Document:

EX-10.2

Revised December 18, 2015

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.

Minimum Requirement for Receiving a Final Deferred Incentive Award

In order for Participants to be eligible to receive a Final Deferred Incentive Award for the
2016-2018 Deferral Performance Period, FHLBank must have a Market Value of Equity (MVE) of not
less than 100 percent of FHLBank’s Total Regulatory Capital Stock (TRCS) outstanding (as
defined in FHLBank’s Risk Management Policy), as of the last day of the Deferral Performance
Period. Upon determining FHLBank has achieved this minimum requirement, the calculation of the
Final Deferred Incentive Award amounts shall be measured by evaluating the following:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Threshold	 	Target	 	Optimum
	 
	 	10/11 or 11/11 vs	 	 	 	 	 	2/11 or 1/11 vs
	Total Return(1)
	 	FHLBanks	 	5/11 vs FHLBanks	 	FHLBanks
	Deferred Incentive
	 	 	 	 	 	 	 	 	 	 	 	 
	Performance Measure Percentage
	 	 	75	%	 	 	100	%	 	 	125	%
	Weighting
	 	 	0.50	 	 	 	0.50	 	 	 	0.50	 
	Dollar Value (Deferred
Incentive x Performance
Measure Percentage x Weight)
	 	$	 	 	 	$	 	 	 	$	 	 
	MVE / Total Regulatory
	 	10/11 or 11/11 vs	 	 	 	 	 	2/11 or 1/11
	Capital (TRC)(2)
	 	FHLBanks	 	5/11 vs FHLBanks	 	vs FHLBanks
	Deferred Incentive
	 	 	 	 	 	 	 	 	 	 	 	 
	Performance Measure Percentage
	 	 	75	%	 	 	100	%	 	 	125	%
	Weighting
	 	 	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/TRC)
	 	 	 	 	 	 	 	 	 	 	 	 

Footnotes:

1) Total Return. Total Return equals the Total Dividends, plus the Change in Retained
Earnings, divided by the Average Total Regulatory Capital (TRC) over the three-year period. 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 TRC is defined as the average daily ending balance of Regulatory Capital
for dates starting with 01/01/2016 and ending 12/31/2018.  TRC is defined as total capital stock
plus total retained earnings plus subordinated debt plus mandatorily redeemable capital stock.
TRC will also include any additional capital from mergers that will be reported in the CRS
statement of condition.  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 11 FHLBanks.

2) MVE/TRC. Using amounts reported on the Trendbook Analysis from the FHFA Call Report
System (CRS), MVE/TRC is calculated by dividing base case MVE by TRC (as defined above)
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/TRC being the best
performance, and ranking 1st out of the 11 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	 
	CFO
	 	 	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/CFO	 	CRO	 	General Counsel
	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	%Exhibit 10.1

 

 

CONFIDENTIAL – VIA EMAIL

 

January 13, 2016

 

Mr. Christopher Aye, EVP & CFO

Mr. Rick Bigelow, SVP

Skyview Capital

8th Floor North Tower

2000 Avenue of the Stars

Los Angeles, CA 90067

 

		Re:	Skyview’s Portfolio Company, IMT

 

Dear Chris and Rick:

 

This updated letter of intent ("Letter
of Intent" or “LOI”) sets forth the post-initial due diligence intent on the part of xG Technology,
Inc (“xG” or the “Buyer””) whereby xG, or its assignee or designee, will acquire designated
assets (the "Designated Assets") and liabilities (the “Designated Assumed Liabilities”) of
Integrated Microwave Technologies, a Delaware LLC (“IMT” or the “Company”) as designated
on Schedules "A" and “B” hereto, which such schedules are incorporated herein by reference. Such business
and assets are to be acquired from the owner, Skyview Capital (the “Seller”). The parties herein will be collectively
referred to as the “Parties”.

 

This LOI is intended to be binding on both
Parties and supersedes the preliminary nonbinding LOI dated November 18, 2015.

 

The bulk of xG’s due diligence investigation
is done and it both appreciates and recognizes the professional way that IMT and Seller assisted us in such matter. While xG has
some concerns based on such investigation, and which Seller acknowledges, it is the intent of the Parties hereto that such concerns
be handled at this point as conditions precedent to closing (“Conditions Precedent”) as outlined below. Additionally,
xG will continue to have access to the management of IMT between this date and closing (the “Closing”) regarding
any remaining outstanding items and to understand any changes to the business between now and Closing. Seller agrees that management
is to keep xG apprised of any changes in its business or the operations thereof up until and including the date of Closing.

 

It is our intent to negotiate a mutually
acceptable business and asset purchase and sale agreement (the "Agreement") which, among other things, will provide for
the following:

 

		1.	Provided that the Seller agrees to the terms below and countersigns this LOI by January 14, 2016,
and subject to Seller also meeting such dates and requirements to achieve a quick and timely closing, xG agrees to close by January
31, 2016. And despite concerns raised from the due diligence investigation, as long as Conditions Precedent below are dealt with
to Buyer’s satisfaction, xG will not propose to amend the overall consideration of $3 million for the Designated Assets and
that was previously discussed. Should such terms however change, that may materially impact any other terms below and xG reserves
the right to revise such terms and/or withdraw its offer.

 

		2.	Provided a timely closing, xG will pay $1.5 million cash to Seller by March 31, 2016; or alternatively
sixty days post-closing should such closing date be later than January 31, 2016.

 

 

 

 

240 South Pineapple Avenue • Suite
701 • Sarasota, FL 34236 • 941.953.9035 • 941.954.8595 (F) • www.xGtechnology.com

 

    

     

    

 

		3.	xG agrees to provide a promissory note at Closing for an additional $1.5 million cash to be paid
eighteen months subsequent to the date of Closing. xG will pay 6% interest, payable semi-annually, on such note and the Parties
by mutual agreement can choose to pay it in shares should they deem that preferable.

 

		4.	Conditions Precedent to Closing are as follows:

 

		A.	John Payne agrees to a compensation and incentive package that is mutually agreeable to both xG and him.

 

		B.	The sublease references that it can be automatically extended until November 2017 and after adjusting the rent to the actual
square footage that IMT now utilizes. This extension should be done and subjected to xG’s acceptance of such revised terms
and based on the actual square footage now occupied/needed by IMT. xG and IMT management will need to mutually agree these terms.

 

		C.	xG sees each updated financial statement since the last one it received in due diligence and to be updated up until and including
the date of Closing.

 

		D.	IMT will provide xG with the best estimate of the amount of costs of goods sold that it projects for 2016 that will come out
of existing inventory (where xG does not have to pay the costs of new inventory). And in such a manner that xG can then determine
the estimated COGS where the Company will have to fund its COGS. That was unclear from the projections that xG already received.

 

		E.	Any other material items that may substantially impact cash flow based on the projection should be disclosed to xG.

 

		F.	The terms of the promissory note will be agreed.

 

		5.	Once this LOI is fully executed, xG will be required to issue a press release concerning this acquisition.
And xG will provide Seller with an advance copy of such release before issuance thereof.

 

		6.	In consideration of the substantial expenditures of time, effort,
and expense to be undertaken by xG in connection with the performance of due diligence and the preparation of the Agreement, the
Company and Seller agree not to initiate or enter into any discussions with any other prospective purchaser of the assets and/or
liabilities, or of the stock or businesses of the Company prior to 15 February 2016. 

 

		7.	Upon execution of this Letter of Intent, and assuming satisfactory resolution of the Conditions
Precedent, the Company, the Seller and their respective agents agree to negotiate and work toward the execution of the Agreement.
The parties agree that, if the Agreement is negotiated to the satisfaction of the respective parties, upon execution of the Agreement,
they will with all deliberate speed take such actions as are reasonably necessary to consummate the transaction.

 

		8.	This transaction will be subject to the satisfaction of the terms, covenants, conditions and other
provisions to be contained in the Agreement. And such Agreement shall also contain such other terms, covenants and conditions as
are customary for a transaction of this size and type.

 

This Letter of Intent is intended to be
and shall constitute a legally binding and enforceable document of xG and the Seller, each acting through its respective Boards
of Directors.

 

If the foregoing meets your approval, please
so signify by signing and returning the enclosed copy of this Letter of Intent.

 

    

     

    

 

Balance of page left intentionally blank.

 

    

     

    

 

This Letter of Intent may be executed in
counterparts and each counterpart will be treated as if it were an original.

 

	 	Sincerely,
	 	 	 
	 	xG Technology, Inc.
	 	 	 
	 	By: 	/s/ George F. Schmitt
	 	 	 
	 	George F. Schmitt, CEO
	 	 	 
	 	(This LOI is good only until 5 p.m. Wednesday, Jan. 14, 2016, unless both signatures received)

  

Agreed and accepted:

 

International Microwave Technologies,
LLC

 

	/s/ Richard A. Bigelow	 
	 	 
	Print Name/Title:  Richard A.
    Bigelow
                               CEO
    - IMT

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