Document:

Exhibit 10.1

    

     

    

    
      

      

      AMENDMENT NO. 4 TO

      LIQUIDATION TRUST AGREEMENT

      

      

      This Amendment No. 4 to Liquidation Trust Agreement (this “Amendment”) is entered into effective as of February 5, 2020 (the “Effective Date”) by Michael Goldberg, solely in his capacity as
        Liquidation Trustee (the “Liquidation Trustee”) of Woodbridge Liquidation Trust, a Delaware statutory trust (the “Liquidation Trust”), to amend the Liquidation Trust Agreement dated as of February 15, 2019  by and among the entities listed as “Debtors” on the signature pages thereto, the Liquidation Trustee,
        and Wilmington Trust, National Association, as Delaware Trustee (as amended, the “Trust Agreement”).  Capitalized terms used in this Amendment without
        definition herein shall be deemed to have the meanings given to such terms in the Trust Agreement or incorporated therein.

      R E C I T A L S

       

      

      A.          Section 12.10 of the Trust Agreement provides
          that the Trust Agreement may be amended from time to time by a written instrument signed by the Liquidation Trustee provided that (i) such amendment shall require the prior written approval of a majority of the members of the Liquidation Trust
          Supervisory Board and (ii) any such amendment that would adversely affect any Beneficiary in a manner disproportionate from the other Beneficiaries in their capacities as such shall require the consent of each such adversely and
          disproportionately affected Beneficiary and any such amendment that affects the Delaware Trustee’s duties, obligations, rights, privileges or protections hereunder shall require the written consent of the Delaware Trustee.

       

        

      B.          This Amendment, a written instrument signed
          by the Liquidation Trustee, has received the prior written approval of a majority of the members of the Liquidation Trust Supervisory Board.  This Amendment does not adversely affect any Beneficiary in a manner disproportionate from the other
          Beneficiaries in their capacities as such and does not affect any duties, obligations, rights, privileges or protections of the Delaware Trustee.

       

        

      C.          Effective as of the Effective Date, the
          Liquidation Trustee now wishes to amend the Trust Agreement as set forth below.

      

      

      A G R E E M E N T

       

      

      NOW, THEREFORE, as of the
        Effective Date, the Liquidation Trust Agreement is hereby amended to delete the stricken text (indicated textually in the same manner as the following example:  stricken
            text) and to add the bold underlined text (indicated textually in the same manner as the following example:  bold underlined
            text) as set forth below:

       

      

      1.          Amendment of Section 3.3.  Section 3.3 is hereby amended to read in full as follows:

       

        

      3.3          Compensation.  Each member of the
              Liquidation Trust Supervisory Board serving on the Audit Committee thereof shall receive, in respect of service on the Liquidation Trust Supervisory Board and the Audit Committee rendered on or after February 1, 2020, compensation of $10,000
              for each calendar month of such service.  Each other member of the Liquidation Trust Supervisory Board shall receive the
          following compensation in respect of his or her service on the Liquidation Trust Supervisory Board: (i) for each calendar month of service shall be $10,000 monthly for the first twelve months from and after the Effective Date (counting the month
          of the Effective Date as the first calendar month even if it is a partial calendar month), (ii) $7,500 monthly for the thirteenth through twenty-fourth calendar months after the Effective Date, (iii) $5,000 monthly for the twenty-fifth through
          thirty-sixth calendar months after the Effective Date, and (iv) $2,500 monthly for each calendar month thereafter until termination of the Liquidation Trust in accordance with the Plan.  Compensation provided for under this Section 3.3 shall be (prorated as appropriate if a
          member commences his or her service other than on the first day of a month or terminates his or her service other than on the last day of a month). 
          All The members of the Liquidation
          Trust Supervisory Board shall also be entitled to reimbursement from the Liquidation Trust Assets of all actual, reasonable and documented out-of-pocket costs and expenses incurred thereby in connection with their service on the Liquidation Trust
          Supervisory Board.  Except for (i) the compensation and expense reimbursement set forth in this Section 3.3 and (ii) indemnification as set forth in Article VII hereof, the members of the Liquidation Trust Supervisory Board shall receive no
          compensation or other payment for the performance of their duties hereunder.

      
        
          

      

      2.          Full Force and Effect.  Except as amended in this Amendment, the Trust Agreement shall remain in full force and effect.  Unless the context otherwise requires, any other document or agreement that
          refers to the Trust Agreement shall be deemed to refer to the Trust Agreement, giving effect to this Amendment (and any other amendments to the Trust Agreement made from time to time pursuant to its terms).

       

        

      3.          Successors and Assigns.  This Amendment shall inure to the benefit of and be binding upon the successor(s) and assign(s) of the party hereto.

       

        

      4.          Governing Law.  This Amendment shall be governed by and construed in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of laws.

      

      

      [Signature page follows]

      
        
          

      

      IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first set forth above.

      

      

      	 	
              /s/ Michael I. Goldberg

            
	 	
              Michael Goldberg, solely in his capacity as Liquidation Trustee under the Trust Agreement

            

      

      

      

      

      

      [SIGNATURE PAGE TO AMENDMENT NO. 4 TO

      LIQUIDATION TRUST AGREEMENT OF WOODBRIDGE LIQUIDATION TRUST]ck0001325878-ex101_6.htm

 

Exhibit 10.1

 

December 20, 2019

 

Federal Home Loan Bank of Topeka

 Executive Incentive Compensation Plan Targets

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

 

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

The Plan targets contained in this document specifically cover the 2020 Base Performance Period (January 1, 2020 through December 31, 2020) and the 2021 - 2023 Deferral Performance Period (January 1, 2021 through December 31, 2023).

	
A.
	
2020 Base Performance Period Metrics. The following goal metrics are assigned to the Participants under the Plan. All calculations including interest rates will be rounded to two decimal places.

	
1.
	
Adjusted Return Spread on Total Regulatory Capital

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

Measure:

Adjusted net income is defined as follows:

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

	
 
	
o
	
Plus the recorded AHP assessments

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

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

	
 
	
o
	
Minus the prepayment fees

	
 
	
o
	
Minus/plus the realized or unrealized gains/losses on securities 

	
 
	
o
	
Minus/plus the gains/losses on mortgage loans held for sale

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

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

	
 
	
o
	
Less a calculated 10% AHP assessment

Performance Range:

		
	
 
	
Annual Performance Range

	
Threshold
	
3.69%

	
Target
	
4.41%

	
Optimum
	
5.13%

 

	
2.
	
GAAP Return Spread on Total Regulatory Capital

Definition: The spread between: (a) GAAP net income divided by the daily average total regulatory capital; and (b) the Fed Effective rate. 

Measure:

	
 
	
o
	
Net income calculated under GAAP.

	
 
	
o
	
Daily average total regulatory capital. 

	
 
	
o
	
Divide GAAP net income by daily average total regulatory capital to calculate a return.

 

 

	
 
	
o
	
Subtract the average daily Overnight Federal funds effective rate (Fed Effective) from the GAAP return.

 

 

Performance Range:

		
	
 
	
Annual Performance Range

	
Threshold
	
3.55%

	
Target
	
4.72%

	
Optimum
	
5.90%

 

	
3.
	
Adjusted Net Income after Capital Charge

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

 

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

 

Performance Range:

		
	
 
	
Annual Performance Range

	
Threshold
	
$79,433,000

	
Target
	
$99,291,000

	
Optimum
	
$119,149,000

 

	
4.
	
GAAP Net Income after Capital Charge

Definition: The dollar amount of GAAP net income that exceeds the cost of the required return on capital. 

 

Measure: GAAP net income, less required return on capital. The required return on capital is the sum of the outstanding regulatory Class B Common Stock times the average of three-month LIBOR plus 1.00 percent for each day during the year plus the sum of regulatory Class A Common Stock and retained earnings times the average of three-month LIBOR for each day during the year.

 

Performance Range:

		
	
 
	
Annual Performance Range

	
Threshold
	
$72,086,000

	
Target
	
$102,980,000

	
Optimum
	
$133,875,000

 

	
5.
	
Member Product Utilization

Definition: Member product utilization is defined as the weighted average 2020 attainment in member utilization in each of three product categories: (1) Line of Credit or advances; (2) MPF Program; and (3) Letters of Credit.  

 

Measure: Product utilization is calculated by dividing the number of members that qualify as a user of one of the three products (as defined below) at any time during the current year (2020) by the number of members at the end of the current year (2020). The individual product utilization 

 

 

is compared to the target level to arrive at the level of attainment for each of the three products. The percentage attainment to target for each product is then multiplied by the weight assigned to each product to arrive at the overall weighted product utilization goal attainment.

 

Products and Weighting:

MPF Program – Weight 25%

A participating financial institution (PFI) that delivers at least one loan during the year into any one or more of the MPF products will qualify as using the MPF program.

 

Letters of Credit – Weight 25%

A member that applies for and we issue to them at least one new Letter of Credit during the year will qualify as using the Letter of Credit product.   

 

Line of Credit or Regular Advance – Weight 50%

A member that uses the line of credit and has an outstanding balance for a total of 5 days during the year or who takes one (or more) new advance for a term of 3 or more days (short-term fixed rate, regular fixed rate, symmetrical fixed rate, callable, member option, amortizing fixed rate, adjustable, convertible, structured advance or forward settle advance that settles during the year) during the year will quality as a using an advance related product.

 

Performance Range:

				
	
                
	
Product Utilization %

	
Product
	
Threshold
	
Target
	
Optimum

	
MPF Program
	
24.00%
	
25.50%
	
27.00%

	
Letters of Credit
	
30.00%
	
32.00%
	
34.00%

	
Line of Credit or Regular Advance
	
61.00%
	
67.00%
	
73.00%

 

	
6.
	
Diversity and Inclusion

Definition: FHLBank’s Diversity and Inclusion (D&I) initiative is defined as the advancement of D&I, to the maximum extent possible in balance with financially safe and sound business practices, through inclusion and utilization of diverse-owned business and individuals within its workforce, as defined in the D&I Policy, in all business activities of FHLBank. 

 

Measure: Points are awarded by achievement of the following. One point is awarded for each:

	
 
	
•
	
Attain a workforce ratio of at least 11.0% business partners of color as of 12/31/2020.

	
 
	
•
	
Increase the number of viable and certified diverse suppliers in SupplierGATEWAY by 12. 

	
 
	
•
	
80% of business partners attend one D&I Awareness Activity. 

	
 
	
•
	
80% of business partners complete one D&I Training event.

	
 
	
•
	
Participate in 15 outreach opportunities with diverse potential directors and/or in Workforce, Vendors, Capital Markets and/or with members. 

 

Performance Range:

		
	
 
	
Points

	
Threshold
	
3 out of 5 points

	
Target
	
4 out of 5 points

	
Optimum 
	
5 out of 5 points

 

Viable diverse suppliers are those that provide a good or service on the Commodities List found on the Supplier Gateway website, are registered to do business with FHLBank in Supplier Gateway and can be located/headquartered anywhere in the United States. 

 

 

 

D&I Awareness Opportunities are FHLBank-wide events approved in advance by the Director of Human Resources and Inclusion (HRI) that educates employees on D&I or encourages it among them. These opportunities are typically lunch and learn events hosted by FHLBank’s Inclusion, Diversity, and Equality Advisory Council and range in topics from various cultures, religions, and holidays to education on marginalized communities.

 

D&I Training Opportunities are FHLBank-wide training approved in advance by the Director of HRI with the purpose of increasing knowledge of and competencies in content and principles regarding D&I. These opportunities can include, for example, workshops on the business case for D&I, recognizing and managing various biases, and bridging generational gaps within the workplace.

 

Outreach opportunities can be conducted by any member of FHLBank staff and must approved in advance by the Director of HRI. More than one member of FHLBank’s staff can participate in a single outreach opportunity. Outreach opportunities include, for example, an in-person meeting with a diverse individual who might be a good candidate for FHLBank’s board of directors and/or a meeting with a trade association to provide education on FHLBank’s desire for a diverse board; an in-person meeting with a diverse-owned supplier or having a booth at a diverse-owned supplier fair; participating in in-person meetings with a diverse-owned broker dealer or participating in the diverse-owned broker-dealer meeting; or participating in a career fair at a college or university that serves a predominantly diverse population or providing a presentation to a classroom at such a college or university. 

 

	
7.
	
Risk Management – Market, Credit and Liquidity Risks

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

 

Performance Range:

		
	
 
	
Score

	
Threshold
	
4.0

	
Target
	
4.5

	
Optimum 
	
5.0

 

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

		
	
Risk Management Category
	
Weighting

	
Liquidity Risk 
	
30%

	
Market Risk 
	
40%

	
Credit Risk 
	
30%

	
Total
	
100%

 

	
8.
	
Risk Management – Compliance, Business and Operations Risks

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

 

 

 

Performance Range:

		
	
 
	
Score

	
Threshold
	
3.0

	
Target
	
4.0

	
Optimum 
	
5.0

 

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

		
	
Risk Management Category
	
Weighting

	
Compliance Risk 
	
30%

	
Business Risk 
	
35%

	
Operations Risk 
	
35%

	
Total
	
100%

 

	
B.
	
2021-2023 Deferral Performance Period.

In order for Participants to be eligible to receive a Final Deferred Incentive Award for the 2021-2023 Deferral Performance Period, FHLBank must have a Market Value of Equity (MVE) of not less than 100 percent of FHLBank’s Total Regulatory Capital Stock (TRCS) outstanding (as defined in FHLBank’s Risk Management Policy), as of the last day of the Deferral Performance Period. Upon determining FHLBank has achieved this minimum requirement, the calculation of the Final Deferred Incentive Award shall be calculated by applying a six percent interest credit, compounded annually, to the Deferred Incentive. 

 

	
C.
	
Total Base Opportunity Metric Weights.

Total Base Opportunity Matrix

(As a percent of base)

				
	
Participant
	
Total Base Opportunity 1

	
 
	
Threshold
	
Target
	
Optimum

	
Level 1
	
 
	
 
	
 

	
CEO
	
37.5
	
75
	
112.5

	
Level 2
	
 
	
 
	
 

	
General Counsel
	
30
	
60
	
90

	
Level 3
	
 
	
 
	
 

	
Chief Financial Officer
	
27.5
	
55
	
82.5

	
Chief Administrative Officer
	
27.5
	
55
	
82.5

	
Level 4
	
 
	
 
	
 

	
Chief Information Officer
	
25
	
50
	
75

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

 

 

 

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

		
	
Objective
	
Weight

	
1.Adjusted Return Spread on Total Regulatory Capital
	
15%

	
2.GAAP Return Spread on Total Regulatory Capital
	
5%

	
3.Adjusted Net Income after Capital Charge
	
15%

	
4.GAAP Net Income after Capital Charge
	
5%

	
5.Member Product Utilization
	
10%

	
6.Diversity and Inclusion
	
10%

	
7.Risk Management - Market, Credit, Liquidity
	
20%

	
8.Risk Management - Compliance, Business, Operations 
	
20%

	
Total
	
100%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}]]