Document:

exv10w11

 

Exhibit 10.11

RESIGNATION AND RELEASE AGREEMENT

     This Resignation and Release Agreement (the “Agreement”) is entered into by and between the
Federal Home Loan Bank Des Moines (the “Bank”) and Ronald Greeson (“Mr. Greeson”) to set forth the
terms and conditions of Mr. Greeson’s employment separation from the Bank, and his resignation from
his employment and position as an officer of the Bank.

RECITALS

     A. Mr. Greeson has been employed by the Bank as its Senior Vice President and Chief Accounting
Officer.

     B. Mr. Greeson has agreed to resigned his position and employment with the Bank effective July
15, 2006, and he wishes to accept the severance payments and other compensation described herein,
and to release the Bank from any and all claims concerning his prior employment; and

     C. The Bank is willing to continue Mr. Greeson’s employment until July 15, 2006, and to pay
Mr. Greeson the severance payments and other compensation described herein, subject to the terms
and conditions contained in this Agreement.

AGREEMENT

     To secure Mr. Greeson’s employment through July 15, 2006, to provide Mr. Greeson with the
severance and retention payments described herein, and to fully and finally resolve any and all
issues Mr. Greeson may have regarding his employment with the Bank, including the separation of
that employment, Mr. Greeson and the Bank agree as follows:

     1. Resignation. Upon signing this agreement, Mr. Greeson shall submit a written letter to
the Bank’s Acting President and Chief Executive Officer (prospectively dated July 15, 2006)
resigning his employment with the Bank and his position as the Bank’s Senior Vice President and
Chief Accounting Officer. Said resignation shall be effective at the close of business on July 15,
2006.

     2. Retention and Severance Payments. In consideration of the releases contained herein, and
for other good and valuable consideration, it is agreed as follows:

         (a) Continue Employment and Retention Payment. Mr. Greeson agrees to continue working for the
Bank through July 15, 2006, and, subject to the conditions contained in this Subsection, the Bank
agrees to employ Mr. Greeson during that same time period (hereinafter referred to as the
“Continued Employment Period”). During the Continued Employment Period, Mr. Greeson shall work
full-time through June 15, 2006 and devote his full working time and attention to his assigned
duties and responsibilities. For the remainder of the Continued Employment Period, Mr. Greeson
shall work on a part time basis without any reduction in his compensation, but shall not engage in
any outside activities that conflict or are otherwise inconsistent with his continued employment
with the Bank. Subject to the other Sections of the Agreement, the Bank agrees to pay Mr. Greeson
his existing salary during the Continued Employment Period, and to provide him with the benefit
package he is currently

 

 

receiving, including any vacation accrual as specified in Section 5 of the Agreement. The
Bank’s obligation to continue Mr. Greeson’s employment during the Continued Employment Period
shall, however, be contingent upon Mr. Greeson meeting each of the following employment
obligations: (1) competently perform assigned duties, (2) make a constructive contribution to
the Bank, (3) participate in assigned departmental and other Bank meetings, and (4) display a
professional work attitude. If Mr. Greeson fails to meet any of the employment obligations
contained in this Subsection, the Bank shall provide Mr. Greeson with written notice of the
deficiency in his work performance and Mr. Greeson shall be obligated to promptly correct the
deficiency. If Mr. Greeson does not promptly correct the deficiency in his work performance as
required herein, and said deficiency is evidenced by a gross dereliction of duty, the Bank may, in
its sole discretion, terminate Mr. Greeson’s employment without providing him with any additional
notice or warning, provided the termination occurs within two weeks after notice is given. If Mr.
Greeson’s employment is terminated pursuant to this Subsection, Mr. Greeson shall be entitled to
(i) a single lump sum severance payment of Forty Eight Thousand Seven Hundred and Fifty Dollars
($48,750) payable upon termination of Mr. Greeson’s employment; (ii) continued coverage under the
Bank’s group medical and dental plans on the same terms and conditions as other employees of the
Bank for a period of three months from the date of termination of Mr. Greeson’s employment; and
(iii) a portion of the retention bonus described in the following sentence prorated from March 1,
2006 through the date of termination of Mr. Greeson’s employment, which also shall be payable upon
termination of Mr. Greeson’s employment. If Mr. Greeson’s employment continues through the Period
of Continued Employment, and his employment is not terminated for one of the reasons stated in
Subsection (a) above, the Bank shall pay Mr. Greeson a retention bonus of Eighty Six Thousand
Dollars ($86,000). Said retention bonus, if earned, shall be paid to Mr. Greeson on July 15, 2006.

         (b) Severance Pay. If Mr. Greeson’s employment is not terminated during the Continued
Employment Period pursuant to Subsection subparagraph (a) above, the Bank shall also pay Mr.
Greeson total gross severance pay equal to Ninety Seven Thousand Five Hundred Dollars ($97,500).
Such severance payments shall be made in the following manner: (a) a single lump sum payment of
Forty Seven Thousand Five Hundred Dollars ($47,500) made payable on the eighth day after the
Agreement is executed, or July 15, 2006, whichever date occurs later; and (b) five equal monthly
payments of Ten Thousand Dollars ($10,000), with the first payment being made on August 15, 2006
and the next four payments being made on the fifteenth day of each subsequent month thereafter (the
“Severance Period”). The Bank’s obligation to make any additional severance payments during the
Severance Period shall, however, cease if Mr. Greeson materially breaches any of the terms of the
Agreement, including, but not limited to, the obligations contained in Sections 7, 9, 10, 15, 16,
or 17 below. Mr. Greeson agrees and stipulates that the severance payments described herein are
being paid to him as a special allowance, and that he is not entitled to receive said payments
under any contract between the Bank and him, or pursuant to any Bank policy or practice.

     3. Medical Insurance Coverage and Continuation. If Mr. Greeson’s employment is not terminated
during the Continued Employment Period pursuant to Section 2 (a) above, the Bank will continue Mr.
Greeson’s coverage under the Bank’s group medical and dental plans on the same terms and conditions
as other employees of the Bank through January 31, 2007. The

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Bank’s obligation to continue Mr. Greeson’s coverage pursuant to this Section shall, however,
cease if Mr. Greeson obtains other employment after July 15, 2006 that provides his dependents or
him with medical or dental insurance comparable to the coverage provided under the Bank’s group
health and dental plans, and Mr. Greeson agrees to timely notify the Bank if he obtains comparable
insurance coverage. If Mr. Greeson has not obtained other comparable group medical or dental
insurance coverage, Mr. Greeson and his eligible dependants shall have the opportunity, after
January 31, 2007, to continue group medical and dental insurance for an additional eighteen months
through the Bank, at his or their own expense, to the extent and manner required by COBRA or any
applicable state law. The Bank will provide Mr. Greeson with a separate notice summarizing his
continuation coverage rights and obligations, as well as an election form.

     4. Outplacement Services. Mr. Greeson shall be provided with up to six months of career
transition services at the Bank’s expense. Career Resources Group of West Des Moines, Iowa shall
provide the career transitional services to Mr. Greeson, and the total cost of said services shall
not exceed Seven Thousand Dollars ($7,000). Mr. Greeson may elect when he shall begin receiving
the outplacement services described in this Section provided the services are commenced on or
before August 1, 2006.

     5. Other Benefits. Mr. Greeson shall receive appropriate payments pursuant to the Pentegra
Defined Contribution Plan for Financial Institutions, the Pentegra Defined Benefit Plan for
Financial Institutions, and the Benefit Equalization Plan due or required as of July 15, 2006. In
addition, Mr. Greeson shall be paid for the vacation hours he has accrued, but not used, through
July 15, 2006. Said vacation accrual shall equal the prorated portion of the total vacation days
Mr. Greeson was eligible to take during 2006, plus any vacation days he was permitted to carried
over from 2005, less any vacation days Mr. Greeson took, or will take, from January 1, 2006 through
July 15, 2006. As of March 31, 2006, Mr. Greeson’s accrued, but unused vacation, equaled 372
hours. The Bank approves Mr. Greeson’s vacation request from June 9 through June 16, 2006, and it
is agreed and understood that Mr. Greeson shall be away from the Bank on vacation during those
days.

     6. No Additional Compensation. Mr. Greeson and the Bank agree that, except as expressly set
forth in the Agreement, Mr. Greeson shall not be entitled to receive any additional compensation,
bonuses, incentive compensation, employee benefits, vacation pay, or other consideration from the
Bank in connection with, or in any way related to his resignation from, or prior employment by, the
Bank. More particularly, Mr. Greeson shall not be entitled to make contributions to the Pentegra
Defined Contribution Plan for Financial Institutions, the Pentegra Defined Benefit Plan for
Financial Institutions, and the Benefit Equalization Plan from the severance payments or retention
bonus described in Section 2 of the Agreement. For purposes of clarity, Mr. Greeson agrees to
forfeit any bonus payments that were, or may be, due him under the Bank’s Gainsharing Plan based on
his, or the Bank’s, performance during 2005 or 2006, or any payments under the Bank’s Long-Term
Incentive Plan.

     7. Return of Bank Property. Mr. Greeson represents and warrants that he will, upon the
termination of his employment with the Bank, immediately return to the Bank all Bank property
including, without limitation, any, keys, access cards, parking pass, credit cards, books, manuals,
files, computer software, disks and the like, as well as all paper and electronic copies of

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materials and documents in his possession or under his direct or indirect control relating to
the Bank, its business, employees, and customers, and that he has not retained copies, in whatever
form, of any such materials or documents. Notwithstanding anything to the contrary set forth
herein, the Bank hereby acknowledges and agrees that Mr. Greeson may retain, as his own property,
his copies of his individual personnel documents, such as his payroll and tax records, and similar
personal records.

     8. Complete Release of Claims by Mr. Greeson. In consideration of the severance payments and
retention bonus described in Section 2 of the Agreement, and other good and valuable consideration,
which are given to Mr. Greeson specifically in exchange for the release as a result of negotiations
between the Bank and him, Mr. Greeson, on behalf of himself, his spouse, and his and their heirs,
successors and assigns, hereby releases and discharges the Federal Home Loan Bank of Des Moines,
its employee benefit plans, its current or former directors, officers, employees, agents, insurers,
attorneys, consultants, and auditors, and any and each of their successors and assigns and
predecessors (“Released Parties”), from any and all claims, charges, causes of action and damages
(including attorneys’ fees and costs actually incurred), known and unknown (“Claims”), including
those Claims related in any way to Mr. Greeson’s employment with the Bank, or the termination of
his employment relationship or position as an officer of the Bank, arising on or prior to the
effective date of the Agreement. It is understood and agreed that the waivers in the Agreement are
not intended to waive Mr. Greeson’s rights: (a) to indemnification from the Bank or its insurers
pursuant to any applicable provision of the Bank’s bylaws or policies, or pursuant to applicable
law; (b) under ERISA to receive his accrued vested benefits and the benefits specifically reserved
for him in the Agreement; or (c) respecting the Bank’s obligations under the Agreement.

     For the purposes of implementing a full and complete release and discharge of the Bank and the
other Released Parties, and each of them, Mr. Greeson expressly acknowledges that the Agreement is
intended to include in its affect, without limitation, all Claims which he does not know or suspect
to exist in his favor at the time he signs the Agreement, and that the Agreement is intended to
fully and finally resolve any such Claim or Claims.

     The release contained in this Section 8 specifically includes, but is not limited to, rights
and claims under the local, state or federal laws prohibiting discrimination in employment,
including the Civil Rights Acts, the Americans with Disabilities Act, the Age Discrimination in
Employment Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act
(except as otherwise stated herein), the employee protection provisions of the Federal Deposit
Insurance Act (12 U.S.C. § 1831j), Title VII of the Civil Rights Act of 1964, the Sarbanes-Oxley
Act of 2002, Iowa’s Wage Payment Collection Act, as well as any other state or federal laws or
common law theories relating to discrimination in employment, the termination of employment, or
personal injury, including without limitation all claims for wrongful discharge, breach of
contract, fraud, defamation, loss of consortium, infliction of emotional distress, additional
compensation, back pay or benefits (other than as provided for in the Agreement), or any claim that
the termination of Mr. Greeson’s employment violated a public policy or policies of Iowa or the
United States. The release contained in this Section 8 does not include any claims Mr. Greeson has,
or may have, pertaining to Mr. Greeson’s right or entitlement to vested benefits under the Pentegra
Defined Contribution Plan for Financial Institutions, the Pentegra Defined Benefit Plan for
Financial Institutions, and the Benefit

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Equalization Plan, or any workers compensation benefits to which he may be entitled under Iowa
Code Chapter 85.

     9. Covenant Not to Sue. Mr. Greeson represents that he has not filed any Claim that was
released in the Agreement against the Bank or its Released Parties with any court or government
agency, and that he will not, to the extent allowed by applicable law, do so at any time in the
future; provided, however, that the covenants contained in this Section will not prevent Mr.
Greeson from filing a claim to enforce the terms of the Agreement. If any government agency brings
any claim or conducts any investigation against the Bank, nothing in the Agreement forbids Mr.
Greeson from cooperating in such proceedings, but by the Agreement, Mr. Greeson waives and agrees
to relinquish any damages or other individual relief that may be awarded as a result of any such
proceedings.

     10. Future Cooperation. Mr. Greeson further agrees that during the Severance Period he will
make himself reasonably accessible to the Bank to answer questions and otherwise assist the Bank
regarding the proper transition of the uncompleted projects and assignments contained on the list
he compiles, and regarding any other issues and matters for which he was responsible as the Bank’s
Senior Vice President and Chief Accounting Officer; provided, however, that the Bank shall not
require Mr. Greeson to spend more than a total of 20 hours performing such work. Mr. Greeson
further agrees to provide said assistance at no additional cost or expense to the Bank. During the
Severance Period and thereafter, Mr. Greeson agrees to make himself reasonably available to the
Bank in connection with any claims, disputes, investigations, regulatory examinations, or actions,
lawsuits, or administrative proceedings relating to matters in which he was substantially involved
during the period he was employed by the Bank, and to provide information, give depositions or
testimony, and otherwise cooperate in the investigation, defense, or prosecution of such actions.
Upon submission of appropriate documentation, the Bank will pay for any reasonable expenses Mr.
Greeson incurs in connection with any such efforts, including lost salary, wages, fees, or vacation
pay.

     11. Voluntary Agreement; Full Understanding; Advice of Counsel. Mr. Greeson understands and
acknowledges the significance of the Agreement and acknowledges that the Agreement is voluntary and
has not been given as a result of any coercion. Mr. Greeson also acknowledges that he has been
given full opportunity to review and negotiate the Agreement, that he has been specifically advised
to consult with legal counsel prior to signing it, that he has, in fact, carefully reviewed it with
his attorney before signing it, and that he executes the Agreement only after full reflection and
analysis.

     12. No Representations. Mr. Greeson acknowledges that, except as expressly set forth herein,
no representations of any kind or character have been made to him by the Bank or by any of the
Bank’ agents, representatives or attorneys to induce the execution of the Agreement.

     13. Review and Revocation Periods. Mr. Greeson has 21 days to consider the Agreement before
signing it. Mr. Greeson may use as much or as little of the 21-day period as he wishes before
signing. To accept the Agreement, Mr. Greeson must return the signed Agreement to Mr. L. Allyn
Dixon Jr., General Counsel, on or before that day and time. Mr. Greeson understands and
acknowledges that he has seven (7) days after signing the Agreement to

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revoke it. To revoke the Agreement, Mr. Greeson must deliver a written notice of revocation
to Mr. Dixon at the Bank no later than 5:00 pm, Central Standard Time, on the seventh day after the
Agreement is executed. If Mr. Greeson revokes the Agreement, he will not receive any of the
benefits described in the Agreement.

     14. Nonadmission. The Agreement shall not be construed as an admission of wrongdoing or
evidence of any noncompliance with, or violation of, any statute or law by the Bank or by Mr.
Greeson.

     15. Confidential Information.

     (a) Acknowledgement of Receipt of Confidential Information. Mr. Greeson acknowledges that he
has occupied a position of the highest trust and confidence with the Bank, and during Mr. Greeson’s
employment with the Bank he has become familiar with the Bank’s trade secrets, business plans and
strategies, and with other proprietary and confidential information concerning the Bank, its
business, employees and members. Mr. Greeson also understands that he may have access to such
information if he is called upon to provide services under Section 10 of the Agreement. Mr.
Greeson agrees that (a) the agreements and covenants contained in this Section are essential to
protect the Bank and the goodwill of its business; (b) the Bank would be irreparably damaged if Mr.
Greeson were to disclose confidential information in violation of these provisions of the
Agreement; and (c) the severance payments provided him under Section 2 the Agreement are given to
him in part in exchange for his agreement to the restrictions set forth below. As used in the
Agreement, “Confidential Information” shall mean any information relating to the business or
affairs of the Bank or its customers, including but not limited to information relating to
financial statements, identities of members and potential members, employees, suppliers, software
tools, business methods, equipment, programs, methodologies, strategies and information, analyses,
reports, models, calculations, profit margins, exam findings, Board of Directors matters, or other
proprietary information used by the Bank in connection with its business, provided, however, that
Confidential Information shall not include any information which is in the public domain or becomes
known in the industry through no wrongful act on the part of Mr. Greeson. Mr. Greeson acknowledges
that the Confidential Information is vital, sensitive, confidential and proprietary to the Bank.

     (b) Agreement to Maintain Confidentiality of Bank Information. Mr. Greeson shall keep secret
and retain in strictest confidence, and shall not, without the prior written consent of the Bank,
furnish, make available or disclose to any third party (except in furtherance of the Bank’s
business activities and for the sole benefit of the Bank) or use for the benefit of himself or any
third party, any Confidential Information.

     (c) Non-Solicitation of Employees. Mr. Greeson understands and agrees that the relationship
between the Bank and its employees constitutes a valuable asset of the Bank that may not be
converted to Mr. Greeson’s use without causing irreparable damage to the Bank. Accordingly, and
in further consideration of the severance payments described in Section 2 of this Agreement, Mr.
Greeson agrees that for one year after his employment with the Bank ends, he will not directly, or
indirectly, on his own behalf, or the behalf of any person, corporation, or other entity, solicit
or entice any Bank employee to terminate his or her employment with the Bank to accept employment
with any employer that also employs Mr. Greeson, or has offered

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Mr. Greeson employment. The non-solicitation prohibitions contained in this subsection (c)
shall not, however, apply to any communications initiated by Bank employees, and not by Mr.
Greeson.

     (d) Remedies. Mr. Greeson acknowledges and agrees that the covenants set forth in this
Section 15 are reasonable and necessary for the protection of the Bank’s business interests, that
irreparable injury will result to the Bank if Mr. Greeson breaches any of his confidentiality
obligations under the Agreement, and that in the event of Mr. Greeson’s actual or threatened breach
of such confidentiality obligations, the Bank will have no adequate remedy at law. Mr. Greeson
accordingly agrees that in the event of any actual or threatened breach by him of any of his
confidentiality obligations under this Section, the Bank shall be entitled to immediate temporary
injunctive and other equitable relief, without bond and without the necessity of showing actual
monetary damages, subject to hearing as soon thereafter as possible. Nothing contained herein
shall be construed as prohibiting the Bank from pursuing any other remedies available to it for
such breach or threatened breach, including the recovery of any damages which it is able to prove.

     16. Confidentiality of Agreement. Mr. Greeson agrees that he will keep the facts, terms,
conditions, and contents of this Agreement completely confidential and he will not publicize or
disclose the facts, terms, conditions, or contents of this Agreement in any manner, in writing or
orally, to any persons, directly or indirectly, or by or through an agent, representative,
attorney, or any other person. Mr. Greeson may, however, disclose the terms of this Agreement to
his spouse, his attorney, or to his tax advisors and accountants as necessary; however, Mr. Greeson
shall specifically advise that or those individuals of the confidential nature of the information
being disclosed and, any subsequent disclosure by any of them shall be deemed a disclosure by Mr.
Greeson. In addition, Mr. Greeson may disclose information described in this paragraph pursuant to
a duly authorized subpoena provided Mr. Greeson provides the Bank with prior notice of the subpoena
and with a meaningful opportunity to take, if the Bank chooses to do so, whatever actions necessary
to quash said subpoena.

     17. Non-disparagement, Letter of Reference. Except for any Required Disclosures by the Bank
(defined below), the parties shall not, directly or indirectly, publish or make any statements to
third parties that are critical of, or in anyway disparage, the other party, which shall include
the Bank’s current or former directors, officers, employees agents, attorneys, consultants, or
auditors. For purposes of this Section, Required Disclosures shall mean any disclosures made by
the Bank (1) to its senior management, Board of Directors, attorneys, accountants, or to any other
employees, agents, and advisors who have a need to know such information; (2) to any applicable
stock exchange, the Securities and Exchange Commission (the “SEC”), the Federal Housing Finance
Board, or any other regulatory body or governmental authority; (3) to the extent appropriate under
applicable law, rule or regulation, including filing a copy of this Agreement in any public SEC
filing; or (4) pursuant to an order issued by a court or other tribunal or agency or authority of
competent jurisdiction. Provided Mr. Greeson’s employment is not terminated during the Continued
Employment Period pursuant to Section 1(a) of the Agreement, the Bank shall provide Mr. Greeson
with a letter of reference in the form attached as Exhibit A to this Agreement.

     18. Applicable Law; Venue; Interprétation. The Agreement shall be interpreted in accordance
with the laws of the State of Iowa, without regard to its conflict of laws. Any lawsuit

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between the parties arising out of the Agreement shall be brought in the Iowa District Court
in and for Polk County, or in the United States District Court, Southern District of Iowa, Central
Division, if appropriate federal jurisdiction exists. The language of the Agreement shall be
construed as a whole according to its fair meaning.

     19. Tax Withholdings and Deductions. All payments described herein shall be subject to
applicable federal, state, and local tax withholdings and deductions.

     20. Complete Agreement. The Agreement represents and contains the entire understanding
between the parties in connection with the subject matter of the Agreement. The Agreement shall
not be modified or varied except by a written instrument signed by Mr. Greeson and the Acting
President and Chief Executive Officer of the Bank. It is expressly acknowledged and recognized by
all parties that all prior written or oral agreements, understandings or representations between
the parties are merged into the Agreement.

     21. Invalidity. It is understood and agreed that if any provisions of the Agreement are held
to be invalid or unenforceable, the remaining provisions of the Agreement shall nevertheless
continue to be fully valid and enforceable.

     22. Execution. The Agreement may be executed with duplicate original counterparts with faxed
signatures, each of which shall constitute an original and which together shall constitute one and
the same document.

PLEASE READ CAREFULLY. THE AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

	 	 	 	 	 	 	 	 	 	 	 
	FEDERAL HOME LOAN BANK	 	 	 	Ronald Greeson	 	 
	OF DES MOINES	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	     /s/ Neil N. Fruechte
	 	 	 	By
	 	     /s/ Ronald L. Greeson	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	     Neil Fruechte
	 	 	 	 	 	     Ronald Greeson	 	 
	 

	 	     Acting President and CEO	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date

	 	     5-31-06
	 	 	 	Date
	 	     June 6, 2006	 	 

8exv10w12

 

Exhibit 10.12

Federal Home Loan Banks P&I Funding and Contingency Plan Agreement

This Federal Home Loan Banks P&I Funding and Contingency Plan Agreement (“Agreement”) is
entered into as of this 20th day of July, 2006 (the “Effective Date”) by and
among the Office of Finance (the “OF”) and each of the Federal Home Loan Banks
(“Banks”). The OF and the Banks are sometimes referred to herein individually as a “party”
and collectively as the “parties.” All references in this Agreement to any of the parties to this
Agreement include such party or any successor entity.

WHEREAS, the Banks are jointly and severally liable for the payment of consolidated obligations
issued pursuant to Section 11 of the Federal Home Loan Bank Act, as amended (12 U.S.C. §1431)
(“COs”);

WHEREAS, the OF has the authority under 12 CFR § 985.6(a) to issue and service (including making
timely payments on principal and interest due, subject to 12 CFR §§ 966.8 and 966.9) consolidated
obligations issued on behalf of the Banks pursuant to, and in accordance with, the policies and
procedures established by the OF Board of Directors; and

WHEREAS, the Federal Reserve Board has announced a change in its Policy Statement on Payments
System Risk (as the same may be amended, modified or supplemented, the “PSR Policy”) that
will cause the PSR Policy to be applied to the FHLBanks beginning July 20, 2006; and

WHEREAS, the OF and a task force of the Debt Management Sub-Committee of the Financial Officers’
Conference of the Banks have developed P&I Funding and Contingency Plan Procedures (as the same may
be amended, modified, or supplemented, the “Procedures”) to deal with the possibility that
a Bank may not make a payment of debt service on COs to the OF on a timely basis following the
application of the PSR Policy to the Banks; and

WHEREAS, the OF Board of Directors has approved the Procedures and determined that the OF should
obtain the written agreement of the Banks on several matters relating to the Procedures, which
matters are included in this Agreement; and

WHEREAS, the Federal Housing Finance Board (the “Finance Board”) has supported the adoption
of the Procedures by issuing the waiver attached hereto as Exhibit A (as the same may be
amended, modified or supplemented, the “Waiver”) of its prohibition of the direct placement
of COs with FHLBanks contained in 12 CFR § 966.8(c), to accommodate the implementation of the
Procedures, based in part on its view that timely payment of all principal and interest to
investors in COs is essential to maintain the confidence of investors and potential investors in
COs; and

WHEREAS, the Waiver provides that the interest rate paid by the Bank that has not remitted all the
funds to the OF by the agreed upon deadline on the CO issued pursuant to the Waiver shall be at
least 500 basis points above the federal funds rate.

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NOW THEREFORE, in consideration of the mutual promises set forth herein and other good and valuable
consideration, the receipt and sufficiency of which the parties acknowledge, the parties hereby
agree as follows:

     1. Authorization of Issuance of COs

Each Bank agrees that if it is a “Delinquent Bank” (as defined below), the OF may cause one or more
overnight “Plan COs” (as defined below) to be issued on behalf of the Delinquent Bank for the
benefit of one or more “Contingency Banks” (as defined below), each such Plan CO to be issued to a
Contingency Bank in the principal amount equal to the amount of funds provided by that Contingency
Bank on behalf of that Delinquent Bank, to mature on the following Business Day (as defined below),
and to bear interest on such principal amount from the date of issuance to but not including that
maturity date, due and payable on that maturity date, at the rate per annum (the “Base
Cost”) equal to (a) the overnight fed funds quote obtained by the OF from a recognized funds
broker to be paid for any available funds delivered to the OF by a Contingency Bank or withheld
from its “positive net position” as described in Section 2 of this Agreement or (b) the actual cost
if funds are purchased by that Contingency Bank in the open market and delivered to the OF. All
such interest shall be calculated on an actual/360 basis based on the number of days the Plan CO is
outstanding, including non-Business Days. The Delinquent Bank shall also be obligated to pay
“Additional Interest” as set forth in Section 3 of this Agreement, all or a portion of which will
satisfy the obligation of the Delinquent Bank under the Waiver to pay an interest rate on the Plan
CO that is at least 500 basis points above the federal funds rate.

The OF shall issue a Plan CO in physical form under those circumstances and apply the proceeds
therefrom on behalf of that Delinquent Bank as provided for in the Procedures. Each Bank hereby
authorizes the OF, and the OF hereby agrees, to hold any Plan COs issued as agent for each such
Bank when it acts as a Contingency Bank.

For purposes of this Agreement,

a “Delinquent Bank” means a Bank that misses any funding time specified in the
Procedures, including a funding time for the repayment of Plan COs; and

a “Plan CO” means a CO issued on behalf of a Delinquent Bank to one or more
Contingency Banks. For the avoidance of doubt, although a Delinquent Bank is primarily
responsible for repayment of a Plan CO issued on its behalf, each Plan CO is the joint and
several obligation of all 12 Banks; and

a “Contingency Bank” means any Bank that provides funds for a Delinquent Bank under
the Procedures; and

“Business Day” means any day other than (i) a Saturday, (ii) a Sunday or (iii) any
day on which banking institutions in New York City are authorized or required by law or
executive order to close.

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     2. Use of Proceeds to Purchase COs

Each Bank shall be obligated to provide and authorizes the OF to apply any “positive net position”
(i.e., the amount by which end-of-day proceeds received by a Bank from sale of COs on one day
exceed payments by that Bank on COs on the same day) of that Bank to the purchase of a Plan CO
issued on behalf of a Delinquent Bank, thereby causing such Bank to become a Contingency Bank,
based on the priority established in the matrix attached hereto as Exhibit B
(“Contingency Funding Matrix”) and otherwise in accordance with the Procedures.

     3. Additional Interest

Each Bank agrees that if it is a Delinquent Bank, then it will pay an amount (“Additional
Interest”) in accordance with the following schedule in addition to interest equal to the Base
Cost:

	 	 	 
	1st offense

	 	– 500 basis points per annum of the delinquent amount
	2nd offense

	 	– 750 basis points per annum of the delinquent amount
	3rd and
	 	 
	subsequent offense

	 	– 1,000 basis points per annum of the delinquent amount

The Additional Interest will be calculated on an actual/360 basis based on the actual number of
days the related Plan CO is outstanding, including non-Business Days, from the date of issuance to
but excluding the stated maturity date. For purposes of this calculation, Additional Interest
attributable to a delinquent amount that is not related to the principal amount of a Plan CO (i.e.,
because the Delinquent Bank pays all or a portion of its delinquent amount after a deadline but
before a Contingency Bank is entitled to have a Plan CO issued for its benefit on behalf of the
Delinquent Bank with respect to such amount) will be assessed on that delinquent amount assuming
that a Plan CO was issued with a principal amount equal to that delinquent amount and that the Plan
CO would mature on the next Business Day.

For purposes of calculating Additional Interest, each different time deadline established under the
Procedures will accrue its own separate count of the number of offenses, so that a Delinquent Bank
will pay a separate amount for each such time deadline missed, and the step-up in Additional
Interest for the occurrence of a particular offense will only be measured with regard to offenses
that have occurred within the 36-month period ending on the date of that particular offense (the
“Delinquency Measurement Period”). For example, if a Delinquent Bank twice misses a
morning deadline and once misses an afternoon deadline, all as established under the Procedures,
within a Delinquency Measurement Period, then the Delinquent Bank shall have been subject to
Additional Interest of 500 basis points with respect to the first morning deadline missed,
Additional Interest of 750 basis points with respect to the second morning deadline missed, and
Additional Interest of 500 basis points with respect to the afternoon deadline missed.

Each Bank agrees that (i) for each Plan CO issued, the first 100 basis points of the Additional
Interest shall be assessed against the Delinquent Bank for the benefit of the Contingency Bank that
purchased the Plan CO as provided in Section 1 of this

3

 

Agreement, and the balance of the Additional Interest assessed against the Delinquent Bank (i.e.,
400 basis points, 650 basis points, or 900 basis points) will be divided equally among the Banks
(including the Contingency Banks) that are not Delinquent Banks with respect to the same funding
time specified in the Procedures and (ii) for Additional Interest attributable to a delinquent
amount that is not related to a Plan CO, the Additional Interest will be divided equally among the
Banks that are not Delinquent Banks with respect to the same funding time specified in the
Procedures. Each of the Banks and the OF agree that any Additional Interest will be allocated and
paid through the monthly assessment from the OF, and that the Additional Interest is not the joint
and several obligation of the Banks.

Notwithstanding anything in this Section 3 or Section 7(a) or (b) of this Agreement to the
contrary, and subject to Sections 5(a) and (d) below, each Bank agrees that assessment of the
Additional Interest shall be subject to the appellate process contained in the Procedures and that
the OF shall have the authority to waive all or any portion of the Additional Interest or excuse
the occurrence of any offense as provided for in the Procedures. To the extent permitted under the
Waiver, the assessment of Additional Interest shall be suspended pending completion of the
appellate process.

     4. Reallocation of COs

Each Bank agrees that if a Bank is a Delinquent Bank, with respect to each Plan CO issued to a
Contingency Bank on behalf of a Delinquent Bank, each Bank that is a “Reallocation Bank” (as
defined below) shall immediately have the obligation to purchase that Reallocation Bank’s “Pro Rata
Share” (as defined below) of such Plan CO from that Contingency Bank, with such obligation to
purchase being effective immediately upon the issuance of the Plan CO , subject to the proviso in
the following paragraph.

Each Bank agrees that if it is a Reallocation Bank, it will wire to the Contingency Bank that
holds a Plan CO an amount equal to (i) its Pro Rata Share of the principal amount of that Plan CO,
plus (ii) accrued interest thereon from the date of issue of the Plan CO until its stated maturity
date equal to the Base Cost, not later than 1:00 p.m., Eastern Time, on the second Business Day
following the date of issuance of that Plan CO; provided, however, that such Reallocation
Bank shall not be required to wire funds to the extent that it determines in good faith such
purchase will violate any rule, regulation or binding policy of the Finance Board, and under those
circumstances such Reallocation Bank shall be excused from its obligation to make such payment to
the Contingency Bank, but not from its joint and several obligation, with respect to such Plan CO.
The wire shall be sent to the account identified by the Contingency Bank for that purpose, and time
is of the essence with respect to the wire. In the event there are multiple Plan COs issued on a
particular date, Reallocation Banks shall not favor any Contingency Bank over any other Contingency
Bank, and shall purchase its Pro Rata Shares of such Plan COs on a proportional basis. To the
extent that a Plan CO is repaid prior to the settlement of a Reallocation Bank’s obligations to
purchase its Pro Rata Share, that Pro Rata Share shall be reduced proportionally by the amount so
repaid.

4

 

Each Contingency Bank shall promptly notify the OF of its receipt of payment of the Pro Rata Share
amounts from the Reallocation Banks. Promptly following receipt of that notice and confirmation of
the payment from the Reallocation Banks, the OF shall cancel such original outstanding physical
Plan CO and shall reissue replacement physical Plan COs with the principal amounts representing the
respective Pro Rata Shares of the Reallocation Banks that have paid for their purchase of the Plan
CO, along with a Plan CO representing the balance of the principal amount of the original Plan CO
that is retained by the Contingency Bank. Each such reissued Plan CO remains a “Plan CO” for
purposes of this Agreement and the Procedures, but a Reallocation Bank will not be treated as the
Contingency Bank with respect thereto. Each Bank hereby authorizes the OF, and the OF hereby
agrees, to hold any such reissued Plan COs payable to such Bank as agent for such Bank’s benefit,
and to pay debt service on such CO to the record owner of such Plan CO as reflected on the OF’s
books following reissuance.

For purposes of this Section,

          a “Reallocation Bank” with respect to a Plan CO means each Bank other than (i) any
Delinquent Bank on behalf of which that Plan CO or any other Plan CO was originally issued on the
same date, and (ii) the Contingency Bank that owns that Plan CO;

          “Pro Rata Share” of a Reallocation Bank means a fraction, the numerator of which is
the total amount of outstanding COs for which the Reallocation Bank is primary obligor as of the
Most Recent Measurement Date, and the denominator of which is the total amount of outstanding COs
for which all Reallocation Banks and the Contingency Bank are primary obligor as of the Most Recent
Measurement Date; and

          “Most Recent Measurement Date” means the most recent month-end data calculated by the
OF and available on the OF’s Debt Servicing System, which amount is not adjusted for inter-bank
ownership of COs.

The Banks agree that the provisions of this Section 4 shall not affect the allocation of Additional
Interest pursuant to the fourth paragraph of Section 3 of this Agreement, including without
limitation the allocation of the first 100 basis points of Additional Interest pursuant to such
paragraph to a Contingency Bank that acquired the Plan CO at original issuance.

One or more Contingency Banks and Reallocation Banks may agree among themselves to net their
payments to each other that are due as a result of multiple Plan COs having been issued and subject
to reallocation on the same date.

Each Bank agrees that the formula for determining the Pro Rata Shares has been agreed to by the
Banks solely for the purpose of this Agreement and is not intended to represent an agreed upon
allocation of risk or responsibility for any other purpose.

The provisions of this Section 4 shall survive any termination of this Agreement with respect to
any Plan CO issued prior to such termination.

5

 

     5. Acknowledgements

Each Bank acknowledges and agrees that:

	 	(a)	 	the Base Cost plus the Additional Interest assessed against a Delinquent Bank
may not be lower than the amount required to be paid by the Delinquent Bank under the
Waiver;
	 
	 	(b)	 	the OF shall be required to provide any notice of issuance of a Plan CO
hereunder to the Office of Supervision of the Finance Board, which notice is presently
required by the Waiver to be provided no later than 5:00 P.M. eastern time on the date
of the issuance of the Plan CO;
	 
	 	(c)	 	its agreement in Section 1 of this Agreement with respect to any Plan CO
issued on its behalf as a Delinquent Bank satisfies the regulatory requirement
contained in 12 CFR § 966.8(b) that provides that COs may be offered for sale only in
the event Banks are committed to take the proceeds;
	 
	 	(d)	 	the appellate process referred to in the last paragraph of Section 3 of this
Agreement will be subject to the terms of the Waiver;
	 
	 	(e)	 	no Bank will be entitled to a Plan CO in the amount of any positive net
position except to the extent its end-of-day positive net position is used to purchase
a Plan CO; and
	 
	 	(f)	 	the Additional Interest will be calculated based on the principal amount of
a Plan CO, as well as any other delinquent amount paid late to the OF by the
Delinquent Bank.

     6. Representations and Warranties of the Parties

As of the date of its execution and delivery of this Agreement, each party represents and warrants
to the other parties that:

          (a) This Agreement is within such party’s powers and has been duly authorized by all necessary
corporate action.

          (b) This Agreement has been duly executed and delivered by such party and constitutes a legal,
valid and binding obligation of such party enforceable in accordance with its terms.

     7. Termination and Amendments

          (a) This Agreement will be deemed to be effective as of the Effective Date and will continue
in full force until such time as (i) at least two-thirds (2/3) of the Banks agree to its
termination, (ii) the Finance Board rescinds the Waiver or (iii) the Finance Board takes any
action, including without limitation modification of the Waiver, that

6

 

makes compliance by the OF or the Banks with this Agreement not commercially reasonable.

          (b) This Agreement may be amended only in a signed writing executed and delivered by all of
the Banks and the OF. Any such amendment shall be effective as of the effective date set forth in
the amendment.

          (c) This Agreement shall also be subject to termination at 11:59 p.m. on December 31, 2008,
and at 11:59 p.m. on each third December 31 thereafter (e.g. December 31, 2011, December 31, 2014,
etc.) (“Expiration Time”) if at least one-third (1/3) of the Banks provide notice of their
respective election to terminate to each other Bank and the OF at least one year prior to the
Expiration Time. Such notice shall identify with reasonable specificity the reason or reasons such
Bank wishes to terminate the Agreement at the next Expiration Time. The Banks and the OF agree to
negotiate in good faith toward the resolution of the issues raised in the notices of termination
with a view of reaching agreement on a new agreement at or prior to the Expiration Time.

     8. Successors and Assigns

This Agreement shall be binding upon and inure to the benefit of the successors and permitted and
authorized assigns of each Bank and the OF.

     9. Governing Law; Severability

This Agreement shall be governed by the statutory and common law of the United States and, to the
extent federal law incorporates or defers to state law, the laws (exclusive of the choice of law
provisions) of the State of New York. Any term or provision of this Agreement that is determined
to be invalid or unenforceable shall be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining terms and provisions of
this Agreement.

     10. Notice

Except for any notices of payment delivered pursuant to Section 4 of this Agreement, which shall be
delivered promptly either telephonically or electronically, any notice required or permitted to be
given or made under this Agreement, including a notice to effect a change in a party’s address for
notice, must be in writing and addressed to the other parties at the addresses of such parties set
forth beneath their signatures below, and will be deemed to be properly given or made on the
earliest of (i) actual delivery, (ii) two (2) Business Days after being sent, with delivery charges
paid by the sending party, by a nationally recognized commercial courier service for delivery on
the next Business Day, and (iii) three (3) Business Days after being sent through the United States
Postal Service, certified mail, return receipt requested, postage prepaid.

     11. Counterparts

7

 

This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an
original and all of which together shall constitute one and the same agreement.

     12. Entire Agreement; Conflicts

This Agreement constitutes the entire agreement of the parties and supersedes all prior
understandings or agreements, oral or written, among the parties on the subjects addressed in this
Agreement. Nothing in this Agreement, including without limitation the right of Banks to terminate
it or the right of Banks to withhold approval of an amendment, shall be construed to (i) conflict
with or limit the authority of the OF to carry out its duties pursuant to law, including without
limitation Federal Housing Finance Board regulations; or (ii) alter the Banks’ joint and several
liability on COs, including the Plan COs issued hereunder. This Agreement does not constitute “an
agreement to obtain financial assistance to meet a Bank’s current obligations... due during this
quarter”, a “consolidated obligation payment plan,” an “inter-Bank assistance agreement” or “a
payment on any [CO] on behalf of another Bank” as these terms are used in 12 CFR § 966.9. If any
applicable provision contained in the Procedures irreconcilably conflicts with any express
provision of this Agreement, then such express provision of this Agreement shall control.

     13. No Third Party Rights Created

Nothing in this Agreement shall create or be deemed to create any rights in any third party.

     14. Suspension of Obligations

If the Finance Board issues any order or enters into or amends any written agreement, including
without limitation a written agreement within the meaning of 12 USC § 1422b(a)(5), that prohibits
or prevents a party to this Agreement from either being a party to this Agreement, or from
performing its obligations under this Agreement, after the Effective Date, then that party’s duty
to perform its obligations under this Agreement shall be suspended while such order by or agreement
with the Finance Board is in effect.

[Signature Page to Follow]

8

 

IN WITNESS WHEREOF, this Agreement has been executed, on the date(s) set forth below, as of the day
and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	Federal Home Loan Bank of Atlanta	 	 	 	Federal Home Loan Bank of Boston	 	 
	By:

	 	/s/ W. Wesley McMullan
	 	 	 	President:
	 	/s/ Michael A. Jessee
	 	 
	 

	 	 
	 	 	 	 
	 	 
	 	 	Name: W. Wesley McMullan	 	 	 	Date: 5-23-06	 	 
	 	 	Title: Executive Vice President	 	 	 	Address for notice:	 	 
	By:	 	/s/ D. Haddon Foster, II	 	 	 	          111 Huntington Avenue	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	Name: D. Haddon Foster, II	 	 	 	          Boston, MA 02199	 	 
	 

	 	Title: First Vice President	 	 	 	 	 	 	 	 
	Date: May 23, 2006	 	 	 	 	 	 	 	 
	Address for notice:	 	 	 	 	 	 	 	 
	1475 Peachtree Street, NE	 	 	 	 	 	 	 	 
	Atlanta, GA 30309	 	 	 	 	 	 	 	 
	Attention: Director, Financial Management	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	Federal Home Loan Bank of Chicago	 	 	 	Federal Home Loan Bank of Cincinnati	 	 
	President:

	 	/s/ Mike Thomas
	 	 	 	President: /s/ David H. Hehman
	 	 
	 

	 	 
	 	 	 	 
	 	 
	Date: 6/16/06	 	 	 	Date: June 16, 2006	 	 
	Address for notice:	 	 	 	Address for notice:	 	 
	Federal Home Loan Bank of Chicago	 	 	 	Federal Home Loan Bank of Cincinnati	 	 
	111 East Wacker Drive	 	 	 	221 East Fourth Street, Suite 1000	 	 
	Chicago, Illinois 60601	 	 	 	Cincinnati, OH 45202	 	 
	Attention: General Counsel	 	 	 	SVP/Treasurer:	 	/s/ Carole L. Cossé	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Federal Home Loan Bank of Dallas	 	 	 	Federal Home Loan Bank of Des Moines	 	 
	President:

	 	/s/ Terry Smith
	 	 	 	President: /s/ Neil N. Fruechte	 	 
	 

	 	 
	 	 	 	 
	 	 
	Date: 5/10/06	 	 	 	Date: May 11, 2006	 	 
	Address for notice:	 	 	 	Address for notice:	 	 
	          8500 Freeport Parkway South	 	 	 	          907 Walnut	 	 
	          Suite 100	 	 	 	          Des Moines, IA 50309	 	 
	          Irving, Texas 75063	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Federal Home Loan Bank of Indianapolis	 	 	 	Federal Home Loan Bank of New York	 	 
	President:

	 	/s/ Martin L. Heger
	 	 	 	President: /s/ Alfred A. DelliBovi	 	 
	 

	 	 
	 	 	 	 
	 	 
	Date: June 1, 2006	 	 	 	Date: May 22, 2006	 	 
	Address for notice:	 	 	 	Address for notice:	 	 
	          8250 Woodfield Crossing Blvd.	 	 	 	101 Park Avenue, Floor 5	 	 
	          Indianapolis, IN 46240	 	 	 	New York, NY	 	 
	          Attention: Milton Miller, CFO	 	 	 	10178-0599	 	 

9

 

	 	 	 	 	 	 	 	 	 	 	 
	Federal Home Loan Bank of Pittsburgh	 	 	 	Federal Home Loan Bank of San Francisco	 	 
	President:

	 	/s/ John R. Price
	 	 	 	President:
	 	/s/ Dean Schultz	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Date: May 24, 2006	 	 	 	Date: April 27, 2006	 	 
	Address for notice:	 	 	 	Address for notice:	 	 
	          601 Grant Street	 	 	 	600 California Street, 4th Floor	 	 
	          Attn: Capital Markets	 	 	 	San Francisco, California 94108	 	 
	          Pittsburgh, PA 15219	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Federal Home Loan Bank of Seattle	 	 	 	Federal Home Loan Bank of Topeka	 	 
	President:

	 	/s/ James E. Gilleran
	 	 	 	President:
	 	/s/ Andrew J. Jetter	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Date: May 17, 2006	 	 	 	Date: May 12, 2006	 	 
	Address for notice:	 	 	 	Address for notice:	 	 
	          1501 Fourth Ave., Ste. 1800	 	 	 	Federal Home Loan Bank of Topeka	 	 
	          Seattle, WA 98101-1693	 	 	 	One Security Benefit
Place, Suite 100	 	 
	 	 	 	 	 	 	Topeka, KS 66606-2444	 	 
	 	 	 	 	 	 	Attn: General Counsel	 	 

	 	 	 	 	 	 	 	 	 
	Office of Finance	 	 	 	 
	Managing Director:

	 	/s/ John K. Darr	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Date: 5-22-06	 	 	 	 	 	 
	Address for notice:	 	 	 	 	 	 
	          Two Fountain Square	 	 	 	 	 	 
	          11921 Freedom Drive Suite 1000	 	 	 	 	 	 
	          Reston, VA 20190	 	 	 	 	 	 

10

 

EXHIBIT A

WAIVER

	 	 	 	 	 
	

	 	Number:

Date:
	 	2005-22

December 14, 2005

Federal Housing Finance Board 

Waiver
Concerning the Direct Placement of Consolidated Obligations

WHEREAS, section 2A of the Federal Home Loan Bank Act (12 U.S.C. § 1422a(a)(3)) requires the
Federal Housing Finance Board (Finance Board) to ensure that the Federal Home Loan Banks (Banks)
remain adequately capitalized and able to raise funds in the capital markets to the extent
consistent with ensuring the safe and sound operation of the Banks;

WHEREAS, timely payment of all principal and interest to investors in consolidated obligations
(COs) is essential to maintain the confidence of investors and potential investors in COs;

WHEREAS, the Federal Reserve Bank of New York will implement procedures that will prevent a Bank or
any other government sponsored enterprise from incurring an overdraft in the accounts at the
Federal Reserve Bank of New York used to pay the principal and interest due on securities;

WHEREAS, the Banks Office of Finance (OF) serves as agent for each Bank in remitting to the Federal
Reserve Bank of New York all funds due for principal and interest payments on COs;

WHEREAS, under 12 C.F.R. §§ 907.2 and 907.6, any party may request a waiver of a provision,
restriction, or requirement of the Finance Board regulations not otherwise required by law if such
waiver is not inconsistent with the law, does not adversely affect any substantial existing rights
and the Finance Board finds that application of the restriction would adversely effect achievement
of the purposes of the Bank Act, or upon a showing of good cause;

WHEREAS, on October 18, 2005, the OF submitted to the Finance Board a request to waive the
prohibition on direct placement of COs in 12 C.F.R. § 966.8(c) when a Bank has not provided to the
OF by the agreed upon deadline all funds for principal and interest payments due that day on COs,
or portions of COs, for which that Bank is the primary obligor; and

WHEREAS, Finance Board staff has reviewed the waiver request and determined that it is consistent
with the Bank Act, for good cause, and raises no legal or safety and soundness concerns if the
waiver is granted pursuant to the terms of this resolution.

NOW, THEREFORE, IT IS RESOLVED that effective July 1, 2006, the Board of Directors hereby waives 12
C.F.R. § 966.8(c) when direct placement of COs is necessary to assure that the Federal Reserve Bank
of New York has sufficient funds to timely pay all principal and interest due that day on COs or
portions of COs;

A-1

 

Resolution Number 2005-22

Page 2 of 2

IT IS FURTHER RESOLVED that the OF must notify the Office of Supervision no later than 5:00 pm,
eastern time, on any day it directly places a CO pursuant to this waiver; and

IT IS FURTHER RESOLVED that the interest rate paid by the Bank that has not remitted all the funds
to the OF by the agreed upon deadline on the CO issued pursuant to this waiver shall be at least
500 basis points above the federal funds rate.

	 	 	 	 	 
	 

	 	By the Board of Directors 	 	 
	 

	 	of the Federal Housing Finance Board	 	 
	 
	 	 	 	 
	 

	 	/s/ Ronald A. Rosenfeld	 	 
	 

	 	 

Ronald A. Rosenfeld
	 	 
	 

	 	Chairman	 	 

 

EXHIBIT B

Contingency Funding Matrix

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Priority
	 	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12
	 
	Jan

	 	BOST
	 	NWYK
	 	PITT
	 	ATLA
	 	CINC
	 	INDP
	 	CHIC
	 	DSMN
	 	DALL
	 	TPKA
	 	SNFR
	 	STTL
	Feb

	 	NWYK
	 	PITT
	 	ATLA
	 	CINC
	 	INDP
	 	CHIC
	 	DSMN
	 	DALL
	 	TPKA
	 	SNFR
	 	STTL
	 	BOST
	Mar

	 	PITT
	 	ATLA
	 	CINC
	 	INDP
	 	CHIC
	 	DSMN
	 	DALL
	 	TPKA
	 	SNFR
	 	STTL
	 	BOST
	 	NWYK
	Apr

	 	ATLA
	 	CINC
	 	INDP
	 	CHIC
	 	DSMN
	 	DALL
	 	TPKA
	 	SNFR
	 	STTL
	 	BOST
	 	NWYK
	 	PITT
	May

	 	CINC
	 	INDP
	 	CHIC
	 	DSMN
	 	DALL
	 	TPKA
	 	SNFR
	 	STTL
	 	BOST
	 	NWYK
	 	PITT
	 	ATLA
	Jun

	 	INDP
	 	CHIC
	 	DSMN
	 	DALL
	 	TPKA
	 	SNFR
	 	STTL
	 	BOST
	 	NWYK
	 	PITT
	 	ATLA
	 	CINC
	Jul

	 	CHIC
	 	DSMN
	 	DALL
	 	TPKA
	 	SNFR
	 	STTL
	 	BOST
	 	NWYK
	 	PITT
	 	ATLA
	 	CINC
	 	INDP
	Aug

	 	DSMN
	 	DALL
	 	TPKA
	 	SNFR
	 	STTL
	 	BOST
	 	NWYK
	 	PITT
	 	ATLA
	 	CINC
	 	INDP
	 	CHIC
	Sep

	 	DALL
	 	TPKA
	 	SNFR
	 	STTL
	 	BOST
	 	NWYK
	 	PITT
	 	ATLA
	 	CINC
	 	INDP
	 	CHIC
	 	DSMN
	Oct

	 	TPKA
	 	SNFR
	 	STTL
	 	BOST
	 	NWYK
	 	PITT
	 	ATLA
	 	CINC
	 	INDP
	 	CHIC
	 	DSMN
	 	DALL
	Nov

	 	SNFR
	 	STTL
	 	BOST
	 	NWYK
	 	PITT
	 	ATLA
	 	CINC
	 	INDP
	 	CHIC
	 	DSMN
	 	DALL
	 	TPKA
	Dec

	 	STTL
	 	BOST
	 	NWYK
	 	PITT
	 	ATLA
	 	CINC
	 	INDP
	 	CHIC
	 	DSMN
	 	DALL
	 	TPKA
	 	SNFR

B-1

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