Document:

EX-10.1

Benefit Equalization Plan

December 16, 2016

Effective January 1, 2017

Policy Information

	 	 	 
	Document Title:

	 	Benefit Equalization Plan
	Content Owner:

	 	Director of Human Resources and the

Office of Minority and Women Inclusion
	Certification of Compliance Contact:

	 	N/A
	Policy Category:

	 	FHLBank Policy
	FHLBank-Level Approver:

	 	Policy Oversight Group
	Board-Level Approver:

	 	Full Board (Compensation)
	Review Frequency:

	 	As Needed
	Initial Effective Date:

	 	03/23/2006
	Last POG Approval Date:

	 	12/06/2016
	Next Review Date:

	 	As Needed

1

This Benefit Equalization Plan (the “Plan”) was established effective March 23, 2006 by
the Federal Home Loan Bank of Topeka (the “Bank”) and was amended and restated effective December
31, 2008 and December 17, 2014. The Plan is hereby amended and restated effective January 1, 2017
and applies to accruals, contributions, and Distribution Events on and after that date.

The Plan is an unfunded non-qualified retirement plan that is primarily intended to provide
the deferral of compensation for a select group of management or highly compensated employees, and
is intended to comply with all applicable laws, including IRC Section 409A.

Article 1. Definitions

When used in the Plan, the following terms shall have the following meanings:

1.01 “Account” means the account established and maintained to record a Member’s
Thrift Benefits.

1.02 “Actuary” means the independent consulting actuary retained by the Bank to
assist the Committee in its administration of the Plan.

1.03 “Bank” means the Federal Home Loan Bank of Topeka.

1.04 “Base Salary” means the base salary rate paid to a Member. “Base Salary” does
not include such additional compensation as bonuses, commissions, overtime, fringe benefits,
relocation expenses, incentive payments, disability payments, benefit plan distributions,
non-monetary awards, automobile and other allowances paid to a Member for employment services
rendered (whether or not such allowances are included in the Member’s gross income. Base Salary
shall be calculated before reductions for compensation voluntarily deferred or contributed by the
Member pursuant to all qualified or nonqualified plans of the Bank and includes amounts not
otherwise included in the Member’s gross income under IRC Sections 125, 132, 402(e)(3), 402(h), or
403(b) pursuant to plans or arrangements established by the Bank; provided, however, that all such
amounts will be included in compensation only to the extent that had there been no such plan, the
amount would have been payable in cash to the Member.

1.05 “Beneficiary” means the beneficiary or beneficiaries designated in accordance
with Article 6 of the Plan to receive the benefit, if any, payable upon the death of a Member.

1.06 “Board of Directors” means the Board of Directors of the Bank.

1.07 “Change of Control” means a change in the ownership or effective control of the
Bank, or in the ownership of a substantial portion of the assets of the Bank, as set forth in IRC
Section 409A.

1.08 “Committee” means the Compensation Committee of the Board of Directors.

1.09 “Compensation” means Base Salary plus Incentive Compensation.

1.10 “Deferral Agreement” means the agreement under which a Member elects to defer
compensation under the Plan in accordance with the provisions of Section 4.01.

1.11 “Disability” or “Disabled” means the Member meets one of the following
requirements:

(a) The Member is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment that can be expected to
result in death or can be expected to last for a continuous period of twelve (12) months.

(b) The Member is, by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last for a
continuous period of not less than twelve (12) months, receiving income replacement for a
period of not less than three (3) months under a disability, accident or health plan
covering employees of the Bank.

A Member will be deemed Disabled under this Section 1.11 if determined to be disabled by the Social
Security Administration. Furthermore, a Member will be deemed Disabled under this Section 1.11 if
determined to be disabled in accordance with a disability insurance program, provided that the
definition under such program complies with Subsection 1.11(a) or (b), or IRC Section 409A, as
applicable.

1.12 “Distribution Event” means a Change of Control of the Bank or the Member’s
death, Disability, or Termination of Employment.

1.13 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

1.14 “Retirement Fund” means the Pentegra Defined Benefit Plan for Financial
Institutions (formerly known as the Financial Institutions Retirement Fund), a qualified and tax
exempt defined benefit pension plan and trust under Sections 401(a) and 501(a) of the IRC, as
adopted by the Bank.

1.15 “Incentive Compensation” means bonuses and other incentive compensation
payments payable to a Member under any incentive compensation plans adopted by the Bank from time
to time. “Incentive Compensation” does not include any payments made to a Member under a long-term
incentive compensation plan and/or a long-term deferral component of an incentive compensation
plan.

1.16 “IRC” means the Internal Revenue Code of 1986, and any applicable Treasury
Regulations promulgated thereunder, as amended from time to time, or any successor thereto.

1.17 “IRC Limitations” means the cap on compensation that may be taken into account
by a plan under IRC Section 401(a)(17), the limitations on 401(k) contributions necessary to meet
the average deferral percentage (“ADP”) test under IRC Section 401(k)(3)(A)(ii), the limitations on
employee and matching contributions necessary to meet the average contribution percentage (“ACP”)
test under IRC Section 401(m), the dollar limitations on elective deferrals under IRC Section
402(g), and the overall limitations on contributions and benefits imposed on qualified plans by IRC
Section 415, as such provisions may be amended from time to time, and any similar successor
provisions of federal tax law.

1.18 “Member” means any person included in the membership of the Plan as provided in
Article 2.

1.19 “Pension Benefit” means the benefits payable to a Member set forth in Article 3
of the Plan.

1.20 “Plan” means the Federal Home Loan Bank of Topeka Benefit Equalization Plan, as
set forth herein and amended from time to time.

1.21 “Regular Form” shall have the meaning given to the term in Section 3.02 of the
Plan.

1.22 “Termination” or “Termination of Employment” means a separation from service in
accordance with IRC Section 409A.

1.23 “Thrift Benefit” means the benefits payable to a Member as set forth in Article
4 of the Plan.

1.24 “Thrift Plan” means the Financial Institutions Thrift Plan, a qualified and tax
exempt defined contribution plan and trust under Sections 401(a) and 501(a) of the IRC, as adopted
by the Bank.

Article 2. Membership

2.01 Members of the Plan. Each of the following employees of the Bank is
hereby made a member of the Plan: Sonia R. Betsworth, Denise L. Cauthon, Patrick C. Doran, Dan J.
Hess, Andrew J. Jetter, Thomas E. Millburn, Wil W. Osborn and Mark E. Yardley.

2.02 Addition or Termination of Members. The Board of Directors may add
additional employees as Members to the Plan and may, subject to Article 8, terminate the
participation in the Plan of any employee.

2.03 Leave of Absence. If the Bank authorizes a Member to take a paid or an
unpaid leave of absence from employment, and such leave of absence does not constitute a
Termination of Employment, the Member shall continue to be considered eligible for the benefits
provided in Articles 3 and 4, in accordance with the provisions of those Articles. In the event
that Member’s leave of absence from the Bank constitutes a Termination of Employment, the Member’s
Account balance shall be distributed to the Member in accordance with this Plan.

2.04 Top Hat Plan Exemption. This Plan is intended to be a “top hat plan,”
with a primary purpose to provide deferred compensation for a select group of management or highly
compensated employees. To assist with this intent, no employee may be a Member of the Plan unless
the employee is an officer of the Bank having an annual compensation greater than 50 percent of the
amount in effect under IRC Section 415(b)(1)(A) for any such calendar year or is a highly
compensated employee as defined in IRC Section 414(q).

Article 3. Pension Benefits

3.01 Annual Pension Benefit Payable. The amount, if any, of the annual
Pension Benefit payable to a Member pursuant to the Plan shall equal:

(a) the annual pension benefit (as calculated by the Retirement Fund on the
basis of the form of payment elected by the Member) that would otherwise be payable to or on
account of the Member by the Retirement Fund if its provisions were administered:

(i) without regard to the IRC Limitations; and

(ii) with the inclusion in the definition of “Base Salary” under the
Retirement Fund for the calendar year of any amount deferred by a Member for such
calendar year under Section 4.01 of this Plan, and

(b) reduced by the annual pension benefit (as calculated by the Retirement
Fund on the basis of the form of payment elected by the Member) that is actually payable to
the Member by the Retirement Fund. The amount taken into account under this subsection (b)
shall not exceed the IRC Section 402(g) limitation applicable to the calendar year of
payment.

For purposes of this Section 3.01 “annual pension benefit” includes any “Active Service Death
Benefit,” “Retirement Adjustment Payment,” “Annual Increment” and “Single Purchase Fixed Percentage
Adjustment” which the Bank elected to provide its employees under the Retirement Fund.

3.02 Regular Form of Payment.

(a) Single Lump Sum. Unless the Member elects an optional form of
payment under the Plan pursuant to Section 3.03 below, the annual Pension Benefit, if any,
payable to a Member under Section 3.01 shall be payable to the Member in a single lump sum
(the “Regular Form”) payable ninety (90) days after the Member’s Distribution Event. The
same actuarial factors and assumptions then used by the Retirement Fund will be used to
determine actuarial equivalence for purposes of this Section 3.02(a).

(b) Death. Upon the death of a Member (who has not elected an
optional form of payment under Section 3.03 below) before commencement of the payment of the
Member’s Pension Benefit pursuant to Section 3.02(a), the Member’s Pension Benefit shall be
payable to the Beneficiary in a single lump sum within ninety (90) days of the Member’s
death.

3.03 Optional Form of Payment.

(a) Optional Forms of Payment Available. A Member may elect in
writing to have his or her Pension Benefit, if any, converted by the actuary to any of the
optional forms of annuity payment most recently permitted under the Retirement Fund as of
the date of the Distribution Event and that are actuarially equivalent applying reasonable
actuarial methods and assumptions. The actuary shall utilize for the purpose of that
conversion the same actuarial factors and assumptions then used by the Retirement Fund to
determine actuarial equivalence, in accordance with IRC Section 409A.

(b) Election. To elect an optional form of payment, the Member shall
submit to the Committee a distribution election on the form prescribed by the Committee no
later than (1) 30 days following the date in which the Member first becomes eligible to
participate in the Plan or (2) December 31, 2016, if the Member was participating in the
Plan on such date. The election will apply to all Pension Benefits earned after the date of
the election. The Member may elect an optional form of annuity payment for his or her
Pension Benefit that is different from any optional form of annuity payment elections made
by the Member for any Thrift Benefits under the Plan.

(c) Payment. Payment of a Member’s Pension Benefit shall commence at
such time as the elected optional form of annuity payment would commence under the
Retirement Fund, but no later than 90 days following the Member’s Distribution Event.

(d) Death. If a Member dies after payment of the Member’s Pension
Benefit has commenced, the only death benefit, if any, payable under the Plan in respect of
said Member shall be the amount, if any, payable under the optional form of annuity payment
that the Member had elected under the Plan. If a Member elects an optional form of annuity
payment but dies before the date the Member’s Pension Benefit commences, Member’s entire
Pension Benefit shall be paid to the Member’s Beneficiary in a single lump sum no later than
ninety (90) days after the Member’s death.

(e) Modification of Election. A Member may change the form of payment
of his or her Pension Benefit on the form prescribed by the Committee. The change will not
be effective until the date that is twelve (12) months after the date the form is submitted
to the Committee. Distribution pursuant to the amended election shall not commence sooner
than a date that is at least five (5) years after the date on which payment of the Pension
Benefit would have commenced under the Member’s original election.

3.04 Vesting. A Member shall at all times be 100% vested in his or her
Pension Benefit.

3.05 Automatic Distribution of Pension Benefit Less Than IRC Section 402(g)
Limitation. Notwithstanding any other provision of this Plan, in the event that a Member has
experienced a Distribution Event and if the Member’s entire Pension Benefit is less than the IRC
Section 402(g) limitation applicable to the calendar year in which the Distribution Event occurs,
the Member’s entire Pension Benefit shall automatically be paid in the form of a single lump sum
payment, which shall commence within ninety (90) days of the Distribution Event. The amount of the
lump sum payment shall be the equivalent actuarial value of the Pension Benefit otherwise due the
Member using the same actuarial factors and assumptions then used by the Retirement Fund to
determine actuarial equivalence.

Article 4. Thrift Benefits

4.01 Member
Contributions
        .                                                                                                   
                                                                                                 

(a) Base Salary. A Member may elect to reduce his or her Base Salary
in exchange for a Thrift Benefit under the Plan. The Bank will credit a Member’s Account
each pay period with an amount equal to (i) the Base Salary payable to the Member for the
pay period, multiplied by the percentage of Base Salary elected by the Member for the
calendar year to be deferred into the Plan, and then reduced by (ii) the amount of Member’s
contribution to the Thrift Plan for the pay period (excluding any contributions based on
Incentive Compensation), including “catch-up contributions.”

(b) Incentive Compensation. A Member may elect to reduce his or her
Incentive Compensation in exchange for a Thrift Benefit under the Plan. The Bank will
credit a Member’s Account with an amount equal to (i) the Incentive Compensation payable to
the Member for the pay period, multiplied by the percentage of Incentive Compensation
elected by the Member to be deferred into the Plan, then reduced by (ii) the amount of the
Member’s Incentive Compensation contribution to the Thrift Plan for the pay period,
including “catch-up contributions.”

4.02 Employer Matching Contributions.

(a) In General. The Bank will credit to each Member’s Account a matching
contribution equal to the matching contribution, if any, that would be credited under the
Thrift Plan if the amounts credited under Section 4.01 were contributed to the Thrift Plan,
determined as if the provisions of the Thrift Plan were administered without regard to the
IRC Limitations and reduced by the actual matching contributions made to the Member’s
account under the Thrift Plan.

(b) True Up. Matching contributions will be credited to the Member’s
Account each payroll period. As soon as administratively practicable after the close of the
calendar year, or on a more frequent basis as deemed appropriate by the Committee, the
matching formula will be reapplied based on the Member’s deferral contributions under the
Plan for the calendar year under Section 4.01 and an additional “true-up” matching
contribution will be made equal to the amount derived by applying the schedule in such
manner, reduced by the matching contributions already made during the calendar year.

4.03 Deferral Elections. A Member’s elections under Section 4.01 shall be
made in accordance with the following provisions:

(a) Base Salary Election. The Committee shall provide each Member
with a Deferral Agreement prior to the commencement of the calendar year in which the Base
Salary is to be earned and paid. Each Member shall execute and deliver the Deferral
Agreement to the Committee no later than the last business day preceding the calendar year
in which Base Salary is to be earned.

(b) Incentive Compensation Election. The Committee shall provide
each Member with a Deferral Agreement prior to the commencement of the calendar year in
which the Incentive Compensation is to be earned. Each Member shall execute and deliver the
Deferral Agreement to the Committee no later than the last business day preceding the
calendar year in which the Incentive Compensation is to be earned. To the extent the
Incentive Compensation qualifies as “performance-based compensation” under IRC Section 409,
the Committee may, in its discretion, allow a Member to execute and deliver a Deferral
Agreement to the Committee no later than six months prior to the last day of the performance
period for which the Incentive Compensation is earned.

(c) Newly Eligible Employees. A Member who becomes eligible to
participate in the Plan during the calendar year may execute a Deferral Agreement within 30
days of the date the Member becomes eligible to participate in the Plan. The Deferral
Agreement shall only apply to compensation earned by the Member after the date the Deferral
Agreement is submitted to the Committee.

(d) Election Irrevocable. A Member may not modify or revoke his or
her Deferral Agreement after such Deferral Agreement takes effect for the calendar year.
Notwithstanding the foregoing, a Member may, in the event of an Unforeseeable Emergency (as
defined in Section 4.08 of the Plan), request a suspension of his or her contributions under
Section 4.01 of the Plan. The request shall be made in a time and manner determined by the
Committee. The suspension shall be effective with respect to the portion of the calendar
year remaining after the Committee’s determination that the Member has incurred an
Unforeseeable Emergency. The Committee shall apply standards, to the extent applicable,
identical to those described in Section 4.08 in making its determination whether to suspend
contributions to the Plan under Section 4.01 for the remainder of the calendar year.

4.04 Maintenance of Accounts. In addition to maintaining an accounting of
all Pension Benefit amounts that a Member shall be entitled to under Section 3.01, the Committee
shall maintain an Account on the books and records of the Bank for each Member. Contributions to
the Plan made under Sections 4.01 and 4.02 shall be credited to the Member’s Account as soon as
practical after the date that the compensation reduced under Section 4.01 would otherwise have been
paid to such Member.

4.05 Earnings. A Member’s Account shall be credited (or debited) annually
based upon the greater of the following as of December 31 of each year, to be applied January 1
through December 31 of the next year: (a) the Bank’s Pre-ASC 815 return on equity rate or (b) the
Effective Federal Funds Rate.

4.06 Vesting. A Member shall at all times be 100% vested in his or her
Account.

4.07 Distribution of Thrift Benefits.

(a) Time of Distribution. Distribution of a Member’s Thrift Benefits
under the Plan shall commence no later than ninety (90) days after the Member’s Distribution
Event.

(b) Form of Distribution. A Member’s Account under the Plan may be
paid in any of the following forms:

(i) A single lump sum.

(ii) Equal payments over a number of years, not to exceed seven
years.

(iii) Any form of annuity payment permitted under the Retirement Fund.

(c) Distribution Election. A Member must elect in writing, at the
time he or she submits a Deferral Election under Section 4.03, the form of distribution the
Member elects for the amounts deferred pursuant to the applicable Deferral Agreement. The
Member’s election shall only apply to the amounts deferred pursuant to the Deferral
Agreement for that calendar year. If the Member does not elect a form of distribution for a
calendar year, the applicable form of distribution for amounts deferred for that calendar
year will be a single lump sum. The form of distribution elected in a Deferral Agreement
need not be the same across prior or subsequent Deferral Agreements. A Member may elect a
form of distribution different than the form of distribution applicable to his or her
Pension Benefit. 

(d) Modification of Distribution Election. A Member may change the
form of payment of his or her Thrift Benefit on the form prescribed by the Committee. The
change will not be effective until the date that is twelve (12) months after the date the
form is submitted to the Committee. Distribution pursuant to the amended election shall not
commence sooner than a date that is at least five (5) years after the date on which payment
of the Thrift Benefit would have commenced under the Member’s original election.

(e) Distribution of Account Balances Less Than IRC Section 402(g)
Limitation. Notwithstanding any other provision of this Plan, if a Member’s Thrift
Benefit Account balance is less than the allowable limit under IRC Section 402(g) when the
Member’s Distribution Event occurs, the Member’s entire Thrift Benefit shall be paid to the
Member in the form of a lump sum payment within ninety (90) days after the Distribution
Event.

(f) Death of Member. If a Member dies prior to full distribution of
his or her Account, the balance in the Member’s Account shall be paid to the Member’s
Beneficiary in a single lump sum within ninety (90) days after the Member’s death.

4.08 Unforeseeable Emergency. In the event of an Unforeseeable Emergency
prior to a Member’s Distribution Event, a Member may request a withdrawal from the Member’s
Account. The request shall be made in a time and manner determined by the Committee, shall be for
an amount no greater than the lesser of (a) the amount required to meet the financial hardship, or
(b) the amount of the Member’s Account, and shall be subject to approval by the Committee. For
purposes of this Section 4.08, an “Unforeseeable Emergency” means a severe financial hardship
resulting from a sudden or unexpected illness or accident of the Member or one of the Member’s
dependents, loss of property due to casualty or other similar extraordinary and unforeseen
circumstances arising as a result of events beyond the Member’s control and which hardship the
Member is unable to satisfy with funds reasonably available from other sources. The circumstances
that will constitute an Unforeseeable Emergency will depend upon the facts of each case as
determined by the Committee. Notwithstanding the foregoing, a Member may not receive a
distribution from the Plan to the extent that the distribution would be inconsistent with IRC
Section 409A. If the Committee approves the Member’s petition for distribution due to an
Unforeseeable Emergency, the distribution to the Member shall occur within thirty (30) days of the
first day of the calendar quarter following the date of such approval (or at such later time
permitted under IRC Section 409A).

4.09 Excess Deferral Contributions. To the extent the amount of a Member’s
Thrift Benefit for a calendar year exceeds the amount of any limits set forth herein, such excess
contribution amounts shall be paid to the Member as additional compensation (and not as a further
deferral under the BEP or Thrift Plan) within 21/2 months after the later of the tax year in which
the compensation was earned or the Bank’s fiscal year.

Article 5. Source and Method of Payments

5.01 Obligations are Unsecured General Claims. All payments of benefits
under the Plan shall be paid from, and shall only be a general claim upon, the general assets of
the Bank; provided, however, that that the Bank may, in its discretion, establish a bookkeeping
reserve or a grantor trust (as such term is used in IRC Sections 671 through 677) to reflect or to
aid it in meeting its obligations under the Plan with respect to any Member or prospective Member
or Beneficiary. No benefit whatever provided by the Plan shall be payable from the assets of the
Retirement Fund or the Thrift Plan.

5.02 Member has no Right to Specific Assets. No Member shall have any
right, title or interest whatever in or to any investments that the Bank may make or any specific
assets that the Bank may reserve to aid it in meeting its obligations under the Plan. To the
extent that any person acquires a right to receive payments from the Bank under the Plan, such
right shall be no greater than the right of an unsecured general creditor of the Bank.

5.03 Delay of Distributions. Notwithstanding herein to the contrary, if it
is administratively impracticable to make a distribution under this Plan by the required payment
date, and such impracticability is unforeseeable, then such payment shall be made as soon as
administratively practicable.

Article 6. Designation of Beneficiaries

6.01 Beneficiary Designation. Each Member of the Plan may file with the
Committee a written designation of one or more persons as the Beneficiary who shall be entitled to
receive the amount of all benefits payable under the Plan upon the Member’s death. A Member may,
from time to time, revoke or change the Member’s Beneficiary designation without the consent of any
prior Beneficiary by filing a new designation with the Committee. The last such designation
received by the Committee shall be controlling; provided, however, that no designation, or change
or revocation thereof, shall be effective unless received by the Committee prior to the Member’s
death, and in no event shall it be effective as of a date prior to such receipt.

6.02 No Designated Beneficiary. If no such Beneficiary designation is in
effect at the time of a Member’s death, or if no designated Beneficiary survives the Member, or if,
in the opinion of the Committee, such designation conflicts with applicable law, the Member’s
estate shall be deemed to have been designated the Member’s Beneficiary and shall be paid the
amount, if any, payable under the Plan upon the Member’s death. If the Committee is in doubt as to
the right of any person to receive such amount, the Committee may retain such amount, without
liability for any interest thereon, until the rights thereto are determined, or the Committee may
pay such amount into any court of appropriate jurisdiction and such payment shall be a complete
discharge of the liability of the Plan and the Bank therefore.

Article 7. Administration of the Plan

7.01 Compensation Committee. The Board of Directors has delegated to the
Committee, subject to those powers that the Board of Directors has reserved as described in Article
8 below, general authority over and responsibility for the administration and interpretation of the
Plan. The Committee shall have full power and authority to interpret and construe the Plan, to
make all determinations considered necessary or advisable for the administration of the Plan and
any trust referred to in Article 5 above and for the calculation of the amount of benefits payable
thereunder, and to review claims for benefits under the Plan. The Committee’s interpretations and
constructions of the Plan and its decisions or actions thereunder shall be binding and conclusive
on all persons for all purposes. The Committee may delegate to any agent or to any sub-committee or
Committee member its authority to perform any act hereunder, including without limitation those
matters involving the exercise of discretion; provided, however, that such delegation shall be
subject to revocation at any time at the discretion of the Committee.

7.02 Engagement of Consultants. If the Committee deems it advisable, it
shall arrange for the engagement of actuaries, legal counsel and certified public accountants (who
may be counsel or accountants for the Bank), and other consultants, and make use of agents and
clerical or other personnel, for purposes of the Plan. The Committee may rely upon the written
opinions of such actuaries, counsel, accountants and consultants, and upon any information supplied
by the Retirement Fund or Thrift Plan for purposes of Article III and Article IV of the Plan. The
Committee shall report to the Board of Directors at such intervals as shall be specified by the
Board with regard to the matters for which it is responsible under the Plan.

7.03 Claims for Benefits.

(a) Initial Claim. A Member or Beneficiary (or his or her duly
authorized representative) (the “claimant”) may file a claim for benefits in writing with
the Committee. If any such claim is wholly or partially denied, the Committee will notify
the claimant of its decision in writing. The notification will set forth, in a manner
calculated to be understood by the claimant:

(i) the specific reason or reasons for the adverse determination,

(ii) reference to the specific Plan provisions on which the
determination is based,

(iii)  a description of any additional material or information
necessary for the claimant to perfect the claim and an explanation of why such
material or information is necessary, and

(iv) a description of the Plan’s review procedures and the time
limits applicable to such procedures, including a statement of the claimant’s right
to bring a civil action under Section 502(a) of ERISA following the appeal of an
adverse benefit determination.

Such notification will be given within ninety (90) days after the claim is received by the
Committee, or within one hundred eighty (180) days, if the Committee determines that special
circumstances require an extension of time for processing the claim. If the Committee
determines that an extension of time for processing is required, written notice of the
extension shall be furnished to the claimant prior to the termination of the initial ninety
(90)-day period. The extension notice shall indicate the special circumstances requiring an
extension of time and the date by which the Committee expects to render a benefit
determination.

(b) Appeals. Within sixty (60) days after the receipt of
notification of an adverse benefit determination, a claimant may file a written request with
the Committee for a review of the claimant’s adverse benefit determination and submit
written comments, documents, records, and other information relating to the claim for
benefits. A request for review shall be deemed filed as of the date of receipt of such
written request by the Committee. A claimant shall be provided, upon request and free of
charge, reasonable access to, and copies of, all documents, records, and other information
relevant to the claimant’s claim for benefits. The Committee will take into account all
comments, documents, records, and other information submitted by the claimant relating to
the claim, without regard to whether such information was submitted or considered in the
initial benefit determination. The Committee will notify the claimant of its decision on
review in writing. Such notification will be written in a manner calculated to be
understood by the claimant and will contain:

(i) the specific reason or reasons for the adverse determination,

(ii) reference to the specific Plan provisions on which the benefit
determination is based,

(iii) a statement that the claimant is entitled to receive, upon
request and free of charge, reasonable access to, and copies of, all documents,
records, and other information relevant to the claimant’s claim for benefits, and

(iv) a statement of the claimant’s right to bring a civil action
under Section 502(a) of ERISA.

The decision on review will be made within sixty (60) days after the request for review is
received by the Committee, or within one hundred twenty (120) days if the Committee
determines that special circumstances require an extension of time for processing the claim.
If the Committee determines that an extension of time for processing is required, written
notice of the extension shall be furnished to the claimant prior to the termination of the
initial sixty (60)-day period. The extension notice shall indicate the special
circumstances requiring an extension of time and the date by which the Plan expects to
render the determination on review. The Committee’s decision on review shall be final and
binding on the claimant.

(c) Time Limits. The claimant will be solely responsible for taking
prompt actions in the event of disputed payments as necessary to avoid any adverse tax
consequences under IRC Section 409A, even if action is required to be taken under IRC
Section 409A sooner than is required under the claims procedures of Section 7.03. The
claims and review procedures described herein must be utilized and fully exhausted before a
claimant may bring a legal action against the Bank, the Committee, the Committee members, or
the Plan and any such legal action must be filed within two (2) years of receiving final
notice of the benefit determination in Section 7.03(b). A claimant who successfully seeks
judicial reversal or modification of a Committee decision shall be reimbursed by the Bank
for that claimant’s attorneys’ fees.

7.04 Expenses. All expenses incurred by the Committee in its administration
of the Plan shall be paid by the Bank.

Article 8. Amendment and Termination

Although the Bank anticipates that it will continue the Plan for an indefinite period of time,
the Board of Directors reserves the right in its sole and absolute discretion to amend, suspend, or
terminate, in whole or in part, the Plan, including but not limited to the termination of any
Member’s participation in the Plan, without the consent of the Committee, any Member, Beneficiary
or other person, except that no amendment, suspension or termination shall retroactively impair or
otherwise adversely affect the rights of any Member, Beneficiary or other person to benefits under
the Plan which have accrued prior to the date of such action, as determined by the Committee or
Board in its sole discretion. The Committee may adopt any amendment, and take any other action
that may be necessary or appropriate to facilitate the administration, management and
interpretation of the Plan or to conform the Plan thereto, provided any such amendment or action
does not have a material effect on the then currently estimated cost to the Bank of maintaining the
Plan.

In the event the Plan is terminated, the termination shall occur in a manner consistent with
the requirements of IRC Section 409A, including but not limited to allowing the Bank to terminate
and liquidate the Plan: (1) when the Bank has declared bankruptcy, (2) when the Bank has
participated in certain Change of Control events, or (3) at the Bank’s discretion, subject to
certain restrictions and limitations described in IRC Section 409A and the regulations promulgated
thereunder.

Article 9. General Provisions

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

9.02 No Continued Right to Employment. Neither the Plan nor any action
taken thereunder shall be construed as giving to a Member the right to be retained in the employ of
the Bank or as affecting the right of the Bank to dismiss any Member from its employ.

9.03 Taxes.

(a) Vested Amounts. For each Plan Year in which an amount credited to
a Member’s Account becomes vested, to the extent applicable and/or required under applicable
law, the Bank shall withhold from that portion of the Member’s Base Salary, bonus and/or
commissions, in a manner determined by the Bank, the Member’s share of FICA and other
employment taxes on the applicable annual contribution amounts. The Bank may, in its sole
discretion, make or change any administrative elections necessary to maximize the tax
benefit available to the Bank or the Member.

(b) Distributions. The Bank may withhold from any payments made to a
Member under this Plan all federal, state and local income, employment and other taxes
required to be withheld by the Bank in connection with such payments, in amounts and in a
manner to be determined in the sole and absolute discretion of the Bank.

(c) Income Inclusion Pursuant to IRC Section 409A. In the event that
any portion of a Member’s Account balance is required to be included in income by the Member
prior to receipt of any distribution under this Plan because of a violation of the
requirements of IRC Section 409A, the Bank may withhold from the Member all federal, state
and local income, employment and other taxes required to be withheld by the Bank in
connection with such income inclusion, in amounts and in a manner determined in the sole and
absolute discretion of the Bank. If necessary, the Member’s annual contribution amount may
be reduced to pay any taxes and to pay income tax withholdings associated with IRC Section
409A.

(d) No Liability. Neither the Bank nor the Committee is responsible
for any consequence, including but not limited to any tax, penalty, or income inclusion,
resulting from a violation of IRC Section 409A or any Treasury Regulations promulgated
thereunder with respect to any election made by any Member under this Plan.

9.04 No Disposition of Member’s Rights. No right or interest of a Member
under the Plan may be assigned, sold, encumbered, transferred or otherwise disposed of any
attempted disposition of such right or interest shall be null and void.

9.05 Incompetency of Member or Beneficiary. If the Committee shall find
that any person to whom any amount is or was payable under the Plan is unable to care for that
Member’s affairs because of illness or accident, or is a minor, or has died, then any payment, or
any part thereof, due to such person or that person’s estate (unless a prior claim therefore has
been made by a duly appointed legal representative), may, in the Committee’s sole discretion, be
paid to such person’s spouse, child or other relative, an institution maintaining or having custody
of such person, or any other person deemed by the Committee to be a proper recipient on behalf of
such person otherwise entitled to payment. Any such payment shall be in complete discharge of the
liability of the Plan and the Bank therefore.

9.06 Communications to Committee. All elections, designations, requests,
notices, instructions, and other communications from a Member, beneficiary or other person to the
Committee required or permitted under the Plan shall be in such form as is prescribed from time to
time by the Committee and shall be mailed by first-class mail or delivered to such location as
shall be specified by the Committee and shall be deemed to have been given and delivered only upon
actual receipt thereof at such location.

9.07 Section 409A. This Plan is intended to comply with IRC Section 409A
and shall be construed and administered in accordance with that intent. Notwithstanding the
foregoing, the Bank makes no representations that the payments and benefits provided under this
Agreement comply with IRC Section 409A and in no event shall the Bank be liable for all or any
portion of any taxes, penalties, interest or other expenses that may be incurred by the Member on
account of non-compliance with IRC Section 409A.

9.08 Benefits Independent. The benefits payable under the Plan shall be in
addition to all other benefits provided for employees of the Bank and shall not be deemed salary or
other compensation by the Bank for the purpose of computing benefits to which s/he may be entitled
under any other plan or arrangement of the Bank.

9.09 No Personal Liability; Indemnification. No Committee member shall be
personally liable by reason of any instrument executed by the Committee member or on behalf of that
Committee member, or action taken or not taken by the Committee member in capacity as a Committee
member, nor for any mistake of judgment made in good faith. The Bank shall indemnify and hold
harmless the Committee and each Committee member and each employee, officer, or director of the
Bank, to whom any duty, power, function or action in respect of the Plan may be delegated or
assigned, or from whom any information is requested for Plan purposes, against any cost or expense
(including fees of legal counsel) and liability (including any sum paid in settlement of a claim or
legal action with the approval of the Bank) arising out of anything done or omitted to be done in
connection with the Plan, unless arising out of such person’s fraud or bad faith.

9.10 Waiver. The Bank’s failure to enforce at any time any provision of this
Plan does not constitute a waiver of that provision or of any other provision of this Plan.

9.11 Terminology. As used in the Plan, the masculine gender shall be deemed
to refer to the feminine, and the singular person shall be deemed to refer to the plural, wherever
appropriate.

9.12 Captions. The captions preceding the Sections of the Plan have been
inserted solely as a matter of convenience and shall not be any manner defined by or limit the
scope or intent of any provisions of the Plan.

9.13 Governing Law. The Plan shall be construed according to the laws of
the State of Kansas in effect from time to time.

2Blueprint

 

Exhibit 10.1

 

SIXTH AMENDMENT

TO

LOAN
AND SECURITY AGREEMENT

This
Sixth Amendment to Loan and Security Agreement (this “Amendment”) is
entered into as of January 17, 2017, to be effective as of December
28, 2016, by and among Silicon Valley Bank (“Bank”),
Relm Wireless Corporation, a Nevada corporation (“Relm
Wireless”), and Relm Communications, Inc., a Florida
corporation (“Relm Communications” and together with
Relm Wireless, individually and collectively, jointly and
severally, “Borrower”) whose address is 7100 Technology
Drive, West Melbourne, Florida 32904.

Recitals

A.           Bank
and Borrower have entered into that certain Loan and Security
Agreement dated as of October 23, 2008 (as the same has been and
may from time to time be further amended, modified, supplemented or
restated, the “Loan Agreement”).

B.           Bank
has extended credit to Borrower for the purposes permitted in the
Loan Agreement.

C.           Borrower
has requested that Bank amend the Loan Agreement to (i) extend the
maturity date, and (ii) make certain other revisions to the Loan
Agreement as more fully set forth herein.

D.           Bank
has agreed to so amend certain provisions of the Loan Agreement,
but only to the extent, in accordance with the terms, subject to
the conditions and in reliance upon the representations and
warranties set forth below.

Agreement

Now,
Therefore, in consideration of the foregoing recitals and
other good and valuable consideration, the receipt and adequacy of
which is hereby acknowledged, and intending to be legally bound,
the parties hereto agree as follows:

1. Definitions.
Capitalized terms used but not defined in this Amendment shall have
the meanings given to them in the Loan Agreement.

2. Amendments
to Loan Agreement.

2.1 Section
2.3 (Payment of Interest on
the Credit Extensions). Section 2.3(a) is amended in its
entirety and replaced with the following:

(a)           Interest
Rate. Subject to Section 2.3(b), the principal amount
outstanding under the Revolving Line shall accrue interest at a
floating per annum rate equal to the Prime Rate plus one-quarter of
one percent (0.25%), which interest shall be payable monthly in
accordance with Section 2.3(f) below. Accrued interest on amounts
outstanding under the Revolving Line shall be payable
monthly.

 

 

 

 

2.2 Section 13 (Definitions). The following terms and
their respective definitions set forth in Section 13.1 are
amended in their entirety and replaced with the
following:

“Prime Rate” is the rate of
interest per annum from time to time published in the money rates
section of The Wall Street
Journal or any successor publication thereto as the
“prime rate” then in effect; provided that, in the
event such rate of interest is less than zero, such rate shall be
deemed to be zero for purposes of this Agreement; and provided
further that if such rate of interest, as set forth from time to
time in the money rates section of The Wall Street Journal,
becomes unavailable for any reason as determined by Bank, the
“Prime Rate” shall mean the rate of interest per annum
announced by Bank as its prime rate in effect at its principal
office in the State of California (such Bank announced Prime Rate
not being intended to be the lowest rate of interest charged by
Bank in connection with extensions of credit to
debtors).

“Revolving Line” is an Advance or
Advances in an aggregate amount of up to One Million Dollars
($1,000,000).

“Revolving Line Maturity Date” is
December 27, 2017.

2.3 Section
13 (Definitions). Clause (i) of the defined term
“Permitted Distributions” is amended in its entirety
and replaced with the following:

(i)           dividends
to the shareholder of Relm Wireless not to exceed Five Million
Dollars ($5,000,000) in the aggregate in any twelve month period so
long as an Event of Default does not exist at the time of such
dividend and would not exist after giving effect to such
dividend.

3. Limitation
of Amendments.

3.1 The
amendments set forth in Section 2, above, are effective for
the purposes set forth herein and shall be limited precisely as
written and shall not be deemed to (a) be a consent to any
amendment, waiver or modification of any other term or condition of
any Loan Document, or (b) otherwise prejudice any right or
remedy which Bank may now have or may have in the future under or
in connection with any Loan Document.

3.2 This
Amendment shall be construed in connection with and as part of the
Loan Documents and all terms, conditions, representations,
warranties, covenants and agreements set forth in the Loan
Documents, except as herein amended, are hereby ratified and
confirmed and shall remain in full force and effect.

4. Representations
and Warranties. To induce Bank to enter into this Amendment,
Borrower hereby represents and warrants to Bank as
follows:

4.1 Immediately
after giving effect to this Amendment (a) the representations
and warranties contained in the Loan Documents are true, accurate
and complete in all material respects as of the date hereof (except
to the extent such representations and warranties relate to an
earlier date, in which case they are true and correct as of such
date), and (b) no Event of Default has occurred and is
continuing;

 

 

 

4.2 Borrower
has the power and authority to execute and deliver this Amendment
and to perform its obligations under the Loan Agreement, as amended
by this Amendment;

4.3 The
organizational documents of Borrower most recently delivered to
Bank remain true, accurate and complete and have not been amended,
supplemented or restated and are and continue to be in full force
and effect;

4.4 The
execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan
Agreement, as amended by this Amendment, have been duly
authorized;

4.5 The
execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan
Agreement, as amended by this Amendment, do not and will not
contravene (a) any material law or regulation binding on or
affecting Borrower, (b) any material contractual restriction
with a Person binding on Borrower, (c) any order, judgment or
decree of any court or other governmental or public body or
authority, or subdivision thereof, binding on Borrower, or
(d) the organizational documents of Borrower;

4.6 The
execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan
Agreement, as amended by this Amendment, do not require any order,
consent, approval, license, authorization or validation of, or
filing, recording or registration with, or exemption by any
governmental or public body or authority, or subdivision thereof,
binding on Borrower, except as already has been obtained or made;
and

4.7 This
Amendment has been duly executed and delivered by Borrower and is
the binding obligation of Borrower, enforceable against Borrower in
accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, reorganization, liquidation,
moratorium or other similar laws of general application and
equitable principles relating to or affecting creditors’
rights.

5. Integration.
This Amendment and the Loan Documents represent the entire
agreement about this subject matter and supersede prior
negotiations or agreements. All prior agreements, understandings,
representations, warranties, and negotiations between the parties
about the subject matter of this Amendment and the Loan Documents
merge into this Amendment and the Loan Documents.

6. Counterparts.
This Amendment may be executed in any number of counterparts and
all of such counterparts taken together shall be deemed to
constitute one and the same instrument.

7. Effectiveness.
This Amendment shall be deemed effective as of December 28, 2016,
upon (a) the due execution and delivery to Bank of this Amendment
by each party hereto, (b) Borrower’s payment of a
facility fee in an amount equal to Two Thousand Five Hundred
Dollars ($2,500), and (c) payment of Bank’s legal fees and
expenses in connection with the negotiation and preparation of this
Amendment.

[Signature
page follows.]

 

 

In
Witness Whereof, the
parties hereto have caused this Amendment to be duly executed and
delivered as of the date first written above.

	

BANK

	

BORROWER

	

 

Silicon
Valley Bank

 

 

By:  /s/
Thomas Armstrong

Name: Thomas
Armstrong

Title:  Director

	

 

Relm
Wireless Corporation

 

 

By:  /s/
William P. Kelly

Name: William
P. Kelly

Title:  EVP
& CFO

	
 

	

 

 

Relm
Communications, Inc.

 

 

By: /s/
William P. Kelly

Name: William
P. Kelly

Title:  EVP
& CFO

 

 

 [Signature
Page to Sixth Amendment to Loan and Security
Agreement]

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