Document:

DC667.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

EXHIBIT 10.1 EMPLOYMENT AGREEMENT BETWEEN FEDERAL HOME

LOAN BANK OF SEATTLE AND RICHARD M. RICCOBONO

	
EMPLOYMENT AGREEMENT

	
Between

	
Federal Home Loan Bank of Seattle

and

Richard M. Riccobono

     The purpose of this Agreement is to confirm the terms of the employment relationship between the Federal Home Loan Bank of Seattle (the "Seattle Bank" or "Employer") and Richard M. Riccobono
(hereinafter referred to as the "Executive").

     1. Term. The Seattle Bank and Executive agree that Executive will be employed by the Seattle Bank for a term of two (2) years and eight (8)
months beginning May 1, 2007 (the "Effective Date"), unless employment is sooner terminated as provided herein (the 'Term"). Upon expiration of the Term, this Agreement may be renewed for successive one (1) year periods, as mutually agreed to by the
parties. Notwithstanding this Agreement, the parties agree that Executive is an employee-at-will.

     2. Position and Duties. The Seattle Bank and Executive agree that Executive will be employed as President and Chief Executive Officer of
Employer, and shall report to the Board of Directors. Executive's responsibilities and duties shall include general and active management and control of the affairs and business of the Seattle Bank, and shall further include such other managerial
responsibilities and executive duties as may be assigned to him from time to time by the Board of Directors of the Seattle Bank. Executive covenants to render such services to the best of his skill and ability during his employment under this
Agreement. 

     2.1 Executive agrees to devote his full-time efforts to his duties with the Seattle Bank and further agrees that he will not directly or indirectly engage or participate in any activities while
employed by the Seattle Bank that would conflict with the performance of his duties or obligations to the Seattle Bank or the best interests of the Seattle Bank, or which would directly or indirectly compete with the Seattle Bank. The foregoing
shall not preclude Executive from accepting service as a board or committee member of industry trade groups and as a trustee or director of any nonprofit or community organization where such service will be beneficial to the Seattle Bank.

2.2 All policies published by the Seattle Bank or delivered to 

Executive prior to or following this Agreement regarding employment, required behavior by employees and other similar matters (collectively referred to as the "Seattle Bank Policies") are incorporated within this Agreement as
though fully set forth in this Agreement. Executive agrees to be bound by and adhere to all such Seattle Bank Policies

as presently exist or as may be hereafter issued or modified by the Seattle Bank. Without limiting the foregoing, Executive agrees to conduct business on behalf of the Seattle Bank in a manner consistent with proper and ethical
business practices and consistent with the best interests of the Seattle Bank. To the extent that any of the Seattle Bank Policies are inconsistent with or contrary to the provisions of this Agreement, this Agreement shall prevail.

3. Base Compensation. For all services rendered by Executive during the 

Term of this Agreement, the Seattle Bank shall pay Executive a gross base salary of Four Hundred and Eighty Five Thousand Dollars ($485,000.00) per annum. Executive shall be paid this salary on the same basis applicable to
executive employees of the Seattle Bank generally, minus all lawful and agreed upon payroll deductions. Executive's compensation shall be reviewed annually at the end of each calendar year by the Executive Committee of the Board of Directors (or by
such other committee of the Board of Directors to which this duty is delegated) in accordance with normal Seattle Bank salary review procedures, but may not be decreased during the term of this Agreement. Executive's salary for any partial year of
employment shall be reduced to cover the term of actual employment on a pro-rata basis.

     4. Business Expenses. The Seattle Bank agrees to reimburse Executive for all reasonable business expenses incurred by Executive while on
Seattle Bank business, subject to the Seattle Bank's normal business expense and documentation policies, and subject to applicable laws and regulations. Monthly dues for Executive's membership in the Rainier Club will be covered as a business
expense under this paragraph. 

     5. Bonuses and Incentives. During the Term, Executive will be entitled to participate in the following incentive programs:

     5.1 Short-Term Incentive Compensation Program. Executive shall be eligible to participate in the Bank Incentive Compensation Plan –
Annual Plan for the President and CEO ("Annual CEO BICP"), the Seattle Bank's short-term incentive compensation program for the president and chief executive officer as it may be implemented or amended from time to time. The Annual CEO BICP for
Executive will be prorated in 2007 to reflect the Executive's eight months of service as president and chief executive officer during 2007. Executive shall also be eligible to participate in the Bank Incentive Compensation Plan – Annual Plan
for Exempt Staff and Officers ("Annual BICP") during 2007 on a prorated basis to reflect his 4 months of service as chief operating officer during 2007.

     5.2 Long-Term Incentive Compensation Program. Executive will also be eligible for participation in the Long-Term BICP, the Seattle Bank's
long-term incentive bonus program, as it may be implemented or amended from time to time. For purposes of determining any earned incentive that Executive may be entitled to for 2007, Executive's base pay as of January 1, 2007 shall be utilized for
4/12ths of any earned incentive for 2007 and Executive's base pay as of May 1, 2007 shall be utilized for 8/12ths of any
earned incentive for 2007. 

     6. Employee Benefits. The Seattle Bank and Executive agree that during the term of this Agreement, Executive will be eligible to participate
in the Seattle Bank's employee benefit plans available to other executives of the Seattle Bank, including without limitation, those plans covering medical, disability and life insurance, and applicable retirement savings plans, in accordance with
the eligibility and other terms and conditions established for individual participation in any such plan and under applicable law, as such terms may be changed from time to time. 

     7. Vacation. Executive shall be entitled to four (4) weeks' paid vacation per year. Vacation shall be scheduled by Executive at a time that
is consistent with the Seattle Bank's business needs. Upon the termination of this Agreement, Executive shall be paid for all previously accrued and unused vacation time in accordance with Seattle Bank policy.

8. Confidential Information. It is understood and agreed that as a result of 

Executive's employment with the Seattle Bank, Executive has acquired and will continue to acquire and make use of confidential information about the Seattle Bank and its business, and information relating to the Seattle Bank's
customers, such information constituting trade secrets. During the course of his employment with the Seattle Bank and thereafter, Executive shall keep secret and retain in strictest confidence, and shall not, without the prior written consent of the
Employer, furnish, make available or disclose to any third party (except in furtherance of the Seattle Bank's business activities and for the sole benefit of the Employer) or use for the benefit of himself or any third party, any Confidential
Information. As used in this Agreement, "Confidential Information" shall mean any information relating to the business or affairs of the Seattle Bank or its business, including but not limited to information relating to financial statements,
reports, models, data, business plans, operations, systems, regulatory matters, customer identities, potential customers, employees, suppliers, servicing methods, assets, programs, strategies and information, analyses, profit margins, or other
proprietary information used by the Seattle Bank in connection with its business; provided, however, that Confidential Information shall not include any information which is in the public domain or becomes known outside the Seattle Bank by persons
who are not associated with the Seattle Bank and do not have an obligation of confidentiality to the Seattle Bank with respect to such information through no wrongful act on the part of Executive. Executive acknowledges that the Confidential
Information is vital, sensitive, confidential and proprietary to the Seattle Bank. Executive further agrees that on termination of this Agreement, or at any time on request by the Employer, he shall deliver possession to the Seattle Bank of all
Confidential Information and all documents, writings, and other things of every kind and description prepared or acquired in connection with the Seattle Bank business or at the Seattle Bank expense or in the course of Employee's employment or that
contain the Seattle Bank proprietary information, including all copies of the same.

     9. Termination. This Agreement shall be terminated upon the occurrence of any one of the following events:

	
9.1      		
Death of Executive.	
	 
	
9.2      		
If Executive shall have been incapacitated from illness, accident or	
	 

other disability and unable to perform his normal duties hereunder a period of ninety (90) consecutive days, upon the Seattle Bank or Executive giving the other party not less than thirty (30) days' written notice.

	
                                        9.3 
		
 		
Expiration of the Term of this Agreement or any renewal or 
	
	
extension thereof. 
		
 		
 
		
 		
 
	
	
 
	
	
                                        9.4 
		
 		
For Cause, which shall be defined as the occurrence of one or more 
	
	
of the following: 
		
 		
 
		
 		
 
	
	
 
	
	
 
		
 		
(a) 
		
 		
Executive's material breach of the provisions of this 
	
	
Agreement; or 
		
 		
 
		
 		
 
	
	
 
	
	
 
		
 		
(b) 
		
 		
Executive's willful, wanton or grossly negligent non- 
	

performance or misfeasance of Executive's duties (other than as a result of total or partial incapacity due to physical or mental illness), including Executive's repeated insubordination or refusal to comply in any material
respect with the directives of the Seattle Bank's Board of Directors so long as such directives are not inconsistent with Executive's position and duties; or

     (c) Dishonest or fraudulent conduct, a deliberate attempt to do an injury to the Seattle Bank, or conduct that materially discredits the Seattle Bank, including conviction of or plea of nolo
contendere to a felony or any crime involving dishonesty or fraud.

     9.5 By the Seattle Bank without cause upon notice to Executive, which determination may be made by the Seattle Bank at any time at the Seattle Bank's sole discretion, for any or no reason.

     10. Severance. If Executive's employment with the Bank terminates pursuant to Section 9.5 above, and Executive signs and does not revoke a
release of claims against the Seattle Bank, then, subject to Executive's compliance with section 8, and in lieu of any benefits to which Executive may be entitled under the Seattle Bank's Severance Policy, Executive shall be entitled to receive
continuing payments of severance pay (less applicable withholding taxes) at a rate equal to his then current base salary, for a period of twelve (12) months from the date of such termination, to be paid periodically in accordance with the Seattle
Bank's normal payroll policies. If Executive's employment with the Seattle Bank terminates as the result of a change in control (as defined below), and Executive signs and does not revoke a release of claims against the Seattle Bank, then, subject
to Executive's compliance with Section 8, and in lieu of any benefits to which Executive may be entitled under the Seattle Bank's Severance Policy, Executive shall be entitled to receive a lump sum payment of severance pay (less applicable
withholding taxes) in an amount equal to twenty-four (24) months of his then current base salary. For purposes of this Section 10, "change of control" shall mean (i) the 

merger or consolidation of the Seattle Bank with or into another Federal Home Loan Bank, or (ii) the liquidation of the Seattle Bank. In addition, the Seattle Bank shall pay Executive's premiums for continued group health
insurance benefits for a period of eighteen (18) months.

     11. Effect of Termination. Upon termination of Executive's employment with Employer for any reason, the Seattle Bank agrees to pay Executive
all salary which is due and owing to Executive as of the date of termination, less legal deductions or offsets Executive may owe to the Seattle Bank for such items as salary advances or loans. Executive agrees that his signature on this Agreement
constitutes his authorization for all such deductions. Except as otherwise provided pursuant to Section 9.5 with respect to a termination without cause, Executive shall not be entitled to any other or additional compensation upon termination. In the
event of termination of this Agreement, the terms and provisions of this Agreement shall also terminate, with the exception of the confidentiality covenant contained in Section 8 and any other provisions that expressly address post-termination
issues. Such provisions shall continue in full force and effect according to their terms.

     12. Responsibilities of Executive Upon Termination. Upon the termination of Executive's employment with the
Seattle Bank, irrespective of the reasons for such termination, Executive shall deliver all property of the Seattle Bank to the Seattle Bank, together with all notes and memoranda, whether in written or digital form. The property of the Seattle Bank
that must be returned upon termination of Executive's employment shall include, but shall not be limited to, all written data concerning the financial performance, products, plans, projections, or products of the Seattle Bank and all other data
which would constitute Confidential Information pursuant to Section 8. The property to be delivered to the Seattle Bank shall include the originals and all copies of all such property and all data contained on computer disks and other means of
storing electronic data.

     13. Representations of Executive. Executive represents and warrants to the Seattle Bank that he is free to
enter into this Agreement and that he has no commitment, arrangement or understanding to or with any party which restrains or is in conflict with his performance of the covenants, services and duties provided for in this Agreement. Executive agrees
to indemnify the Seattle Bank and to hold it harmless against any and all liabilities or claims arising out of any unauthorized act or acts by Executive which, the foregoing representation and warranty to the contrary notwithstanding, shall be in
violation, or shall constitute a breach, of any such commitment, arrangement or understanding.

	
14.      		
Construction of Agreement.	
	 
	 	
14.1 Essential Terms and Modification of Agreement. It is understood	
	 

and agreed that the terms and conditions described in this Agreement constitute the essential terms and conditions of the employment arrangement between the Seattle Bank and Executive, all of which have been voluntarily agreed
upon. The Seattle Bank and 

Executive agree that there are no other essential terms or conditions of the employment relationship that are not described within this Agreement, and that any change in the essential terms and conditions of this Agreement will
not be effective until it is written down in a supplemental agreement which shall be signed by both a representative of the Board of Directors, pursuant to authorization of the Board and Executive.

     14.2 Severability. If any term, covenant, condition or provision of this Agreement or the application thereof to any person or circumstance
shall, at any time, or to any extent, be determined invalid or unenforceable, the remaining provisions hereof shall not be affected thereby and shall be deemed valid and fully enforceable to the extent permitted by law.

     14.3 Notices. Any notice hereunder shall be sufficient if in writing and delivered to the party or sent by certified mail, return receipt
requested and addressed as follows:

	
a. 
		
 		
To the Seattle Bank: 
		
 		
Chairman of the Board 
	
	
 
		
 		
 
		
 		
Federal Home Loan Bank of Seattle 
	
	
 
		
 		
 
		
 		
1501 Fourth Avenue, Suite 1800 
	
	
 
		
 		
 
		
 		
Seattle, Washington 98101 
	
	
 
	
	
 
		
 		
With a copy to: 
		
 		
Sheryl A. Symonds 
	
	
 
		
 		
 
		
 		
Senior Vice President, General Counsel 
	
	
 
		
 		
 
		
 		
and Corporate Secretary 
	
	
 
		
 		
 
		
 		
Federal Home Loan Bank of Seattle 
	
	
 
		
 		
 
		
 		
1501 Fourth Avenue, Suite 1800 
	
	
 
		
 		
 
		
 		
Seattle, Washington 98101 
	
	
 
	
	
b. 
		
 		
If to Executive: 
		
 		
Richard M. Riccobono 
	
	
 
		
 		
 
		
 		
8454 West Mercer Way 
	
	
 
		
 		
 
		
 		
Mercer Island, Washington 98040-5633 
	

Either party may change the address herein specified by giving to the other, written notice of such change as provided in this Section 14.3.

     14.4 Governing Law and Jurisdiction. This Agreement is made and shall be construed and performed under the laws of the State of Washington
without reference to its choice of law rules. In the event of any litigation or other legal action relating to this Agreement, the prevailing party will be entitled to recover from the other party, in addition to all other relief, all reasonable
costs and attorneys' fees incurred by the prevailing party in connection with such action (including, but not limited to, any appeal thereof). Any such action may be maintained in any state or federal court located in King County, Washington, having
subject matter jurisdiction over such dispute. Both parties consent in advance to the exclusive jurisdiction over them of any such court.

     14.5 Waiver of Agreement. The failure of either party to insist upon or enforce strict performance by the other of any provision of this
Agreement or to exercise any 

right, remedy or provision of this Agreement will not be interpreted or construed as a waiver or relinquishment to any extent of such party's right to consent or rely upon the same in that or any other instance; rather, the same
will be and remain in full force and effect. 

     14.6 Captions. The captions and headings of the sections and subsections of this Agreement are for convenience and reference only and are not
to be used to interpret or define the provisions hereof.

     14.7 Assignment and Successors. The rights and obligations of the Seattle Bank under this Agreement shall inure to the benefit of and be
binding upon the successors and assigns of Employer. The rights and obligations of Executive hereunder are non-assignable. The Seattle Bank may assign its rights and obligations to any entity in which the Seattle Bank or an entity affiliated with
the Seattle Bank has a majority ownership interest.

     14.8 Applicable Federal Law. This Agreement is subject to applicable provisions of the Federal Home Loan Bank Act and regulations of the
Federal Housing Finance Board. 

     14.9 Entire Agreement. This Agreement sets forth the entire agreement between the parties related to Executive's employment by the Seattle
Bank, and supersedes any and all prior representations, proposals, discussions, communications or agreements, written or otherwise, between the parties with respect thereto. No amendment of any provision of this Agreement will be effective unless
set forth in a written instrument signed by both parties.

	
14.10      		
Counterparts. This Agreement may be executed in counterparts.	
	 
	
14.11      		
Advice of Counsel. Executive acknowledges that he has read and	
	 

understands this Agreement and all of the provisions hereof, and that adequate opportunity has been afforded Executive to consult with his own legal counsel before signing this Agreement.

Executed this 26th day of February 2007, effective as of May 1, 2007.

	
EXECUTIVE 
		
 		
FEDERAL HOME LOAN BANK 
	
	
 
		
 		
OF SEATTLE 
	
	
 
	
	
            /s/ Richard M. Riccobono 
		
 		
 
		
 		
 
	
	

		
		
		
		
	
	
 
		
 		
By 
		
 		
/s/ Mike C. Daly 
	
	
		
		
		
		

	
	
RICHARD M. RICCOBONO 
		
 		
 
		
 		
 
	
	
 
		
 		
Its Chairman of the Board of DirectorsDC668.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

EXHIBIT 10.2 SEPARATION, MUTUAL RELEASE, AND CONSULTING 

AGREEMENT BETWEEN FEDERAL HOME LOAN BANK AND JAMES E. GILLERAN

SEPARATION, MUTUAL RELEASE, AND CONSULTING AGREEMENT

     This Separation, Mutual Release, and Consulting Agreement (the “Agreement”) is entered into by and between the Federal Home Loan Bank of Seattle (the “Seattle Bank”)
and James E. Gilleran to set forth the terms and conditions of Mr. Gilleran’s separation from his employment with the Seattle Bank and his provision of consultative services through December 31, 2007. The Agreement supersedes and replaces the
employment agreement entered into by the Seattle Bank and Mr. Gilleran dated June 1, 2005 (the “Employment Agreement”), except that the Employment Agreement shall remain in effect through April 30, 2007.

	
RECITALS

     Mr. Gilleran has been employed by the Seattle Bank as President and Chief Executive Officer since June 1, 2005.

     Mr. Gilleran’s superb service to the Seattle Bank, its members and the Federal Home Loan Bank System has been universally recognized.

     Mr. Gilleran has submitted his resignation to the Board of Directors of the Seattle Bank as of April 30, 2007, and the Seattle Bank desires to retain Mr. Gilleran’s services on a
consulting basis. 

	
AGREEMENT

Mr. Gilleran and the Seattle Bank agree as follows:

1. Separation Date. Mr. Gilleran’s last day of employment with the Seattle Bank will be 

April 30, 2007.

     2. Consultative Services. From May 1, 2007 through December 31, 2007 Mr. Gilleran will provide advice and
counsel to the Seattle Bank, its Board of Directors, and the Seattle Bank’s successor president and chief executive officer on request. Mr. Gilleran and the Seattle Bank intend that an independent contractor relationship be created by this
Agreement, and nothing in this Agreement shall be construed as creating an employment relationship, partnership, joint venture, or agency relationship. Mr. Gilleran shall not have the authority to act in any way as the representative of the Seattle
Bank except as directed by the Board of Directors or the successor president and chief executive officer. During the term of this Agreement, Mr. Gilleran will have control of the manner and means by which the services are performed, subject to
compliance with this Agreement and any plans, specifications, schedules, or other items approved by the Seattle Bank. 

     All material prepared by Mr. Gilleran pursuant to this Agreement, including without limitation reports, models, data, calculations, software, programs, and documentation, and all
discoveries, improvements, ideas, concepts, creative works, and designs, whether or not in writing or reduced to practice, and any other intellectual property, including any deliverable (the “Work Product") developed in connection with the
services performed hereunder shall be the sole property of the 

Seattle Bank, and Mr. Gilleran reserves no rights in any Work Product. All Work Product shall be assumed to be works made for hire. Mr. Gilleran shall execute any documents and take any other actions deemed necessary
by the Seattle Bank to perfect the Seattle Bank's rights in any Work Product.

     As consideration for these consultative services, Mr. Gilleran will be paid an amount equal to $47,315.63 per month from May 1, 2007 through December 31, 2007, at the same intervals as
the Seattle Bank pays salary to its employees. The Seattle Bank will reimburse Mr. Gilleran for necessary, customary, and usual business expenses incurred by Mr. Gilleran on behalf of the Seattle Bank in accordance with Seattle Bank policies. Mr.
Gilleran will be responsible for paying any tax obligation related to his provision of consultative services (including without limitation FICA, federal withholding tax, FUTA, state unemployment tax and workers' compensation), and the Seattle Bank
will have no obligation to withhold any taxes. 

     3. No Additional Compensation. Mr. Gilleran and the Seattle Bank agree that, except as expressly set
forth in this Agreement, Mr. Gilleran shall not be entitled to receive any additional compensation, bonuses, incentive compensation, employee benefits or other consideration from the Seattle Bank. However, nothing in this Agreement shall affect any
vested rights Mr. Gilleran may have under the Seattle Bank’s 401(k) savings plan or any Benefit Equalization Plan.

     4. Return of Seattle Bank Property. Except as otherwise agreed to by Mr. Gilleran and the successor
president and chief executive officer, Mr. Gilleran represents and warrants that no later than 5:00 p.m., April 30, 2007, he will return to the Seattle Bank all the Seattle Bank property including, without limitation, any laptop computer, keys,
access cards, parking pass, credit cards, cellular telephones, books, manuals, files, computer software, disks and the like, as well as all paper and electronic copies of materials and documents in his possession or under his direct or indirect
control relating to the Seattle Bank, its business, employees, and customers, and that he has not retained copies, in whatever form, of any such materials or documents. Notwithstanding anything to the contrary set forth herein, the Seattle Bank
hereby acknowledges and agrees that Mr. Gilleran may retain, as his own property, his copies of his individual personnel documents, such as his payroll and tax records, and similar personal records.

     5. Confidential Information. It is understood and agreed that as a result of Mr. Gilleran's prior
employment with the Seattle Bank and the provision of consultative services referenced in paragraph 2, Mr. Gilleran has acquired and will continue to acquire and make use of confidential information about the Seattle Bank and its business, and
information relating to the Seattle Bank’s customers, such information constituting trade secrets. Mr. Gilleran shall keep secret and retain in strictest confidence, and shall not, without the prior written consent of the Seattle Bank, furnish,
make available or disclose to any third party (except in furtherance of the Seattle Bank’s business activities and for the sole benefit of the Seattle Bank) or use for the benefit of himself or any third party, any Confidential
Information.

     As used in this Agreement, “Confidential Information” shall mean any information relating to the business or affairs of the Seattle Bank or its business, including but not
limited to information relating to financial statements, reports, models, data, business plans, operations, systems, regulatory matters, customer identities, potential customers, employees, suppliers, servicing methods, assets, programs, strategies
and information, analyses, profit margins, or other proprietary information used by the Seattle Bank in connection with its business; provided, however, that Confidential Information shall not include any information which is in the public domain or
becomes known outside the Seattle Bank by persons who are not associated with the Seattle Bank and do not

have an obligation of confidentiality to the Seattle Bank with respect to such information through no wrongful act on the part of Mr. Gilleran.

     Mr. Gilleran acknowledges that the Confidential Information is vital, sensitive, confidential and proprietary to the Seattle Bank. Mr. Gilleran further agrees that on termination of this
Agreement, or at any time on request by the Seattle Bank, he shall deliver possession to the Seattle Bank all Confidential Information and all documents, writings, and other things of every kind and description prepared or acquired in connection
with the Seattle Bank business in the course of his employment or during the provision of the consultative services referenced herein.

     Mr. Gilleran acknowledges and agrees that the covenants set forth in this paragraph 5 are reasonable and necessary for the protection of the Seattle Bank’s business interests, that
irreparable injury will result to the Seattle Bank if Mr. Gilleran breaches any of his confidentiality obligations under this Agreement, and that in the event of Mr. Gilleran’s actual or threatened breach of such confidentiality obligations,
the Seattle Bank will have no adequate remedy at law. Mr. Gilleran accordingly agrees that in the event of any actual or threatened breach by him of any of his confidentiality obligations under this paragraph, the Seattle Bank shall be entitled to
immediate temporary injunctive and other equitable relief, without bond and without the necessity of showing actual monetary damages, subject to hearing as soon thereafter as possible. Nothing contained herein shall be construed as prohibiting the
Seattle Bank from pursuing any remedies available to it for such breach or threatened breach, including the recovery of any damages which it is able to prove.

     6. Covenant Not to Sue. Mr. Gilleran represents that he has not filed any Claim that was released in this
Agreement against the Seattle Bank or its Released Parties (as defined below) with any court or government agency, and that he will not, to the extent allowed by applicable law, do so at any time in the future; provided, however, that this will not
limit Mr. Gilleran from filing a Claim to enforce the terms of this Agreement. If any government agency brings any claim or conducts any investigation against the Seattle Bank, nothing in this Agreement forbids Mr. Gilleran from cooperating in such
proceedings, but by this Agreement, Mr. Gilleran waives and agrees to relinquish any damages or other individual relief that may be awarded as a result of any such proceedings. The Seattle Bank agrees that it will defend Mr. Gilleran against any
threatened or actual lawsuit related to his employment with the Seattle Bank, and subsequent consultative services specified in Paragraph 2, consistent with the indemnification provisions in the Seattle Bank’s Bylaws in existence on the date of
this Agreement. 

     7. Mutual Release of Claims. In consideration of the consulting arrangement described above, Mr.
Gilleran, on behalf of himself, his marital community, and their heirs, successors and assigns, releases and discharges the Federal Home Loan Bank of Seattle, its employee benefit plans and/or their current or former directors, officers, agents,
insurers, employees and attorneys, any and each of their successors and assigns and predecessors ("Released Parties"), from any and all claims, charges, causes of action and damages (including attorneys' fees and costs actually incurred), known and
unknown ("Claims"), including those Claims related in any way to his employment with the Seattle Bank, or the termination of his employment relationship with the Seattle Bank, arising prior to the effective date of this Agreement. Further, the
Seattle Bank hereby releases Mr. Gilleran from any and all Claims, including those Claims related in any way to his employment with the Seattle Bank, or the termination of his employment relationship with the Seattle Bank, arising prior to the
effective date of this Agreement. It is understood and agreed that the waivers in this Agreement are not intended to waive Mr. Gilleran’s rights: (a) to indemnification pursuant to any applicable provision of the Seattle Bank’s Bylaws, or
pursuant to applicable law; (b) under ERISA to 

receive his accrued vested benefits and any benefits specifically reserved for him in this Agreement; or (c) respecting the Seattle Bank’s obligations under this Agreement.

     For the purposes of implementing a full and complete release and discharge of the Seattle Bank and the other Released Parties, and each of them, Mr. Gilleran expressly acknowledges that
this Agreement is intended to include in its effect, without limitation, all Claims which he does not know or suspect to exist in his favor at the time he signs this Agreement, and that this Agreement is intended to fully and finally resolve any
such Claim or Claims.

     This Release specifically includes but is not limited to rights and claims under the local, state or federal laws prohibiting discrimination in employment, including the Civil Rights Acts,
the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Washington Law Against Discrimination, the Family and Medical Leave Act, the Employee Retirement Income Security Act (except as otherwise stated herein), as well as
any other state or federal laws or common law theories relating to discrimination in employment, the termination of employment, or personal injury, including without limitation all claims for breach of contract, fraud, defamation, loss of
consortium, infliction of emotional distress, additional compensation, back pay or benefits (other than as provided for in this Agreement).

     8. Voluntary Agreement; Full Understanding; Advice of Counsel. Mr. Gilleran understands and acknowledges
the significance of this Agreement and acknowledges that this Agreement is voluntary and has not been given as a result of any coercion. Mr. Gilleran also acknowledges that he has been given full opportunity to review and negotiate this Agreement,
that he has been specifically advised to consult with legal counsel prior to signing it, that he has in fact carefully reviewed it with his attorney before signing it to the extent he wishes to do so, and that he executes this Agreement only after
full reflection and analysis.

     9. No Representations. Mr. Gilleran acknowledges that, except as expressly set forth herein, no
representations of any kind or character have been made to him by the Seattle Bank or by any of the Seattle Bank’s agents, representatives or attorneys to induce the execution of this Agreement.

     10. Waiting Period and Revocation Period. Mr. Gilleran has until March 21, 2007 to consider this
Agreement before signing it. Mr. Gilleran understands and acknowledges that he has seven (7) days after signing this Agreement to revoke it. To revoke this Agreement, Mr. Gilleran must deliver a written notice of revocation to Sheryl A. Symonds,
Senior Vice President, General Counsel and Corporate Secretary at the Seattle Bank no later than 5:00 pm on the seventh day after Mr. Gilleran signs the Agreement. This Agreement shall not become effective or enforceable until the revocation period
has expired.

     11. Nonadmission. This Separation and Release Agreement shall not be construed as an admission of
wrongdoing or evidence of any noncompliance with or violation of any statute or law by the Seattle Bank or Mr. Gilleran. 

     12. Applicable Law; Venue; Attorneys' Fees; Interpretation. This Agreement shall be interpreted in
accordance with the laws of the State of Washington, without regard to its conflict of laws. Any lawsuit between the parties arising out of this Agreement shall be brought in King County Superior Court in Seattle, Washington. The prevailing party in
such action shall be awarded attorneys’ fees and costs (whether or not taxable under any applicable statute) including fees and costs incurred prior to suit, in any administrative proceedings, and on appeal. The language of this 

Agreement shall be construed as a whole according to its fair meaning and not strictly for or against either party.

     13. Complete Agreement. This Agreement represents and contains the entire understanding between the
parties in connection with the subject matter of this Agreement. This Agreement shall not be modified or varied except by a written instrument signed by Mr. Gilleran and an authorized representative of the Seattle Bank. It is expressly acknowledged
and recognized by all parties that all prior written or oral agreements, understandings or representations between the parties are merged into this Agreement, except as specifically set forth herein.

     14. No Assignment. Neither party may assign any of that party's rights or obligations under this
Agreement without the written consent of the other party.

     15. Invalidity. It is understood and agreed that if any provisions of this Agreement are held to be
invalid or unenforceable, the remaining provisions of the Agreement shall nevertheless continue to be fully valid and enforceable.

     16. Execution. This Agreement may be executed with duplicate original counterparts with faxed signatures,
each of which shall constitute an original and which together shall constitute one and the same document.

	
FEDERAL HOME LOAN BANK 
		
 		
JAMES E. GILLERAN 
	
	
OF SEATTLE 
		
 		
 
	
	
By: 
		
 		
/s/ Mike C. Daly 
		
 		
/s/ James E. Gilleran 
	
	
		
		

		
		
	
	
Name: Mike C. Daly 
		
 		
Date: February 26, 2007 
	
	
Title: 
		
 		
Chairman, Board of Directors 
		
 		
 
	
	
Date: 
		
 		
February 23, 2007

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}]]