Document:

EXHIBIT 10.7.4

 

FEDERAL HOME LOAN BANK OF BOSTON

2009 DIRECTOR COMPENSATION POLICY

 

A fee of $4,875 per meeting shall be paid to all Directors that attend
all or part of a meeting of the Board of Directors.  A fee of $5,500 per meeting shall be paid to
the chair of all committees except for the chair of the Audit Committee which
shall be $6,125 per meeting.  A fee of $6,125
per meeting shall be paid to the vice chair of the Board.  A fee of $6,750 per meeting shall be paid to
the chair of the Board.  This fee shall
also be provided to any person elected by the Board to serve as chairman pro
tempore or to the vice chair if the vice chair presides for an entire meeting
of the Board.  There are ten regularly
scheduled meetings in 2009.

 

A fee of $2,000 per meeting shall be paid to all committee members,
including ex officio members, who attend all or any part of any meeting of a
committee of the Board.  A fee of $2,000
shall be paid to any director who attends all or part of the annual
shareholders meeting.

 

A fee of $1,325 per meeting shall be paid to any Director for
participation in telephonic conference calls or when participating by telephone
for all or any part of a meeting in which the Director would be entitled to
receive a meeting fee for in-person attendance at such meeting.

 

Fees shall be paid per meeting. 
For example, if a Board meeting and committee meeting occur on the same
day, a separate fee shall be payable for attendance at each meeting.  Additionally, in the case of a multi-day
meeting, a separate fee shall be payable for each day’s attendance at the same
meeting.

 

In the event that inclement weather prevents the occurrence of a
planned meeting of the Board or one of its committees, the Directors shall be
entitled to receive the applicable meeting fee called for in the Statement of
Policy, minus any fees received if an in-person meeting is changed to a
telephonic meeting.

 

Maximum Fees

 

The maximum fees for 2009 for the Chair shall be $60,000, for the Vice
Chair $55,000, for the Chair of the Audit Committee $55,000, for all other
Committee Chairs $50,000, and for Directors $45,000.

 

Administrative Matters

 

The Personnel Committee shall annually review this policy and shall
submit its recommendation to the Board. 
The Board shall consider the recommendations of the Personnel Committee
and shall approve the policy no later than the first regularly scheduled
meeting of the Board in which the policy shall apply.  The Board is authorized, in its sole
discretion, to interpret the provisions of the policy and to address situations
not anticipated or covered by this policy, consistent with the requirements set
forth in the regulations promulgated by the Federal Housing Finance Agency, if
any.

 

 

The following projections assume attendance at eight board meetings and
three committee meetings.

 

	
  Director cap:

  	
   

  	
  $45,000

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8 board meetings

  	
  x

  	
   

  	
  $4,875

  	
  =

  	
  $39,000

  
	
   

  	
  3 committee meetings

  	
  x

  	
   

  	
  2,000

  	
  =

  	
  6,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $45,000

  
	
  Committee Chair cap:

  	
  $50,000

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8 board meetings

  	
  x

  	
   

  	
  $5,500

  	
  =

  	
  $44,000

  
	
   

  	
  3 committee meetings

  	
  x

  	
   

  	
  2,000

  	
  =

  	
  6,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $50,000

  
	
  Audit Committee Chair cap

  	
  $55,000

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8 board meetings

  	
  x

  	
   

  	
  $6,125

  	
  =

  	
  $49,000

  
	
   

  	
  3 committee meetings

  	
  x

  	
   

  	
  2,000

  	
  =

  	
  6,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $55,000

  
	
  Vice Chair cap:

  	
  $55,000

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8 board meetings

  	
  x

  	
   

  	
  $6,125

  	
  =

  	
  $49,000

  
	
   

  	
  3 committee meetings

  	
  x

  	
   

  	
  2,000

  	
  =

  	
  6,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $55,000

  
	
  Chair cap:

  	
  $60,000

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8 board meetings

  	
  x

  	
   

  	
  $6,750

  	
  =

  	
  $54,000

  
	
   

  	
  3 committee meetings

  	
  x

  	
   

  	
  2,000

  	
  =

  	
  6,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $60,000

  

 

2EXHIBIT 10.8

 

SEVERANCE AGREEMENT AND
GENERAL RELEASE

 

The
Severance Agreement and General Release (hereinafter “Agreement” or “Severance
Agreement”) is made and entered into this 31st day of December, 2008 by and
between Michael A. Jessee (“Mr. Jessee”) and Federal Home Loan Bank of
Boston (“FHLBB” or “the Employer”).

 

WHEREAS, Mr. Jessee presently serves as the President of FHLBB;
and

 

WHEREAS
FHLBB and Mr. Jessee have reached an agreement pursuant to which Mr. Jessee
will resign his employment with FHLBB in exchange for certain considerations;

 

NOW,
therefore, in consideration of the severance compensation provided to Mr. Jessee,
the mutual covenants herein set forth, 
and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Mr. Jessee, and FHLBB hereby
agree as follows:

 

1.             Termination
of Employment:    Mr. Jessee agrees
that he will execute the resignation letter attached hereto as Exhibit A
effective April 30, 2009 (the “Termination Date”) upon execution of this
Agreement.  This Agreement confirms that
as of the Termination Date Mr. Jessee will have resigned from his position
as President of FHLBB and any and all other positions that he may hold as an
officer or director of FHLBB, and any industry committees, panels or forum for
which he represents FHLBB.  A form of
resignation is attached hereto as Exhibit A.

 

2.             Continuing
Responsibilities:    Mr. Jessee agrees
that from the date of the execution of this Agreement through April 30,
2009 he will work diligently and in good faith to (a) perform his duties
as President of FHLBB, (b) comply with all federal and state laws, rules,
regulations and guidelines governing the operations of FHLBB, (c) comply
with all policies, regulations, and practices of FHLBB and (d) comply with
all directives from the Board of Directors of FHLBB.  Mr. Jessee further agrees (a) to
work diligently and in good faith to effect a smooth transition with his
successor as President of FHLBB and (b) not to approve any expenses for
the 2009 year without the approval of the Chairman of the Board of Directors or
the Chair of the Compensation Committee.

 

3.             Return of
Property:    Mr. Jessee agrees that by
the end of the work day on April 30, 2009 he will return to FHLBB all
FHLBB property in his possession 

 

1

 

including a laptop computer,
cell phone, all FHLBB documents, and keys.  Mr. Jessee further agrees that he will
not delete any FHLBB information on the laptop computer or his desk top computer
at work and will provide FHLBB with any pass words necessary for FHLBB to
access all FHLBB information on the computers, including emails.

 

4.             Workers Compensation Statement:    Mr. Jessee
agrees that by the end of the work day on April 30, 2009 he will execute
the Workers Compensation statement attached hereto as Exhibit B as part of
this Agreement.

 

5.             Execution of General Release:    Mr. Jessee
agrees that at the end of the work day on April 30, 2009 he will
re-execute the General Release attached hereto as Exhibit C.

 

6.             No Filings:    Mr. Jessee
confirms that he has filed no charge, complaint, or action in any forum against
FHLBB or its officers, directors or employees, including in any city, state or
federal court or administrative agency.

 

7.             Confidential Information:    Mr. Jessee
acknowledges that during the term of his employment with FHLBB, he has had
access to proprietary information of FHLBB. 
Mr. Jessee understands and agrees that he is bound to keep said
information confidential after his termination of employment.

 

8.             Consideration
and Benefits to Mr. Jessee:    Mr. Jessee
will be provided with the following benefits:

 

(a) 
During the transition period from the execution of this Agreement through April 30,
2009 (“Transition Period”), Mr. Jessee will receive his present salary and
benefits, minus his normal deductions for taxes.  He will continue during the transition period
to accrue benefits and to be subject to the benefit plans to which he is entitled
according to the terms of the respective benefit plan documents of FHLBB
including the Pentegra Defined Benefit Plan, Pension Benefit Equalization Plan,
Pentegra Defined Contribution Plan, and Thrift Benefit Equalization Plan.

 

(b) 
On April 30, 2009, Mr. Jessee will be paid for all vacation time that
he has accrued to that date but has not used, minus normal tax withholdings.

 

(c) 
During the eighteen (18) months from May 1, 2009 through October 31,
2010 (the “severance pay period”), FHLBB shall provide Mr. Jessee with
salary continuation at his current base rate of pay.  The severance payments shall be paid through
FHLBB’s normal payroll, minus normal deductions for taxes.  Should Mr. Jessee die during the
severance pay period, all unpaid amounts shall be paid to his estate.  Mr. Jessee shall not accrue any benefits
during the severance pay period.

 

(d) 
FHLBB shall continue to provide Mr. Jessee with the same coverage that he
presently is provided under FHLBB’s group health plan until Mr. Jessee
reaches 65 years of age.  FHLBB shall continue
to pay the same percentage of the insurance premium for the coverage as
presently provided to Mr. Jessee.  The
coverage will be provided under COBRA for the first eighteen (18) months after
the termination of Mr. Jessee’s employment.  Thereafter, FHLBB shall use its good faith
efforts to have Mr. Jessee 

 

2

 

continue the same coverage
under FHLBB’s group health plan.  If the
carrier for FHLBB’s group health plan does not permit Mr. Jessee to
continue his coverage under the group health plan, Mr. Jessee will be
responsible for obtaining replacement coverage and FHLBB shall pay as a
contribution to Mr. Jessee’s premiums on a monthly basis an amount equal
to the net after tax premium presently paid by FHLBB for Mr. Jessee’s
current coverage until Mr. Jessee reaches 65 years of age.

 

(e) 
Mr. Jessee will be eligible for a potential bonus under the 2008 Executive
Incentive Plan.

 

(f)   During the transition period, Mr. Jessee
will be entitled to participate in the benefits provided to him under the
personnel policies of the FHLBB including medical and life insurance coverage
according to the terms of the policies.

 

(g) 
FHLBB shall provide Mr. Jesse with a new computer of his choice, not to
exceed $ 2,500.00  in cost.

 

(h) 
FHLBB shall provide to Mr. Jesse a payment of $5,000 to defray any
professional fees incurred in the review of this Agreement.  Payment will be made within five days
following expiration of the revocation period referenced in Section 15
below provided Mr. Jessee has not revoked this Agreement.

 

9.             Non-Disparagement.    The
FHLBB agrees that it will not, directly or indirectly, disparage Mr. Jessee
or to do or say anything that will otherwise harm his personal or professional
reputation.  Mr. Jessee agrees that
he will not, directly or indirectly, disparage FHLBB or any of the people,
products or organizations associated with FHLBB, including without limitation
the officers, directors and shareholders of FHLBB, and that he will not,
directly or indirectly, otherwise do or say anything that could disrupt the
morale of the employees of FHLBB or otherwise harm FHLBB’s business or
reputation.  Nothing herein shall
preclude Mr. Jessee or FHLBB, however, from responding truthfully as
required by lawful process, summons or subpoena or disclosing such information
as may be required by any regulatory agency or the securities laws in
connection with any disclosure obligations or otherwise as may be required by
applicable law.

 

10.           No Admissions.    This
Agreement shall not be construed as any admission by Mr. Jessee or FHLBB
that either violated any common law or statutory rights enjoyed by the other
party or in any way breached any contractual obligations either had to one
another.

 

11.           Public Announcement.    Mr. Jessee
and FHLBB agree that they will draft together a joint announcement regarding
the termination of Mr. Jessee’s employment with FHLBB.

 

11.           Binding Effect.    This
Severance Agreement and General Release shall inure to the benefit of, and be
binding upon, the parties and their respective representatives, agents,
executors, heirs, successors and assigns.

 

12.           Confidentiality.    Mr. Jessee
agrees to keep the terms and amount of

 

3

 

severance benefits under the
Agreement completely confidential, and not to disclose any such matters to
anyone, in words or in substance, except as set forth in the section.  Notwithstanding the foregoing, Mr. Jessee
may disclose such matters (a) to his spouse, attorney, financial advisors,
and accountant, provided that he shall first obtain any such person’s agreement
to keep any such matters completely confidential; and (b) to the extent
required by law or to the extent necessary to enforce Mr. Jessee’s rights
under the Agreement.  FHLBB agrees that
it will not disclose the terms of the Agreement to any person, externally or
internally, except on a strict need-to-know basis only to the extent necessary
to further a specific and legitimate business interest of FHLBB, or to the extent
required by law or to the extent necessary to enforce rights under the
Agreement.

 

13.           Transition; Cooperation.  Mr. Jessee agrees during the severance
pay period to be available at mutually convenient times and by telephone or
email to answer informational questions FHLBB may have about its business,
records, past transactions and other matters, and reasonably to assist FHLBB to
transfer business knowledge and to transition to other persons the tasks for
which he have been responsible during his employment with the FHLBB.  He also agrees reasonably to assist FHLBB
hereafter with respect to all matters arising during or related to his
employment, including but not limited to matters in connection with any
prosecution of intellectual property rights, litigation or similar process,
governmental investigation, or other proceeding or process which may arise
following the date of this Agreement.

 

14.           Entire Agreement.    The
Severance Agreement and General Release sets forth the entire agreement between
the parties pertaining to the subject matter hereof.   All prior and contemporaneous conversations,
negotiations, proposals, representations, covenants, and warranties with
respect to the subject matter of this Agreement, whether oral or written, are
merged herein and superseded by this Agreement. 
Neither party is relying on any statement, representation or
understanding not contained herein.  This
Agreement may be amended only by a written instrument which is signed by both
parties hereto and which specifically states that it is an amendment to this
Agreement.  No waiver of any right
hereunder shall be valid unless in a writing signed by the waiving party.  No failure or other delay by any party
exercising any right, power, or privilege hereunder shall be or operate as a
waiver thereof, nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power, or
privilege.

 

15.           Compliance with OWBPRA.    Mr. Jessee
acknowledges that he has been given the opportunity, if he so desires, to
consider the Severance Agreement and General Release for twenty-one (21) days
before executing it.   In the event that
he executes the Severance Agreement and General Release within less than
twenty-one (21) days of the date of its delivery to him, Mr. Jessee
acknowledges that such decision was entirely voluntary and that he had the
opportunity to consider the Severance Agreement and General Release for the
entire twenty-one day (21) period.  FHLBB
and Mr. Jessee acknowledge that for a period of seven (7) days from
the date of the execution of the Severance Agreement and General Release, Mr. Jessee
shall retain the right to revoke the Agreement by written notice to Douglas F.
Seaver, Esq., Hinckley, Allen & Snyder LLP, 

 

4

 

28 State Street, Boston,
Massachusetts 02109; and that the Severance Agreement and General Release shall
not become effective or enforceable until the expiration of such revocation
period, and that no payments or actions called for by FHLBB under the Severance
Agreement and General Release shall be made until the expiration of such
revocation period.

 

16.           Acknowledgment.    Each of the parties
specifically acknowledges and certifies that he or it has read each and every
term and provision of the Severance Agreement and General Release, that he or
it has had the opportunity to thoroughly discuss all aspects of the Severance
Agreement and General Release with legal counsel, and that he or it fully
understands the terms and conditions of the Severance Agreement and General
Release, including but not limited to the Release set forth herein, and that he
or it is freely and voluntarily entering into the Severance Agreement and
General Release.

 

17.           Signing of Counterparts.    This
Severance Agreement and General Release may be signed in counterparts, each of
which will be considered an original and together shall constitute one
agreement.

 

18.           Dispute Resolution.    Any and all disputes
arising out of or relating to the interpretation and enforcement of this
Agreement shall be arbitrated before a single arbitrator in Boston,
Massachusetts in accordance with the Commercial Arbitration Rules of the
American Arbitration Association then in effect.  Notwithstanding the foregoing to the
contrary, for the purposes of obtaining any preliminary injunction or other
equitable relief, either party to this Agreement may file an action in a court
of law to seek a stay, injunction or other similar form of equitable relief to preserve
the rights and remedies of the parties during the pendency of any arbitration
dispute.  The decision of the arbitrator
shall be binding upon the parties hereto. 
The arbitrator shall be empowered to award any permanent injunction or
other form of equitable remedy.  The
arbitrator shall also have the power to award the expense of the arbitration,
including, without limitation, the award of reasonable attorneys’ fees to the
prevailing party or in any other manner as the arbitrator may determine.  The decision of the arbitrator shall be
executory and judgment thereon may be entered by any court of competent
jurisdiction, and both parties hereby submit to the personal jurisdiction of
courts located within Suffolk County of the Commonwealth of Massachusetts, and
agree that all such proceedings will be brought exclusively in such
courts.  The parties hereby agree to
waive their right to have any dispute between them under this Agreement in a
court of law by a judge or a jury.

 

19.           Headings and  Captions.    The headings and
captions of the sections of this Agreement are for convenience of reference
only and in no way define, limit or affect the scope or substance of any
section of this Agreement.

 

20.           Governing Law.    The
Agreement shall be construed in accordance with and governed for all purposes
by the laws of the State of Massachusetts, without regard to its conflict of
laws rules.  The federal and state courts
in Massachusetts shall have

 

5

 

exclusive jurisdiction and
venue for all actions with respect to the Agreement, and each party agrees to
service of process by the mails in accordance with applicable court rules.  I UNDERSTAND THAT MY RIGHT TO RECEIVE
BENEFITS SET FORTH IN THIS AGREEMENT IS SUBJECT TO MY COMPLIANCE WITH THE TERMS
AND CONDITIONS SET FORTH IN THIS AGREEMENT AND THAT I WOULD NOT RECEIVE
SEVERANCE PAY BUT FOR MY EXECUTION OF THIS SEPARATION AGREEMENT AND RELEASE.

 

                21.           Section 409A.    Each
payment of salary continuation during the separation pay period shall be
treated as a right to receive a series of separate and distinct payments.  As a “Specified Employee”  (as defined in Section 409A), Mr. Jessee
acknowledges that if any restrictions imposed upon Specified Employees preclude
him from receiving all or any portion of payments hereunder during the six (6) month
period following the Termination Date, such payments shall not be paid until
the date which is the first business day after said six (6) month period
has elapsed, and any amounts so delayed shall be paid in a lump sum immediately
upon conclusion of said six (6) month period.

 

IN
WITNESS WHEREOF, the parties have executed the Severance Agreement and General
Release as of the day and year first above written, intending the document to
take effect as a sealed instrument.

 

 

	
  /s/ Michael A. Jessee

  	
   

  	
  /s/ Jan A. Miller

  
	
  Michael A. Jessee

  	
   

  	
  Federal Home Loan Bank of
  Boston

  
	
   

  	
   

  	
  By:

  	
  Jan A. Miller

  
	
   

  	
   

  	
   

  	
  Director

  

 

6

 

EXHIBIT A

 

December  , 2009

 

Chairman

Board of Directors

Federal Home Loan Bank of
Boston

111 Huntington Avenue

Boston, MA

 

RE:          Resignation of Employment

 

Dear                   :

 

I
hereby resign my employment and all positions with FHLBB effective April 30,
2009.

 

Sincerely,

 

 

Michael A. Jessee

 

7

 

EXHIBIT B

 

ILLNESS/INJURY REPORT

 

MASSACHUSETTS
LAW REQUIRES THAT YOU REPORT ALL ILLNESS OR INJURIES TO THE FHLBB
IMMEDIATELY.  THEREFORE, IF YOU HAD A
WORK RELATED ILLNESS/INJURY THAT YOU NEGLECTED TO REPORT, PLEASE DO SO NOW SO
THAT WE CAN COMPLY WITH THE MASSACHUSETTS LABOR CODE.

 

PLEASE
NOTE THAT ANY MEDICAL TREATMENT YOU RECEIVE PRIOR TO NOTIFYING FEDERAL HOME
LOAN BANK OF BOSTON WILL NOT BE PAID BY THE INSURANCE FHLBB AND YOU WILL BE
RESPONSIBLE FOR THE BILLS.

 

	
  o

  	
   

  	
  Yes,
  I have an illness/injury to report.

  
	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  No,
  I do not have an industrial illness/injury to report. Further more, I hereby
  state that: (a) I am presently not ill, injured, or in need of treatment
  due to an occupational illness/injury and certify that I have reported all
  work related illnesses and injuries to you; (b) I have not received or
  sought medical treatment regarding any work-related activity with the FH LBB;
  and (c) I am not ill or injured, and am not in need of treatment.

  

 

	
  Employee’s

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Employee’s

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  	
   

  

 

8

 

EXHIBIT C

 

GENERAL RELEASE

 

As a material inducement for FHLBB to enter into this Agreement, Mr. Jessee
hereby irrevocably and unconditionally remises, releases and forever discharges
FHLBB and its staff, officers, owners, directors, employees and insurers and
all of their predecessors, successors, and assigns, both personally and as its
agents, (the “Releasees”), of and from any and all debts, demands, actions,
causes of actions, suits, accounts, covenants, contracts, agreements, damages,
and any and all claim, counterclaims, demands, and liabilities whatsoever of  every
name and nature, both in law and in equity, which against the said Releasees, Mr. Jessee,
now has or ever had from the beginning of the world to the date hereof.  Mr. Jessee hereby acknowledges and
agrees that the foregoing Release is intended as a  full and
complete release of all foregoing claims that he may or might have, and in
accepting the payment by FHLBB of  the severance pay and benefits as
set forth herein above, he does so in full settlement of any and all such
claims, and he intends to and does hereby release all of the Releasees of and
from any and all liability of any nature whatsoever for all damages or injuries
sustained or alleged to have been sustained by him up to this date,
specifically including all expenses to which he may have been put, including
attorney’s fees, and also including all consequential damages to him, whether
the same may be known or unknown to him, expected or unexpected by her, and all
claims including but not limited to, any claim under M.G.L. c. 151; Title VII of  the
Civil Rights Act of 1964, as  amended; the Age Discrimination in
Employment Act, M.G.L. c. 151B, the Americans with Disabilities

 

9

 

Act,
and claims for misrepresentation, breach of contract, bad-faith termination,
and or attorneys’ fees.

 

This
release, however, shall not apply to the following: a) any claim to enforce, or
for breach of, the Severance Agreement and General Release; b) any claim for
indemnification and defense pursuant to any FHLBB policy, such as  its
by-laws, or any insurance policy it holds; c) any claim for  vested
benefits under any Employee Retirement Income Security Act (ERISA) plan, or any
employee welfare benefit plan; d) any claim for Workers’ Compensation benefits;
e) any claim for unemployment assistance benefits; or f) any claim for extended
health insurance benefits under COBRA. 
Nothing in the Agreement shall preclude Mr. Jessee from
communicating with, or cooperating with any investigation of unfair or illegal
employment practices by, the United States Equal Employment Opportunity Commission
or any other government agency charged with enforcement of laws pertaining to
the regulation of the workplace.

 

Date:  April 30, 2009

 

 

	
   

  	
   

  
	
   

  	
   

  
	
  Michael
  A. Jessee

  	
   

  

 

10

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