FHLBank shall maintain a daily average Total Regulatory Capital of 4.75 percent for 2021. If FHLBank’s daily average Total Regulatory Capital is below 4.75 percent for 2021, the Total Base Opportunity available to Participants for the Financial Performance Goals shall be adjusted as reflected in the table below. The Finanical Performance Goals include the Adjusted Return Spread on Total Regulatory Capital, GAAP Return Spread on Total Regulatory Capital, Adjusted Net Income after Capital Charge, and GAAP Net Income after Capital Charge goals, which represent 40% of the Base Opportunity Metric Weights.

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

Total Adjusted Outstanding Indebtedness. Any Indebtedness incurred and/or assumed in connection with such acquisition shall be added to the calculation of Total Adjusted Outstanding Indebtedness.

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

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

“Performance Criteria” mean the criteria (and adjustments) that the Administrator may select for an Award to establish performance goals for a performance period, which may include the following: net earnings or losses (either before or after one or more of interest, taxes, depreciation, amortization, and non-cash equity-based compensation expense); gross or net sales or revenue or sales or revenue growth; net income (either before or after taxes) or adjusted net income; profits (including but not limited to gross profits, net profits, profit growth, net operation profit or economic profit), profit return ratios or operating margin; budget or operating earnings (either before or after taxes or before or after allocation of corporate overhead and bonus); cash flow (including operating cash flow and free cash flow or cash flow return on capital); return on assets; return on capital or invested capital; cost of capital; return on stockholders’ equity; total stockholder return; return on sales; costs, reductions in costs and cost control measures; expenses; working capital; earnings or loss per share; adjusted earnings or loss per share; price per share or dividends per share (or appreciation in or maintenance of such price or dividends); regulatory achievements or compliance; implementation, completion or attainment of objectives relating to research, development, regulatory, commercial, or strategic milestones or developments; market share; economic US-DOCS\104428201.2

JFC’s partnership capital subject to mandatory redemption, net of reserves for anticipated withdrawals and partnership loans, as determined in accordance with GAAP​

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

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

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