Document:

Exhibit

    

______________________________________________________________________________________________________

MPF® CONSOLIDATED INTERBANK AGREEMENT

by and between

FEDERAL HOME LOAN BANK OF ATLANTA
FEDERAL HOME LOAN BANK OF BOSTON 
FEDERAL HOME LOAN BANK OF CHICAGO
FEDERAL HOME LOAN BANK OF DALLAS
FEDERAL HOME LOAN BANK OF DES MOINES
FEDERAL HOME LOAN BANK OF NEW YORK 
FEDERAL HOME LOAN BANK OF PITTSBURGH
FEDERAL HOME LOAN BANK OF SAN FRANCISCO
FEDERAL HOME LOAN BANK OF TOPEKA

Dated as of July 22, 2016

______________________________________________________________________________________________________

	
					
	“Mortgage Partnership Finance,” “MPF,” and “eMPF” are registered trademarks of the Federal Home Loan Bank of Chicago.
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TABLE OF CONTENTS
	
						
	MPF® CONSOLIDATED INTERBANK AGREEMENT
	 
	1
	

	RECITALS    
	 
	 
	 
	1
	

	ARTICLE I. DEFINITIONS    
	 
	1
	

	Section 1.1.
	 
	Certain Definitions
	 
	1
	

	ARTICLE II. FHLB PARTICIPATION IN THE MPF PROGRAM
	 
	1
	

	Section 2.1.
	 
	Participation in the MPF Program
	 
	1
	

	Section 2.2.
	 
	Applicability of Agreement
	 
	2
	

	Section 2.3.
	 
	FHLB Guide
	 
	2
	

	ARTICLE III. MPF PROVIDER RESPONSIBILITIES
	 
	3
	

	Section 3.1.
	 
	Services of the MPF Master Servicer
	 
	3
	

	Section 3.2.
	 
	Administration of Non-Member Servicers
	 
	4
	

	Section 3.3.
	 
	Loan Funding and Reporting Systems
	 
	4
	

	Section 3.4.
	 
	Reports
	 
	4
	

	Section 3.5.
	 
	MPF Program System Enhancements
	 
	4
	

	Section 3.6.
	 
	Quality Control and Loss Mitigation
	 
	4
	

	Section 3.7.
	 
	Financial Reporting and Controls
	 
	5
	

	Section 3.8.
	 
	Support of MPF Bank PFIs
	 
	5
	

	Section 3.9.
	 
	Services of the Custodian
	 
	5
	

	Section 3.10.
	 
	Service Level Commitments
	 
	5
	

	ARTICLE IV. MPF BANK RESPONSIBILITIES
	 
	5
	

	Section 4.1.
	 
	Administration of the MPF Program
	 
	5
	

	Section 4.2.
	 
	Management of Assets
	 
	5
	

	Section 4.3.
	 
	Eligibility and Creditworthiness of PFIs
	 
	6
	

	Section 4.4.
	 
	Relationship of the Parties; Restrictions on Transfers
	 
	6
	

	Section 4.5.
	 
	Loan Loss Reserves
	 
	6
	

	Section 4.6.
	 
	Extent of MPF Bank Responsibilities
	 
	6
	

	ARTICLE V. PROGRAM LOAN FUNDING AND PRICING
	 
	6
	

	Section 5.1.
	 
	Execution of Master Commitments
	 
	6
	

	Section 5.2.
	 
	Pricing
	 
	7
	

	Section 5.3.
	 
	Delivery Commitments
	 
	7
	

	Section 5.4.
	 
	Alternative Pricing by MPF Bank and Related Delivery Commitments
	 
	7
	

	Section 5.5.
	 
	Transactional Relationships
	 
	8
	

	 
	 
	 
	 
	 

        
	
			
	 
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	ARTICLE VI. SERVICING TRANSFERS BETWEEN PFIS OF DIFFERENT MPF BANKS
	 
	8
	

	Section 6.1.
	 
	Transfers of Servicing
	 
	8
	

	Section 6.2.
	 
	MPF Provider Reliance
	 
	9
	

	ARTICLE VII. MORTGAGE PARTICIPATIONS AMONG MPF BANKS
	 
	9
	

	Section 7.1.
	 
	Sale and Purchase of Participations Among MPF Banks
	 
	9
	

	Section 7.2.
	 
	Participation Provisions
	 
	10
	

	Section 7.3.
	 
	Participant Bank’s Representation
	 
	14
	

	Section 7.4.
	 
	Lead Bank’s Representations
	 
	14
	

	Section 7.5.
	 
	Covenants
	 
	14
	

	Section 7.6.
	 
	Participant Bank’s Default
	 
	14
	

	Section 7.7.
	 
	Lead Bank’s Default
	 
	15
	

	ARTICLE VIII. ADDITIONAL PRODUCTS AND PROVIDER PROGRAM LOANS
	 
	15
	

	Section 8.1.
	 
	Use of Additional Products and Provider Program Loans
	 
	15
	

	Section 8.2.
	 
	Assignment of Master Commitments
	 
	15
	

	Section 8.3.
	 
	Sponsored Accounts
	 
	15
	

	Section 8.4.
	 
	Transfer of Servicing of Provider Program Loans
	 
	15
	

	Section 8.5.
	 
	Participating in Additional Products
	 
	15
	

	ARTICLE IX. SERVICES FEES
	 
	16
	

	Section 9.1.
	 
	MPF Membership Fee
	 
	16
	

	Section 9.2.
	 
	Transaction Services Fee
	 
	16
	

	Section 9.3.
	 
	Additional Services Fees
	 
	16
	

	Section 9.4.
	 
	Counterparty Fees
	 
	16
	

	ARTICLE X. MARKETING AND TRAINING
	 
	16
	

	Section 10.1.
	 
	MPF Program Marketing to Members
	 
	16
	

	Section 10.2.
	 
	Training
	 
	16
	

	ARTICLE XI. MPF PROGRAM REPRESENTATIONS AND COVENANTS
	 
	17
	

	Section 11.1
	 
	Risk of Loss
	 
	17
	

	Section 11.2.
	 
	Default by PFIs; Enforcement
	 
	17
	

	Section 11.3.
	 
	Use of Intellectual Property
	 
	17
	

	Section 11.4.
	 
	Authorization and Enforceability
	 
	17
	

	Section 11.5.
	 
	MPF Provider’s Representations and Warranties
	 
	17
	

	Section 11.6.
	 
	Use of Proprietary Information and Confidentiality
	 
	18
	

	Section 11.7.
	 
	Additional Covenants
	 
	18
	

        
	
			
	 
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	ARTICLE XII. INDEMNIFICATION AND EXCULPATION
	 
	18
	

	Section 12.1.
	 
	MPF Bank’s Indemnification Obligations
	 
	18
	

	Section 12.2.
	 
	MPF Provider’s Indemnification Obligations
	 
	19
	

	Section 12.3.
	 
	Participant Bank’s and Lead Bank’s Indemnification Obligations
	 
	19
	

	Section 12.4.
	 
	Additional Product Indemnification Obligations
	 
	20
	

	Section 12.5.
	 
	Engagement in the MPF Program Exclusion From Indemnification
	 
	20
	

	Section 12.6.
	 
	Exculpations
	 
	20
	

	ARTICLE XIII. TERM AND TERMINATION
	 
	21
	

	Section 13.1.
	 
	Term of Agreement and Termination
	 
	21
	

	Section 13.2.
	 
	Events of Default
	 
	21
	

	Section 13.3.
	 
	Termination and Other Remedies
	 
	22
	

	Section 13.4.
	 
	Obligations Regarding PFIs; Support for Program Loans
	 
	22
	

	Section 13.5.
	 
	Survival
	 
	23
	

	Section 13.6.
	 
	Termination Relating to Approved Non-Member Servicers
	 
	23
	

	ARTICLE XIV. MISCELLANEOUS
	 
	23
	

	Section 14.1.
	 
	Notices
	 
	23
	

	Section 14.2.
	 
	The Guides and Other Documents
	 
	23
	

	Section 14.3.
	 
	Addresses
	 
	23
	

	Section 14.4.
	 
	Effect of Agreement
	 
	23
	

	Section 14.5.
	 
	Execution in Counterparts; Delivery of Signatures
	 
	23
	

	Section 14.6.
	 
	Governing Law
	 
	24
	

	Section 14.7.
	 
	Severability of Provisions
	 
	24
	

	Section 14.8.
	 
	Successors and Assigns; No Third-Party Beneficiaries
	 
	24
	

	Section 14.9.
	 
	Waivers and Amendments
	 
	24
	

	Section 14.10.
	 
	References to Sections, Exhibits and Agreement; Captions
	 
	24
	

	Section 14.11.
	 
	Specific Performance
	 
	25
	

	Section 14.12.
	 
	Mediation of Disputes; Jurisdiction and Venue
	 
	25
	

	Section 14.13.
	 
	No Joint and Several Liability; Necessary Parties
	 
	25
	

	Section 14.14
	 
	Amendment and Restatement
	 
	25
	

	Section 14.15.
	 
	Equal Treatment of MPF Banks
	 
	26
	

	ARTICLE XV. SIGNATURES
	 
	27
	

        
	
			
	 
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	1731216.4

                                    
                                                    

MPF® CONSOLIDATED INTERBANK AGREEMENT

This MPF Consolidated Interbank Agreement is entered into this 22nd day of July, 2016, (the “Effective Date”) by and among each of the Federal Home Loan Banks that execute this Agreement (each an “MPF Bank” and collectively the “MPF Banks”) and the Federal Home Loan Bank of Chicago in its capacity as the “MPF Provider”.  Each of the MPF Banks and the MPF Provider shall hereinafter be referred to as a “Party” and collectively the “Parties”.

RECITALS

WHEREAS, the MPF Program is a program under which MPF Banks purchase residential mortgage loans originated pursuant to the requirements of the Guides from PFIs;

WHEREAS, each MPF Bank has entered into a separate Services Agreement, with the Federal Home Loan Bank of Chicago, in its capacity as the MPF Provider;  

WHEREAS, the MPF Banks entered among themselves and with the MPF Provider into a Liquidity Option and Master Participation Agreement;

WHEREAS, the MPF Banks also entered among themselves and with the MPF Provider into Servicing Transfer Agreements;

WHEREAS, the MPF Banks desire to continue their participation in the MPF Program and to consolidate the MPF Agreements into this Agreement, to amend the provisions of the MPF Agreements in part and to transfer certain provisions of the MPF Agreements relating to operating and support procedures to the FHLB Guide, with the intention that this Agreement and the FHLB Guide supersede the MPF Agreements; and

WHEREAS, the MPF Banks intend that each Federal Home Loan Bank that desires to participate in the MPF Program become a Party to this Agreement.

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises and agreements herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereto agree as follows:

ARTICLE I. DEFINITIONS

Section 1.1    Certain Definitions. 

All capitalized terms used in this Agreement, which includes the recitals, shall have the meanings set forth in the Glossary of the FHLB Guide or in the Guides or as defined in this Agreement. In case of any conflict as to the meaning of a capitalized term, the definition in the Glossary of the FHLB Guide shall control.

ARTICLE II. FHLB PARTICIPATION IN THE MPF PROGRAM

Section 2.1.    Participation in the MPF Program. 

                    
	
			
	 
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Each Federal Home Loan Bank that executes this Agreement hereby agrees to participate in the MPF Program as an MPF Bank and to offer, at its election, Program Loan products to its PFIs under the terms and conditions of this Agreement and the FHLB Guide.

Section 2.2.    Applicability of Agreement.

Each Party acknowledges and agrees that the terms of this Agreement and the FHLB Guide shall apply to all prior, existing and future Program Loans, Master Commitments, Delivery Commitments, participation rights and obligations and any Servicing transfer rights and obligations unless specified otherwise.

Section 2.3.    FHLB Guide.

Each Party acknowledges and agrees that the terms of the FHLB Guide, as amended, restated, replaced or otherwise modified from time to time as specified in the FHLB Guide, are incorporated herein by reference and are made an integral part of this Agreement.

(a)    Amendments or Supplements. The FHLB Guide may be amended or supplemented from time to time as follows:

(1) Non-Substantive Revisions.  Prior to issuing any non-Substantive Revisions to the FHLB Guide, the MPF Provider will consult with the Active MPF Banks after distributing a draft of the proposed non-Substantive Revisions to the Active MPF Banks for review. The MPF Provider will use commercially reasonable best efforts to balance differences of opinions among the Active MPF Banks, taking into account the direction or purpose of the overall MPF Program as established by the MPF Governance Committee, and abide by any additional obligation of the MPF Provider in determining whether and how to incorporate or address any comments from the Active MPF Banks concerning any non-Substantive Revisions.  Upon receipt of any draft non-Substantive Revisions to the FHLB Guide, the Active MPF Bank must respond within fifteen (15) Business Days unless a longer time for review and approval is allowed in the transmittal of the draft revisions, or otherwise approved by the MPF Provider in writing; provided, however, that non-Substantive Revisions which must be made to the FHLB Guide to comply with FHFA rules or regulations, third-party investors requirements, Applicable Law, or external matters beyond the control of the MPF Provider, may have a shorter review period, if needed to achieve compliance, but not less than two (2) Business Days (and, for the avoidance of doubt the MPF Provider shall be permitted to make any such revision notwithstanding whether the consent of the Active MPF Banks is obtained). An Active MPF Bank’s review of draft FHLB Guide non-Substantive Revisions and opportunity to comment will be considered completed if there is no response from the Active MPF Bank within the time period specified herein, in the transmittal or otherwise specified in writing by the MPF Provider.  The MPF Provider may elect to publish the non-Substantive Revisions without additional review by the Active MPF Banks or, if the MPF Provider deems it appropriate, to provide the MPF Banks an additional review period.  Any comments sent by any MPF Bank after publication of any revisions to the FHLB Guide will be logged in by the MPF Provider and considered for inclusion when future revisions are made to the FHLB Guide. If an Active MPF Bank determines the proposed revision should be classified as a Substantive Revision, that Active MPF Bank must object to the non-Substantive Revision classification within two (2) Business Days from receipt of the proposed revision. The MPF Provider shall then (i) request the Active MPF Banks to review the proposed revision as a Substantive Revision pursuant to Section 2.3(a)(2) or (ii) refer the proposed revision to the MPF Governance Committee for further action. If the MPF Provider elects a Substantive Revision review, two (2) Business Days will be deducted from the review time provided in Section 2.3(a)(2).
    

                    
	
			
	 
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(2) Substantive Revisions. Except for FHLB Guide revisions subject to Section 2.3(a)(3), Substantive Revisions may be made only with the approval of a super majority of the Active MPF Banks, which is defined as 66% of the Active MPF Banks (rounded up to the nearest whole number), (which approval may not be unreasonably withheld or delayed) after distributing a draft of the proposed Substantive Revisions to the Active MPF Banks for review.  Upon receipt of any draft Substantive Revisions to the FHLB Guide, each Active MPF Bank must respond within ten (10) Business Days unless a longer time for review and approval is allowed in the transmittal of the draft Substantive Revisions or otherwise approved by the MPF Provider in writing. The MPF Provider shall be permitted to make any changes which must be made to the FHLB Guide to comply with FHFA rules or regulations, third-party investors requirements, Applicable Law, or external matters beyond the control of the MPF Provider without the majority approval of the Active MPF Banks; however, the MPF Provider shall circulate such revisions to the Active MPF Banks for review as provided for non-Substantive Revisions. No response or no substantive objection by an Active MPF Bank to a proposed Substantive Revision within the timeframe specified shall be considered an approval by such Active MPF Bank of the proposed Substantive Revision. In the event that circulation of additional draft Substantive Revisions are necessary, each Active MPF Bank shall respond within five (5) Business Days unless a longer time for review and approval is allowed in the transmittal of the draft Substantive Revisions or otherwise approved by the MPF Provider in writing.  For the avoidance of doubt, any proposed revision to an Appendix to the FHLB Guide, including without limitation, to any forms or the Supplemental Information, shall be deemed a non-Substantive Revision. 

(3) Revisions to MPF Membership Fee and Transaction Services Fee. Any FHLB Guide revisions related to the MPF Membership Fee or the Transaction Services Fee specified in ARTICLE IX will be decided by the MPF Governance Committee.

(b)    Applicability of Amendments and Supplements. Unless otherwise specified, all amendments and supplements to the FHLB Guide shall apply to all existing Program Loans, Participation Interests, Master Commitments and Delivery Commitments.  

ARTICLE III.  MPF PROVIDER RESPONSIBILITIES

Section 3.1.    Services of the MPF Master Servicer.

(a)    The MPF Provider shall act as the Master Servicer for each MPF Bank with respect to all Program Loans funded or purchased by the MPF Bank pursuant to the MPF Program.  The MPF Provider may discharge this duty by entering into a Master Servicing Agreement with any entity which the MPF Provider deems qualified to act as the MPF Master Servicer. The MPF Provider shall have direct and primary responsibility to the MPF Bank for the performance of the duties of the MPF Master Servicer under the Master Servicing Agreement.  The MPF Provider shall perform or cause to be performed the master servicing duties specified in the FHLB Guide, which shall be done in compliance with the provisions of the PFI Agreements, the Guides, and the Servicing Agreements.

(b)    As part of its master servicing duties hereunder, the MPF Provider, for the benefit of each MPF Bank, shall use commercially reasonable efforts to enforce the obligations of the MPF Master Servicer under the Master Servicing Agreement in the same manner as the MPF Provider would act if the MPF Provider were the owner of the related Program Loans.  Notwithstanding the MPF Provider’s delegation of master servicing obligations to the MPF Master Servicer pursuant to the Master Servicing Agreement, the MPF Provider shall not be relieved from its master servicing obligations hereunder, and the MPF Provider shall remain obligated and primarily liable to the MPF Bank for the master servicing of the Program Loans in accordance with the provisions of this Agreement; provided, however, that the MPF Provider’s liability 

                    
	
			
	 
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	1731216.4

                                                                                        

arising from or related to its master servicing obligations under this Section 3.1 shall be limited solely to liability resulting from the MPF Provider’s or MPF Master Servicer’s negligence or willful misconduct.

Section 3.2.    Administration of Non-Member Servicers.

(a)    Election of Service.  Each MPF Bank may elect, as part of the master servicing duties, that the MPF Provider administer Approved Non-Member Servicers on behalf of the MPF Bank in accordance with this Section 3.2 and as specified in the FHLB Guide.  The MPF Bank shall indicate its election by consenting to the transfer of Servicing to an Approved Non-Member Servicer in accordance with the FHLB Guide.

(b)    Administration of Approved Non-Member Servicers.  The Parties agree that the MPF Provider shall administer Approved Non-Member Servicers on behalf of and for the benefit of the MPF Banks in accordance with the provisions of this Agreement and the FHLB Guide.  

(c)    Exercise of Administrative Authority.  The MPF Provider agrees to exercise the authority granted to it under this Agreement and in the FHLB Guide to administer Approved Non-Member Servicers with appropriate consultation with the MPF Banks that own the affected Program Loans in accordance with the FHLB Guide, in the same manner and with the same care that the MPF Provider would exercise if it owned the assets.  The MPF Provider will enforce the Servicing Agreements for the benefit of the MPF Banks that own the Program Loans that are serviced by the Approved Non-Member Servicers. 

(d)    Costs of Enforcement. Any and all liabilities, costs, expenses and disbursements (including, without limitation, reasonable attorneys' fees and other legal expenses) under this Section 3.2 incurred by any of the Parties in any effort to collect any amounts payable hereunder by another Party, shall be paid by the defaulting Party upon demand of the collecting Party whether or not suit is filed, together with interest thereon from the date due until paid at the MPF Bank Default Rate.  

Section 3.3.    Loan Funding and Reporting Systems.  

The Parties agree that the MPF Provider shall maintain Program Loan purchase funding and reporting systems for use by the MPF Banks as specified in the FHLB Guide.  

Section 3.4.     Reports.

The MPF Provider agrees to provide the MPF Banks or their PFIs, as applicable, certain reports including PFI reports, management reports, online inquiries and electronic data transmissions as set forth in the FHLB Guide.

Section 3.5.    MPF Program System Enhancements.

The Parties agree that changes and enhancements to the MPF Systems and Customized Enhancements shall be implemented as specified in the FHLB Guide.

Section 3.6    Quality Control and Loss Mitigation.

The MPF Provider will perform the same level of quality control review and loss mitigation oversight for the Program Loans acquired from the MPF Bank’s PFIs as the MPF Provider would perform if they were 

                    
	
			
	 
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	1731216.4

                                                                                        

its own Program Loans as provided in the FHLB Guide. The Parties agree that quality control reviews for Program Loans shall be in accordance with the FHLB Guide.

Section 3.7.    Financial Reporting and Controls.

The MPF Provider shall provide such reports on its financial reporting and controls as specified in the FHLB Guide.

Section 3.8.    Support of MPF Bank PFIs. 

The MPF Provider shall be responsible for providing the Operational Matters support to all MPF Banks’ PFIs by establishing an MPF Service Center. The MPF Provider shall ensure that the MPF Service Center is adequately staffed to service the MPF Bank PFIs in a commercially reasonable manner and with no less service than the MPF Provider would have provided if they were its own PFIs. The MPF Service Center operations shall be as described in the FHLB Guide.

Section 3.9.    Services of the Custodian.

The MPF Provider shall act as the custodian for the MPF Bank with respect to all Program Loans funded or purchased by the MPF Bank pursuant to the MPF Program.  The MPF Provider may discharge this custodian duty with the authority and rights provided to it and subject to the requirements specified in the FHLB Guide.  The MPF Provider’s authority and rights shall include its ability to delegate, to one or more entities, its duties and obligations as custodian under the MPF Program.  The MPF Provider shall have direct and primary responsibility to the MPF Bank for the performance of the duties of the Master Custodian under the Master Custodian Agreement.

Section 3.10.    Service Level Commitments. 

The MPF Provider agrees that it shall perform the services specified in this Agreement in accordance with the service levels set forth in the FHLB Guide.

ARTICLE IV. MPF BANK RESPONSIBILITIES

Section 4.1.    Administration of the MPF Program.  

Each MPF Bank agrees to administer its PFI Agreements in accordance with their terms, including the Guides, the FHLB Guide and all other incorporated documents.  Each MPF Bank acknowledges that the MPF Provider and other MPF Banks have an interest in consistent implementation of the MPF Program, and as the drafter of the documents related to the MPF Program, the MPF Provider can provide an authoritative interpretation of such documents in the event of conflict with a PFI over their meaning. The obligations of each MPF Bank under this Section 4.1 shall survive termination of this Agreement.

Section 4.2.    Management of Assets. 

The PFIs that elect to service Program Loans are obligated under the terms of the PFI Agreements to perform all customary Servicing functions, including loss mitigation and property disposition, with respect to the Program Loans.  Each MPF Bank shall have the responsibility for exercising commercially reasonable efforts to enforce the terms of the PFI Agreement and its PFIs’ compliance with the Guides, on behalf of itself, the MPF Provider and such other parties identified in the FHLB Guide. 

                    
	
			
	 
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	1731216.4

                                                                                        

Section 4.3.    Eligibility and Creditworthiness of PFIs.

Unless otherwise stated in this Agreement, the approval of PFIs shall be as set forth in the FHLB Guide. Each MPF Bank shall be responsible for evaluating the eligibility, including the creditworthiness, of each of its PFIs for participation under the MPF Program for both Bank Program Loans and Provider Program Loans. However, any MPF Bank that has acquired or acquires a participation in Bank Program Loans or acquires Program Loans from MPF Bank PFIs shall be responsible for its own credit decision with respect to its investment in such assets. Consistent with applicable law and regulation and as provided in the FHLB Guide, each MPF Bank shall promptly provide notice to the MPF Provider of any material adverse change in the financial condition of any such MPF Bank’s PFIs of which it becomes aware and that such MPF Bank reasonably believes could result in the PFI’s breach of the PFI Agreement. 

Section 4.4.    Relationship of the Parties; Restrictions on Transfers.

(a)    Each MPF Bank will receive and hold all receipts and collections with respect to the Program Loans funded through or purchased from such MPF Bank’s PFIs, for the benefit of itself and any other Participants, in accordance with their respective interests in the Program Loans.  Except to the extent of its obligations under Section 3.9, the MPF Provider shall have no fiduciary duty to any MPF Bank.  Except to the extent of its obligations under Section 13.4 of this Agreement, each MPF Bank shall have no fiduciary duty to the MPF Provider.  

(b)    Notwithstanding the foregoing, each MPF Bank agrees that it will not sell or transfer any of its interests in Program Loans or its rights under this Agreement, or any portion thereof, except (i) to another FHLB or member or housing associate of an FHLB, (ii) to an institutional third party investor approved of in writing by the MPF Provider, which approval shall not be unreasonably withheld, conditioned or delayed or (iii) to the PFIs providing the credit enhancement for such Program Loans; provided, however, that servicing must be provided by a PFI or an MPF Program approved Servicer, and unless such covenants and obligations have been assigned to another MPF Bank or other approved investor in such Program Loans, such MPF Bank shall continue to monitor the creditworthiness of its PFIs and, when appropriate to protect the interests of the holders of the Program Loans, obtain a perfected security interest in collateral to secure any of its PFIs’ obligations under their respective PFI Agreements.  The MPF Provider will continue to provide MPF Product specific reports.

Section 4.5.    Loan Loss Reserves. 

Each MPF Bank shall maintain its own respective loan loss reserves with respect to the Program Loans.

Section 4.6.    Extent of MPF Bank Responsibilities. 

Unless specified otherwise, each MPF Bank’s responsibilities under this ARTICLE IV are only to the MPF Provider and not to any other MPF Bank. 

ARTICLE V. PROGRAM LOAN FUNDING AND PRICING

Section 5.1.    Execution of Master Commitments.

                    
	
			
	 
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	1731216.4

                                                                                        

Each MPF Bank agrees to enter into each Master Commitment in accordance with the requirements of the FHLB Guide. 

Section 5.2.    Pricing.

(a)    Pricing of Program Loans.  Each MPF Bank may use the Pricing Process as published by the MPF Provider in the FHLB Guide for setting the prices of the Program Loans which such MPF Bank acquires under the MPF Program or which its PFIs sell under any Additional Product on any Business Day.  As long as the Pricing Process provides for the MPF Provider to publish suggested base prices for Bank Program Loans, (a) the MPF Provider will utilize a specified pricing methodology and assumptions approved by the MPF Governance Committee to determine such suggested base prices and (b) an MPF Bank will be deemed to have adopted such suggested base prices if such MPF Bank makes no adjustments to the suggested base prices during the period specified in the FHLB Guide. 

(1) Under the Pricing Process, each MPF Bank shall be responsible for, and the following shall be deemed to be in the control of each MPF Bank: 

(i)  setting its own prices for Delivery Commitments whether by adjustment to or adoption of suggested base prices; 
         (ii)  adopting a suggested base price as such MPF Bank’s price; 
                     (iii)  the accuracy of data input by such MPF Bank; 
                     (iv)  any errors or omissions by such MPF Bank in inputting data; and 
                      (v)  such MPF Bank’s use of the Pricing Process.  

(2)  Under the Pricing Process, the MPF Provider shall be responsible for, and the following shall be deemed to be in the control of the MPF Provider:

           (i)  employing the prices set by each MPF Bank for the indicative prices it posts to the eMPF website in accordance with the FHLB Guide; 
(ii)  employing the prices set by each MPF Bank in the issuance of Delivery Commitments under such MPF Bank’s Master Commitments; and
(iii) publishing pricing for Provider Program Loans in accordance with the FHLB Guide.

Section 5.3.    Delivery Commitments.

(a)    As provided in the Guides, the MPF Service Center will publish Rate and Fee Schedules for each MPF Bank’s PFIs employing the prices set by such MPF Bank. Rate and Fee Schedules are subject to change as provided for in the Guides. Delivery Commitments will be managed as specified in the Guides and the FHLB Guide.  

Section 5.4.    Alternative Pricing by MPF Bank and Related Delivery Commitments.

(a)    Election of Alternative Pricing by MPF Bank.  Each MPF Bank may elect to create MPF Bank Base Price Schedules in accordance with the applicable provisions in the FHLB Guide.  An MPF Bank shall indicate its election to create MPF Bank Base Price Schedules by executing the election form specified in the FHLB Guide (and delivering such form to the MPF Provider) and upon such election such MPF Bank agrees to be subject to the alternative pricing provisions specified in the FHLB Guide and such MPF Bank commits to utilizing its MPF Bank Base Price Schedules on a daily basis and as a regular course of business except for emergencies or as otherwise agreed to by the MPF Provider and such MPF Bank.

                    
	
			
	 
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Section 5.5.    Transactional Relationships. 

(a)    Maintenance of Accounts at the MPF Provider.  Each MPF Bank will establish and maintain a Clearing Account with the MPF Provider.

(b)    Funding of Payment Obligations. The MPF Provider hereby consents to each MPF Bank withdrawing funds from such MPF Bank’s Clearing Account from time to time to satisfy the MPF Provider’s payment obligations under this Agreement. Each MPF Bank hereby consents to the MPF Provider withdrawing funds from such MPF Bank’s Clearing Account from time to time to satisfy the MPF Bank’s obligations to pay any fees and any other payment obligation under this Agreement.

(c)    Interest on Clearing Account. In accordance with the Master Transactions Agreement between the MPF Provider and each MPF Bank, the MPF Provider will credit to each MPF Bank’s Clearing Account interest on the outstanding balance thereof from time to time in accordance with the Master Transactions Agreement at the MPF Bank Rate.  In the event that any withdrawal from an MPF Bank’s Clearing Account shall cause the balance in such account to become negative, such deficit shall be deemed a loan from the MPF Provider to such MPF Bank, payable upon demand and bearing interest at the MPF Bank Default Rate as defined in the Glossary of the FHLB Guide. 

ARTICLE VI. SERVICING TRANSFERS BETWEEN PFIS OF DIFFERENT MPF BANKS

Section 6.1.    Transfers of Servicing.

(a)    The Parties hereby agree that any voluntary or involuntary transfers of Subject Servicing (i) between a PFI of an MPF Bank to a PFI of a different MPF Bank, (ii) from any Person acting as a receiver, trustee or conservator (or similar function) of a PFI of an MPF Bank to a PFI of a different MPF Bank, or (iii) from an MPF Bank to a PFI of a different MPF Bank, shall all be generally in accordance with this Agreement and specifically in accordance with this ARTICLE VI and the related provisions of the FHLB Guide.

(b)    Consent to Transfers of Servicing. The Parties agree to consent to any voluntary or involuntary transfer of Subject Servicing in accordance with the requirements specified in the FHLB Guide.  The Parties further agree that such consent shall constitute the order of both applicable MPF Banks to the MPF Provider to treat the Assuming PFI as the Servicer of the Serviced Mortgages delivered under the Master Commitment referenced therein, for the purposes of (i) debiting and crediting the Owner Bank’s and Assisting Bank’s respective Clearing Accounts with the MPF Provider with respect to the Serviced Mortgages, (ii) providing MPF Program reports to the applicable MPF Banks with respect to the Serviced Mortgages, and (iii) providing Services under this Agreement with respect to the Serviced Mortgages. 

(c)    Credit Enhancement Transfers.  The Parties agree that in relation to Conventional Bank Program Loans, Credit Enhancements shall be transferred in accordance with the requirements specified in the FHLB Guide.

(d)    Assisting Bank Obligations and Responsibilities.  The Parties agree that an Assisting Bank’s obligations and responsibilities in relation to the Subject Servicing of the Serviced Mortgages shall be in accordance with the requirements specified in the FHLB Guide.

                    
	
			
	 
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	1731216.4

                                                                                        

(e)    Review of Assisting Bank’s Books and Records.  The Parties agree that an Assisting Bank’s books and records may be reviewed, with respect to its obligations and responsibility for the Subject Servicing of the Serviced Mortgages, as provided in the FHLB Guide.

(f)    Agreement Regarding Use of Assisting Bank’s Clearing Account.  It is understood and agreed that the directions to the MPF Provider set forth in Section 6.1(b) hereof regarding debiting and crediting the Owner Bank’s and Assisting Bank’s Clearing Accounts with respect to the Serviced Mortgages require the MPF Provider to send general ledger entries to the Owner Bank’s and Assisting Bank’s respective general ledgers by means of electronic file reports to reflect the Owner Bank’s interests in, and the Selling PFI’s obligations with respect to, the Serviced Mortgages.  Further, it is agreed that the Owner Bank shall have no interest in the Assisting Bank's Clearing Account except as specifically set forth in this Agreement or as may be provided in separate agreements between the Owner Bank and the Assisting Bank. The Owner Bank and Assisting Bank agree that in the event that any debit to the Assisting Bank’s Clearing Account pursuant to this Agreement causes the balance of such account to become negative, the Owner Bank and the Assisting Bank shall reconcile the funds and the MPF Provider shall make the appropriate debits and credits to the Owner Bank’s and Assisting Bank’s Clearing Accounts to reflect such reconciliation, and further, if such deficit was not the result of the Assisting Bank’s error or omission, then, in such event, the Owner Bank shall be solely liable for any interest, fees or penalties assessed on such deficit by the MPF Provider; provided, however, that if the deficit was solely the result of the MPF Provider’s error or omission, no interest, fees or penalties shall be assessed on such deficit.

(g)    Termination of Assuming PFI’s Servicing Responsibilities. The Parties agree that termination of an Assuming PFI’s Subject Servicing shall be in accordance with the provisions of the FHLB Guide.

(h)    Value of Servicing Rights as Collateral for PFI Obligations.  The Parties agree that the value and extent of the Servicing Rights as collateral for an Assuming PFI’s obligations and the rights and obligations of any Party with respect to such collateral shall be determined in accordance with provisions of the FHLB Guide.

(i)    CE Collateral and Additional Collateral. The Parties agree that the extent and method that CE Collateral or additional collateral held by an Assisting Bank to secure an Assuming PFI’s obligations to the Assisting Bank and Owner Bank shall be applied or apportioned between the Assisting Bank and the Owner Bank in accordance with provisions of the FHLB Guide. It is understood and agreed that the Assisting Bank will comply with the Acquired Member Assets Regulation (12 CFR § 955.3 or any successor regulation) with respect to requiring the Assuming PFI to pledge collateral to secure its CE obligations.

Section 6.2.    MPF Provider Reliance.

The MPF Provider shall have the right to rely on any executed Consent to Sale or Consent to Transfer in dealing with the Owner Bank and the Assisting Bank specified therein, including, without limitation, in debiting and crediting their respective Clearing Accounts. 

ARTICLE II. MORTGAGE PARTICIPATIONS AMONG MPF BANKS

Section 7.1.    Sale and Purchase of Participations Among MPF Banks.

The Parties hereby agree that the sale and purchase of Participation Interests among MPF Banks and related support services provided by the MPF Provider shall be generally in accordance with this Agreement and specifically in accordance with this ARTICLE VII and the related provisions of the FHLB Guide. MPF 

                    
	
			
	 
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Banks may contract directly with each other for the sale and purchase of participations, provided, however, that the MPF Provider acknowledges such agreements and the services the MPF Provider provides to support such agreement align with the framework of this Agreement. 

Section 7.2.    Participation Provisions.

(a)    Participation Interest.  Subject to the provisions of this ARTICLE VII and the participation provisions specified in the FHLB Guide, the Lead Bank hereby sells and assigns to the Participant Bank, and the Participant Bank hereby purchases and accepts from the Lead Bank, a Participation Interest in its Designated Loans, the Notes and the other Loan Documents evidencing and securing such Designated Loans upon the terms and conditions stated herein as further evidenced by a Participation Certificate. THIS SALE IS MADE BY THE LEAD BANK WITHOUT RECOURSE, REPRESENTATION OR WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, EXCEPT AS MAY OTHERWISE BE EXPRESSLY CONTAINED HEREIN.    

(1) The execution of this Agreement, the performance of the terms or provisions hereof, and the performance or exercise of any obligations or rights pursuant hereto (including, without limitation, the Participant Bank’s purchase of and ownership interest in its Participation Interest in any Designated Loan and any Loan Documents) shall not cause the Participant Bank to be deemed the owner, holder, purchaser or seller of any security (as that term is defined in the Securities Act of 1933 or the Securities Exchange Act of 1934) issued, owned, purchased or sold by the Lead Bank, either as principal or as agent for the Borrower.

(2) The Participant Bank is purchasing and acquiring legal and equitable ownership of its Participation Interest in the Designated Loans and is not making a loan to the Lead Bank, and no debtor‐creditor relationship exists between them as a result of the terms of this ARTICLE VII.

(b)    Loan Fees.  The Participant Bank shall be entitled to its Participation Interest in any Loan Fees received by the Lead Bank in connection with any Designated Loan.  The Lead Bank will pay such amount to the Participant Bank promptly upon the Lead Bank’s receipt of such Loan Fees. The Participant Bank shall be entitled to its Participation Interest in any prepayment premium received by the Lead Bank in connection with a Designated Loan.

(c)    Participant Bank’s Right to its Share of Principal and Interest Payments.  After the purchase by the Participant Bank of its Participation Interest with respect to a Designated Loan and the funding of such Designated Loan to or for the benefit of the Borrower or acquisition by the Lead Bank, Participant Bank shall be entitled to its Participation Interest in all principal and interest received by Lead Bank with respect to such Designated Loan, subject to its obligation to pay its share of (i) the Credit Enhancement Fees payable under the applicable PFI Agreement, (ii) Agent Fees under the PFI Agreement, (iii) all other costs and expenses incurred or payable by the Lead Bank in respect of such Designated Loan or the Master Commitment or PFI Agreement to which such Designated Loan relates, and (iv) all Administrative Costs; however, the foregoing shall be subject to the allocation of Realized Losses as provided for in Section 7.2(e).  Furthermore, if at any time, all or any of the amounts payable by the Lead Bank described in clauses (i) through (iv) above shall be in excess of principal and interest received by the Lead Bank at such time, the Participant Bank will pay the Participant Bank’s Share of such amounts to the Lead Bank upon demand.

(d)    Collections, Disbursements to Participant Bank and Administration.  The collections, distribution, allocation or rescission of payments and any and all administration matters relating to the Participation Interest and the Designated Loans shall be as specified in the FHLB Guide.  Administration matters include powers granted to, and obligations of, the Lead Bank or MPF Provider to effectuate the 

                    
	
			
	 
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collections, distribution, allocation or rescission of payments relating to the Participation Interest and Designated Loans.

(e)    Allocation of Realized Losses.  

(1) Allocation of Realized Loss for Participations On or After January 1, 2010. This Section 7.2(e)(1) is applicable only to participations under Master Commitments entered into on or after January 1, 2010, and notwithstanding the transfer of the Participation Interest in the Designated Loans of any Master Commitment to the Participant, the Parties acknowledge that their respective First Loss Accounts must absorb any Realized Losses for that Master Commitment whether arising from the Designated Loans or not, further that all Realized Losses occurring after exhaustion of all Participants’ First Loss Accounts shall be paid by the applicable PFI to the extent of its Credit Enhancement obligation on a first come, first paid basis, and that recovery or recoupment of Realized Losses from performance-based Credit Enhancement Fees under certain MPF Program products is described in the FHLB Guide.  The administration of Realized Losses under this Agreement is illustrated in the FHLB Guide.  In addition and without limiting the forgoing, the Parties acknowledge and agree that Realized Losses for each Master Commitment subject to Participation Interest shall be shared as follows:  

(i)    first from any Reported Gain available for the Master Commitment;
(ii)    second from the Participants’ First Loss Accounts on a Pro Rata Basis until such accounts are exhausted;
(iii)    third from the Credit Enhancement obligation of the applicable PFI, if any; and
(iv)    lastly, any Residual Realized Losses shall be shared by the Participants on a Pro Rata Basis.

(2) Allocation of Realized Loss for Participations Prior to January 1, 2010. This Section 7.2(e)(2) is applicable only to participations under Master Commitments subject to Designated Delivery Commitments entered into prior to January 1, 2010, and notwithstanding the transfer of the Participation Interest in the Designated Loans of any Master Commitment to the Participant Bank, the Lead Bank and Participant Bank acknowledge that their respective First Loss Accounts must cover any Realized Losses for that Master Commitment whether arising from the Designated Loans or not, further that all Realized Losses occurring after exhaustion of all First Loss Accounts shall be paid by the applicable PFI to the extent of its Credit Enhancement obligation on a first Realized Loss come, first Realized Loss paid basis, and that recovery or recoupment of Realized Losses from performance-based Credit Enhancement Fees under certain MPF Program products is described in the FHLB Guide.  The administration of Realized Losses under this Agreement is illustrated in the FHLB Guide. In addition and without limiting the forgoing, the Parties acknowledge and agree that Realized Losses for each Master Commitment shall be shared as follows:  

   (i)    For MPF Program products with a First Loss Account based on a percentage of each Program Loan acquired under a Master Commitment, such as MPF 100, MPF 125 and MPF Plus, the Realized Losses arising from all the Program Loans acquired under the Master Commitment shall be paid from the following sources:

                    
	
			
	 
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(A) first from any Reported Gain available for the Master Commitment;

(B) second from the Participants’ First Loss Accounts on a Pro Rata Basis until all First Loss Accounts are exhausted;

(C) next from the Credit Enhancement obligation of the PFI (including any supplemental mortgage insurance paid for by the PFI); and

(D) lastly, any Residual Realized Losses shall be shared by the Participants based on their respective Participation Shares in the Master Commitment so that each Participant Bank and the Lead Bank pays an amount equal to the Residual Realized Losses multiplied by its respective Participation Share in the Master Commitment (on the Loss Allocation Date);

                (ii)    For MPF Program products with a First Loss Account that increases over time in proportion to the change in outstanding principal balance of the Program Loans acquired under a Master Commitment, such as Original MPF, the Realized Losses arising from all the Program Loans acquired under the Master Commitment shall be paid from the following sources:

(A) first from any Reported Gain available for the Master Commitment;

(B) second from the Participants’ First Loss Accounts based on the amounts of their respective First Loss Accounts for the Master Commitment so that each Participant Bank and the Lead Bank pays an amount equal to the Realized Losses multiplied by the ratio of its First Loss Account to the total First Loss Account for the Master Commitment (accrued through the Loss Allocation Date) until all First Loss Accounts of the Parties are exhausted;

(C) third from the Credit Enhancement obligation of the PFI; and

(D) lastly, any Residual Realized Losses shall be shared by the Participants based on their respective allocations to the total First Loss Account for the Master Commitment so that each Participant Bank and the Lead Bank pays an amount equal to the Residual Realized Losses multiplied by its respective percentage of the total First Loss Account for the Master Commitment (accrued through the Loss Allocation Date). For example, if a Master Commitment had a total First Loss Account of $100,000 (accrued through the Loss Allocation Date for a Realized Loss), and the Participant Bank’s FLA was $25,000 and the Lead Bank’s First Loss Account was $75,000, then the Participant Bank would pay 25% of the Residual Realized Loss and the Lead Bank would pay 75% of the Residual Realized Loss.

   (iii)     Government Loans.  The Program Loans acquired under certain Master Commitments subject to this ARTICLE VII may be Government Loans, and given the PFI’s obligation to absorb all Unreimbursed Servicing Expenses, the Parties do not anticipate incurring any Realized Losses in connection with such Master Commitments but in the event such Realized Losses are incurred and are not recovered from the PFI or any insurance or guaranty of the Government Loans, then the Parties agree that they will share such Realized Losses based on their respective Participation Shares in the Master Commitment so that each Participant Bank and the Lead Bank pays an amount equal to the Realized Losses multiplied by its respective Participation Share in the Master Commitment (on the Loss Allocation Date).

(3) Allocation in the Event of a Failure of a PFI or Servicer. The Parties agree that the allocation of losses in the event of a failure of a PFI or Servicer shall be as specified in the FHLB Guide.

                    
	
			
	 
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(f)     Termination of the Participant Bank’s Right to Acquire Additional Participation Interests.  At such time as this Agreement expires or terminates, the Participant Bank’s right to acquire Participation Interests in Designated Delivery Commitments will terminate; provided, however, that no such termination shall be effective with respect to any unfunded Designated Delivery Commitments existing on or prior to the date of such termination.

(g)    Interest in Loan Documents.  Provisions concerning interest in the Loan Documents shall be specified in the FHLB Guide.

(h)    Participation Support Services by the MPF Provider.  In addition to any support services provided for elsewhere in this Agreement, the MPF Provider shall provide to the Lead Bank and Participating Bank such support services in accordance with the provisions in the FHLB Guide. Support services include bookkeeping, furnishing of Participation Certificates, reports and administration services in connection with the Participation Interest.

(i)    Participation Share. The MPF Provider shall be able to rely on the written direction of the MPF Bank delivered in accordance with the FHLB Guide to confirm to any Participant participating in Program Loans acquired by the MPF Bank that such Participant is vested in its Participation Share in each such Program Loan upon its acquisition by the MPF Bank, without the need for further documentation, upon the deposit of funds equal to the Participant’s Participation Share to the MPF Bank’s Clearing Account. 

(j)    Costs and Expenses.

(1)    Administrative Costs and Costs of Enforcements.  The Participant Bank agrees to, promptly upon demand, indemnify and reimburse the Lead Bank for the Participant Bank’s Participation Interest of Administrative Costs which may be incurred or paid by the Lead Bank as specified in the FHLB Guide. The Participant Bank and the Lead Bank further agree that the costs of enforcement, which include all amounts specified in the FHLB Guide, incurred in any effort to collect any amounts payable under this ARTICLE VII shall be paid in accordance with this Agreement.

(2)     Payment Through Clearing Account.  To effect payment of any amount owed by the Participant Bank under this Section 7.2(j), the Lead Bank shall draw against the Participant Bank’s Clearing Account from time to time (whether or not any such draw shall cause the balance in the Participant Bank’s Clearing Account to become negative). In the event that any withdrawal from the Participant Bank’s Clearing Account shall cause the balance in such account to become negative, such deficit shall be governed by the provisions of Section 7.6.

(k)    Unconditional Obligations.  The Participant Bank and the Lead Bank agree that their respective obligations under this Agreement are, and at all times and in all events shall be, absolute, irrevocable and unconditional and shall not be affected by any intervening circumstances occurring after the date hereof or by, among other things, any of the following:

(1)    any act or omission of any kind by any PFI, any Borrower, any guarantor or any other person (except for a breach by the other party); or

(2)    any set off, counterclaim or defense to payment which the Participant Bank or Lead Bank may have or have had against the other party unrelated to this Agreement; or

                    
	
			
	 
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(3)    the existence of any event of default hereunder or under any of the Loan Documents, PFI Agreements, Master Commitments, the Guides or any other agreement (except this Agreement), instrument or document referred to in or executed and delivered pursuant to any thereof; or

(4)    any change of any kind whatsoever in the financial position or creditworthiness of the Lead Bank, the Participant Bank, any Borrower, any PFI, any guarantor or any other person.

Section 7.3.    Participant Bank’s Representations.

Each Participant Bank agrees to purchase all Participation Interests upon the representations and warranties specified in the FHLB Guide, which shall inure to the benefit of the Lead Bank.  Such representations and warranties include, but may not be limited to, the nature of investment in the Participation Interest, that the Participant Bank is a sophisticated investor, the extent that it assumes all risk of loss and that it understands that there is no public market for the Participation Interests.

Section 7.4.    Lead Bank’s Representations.

Each Lead Bank makes the following representations, which shall inure to the benefit of the Participant Bank: (i) the Lead Bank is the owner of the Program Loans and of the Participation Interests to be sold to Participant Bank hereunder, and the Lead Bank’s interest in the Program Loans and the Participation has not been encumbered or hypothecated; (ii) Lead Bank has received all necessary regulatory approvals to engage in the MPF Program; and (iii) each Participation Interest to be sold to the Participant Bank hereunder is free and clear of any adverse claim from any person or entity claiming by or through the Lead Bank.

Section 7.5.    Covenants.

Without limiting any other requirements in this ARTICLE VII, the Parties agree that the sale and purchase of Participation Interests shall also be subject to the Parties’ respective obligations under the covenants specified in the FHLB Guide, which include covenants relating to the funding of Participant Bank’s Participation Interest, allocations to First Loss Accounts and delivery of Confirmations. 

Section 7.6.    Participant Bank’s Default.
  
If the Participant Bank shall default in or otherwise fail to meet its obligations to provide Defaulted Funds, then the Lead Bank may advance funds to the PFI or the Borrower in an amount not exceeding the amount of such Defaulted Funds.  If the Lead Bank makes any such advance, then the Participant Bank shall immediately reimburse the Lead Bank upon demand.  Any sums due from the Participant Bank to the Lead Bank (including, without limitation, Defaulted Funds and the Participant Bank’s Share of costs and expenses under Section 7.2(j)) shall: (i) accrue interest, payable upon demand, at the MPF Bank Default Rate; and (ii) shall be paid in full, together with interest thereon, from any moneys (including, without limitation, all payments of principal, interest, expenses or fees, whether obtained from or on behalf of the Borrower, voluntarily or otherwise) which would have been payable to the Participant Bank in the absence of the Participant Bank’s default, prior to the Participant Bank’s receiving such moneys.  In addition, the Lead Bank may draw against funds from the Participant Bank’s Clearing Account from time to time to satisfy the Participant Bank’s obligations under this Section 7.6 (whether or not any such withdrawal shall cause the balance in the Participant Bank’s Clearing Account to become negative) upon giving the Participant Bank concurrent notice.  In such event, the provisions of Section 5.5 shall be applicable.  Such payments to the Lead Bank shall be first applied to accrued interest and then to the repayment of the amounts initially owed to the Lead Bank.  The Participant Bank shall remain obligated to fund all other amounts under this ARTICLE 

                    
	
			
	 
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VII.  The Lead Bank’s remedies and rights under this Agreement and the FHLB Guide are cumulative and concurrent and in addition to every other available right, power or remedy at law or in equity.

Section 7.7.    Lead Bank’s Default.

Any sums due from the Lead Bank to the Participant Bank shall be payable upon demand and shall accrue interest, payable upon demand, at the MPF Bank Default Rate.  In addition, the Participant Bank may draw against funds from the Lead Bank’s Clearing Account from time to time to satisfy the Lead Bank’s obligations under this Section 7.7 (whether or not any such withdrawal shall cause the balance in the Lead Bank’s Clearing Account to become negative) upon giving the Lead Bank concurrent notice.  In such event, the provisions of Section 5.5 shall be applicable. Such payments to the Participant Bank shall be first applied to accrued interest and then to the repayment of the amounts initially owed to the Participant Bank.  The Lead Bank shall remain obligated to fund all other amounts under this ARTICLE VII.  The Participant Bank’s remedies and rights under this Agreement and the FHLB Guide are cumulative and concurrent and in addition to every other available right, power or remedy at law or in equity.

ARTICLE VIII. ADDITIONAL PRODUCTS AND PROVIDER PROGRAM LOANS

Section 8.1.    Use of Additional Products and Provider Program Loans.

Each MPF Bank agrees to follow the requirements and obligations specified in this Agreement, the FHLB Guide and Guides when offering Additional Products and Provider Program Loans to its PFIs, including, but not limited to, requirements or obligations relating to monitoring, reporting or indemnification.

Section 8.2.    Assignment of Master Commitments. 

Each MPF Bank agrees to assign to the MPF Provider each Additional Product MC that such MPF Bank executes with its PFIs in accordance with the provisions specified in the FHLB Guide. 

Section 8.3.    Sponsored Accounts. 

Each MPF Bank shall establish a Sponsored Account for each Additional Product type of which its PFI is a Servicer of the Provider Program Loans delivered under an Additional Product MC. An MTA Addendum specific to the particular Additional Product shall be signed by such MPF Bank and the MPF Provider, and joined in by such MPF Bank’s PFI, as a condition of the PFI activating the respective Additional Product MC. Every Sponsored Account will be a non-interest bearing custodial principal and interest account for the benefit of the PFI pursuant to the respective MTA Addendum. Any overdraft of a Sponsored Account shall be governed by the applicable MTA Addendum and any costs or fees associated with the Sponsored Account are payment obligations of the MPF Bank and such payments will be effectuated pursuant to Section 5.5.

Section 8.4.    Transfer of Servicing of Provider Program Loans.  

The Parties agree that any transfers of servicing of Provider Program Loans or of Additional Products among PFIs from other MPF Banks’ districts will be governed by the FHLB Guide.

Section 8.5.    Participating in Additional Products.    

                    
	
			
	 
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(a)    MPF Bank’s Clearing Account. All Provider Program Loan repurchases, advances, account fees, indemnification payments and any other payments or fees due to the MPF Provider related to Additional Products are payment obligations of the applicable MPF Bank and such payments will be effectuated pursuant to Section 5.5. All Provider Program Loan purchases will be effectuated pursuant to Section 5.5.

(b)    No Liability. Without limiting any provision in this Agreement, each MPF Bank hereby disclaims and shall not assume liability for the performance by the MPF Provider of its obligations under any Additional Product agreements between the MPF Provider and an Additional Product counterparty and the MPF Provider is not assuming any liability for the performance by any MPF Bank of its obligations under this Agreement, any PFI Agreement and any Additional Product agreements between such MPF Bank and an Additional Product counterparty or its PFIs.

ARTICLE IX. SERVICES FEES

Section 9.1.    MPF Membership Fee.

Each MPF Bank agrees to pay a fee for the membership and participation in the MPF Program.  The amount of such fee and payment schedule shall be determined as set forth in the FHLB Guide.

Section 9.2.    Transaction Services Fee.

Each MPF Bank shall pay a monthly Transaction Services Fee to the MPF Provider as compensation for the Services to be provided to the MPF Bank.  The rate and amount of the Transaction Services Fee shall be determined as set forth in the FHLB Guide. 

Section 9.3.    Additional Services Fees.

In the event an MPF Bank requests the MPF Provider to provide any Additional Services other than the Services specified in the FHLB Guide as regular or standard services, such MPF Bank shall pay the fees for such Additional Services as provided in the FHLB Guide or as may be agreed to between such MPF Bank and the MPF Provider. 

Section 9.4.    Counterparty Fees.

The MPF Provider shall pay an MPF Bank a Counterparty Fee as set forth in the FHLB Guide. 

ARTICLE X. MARKETING AND TRAINING

Section 10.1.    MPF Program Marketing to Members.

The Parties agree that marketing of the MPF Program to Members shall be in accordance with the provisions of the FHLB Guide. 

Section 10.2.    Training.

The Parties agree that the responsibility for training of PFIs and the availability of training for PFIs or MPF Bank employees, which administer each MPF Bank’s responsibilities under the MPF Program, shall be in accordance with and as provided for in the FHLB Guide. 

                    
	
			
	 
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ARTICLE XI. MPF PROGRAM REPRESENTATIONS AND COVENANTS

Section 11.1.    Risk of Loss.  

Each MPF Bank assumes all risk of loss in connection with its investment in Program Loans, and its execution of each PFI Agreement and each Master Commitment except for any losses arising directly from the negligence or willful misconduct of the MPF Provider in its provision of the Services pursuant to this Agreement or breach of its fiduciary duties specified in Section 3.9; provided, however, that such assumption of risk is not intended to waive or release the liability of any person or entity that is not a party to this Agreement.  In the event that an MPF Bank approves any Approved Non-Member Servicer or non-PFI servicer to service Program Loans it owns, such MPF Bank assumes all the risk of loss in connection with such Approved Non-Member Servicer or non-PFI servicer’s discharge of its Servicing obligations; provided that nothing herein shall limit the ability of such MPF Bank to seek indemnification from such Approved Non-Member Servicer or non-PFI servicer for any breach of Servicing obligation under any agreement.

Section 11.2.    Default by PFIs; Enforcement. 

Each of the Parties is entitled to assume that no PFI default or event which, with the giving of notice or lapse of time, or both, would constitute such a default, has occurred and is continuing unless such Party (i) has actual knowledge of such default or event, or (ii) has been notified in writing that such a default or event has occurred.  For the avoidance of doubt, no duty to notify or inform Parties that are not directly affected by such default or event shall be implied by this Section 11.2. 

Section 11.3.    Use of Intellectual Property. 

Each MPF Bank covenants and agrees that the use of any and all intellectual property related to the MPF Program shall be in accordance with rights and requirements specified in the FHLB Guide.

Section 11.4.    Authorization and Enforceability. 

Each of the Parties represents to the MPF Provider and any other applicable Parties that (i) all necessary corporate and other action has been taken to authorize it to execute, and to perform its obligations under, this Agreement, and (ii) all necessary regulatory approvals to engage in the MPF Program have been obtained and (iii) this Agreement is the legal, valid and binding obligation of such Party, enforceable against it in accordance with its terms, subject to any applicable bankruptcy, insolvency, reorganization pursuant to the Federal Home Loan Bank Act, as amended, moratorium and other similar laws affecting the rights of creditors generally and general equitable principles.

Section 11.5.    MPF Provider’s Representations and Warranties.  

In addition to the above representations, the MPF Provider represents and warrants that it shall timely perform the Services in a commercially reasonable manner and with the same care, skill, prudence and diligence with which it would service and administer if it was its own portfolio of Mortgages. Further, the MPF Provider represents to each MPF Bank and warrants that the MPF Program is compliant with all applicable state and federal laws, including consumer laws, and rules and regulations; provided, however, that the MPF Provider makes no representations or warranties with respect to actions taken at the direction of, or matters within the control of, each MPF Bank including, but not limited to, transactions customized at the request or direction of such MPF Bank.  Further, the MPF Provider represents to each MPF Bank and 

                    
	
			
	 
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warrants that all copyrights, trademarks, service marks, patents and other intellectual property rights used in the MPF Program do not infringe upon the rights of any third parties. 

Section 11.6.    Use of Proprietary Information and Confidentiality.

Each Party has been and may hereafter be furnished with Confidential Information. Each Party agrees (i) to keep the Confidential Information confidential using reasonable means, not less than those used to protect its own Confidential Information, (ii) to not disclose the Confidential Information, without the prior written approval of the other Party to whom the Confidential Information relates (“Related Party”), to anyone other than to its officers or employees who have a need to know its contents to perform their duties in connection with the MPF Program, to any member of its Board of Directors, to its regulators, to any Participant or approved investor in Program Loans acquired from the MPF Bank or its PFIs, or to those third party agents who agree to be bound by the terms of this Section 11.6, as evidenced by a written statement or agreement in form and substance reasonably satisfactory to the Related Party, and (iii) upon completion of its use of the Confidential Information or at any time upon the Related Party’s request, to promptly return or destroy the Confidential Information, including all copies made thereof in any format and all notes pertaining to the same; provided, however, that each Party shall be permitted to retain a copy of any Confidential Information in accordance with its record retention policies and procedures or as required by law, regulation or court order.  The Party shall certify to the Related Party that all Confidential Information was properly returned or destroyed in accordance with this Section 11.6. For purposes of this Section 11.6, when transmitting or providing access to “nonpublic personal information” (as that term is defined in Title V of the Gramm-Leach-Bliley Act (15 U.S.C. § 6809)), each Party shall use a secure method that is generally accepted as preventing unauthorized access such as encrypted transmission or providing secure, password protected web-access.  Each Party further agrees that if it is served with process or any other governmental or regulatory request for the Confidential Information (excluding an examination request by the FHFA), it will immediately notify the General Counsel of the Related Party that disclosed such Confidential Information, prior to complying with such process, order or request, unless prohibited by applicable law, regulation or court order. Each MPF Bank agrees to provide the MPF Provider and any Related Party prompt notice of any breach or compromise of the security or confidentiality of any Confidential Information or nonpublic personal information. The MPF Provider shall notify any Related Party of any theft of hardware containing any Confidential Information or nonpublic personal information even if such information is encrypted. Upon such notice, the Related Party shall not disclose any information about the breach or attempted breach without the consent of the MPF Provider unless required by applicable law. 

Section 11.7.    Additional Covenants.

The Parties acknowledge and agree to all the additional MPF Program covenants, representations and warranties specified in the FHLB Guide. 

ARTICLE XII. INDEMNIFICATION AND EXCULPATION

Section 12.1.    MPF Bank’s Indemnification Obligations. 

(a)    Indemnification.  In addition to any other remedy under this Agreement, and with respect to each Program Loan owned by an MPF Bank, each MPF Bank agrees to indemnify, defend and hold harmless the MPF Provider, its affiliates and each stockholder, director, officer, employee and agent, if any, thereof from and against any and all loss, damage, liability or expense, including, without limitation, costs and reasonable attorneys’ fees and expenses, to which it may be put or which it may incur by reason of, or in connection with any of the following: 

                    
	
			
	 
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	1731216.4

                                                                                        

(1) any misrepresentation made by such MPF Bank in this Agreement, or any breach by such MPF Bank of its warranties or obligations set forth in this Agreement; 

(2) the collection, payment or transfer of cash or other funds between an Owner Bank and Assisting Bank, one of which is the indemnifying MPF Bank; 
(3) with respect to services provided under Section 3.2, any act or omission of an Approved Non-Member Servicer; 

(4) the origination, Servicing, loss mitigation, purchase or sale of a Bank Program Loan that the MPF Bank’s PFI sold or serviced or any breach or purported breach by a PFI that is a member of such MPF Bank, or the PFI’s predecessor in interest, of its representations or warranties, covenants, obligations, duties or responsibilities with respect to a Bank Program Loan; provided that the indemnification under this Section 12.1(a)(3) does not include any liability of the MPF Provider that arises directly and solely from: (i) gross negligence or willful misconduct by the MPF Provider or (ii) ordinary negligence of the MPF Provider in handling funds; or

(5) any act or omission of a non-PFI servicer in Servicing Program Loans, where such MPF Bank consents to the Servicing of such non-PFI servicer for any MPF product, and regardless of whether the MPF Provider acknowledges or consents to the Servicing.

(b)    Exclusions.  The MPF Bank indemnification under Section 12.1 (a) (1)-(2) does not include indemnification for the following: (1) consequential or punitive damages and (2) with respect to the MPF Provider’s obligation in its capacity as an Owner Bank or an Assisting Bank with respect to its corresponding Assisting Bank or Owner Bank.

Section 12.2.    MPF Provider’s Indemnification Obligations.

(a)    Indemnification. In addition to any other remedy under this Agreement, the MPF Provider agrees to indemnify, defend and hold harmless each MPF Bank, its affiliates and each stockholder, director, officer, employee and agent, if any, thereof from and against any and all loss, damage, liability or expense, including, without limitation, costs and reasonable attorneys’ fees and expenses, to which it may be put or which it may incur by reason of, or in connection with any and all of the following: (i) any misrepresentation made by the MPF Provider set forth in this Agreement; or (ii) any breach by the MPF Provider of any of its representations, warranties or obligations set forth in this Agreement.

(b)    Exclusions.  The MPF Provider’s indemnification under this Section 12.2 (a) does not include indemnification for consequential or punitive damages.

Section 12.3.    Participant Bank’s and Lead Bank’s Indemnification Obligations.

(a)    Participant Bank’s Indemnification.  In addition to any other remedy under this Agreement, any Participant Bank agrees to indemnify, defend and hold harmless the Lead Bank, its affiliates and each stockholder, director, officer, employee and agent, if any, thereof from and against any and all loss, damage, liability or expense, including, without limitation, costs and reasonable attorneys' fees and expenses, to which it may be put or which it may incur by reason of, or in connection with, any of the following: (i) any misrepresentation made by such Participant Bank in this Agreement; (ii) any breach by such Participant Bank of any of its warranties in this Agreement; or (iii) any failure by such Participant Bank to fulfill any covenants or agreements set forth in this Agreement.  

                    
	
			
	 
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	1731216.4

                                                                                        

(b)    Lead Bank’s Indemnification Obligation. In addition to any other remedy under this Agreement, each Lead Bank agrees to indemnify, defend and hold harmless each Participant Bank participating in a participation by such Lead Bank, such Participant Bank’s affiliates and each stockholder, director, officer, employee and agent, if any, thereof from and against any and all loss, damage, liability or expense, including, without limitation, costs and reasonable attorneys’ fees and expenses, to which it may be put or which it may incur by reason of, or in connection with, any and all of the following: (i) any misrepresentation made by the Lead Bank in this Agreement; (ii) any breach by Lead Bank of any of its warranties in this Agreement; or (iii) any failure by the Lead Bank to fulfill any covenants or agreements set forth in this Agreement or arising out of the sale or distribution of any of the Participation Certificates by it in violation of the Securities Act of 1933, as amended, or any applicable state securities or blue sky laws.

Section 12.4.    Additional Product Indemnification Obligations.  

(a)     In addition to any other remedy under this Agreement, and with respect to any Additional Product, each MPF Bank agrees to indemnify, defend and hold harmless the MPF Provider, its affiliates and each stockholder, director, officer, employee and agent, if any, thereof from and against any and all loss, damage, liability or expense, including, without limitation, costs and reasonable attorneys’ fees and expenses, to which it may be put or which it may incur by reason of, or in connection with any and all of the following:

(1) such MPF Bank’s breach of its obligations under any Addendum to the PFI Agreement, this Agreement or the FHLB Guide;

(2) the origination, Servicing, loss mitigation, purchase or sale of a Provider Program Loan that the MPF Bank’s PFI sold or serviced or any breach or purported breach by a PFI that is a member of such MPF Bank, or the PFI’s predecessor in interest, of its representations or warranties, covenants, obligations, duties or responsibilities with respect to an Additional Product; provided that the indemnification under this Section 12.4(a)(3) does not include any liability of the MPF Provider that arises directly and solely from: (i) gross negligence or willful misconduct by the MPF Provider or (ii) ordinary negligence of the MPF Provider in handling funds;

(3) any breach by such MPF Bank of its obligations under any Additional Product agreements between such MPF Bank and an Additional Product counterparty;

(4) any payments obligations owed by the MPF Provider to an Additional Product counterparty that a PFI is contractually responsible to pay to such MPF Bank under the PFI Agreement and fails to pay; or

(5) any act or omission of a non-PFI servicer in Servicing Program Loans, where such MPF Bank consents to the Servicing of such non-PFI servicer for any MPF product, and regardless of whether the MPF Provider acknowledges or consents to the Servicing. 

Section 12.5.     Engagement in the MPF Program Exclusion From Indemnification.
  
The Parties agree that any indemnification under this Agreement does not include indemnification for any loss, damage, liability or expense arising out of any litigation challenging the authority of the MPF Provider or any MPF Bank to engage in the MPF Program.

Section 12.6.    Exculpations.  

                    
	
			
	 
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	1731216.4

                                                                                        

The Parties agree that their respective exculpation rights and obligations relating to their engagement in the MPF Program, including as a Lead Bank, a Participant Bank, an Assisting Bank, an Owner Bank or the MPF Provider, shall be as specified in the FHLB Guide. 

ARTICLE XIII. TERM AND TERMINATION

Section 13.1    Term of Agreement and Termination.  

(a)    Unless terminated earlier as provided in this ARTICLE XIII, this Agreement shall continue in force until terminated, without cause, by a Party giving all other Parties at least one hundred eighty (180) days’ prior written notice; provided, however, that failure to give notice to any Party shall not affect notice given to another Party.  For avoidance of any doubt, written notice of termination shall only terminate this Agreement as between the MPF Bank providing such notice and all other existing Parties to this Agreement, and the Agreement shall remain in full force and effect among all such other existing Parties. If the MPF Provider provides written notice of termination to an MPF Bank, the written notice of termination shall only terminate this Agreement as between such MPF Bank and all other existing Parties to this Agreement, and the Agreement shall remain in full force and effect among all such other existing Parties. 

(b)    Notwithstanding the termination of this Agreement by any Party for any reason, the obligations of the terminating Party, the MPF Provider and any other Party thereby affected by the termination shall continue with respect to all Program Loans funded or purchased under this Agreement pursuant to Delivery Commitments issued prior to such termination, including, without limitation, the MPF Provider shall provide the services for each Program Loan acquired by an MPF Bank, and such MPF Bank shall pay the applicable Transaction Services Fees, continuously from the date of such termination until the earliest of:

(1) the Program Loan's principal and interest have been paid in full in accordance with the requirements of the PFI Agreement; or

(2) the Program Loan has been foreclosed or liquidated, the security property therefor properly disposed of, and the claim settled with the PFI; 

(3) an MPF Bank sells its Program Loans to another MPF Bank; or

(4) in accordance with the procedures set forth in the FHLB Guide, the MPF Provider’s obligations are (i) transferred to a third party by agreement of such MPF Bank and the MPF Provider, (ii) transferred to a third party on written direction of the FHFA or (iii) with the consent of the MPF Provider, assumed by such MPF Bank.

(c)    Upon the termination of this Agreement for any reason, each MPF Bank agrees to use commercially reasonable efforts to promptly return to the MPF Provider all marketing and operational materials previously provided by the MPF Provider, and no longer needed by such MPF Bank to fulfill its remaining obligations hereunder, unless other mutually acceptable arrangements have been made. 

Section 13.2.    Events of Default.  

It shall be an Event of Default under this Agreement if any Party, with respect to another Party, fails to perform its obligations or breaches any of its covenants under this Agreement and such failure to perform or breach is not cured (i) within sixty (60) days from the date the non-breaching party gives written notice 

                    
	
			
	 
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	1731216.4

                                                                                        

of such default, if the default is capable of being cured within such time limit, or (ii) within a reasonable time after notice if the cure is commenced within the sixty (60) day period and diligently pursued thereafter. 

Section 13.3    Termination and Other Remedies.  

(a)    Remedies for the MPF Bank’s Default. Without limiting the effect of Section 12.1 or Section 12.4, upon the occurrence of an Event of Default caused by any MPF Bank, (i) the MPF Provider shall have the right, subject to the requirements of Section 13.1(b), to terminate this Agreement with respect to such MPF Bank, and (ii) the MPF Bank shall pay to the MPF Provider an amount equal to the MPF Provider’s actual and direct damages arising from and accruing during the continuance of the Event of Default, but the MPF Bank shall have no responsibility for any consequential or punitive damages. 

(b)    Remedies for the MPF Provider’s Default. Without limiting the effect of Section 12.2, upon the occurrence of an Event of Default caused by the MPF Provider, each MPF Bank shall have the right, subject to the requirements of Section 13.1(b), to terminate this Agreement with respect to such MPF Bank. Until the MPF Provider’s obligations to provide the Services terminates as provided in Section 13.1(b), such MPF Bank shall continue to pay the Transaction Services Fee for the Services after a termination in accordance with the provisions of the FHLB Guide at the time of such termination. Further, the MPF Provider shall pay to such MPF Bank an amount equal to the MPF Bank’s actual and direct damages arising from the Event of Default, but the MPF Provider shall have no responsibility for any consequential or punitive damages.  

(c)    Trigger Event. Upon the occurrence of a Trigger Event, this Agreement shall terminate with respect to the applicable MPF Bank or MPF Banks, and the provisions of Section 13.1(b) shall apply.

Section 13.4    Obligations Regarding PFIs; Support for Program Loans.

(a)    An MPF Bank’s covenant to monitor the credit and maintain collateral to secure its PFIs’ obligations set forth in this Section 13.4 shall apply and shall survive the expiration or termination of this Agreement as well as the sale of the Program Loans by such MPF Bank unless such covenants and obligations have been assigned to another MPF Bank or other approved investor in such Program Loans in accordance with Section 4.4.

(b)    Each MPF Bank agrees (i) to notify the MPF Provider of any material adverse changes, of which it becomes aware, in the financial condition of those PFIs who service or provide credit enhancements for any Program Loans in which any other MPF Bank has an interest and authorizes the MPF Provider to share such information with the relevant MPF Banks or other Participants, and (ii) to share relevant credit assessments and information on those PFIs with the MPF Provider. 

(c)    Each MPF Bank agrees to obtain a perfected security interest in collateral for the benefit of itself and any Participants and/or Owner Banks, except when prohibited by law, as the MPF Bank reasonably determines may be necessary to secure the obligations of the MPF Bank’s PFIs under their respective PFI Agreements or any other credit agreement, securing each PFI’s obligations under its PFI Agreement.

(d)    Without limiting the rights of the MPF Provider and any other MPF Bank under this Agreement and the FHLB Guide, the MPF Provider shall not have an interest in any (i) other property taken as security for any other credit, loan or financial accommodation made or furnished to any PFI by any MPF Bank in which the Participant has no participation interest; (ii) property now or hereafter in the MPF Bank’s possession or under the MPF Bank’s control other than by reason of any PFI Agreement; or (iii) deposits or other indebtedness which may be or might become security for performance or payment of any obligations and 

                    
	
			
	 
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	1731216.4

                                                                                        

liabilities of any PFI under the PFI Agreement by reason of the general description contained in any instrument other than the PFI Agreement held by such MPF Bank or by reason of any right of setoff, counterclaim, banker’s lien or otherwise.  

Section 13.5    Survival. 

Without limiting any other express survival provisions contained in this Agreement, all representations and warranties and the indemnifications contained in this Agreement shall survive the termination of this Agreement.

Section 13.6    Termination Relating to Approved Non-Member Servicers.

The Parties agree that additional termination provisions relating to Approved Non-Member Servicers shall be in accordance with the provisions of the FHLB Guide.

ARTICLE XIV. MISCELLANEOUS

Section 14.1.    Notices.

Whenever notice is required under this Agreement or by applicable law, it must be given as provided in the FHLB Guide, unless otherwise expressly provided in this Agreement.  

Section 14.2.    The Guides and Other Documents.

The MPF Provider shall provide access to the Guides, including, without limitation, any amendments, restatements, replacements or other modifications thereto, or any pronouncements with respect thereto as provided in the FHLB Guide.

Section 14.3.    Addresses.  

For purposes of this Agreement, the address, telephone and facsimile numbers for the MPF Bank and the electronic transmission information for the MPF Provider and the MPF Banks are as set forth in the FHLB Guide.  Any change in notice addresses must be given in writing and given as provided in the FHLB Guide, but such change shall be effective only upon actual receipt.

Section 14.4.    Effect of Agreement.

The MPF Provider will have no obligation or responsibility to any MPF Bank except as specifically stated in this Agreement or the FHLB Guide. This Agreement constitutes the entire agreement among the Parties, and no representation, promise, inducement or statement of intent has been made by any Party which is not embodied in this Agreement or the incorporated FHLB Guide. For the avoidance of doubt, this Agreement is not intended to create rights and obligations between or among the MPF Banks unless specifically provided in this Agreement. In addition, the Parties agree that this Agreement is supplemented by any Custody Addendum and any Confidentiality Agreement with respect to LEVELS information. In the event of any conflict or inconsistency between the provisions of this Agreement and the provisions of the FHLB Guide, this Agreement shall control. 

Section 14.5.    Execution in Counterparts; Delivery of Signatures.  

                    
	
			
	 
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	1731216.4

                                                                                        

This Agreement, and any amendments, waivers, consents or supplements related hereto, may be executed in any number of counterparts and by different Parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all of which counterparts taken together shall constitute one and the same instrument.  Signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are attached to the same document.  Delivery of a signature page to, or an executed counterpart of, this Agreement (or any amendment, waiver, consent or supplement related hereto) by facsimile, email transmission of a scanned image, or other electronic means, shall be effective as delivery of an originally executed counterpart.

Section 14.6.    Governing Law.

This Agreement shall be construed and enforced in accordance with the statutory and common law of the United States of America.  To the extent federal law incorporates or defers to state law, or does not apply, the relevant state law shall be the law of the State of Illinois (without regard to conflicts of law principles) applicable to agreements to be performed in the State of Illinois.  

Section 14.7.    Severability of Provisions.

Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

Section 14.8.    Successors and Assigns; No Third-Party Beneficiaries.  

Subject to the terms of Section 4.4, this Agreement shall be binding upon and inure to the benefit of the MPF Provider and each MPF Bank and their respective successors and permitted assigns. Although the provisions of this Agreement may benefit Persons that are not Parties including, without limitation, PFIs, Members, Servicers or other Persons engaged in the MPF Program, none of them is an intended third-party beneficiary of this Agreement and they shall have no rights under this Agreement.  For the avoidance of any doubt, there are no intended or implied third-party beneficiaries to this Agreement.

Section 14.9.    Waivers and Amendments. 

No delay on the part of any Party in the exercise of any right, power or remedy shall operate as a waiver thereof, nor shall any single or partial exercise by one Party of any right, power or remedy preclude other or further exercise thereof, or the exercise of any other right, power or remedy.  No amendment to, modification or waiver of, or consent with respect to, any provision of this Agreement shall be effective unless in writing and executed and delivered by the Party against whom enforcement of such amendment, modification, waiver, or consent is sought.

Section 14.10.    References to Sections, Exhibits and Agreement; Captions.  

Unless otherwise indicated either expressly or by context, any reference in this Agreement to a “Section” or “Exhibit” shall be deemed to refer to a Section of or Exhibit to this Agreement.  All references herein to this “Agreement” shall, as of any time after the date hereof, be deemed to include all amendments hereto, which have been made prior to such time in accordance with Section 14.9.  Article and Section captions used in this Agreement are for convenience only, and shall not affect the construction of this Agreement.

                    
	
			
	 
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	1731216.4

                                                                                        

Section 14.11.    Specific Performance. 
 
The Parties hereto recognize and agree that it may be impossible to measure in money the damages which will accrue to any Party hereto or its successors or assigns by reason of a failure to perform any of the obligations arising under this Agreement.  Therefore, if a Party or its successors or assigns shall institute any action or proceeding to enforce any provision hereof, any Party against whom such action or proceeding is brought hereby agrees that specific performance may be sought and obtained for any breach of this Agreement, without the necessity of proving actual damages.

Section 14.12.    Mediation of Disputes; Jurisdiction and Venue. 
 
(a)    No Party shall institute a proceeding before any tribunal to resolve any controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity thereof (a “Dispute”), before such Party has sought to resolve the dispute through mediation.  If the applicable Parties do not promptly agree on a mediator, any such Party may request the Director of the FHFA to appoint a mediator.  All mediation proceedings under this Agreement shall be held in Washington, D.C. or such other location as the applicable Parties may agree upon.  If the mediator is unable to facilitate a settlement of the Dispute within a reasonable time, as determined by the mediator, the mediator shall issue a written statement to the applicable Parties to that effect and the complaining Party may then pursue any other remedy available to it at law or in equity.  The fees and expenses of the mediator shall be paid by the Party initiating mediation, unless the applicable Parties agree otherwise, but the paying Party shall be entitled to a judgment for reimbursement of such fees and expenses if it prevails against any other Party on all material issues in a judicial proceeding.

(b)    Each Party consents to the exercise of jurisdiction over its person and its property by any court of competent jurisdiction situated in the City of Chicago, State of Illinois (whether it be a court of the State of Illinois or a court of the United States of America situated in Illinois) for the enforcement of this Agreement or in any other controversy, dispute or question arising hereunder, and such Party waives any and all personal or other rights to object to such jurisdiction for such purposes.  Each Party, for itself and its successors and assigns, waives any objection which it may have to the laying of venue of any such action, suit or proceeding in any such court; provided, that the provisions of this paragraph shall not be deemed to preclude any other appropriate forum.  If such litigation is commenced at any time, the applicable Parties agree that service of process may be made, and personal jurisdiction over the other Party obtained, by service of a copy of the summons, complaint and other pleadings required to commence such litigation by United States certified or registered mail, return receipt requested, addressed to such Party at its address for notices as provided in this Agreement.  The applicable Parties waive all claims of lack of effectiveness or error by reason of any such service.

Section 14.13.    No Joint and Several Liability; Necessary Parties.

No Party to this Agreement shall be jointly and severally liable for any breach of any other Party under this Agreement. No Party to this Agreement shall be deemed a necessary party to any proceeding or litigation simply by reason of being a Party of this Agreement. The Parties agree that in the event of any dispute or disagreement among Parties relating to this Agreement that require any type of proceeding or litigation to resolve the dispute or disagreement, only the Parties among whom such dispute has arisen shall be made a party to any proceeding or litigation.

Section 14.14.    Amendment and Restatement

                    
	
			
	 
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	1731216.4

                                                                                        

This Agreement amends, restates, replaces and supersedes in their entirety the MPF Agreements.  Each Party to this Agreement (a) agrees that all references to the MPF Agreements that are included in any other agreement or other document executed or delivered by any Party in connection with the MPF Program shall be deemed to be references to this Agreement, as amended from time to time, and (b) hereby amends all such MPF Agreements and other documents to the extent necessary or appropriate to reflect such changed references.  

Section 14.15.    Equal Treatment of MPF Banks. 

The MPF Program is a cooperative program among the MPF Banks and the MPF Provider.  Consequently, the MPF Provider and each MPF Bank agree that any amendment or modification to this Agreement offered by or to any Active MPF Bank shall be promptly offered to all other Active MPF Banks.
    
[SIGNATURE PAGE(S) FOLLOWS]

                    
	
			
	 
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	1731216.4

                                                                                        

ARTICLE XV. SIGNATURES

IN WITNESS WHEREOF, the MPF Provider and each MPF Bank has caused this Agreement to be executed by its duly authorized officers, as of the date first above written.

MPF PROVIDER and MPF BANK:
FEDERAL HOME LOAN BANK OF CHICAGO

	
			
	By: /s/ John Stocchetti
	 
	 

	Name: John Stocchetti 
	 
	 

	Title: Executive Vice President
	 
	 

MPF BANK: FEDERAL HOME LOAN BANK OF ATLANTA

	
			
	By:  /s/ Kirk Malmberg
	 
	By:  /s/ Kevin Wilcox    

	Name: Kirk Malmberg
	 
	Name: Kevin Wilcox    

	Title: EVP, CFO
	 
	Title: FVP    

            
MPF BANK: FEDERAL HOME LOAN BANK OF BOSTON

	
			
	By: /s/ M. Susan Elliott
	 
	By: /s/ Frank Nitkiewicz

	Name: M. Susan Elliott
	 
	Name: Frank Nitkiewicz

	Title: Executive Vice President & Chief Business Officer
	 
	Title: Executive Vice President & Chief Financial Officer

                    
MPF BANK: FEDERAL HOME LOAN BANK OF DALLAS

	
			
	By: /s/ Paul Joiner    
	 
	By:

	Name: Paul Joiner
	 
	Name:     

	Title: SVP
	 
	Title:     

                         
MPF BANK: FEDERAL HOME LOAN BANK OF DES MOINES

	
			
	By: /s/ Daniel O. Mahlum
	 
	By: /s/ Bradley L. Meader

	Name: Daniel O. Mahlum
	 
	Name: Bradley L. Meader

	Title: Director, Mortgage Programs
	 
	Title: Manager - Mortgage Products Group

            
MPF BANK: FEDERAL HOME LOAN BANK OF PITTSBURGH

                    
	
			
	 
	27
	1731216.4

                                                                                        

	
			
	By: /s/ Kristina K. Williams    
	 
	By: 

	Name: Kristina K. Williams    
	 
	Name: 

	Title: Chief Operating Officer    
	 
	Title:     

                                        
MPF BANK: FEDERAL HOME LOAN BANK OF NEW YORK

	
			
	By: /s/ Adam Goldstein
	 
	By: /s/ Muriel Brunken

	Name: Adam Goldstein
	 
	Name: Muriel Brunken

	Title: Chief Business Officer
	 
	Title: VP - MPF Manager

                    
MPF BANK: FEDERAL HOME LOAN BANK OF SAN FRANCISCO

	
			
	By: /s/ Stephen P. Traynor        
	 
	By: 

	Name: Stephen P. Traynor
	 
	Name: 

	Title: SVP,  Member Financial Services & Community Investment
	 
	Title:     

        

MPF BANK: FEDERAL HOME LOAN BANK OF TOPEKA

	
			
	By: /s/ Dan Hess
	 
	 

	Name: Dan Hess
	 
	 

	Title: SVP
	 
	 

        
        
        

                    
	
			
	 
	28
	1731216.4EX-10.1

 Exhibit 10.1 

REAL ESTATE PURCHASE AND SALE AGREEMENT (“Agreement”) 

Phillips Farm Vacant Land 
 Montgomery,
Illinois 
  

	 	1.	 PARTIES: INLAND-PHILLIPS, L.L.C., an Illinois limited liability company, as to Parcels 2, 3 and 4, and INLAND
KENDALL, L.L.C., an Illinois limited liability company, Parcel 1 (“Seller”) agrees to sell and convey to:         JG Properties or Designee,
a(n)                                        
      (“Purchaser”) and Purchaser agrees to buy from Seller the Property (as defined in Section 2 below) for the consideration and upon and subject to the terms, provisions, and conditions hereinafter set forth.

  

	 	2.	 PROPERTY: The real estate per surveyed acre estimated at 317.86 acres, property identification
numbers attached Exhibit A as located within the Counties of Kane and Kendall, State of Illinois legally described on the Title Commitment to be provided; together with all improvements, and property attached thereto and made a part thereof
owned by the Seller located in, on, attached to, or used in connection with the Property; and all privileges and appurtenances pertaining thereto including any right, title and interest, if any, of Seller in and to adjacent streets, alleys, or
rights-of-way, Seller’s interest in and to any, licenses, and permits with respect to the Property, improvements, fixtures, and property attached thereto and made a part thereof owned by the Seller located in, on, attached to, or used in
connection with the real estate; all privileges and appurtenances pertaining thereto including any right, title and interest, if any, of Seller in and to adjacent streets, alleys, or rights-of-way; Seller’s interest in and to any, licenses, and
permits with respect to the Property; all of the above herein collectively called “Property”. 

  

	 	3.	 PURCHASE PRICE 

  

	 	A.	         PURCHASE
PRICE:                            
$2,200,000.00                             

Payable in U.S. dollars by Purchaser as follows: 
  

	 	B.	 EARNEST MONEY: Within three (3) business days after mutual execution of this Agreement Purchaser shall
deposit with Broker a sum equal to Fifty thousand and 00/100 Dollars ($50,000.00) (“Earnest Money”) payable in the form of a cashier’s check made payable to the order of Inland Real Estate Advisors, Inc. (sometimes hereinafter called
“Broker”), the receipt of which is hereby acknowledged. 

  

	 	C.	 BALANCE OF PURCHASE PRICE: The balance of the Purchase Price plus or minus prorations and closing adjustments, if
any, is due at the closing of this transaction (“Closing”) and must be paid by wire transfer to the bank account of the Title Company as designated by its closing escrow officer. 

 

	 	D.	 INSPECTION PERIOD: Purchaser and its duly authorized representatives shall have until fourteen (14) days from the
Effective Date (the “Inspection Period”) at reasonable times and upon reasonable notice to Seller, to conduct noninvasive inspections and studies, to make a physical inspection of the Property, to examine documents of record
encumbering the Property and conduct a phase one environmental audit and an architectural and engineering evaluation of the Property, all at Purchaser’s sole expense. Seller shall provide the due diligence materials to Purchaser within five (5)
days of the execution of this Contract. No invasive inspection may be conducted without the Seller’s express written consent, not to be unreasonably withheld. Seller shall provide access to the Property at reasonable times, upon at least
24 hours oral or written notice from Purchaser. Purchaser shall save, indemnify, 

  

			
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defend and hold harmless Seller from the acts and/or omissions of Purchaser and its representatives, agents and contractors arising from such inspections, audit and evaluation except to the
extent caused by mere discovery by buyer of pre-existing conditions at the Property or by the gross negligence or willful misconduct of Seller. The provisions of this Section G shall survive the termination of this Contract or Closing. If Purchaser
in its sole discretion elects not to proceed with its purchase of the Property for any reason or no reason at all, Purchaser shall, on or before the end of the Inspection Period, serve Seller with written notice of its election to terminate this
Contract (which notice is hereinafter referred to as “Termination Notice”) and Closing Agent shall return the Earnest Money to Purchasers and thereafter this Contract shall terminate and be null and void and of no further force and
effect, and neither Purchasers nor Seller shall have any further rights, duties, liabilities or obligations to the other by reason hereof expect for those matters that specifically survive such termination. If Purchaser fails to send the Termination
Notice on or before the end of the Inspection Period, this Contract shall remain in full force and effect and Purchaser shall have no further right to obtain a refund of the Earnest Money pursuant to the provisions of this paragraph.

  

	 	4.	 TITLE INSURANCE:Seller will deliver to Purchaser a Preliminary Title Insurance Commitment
(“Commitment”) issued by Chicago Title Insurance Company, the (“Title Company”), dated within 20 days of the Effective Date and identified as commitment number 1401-008979801 and subsequent to Closing, will deliver an
Owner’s Policy of title Insurance (“Owner’s Policy”) issued by the Title Company in the full amount of the Purchase Price, dated as of Closing, insuring Purchaser’s fee simple title to the Property. Purchaser has reviewed
and accepted the Commitment, has obtained, reviewed and approved copies of all documents of record and the current Land Lease, hereinafter defined, and has reviewed and accepted the Survey, defined below and by execution of this Agreement hereby
waives any and all objections to any defects, encumbrances, liens, encroachments, easements and all other matters disclosed by either the Commitment or the Survey, with the exception of any mortgage liens and security interests of any mortgage
holder (“Financing Liens”) for which appropriate releases, payoffs, and/or termination statements will be delivered at Closings. All matters disclosed by the Commitment and the Survey, other than the Financing Liens, are herein referred to
as the “Permitted Exceptions”. If the Title company is not able to issue or commit to issue the Owner’s Policy at the closing because of a defect in, or encumbrance on, title to the Property which is not included in the Permitted
Exceptions, and Purchaser objects to such title defect or encumbrance, seller shall be entitled to delay the Closing for 10 Business Days, hereinafter defined, for purposes of attempting to clear such defect or encumbrance from title or procuring
title insurance over such defect or encumbrance; provided however, Seller shall be under no obligation to cure, release or insure over any such defects or encumbrances. In the event Seller does not cure or procure title insurance over same within
the time provided, this Agreement will thereupon terminate and all Earnest Money shall be returned to Purchaser, unless Purchaser waives any such defect or encumbrance and elects to proceed to Closing without adjustment or setoff.

  

	 	5.	 SURVEY: Seller will provide an ALTA Survey of the Property prepared by Spaceco,
Inc. dated December 22, 2015 identified as Project No. 9012 (“Survey”). By execution of this Agreement, Purchaser hereby approves the Survey in its entirety and agrees to accept title to the Property
subject to all matters disclosed on the Survey as provided in Paragraph 4 hereof. Provided that the issuance thereof does not delay Closing or create any obligations or cost on the part of Seller, Purchaser, at its cost, may have the Survey
updated, certified to Purchaser and to Purchaser’s lender or upgraded to current ALTA/NSPS survey standards or inclusive of additional Optional Table A items. Seller shall be under no obligation to cure, release or insure over any defects or
encumbrances raised by such updated survey or additional Table A items. 

  

	 	6.	 CLOSING: The Closing of the sale shall be accomplished by means of a “New York” style closing and
take place at the offices of the Title Company, Nancy Castro, BP/Escrow Manager, 

  

			
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#10 S. LaSalle Street, Suite 3100, Chicago, Illinois 60603 thirty (30) days after the Effective Date (“Closing Date”), unless Seller and Purchaser change such date in writing. A
bifurcated closing shall be allowed with the Buyer closing in the Aurora CTT office, but all funds shall flow through the Chicago Office of the Title Company. 

 

	A.	 At the Closing, Seller shall deliver to Purchaser, at Seller’s sole cost and expense, the following:

  

	 	(1)	 Duly executed and acknowledged Special Warranty Deed, conveying title in fee simple to all of the Property, free and
clear of any and all liens, encumbrances, conditions, easements, assessments, reservations and restrictions, except for Permitted Exceptions. 

  

	 	(2)	 The Survey; 

  

	 	(3)	 Internal Revenue Code Affidavit pursuant to Section 1445 stating that Seller is not a foreign entity within the meaning
of the Internal Revenue Code (FIRPTA); 

  

	 	(4)	 A Seller’s “GAP” undertaking; 

 

	 	(5)	 A Preliminary Title Commitment at Closing and, subsequent to Closing, an Owner’s Policy of Title Insurance (the
“Title Policy”) issued by the Title Company in the full amount of the Purchase Price, dated as of Closing, insuring Purchaser’s fee simple title to the Property subject only to the Permitted Title Exceptions listed on Exhibit
“C”, the standard printed exceptions and additional exceptions contained in the usual form of Owner’s Title Policy (added title insurance fees for endorsements for zoning, location and any others
requested by the Purchaser of Purchaser’s lender will be paid by Purchaser), Seller shall provide a PIN endorsement, contiguous endorsement and extended coverage (to be paid by Seller) ; 

 

	 	(6)	 State, county and local real estate transfer declarations, to the extent applicable (the “Transfer
Declarations”); 

  

	 	(7)	 A signed closing statement setting forth the Total Purchase Price and all debits and credits to Purchaser and Seller in
connection with this sale; 

  

	 	(8)	 All other documents customarily required to close this type of transaction as required by the Title Company;

  

	 	(9)	 Evidence of termination of the existing farm lease at the Property, such termination to take effect after the harvest of
the 2016 soybean crop. 

  

	 	B.	 At the Closing, Purchaser shall deliver to Seller, at Purchaser’s sole cost and expense, the following:

  

	 	(1)	 The balance of the Purchase Price including prorations and adjustments, if any; 

 

	 	(2)	 If Purchaser is a corporation or a limited liability company, deliver to Seller: 

 

	 	(a)	 Certified resolutions of the board of directors, members or managers (as applicable) of Purchaser authorizing all the
transactions contemplated by this Agreement; 

  

	 	(b)	 An incumbency certificate with respect to those officers, members or managers (as applicable) of Purchaser executing any
documents or instruments in connection with the transactions contemplated herein; 

  

			
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	  	3

	 	(c)	 Certificate of Good Standing for the entity acquiring title from the Secretary of State or other appropriate
governmental office of the State of Illinois; 

  

	 	(d)	 A copy of the bylaws or operating agreement (as applicable) certified as accurate and complete by the secretary, members
or manager (applicable) of Purchaser; 

  

	 	(e)	 If the entity acquiring title is a partnership, deliver to Seller a certified copy of the partnership agreement and all
appropriate resolutions, partnership consents and evidence of authority of said entity; and 

  

	 	(3)	 A signed counterpart of the closing statement; 

 

	 	(4)	 Signed counterparts of the Transfer Declarations; 

 

	 	(5)	 Execute such other and further documents necessary to close this transaction as required by the Title Company; and

  

	 	(6)	 A Purchaser’s GAP undertaking, if required by the Title Company. 

 

	 	7.	 POSSESSION: Possession of the Property shall be delivered to Purchaser at Closing. 

 

	 	8.	 SALES EXPENSES TO BE PAID IN CASH AT OR PRIOR TO CLOSING: 

 

	 	A.	 SELLER’S EXPENSES: All costs of releasing and recording any release of mortgage required by the terms of
this Agreement; one-half ( 1⁄2) of any escrow fee (except any money lender’s escrow fee, which shall be paid by Purchaser); state and county transfer
taxes; real estate brokerage fees pursuant to the written agreement between Inland Real Estate Advisors, Inc. and Seller; all costs of the Owner’s Title Policy; Seller’s attorneys’ fees and other expenses stipulated to be paid by
Seller under the provisions of this Agreement. 

  

	 	B.	 PURCHASER’S EXPENSES: All recording costs of the Purchaser’s Mortgage, the Deed, and the
collateral documents; the full amount of any money lender’s escrow fee; expense of ALTA Mortgage Title Policy; one-half ( 1⁄2) of any escrow fee; all
municipal transfer taxes; the cost of any special endorsements (including extended coverage) or additional insurance required by the Purchaser or Purchaser’s lender; Purchaser’s real estate brokerage fee if not provided for in this
Agreement; and Purchaser’s attorney’s fee and expenses stipulated to be paid by Purchaser under other provisions of this Agreement. 

  

	 	9.	 PRORATIONS AND ADJUSTMENTS: The following shall be prorated and adjusted between Seller and Purchaser as of the
time of Closing, except as otherwise expressly provided herein: 

  

	 	A.	 Real estate tax proration shall be based upon one hundred five percent (105%) the most recent ascertainable tax bill,
prorated as of 11:59 p.m. on the day immediately prior to the Closing Date; 

  

	 	B.	 Such other items that are customarily prorated in transactions of this nature shall be ratably prorated as of 11:59 p.m.
on the day immediately prior to the Closing Date. 

  

	 	C.	 All prorations shall be final. 

 

	 	D.	 All 2016 farm income shall be retained by Seller. 

 

	 	10.	 DEFAULT / REMEDIES: 

  

			
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	 	A.	 Unless otherwise provided for herein, if Purchaser fails to comply with the terms and conditions hereof, Seller may
terminate this Agreement, in which event the Earnest Money, plus accrued interest, if any, shall be due and payable to Seller as its sole liquidated damages. Purchaser shall be liable for payment of the Earnest Money if not previously
paid. The parties agree that actual damages in the event of default are difficult to ascertain and further agree that the amount set forth as liquidated damages is a reasonable estimate of the damages to Seller in the event of Purchaser’s
default. Such sum is intended to be liquidated damages, and not a penalty. 

 Purchaser and Seller hereby
agree that in the event Seller notifies Broker that Purchaser has breached this Agreement by reason of Purchaser’s failure to timely deposit the Earnest Money or to timely close the transaction or for any other reason as set forth in this
Agreement and that Seller has thereby elected to declare Purchaser’s Earnest Money forfeited, then Seller shall notify Purchaser in writing as to the same with a copy of such notice to Broker and Broker shall immediately disburse the Earnest
Money and any accrued interest less Broker’s actual expenses described above to Seller. Purchaser hereby agrees to indemnify, save harmless and defend Broker from and against any claims, demand, costs or damages (including
reasonable attorney’s fees) arising from or out of or with respect to Broker’s complying with such demand by Seller 
  

	 	B.	 If Seller defaults, Purchaser shall be entitled to terminate this Agreement and receive a refund of the Earnest Money
which shall be Purchaser’s sole and exclusive remedy. The parties agree that actual damages in the event of default are difficult to ascertain and further agree that the amount of the Earnest Money then on deposit with Broker is a reasonable
estimate of the damages to Purchaser in the event of Seller’s default. Such sum is intended to be liquidated damages, and not a penalty. Purchaser acknowledges and agrees that under no circumstances shall Seller be liable for Purchaser’s
damages that are consequential, actual, punitive, speculative or otherwise. 

  

	 	11.	 EARNEST MONEY ESCROW: Inland Real Estate Advisors, Inc. will act as Escrow Agent and will hold in a
non-interest bearing account on behalf of the parties any and all monies, including Earnest Money, received by it directly or through its agents, employees or its Attorneys until the Property is transferred to Purchaser or this Agreement is
terminated in accordance with its terms. 

  

	 	12.	 PERSONAL PROPERTY. Seller shall remove from the Property prior to Closing all debris and Seller’s personal
property not conveyed by bill of sale to Buyer, if any. 

  

	 	13.	 REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER: 

 

	 	A.	 Seller hereby represents and warrants to Purchaser, which representations and warranties shall be deemed made by Seller
to Purchaser also as of the Closing Date that: 

  

	 	(1)	 There are no parties rightfully in possession of any portion of the Property; 

 

	 	(2)	 Seller is duly authorized and empowered to sell the Property; 

 

	 	(3)	 All obligations of Seller arising from the ownership and operation of the Property which accrue prior to the Closing
Date, have been paid as they became due or will be paid at or prior to Closing. Except for obligations for which provisions are herein made for proration or other adjustments at Closing, there will be no obligations of Seller with respect to
the Property outstanding as of the Closing Date; 

  

	 	(4)	 Seller shall not enter into any new leases or service agreements unless that same is terminable without penalty by the
then owner of the Property upon not more than 30 days’ notice or unless mutually agreed upon by Seller and Purchaser. 

  

			
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	  	5

	 	(5)	 As of the Closing Date there will be no recorded or unrecorded land leases affecting the Property.

 Notwithstanding anything contained in this Agreement to the contrary, all of the representations, warranties and
certifications (the “Representations”) which are made by Seller and set forth herein or in any of the documents or instruments required to be delivered by Seller hereunder, shall be subject to the following conditions and
limitations: (i) there shall no liability on the part of Seller for breaches of Representations of which Purchaser had actual knowledge at Closing; and (ii) Purchaser shall not have the right to bring any lawsuit or other legal
action against Seller, nor pursue any other remedies against Seller, as a result of the breach of the Representation of which Purchaser had actual knowledge at the Closing, but Purchaser’s sole right shall be to terminate this Agreement in
which event, the Earnest Money and all interest accrued thereon shall be returned to Purchaser. 
  

	 	B.	 From the effective date of this Agreement until the Closing Date or earlier termination of this Agreement, Seller
covenants to: 

  

	 	(1)	 to advise Purchaser promptly of any litigation, arbitration or administrative hearing before any governmental body or
agency of which Seller is notified, concerning or affecting the Property which is instituted after the date hereof; and 

  

	 	(2)	 to not take, or omit to take any action that would have the effect of violating any of the material representations,
warranties, covenants, and agreements of Seller contained in this Agreement; 

  

	 	(3)	 that this Agreement when executed and delivered by Purchaser and Seller will constitute the valid and binding agreement
of Seller enforceable against Seller in accordance with its terms; 

  

	 	(4)	 that to Seller’s current, actual knowledge, neither the execution and delivery of this Agreement nor the
consummation of the transaction contemplated hereby will violate or be in conflict with; (i) any applicable provisions of law; (ii) any order of any court or government agency having jurisdiction over the Seller; or (iii) any agreement or instrument
to which Seller is a party or which Seller is bound; 

  

	 	(5)	 that there are no actions, suits, claims or other proceedings pending or, to the best of Seller’s knowledge,
contemplated or threatened against Seller that could affect Seller’s ability to perform its obligations under this Contract. 

14.  REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASER: 

A. Purchaser represents, warrants and covenants to Seller now and as of the Closing as follows: 

 

	 	(1)	 As further set forth below, Purchaser is purchasing the Property in its “AS IS, WHERE IS” and “WITH ALL
FAULTS” condition with no warranties by Seller as to merchantability, suitability or fitness for any particular use, it being understood and agreed that Purchaser is relying solely on its own inspections, engineering studies and reports,
economic and feasibility studies and examinations of the Property and Purchaser’s own determination of the condition of the Property; 

  

	 	(2)	 Purchaser has all requisite power and authority to consummate the transaction contemplated by this Agreement and has by
proper proceedings duly authorized the execution and delivery of this Agreement and the consummation of the transaction contemplated hereby; 

  

			
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	 	(3)	 This Agreement when executed and delivered by Purchaser and Seller will constitute the valid and binding agreement of
Purchaser enforceable against Purchaser in accordance with its terms; 

  

	 	(4)	 To Purchaser’s current, actual knowledge, neither the execution and delivery of this Agreement nor consummation of
the transaction contemplated hereby will violate or be in conflict with; (i) any applicable provisions of law; (ii) any order of any court or government agency having jurisdiction over the Purchaser; or (iii) any agreement or instrument to which
Purchaser is a party or which Purchaser is bound; 

  

	 	(5)	 There are no actions, suits, claims or other proceedings pending or, to the best of Purchaser’s knowledge,
contemplated or threatened against Purchaser that could affect Purchaser’s ability to perform its obligations under this contract; 

  

	 	(6)	 That if Purchaser or any agent or representative of Purchaser has entered upon or prior to Closing shall enter upon the
Property for inspection thereof, that he, she or it has done so or shall do so at their sole risk and shall indemnify, defend and hold Seller harmless from all risk of injury and loss and shall make any claim therefore solely against their personal
liability carrier and that no such claim shall be made against Seller, any and all such claims against Seller being barred and any and all subrogation rights of such liability carrier against Seller hereby being hereby waived; 

 

	 	(7)	 That Purchaser shall not conduct, contract for or authorize any agent or representative of Purchaser to conduct any
invasive testing or other procedures on or in the Property; and 

  

	 	(8)	 That Purchaser is a sophisticated and experienced purchaser of properties such as the Property and has been duly
represented by counsel in connection with the negotiation of this Agreement and that Purchaser has sufficient funds available to consummate the Closing of the transaction described in this Agreement. 

 

	 	15.	 CONDEMNATION: If, prior to the Closing Date, condemnation proceedings are commenced against any material portion
of the Property (except for road widening), Purchaser may, at its option, terminate this Agreement by written notice to Seller within ten (10) business days after Purchaser is advised of the commencement of such condemnation proceedings and the
Earnest Money shall be refunded to Purchaser, or if Purchaser fails to give said notice of termination, Purchaser shall have the right to proceed to consummate the purchase of the Property, in which event Purchaser may appear and defend any such
condemnation proceedings, and any award in condemnation shall become the Property of Purchaser and the Purchase Price shall not be reduced. 

  

	 	16.	 AS-IS DELIVERY: Seller has not made and does not and is unwilling to make any representations or
warranties as to the physical or any other condition of the Property or to any matter affecting or related to the Seller or the Property whatsoever, express or implied, including but not limited to matters relating to zoning and environmental
compliance, and Purchaser agrees to purchase the Property on and “AS-IS, WHERE IS” and “WITH ALL FAULTS” basis as of the date of Closing. IN PARTICULAR, SELLER HEREBY SPECIFICALLY DISCLAIMS ANY
WARRANTY, GUARANTY, OR REPRESENTATION, ORAL OR WRITTEN, PAST, PRESENT, OR FUTURE, OF, AS TO, OR CONCERNING (I) THE NATURE AND CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND GEOLOGY, AND THE SUITABILITY THEREOF, FOR ANY
AND ALL ACTIVITIES AND USES WHICH PURCHASER MAY ELECT TO CONDUCT THEREON, (II) THE NATURE AND EXTENT OF ANY RIGHT-OF-WAY, ENCUMBRANCE, RESERVATION, CONDITION OR OTHERWISE, (III)

  

			
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THE COMPLIANCE OF THE PROPERTY OR THE OPERATION THEREOF WITH ANY LAWS, RULES, ORDINANCES, OR REGULATIONS OF ANY GOVERNMENT OR OTHER BODY, INCLUDING WITHOUT LIMITATION, ZONING REGULATIONS AND
ORDINANCES, (IV) ANY AND ALL ENVIRONMENTAL CONDITIONS WHICH MAY EXIST ON, UNDER OR ADJACENT TO THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE EXISTENCE OR NONEXISTENCE OF “HAZARDOUS SUBSTANCES,” “HAZARDOUS MATERIALS,”
“TOXIC SUBSTANCES,” OR “SOLID WASTE” AS SUCH TERMS ARE DEFINED IN THE COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY ACT OF 1980M AS AMENDED BY SUPERFUND AMENDMENTS AND REAUTHORIZATION ACT OF 1986, THE RESOURCE
CONSERVATION AND RECOVERY ACT OF 1976, AND THE HAZARDOUS MATERIALS TRANSPORTATION ACT, AND ANY OTHER FEDERAL, STATE OR LOCAL STATUTE, ORDINANCE, CODE, RULE, REGULATION, ORDER OR DECREE REGULATING, RELATING TO OR IMPOSING LIABILITY OR STANDARDS OF
CONDUCT CONCERNING ANY HAZARDOUS, TOXIC OR DANGEROUS WASTE, SUBSTANCE, CHEMICAL OR MATERIAL NOW OR HEREAFTER IN EFFECT, AND IN THE REGULATIONS PROMULGATED PURSUANT TO SUCH LAWS, ALL AS AMENDED, AND (V) THE FINANCIAL EARNING CAPACITY, EXPENSE HISTORY
OR THE OPERATION OF THE PROPERTY. THE CONVEYANCE OF THE PROPERTY IS MADE ON AN “AS-IS/WHERE-IS/WITH ALL FAULTS” BASIS AND IN ITS PRESENT CONDITION. PURCHASER EXPRESSLY ACKNOWLEDGES, IN CONSIDERATION OF THE AGREEMENTS OF SELLER HEREIN, THAT
SELLER MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, OR ARISING BY OPERATION OF LAW, INCLUDING, BUT IN NO WAY LIMITED OT, ANY WARRANTY OR CONDITION, HABITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY.
PURCHASER ACKNOWLEDGES, WARRANTS AND REPRESENTS TO SELLER THAT NO REPRESENTATIONS HAVE BEEN MADE BY SELLER, ITS AGENTS, BROKERS, OR EMPLOYEES IN ORDER TO INDUCE PURCHASER TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREIN OTHER
THAN AS MAY BE EXPRESSLY STATED HEREIN. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, PURCHASER ACKNOWLEDGES, WARRANTS AND REPRESENTS TO SELLER THAT NEITHER SELLER NOR ANY OF SELLER’S AGENTS, BROKERS OR EMPLOYEES HAVE MADE ANY
REPRESENTATIONS OR STATEMENTS TO PURCHASER CONCERNING THE PROPERTY’S INVESTMENT POTENTIAL OR RESALE AT ANY FUTURE DATE, AT A PROFIT OR OTHERWISE, NOR HAS SELLER OR ANY OF SELLER’S AGENTS, BROKERS, OR EMPLOYEES RENDERED ANY ADVICE OR
EXPRESSED ANY OPINION TO PURCHASER REGARDING ANY INCOME TAX CONSEQUENCES OF OWNERSHIP OF THE PROPERTY. 

  

	 	  	 SELLER DOES NOT AGREE, REPRESENT OR WARRANT THAT THE PROPERTY WILL BE DELIVERED IN ANY PARTICULAR PHYSICAL CONDITION,
AND SPECIFICALLY DOES NOT AGREE THAT THE PROPERTY WILL BE DELIVERED AT CLOSING IN THE SAME CONDITION AS ON THE DATE OF THIS AGREEMENT, NOR DOES SELLER AGREE TO REMOVE REFUSE FROM THE PROPERTY OR TO MAKE ANY REPAIRS OR IMPROVEMENTS TO THE PROPERTY.

  

	 	  	 PURCHASER ACKNOWLEDGES THAT PURCHASER HAD THE OPPORTUNITY TO CONDUCT A DILIGENT INVESTIGATION OF THE PROPERTY WITH
REGARD TO ITS CONDITION, PERMITTED USE AND SUITABILITY FOR PURCHASER’S INTENDED USE THEREOF, AS WELL AS TO ALL OTHER FACTORS DEEMED MATERIAL TO PURCHASER. PURCHASER IS NOT RELYING UPON ANY REPRESENTATIONS OF ANY KIND OR NATURE MADE BY SELLER,
OR ANY OF SELLER’S AGENTS, BROKERS OR EMPLOYEES WITH RESPECT TO THE PROPERTY, AND THAT, IN FACT, NO SUCH REPRESENTATIONS WERE MADE, EXCEPT AS MAY BE OTHERWISE EXPRESSLY PROVIDED HERE. 

  

			
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	 	  	 PURCHASER FURTHER ACKNOWLEDGES ANY AND ALL REPORTS SUPPLIED OR MADE AVAILABLE BY SELLER, WHETHER WRITTEN OR ORAL, OR
IN THE FORM OF MAPS, SURVEYS, PLATS, SOIL REPORTS, ENGINEERING STUDIES, ENVIRONMENTAL STUDIES, OR OTHER INSPECTION REPORTS PERTAINING TO THE PROPERTY (“REPORTS”) WERE OBTAINED FROM A VARIETY OF SOURCES AND THAT SELLER HAS NOT MADE ANY
INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND AMES NO REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION AND THAT SUCH REPORTS WERE DELIVERED TO PURCHASER ON AN “AS-IS/WHERE-IS/WITH ALL
FAULTS” BASIS SOLELY AS A COURTESY TO PURCHASER AND THAT SELLER HAS NEITHER VERIFIED THE ACCURACY OF ANY STATEMENTS OR OTHER INFORMATION THEREIN CONTAINED, NOR ANY METHOD USED TO COMPILE THE REPORTS OR DETERMINED THE QUALIFICATIONS OF THE
PERSON(S) PREPARING THE REPORTS AND SELLER MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, OR ARISING BY OPERATION OF LAW, AS TO THE ACCURACY, COMPLETENESS OR ANY OTHER ASPECT OF THE REPORTS. 

 

	 	  	 ANY FACTUAL INFORMATION SUCH AS PROPERTY DIMENSIONS, SQUARE FOOTAGE, OR SKETCHES SHOWN TO PURCHASER OR SET FORTH
HEREIN ARE OR MAY BE APPROXIMATE AND PURCHASER REPRESENTS TO SELLER THAT IT HAS INSPECTED AND VERIFIED SUCH FACTUAL INFORMATION PRIOR TO THE EXECUTION OF THIS AGREEMENT. THE SELLER, THE BROKER OR OTHER AGENTS OF SELLER ASSUME NO LIABILITY FOR ANY
INACCURACIES, ERRORS OR OMISSIONS THEREIN CONTAINED. 

  

	 	17.	 BROKER’S COMMISSION: Seller shall cause to be paid a broker’s commission to Inland Real Estate
Advisors, Inc. (“Broker”), CBRE, Inc. and Rooster AG Realty, Inc. upon and in accordance with the terms and conditions set forth in the separate listing agreement between Seller and Broker. Seller and Purchaser agree that all
Brokers’ commissions shall be paid simultaneously with, and as a condition precedent to, any disbursements made at Closing. This paragraph and disbursement instructions may not be amended or revoked without the prior written consent of
Broker. Each party hereto agrees to indemnify the other party and all those parties claiming through them from and against any claims by any other broker other than Inland Real Estate Advisors, Inc. with whom the indemnifying party may have
dealt. 

  

	 	18.	 AGENCY DISCLOSURE. The listing broker, Inland Real Estate Advisors, Inc. and its sales agents (“Listing
Company”) represent Seller. The Listing Company owes duties of trust, loyalty and confidence to Seller only. While the Listing Company has a duty to treat Purchaser honestly, the Listing Company is Seller’s auctioneer and is
acting on behalf of Seller and not Purchaser. Any cooperating broker will be recognized as a Purchaser’s agent. BY SIGNING BELOW, PURCHASER ACKNOWLEDGES PRIOR TIMELY NOTICE BY LISTING COMPANY THAT LISTING COMPANY IS
SELLER’S AUCTIONEER. 

  

	 	19.	 CONSULT YOUR ATTORNEY: THIS IS INTENDED TO BE A LEGALLY BINDING AGREEMENT. READ IT CAREFULLY. NO
REPRESENTATION OR RECOMMENDATION IS MADE BY SELLER, BROKER, THEIR AGENTS OR EMPLOYEES AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS DOCUMENT OR THE TRANSACTION RELATING THERETO. THESE ARE QUESTIONS FOR YOUR
ATTORNEY. CONSULT YOUR ATTORNEY BEFORE SIGNING. NEITHER THE SELLER NOR THE BROKER CAN GIVE YOU ANY LEGAL ADVICE. 

  

	 	20.	 INTENTIONALLY DELETED 

 

	 	21.	 NOTICES: See attached Rider 1.

  

			
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	 	22.	 COOPERATION IN A TAX DEFERRED EXCHANGE: Purchaser and Seller herein reserve the right to consummate this
transaction as part of a deferred exchange of like kind property as provided by Section 1031 of the Internal Revenue Code, but in all events Seller shall receive cash at Closing. Both Purchaser and Seller agree to cooperate with each other in this
regard at or prior to Closing and execute necessary documents as appropriate provided that the non-exchanging party shall have no liability in connection with the execution of such exchange documents. Should there be any additional costs
associated with this deferred exchange they will be borne solely by the party effectuating the exchange. Seller reserves the right to have all documents relative to the exchange reviewed and approved by its attorney at Purchaser’s sole
cost and expense which cost and expense shall be reasonable and customary. Purchaser hereby indemnifies and holds Seller harmless in connection with any matter concerning or arising out of such exchange or deferred exchange which
indemnification shall survive the Closing. 

  

	 	23.	 NO RECORDING: Neither this Agreement nor any type of memorandum thereof shall be recorded with the office of the
Recorder of Deeds or with any other governmental agency, and any purported recordation or filing hereof by Purchaser shall be deemed invalid and shall constitute a default on the part of Purchaser. 

 

	 	24.	 ENTIRE AGREEMENT: This Agreement constitutes the entire agreement between the parties as to the subject matter
hereof and supersedes all prior understandings and agreements. There are no representations, agreements arrangements or understandings oral or written between the parties, including the Broker, relating to the subject matter contained in this
Agreement that is not fully expressed or referred to herein. 

  

	 	25.	 SUCCESSORS AND ASSIGNS: The provisions of this Agreement shall bind and inure to the benefit of Purchaser and
Purchaser’s heirs, legal representatives, successors and permitted assigns and shall bind and inure to the benefit of the Seller and Seller’s heirs, legal representatives, its successors and assigns. Purchaser may not assign this
Agreement without prior written consent of Seller. 

  

	 	26.	 JOINT PURCHASERS: The term “Purchaser” shall be read as “Purchasers” if more than one person
is the Purchaser of the Property, in which case their obligations shall be joint and several. 

  

	 	27.	 FURTHER ASSURANCES: Either party shall execute, acknowledge and deliver to the other party such instruments and
take such other actions, in addition to the instruments and actions specifically provided for herein at any time and from time to time after execution of this Agreement whether before or after the Closing, as such other party may reasonably request
in order to effectuate the provisions of this Agreement or the transaction contemplated herein or to confirm or perfect any right to be created or transferred hereunder or pursuant to this transaction, provided that neither party shall be required
to incur any material expense in connection therewith. 

  

	 	28.	 SEVERABILITY: If any clause or provision of this Agreement is held to be invalid or unenforceable by any court of
competent jurisdiction as against any person or under any circumstances, the remainder of this Agreement and the applicability of any such clause or provision to other persons or circumstances shall not be affected thereby. All other clauses or
provisions of this Agreement, not found invalid or unenforceable shall be and remain valid and enforceable. 

  

	 	29.	 TIME: Time is of the essence of this Agreement. 

 

	 	30.	 STRICT COMPLIANCE / WAIVER: Any failure by either party to insist upon strict performance by the other party of
any of the provisions of this Agreement shall not be deemed a waiver of any of the provisions hereof, irrespective of the number of violations or breaches that may occur, and 

  

			
	 Phillips Farm PSA– Montgomery, IL
	  	10

	 	 
each party, notwithstanding any such failure, shall have the right thereafter to insist upon strict performance by the other of any and all of the provisions of this Agreement.

  

	 	31.	 GOVERNING LAW: The provisions of this Agreement and all questions with respect to the construction and
enforcement thereof and the rights and liabilities of the parties hereto shall be governed by, and construed and enforced in accordance with, the laws of the State of Illinois. 

 

	 	32.	 WAIVER OF JURY TRIAL: EXCEPT AS PROHIBITED BY LAW, THE PARTIES SHALL, AND THEY HEREBY DO, EXPRESSLY WAIVE TRIAL
BY JURY IN ANY LITIGATION ARISING OUT OF, CONNECTED WITH, OR RELATING TO THIS AGREEMENT OR THE RELATIONSHIP CREATED HEREBY. WITH RESPECT TO ANY MATTER FOR WHICH A JURY TRIAL CANNOT BE WAIVED, THE PARTIES AGREE NOT TO ASSERT ANY SUCH CLAIM AS A
COUNTERCLAIM IN, NOR MOVE TO CONSOLIDATE SUCH CLAIM WITH, ANY ACTION OR PROCEEDING IN WHICH A JURY TRIAL IS WAIVED. 

  

	 	33.	 ATTORNEYS FEES: A party to this Agreement who is the prevailing party in any legal proceeding against any other
party brought under or with respect to this Agreement or the transaction contemplated hereby shall be additionally entitled to recover court costs and reasonable attorneys’ fees from the non-prevailing party. 

 

	 	34.	 GENDER: A reference in this Agreement to any one gender, masculine, feminine or neuter, includes the other two,
and the singular includes the plural, and vice versa, unless the context requires otherwise. 

  

	 	35.	 CERTAIN REFERENCES: The term “herein”, “hereof” or “hereunder” or similar terms
used in this Agreement refer to this entire Agreement and not to the particular provision in which the term is used. Unless otherwise stated, all references herein to paragraphs, subparagraphs or other provisions are references to paragraphs,
subparagraphs or other provisions of this Agreement. 

  

	 	36.	 CAPTIONS: The captions in this Agreement are for convenience and reference only and in no way define, limit or
describe the scope of this Agreement or the intent of any provision hereof. 

  

	 	37.	 NO ORAL CHANGES: This Agreement cannot be changed or any provision waived orally. ANY CHANGES OR ADDITIONAL
PROVISIONS OR WAIVERS MUST BE SET FORTH IN A RIDER ATTACHED HERETO OR IN A SEPARATE WRITTEN AGREEMENT SIGNED BY THE PARTIES. 

  

	 	38.	 EXHIBITS: All Exhibits described herein and attached hereto are incorporated herein by this reference for all
purposes. 

  

	 	39.	 DATE OF PERFORMANCE: If any date for performance hereunder falls on a Saturday, Sunday or other day which
is a holiday under Federal law or under the state law where the Property is located, the date for such performance shall be the next succeeding business day. 

 

	 	40.	 COUNTERPARTS: This Agreement may be executed in multiple counterparts all of which when taken together shall
constitute one Agreement. 

  

	 	41.	 COUNTERPART FACSIMILE EXECUTION: For purposes of executing this Agreement, a document signed and transmitted by
facsimile machine shall be treated as an original document. The signature of any party thereon shall be considered as an original signature, and the document transmitted shall be considered to have the same binding legal effect as an original
signature on an original document. At the request of either party, any facsimile document shall be re-executed by both parties in original form. No party hereto may raise the use of a facsimile machine or the fact that any signature was
transmitted through the use of a facsimile machine as 

  

			
	 Phillips Farm PSA– Montgomery, IL
	  	11

	 	 
a defense to the enforcement of this Agreement or any amendment executed in compliance with this paragraph. This paragraph does not supersede the requirements of Section 21, Notices, of this
Agreement. 

  

	 	42.	 IRREVOCABLE OFFER: This document constitutes an irrevocable offer to purchase by Purchaser for three (3) days
after delivery to Seller of a copy of this Agreement executed by Purchaser. Seller may accept this offer at any time prior to the expiration of such three (3) day period. In the event the offer to purchase is not accepted by Seller within such three
(3) day period, the offer may be withdrawn by Purchaser upon notice to Seller and Purchaser shall receive the return of its Earnest Money deposit in its entirety. Such offer to purchase shall not be deemed accepted by Seller unless and until a copy
of this Agreement has been executed by Seller or Seller’s duly authorized agent. Failure of Seller to notify Purchase on or before expiration of such three (3) day period that Seller accepts or rejects this offer shall not constitute acceptance
or rejection by Seller of this offer, but that this offer shall thereafter become revocable. 

  

	 	43.	 LIMITATION ON LIABILITY: Notwithstanding any provision contained in this contract or any of the documents to be
executed by Seller at Closing (collectively, the “Sale Document”) the representations, warranties, indemnities, undertakings, covenants and agreements of Seller (collective, “Seller’s
Undertakings”) under the Sales documents shall not constitute personal obligations of the officers, directors, employees, agents, trustee, partners (direct or indirect), members (direct or indirect), representatives, stockholders, or
other principals or representatives of Seller, and no personal liability or personal responsibility of any sort with respect to any of Seller’s Undertakings or any alleged breach thereof is assumed by, or shall at any time be asserted or
enforceable against any of the officers, directors, employees, agents, trustees, partners, members, representatives, stockholders or other principals or representatives of Seller. 

Notwithstanding any provision contained in this Agreement or any of the documents to be executed by Purchaser at Closing (collectively,
the “Purchase Documents”) the representations, warranties, indemnities, undertakings, covenants and agreements of Purchaser (collectively, “Purchaser’s Undertakings”) under the Purchase Documents
shall not constitute personal obligations of the officers, directors, employees, agents, trustee, partners (direct or indirect), members (direct or indirect), representatives, stockholders, or other principals or representatives of Purchaser, and no
personal liability or personal responsibility of any sort with respect to any of Purchaser’s Undertakings or any alleged breach thereof is assumed by, or shall at any time be asserted or enforceable against any of the officers, directors,
employees, agents, trustees, partners, members, representatives, stockholders or other principals or representatives of Purchaser. 
 [Signature page
follows] 

  

			
	 Phillips Farm PSA– Montgomery, IL
	  	12

 IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have executed
this Real Estate Purchase and Sale Agreement on the dates listed below, to be effective as of the date signed by the Seller. 
  

			
	 PURCHASER: JG Properties, Inc.,
a(n)                                        
                            

		
	           /s/ Scott A.
Jessman                                      
      
	  	
	 (Sign Name)
	  	  
 (Sign
Name)

	           Scott A.
Jessman                                        
         
	  	
	 (Print Name)
	  	  
 (Print
Name)

		
	PURCHASER’S ADDRESS:	  	PURCHASER’S PHONE:
	           2260 Tanglewood
Drive                                        
    
	  	
Phone:                       
                                         
                    

	           Aurora, IL
60506                                        
                
	  	 Fax:
                                         
                                         
  

  

	
	SOCIAL SECURITY OR TAXPAYER I.D. NUMBER OF
PURCHASER:                                       
         
	
	DATE PURCHASER SIGNS THIS
AGREEMENT:                                       
                                         
                        
	
	 PURCHASER’S
ATTORNEY:                                       
                                         
                                         
       

			
		
	ATTORNEY’S ADDRESS:	  	ATTORNEY’S PHONE:
		
	  
	  	
Phone:                      
                          

		
	  
	  	
Fax:                       
                         

 SELLER: Inland-Phillips, L.L.C., an Illinois limited liability company 

	
	
	   By:        Inland Land Appreciation Fund II, L.P., a Delaware limited
partnership, its sole member

	
	   By:        Inland Real Estate Investment Corporation, a Delaware corporation, its
general partner

	
	   By:    /s/ Guadalupe
Griffin                                        
                                         
           

	   Name:         Guadalupe
Griffin                                        
                                         
   

	   Its:     Sr. Vice
President                                        
                                         
               

	
	     Inland Kendall, L.L.C., an Illinois limited liability company

	
	   By:        Inland-Phillips, L.L.C., an Illinois limited liability company, its
sole member

	
	   By:        Inland Land Appreciation Fund II, L.P., a Delaware limited
partnership, its sole member

	
	   By:        Inland Real Estate Investment Corporation, a Delaware corporation, its
general partner

	
	       By:            /s/ Guadalupe
Griffin                                        
        

	 Name:           Guadalupe
Griffin                                        
            

	       Its:             Sr. Vice
President                                        
            

  

			
	 Real Estate PSA– Montgomery, IL
	  	13

					
	SELLER’S ADDRESS:	  	 SELLER’S PHONE:

	 2901 Butterfield Road
	  	    Phone:	 	   630.218.4837

	 Oak Brook, Illinois 60523
	  	    Fax:	 	
  630.574.9677                    
                                    

	 Attn: Guadalupe Griffin
	  	 Email:	 	
  griffin@inlandgroup.com                   
                   

	
	DATE SELLER SIGNS THIS AGREEMENT:      September
23, 2016                                       
                               
	 (Effective Date of Agreement)

	
	 SELLER’S ATTORNEY:  David Neboyskey c/o The Inland Real Estate Group, Inc.
                                         
           

 [Continued below] 

  

			
	 Real Estate PSA– Montgomery, IL
	  	14

					
	ATTORNEY’S ADDRESS:	  	 ATTORNEY’S PHONE:

	 2901 Butterfield Road
	  	    Phone:	 	   630.218.8000 ext. 4760

	 Oak Brook, Illinois 60523
	  	    Fax:	 	   630.218.4900
                                         
               

	 Attn: David Neboyskey
	  	 Email:	 	   dneboyskey@inlandgroup.com
                                      

 BROKER: 

Inland Real Estate Advisors, Inc. 

2901 Butterfield Road 

Oak Brook, IL 60523 

(630) 990-8400 Phone (630) 990-5350 Fax 

  

			
	 Real Estate PSA– Montgomery, IL
	  	15

 Exhibit A 

PROPERTY IDENTIFICATION NUMBERS (PINs) 

03-03-100-031 
 03-03-200-008 

03-03-100-023 
 03-03-200-009 

03-02-100-030 
 15-34-451-004 

15-35-351-006 
 15-35-351-005 

03-02-100-009 
 03-02-100-029 

  

			
	 Real Estate PSA– Montgomery, IL
	  	16

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