Document:

Second Amendment to Lease

  
 Exhibit 10.1.2

  
 SECOND AMENDMENT TO LEASE 
  
 THIS SECOND AMENDMENT TO LEASE (this “Second
Amendment”) is made as of the 29th day of October, 2003, by and between LINCOLN-CARLYLE ILLINOIS CENTER,
L.L.C., a Delaware limited liability company (“Landlord”) and FEDERAL HOME LOAN BANK OF CHICAGO, a corporation organized under the laws of the United States of America (“Tenant”). 
  
 W I T N E S S E
T H: 
  
 A. Landlord and Tenant entered into a
certain Lease dated December 30, 1997 (the “1997 Lease”), whereby Landlord leased to Tenant certain premises containing approximately 81,000 square feet of rentable area of office space (the “Premises”) consisting
of all of the office space on the 7th and 8th floors and a portion of the office space on the 4th floor of the building located at 111 East Wacker Drive, Chicago, Illinois 60601 (the “Building”) for a lease term expiring on July 31, 2011. 
  
 B. By a certain First Amendment (the “First Amendment”) dated as of December 15, 2000, Landlord and Tenant
added certain additional premises consisting of approximately 18,205 square feet of rentable area to the Premises governed by the terms of the 1997 Lease. 
  
 C. Landlord and Tenant now desire to add certain further additional space to the Premises, containing approximately 33,068 rentable square feet (the
“6th Floor Additional Premises”) consisting
of the entire sixth (6th) floor of the Building, to be governed by the terms and provision of the 1997 Lease, as
amended by the First Amendment and the terms and provision herein (the 1997 Lease, as amended by the First Amendment, is sometimes referred to herein as the “Lease”). 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and
legal sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 
  
 1. Definitions. Each capitalized term used in this Second Amendment shall have the same meaning as is ascribed to such capitalized term in
the Lease, unless otherwise provided for herein. 
  
 2.
6th Floor Additional Premises. Effective as of January 1, 2004 (the “6th Floor Additional
Premises Commencement Date”), the 6th Floor
Additional Premises shall be added to the Premises and deemed a part thereof for the remainder of the Term. The Tenant’s Proportionate Share with respect to the 6th Floor Additional Premises only shall be 3.337%. The Tenant’s Proportionate Share with respect to the remaining Premises (other than the 6th Floor Additional Premises) shall remain as stated in the Lease. Further, the “Tenant’s stairwell” as used in
paragraph 35 of the Lease shall be deemed to include the Building stairwell between the 6th and 7th Floors of the Building and the 4th and 6th Floors of the Building, as well as the

  

 
stairwell described in the Lease. Tenant’s right to use such stairwell shall be subject to the conditions in paragraph 35 of the Lease. 
  
 3. Term as to Additional Premises. The Term as to the
6th Floor Additional Premises shall commence on the 6th Floor Additional Premises Commencement Date and shall terminate simultaneously with the expiration of the Term as to the remainder of the Premises.

  
 4. Rent as to Additional Premises.
Notwithstanding the 6th Floor Additional Premises Commencement Date of January 1, 2004, Landlord and Tenant hereby
agree that in order to allow Tenant to renovate the 6th Floor Additional Premises, Tenant shall not be obligated to
pay Base Rent, Operating Cost Share Rent or Tax Share Rent with respect to the 6th Floor Additional Premises until
April 1, 2004 (the “6th Floor Additional Premises Rent Commencement Date”); provided, however, Tenant shall have the right to occupy and use the 6th Floor
Additional Premises as of the 6th Floor Additional Premises Commencement Date, subject to Force Majeure. Base Rent
shall be due for the 6th Floor Additional Premises commencing on the 6th Floor Additional Premises Rent Commencement Date and throughout the remainder of the Term in the following amounts, payable as and when installments of Base
Rent are otherwise due and payable under the Lease: 
  

									
	 Period

	  	Annual Base
Rent

	 	 	Monthly
Base Rent

	 
	 April 1, 2004 through March 31, 2005
	  	$	529,088.04	*	 	$	44,090.67	*
	 April 1, 2005 through March 31, 2006
	  	$	542,315.23	 	 	$	45,192.94	 
	 April 1, 2006 through March 31, 2007
	  	$	555,873.08	 	 	$	46,322.76	 
	 April 1, 2007 through March 31, 2008
	  	$	569,769.89	 	 	$	47,480.82	 
	 April 1, 2008 through March 31, 2009
	  	$	584,014.13	 	 	$	48,667.84	 
	 April 1, 2009 through March 31, 2010
	  	$	598,614.48	 	 	$	49,884.54	 
	 April 1, 2010 through March 31, 2011
	  	$	613,579.84	 	 	$	51,131.65	 
	 April 1, 2011 through July 31, 2011
	  	$	628,919.33	 	 	$	52,409.94	 

  

	*	Subject to partial abatement as provided hereinafter 

  
 This Base Rent for the 6th Floor
Additional Premises shall be payable in addition to all amounts payable under the Lease and if such Base Rent is not paid when and as required, Landlord shall have all rights and remedies provided in the Lease. 
  
 Further, notwithstanding any other provision herein, provided no Default has
occurred under the Lease, Base Rent in the amount of $22,045.33 per month shall abate until April 1, 2005, and until April 1, 2005, the Tenant’s Proportionate Share with respect to the 6th Floor Additional Premises only shall be reduced to 1.669%, rather than 3.337%, for purposes of calculating the Operating Cost Share Rent or Tax Share Rent due
with respect to the 6th Floor Additional Premises. Notwithstanding the foregoing, in the event that due to Force
Majeure or for any other reason other than a delay caused by Tenant or its agents, representatives, 

  

 2 

 
employees, or contractors, the 6th Floor Additional Premises Commencement Date occurs after January 15, 2004, as Tenant’s sole remedy, the 6th Floor Additional Premises Rent Commencement Date shall be postponed for an equal number of days and Tenant shall be entitled to a further credit against Rent due from and after the 6th Floor Additional Premises Commencement Date equal to one-and-one-half day’s Rent times the number of days the 6th Floor Additional Premises Rent Commencement Date is delayed beyond January 15, 2004. Further, if the 6th Floor Additional Premises Commencement Date has not occurred by February 15, 2004, then Tenant shall have the option to terminate Tenant’s obligation to
lease the 6th Floor Additional Premises pursuant to this Second Amendment by written notice to Landlord at any time
after February 15, 2004 and prior to the occurrence of the 6th Floor Additional Premises Rent Commencement Date. If
Tenant does so terminate its obligations under this Second Amendment, such termination shall not affect any of the parties’ obligations under the Lease, but this Second Amendment shall terminate and shall be of no further force or effect.
Landlord agrees to use diligent, commercially reasonable efforts to enforce its rights to obtain the 6th Floor
Additional Premises and to deliver same to Tenant when and as required under the lease applicable thereto. 
  
 5. Expense and Tax Charges as to Additional Premises. In addition to Base Rent for the 6th Floor Additional Premises, Tenant shall also pay Operating Cost Share Rent and Tax Share Rent therefor, defined and calculated as provided in the Lease,
commencing with respect to the 6th Floor Additional Premises on the 6th Floor Additional Premises Rent Commencement Date. Operating Cost Share Rent and Tax Share Rent shall continue to be due and payable for the Premises in
addition to the 6th Floor Additional Premises, and shall be billed as provided in the Lease. Tenant’s failure
to pay such 6th Floor Additional Rent when and as required under the Lease shall constitute a default thereunder.

  
 6. Termination Option. The last sentence of
Section 31 of the Lease is hereby deleted in its entirety and replaced by the following: 
  
 “The Termination Fee shall be equal to $8,451,272.” 
  
 7. Tenant Allowance. Landlord shall provide an allowance for improvement of the 6th Floor Additional Premises and Tenant’s stairwell in the amount of $1,818,740.00 (“Landlord’s Contribution”) and an allowance for
the preparation of Tenant’s plans and specifications in the amount of $3,968.16 (the “Plan Contribution”), in accordance with the Work Letter attached hereto as Exhibit B. The Landlord’s Contribution and the Plan
Contribution shall be used only for costs associated with the 6th Floor Additional Premises. 
  
 8. Real Estate Brokers. Landlord agrees to pay any commissions
due to Lincoln Property Company Commercial, Inc. and Julian J. Studley, Inc. (collectively, the “Broker”) arising out of this transaction. Each party hereby agrees to indemnify and hold the other party and their respective agents
and employees harmless from and against any and all damages, liabilities, claims, actions, costs and expenses (including attorneys’ fees) arising from either (i) any claims or demands resulting from the actions of the indemnifying party, of any
broker, other than the Broker, salesperson or finder for any fee or commission alleged to be due such broker, salesperson or finder in connection with this Amendment or (ii) a claim of, or right to, 

  

 3 

 
any lien under the Statutes of the State of Illinois relating to real estate broker liens with respect to any such broker, salesperson or finder resulting
from the actions of the indemnifying party (excluding the Broker). 
  
 9. Submission. Submission of this Second Amendment by Landlord or Landlord’s agent, or their respective agents or representatives, to Tenant for examination and/or execution shall not in any manner bind Landlord
and no obligations on Landlord shall arise under this Second Amendment unless and until this Second Amendment is fully signed and delivered by Landlord and Tenant. 
  
 10. Binding Effect; Conflict. The Lease, as amended hereby, shall continue in full force and effect,
subject to the terms and provisions thereof and hereof. In the event of any conflict between the terms of the Lease and the terms of this Second Amendment, the terms of this Second Amendment shall control. This Second Amendment shall be binding upon
and inure to the benefit of Landlord, Tenant and their respective successors and permitted assigns. Except as specifically provided herein to the contrary, all references and provisions in the Lease referring to the Premises shall be deemed to
include and refer to the 6th Floor Additional Premises, as modified herein. 
  
 11. Limitation of Liability. Neither Landlord nor any
officer, director, member or employee or Landlord nor any owner of the Building, whether disclosed or undisclosed, shall have any personal liability with respect to any of the provisions of the Lease, as hereby amended of the Premises, and if
Landlord is in breach or default with respect to Landlord’s obligations under the Lease, as hereby amended, or otherwise, Tenant shall look solely to the equity interest of Landlord in the Building for the satisfaction of Tenant’s remedies
or judgments. 
  
 12. Limited Applicability.
The terms of this Second Amendment set forth in paragraphs 2, 3, 4, 5, and 7 shall not affect the terms and provisions of the Lease with respect to the remaining Premises, but except for the amount of Rent payments and other terms specifically
modified herein, all terms and provisions of the Lease shall apply to the 6th Floor Additional Premises. 

 
 13. Counterparts; Facsimile. This Second Amendment
may be executed in multiple counterparts and by facsimile transmission. 
  

 4 

			
	LANDLORD:
	
	LINCOLN-CARLYLE ILLINOIS CENTER, L.L.C., a Delaware limited liability company
		
	By:	 	Lincoln Illinois Center, LLC, a Delaware liability company, Managing Member
		
	By:	 	Lincoln Investors Group 31, Inc., a Texas corporation Managing Member
		
	By:	 	/s/    JOHN B. GRISSIM        
	 Name:
	 	John B. Grissim
	 Its:
	 	Vice President
	
	TENANT:
	
	FEDERAL HOME LOAN BANK OF CHICAGO, a corporation organized under the laws of the United States of America
		
	By:	 	/s/    THOMAS D. SHEEHAN        
	 Its:
	 	Senior Vice President

  

 5 

  
 EXHIBIT A

  
 6TH FLOOR ADDITIONAL PREMISES 
  

 A-1 

  
 

 
  

  
 EXHIBIT B

  
 TENANT IMPROVEMENT WORKLETTER 

 
 This Work Letter Agreement (“Work Letter Agreement” ) is
executed simultaneously with that certain Second Amendment to Lease (the “Lease” ) between FEDERAL HOME LOAN BANK OF CHICAGO, a corporation organized under the laws of the United States of America “Tenant”,
and LINCOLN-CARLYLE ILLINOIS CENTER, L.L.C., a Delaware limited liability company, as “Landlord”, relating to the 6th Floor Additional Premises (as defined therein) at the building located at 111 East Wacker Drive, Chicago, Illinois (the “Building”), which 6th Floor Additional Premises are more fully identified in the Lease. Capitalized terms used herein, unless otherwise defined in this Work Letter Agreement, shall
have the respective meanings ascribed to them in the Lease. 
  
 For and in consideration of the agreement to lease the Premises and the mutual covenants contained herein and in the Lease, Landlord and Tenant hereby agree as follows: 
  
 1. WORK. Tenant, at its sole cost and expense, shall perform, or cause to be performed, the work and all other
tenant improvements (collectively, the “Work”) in the 6th Floor Additional Premises provided for in
the Approved Plans and Budget (as defined in Paragraph 2 hereof). Subject to Tenant’s satisfaction of the conditions specified in this Work Letter, Tenant shall be entitled to Landlord’s Contribution (as defined hereinbelow). 

 
 2. PRE-CONSTRUCTION ACTIVITIES. 
  
 (a) Prior to commencement of demolition and the Work, Tenant
shall submit the Plans (as hereinafter defined) for the Work, which Plans and the Budget (as hereinafter defined) shall be subject to Landlord’s approval in accordance with Paragraph 3(b) below. Prior to commencement of the Work, Tenant shall
also submit the following information and items to Landlord for Landlord’s review and approval, which approval shall not be unreasonably withheld or delayed; 
  
 (i) A detailed construction schedule containing the major components of the Work and the time required for
each, including the scheduled commencement date of construction of the Work, milestone dates and the estimated date of completion of construction. 
  
 (ii) A budget (“Budget”) and an itemized statement of estimated design, planning, construction and other costs (as such
figure may be revised to reflect actual costs, the “Costs”), including, without limitation, demolition construction, cabling, and all soft costs and all fees for permits and architectural and engineering fees. 
  
 (iii) The names and addresses of Tenant’s contractors
(and said contractor’s subcontractors) and materialmen to be engaged by Tenant for the 

  

 B-1 

 
Work (individually, a “Tenant Contractor,” and collectively, “Tenant’s Contractors”). Landlord has the right to
approve or disapprove all or anyone or more of Tenant’s Contractors, which approval shall not be unreasonably withheld or delayed. Landlord may, at its election, provide a list of approved contractors for performance of those portions of work
involving electrical, mechanical, plumbing, heating, air conditioning or life safety systems, from which Tenant may, but shall not be obligated to, select its contractors for such designated portions of Work. 
  
 (iv) Certified copies of insurance policies or certificates
of insurance as hereinafter described. Tenant shall not permit Tenant’s Contractors to commence work until the required insurance has been obtained and certified copies of policies or certificates have been delivered to Landlord. 
  
 Tenant will update such information and items by notice to Landlord of any
changes. 
  
 (b) As used herein the term
“Approved Plans” shall mean the Plans (as hereinafter defined), as and when approved in writing by Landlord pursuant to this paragraph. As used herein, the term “Plans” shall mean the full and detailed architectural
and engineering plans and specifications covering the Work (including, without limitation, all items for which the Landlord’s Contribution is to be used and all architectural, mechanical and electrical, working drawings for the Work). The Plans
shall be subject to Landlord’s approval and the approval of all local governmental authorities requiring approval of the Work and/or the Approved Plans. Landlord shall give its approval or disapproval (giving detailed reasons in case of
disapproval) of the Plans within five (5) business days after their delivery to Landlord. Landlord agrees not to unreasonably withhold its approval of said Plans; provided, however, that Landlord shall not be deemed to have acted unreasonably if it
withholds its approval of the Plans because, in Landlord’s reasonable opinion: the Work as shown in the Plans is likely to adversely affect Building systems, the structure of the Building or the safety of the Building and/or its occupants; the
Work as shown on the Plans might impair Landlord’s ability to furnish services to Tenant or other tenants; the Work would increase the cost of operating the Building; the Work would violate any governmental laws, rules or ordinances (or
interpretations thereof); the Work contains or uses hazardous or toxic materials or substances; the Work would adversely affect the appearance of the Building; the Work might adversely affect another tenant’s premises; the Work does not conform
to the then current building standards established by Landlord; or the Work is prohibited by any mortgage or trust deed encumbering the Building. The foregoing reasons, however, shall not exclusive of the reasons for which Landlord may withhold
consent, whether or not such other reasons are similar or dissimilar to the foregoing. If Landlord notifies Tenant that changes are required to the final Plans submitted by Tenant, Tenant shall prior to commencement of any Work, submit to Landlord,
for its approval, the Plans amended in accordance with the changes so required. Landlord shall respond to Tenant’s submission of such amended Plans within five (5) business days of receipt, it being agreed that Landlord’s approval thereto
shall be limited to those items to which Landlord had objected pursuant to the prior submission of the Plans. Such procedure for review 

  

 B-2 

 
with respect to any further objections to the Plans by Landlord shall continue until the Plans are finally approved by Landlord. The Plans shall also be
revised, and the Work shall be changed, all at Tenant’s cost and expense (but payable from Landlord’s Contribution), to incorporate any work required in the Premises by any local governmental field inspector. Landlord’s approval of
the Plans shall in no way be deemed to be (i) an acceptance or approval of any element therein contained which is in violation of any applicable laws, ordinances, regulations or other governmental requirements, or (ii) an assurance that work done
pursuant to the Approved Plans will comply with all applicable laws (or with the interpretations thereof) or satisfy Tenant’s objectives and needs. 
  
 (c) No demolition or Work shall be undertaken or commenced by Tenant in the 6th Floor Additional Premises without Landlord’s prior written consent until (i) Tenant has delivered, and Landlord has approved, all items set forth in
Paragraph 2(a) above and (ii) all necessary building permits have been applied for and obtained by Tenant. 
  
 3. DELAYS. In the event Tenant fails to deliver or deliver in sufficient and accurate detail the information required under Paragraph 2
above or in the event Tenant, for any reason, fails to complete the Work on or before the 6th Floor Additional
Premises Rent Commencement Date, Tenant shall be responsible for Rent and all other obligations set forth in the Lease from the 6th Floor Additional Premises Rent Commencement Date regardless of the degree of completion of the Work on such date, and no such delay in completion of the Work shall relieve Tenant of any of its obligations under the Second Amendment
to the Lease. 
  
 4. CHARGES AND FEES. Tenant
shall pay Landlord a supervisory fee in an amount equal to one and one-half percent (1.5%) of Landlord’s Contribution (as hereinafter defined) (not to exceed $19,840.80) to defray Landlord’s expenses incurred to review the Plans and
coordinate with Tenant’s on-site project manager the staging and progress of the Work. 
  
 5. CHANGE ORDERS. All changes to the Approved Plans requested by Tenant must be approved by Landlord in advance of the implementation of such changes as part of the Work which approval shall not be
unreasonably withheld or delayed. All delays caused by Tenant-initiated change orders, including, without limitation, any stoppage of work during the change order review process, are solely the responsibility of Tenant and shall cause no delay in
the 6th Floor Additional Premises Commencement Date or the payment of Rent and other obligations therein set forth;
provided, however, that delays in approval or disapproval by Landlord in excess of the time periods permitted in Section 2(b) hereof, will result in a postponement of the 6th Floor Additional Premises Rent Commencement Date for a period of time equal to the number of days of such delay. All increases in cost of the Work resulting
from such change orders shall (subject to Paragraph 8 below) be borne by Tenant. 
  

 B-3 

 6. STANDARDS OF DESIGN AND CONSTRUCTION AND CONDITIONS OF TENANT’S PERFORMANCE.
All work done in or upon the 6th Floor Additional Premises by Tenant shall be done according to the standards set
forth in this Paragraph 6, except as the same may be modified in the Approved Plans approved by or on behalf of Landlord and Tenant: 
  
 (a) Tenant’s Approved Plans and all design and construction of the Work shall comply with all applicable statutes, ordinances,
regulations, laws, codes and industry standards, including, but not limited to, reasonable requirements of Landlord’s fire insurance underwriters. 
  
 (b) Tenant shall, at its own cost and expense (but payable from Landlord’s Contribution), obtain all required building permits and
occupancy permits. Tenant’s failure to obtain such permits shall not cause a delay in the commencement of the Term or the obligation to pay Rent or any other obligations set forth in the Lease. 
  
 (c) Tenant’s Contractors shall be licensed contractors,
possessing good labor relations, capable of performing quality workmanship and working in harmony with Landlord’s contractors and subcontractors and with other contractors and subcontractors in the Building. All work shall be coordinated with
any other construction or other work in the Building in order not to adversely affect construction work being performed by or for Landlord or its tenants. 
  
 (d) Tenant shall use only new, first-class materials in the Work, except where explicitly shown in the Approved Plans. All Work shall be
done in a good and workmanlike manner. Tenant shall obtain contractors’ warranties of at least one (1) year duration from the completion of the Work against defects in workmanship and materials on all work performed and equipment installed in
the 6th Floor Additional Premises as part of the Work. 
  
 (e) Tenant and Tenant’s Contractors shall make all
commercially reasonable efforts and take all commercially reasonable steps appropriate to assure that all construction activities undertaken comport with the reasonable expectations of all tenants and other occupants of a full-occupied (or
substantially fully occupied) first-class office building and do not unreasonably interfere with the operation of the Building or with other tenants and occupants of the Building. In any event, Tenant shall comply with all reasonable rules and
regulations existing from time to time at the Building. Tenant and Tenant’s Contractors shall take all precautionary steps to minimize dust, noise and construction traffic, and to protect their facilities and the facilities of others affected
by the Work and to properly police same. Construction equipment and materials are to be kept within the 6th Floor
Additional Premises and delivery and loading of equipment and materials shall be done at such locations and at such time as Landlord reasonably shall direct so as not to burden the construction or operation of the Building. 
  
 (f) Landlord shall have the right, after not less than five
(5) days notice to Tenant, to order Tenant or any of Tenant’s Contractors who violate the requirements imposed on Tenant or Tenant’s Contractors in performing work to cease work and remove its equipment and employees from the Building. No
such action by Landlord shall delay the commencement of the Lease or the obligation to pay Rent or any other obligations therein set forth. 
  

 B-4 

 (g) Utility costs or charges for any service (including HVAC, hoisting or freight
elevator and the like) to the 6th Floor Additional Premises shall be the responsibility of Tenant and shall be paid
for by Tenant at Landlord’s standard rates then in effect as provided below. Tenant shall pay for all support services provided by Landlord’s contractors at Tenant’s request or at Landlord’s discretion resulting from breaches or
defaults by Tenant under this Work Letter Agreement. For purposes of the Work, Tenant shall have the nonexclusive right to use the Building’s freight elevators subject to the availability and scheduling as may be reasonably established by
Landlord. Such freight elevator use by Tenant during normal business hours shall be free of charge; provided, however, to the extent Tenant utilizes such freight elevators prior to 8:00 a.m. and after 5:00 p.m. on Monday through Friday and anytime
on Saturday, Sunday and holidays, such use shall be at the standard Building charge for after-hours freight elevator service; provided, further, if any other tenant of the Building is also using said freight elevators with Tenant after such time
periods, then any charge to Tenant shall be apportioned between or among all parties utilizing such freight elevators. Tenant shall arrange and pay for removal of construction debris and shall not place debris in the Building’s waste
containers. Subject to space availability and Tenant’s compliance with Landlord’s reasonable rules and regulations, Landlord shall permit Tenant’s Contractors to place waste containers at the Building loading dock for after-hours
removal of waste and debris. If required by Landlord, Tenant shall sort and separate its waste and debris for recycling and/or environmental law compliance purposes. 
  
 (h) Tenant shall permit access to the 6th Floor Additional Premises, and the Work shall be subject to inspection, by Landlord and Landlord’s architects, engineers, contractors and other
representatives at an times during the period in which the Work is being constructed and installed following completion of the Work. 
  
 (i) Tenant shall proceed with its work expeditiously, continuously and efficiently, and shall use all commercially reasonable efforts to
complete the same on or before the 6th Additional Premises Rent Commencement Date. Tenant shall notify Landlord upon
completion of the Work and shall furnish Landlord and Landlord’s title insurance company with such further documentation as may be necessary under the requirements herein. 
  
 (j) Tenant shall have no authority to deviate from the Approved Plans in performance of the Work, except as
approved by Landlord and its designated representative in writing, which approval shall not be unreasonably withheld or delayed. Tenant shall furnish to Landlord “as-built” drawings of the Work within thirty (30) days after completion of
the Work. 
  
 (k) Landlord shall have the right
to run utility lines, pipes, conduits, duct work and component parts of all mechanical and electrical systems where necessary or desirable through the 6th Floor Additional Premises, to repair, alter, replace or remove the same, and to require Tenant to install and maintain proper access panels thereto. 
  

 B-5 

 (l) Tenant shall impose on and enforce all applicable terms of this Work Letter Agreement
against Tenant’s architect and Tenant’s Contractors. 
  
 (m) Tenant and Landlord each acknowledges and agrees that the Work will include any work, both within and outside the 6th Floor Additional Premises, that may be necessary in order for Tenant to use and occupy the 6th Floor Additional Premises 
  
 7. INSURANCE AND INDEMNIFICATION. 
  
 (a) In addition to any insurance which may be required under the Lease, Tenant shall secure, pay for and maintain or cause Tenant’ s
Contractors to secure, pay for and maintain during the continuance of construction and fixturing work within the Building or 6th Floor Additional Premises, insurance in the following minimum coverages and the following minimum limits of liability: 
  
 (i) Worker’s Compensation and Employer’s Liability Insurance with limits of not less than $500,000.00, or such higher amounts as
may be required from time to time by any Employee Benefit Acts or other statutes applicable where the work is to be performed, and in any event sufficient to protect Tenant’s Contractors from liability under the aforementioned acts. 

 
 (ii) Commercial General Liability Insurance (including
Contractors’ Protective Liability) in an amount not less than $1,000,000.00 per occurrence, whether involving bodily injury liability (or death resulting therefrom) or property damage liability or a combination thereof with a minimum aggregate
limit of $2,000,000.00, and with umbrella coverage with limits not less than $3,000,000.00. Such insurance shall provide for explosion and collapse, completed operations coverage and broad form blanket contractual liability coverage and shall insure
Tenant’s Contractors against any and all claims for bodily injury, including death resulting therefrom, and damage to the property of others and arising from its operations under the contracts whether such operations are performed by
Tenant’s Contractors or by anyone directly or indirectly employed by any of them. 
  
 (iii) Comprehensive Automobile Liability Insurance, including the ownership, maintenance and operation of any automotive equipment, owned,
hired, or non-owned in an amount not less than $500,000.00 for each person in one accident, and $1,000,000.00 for injuries sustained by two or more persons in any one accident and property damage liability in an amount not less than $1,000,000.00
for each, accident. Such insurance shall insure Tenant’s Contractors against any and all claims for bodily injury, including death resulting therefrom, and damage to the property of others arising from its operations under the contracts,
whether such operations are performed by Tenant’s Contractors, or by anyone directly or indirectly employed by any of them. 
  

 B-6 

 (iv) “All-risk” builder’s risk insurance upon the entire Work to the full
insurable value thereof. This insurance shall include the interests of Landlord and Tenant (and their respective contractors and subcontractors of any tier to the extent of any insurable interest therein) in the Work and shall insure against the
perils of fire and extended coverage and shall include “all-risk” builder’s risk insurance for physical loss or damage including, without duplication of coverage, theft vandalism and malicious mischief. If portions of the Work are
stored off the site of the Building or in transit to said site are not covered under said “all-risk” builder’s risk insurance, then Tenant shall effect and maintain similar property insurance on such portions of the Work. 

 
 All policies (except the worker’s compensation policy) shall be
endorsed to include Landlord and Lincoln Property Company as additional insureds as their interests may appear. The waiver of subrogation provisions contained in the Lease shall apply to all insurance policies (except the workmen’s compensation
policy) to be obtained by Tenant pursuant to this paragraph. The insurance policy endorsements shall also provide that all additional insured parties shall be given thirty (30) days’ prior written notice of any reduction, cancellation or
non-renewal of coverage (except that ten (10) days’ notice shall be sufficient in the case of cancellation for non-payment of premium) and shall provide that the insurance coverage afforded to the additional insured parties thereunder shall be
primary to any insurance carried independently by said additional insured parties. Additionally, where applicable, each policy shall contain a cross-liability and severability of interest clause. 
  
 (b) Without limitation of the indemnification provisions
contained in the Lease, to the fullest extent permitted by law Tenant agrees to indemnify, protect, defend and hold harmless Landlord, the parties listed, or required by, the Lease to be named as additional insureds, Landlord’s contractors,
Landlord’s architects, and their respective beneficiaries, partners, directors, officers, employees and agents, from and against all claims, liabilities, losses, damages and expenses of whatever nature arising out of or in connection with the
Work or the entry of Tenant or Tenant’s Contractors into the Building and the 6th Floor Additional Premises,
including, without limitation, mechanic’s liens, the cost of any repairs to the 6th Floor Additional Premises
or Building necessitated by activities of Tenant or Tenant’s Contractors, bodily injury to persons (including, to the maximum extent, provided by law, claims arising under the Illinois Structural Work Act) or damage to the property of Tenant,
its employees, agents, invitees, licensees or others. It is understood and agreed that the foregoing indemnity shall be in addition to the insurance requirements set forth above and shall not be in discharge of or in substitution for same or any
other indemnity or insurance provision of the Lease. 
  
 8.
LANDLORD’S CONTRIBUTION: EXCESS AMOUNTS. 
  
 (a) Upon Tenant’s satisfaction of the requirements set forth in this Work Letter Agreement, Landlord shall make dollar contributions in the total amount of (i) $1,818,740.00 (“Landlord’s
Contribution” ) (which is $55.00 per square foot of rentable area of the 6th Floor Additional Premises) for
application to the extent thereof to the Costs of the Work and (ii) $3,968. 16 solely for application to the cost incurred by 

  

 B-7 

 
Tenant for the preparation and revision of the Plans (collectively, the “Plan Contribution”). The Plan Contribution shall be in addition to
the Landlord’s Contribution, however, for all other purposes hereunder the Plan Contribution shall be deemed part of the Landlord Contribution and shall be disbursed as part of the Landlord Contribution. Landlord shall, have no obligation to
fund any portion of Landlord’s Contribution prior to Landlord’s review and approval of the items referenced in Paragraph 2(a) hereof. If the Costs exceed Landlord’s Contribution, Tenant shall have sole responsibility for the payment
of such excess cost. If the Costs of the Work are less than Landlord’s Contribution, Landlord shall make such excess amounts available to reimburse Tenant for additional improvements to the Premises, subject to Landlord’s review and
approval of all items listed in Paragraph 2 of this Work Letter with respect to such additional improvements, which approval shall not be unreasonably withheld delayed. If the Costs of the Work are less than Landlord’s Contribution and Tenant
does not utilize the fun amount of such excess for additional improvements pursuant to the preceding sentence, provided that Tenant is not in default under the Lease, as amended, such excess, shall be credited against Base Rent first coming due with
respect to the 6th Floor Additional Premises or, at Tenant’s option and subject to the procedures herein, be
used for portions of the Premises other than the 6th Floor Additional Premises. Notwithstanding anything herein to
the contrary, Landlord may deduct from Landlord’s Contribution any amounts due to Landlord or its architects or engineers under this Work Letter Agreement before disbursing any other portion of Landlord’s Contribution. 
  
 (b) Subject to the conditions herein, Landlord shall make
progress payments of Landlord’s Contribution amounts to Tenant or Tenant’s project manager on a monthly basis, for the Work performed during the previous month, less a retainage of 10% of each progress payment (the
“Retainage”). Landlord shall not be required to fund amounts for any item in excess of the amount shown on the Budget previously approved by Landlord. Provided that Tenant delivers requisitions to Landlord on or prior to the first
(1st) day of any month, such progress payments shall be made within thirty (30) days next following the delivery to
Landlord of requisitions therefor, signed by a financial officer of Tenant or by Tenant’s project manager, which requisitions shall set forth the names of each contractor and subcontractor to whom payment is due, and the amount thereof, and
shall be accompanied by (i) an owner’s sworn statement, and after the first requisition, copies of partial waivers of lien from all contractors, subcontractors and material suppliers shown on such sworn statement and covering all work and
materials which were the subject of previous progress payments by Landlord and Tenant, (ii) a written certification from Tenant’s architect that the work for which the requisition is being made has been completed substantially in accordance
with the Approved Plans, (iii) copies of all applicable invoices, and (iv) such other documents and information as Landlord may reasonably request. All requisitions which are true, correct and complete in Landlord’s reasonable judgment and
which are made prior to the first (1st) day of any month shall be paid no later than the last day of the month following the month in which such requisitions are made. All requisitions shall be submitted on AIA Form G702 and G703. Landlord shall
disburse the Retainage upon submission by Tenant to Landlord of a requisition therefor, accompanied by all documentation required under this Paragraph 8(b), together with (A) proof of the satisfactory completion of all required 

  

 B-8 

 
inspections and issuance of any required approvals, permits and sign-offs for the Work by all governmental authorities having jurisdiction thereover, (B)
final “as-built” plans and specifications for the Work; and (C) the issuance of original final lien waivers by all contractors, subcontractors and material suppliers. Further, and notwithstanding anything to the contrary hereinabove, no
portion of the Landlord’s Contribution shall be due and payable and Landlord shall have no obligation to pay, any portion thereof notwithstanding Tenant’s submission of requisitions in accordance with this Paragraph 8(b) so long as any
mechanic’s lien exists (regardless of whether same has been bonded over or otherwise secured) against the Building. Further, if at any time prior to or during construction, Landlord reasonably determines that the actual remaining costs of the
Work will exceed the unfunded amount of the Landlord’s Contribution (plus any cash previously deposited into escrow by Tenant), then Landlord’s obligation to fund any requisition shall at Landlord’s sole option be subject to
Tenant’s direct out-of-pocket payment of amounts sufficient to eliminate such excess. 
  
 9. MISCELLANEOUS. 
  
 (a) If the Plans for the Work require the construction and installation of more fire hose cabinets or telephonic/electrical closets than the number regularly provided by Landlord in the core of the Building in which
the 6th Floor Additional Premises are located, Tenant agrees to pay all costs and expenses arising from the
construction and installation of such additional fire hose cabinets or telephone/electrical closets. 
  
 (b) Time is of the essence of this Work Letter Agreement. 
  
 (c) Any person signing this Work Letter Agreement on behalf of Landlord and Tenant warrants and represents
he has authority to sign and deliver this Work Letter Agreement and bind the party on behalf of which he has signed. 
  
 (d) If Tenant fails to make any payment relating to the Work as required hereunder, Landlord, at its option, may complete the Work
pursuant to the Approved Plans and continue to hold Tenant liable for the costs thereof and all other costs due to Landlord. Tenant’s failure to pay any amounts owed by Tenant hereunder when due or Tenant’s failure to perform its
obligations hereunder shall also constitute a default under the Lease and Landlord shall have all the rights and remedies granted to Landlord under the Lease for nonpayment of any amounts owed thereunder or failure by Tenant to perform its
obligations thereunder. 
  
 (e) Notices under
this Work Letter Agreement shall be given in the same manner as under the Lease. 
  
 (f) The headings set forth herein are for convenience only. 
  
 (g) This Work Letter Agreement sets forth the entire agreement of Tenant and Landlord regarding the Work.
This Work Letter may only be amended if in writing, duly 

  

 B-9 

 
executed by both Landlord and Tenant. This Work Letter is incorporated into the Second Amendment to Lease by reference and made a part hereof. 
  
 (h) All amounts due from Tenant hereunder shall be deemed to
be additional Rent due under the Lease. 
  
 10. LIMITATION
OF LIABILITY. Any liability of Landlord under this Work Letter Agreement shall be limited solely to its equity interest in the Building, and in no event shall any personal liability be asserted against Landlord in connection with the Work
Letter Agreement nor shall any recourse be had to any other property or assets of Landlord. 
  

									
	LANDLORD:	 	 	 	TENANT:
			
	 LANDLORD-CARLYLE ILLINOIS
 CENTER.
L.L.C., a Delaware limited
 liability company
	 	 	 	 FEDERAL HOME LOAN BANK OF
 CHICAGO, a corporation organized
 under the laws of the United States of America

					
	By:	 	 Lincoln Illinois Center, LLC, a
 Delaware
liability company,
 Managing Member
	 	 	 	 	 	 
					
	By:	 	 Lincoln Investors Group 31,
 Inc., a
Texas corporation,
 Managing Member
	 	 	 	 	 	 
					
	By:	 	/s/    JOHN B. GRISSIM        	 	 	 	By:	 	/s/    THOMAS D. SHEEHAN        
	 Name:
	 	John B. Grissim	 	 	 	 Its:
	 	Thomas D. Sheehan
	 Its:
	 	Vice President	 	 	 	 	 	Senior Vice President

  

 B-10Advances, Collateral Pledge and Security Agreement

  
 Exhibit 10.2

  
 FEDERAL HOME LOAN BANK OF CHICAGO 
 ADVANCES, COLLATERAL PLEDGE, AND SECURITY AGREEMENT 
  
 THIS AGREEMENT, dated as of                 , 20
         between
                                        
                             having its principal place of business at
                             (“Member”) and the FEDERAL HOME LOAN BANK OF CHICAGO, 111 East
Wacker Drive, Chicago, Illinois 60601 (“Bank”). 
  
 WHEREAS, the Member
desires from time to time to participate in the Bank’s credit programs under the terms of this Agreement (as hereinafter defined) and the Bank is authorized to make advances to the Member, subject to the provisions of the Credit Policy of the
Bank adopted from time to time by the Board of Directors of the Bank and communicated to the Member in writing (“Credit Policy”), the Federal Home Loan Bank Act, as now and hereafter amended (the “Act”), and the regulations and
guidelines of the Federal Housing Finance Board now and hereafter in effect (collectively, the “Regulations”); and 
  
 WHEREAS, the Bank requires that advances by the Bank be secured pursuant to this Agreement, and the Member agrees to provide the security the Bank requests in accordance
with this Agreement. 
  
 NOW THEREFORE, the Member and Bank agree as follows:

  
 ARTICLE I 
 DEFINITIONS 
  
 Section 1.01 DEFINITIONS. As used herein, the following terms shall have the following meanings: 
  
 (a) “Additional Collateral” means items of property other than Capital Stock and Eligible Collateral which are accepted by the Bank as security,
as it deems necessary, to fully secure and protect the Bank’s security position on outstanding Advances (as hereinafter defined) or to renew an outstanding Advance in accordance with Section 10(a)(5) of the Act (12 U.S.C. § 1430(a)(5), as
amended) and any Regulations adopted thereunder. 
  
 (b)
“Advance” or “Advances” means any and all loans or other extensions of credit, and all Outstanding Commitment(s) (as hereinafter defined), heretofore, now or hereafter granted by the Bank to, on behalf of, or for the account of,
the Member in accordance with such terms and conditions as are applicable to each such transaction under Advance Lending Plans, Special Offerings, and the Commitment Program as set forth in the Credit Policy (but excluding any obligations that the
Bank may now or hereafter have to honor items or transfer orders under a depository or similar agreement between the Member and the Bank). 
  
 (c) “Agreement” means this Advances, Collateral Pledge, and Security Agreement, together with any and all permitted and authorized amendments,
modifications, or restatements hereof as may be duly entered into by the parties hereto and all documents or other agreements incorporated by reference including, but not limited to, the Credit Policy. 
  
 (d) “Application” means a writing, signed by the Member, and in
such form or forms as shall be specified by the Bank from time to time, by which the Member requests, and which if executed by the Bank shall together with this Agreement evidence the terms of, an Advance or a commitment for an Advance. 

 
 (e) “Capital Stock” means all of the capital stock of the Bank
and all payments which have been or hereafter are made on account of subscriptions to and all unpaid dividends on such capital stock. 
  
 (f) “Collateral” means all property, including the proceeds thereof, heretofore assigned, transferred, or pledged to the Bank by the Member as
collateral for Advances or other extensions of credit prior to the date hereof, and all Capital Stock, Eligible Collateral, and Additional Collateral, including the proceeds thereof, which is now or hereafter pledged to the Bank pursuant to Section
3.01 hereof. 
  

 (g) “Collateral Maintenance Level” means a dollar amount of Qualifying Collateral equal to such
percentage(s) as the Bank may specify from time to time in its Credit Policy of the aggregate dollar amount of (1) the outstanding amounts of all Advances; (2) with respect to each outstanding Swap Transaction, the amount for which the Member is
required to maintain Collateral; (3) letters of credit; and (4) any additional obligations and liabilities of the Member to the Bank. The Bank may increase or decrease the Collateral Maintenance Level at any time. 
  
 (h) “Confirmation of Advance” means a writing or machine readable
electronic transmission, in such form or forms as the Bank may generate from time to time, by which the Bank agrees to and confirms the Member’s telephonic or other unsigned request for an Advance or a commitment for an Advance and which,
together with this Agreement, shall evidence the terms of such Advance or commitment for an Advance. 
  
 (i) “Eligible Collateral” means Capital Stock, First Mortgage Collateral, Government and Agency Securities Collateral, Other Eligible
Collateral, and Other Securities Collateral. 
  
 (j) “Event
of Default” means Event of Default as defined in Section 4.01 hereof. 
  
 (k) “First Mortgage Collateral” means First Mortgage Documents (excluding participation or other fractional interests therein) and all ancillary security agreements, policies and certificates of insurance or
guarantees, rent assignments, FHA mortgage insurance or VA loan guarantee certificates, title insurance policies, evidences of recordation, applications, underwriting materials, surveys, appraisals, approvals, permits, notices, opinions of counsel,
loan servicing data, and all other electronically stored and written records or materials relating to the loans evidenced or secured by the First Mortgage Documents. 
  
 (l) “First Mortgage Documents” means fully disbursed whole first mortgages and deeds of trust (herein
“mortgages”) secured by a first lien on one-to-four unit dwellings, and all notes, bonds, or other instruments (herein “mortgage notes”) evidencing loans secured by such mortgages and any endorsements or assignments thereof to
the Member. 
  
 (m) “Government and Agency Securities
Collateral” means mortgage-backed securities (including participation certificates) issued by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association, obligations guaranteed by the Government National Mortgage
Association, consolidated obligations of the Federal Home Loan Bank System and obligations issued or guaranteed by the United States or an agency thereof. 
  
 (n) “Indebtedness” means all indebtedness, now or hereafter outstanding, of the Member to the Bank, including, without limitation, all Advances,
interest, and all other obligations to pay and liabilities of the Member to the Bank. 
  
 (o) “Lendable Collateral Value” means an amount equal to such percentage as the Bank shall from time to time, in its sole discretion, ascribe to the market value or unpaid principal balances of items of
Qualifying Collateral. 
  
 (p) “Other Eligible
Collateral” means items of property other than Capital Stock, First Mortgage Collateral, Government and Agency Securities Collateral, and Other Securities Collateral such as deposits at a Federal Home Loan Bank and other real estate related
collateral as defined in Section 10(a)(4) of the Act (12 U.S.C. 1430(a)(4), as amended) and in any Regulations adopted thereunder. 
  
 (q) “Other Mortgage Documents” mean mortgages secured by an interest in real property other than a first lien on a one-to-four unit dwelling and
all mortgage notes secured by such mortgages and any endorsements or assignments thereof to the Member. 
  
 (r) “Other Securities Collateral” means securities, other than Government and Agency Securities Collateral, representing a whole interest in
fully disbursed whole first mortgages on improved residential property such as certain classes of REMICs, mortgage-backed debt obligations, collateralized mortgage obligations, mortgage pass-through certificates, and mortgage participation
certificates. 
  
 (s) “Outstanding Commitment(s)” means,
at any point in time, the maximum aggregate principal amount of each Advance or payment which the Bank may be obligated to make to, on behalf of, or for the account of, the Member, regardless of whether such obligation is contingent in whole or in
part, including, without limitation, letters of credit, firm commitments, guarantees, or other arrangements intended to facilitate transactions between the Member and third parties. 
  

 - 2 - 

 (t) “Qualifying Collateral” means Collateral other than Capital Stock which: (1) qualifies as
security for Advances under the terms and conditions of the Credit Policy, the Act, and the Regulations and satisfies requirements that may be established by the Bank; (2) is owned by the Member free and clear of any liens, encumbrances, or other
interests other than the assignment to the Bank hereunder; (3) has not been in default within the most recent 12-month period, excepting only, in the case of First Mortgage Collateral, payments which are overdue by not more than 90 days; (4) in the
case of First Mortgage Collateral, relates to residential real property on which is located a one-to-four unit dwelling that is covered by fire and hazard insurance in an amount at least sufficient to discharge the mortgage loan in full in case of
loss and as to which all real estate taxes are current; (5) in the case of First Mortgage Collateral and Other Eligible Collateral, does not secure an indebtedness on which any director, officer, employee, attorney, or agent of the Member or any
Federal Home Loan Bank is personally liable; and (6) in the case of Government and Agency Securities Collateral, Other Eligible Collateral, Other Securities Collateral, and Additional Collateral, has been offered by the Member to the Bank and
specifically accepted by the Bank as Qualifying Collateral. 
  
 (u) “REMIC” means a “real estate mortgage investment conduit” within the meaning of Section 860D of the Internal Revenue Code of 1986, as amended, or any successor provision thereto. 
  
 (v) “Swap Transaction” means an interest rate swap, interest rate
cap, floor or collar, currency exchange transaction, or similar transaction entered into between the Bank and the Member. 
  
 ARTICLE II 
 ADVANCES AGREEMENT 
  
 Section 2.01 ADVANCE DOCUMENTATION. 
  
 (a) The Member may apply for Advances and commitments for Advances or to
renew an Advance by completing and submitting an Application to the Bank or by telephonic or other unsigned communication (“telephonic application”). The Bank may suspend the use of telephonic applications at any time. The terms of each
Advance or commitment for an Advance shall be conclusively established by this Agreement and by either (1) the Member’s Application when such Application is executed by the Bank without any change; (2) in the case of a telephonic application
received, completed, or modified by the Bank, by a Confirmation of Advance generated by the Bank; or (3) in the case of an open line of credit Advance, the Member’s Daily Investment Deposit Statement (“DIDS”). 
  
 (b) Within three (3) business days of the date of the Member’s receipt
of the Bank’s Confirmation of Advance, the Member shall prepare, sign, and submit to the Bank a completed Application conforming to such Confirmation of Advance. Failure of the Bank to receive such conforming Application from the Member shall
in no way affect the Member’s obligations with respect to such Advance. The Member shall be estopped from asserting any claim or defense with respect to the terms applicable to an Advance or a commitment for an Advance entered into pursuant to
a telephonic application unless, within two (2) business days of receipt of the Bank’s Confirmation of Advance, or, in the case of an open line of credit Advance, the DIDS, the Member delivers to the Bank a written notice specifying the
disputed term(s) or condition(s) of the Advance or commitment for an Advance. Upon the request of the Bank, the Member shall sign and deliver to the Bank a promissory note or notes in such form as the Bank may reasonably require evidencing any
Advance. Unless otherwise agreed to by the Bank in writing, each Advance shall be made by crediting the Member’s Daily Investment Deposit Account (“DID Account”) with the Bank. 
  
 Section 2.02 REPAYMENT OF ADVANCES. 
  
 (a) The Member agrees to repay each Advance in accordance with this Agreement
and the terms and conditions of the Application or Confirmation of Advance evidencing such Advance, or, in the case of an open line of credit Advance, on demand. Interest shall be paid on each Advance at the times specified by the Bank in the Credit
Policy, Application, Confirmation of Advance, or, in the case of an open line of credit Advance, the DIDS, and shall be charged for each day that an Advance is outstanding at the rate applicable to each such Advance. 
  
 (b) The Member shall insure that, on any day on which any payment is due to
the Bank with respect to Advances or other Indebtedness, the Member’s DID Account with the Bank has an available balance in an amount at least equal to the amounts then due and payable to the Bank, and the Member hereby authorizes the Bank to
debit the Member’s DID Account with the Bank for all amounts due and payable with respect to any Advance and for all other amounts due and payable hereunder. In the event that the available balance in the Member’s DID Account is
insufficient to pay such due and payable amounts, the Bank may, without notice to or request from the Member, apply any other deposits, credits, or monies of the 

  

 - 3 - 

 
Member then in the possession of the Bank (and not held by the Bank as bailee for a third party) to the payment of amounts due and payable or, in the sole
discretion of the Bank, the Bank may fund an Advance to the Member in the amount of the insufficiency, which Advance shall bear interest from the date the same shall be made until paid at the rate in effect and being charged by the Bank from time to
time on overdrafts on DID Accounts of its members. 
  
 (c) The
Member shall pay to the Bank, immediately and without demand, interest on any past due principal of and interest on any Advance at an interest rate which is the greater of (1) the rate applicable to such Advance plus one percent (1%), or (2) as
specified in the Credit Policy, but in no event more than any applicable limit set by the Regulations. A payment on any Advance shall be deemed past due if such payment is not received by the Bank on or before the applicable due date provided in the
Application or the Confirmation of Advance, or, in the case of an open line of credit Advance or a declaration pursuant to Section 4.01 hereof, on demand. 
  
 (d) All payments with respect to Advances shall be applied first to any fees or charges applicable thereto and to interest due thereon, in such order as
the Bank may determine, and then to any principal amount thereof that is then due and payable. 
  
 Section 2.03 OUTSTANDING COMMITMENT(S). 
  
 (a) In the event that there are one or more Outstanding Commitment(s) at the time of an Event of Default, the Bank may at its option, and without notice to or request from the Member, make an Advance by crediting a special account of the
Member with the Bank in an amount equal to the Outstanding Commitment(s). The Bank shall have a first priority perfected security interest in any such special account, and amounts credited to such special account may not be withdrawn by the Member
for so long as there shall be Outstanding Commitment(s). Amounts credited to such special account shall be utilized by the Bank for the purpose of satisfying the Bank’s obligations under the Outstanding Commitment(s). When all such obligations
have expired or have been satisfied, the Bank shall disburse the balance, if any, in such special account first to the satisfaction of any amounts then due and owing by the Member to the Bank and then to the Member or its successor’s interest.
Advances made pursuant to this Section 2.03 shall be payable on demand and shall bear interest from the date the same shall be made until paid at the rate in effect and being charged by the Bank from time to time on overdrafts on DID Accounts of its
members, but in no event more than any applicable limit set by the Regulations. 
  
 (b) The Bank shall not honor an Outstanding Commitment to Member if Member’s access to advances is restricted pursuant to § 935.13(a) or (c) of the Regulations. Member releases the Bank from any and all
liability in connection with such action by the Bank. 
  
 Section 2.04
AMORTIZATION OF ADVANCES. 
  
 (a) In the event that the Bank
determines that the creditworthiness of the Member, as determined from time to time by the Bank, does not meet the requirements of the Bank, the Bank may, without limitation of the Bank’s rights upon the occurrence of an Event of Default,
require amortization by means of monthly payments of principal on all or part of the Member’s Advances. The Member agrees to begin making such monthly amortization payments, upon thirty (30) days written notice from the Bank, in such monthly
amounts as the Bank shall specify in writing. Member shall make such payments while any amount remains unpaid on the subject Advances or until notified otherwise by the Bank. No monthly payment shall exceed ten percent (10%) of the original
principal balance of the Advance being amortized. Unless otherwise specified by the Bank in writing to the Member, such monthly amortizing payments shall not extend or modify the maturity date or other scheduled payment dates applicable to the
Advance being amortized. Amortization payments required pursuant to this Section 2.04 shall be in addition to all other payments of principal and interest with respect to Advances. 
  
 (b) In the event the Bank renews an Advance which is not fully secured by Eligible Collateral pursuant to Section 10(a)(5)
of the Act (12 U.S.C. 1430(a)(5), as amended) and any Regulations adopted thereunder, the Member shall reduce the level of such Advance in accordance with a repayment schedule determined by the Federal Housing Finance Board as required by this
section of the Act. 
  
 Section 2.05 DISCRETION OF THE BANK TO GRANT OR DENY
ADVANCES. Nothing contained herein, in the Credit Policy, or in any other documents describing or setting forth the Bank’s credit program and credit policies shall be construed as an agreement or commitment on the part of the Bank to grant
Advances or extend commitments for Advances hereunder or to enter into any other transaction, the right and power of the Bank, in its discretion to either grant or deny any Advance or commitment for an Advance requested hereunder, being expressly
reserved. The determination by the Bank of Lendable Collateral Value shall not constitute a determination by the Bank that the Member may obtain Advances or commitments for Advances in amounts up to such Lendable Collateral Value. 
  

 - 4 - 

 ARTICLE III 
 SECURITY AGREEMENT 
  
 Section 3.01 CREATION OF
SECURITY INTEREST. 
  
 (a) As security for all Indebtedness, the
Member hereby assigns, transfers, and pledges to the Bank, and grants to the Bank a security interest in all of the (i) Capital Stock now or hereafter owned by the Member and all proceeds thereof and (ii) First Mortgage Collateral now or hereafter
owned by the Member, and all proceeds thereof provided, however, that First Mortgage Collateral shall not be subject to the security interest created hereunder if encumbered or disposed of by the Member in conformity with the requirements of Section
3.02(a) hereof. As security for all Indebtedness, the Member hereby assigns, transfers and pledges to the Bank and grants to the Bank a security interest in such Government and Agency Securities Collateral now or hereafter owned by the Member and
all proceeds thereof which is specified pursuant to Section 3.03 or delivered pursuant to Section 3.04. 
  
 (b) The Member also hereby assigns, transfers, and pledges to the Bank as security for all Indebtedness, and grant to the Bank a security interest in such
Other Eligible Collateral, Other Securities Collateral, and Additional Collateral now or hereafter owned by the Member, and all proceeds thereof, which is specified pursuant to Section 3.03 or delivered pursuant to Section 3.04 (1) at any time the
Member shall not have assigned, transferred, or pledged to the Bank, under this Agreement, First Mortgage Collateral and Government and Agency Securities Collateral which are Qualifying Collateral and which have a Lendable Collateral Value at least
equal to the Collateral Maintenance Level; (2) at any time the Member does not qualify under the Bank’s criteria in the Credit Policy for Member eligibility to secure Advances under this Agreement; (3) if the Bank determines in good faith that
the value of the Collateral pledged pursuant to Section 3.01(a) may not be adequately ascertained; or (4) at any time the Bank deems itself insecure. To assure that the Member provides to the Bank Qualifying Collateral with a Lendable Collateral
Value at least equal to the Collateral Maintenance Level at all times, the Bank may require that the Member make, execute, record, and deliver to the Bank additional agreements, financing statements, notices, assignments, listings, powers, and other
documents in connection with any such Collateral being pledged pursuant to this Section 3.01(b) and the Bank’s security interest therein. 
  
 (c) The lien on First Mortgage Collateral created by Section 3.01(a) hereof is limited to an undivided interest in such First Mortgage Collateral equal to
the Indebtedness multiplied by the Collateral Maintenance Level percentage specified in the Bank’s Credit Policy (Collateral). 
  
 Section 3.02 COLLATERAL MAINTENANCE REQUIREMENT. 
  
 (a) The Member shall at all times maintain as Collateral an amount of Qualifying Collateral which has a Lendable Collateral Value that is at least equal
to the then current required Collateral Maintenance Level. The Member shall not assign, pledge, transfer, create any security interest in, sell, or otherwise dispose of any Collateral, nor shall the Member foreclose any First Mortgage Collateral
without the prior written consent of the Bank if: (1) such Collateral has been specified or identified pursuant to Section 3.03 hereof or has been delivered to and is held by or on behalf of the Bank pursuant to Section 3.04 hereof, or the Bank has
otherwise perfected its security interest in such Collateral; or (2) at the time of or immediately after such action, the Member is not or would not be in compliance with the collateral maintenance requirements of the first sentence of this Section
3.02(a) or is or would otherwise be in default under this Agreement. 
  
 (b) Subject to Sections 3.03 and 3.04 hereof, Collateral shall be held by the Member in trust for the benefit of, and subject to the direction and control of, the Bank and will be physically safeguarded by the Member with at least the same
degree of care as the Member uses in physically safeguarding its other property. Without limitation of the foregoing, the Member shall take all action necessary or desirable to protect and preserve the Collateral and the Bank’s interest
therein, including without limitation the maintaining of insurance on property securing First Mortgage Collateral (such policies and certificates of insurance or guaranty relating to such mortgages are herein called “insurance”), the
collection of payments under all mortgages and under all insurance, and otherwise assuring that all mortgages are serviced in accordance with the standards of a reasonable and prudent mortgagee. 
  
 (c) If any Collateral that was Qualifying Collateral ceases to be Qualifying
Collateral, the Member shall promptly notify the Bank in writing of that fact and, if so requested by the Bank, of the reason that the Collateral has ceased to be Qualifying Collateral. If such Collateral was specified or identified pursuant to
Section 3.03 hereof, or delivered to the Bank pursuant to Section 3.04 hereof, the Member shall request withdrawal of such Collateral pursuant to Section 3.05 hereof and shall promptly specify, or deliver, as the case may be, other Qualifying
Collateral having at least the same Lendable Collateral Value as the Collateral so requested to be withdrawn. 
  

 - 5 - 

 (d) The Bank may review the form and sufficiency of all documents pertaining to the Collateral. Such
documents must be satisfactory to the Bank and, if not, such Collateral may not be acceptable as Qualifying Collateral or may have a Lendable Collateral Value applied thereto that is less than the Lendable Collateral Value otherwise applicable under
the Bank’s Credit Policy, as the Bank may specify. The Bank may require that the Member make any or all documents pertaining to the Collateral available to the Bank for its inspection and approval. 
  
 Section 3.03 SPECIFICATION AND IDENTIFICATION OF COLLATERAL. 
  
 (a) Upon the Bank’s written or oral request, or at such times as shall
be necessary to satisfy the requirements of the Bank, or promptly, at any time that the Member becomes subject to any mandatory collateral specification requirements that may be established in the Credit Policy and in any case from time to time
thereafter until such time as may be agreed upon by the Bank in writing, the Member shall deliver to the Bank a status report and accompanying schedules, all in the form(s) prescribed by the Bank, specifying and describing the First Mortgage
Collateral and Government and Agency Securities Collateral pledged as Collateral pursuant to Section 3.01(a) hereof and/or specifying and describing Other Eligible Collateral, Other Securities Collateral, and Additional Collateral pledged pursuant
to Section 3.01(b) hereof. 
  
 (b) The Member shall hold such
amount of the Collateral so specified in the status report and accompanying schedules delivered pursuant to Section 3.03(a) hereof, which is certified by the Member to be Qualifying Collateral, as may be necessary so that the Lendable Collateral
Value of such Qualifying Collateral meets or exceeds the Collateral Maintenance Level at all times, separately from all other property of the Member. Each set of First Mortgage Documents and all Other Mortgage Documents which are a part of such
amount of specified Qualifying Collateral shall be held in a separate file folder with each file folder clearly labeled with the loan identification number and the name of the borrower(s). Each such file folder shall be clearly marked or stamped
with the statement: “The Deed of Trust/Mortgage and Note Relating to This Loan Have Been Assigned to the Federal Home Loan Bank of Chicago.” Each mortgage note evidencing First Mortgage Collateral or Other Eligible Collateral shall be
endorsed by Member at such time as the Bank may request as follows: “Pay to the order of the Federal Home Loan Bank of Chicago without recourse.” All Government and Agency Securities Collateral, Other Securities Collateral, any Other
Eligible Collateral, and Additional Collateral, which are part of such amount of specified Qualifying Collateral being separately held, shall also be marked and assigned to the Bank in such manner as shall be specified by the Bank. If so requested
by the Bank, the Member shall also physically segregate the First Mortgage Documents, Other Mortgage Documents, and the Other Qualifying Collateral described in this Section 3.03(b), which is being separately held, from all other property of the
Member in a manner satisfactory to the Bank. 
  
 Section 3.04 DELIVERY OF
COLLATERAL. 
  
 (a) Upon the Bank’s written or oral request,
or promptly, at any time that the Member becomes subject to any mandatory collateral delivery requirements that may be established in the Credit Policy, and until such time as may be agreed upon by the Bank in writing, the Member shall deliver to
the Bank, or to a custodian designated by the Bank, such amount of Qualifying Collateral as may be necessary so that the Lendable Collateral Value of such Qualifying Collateral held by the Bank, or such custodian, meets or exceeds the Collateral
Maintenance Level at all times. Collateral delivered to the Bank shall be endorsed or assigned, as appropriate, in recordable form by the Member to the Bank, as specified by the Bank. When requested by the Bank, such endorsements or assignments
shall be in blanket form except that, in the case of First Mortgage Documents and Other Mortgage Documents, there shall be separate endorsements and assignments for each county or recording district in which the real property covered by an item of
First Mortgage Collateral or Other Eligible Collateral is located. With respect to First Mortgage Collateral and mortgage loans which are Other Eligible Collateral that are delivered hereunder, the Member need only deliver the First Mortgage
Documents and Other Mortgage Documents, unless otherwise directed by the Bank. Concurrently with the initial delivery of Collateral, the Member shall deliver to the Bank a status report and accompanying schedules, all in the form(s) prescribed by
the Bank, specifying and describing the Collateral held by the Bank or its custodian and certifying that such Collateral is Qualifying Collateral. 
  
 (b) With respect to uncertificated securities pledged to the Bank as Government and Agency Securities Collateral, Other Securities Collateral, or
Additional Collateral hereunder, the delivery requirements contained in this Agreement shall be satisfied by the transfer of a security interest in such securities to the Bank, such transfer to be effected in such manner and to be evidenced by such
documents as shall be specified by the Bank. 
  
 (c) The Member
agrees to pay to the Bank such reasonable fees and charges as may be assessed by the Bank to cover the Bank’s overhead and other costs relating to the receipt, holding, redelivery, and reassignment of Collateral and to reimburse the Bank upon
request for all recording fees and other reasonable expenses, disbursements, and advances incurred or made by the Bank in connection therewith (including the reasonable compensation and the expenses and disbursements of 

  

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any custodian, consultant, or appraiser that may be appointed by the Bank hereunder, and the agents and legal counsel of the Bank and of such custodian). Any
sums owed to the Bank under this Section 3.04(c) may be collected by the Bank, at its option, by debiting the Member’s DID account with the Bank. 
  
 (d) The Member shall, upon request of the Bank, immediately take such other actions as the Bank shall deem necessary or appropriate to perfect the
Bank’s security interest in the Collateral or otherwise to obtain, preserve, protect, enforce, or collect the Collateral or the proceeds thereof. 
  
 Section 3.05 WITHDRAWAL OF COLLATERAL. Upon receipt by the Bank of writings in the form specified by the Bank constituting (a) a request from the Member for the
withdrawal of Collateral which has been specified or identified pursuant to Section 3.03 hereof or has been delivered pursuant to Section 3.04 hereof, or as to which the Bank has otherwise perfected its security interest; (b) a detailed listing of
the Collateral to be withdrawn; and (c) a certificate of a responsible officer of the Member certifying as to the Qualifying Collateral, remaining after such withdrawal, that is specified and identified by the Member or held by the Bank, as
appropriate, and upon the Bank’s determination that the Lendable Collateral Value of the remaining Qualifying Collateral is not less than the current required Collateral Maintenance Level, the Bank shall promptly redeliver, release, or reassign
to the Member, at the Member’s expense, the Collateral specified in the Member’s listing of the Collateral to be withdrawn. Notwithstanding anything to the contrary herein contained, while an Event of Default shall have occurred and be
continuing, or at any time that the Bank reasonably and in good faith deems itself insecure, the Member may not obtain any such withdrawal. 
  
 Section 3.06 BANK’S RESPONSIBILITIES AS TO COLLATERAL. In the event that the Bank takes possession of any Collateral hereunder, the Bank’s duty as to the
Collateral shall be solely to use reasonable care in the custody and preservation of the Collateral in its possession, which shall not include any steps necessary to preserve rights against prior parties nor the duty to send notices, perform
services, or take any action in connection with the management of the Collateral. The Bank shall not have any responsibility or liability for the form, sufficiency, correctness, genuineness, or legal effect of any instrument or document constituting
a part of the Collateral, or any signature thereon or the description or misdescription, or value of property represented, or purported to be represented, by any such document or instrument. The Member agrees that any and all Collateral may be
removed by the Bank from the state or location where situated, and may be subsequently dealt with by the Bank as provided in this Agreement. 
  
 Section 3.07 BANK’S RIGHTS AS TO COLLATERAL; POWER OF ATTORNEY. 
  
 (a) At any time or times, at the expense of the Member, the Bank may in its discretion, before or after the occurrence of an Event of Default, in its own
name or in the name of its nominee or of the Member, do any or all things and take any and all actions that are pertinent to the protection of the Bank’s interest hereunder and, if such actions are subject to the laws of a state, are lawful
under the laws of the State of Illinois including, but not limited to the following: 
  
 (1) Terminate any consent given hereunder; 
  
 (2) Notify obligors on any Collateral to make payments thereon directly to the Bank; 
  
 (3) Endorse any Collateral in the Member’s name or that
has been endorsed by others to the Member’s name; 
  
 (4) Enter into any extension, compromise, settlement, release, renewal, exchange, or other agreement relating to or affecting any Collateral; 
  
 (5) Take any action the Member is required to take or which is otherwise reasonably necessary to (A) sign and record a financing statement
or otherwise perfect a security interest in any or all of the Collateral or (B) obtain, preserve, protect, enforce, or collect the Collateral; 
  
 (6) Take control of any funds or other proceeds generated by the Collateral and use the same to reduce Indebtedness as it becomes due; and

  
 (7) Cause the Collateral to be transferred to
its name or the name of its nominee. 
  
 (b) The Member hereby
appoints the Bank as its true and lawful attorney, for and on behalf of the Member and in its name, place, and stead, to prepare, execute, and record endorsements and assignments to the Bank of all or any item of Collateral, giving or granting to
the Bank, as such attorney, full power and authority to do or perform every lawful act 

  

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necessary or proper in connection therewith as fully as the Member might or could do. The Member hereby ratifies and confirms all that the Bank shall
lawfully do or cause to be done by virtue of this special power of attorney. This special power of attorney is granted for a period commencing on the date of the incurrence of any Indebtedness hereunder and continuing until the discharge of all
Indebtedness and all obligations of the Member hereunder regardless of any default by the Member, is coupled with an interest, and is irrevocable for the period granted. 
  
 Section 3.08 SUBORDINATION OF OTHER LOANS TO FIRST MORTGAGE COLLATERAL. The Member hereby agrees that all mortgage notes which are part of
the First Mortgage Collateral or Other Eligible Collateral (“pledged notes”) shall have priority in right and remedy over any claims for other loans, whenever made, and, however evidenced, which are also secured by the mortgages or
security agreements securing the pledged notes. The pledged notes shall be satisfied out of the property (or proceeds thereof) covered by such mortgages or security agreements before recourse to such property may be obtained for the repayment of
such other loans which are not part of the Collateral. To this end, the Member hereby subordinates the lien of such mortgages and security agreements with respect to such other loans to the lien of such mortgages and security agreements with respect
to the pledged notes. The Member further agrees to retain possession of all notes or other instruments evidencing such other loans and not to pledge, assign, or transfer the same, or any interest therein, except insofar as such other loans may be
pledged to the Bank as part of the Collateral. 
  
 Section 3.09 PROCEEDS OF
COLLATERAL. The Member, as the Bank’s agent, shall collect all payments when due on all Collateral. If the Bank so requires, the Member shall hold such collections separate from its other monies in one or more designated cash collateral
accounts maintained at the Bank and apply them to the reduction of Indebtedness as it becomes due; otherwise, the Bank consents to the Member’s use and disposition of all such collections. 
  
 Section 3.10 REPORTS; COLLATERAL AUDITS; ACCESS. 
  
 (a) The Member shall furnish to the Bank annually, and at such times as the
Bank may request, an audit report with respect to the Member’s Collateral, Qualifying Collateral, and Collateral Maintenance Level prepared by the Member’s external auditor, in accordance with generally accepted auditing standards, and in
form and substance acceptable to the Bank. 
  
 (b) The Member
shall furnish to the Bank at such times as the Bank may request, or as necessary to satisfy the requirements of the Bank, a status report with respect to the Member’s Collateral prepared by the Member in form and substance acceptable to the
Bank, and as of a date within two weeks of the report due date. The status report shall be a written report covering such matters regarding the Collateral as the Bank may require, including listings of mortgages and unpaid principal balances thereof
and certifications concerning the status of payments on mortgages and of taxes and insurance on property securing mortgages. 
  
 (c) All Collateral and the satisfaction of the Collateral Maintenance Level, and any matters relating thereto, shall be subject to audit and verification
by or on behalf of the Bank. Such audits and verifications may occur without notice during the Member’s normal business hours or upon reasonable notice at such other times as the Bank may reasonably request. The Member shall provide access to,
and shall make adequate working facilities available to, the representatives or agents of the Bank for purposes of such audits and verification. Reasonable fees and charges may be assessed to the Member by the Bank to cover overhead and other costs
relating to such audit and verification. 
  
 (d) If so requested
by the Bank, the Member shall promptly report to the Bank any event which reduces the principal balance of any mortgage or securities or other item of Collateral by five percent (5%) or more, whether by prepayment, foreclosure sale, insurance,
guaranty payment, or otherwise. 
  
 (e) The Member shall give the
Bank access at all reasonable times to Collateral in the Member’s possession and to the Member’s books and records of account relating to such Collateral, for the purpose of the Bank’s examining, verifying, or reconciling the
Collateral and the Member’s reports to the Bank thereon. 
  
 (f) If the Member becomes aware or has reason to believe that the Lendable Collateral Value of the Member’s Qualifying Collateral has fallen below the Collateral Maintenance Level, or that a contingency exists which with the lapse of
time could result in the Member failing to meet the Collateral Maintenance Level, the Member shall immediately notify the Bank. 
  
 (g) Notwithstanding anything to the contrary, the Member shall be solely responsible for the accuracy and adequacy of all information and data in each
audit or status report (or other writing specifying and describing any Collateral) submitted to the Bank, regardless of the form in which submitted. To enable the Bank to regenerate any files or data previously furnished to the Bank with respect to
any Collateral or any information contained in any audit or status report, the Member 

  

 - 8 - 

 
shall at all times maintain complete and accurate records and materials supporting and/or relating to any audit or status report and shall make the same
available, on request, to the Bank. The parties hereto agree that the maintenance and retention of such supporting records and materials shall be the sole responsibility of the Member and that the Bank shall not be liable for any loss of such data.

  
 (h) The Bank shall have no duty to make any independent
examination of or calculation with respect to the information submitted in an audit or status report (or in any written schedule that may be submitted by the Member) and, without limiting the generality of the foregoing, the Bank makes no
representation or warranty as to the validity, accuracy, or completeness of any information contained in any written records of the Bank concerning, or of any response to, such audit or status report. 
  
 Section 3.11 MEMBER’S REPRESENTATIONS AND WARRANTIES CONCERNING COLLATERAL. The Member
represents and warrants to the Bank, as of the date hereof and the date of each Advance hereunder, as follows: 
  
 (a) The Member owns and has marketable title to the Collateral and has the right and authority to grant a security interest in the Collateral and to
subject all of the Collateral to this Agreement; 
  
 (b) The
information given from time to time by the Member as to each item of Collateral is true, accurate, and complete in all material respects; 
  
 (c) All the Collateral meets the standards and requirements with respect thereto from time to time established by the Act, the Regulations, and the Bank;

  
 (d) The lien of the First Mortgage Collateral and Other
Eligible Collateral on the real property securing the same is a perfected lien under applicable state law and the lien of the First Mortgage Collateral is a first lien; 
  
 (e) Except as may be approved in writing by the Bank, the Member has not conveyed or otherwise created, and there does not
otherwise exist, any participation interest or other direct, indirect, legal, or beneficial interest in any Collateral on the part of anyone other than the Bank and the Member; 
  
 (f) All signatories to any and all writings that constitute any Collateral are and will be bound as they appear to be by
their signatures and have the requisite authority and capacity (corporate or other) to execute such writings; 
  
 (g) Except as may be approved in writing by the Bank, no account debtor or other obligor owing any obligation to the Member with respect to any item of
First Mortgage Collateral or Other Eligible Collateral has or will have any defenses, offsetting claims, or other rights affecting the right of the Member or the Bank to enforce the writings constituting any such mortgage, mortgage note or
promissory obligation, and no defaults (or conditions that, with the passage of time or the giving of notice or both, would constitute a default) exist or will exist under any such writings; and 
  
 (h) No part of any real property or interest in real property that is the
subject of mortgages included in Qualifying Collateral contains or is subject to the effects of toxic or hazardous materials or other hazardous substances (including those defined in the Comprehensive Environmental Response Compensation and
Liability Act of 1980, as amended, 42 U.S.C. 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. 1801 etseq.; the Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq.; and in the regulations adopted and
publications promulgated pursuant to said laws) the presence of which could subject the Bank to any liability under applicable state or Federal law or local ordinance either at any time that such property is pledged to the Bank or upon the
enforcement by the Bank of its security interest therein. The Member hereby agrees to indemnify and hold the Bank harmless against all costs, claims, expenses, damages, and liabilities resulting in any way from the presence or effects of any such
toxic or hazardous substances or materials in, on, or under any real property or interest in real property that is subject to or included in the Collateral. 
  
 Section 3.12 ADDITIONAL DOCUMENTATION. The Member shall make, execute, acknowledge, record, and deliver to the Bank such financing statements, notices, assignments,
listings, powers, and other documents with respect to the Collateral and the Bank’s security interest therein and in such form as the Bank may reasonably require. 
  

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 ARTICLE IV 
 DEFAULT; REMEDIES 
  
 Section 4.01 EVENTS OF
DEFAULT; ACCELERATION. Upon the occurrence of and during the continuation of any of the following events or conditions of default (“Event of Default”), the Bank may at its option and in its discretion, by a notice to the Member, declare
all or any part(s) of the Indebtedness and accrued interest thereon, including any prepayment fees or charges which are payable in connection with the payment prior to the originally scheduled maturity of any Advance, to be immediately due and
payable without presentment, demand, protest, or any further notice: 
  
 (a) Failure of the Member to pay when due any interest on or principal of any Advance; 
  
 (b) Failure of the Member to perform any promise or obligation or to satisfy any condition or liability contained herein, in any Application, in any
Confirmation of Advance or in any other agreement to which the Member and the Bank are parties; 
  
 (c) Evidence coming to the attention of the Bank that any representations, statements, or warranties made or furnished in any manner to the Bank by or on
behalf of the Member in connection with any Advance, any specification or description of Qualifying Collateral or any report or certification concerning the status, or principal balance of any item of Collateral was false in any material respect
when made or furnished; 
  
 (d) Failure of the Member to maintain
adequate Qualifying Collateral free of any encumbrances or claims as required herein; 
  
 (e) The issuance of any tax, levy, seizure, attachment, garnishment, levy of execution, or other process with respect to the Collateral; 
  
 (f) Any suspension of payment by the Member to any creditor of sums due or the occurrence of any event which results (or
which with the giving of notice or passage of time, or both, will result) in another creditor having the right to accelerate the maturity of any indebtedness of the Member under any security agreement, indenture, loan agreement, or comparable
undertaking; 
  
 (g) Appointment of a conservator, receiver, or
similar official for the Member or any subsidiary of the Member, or the Member’s property, entry of a judgment, decree, or administrative decision adjudicating the Member or any subsidiary of the Member insolvent or bankrupt or an assignment by
the Member or any subsidiary of the Member for benefit of creditors or the appointment of a trustee, conservator, receiver, liquidator, custodian, or similar official for any parent company (direct or indirect) of the Member or the filing of a
petition or application by any person for the appointment of any such official for any such parent of the Member or the transfer of any of the Member’s assets or liabilities (whether by purchase and assumption by any third party or merger or
otherwise) in connection with or as a result of any event heretofore described in this Section 4.01(g); 
  
 (h) Sale by the Member of all or a material part of the Member’s assets or the taking of any other action by the Member to liquidate or dissolve;

  
 (i) Termination for any reason of the Member’s membership
in the Bank, or the Member’s ceasing to be a type of entity that is eligible under the Act to become a member of the Bank; 
  
 (j) Merger, consolidation, or other combination of the Member with an entity which is not a member of the Bank if the nonmember entity is the surviving
entity; or 
  
 (k) The Bank reasonably and in good faith
determines that a material adverse change has occurred in the financial condition of the Member from that disclosed at the time of the making of any Advance or from the condition of the Member as theretofore most recently disclosed to the Bank.

  
 Section 4.02 REMEDIES. 
  
 (a) Upon the occurrence of any Event of Default, the Bank shall have all of
the rights and remedies provided by applicable law which shall include, but not be limited to, all of the remedies of a secured party under the Uniform Commercial Code as in effect in the State of Illinois. 
  

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 (b) Without limiting or affecting other rights of the Bank pertaining to the Collateral contained herein,
the Bank, at its option and in its discretion, may take or cause its agent to take immediate possession of any of the Collateral or any part thereof wherever the same may be found by suit or otherwise. The Bank may sell, assign, and deliver the
Collateral or any part thereof at public or private sale for such price as the Bank deems appropriate without any liability for any loss due to a decrease in the market value of the Collateral during the period held. The Bank shall have the right to
purchase all or part of the Collateral at such sale. If the Collateral includes insurance or securities which will be redeemed by the issuer upon surrender, or any accounts or deposits in the possession of the Bank, the Bank may realize upon such
Collateral without notice to the Member. 
  
 (c) Member waives any
demand, advertisement, or notice of the time or place of intended disposition of any of the Collateral unless required by applicable law. When required, such notification shall be deemed reasonably and properly given if given as provided by
applicable law or in accordance with Section 5.05 hereof at least 5 days before any such disposition. The Member agrees that the Bank may exercise its rights of setoff upon the occurrence of an Event of Default in the same manner as if the Advances
were unsecured. 
  
 (d) Notwithstanding any other provision
hereof, upon the occurrence of any Event of Default at any time when all or part of the obligations of the Member to the Bank hereunder shall be the subject of any guarantee by a third party for the Bank’s benefit and there shall be other
outstanding obligations of the Member to the Bank that are not so guaranteed but that are secured by the Collateral, then any sums realized by the Bank from the Collateral, or from any other collateral pledged or furnished to the Bank by the Member
under any other agreement, shall be applied first to the satisfaction of such other nonguaranteed obligations and then to the Member’s guaranteed obligations hereunder. 
  
 (e) The Member agrees to pay all the costs and expenses of the Bank in the collection of the Indebtedness and enforcement
and preservation of the Bank’s rights and remedies in case of default, including, without limitation, reasonable attorneys’ fees. Any sums owed to the Bank under this Section 4.02(e) may be collected by the Bank, at its option, by debiting
the Member’s DID Account with the Bank. 
  
 Section 4.03 PAYMENT OF
PREPAYMENT CHARGES. Any prepayment fees or charges applicable to an Advance shall be payable at the time of any voluntary or involuntary payment of all or part of the principal of such Advance prior to the originally scheduled maturity thereof,
including without limitation payments that are made as part of a liquidation of the Member or that become due as a result of an acceleration pursuant to Section 4.01 hereof, whether such payment is made by the Member, by a conservator, receiver,
liquidator, or trustee of or for the Member, or by any successor to or any assignee of the Member. 
  
 Section 4.04 CERTAIN PROVISIONS AS TO SALE OF COLLATERAL. In view of the possibility that Federal and state securities laws and Federal and state laws applicable to Member, may impose certain restrictions on the
method by which a sale of the Collateral may be effected, the Bank and the Member agree that any sale of the Collateral as a result of an Event of Default shall be deemed “commercially reasonable” irrespective of whether the notice or
manner of such sale contains provisions, or imposes, or is subject to, conditions or restrictions deemed appropriate to comply with the Securities Act of 1933 or any other applicable Federal or state securities law or any state or Federal law
applicable to Member. It is further agreed that from time to time the Bank may attempt to sell the Collateral by means of private placement. In so doing, the Bank may restrict the bidders and prospective purchasers to those who will represent and
agree that they are purchasing for investment only and not for distribution or otherwise impose restrictions deemed appropriate by the Bank for the purpose of complying with the requirements of applicable securities laws. The Bank may solicit offers
to buy such Collateral, for cash or otherwise, from a limited number of investors deemed by the Bank to be responsible parties who might be interested in purchasing such Collateral. If the Bank solicits offers from not less than three such
investors, then the acceptance by the Bank of the highest offer obtained therefrom (whether or not three offers are obtained) shall be deemed to be a commercially reasonable method of disposing of the Collateral. 
  
 Section 4.05 APPLICATION OF PAYMENTS. Upon the occurrence of any Event of Default, the Bank
shall apply any payment by or recovery from the Member, or any sum realized from Collateral which shall be received by the Bank (a) to payment of all costs of collection and enforcement; (b) to payment of the Indebtedness in such manner as the Bank
shall choose; and (c) to repayment to the Bank of any amounts to be paid or advanced under Outstanding Commitments. The Bank shall, unless otherwise required by applicable law, apply any surplus to the claims of any person(s) legally entitled
thereto with any remaining surplus paid to the Member at such time and in such manner as the Bank shall deem fit irrespective of any manifestation of any contrary intention or desire on the part of the Member or the provisions of any other agreement
between the Bank and the Member. 
  

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 ARTICLE V 
 MISCELLANEOUS 
  
 Section 5.01 GENERAL
REPRESENTATIONS AND WARRANTIES BY THE MEMBER. The Member hereby represents and warrants that, as of the date hereof and the date of each Advance hereunder: 
  
 (a) The Member is not, and neither the execution of nor the performance of any of the transactions or obligations of the Member under this Agreement
shall, with the passage of time, the giving of notice or otherwise, cause the Member to be: (1) in violation of its charter or articles of incorporation, bylaws, the Act or the Regulations, any other law or administrative regulation, any court
decree, or any order of a regulatory authority; or (2) in default under or in breach of any material indenture, contract, or other instrument or agreement to which the Member is a party or by which it or any of its property is bound; 
  
 (b) The Member has full corporate power and authority and has received all
corporate and governmental authorizations and approvals (including without limitation those required under the Act and the Regulations) as may be required to enter into and perform its obligations under this Agreement, to borrow each Advance, and to
obtain each commitment for an Advance; 
  
 (c) The information
given by the Member in any document provided, or in any oral statement made, in connection with an Application, request for an Advance, commitment for an Advance, a pledge, specification, or delivery of Collateral, is true, accurate, and complete in
all material respects; 
  
 (d) The Member, unless otherwise
exempted, is in compliance with any Regulations pertaining to community investment or service adopted pursuant to Section 10(g) of the Act (12 U.S.C. 1430(g), as amended); 
  
 (e) All long-term Advances shall be utilized solely for the purpose of providing funds for residential housing finance.
“Long-term” is defined as five years or greater in term or as defined by the Federal Housing Finance Board; 
  
 (f) Except for any Advances made for liquidity purposes pursuant to Section 10(h) of the Act (12 U.S.C. 1430(h), as amended), any Advance received by the
Member, when not a qualified thrift lender, shall be utilized solely to provide funds for housing finance pursuant to Section 10(e) of the Act (12 U.S.C. 1430(e), as amended); and 
  
 (g) The member, if a savings association, is a qualified thrift lender and will immediately notify the Bank if it becomes a
non-qualified thrift lender. 
  
 Section 5.02 ASSIGNMENT. The Member hereby gives
the Bank the full right, power, and authority to assign or transfer all or any part of the Bank’s right, title, and interest in and to this Agreement, and to pledge, assign, or negotiate to any other Federal Home Loan Bank or to any other
person or entity, with or without recourse, all or any part of the Indebtedness or participations therein, and may assign and deliver the whole or any part of the Collateral to the transferee, which shall succeed to all the powers and rights of the
Bank in respect thereof, and the Bank shall thereafter be forever relieved and fully discharged from any liability or responsibility with respect to the Collateral so assigned or pledged, and all references herein to the Bank shall be read to refer
to the pledgee or assignee. The Member may not assign or transfer any of its rights or obligations hereunder without the express prior written consent of the Bank. 
  
 Section 5.03 AMENDMENT; WAIVERS. No modification, amendment, or waiver of any provision of this Agreement or consent to any departure
therefrom shall be effective unless in a writing executed by a responsible officer of the party against whom such change is asserted and shall be effective only in the specific instance and for the purpose of which given. No notice to or demand on
the Member in any case shall entitle the Member to any other or further notice or demand in the same, or similar or other circumstances. Any forbearance, failure, or delay by the Bank in exercising any right, power, or remedy hereunder shall not be
deemed to be a waiver thereof, and any single or partial exercise by the Bank of any right, power, or remedy hereunder shall not preclude the further exercise thereof. Every right, power, and remedy of the Bank shall continue in full force and
effect until specifically waived by the Bank in writing. 
  
 Section 5.04
JURISDICTION; LEGAL FEES. In any action or proceeding brought by the Bank or the Member in order to enforce any right or remedy under this Agreement, the parties hereby consent to, and agree that they will submit to, the jurisdiction of the United
States District Court for the Northern District of Illinois or, if such action or proceeding may not be brought in Federal court, the jurisdiction of the courts of the State of Illinois located in the City of Chicago. The Member agrees that if any
action or proceeding is brought by the Member seeking to obtain any legal or equitable relief against the Bank under or arising out of this Agreement or any transaction contemplated hereby and such relief is not granted by the final 

  

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decision, after any and all appeals, of a court of competent jurisdiction, the Member will pay all attorneys’ fees and other costs incurred by the Bank
in connection therewith. The Member agrees to reimburse the Bank for all costs and expenses (including reasonable fees and out-of-pocket expenses of counsel for the Bank) incurred by the Bank in connection with the enforcement or preservation of the
Bank’s rights under this Agreement including, but not limited to, its rights in respect of any Collateral and the audit or possession thereof. Any sums owed to the Bank under this Section 5.04 may be collected by the Bank, at its option, by
debiting the Member’s DID Account with the Bank. 
  
 Section 5.05 NOTICES.
Except as provided in the last sentence of this Section 5.05, any written notice, advice, request, consent, or direction given, made, or withdrawn pursuant to this Agreement shall be either in writing or transmitted electronically and reproduced
mechanically by the addressee, and shall be given by first class mail, postage prepaid, by telecopy or other facsimile transmission, or by private courier or delivery service. All non-oral notices shall be deemed given when actually received at the
principal office of the Bank or the Member, as appropriate. All notices shall be designated to the attention of an office or section of the Bank or of the Member if the Bank or the Member has made a request for the notice to be so addressed. Any
notice by the Bank to the Member pursuant to Sections 3.03 or 3.04 hereof may be oral and shall be deemed to have been duly given to and received by the Member at the time of the oral communication. 
  
 Section 5.06 SIGNATURES OF MEMBER. For purposes of this Agreement, documents shall be deemed
signed by the Member when a signature of an authorized signatory or an authorized facsimile thereof appears on the document. The Bank may rely on any signature or facsimile thereof which reasonably appears to the Bank to be the signature of an
authorized person, including signatures appearing on documents transmitted electronically to and reproduced mechanically at the Bank. The secretary or an assistant secretary of the Member shall from time to time furnish to the Bank, on forms
provided by the Bank, a certified copy of the resolution of the Board of Directors of the Member authorizing persons to apply on behalf of the Member to the Bank for Advances and commitments for Advances and otherwise act for and on behalf of the
Member in accordance with this Agreement together with specimen signatures of such persons. Such certifications are incorporated herein and made a part of this Agreement and shall continue in effect until expressly revoked in writing by the Member
notwithstanding that subsequent certifications may authorize additional persons to act for and on behalf of the Member. 
  
 Section 5.07 APPLICABLE LAW; SEVERABILITY. In addition to the terms and conditions specifically set forth herein and in any Application or Confirmation of an Advance
between the Bank and the Member, this Agreement and all Advances and all commitments for Advances shall be governed by the statutory and common law of the United States and, to the extent Federal law incorporates or defers to state law, the laws
(exclusive of the choice of law provisions) of the State of Illinois. Notwithstanding the foregoing, the Uniform Commercial Code as in effect in the State of Illinois shall be deemed applicable to this Agreement and to any Advance hereunder and
shall govern the attachment and perfection of any security interest granted hereunder to the extent that the Act, Regulations, or other statutory law of the United States is not applicable. In the event that any portion of this Agreement conflicts
with applicable law, such conflict shall not affect other provisions of this Agreement which can be given effect without the conflicting provision, and to this end the provisions of this Agreement are declared to be severable. 
  
 Section 5.08 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to the
benefit of the successors and permitted assigns of the Member and Bank. 
  
 Section 5.09 ENTIRE AGREEMENT. This Agreement embodies the entire agreement and understanding between the parties hereto relating to the subject matter hereof and supersedes all prior agreements between such parties which relate to such
subject matter. Notwithstanding the above, Advances and commitments for Advances made by the Bank to the Member prior to the execution of this Agreement shall continue to be governed by the terms of the Application or Confirmation of Advance
pursuant to which such Advances and commitments for Advances were made, and otherwise by the terms and conditions of this Agreement. 
  
 Section 5.10 CAPTIONS AND HEADINGS. The captions and headings in this Agreement are for convenience only and shall not be considered as part of or affect the construction
or interpretation of any provision of this Agreement. 
  
 Section 5.11 SURVIVAL OF
REPRESENTATIONS AND WARRANTIES. All representations and warranties by Member contained in this Agreement or made in writing in connection herewith, shall be continuing and shall survive execution and delivery of this Agreement and the making of any
Advances. 
  

 - 13 - 

 IN WITNESS WHEREOF, the Member and the Bank have caused this Agreement to be signed in their names by their duly
authorized officers as of the date first above mentioned. 
  

	
	MEMBER
	
	  
	(Typed Name of Member)

  

					
	 By:
                                        
    
	  	 By:                                      
      
	  	 
			
	 Title:
                                       
 
	  	 Title:
                                       
 
	  	 

  
 MEMBER ACKNOWLEDGMENT

  

			
	 STATE OF
                    
	  	 )

	 	  	 ) ss:

	 COUNTY OF                 
	  	 )

  
 On this
                 day of                     , 20
         , before me personally came
                                     and
                                , to me known, who, being by me duly sworn, did
depose and state that said person is the                                  and
                                of the corporation described in and which executed
the above instrument; that said people know the seal of the corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation; and that each person signed
his/her name thereto by order of the Board of Directors of said corporation. 
  

	
	
	 
	Notary Public

  
 FEDERAL HOME LOAN BANK OF
CHICAGO 
  

					
	 By:
                                        
    
	  	 By:                                      
      
	  	 
			
	 Title:
                                       
 
	  	 Title:
                                       
 
	  	 

  
 FEDERAL HOME LOAN BANK
OF CHICAGO ACKNOWLEDGEMENT 
  

			
	 STATE OF
                    
	  	 )

	 	  	 ) ss:

	 COUNTY OF                 
	  	 )

  
 On this
                 day of                     , 20
         , before me personally came
                                     and
                                    , to me known, who, being
by me duly sworn, did depose and state that said person is the
                                     and
                                     of the corporation
described in and which executed the above instrument; that said people know the seal of the corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation;
and that each person signed his/her name thereto by order of the Board of Directors of said corporation. 
  

	
	
	 
	Notary Public

  

 - 14 -

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