Document:

Exhibit 4.1.12

 

EXHIBIT 4.1.12

TWELFTH AMENDMENT TO THE

COUNTRYWIDE FINANCIAL CORPORATION

401(k) SAVINGS AND INVESTMENT PLAN

     This Twelfth Amendment is made as of this 20th day of December, 2006, by Countywide Financial
Corporation (the “Company”), a corporation duly organized and existing under the laws of the State
of Delaware.

WITNESSETH:

     WHEREAS, the Company maintains the Countrywide Financial Corporation 401(k) Savings and
Investment Plan (the “Plan”), as most recently amended and restated by indenture effective as of
January 1, 1997.

     WHEREAS, the Company wishes to amend the Plan relative to Joint Venture Service.

     NOW, THEREFORE, on behalf of the Company, the Board of Directors of the Company does hereby
amend the Plan, pursuant to Section 15.01 thereof, effective as of January 1, 2006 as follows:

     By deleting the portion of Appendix D titled “Special Rules in Connection with Joint Ventures”
and by substituting therefor the following:

“Special Rules in Connection with Joint Ventures

Notwithstanding any provisions of the Plan to the contrary, the following rules shall apply
in connection with a joint venture to which the Company or Affiliated Company is a party (a
‘Joint Venture’):

	 	1.	 	A Joint Venture is, as determined by the Administrator in its sole discretion,
a joint venture, partnership, strategic alliance or other similar arrangement with a
third party.
	 
	 	2.	 	If a Member or Eligible Employee is employed by or transferred by an Employer
to a Joint Venture, the following rules apply:

	 	(a)	 	Such Participants who do not request a distribution at the time
of employment by or transfer to the Joint Venture and Eligible Employees who
are transferred to or employed by a Joint Venture shall be credited with Years
of Service and Hours of Service for purposes of determining eligibility to
participate under the Plan and vested status under the Plan for all continuous
service with the Joint Venture.
	 
	 	(b)	 	If such Participant or Eligible Employee returns to or is
rehired directly from the Joint Venture by a Participating Employer as an
Eligible Employee, with no intervening employment by an employer unrelated to
the Joint Venture, he or she will have immediate eligibility for Employer

1

 

	 	 	 	Matching Contributions, Employer Discretionary Contributions, QNECs and
Employer limited Profit Sharing Contributions if his or her combined prior
service with a Participating Employer and service with a Joint Venture
satisfy the applicable eligibility requirements therefor.
	 
	 	(c)	 	If such Participant has an outstanding loan at the time of such
employment or transfer, he or she will not be able to repay the loan through
payroll deductions, but may continue repayment through other means, as
contemplated by the Plan.

	 	3.	 	Employees of Countrywide KB Homes hired by an Employer on and after January 1,
2006 shall be credited with Years of Service and Hours of Service for purposes of
determining eligibility to participate under the Plan, eligibility for Employer
Matching Contributions and for Employer Limited Profit Sharing Contributions, and
vested status under the Plan based on their service date on record with Countrywide KB
Homes.”

     Except as specifically amended hereby, the Plan shall remain in full force and effect as prior
to this Twelfth Amendment.

     IN WITNESS WHEREOF, the Company has caused this Twelfth Amendment to be executed as of the day
and year first above written.

	 	 	 	 	 	 	 
	 	 	Countrywide Financial Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ MARSHALL M. GATES
 

     Marshall M. Gates
	 	 
	 

	 	 	 	     Senior Managing Director and	 	 
	 

	 	 	 	     Chief Administrative Officer	 	 

	 	 	 	 	 
	Attest

	 	/s/ LORI J. SHEAD
 

  Lori J. Shead
	 	 
	 

	 	  First Vice President and Senior Counsel	 	 

2Ex-10.12

 

EXHIBIT 10.12

FEDERAL HOME LOAN BANK OF PITTSBURGH

SHORT-TERM INCENTIVE COMPENSATION PLAN

(Revised Effective 2/16/07)

	I.	 	EFFECTIVE DATE
	 
	 	 	The Short-Term Incentive Compensation Plan (the Plan) of the Federal Home Loan Bank of
Pittsburgh was originally established effective as of January 1, 1991. Short-Term Incentive
Compensation Awards (Awards) may be paid for each Plan Year (January 1 to December 31), in
accordance with the provisions of the Plan.
	 
	II.	 	PURPOSE AND OBJECTIVES
	 
	 	 	The Short-Term Incentive Compensation Plan is designed to attract,
retain and motivate Bank employees. The Plan seeks to support the
annual planning process and achievement of the Bank’s operational and
profitability goals. Within this overall purpose, there are three
primary objectives:

	 	•	 	To focus attention on the establishment and achievement of
objective goals which are linked to the Bank’s business plan and
success factors.
	 
	 	•	 	To provide opportunities to earn financial rewards based on
improved Bank performance and individual contributions to that
performance.
	 
	 	•	 	To ensure that variable compensation opportunities are
reasonable and comparable with incentive payments made to employees
of other similar businesses, including financial institutions, with
similar duties and responsibilities.

	III.	 	PLAN ADMINISTRATION
	 
	 	 	The Plan is administered by the President, the Human Resources
Committee of the Board of Directors (the Committee), and the Board of
Directors (the Board).
	 
	 	 	A.      Responsibilities of the President
	 
	 	 	The President will provide recommendations to the Committee and the Board regarding Plan
participation, Bank and individual performance goals, Bank and individual achievements, and
Awards for executive management. The President is responsible for approval of Plan
participation, Bank and individual performance goals, Bank and individual achievements, and
Awards for staff below the executive management level. The President’s responsibilities
also include monitoring the effectiveness of the Plan, the payment process, and providing
recommendations to the Committee and the Board regarding modifications to the Plan.

 

 

FEDERAL HOME LOAN BANK OF PITTSBURGH

SHORT-TERM INCENTIVE COMPENSATION PLAN

Page 2

	 	 	B.      Responsibilities of the Committee
	 
	 	 	The Committee will review all Plan recommendations and revisions (including all performance
goals and Awards) from the President and present final recommendations to the Board for its
approval. In addition, the Committee will review the performance of the President and
determine a Short-Term Incentive Award, to be recommended to the Board for its approval.
	 
	 	 	C.      Responsibilities of the Board
	 
	 	 	The Board will review and approve as appropriate all recommendations from the Committee and
the President.
	 
	IV.	 	ELIGIBILITY
	 
	 	 	All Bank staff is eligible to participate in the Plan. Participation
for executive management is recommended by the President to the
Committee and approved by the Board.
	 
	 	 	Eligibility is reviewed annually to assure continued appropriateness,
and participants are notified by Human Resources of their
participation in the Plan. Upon designation as a participant, each
participant will be given a copy of the Plan.
	 
	V.	 	INCENTIVE AWARD OPPORTUNITY
	 
	 	 	Certain positions have a greater and more direct impact than others on the achievement of
Bank performance. Those differences are recognized by varying the incentive opportunity,
expressed as a percentage of a participant’s base salary or, in the case of non-exempt
employees such employees’ total earnings over the plan year, as determined by the Bank in
accordance with applicable legal requirements.
	 
	 	 	A summary of the short-term incentive plan award levels is attached as Attachment I. Each
participant shall be provided with a separate document showing his level of participation in
the Plan. Awards for performance results between the threshold and target levels are
calculated as a percentage of the target level. Awards for performance between the target
and maximum levels are calculated as a percentage of maximum.
	 
	VI.	 	PERFORMANCE MEASURES
	 
	 	 	The Plan is designed to reward participants to the extent the
participant meets objective performance goals related to Bank and/or
individual performance criteria established by the Board. The mix of
Bank and individual performance goals is determined for each
participant at the onset of each Plan Year.

 

 

FEDERAL HOME LOAN BANK OF PITTSBURGH

SHORT-TERM INCENTIVE COMPENSATION PLAN

Page 3

	 	 	Bank-wide Performance Goal
	 
	 	 	One or more Bank-wide goal(s) are established for each Plan Year.
These goals can be both quantitative and qualitative, and are
established on the basis of the annual operating budget and business
plan as approved by the Board.
	 
	 	 	A performance schedule is established to indicate potential total awards payable at various
levels of performance: the threshold level below which no award is paid, the target
objective, and a maximum level which defines the limit of maximum incentive payment under
the plan.
	 
	 	 	For executive management and various other positions in the Bank, generally the greater the
control and influence a participant can exert over Bank-wide goals, the larger a portion of
their incentive award will be based on Bank performance.
	 
	 	 	Individual Goals 
	 
	 	 	The establishment of individual goals is based upon objective individual performance
initiatives which are mutually agreed upon by the participant and Bank management. These
goals represent clearly defined and meaningful accomplishments desired within the framework
of the responsibilities of the participant. Each goal will be designed to be attainable,
within specific timeframes, but not without significant effort.
	 
	 	 	Goals may be related solely to one individual, or may relate to a group of two or more
individuals whose efforts are required to produce the results. The goals may be equally
weighted or assigned different weights and emphasis. The minimum weight is 10 percent and
the total weightings equal 100 percent. Goals will be established at three performance
levels: threshold, target, and maximum, if appropriate.
	 
	 	 	Individual goals are normally established on the basis of the annual operating budget and
business plan. Goals may apply to the full Plan Year or to a portion of the Plan Year, as
appropriate. For the President, goals will be established by the Board. For the Chief
Operating Officer, in addition to the Bank’s financial goal(s), the President establishes
additional individual performance goals based upon criteria established by the Board.
	 
	 	 	Revisions and Amendments
	 
	 	 	Bank-wide and individual performance goals are determined for the entire year.
	 
	 	 	Recognizing, however, that circumstances and priorities may change during the year, the
President may submit to the Committee and the Board revisions to Bank-wide goals during the
course of the Plan Year at such time as he may choose. The Committee and the Board will
determine, at its discretion, whether Bank-wide goals will be amended. The President will
inform the Committee of any revisions to executive management’s individual goals which are
required throughout the Plan Year.

 

 

FEDERAL HOME LOAN BANK OF PITTSBURGH

SHORT-TERM INCENTIVE COMPENSATION PLAN

Page 4

	VII.	 	AWARD DETERMINATION
	 
	 	 	At the conclusion of each Plan Year, the President, after considering the Bank’s performance against its Bank-wide
goal(s) and each participant’s performance against his/her individual performance goals, shall recommend to the Committee
and the Board the short-term incentive award to be paid to executive management for that Plan Year, if any. The
President is responsible for approval of Awards to be paid to staff below the executive management level. A participant
who is on formal corrective action for performance anytime during the plan year will only be eligible to receive a
pro-rated award of up to 9/12 of his/her award amount. In order for any short-term incentive payment to be made, the
most recent examination by the Federal Housing Finance Board of the participant’s area(s) of responsibility must not have
identified any unsafe or unsound practice or condition.
	 
	 	 	Unless otherwise directed by the Board, payments of Awards under the Plan shall be made as soon as possible after the
Board has made a determination regarding the payment of Awards but no later than 21/2 months after the close of the Plan
year. Appropriate provisions shall be made for any taxes that the Bank determines are required to be withheld from any
Awards under the applicable laws or other regulations of any governmental authority, whether federal, state, or local.
The payment of any Award shall be subject to such obligations, terms and conditions as the Committee or the Board may
specify in making the Award and, in exercising its discretion to make any Award determination hereunder, the Board may
choose to consider factors such as overall Bank financial performance, operating environment, and other relevant
considerations. Acceptance of any Award shall constitute agreement by the participant to all obligations, terms,
conditions and restrictions so imposed.
	 
	 	 	Participants who terminate employment with the Bank for any reason, other than death, disability or retirement prior to
the Award payout date will not be eligible for an Award.
Participants who are hired prior to July 1 during the Plan year or whose employment ends due to involuntary termination
(excluding involuntary termination for cause), death, disability or retirement prior to the Award payout date may be
eligible to be considered for a prorated incentive award.
	 
	 	 	Each payment of an Award shall be from the general assets of the Bank.
	 
	VIII.	 	TERMINATION OR AMENDMENT
	 
	 	 	The Plan, in whole or in part, may at any time or from time-to-time be amended, suspended, or reinstated and may at any
time be terminated by action of the Board. Until a determination of Award payment has been made by the Board and a
participant has met the requirement to be an active employee on the actual Award payout date, no participant has a vested
right to an Award under the Plan.

 

 

FEDERAL HOME LOAN BANK OF PITTSBURGH

SHORT-TERM INCENTIVE COMPENSATION PLAN

Page 5

	IX.	 	MISCELLANEOUS PROVISIONS

	 	A.	 	Neither the adoption of the Plan nor its operation shall in any way affect the
right and power of the Bank to dismiss any employee, or otherwise terminate the
employment or take other action including, but not limited to, removing the employee
from the incentive-eligible position, at any time, for any reason, with or without
cause.
	 
	 	B.	 	No participant will have the right to alienate, assign, encumber, hypothecate,
or pledge his or her interest in any Award under the Plan, voluntarily or
involuntarily, and any attempt to do so dispose of any such interest will be void.
	 
	 	C.	 	This document is a complete statement of the Plan and as of the date below,
supersedes all prior plans, representations and proposals written or oral relating to
its subject matter. The Bank will not be bound by or liable to any employee for any
representation, promise, or inducement made by any person which is not embodied in this
document.
	 
	 	D.	 	The Board has the power and authority to construe, interpret and administer the
Plan. Any decision arising out of or in connection with the construction,
interpretation or administration of the Plan will lie within the Board’s absolute
discretion and will be binding on all parties.

 

 

FEDERAL HOME LOAN BANK OF PITTSBURGH

SHORT-TERM INCENTIVE COMPENSATION PLAN

Page 6

ATTACHMENT 1

FEDERAL HOME LOAN BANK OF PITTSBURGH

ANNUAL INCENTIVE COMPENSATION PLAN

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Payout	 	Performance
	Eligibility	 	Threshold	 	Target	 	Maximum	 	Bank	 	Shared/Individual
	Level 1
	 	 	20.0	%	 	 	35.0	%	 	 	50.0	%	 	 	75	%	 	 	25	%
	Level 2
	 	 	18.75	%	 	 	25.0	%	 	 	37.5	%	 	Up to 65	%	 	Up to 35	%
	Level 3
	 	 	15.0	%	 	 	20.0	%	 	 	30.0	%	 	Up to 45	%	 	Up to 100	%
	Level 4
	 	 	14.5	%	 	 	19.0	%	 	 	26.5	%	 	Up to 40	%	 	Up to 100	%
	Level 5
	 	 	11.0	%	 	 	14.0	%	 	 	19.0	%	 	Up to 40	%	 	Up to 100	%
	Level 6
	 	 	7.5	%	 	 	9.0	%	 	 	11.5	%	 	Up to 40	%	 	Up to 100	%
	Level 7
	 	 	3.5	%	 	 	5.0	%	 	 	7.5	%	 	Up to 40	%	 	Up to 100	%

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