EX-10.1






Executive Officer Severance Policy

June 23, 2017




Policy Information




	 	 	 
	Document Title:

	 	Executive Officer Severance Policy
	Content Owner:

	 	Director of Human Resources and

Inclusion (HRI)
	Certification of Compliance Contact:

	 	N/A
	Policy Category:

	 	FHLBank Policy
	FHLBank-Level Approver:

	 	President and Chief Executive Officer

(CEO)
	Board-Level Approver:

	 	Full Board (Compensation)
	Review Frequency:

	 	Annually
	Initial Effective Date:

	 	6/19/2015
	Last CEO Approval Date:

	 	06/05/2017
	Next Review Date:

	 	06/2018











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Introduction



This FHLBank Policy, governed by the board of directors (board), establishes the process for
providing severance benefits to Executive Incentive Compensation Plan participants (Executive
Officers).



Purpose



The purpose of this Policy is to define the severance process to ensure effective and consistent
support for Executive Officers terminating employment with FHLBank.



Scope



This Policy provides the process and framework for providing severance benefits.



General Guidelines




	1.	 	Eligibility.





An Executive Officer is eligible for Severance Pay if FHLBank terminates the Executive Officer’s
employment with or without cause, other than as provided below. The availability or election of
early retirement will not be considered in determining whether an Executive Officer is eligible to
receive Severance Pay, as defined below.



An Executive Officer is not eligible for Severance Pay if:




	a.	 	The Executive Officer voluntarily terminates employment (including termination as a result of
disability or other failure to return from leave or due to death); or






	b.	 	The Executive Officer’s employment is terminated by FHLBank for actions or inactions of the
Executive Officer which FHLBank reasonably concludes constitutes misconduct (misconduct being
defined as an Executive Officer willfully (1) failing to perform the duties of his or her
position or (2) acting against the best interest of FHLBank (in the reasonable opinion of
FHLBank), including, but not limited to, violation of FHLBank policies, insubordination,
dishonesty, breach of trust, disclosure of confidential or proprietary information, violation
of law or commission of an act of moral turpitude, failure to perform the function of his or
her job or to demonstrate adequate efforts to successfully complete a performance plan, job
abandonment, or excessive tardiness or absenteeism).






	2.	 	Amount of Severance Pay.





Provided the other requirements of this Policy are met, and if the Executive Officer timely
provides FHLBank an enforceable release waiving claims against FHLBank, on a form provided by
FHLBank (a Separation Agreement), the Executive Officer shall be eligible to receive Severance Pay
equal to the following amount of the Executive Officer’s final base salary as indicated for the
Executive Officer’s title (titles not specifically listed shall be paid the amount as the next
lower (per FHLBank guidelines) ranking title specifically listed):



	 	 	 
	President & Chief Executive Officer

	 	12 Months
	 

	 	 
	Executive Vice President, Chief Compliance Officer & General Counsel

	 	9 Months
	 

	 	 
	Senior Vice President & Chief Financial Officer

	 	6 Months
	 

	 	 
	Senior Vice President & Chief Administrative Officer

	 	6 Months
	 

	 	 
	Senior Vice President & Chief Information Officer

	 	6 Months
	 

	 	 






Severance Pay includes the following:




	A.	 	Salary Continuation:






For a period of months defined above, the Executive Officer will continue to receive his or her
regular salary, equal to the base salary received as of the separation date. These payments will
be made in accordance with FHLBank’s current payroll cycle and subject to all appropriate
withholding and taxation. These payments will be subject to the Executive Officer’s continued
adherence to the terms and provisions of the Separation Agreement and may be subject to
reduction due to any payments the Executive Officer may owe to FHLBank.




	B.	 	Incentive:






Any incentives to be paid to Executive Officers shall be paid in accordance with the Executive
Incentive Compensation Plan.




	C.	 	Benefit Continuation:






For a period of months defined above, the Executive Officer may elect to participate in
FHLBank’s eligible benefit plans and pay solely the premium as though an active business partner
(note that this premium is subject to possible increase in FHLBank’s sole discretion). These
payments will be deducted from the Executive Officer’s severance benefit payments. FHLBank will
pay the remainder of the COBRA coverage costs. An Executive Officer will not receive any
additional service credit pursuant to the defined benefit plan or the Benefit Equalization Plan
as a result of salary or benefit continuation.




	3.	 	Policy Administration.





HRI is responsible for administering this Policy and decisions regarding eligibility and Severance
Pay shall be in the sole discretion of the Director of HRI. This Policy does not give any Executive
Officer, or any person whosoever, the right to be retained in the service of FHLBank, and all
business partners shall remain subject to discharge to the same extent as if this Policy had never
been adopted. This Policy may be changed or ended at any time, with or without prior notice and
for any reason at FHLBank’s sole and absolute discretion.



Exceptions/Violations



Exceptions to this Policy may be approved by the board.



Policy Review



This Policy shall be reviewed annually and revised as needed by the Director of HRI. Following such
review, the Policy shall be submitted for review by the Executive Team and approval by the
President and CEO. In the event of any proposed revisions to this Policy, such revisions shall be
submitted for review and approval by the Compensation committee and the board.




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