Document:

sret_Ex10_1

		
			Exhibit 10.1
		

		
			 
		

		
			AMENDMENT NO. 1 TO
		

		
			EIGHTH AMENDED AND RESTATED ADVISORY AGREEMENT
		

		
			 
		

		
			This Amendment No. 1 to the Eighth Amended and Restated Advisory Agreement between Sterling Real Estate Trust d/b/a Sterling Multifamily Trust, an unincorporated North Dakota business Trust (the “Company”),  Sterling Properties, LLLP, d/b/a Sterling Multifamily Properties, LLLP, a North Dakota limited liability limited partnership (“Operating Partnership”) and Sterling Management, LLC, a North Dakota limited liability company (the “Advisor”) is made and entered into effective September 1, 2019.
		

		
			 
		

		
			WHEREAS, the parties previously entered into an Eighth Amended and Restated Advisory Agreement effective April 1, 2019;
		

		
			 
		

		
			WHEREAS, Advisor has since expanded its Asset Management function in order to assume  responsibility for managing capital improvement projects on the Operating Partnership’s Real Property;
		

		
			 
		

		
			WHEREAS, the parties mutually desire that Advisor provide project management services for capital improvement projects on the Operating Partnership’s Real Property, and that the Advisor be compensated for such services with a project management fee equal to 6.0% of the total project cost for each completed project;
		

		
			 
		

		
			NOW THEREFORE, in consideration of the foregoing recitals, the terms and conditions set forth below, and for other good and valuable consideration, the parties agree as follows:
		

		
			 
		

		
			1.         Capitalized Terms.  Capitalized terms used in this Amendment No. 1 and not otherwise defined herein have the meaning assigned to them in the Eighth Amended and Restated Advisory Agreement.
		

		
			 
		

		
			2.         Amendment.  The Eighth Amended and Restated Advisory Agreement is hereby amended to add the following under Section 10 relating to Fees:
		

		
			 
		

		
			(f)         Project Management.  The Advisor shall receive a fee for managing capital improvement projects (other than development projects subject to Section 10(e) above) on the Operating Partnership’s Real Property.  The project management fee shall be equal to 6.0% of the total project cost for each completed project.
		

		
			 
		

		
			3.         Other Terms and Conditions.  All other terms and conditions of the Eighth Amended and Restated Advisory Agreement shall remain in full force and effect and are ratified by the Parties through this Amendment No. 1.
		

		
			 
		

		
			[signature page follows]
		

		
			
		

		
			

		 

		

			1

		

		

		
			 
		

		
			The parties have executed this Amendment No. 1 to Eighth Amended and Restated Advisory Agreement as of the date first set forth above.
		

		
			 
		

		
			COMPANY:
		

		
			 
		

		
			STERLING REAL ESTATE TRUST,
		

		
			d/b/a Sterling Multifamily Trust,
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Bruce W. Furness

				
	
					
						Name:

					
					
						Bruce W. Furness

				
	
					
						Title:

					
					
						Chairman of the Board

				

		
			 
		

		
			OPERATING PARTNERSHIP:
		

		
			 
		

		
			STERLING PROPERTIES, LLLP,
		

		
			d/b/a Sterling Multifamily Properties, LLLP,
		

		
			 
		

		
			By:       STERLING REAL ESTATE TRUST,
		

		
			d/b/a Sterling Multifamily Trust,
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Bruce W. Furness

				
	
					
						Name:

					
					
						Bruce W. Furness

				
	
					
						Title:

					
					
						Chairman of the Board

				

		
			 
		

		
			ADVISOR:
		

		
			 
		

		
			STERLING MANAGEMENT, LLC
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Ryan M. Downs

				
	
					
						Name:

					
					
						Ryan M. Downs

				
	
					
						Title:

					
					
						President

				

		
			 
		

		 

		

			2Blueprint

  Exhibit 10.1

 

 

 

 

BY HAND

 

August
8, 2019

 

 

Paul B.
Héroux

[Address
Redacted]

 

 

Dear
Paul:

 

As we
discussed, your employment with the Federal Home Loan Bank of New
York ("FHLBNY") terminated at the close of FHLBNY business on
Monday, September 30, 2019.
To ease your transition, and recognize your significant
contributions to the Bank we are prepared to offer you severance
benefits under the Bank’s Severance Pay Plan plus an
additional 16 weeks for a total of 52 weeks, in exchange for and
subject to your signing this Agreement.

 

1. Severance Benefits

 

Before
you read the below, it is important for you to recognize that all
payments made under the terms of this Agreement are subject to all
applicable Federal, state and local withholding tax
obligations.

 

a) If
you execute this Agreement without revocation, the severance
benefits (including a cash severance payment, outplacement services
and a payment intended for medical coverage) described in the
attached FHLBNY Severance Pay Plan ("Severance Plan") and in the
“Severance Benefits” section of this agreement will
apply to your termination. The cash severance payment and medical
coverage payment portions of the severance benefits will be paid in
a lump sum on a scheduled payroll date occurring before February
28, 2020, with payment
conditioned on (1) FHLBNY having received a signed copy of this
Agreement in accordance with the directions provided below and (2)
the revocation period described in Section 6 having expired without
revocation. The date
this payment is made is referred to as the “Payment
Date.”

 

b) Your
severance benefits will include a cash payment equal to 52 weeks of
salary $437,142, at your rate of pay as of the date of termination.
Regardless of whether or not you sign this Agreement, your
previously deferred incentive compensation will be paid out in
accordance with the terms of the Bank's Incentive Compensation Plan
in March 2020, 2021 and 2022, and your Executive Change in Control
Agreement, effective as of February 27, 2019, remains in
place.

 

c) In
addition, you will be entitled to outplacement counseling services
provided by the firm Lee Hecht Harris (“LHH”)
for a period of 36 weeks beginning on the date Payment Date, to
commence no later than four (4) weeks after the Payment Date. If
you wish to avail yourself of such services, please contact Jason
Yanoff, VP, Client Relations of LHH at 617-458-3077.

 

d) If
you were a participant in the FHLBNY’s Employee Medical
Benefits Plan (“Medical Plan”) at the date of
termination of employment, your medical, vision and dental benefits
under the Medical Plan will terminate on or about that date. You
may choose the option, 
regardless of whether or not you execute this Agreement, of
continuing your medical, vision and dental benefits under the
Medical Plan at your cost, with payments for such coverage due by
you to the administrator of FHLBNY’s Medical Plan
continuation coverage program. However, if you execute this
Agreement, the FHLBNY will provide you with a payment in the amount
of $29,168 intended to defray a portion of the cost of your elected
Medical Plan continuation coverage. Payment of this lump sum amount
shall be made in accordance with Section 1(a) above and at the same
time as the cash payment described in Section 1(b) above. Please
keep in mind that said payments to the administrator of the
FHLBNY's Medical Plan continuation coverage program are your
responsibility. Your retiree medical benefits, if applicable, will
not be changed by this Agreement, and these benefits will be
provided in accordance with the terms of the medical
plan.

 

 

 

 

2. Release

 

Your
acceptance of the aforementioned severance benefits (including, the
cash severance payment, outplacement services and medical coverage
payment) shall constitute your agreement to irrevocably and
unconditionally release the FHLBNY, as well as its present and
former directors, officers, employees, assigns,
administrators, agents, insurers, and attorneys, jointly and
individually, from any and all claims, known or unknown, arising
out of, or regarding, your employment with the FHLBNY, or
termination thereof, or compensation from the FHLBNY, including,
but not limited to, claims pertaining to (i) Title VII of the Civil
Rights Act of 1964, as amended; (ii) the Americans with
Disabilities Act, as amended; (iii) the Employee Retirement Income
Security Act of 1974, as amended (excluding claims for accrued,
vested benefits under any employee benefit plan of the FHLBNY in
accordance with the terms of such plan and applicable law); (iv)
the Age Discrimination in Employment Act, as amended, or the Older
Workers Benefit Protection Act; (v) the Civil Rights Acts of 1866,
1871 and 1991; (vi) the Equal Pay Act; (vii) the New York State
Labor Law and the New York State and City Human Rights Laws; (viii)
the New Jersey Law Against Discrimination; (ix) Section 806 of the
Sarbanes Oxley Act of 2002; (x) the Family and Medical Leave Act,
and all other federal, state or local laws pertaining to leave;
(xi) alleged discrimination, harassment (whether sexual or
otherwise) or retaliation in employment (whether based on federal,
state or local law, statutory or decisional); and (xii) the terms
and conditions of your employment with the FHLBNY, the termination
of such employment, and/or any of the events relating directly or
indirectly to or surrounding your employment or termination; (xiii)
the Constitutions of the United States, New York and New
Jersey.

 

You
acknowledge and agree that you do not have, nor have ever had, any
claims or causes of action against FHLBNY (or its present
and former directors, officers, and employees, assigns,
administrators, agents, insurers, and attorneys) that in any way
arise out of, involving or relating to sexual harassment under
Section 5-336 of the New York General Obligations Law or Section
5003-b of the New York Civil Practice Law and Rules.

 

You
acknowledge and agree that other than your final paycheck which
will include payment for any unused accrued paid time off and
vacation (if any), you agree that you have been properly paid for,
and have received all compensation and benefits amounts due from
FHLBNY relating to your employment, including, but not limited to,
all wages and incentives, and that no other amounts are due to you
except as expressly set forth in this Agreement and except as may
be due under the terms of any (if any) applicable written
retirement, incentive or deferred compensation plan or agreement.
FHLBNY will reimburse you for any reasonable and ordinary business
expenses incurred, if any, within 45 days of the approval of any
expense reports (which must be submitted within fifteen
(15)
days of the date of this Agreement).

 

Notwithstanding the foregoing, nothing in this
Agreement (including, for the avoidance of doubt, the restrictions
and conditions in Sections 2(a) – (e) below) shall be
construed to prevent you from filing a charge with or participating
in an investigation conducted by any governmental agency,
including, without limitation, the United States Equal Employment
Opportunity Commission (“EEOC”), the Securities and
Exchange Commission (“SEC”), the National Labor
Relations Board, the Occupational Health and Safety Administration
or applicable state, city or federal agency (“Government
Agencies”), to the extent required or permitted by law,
including SEC compliance investigations. You further
understand that this Agreement does not limit your ability to
communicate with any Government Agencies or otherwise participate
in any investigation or proceeding that may be conducted by any
Government Agency, including providing documents or other
information, without notice to the Company. This Agreement does not
limit your right to receive an award for information provided to
any Government Agencies.

 

In
addition to the foregoing, you agree as follows:

 

a) you
will use your best efforts to cooperate with the FHLBNY in
connection with any investigation, administrative proceeding or
litigation which may occur relating to any matter in which you were
involved or of which you have knowledge;

 

b) in
the event you are subpoenaed by any person or entity (including,
but not limited to, any government agency) to give testimony (in a
deposition, court proceeding or otherwise) which in any way relates
to your employment with the FHLBNY, you will use your best efforts
to give prompt notice of such request to the Director of Human
Resources and will make no disclosure until the FHLBNY has had a
reasonable opportunity to contest the right of the requesting
person or entity to such disclosure;

 

c) the
terms and conditions of this Agreement are and shall be deemed to
be confidential, and shall not be disclosed by you to any person or
entity without the prior written consent of the Director of Human
Resources, except (i) if required by law, including the
FHLBNY’s required SEC filings including the filing of Form
8-K disclosing this Agreement or (ii) to your accountants,
attorneys or spouse;

 

d) this
Agreement may not be used as evidence in any subsequent proceeding
except in a proceeding to enforce the terms of this Agreement;
and

 

e) you
will not engage in any conduct that is injurious to the
FHLBNY’s reputation or interest, including, but not limited
to, publicly disparaging (or inducing or encouraging others to
publicly disparage) the FHLBNY or its employees, whether in
interviews, oral statements, written materials, electronically
displayed materials, materials or information displayed on
Internet-related sites, or otherwise (for the avoidance of doubt, this provision
2(e) does not limit your right to provide truthful testimony under
oath when required or compelled to do so by operation of law,
consistent with provision 2(b) of this Agreement).

 

 

 

 

3. Process for Acceptance of Severance Benefits

 

If you
wish to accept the aforementioned severance benefits, your
acceptance must be communicated by signing this Agreement in the
space provided below and returning an originally-executed copy to
me by no later than 5:00
p.m. on September 23,
2019. At your option, you may deliver your acceptance to me
before September 23, 2019.
(If you execute this Agreement, you may wish to retain a copy for
your personal records.)

 

You are advised to consult with an attorney before signing this
Agreement.

 

4. Failure to Accept the Severance Benefits

 

If you
do not sign and return this Agreement to me by 5:00 p.m. on September 23, 2019, the offer of
severance benefits as described herein shall be void.

 

5. Revocation of Your Previous Acceptance of the Severance
Benefits

 

If you
decide to accept the severance benefits (including the cash
severance payment, outplacement services and medical coverage
payment) described herein, you may revoke that acceptance by
notifying me in writing, with my receipt of such notice within
seven (7) days of the date
that you executed this Agreement. However, if you exercise this
right of revocation, you will not receive the severance benefits
(including the cash severance payment, outplacement services and
medical coverage payment) described herein.

 

6. Disputes Concerning this Agreement

 

It is
understood and agreed that this Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of
New York, without regard to the conflict of laws provisions
thereof. Actions to enforce the terms of this Agreement shall be
submitted to the exclusive jurisdiction of any state or federal
court sitting in the County of New York, State of New
York.

 

If any
provision of this Agreement shall be determined by the Federal
Housing Finance Agency or held by a court of competent jurisdiction
to be illegal, void, or unenforceable, such provision shall be of
no force and effect. However, the illegality or unenforceability of
such provision shall have no effect upon, and shall not impair the
enforceability of, any other provision of this Agreement; provided,
however, that upon any finding by a court that the release provided
for in the first paragraph of the “Release” section of
this Agreement is illegal, void, or unenforceable, you agree to
execute a release that is legal and enforceable; and provided
further that any breach of the terms in the remaining portion of
the “Release” section shall constitute a material
breach of this Agreement as to which the FHLBNY may seek
appropriate relief in court.

 

7. Effect of Your Signature

 

Your
signature below shall constitute an acknowledgement that: (a) you
have carefully read this Agreement in its entirety; (b) you have
had an opportunity to consider fully the terms of this Agreement;
(c)  you are executing this Agreement in exchange for good and
valuable consideration, in addition to anything of value to which
you are otherwise entitled; (d) you have been advised by the FHLBNY
in writing to consult with an attorney in connection with this
Agreement; (e) you fully understand the significance of all of the
terms and conditions of this Agreement and have had the opportunity
to discuss it with your attorney, or have had a reasonable
opportunity to do so; (f) you have had answered to your
satisfaction any questions you may have asked with regard to the
meaning and significance of any of the provisions of this
Agreement; and (g) you are signing this Agreement voluntarily and
of your own free will and assent to all the terms and conditions
contained herein.

 

If you
have any questions about or otherwise wish to discuss this matter,
please feel free to contact me at 212-441-6845.

 

Sincerely,

 

/s/
Mildred Tse-Gonzalez

 

Mildred
Tse-Gonzalez

Vice
President

Director
of Human Resources

 

	

ACCEPTED AND AGREED:

	
 

	
 

	

/s/ Paul B. Héroux

	

Paul B.
Héroux

	
 

	

Date:

	

September
12, 2019

 

   Attachment:
Severance Plan

 

 

 

 

 

 

 

 

 

 

 

 

FEDERAL HOME LOAN BANK OF NEW YORK

 

SEVERANCE PAY PLAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AS AMENDED AND RESTATED EFFECTIVE SEPTEMBER 20,
2018

 

 

 

 

 TABLE
OF CONTENTS

 

	
 ARTICLE

	
 

	
 PAGE

	
I

	
 DEFINITIONS

	
 1

	
II

	
 ESTABLISHMENT OF THE PLAN

	
 2

	
III

	
 PROVISIONS RELATING TO SEVERANCE
BENEFITS

	
 3

	
IV

	
 GENERAL PROVISIONS

	
 6

	
V

	
 MISCELLANEOUS

	
 7

	
VI

	
 AMENDMENTS AND PLAN
TERMINATION

	
 8

 

 

 

 

 

                                                          
                                                                     

 

 

 

 

 

 

ARTICLE I

 

DEFINITIONS

 

1.01 “Bank”
means the Federal Home Loan Bank of New York and its
successors.

 

1.02
“Change in
Control” or “CIC” means a ‘Change in
Control’ as that term is defined in the Employee Change of
Control Agreement executed between the Bank and the Bank’s
Chief Executive Officer, as may be amended from time to
time.

 

1.03 "Code"
means and refers to the Internal Revenue Code of 1986, as
amended.

 

1.04 “Date
of Employment” means and
refers to the most recent date on which an individual began
employment by the Bank as an Employee.

 

1.05 “Effective
Date” means September 20, 2018.

 

1.06 “Employee”
means and refers to any individual who is a regular employee of the
Bank who works twenty (20) hours a week or more and excludes
interns and other individuals employed by the Bank whose employment
is intended not to exceed one thousand (1,000) hours in any twelve
(12) month period.

 

1.07 "Employment"
means and refers to the legal relationship of employment between an
Employee and the Bank.

 

1.08 “Exempt
Employee” means and refers to an Employee who is
exempt from the overtime pay provisions of the Fair Labor Standards
Act of 1938, as amended.

 

1.09 “Non-Exempt
Employee” means and refers to an Employee who is
subject to the overtime pay provisions of the Fair Labor Standards
Act of 1938, as amended.

 

1.10 “Officer”
means and refers to an officer of the Bank who has been designated
as such by the Board of Directors of the Bank.

 

1.11 “Outplacement
Services” means and refers to internal and/or external
professional assistance provided to Employees following their
Termination of Employment with the Bank with respect to their
search for new employment.

 

1.12 “Periods
of Service” means and refers to the number of six (6)
month periods, in the aggregate, for which an Employee is employed
by the Bank, commencing with the Date of Employment of the Employee
and ending with the date of Termination of the Employee’s
Employment with the Bank, both dates inclusive, excluding any
period of Employment which Terminated under circumstances under
which the Employee was not eligible for Severance Benefits under
this Plan.

 

1.13“Plan”
means this Federal Home Loan Bank of New York Severance Pay Plan,
as amended from time to time hereafter.

 

 

 

 

1.14 “Plan
Administrator” means and refers to the Director of
Human Resources of the Bank.

 

1.15 “Reduction
in Force” or “RIF” means and refers to a
systematic series of Terminations of Employment of Employees by the
Bank intended to lead to a permanent reduction in
staffing.

 

1.16 “Release”
means and refers to the elimination of a position with the Bank as
part of a RIF, reorganization, or other management action, where no
other Employment with the Bank is offered to an Employee and the
Employment of the affected Employee is involuntarily
Terminated.

 

1.17 “Resignation,”
“Resign,” and
"Resigned" mean and refer to a
Termination of Employment with the Bank initiated by an Employee,
other than a resignation requested by the Bank.

 

1.18 “Severance
Benefits” means and refers to:

 

(A)    in all cases, the amount
payable under this Plan to an Employee qualifying for severance
benefits, determined pursuant to the provisions of Section 3.04 and
computed with respect to and based upon the weekly base salary rate
of the Employee immediately preceding the date on which such
severance benefits commence pursuant to Article III of this Plan;
and

 

(B)
solely in the event of a CIC, and notwithstanding the calculation
provisions contained in Sections 3.04 and 3.05, (i) a lump sum
payment for outplacement services as set forth in Section 3.08,
plus (ii) a lump sum payment equal to the full “target”
payout estimate from the prior year’s Bank Incentive
Compensation Plan (“ICP”) if the Employee was
participating in such ICP, it being understood that: (a) such
payment will not be measured based on actual performance results,
unless the Employee’s actual performance result was below
target, in which case the Employee’s actual ICP payment will
be taken into account; (b) if the Employee did not participate in
the prior year’s ICP, the Employee will not receive any
payment under this subsection; and (c) if the Employee was employed
during a portion of the calendar year, the amount to be calculated
(the target or the lesser amount) shall be annualized. (Any payments that may be otherwise
earned and deferred under the ICP, or any other incentive or
non-qualified savings plan that may be established by the Bank in
the future, are outside the scope of this Plan and will be paid in
accordance with the terms of such plans.)

 

1.19 "Termination
of Employment" and "Terminated," when used with reference to
and in conjunction with Employment, have the meaning set forth in
Section 3.11 and, in all events, is considered a “separation
from service” within the meaning of Treas. Reg. §
1.409A-1(h).

 

1.20 “Termination
for Cause” means and refers to the Termination by the
Bank of the employment of an Employee for (i) the commission of an
illegal or unethical act, (ii) pleading “guilty” or
“no contest” to or being indicted for or convicted of a
felony under federal or state law or as a crime under federal or
state law which involves Employee’s fraud or
dishonesty, (iii) a violation of established Bank policy or
practice, or (iv) the failure of the Employee to perform the duties
of his or her position in a satisfactory manner, in each case as
determined by the Plan Administrator in his sole and exclusive
discretion.

 

1.21 "Year"
means and refers to the taxable year of an Employee as such term is
used in and for purposes of the Code.

 

FEDERAL
HOME LOAN BANK OF NEW YORK ● 101 PARK AVENUE ● NEW YORK, NY 10178 ● T: 212.681.6000 ● WWW.FHLBNY.COM

1

Paul B.
Héroux

August
8, 2019

 

 

ARTICLE II

 

ESTABLISHMENT OF THE PLAN

 

 

            
2.01 Establishment of the
Plan. The Bank has established the Federal Home Loan Bank of
New York Severance Pay Plan to set forth the terms and provisions
under which Severance Benefits will be granted to Employees whose
Employment with the Bank is Terminated under certain specified
circumstances.

 

            
2.02 Replacement of Prior
Policies. This Plan supersedes and replaces any Bank
policies relating to the subject matter of this Plan that may have
been in effect prior to the Effective Date (including, for the
avoidance of doubt, any predecessor plan).

 

 

2

Paul B.
Héroux

August
8, 2019

 

 

ARTICLE
III

 

PROVISIONS RELATING TO SEVERANCE BENEFITS

 

3.01 Participation.
Participation in this Plan shall be extended to all Employees of
the Bank.

 

3.02 Eligibility
for Severance Benefits. An Employee who shall have completed
at least two (2) Periods of Service shall be eligible for Severance
Benefits under this Plan upon the Termination of the
Employee’s Employment with the Bank under any of the
following circumstances:

 

(a)

The
Employee’s position has been eliminated;

 

(b)

The
employment of the Employee has been terminated as part of a
RIF;

 

(c)   

The
Employee’s
employment has been terminated as a result of a CIC and the
Employee has not been offered an equivalent job with the resulting
entity;

 

(d)

The Employee has
been determined by the Plan Administrator, in the sole and
exclusive discretion of the Plan Administrator, to be unable to
perform in a satisfactory manner the duties of the position in
which the Employee is then employed, where such inability to
perform has been determined by the Plan Administrator, in his sole
and exclusive discretion, to not warrant a Termination for Cause,
as defined in Section 1.19; or

 

(e)

The Employee has
Resigned from his or her Employment with the Bank either (i)
following a material reduction in salary grade, level, or rank, or
a significant reduction of duties and responsibilities, as
determined by the Plan Administrator in his sole and exclusive
discretion, except when such reduction occurs as a result of
disciplinary action by the Bank, or (ii) following a refusal to
accept a transfer to a location outside a fifty (50) mile radius of
the location at which the Employee is presently employed, provided,
in either case, that the Employee shall have provided to the Plan
Administrator within not more than thirty (30) days following the
occurrence of such condition, at least ten (10) days' notice in
writing of the condition referred to in clause (i) or (ii), as
applicable, and his or her intention to Resign based thereon and
that the Bank shall not have remedied the condition for such
Resignation within thirty (30) days following the giving of such
notice by the Employee.

 

(f) 

For
the
avoidance of doubt, should the Employee’s death occur prior
to the date of Termination of Employment, no Severance Benefits
shall be paid under this Plan.

 

3.03 Disqualification
for Severance Benefits. Anything contained in this Plan to
the contrary notwithstanding, an Employee shall not be eligible for
Severance Benefits under this Plan upon his or her termination of
employment with the Bank where such termination is due to any of
the following circumstances:

 

(a)

A
Resignation by the Employee, other than one described in paragraph
(e) of Section 3.02, or a Resignation by the Employee without
giving the ten (10) days' notice in writing to the Plan
Administrator required by said paragraph (e) or prior to the
expiration of said period, or if the condition on which such
Resignation was based shall have been remedied by the Bank within
the thirty (30) day period referred to in said paragraph
(e);

 

(b)

The
Resignation of the Employee prior to the effective date of the
termination of the Employee’s employment as a result of a
Release; or

 

(c)

The
Employee’s Termination for Cause;

 

in each case, as determined by the Plan Administrator in his sole
and absolute discretion. 

 

 

3

 

 

3.04 Computation
of Severance Benefits. The amount of Severance Benefits
payable under this Plan to an Employee qualifying for Severance
Benefits under this Plan shall be determined based (i) upon the
level of the Employee’s position with the Bank at the date of
the termination of the Employee’s employment with the Bank
and (ii) the Employee’s Periods of Service with the
Bank:

 

(a)            

Officers of the
Bank shall be eligible for two (2) weeks of Severance Benefits for
each Period of Service with the Bank, but in no event (even if
employment has been for less than six months) not less than eight
(8) weeks (or, in the event of a CIC, not less than twelve (12)
weeks) of Severance Benefits;

 

(b)            

Exempt Employees
of the Bank shall be eligible for one (1) week of Severance
Benefits for each Period of Service with the Bank, but in no event
(even if employment has been for less than six months) not less
than six (6) weeks (or, in the event of a CIC, not less than twelve
(12) weeks) of Severance Benefits; and

 

(c)            

Non-Exempt
Employees of the Bank shall be eligible for one (1) week of
Severance Benefits for each Period of Service with the Bank, but in
no event (even if employment has been for less than six months) not
less than four (4) weeks (or, in the event of a CIC, not less than
twelve (12) weeks) of Severance Benefits;

 

in
each case, subject to the provisions of Section 3.05.

 

3.05 
Maximum Amount of
Severance Benefits. Anything in this Plan to the contrary
notwithstanding, in no event shall an Employee be eligible to
receive Severance Benefits, in the aggregate for all Periods of
Service, whether or not continuous, totaling more than thirty-six
(36) weeks (or fifty-two (52) weeks in the event of a CIC) in the
case of an Officer of the Bank, twenty-four (24) (or fifty-two (52)
weeks in the event of a CIC) weeks in the case of an Exempt
Employee of the Bank, and twelve (12) weeks (or fifty-two (52)
weeks in the event of a CIC) in the case of a Non-Exempt Employee
of the Bank.

 

3.06 
Method of Payment of
Severance Benefits. The total amount of Severance Benefits
payable under this Plan shall be paid in a lump sum on a scheduled
payroll date occurring within sixty (60) days following the date of
the Employee’s Termination of Employment, provided the Bank
shall have received prior thereto the Severance Agreement, as
defined and referred to in Section 3.09, signed by the Employee,
and shall be subject to withholding of Federal and State income
taxes and other employment taxes based upon the number of
withholding allowances. If the sixty-day period referred to in this
Section 3.06 spans two calendar years, payment of the Severance
Benefits will be made on a date during such sixty-day period that
occurs in the second calendar year.

 

3.07 
Continuation of Employee
Benefits.

 

(i) An
Employee who is eligible to receive Severance Benefits under this
Plan who was, at the date of Termination of his or her Employment,
a participant in the Federal Home Loan Bank of New York Life
Insurance Plan shall be eligible to continue such participation in
such plan through the end of the month following the date of
Termination of his or her Employment.

 

(ii) In
addition, an Employee who is eligible to receive Severance Benefits
under this Plan who was, at the date of Termination of his or her
Employment, a participant in the Federal Home Loan Bank of New York
Medical Benefits Plan, and any related dental and vision plans,
shall have the option to duly and timely elect to continue such
participation under the provisions of the continuation coverage
provisions adopted by the Bank (which is not subject to the
Consolidated Omnibus Budget Reconciliation Act of 1986), subject to
the coverage continuation rules for such benefits established by
the Bank from time to time. In addition, the Bank will provide
to Terminated Employees who continue with the plans described in
this subsection 3.07(ii) a lump sum payment in an amount to be
determined by the Bank and specified in the Severance Agreement
executed in accordance with Section 3.09 below. This payment is
intended to be used in connection with payments by Terminated
Employees related to the plans described in this subsection
3.07(ii). Such lump sum payment shall be deemed to be part of the
Severance Benefits paid under this Plan.

 

(iii)
Any Employee eligible for Severance Benefits shall not be eligible, following the
Termination of his or her Employment, to continue to participate in
any plans (whether such plans contain a tax-deferred component or
otherwise) for which the Federal Home Loan Bank of New York
provides any kind or type of matching contribution.

 

(iv)
Any previously accrued vacation pay to which the Employee is
entitled will be paid to the Employee in a lump sum as soon as
practicable following the Termination of the Employee’s
Employment.

3.08 Outplacement
Services. Except in the event of a CIC, the Bank may, on a
case by case basis, but shall not be required to, provide
Outplacement Services to Terminated Employees eligible for
Severance Benefits under this Plan, the determination as to whether
to provide Outplacement Services to any Employee being within the
sole and exclusive discretion of the Plan Administrator; provided,
that such Outplacement Services shall not be provided to a
Terminated Employee beyond the last day of the second Year
following the Year in which the Termination of Employment of the
Employee occurred. Generally, individual counseling may be provided
only to Officers and group counseling may be provided to other
Exempt Employees and to Non-Exempt Employees.

 

 

4

 

 

In the
event of a CIC, the Bank will provide to Terminated Employees a
lump sum payment in the amount of $5,000 each that is intended to
be used for job search-related expenses. Such lump sum payment
shall be deemed to be part of the Severance Benefits paid under
this Plan.

 

3.09 Severance
Agreement. An Employee whose Employment with the Bank is
Terminated under conditions making the Employee eligible for
Severance Benefits under this Plan shall, as a condition of
receiving such Severance Benefits, be required to sign an
agreement, in the form prescribed by the Bank, setting forth the
terms on which Severance Benefits are to be paid or provided to the
Employee and the acceptance thereof by the Employee (the
“Severance Agreement”). The Severance Agreement shall
include a release of any claims the Employee may have, at the date
of the agreement or thereafter, against the Bank and any present
and former directors, officers, and employees of the
Bank.

 

3.10 Termination
of Employment. For all purposes of this Plan, the Employment
of an Employee shall be deemed to have been Terminated, and a
Termination of Employment of an Employee shall be deemed to have
occurred, upon the earliest to occur of the following
events:

 

(i)

On the
effective date of a RIF applicable to the Employee;

 

(ii)

On the
effective date of the Employee's Resignation from
Employment;

 

(iii)

On the
effective date of the elimination by the Bank of the Employee's
position;

 

(iv)

On the
effective date of the Employee’s termination of employment by
the Bank as a result of a CIC and the Employee has not
been offered an equivalent job with the resulting
entity;

 

(v)

On the
date on which (A) the Bank causes the Employee’s Employment
with the Bank to cease and (B) the Employee is considered to have
incurred a “separation from service” within the meaning
of Treas. Reg. § 1.409A-1(h); provided, that the Employment
relationship shall be treated as continuing while the Employee is
on a Qualified Leave (as defined below); and provided, further,
that if the leave is or becomes an Unqualified Leave (as defined
below), the Employment of the Employee shall be deemed to have
Terminated on the first date on which the leave is considered to be
an Unqualified Leave. For purposes of this Section 3.10(v), a
Qualified Leave is any (1) military leave, sick leave, or other
bona fide leave of absence (which shall be deemed to exist only if
there is a reasonable expectation that the Employee will return to
perform services for the Bank) if the period of such leave does not
exceed six (6) months, or longer, if the Employee retains a right
to reemployment with the Bank under an applicable statute or by
contract, or (2) any medically determinable physical or mental
impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than six (6)
months, where such impairment causes the Employee to be unable to
perform the duties of his position of Employment or any
substantially similar position of Employment, in which case such
period of absence may last up to twenty-nine (29) months. An
Unqualified Leave means a leave of absence that is not a Qualified
Leave or loses its status as a Qualified Leave due to the
expiration of the allowable Qualified Leave period of six (6)
months (or longer, if applicable, as described
above)..

 

3.11 Determinations
by the Plan Administrator to be Final. All determinations of
the Plan Administrator in the administration and application of the
terms and provisions of this Plan shall be final and binding upon
all Employees without any right of appeal.

 

3.12 Exceptional
Cases. The Bank reserves the right, in its sole and absolute
discretion, to modify the application of the terms and provisions
of this Plan in the case of any Employee whose Employment with the
Bank shall Terminate, subject to the approval of the President of
the Bank; provided, that the modifications will not cause a
violation of Section 409A of the Code.

 

 

5

Paul B.
Héroux

August
8, 2019

 

 

ARTICLE IV

 

GENERAL PROVISIONS

 

 

4.01 Allocation of
Responsibility for Administration. The designated representatives of the Bank shall
have only those specific powers, duties, responsibilities, and
obligations as are specifically given them under this Plan. The
Plan Administrator shall have the sole responsibility for the
administration of this Plan, which responsibility is specifically
described in this Plan. Any direction given, information furnished,
or action taken, by the Plan Administrator shall be in accordance
with the provisions of the Plan authorizing or providing for such
direction, information, or action. The Plan Administrator may rely
upon any such direction, information, or action of another employee
of the Bank as being proper under this Plan and is not required to
inquire into the propriety of any such direction, information, or
action. It is intended under this Plan that the Plan Administrator
shall be responsible for the proper exercise of his own powers,
duties, responsibilities, and obligations under this Plan and shall
not be responsible for any act or failure to act of another
employee of the Bank. Neither the Plan Administrator nor the Bank
makes any guarantee to any Employee in any manner for any loss or
other event because of the Employee's participation in this
Plan.

 

4.02  Appointment of Plan
Administrator. The Plan shall
be administered by the Plan Administrator or his duly designated
representative pursuant to Section 4.01.

 

4.03  Records and
Reports. The Plan Administrator
shall exercise such authority and responsibility as he deems
appropriate in order to comply with the terms of the Plan relating
to the records of the Participants. The Plan Administrator shall be
responsible for complying with any and all reporting, filing, and
disclosure requirements and other applicable laws and regulations
with respect to the Plan.

 

4.04   Withholding
Tax.                                

 

4.05  
Section 409A of the
Code. This Plan is intended to comply with Section 409A of
the Code or an exemption thereunder or exception therefrom, and
shall be construed and administered in accordance with Section 409A
of the Code or such exemption or exception, as applicable.
Notwithstanding any other provision of this Plan, if any payment
provided to an Employee in connection with the Employee’s
termination of employment is determined to constitute
“nonqualified deferred compensation” within the meaning
of Section 409A of the Code and the Employee is determined to be a
“specified employee” as defined in Section
409A(a)(2)(b)(i) of the Code, then such payment shall not be paid
until the first payroll date to occur following the six-month
anniversary of the termination date (the “Specified Employee
Payment Date”) or, if earlier, thirty days after the
Employee's death. The aggregate of any payments that would
otherwise have been paid before the Specified Employee Payment Date
shall be paid to the Executive in a lump sum on the Specified
Employee Payment Date. Notwithstanding the foregoing, the Bank
makes no representations that the payments and benefits provided
under this Plan comply with Section 409A of the Code and in no
event shall the Bank or its respective directors, officers,
employees, or advisors be liable for all or any portion of any
taxes, penalties, interest, or other expenses that may be incurred
by the Employee on account of non-compliance with Section 409A of
the Code.

 

4.06  Other Powers and
Duties of the Plan Administrator. The Plan Administrator shall have such duties
and powers as may be necessary to discharge his duties under
this Plan, including, but not limited
to, the following:

 

(a) 

to
prepare and distribute, in such manner as the Plan Administrator
determines to be appropriate, information explaining the
Plan;

 

(b) 

to
receive from the Bank and from Participants such information as
shall be necessary for the proper administration of the
Plan;

 

(c) 

to
furnish to the Bank, upon request, such annual reports with respect
to the administration of the Plan as are reasonable and
appropriate; and

 

(d)

to
appoint individuals to assist in the administration of the Plan and
any other agents he deems advisable, including, but not limited to,
legal and actuarial counsel.

 

 

The Plan Administrator shall have the exclusive discretionary
authority and power to determine eligibility for Severance Benefits
and to construe the terms and provisions of the Plan, determine
questions of fact and law arising under the Plan, direct
disbursements pursuant to the Plan, and exercise all other powers
specified herein or which may be implied from the provisions
hereof, and the Plan Administrator may adopt such standards and
procedures and such rules for the conduct of the administration of
the Plan as he may deem appropriate. When making a determination or
calculations, the Plan Administrator may rely upon information
furnished by an Employee, the Bank, or the legal counsel of the
Bank.

 

 

6

Paul B.
Héroux

August
8, 2019

 

 

ARTICLE V

 

MISCELLANEOUS

 

 

5.01 
At-Will
Employment. Employees’ employment remains at-will and
nothing contained in this Plan shall be construed as a contract of
employment between the Bank and any Employee, or as a right of any
Employee to be continued in the employ of the Bank, or as a
limitation of the right of the Bank to discharge any of its
Employees, with or without cause.

 

5.02 
Rights to Bank's
Assets. No Employee or other person shall have any right to,
or interest in, any assets of the Bank, whether upon Termination of
Employment or otherwise.

 

5.03 
Nonalienation of
Severance Benefits. Severance Benefits payable or other
rights or benefits provided under this Plan shall not be subject in
any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, charge, garnishment, execution, or levy of any
kind, either voluntary or involuntary, including any such liability
which is for alimony or other payments for the support of a spouse
or former spouse, or for any other relative of the Employee, prior
to actually being received by the person eligible for the benefit
under the terms of the Plan; and any attempt to anticipate,
alienate, sell, transfer, assign, pledge, encumber, charge, or
otherwise dispose of any right to Severance Benefits payable or
other rights or benefits provided under this Plan shall be void.
The Bank shall not in any manner be liable for, or subject to, the
debts, contracts, liabilities, engagements, or torts of any person
eligible for Severance Benefits or other rights or benefits
provided under this Plan.

 

5.04 
Divestment of Severance
Benefits. Subject only to the specific provisions of this
Plan, nothing shall be deemed to divest an Employee of a right to
the Severance Benefits or other rights or benefits provided for
which the Employee may be or become eligible in accordance with the
provisions of this Plan.

 

5.05 
Discontinuance of
Severance Benefits. In the event of a permanent
discontinuance of the Plan, or of any Severance Benefits
thereunder, all Employees shall receive any and all Severance
Benefits for which they were eligible as of the effective date of
such discontinuance.

 

5.06 
Construction.
Except where otherwise indicated or unless the context of this Plan
clearly requires otherwise, references to the plural include the
singular, references to the singular include the plural, and
references to any of the masculine, feminine, or neuter include
each of the similar masculine, feminine, or neuter, and the terms
“hereof,” “herein,” “hereby,”
“hereunder,” and all similar terms refer to this Plan
as a whole and not to any particular provision of this
Plan.

 

5.07 
Governing Law.
This Plan shall be construed, administered, and enforced according
to the laws of the State of New York.

 

 

 

7

Paul B.
Héroux

August
8, 2019

 

 

ARTICLE VI

 

AMENDMENTS AND PLAN TERMINATION

 

 

6.01 Termination, Modification, and
Amendment of the Plan. Notwithstanding anything to the
contrary stated in this Plan, the Bank expressly reserves the
right, at any time, for any reason, and without limitation, to
terminate, modify, or otherwise amend this Plan and any or all of
the Severance Benefits provided hereunder, either in whole or in
part, whether as to all persons covered hereby or as to one or more
groups thereof. Those rights include specifically, but are not
limited to, (i) the right to terminate Severance Benefits under
this Plan with respect to all, or any individual or group of,
Employees, (ii) the right to modify Severance Benefits under this
Plan to all, or any individual or group of, Employees, or (iii) the
right to amend this Plan, or any term or condition hereof; in each
case, whether or not such rights are exercised with respect to any
other Employees; provided, that no modification or amendment shall
be adopted by the Bank which shall adversely affect the treatment
for federal income tax purposes of benefits provided under this
Plan to Employees whose Employment is Terminated under conditions
entitling them to such benefits.

 

6.02 
Action by the
Bank. The termination, modification, or other amendment of
this Plan shall be effected by resolution of the Board of Directors
of the Bank.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

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