Document:

Agreement Henry B. Barron Jr.

 EXHIBIT 10.2 
 AGREEMENT 
 This Agreement (the “Agreement”), which is effective as of
March 31, 2008, is entered into by and between Henry B. Barron, Jr. (the “Executive”) and Duke Energy Corporation, together with its subsidiaries and/or affiliated entities, predecessors, successors or assigns to the foregoing
(individually and collectively, “Duke Energy”), with the mutual exchange of promises as consideration (collectively, the “Parties”). 
 Recitals 
 WHEREAS, the Executive retired on March 31, 2008 (the “Retirement
Date”) at which time his employment with Duke Energy terminated; 
 WHEREAS, in connection with the Executive’s retirement, Duke
Energy is willing to provide certain consideration to the Executive, provided that the Executive (i) executes this Agreement, and (ii) upon presentation by Duke Energy, executes and does not timely revoke a waiver and release, in the form
attached to this Agreement as Exhibit A (the “Release”), of all claims that the Executive might assert against Duke Energy and certain other entities and individuals as set forth therein; and 
 WHEREAS, the Parties have agreed to enter into this Agreement, which has been specifically negotiated between the Executive and Duke Energy. 

NOW, THEREFORE, Duke Energy and the Executive enter into the following Agreement: 
 1. Duke Energy’s Waiver. Duke Energy agrees to waive its right to enforce the non-compete provisions and the dividend repayment obligations
contained in the equity awards granted to the Executive under the Duke Energy Corporation 1998 Long-Term Incentive Plan and the Duke Energy Corporation 2006 Long-Term Incentive Plan (the “Equity Grants”). 
 2. Executive’s Waiver of Claims. The Executive agrees to waive all claims that the Executive might assert against Duke Energy and certain
other entities and individuals by executing a waiver in the form of the Release upon Duke Energy’s provision of such document. 
 3.
Breach of This Agreement or the Release of Claims. In the event the Executive breaches the terms of this Agreement, fails to execute the Release, revokes his execution of the Release or brings a claim waived in the Release, Duke Energy’s
waiver of its right to enforce the non-compete and the dividend repayment obligations contained in the Equity Awards shall be null and void and the Executive will be required to immediately repay Duke Energy the $115,600 of dividends paid in
connection with the restricted stock award granted to the Executive on February 1, 2006. In the event that Duke Energy breaches its obligations under this Agreement, any future obligation of the Executive for the repayment of the
above-mentioned dividends shall be null and void. 
  

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 4. Restrictive Covenants. 
 a. Non-Solicitation. The Executive agrees that during the period beginning on the Retirement Date and ending on April 4, 2011 (the
“Restriction Period”), he will not in any manner, directly or indirectly, induce or attempt to induce any employee of Duke Energy to quit or abandon his or her employment with Duke Energy. This restriction is not intended to prohibit the
Executive’s future employer(s) from hiring, or the Executive from participating in the hiring of, any Duke Energy employees who respond to or apply for posted or advertised openings with Executive’s future employer(s), or who independently
pursue opportunities with the Executive’s future employer(s). 
 b. Non-Disparagement. Except as required by subpoena or other
legal process (in which event the Executive will give the Chief Legal Officer of Duke Energy Corporation prompt notice of such subpoena or other legal process in order to permit Duke Energy or any affected individual to seek appropriate protective
orders), the Executive further agrees that he will refrain from publishing or providing any oral or written statements about Duke Energy, about any program or policy or initiative of Duke Energy, or about any individual who, at anytime during the
period January 1, 2005 through the Retirement Date, served as an executive officer (i.e., an officer subject to the reporting requirements of Section 16(a) of the Securities Exchange Act of 1934, as amended) and/or a member of the
Board of Directors of Duke Energy Corporation or its predecessors relating to the performance of any such individual of his or her duties for Duke Energy or anything about him or her personally, which could impact his or her reputation or standing
in the community, that are disparaging, slanderous, libelous or defamatory, or that constitute a misappropriation of the name or likeness of any above-mentioned party. Within 30 days of receipt of a written request from the Executive, Duke Energy
agrees to provide the Executive with a list of the current and former executive officers and/or members of the Board of Directors of Duke Energy Corporation or its predecessors that are covered by the non-disparagement covenant set forth in the
immediately preceding sentence. Similarly, except as required by subpoena or other legal process (in which event Duke Energy will give the Executive prompt notice of such subpoena or other legal process in order to permit Executive to seek
appropriate protective orders), Duke Energy further agrees that it will not publish or make any oral or written statements about the Executive regarding the performance of his duties as a Duke Energy employee or otherwise regarding his employment
with Duke Energy, or anything about him or his family personally, which could impact his reputation or standing in the community, that are disparaging, slanderous, libelous or defamatory, or that constitute a misappropriation of the name or likeness
of the Executive. In the event that Duke Energy breaches this covenant, the Executive has the right to respond to those statements and/or defend himself as necessary and appropriate. In the event that the Executive breaches this covenant, Duke
Energy has the right to respond to respond to those statements and/or defend itself as necessary and appropriate. 
  

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 5. Nondisclosure of Confidential Information. The Executive acknowledges that the information,
observations and data obtained by him while employed by Duke Energy concerning the business or affairs of Duke Energy (unless and except to the extent the foregoing become generally known to or available for use by other members of the nuclear power
industry other than as a result of the Executive’s acts or omissions to act) (hereinafter defined as “Confidential Information”) are the property of Duke Energy and he was and is prohibited from using, disclosing or misappropriating
(on behalf of himself or any other person or entity) such Confidential Information during and after the separation of his employment from Duke Energy. For purposes of clarity, the fact of, or any information regarding any investigation undertaken by
Duke Energy or completed on Duke Energy’s behalf regarding Duke Energy’s business or the conduct of Duke Energy’s business relating to legal, compliance, or risk management issues shall be deemed Confidential Information unless and
except to the extent the foregoing become generally known to and available for use by the public other than as a result of the Executive’s acts or omissions to act. Therefore, the Executive agrees that he shall not use or disclose any
Confidential Information without the prior written consent of the Chief Legal Officer or the Chief Executive Officer of Duke Energy Corporation (which may be withheld for any reason or no reason) unless and except to the extent that such disclosure
is required by any subpoena or other legal process (in which event the Executive will give the Chief Legal Officer of Duke Energy Corporation prompt notice of such subpoena or other legal process in order to permit Duke Energy to seek appropriate
protective orders). The Executive’s obligations under this Section 5 are in addition to, and not in limitation of or preemption of, all other obligations of confidentiality which the Executive may have to Duke Energy under general legal or
equitable principles, and federal, state or local law. The Parties acknowledge and agree that, notwithstanding any other provision of this Agreement, Executive remains free to report or otherwise communicate any nuclear safety concern, any work
place safety concern, or any public safety concern to the Nuclear Regulatory Commission, United States Department of Labor or any other appropriate federal or state government agency. 
 6. Intellectual Property. The Executive acknowledges that any and all writing, documents, inventions (whether or not patentable), discoveries,
trade secrets, computer programs or instructions (whether in source code, object code, or any other form), algorithms, formulae, plans, customer lists, memoranda, tests, research, designs, specifications, models, data, diagrams, flow charts, and/or
techniques (whether reduced to written form or otherwise) that the Executive made, conceived, discovered or developed either solely or jointly with any other person, at any time during the term of his employment, whether during working hours or at
Duke Energy’s facilities or at any other time or location, and whether upon the request or suggestion of Duke Energy or otherwise, that relate to or are useful in any way in connection with any business carried on by Duke 

  

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Energy (collectively, “Intellectual Work Product”) will be the sole and exclusive property of Duke Energy. The Executive will promptly and fully
disclose all Intellectual Work Product to Duke Energy. Any Intellectual Work Product not generally known to or available for use by the other members of the nuclear power industry shall be considered to be Confidential Information as defined herein.
The Executive acknowledges that all Intellectual Work Product that is copyrightable will be considered a work made for hire under United States Copyright Law. To the extent that any copyrightable Intellectual Work Product may not be considered a
work made for hire under the applicable provisions of the Copyright Law, or to the extent that, notwithstanding the foregoing provisions, the Executive may retain an interest in any Intellectual Work Product that is not copyrightable, the Executive
hereby irrevocably assigns and transfers to Duke Energy any and all right, title, or interest that the Executive may have in the Intellectual Work Product under copyright, patent, trade secret and trademark law, in perpetuity or for the longest
period otherwise permitted by law, without the necessity of further consideration. Duke Energy will be entitled to obtain and hold in its own name all copyrights, patents, trade secrets and trademarks with respect thereto. At the sole request and
expense of Duke Energy, the Executive will assist Duke Energy in acquiring and maintaining copyright, patent, trade secret and trademark protection upon, and confirming its title to, such Intellectual Work Product. The Executive’s assistance
will include signing all applications for copyright and patent applications and other papers, cooperating in legal proceedings and taking any other steps considered desirable by Duke Energy. The Executive and Duke Energy are not aware of any
Intellectual Work Product developed by Executive while employed by Duke Energy, either alone or in conjunction with other Duke Energy employees or agents. Duke Energy acknowledges and agrees that this Section 6 does not apply to intellectual
property developed by the Executive after the Retirement Date. 
 7. Acknowledgement. Executive acknowledges and agrees that his
obligations under this Agreement are in addition to, and not in limitation of or preemption of, (a) all other obligations of confidentiality and/or otherwise which Executive may have to Duke Energy as Executive’s employer and/or former
employer, and (b) all rights and/or protections afforded Duke Energy as Executive’s employer and/or former employer, under general legal or equitable principles, and federal, state or local law, including, but not limited to, the North
Carolina Trade Secrets Protection Act. 
 8. Adequate Consideration. The Executive agrees that the benefits described in this
Agreement constitute good, valuable and sufficient consideration and exceed in kind and scope that to which the Executive would otherwise have been legally entitled. 
 9. Governing Law. This Agreement shall be interpreted, construed and governed according to the laws of the State of North Carolina, without reference to conflicts of law principles thereof. 
  

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 10. Severability. It is understood by Executive and Duke Energy that if any part of this Agreement
is held by a court to be invalid, the remaining portions shall not be affected. 
 IN WITNESS WHEREOF, the Parties have caused this Agreement
to be executed, effective as of the date first written above. 
  

							
	DUKE ENERGY CORPORATION	 		 	EXECUTIVE
			
	  
	 		 	  

	By:	 	Marc E. Manly	 		 	Henry B. Barron, Jr.
	Its:	 	Group Executive and Chief Legal Officer	 		 	

  

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 EXHIBIT A 
 IMPORTANT NOTICE-READ BEFORE SIGNING RELEASE OF CLAIMS 
 Before signing the Release in order to receive severance
benefits, you should be aware that a proposed class action is pending in federal district court in South Carolina. It alleges violations of the Age Discrimination in Employment Act and the Employee Retirement Income Security Act (“ERISA”)
arising out of the conversion of the Duke Power Company Employees’ Retirement Plan into the Duke Power Company Retirement Cash Balance Plan and the administration of the Duke Energy Cash Balance Retirement Plan. The plaintiffs seek to represent
a proposed class defined as “all present and/or former employees of Duke Energy who participated in the Duke Energy Retirement Cash Balance Plan on or after January 1, 1997.” The case is entitled George et al. v. Duke Energy Cash
Balance Retirement Plan and Duke Energy Corporation, Case No. 806-cv-00373-HFF (“George”). Please note that if you sign and do not revoke the Release within the specified time, the Company will take the position as specified in
paragraph 7 of the Release that you have waived your potential claims and damages in that lawsuit. THE COMPANY STRONGLY ADVISES YOU TO CONSULT LEGAL COUNSEL BEFORE SIGNING THE RELEASE. The lawyers who filed the class action are as follows:

  

					
		 	James R. Gilreath	 	
		 	William M. Hogan	 	
		 	THE GILREATH LAW FIRM, P.A.	 	
		 	 110 Lavinia Avenue
 P. O. Box 2147
 Greenville, SC 29602
	 	
		 	(864) 242-4727	 	
			
		 	Charles W. Whetstone, Jr.	 	
		 	 Cheryl F. Perkins
 WHETSTONE
MYERS PERKINS & YOUNG LLC

		 	 1303 Blanding Street (29201)
 P. O. Box 8086

Columbia, SC 20202
	 	
		 	(893) 799-9400	 	
			
		 	Mona Lisa Wallace	 	
		 	WALLACE & GRAHAM, P.A.	 	
		 	 525 North Main Street
 Salisbury, North Carolina 28144

	 	
		 	(704) 633-5244	 	

 EXHIBIT A 
  

					
		 	Carl F. Muller	 	
		 	Andrew B. Cogburn	 	
		 	Wallace Lightsey	 	
		 	 WYCHE, BURGESS, FREEMAN
 & PARHAM,
P.A.
	 	
		 	 44 East Camperdown Way
 Greenville, SC
29601
	 	
		 	(864) 242-8200	 	
			
		 	A. Hoyt Rowell, III	 	
		 	Daniel O. Myers	 	
		 	T. Christopher Tuck	 	
		 	Robert S. Wood	 	
		 	RICHARDSON, PATRICK
WESTBROOK & BRICKMAN, LLC	 	
		 	 P.O. Box 1007
 Mt. Pleasant, SC 29465
	 	
		 	(843) 727-6500	 	

 EXHIBIT A 
  

 RELEASE OF CLAIMS 
 This RELEASE OF CLAIMS (the “Release”) is executed and delivered by Henry B. Barron, Jr. (the “Executive”) to DUKE ENERGY CORPORATION
(together with its Affiliates and any successors thereto, the “Company”). The term “Company” in this Release also includes any employee benefit plan established or maintained by Duke Energy Corporation or any of its Affiliates,
and any administrator, trustee, fiduciary or service provider of any such plan). 
 In consideration of the agreement by the Company to waive
certain rights as set forth in the agreement between Executive and the Company dated March 31, 2008 (the “Agreement”), which the Executive acknowledges is consideration to which he would not otherwise be entitled, the Executive hereby
agrees as follows: 
 Section 1. Release and Covenant. The Executive, of his own free will, voluntarily and unconditionally
releases and forever discharges the Company, its subsidiaries, parents, affiliates, their directors, officers, employees, agents, stockholders, successors and assigns (both individually and in their official capacities with the Company) (the
“Company Releasees”) from any and all past or present causes of action, suits, agreements or other claims which the Executive, his dependents, relatives, heirs, executors, administrators, successors and assigns has or may hereafter have
from the beginning of time to the date hereof against the Company or the Company Releasees upon or by reason of any matter, cause or thing whatsoever, including, but not limited to, any matters arising out of his employment by the Company and the
cessation of said employment, and including, but not limited to, any alleged violation of the Civil Rights Acts of 1964 and 1991, the Equal Pay Act of 1963, the Employee Retirement Income Security Act of 1974, the Age Discrimination in Employment
Act of 1967, the Rehabilitation Act of 1973, the Older Workers Benefit Protection Act of 1990, the Americans with Disabilities Act of 1990 and any other federal, state or local law, regulation or ordinance, or public policy, contract or tort law
having any bearing whatsoever on the terms and conditions of employment or termination of employment. This Release shall not, however, constitute a waiver of any of the Executive’s rights under the Agreement nor a waiver of any claims that
might arise after the date the Release is signed. 
 Section 2. Due Care. The Executive acknowledges that he has received a copy
of this Release prior to its execution and has been advised hereby of his opportunity to review and consider this Release for 21 days prior to its execution. The Executive further acknowledges that he has been advised hereby to consult with an
attorney prior to executing this Release. The Executive enters into this Release having freely and knowingly elected, after due consideration, to execute this Release and to fulfill the promises set forth herein. This Release shall be revocable by
the Executive during the 7-day period following its execution, and shall not become effective or enforceable until the expiration of such 7-day period. In the event of such a revocation, the Executive shall not be entitled to the consideration for
this Release set forth above. 

 EXHIBIT A 
  

 Section 3. Nonassignment of Claims; Proceedings. The Executive represents and warrants
that there has been no assignment or other transfer of any interest in any claim which the Executive may have against the Company or any of the Company Releasees. The Executive represents that he has not commenced or joined in any claim, charge,
action or proceeding whatsoever against the Company or any of the Company Releasees arising out of or relating to any of the matters set forth in this Release. The Executive further agrees that he will not seek or be entitled to any personal
recovery in any claim, charge, action or proceeding whatsoever against the Company or any of the Company Releasees for any of the matters set forth in this Release. 
 Section 4. Reliance by Employee. The Executive acknowledges that, in his decision to enter into this Release, he has not relied on any representations, promises or agreements of any kind, including oral
statements by representatives of the Company or any of the Company Releasees, except as set forth in this Release and the Letter Agreement. 
 Section 5. Nonadmission. Nothing contained in this Release will be deemed or construed as an admission of wrongdoing or liability on the part of the Company or any of the Company Releasees. 
 Section 6. Communication of Safety Concerns. Notwithstanding any other provision of this Release and the Agreement, the Executive remains
free to report any suspected instance of illegal activity of any nature, any nuclear safety concern, any workplace safety concern, or any public safety concern to the United States Nuclear Regulatory Commission, the United States Department of
Labor, or any other federal or state governmental agency. Further, nothing in this Release or the Agreement prohibits the Executive from participating in any way in any state or federal administrative, judicial or legislative proceeding or
investigation or filing a charge of discrimination with an administrative agency, provided, however, that should an agency pursue any claims on the Executive’s behalf, by signing and not revoking this Release the Executive has
waived his right to any recovery, monetary or otherwise. Should the Executive receive a subpoena in connection with any federal or state administrative, judicial, or legislative proceeding involving the Company, the Executive shall, if permitted by
law, provide the Company with notice of the subpoena, including a copy of the subpoena, with twenty-four (24) hours of receipt of the subpoena. The notice shall be provided to Duke Energy Corporation’s Chief Legal Officer. 
 Section 7. Cash Balance Litigation. Executive may or may not know that a class action lawsuit was commenced on February 6, 2006.
Here is the caption of that case: Kenneth Walton George, Dennis Reed Bowen, Clyde Freeman, George Moyers, Jim Matthews, and Henry Miller, on their own behalf and on behalf of a class of persons similarly situated v. Duke Energy Retirement Cash

 EXHIBIT A 
  

 
Balance Plan and Duke Energy Corporation, Case No. 8:06-cv-00373-HFF, pending in the United States District Court for the District of South
Carolina. This paragraph deals with that lawsuit, and any lawsuit asserting similar claims (the “Cash Balance Plan Litigation”). The Cash Balance Plan Litigation seeks additional benefits under the Duke Energy Retirement Cash Balance Plan
(the “Cash Balance Plan”), and other relief. The Company and the Cash Balance Plan intend to defend themselves vigorously in the Cash Balance Plan Litigation and take the position that no damages should result from the litigation.
Executive should consider the Cash Balance Plan Litigation in connection with this Release, because the Company and the Cash Balance Plan will take the position that this Release completely releases Executive’s rights in the Cash Balance Plan
Litigation. Executive is free to consult with counsel representing the plaintiff class in the Cash Balance Plan Litigation, whose names and addresses are attached. Executive may, of course, contact any other lawyer. Executive is encouraged to
discuss this matter with the lawyer of his or his own choosing. 
 Section 8. Governing Law. This Release shall be interpreted,
construed and governed according to the laws of the State of North Carolina, without reference to conflicts of law principles thereof. 
 Section 9. Severability. It is understood by Executive and the Company that if any part of this Release of claims is held by a court to be invalid, the remaining portions shall not be affected. 
 This RELEASE is executed by the Executive and delivered to the Company on
                                        .

  

	
	  

	Henry B. Barron, Jr.Incentive Compensation Plan--Annual Plan for President and CEO

 Exhibit 10.1 
 FEDERAL HOME LOAN BANK OF SEATTLE 
 Bank Incentive Compensation Plan (BICP) – Annual Plan for President and CEO 
 As of January 1, 2008 

 FEDERAL HOME LOAN BANK OF SEATTLE 
 Bank Incentive Compensation Plan – President 
 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	1.0	  	Plan Objectives	  	1
	2.0	  	Definitions	  	1
	3.0	  	Eligibility	  	2
	4.0	  	Incentive Award Opportunity	  	2
	5.0	  	Performance Measures	  	2
	6.0	  	Award Determination	  	3
	7.0	  	Award Conditions	  	4
	8.0	  	Participant Performance Reviews	  	4
	9.0	  	Plan Communication	  	5
	10.0	  	Administrative Control	  	5
	11.0	  	Miscellaneous Conditions	  	5
		
	Appendix A: 2008 Plan Year	  	7
		  	Table 1 – Incentive Award Opportunity	  	8

 FEDERAL HOME LOAN BANK OF SEATTLE 
 Bank Incentive Compensation Plan 
 PLAN DOCUMENT 
  

	1.0	Plan Objectives 

  

	 	1.1	The purpose of the Federal Home Loan Bank of Seattle’s Incentive Compensation Plan (Plan) is to achieve four objectives: 

  

	 	1.1.1	Promote the achievement of the Seattle Bank’s annual business goals in accordance with the business plan; 

  

	 	1.1.2	Link compensation to specific bankwide and individual performance measures; 

  

	 	1.1.3	Provide a competitive reward structure for officers and other exempt employees; and 

  

	 	1.1.4	Provide a vehicle for closer Board involvement and communication with management regarding Seattle Bank strategic plans. 

  

	 	1.2	The Plan is a cash-based, annual incentive plan that establishes individual award opportunities related to achievement of Seattle Bank and individual performance.

  

	 	1.3	The award opportunity, Performance Measures, and other relevant information for a Plan Year are set forth in Appendix A. 

  

	2.0	Definitions 

  

	 	2.1	When used in this Plan, the following words and phrases shall have the following meaning: 

  

	 	2.1.1	Bank means the Federal Home Loan Bank of Seattle. 

  

	 	2.1.2	Base Salary is defined as the Participant’s normal rate of pay, including overtime, before any other add-ons (i.e. Bonuses, incentive pay, etc.) and after any
adjustments (i.e. Leave w/o pay). 

  

	 	2.1.3	Board means the Seattle Bank’s Board of Directors. 

  

	 	2.1.4	Committee means the Executive Committee of the Board. 

  

	 	2.1.5	Disability means the Participant is receiving benefits under the Federal Home Loan Bank of Seattle’s Long Term Disability Plan. 

  

	 	2.1.6	Participant means the President of the Seattle Bank for this specific plan. 

  

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	 	2.1.7	Plan means the Bank Incentive Compensation Plan – Annual Plan for President and CEO. 

  

	 	2.1.8	Plan Year means the calendar year, January 1 through December 31, over which both Seattle Bank and Participant performance is measured. 

  

	 	2.1.9	President means the President and Chief Executive Officer of the Seattle Bank. 

  

	3.0	Eligibility 

  

	 	3.1	The President is an eligible participant under this Plan, effective January 1, 2008. 

  

	4.0	Incentive Award Opportunity 

  

	 	4.1	Each Plan Year, the Seattle Bank will determine an award opportunity for the President. The award opportunity shall be a percentage of the annual base salary as described in
Appendix A Table 1 – Incentive Award Opportunity. 

  

	5.0	Performance Measures 

  

	 	5.1	Bankwide and individual performance measures will be established with respect to each Plan Year as described in Appendix A. Three achievement levels will be set for each bankwide
performance measure: 

  

	 	Threshold	The minimum achievement level accepted for the performance measure. 

  

	 	Target	The achievement level for the performance measure. 

  

	 	Maximum	The achievement level for the performance measure which substantially exceeds the target level of achievement. 

 Individual performance goal measures will include four levels: 
 More is expected – performs at basic job requirements and does not meet all line of sight goals. 
 Meets
all goals – performs at or at times above basic job requirements and meets all line of sight goals. 
 Exceeds expectations –
performs consistently above basic job requirements and exceeds all line of sight goals at a level surpassing supervisor’s expectations. 
  

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 Recognized enterprise performance – performs consistently at a high level above basic job
requirements, exceeds all line of sight goals and performs at a level exceeding supervisor’s and senior management’s expectations. 
  

	 	5.2	Bankwide measures will be reviewed by the Committee and approved by the Board. 

  

	 	5.3	Participant incentive award will be based on bankwide performance objectives first and secondly on the individual performance goals. 

  

	 	5.3.1	Participant will typically have two to four major goals established that reflect the priorities of the Participant for the Plan Year. 

  

	 	5.3.2	Participant’s individual performance goals will be established between mutual agreement between the Participant and the Executive Committee of the board.

  

	 	5.3.3	All performance goals are to remain in effect for the entire Plan Year. However, in its sole discretion, the Committee with Board approval may revise Seattle Bank performance
measures and the Executive Committee may revise individual performance goals for the Plan Year after the year commences. 

  

	6.0	Award Determination 

  

	 	6.1	The method of determining the incentive award will be according to the following sequence: 

  

	 	6.1.1	After the plan year ends determine the Participant’s base salary for the Plan Year (defined as the normal rate of pay before any other add-ons (bonuses, incentives, etc).

  

	 	6.1.2	Using a linear approach, evaluate actual Seattle Bank performance against the Bankwide performance at or between threshold and target, or target and maximum.

  

	 	6.1.3	Evaluate actual individual Participant performance against the individual performance goals. Assess performance as it relates to “More is expected,” “Meets all
goals,” “Exceeds expectations,” and “Recognized enterprise performance”. 

  

	 	6.1.4	Determine the interpolated award opportunity by relating the Seattle Bank Performance achievement level (derived in 6.1.2) to the Individual Performance achievement level (derived
in 6.1.3). 

  

	 	6.2	 Depending upon the board’s assessment of severity, the Participant may receive anywhere from no award up to a maximum of 50% of their otherwise earned award if
during the most recent examination of the Seattle Bank by the Federal Housing Finance Board (FHFB) or successor regulator, an unsafe or 

  

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unsound practice or condition with regard to the Seattle Bank was identified, unless the practice or condition took place prior to start of employment, comes
to the attention of said Participant and is not continued. However, the Level II and III Participants may receive their earned award provided that the finding of an unsafe or unsound practice or condition is subsequently resolved within the Plan
Year in favor of the Seattle Bank by the FHFB. The Board, in its sole discretion may take into consideration mitigating factors to approve the award as noted in 11.11 (Miscellaneous Conditions). 

  

	 	6.3	Unless approved by the board, no award will be received if Participant receives a written warning for performance or misconduct at any time during the Plan Year.

  

	7.0	Award Conditions 

  

	 	7.1	If the Seattle Bank achieves its threshold performance measures but Participant’s performance fails to meet basic expectations no incentive award will be made to the
Participant. Likewise, should Participant’s performance meet expectations but the Seattle Bank fails to achieve threshold performance no incentive award will be made to Participant. However, at the Committee’s sole discretion, an incentive
award may be recommended for Seattle Bank performance below threshold subject to final approval by the Board. 

  

	8.0	Participant Performance Reviews 

  

	 	8.1	The Participant’s performance will be reviewed June of the Plan Year with a final assessment completed by the Executive Committee after the end of the Plan Year.

  

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	9.0	Plan Communication 

  

	 	9.1	Communications with Participant regarding the Plan should be made according to the following schedule: 

  

			
	 First quarter of Plan Year
	  	 •        Communicate Bank Incentive Compensation Plan
document and material changes.
  
 •        Communicate bankwide goals.
  
 •        Set individual goals.

		
	 June of Plan Year
	  	Review of progress toward achieving individual goals.
		
	 After end of Plan Year
	  	Final assessment of Seattle Bank and individual performance.

  

	10.0	Administrative Control 

  

	 	10.1	The Seattle Bank’s Human Resources Department will administer the Plan. 

  

	 	10.2	The Board will have ultimate authority over the structure and goals of the Plan, and any incentive payouts from the Plan. 

  

	11.0	Miscellaneous Conditions 

  

	 	11.1	Except as provided in Section 11.3, Participant must be employed by the Seattle Bank until the pay period in which the payments are made – in February of the following
year. 

  

	 	11.2	Notwithstanding any Plan provision to the contrary, mere participation in the Plan will not entitle a Participant to an award. 

  

	 	11.3	The Board may approve a prorated award if Participant terminates employment, retires, dies, or becomes disabled during the Plan Year. 

  

	 	11.4	The designation of an employee as a Participant in the Plan does not guarantee employment. Nothing in this Plan shall be deemed (i) to give any employee or Participant any
legal or equitable rights against the Seattle Bank, except as expressly provided herein or provided by law; or (ii) to create a contract of employment with any employee or Participant, to obligate the Seattle Bank to continue the service of any
employee or Participant, or to affect or modify any employee’s or Participant’s term of employment in any way. 

  

	 	11.5	The right of the Seattle Bank to discipline or discharge a Participant shall not be affected by any provision of this Plan. 

  

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	 	11.6 	All awards under the Plan will be paid out through regular payroll and will be subject to applicable payroll tax withholdings and other appropriate deductions.

  

	 	11.7 	Incentive awards will be made as soon as practical following the end of the Plan Year, but no later than the last pay period in February. 

  

	 	11.8 	The Board has the right to revise, modify, or terminate the Plan in whole or in part at any time or for any reason, and the right to modify any recommended incentive award amount
(including the determination of a lesser award or no award), without the consent of any Participant. 

  

	 	11.9 	Since no employee has a guaranteed right to any award under this Plan, any attempt by an employee to sell, transfer, assign, pledge, or otherwise encumber any anticipated award
shall be void, and the Seattle Bank shall not be liable in any manner for or subject to the debts, contracts, liabilities, engagements or torts of any person who might anticipate an award under this program. 

  

	 	11.10 	This Plan shall at all times be entirely unfunded and no provision shall at any time be made with respect to segregating assets of the Seattle Bank for payment of any award under
this program. 

  

	 	11.11 	The Plan shall be construed, regulated, and administered in accordance with the laws of the state of Washington, unless otherwise preempted by the laws of the United States.

  

	 	11.12 	If any provision of the Plan is held invalid or unenforceable, its invalidity or unenforceability shall not affect any other provision of the Plan, and the Plan shall be construed
and enforced as if such provision had not been included herein. 

  

	 	11.13 	If a Participant dies before receiving his or her award, any amounts determined to be paid under this Plan shall be paid to the Participant’s surviving spouse, if any, or if
none, to the Participant’s estate. The Seattle Bank’s determination as to the identity of the proper payee of any amount under this Plan shall be binding and conclusive and payment in accordance with such determination shall constitute a
complete discharge of all obligations on account of such amount. 

  

	 	11.14 	Any agreements or representations, oral or otherwise, express or implied, with respect to the subject matter of this Plan which are not contained herein will have no effect or
enforceability. 

  

 6 

 FEDERAL HOME LOAN BANK OF SEATTLE 
 Bank Incentive Compensation Plan (BICP) – Annual Plan for President and CEO 
 APPENDIX A 

 2008 Plan Year 
  

 7 

 Incentive Award Opportunity (as a percentage of base salary) 
 The interpolated incentive award is determined based on a linear approach against bankwide measures at or between threshold and target, or target and maximum, and
adjusted for individual performance as follows: 
 Table 1 – Incentive Award Opportunity 
  

															
	  	  	Individual	  	Bank Performance	 
	 Level
	  	 Performance
	  	No Award	 	 	Threshold	 	 	Target	 	 	Maximum	 
	 I - President (Grade 24)
	  	Recognized Enterprise Performance	  	0	%	 	35	%	 	45	%	 	60	%
		  	Exceeds Expectations	  	0	%	 	25	%	 	35	%	 	45	%
		  	Meets all Goals	  	0	%	 	20	%	 	25	%	 	35	%
		  	More is Expected	  	0	%	 	0	%	 	0	%	 	0	%

 Bank Performance Measures 
 There will be one or more Seattle Bank performance measures for the 2008 Plan Year. (See Appendix B Table 2 – Bankwide Performance Measures) The achievement level for bankwide performance shall be according to
specific measurements as reviewed by the Committee and adopted by the Board. 
 Individual Performance Measures 
 There will be two to four Individual performance measures for the 2006 Plan year. The Individual Performance Achievement Levels (More is expected, Meets all goals,
Exceeds expectations, Enterprise performance) is determined by the Individuals overall goal performance. 
  

 8

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