such as credit cards and keys.

     c.   If your employment terminates because you die or become totally
          disabled or PCFC terminates your employment without cause, you will be
          entitled to receive (a) your base compensation under paragraph 8.a.
          above through the Completion Date, (b) the incentive compensation
          payable under paragraph 10.a. above, and (c) an amount we mutually
          agree will fairly compensate you for the incentive compensation you
          would have received under paragraph 10.b. above at the completion of
          the Project or, failing such mutual agreement, such amount determined
          by arbitration as provided in paragraph 20 below.

     d.   If you become eligible to receive "Severance Benefits" under your
          Executive Change-In-Control Severance Agreement you may, at your
          option, choose to receive these Severance Benefits or any amounts due
          you under paragraphs 10.a. and 10.b. above, but not both. You agree
          that the payments provided for in this letter agreement shall be in
          lieu of and you shall not be entitled to any benefits under any of the
          Company's other employee severance or separation plans. By entering
          into this letter agreement, you are waiving and releasing any of your
          benefits under those plans.

<PAGE>

     e.   If you voluntarily terminate your employment with PCFC before the
          Completion Date for any reason or PCFC terminates your employment for
          cause as defined in paragraph 13 below, all rights, compensation and
          benefits you have under paragraphs 8, 10, and 12.g. of this letter
          agreement will terminate automatically and you will not be entitled to
          any rights, compensation or benefits under those paragraphs.

     f.   On the date of the termination of your employment, you will be paid
          any accrued but unused vacation.

     g.   With regard to all Qualified and Non-Qualified Stock Options
          ("Options") currently held by you that are not vested, the
          Compensation Committee of PCFC's Board of Directors, will provide for
          the full vesting of such options upon the completion of six months
          following their date of grant. With regard to all vested options held
          by you as of the date of your termination of employment, the
          Compensation Committee will extend the period within which those
          options are exercisable to three years following the date of your
          termination of employment in the case of the Options under the 1994
          Option Plan and one year following the Termination Date in the case of
          Options under the 1988 Option Plan; provided, however, that in no
          instance will the period for exercising an option be longer than the
          original exercise period for the option. Extension of the exercise
          period for your Qualified Stock Options may result in conversion of
          your Qualified Stock Options into Non-Qualified Stock Options with the
          consequent loss of tax benefits. Therefore, Qualified Stock Options
          will not be subject to these extensions unless you so request in
          writing on or before the Termination Date.

13.  Termination for Cause. PCFC may terminate your employment at any time for
     ---------------------
     "cause." As used in this letter agreement, "for cause" means:

     a.   Your material breach of this letter agreement and failure to take
          reasonable steps to cure the breach within a reasonable time after you
          have been notified of the breach by the Company;

     b.   Your material breach of the policies of PCFC or the Bank of Hawaii
          Code of Ethics and failure to take reasonable steps to cure the breach
          within a reasonable time after you have been notified of the breach by
          the Company;

     c.   Your commission of a felony or immoral act which is materially
          detrimental to PCFC's reputation or regulatory standing;

<PAGE>

     d.   Your commission of an act of fraud, dishonesty or gross misconduct
          relating to the business of the Properties or PCFC;

     e.   Your failure to perform your duties with PCFC within a reasonable time
          after a demand for such performance is delivered to you by an officer
          of PCFC; or

     f.   Your habitual neglect of job duties resulting in material damage to
          PCFC or its reputation within a reasonable time after a demand to
          perform your job duties is delivered to you by an officer of PCFC.

14.  Waiver and Release. Upon receipt of all of the payments and the performance
     ------------------
     of all of the Company's obligations to you, you will waive, release and
     forego any and all claims, whether or not now known, suspected or claimed,
     that you ever had, now have, or may later claim to have had as of or prior
     to the Effective Date against PCFC and any of its predecessors,
     subsidiaries, related entities, officers, directors, shareholders, agents,
     attorneys, employees, successors or assigns arising from or related to your
     employment with PCFC and/or the termination of your employment with PCFC.
     These claims include, but are not limited to, claims arising under federal,
     state and local statutory or common law, including, but not limited to, the
     Age Discrimination in Employment Act, Title VII of the Civil Rights Act of
     1964, Hawaii civil rights and anti-discrimination statutes, wage and hour
     laws, the law of contract and tort (such as claims for breach of contract,
     infliction of emotional distress, defamation, invasion of privacy, wrongful
     termination, etc.), and any claims for attorneys' fees and/or costs.

15.  Inquiries. PCFC and you agree that any inquiries regarding verification of
     ---------
     your employment will be handled through the Bank of Hawaii, Human Resources
     Division. You agree that you will instruct anyone of whom you are aware who
     is making such inquiries to contact the Human Resources Division or Michael
     E. O'Neill. As is the Bank's practice, the Human Resources Division will
     only release information confirming your dates of employment and position
     title.

16.  Negative Statements. PCFC and you agree that each will not make any
     -------------------
     disparaging, negative or derogatory statements regarding the other.

17.  Disclosure. Unless compelled by court order or subpoena or otherwise
     ----------
     required by law, you will not disclose to others or use any information
     regarding PCFC's practices, procedures or trade secrets, including but not
     limited to, customer data, lists and accounts; and PCFC strategies, growth
     plans, business plans, and marketing strategies.

<PAGE>

18.  Breach; Remedies. In the event that you materially breach your obligations
     ----------------
     under this letter agreement and fail to cure within a reasonable period of
     time after written notice to you by an officer of the Company to perform
     any of your obligations under this letter agreement, PCFC will be entitled
     to terminate your employment and any of your rights, benefits and
     compensation payable under this letter agreement and to obtain all other
     relief provided at law or equity. In addition, your breach of paragraph
     12.b., 16 or 17 will result in irreparable harm to PCFC for which it will
     have no adequate remedy at law and for which PCFC may seek immediate
     injunctive relief.

19.  Age Discrimination. The following is required by the Older Workers Benefit
     ------------------
     Protection Act:

          This letter agreement includes a waiver of any claims you may have
          under the Age Discrimination in Employment Act through the Effective
          Date of this letter agreement. You have up to 21 days from the date of
          this letter to accept the terms of this letter agreement, although you
          may accept it at any time within those 21 days. There are advantages
          and disadvantages for you in entering into this letter agreement.
          Prompt receipt of the payment provided for in paragraph 8 and 9 and an
          amicable resolution to the situation may be considered advantages.
          Release of potential claims may be considered a disadvantage. To
          properly weigh the advantages and disadvantages you are advised to
          consult an attorney about this letter agreement prior to signing this
          letter agreement. If you want to accept this letter agreement prior to
          the expiration of the 21 days, you will need to indicate your waiver
          of the 21-day consideration period by signing in the space indicated
          below.

          Once you do so, you will still have an additional seven days in which
          to revoke your acceptance. To revoke, you must send me a written
          statement of revocation by registered mail, return receipt requested.
          If you do not revoke, the eighth day after the date of your acceptance
          will be the "Effective Date" of this letter agreement. This letter
          agreement will not be effective and enforceable until the revocation
          period has expired.

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20.  Arbitration. Any dispute under or related to this letter agreement shall be
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     submitted to binding arbitration in Honolulu, Hawaii in accordance with the
     applicable rules of the American Arbitration Association. The arbitrators
     shall be required to apply and follow the terms of this letter agreement
     and shall not in any event award any punitive damages. The arbitrators
     shall have the authority to award the prevailing party in any arbitration
     his or its reasonable attorney's fees.

21.  General. This letter agreement may be executed in counterparts. Paragraph
     -------
     headings are for ease of reference only. This letter agreement represents
     the complete agreement of the parties, and is intended to bind all parties,
     and all persons claiming by or through the parties. It supersedes any and
     all prior agreements, and may only be waived or amended in whole or in part
     in writing signed by all parties. This letter agreement will be governed by
     and interpreted under Hawaii law. Appropriate tax withholding and other
     deductions will be made from all amounts payable under this letter
     agreement.

<PAGE>

If you agree to the terms of this letter agreement, please execute and date both
copies, as indicated below, retain a copy for your records and return the other
copy to me.

                                           Very truly yours,

                                           PACIFIC CENTURY
                                           FINANCIAL CORPORATION
                                           and BANK OF HAWAII

                                           By  /S/ Michael E. O'Neill
                                                   Michael E. O'Neill
                                                   Chief Executive Officer

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

/S/  Richard J. Dahl
Richard J. Dahl

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

/S/  Richard J. Dahl
Richard J. Dahl

Signature page of letter agreement dated December 18, 2001 among Pacific Century
Financial Corporation, Bank of Hawaii, and Richard J. Dahl.<PAGE>

                                  Exhibit 10.31

                                  Key Executive
                                Change-in-Control
                               Severance Agreement

                                   __________

                      Pacific Century Financial Corporation

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                                    Contents

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<TABLE>
<CAPTION>
                                                                            Page
<S>                                                                         <C>
Article 1.        Establishment and Purpose ...............................    1

Article 2.        Definitions and Construction ............................    2

Article 3.        Severance Benefits ......................................    4

Article 4.        Just Cause ..............................................    6

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 and Arbitration ..............................    9
</TABLE>

<PAGE>

                      Pacific Century Financial 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 Pacific Century Financial
Corporation's Key Executive Severance Plan (the "Plan"), and is effective as of
this 27th day of April, 2001 (the "Effective Date"), by and between Pacific
Century Financial Corporation ("PCFC"), a Hawaii corporation, and Neal C.
Hocklander, an executive (the "Executive") of PCFC and its subsidiary, Bank of
Hawaii (the "Bank"). This Agreement shall supersede and replace any prior
severance agreement entered into between PCFC 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 PCFC (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 PCFC, 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 PCFC,
including, but not limited to, the commencement of a tender offer for the voting
stock of PCFC, or the circulation of a proxy to PCFC'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 PCFC.

     1.3 Purpose of the Agreement. The purpose of this Agreement pursuant to the
Plan, is to advance the interests of PCFC and the Bank by assuring that PCFC 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 PCFC 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 PCFC 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 PCFC. However, nothing herein
shall require PCFC to segregate, earmark, or otherwise set aside any funds or
other assets to provide for any payments hereunder.

<PAGE>

         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
               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 PCFC 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 PCFC.

          (e)  "Change in Control" of PCFC 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 PCFC having 25 percent or more
                    of the total number of votes that may be cast for the
                    election of Directors of PCFC; 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
                    PCFC before the

<PAGE>

               transaction shall cease to constitute a majority of the Board of
               Directors of PCFC or any successor to PCFC.

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

          (g)  "PCFC" means Pacific Century Financial Corporation, a Hawaii
               corporation, or any successor thereto that adopts the Agreement,
               as provided in Section 8.1 herein.

          (h)  "Committee" means the Compensation Committee of the Board of
               Directors of PCFC 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 PCFC 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 PCFC, then PCFC 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.

          (n)  "Just Cause" means a termination of an Executive's employment by
               PCFC 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

<PAGE>

                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 Pacific Century Financial 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 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 PCFC Severance Benefits as described in Section 3.2 herein, if
there has been a Change in Control of PCFC, 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
PCFC. An Executive shall not be entitled to receive Severance Benefits if the
Executive's employment with PCFC or Bank of Hawaii ends due to an involuntary
termination by PCFC 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, PCFC 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

<PAGE>

               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
               bonus earned under the One-Year Incentive Plan during 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 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 Pacific Century Financial
               Corporation Profit Sharing Plan, the Long-Term Incentive Plan, 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 One-Year Incentive Plan
               if he had continued in the employment of PCFC 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 One-Year 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

<PAGE>

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 PCFC to transferred employees prior to the
Change in Control.

     3.6   Incentive Compensation. Any deferred awards previously granted to the
Executive under PCFC'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") and stock
appreciation rights ("SARs"), if any, granted to the Executive by PCFC will be
exercisable pursuant to the terms of the applicable plans.

Article 4. Just Cause
           ----------

     4.1   Just Cause. Nothing in this Agreement shall be construed to prevent
PCFC 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

<PAGE>

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 PCFC 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. PCFC 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 PCFC shall
occur and a determination is made by PCFC, 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 PCFC, 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, PCFC 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 PCFC,
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 PCFC any obligation to retain the
Executive as an employee, to change the status of the Executive's employment, or
to change PCFC's policies regarding termination of employment.

<PAGE>

Article 8. Successors
           ----------

     8.1   Successors. PCFC 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 PCFC 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 PCFC would be required to perform it
if no such succession had taken place. Failure of PCFC 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
PCFC 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 Pacific
Century Financial 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
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 PCFC, 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 PCFC and its affiliates shall be
indemnified and held harmless by PCFC 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 PCFC's written approval) or paid by
them in satisfaction of a judgment in any such action, suit, or proceeding. The
foregoing provision shall

<PAGE>

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

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

                                           Pacific Century Financial Corporation

                                           By:  /S/ Michael E. O'Neill
                                              ----------------------------------
                                                          Michael E. O'Neill

                                           Its: Chairman & CEO

                                           By:  /S/ Neal C. Hocklander
                                              ----------------------------------
                                                (Executive)

ATTEST:

      /S/  Mary Carryer
----------------------------------------

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