Document:

EX-10.4

 Exhibit 10.4 

 
 

 
  

					
	 Department:

 
 Corporate Secretary
	  	 Name of Policy:

 
 2012 Directors’
 Compensation Policy
	  	 Department
Policy
 Number:
  

1

	 Effective Date:

 
 January 1, 2012
	  	 Supersedes Revisions:
  

January 1, 2011
	  	 Authority to Approve

and Amend:
  
 Board of Directors

	 Next Review Date:

 
 January 2013
	  	 Department Policy

Owner:
  
 Corporate Secretary
	  	 

  

	A.	General 

  

	 	1.	The Bank will pay each member of the board of directors a fee for attendance at any official meeting (in person or by telephone) of the board or a committee of the
board. An official meeting includes a meeting of any ad hoc committee established by the board for a specific purpose. In addition, the Bank will pay any director representative to the Council of Federal Home Loan Banks (FHLBanks) a fee for
attendance at any official meeting of that group. The Bank will not pay a fee for a director’s attendance at any Federal Home Loan Bank System meeting. The fees for attendance at these meetings are outlined below. 

 

	 	2.	The Bank will pay a fee only for a director’s actual attendance and participation at a meeting, unless the director’s absence is due to unanticipated
transportation problems encountered while in route to the meeting. Participation by telephone for in-person meetings is discouraged unless necessary to attain a quorum. The Bank will not pay for a director’s participation by telephone for an
in-person meeting unless the Chairman approves such participation. The Bank will not pay a fee for a director’s attendance at meetings other than those described above. 

 

	 	3.	The Bank will not advance the payment of fees to any director. 

  

	 	4.	Effective January 1, 2012, the following annual compensation limits shall apply: 

 

					
	a)    Chairman of the Board	  	$	60,000	  
	b)    Vice Chairman of the Board	  	$	55,000	  
	c)    Chairman of the Audit Committee	  	$	55,000	  
	d)    Other Chairmen of Committees (excluding Audit and Executive)	  	$	50,000	  
	 e)    All Other Directors
	  	$	45,000	  

 Once a director reaches his or her annual compensation limit, the Bank will not pay
additional fees to that director, even if the director attends a meeting at which a fee 

  
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otherwise would be paid under this policy. 
  

	 	5.	Notwithstanding Section A.4. above, at such time after January 1, 2012 as the aggregate par value of the Bank’s outstanding Subclass B2 Capital Stock which
constitutes Excess Stock (as defined in the Bank’s Capital Plan) is reduced to an amount equal to or less than $250 million, and at all times after such initial reduction in the aggregate value of such outstanding Excess Stock, the following
annual compensation limits shall apply: 

  

					
	 a)    Chairman of the Board
	  	$	70,000	  
	 b)    Vice Chairman of the Board
	  	$	65,000	  
	 c)    Chairman of the Audit Committee
	  	$	65,000	  
	 d)    Other Chairmen of Committees (excluding Audit and Executive)
	  	$	60,000	  
	 e)    All Other Directors
	  	$	55,000	  

 With respect to any director who had already reached the annual compensation limit pursuant to Section
A.4. above prior to the effectiveness of this Section A.5., once these Section A.5. limits become effective, an adjustment shall be made to provide to such director any such fees that would have been payable had this Section A.5. been applicable for
the entire year. Once a director reaches his or her annual compensation limit in this Section A.5., the Bank will not pay additional fees to that director, even if the director attends a meeting at which a fee otherwise would be paid under this
policy. 
  

	B.	In-Person Meeting Fees 

  

	 	1.	Chairman of the Board 

  

	 	a)	$ 6,900 per meeting of the board when chairing a board meeting 

	 	b)	$ 2,100 per meeting of a committee of the board of which he/she is chairman 

	 	c)	$ 1,600 per meeting of a committee of the board of which he/she is a member 

	 	d)	$ 1,600 per joint meeting of the Affordable Housing Advisory Council and board or committee 

	 	e)	$    800 per meeting of the Council of FHLBanks 

	 	f)	$    800 per meeting of the FHLBanks’ Chairs/Vice Chairs 

 

	 	2.	Vice Chairman of the Board 

  

	 	a)	$ 6,400 per meeting of the board 

	 	b)	$ 2,100 per meeting of a committee of the board of which he/she is chairman 

	 	c)	$ 1,600 per meeting of a committee of the board of which he/she is a member 

	 	d)	$ 6,900 per meeting of the board when serving as Chairman for the entire meeting 

	 	e)	$ 1,600 per joint meeting of the Affordable Housing Advisory Council and board or committee 

	 	f)	$    800 per meeting of the Council of FHLBanks 

	 	g)	$    800 per meeting of the FHLBanks’ Chairs/Vice Chairs 

 

	 	3.	All Directors (other than the Chairman or Vice Chairman of the Board) 

  

	 	a)	$ 6,400 per meeting of the board 

  
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	 	b)	$ 2,100 per meeting of a committee when serving as committee chairman 

	 	c)	$ 1,600 per meeting of a committee of the board of which he/she is a member 

	 	d)	$ 1,600 per joint meeting of the Affordable Housing Advisory Council and board or committee 

	 	e)	$    800 per meeting of the Council of FHLBanks 

	 	f)	$    500 for attending new director orientation (new directors only) 

 

	C.	Fees for Telephonic Meetings of the Board and Committees of the Board 

 

	 	1.	Chairman; Vice Chairman, if serving as Chairman; or Committee Chairman, if serving as Chairman 

$1,200 per meeting 
  

	 	2.	All Directors (other than the individual Chairman for the meeting) 

 $800 per meeting 
  

	D.	Expenses 

  

	 	1.	In accordance with the Bank’s normal reimbursement policy, the Bank will reimburse a director’s travel expenses incurred in connection with attendance at any
meeting for which the director is paid a fee. Please consult the Bank’s Travel and Entertainment Policy for a more detailed explanation regarding expense reimbursement. 

 

	 	2.	The Bank will reimburse a director’s registration fees and travel expenses incurred in connection with any other meeting, hearing, ceremony, continuing education
seminar, etc. only if the Chairman determines that the meeting is relevant to the Bank’s business activities or the director’s duties as a board member and the director attends the meeting at the request of, or with the approval of, the
Chairman. The Vice Chairman shall approve all such fees and expenses for the Chairman. These amounts will be reimbursable to the extent provided for such purpose in the Bank’s annual budget and in accordance with the Bank’s Travel and
Entertainment Policy. The Bank will not pay a fee for a director’s participation in these types of activities, and in accordance with 12 CFR Part 1261, the Bank will not reimburse directors for entertainment expenses at these events.

  

	 	3.	The Bank will pay the transportation and other ordinary travel expenses of one guest of a director to attend a board meeting only as specified in advance by the Bank.
It will be the director’s responsibility to pay the transportation and other travel expenses of a guest that accompanies such director to any other board meeting. 

 

	 	4.	A board member may invite a guest to Bank-sponsored board dinners or receptions held in connection with board meetings at the expense of the Bank, so long as such guest
otherwise pays his or her own transportation and travel expenses. 

  

	 	5.	The Bank will pay for activities of directors and their guests at board meetings only as specified in advance by the Bank. 

  
 Page 3 of 3EX-10.8

 Exhibit 10.8 

 
 

 
  
  
 Omnibus Annual Incentive Compensation Plan 
 Amended January 26, 2012

  
  
  

 
  
  

 

  

					
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 Annual Incentive Compensation Plan 

PLAN DOCUMENT 
  

	1.0	Plan Objectives 

  

	1.1	The purpose of the Federal Home Loan Bank of Atlanta Omnibus Annual Incentive Compensation Plan (the “Plan”) is to achieve the following objectives:

  

	 	1.1.1	Promote the achievement of the Bank’s profitability and business goals over both the short and long term; 

 

	 	1.1.2	Provide a balanced, competitive reward structure for the Participants reflecting best practices in risk management and corporate governance; and

  

	 	1.1.3	Promote loyalty and dedication to the Bank and its objectives. 

  

	1.2	This Plan sets forth the terms and conditions applicable to all Awards under the Plan. Each year, the Committee will adopt and provide to Participants one or more
letters or memoranda (each, an “Award Letter”) providing details as to Base Award Opportunities, Performance Measures and other relevant information for those Participants for that year. Award Letters may reflect different types of
incentive compensation opportunities for different groups of Participants. 

  

	1.3	Each Award Letter will be considered part of the Plan, and references to the Plan will include each Award Letter. Each Award Letter will be subject to the Plan in all
respects. In the event of any inconsistency between any Award Letter and the Plan, the Plan will control. 

  

	2.0	Definitions 

 When used in the Plan, the
words and phrases below will have the following meanings: 
  

	2.1	Actual Earnings means base salary plus overtime earned during the year. Compensation received under the Bank’s short-term disability program is excluded
from Actual Earnings. 

  

	2.2	Award means a Performance Award or an Earned Award, as applicable. 

 

	2.3	Bank means the Federal Home Loan Bank of Atlanta. 

  

	2.4	Base Award Opportunity means the percentage of Actual Earnings used to calculate each Participant’s Earned Award for a particular year under the Plan.

  

	2.5	Board means the Bank’s board of directors. 

  

	2.6	Code means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto, and the applicable rulings and regulations thereunder.

  

	2.7	Committee means the Governance and Compensation Committee of the Board. 

  

					
		 		 	Page 2 of 7
		 		 	

	2.8	Earned Award means the amount determined by the Committee as payable to a Participant in respect of the Participant’s Performance Award for a particular
year under the Plan. 

  

	2.9	Incentive Committee means the Incentive Compensation Management Committee, chaired by the President and Chief Executive Officer. The members of the Incentive
Committee are appointed by the President and Chief Executive Officer. The President and Chief Executive Officer will ensure that the Plan is administered in a timely and effective manner and that periodic analyses of the effectiveness of the Plan
are undertaken. The President and Chief Executive Officer will report to the Committee findings and conclusions regarding the Plan’s operations and will recommend to the Committee, except as to himself, the participants, goals, award
opportunities and awards under the Plan. The Committee, in turn, will report these findings and its recommendations to the Board for final approval. 

  

	2.10	Participant means an employee who participates in the Plan pursuant to Section 3.1. 

 

	2.11	Performance Award means an annual incentive compensation award opportunity granted to a Participant under the Plan. 

 

	2.12	Performance Measure means each performance factor that is taken into consideration under the Plan in determining the value of each Participant’s Earned
Award. 

  

	2.13	President and Chief Executive Officer means the President and Chief Executive Officer of the Bank. 

 

	2.14	Section 409A means Section 409A of the Code, including any amendments or successor provisions to that section, and any regulations and other
administrative guidance thereunder, in each case as they may from time to time be amended or interpreted through further administrative guidance. 

  

	3.0	Eligibility 

  

	3.1	All employees will be eligible (but not entitled) to participate in the Plan. Subject to the approval of the Board, the Committee may determine other Participants and
the types and levels of Awards they may receive based on individual nominations, position within the Bank or other criteria. 

  

	4.0	Base Award Opportunity 

  

	4.1	At the beginning of each year, the Bank will establish a Base Award Opportunity for each Participant. The Base Award Opportunity will be equal to a percentage of the
Participant’s Actual Earnings for the year as set forth in the applicable Award Letter. 

  

	5.0	Performance Measures 

  

	5.1	Unless otherwise determined by the Board, the Board will establish three achievement levels for each Performance Measure: 

 

			
	Threshold	  	Achievement that reflects the minimum performance necessary to earn an award for the Performance Measure.
		
	Target	  	Achievement that reflects the budgeted performance for the Performance Measure.
		
	Maximum	  	Achievement that substantially exceeds the budgeted performance for the Performance Measure.

  

	5.2	 At the beginning of each year, the Committee will recommend to the Board, and the Board will adopt, the Performance Measures for that year, as well as
the achievement levels and weightings for each 

  

					
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Performance Measure, as applied to each Award Letter and each level of employee participation in the Plan. 

 

	5.3	At or following the end of each year, the Board will determine the Earned Award, if any, for each Participant. A Participant’s Earned Award for a particular year
generally will be equal to his or her Base Award Opportunity multiplied by the weighted average percentage achievement levels of Performance Measures for the year. 

 

	6.0	Vesting of Earned Awards 

  

	6.1	Except as expressly provided otherwise in the applicable Award Letter, in order to receive payment of all or any portion of an Earned Award, a Participant must be
employed by the Bank on the day the Bank makes the payment, and if the Participant’s employment with the Bank terminates for any reason, the Participant will not be eligible to receive any Earned Award for the current year or unpaid Earned
Awards from prior years. 

  

	6.2	Any employee of the Bank who is hired, transferred or promoted into an eligible position during a year will be eligible (but not entitled) to participate in the Plan
beginning on the effective date of the hiring or promotion and will, if selected to participate by the Board, be eligible to receive a prorated Earned Award. 

 

	6.3	The Committee may determine in its sole discretion to provide that all or part of an Award may be payable on account of a Participant’s death, disability,
permanent retirement or other special circumstances. The terms and conditions of any payment on account of these events will be set forth in the applicable Award Letter. 

 

	7.0	Payments under the Plan 

  

	7.1	Earned Awards will be paid on the schedule, and subject to the other terms and conditions, set forth in the applicable Award Letter. 

 

	8.0	Administration of the Plan 

  

	8.1	In addition to the authority expressly provided in the Plan, the Board will have ultimate authority over the Plan. The Committee will administer the Plan, subject to
the Board’s authority, and the Committee will manage the operation and administration of the Plan and will have all authority necessary to accomplish these purposes, including the authority to interpret the terms of the Plan, to decide
questions regarding the Plan and to make recommendations to the Board regarding the eligibility of any person to participate in the Plan. Unless the Board expressly determines otherwise, the Committee’s determinations and interpretations
regarding the Plan will be final, binding and conclusive. 

  

	8.2	Notwithstanding anything in the Plan to the contrary, the Board reserves the right to (i) amend, modify or terminate the Plan in whole or in part and (ii) to
increase, decrease, terminate without payment or otherwise modify any Award, in each case, at any time and in any manner, including in a manner adverse to Participants, for any reason or no reason and without the consent of any Participant.

  

	8.3	Participation in the Plan will not entitle a Participant to any Award or confer any right to be included in the Plan in future years or in future plans of a similar
nature. The Committee’s and the Board’s determinations under the Plan need not be uniform and may be made selectively among persons who receive, or are eligible to receive, Awards under the Plan (whether or not such persons are similarly
situated). Without limiting the generality of the foregoing, the Board will be entitled, among other things, to make non-uniform and selective determinations as to the persons to become Participants. 

  

					
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	8.4	The Committee will have the right to determine the commencement date of any Participant’s employment with the Bank solely for purposes of the Plan, separate and
apart from any determination that may be made by the Bank with respect to the Participant’s employment. 

  

	8.5	Without limitation on Sections 8.1 and 8.2, the Committee and the Board will have the authority (but will not be required) to (i) adjust equitably the Performance
Measures for a particular year under the Plan to preserve the benefits or potential benefits intended to be made available to Participants for any merger, consolidation, rights offering, separation, reorganization or liquidation or any other change
in the corporate structure or shares of the Bank and (ii) adjust Earned Awards for both current and prior years if the Committee or the Board determines in good faith that the amounts of any Earned Awards were based on materially inaccurate
financial statements or any other materially inaccurate performance metric criteria including but not limited to: The untimely submission of information to the SEC, OF, and/or FHFA; the Bank’s failure to make sufficient progress in the timely
remediation of examination, monitoring, and other supervisory findings and matters requiring attention; and/or operational errors or omissions resulting in material revisions to financial results. For the avoidance of doubt, the Committee or the
Board may, in its sole discretion, decline to adjust the terms of any outstanding Award if it determines that such adjustment would violate applicable law or result in adverse tax consequences to the Participant or to the Bank.

  

	8.6	No member of the Board or any employee of the Bank will have any liability to any person, including any Participant, for any action taken or omitted to be taken or any
determination made in good faith with respect to the Plan or any Participant’s participation in the Plan. 

  

	9.0	Miscellaneous 

  

	9.1	Unless another meaning is clear in context, (i) all section or other references in the Plan will refer to such parts of the Plan, (ii) all section or other
references in any Award Letter will refer to such parts of that Award Letter and (iii) each term stated in either the singular or the plural will include the singular and the plural. Whenever the words “include,”
“includes” or “including” are used in the Plan or any Award Letter, they will be deemed to be followed by the words “without limitation.” 

 

	9.2	The Bank will be under no obligation to fund or set aside amounts to pay obligations under the Plan. Participants will have no rights to the payment of Earned Awards
other than as general unsecured creditors of the Bank. 

  

	9.3	The designation of an employee as a Participant in the Plan does not guarantee employment. Nothing in the Plan will: (i) give any person any legal or equitable
rights or remedies against the Bank; (ii) create a contract of employment with any employee or Participant, obligate the Bank to continue the service of any employee or Participant or affect or modify any employee’s or Participant’s
term of employment in any way; or (iii) create any right to payment of an award from the Bank under this or any other alternative plans, arrangements or contracts the Bank may have with any employee or group of employees. In addition, the right
of the Bank to discipline or discharge any employee, including a Participant, will not be affected by any provision of the Plan. 

  

	9.4	Awards and payments under the Plan will constitute special discretionary incentives and will not be required to be taken into account in computing the amount of salary
or compensation of the Participants for the purpose of determining any contributions to or any benefits under any pension, retirement, profit-sharing, bonus, life insurance, severance or other benefit plan of the Bank or under any agreement with a
Participant, unless the Bank specifically provides otherwise. 

  

	9.5	Except as expressly set forth in this section, payments under the Plan are intended to satisfy the “short-term deferral” exception under Section 409A of
the Code. If an Award Letter provides that a Participant who has attained a certain age or a certain combination of age and years of service to the Bank may retire and receive all or any portion of his or her Earned Awards, then:

  

					
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	 	9.5.1	References to “retirement” and corresponding terms will mean the Participant’s separation from service within the meaning of Section 409A (in
addition to any other requirements for retirement eligibility set forth in the Award Letter); 

  

	 	9.5.2	Solely with respect to any payments of any portions of outstanding Awards that would be made on their ordinary schedules later than March 15 of the year after the
applicable Participant first becomes eligible to receive the payments upon retirement, such payments under such Awards (each, a “409A Retirement Payment”) are intended to be “deferred compensation” subject to
Section 409A, and the Plan is intended to comply with Section 409A with respect to any 409A Retirement Payments; and 

  

	 	9.5.3	Any 409A Retirement Payment that would be subject to the limitations in Section 409A(a)(2)(b) of the Code will be delayed until six months after the applicable
Participant’s retirement (or earlier death) in accordance with the requirements of Section 409A. 

 Each
payment under the Plan will be treated as a separate payment for purposes of Section 409A. The Committee may determine to defer any payment of an Earned Award or permit a Participant to elect to defer any payment of an Earned Award, in each
case, in a manner that conforms to the requirements of Section 409A(a)(4) of the Code. The Committee and the Board will have full authority to give effect to the intent of this section. 

 

	9.6	All Earned Awards will be subject to applicable tax withholdings. However, for the avoidance of doubt, Participants will be solely responsible for any applicable taxes
(including income and excise taxes) and penalties, and any interest that accrues thereon, that they incur in connection with the receipt of any Award under the Plan. 

 

	9.7	A Participant may not sell, transfer, hedge, assign, pledge or otherwise encumber any Award or anticipated payment under the Plan. 

 

	9.8	If any provision of the Plan is held by a court of competent jurisdiction to be invalid or unenforceable, its invalidity or unenforceability will not affect any other
provision of the Plan, and the Plan will be construed and enforced as if such provision had not been included herein. 

  

	9.9	The Plan and any Award Letters issued under the Plan from time to time contain the entire agreement of the parties with respect to the subject matter hereof and
supersede all prior agreements, promises, covenants, arrangements, communications, representations and warranties between them, if any, whether written or oral, with respect to the subject matter hereof. 

 

	9.10	Each Participant recognizes and agrees that prior to being selected by the Board to receive an Award, he or she has no right to any benefits under the Plan.
Accordingly, in consideration of the Participant’s receipt of any Award hereunder, he or she expressly waives any right to contest the amount of any Award, the terms of the Plan, any determination, action or omission hereunder by the Committee,
the Board or the Bank or any amendment to (or termination of) the Plan. 

  

	9.11	Participation in the Plan constitutes acceptance of all the terms and conditions set forth in the Plan, including any Award Letters. Without limitation on the
foregoing, each Participant must keep confidential any information concerning any Award and any dispute, controversy or claim relating to the Plan, except that a Participant may disclose information concerning a dispute or claim to the court that is
considering the dispute or to the Participant’s legal counsel (provided that such counsel agrees not to disclose any such information other than as necessary for the prosecution or defense of the dispute). 

 

	9.12	 The Bank’s determination as to the identity of the proper payee of any amount under the Plan will be binding and conclusive, and payment in
accordance with such determination will constitute a complete discharge of all obligations on account of such amount. Without limiting the generality of the foregoing, 

  

					
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any amounts determined by the Committee or the Board to be payable under the Plan on account of death will be paid to the applicable Participant’s designated beneficiary, if any, or to the
Participant’s estate. 

  

	9.13	The Plan will be governed by and construed in accordance with the internal laws of the state of Georgia, unless otherwise preempted by the laws of the United States.
Each Participant hereby irrevocably submits to the exclusive jurisdiction of any state or federal court of appropriate jurisdiction located in the City of Atlanta over any suit, action or proceeding arising out of or relating to or concerning the
Plan or any Award. Each Participant acknowledges and agrees that the forum designated by this section has a reasonable relation to the Plan and to the Participant’s relationship with the Bank. 

 

	9.14	This Plan was originally adopted by the Board on April 30, 2010 and will continue, as amended from time to time, until suspended or terminated by the Board in its
sole discretion. 

 END OF PLAN DOCUMENT 

  

					
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