Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.07

THE FEDERAL HOME LOAN BANK

OF NEW YORK

NONQUALIFIED PROFIT SHARING PLAN

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	ARTICLE	 	PAGE	 
	 
	 	 	 	 	 	 
	I
	 	DEFINITIONS 	 	 	2	 
	 
	 	 	 	 	 	 
	II
	 	MEMBERSHIP 	 	 	4	 
	 
	 	 	 	 	 	 
	III
	 	AMOUNT AND PAYMENT OF BENEFITS 	 	 	5	 
	 
	 	 	 	 	 	 
	IV
	 	AMOUNT AND METHOD OF PAYMENT 	 	 	8	 
	 
	 	 	 	 	 	 
	V
	 	DESIGNATION OF BENEFICIARIES 	 	 	9	 
	 
	 	 	 	 	 	 
	VI
	 	ADMINISTRATION OF PLAN 	 	 	10	 
	 
	 	 	 	 	 	 
	VII
	 	AMENDMENT AND TERMINATION 	 	 	12	 
	 
	 	 	 	 	 	 
	VIII
	 	GENERAL PROVISIONS 	 	 	13	 
	 
	 	 	 	 	 	 

 

 

 

THE FEDERAL HOME LOAN BANK OF NEW YORK

NONQUALIFIED PROFIT SHARING PLAN

This Plan is adopted by the Federal Home Loan Bank of New York (the “Bank”) in order to
provide additional benefits to certain employees of the Bank who are ineligible for certain
benefits under the Pentegra Defined Benefit Plan for Financial Institutions, a qualified defined
benefit pension plan, as adopted by the Bank. This Plan is unfunded, and all benefits payable
under the Plan shall be paid solely out of the general assets of the Bank.

 

1

 

Article I. Definitions

When used in the Plan, the following terms shall have the following meanings:

1.01 “Bank” means the Federal Home Loan Bank of New York and each subsidiary or
affiliated company thereof which participate in the Plan.

1.02 “Bank Service” means service as an employee of the Bank from the commencement
date of employment by the Bank.

1.03 “Benefit Equalization Plan” means the Federal Home Loan Bank of New York Benefit
Equalization Plan as adopted by the Bank as of June 18, 1987, to be effective as of January 1,
1988, as the same has heretofore been and may hereafter be amended.

1.04 “BEP Committee” means the Benefit Equalization Plan Committee appointed by the
Board of Directors pursuant to Section 6.01 to administer the Plan.

1.05 “Board of Directors” or “Board” means the Board of Directors of the Bank.

1.06 “Compensation Committee” means the Compensation and Human Resources Committee of
the Board of Directors.

1.07 “Effective Date” means July 1, 2008.

1.08 “IRC” means the Internal Revenue Code of 1986, as amended from time to time, or
any successor thereto.

1.09 “Member” means any person included in the membership of the Plan as provided in
Article 2.

1.10 “Plan” means the Federal Home Loan Bank of New York Nonqualified Profit Sharing
Plan, as set forth herein and as amended from time to time.

 

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1.11 “Profit Sharing Benefit” means and refers to the benefit determined pursuant to
Article III.

1.12 “Profit Sharing Benefit Account” means and refers to the account maintained for
each Member pursuant to Section 3.02.

1.13 “Retirement Plan” means the Pentegra Defined Benefit Plan for Financial
Institutions, a qualified and tax-exempt defined benefit pension plan and trust under IRC Sections
401(a) and 501(a), as adopted by the Bank.

1.14 “Separation from Service” has the meaning set forth in Section 1.408A-1(h) of the
Regulations promulgated under IRC Section 409A.

 

3

 

Article II. Membership

2.01 Each employee of the Bank who is included in the membership of the Retirement Plan and
derives his benefit thereunder in whole or in part under the amended terms and conditions of the
Retirement Plan, as amended effective July 1, 2008, shall become a Member of the Plan on the latest
of (i) the date on which he shall have attained five (5) years of Bank Service, (ii) the date on
which he shall have become a Member of the Retirement Plan Component of the Benefit Equalization
Plan, and (iii) the Effective Date.

2.02 Notwithstanding any other provision of this Plan to the contrary, the BEP Committee, in
its sole and absolute discretion, shall exclude from membership and participation in the Plan any
employee who is not one of a select group of management and highly compensated employees, or who
does not meet such criteria and requirements for membership in the Plan as the BEP Committee shall
fix and determine.

 

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Article III. Amount and Payment of Benefits

3.01 For the calendar year 2008 and for each calendar year thereafter, the Members of the Plan
during such calendar year shall be credited with a Profit Sharing Benefit under the Plan in such
aggregate amount, if any, as the Compensation Committee shall determine in accordance with Section
3.02, based upon the evaluation by the Compensation Committee of the Bank’s performance of certain
Bank-wide performance goals used in the Bank’s Incentive Compensation Plan for such calendar year
established by the Board of Directors, or by such Committee as the Board of Directors shall
designate for that purpose, or such other performance criteria as may be established by the Board
of Directors or such Committee as the Board of Directors shall designate for that purpose, for such
calendar year, which determination shall be made by the Compensation Committee as soon as
practicable after the end of such calendar year.

3.02 The amount of the Profit Sharing Benefit with which a Member is credited for any calendar
year in accordance with Section 3.01 shall be determined as follows:

(a) If the Board of Directors, or such Committee as the Board of Directors shall designate, in
its sole and absolute discretion, determines that the Bank has achieved the threshold limits of
performance of the criteria established for such calendar year pursuant to Section 3.01, the amount
of the Profit Sharing Benefit with which each Member of the Plan who is such a Member at the
commencement of such calendar year shall be credited for such calendar year shall be equal to eight
percent (8%) of the Member’s Salary for such calendar year.

(b) If the Board of Directors, or such Committee as the Board of Directors shall designate, in
its sole and absolute discretion, determines that the Bank has not achieved the threshold level of
performance of such criteria established for such calendar year, no Member shall be credited with
any Profit Sharing Benefit for such calendar year.

(c) Notwithstanding any provision of paragraph (a) or (b) of this Section 3.02 above, the
Compensation Committee may credit such higher or lower amount of Profit
Sharing Benefit for any calendar year as it may determine, in its sole and absolute discretion, is
appropriate in light of all relevant facts and circumstances.

 

5

 

3.03 The Bank shall maintain a Profit Sharing Benefit Account on the books and records of the
Bank for each Member and shall credit to such Profit Sharing Benefit Account all Profit Sharing
Benefits with which such Member shall be credited, pursuant to Section 3.02, as soon as practicable
following the determination of the amount of such Profit Sharing Benefits by the Compensation
Committee in accordance with the provisions of Sections 3.01 and 3.02.

3.04 A Member shall not be entitled to a Profit Sharing Benefit under this Article III for any
calendar year unless, on the date the determination referred to in Section 3.02(a) is made by the
Compensation Committee, (i) he is an employee of the Bank and (ii) he is eligible to be a Member
under the provisions of Section 2.01; provided, that a Member whose employment during any calendar
year shall have ceased prior to the last day of such calendar year by reason of his death during
such calendar year shall be entitled to have credited to his Profit Sharing Benefit Account the
Profit Sharing Benefit that would have been credited to his Profit Sharing Benefit Account for such
calendar year but for his death.

3.05 There shall be credited to the Profit Sharing Benefit Account of each Member from time to
time notional interest at such rate or rates or in such amount or amounts as may be determined by
the BEP Committee in its sole and absolute discretion.

3.06 The right of any Member to receive all or any part of the amount credited to his Profit
Sharing Benefit Account shall be subject to the following vesting rules:

(a) Each Member shall have a vested and nonforfeitable right to the balance in his Profit
Sharing Benefit Account upon the earliest to occur of (i) his completion of five (5) years of Bank
Service, (ii) his attainment of his Normal Retirement Date, (iii) his attainment of his Disability
Retirement Date, or (iv) his death, in each case while he is an employee of the Bank. If a Member
has any Separation from Service with the Bank prior to the earliest to occur of such dates, neither
he nor any other person claiming in his right shall be entitled to any benefits under the Plan.

 

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(b) As used in the Plan, (i) “Salary” means the Member’s base salary for such calendar year
including any elective contribution the Member may make under Article 4 of the Benefit Equalization
Plan with respect to such calendar year and any award of benefits under the Bank’s Incentive
Compensation Plan made with respect to such calendar year and that a Member’s Salary for the
calendar year 2008 shall be deemed to be equal to fifty percent (50%) of his Salary for such
calendar year as determined without regard to this clause (b), and (ii) the terms “Normal
Retirement Date” and “Disability Retirement Date” shall have the same meanings given to them,
respectively, under the Retirement Plan.

3.07 The balance credited to the Profit Sharing Benefit Account of a Member who has met the
vesting rules in Section 3.06 shall be paid to him in a lump sum payment as soon as reasonably
practicable following his Separation from Service with the Bank, or at such other date or dates in
such other form as the Member shall have elected in writing on a form prescribed by the BEP
Committee which is filed by the Member with the BEP Committee within thirty (30) days following (i)
the Effective Date, in the case of a Member who is such on the Effective Date, or (ii) in the case
of a Member who becomes such after the Effective Date, the date on which he becomes a Member;
provided, that such balance credited to the Profit Sharing Benefits Account of a Member shall in no
event be payable earlier than the earliest of (i) the Member’s Separation from Service with the
Bank, (ii) the date of the Member’s death or (iii) the date the Member becomes disabled, within the
meaning of IRC Section 409A(a)(2)(c), and that the time or schedule of payments of the balance
credited to the Profit Sharing Benefit Account of a Member shall not be accelerated, except as
provided in Regulations promulgated pursuant to IRC Section 409A, nor shall any payment of benefits
under the Plan be deferred to a date other than the date fixed for such payment in this Article
III. If a Member dies while an employee of the Bank prior to receiving the balance credited to his
Profit Sharing Benefit Account, the balance in his Profit Sharing Benefit Account at the date of
the Member’s death shall be paid in a lump sum payment as soon as reasonably practicable following
the Member’s death in accordance with the provisions of Article V.

 

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Article IV. Source and Method of Payments

All payments of benefits under the Plan, shall be paid from, and shall only be a general claim
upon, the general assets of the Bank, notwithstanding that the Bank, in its discretion, may
establish a bookkeeping reserve or a grantor trust (as such term is used in IRC Sections 611
through 677) to reflect or to aid it in meeting its obligations under the Plan with respect to any
Member or prospective Member or beneficiary. No benefit whatever provided by the Plan shall be
payable from the assets of the Retirement Fund or the Thrift Plan. No Member shall have any right,
title or interest whatever in or to any investments which the Bank may make or any specific assets
which the Bank may reserve to aid it in meeting its obligations under the Plan.

 

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Article V. Designation of Beneficiaries

5.01 Each Member of the Plan may file with the BEP Committee a written designation of one or
more person as the beneficiary who shall be entitled to receive the amount, if any, payable under
the Plan upon his death. A Member may, from time to time, revoke or change his beneficiary
designation without the consent of any prior beneficiary by filing a new designation with the BEP
Committee. The last such written designation received by the BEP Committee shall be controlling;
provided, however, that no designation, or change or revocation thereof, shall be effective unless
received by the BEP Committee prior to the Member’s death, and in no even shall it be effective as
of a date prior to such receipt.

5.02 If no such beneficiary designation is in effect at the time of the Member’s death, or if
no designated beneficiary survives the Member, or if, in the opinion of the BEP Committee, such
designation conflicts with applicable law, the Member’s estate shall be deemed to have been
designated as his beneficiary and shall be paid the amount, if any, payable under the Plan upon the
Member’s death. If the BEP Committee is in doubt as to the right of any person to receive such
amount, the Committee may retain such amount, without liability for any interest thereon, until the
rights thereto are determined, or the BEP Committee may pay such amount into any court of
appropriate jurisdiction and such payment shall be a complete discharge of the liability of the
Plan and the Bank therefor.

 

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Article VI. Administration of the Plan

6.01 The Board of Directors has delegated to the BEP Committee, subject to those powers which
the Board has reserved to itself or to the Compensation Committee as described in Article III of
the Plan, general authority over and responsibility for the administration and interpretation of
the Plan. The BEP Committee shall have full power and authority to interpret and construe the
Plan, to make all determinations considered necessary or advisable for the administration of the
Plan and the calculation of the amount of benefits payable under the Plan, and to review claims for
benefits under the Plan. The BEP Committee’s interpretations and constructions of the Plan and its
decisions or actions thereunder shall be binding and conclusive on all persons for all purposes,
except to the extent of the powers which the Board has reserved to itself or to the Compensation
Committee referred to in the first sentence of this Section 6.01.

6.02 If the BEP Committee deems it advisable, it shall arrange for the engagement of legal
counsel and certified public accountants (who may be counsel to or accountants for the Bank) and
other consultants, and make use of agents and clerical or other personnel, for purposes of the
Plan. The BEP Committee may rely upon the written opinions of such counsel, accountants, and
consultants, and upon any information supplied by the Retirement Plan for purposes of Article III
of the Plan, and delegate to any agent or to any subcommittee or BEP Committee member its authority
to perform any act hereunder, including, without limitation, those matters involving the exercise
of discretion; provided, however, that such delegation shall be subject to revocation at any time
at the discretion of the BEP Committee. The BEP Committee shall report to the Compensation
Committee, or to a committee designated by the Board, at such intervals as shall be specified by
the Compensation Committee or such designated committee, with regard to the matters for which it is
responsible under the Plan.

 

10

 

6.03 All claims for benefits under the Plan shall be submitted in writing to the BEP
Committee. Written notice of the decision on each such claim shall be furnished with reasonable
promptness to the Member or his beneficiary (the “claimant”). The
claimant may request a review by the BEP Committee of any decision denying the claim in whole
or in part. Such request shall be made in writing and filed with the BEP Committee within 30 days
of such denial. A request for review shall contain all additional information which the claimant
wishes the BEP Committee to consider. The BEP Committee may hold any hearing or conduct any
independent investigation which it deems desirable to render its decision and the decision on
review shall be made as soon as feasible after the BEP Committee’s receipt of the request for
review. Written notice of the decision shall be furnished to the claimant. For all purposes under
the Plan, such decisions on claims (where no review is requested) and decisions on review (where
review is requested) shall be final, binding, and conclusive on all interested persons as to all
matters relating to the Plan.

6.04 All expenses incurred by the BEP Committee in its administration of the Plan shall be
paid by the Bank.

 

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Article VII. Amendment and Termination

The Board of Directors may amend, suspend, or terminate, in whole or in part, the Plan without
the consent of the BEP Committee or any Member, beneficiary or other person, except that no
amendment, suspension or termination shall retroactively impair or otherwise adversely affect the
rights of any Member, beneficiary or other person to benefits under the Plan which have vested
prior to the date of such action, as determined by the BEP Committee in its sole discretion. The
BEP Committee may adopt any amendment or take any other action which may be necessary or
appropriate to facilitate the administration, management and interpretation of the Plan or to
confirm the Plan thereto, provided any such amendment or action does not have a material effect on
the then currently estimated cost to the Bank of maintaining the Plan.

 

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Article VIII. General Provisions

8.01 The Plan shall be binding upon and inure to the benefit of the Bank, and its successors
and assigns, and the Members, and their successors, assigns, designees and estates. The Plan shall
also be binding upon and inure to the benefit of any successor organization succeeding to
substantially all of the assets and business of the Bank, but nothing in the Plan shall preclude
the Bank from merging or consolidating into or with, or transferring all or substantially all of
its assets to, another organization which assumes the Plan and all obligations of the Bank
hereunder. The Bank agrees that it will make appropriate provision for the preservation of
Members’ rights under the Plan in any agreement or plan which it may enter into effect any merger,
reorganization or transfer of assets and assumption of Plan obligations of the Bank, the term
“Bank” shall refer to such other organization and the Plan shall continue in full force and effect.

8.02 Neither the Plan nor any action taken thereunder shall be construed as giving to a Member
the right to be retained in the employ of the Bank or as affecting the right of the Bank to dismiss
any Member from its employ.

8.03 The Bank shall withhold or cause to be withheld from all benefits payable under the Plan
in all federal, state, local and other taxes required by applicable law be withheld with respect to
such payments.

8.04 No right or interest of a Member under the Plan may be assigned, sold, encumbered,
transferred or otherwise disposed of and any attempted disposition of such right or interest shall
be null and void.

8.05 If the BEP Committee shall find that any person to whom any amount is or was payable
under the Plan is unable to care for his affairs because of illness or accident, or is a minor, or
has died, then any payment, or any part thereof, due to such person or his estate (unless a prior
claim therefore has been made by a duly appointed legal representative), may, if the BEP Committee
is so inclined, be paid to such person’s spouse, child or other relative, an institution
maintaining or having custody of such person, or any other person deemed by the BEP Committee to be
a proper recipient on
behalf of such person otherwise entitled to payment. Any such payment shall be in complete
discharge of the liability of the Plan and the Bank therefore.

 

13

 

8.06 To the extent that any person acquires a right to receive payments from the Bank under
the Plan, such right shall be no greater than the right of an unsecured general creditor of the
Bank.

8.07 All elections, designations, requests, notices, instructions and other communications
from a Member, beneficiary or other person to the Committee required or permitted under the Plan
shall be in such form as is prescribed from time to time by the BEP Committee and shall be mailed
by first-class mail or delivered to such location as shall be specified by the BEP Committee and
shall be deemed to have been given and delivered only upon actual receipt thereof at such location.

8.08 The benefits payable under the Plan shall be in addition to all other benefits provided
for employees of the Bank and shall not be deemed salary or other compensation by the Bank for the
purpose of computing benefits to which he may be entitled under any other plan or arrangement of
the Bank.

8.09 No BEP Committee member shall be personally liable by reason of, any instrument executed
by him or on his behalf, or action taken by him, in his capacity as a BEP Committee member nor for
any mistake of judgment made in good faith. The Bank shall indemnify and hold harmless the
Retirement Plan and each BEP Committee member and each employee, officer or director of the Bank or
the Retirement Plan, to whom any duty, power, function or action in respect of the Plan may be
delegated or assigned, or from whom any information is requested for Plan purposes, against any
cost or expense (including fees of legal counsel) and liability (including any sum paid in
settlement of a claim or legal action with the approval of the Bank) arising out of anything done
or omitted to be done in connection with the Plan, unless arising out of such person’s fraud or bad
faith.

 

14

 

8.10 As used in the Plan, the masculine gender shall be deemed to refer to the feminine, and
the singular person shall be deemed to refer to the plural, wherever appropriate.

8.11 The captions preceding the sections of the Plan have been inserted solely as a matter of
convenience and shall not in any manner define or limit the scope or intent of any provisions of
the Plan.

8.12 The Plan shall be construed according to the laws of the State of New York in effect from
time to time.

 

15Filed by Bowne Pure Compliance

 

Exhibit 10.08

FEDERAL HOME LOAN BANK OF NEW YORK

SEVERANCE PAY PLAN

AS AMENDED EFFECTIVE JANUARY 1, 2008

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	ARTICLE	 	PAGE	 
	 
	 	 	 	 	 	 
	I
	 	DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	II
	 	ESTABLISHMENT OF THE PLAN	 	 	3	 
	 
	 	 	 	 	 	 
	III
	 	PROVISIONS RELATING TO SEVERANCE BENEFITS	 	 	4	 
	 
	 	 	 	 	 	 
	IV
	 	GENERAL PROVISIONS	 	 	9	 
	 
	 	 	 	 	 	 
	V
	 	MISCELLANEOUS	 	 	11	 
	 
	 	 	 	 	 	 
	VI
	 	AMENDMENTS AND PLAN TERMINATION	 	 	12	 

 i

 

 

 

ARTICLE I

DEFINITIONS

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

1.02 “Code” means and refers to the Internal Revenue Code of 1986, as amended.

1.03 “Date of Employment” means and refers to the date on which an individual was first
employed by the Bank as an Employee.

1.04 “Effective Date” means January 1, 2008.

1.05 “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.

1.06 “Employment” means and refers to the legal relationship of employment between an
Employee and the Bank.

1.07 “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.

1.08 “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.

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

1.10 “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.

1.11 “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.

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

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

 

1

 

1.14 “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.

1.15 “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.

1.16 “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.

1.17 “Severance Benefits” means and refers to 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 base weekly salary of the Employee immediately
preceding the date on which such Severance Benefits commence pursuant to Article III of this Plan.

1.18 “Termination of Employment” and “Terminated,” when used with reference to and in
conjunction with Employment, have the meaning set forth in Section 3.11.

1.19 “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) a violation
of established Bank policy or practice, or (iii) 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.

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

 

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ARTICLE II

ESTABLISHMENT OF THE PLAN

2.01 Establishment of the Plan. The Bank hereby amends 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, effective January 1, 2008.

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.

 

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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; or

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

(c) 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

(d) The Employee has Resigned from his or her Employment with the Bank either (i)
following a 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.

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 (d) 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 (d) 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 (d);

 

4

 

(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.

3.04 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 not less than six (6) 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 not less than four (4) 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 not less than two (2) 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 the lesser
of (i) thirty-six (36) weeks in the case of an Officer of the Bank, twenty-four (24) weeks
in the case of an Exempt Employee of the Bank, and twelve (12) weeks in the case of a Non-Exempt
Employee of the Bank, or (ii) two (2) times the lesser of (a) the sum of the Employee’s annualized
compensation based upon his annual rate of pay for services as an Employee for the Year preceding
the Year in which the Employment of the Employee by the Bank Terminated (adjusted for any increase
during that Year that was expected to continue indefinitely if the Employment of the Employee had
not Terminated) or (b) the maximum amount that may be taken into account under a qualified plan
pursuant to Section 401(a)(17) of the Code for the Year in which the Employment of the Employee
Terminated.

 

5

 

3.06 Method of Payment of Severance Benefits. The Severance Benefits payable under the
provisions of Section 3.04 shall be paid as salary, coinciding with the normal payroll cycle, for a
period of time equal to the number of weeks of Severance Benefits for which the Employee is
eligible, commencing with the first payroll period following the termination of employment of the
Employee and the receipt by the Bank of the agreement referred to in Section 3.10 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 provided, that, anything in this
Plan to the contrary notwithstanding, in no event shall any Severance Benefits be paid or payable
to any Employee later than the last day of the second Year following the Year in which the
Termination of Employment of the Employee occurred.

3.07 Termination of Severance Benefits. Anything in this Plan to the contrary notwithstanding, the
Severance Benefits for which an Employee is eligible under this Plan shall cease and terminate no
later than upon the Employee’s reemployment by the Bank or by an employer other than the Bank. The
Employee shall be responsible for notifying the Plan Administrator of his or her reemployment. If
the Employee is reemployed and fails to give notice to the Plan Administrator of his or her
reemployment, the Employee shall be liable for repayment to the Bank of any Severance Benefits
received under this Plan following the date of reemployment.

3.08 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, while receiving
Severance Benefits under this Plan, be eligible to continue such participation in such plan, (ii)
and 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 Medical Benefits Plan to which such plan relates, and who shall duly
and timely elect to continue such participation under the provisions of the Consolidated Omnibus
Budget Reconciliation Act of 1986, shall, while such continuation coverage election remains in
effect, be eligible to continue such participation, with the cost of such coverage to be borne by
the Bank, but such Employee shall not be eligible, following the Termination of his or her
Employment, to participate in the Federal Home Loan Bank of New York Flexible Benefits Plan. The
continued participation of such Employee in any of such plans under the provisions of this Section
3.08 shall continue only for so long as the Employee shall continue to be eligible for receive and
shall be receiving Severance Benefits under this Plan, which participation shall cease upon the
Employee’s reemployment or other termination of Severance Benefits. 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. Any cash advances which
were made to the Employee prior to the Termination of the Employee’s Employment will be subtracted
from any accrued vacation pay due to the Employee, and if no such accrued vacation pay is due to
the Employee, any such cash advances shall be required to be repaid by the Employee upon the
termination of the Employee’s employment as a condition of receiving the Severance Benefits
provided for under the provisions of Section 3.02.

 

6

 

3.09 Outplacement Services. 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.

3.10 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. Such 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.

3.11 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; and

(iv) On the date on which it is anticipated by the Bank and the Employee that no
further services will be performed by the Employee after such date (whether as an
Employee or as an independent contractor) or that the level of bona fide services
the Employee will perform after such date will permanently decrease to no more than
twenty percent (20%) of the average level of bona fide services performed (whether
as an Employee or an independent contractor) over the preceding thirty-six (36)
month period; provided, that the Employment relationship shall be treated as
continuing while the Employee is on 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, if longer, so long as the
Employee retains a right to reemployment with the Bank under an applicable statute
or by contract, unless the leave of absence is due to 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 a
twenty-nine (29) month period of absence may be substituted for such six (6) month
period; and provided, further, that if the period of leave described in the
preceding provision shall exceed six (6) months (or twenty-nine (29) months, if
applicable)
and the Employee does not retain a right to reemployment, the Employment of the
Employee shall be deemed to have Terminated on the first date following the end of
such period.

 

7

 

3.12 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.

3.13 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 nothing in this Section 3.13 shall be deemed to authorize or permit the
payment of Severance Benefits or the continuation of benefits described in Section 3.08 or 3.09 to
an Employee for a period that extends beyond the end of the second Year following the Year in which
the Termination of Employment of the Employee occurred; provided, that nothing herein shall
preclude the Bank from reimbursing an Employee for benefits incurred by the Employee during the
period described in the foregoing provision as long as such reimbursement is paid no later than the
third Year following the Year in which the Termination of Employment occurred or from reimbursing
an Employee for payments of medical expenses incurred and paid by the Employee and not reimbursed
by a person other than the Employee and allowable as a deduction under Section 213 of the Code
(disregarding the requirement of subsection (a) thereof that the deduction is available only to the
extent that such expenses exceed seven and one-half percent (7.5%) of adjusted gross income) during
a period for which the Employee is or would be entitled to continuation coverage under a group
health plan of the Bank under the Consolidated Omnibus Budget Reconciliation Act of 1986 if the
Employee elected such coverage and paid the applicable premiums. Anything in this Plan to the
contrary notwithstanding, the time or schedule of payments of any benefits provided under this Plan
shall not be accelerated, nor shall any payment of any benefits be deferred to a date other than
the date fixed for such payment; provided that the Bank reserves the right, in its sole and
absolute discretion, to pay in a lump sum upon the Termination of Employment any Severance Benefits
that may become payable to any Employee under the terms and provisions of this Plan to whom the
Bank shall, in its sole and absolute discretion, provide no contribution of employee benefits or
reimbursements pursuant to Section 3.08 or 3.09.

 

8

 

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 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.

 

9

 

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.

 

10

 

ARTICLE V

MISCELLANEOUS

5.01 Non-guarantee of Employment. 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.

 

11

 

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.

 

12

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