Exhibit 10.01





Exhibit 10.01




Note: Redacted portions have been marked with [***]. The redacted portions are subject to a
request for confidential treatment that has been filed with the Securities and Exchange Commission.



FEDERAL HOME LOAN BANK OF NEW YORK 2010 INCENTIVE COMPENSATION PLAN





	I.	 	OBJECTIVE

	 
	 	 	The objective of the Federal Home Loan Bank of New York’s (“Bank”) 2010 Incentive Compensation
Plan (“Plan”) is to motivate employees to take actions that support the Bank’s strategies and
lead to the attainment of the Bank’s business plan and fulfillment of its mission.







The Plan is intended to accomplish this objective by:




	 	•	 	Linking annual cash pay-out award opportunities to Bank performance measured by the
Bank’s “Business Effectiveness”; “Mission Effectiveness”; and, “Growth Effectiveness”
goals as well as utilizing individual, department and group performance measures for
certain employees where appropriate and applicable;

	 
	 	•	 	Establishing the goal-setting process as an effective reward system so that employee
monetary interests are related to and dependent upon Bank performance; and

	 
	 	•	 	Retaining top performing employees by affording them the opportunity to share in the
Bank’s enhanced performance.







	II.	 	DEFINITIONS







	 	A.	 	Bank: The Federal Home Loan Bank of New York, its successors and assigns.

	 
	 	B.	 	Board: The Board of Directors of the Federal Home Loan Bank of New York.

	 
	 	C.	 	Committee: The Compensation and Human Resources Committee of the Board.

	 
	 	D.	 	Fiscal Year: The 12-month period used as the annual accounting period by the Bank.

	 
	 	E.	 	Manager: The person to whom the Participant reports directly.

	 
	 	F.	 	Participant: An employee of the Bank as defined by the terms of the Financial
Institutions Retirement Fund who is exempt from the application of the overtime
provisions of the Fair Labor Standards Act and who is also selected by the President to
participate in the Plan.

	 
	 	G.	 	Plan: This Incentive Compensation Plan, as may be amended or supplemented from time
to time.

	 
	 	H.	 	Plan Year: 2010

	 
	 	I.	 	President: The Chief Executive Officer of the Bank, regardless of title, or his
designee.





 


 









 





Note: Redacted portions have been marked with [***]. The redacted portions are subject to a
request for confidential treatment that has been filed with the Securities and Exchange Commission.






	III.	 	ADMINISTRATION







	 	A.	 	The Plan shall become effective upon fulfillment of the conditions included in the
resolution pertaining to the Plan adopted by the Committee on February 23, 2010. Once
such conditions are fulfilled, the terms of the Plan shall become effective for the Plan
Year beginning January 1, 2010.

	 
	 	B.	 	The Plan shall be administered by the President, subject to any requirements for
review and approval by the Committee that the Committee may establish. The Committee
shall keep the Board apprised of any amendments to the Plan. The Director of Human
Resources shall be the President’s designee until there is a written communication by the
President naming other(s) to fulfill that duty. In all areas not specifically reserved
by the Committee for its review and approval, decisions of the President or his designee
concerning the Plan shall be binding on the Bank and on all Participants.

	 
	 	C.	 	While the President has the full power and authority to interpret and administer
the Plan, he will also have the following specific rights and duties:







	 	1.	 	To adopt, amend and rescind administrative guidelines, rules and
regulations pertaining to the Plan.

	 
	 	2.	 	To accept, modify or reject recommendations of the Managers to set final awards.

	 
	 	3.	 	To interpret and rule on any questions pertaining to any provisions of the
Plan.

	 
	 	4.	 	To retain all such other powers as may be necessary to discharge the duties
and responsibilities herein.







Notwithstanding the foregoing, matters specifically affecting the President shall be
handled by the Committee.




	 	D.	 	The President will be responsible for ensuring effective communication of Plan
provisions each year. Each Participant will be given a copy of the Plan document and of
any schedule deemed necessary by the President. Material modifications or changes to the
Plan will be documented and distributed to Participants as soon as practicable.

	 
	 	E.	 	Nothing contained in this Plan shall be construed as a contract of employment
between the Bank and a Participant, or as a right of a Participant to be continued in the
employment of the Bank, or as a limitation of the right of the Bank to discharge a
Participant with or without cause.







	IV.	 	ELIGIBILITY







	 	A.	 	Employees in positions determined to have a measurable impact on Bank results and
for whom incentive participation is consistent with competitive practice may be eligible
for participation in the Plan.

	 
	 	B.	 	The President will select annually, for approval by the Committee, those positions
which will be eligible for awards granted under the terms of the Plan. Eligibility may
vary from year to year.

	 
	 	C.	 	Eligible positions are listed in Schedule A, incorporated by reference,
which may be updated annually or more frequently, as appropriate. Incumbents in these
positions are Participants in the Plan unless otherwise noted in Schedule A.

	 
	 	D.	 	New employees deemed eligible for Plan participation will be considered eligible
immediately upon date of hire.





 


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Note: Redacted portions have been marked with [***]. The redacted portions are subject to a
request for confidential treatment that has been filed with the Securities and Exchange Commission.





	V.	 	INDIVIDUAL AWARD OPPORTUNITIES







	 	A.	 	The President shall recommend to the Committee for its approval the award levels
which shall be used to calculate awards earned by Plan Participants.

	 
	 	B.	 	Award levels shall be expressed as a percent of the base salary of each Participant
for that Plan Year.

	 
	 	C.	 	Each position shall have an assigned threshold, target and maximum award
opportunity level. The range of award opportunities for each Plan Participant is included
in Schedule A, which is incorporated by reference. This Schedule A may
be amended or otherwise modified from year to year by the Committee.







	VI.	 	OBJECTIVE SETTING







The President shall from time to time recommend to the Committee Bankwide performance goals
that incentive payments to Participants shall be based upon, either in their entirety or
selectively. Individual and/or group performance measures and goals may be developed by
Participants in collaboration with their Managers. The Bankwide performance goals will
specify target performance levels as well as the achievement levels required to receive
threshold and maximum incentive award amounts. Target performance goal(s) shall be designed
to be attainable, but not without significant effort. Maximum performance goal(s) shall be
established as goal(s) representing a “reach” for the Bank and/or the group or individual as
applicable. The Committee shall review and have final approval over the Bankwide performance
measures and goals for all Participants, including the President. Individual and/or group
performance measures and goals for Participants other than the President will be reviewed
and approved by the participant’s and/or group’s manager. Changing the measures of Bankwide
performance or changing the achievement levels of Bankwide performance will require approval
of the Committee.




	VII.	 	OBJECTIVE WEIGHTING







Actual incentive awards under the Plan will be based on (i) Bankwide performance results, and
(ii) individual and/or group performance results, if applicable or appropriate. The relative
weighting of Bank performance may vary.




	VIII.	 	PERFORMANCE MEASUREMENT







	 	A.	 	Performance against goals will be measured as soon as practicable following the
close of the Plan Year.

	 
	 	B.	 	Group and/or individual performance, where applicable, will be measured by each
Participant’s Manager.





 


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Note: Redacted portions have been marked with [***]. The redacted portions are subject to a
request for confidential treatment that has been filed with the Securities and Exchange Commission.





	IX.	 	AWARD DETERMINATION







	 	A.	 	Aggregate performance of Bankwide goals, individual and/or group goals, where
applicable, will be used to determine the Participants’ awards. There will be no payout
to Participants for Bankwide goals if results on all Bankwide goals fall below the
threshold level. Should the Bank not meet all of its Bankwide goals, Participants who have
attained at least an overall performance rating of 3.0 will be paid an incentive award
based on their individual performance component.







	 	B.	 	A Participant’s overall performance as rated in his/her last performance evaluation
must be rated at least a 3.0 in order to receive an incentive payment. However,
regardless of his or her overall rating, a Participant with a written performance warning
in his or her employment file who does not also have corresponding documentation from his
or her manager in his/her employment file evidencing acceptable improvement in the
Participant’s performance prior to the payment of the award shall not receive any
incentive payment.







	 	C.	 	Participants who are on official leaves of absence, paid or unpaid, and who have an
1) executed 90-day follow-up performance evaluation (for newly- hired Participants) or 2)
annual performance evaluation for the Plan Year shall be eligible to receive incentive
awards for the Plan Year, payment of which will be made when the Participant returns from
the paid or unpaid leave of absence if that occurs later than the payment of awards to
other Participants.







	 	D.	 	Participants that have attained an “Exceeds Requirements” or “Outstanding” rating
in their performance evaluation will receive an additional 3% or 6%, respectively, of
their base salary added to their Plan award. For Participants with salary changes during
the Plan year, the additional 3% or 6% payment will be based on the base salary as of the
conclusion of the Plan year.







	 	E.	 	Recommendations will be made to the Committee regarding the actual Bankwide
performance and the associated level of payments as soon as practicable following the
conclusion of the Plan Year. Such recommendations shall be based on achieved levels of
performance, measured against the performance objectives adopted for each portion of the
award.







	 	F.	 	Plan Participants, including the President, will receive a cash payment of the
award as soon as practicable after final approval by the Committee.







	 	G.	 	Awards earned may vary from the target award defined for each Plan Participant
according to performance achieved by the Bank, and where applicable by the group or
individual.







	 	H.	 	Payments may vary from the assigned threshold, target and maximum award opportunity
level as indicated in Schedule A if the Committee determines at the end of the
Plan year that an adjustment to the schedule would better serve the purposes of the Plan.







	 	I.	 	Individuals who are hired during the Plan Year, but in no event after October 31 of
that year, to fill eligible positions will receive prorated incentive payments based on
length of time worked. To receive such payments, the newly hired employee must have an
executed 90-day follow-up performance evaluation and have received at least a “Meets
Requirements” rating. The final incentive payment will be calculated on a calendar day
basis.





 


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Note: Redacted portions have been marked with [***]. The redacted portions are subject to a
request for confidential treatment that has been filed with the Securities and Exchange Commission.





	 	J.	 	If a Participant’s rank or assignment from one tier to another as indicated in
Schedule A is changed, the incentive payment may be determined on a pro rata basis
according to that portion of the Plan Year worked in each eligible position.







	 	K.	 	If a Participant is promoted and their incentive compensation opportunity, as
indicated in Schedule A, does not change, the incentive payment may be determined
on a pro rata basis according to that portion of the Plan Year Participant worked in each
eligible position.







	 	L.	 	Incentive payments for Participants who are non-officers shall be calculated using
the base salary as of the end of the Plan year without regard to prorating.







	 	M.	 	If a Participant other than the President dies, the payment may be awarded based
upon the judgment of the President. The final payment may be made after approval by the
Committee following the conclusion of the Plan Year. If the President dies, the payment
may be awarded based upon the judgment of the Board. The final payment may be made after
approval by the Board following the conclusion of the Plan Year.







	 	N.	 	If, prior to the payment of an award, (i) the employment of a Participant is
terminated by the Bank or (ii) the Participant leaves the Bank voluntarily, no incentive
award will be made or payable under this Plan, except in the discretion of the Committee
(or in the case of the President, the Board).







	 	O.	 	All incentive awards under this Plan shall be paid to Participants on or before
March 15, 2011; provided that, in the event the Bank shall be prevented from calculating
and paying such incentive awards by March 15, 2011 by any event, including specifically,
but not limited to, (i) its unforeseeable failure to receive any necessary approvals of
its financial statements of the Bank for the calendar year 2010 from its regulators or
outside accountants in sufficient time in advance of March 15, 2011, (ii)  the
unforeseeable temporary absence of Bank employees necessary to calculate such incentive
awards by such date, or (iii) any other event which the Bank may reasonably deem, in good
faith, to constitute administrative impracticability of the Bank to calculate and pay
such incentive awards by such date, the failure of the Bank to pay such incentive awards
to Participants by March 15, 2011 shall be deemed to be due to administrative
impracticability, within the meaning of § 1.409A-1(b)(4)(ii) of the Regulations under
§ 409A of the Internal Revenue Code of 1986, as amended (the “Code”), should such
provision of the Code be deemed applicable to the Plan notwithstanding the provisions of
Section X of this Plan, in which event, or in any other event which may meet the
requirements of such provision of such Regulations, the Bank shall pay such incentive
awards as soon as the calculation and payment thereof shall be practicable, both
administratively and otherwise.





 


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Note: Redacted portions have been marked with [***]. The redacted portions are subject to a
request for confidential treatment that has been filed with the Securities and Exchange Commission.





	X.	 	
 BINDING EFFECT AND AMENDMENT AND TERMINATION OF PLAN   
 







No Participant shall have any legally binding right, whether by reason of the performance of services or otherwise, to receive any incentive awards or payments under this Plan and
nothing in this Plan is intended, nor shall it be deemed, to confer upon any Participant any
such legally binding right, the Bank reserving and retaining the right, by its unilateral
action at any time and for any reason, to reduce or eliminate any incentive awards or payments
and to amend, modify or terminate this Plan.  All actions by the Bank pursuant to this Section
X shall be made in writing and shall be effective when
approved by the Committee or, in the case of actions affecting the President, when approved by
the Board. 




	XI.	 	CLAWBACK PROVISION

	 
	 	 	Any undue incentives paid to a Participant with a rank of Vice President or higher based on the achievement of financial or operational goals within this
Plan that subsequently are deemed by the Bank to be inaccurate, misstated or misleading
shall be recoverable from such Participant by the Bank. Inaccurate, misstated and/or
misleading achievement of financial or operational goals shall include, but not be
limited to, overstatements of revenue, income, capital, return measures and/or
understatements of credit risk, market risk, operational risk or expenses. The value of
any benefits delivered or accrued related to the undue incentive (i.e., the amount of the
incentive over and above what should have been paid to the Participant barring
inaccurate, misstated and/or misleading achievement of financial or operational goals)
shall be reduced and/or recovered by the Bank to the fullest extent possible.
Participants shall be responsible for the repayment of any such excess incentive payments
as described in this paragraph upon demand by the Bank.

	 
	XII.	 	OTHER PROVISIONS

	 
	 	 	The provisions of the Plan shall be governed by the laws of the State of New York.







 


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