Document:

exv10w10w1

Exhibit 10.10.1

FEDERAL HOME LOAN BANK OF PITTSBURGH

TEMPORARY INCENTIVE COMPENSATION PLAN

EXECUTIVE OFFICERS AND KEY EMPLOYEES

(Effective 1/1/09)

	I.	 	EFFECTIVE DATE
	 
	 	 	This Temporary Incentive Plan (“Temporary Plan” or “Plan”) of the Federal Home Loan Bank of
Pittsburgh is established effective as of January 1, 2009. Temporary Plan Awards (“Awards”)
may be paid for each Plan Year (January 1 to December 31, except as otherwise described
below) in accordance with the provisions of this Plan. Unless the Board approves renewal of
the Temporary Plan, the Plan will terminate on December 31, 2009.
	 
	II.	 	PURPOSE AND OBJECTIVES
	 
	 	 	The Temporary Plan is designed to retain and motivate executive officers and other key Bank
employees during a period in which the Bank’s financial condition is below its typical
performance level in terms of earnings generation, dividend paying capacity and ability to
repurchase excess capital stock.
	 
	III.	 	PLAN ADMINISTRATION
	 
	 	 	The Plan is administered by the President, the Human Resources Committee of the Board of
Directors (the “Committee”) and the Board of Directors (the “Board”).

	 	A.	 	Responsibilities of the President

	 	 	The President will provide recommendations to the Committee and the Board regarding Plan
participation, Bank performance goals, Bank achievements and Awards for the members of the
Bank’s Management Committee. The President is responsible for approval of: Plan
participation; performance goals; Bank achievements and Awards for staff below the
Management Committee level.

	 	B.	 	Responsibilities of the Committee

	 	 	The Committee will review all Plan recommendations and revisions (including all performance
goals and Awards) from the President and present final recommendations to the Board for its
approval. In addition, the Committee will review the performance of the President and
Management Committee members and make recommendations regarding any Award payouts under the
Plan.

	 	C.	 	Responsibilities of the Board

	 	 	The Board will review and approve as appropriate all recommendations from the Committee and
the President.

1

 

	IV.	 	ELIGIBILITY
	 
	 	 	The Bank’s executive officers and other key Bank staff members are eligible to participate
on the terms described in this Temporary Plan. Eligibility is reviewed each year that the
Temporary Plan is in effect to assure continued appropriateness, and participants are
notified by Human Resources of their participation in the Plan. Upon designation as a
participant, each participant will be provided a copy of the Plan.
	 
	V.	 	TEMPORARY INCENTIVE AWARD OPPORTUNITY LEVELS
	 
	 	 	A summary of the Temporary Plan Award levels is attached as Attachment A. Each participant
shall be provided with a separate document showing his/her level of participation in the
Plan.
	 
	VI.	 	PERFORMANCE MEASURES
	 
	 	 	The Plan Year for the base incentive award opportunity shall mean the annual period ending
December 31. With respect to the financial performance goal and the additional incentive
award opportunity, Plan Year shall mean the period ending December 31, 2011. The Plan goals
can be both quantitative and qualitative. The terms of a specific goal as approved by the
Board establish the performance measurement standards.
	 
	 	 	Certain positions have a greater and more direct impact than others on the achievement of
Bank performance. Those differences are recognized by varying the incentive opportunity,
expressed as a percentage of a participant’s base salary. For executive management and
various other positions in the Bank, generally the greater the control and influence a
participant can exert over Bank goals, the larger a portion of their incentive Award will be
based on Bank performance. Goals may be related solely to one individual, or may relate to
a group of two or more individuals whose efforts are required to produce the results.
Performance measures for individual goals will be established by the applicable department
head.
	 
	 	 	In general, goals requiring attainment of specified performance or completion of specified
tasks and activities shall not be considered as having been met when the actual performance
as measured by completion of the activities has not been attained.
	 
	VII.	 	AWARD DETERMINATION
	 
	 	 	Until a determination of an Award payment has been made by the Board and a participant has
met all applicable requirements under the Plan, no participant has a vested right to any
Award under the Plan. At the conclusion of the applicable Plan Year, the President, after
considering the Bank’s performance against the Bank goal(s), shall recommend to the
Committee and the Board the Plan Awards to be paid to the Management Committee members,
excluding the President. The President is responsible for approval of specific
Awards to be paid to staff members below the Management Committee level.
	 
	 	 	Unless otherwise directed by the Board or otherwise set forth in this Plan, payments of
Awards under the Plan shall be made as soon as possible after the Board has made a
determination regarding the payment of Awards, but no later than 21/2 months after the close
of the applicable Plan Year. Appropriate provisions shall be made for any taxes that the
Bank determines are required to be withheld from any Awards under the applicable laws or
other regulations of any governmental authority, whether federal, state or local. The
payment of any Award shall be subject to such obligations, terms and conditions as the
Committee or the Board may specify in making the Award and, in exercising its discretion to
make any Award determination hereunder, the Board may choose to consider
factors such as overall Bank financial performance, operating environment and other relevant
considerations. Acceptance of any Award shall constitute agreement by the participant to
all obligations, terms, conditions and restrictions so imposed.

2

 

	 	 	A participant who is on formal corrective action for performance at any time during the Plan
Year will be ineligible to receive any payment of an Award. In order for any Award payment
to be made, the most recent examination by the Federal Housing Finance Agency of the
participant’s area(s) of responsibility must not have identified any unsafe or unsound
practice or condition. Participants who terminate employment with the Bank for any reason,
other than death, disability or retirement prior to the Award payout date will not be
eligible for an Award. Participants who are hired prior to July 1 during the Plan Year or
whose employment ends due to involuntary termination (excluding involuntary termination for
cause), death, disability or retirement prior to the Award payout date may be eligible to be
considered for a pro-rated Award.1 Each payment of an Award under this Plan
shall be from the general assets of the Bank.
	 
	VIII.	 	TERMINATION OR AMENDMENT
	 
	 	 	The Plan, in whole or in part, may at any time or from time to time be amended, suspended or
reinstated and may at any time be terminated by action of the Board. The Board has the
power and authority to construe, interpret and administer the Plan. Any decision arising
out of or in connection with the construction, interpretation or administration of the Plan
will lie within the Board’s absolute discretion and will be binding on all parties.

Attachments

 

			
	1	 	Retirement for purposes of this Plan is
defined as 60 years of age or older with at least 10 years of service or 65
years of age or older regardless of service. “Involuntary termination” shall
exclude termination for cause and shall include a “resignation for good reason”
as defined by the IRS 409A Regulations.

3

 

Attachment A—Award Levels

Management Committee and Former Level C of VIP

2009 Base Temporary Plan Incentive Awards

	 	 	 
	 	 	Cap
	CEO

	 	Up to 20%
	 
	 	 
	Other Executives

	 	Up to 18%
	 
	 	 
	Other
Participants (formerly in Level C of the VIP)

	 	Up to 15%

Additional Temporary Plan Incentive Award Opportunity

	 	 	 
	 	 	Additional
	 	 	Incentive
	CEO

	 	Up to 35% annually
	 
	 	 
	Other Executives

	 	Up to 22% annually
	 
	 	 
	Other
Participants (formerly in Level C of the VIP)

	 	Up to 15% annually
	 
	 	 

The additional award opportunity is cumulative each year during the period in which the Temporary
Plan and the additional incentive award financial performance goal remain in effect.

 

 

Attachment B—Temporary Incentive Plan Goals

Management Committee and Former Level C of VIP

2009 Base Incentive Award Opportunity Bank Operational Goals

Five (5) operational goals as follows:

	 	1.	 	Enhancing the loan-level analysis and incorporate a security modeling tool named
Loan Performance into the OTTI evaluation.
	 
	 	2.	 	Simplifying the business to include simplifying product offerings and operating
activities, simplifying debt financing and analyzing the use of derivative products.
	 
	 	3.	 	Evaluate and renovate capital framework.
	 
	 	4.	 	Identify and implement critical aspects of the risk management practices and
metrics.
	 
	 	5.	 	Complete activities related to Federal Housing Finance Agency initiatives.

Each goal shall be supported by a detailed project plan specifying the key objectives,
deliverables, milestones and completion dates. In exercising its sole discretion for any award
payout, the Board as noted on Attachment A may adjust downward the amount of the payout based on
the results of the above five goals. Additionally, the Board may take into consideration other
factors that it deems appropriate when reviewing and approving any recommended payouts under the
Temporary Plan.

Additional Incentive Award Opportunity Goal—Bank Financial Performance

Following the calendar year in which the Bank: 1) makes dividend payments in two (2) consecutive
quarters and 2) repurchases excess capital stock in two (2) consecutive quarters, participants will
be eligible to receive an additional incentive award. The additional award opportunity is
cumulative each year during the period in which the Temporary Plan and the additional incentive
award financial performance goal remain in effect, subject to the Board making any additional
grant. Unless otherwise modified or terminated by the Board, the Plan Year during which this
financial performance goal is in effect shall run from January 1, 2009 through December 31, 2011.

In exercising its sole discretion for any award payout, the Board as noted on Attachment A may
adjust downward the amount of the payout. Additionally, the Board may take into consideration
other factors that it deems appropriate when reviewing and approving any recommended payouts under
the Temporary Plan.exv10w10w2

Exhibit 10.10.2

FEDERAL HOME LOAN BANK OF PITTSBURGH

TEMPORARY INCENTIVE COMPENSATION PLAN

EXECUTIVE OFFICERS AND KEY EMPLOYEES

(Effective 1/1/10)

	I.	 	EFFECTIVE DATE
	 
	 	 	This Temporary Incentive Plan (“Temporary Plan” or “Plan”) of the Federal Home Loan Bank of
Pittsburgh is established effective as of January 1, 2010. Temporary Plan Awards (“Awards”)
may be paid for each Plan Year (January 1 to December 31, except as otherwise described
below) in accordance with the provisions of this Plan. Unless the Board approves renewal of
the Temporary Plan, the Plan will terminate on December 31, 2010.
	 
	II.	 	PURPOSE AND OBJECTIVES
	 
	 	 	The Temporary Plan is designed to retain and motivate executive officers and other key Bank
employees during a period in which the Bank’s financial condition is below its typical
performance level in terms of earnings generation, dividend paying capacity and ability to
repurchase excess capital stock.
	 
	III.	 	PLAN ADMINISTRATION
	 
	 	 	The Plan is administered by the President, the Human Resources Committee of the Board of
Directors (the “Committee”) and the Board of Directors (the “Board”).

	 	A.	 	Responsibilities of the President

	 	 	The President will provide recommendations to the Committee and the Board regarding Plan
participation, Bank performance goals, Bank achievements and Awards for the members of the
Bank’s Management Committee. The President is responsible for approval of: Plan
participation; performance goals; Bank achievements and Awards for staff below the
Management Committee level.

	 	B.	 	Responsibilities of the Committee

	 	 	The Committee will review all Plan recommendations and revisions (including all performance
goals and Awards) from the President and present final recommendations to the Board for its
approval. In addition, the Committee will review the performance of the President and
Management Committee members and make recommendations regarding any Award payouts under the
Plan.

	 	C.	 	Responsibilities of the Board

	 	 	The Board will review and approve as appropriate all recommendations from the Committee and
the President.

1

 

	IV.	 	ELIGIBILITY
	 
	 	 	The Bank’s executive officers and other key Bank staff members are eligible to participate
on the terms described in this Temporary Plan. Eligibility is reviewed each year that the
Temporary Plan is in effect to assure continued appropriateness, and participants are
notified by Human Resources of their participation in the Plan. Upon designation as a
participant, each participant will be provided a copy of the Plan.
	 
	V.	 	TEMPORARY INCENTIVE AWARD OPPORTUNITY LEVELS
	 
	 	 	A summary of the Temporary Plan Award levels is attached as Attachment A. Each participant
shall be provided with a separate document showing his/her level of participation in the
Plan.
	 
	VI.	 	PERFORMANCE MEASURES
	 
	 	 	The Plan Year for the base incentive award opportunity shall mean the annual period ending
December 31. With respect to the financial performance goal and the additional incentive
award opportunity, Plan Year shall mean the period ending December 31, 2012. The Plan goals
can be both quantitative and qualitative. The terms of a specific goal as approved by the
Board establish the performance measurement standards.
	 
	 	 	Certain positions have a greater and more direct impact than others on the achievement of
Bank performance. Those differences are recognized by varying the incentive opportunity,
expressed as a percentage of a participant’s base salary. For executive management and
various other positions in the Bank, generally the greater the control and influence a
participant can exert over Bank goals, the larger a portion of their incentive Award will be
based on Bank performance. Goals may be related solely to one individual, or may relate to
a group of two or more individuals whose efforts are required to produce the results.
Performance measures for individual goals will be established by the applicable department
head.
	 
	 	 	In general, goals requiring attainment of specified performance or completion of specified
tasks and activities shall not be considered as having been met when the actual performance
as measured by completion of the activities has not been attained.
	 
	VII.	 	AWARD DETERMINATION
	 
	 	 	Until a determination of an Award payment has been made by the Board and a participant has
met all applicable requirements under the Plan, no participant has a vested right to any
Award under the Plan. At the conclusion of the applicable Plan Year, the President, after
considering the Bank’s performance against the Bank goal(s), shall recommend to the
Committee and the Board the Plan Awards to be paid to the Management Committee members,
excluding the President. The President is responsible for approval of specific
Awards to be paid to staff members below the Management Committee level.
	 
	 	 	Unless otherwise directed by the Board or otherwise set forth in this Plan, payments of
Awards under the Plan shall be made as soon as possible after the Board has made a
determination regarding the payment of Awards, but no later than 21/2 months after the close
of the applicable Plan Year. Appropriate provisions shall be made for any taxes that the
Bank determines are required to be withheld from any Awards under the applicable laws or
other regulations of any governmental authority, whether federal, state or local. The
payment of any Award shall be subject to such obligations, terms and conditions as the
Committee or the Board may specify in making the Award and, in exercising its discretion to
make any Award determination hereunder, the Board may choose to consider
factors such as overall Bank financial performance, operating environment and other relevant
considerations. Acceptance of any Award shall constitute agreement by the participant to
all obligations, terms, conditions and restrictions so imposed.

2

 

	 	 	A participant who is on formal corrective action for performance at any time during the Plan
Year will be ineligible to receive any payment of an Award. In order for any Award payment
to be made, the most recent examination by the Federal Housing Finance Agency of the
participant’s area(s) of responsibility must not have identified any unsafe or unsound
practice or condition. Participants who terminate employment with the Bank for any reason,
other than death, disability or retirement prior to the Award payout date will not be
eligible for an Award. Participants who are hired prior to July 1 during the Plan Year or
whose employment ends due to involuntary termination (excluding involuntary termination for
cause), death, disability or retirement prior to the Award payout date may be eligible to be
considered for a pro-rated Award.1 Each payment of an Award under this Plan
shall be from the general assets of the Bank.
	 
	VIII.	 	TERMINATION OR AMENDMENT
	 
	 	 	The Plan, in whole or in part, may at any time or from time to time be amended, suspended or
reinstated and may at any time be terminated by action of the Board. The Board has the
power and authority to construe, interpret and administer the Plan. Any decision arising
out of or in connection with the construction, interpretation or administration of the Plan
will lie within the Board’s absolute discretion and will be binding on all parties.

Attachments

 

			
	1	 	Retirement for purposes of this Plan is
defined as 60 years of age or older with at least 10 years of service or 65
years of age or older regardless of service. “Involuntary termination” shall
exclude termination for cause and shall include a “resignation for good reason”
as defined by the IRS 409A Regulations.

3

 

Attachment A—Award Levels

Management Committee and Former Level C of VIP

2010 Base and Additional Temporary Incentive Plan Award Opportunity

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2010	 	2011	 	2012
	 	 	Base	 	Additional	 	Base	 	Additional	 	Base	 	Additional
	 	 	Incentive	 	Incentive	 	Incentive	 	Incentive	 	Incentive	 	Incentive
	Participant	 	Award	 	Award	 	Award	 	Award	 	Award	 	Award
	Level	 	Opportunity	 	Opportunity	 	Opportunity	 	Opportunity	 	Opportunity	 	Opportunity
	CEO

	 	Up to 22%
	 	Up to 200%
	 	Up to 22%
	 	Up to 160%
	 	Up to 22%
	 	Up to 120%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Other Executives

	 	Up to 20%
	 	Up to 135%
	 	Up to 20%
	 	Up to 108%
	 	Up to 20%
	 	Up to 81%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Other
Participants
(formerly in Level
C of the VIP)

	 	Up to 17%
	 	Up to 100%
	 	Up to 17%
	 	Up to 80%
	 	Up to 17%
	 	Up to 60%

Participants shall be entitled to an additional incentive award up to the percentage
indicated above for the year in which the Additional Incentive Award Opportunity Goal is met.
Such additional incentive award opportunity percentage shall be applied to the participant’s
January 1, 2010 base salary. For example, if the goal is met in 2011, the CEO, Other
Executives and Other Participants would be eligible for payouts of up to 160%, 108% and 80%,
respectively.

 

 

Attachment B—Temporary Incentive Plan Goals

Management Committee and Former Level C of VIP

Base Incentive Award Opportunity Goals

For each year the Temporary Incentive Compensation Plan is in effect, goals shall be established
and approved by the Board. In exercising its sole discretion for any award payout, the Board may
adjust downward the amount of the payout based on the results of the approved goals. Additionally,
the Board may take into consideration other factors that it deems appropriate when reviewing and
approving any recommended payouts under the Temporary Plan. Base Incentive Award Opportunities are
set forth in the table presented in Attachment A.

Additional Incentive Award Opportunity Goal—Bank Financial Performance

Following the calendar year in which the Bank: 1) makes a market based dividend payment in two (2)
consecutive quarters and 2) implementation of a plan to repurchase excess capital stock has been in
process in two (2) consecutive quarters, participants will be eligible to receive an additional
incentive award. Unless otherwise modified or terminated by the Board, the Plan Year during which
this financial performance goal is in effect shall run from January 1, 2010 through December 31,
2012.

In exercising its sole discretion for any award payout, the Board may adjust downward the amount of
the payout. Additionally, the Board may take into consideration other factors that it deems
appropriate when reviewing and approving any recommended payouts under the Temporary Plan.

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