Document:

Exhibit 10.06

 

 

 

FEDERAL HOME LOAN BANK OF NEW YORK

 

SEVERANCE PAY PLAN

 

 

 

 

 

 

 

 

AS AMENDED AND RESTATED EFFECTIVE
September 19, 2019

 

     

     

    

 

TABLE OF CONTENTS

 

	 	ARTICLE	PAGE

 

	I	DEFINITIONS	 	1

 

	II	ESTABLISHMENT OF THE PLAN	 	4

 

	III	PROVISIONS RELATING TO SEVERANCE BENEFITS	 	5

 

	IV	GENERAL PROVISIONS	 	10

 

	V	MISCELLANEOUS	 	12

 

	VI	AMENDMENTS AND PLAN TERMINATION	 	13

 

    

     

    

 

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

     

    

 

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

 

    	 	2

     

    

 

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.

 

    	 	3

     

    

 

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).

 

    	 	4

     

    

 

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

 

    	 	5

     

    

 

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.

 

3.04            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.

 

    	 	6

     

    

 

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

 

    	 	7

     

    

 

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.

 

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

 

    	 	8

     

    

 

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.

 

    	 	9

     

    

 

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.     All amounts paid to the Employee under this Plan
shall be subject to withholding and other employment taxes imposed by applicable law. The Employee shall be solely responsible
for the payment of all taxes imposed on the Employee relating to the payment or provision of any amounts or benefits hereunder.

 

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

 

    	 	10

     

    

 

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.

 

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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.

 

    	 	12

     

    

 

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.

 

    	 	13Exhibit 10.08

 

THE FEDERAL HOME LOAN BANK

OF NEW YORK

NONQUALIFIED
DEFERRED INCENTIVE COMPENSATION PLAN

 

Effective January 1, 2020

 

    

     

    

 

TABLE OF CONTENTS

 

	 	ARTICLE	PAGE

 

	I.	DEFINITIONS	2
	 	 	 
	II.	MEMBERSHIP	4
	 	 	 
	III.	ELECTION TO DEFER PAYMENT OF COMPENSATION AND PAYMENT OF DEFERRED COMPENSATION	5
	 	 	 
	IV.	SOURCE AND METHOD OF PAYMENT	9
	 	 	 
	V.	DESIGNATION OF BENEFICIARIES	10
	 	 	 
	VI.	ADMINISTRATION OF PLAN	11
	 	 	 
	VII.	AMENDMENT AND TERMINATION	13
	 	 	 
	VIII.	GENERAL PROVISIONS	14

 

    

     

    

 

THE FEDERAL HOME LOAN BANK OF NEW YORK

 

NONQUALIFIED DEFERRED INCENTIVE COMPENSATION
PLAN

 

This Plan is adopted
by the Federal Home Loan Bank of New York (the "Bank") in order to provide benefits to certain management or highly compensated
employees of the Bank through the ability to defer the receipt of certain incentive compensation from 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       "Board
of Directors" or "Board" means the Board of Directors of the Bank.

 

1.03       “Business
Day” means and refers to a day on which commercial banks are open for business in the State of New York.

 

1.04       “Committee”
means the Nonqualified Plan Committee as that term is defined in the Bank’s separate Supplemental Executive Retirement Defined
Benefit & Defined Contribution Benefit Equalization Plan.

 

1.05       “Compensation”
means and includes any amounts actually payable by the Bank to a Member under the Incentive Plan for a particular calendar year.

 

1.06       “Compensation
Deferral Account” means and refers to the account maintained for each Member pursuant to Section 3.02.

 

1.07       “Compensation
Deferral Election Date” means the last Business Day in the calendar year 2016 and any calendar year thereafter during
which the Plan is in effect.

 

1.08       "Effective
Date" means January 1, 2017.

 

1.09       “Incentive
Plan” means any Board-approved annual or long-term incentive compensation plan, excluding any merit award, bonus program
or any payment arising from a separation.

 

1.10       "IRC"means the Internal Revenue Code of 1986, as amended from time to time, or any successor
thereto.

 

1.11       "Member"
means any person included in the membership of the Plan as provided in Article 2.

 

    	 	2	 

     

    

 

1.12       “Nonqualified Deferred
Compensation” shall have the same meaning as it has in IRC Section 409A and the Regulations promulgated thereunder.

 

1.13       “Officer”
means and includes any employee of the Bank serving at the rank of Vice President or higher.

 

1.14       "Plan"
means the Federal Home Loan Bank of New York Nonqualified Deferred Incentive Compensation Plan, as set forth herein and as amended
from time to time.

 

1.15       “Plan
Administrator” means the Director of Human Resources of the Bank or a designee(s).

 

1.16       "Separation
from Service" has the meaning set forth in Section 1.409A-1(h) of the Regulations promulgated under IRC Section 409A.

 

1.17       “Unforeseeable
Emergency” has the meaning set forth in Section 1.409A-3(i)(3)(i) of the Regulations promulgated under IRC Section 409A
or as amended. Under current regulations, Unforeseeable Emergency means a severe financial hardship of the Member resulting from
an illness or accident of the Member, the Member’s spouse, the Member’s beneficiary, or the Member’s dependent
(as defined in Code Section 152(a), without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)); loss of the Member’s
property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance);
imminent foreclosure of or eviction from the Member’s primary residence; the need to pay for medical expenses, including
non-refundable deductibles, as well as for the costs of prescription drug medication; the need to pay for the funeral expenses
of a spouse or a dependent (as defined in Code Section 152(a)) or other similar extraordinary and unforeseeable circumstances arising
as a result of events beyond the control of the Member.

 

    	 	3	 

     

    

 

Article II. Membership

 

2.01       Each
employee of the Bank who is an Officer (as defined above) of the Bank shall be eligible to become a Member of the Plan.

 

2.02       The
membership of any Officer shall terminate on the later of (i) the date on which the employee shall cease to be serving as an Officer
of the Bank (as defined above) and (ii) the termination of the Plan. The termination of membership in the Plan shall not, by itself,
affect the rights of the Member by reason of any election made by the Member as provided in Section 3.01 prior to the termination
of membership of such Member.

 

    	 	4	 

     

    

 

Article III. Election to Defer Payment of
Compensation and

Payment of Deferred
Compensation

 

3.01       On
or before the Compensation Deferral Election Date in the calendar year next preceding the calendar year 2017 and each calendar
year thereafter, each Member of the Plan shall be eligible to elect to defer the payment by the Bank and receipt by such Member
of up to 100% of the Compensation which otherwise would be earned and payable to such Member under the Incentive Plan in the calendar
year next following the calendar year in which such Compensation Deferral Election Date occurs to such date or dates and in such
form of payment as such Member shall designate and elect on a form provided by the Plan Administrator. Such election shall be deemed
to have been timely made and shall be effective when such election form shall have been signed by the Member and shall have been
received by the Plan Administrator or such person as shall be designated by the Plan Administrator for such purpose, provided such
receipt shall occur on or before the close of business of the Bank on the last Business Day of the calendar year next preceding
the calendar year in which such services are to be performed by the Member and to which such election relates. For the avoidance
of doubt, a Member may make one election with respect to all payments that would otherwise be payable in the next
or future years under the Incentive Plan, and such election shall be applied to all incentive monies actually paid in a
year.

 

3.02       Compensation
deferred by a Member of the Plan for any calendar year pursuant to a timely election made as provided in Section 3.01 shall be
credited on the books and records of the Bank to a Compensation Deferral Account for such Member as soon as practicable following
the date on which such Compensation would have been paid to such Member but for the election made by such Member pursuant to Section
3.01 to defer the payment and receipt of such Compensation.

 

    	 	5	 

     

    

 

3.03       If
a Member dies or becomes disabled (within the meaning of IRC Section 409A(a)(2)(c)) prior to receiving the balance credited to
his Compensation Deferral Account, the balance in his Compensation Deferral Account at the time of the Member’s death shall
be paid, in the event of his death, to his Beneficiary or, in the event of his disability, to him, in a lump sum payment as soon
as reasonably practicable after his death or disability, as applicable.

 

3.04       The
balance credited to the Compensation Deferral Account of a Member shall be paid to such Member at such date or dates or in such
form as the Member shall have made a timely election in writing pursuant to Section 3.01; provided, that no part of such balance
credited to the Compensation Deferral Account of a Member shall 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 Compensation Deferral Account
of a Member shall not be accelerated, except as provided in Section 3.05 or 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 such
timely election; provided, that a Member may, by a subsequent election, as defined in Section 1.409A-2(b)(1) of the Regulations
promulgated pursuant to IRC Section 409A, delay the time or change the form of a payment of all or any part of the balance credited
to the Member’s Compensation Deferral Account if, and only if, such subsequent election meets all of the following requirements:
(i) such election shall not be made less than twelve (12) months prior to the date of the first scheduled payment of the balance
credited to the Member’s thrift benefit account; (ii) such election shall not take effect until at least twelve (12) months
after the date on which the election is made; (iii) the payment with respect to which such election is made shall be deferred for
a period of not less than five (5) years from the date such payment would otherwise have been made; and (iv) such election shall
comply with any and all other requirements of such Regulations applicable thereto.

 

    	 	6	 

     

    

 

If no election is made
or if the election is not timely or properly made, distribution will be made in the form of a single lump sum payment. An election
as to the manner of payment may not be changed after the payment has been made or payments have commenced. Prior to that time,
a Member may change his election by filing a new election form with the Plan Administrator; provided, however, that: (i) the new
election will not take effect until at least 12 months after the date the new election is filed; (ii) the single lump sum payment
or the commencement of installment payments with respect to which such election is made must be deferred for a period of not less
than five years from the date such payment would otherwise have been made; and (iii) the new election is filed at least 12 months
prior to the date of the first scheduled payment under the Plan.

 

If installment distributions
are elected, the initial installment amount will be the account balance otherwise payable in a single sum multiplied by a fraction,
the numerator of which is one and the denominator of which is the total number of installment payments. Subsequent installments
will also be a fraction of the unpaid account balance, the numerator of which is always one but the denominator of which is the
denominator used in calculating the previous installment minus one. For example, if five installment payments are elected, the
initial installment will be one-fifth of the single sum account balance, the second will be one-fourth the remaining account balance,
the third installment will be one-third the remaining account balance, and so on. The account will continue to earn a return based
on the gains and losses related to the investment choices of the Member.

 

If the Member’s
account balance upon eligibility for election disbursements is less than $10,000, then the entire amount will be paid in a single
lump sum payment regardless of the Member’s payment election.

 

    	 	7	 

     

    

 

3.05       Upon
a finding that the Member has suffered an Unforeseeable Emergency, subject to compliance with IRC Section 409A the Plan Administrator
may, at the request of the Member, accelerate distribution of benefits or approve reduction or cessation of current deferrals under
Section 3.01 in the amount reasonably necessary to alleviate such Unforeseeable Emergency, subject to the following conditions:
(i) the request to take this type of distribution shall be made by filing a form provided by and filed with the Plan Administrator
prior to the end of any calendar month; (ii) the amount distributed pursuant to this Section 3.05 with respect to an Unforeseeable
Emergency shall not exceed the amount necessary to satisfy such financial emergency plus amounts necessary to pay taxes reasonably
anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved
through reimbursement or compensation by insurance or otherwise, by liquidation of the Member's assets (to the extent the liquidation
of such assets would not itself cause severe financial hardship), or by cessation of deferrals under Section 3.01; and (iii) the
amount determined by the Plan Administrator as the distribution shall be paid in a lump sum as soon as practicable after the end
of the calendar month in which this special distribution election is made and approved by the Plan Administrator.

 

3.06       The balance credited to the Compensation Deferral Account of each Member from time to time (and each subaccount, if any, thereof)
shall be determined by the Plan Administrator by taking into account gains and losses realized or incurred by such Compensation
Deferral Account (or subaccount thereof) to the date of determination and payment thereof based upon the investment of such balance
in such investments as such Member shall designate, from time to time, in such manner as the Plan Administrator shall direct, from
among investment alternatives provided by the Plan servicer.

 

    	 	8	 

     

    

 

Article IV. Source and Method of Payment

 

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 671 through
677) to reflect or to aid it in meeting its obligations under the Plan with respect to any Member or the beneficiary of a Member.
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.

 

    	 	9	 

     

    

 

Article V. Designation of Beneficiaries

 

5.01       Each
Member of the Plan may file with the Plan Administrator a written designation of one or more persons as the beneficiary or beneficiaries
of such Member who shall be entitled to receive the amount, if any, payable under the Plan to such Member following his death.
A Member may, from time to time, without the consent of any prior beneficiary, revoke or change the beneficiary designation made
by such Member by filing a new designation of beneficiary with the Plan Administrator. The last such written designation received
by the Plan Administrator shall be controlling; provided, however, that no designation, or change or revocation thereof, shall
be effective unless received by the Plan Administrator prior to the Member's death, and in no event 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 Plan Administrator, 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 Plan Administrator is in doubt as to the right of any person to receive such amount, the Bank may retain such amount, without
liability for any interest thereon, until the rights thereto are determined, or the Bank 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.

 

    	 	10	 

     

    

 

Article VI. Administration of Plan

 

6.01       The
Board of Directors has delegated to the Plan Administrator, subject to those powers, if any, which the Board has reserved to itself,
general authority over and responsibility for the administration and interpretation of the Plan. The Plan Administrator 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 any trust referred to in Article V of the Plan and the calculation of the amount of Deferred Compensation
payable under the Plan, and to review claims for benefits under the Plan. The interpretations and constructions of the Plan by
the Plan Administrator and his decisions or actions thereunder shall be binding and conclusive on all persons for all purposes,
except to the extent of the powers, if any, which the Board has reserved to itself.

 

6.02       If
the Plan Administrator 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 Plan Administrator 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 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 Plan Administrator. The Plan
Administrator shall report to the Board, or to a committee designated by the Board, at such intervals as shall be specified by
the Board or such designated committee, with regard to the matters for which he is responsible under the Plan.

 

6.03       All
claims for payments under the Plan shall be submitted in writing to the Plan Administrator. Written notice of the decision on each
such claim shall be furnished with reasonable promptness to the Member or the Member’s beneficiary (the "claimant").
The claimant

 

    	 	11	 

     

    

 

may request a review by the Committee of any decision denying the claim in whole or in part. Such request shall be
made in writing and filed with the Committee within thirty (30) days following such denial. A request for review shall contain
all additional information which the claimant wishes the Committee to consider. The Committee may hold any hearing or conduct any
independent investigation which he deems desirable to render its decision, and the decision on review shall be made as soon as
practicable after the Committee’s receipt of the request for review. Written notice of the decision shall be furnished to
the claimant and reported to the Plan Administrator. 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 Bank, the Plan Administrator or the Committee in their administration of the Plan shall be paid by the
Bank.

 

    	 	12	 

     

    

 

Article VII. Amendment and Termination

 

The Board of Directors
may amend, suspend, or terminate the Plan, in whole or in part, without the consent of the Plan Administrator 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 under the Plan which shall have accrued prior to the date of such action,
as determined by the Plan Administrator in his sole discretion. The Plan Administrator may take any action which the Plan Administrator
may deem necessary or appropriate to facilitate the administration, management, and interpretation of the Plan or to conform the
Plan thereto, provided any such action does not have a material effect on the then-currently estimated cost to the Bank of maintaining
the Plan.

 

Notwithstanding termination
of this Plan, benefits under the separate Federal Home Loan Bank of New York Amended and Restated Supplemental Executive Retirement
Defined Benefit & Defined Contribution Benefit Equalization Plan shall continue to be payable in accordance with the terms
of that plan.

 

    	 	13	 

     

    

 

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, that the term "Bank" shall refer to such other organization, and that the Plan shall continue
in full force and effect until terminated pursuant to Article VII.

 

8.02       Neither
the Plan nor any action taken thereunder shall be construed as giving to any 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 amounts payable under the Plan any and all federal, state, local, and other
taxes required by applicable law to 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 Plan Administrator 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 therefor has been made by a duly appointed legal representative), may, if the Plan

 

    	 	14	 

     

    

 

Administrator
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 Plan Administrator 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 therefor.

 

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 Plan Administrator required or permitted under the Plan shall be in such form as is prescribed from time to time by the
Plan Administrator and shall be mailed by first-class mail (except in the case of elections made pursuant to Section 3.01) or delivered
to such location as shall be specified by the Plan Administrator and shall be deemed to have been given and delivered only upon
actual receipt thereof at such location.

 

8.08       The
Plan Administrator and the Committee shall not be personally liable by reason of any instrument executed by them or on their behalf,
or action taken by them, in their capacities under this Plan, nor for any mistake of judgment made in good faith. The Bank shall
indemnify and hold harmless each Plan Administrator and each employee, officer, or director of the Bank 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.

 

8.09       In
the event the Bank in error makes an overpayment, the Member agrees that the Bank, with notice to the Member, may charge the account
back.

 

    	 	15	 

     

    

 

8.10       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.

 

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

 

The Federal Home Loan
Bank of New York Nonqualified Deferred Incentive Compensation Plan has been duly adopted by the Bank this 5th day of December,
2016, to be effective as of January 1, 2017.

 

	 	FEDERAL HOME LOAN BANK OF NEW YORK
	 	 
	 	 
	 	By:	/s/ Mildred Tse-Gonzalez
	 	 	Director of HR

 

	Attest:
	 
	/s/ Brian Finnegan	 
	Corporate Secretary

 

    	 	16

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