Document:

Employment Agreement between COMSYS and Ken Bramlett

 EXHIBIT 10.18 
 Employment Agreement 
 This Employment Agreement (the “Agreement”) is made as of
January 3, 2006, between COMSYS IT Partners, Inc., a Delaware corporation (the “Company”), and Ken R. Bramlett, Jr. (the “Executive”). 
  

	1.	BACKGROUND. The Company’s Board of Directors (the “Board”), acting through the Compensation Committee, considers the employment of the Executive to be
in the best interests of the Company and its shareholders. The Compensation Committee desires to employ the Executive and structure the Executive’s compensation to encourage the Executive to accept employment with the Company, in part by
providing for certain severance benefits if the Executive’s employment ends in certain specified ways. 

  

	2.	DEFINITIONS. For purposes of this Agreement, the following terms have the meanings set forth below. Other defined terms have the meanings set forth in the provisions of this
Agreement in which they are used. 

  

	2.1	Base Salary is defined in Section 4.1. 

  

	2.2	Beneficial Owner is defined in Rule 13d-3 of the Exchange Act. 

  

	2.3	Benefit means any Company- provided or -sponsored pension plan, 401k plan, insurance plan, or other employee benefit plan, program or arrangement, made available to the
Company’s employees generally. 

  

	2.4	Bonus Potential means the bonus amount that would be earned by the Executive under the Company Bonus Plan if the Company’s EBITDA is 100% of the targeted EBITDA for the
applicable period as set forth on Exhibit B. The Executive’s current Bonus Potential is set forth on Exhibit A, Schedule 1. If such potential bonus amount is increased at any time in the Company’s sole discretion, then the resulting
increased potential bonus amount shall be deemed the Bonus Potential for all purposes hereunder. 

  

	2.5	Bonus Potential Earned means the amount of the Executive’s Bonus Potential that was earned during the bonus period in question. The amount earned will be equal to the
percentage of Bonus Potential during the bonus period that corresponds to actual performance during that period, multiplied by the Executive’s Bonus Potential. The amount earned will be prorated for any bonus period the Executive was not
employed by the Company for the entire bonus period based on the portion of the bonus period the Executive was employed by the Company. Any such prorated bonus will be determined at the same time and in the same manner that bonuses are determined
for other participants in the Company Bonus Plan upon completion of such bonus period and payments will be made at the same time that payments are made to other participants in the Company Bonus Plan. In no event will any portion of the Bonus
Potential be deemed to have been earned by the Executive if the Executive resigns other than for Good Reason or if the Employment is terminated for Cause. 

	2.6	Cause: As used in this Agreement: 

  

	 	(a)	The term “Cause” or “for cause” or “with cause” (in upper or lower case) means only one or more of the following except as excluded by
subparagraph (b): (1) the Executive’s conviction of a felony; (2) the Executive’s willful, material and irreparable breach of this Agreement (other than for reason of illness or disability) or any other agreement or
contract between the Executive and the Company or any of its subsidiaries; (3) the Executive’s gross negligence in the performance of, or intentional nonperformance of or inattention to, the Executive’s material duties and
responsibilities hereunder, continuing for thirty (30) days after receipt of written notice of need to cure the same; or (4) the Executive’s willful dishonesty or financial dishonesty, moral turpitude, fraud, theft or material
misconduct with respect to the business or affairs of the Company or any of its subsidiaries. 

  

	 	(b)	The terms “Cause,” “for cause,” and “with cause” (in upper or lower case) shall not include any of the following: (1) bad judgment;
(2) negligence other than gross negligence; (3) any act or omission that was based upon (i) authority given pursuant to a resolution duly adopted by the Board, (ii) instructions of the Board or any
committee thereof or the chief executive officer of the Company or (iii) the advice of counsel for the Company; or (4) any act or omission that the Executive believed in good faith to have been in the interest of the Company,
without intent of the Executive to gain therefrom, directly or indirectly, a personal profit to which he was not legally entitled. 

  

	2.7	Change of Control is defined in Section 10.2. 

  

	2.8	COBRA means the Consolidated Omnibus Budget Reconciliation Act, as the same may be amended from time to time, or any successor statute, together with any applicable
regulations in effect at the time in question. 

  

	2.9	Company Bonus Plan refers to the plan that provides for incentive-based annual corporate bonuses for all Senior Executives, or such other bonus plan as the Company may from
time to time adopt for its Senior Executives in its sole discretion, for providing such incentive-based annual bonuses. The Company Bonus Plan shall establish the bonus criteria for the Company and/or the Executive required for specified bonus
payment percentages to be earned. Any such employee-performance criteria which the Company makes applicable to the Executive shall be consistent with the Executive’s Position. The Executive’s Bonus Plan is attached as Exhibit B.

  

	2.10	Company Group means COMSYS IT Partners, Inc. and its subsidiaries. 

  

	2.11	Company Business is intentionally defined broadly in view of the Executive’s senior position with the Company; it means (1) any business engaged in by the
Company Group during the Executive’s Employment, or (2) any other business as to which the Company Group has made demonstrable preparation to engage in during such Employment and (i) in 

  

			
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	    	which preparation the Executive materially participated, or (ii) concerning which preparation the Executive had access to Confidential Information.

  

	2.12	Confidential Information means information of any Company Business that the Executive learns in the course of the Employment, including but not limited to the information
described in Section 8.1, other than information which the Executive can show: (i) was in the Executive’s possession or within the Executive’s knowledge before the Employment; or (ii) is or becomes generally
known to persons who could take economic advantage of it, other than officers, directors, and employees of the Company, without breach of an obligation to the Company; or (iii) the Executive obtained from a party having the right to
disclose it without violation of an obligation to the Company; or (iv) is required to be disclosed pursuant to legal process (e.g., a subpoena), provided that the Executive notifies the Company immediately upon receiving or becoming
aware of the legal process in question. 

  

	2.13	Day, in upper or lower case, means a calendar day except as otherwise stated. 

  

	2.14	Effective Date is defined in Section 5.1. 

  

	2.15	Employment means the Executive’s employment with the Company. 

  

	2.16	Exchange Act means the Securities Exchange Act of 1934, as amended. 

  

	2.17	Good Reason means the occurrence of any one or more of the following events without the Executive’s express prior written consent (see also the notice-and-cure provision
in the definition of Resignation for Good Reason): 

 (a)(1) removal by the Board of the Executive from the Position; (2) a
material diminution in the Executive’s Position, duties, or responsibility from that held by the Executive immediately prior to such change; or (3) the assignment by the Company to the Executive of duties that are materially inconsistent
with the Executive’s Position; 
 (b)(1) the Company’s requiring the Executive to perform a majority of his duties or to be
permanently based outside of, or the moving of the Executive’s principal office space from Charlotte, North Carolina; or (2) the Company’s requiring the Executive to be permanently based (meaning requiring the Executive to perform a
majority of his duties for a period of more than 30 days) anywhere other than within 50 miles of the Executive’s job location at the time that the directive for such relocation is made by the Company; 
 (c) any Reduction in the Executive’s Base Salary, Bonus Potential, or other compensation (including without limitation any Reduction of any
non-contingent bonus or incentive compensation for which the Executive is eligible); 
 (d) failure to provide the Executive with any Benefit
for which the Executive is eligible under the Benefit plan’s requirements (and, if such Benefit in question is optional, which the Executive has elected to receive); 
  

			
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 (e) any failure of the Company to fulfill its material obligations under this Agreement or under any
stock or stock option agreement, change of control agreement, bonus, benefit or incentive plan or other agreement between the Executive and the Company (the Company’s failure to fulfill obligations addressed in subsections (a) through
(d) shall be governed by those subsections and not subsection (e)); 
 (f) failure of the Company to provide or maintain a Company Bonus
Plan whereby the Executive may earn a bonus as set forth in Section 4.2; or 
 (g) any purported termination by the Company of the
Employment other than as expressly permitted by this Agreement. 
  

	2.18	Group is defined in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended. 

  

	2.19	Merger Transaction means a merger, consolidation or reorganization of the Company with or into any other Person or Group, other than the Permitted Holders.

  

	2.20	On-Target Performance means the point at which the requirements under the Company Bonus Plan necessary for a full payout of the Bonus Potential have been achieved.

  

	2.21	Permitted Holders means Wachovia Investors, Inc. and its affiliates. 

  

	2.22	Person is defined in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended. 

  

	2.23	Position means the area of responsibility so identified on Exhibit A, Schedule 1. If the Company in its sole discretion increases the Executive’s area of responsibility,
then such increased area of responsibility shall be deemed the Position for all purposes hereunder. 

  

	2.24	Reduction, as applied to any aspect of the Executive’s compensation or benefits, means any exclusion, discontinuance without comparable replacement, diminution, or
reduction in the same as in effect immediately prior to such exclusion, discontinuance, diminution, or reduction. 

  

	2.25	Resign for Good Reason or Resignation for Good Reason means that all of the following occur: 

 (a) the Executive notifies the Company in writing, in accordance with the notice provisions of this Agreement, of the occurrence of one or more events
constituting Good Reason hereunder; 
 (b) the Company fails to revoke, rescind, cancel, or cure the event (or if more than one, all such
events) that was the subject of the notification under subparagraph 0 within thirty (30) days after such notice; and 
 (c) within ten
(10) business days after the end of the thirty-day period described in subparagraph 0, the Executive delivers to the Company a notice of resignation in accordance with this Agreement. 
  

			
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	2.26	Sale Transaction means a sale, lease, exchange or other transfer of all or substantially all the assets of the Company and its consolidated subsidiaries to any other Person
or Group, other than the Permitted Holders. 

  

	2.27	Schedule 1 means Schedule 1 set forth at the end of this Agreement in Exhibit A. 

  

	2.28	Senior Executives means the executives of the Company holding the following positions, by whatever title designated, and no others: chief executive officer; executive vice
president-field operations; senior vice president and chief financial officer; senior vice president and chief information officer; senior vice president-corporate development; and senior vice president and general counsel. 

 

	2.29	Severance Benefits means the post-employment compensation and benefits to be provided to the Executive by the Company as set forth in Section 6.

  

	2.30	Severance Payment is defined in Section 6.1. 

  

	2.31	Special Severance Benefits is defined in Section 10.1. 

  

	2.32	Special Severance Payment is defined in Section 10.1. 

  

	2.33	Termination Date means the effective date of a termination of the Employment by either the Company or the Executive. 

  

	2.34	Tribunal means a court or other body of competent jurisdiction that is deciding a matter relating to this Agreement. 

  

	2.35	Voting Stock means shares of capital stock of the Company the holders of which are entitled to vote for the election of directors, but excluding shares entitled to so vote
only upon the occurrence of a contingency unless that contingency shall have occurred. 

  

	3.	EMPLOYMENT. 

  

	3.1	Position. Subject to the terms and conditions hereinafter set forth, the Company hereby agrees to employ the Executive, and the Executive hereby agrees to serve the Company,
at the office and in the Position referred to on Exhibit A, Schedule 1. 

  

	 	(a)	The Executive will (i) devote his full time, attention, and energies to the business of the Company and will diligently and to the best of his ability perform all duties
incident to his Employment hereunder; (ii) use his best efforts to promote the interests and goodwill of the Company; (iii) perform such other duties commensurate with the Position as the Board may from time-to-time assign to
the Executive. 

  

	 	(b)	The Executive shall obtain the written consent of the Board prior to serving on corporate, civic or charitable boards or committees. This Section 3.1 shall not be construed as
preventing the Executive from serving on the corporate, civic or charitable boards or committees on which he currently serves, as listed on Exhibit C; provided that in no event shall any such service or business activity require the

  

			
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	 	    	provision of substantial services by the Executive to the operations or the affairs of such businesses or enterprises such that the provision thereof would interfere in any respect
with the performance of the Executive’s duties hereunder. 

  

	3.2	Office Space, Equipment, etc. The Company shall provide the Executive with office space, related facilities, equipment, and support personnel that are commensurate with the
Position. 

  

	3.3	Expense Reimbursement. 

  

	 	(a)	The Company will timely reimburse the Executive for reasonable business expenses incurred by the Executive in connection with the Employment in accordance with the Company’s
then-current policies. 

  

	 	(b)	Without limiting Section 0 (Good Reason includes relocation without consent), or this Section 3.3, if the Company determines that the Executive shall be relocated, then the
Company shall, in connection with such relocation, pay or reimburse the Executive for all reasonable moving expenses incurred by the Executive. 

  

	4.	COMPENSATION AND BENEFITS DURING EMPLOYMENT.    During the Employment, the Company shall provide compensation and benefits to the Executive as follows.

  

	4.1	Base Salary. The Company shall pay the Executive a base salary at a rate (before deductions, e.g., for employee-paid insurance premiums; deferrals, e.g., for flex-plan
contributions; and withholding) not less than the Base Salary rate set forth in Schedule 1. If the Company in its sole discretion increases the Executive’s base salary, then such increased salary shall be deemed the Base Salary for all purposes
hereunder. All salary payments shall be made in accordance with the normal payroll practices of the Company but in no less than equal semi-monthly installments, less withholding or deductions required by law or agreed to by the Executive.

  

	4.2	Annual Bonus. In addition to the Base Salary, the Executive will participate in the Company’s Bonus Plan. Executive will be paid his Bonus Potential Earned pursuant to
the terms of the Company Bonus Plan. A copy of Executive’s Bonus Plan is attached as Exhibit B. 

  

	4.3	Benefits. The Executive shall, upon satisfaction of legal or applicable third-party provider eligibility requirements with respect thereto, be entitled to participate in all
Benefits now or hereafter in effect or that are hereafter made available to the Company’s employees generally. The previous sentence shall not be construed as limiting the Company’s right, in its sole discretion, to add to, reduce, modify,
or eliminate any such Benefit. In addition, the Company shall maintain for the Executive any specific benefits set forth on Exhibit A, Schedule 1. 

  

			
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	4.4	Vacation; Holidays; Sick Leave. During the Employment, the Executive shall be entitled to sick leave, holidays, and an annual vacation (included within the Company’s
Paid Time Off Policy (“PTO”)), all in accordance with the regular policy of the Company for its Senior Executives (but in no event less than the minimum annual vacation set forth on Exhibit A, Schedule 1), during which time his
compensation and benefits shall be paid or provided in full. 

  

	4.5	Annual Compensation Review. At least annually during the Employment, the Company shall review with the Executive the Base Salary, the Bonus Potential, and all other forms of
compensation, which the Executive is then receiving (or, in the case of contingent compensation, for which the Executive is a participant in the applicable plan). The Base Salary and Bonus Potential may be increased (but not decreased) from time to
time as determined by the Company’s Board or the Compensation Committee thereof. Any increase in Base Salary shall not limit or reduce any other obligation of the Company to the Executive under this Agreement. The Base Salary and Bonus
Potential may not be decreased without the Executive’s express prior written consent. 

  

	4.6	Equity. Additional awards of securities under COMSYS IT Partners, Inc. 2004 Stock Incentive Plan competitive with industry standards for executives in like positions shall be
made subject to the discretion of the Compensation Committee of the Board. 

 5. TERMINATION OF EMPLOYMENT 
  

	5.1	Term of Agreement. The term of the Employment shall commence on the date hereof (the “Effective Date”) and continue to December 31, 2007 (the
“Original Term”) and renew automatically for successive one-year terms (each, a “Renewal Term”) unless notice of non-renewal is given by either party to the other party at least six months prior to the end of the
Original Term or any Renewal Term (the “Expiration Date”); provided that the Employment may also be terminated prior to such Expiration Date (i) by the Executive for any reason, including Good Reason, (ii) by the Company
with Cause, (iii) by the Company without Cause or (iv) by the Company upon the Disability or death of the Executive. In the event that (i) the Company does not renew the Agreement at the end of the Original Term or any Renewal Term,
(ii) the Company terminates Employment prior to the Expiration Date without Cause, (iii) the Executive terminates Employment prior to the Expiration Date for Good Reason, or (iv) the death or Disability of the Executive, the Executive
shall be entitled to receive Severance Benefits pursuant to Section 6 of this Agreement. 

  

	5.2	Termination in the Event of Disability. In the event of the incapacity of the Executive, by reason of mental or physical disability to perform his material duties hereunder,
for a period of 120 consecutive days or 180 non-consecutive days during any twelve (12) month period, as reasonably determined by the Board or as certified by a qualified physician selected by the Board (collectively,
“Disability”), the Company may terminate the Executive’s Employment effective upon written notice to the Executive. Prior to the termination of Executive’s Employment pursuant to this Section 5.2, during any period
that the Executive fails to perform his full-time duties with the Company as a result of incapacity due to 

  

			
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	    	physical or mental illness, he shall continue to receive his Base Salary, Bonus and other benefits provided hereunder, less the amount of any disability benefits received by the
Executive during such period under any disability plan or program sponsored by the Company. 

  

	5.3	Notice of Resignation; Waiver of Notice Period. If the Executive resigns from the Company, the Executive will give the Company at least four (4) weeks’ prior
notice of resignation. The Company may in its discretion waive any notice period stated in the Executive’s notice of resignation, in which case the Termination Date of the Employment will be the date of such waiver. 

  

	5.4	No Termination of Agreement Per Se. Termination of the Employment will not terminate this Agreement per se; to the extent that either party has any right under applicable law
to terminate this Agreement, any such termination of this Agreement shall be deemed solely to be a termination of the Employment without affecting any other right or obligation hereunder except as provided herein in connection with termination of
the Employment. 

  

	5.5	Transition of Email, Correspondence, etc. If the Employment is terminated by either the Executive or the Company, the Company will provide reasonable cooperation in
(i) permitting the Executive to copy or remove the Executive’s personal files (not including Company Confidential Information) from the Executive’s computer and office, and (ii) arranging for any personal emails or
phone messages to be forwarded to the Executive for a reasonable period of time after such termination (not to exceed sixty (60) days). 

  

	5.6	Payments Following Termination. 

 (a) If the
Employment is terminated for any reason, either by the Company or by the Executive’s resignation, then the Company shall pay the Executive the following amounts as part of the Company’s next regular payroll cycle but in no event later than
thirty (30) days after the Termination Date, to the extent that the same have not already been paid: 
 (i) any and all salary and
vacation pay earned through the Termination Date; and 
 (ii) any reimbursable expenses properly reported by the Executive. 
 (b) Unless the Executive resigns without Good Reason or the Employment is terminated for Cause, then the Company shall pay any applicable prorated Bonus
Potential Earned for the bonus period in which such termination occurs at the same time that payments are made to other participants in the Company Bonus Plan. 
 6. SEVERANCE BENEFITS UPON CERTAIN TERMINATIONS 
  

	6.1	Severance Payment. If (1) the Company does not renew the Agreement at the end of the Original Term or any Renewal Term, (2) the Employment is
terminated by the Company other than for Cause, (3) the Executive resigns for Good Reason, (4) the Executive is terminated due to a Disability pursuant to Section 5.2 of this Agreement or (5) the Executive
dies, then: 

  

			
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	 	(a)	the Company shall pay to the Executive, if living, an amount equal to one and a half (1.5) times the highest Base Salary in effect (i) during the 12 months
immediately prior to the Termination Date or (ii) during the Employment, if the Employment has lasted less than 12 months; 

  

	 	(b)	in addition to the severance provided in Section 6.1(a), the Executive shall also receive one (1.0) times (1) the average Bonus Potential Earned by the Executive for
the two (2) years ending prior to the Termination Date (the payments provided in subsections (a) and (b) are collectively referred to as the “Severance Payment”); 

  

	 	(c)	if the Employment is terminated (i) by the Company in the event of Executive’s Disability, (ii) upon the Executive’s death, or (iii) upon a Change of
Control, the Severance Payment shall be paid in cash or immediately-available funds, in lump sum within 10 business days following the execution by Executive of the release described in Section 6.1(f); provided, however, if the
Employment is terminated by the Company in the event of Executive’s Disability, any Severance Payment owed to the Executive under this Section 6.1 shall be offset by any amount paid to the Executive pursuant to any disability insurance
policy for which the Company has paid the premiums; 

  

	 	(d)	if the Employment is terminated (i) by the Company without Cause or (ii) by the Executive for Good Reason, the Executive shall be entitled to receive the Severance Payment
in twenty-four (24) equal monthly installments during the two-year period following the Termination Date; 

  

	 	(e)	if the Executive is not living, then the Severance Payment shall be paid to the Executive’s heir(s), assign(s), successor(s)-in-interest, or legal representative(s), in the
same manner as specified in subparagraph (c); and 

  

	 	(f)	as a condition to making any Severance Payment, the Company will require the Executive or his legal representative(s) to first execute a release which contains a full release of all
claims against the Company and certain other provisions, including but not limited to a reaffirmation of the restrictive covenants in Sections 9.1 and 9.2. 

  

	6.2	Continuation of Insurance and Related Benefits. If (1) the Company does not renew the Agreement at the end of the Original Term or any Renewal Term,
(2) the Employment is terminated by the Company other than for Cause, (3) the Executive resigns for Good Reason, (4) the Executive is terminated due to a Disability pursuant to Section 5.2 of this Agreement
or (5) the Executive dies, then: 

  

	 	(a)	The Company shall, to the greatest extent permitted by applicable law and the terms and conditions of the applicable insurance or benefit plan, maintain the Executive (if living)
and the Executive’s dependents as participants in the life, health, dental, accident, disability insurance, and similar benefit plans offered to (and on the same terms as) other Senior Executives until the 24-month anniversary of the
Termination Date. 

  

			
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	 	(b)	To the extent that applicable law or the terms and conditions of the applicable insurance or benefit plan do not permit the Company to comply with subparagraph (a), the Company
shall reimburse the Executive (if living) and the Executive’s dependents, for all expenses incurred by any of them in maintaining the same levels of coverage under COBRA, for the same period as provided in subparagraph (a) or as permitted
by law, but solely to the extent that such expenses exceed the deduction or amount that would have been required to be paid by the Executive for such coverage if the Employment had not been terminated. 

  

	 	(c)	If Employment is terminated by the Executive’s death, or if the Executive dies before the expiration of the Company’s obligation under this Section 6.2, then the
Company shall continue to maintain coverage for the Executive’s dependents under all insurance plans referred to in this Section 6.2 for which such dependents had coverage as of the date of the Executive’s death, at the same coverage
levels and for the same period of time as would have been required had the Executive not died. 

  

	 	(d)	Following the expiration of such coverage period by the Company, the Executive (if living) and the Executive’s dependents will be entitled to elect to maintain coverage under
such insurance- and benefit plans in accordance with COBRA to the fullest extent available under law. 

  

	6.3	D&O Insurance and Indemnification. Through at least the sixth anniversary of the Termination Date, the Company shall maintain coverage for the Executive as a named
insured on all directors’ and officers’ insurance maintained by the Company for the benefit of its directors and officers on at least the same basis as all other covered individuals and provide the Executive with at least the same
corporate indemnification as it provides to other Senior Executives. All such directors’ and officers’ insurance policies will provide prior acts coverage from September 30, 2004. 

  

	6.4	No Other Severance Benefits. Other than as described above in Sections 6.1 and 6.2 and as described below in Sections 10 and 11, the Executive shall not be entitled to any
payment, benefit, damages, award or compensation in connection with termination of the Employment, by either the Company or the Executive, except as may be expressly provided in another written agreement, if any, approved by the Board and
executed by the Executive and by the Chief Executive Officer. Neither the Executive nor the Company is obligated to enter into any such other written agreement. 

  

	6.5	No Waiver of ERISA-Related Rights. Nothing in this Agreement shall be construed to be a waiver by the Executive of any benefits accrued for or due to the Executive under any
employee benefit plan (as such term is defined in the Employees’ Retirement Income Security Act of 1974, as amended) maintained by the Company, if any, except that the Executive shall not be entitled to any severance benefits pursuant to any
severance plan or program of the Company other than as provided herein. 

  

	6.6	Mitigation Not Required. The Executive shall not be required to mitigate the amount of any payment or benefit which is to be paid or provided by the Company pursuant to this
Section 6. 

  

			
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	    	Any remuneration received by the Executive from a third party following termination of the Employment shall not apply to reduce the Company’s obligations to make payments or
provide benefits hereunder. 

  

	7.	TAX WITHHOLDING. Notwithstanding any other provision of this Agreement, the Company may withhold from amounts payable under this Agreement, or under any other
agreement between the Executive and the Company, all federal, state, local and foreign taxes that are required to be withheld by applicable laws or regulations. 

  

	8.	CONFIDENTIAL INFORMATION 

  

	8.1	Executive acknowledges that in the course of his employment by the Company, the Company has provided him and will continue to provide him, prior to any termination hereof, with
certain Confidential Information and knowledge concerning the operations of the Company Group which the Company desires to protect. This Confidential Information shall include, but is not limited to: 

 (a) terms and conditions of and the identity of the parties to the Company Group’s agreements with its clients and suppliers, including but not
limited to price information; 
 (b) management systems, policies or procedures, including the contents of related forms and manuals;

 (c) professional advice rendered or taken by the Company Group; 
 (d) the Company Group’s own financial data, business and management information, strategies and plans and internal practices and procedures,
including but not limited to internal financial records, statements and information, cost reports or other financial information; 
 (e)
proprietary software, systems and technology-related methodologies of the Company Group and their clients; 
 (f) salary, bonus and other
personnel information relating to the Company Group’s personnel; 
 (g) the Company Group’s business and management development
plans, including but not limited to proposed or actual plans regarding acquisitions (including the identity of any acquisition contacts), divestitures, asset sales, and mergers; 
 (h) decisions and deliberations of the Company Group’s committees or boards; and 
 (i) litigation, disputes, or investigations to which the Company Group may be party and legal advice provided to Executive on behalf of the Company Group
in the course of Executive’s employment. 
  

			
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	8.2	Executive understands that such information is confidential, and he agrees not to reveal such information to anyone outside the Company so long as the confidential or secret nature
of such information shall continue. Executive further agrees that he will at no time use such information in competing with all or any portion of the Company Group. At such time as Executive shall cease to be employed by the Company, he will
surrender to the Company all papers, documents, writing and other property produced by him or coming into his possession by or through his employment and relating to the information referred to in this paragraph, and the Executive agrees that all
such materials will at all times remain the property of the Company. 

  

	9.	NONCOMPETITION AND NONSOLICITATION COVENANT 

  

	9.1	Noncompetition. In return for the consideration stated in this Agreement, including the receipt of Confidential Information by Executive and the promise of the Company to
provide the Executive with Confidential Information, the Executive agrees that, during his employment and for two (2) years after the termination of employment, Executive shall not directly or indirectly possess an ownership interest in,
manage, control, participate in, consult with, or render services for any other person, firm, association or corporation, engaged in the business of the Company without the prior written consent of the Company, in the United States or any other
geographic area where the Company is conducting business, because such activity would unavoidably and unfairly compromise the Company’s legitimate, protectible business interests in its Confidential Information, clients, employees, suppliers,
and business relationships. 

  

	9.2	Executive agrees that he shall not, either directly or indirectly, during Executive’s employment and for two (2) years after termination of employment, in any capacity
whatsoever (either as an employee, officer, director, stockholder, proprietor, partner joint venturer, consultant or otherwise) (a) solicit, contact, call upon, communicate with, or attempt to communicate with any of the Company clients or
potential clients for the purpose of providing services to such client, or (b) sell any services to any client or potential client of the Company. 

  

	9.3	Nonsolicitation. Executive agrees that he shall not directly or indirectly during Executive’s employment and for two (2) years after termination of employment,
through any other entity, either alone or in conjunction with any other person or entity employ, solicit, induce, or recruit, any person employed by the Company at any time within the one (1) year period immediately preceding such employment,
solicitation, inducement or recruitment. 

  

	9.4	For the purposes of this Agreement, “potential client” shall be defined as those entities for which Executive has had access to Confidential Information during his
Employment, and “client” shall be defined as those entities with which the Company has conducted any business during the twelve (12) month period prior to termination of the employment relationship. For the purposes of this Agreement,
“services” shall mean activities performed by the Company at any time within the one (1) year period preceding termination of Executive’s Employment. 

  

			
	 EXECUTIVE EMPLOYMENT AGREEMENT
	 	PAGE 12

	9.5	Executive agrees that it is his intention that any restriction contained in this section that is determined to be unenforceable be modified by any court having jurisdiction to be
reasonable and enforceable, and, as modified, to be fully enforced. 

  

	9.6	The Company will not unreasonably withhold its consent under Section 9.1 to the Executive’s employment, after the Employment, by a corporation that competes with Company,
but only if, before starting the new employment, the Executive provides the Company with a document reasonably satisfactory to the Company, signed by both the Executive and such corporation, containing (i) a written description of the
Executive’s duties in the new job, and (ii) specific assurances that in the new job the Executive will neither use nor disclose the Company’s Confidential Information. 

  

	9.7	Executive acknowledges and agrees that the restrictive covenants contained herein are reasonable in time, territory and scope, and in all other respects. If a Tribunal determines
that any of the restrictions set forth in this Section 9 is unreasonably broad or otherwise unenforceable under applicable law, then (i) such determination shall be binding only within the geographical jurisdiction of the Tribunal,
and (ii) the restriction will not be terminated or rendered unenforceable, but instead will be reformed (solely for enforcement within the geographic jurisdiction of the Tribunal) to the minimum extent required to render it enforceable.

  

	10.	CHANGE OF CONTROL 

  

	10.1	Special Severance Benefits. 

  

	 	(a)	If, during the specific time periods listed in subparagraph (b), the Employment is terminated by any of the specific events listed there, then the Executive will be entitled to the
following benefits (“Special Severance Benefits”): 

  

	 	(1)	all benefits that would be provided under this Agreement in the event of a termination of the Employment without Cause by the Company, with the Severance Payment paid as provided in
subparagraph (c) below, instead of as provided in Section 6 of this Agreement; and 

  

	 	(2)	a special, additional severance payment (“Special Severance Payment”) equal to one-half (.5) times the highest Base Salary in effect (i) during the 12
months immediately prior to the Termination Date or (ii) during the Employment, if the Employment has lasted less than 12 months. 

  

	 	(b)	The specific termination events and time periods in which the Executive will be entitled to the Special Severance Benefits are as follows: 

  

	 	(1)	the Executive’s Employment is terminated by the Company, for any reason other than Cause, at any time during the period beginning on the Change of Control Date and ending at 5
pm Houston time on the date two (2) years after the Change of Control Date; or 

  

			
	 EXECUTIVE EMPLOYMENT AGREEMENT
	 	PAGE 13

	 	(2)	the Executive Resigns for Good Reason at any time during the period beginning on the Change of Control Date and ending at 5 pm Houston time on the date two (2) years after the
Change of Control Date. 

  

	 	(c)	The Special Severance Payment and the Severance Payment required by this Agreement shall be made to the Executive, in cash or immediately-available funds, in a lump sum within 10
business days following the execution by Executive of a release. 

  

	 	(d)	Payments pursuant to this Agreement shall not be deemed to constitute continued employment beyond the Termination Date. 

  

	 	(e)	As a condition to providing the Executive with the Special Severance Benefits, the Company will require the Executive to first execute a release. 

  

	10.2	A Change of Control shall be deemed to have occurred if any of the following events occurs after the Effective Date: 

  

	 	(a)	The consummation of a Merger Transaction if (a) the Company is not the surviving entity and (b) as a result of the Merger Transaction, 50 percent or less of the combined
voting power of the then-outstanding securities of the other party to the Merger Transaction, immediately after the date of Change of Control, are held in the aggregate by the holders of Voting Stock immediately prior to the date of Change of
Control. 

  

	 	(b)	The consummation of a Sale Transaction. 

  

	 	(c)	Any Person, other than the Permitted Holders, becomes the Beneficial Owner, directly or indirectly, of more than 50 percent of the outstanding Voting Stock.

  

	 	(d)	The stockholders of the Company approve the dissolution of the Company. 

  

	 	(e)	During any period of twenty-four (24) consecutive months, the replacement of a majority of the members of the Board who were members of the Board at the beginning of such
period, and such new members shall not have been (i) nominated or appointed to the Board pursuant to the terms of an agreement with the Company, (ii) nominated for election or selected as a director by a duly constituted nominating
committee (or a subcommittee thereof) of the Board or (iii) approved by a vote of at least a majority of the members of the Board then still in office who either were members of the Board at the beginning of such period or whose election as a
member of the Board was so previously approved. 

  

	11.	CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.    Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any
payment or distribution by the Company to or for the benefit of the Executive upon a Change of Control, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (a
“Payment”), would be subject to the excise tax 

  

			
	 EXECUTIVE EMPLOYMENT AGREEMENT
	 	PAGE 14

	    	imposed by Section 4999 of the United States Internal Revenue Code or any interest or penalties with respect to such excise tax (such excise tax, together with any such
interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after
payment by the Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including any Excise Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise
Tax imposed upon the Payments. Subject to the provisions of this Section, all determinations required to be made hereunder, including whether a Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be made by the Accounting
Firm (at the sole expense of the Company), which shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the date of termination of the Executive’s employment under this Agreement, if
applicable, or such earlier time as is requested by the Company. If the Accounting Firm determines that no Excise Tax is payable by the Executive, the Accounting Firm shall furnish the Executive with an opinion that he has substantial authority not
to report any Excise Tax on his federal income tax return. Any determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code, it is
possible that Gross-Up Payments may be miscalculated and may not cover the full amount of Excise Taxes due (an “Underpayment”) consistent with the calculations required to be made hereunder. If the Company exhausts its remedies
pursuant hereto and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or
for the benefit of the Executive. 

  

	12.	EMPLOYEE HANDBOOKS, ETC.    From time to time, the Company may, in its discretion, establish, maintain and distribute employee manuals or handbooks or
personnel policy manuals, and officers or other representatives of the Company may make written or oral statements relating to personnel policies and procedures. The Executive will adhere to and follow all rules, regulations, and policies of the
Company set forth in such manuals, handbooks, or statements as they now exist or may later be amended or modified. Such manuals, handbooks and statements do not constitute a part of this Agreement nor a separate contract, and shall not be deemed as
amending this Agreement or as creating any binding obligation on the part of the Company, but are intended only for general guidance. 

  

	13.	OTHER PROVISIONS 

  

	13.1	This Agreement shall inure to the benefit of and be binding upon (i) the Company and its successors and assigns and (ii) the Executive and the
Executive’s heirs and legal representatives, except that the Executive’s duties and responsibilities under this Agreement are of a personal nature and will not be assignable or delegable in whole or in part without the Company’s prior
written consent. 

  

			
	 EXECUTIVE EMPLOYMENT AGREEMENT
	 	PAGE 15

	13.2	All notices and statements with respect to this Agreement must be in writing and shall be delivered by certified mail return receipt requested; hand delivery with written
acknowledgment of receipt; or overnight courier with delivery-tracking capability. Notices to the Company shall be addressed to the Company’s president or chief executive officer at the Company’s then-current headquarters offices. Notices
to the Executive may be delivered to the Executive in person or to the Executive’s then-current home address as indicated on the Executive’s pay stubs or, if no address is so indicated, as set forth in the Company’s payroll records. A
party may change its address for notice by the giving of notice thereof in the manner hereinabove provided. 

  

	13.3	If the Executive Resigns for Good Reason because of (i) the Company’s failure to pay the Executive on a timely basis the amounts to which he is entitled under this
Agreement or (ii) any other breach of this Agreement by the Company, then the Company shall pay all amounts and damages to which the Executive may be entitled as a result of such failure or breach, including interest thereon at the
maximum non-usurious rate and all reasonable legal fees and expenses and other costs incurred by the Executive to enforce the Executive’s rights hereunder and the Executive will be relieved of all obligations under Section 9
(noncompetition). 

  

	13.4	This Agreement sets forth the entire present agreement of the parties concerning the subjects covered herein except for any equity incentive award agreement between the Company and
the Executive. There are no promises, understandings, representations, or warranties of any kind concerning those subjects except as expressly set forth herein or therein. 

  

	13.5	Any modification of this Agreement must be in writing and signed by all parties; any attempt to modify this Agreement, orally or in writing, not executed by all parties will be
void. 

  

	13.6	If any provision of this Agreement, or its application to anyone or under any circumstances, is adjudicated to be invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability will not affect any other provision or application of this Agreement which can be given effect without the invalid or unenforceable provision or application and will not invalidate or render unenforceable such provision or
application in any other jurisdiction. 

  

	13.7	This Agreement will be governed and interpreted under the laws of the State of Texas. 

  

	13.8	No failure on the part of any party to enforce any provisions of this Agreement will act as a waiver of the right to enforce that provision. 

  

	13.9	Termination of the Employment, with or without Cause, will not affect the continued enforceability of this Agreement. 

  

	13.10	Section headings are for convenience only and shall not define or limit the provisions of this Agreement. 

  

			
	 EXECUTIVE EMPLOYMENT AGREEMENT
	 	PAGE 16

	13.11	This Agreement may be executed in several counterparts, each of which is an original. It shall not be necessary in making proof of this Agreement or any counterpart hereof to
produce or account for any of the other counterparts. A copy of this Agreement manually signed by one party and transmitted to the other party by FAX or in image form via email shall be deemed to have been executed and delivered by the signing party
as though an original. A photocopy of this Agreement shall be effective as an original for all purposes. 

 By signing this Agreement, the
Executive acknowledges that the Executive (1) has read and understood the entire Agreement; (2) has received a copy of it; (3) has had the opportunity to ask questions and consult counsel or other advisors about
its terms; and (4) agrees to be bound by it. Executed and effective as of the Effective Date. 
  

			
	         COMSYS IT Partners, Inc.,
  
 By: /S/ MICHAEL T. WILLIS
 Name: Michael T. Willis
 Title: Chief Executive Officer and President
	 	 EXECUTIVE
  
 /S/ KEN R. BRAMLETT, JR.
 Ken R. Bramlett, Jr.
  

  

			
	 EXECUTIVE EMPLOYMENT AGREEMENT
	 	PAGE 17

 Exhibit A 
  

			
	 	 	 Schedule 1

	Office	 	Charlotte, North Carolina
		
	Position	 	Senior Vice President, General Counsel and Secretary
		
	Base Salary	 	$270,000 per year
		
	Bonus Potential	 	$135,000
		
	Minimum PTO	 	29 business days (which includes 7 paid holidays designated by COMSYS)
		
	Specific benefits	 	$1,000 per month car allowance and reimbursement of club dues consistent with policy for similarly situated employees

  

			
	 EXECUTIVE EMPLOYMENT AGREEMENT
	 	PAGE 18

 Exhibit B 
 Bonus Plan for Ken R. Bramlett, Jr. 
 For Fiscal Year Ending December 31, 2006

 Executive is eligible to receive an annual incentive bonus equal to 50% of Base Salary if 100% of the Company EBITDA Plan (as defined below) is
achieved as set forth in this document (the “Bonus Potential”). No incentive will be provided unless a minimum of 90% of the EBITDA Plan is achieved. The incentive bonus potential increases if the EBITDA Plan is overachieved,
according to the following schedule: 
  

			
	 90% of EBITDA Plan achieved
	 	50% of Bonus Potential
		
	 95% of EBITDA Plan achieved
	 	 75% of Bonus Potential

		
	 100% of EBITDA Plan achieved
	 	 100% of Bonus Potential

		
	 105% of EBITDA Plan achieved
	 	 125% of Bonus Potential

		
	 110% of EBITDA Plan achieved
	 	 150% of Bonus Potential

		
	 115% of EBITDA Plan achieved
	 	 175% of Bonus Potential

		
	 120% of EBITDA Plan achieved
	 	 200% of Bonus Potential

 Each additional 5% incremental increase over 120% of EBITDA Plan will result in an additional 5% incremental
increase in Bonus Potential. For example, 125% of EBITDA achieved will result in 205% of Bonus Potential. 
 The 2006 EBITDA Plan amount shall be as
determined by the Board. 
 Executive must attain the respective threshold before the percentage of Bonus Potential increases. For example, achievement of
92% of EBITDA Plan will earn 50% of the Bonus Potential. There will be no proration between targeted achievement levels. 
 Annual incentive bonuses will be
paid by March 31 of the calendar year following the Measuring Period (January 1, 2006 to December 31, 2006). 
  

			
	 EXECUTIVE EMPLOYMENT AGREEMENT
	 	PAGE 19

 Exhibit C 
 Corporate, Civic, and Charitable Board Positions Held by Executive 
 Board Member, World Acceptance
Corporation 
 Board Member, Raptor Networks Technology, Inc. 
 Board Member, Salsarita’s, Inc. 
 Executive Committee, Charlotte Wine & Food Weekend 

 

			
	 EXECUTIVE EMPLOYMENT AGREEMENT
	 	PAGE 20Capital Plan

 Exhibit 4.1 
 

 
 CAPITAL PLAN OF THE 
 FEDERAL HOME LOAN BANK OF ATLANTA 
 As Last Amended by the Board of Directors on

 December 8, 2005 
 Approved by the Finance Board on 
 January 25, 2006 

					
	 I.
	  	DEFINITIONS	  	1
			
	II.	  	CAPITAL STOCK	  	5
			
		  	A. CHARACTERISTICS OF CAPITAL STOCK	  	5
			
		  	B. INTEREST IN RETAINED EARNINGS	  	5
			
	 III.
	  	ISSUANCE OF CAPITAL STOCK	  	5
			
		  	A. SUBJECT TO PLAN	  	5
			
		  	B. NEW MEMBERS	  	5
			
		  	C. FORMER MEMBERS AND NONMEMBER STOCKHOLDERS	  	5
			
	 IV.
	  	MINIMUM STOCK REQUIREMENT	  	6
			
		  	A. CALCULATION OF MINIMUM STOCK REQUIREMENT	  	6
			
		  	B. AUTHORIZED RANGES	  	7
			
		  	 1. Authorized Ranges for Membership Stock Requirement
	  	7
			
		  	 2. Authorized Ranges for Activity-Based Stock Requirement
	  	7
			
		  	 3. No Adjustment Outside Authorized Ranges Without Plan Amendment
	  	7
			
		  	C. ADJUSTMENTS TO MINIMUM STOCK REQUIREMENTS	  	7
			
		  	 1. Notice of Change in Minimum Stock Investment Requirement
	  	7
			
		  	 2. Adjustment to Membership Stock Requirement
	  	8
			
		  	 3. Adjustment to Activity-Based Stock Requirement
	  	9
			
		  	 4. Application of Change Within Authorized Ranges
	  	10
			
	 V.
	  	OWNERSHIP AND TRANSFER OF CAPITAL STOCK	  	10
			
	 VI.
	  	VOTING RIGHTS	  	11
			
	 VII.
	  	DIVIDENDS	  	11
			
		  	A. DECLARATION OF DIVIDENDS	  	11
			
		  	B. NO PREFERENCE	  	11
			
		  	C. STOCK HELD BY WITHDRAWING OR FORMER MEMBER	  	11
			
	 VIII.
	  	LIQUIDATION, MERGER OR CONSOLIDATION	  	11
			
		  	A. LIQUIDATION	  	11
			
		  	B. MERGER OR CONSOLIDATION	  	12
			
		  	C. NO LIMITATION ON FINANCE BOARD’S AUTHORITY	  	12
			
	 IX.
	  	REDEMPTION AND REPURCHASE OF CAPITAL STOCK (CONTINUING MEMBERSHIP)	  	12
			
		  	A. REDEMPTION UPON APPLICATION BY THE MEMBER	  	12
			
		  	 1. Conditions Applicable to Redemption
	  	12
			
		  	 2. Cancellation of Redemption Notice
	  	12
			
		  	 3. Redemption
	  	13
			
		  	B. REPURCHASE UPON INITIATION BY THE BANK	  	13
			
		  	C. CONTINUED BENEFITS OF OWNERSHIP PRIOR TO REDEMPTION OR
REPURCHASE	  	13

  

					
	As of December 8, 2005	  	i	  	

					
	 X.
	  	REDEMPTION AND REPURCHASE OF CAPITAL STOCK (WITHDRAWAL OR TERMINATION OF MEMBERSHIP)	  	13
			
		  	A. VOLUNTARY WITHDRAWAL	  	13
			
		  	 1. Notice of Intention to Withdraw from Membership
	  	13
			
		  	 2. Termination of Membership
	  	13
			
		  	 3. Continued Benefits of Membership Prior to Termination
	  	14
			
		  	 4. Cancellation of Notice of Withdrawal
	  	14
			
		  	 5. Circumstances Requiring Finance Board Certification for Withdrawal
	  	14
			
		  	B. TERMINATION OF MEMBERSHIP AS A RESULT OF A,
CONSOLIDATION OR RELOCATION	  	14
			
		  	 1. Consolidation of Members
	  	14
			
		  	 2. Consolidation into Nonmember
	  	15
			
		  	 3. Relocation of Member
	  	15
			
		  	C. OTHER INVOLUNTARY TERMINATION OF MEMBERSHIP	  	16
			
		  	D. REDEMPTION	  	17
			
	 XI.
	  	LIMITATIONS ON REDEMPTION AND REPURCHASE OF CAPITAL STOCK	  	17
			
		  	 A. LIMITATIONS DUE TO CHARGES AGAINST CAPITAL
STOCK
	  	17
			
		  	 B. LIMITATIONS DUE TO FAILURE TO SATISFY
MINIMUM REQUIREMENTS
	  	17
			
		  	 C. OTHER RESTRICTIONS ON REDEMPTION
	  	17
			
		  	 D. OTHER RESTRICTIONS ON REPURCHASE
	  	17
			
		  	 E. NOTICE OF SUSPENSION OF REPURCHASES OR
REDEMPTIONS
	  	18
			
		  	 F. NO PRIORITY FOR NOTICES OF REDEMPTION
IN THE EVENT OF LIQUIDATION
	  	18
			
	 XII.
	  	DISPOSITION OF CLAIMS	  	18
			
		  	 A. IN GENERAL
	  	18
			
		  	 B. LIEN ON CAPITAL STOCK
	  	18
			
		  	 C. PREPAYMENT FEES
	  	18
			
	 XIII.
	  	AMENDMENT TO THE CAPITAL PLAN	  	19

  

					
	As of December 8, 2005	  	ii	  	

 CAPITAL PLAN OF THE 
 FEDERAL HOME LOAN BANK OF ATLANTA 
  

	I.	Definitions 

 For the purposes of this Plan,
all capitalized terms used but not defined elsewhere have the following meanings: 
 Acquired Member Assets (“AMA”) means
assets acquired by the Bank from a Member pursuant to Part 955 of the Regulations. 
 Acquired Member Asset Stock Requirement means the
amount of Subclass B2 Capital Stock (rounded up to the nearest whole share) that a Member must own for as long as the Bank owns any Acquired Member Asset sold by the Member to the Bank. 
 Acquired Member Asset Stock Retention Requirement means the amount of Subclass B2 Capital Stock (rounded up to the nearest whole share) that a
Former Member or Nonmember Stockholder must own for as long as the Bank owns any Acquired Member Asset sold by the Former Member to the Bank. The Acquired Member Asset Stock Retention Requirement for a Former Member or Nonmember Stockholder shall be
calculated according to the same formula used to calculate the Acquired Member Asset Stock Requirement for a Member. 
 Act means the
Federal Home Loan Bank Act, as amended from time to time. 
 Activity-Based Stock Requirement means the amount of Subclass B2 Capital
Stock (rounded up to the nearest whole share) that a Member must own for as long as a particular transaction between the Bank and the Member remains outstanding. 
 Activity-Based Stock Retention Requirement means the amount of Subclass B2 Capital Stock (rounded up to the nearest whole share) that a Former Member or Nonmember Stockholder must own for as long as a
particular transaction between the Bank and the Former Member remains outstanding. The Activity-Based Stock Retention Requirement for a Former Member or Nonmember Stockholder shall be calculated according to the same formula used to calculate the
Activity-Based Stock Requirement for a Member. 
 Advance or Advances means the principal balance of all loans from the Bank to a
Member or Former Member that are outstanding from time to time and that are (1) provided pursuant to a written agreement, (2) supported by a note or other written evidence of the borrower’s obligation, and (3) fully secured by
collateral in accordance with the Act and the Regulations, including, without limitation, all such loans that are outstanding on the Conversion Date. 
 Advances Stock Requirement means the amount of Subclass B2 Capital Stock (rounded up to the nearest whole share) that a Member must own for as long as Advances made by the Bank to the Member remain outstanding.

 Advances Stock Retention Requirement means the amount of Subclass B2 Capital Stock (rounded up to the nearest whole share) that a
Former Member or Nonmember Stockholder must own for as long as Advances made by the Bank to the Former Member remain outstanding. The Advances Stock Retention Requirement for a Former Member or Nonmember Stockholder shall be calculated according to
the same formula used to calculate the Advances Stock Requirement for a Member. 
  

					
	As of December 8, 2005	  	1	  	

 Bank means the Federal Home Loan Bank of Atlanta. 
 Board of Directors means the board of directors of the Bank. 
 Business Day means any day on which the Bank is open to conduct business. 
 Capital Stock means
capital stock that has the characteristics of class B stock as described in the Act and the Regulations. 
 Consolidation means a
merger, a consolidation, a sale of all, or substantially all, of the assets and liabilities of an entity to another entity, or other similar transaction. 
 Conversion Date means December 17, 2004. 
 Daily Investment Account means a Member’s,
Former Member’s or Nonmember Stockholder’s demand deposit transaction account established at the Bank. 
 Excess Stock (or
“Excess Shares”) means the amount of each subclass of Capital Stock held by a Member, Former Member or Nonmember Stockholder that exceeds the amount of Capital Stock for that subclass that the Member, Former Member or Nonmember Stockholder
is required to own in accordance with the provisions of the Plan. 
 Excess Stock Threshold Amount means the amount, as determined by
the Bank from time to time, of Excess Shares of Subclass B2 Capital Stock that generally shall trigger the Repurchase by the Bank of some or all of such Excess Shares of Subclass B2 Capital Stock owned by the Member, Former Member or
Nonmember Stockholder. 
 Exchange means the exchange on the Bank’s books of each share of Bank stock outstanding prior to the
exchange on the Conversion Date for one share of Capital Stock, upon which each share of Bank stock shall be retired. 
 Finance Board
means the Federal Housing Finance Board or any successor agency. 
 Former Member means an institution, other than a Member or
Nonmember Stockholder, that owns Capital Stock, and includes without limitation (1) an institution that has withdrawn voluntarily from Membership, (2) an institution whose Membership has been terminated and ceased to exist as a result of
Consolidation and the Capital Stock of which is now owned by a Nonmember Stockholder, (3) an institution whose Membership has been terminated as a result of Relocation outside of the Bank’s district, and (4) an institution whose
Membership has been terminated involuntarily by the Board of Directors. 
 GAAP means generally accepted accounting principles in the
United States. 
 Indebtedness means all indebtedness of a Member, Former Member or Nonmember Stockholder to the Bank that is
outstanding from time to time, including, without limitation, all Advances and all other obligations and liabilities of the Member, Former Member or Nonmember Stockholder to the Bank. 
 Issue or Issuance means the issuance of Capital Stock to a Member, Former Member or Nonmember Stockholder by the Bank (1) in the Exchange or
(2) in a sale or (3) as a dividend. 
 Member means any institution, other than a Former Member, that has been approved for
Membership in the Bank and has purchased and owns the required amount of Capital Stock. 
  

					
	As of December 8, 2005	  	2	  	

 Membership means membership in the Bank. 
 Membership Stock Requirement means the amount of Subclass B1 Capital Stock (rounded up to the nearest whole share) that a Member must own in order
to become and remain a Member. 
 Membership Stock Retention Requirement means the amount of Subclass B1 Capital Stock (rounded up to
the nearest whole share) that a Former Member or Nonmember Stockholder must own until the expiration of the Redemption Period applicable to the Capital Stock. The Membership Stock Retention Requirement for a Former Member or Nonmember Stockholder
shall be the amount of Capital Stock that comprised the Former Member’s Membership Stock Requirement on the date on which its Membership was terminated, unless adjusted in accordance with the provisions of Section IV.C.2.c. of this Plan.

 Minimum Regulatory Capital Requirement means each and all of the following: (1) the Regulatory Leverage Capital Requirement,
(2) the Regulatory Risk-Based Capital Requirement, and (3) the Regulatory Total Capital Requirement. 
 Minimum Stock
Requirement for a Member means the sum of (1) the Member’s Membership Stock Requirement, and (2) the Member’s Activity-Based Stock Requirement. 
 Minimum Stock Retention Requirement for a Former Member or Nonmember Stockholder means the sum of (1) the Former Member’s or Nonmember Stockholder’s Membership Stock Retention Requirement, and
(2) the Former Member’s or Nonmember Stockholder’s Activity-Based Stock Retention Requirement. 
 Nonmember Stockholder
means an institution, other than a Member or a Former Member, that owns Capital Stock, and has acquired a Member or Former Member in connection with a Consolidation. 
 Notice to Members (or “Notice”) means any written notice from the Bank to Members, Former Members or Nonmember Stockholders regarding any element of the Plan, and also includes any electronic writing
related to the Plan, including electronic mail. 
 Opt-Out Date means November 17, 2004. 
 Permanent Capital means the sum of (1) the amount of the retained earnings of the Bank, determined in accordance with GAAP, and (2) the
amounts paid-in for Capital Stock. 
 Plan means this capital plan as adopted by the Board of Directors and approved by the Finance
Board. 
 Principal Place of Business means, for an institution, the state in which the institution maintains its home office
established as such in conformity with the laws under which the institution is organized, or, if such institution has designated another state as such institution’s principal place of business in accordance with Section 925.18(c) of the
Regulations, such other state. 
 Record Date means December 31 of the prior calendar year. 
 Redeem or Redemption means the acquisition and retirement by the Bank of Capital Stock and payment at par value to a Member, Former Member or
Nonmember Stockholder following the expiration of the Redemption Period. 
  

					
	As of December 8, 2005	  	3	  	

 Redemption Period for Capital Stock means the five-year period following (1) the Bank’s
receipt of a Member’s written Redemption notice to the Bank provided in accordance with the provisions of Section IX. of the Plan, (2) the Bank’s receipt of a Member’s written notice to the Bank of the Member’s intention to
withdraw from Membership provided in accordance with the provisions of Section X. of the Plan, or the date of acquisition or receipt by the Member of any additional shares of Capital Stock after the Bank’s receipt of such notice, (3) a
Member’s termination from Membership as a result of a Consolidation into a nonmember, or the date of acquisition or receipt by the successor to the Member of any additional shares of Capital Stock after such Member’s termination from
Membership, (4) a Member’s termination from Membership as a result of Relocation, or the date of acquisition or receipt by such Member of any additional shares of Capital Stock after the termination of Membership, or (5) a
Member’s involuntary termination from its Membership, or the date of acquisition or receipt by such Member of any additional shares of Capital Stock after the termination of its Membership. 
 Regulations means the regulations of the Finance Board, as amended from time to time. 
 Regulatory Leverage Capital Requirement means the ratio of Total Capital to total assets that the Bank is required to maintain in accordance with
the Regulations. 
 Regulatory Risk-Based Capital Requirement means the amount of Permanent Capital that the Bank is required to
maintain in accordance with the Regulations. 
 Regulatory Total Capital Requirement means the amount of Total Capital that the Bank is
required to maintain in accordance with the Regulations. 
 Relocation means an institution’s Principal Place of Business is no
longer located or designated in a state within the Bank’s district. 
 Repurchase means the acquisition and retirement by the Bank
of Excess Stock and payment at par value to a Member, Former Member or Nonmember Stockholder without regard to the expiration of any Redemption Period. 
 Targeted Debt/Equity Investment means a debt or equity investment that meets the criteria set forth in Section 940.3(e) of the Regulations. 
 Targeted Debt/Equity Investment Stock Requirement means the amount of Subclass B2 Capital Stock (rounded up to the nearest whole share) that a
Member must own for as long as the Bank owns any Targeted Debt/Equity Investment sold by the Member to the Bank. 
 Targeted Debt/Equity
Investment Stock Retention Requirement means the amount of Subclass B2 Capital Stock (rounded up to the nearest whole share) that a Former Member or Nonmember Stockholder must own for as long as the Bank owns any Targeted Debt/Equity Investment
sold by the Former Member to the Bank. 
 Total Capital means the sum of (1) Permanent Capital; (2) the amount of any general
allowance for losses reserved on the books of the Bank; and (3) the value of other instruments identified in the Plan that the Finance Board has determined by regulation to be available to absorb losses incurred by the Bank. 
  

					
	As of December 8, 2005	  	4	  	

	II.	Capital Stock 

  

	 	A.	Characteristics of Capital Stock 

 The Board of
Directors hereby authorizes the Bank to Issue, Redeem, and Repurchase Capital Stock, and take other actions in accordance with the provisions of the Plan, at the Exchange and thereafter. Capital Stock shall have a par value of $100 per share and
shall be Issued, Redeemed, and Repurchased only at its stated par value. 
 The Bank may Issue Capital Stock only in book-entry form, only in
whole shares, and only in the following subclasses: (i) Subclass B1, which a Member must own in order to become and remain a Member and (ii) Subclass B2, which a Member must own for as long as certain transactions between the Bank and the
Member remain outstanding. A Member may not use shares of (i) Subclass B1 Capital Stock to meet any Activity-Based Stock Requirement or (ii) Subclass B2 Capital Stock to meet any Membership Stock Requirement. 
  

	 	B.	Interest in Retained Earnings 

 Each Issued and
outstanding share of Capital Stock shall represent an undivided ownership interest (proportionate to the number of shares of Capital Stock Issued and outstanding from time to time) in the retained earnings, paid-in surplus, undivided profits, and
equity reserves of the Bank. No Member, Former Member or Nonmember Stockholder shall have a right to receive a distribution of its undivided interest in the retained earnings, paid-in surplus, undivided profits, or equity reserves of the Bank at any
time, including but not limited to, upon withdrawal or termination from Membership, except through a dividend or capital distribution approved by the Board of Directors or as a result of the liquidation of the Bank. 
  

	III.	Issuance of Capital Stock 

  

	 	A.	Subject to Plan 

 The terms, rights, and preferences
applicable to any Capital Stock Issued by the Bank shall be identical to those set forth in this Plan. The Bank may not Issue Capital Stock other than in accordance with the Regulations and this Plan. 
  

	 	B.	New Members 

 Within 60 calendar days following
Membership approval by the Bank, an approved applicant must purchase and hold sufficient shares of Capital Stock to satisfy its Minimum Stock Requirement in effect on the date of the purchase. The Membership Stock Requirement for a new Member shall
be calculated using the applicant’s total assets as of the most recent quarter-end for which data is available. 
  

	 	C.	Former Members and Nonmember Stockholders 

 Any
Former Member or Nonmember Stockholder must purchase and hold sufficient shares of Capital Stock to satisfy its Minimum Stock Retention Requirement. 
  

					
	As of December 8, 2005	  	5	  	

	IV.	Minimum Stock Requirement 

  

	 	A.	Calculation of Minimum Stock Requirement 

 From time
to time, the Board of Directors shall set the Minimum Stock Requirement for Members so that the aggregate of (i) the Minimum Stock Requirements of all Members and (ii) the Minimum Stock Retention Requirements of all Former Members and
Nonmember Stockholders is sufficient for the Bank to meet its Minimum Regulatory Capital Requirement. The Board of Directors shall have a continuing obligation to review and adjust the Minimum Stock Requirement to ensure that the Bank remains in
compliance with its Minimum Regulatory Capital Requirement. Each Member shall comply promptly with any such requirement. As of the Conversion Date, and for as long as its Membership continues or a relevant transaction is outstanding, each Member
shall hold Capital Stock in an amount equal to the sum of: 
  

	 	1.	The Member’s Membership Stock Requirement, which shall be shares of Subclass B1 Capital Stock equal to the lesser of: 

  

	 	a.	The percentage (initially 0.20%) of the Member’s total assets as of the Record Date specified by the Board of Directors in accordance with Section IV.B. of this Plan; or

  

	 	b.	The dollar cap (initially $25 million) on the Subclass B1 Membership Stock Requirement applicable to all Members specified by the Board of Directors in accordance with Section IV.B.
of this Plan; plus 

  

	 	2.	The Member’s Activity-Based Stock Requirement, which shall be shares of Subclass B2 Capital Stock equal to the sum of: 

  

	 	a.	The Member’s Advances Stock Requirement, which shall be the percentage (initially 4.50%) of the Member’s outstanding Advances specified by the Board of Directors in
accordance with Section IV.B. of this Plan; plus 

  

	 	b.	The Member’s Acquired Member Asset Stock Requirement, which shall be the percentage (initially 0.00%) of any Acquired Member Asset sold by the Member to the Bank specified by
the Board of Directors in accordance with Section IV.B. of this Plan; plus 

  

	 	c.	The Member’s Targeted Debt/Equity Investment Stock Requirement, which shall be the percentage (initially 8.00%) of any Targeted Debt/Equity Investment sold by the Member and
owned by the Bank specified by the Board of Directors in accordance with Section IV.B. of this Plan. 

 Provided, however, that
(i) the Member’s Acquired Member Asset Stock Requirement shall not include any Acquired Member Asset sold by the Member and owned by the Bank pursuant to a master commitment executed prior to the Conversion Date; and (ii) the
Member’s Targeted Debt/Equity Investment Stock Requirement shall not include any Targeted Debt/Equity Investment sold by the Member and owned by the Bank prior to the Conversion Date. 
 The Bank provided at least 75 days’ advance notice of the initial factors used to calculate, and the dollar cap applicable to, the Minimum Stock
Requirement via a Notice to Members. Such Notice was also provided to any institution with a pending application for Membership on the 

  

					
	As of December 8, 2005	  	6	  	

 
date of the Notice and to any institution that requested or submitted an application for Membership subsequent to the date of the Notice, but prior to the
Conversion Date. 
  

	 	B.	Authorized Ranges 

  

	 	1.	Authorized Ranges for Membership Stock Requirement 

 From
time to time, the Board of Directors may adjust the factor used to calculate the Membership Stock Requirement to an amount of Subclass B1 Capital Stock equal to but not less than 0.05% nor greater than 0.40% of the Member’s total assets.

 From time to time, the Board of Directors may adjust the dollar cap applicable to the Membership Stock Requirement to an amount of
Subclass B1 Capital Stock equal to but not less than $15 million nor greater than $35 million. 
  

	 	2.	Authorized Ranges for Activity-Based Stock Requirement 

 From time to time, the Board of Directors may adjust the Activity-Based Stock Requirement to an amount equal to the sum of: 
  

	 	a.	The Advances Stock Requirement, which shall equal an amount of Subclass B2 Capital Stock not less than 3.50% nor greater than 6.00% of the Member’s outstanding Advances; plus

  

	 	b.	The Acquired Member Asset Stock Requirement, which shall equal an amount of Subclass B2 Capital Stock not less than 0.00% nor greater than 6.00% of any Acquired Member Asset sold by
the Member and owned by the Bank; plus 

  

	 	c.	The Targeted Debt/Equity Investment Stock Requirement, which shall equal an amount of Subclass B2 Capital Stock not less than 6.00% nor greater than 9.00% of any Targeted
Debt/Equity Investment sold by the Member and owned by the Bank. 

  

	 	3.	No Adjustment Outside Authorized Ranges Without Plan Amendment 

 The Bank may not adjust the factors or the dollar cap used to calculate the Membership Stock Requirement or the Activity-Based Stock Requirement outside the ranges authorized in this Section IV.B., except upon an amendment to the Plan
approved by the Board of Directors and the Finance Board. 
  

	 	C.	Adjustments to Minimum Stock Requirements 

  

	 	1.	Notice of Change in Minimum Stock Investment Requirement 

 The Bank shall provide a Notice to Members at least 10 business days prior to the effective date of any change in the Membership Stock Requirement or Activity-Based Stock Requirement approved by the Board of Directors within the ranges
authorized under Section IV.B. of this Plan. 
  

					
	As of December 8, 2005	  	7	  	

	 	2.	Adjustment to Membership Stock Requirement 

  

	 	a.	Annual Recalculation 

 No later than March 31 of each
year, the Bank shall recalculate the Membership Stock Requirement of each Member holding Membership on the Record Date using financial data as of the Record Date. The Bank shall provide a Notice to Members at least 10 business days prior to the date
of the transaction to adjust the Member’s Subclass B1 Capital Stock balance to the new Membership Stock Requirement. In its discretion, the Bank may recalculate any Member’s Membership Stock Requirement more frequently, using financial
data from the fiscal year-end or the fiscal quarter-end immediately preceding the date of such recalculation, whichever period data is most-recently available. 
  

	 	b.	Recalculation Due to Adjustment Within Authorized Ranges 

 The Bank shall recalculate each Member’s Membership Stock Requirement on the effective date of any adjustment to the factors and/or dollar cap used to calculate the Membership Stock Requirement within the authorized ranges described in
Section IV.B of this Plan, using either the most recently available quarter-end financial data or financial data as of the prior calendar year-end, as determined by the Bank and specified in the Notice to Members. 
  

	 	c.	Recalculation Due to Termination of Membership as a Result of Consolidation, Relocation or Involuntary Action 

 The Bank may, in its sole discretion, recalculate the Membership Stock Retention Requirement for a Nonmember Stockholder or Former Member after the
termination of the Former Member’s Membership as a result of a Consolidation, Relocation or action by the Bank’s Board of Directors as specified in Section X.C. of this Plan. 
  

	 	d.	Adjustment Transaction 

 If any adjustment results in an
increase to the Member’s Membership Stock Requirement, on the transaction date specified in the Notice to Members the Bank shall (i) Issue sufficient additional shares of Subclass B1 Capital Stock so that the Member meets its Membership
Stock Requirement; and (ii) debit the Member’s Daily Investment Account in the amount of the par value of the additional shares of Subclass B1 Capital Stock Issued. In the event that the Member’s Daily Investment Account reflects
insufficient funds, the Bank may take any of the actions authorized pursuant to the account terms and conditions then in effect. 
 If any
adjustment results in a decrease to a Member’s Membership Stock Requirement or a Former Member’s or Nonmember Stockholder’s Membership Stock Retention Requirement, on the transaction date specified in the Notice to Members, the Bank,
in its discretion, may Repurchase any Excess Shares of Subclass B1 Capital Stock then held by the Member, Former Member or Nonmember Stockholder. The Notice to Members shall specify whether the Bank will Repurchase any Excess Shares of Subclass B1
Capital Stock. If the Bank will Repurchase only a portion of the Excess Shares, the Notice to Members shall specify either the amount of Excess Shares that the Bank will Repurchase or the methodology used to determine the amount of Excess Shares
that the Bank will Repurchase. 
  

					
	As of December 8, 2005	  	8	  	

	 	3.	Adjustment to Activity-Based Stock Requirement 

  

	 	a.	Recalculation of Activity-Based Requirement 

 The Bank
shall recalculate each Member’s Activity-Based Stock Requirement or each Former Member’s or Nonmember Stockholder’s Activity-Based Stock Retention Requirement at the time of any change in the amount of transactions outstanding between
the Bank and the Member, Former Member or Nonmember Stockholder and on the effective date of any adjustment to the factors used in calculating the Activity-Based Stock Requirement within the authorized ranges described in Section IV.B. Any
adjustment to the Activity-Based Stock Requirement for Members also shall apply to the Activity-Based Stock Retention Requirement for Former Members and Nonmember Stockholders. This Plan shall constitute Notice to Members of any change in the
Member’s, Former Member’s or Nonmember Stockholder’s Activity-Based Stock Requirement resulting from a change in the amount of transactions outstanding between the Bank and the Member, Former Member or Nonmember Stockholder.

  

	 	b.	Adjustment Transaction 

 If the adjustment results in an
increase to a Member’s Activity-Based Stock Requirement, the Bank shall (i) Issue sufficient additional shares of Subclass B2 Capital Stock so that the Member meets its Activity-Based Stock Requirement; and (ii) debit the
Member’s Daily Investment Account in the amount of the par value of the additional shares of Subclass B2 Capital Stock Issued. In the event that the Member’s Daily Investment Account reflects insufficient funds, the Bank may take any of
the actions authorized pursuant to the account terms and conditions then in effect. 
 If the adjustment results in a decrease to a
Member’s Activity-Based Stock Requirement or to a Former Member’s or Nonmember Stockholder’s Activity-Based Stock Retention Requirement, and the decrease results in ownership by the Member, Former Member or Nonmember Stockholder of an
amount of Subclass B2 Capital Stock that exceeds the Excess Stock Threshold Amount, or in the case of a Former Member or Nonmember Stockholder with no outstanding Indebtedness, is less than the Excess Stock Threshold Amount, the Bank
generally shall promptly Repurchase some or all of the Excess Shares of Subclass B2 Capital Stock held by the Member, Former Member or Nonmember Stockholder. This Plan shall constitute Notice of the Bank’s general practice to promptly
Repurchase some or all of the Excess Shares of Subclass B2 Capital Stock held by the Member, Former Member or Nonmember Stockholder when the par value of Excess Shares of Subclass B2 Capital Stock held by such Member exceeds the Excess Stock
Threshold Amount, or in the case of a Former Member or Nonmember Stockholder with no outstanding Indebtedness, is less than the Excess Stock Threshold Amount. 
 In the event that the Bank suspends such Repurchases, the Bank shall provide a Notice to Members in accordance with Section XI.E. of this Plan. 
  

	 	c.	Notice Regarding Excess Stock Threshold Amount 

 The
Excess Stock Threshold Amount is $100,000. 
 The Bank shall provide a Notice to Members at least five business days prior to the effective
date of any change in the Excess Stock Threshold Amount. Such Notice to Members shall include the par value of Excess Shares of Subclass B2 Capital Stock, if 

  

					
	As of December 8, 2005	  	9	  	

 
any, that the Bank generally shall permit the Member, Former Member or Nonmember Stockholder to retain when the amount of Subclass B2 Capital Stock
held by the Member, Former Member or Nonmember Stockholder exceeds the Excess Stock Threshold Amount. 
  

	 	4.	Application of Change Within Authorized Ranges 

 The Bank
shall apply any adjustment caused by a change within the authorized ranges to the factors and/or dollar cap used in calculating the Membership Stock Requirement, the Activity-Based Stock Requirement, and the Activity-Based Stock Retention
Requirement either retroactively or prospectively, as outlined below: 
  

	 	a.	Any adjustment caused by a change to the factor and/or dollar cap used in calculating the Membership Stock Requirement shall be applied retroactively by applying the new factor
and/or dollar cap to the Member’s total assets as of the date specified in accordance with Section IV.C.2. of this Plan. 

  

	 	b.	Any adjustment caused by a change to the factor used in calculating the Advances Stock Requirement shall be applied retroactively by applying the new factor to the outstanding
balance of advances on the effective date of the change as specified in the Notice to Members. Any retroactive application of an adjustment to the Advances Stock Requirement also shall apply to the Advances Stock Retention Requirement.

  

	 	c.	If the adjustment results in an increase to the factor used to calculate the Acquired Member Asset Stock Requirement, the Bank shall apply the new requirement on a prospective basis
only to any Acquired Member Asset sold by the Member and owned by the Bank pursuant to a master commitment executed subsequent to the effective date of the adjustment. 

  

	 	d.	If the adjustment results in a decrease to the factor used to calculate the Acquired Member Asset Stock Requirement, the Bank, in its sole discretion, may apply the new requirement
(i) on a prospective basis only to any Acquired Member Asset sold by the Member and owned by the Bank pursuant to a master commitment executed subsequent to the effective date of the adjustment, or (ii) on a retroactive and a prospective
basis to any Acquired Member Asset sold by the Member or Former Member and owned by the Bank on the effective date of the change, as well as to Acquired Member Asset sold by the Member and owned by the Bank subsequent to the effective date of the
adjustment. Any retroactive application of an adjustment to the Acquired Member Asset Stock Requirement shall also apply to the Acquired Member Asset Stock Retention Requirement. 

  

	 	e.	If the adjustment results in an increase to the factor used to calculate the Targeted Debt/Equity Investment Stock Requirement, the Bank shall apply the new requirement on a
prospective basis only to any Targeted Debt/Equity Investment sold by the Member and owned by the Bank subsequent to the effective date of the adjustment. 

  

	V.	Ownership and Transfer of Capital Stock 

 Except for any Former Member or Nonmember Stockholder subject to a Minimum Stock Retention Requirement, Capital Stock may only be Issued to or held by Members. Capital Stock shall be tradable only between the Bank, on the one hand, and
Members, Former Members and Nonmember Stockholders, on the other, and any transfer of Capital Stock shall be made at par value. The Bank shall act as the transfer agent for any such transfer, and it shall record promptly the transaction on 

  

					
	As of December 8, 2005	  	10	  	

 
the books of the Bank. Transfers among any Member, Former Member and Nonmember Stockholder are prohibited, except as approved by the Bank in connection with
a Consolidation. 
  

	VI.	Voting Rights 

 The Members shall be entitled
to vote in connection with the election of directors in accordance with the provisions of the Act and the Regulations. A Member may cast in any such election a number of votes equal to the number of shares of Capital Stock that it was required to
hold pursuant to Section IV. of the Plan as of the Record Date; provided, however, that the number of votes that any Member may cast in any such election shall not exceed the average of the number of shares of Capital Stock that all Members located
in that Member’s state were required to hold pursuant to Section IV. of the Plan as of the Record Date. For purposes of this Section VI., “Member” includes any Member that was a Member as of the Record Date, any Former Member that was
a Member as of the Record Date and any Nonmember Stockholder whose predecessor-in-interest was a Member as of the Record Date. 
  

	VII.	Dividends 

  

	 	A.	Declaration of Dividends 

 From time to time, the
Board of Directors, in its sole discretion (subject to the regulatory oversight of the Finance Board), may declare and the Bank may pay dividends on Capital Stock. Any such dividend may be paid in the form of cash or Capital Stock, shall be paid to
the Members, Former Members and Nonmember Stockholders holding Capital Stock during the time period for which the dividend is declared, and shall be computed on the amount of time during the relevant time period that the Capital Stock was
outstanding. The amount of any dividend paid in the form of Capital Stock shall be rounded down to the nearest whole share, and the remainder, if any, shall be paid in the form of cash. 
 The Bank may not pay any dividend if it is not in compliance with its Minimum Regulatory Capital Requirement or if, after paying such dividend, it would
fail to comply with its Minimum Regulatory Capital Requirement. 
  

	 	B.	No Preference 

 All Capital Stock shall share in any
dividends without preference. Any dividends shall be payable only from the net earnings or retained earnings of the Bank, determined in accordance with generally accepted accounting principles. 
  

	 	C.	Stock Held by Withdrawing or Former Member 

 A
Member, Former Member or Nonmember Stockholder shall be entitled to receive any dividends attributable to its Capital Stock (subject to the Bank’s lien thereon) through the date of Redemption or Repurchase by the Bank. 
  

	VIII.  Liquidation,	Merger or Consolidation 

  

	 	A.	Liquidation 

 In the event of the liquidation of the
Bank, after making provision for the payment of the Bank’s liabilities, the Bank shall pay to each Member, Former Member and Nonmember Stockholder the par value of its Capital Stock; provided, however, that if sufficient funds are not available
to make payment in full to all Members, Former Members and Nonmember Stockholders, payment 

  

					
	As of December 8, 2005	  	11	  	

 
shall occur on a pro rata basis. In addition, any undistributed retained earnings, paid-in surplus, undivided profits, equity reserves, and other assets not
otherwise identified shall be allocated among the Members, Former Members and Nonmember Stockholders, in proportion to the number of shares of Capital Stock owned by each. 
  

	 	B.	Merger or Consolidation 

 In the event that the Bank
merges with or consolidates into another Federal Home Loan Bank, the Members, Former Members and Nonmember Stockholders shall be entitled to the rights and benefits set forth in the agreement of merger or consolidation approved by the Board of
Directors and the Finance Board. 
  

	 	C.	No Limitation on Finance Board’s Authority 

 Notwithstanding the provisions of Section VIII.A. and B., no provision of this Plan shall limit the authority of the Finance Board to prescribe rules, regulations or orders governing the liquidation or reorganization of the Bank.

  

	IX.	Redemption and Repurchase of Capital Stock (Continuing Membership) 

  

	 	A.	Redemption Upon Application by the Member 

  

	 	1.	Conditions Applicable to Redemption 

 Subject to the
limitations in Section XI. of this Plan, a Member may obtain Redemption of its Capital Stock by providing a written Redemption notice to the Bank, in a form acceptable to the Bank. The Redemption notice must identify the particular subclass and
number of shares to be Redeemed, and the identified shares may not be the subject of an outstanding Redemption notice. If the Redemption notice fails to identify either the particular subclass or the number of shares to be Redeemed, or if the shares
identified in the Redemption notice are subject to a pending Redemption notice, the Redemption notice shall be deemed invalid. 
  

	 	2.	Cancellation of Redemption Notice 

  

	 	a.	Cancellation by Member 

 A Member may cancel its
Redemption notice at any time prior to the expiration of the Redemption Period by providing a written cancellation notice to the Bank. Any Member that cancels its Redemption notice shall pay a fee to the Bank equal to the greater of (i) $500,
or (ii) two basis points (.02%) multiplied by the par value of the number of shares of Capital Stock subject to the Redemption notice. 
  

	 	b.	Automatic Cancellation of Redemption Notice 

 The Bank
shall not Redeem a Member’s Capital Stock if, following the Redemption, the Member would fail to meet its Minimum Stock Requirement. If, upon expiration of the Redemption Period, the Bank is prevented from Redeeming a Member’s Capital
Stock for such reason, the Bank shall attempt the Redemption on each of the five business days following the expiration of the Redemption Period. If at the end of such time the Bank is prevented from Redeeming the Member’s Capital Stock
because, following the Redemption, the Member would fail to meet its Minimum Stock Requirement, the Bank shall automatically cancel the Member’s Redemption notice. Such automatic cancellation shall have the same effect as a notice of
cancellation provided by the Member to the Bank. 
  

					
	As of December 8, 2005	  	12	  	

	 	c.	Waiver of Cancellation Fee 

 The Board of Directors may
waive a cancellation fee only for bona fide business purposes and only if consistent with the provisions of Section 7(j) of the Act. 
  

	 	3.	Redemption 

 Except as set forth in Sections IX.A.2 and
XI., and so long as the Member has complied with the conditions set forth in Section IX.A.1., the Bank shall Redeem the Member’s Capital Stock upon expiration of the Redemption Period. 
  

	 	B.	Repurchase Upon Initiation by the Bank 

 The Bank
may Repurchase Excess Shares of Subclass B1 Capital Stock and Subclass B2 Capital Stock in accordance with the provisions of Section IV.C. of this Plan. If the Bank intends to Repurchase Excess Stock from a Member, a Former Member or a Nonmember
Stockholder that has submitted a Redemption notice pursuant to Section IX.A.1., before Repurchasing any other Excess Stock of the Member, Former Member or Nonmember Stockholder, the Bank shall first Repurchase from that Member, Former Member or
Nonmember Stockholder the shares of Excess Stock that are subject to a Redemption notice. 
  

	 	C.	Continued Benefits of Ownership Prior to Redemption or Repurchase 

 A Member, Former Member or Nonmember Stockholder shall be entitled to receive any dividends attributable to its Capital Stock (subject to the Bank’s lien thereon) through the date of Redemption or Repurchase by
the Bank. A Member also shall be entitled to exercise the other benefits associated with ownership of such Capital Stock prior to the date of Redemption or Repurchase. 
  

	X.	Redemption and Repurchase of Capital Stock (Withdrawal or Termination of Membership) 

  

	 	A.	Voluntary Withdrawal 

  

	 	1.	Notice of Intention to Withdraw from Membership 

 A Member
may voluntarily withdraw and terminate its Membership by providing to the Bank written notice of its intention to withdraw from Membership. The Redemption Period for all Capital Stock then held by that Member that is not subject to a pending
Redemption notice shall begin on the date the notice is received by the Bank. 
 The Redemption Period for any Capital Stock acquired or
received by the Member subsequent to the Bank’s receipt of the Member’s notice of intention to withdraw shall begin on the date of acquisition or receipt of the Capital Stock by the Member; provided, however, that any Capital Stock that is
not required to meet the Member’s Minimum Stock Requirement shall be Excess Stock and shall be subject to Repurchase by the Bank. 
  

	 	2.	Termination of Membership 

 The Membership of a Member
that has submitted a notice of intention to withdraw shall terminate on the date on which the Redemption Period ends with respect to the Capital 

  

					
	As of December 8, 2005	  	13	  	

 
Stock that comprised the Member’s Membership Stock Requirement on the date on which the Bank received the Member’s notice of intention to withdraw,
unless the Bank has received written notice from the Member prior to the date on which its Membership terminates that the Member is canceling its notice of intention to withdraw. Until the date on which its Membership terminates, a Member shall
continue to maintain Capital Stock sufficient to meet its Minimum Stock Requirement in accordance with the provisions of the Plan. 
  

	 	3.	Continued Benefits of Membership Prior to Termination 

 A
Member that has submitted a notice of intention to withdraw shall be entitled to receive any dividends attributable to its Capital Stock (subject to the Bank’s lien thereon) through the date of Redemption or Repurchase by the Bank. The Member
also shall be entitled to exercise the other benefits associated with Membership until the date on which its Membership terminates, but the Bank in its sole discretion (subject to the regulatory oversight of the Finance Board) may limit a
Member’s ability to enter into transactions with the Bank, including but not limited to Advances, that would mature or otherwise terminate subsequent to the date on which its Membership terminates. 
  

	 	4.	Cancellation of Notice of Withdrawal 

  

	 	a.	Conditions Applicable to Cancellation 

 A Member may
cancel its notice of intention to withdraw at any time prior to the date on which its Membership terminates by providing a written cancellation notice to the Bank. Any Member that cancels its notice of intention to withdraw shall pay a fee to the
Bank equal to the greater of (i) $500, or (ii) two basis points (.02%) multiplied by the par value of the number of shares of Capital Stock held by the Member on the date the Bank receives the notice of cancellation. 
  

	 	b.	Waiver of Cancellation Fee 

 The Board of Directors may
waive a cancellation fee only for bona fide business purposes and only if consistent with the provisions of Section 7(j) of the Act. 
  

	 	5.	Circumstances Requiring Finance Board Certification for Withdrawal 

 No Member may withdraw from Membership unless, on the date that the Membership is to terminate, there is in effect a certification from the Finance Board that the withdrawal will not cause the Federal Home Loan Bank
System to fail to satisfy its obligations under 12 U.S.C. 1441b(f)(2)(C) to contribute toward the interest payments owed on obligations issued by the Resolution Funding Corporation. 
  

	 	B.	Termination of Membership as a Result of a Consolidation or Relocation 

  

	 	1.	Consolidation of Members 

 Upon Consolidation of two or
more Members, the Membership of each disappearing Member shall terminate upon the cancellation of its charter. At such time, the Capital Stock of the disappearing Member shall be transferred on the Bank’s books to the account of the surviving
Member. The Redemption Period for the Capital Stock held by the disappearing Member on the date of its termination from Membership and that is not subject to a pending Redemption notice shall not be deemed to begin solely by virtue of the
termination 

  

					
	As of December 8, 2005	  	14	  	

 
from Membership, but shall begin only upon (i) the Bank’s receipt of the surviving Member’s written notice to the Bank requesting Redemption
of Capital Stock, (ii) the Bank’s receipt of the surviving Member’s written notice to the Bank of its intention to withdraw from Membership, (iii) the surviving Member’s termination from Membership as a result of a
Consolidation into a nonmember, (iv) the surviving Member’s termination from Membership as a result of a Relocation, or (v) the surviving Member’s involuntary termination from Membership. 
  

	 	2.	Consolidation into Nonmember 

 Upon Consolidation of a
Member into an institution that is not a Member pursuant to a transaction in which the surviving institution operates under the charter of the institution that is not a Member, the Membership of the Member shall terminate upon the cancellation of
the Member’s charter. The Redemption Period for the Capital Stock held by the disappearing Member on the date of its termination from Membership and that is not subject to a pending Redemption notice shall be deemed to begin, on the date of its
termination from Membership. At such time, the Capital Stock of the disappearing Member shall be transferred on the Bank’s books to the account of the surviving institution, a Nonmember Stockholder. 
 Capital Stock held by a Nonmember Stockholder shall not be deemed automatically to be Excess Stock solely by virtue of the disappearing Member’s
termination of Membership; provided, however, that any Capital Stock that is not required to meet the Minimum Stock Retention Requirement for the Nonmember Stockholder, as adjusted pursuant to Section IV.C.2.c. or Section IV.C.3. of this Plan, shall
be Excess Stock and shall be subject to Repurchase by the Bank. 
 The Redemption Period for any Capital Stock acquired or received by a
Nonmember Stockholder subsequent to the termination of the disappearing Member’s Membership shall begin on the date of acquisition or receipt of the Capital Stock by the Nonmember Stockholder; provided, however, that any Capital Stock that is
not required to meet the Minimum Stock Retention Requirement for the Nonmember Stockholder, as adjusted pursuant to Section IV.C.2.c or Section IV.C.3. of this Plan, shall be Excess Stock and shall be subject to Repurchase by the Bank. 

The Nonmember Stockholder shall be entitled to receive any dividends attributable to its Capital Stock (subject to the Bank’s lien thereon)
through the date of Redemption or Repurchase by the Bank, but the Nonmember Stockholder shall have no right to exercise any of the other benefits of Membership after the termination of the disappearing Member’s Membership. 
  

	 	3.	Relocation of Member 

 Upon Relocation by a Member, the
Member shall promptly notify the Bank in writing of such Relocation. Upon the later of the receipt of such notice or the effective date of the Relocation, the Membership of the Member shall terminate. The Redemption Period for the Capital Stock held
by the Member on the date of its termination from Membership and that is not subject to a pending Redemption notice shall be deemed to begin on the date of its termination from Membership. 
 Capital Stock held by the Member on the date of its termination from Membership shall not be deemed automatically to be Excess Stock solely by virtue of
the Member’s termination of Membership; provided, however, that any Capital Stock that is not required to meet the 

  

					
	As of December 8, 2005	  	15	  	

 
Minimum Stock Retention Requirement for the Former Member, as adjusted pursuant to Section IV.C.2.c. or Section IV.C.3. of this Plan, shall be Excess Stock
and shall be subject to Repurchase by the Bank. 
 The Redemption Period for any Capital Stock acquired or received by the Former Member
subsequent to its termination from Membership shall begin on the date of acquisition or receipt of the Capital Stock by the Former Member; provided, however, that any Capital Stock that is not required to meet the Minimum Stock Retention Requirement
of the Former Member, as adjusted pursuant to Section IV.C.2.c. or Section IV.C.3. of this Plan, shall be Excess Stock and shall be subject to Repurchase by the Bank. 
 The Former Member shall be entitled to receive any dividends attributable to its Capital Stock (subject to the Bank’s lien thereon) through the date of Redemption or Repurchase by the Bank, but the Former Member
shall have no right to exercise any of the other benefits of Membership after the termination of its Membership. 
  

	 	C.	Other Involuntary Termination of Membership 

 The
Board of Directors may immediately terminate the Membership of any Member that: 
  

	 	1.	Fails to comply with any requirement of the Act, the Regulations, or the Capital Plan; 

  

	 	2.	Becomes insolvent or otherwise subject to the appointment of a conservator, receiver, or other legal custodian under federal or state law; or 

  

	 	3.	Would jeopardize the safety or soundness of the Bank if it were to remain a Member. 

 Upon action of the Board of Directors to terminate the Membership of any Member as described above, the Membership of such Member shall terminate, and the Redemption Period for all Capital Stock then held by the
terminated Member that is not subject to a pending Redemption notice shall begin, on the effective date of the Board of Directors’ action. 
 Capital Stock held by a Former Member whose Membership has been terminated by the Board of Directors shall not be deemed automatically to be Excess Stock solely by virtue of the termination of Membership; provided, however, that any Capital
Stock that is not required to meet the Former Member’s Minimum Stock Retention Requirement, as adjusted pursuant to Section IV.C.2.c. or Section IV.C.3. of this Plan, shall be Excess Stock and shall be subject to Repurchase by the Bank.

 The Redemption Period for any Capital Stock acquired or received by the Former Member subsequent to the termination of Membership shall
begin on the date of acquisition or receipt of the Capital Stock by the Former Member; provided, however, that any Capital Stock that is not required to meet the Former Member’s Minimum Stock Retention Requirement, as adjusted pursuant to
Section IV.C.2.c. or Section IV.C.3. of this Plan, shall be Excess Stock and shall be subject to Repurchase by the Bank. 
 The Former Member
shall be entitled to receive any dividends attributable to its Capital Stock (subject to the Bank’s lien thereon) through the date of Redemption or Repurchase by the Bank, but the Former Member shall have no right to exercise any of the other
benefits of Membership after the termination of Membership. 
  

					
	As of December 8, 2005	  	16	  	

	 	D.	Redemption 

 Except as set forth in Section XI., and
unless the Former Member or Nonmember Stockholder must continue to comply with an Activity-Based Stock Retention Requirement, the Bank shall Redeem the Former Member’s or Nonmember Stockholder’s Capital Stock upon expiration of the
Redemption Period. 
  

	XI.	Limitations on Redemption and Repurchase of Capital Stock 

  

	 	A.	Limitations Due to Charges Against Capital Stock 

 Notwithstanding any other provision of this Plan, if the Finance Board or the Board of Directors determines that the Bank has incurred or is likely to incur losses that result in, or are likely to result in, charges against Capital Stock
that create an other than temporary decline in the Bank’s Total Capital such that the value of Total Capital falls below the Bank’s aggregate amount of Capital Stock, the Bank shall not Redeem or Repurchase any Capital Stock without the
prior written approval of the Finance Board for however long the Bank continues to incur such charges or until the Finance Board determines that such charges are not expected to continue. 
  

	 	B.	Limitations Due to Failure to Satisfy Minimum Requirements 

 The Bank shall not Redeem or Repurchase any Capital Stock if, following the Redemption or Repurchase, the Bank would fail to satisfy its Minimum Regulatory Capital Requirement, the Member would fail to maintain its Minimum Stock
Requirement, or the Former Member or Nonmember Stockholder would fail to maintain its Minimum Stock Retention Requirement. Further, the Bank shall not Redeem or Repurchase any Capital Stock if prohibited from doing so by any Regulation or Finance
Board order. 
  

	 	C.	Other Restrictions on Redemption 

 In the event that
the Board of Directors, or a committee of the Board of Directors, determines that continued Redemption is not consistent with the Regulations because (i) following such Redemption, the Bank would fail to meet or would be likely to fail to meet
its Minimum Regulatory Capital Requirement, or (ii) Redemption would otherwise prevent the Bank from operating in a safe and sound manner, including, without limitation, a reasonable belief that the Redemption would prevent the Bank from
maintaining sufficient Permanent Capital or Total Capital against a potential risk that may not be reflected adequately in the Bank’s Minimum Regulatory Capital Requirement, then the Board of Directors, or a committee of the Board of Directors,
in its sole discretion (subject to the regulatory oversight of the Finance Board), may temporarily suspend Redemptions. The Bank shall not Repurchase any Capital Stock without prior written approval of the Finance Board during the period that
Redemptions are suspended under this provision. 
 The Bank shall notify the Finance Board in writing within two Business Days following the
determination by the Board of Directors, or a committee of the Board of Directors, to suspend Redemption of Capital Stock, informing the Finance Board of the reasons for the suspension and of the Bank’s strategies and time frames for addressing
the conditions that led to the suspension. 
  

	 	D.	Other Restrictions on Repurchase 

 On any Business
Day that the Repurchase of some or all Excess Shares of Subclass B2 Capital Stock would cause the Bank to fail to satisfy its Minimum Regulatory Capital Requirement, the 

  

					
	As of December 8, 2005	  	17	  	

 
Bank shall suspend Repurchases until the Bank can honor such Repurchases in full, or the Board of Directors establishes pro rata Repurchase procedures.

  

	 	E.	Notice of Suspension of Repurchases or Redemptions 

 The Bank shall provide a Notice to Members regarding the suspension of Redemptions or Repurchases on or before the effective date of the suspension. The Bank shall provide a Notice to Members at least one business day prior to resuming
Repurchases or Redemptions. 
  

	 	F.	No Priority for Notices of Redemption in the Event of Liquidation 

 In the event that the Finance Board determines to liquidate the Bank, from and after the date of any such determination, all of the Capital Stock held by the Members, Former Members and Nonmember Stockholders whether
or not subject to a notice of Redemption or Repurchase, shall thereafter be treated exactly the same, and no further Redemptions or Repurchases shall occur except in connection with the liquidation of the Bank in accordance with the provisions of
the Act, the Regulations and this Plan. 
  

	XII.	Disposition of Claims 

  

	 	A.	In General 

 If a Member withdraws from Membership
or its Membership is otherwise terminated, the Bank, in its sole discretion (subject to the regulatory oversight of the Finance Board), shall determine an orderly manner for liquidating all Indebtedness owed by the Former Member or Nonmember
Stockholder to the Bank and for settling all other claims against the Former Member or Nonmember Stockholder. After the obligations and claims have been extinguished or settled, the Bank shall return to the Former Member or Nonmember Stockholder the
collateral pledged by the Former Member or Nonmember Stockholder to the Bank to secure its obligations to the Bank. 
  

	 	B.	Lien on Capital Stock 

 The Bank shall have a lien
on all of the Capital Stock owned by a Member, Former Member or Nonmember Stockholder, and all dividends and other proceeds of such Capital Stock, to secure the performance by the Member, Former Member or Nonmember Stockholder of its obligations
pursuant to the Capital Plan and to secure its performance with respect to any Indebtedness to the Bank or any transaction with the Bank. The Bank shall not Redeem or Repurchase any Capital Stock that is required to meet the Member’s
Activity-Based Stock Requirement or the Former Member’s or Nonmember Stockholder’s Activity-Based Stock Retention Requirement until after the relevant Indebtedness or transactions have been extinguished or settled. The Bank shall have the
right to collect any dividends and other proceeds of Capital Stock otherwise payable to a Member, Former Member or Nonmember Stockholder in default to satisfy any monetary obligations of the Member, Former Member or Nonmember Stockholder to the Bank
or, in the sole discretion of the Bank (subject to the regulatory oversight of the Finance Board), to pay any dividends to the Member, Former Member or Nonmember Stockholder in Capital Stock. 
  

	 	C.	Prepayment Fees 

 Any liquidation of Indebtedness
that results in payment of the Indebtedness before its stated maturity shall be deemed a prepayment of the Indebtedness, and shall be subject to any fees applicable to the prepayment. 
  

					
	As of December 8, 2005	  	18	  	

	XIII.  Amendment	to the Capital Plan 

 Any amendment to the
Capital Plan must be approved by the Board of Directors and by the Finance Board. The Bank shall provide a Notice to Members at least five business days prior to the effective date of any amendment. 
  

					
	As of December 8, 2005	  	19

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