Document:

EX-10.1

Executive Incentive

Compensation Plan

December 19, 2014

Policy Information

	 	 	 
	Document Title:

	 	Executive Incentive Compensation Plan
	Content Owner:

	 	Director of Human Resources
	Certification of Compliance Contact:

	 	N/A
	Policy Category:

	 	FHLBank Policy
	FHLBank-Level Approver:

	 	Policy Oversight Group
	Board-Level Approver:

	 	Full Board (Compensation)
	Review Frequency:

	 	Annually
	Initial Effective Date:

	 	1/1/2012
	Last POG Approval Date:

	 	12/05/2014
	Next Review Date:

	 	12/2015

Table of Contents

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	1.0	 	 	Plan Objectives
	 	 	2	 
	 	 	 	 	 	2.0	 	 	Definitions
	 	 	3	 
	 	 	 	 	 	3.0	 	 	Eligibility
	 	 	4	 
	 	 	 	 	 	4.0	 	 	Total Base Opportunity
	 	 	6	 
	 	 	 	 	 	5.0	 	 	Performance Measures
	 	 	6	 
	 	 	 	 	 	6.0	 	 	Award Determination
	 	 	7	 
	 	 	 	 	 	7.0	 	 	Distribution of Awards
	 	 	8	 
	 	 	 	 	 	8.0	 	 	Plan Communication
	 	 	8	 
	 	 	 	 	 	9.0	 	 	Administrative Control
	 	 	9	 
	 	 	 	 	 	10.0	 	 	Miscellaneous Conditions
	 	 	9	 
	 	 	 	 	 	 	 	 	Appendices
	 	 	15	 
	 	1.0	 	 	Plan Objectives

1.1 The purpose of the Federal Home Loan Bank of Topeka Executive Incentive
Compensation Plan is to:

1.1.1 Promote consistently high value creation for FHLBank Topeka members by
promoting the long-term growth and profitability of FHLBank Topeka in accordance with
the achievement of its long-term strategic objectives and mission;

1.1.2 Promote the mission and financial performance of FHLBank Topeka by providing
incentives to key employees for accomplishing annual goals that are aligned with
FHLBank Topeka’s mission and business objectives;

1.1.3 Promote key employee loyalty and dedication to FHLBank Topeka and its
strategic objectives by rewarding performance that facilitates the growth and financial
stability and success of FHLBank Topeka; and

1.1.4 Enhance FHLBank Topeka’s capacity to attract, retain, and motivate key
employees by offering competitive short-term and long-term total incentive compensation
opportunities, including those Deferred Incentive opportunities provided in Plan
Section 2.1.7, to key employees who are also vital to FHLBank Topeka’s future success.

1.2 Payments awarded under this Plan, when combined with base salary and other
benefits, are designed to provide competitive total compensation to key employees for
achieving FHLBank Topeka’s desired strategic objectives.

1.3 The Plan is a cash-based annual incentive plan with a long-term deferral
component that establishes individual incentive compensation award opportunities
related to achievement of performance objectives by FHLBank Topeka and by
Participants during Base or Deferral Performance Periods.

2.0 Definitions

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

2.1.1 Base Performance Period means the period over which FHLBank Topeka’s
performance is measured based on parameters set forth in the Target Document, and over
which a Cash Incentive can be earned and vested;

2.1.2 Board means FHLBank Topeka’s Board of Directors;

2.1.3 Cash Incentive means the portion of the Total Base Opportunity that is not
the Deferred Incentive, and becomes payable to the Participant (i) no later than 2 1/2
months following the later of the end of the Base Performance Period upon achievement
of the Performance Measures, or (ii) as soon as practicable after a determination of
the director of the FHFA that the director will not act upon his authority to prohibit
compensation that is not reasonable and comparable to compensation paid to executives
at other financial institutions.

2.1.4 Cause has the meaning given to it in Section 10.4.b;

2.1.5 CEO means the Chief Executive Officer of FHLBank Topeka;

2.1.6 Compensation Committee means the Compensation Committee of the Board;

2.1.7 Deferred Incentive means 50% of the Total Base Opportunity, which shall be
deferred for the Deferral Performance Period and is subject to adjustment based upon
the extent of achievement of the Performance Measures during the Deferral Performance
Period as set forth in the Target Document for a Deferral Performance Period;

2.1.8 Deferral Performance Period is the three-year period directly following each
Base Performance Period over which FHLBank Topeka’s performance is measured based on
parameters set forth in the Target Document and during which a Deferred Incentive can
be earned;

2.1.9 Disability has the meaning given to it in Section 10.4.a;

2.1.10 Extraordinary Occurrences means those events that, in the opinion and
discretion of the Compensation Committee, are outside the significant influence of the
Participant or FHLBank Topeka and are likely to have a significant unanticipated
effect, whether positive or negative, on FHLBank Topeka’s operating and/or financial
results;

2.1.11 FHFA means the Federal Housing Finance Agency or any successor;

2.1.12 FHLBank Topeka means the Federal Home Loan Bank of Topeka;

2.1.13 Final Deferred Incentive Award means the Deferred Incentive ultimately paid
to a Participant under the Plan for a Deferral Performance Period, as otherwise
applicable herein;

2.1.14 Participant means a person who is eligible to take part in the Plan for the
designated Base or Deferral Performance Period as determined by the Board;

2.1.15 Participation Agreement means the agreement between FHLBank Topeka and a
Participant, the terms of which govern a Participant’s participation in this Plan, an
example of which is set forth in Appendix A;

2.1.16 Performance Measure means each performance factor that is taken into
consideration under the Plan in determining the value of a Cash Incentive or Final
Deferred Incentive Award;

2.1.17 Plan means the Federal Home Loan Bank of Topeka Executive Incentive
Compensation Plan;

2.1.18 Retirement means a Participant meeting one of the following criteria: (1)
55 years of age or older with at least 10 years of service; (2) 60 years of age or
older with at least 5 years of service; (3) 65 years of age or older regardless of
service; or (4) the combination of the Participant’s age and years of service equals or
exceeds 80; provided that, in each case, the Participant enters into a non-solicitation
agreement in the form required by the FHLBank;

2.1.19 Target Document means the document in effect for a Base Performance Period
and Deferral Performance Period, as approved and adopted by the Board, that
sets forth the Total Base Opportunity, Performance Measures, and other applicable terms
and conditions relevant to the operation of this Plan;

2.1.20 Termination of Service means the occurrence of any act or failure to act
that actually or effectively causes or results in a Participant ceasing, for whatever
reason, to be an employee of FHLBank Topeka;

2.1.21 Total Base Opportunity means the percentage of a Participant’s salary that
will be provisionally awarded to a Participant as incentive compensation for achieving
performance levels under each Performance Measure during the Base Performance Period,
50% of which shall be the Cash Incentive, and 50% of which shall be the Deferred
Incentive which is subject to adjustment, and both of which are subject to the other
provisions of this Plan;

3.0 Eligibility

3.1 Individual employees eligible for participation in the Plan for each
Base Performance Period and corresponding Deferral Performance Period will be
recommended by the CEO to the Board for approval. In the case of the CEO, the
Board has sole authority to approve the CEO’s eligibility during the applicable
periods.

3.2 Eligibility shall be limited to a select group of key management or
other highly-compensated employees (i.e., key employees), but normally will be
further limited to the CEO and senior officers who are recommended as a
Participant by the CEO. Other key employees may be recommended by the CEO to
participate on a limited basis to address extraordinary performance and/or other
criteria and considerations as approved by the Board.

3.3 There will be three levels of participation by eligible employees based
on the eligible employee’s position and responsibility. The Board shall determine
each Participant’s level of participation.

3.4 The list of Participants for each Base Performance Period and
corresponding Deferral Performance Period shall be established by the Board.

3.5 An eligible employee shall become a Participant in the Plan through the
signing of a Participation Agreement, and shall cease to be a Participant in the
Plan upon Termination of Service, or through a violation of either of the
following obligations:

a) Non-disclosure. During and as a result of the Participant’s
employment with FHLBank Topeka, Participant is or will be making use of,
acquiring knowledge of and/or adding to confidential or proprietary
information relating to FHLBank Topeka and its affiliates, including,
without limitation, FHLBank Topeka’s systems, procedures, policies,
manuals, trade secrets, business plans, financial data, strategies,
methods of conducting business, processes, procedures, standards,
know-how, manuals, techniques, technology, confidential reports and all
other information, knowledge, or data of any kind or nature relating to
the products, services, or business of FHLBank Topeka (collectively,
“Confidential Information”). As a material inducement to FHLBank Topeka
to allow Participant to be eligible under the Plan, Participant shall
not, at any time during or following the term of his employment with
FHLBank Topeka, directly or indirectly, except in accordance with
FHLBank Topeka policies, use, disseminate, divulge or disclose, for any
purpose whatsoever, any Confidential Information.

b) Non-solicitation. In acknowledgement and recognition of the
highly competitive and unique nature of FHLBank Topeka’s business,
Participant shall not, during his or her continued employment and for
the one-year period following Termination of Service, directly or
indirectly, either by himself or herself or through others, as an
individual, partner, employee, agent, officer, stockholder, or
otherwise:

a. Solicit, divert, take away, or attempt to take away the
business of FHLBank Topeka’s present or past customers that otherwise
exist at the time of termination, or such customers of any affiliated
or related companies; and/or

b. Solicit, hire, employ, or endeavor to employ any of FHLBank
Topeka’s employees or independent contractors.

3.6 Remedies. By virtue of signing the Participation Agreement, Participant
acknowledges and agrees to the terms and conditions of that Participation
Agreement and the Plan and further acknowledges that FHLBank Topeka will suffer
irreparable damage and injury and will not have an adequate remedy at law in the
event of any actual, threatened, or attempted breach by the Participant of any
provision of the Plan or the specific provisions of Section 3.5 above.
Accordingly, in the event of a threatened, attempted or actual breach by
Participant of any provision of the Plan, including but not limited to Section
3.5, in addition to all other remedies to which FHLBank Topeka is entitled at
law, in equity or otherwise, Participant shall forfeit any and all further and
unpaid Cash Incentive or Deferred Incentive that he or she would otherwise have
been entitled to under the Plan, and/or FHLBank Topeka may be entitled to a
temporary restraining order and a permanent injunction or a decree of specific
performance of any provision of Plan Section 3.5. The foregoing remedies will not
be deemed to be the exclusive rights or remedies of FHLBank Topeka for any breach
of or noncompliance with the terms of this Plan, or the Participation Agreement
signed by the Participant, but will be in addition to all other rights and
remedies available to FHLBank Topeka at law, in equity, or otherwise.

4.0 Total Base Opportunity

4.1 For each Base Performance Period, the Board will present a Total Base
Opportunity to Participants. Certain key employees have a greater and more direct
impact than others on the success of FHLBank Topeka; therefore, these differences
are recognized by varying Total Base Opportunities for each Participant by level
of participation.

4.2 Awards are payable in accordance with Section 6.0. The Deferred
Incentive amount may increase or decrease in accordance with the achievement of
Performance Measures as set forth in the Target Document in effect for the
Deferral Performance Period.

	 	 	 	 	 
	 	5.0	 	 	Performance Measures

5.1 Three achievement levels will be defined for each Performance Measure:

Threshold The minimum achievement level acceptable for the Performance Measure.

Target The expected achievement level for the Performance Measure.

Optimum The achievement level for the Performance Measure that substantially
exceeds the Target level of achievement.

5.2 Performance between Threshold — Target, and Target — Optimum shall be
calculated by linear interpolation of the achievement point in the applicable
performance range, as determined by the Compensation Committee.

5.3 Performance Measures will be established by the Board.

5.4 Performance Measures for the Deferred Incentive and for the Cash
Incentive shall be set forth in the Target Document then in effect.

6.0 Award Determination

6.1 Awards of both the Cash Incentive and the Deferred Incentive are based
on the achievement of performance goals as set forth in the Target Document and
achievement of satisfactory levels of individual performance; provided, however,
if FHLBank Topeka fails to achieve performance at or above threshold Performance
Measures, the Compensation Committee has discretion to reduce or eliminate an
award for the Base Performance Period and for any Deferral Performance Period, if
otherwise applicable under the circumstances.

6.2 Awards for a Base Performance Period or Deferral Performance Period are
determined by the Compensation Committee promptly after the Base Performance
Period or Deferral Performance Period based upon the Compensation Committee’s
analysis of all applicable standards set forth herein and consideration of
performance that is not captured in the Performance Measures. The Compensation
Committee may also consider Extraordinary Occurrences when assessing performance
results and determining Cash Incentive or Final Deferred Incentive Award and may
adjust the Performance Measures and/or amounts to ensure that the purpose of the
Plan is served.

6.3 The above notwithstanding, the Compensation Committee may, in its
discretion, reduce or eliminate an award for any Base Performance Period or
Deferral Performance Period under any of the following circumstances:

a) FHLBank Topeka receives a composite “4” or “5” rating in its
FHFA examination in any single year in any single Base Performance
Period or Deferral Performance Period.

b) The Board finds a serious, material safety or soundness problem,
or a serious, material risk-management deficiency exists at FHLBank
Topeka, or if: (i) operational errors or omissions result in material
revisions to the financial results, information submitted to the FHFA,
or to data used to determine incentive payouts; (ii) submission of
material information to the SEC, Office of Finance, and/or FHFA is
significantly past due, or (iii) FHLBank Topeka fails to make sufficient
progress, as determined by the Board, in the timely remediation of
significant examination, monitoring or other supervisory findings.

c) During the most recent examination of FHLBank Topeka by the
FHFA, the FHFA identified an unsafe or unsound practice or condition
that is material to the financial operation of FHLBank Topeka within the
Participant’s area(s) of responsibility and such unsafe or unsound
practice or condition is not subsequently resolved in favor of FHLBank
Topeka by the last day of the Base Performance Period or Deferral
Performance Period, then all of a Participant’s vested and unvested Cash
Incentive or Deferred Incentive may be forfeited.

d) Specific to each Participant only, such Participant does not
achieve satisfactory individual achievement levels during the Deferral
Performance Period. For purposes of the Plan, the determination of
whether performance is deemed “satisfactory” is in the sole discretion
of the Compensation Committee.

6.4 The Deferred Incentive shall be reduced by one-third for each year
during the Deferral Performance Period in which FHLBank Topeka has negative net
income, as defined and in accordance with Generally Accepted Accounting
Principles.

7.0 Distribution of Cash Incentives or Final Deferred Incentive Award

7.1 All awards will be paid out in cash and will be subject to appropriate
payroll tax withholdings.

7.2 No Final Deferred Incentive Award received by a Participant shall be
considered as compensation for purposes of determining benefits under any
employee benefit plan of FHLBank Topeka, except as otherwise determined by
FHLBank Topeka. Cash Incentive awards shall be considered as compensation for
purposes of determining benefits under the employee benefit plans of FHLBank
Topeka if the plan so provides.

7.3 Awards will be made as soon as practical following the end of the Base
Performance Period or Deferral Performance Period, but no later than (i) 2 1/2
months following the later of the end of the applicable Base Performance Period
or Deferral Performance Period, as applicable; or (ii) as soon as practicable
after a determination of the director of the FHFA that the director will not act
upon his authority to prohibit compensation that is not reasonable and comparable
to compensation paid to executives at other financial institutions.

8.0 Plan Communication

8.1 The Compensation Committee, or its designee(s), shall communicate with
Participant(s) regarding the Plan in accordance with the following schedule:

	 	 	 	First quarter of the Base Performance
Period: Communicate Performance Measures and identify Plan
Participants for the Base and Deferral Performance Periods.

	 	 	 	First quarter of the Base Performance
Period: Communicate Performance Measures and specific hurdles for
the Base and Deferral Performance Periods.

	 	 	 	Annually : Interim assessments of progress towards achieving
Performance Measures as set forth in the Target Document.

	 	 	 	End of Base and Deferral Performance
Periods: Final assessment of FHLBank Topeka and individual
performance during Base and Deferral Performance Periods.

9.0 Administrative Control

9.1 Oversight of the Plan’s operation will be provided by the Compensation
Committee. Administration of the Plan shall be provided by the Compensation
Committee, with delegated authority to FHLBank Topeka’s CEO, Human Resources
Department, or other employees as applicable.

9.2 The Compensation Committee, in consultation with the CEO, has full
discretion and authority and is otherwise responsible for interpreting and
applying the terms of the Plan. These interpretations and applications shall be
final and binding.

10.0 Miscellaneous Conditions

10.1 Except as provided in Section 10.3, Participants must be employed by
FHLBank Topeka on the final day of the Base Performance Period and/or the
Deferral Performance Period, and otherwise not in violation of Section 3.5, to
receive an award, as applicable.

10.2 Employees of FHLBank Topeka who are hired, transferred, or promoted
during the first six months of the Base Performance Period may be recommended
for: (i) participation in the Plan or (ii) participation in the Plan at a level
other than the one originally designated, in accordance with the Target Document
then in effect, and receive a prorated Total Base Opportunity calculated as a
percentage of the employee’s new base salary and/or level of participation at
the time of the promotion.

10.3 Notwithstanding the provisions of Section 10.1, the following vesting
provisions shall apply if a Participant incurs a Termination of Service (i) due
to death, (ii) due to Disability, (iii) due to Retirement, or (iv) due to
Termination of Service by FHLBank Topeka without Cause, as defined in Plan
Section 10.4 below, during the Base Performance Period or Deferral Performance
Period:

a) Pro-Rata Vesting of Total Base Opportunity during Base
Performance Period.

If a Participant terminates due to death, Disability, Retirement, or
termination without Cause, any portion of his or her Total Base
Opportunity eligible to be awarded to a Participant during the Base
Performance Period in which the termination occurs will, to the extent
the Performance Measures for such Base Performance Period are
satisfied, be treated as any other payment awarded under this plan
made to the Participant or his or her beneficiary (as designated under
a completed beneficiary designation, a sample of which is attached in
Appendix B), except that the Total Base Opportunity of the Participant
shall be prorated equivalent to the period of time during the Base
Performance Period that the Participant participated in the Plan. The
Cash Incentive for such Base Performance Period shall be paid
following the end of the Base Performance Period pursuant to Section 7
of this Plan. The Deferred Incentive shall be paid in accordance with
Section 10.3.b.

b) Vesting of Deferred Incentive during Deferral Performance
Period.

i) Death or Disability. If a Participant
terminates employment before the end of the Deferral
Performance Period on account of death or Disability as defined
in Plan Section 10.4.a, the Participant’s Deferred Incentive
shall be immediately 100% vested at the Target Performance
Measure and shall be paid to the Participant or his or her
beneficiary (as designated under a completed beneficiary
designation form) no later than (i) 2 1/2 months following the
end of the year in which death or Disability occurred, or (ii)
as soon as practicable after a determination by the director of
the FHFA that the director will not act upon his authority to
prohibit compensation that is not reasonable and comparable to
compensation paid to executives at other financial
institutions.

ii) Retirement or Termination without Cause. If a
Participant terminates employment due to Retirement or
Termination of Employment by FHLBank Topeka without Cause, the
Participant’s Deferred Incentive shall be paid to the
Participant or his or her beneficiary (as designated under a
completed beneficiary designation form) based on the
Performance Measure achieved at the end of each Deferral
Performance Period, no later than (i) 2 1/2 months following the
end of the Deferral Performance Period, or (ii) as soon as
practicable after a determination by the director of the FHFA
that the director will not act upon his authority to prohibit
compensation that is not reasonable and comparable to
compensation paid to executives at other financial
institutions.

Example 1:

Participant becomes Disabled on September 30 and (a)
Participant’s Total Base Opportunity for the Base Performance Period
would have been 100% of Participant’s base salary, and (b) Participant
has $50,000 in Deferred Incentive opportunities from prior year(s).

(a) The Total Base Opportunity of 100% of Participant’s base salary is
reduced pro rata, to account for nine months of the Base Performance
Period: 100% × 75% = 75% of Participant’s base salary paid to
Participant on or before March 15 following the Base Performance
Period (to include 37.5% of Participant’s base salary in Cash
Incentive and 37.5% of Participant’s base salary from accelerated
Deferred Incentive).

(b) The $50,000 Deferred Incentive from the previous Deferral
Performance Period is paid to the Participant (reflecting an assumed
achievement of the Target Performance Measure), with the payment of
the Final Deferred Incentive Award amount being paid by March 15.

Example 2:

Participant Retires on September 30 and (a) the Participant’s
Total Base Opportunity for the full year would have been 100% of
Participant’s base salary, and (b) Participant has $100,000 in
Deferred Incentive opportunities from prior year(s).

(a) The Total Base Opportunity of 100% of Participant’s base salary is
reduced pro rata, to account for nine months of the Base Performance
Period: 100% × 75% = 75% of Participant’s Total Base Opportunity,
37.5% of which is the Cash Incentive and 37.5% of which is the
Deferred Incentive. The Cash Incentive will be paid to Participant on
or before March 15 following the Base Performance Period. The Deferred
Incentive will be deferred for the Deferral Performance Period and
will be paid as set forth in Section (b) below.

(b) The $100,000 Deferred Incentive from the previous Deferral
Performance Period(s) is determined based on the actual Performance
Measure achieved for each relevant Deferral Performance Period, with
the payment of the Final Deferred Incentive Award amount being paid on
or before March 15 of the following year after the end of each
relevant Deferral Performance Period.

c) Forfeiture upon voluntary termination or termination for Cause

In the case of the Participant’s voluntary termination or involuntary
termination for Cause prior to the end of the Base Performance Period,
100% of the Total Base Opportunity shall be forfeited. In the case of
the Participant’s involuntary termination for cause prior to the end
of the Deferral Performance Period, 100% of the Deferred Incentive
shall be forfeited.

10.4 For purposes of the Plan and this section the following definitions
shall apply:

a) Disability means, as a result of the Participant’s incapacity
due to physical or mental illness, the Participant has been absent from
his or her duties with FHLBank Topeka for an aggregate of twelve out of
fifteen consecutive months and, within thirty calendar days after a
written notice of termination is thereafter given by FHLBank Topeka to
the Participant, the Participant does not return to the full-time
performance of the Participant’s duties.

b) Cause means (1) continued failure of the Participant to perform
his or her duties with FHLBank Topeka (other than any such failure
resulting from Disability), after a written demand for performance is
delivered to the Participant; (2) personal dishonesty, incompetence,
willful misconduct, breach of fiduciary duty involving personal profit,
intentional failure to perform stated duties, or willful violation of
any law, rule or regulation (other than routine traffic violations or
similar offenses); (3) willful engagement in any misconduct in the
performance of his duty that materially injures FHLBank Topeka; or (4)
removal of the Participant for cause by the FHFA pursuant to 12 U.S.C.
4636a, or by any successor agency to the FHFA pursuant to a similar
statute.

10.5 The designation of an employee as a Participant in the Plan does not
guarantee employment. Nothing in this Plan will confer on any employee the right
to be retained in the service of FHLBank Topeka nor limit the right of FHLBank
Topeka to terminate or otherwise deal with any employee.

10.6 The Board has the right to revise, modify, or terminate the Plan in
whole or in part at any time or for any reason without the consent of any
Participant.

10.7 No benefit or interest available under the Plan will be subject in any
manner to anticipation or alienation and no Participant has any direct or
indirect right to sell, transfer, assign, pledge, attach, garnish or otherwise
encumber any anticipated Cash Incentive or Final Deferred Incentive Award and any
effort(s) to do so shall be void and unenforceable, and FHLBank Topeka shall not
be liable in any manner for or subject to the debts, contracts, liabilities,
engagements or torts of any person who might anticipate a Cash Incentive or Final
Deferred Incentive Award under the Plan.

10.8 The Plan shall at all times be entirely unfunded and no provision shall
at any time be made with respect to segregating assets of FHLBank Topeka for
payment of any Cash Incentive or Final Deferred Incentive Award under this
program.

10.9 Except to the extent superseded by laws of the United States, the laws
of the State of Kansas will be controlling in all matters relating to the Plan
without regard to the choice of law principles therein. The Plan and all
Participant Agreements are intended to comply, and will be construed by FHLBank
Topeka in a manner which they are exempt from or comply with the applicable
provisions of Section 409A of the Internal Revenue Code of 1986, as amended. To
the extent there is any conflict between a provision of the Plan and a provision
of Code Section 409A, the applicable provision of Code Section 409A will control.
The Plan and all Participation Agreements are intended to comply, and will be
construed by FHLBank Topeka in a manner such that they comply with applicable
provisions of Section 956 the Dodd-Frank Act, including the proposed rules at 12
CFR §1232, or any successor rules or applicable guidance issued by the FHFA.

10.10 The headings and subheadings in the Plan have been inserted for
convenience of reference only and will not affect the construction of the Plan
provisions. In any necessary construction, the masculine will include the
feminine and the singular the plural, and vice versa.

10.11 This Plan may be executed in any number of counterparts, each one
constituting but one and the same instrument, and may be sufficiently evidenced
by any one counterpart.

10.12 The individual members of the Board and Compensation Committee will,
in accordance with FHLBank Topeka’s Bylaws and other Board governance, be
indemnified and held harmless by FHLBank Topeka with respect to any alleged
breach of responsibilities performed or to be performed hereunder. In addition,
notwithstanding any other provision of the Plan, neither FHLBank Topeka nor any
individual acting as an employee or agent of FHLBank Topeka will be liable to a
Participant for any claim, loss, liability or expense incurred in connection with
the Plan, except when the same has been affirmatively determined by a court order
or by the affirmative and binding determination of an arbitrator, to be due to
the gross negligence or willful misconduct of that person.

10.13 If any person entitled to receive a distribution under the Plan is
physically or mentally incapable of personally receiving and giving a valid
receipt for any payment due (unless a prior claim for the distribution has been
made by a duly qualified guardian or other legal representative), then, unless
and until a claim for the distribution has been made by a duly appointed guardian
or other legal representative of the person, the Compensation Committee may
provide for the distribution to be made to any other individual or institution
then contributing toward or providing for the care and maintenance of the person.
Any payment made for the benefit of the person under this section will be a
payment for the account of such person and a complete discharge of any liability
of FHLBank Topeka and the Plan.

10.14 Evidence required of anyone under the Plan may be by certificate,
affidavit, document, or other information which the person relying on the
evidence considers pertinent and reliable, and which is signed, made, or
presented by the proper party or parties.

10.15 Any action required of or permitted by FHLBank Topeka under the Plan
will be made by the Compensation Committee through delegated authority of the
Board, or its designated authorities or individual designee(s), as authorized
pursuant to this Plan.

10.16 In the event any provisions of the Plan are held to be illegal or
invalid for any reason, the illegality or invalidity will not affect the
remaining parts of the Plan, and the Plan will be construed and endorsed as if
the illegal or invalid provisions had never been contained in the Plan.

10.17 A Participant, or any other person entitled to benefits under the
Plan, must furnish the Compensation Committee with any and all documents,
evidence, data, or other information the Compensation Committee considers
necessary or desirable for the purpose of administering the Plan. Benefit
payments under the Plan are conditioned on a Participant (or other person who is
entitled to benefits) furnishing full, true, and complete data, evidence or other
information to the Compensation Committee, and on the prompt execution of any
document reasonably related to the administration of the Plan requested by the
Compensation Committee.

10.18 The Plan will be binding upon and inure to the benefit of FHLBank
Topeka and its successors and assigns, and the successors, assigns, designees,
and estates of a Participant. The Plan will also be binding upon and inure to the
benefit of any successor organization succeeding to substantially all of the
assets and business of FHLBank Topeka, but nothing in the Plan will preclude
FHLBank Topeka from merging or consolidating into or with or transferring all or
substantially all of its assets to, another organization which assumes the Plan
and all obligations of FHLBank Topeka hereunder. FHLBank Topeka agrees that it
will make appropriate provision for the preservation of a Participant’s rights
under the Plan in any agreement or plan which it may enter into to effect any
merger, consolidation, reorganization or transfer of assets. Upon such a merger,
consolidation, reorganization, or transfer of assets and assumption of Plan
obligations of FHLBank Topeka, the term “FHLBank Topeka” will refer to such other
organization and the Plan will continue in full force and effect.

10.19 From the effective date of this Plan, this Plan shall control and
apply to all outstanding Deferred Incentives under this Plan or any prior version
of FHLBank Topeka’s Executive Incentive Compensation Plan.

1

Appendix A

Participation Agreement

	 	 	 	 	 	 	 
	Participant:

	 	                                 
	 	Social Security No.:
	 	                                            
	
 
	 	 
	 	 	 	 
	Address:

	 	                                   
	 	Date of Birth:
	 	                                              
	
 
	 	 
	 	 	 	 
	
 
	 	                                    
	 	

	 	

	
 
	 	 
	 	

	 	

	 	1.	 	Agreement to Participate. The Participant (identified
above and sometimes hereinafter referred to as “I”) hereby agrees to become a
Participant in the Federal Home Loan Bank of Topeka Executive Incentive
Compensation Plan (the “Plan”).

	 	2.	 	Acknowledgements: I hereby acknowledge the following: (1)
I have received and reviewed a copy of the Plan; (2) all benefits under the Plan
remain subject to the claims of the general creditors of Federal Home Loan Bank
of Topeka (“FHLBank Topeka”), and in the event of the bankruptcy, insolvency, or
any similar situation involving FHLBank Topeka, I acknowledge that I would have
the rights of a general unsecured creditor with respect to the benefits under
the Plan; (3) that any right to benefits hereunder are subject to the specific
terms and conditions of the Plan, including any specific Performance Measures
set forth therein or in the Target Document; (4) no benefits will be paid under
the Plan if I am terminated for “Cause” as set forth in the Plan Section 10.4.b;
(5) no benefits will be paid under the Plan or other remedies may be available
to FHLBank Topeka if I violate or fail to fulfill the non-disclosure or
non-solicitation provisions set forth under Section 3.5 in the Plan, if
applicable; (6) the benefits of the Plan may be subject to FICA taxes before
such amounts are actually paid to me; and (7) all amounts received under the
Plan shall be taxable to me as ordinary income.

IN WITNESS WHEREOF, I have executed this Participation Agreement as of the date
set forth below.

Date:              ,
20                                                
                                                                                      
   

Signature of Participant

Received and acknowledged this                           day of
      , 20                          .

FEDERAL HOME LOAN BANK OF TOPEKA

By:                                                                    

Print Name:                                                   

Print Title:                                                       

2

Appendix B

BENEFICIARY DESIGNATION

CAREFULLY READ THE INSTRUCTIONS FOUND AT THE END

OF THIS FORM BEFORE PROCEEDING.

	 	 	 	 	 	 	 
	Participant:

	 	                                 
	 	Social Security No.:
	 	                                            
	
 
	 	 
	 	 	 	 
	Address:

	 	                                   
	 	Date of Birth:
	 	                                              
	
 
	 	 
	 	 	 	 
	
 
	 	                                    
	 	

	 	

	
 
	 	 
	 	

	 	

The Participant hereby designates the following individual(s) or entity(ies) as
his or her beneficiary(ies) pursuant to the terms of the Executive Incentive
Compensation Plan of Federal Home Loan Bank of Topeka (“FHLBank Topeka”) [Insert
Name, Social Security Number, Relationship, Date of Birth and Address of Individuals
and/or fully identify any trust beneficiary by the Name of the Trust, Date of
Execution of the Trust, the Trustee’s Name, the address of the trust, and the
employer identification number of the trust]:

Primary
Beneficiary(ies)                                                          
SSN/Tax I.D.

	 
	                                                                                                                                                                            

	 

	                                                                                                                                                                            

	 

Contingent Beneficiary(ies)

	 
	                                                                                                                                                                            

	 

	                                                                                                                                                                            

	 

The Participant hereby reserves the right to change this Beneficiary Designation, and
any such change shall be effective when the Participant has executed a new or amended
Beneficiary Designation form, and the receipt of such form has been acknowledged by
FHLBank Topeka, all in such manner as specified by FHLBank Topeka from time to time,
or on a future date specified by any such new or amended Beneficiary Designation
form.

3

IN WITNESS WHEREAS, the Participant has executed this Beneficiary Designation on the
date designated below.

Date:              ,
20                                                
                                                                                      
   

Signature of Participant

Received and acknowledged this                           day of
      , 20                          .

FEDERAL HOME LOAN BANK OF TOPEKA

By:                                                                    

Print Name:                                                   

Print Title:                                                       

4

INSTRUCTIONS FOR COMPLETION

OF BENEFICIARY DESIGNATION FORM

As a participant in the Federal Home Loan Bank of Topeka Executive Incentive
Compensation Plan (the “Plan”), you may be entitled to have certain benefits paid to
a designated beneficiary under the Plan in the event of your death. We recommend that
you consult your attorney concerning the completion of this form to assure that the
desired federal tax consequences are achieved.

The originally-signed copy of this form must be mailed or delivered to FHLBank
Topeka at the following address: Federal Home Loan Bank of Topeka, One Security
Benefit Pl., Suite 100, P.O. Box 176, Topeka KS 66601-0176, and to the attention of
Human Resource Director. You should also make and keep one copy of the form, and it
should be kept with your other important documents.

If no Primary Beneficiary is alive when the payment becomes due, the benefits
will be paid in equal shares to those of the Contingent Beneficiaries who are alive
when the payment becomes due.

If you fail to designate a beneficiary, or if no designated beneficiaries are
alive when the payment becomes due, or if insufficient information is available to
reasonably determine your intent, the death benefits under the Plan will be paid to
your estate.

THIS BENEFICIARY DESIGNATION DOES NOT ALTER OR MODIFY THE PROVISIONS OF THE PLAN. IN
THE EVENT THAT THIS BENEFICIARY DESIGNATION FORM INADVERTENTLY CONFLICTS WITH THE
PROVISIONS OF THE PLAN, THE PROVISIONS OF THE PLAN SHALL CONTROL.

5EX-10.2

December 19, 2014

Federal Home Loan Bank of Topeka

Executive Incentive Compensation Plan Targets

Goal Metrics, Metric Performance Ranges, Participant Eligibility and Metric Weights

This document specifies goal metrics, metric performance ranges/objectives, and metric weights for
the participants (Participants) in the Executive Incentive Compensation Plan (Plan).

The Plan targets contained in this document specifically cover the 2015 Base Performance Period
(January 1, 2015 through December 31, 2015) and the 2016 — 2018 Deferral Performance Period
(January 1, 2016 through December 31, 2018).

	A.	 	2015 Base Performance Period Metrics. The following goal metrics are assigned to the
Participants under the Plan. All calculations including interest rates will be rounded to two
decimal places.

	1.	 	Adjusted Return Spread on Regulatory Total Capital

Definition: The spread between (a) adjusted net income divided by daily average
regulatory total capital and (b) the average daily Overnight Federal funds effective rate (Fed
Effective).

Measure:

	 	 	 
	Adjusted net income is defined as follows:

	 	•	 	Net income calculated under generally accepted accounting principles (GAAP)

	 	•	 	Plus recorded AHP assessments

	 	•	 	Excluding the impact or adjustment required because of Accounting Standards
Codification 815 (ASC 815)

	 	•	 	Plus dividends on redeemable Class A and Class B Common Stock treated as
interest expense under ASC 450

	 	•	 	Minus prepayment fees

	 	•	 	Minus/plus realized or unrealized gains/losses on securities (excludes any
charges for other-than-temporary impairment of securities)

	 	•	 	Minus/plus gains/losses on mortgage loans held for sale

	 	•	 	Minus/plus gains/losses on early retirement of debt and related derivatives

	 	•	 	Minus/plus any amortization/accretion of premium/discount on unswapped
securities in the FHLBank’s trading portfolio and any investment that is tied to an
economic swap where an upfront fee was not received (not amortized/accreted under
GAAP)

	 	•	 	Less a calculated 10% AHP assessment

Performance Range:

	 	 	 	 	 
	 	 	Annual Performance Range
	Threshold
	 	 	4.72	%
	Target
	 	 	5.85	%
	Optimum
	 	 	6.42	%

	2.	 	Net Income after Capital Charge

Definition: The dollar amount of adjusted net income as defined in the above metric
which exceeds the cost of the required return on capital.

Measure: Adjusted income as defined in the Net Income after Capital Charge Definition
above, less required return on all capital. The required return on capital is the sum of the
outstanding regulatory Class B Common Stock times the average of three-month LIBOR plus 1.00
percent for each day during the year plus the sum of all other capital (regulatory for Class A
Common Stock and GAAP for retained earnings and other comprehensive income) times the average
of three-month LIBOR for each day during the year.

Performance Range:

	 	 	 	 	 
	 	 	Annual Performance Range
	Threshold
	 	$	71,477,000	 
	Target
	 	$	91,477,000	 
	Optimum
	 	$	101,477,000	 

	3.	 	Retained Earnings

Definition: The dollar amount of GAAP Retained Earnings as of 12/31/2015.

Measure: Retained earnings as defined above as reported on the 12/31/2015 balance
sheet.

Performance Ranges:

	 	 	 	 	 
	 	 	Annual Performance Range
	Threshold
	 	$	655,263,000	 
	Target
	 	$	681,920,000	 
	Optimum
	 	$	702,007,000	 

	4.	 	Core Mission Assets (CMA) Ratio

Definition: Core Mission Assets Ratio is defined as daily advances plus mortgage loans
held for portfolio divided by daily consolidated obligations.

Measure: Average Daily Advances as reported to the Federal Housing Finance Agency (CRS
reference SC11800) plus Daily Average mortgage loans held for portfolio (CRS reference SC12100)
divided by the average daily consolidated obligations as reported to the Federal Housing
Finance Agency (CRS reference SC15100) averaged over the Performance Period.

Performance Range:

	 	 	 	 	 
	 	 	Annual Performance Range
	Threshold
	 	 	60	%
	Target
	 	 	70	%
	Optimum
	 	 	80	%

	5.	 	Risk Management – Market, Credit and Liquidity Risks

Definition: Management of FHLBank risks as determined by the weighted average rating
by the board of directors in an annual evaluation of the Risk Appetite metrics in this area
using a 1 (lowest) to 5 (highest) point scale. General risk categories are market, credit, and
liquidity risks.

Performance Ranges

	 	 	 	 	 
	 	 	Score
	Threshold
	 	 	3.0	 
	Target
	 	 	4.0	 
	Optimum
	 	 	5.0	 

Risk Management Metric Weights: The following metric weight for each goal metric is
assigned to the Participants:

	 	 	 	 	 
	Risk Management Category	 	Weighting
	Liquidity Risk

	 	 	30	%
	Market Risk

	 	 	40	%
	Credit Risk

	 	 	30	%
	Total

	 	 	100	%

	6.	 	Risk Management – Compliance, Business and Operations Risks

Definition: Management of FHLBank risks as determined by the weighted average rating
by the board of directors in an annual evaluation of the Risk Appetite metrics in this area
using a 1 (lowest) to 5 (highest) point scale. General risk categories are compliance, business
and operations risks.

Performance Ranges

	 	 	 	 	 
	 	 	Score
	Threshold
	 	 	3.0	 
	Target
	 	 	4.0	 
	Optimum
	 	 	5.0	 

Risk Management Metric Weights: The following metric weight for each goal metric is
assigned to the Participants:

	 	 	 	 	 
	Risk Management Category	 	Weighting
	Compliance Risk

	 	 	30	%
	Business Risk

	 	 	35	%
	Operations Risk

	 	 	35	%
	Total

	 	 	100	%

	B.	 	2016-2018 Deferral Performance Period Metrics.

These metrics apply to the 2016-2018 Deferral Performance Period.

In calculating Final Deferred Incentive Award amounts, performance shall be measured by
evaluating the following:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Minimum	 	Threshold	 	Target	 	Optimum
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	<=2/12 vs
	Total Return(1)
	 	>9/12 vs FHLBanks	 	9/12 vs FHLBanks	 	6/12 vs FHLBanks	 	FHLBanks
	Deferred Incentive
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Performance Measure Percentage
	 	 	0	%	 	 	75	%	 	 	100	%	 	 	125	%
	Weighting
	 	 	0.50	 	 	 	0.50	 	 	 	0.50	 	 	 	0.50	 
	Dollar Value (Deferred
Incentive x Performance
Measure Percentage x Weight)
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	Market Value of Equity (MVE)
/ Total Regulatory Capital
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	<=2/12	 
	Stock (TRCS)(2)
	 	>9/12 vs FHLBanks	 	9/12 vs FHLBanks	 	6/12 vs FHLBanks	 	vs FHLBanks
	Deferred Incentive
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Performance Measure Percentage
	 	 	0	%	 	 	75	%	 	 	100	%	 	 	125	%
	Weighting
	 	 	0.50	 	 	 	0.50	 	 	 	0.50	 	 	 	0.50	 
	Dollar Value (Deferred
Incentive x Performance
Measure Percentage x Weight)
	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 
	Final Deferred Incentive
Award (Dollar value for Total
Return + Dollar Value for
MVE/TRCS)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Footnotes:

1) Total Return. Total Return equals the Total Dividends, plus the Change in
Retained Earnings, divided by the Average Capital. For FHLBank Topeka: Total Dividends is
defined as the sum of the actual dividends paid on required Class A Common Stock and all Class
B Common Stock during the three-year Performance Period; Change in Retained Earnings is defined
as the change in retained earnings from 12/31/2015 to 12/31/2018; and Average Capital is
defined as the average daily ending balance of required Class A Common Stock and all Class B
Common Stock for dates starting with 01/01/2016 and ending 12/31/2018. For the other
FHLBanks, unless determined otherwise by the Compensation Committee: Total Dividends is defined
as all dividends paid on all capital stock during the three-year period; Change in Retained
Earnings is defined as the change in retained earnings from 12/31/2015 to 12/31/2018; and
Average Capital is defined as the average daily ending balance of all capital stock outstanding
for dates starting with 01/01/2016 and ending 12/31/2018. For performance comparison purposes,
FHLBank Topeka will be ranked against the other FHLBanks, with the highest total return being
the best performance, and ranking 1st out of the 12 FHLBanks.

2) MVE/TRCS. Using amounts reported on the Trendbook Analysis from the FHFA Call
Report System (CRS), MVE/TRCS is calculated by dividing base case MVE by TRCS (TRCS calculated
as Total Regulatory Capital minus Retained Earnings) calculated at the end of the Deferral
Performance Period. For performance comparison purposes, FHLBank Topeka will be ranked against
the other FHLBanks, with the highest MVE/TRCS being the best performance, and ranking
1st out of the 12 FHLBanks.

	C.	 	Total Base Opportunity Metric Weights.

Total Base Opportunity Matrix

(As a percent of base)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Participant	 	Total Base Opportunity 1
	 	 	Threshold	 	Target	 	Optimum
	Level 1
	 	 	 	 	 	 	 	 	 	 	 	 
	CEO
	 	 	40	 	 	 	80	 	 	 	120	 
	Level 2
	 	 	 	 	 	 	 	 	 	 	 	 
	COO
	 	 	32.5	 	 	 	65	 	 	 	97.5	 
	Level 3
	 	 	 	 	 	 	 	 	 	 	 	 
	CRO
	 	 	25	 	 	 	50	 	 	 	75	 
	General Counsel
	 	 	25	 	 	 	50	 	 	 	75	 
	CAO
	 	 	25	 	 	 	50	 	 	 	75	 

1 In the event FHLBank’s performance during the Base Performance Period
results in the achievement of a Total Base Opportunity that exceeds 100% of a Participant’s
base salary at the start of the Base Performance Period, the Total Base Opportunity shall be
capped at 100% of the Participant’s base salary.

D. Base Opportunity Metric Weights. The following metric weight for each goal metric is
assigned to the Participants:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Objective	 	CEO/COO	 	CRO	 	General Counsel / CAO
	1. Adjusted Return Spread on

Regulatory Total Capital

	 	20%

	 	10%

	 	15%

	2. Net Income after Capital Charge

	 	 	20	%	 	 	10	%	 	 	15	%
	3. Retained Earnings

	 	 	10	%	 	 	20	%	 	 	10	%
	4. Core Mission Assets (CMA) Ratio

	 	 	10	%	 	 	10	%	 	 	10	%
	5. Risk Management- Market, Credit,

Liquidity

	 	20%

	 	25%

	 	25%

	6. Risk Management- Compliance,

Business, Operations

	 	20%

	 	25%

	 	25%

	Total

	 	 	100	%	 	 	100	%	 	 	100	%

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