Document:

Form of Key Employee Severence Agreement for Executive Officers

 Exhibit 10.6 
 FORM OF KEY EMPLOYEE SEVERANCE 
 AGREEMENT FOR EXECUTIVE OFFICERS 
 AND FIRST AMENDMENT THERETO 
 The attached form
is identical for the following 
 Executive Officers: 
 Michael R. Barker 
 Brian K. Fike 
 Douglas Iverson 
 Paul J. Weaver 
 Jonathan R. West 

 KEY EMPLOYEE 
 SEVERANCE AGREEMENT 
 This Agreement is
entered into as of the 1st day of January, 2001, by and between the FEDERAL HOME LOAN BANK OF INDIANAPOLIS, a
corporation organized under the laws of the United States (the “Bank”) and
                                        
(the “Executive”). 
 WHEREAS, the Executive has been effective in his service to the Bank, and the Bank recognizes the valuable
services that the Executive has rendered and desires to be assured that the Executive will continue his active participation in the business of the Bank; and 
 WHEREAS, the Executive is willing to continue to serve the Bank but desires assurance that, in the event of any consolidation, change in control or reorganization of the Bank, he will continue to have the
responsibility and status he has earned, either with the Bank or with a successor to the Bank; 
 NOW, THEREFORE, in consideration of the
promises and the mutual agreements herein contained, the Bank and the Executive hereby agree as follows: 
 1. Definitions.

 “Bank” shall mean the Federal Home Loan Bank of Indianapolis and any other entity within the definition of “Bank” in
Section 6(a) hereof. 
 “Cause” shall mean (i) the continued failure of the Executive to perform his duties with the Bank
(other than any such failure resulting from Disability), after a demand for performance, pursuant to a resolution of the Bank’s Board of Directors, is delivered to the Executive by the Chair of the Board of Directors of the Bank, which
specifically identifies the manner in which the Executive has not performed his duties, (ii) the personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated
duties, or willful violation of any law, rule or regulation (other than routine traffic violations or similar offenses); or (iii) the removal of the Executive for cause by the Federal Housing Finance Board pursuant to 12 U.S.C. 1422b(a)(2), or
by any successor agency to the Federal Housing Finance Board pursuant to a similar statute. 
 “Compensated Termination” shall have
the meaning set forth in Section 2(a). 
 “Disability” shall mean, as a result of the Executive’s incapacity due to
physical or mental illness, the Executive shall have been absent from his duties with the Bank for an aggregate of twelve (12) out of fifteen (15) consecutive months and, within thirty (30) days after a Notice of Termination is
thereafter given by the Bank to the Executive, the Executive shall not have returned to the full-time performance of the Executive’s duties. 

 “Good Reason” shall mean any of the following: 
 (i) during the period (1) beginning with the earliest to occur of the following three dates, as applicable: (A) twelve
(12) months prior to the execution of a definitive agreement regarding a Reorganization of the Bank or (B) if a Reorganization has been mandated by federal statute, rule, regulation or directive, twelve (12) months prior to the
effective date of such Reorganization or (C) twelve (12) months prior to the adoption of a plan or proposal for the liquidation or dissolution of the Bank, and (2) ending twenty-four (24) months after the effective date of such
Reorganization, 
  

	 	(a)	a change in the Executive’s status, position, job title or principal duties and responsibilities as a key employee of the Bank which does not represent a promotion from the
Executive’s status and position as in effect as of the date hereof (“Position”), or 

  

	 	(b)	the assignment to the Executive of any duties or responsibilities (or removal of any duties or responsibilities), which assignment or removal is inconsistent with such Position, or

  

	 	(c)	any removal of the Executive from such Position (including, without limitation, all demotions and harassing assignments), except in connection with the termination of the
Executive’s employment for Cause or Disability, or as a result of the Executive’s death; 

 (ii)
within twenty-four (24) months after the effective date of a Reorganization of the Bank, (a) a reduction by the Bank in the Executive’s base salary as in effect immediately prior to such Reorganization, or (b) the Bank’s (or
its successor’s) failure to increase (within 12 months of the Executive’s last increase in base salary) the Executive’s base salary after a Reorganization of the Bank in an amount which is not less than 50% of the average percentage
increase in base salary for all officers of the Bank effected in the preceding twelve (12) months; 
 (iii) within
twenty-four (24) months after the effective date of a Reorganization of the Bank, (a) any failure by the Bank to continue in effect any plan or arrangement, including, without limitation, benefit and incentive plans, in which the Executive
is participating immediately prior to such Reorganization (hereinafter referred to as “Plans”), unless such Plans have been replaced with similar benefits that are not materially less than the Executive’s benefits under such Plans, or
(b) the taking of any action by the Bank which would adversely affect the Executive’s participation in or materially reduce the Executive’s benefits under any such Plan or in or under fringe benefits enjoyed by the Executive
immediately prior to the time of such Reorganization of the Bank; 
  

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 (iv) any material breach by the Bank of any provisions of this Agreement or any other
agreement with the Executive; or 
 (v) any failure by the Bank or its successors and assigns to obtain the assumption of this
Agreement by any successor or assign of the Bank. 
 “Notice of Termination” shall mean a written notice which shall indicate those
specific termination provisions in this Agreement upon which the Bank or the Executive, as the case may be, has relied for such termination and which sets forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under the provision so indicated. 
 “Payment Determination Date” shall have the
meaning set forth in Section 2(b). 
 “Reorganization” of the Bank shall mean the occurrence at any time of any of the
following events: 
 (i) The Bank is merged or consolidated with or reorganized into or with another bank or other entity, or
another bank or other entity is merged or consolidated into the Bank; 
 (ii) The Bank sells or transfers all, or
substantially all of its business and/or assets to another bank or other entity; or 
 (iii) The liquidation or dissolution of
the Bank. 
 “Retirement” shall mean the planned and voluntary termination by the Executive of his employment on or after reaching
the earliest retirement age permitted by the Bank’s qualified retirement plans. 
 2. Compensated Termination. 
 (a) Compensated Termination. If the Executive incurs a Compensated Termination while the Executive is employed by the Bank or
within twenty-four (24) months after the effective date of a Reorganization of the Bank (whether the Executive is then employed by the Bank or a successor to the Bank as a result of such Reorganization), the Executive shall be entitled to the
benefits provided in Section 4(a). For purposes of this Agreement, a “Compensated Termination” means termination of the Executive’s employment under either of the following circumstances: 
 (i) By the Executive for Good Reason; or 
  

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 (ii) By the Bank, or by its successor in a Reorganization, without Cause at any time
during the period (1) beginning with the earliest to occur of the following three dates, as applicable (A) twelve (12) months prior to the execution of a definitive agreement regarding a Reorganization, or (B) if a Reorganization
has been mandated by federal statute, rule, regulation or directive, twelve (12) months prior to the effective date of such Reorganization, or (C) twelve (12) months prior to the adoption of a plan or proposal for the liquidation or
dissolution of the Bank, and (2) ending twenty-four (24) months after the effective date of such Reorganization. 
 (b) Payment Determination Date. “Payment Determination Date,” for purposes of determining when a payment resulting from a Compensated Termination must be made pursuant to Section 4(a), shall mean the effective date of
the termination of the Executive’s employment with the Bank if such termination is a “Compensated Termination.” 
 (c) Non-Compensated Termination. For the avoidance of doubt, none of the following events shall result in any payment to the Executive for a Compensated Termination under Section 4(a): 
 (i) The termination of employment by the Executive without Good Reason; 
 (ii) The termination of the Executive’s employment for Cause by the Bank or its successor in a Reorganization; 
 (iii) The termination of the Executive’s employment Without Cause by the Bank or its successor in a Reorganization, (1) prior to
the date which is the earliest to occur of the following three dates, as applicable: (A) twelve (12) months prior to the execution of a definitive agreement regarding a Reorganization of the Bank or (B) if a Reorganization has been
mandated by federal statute, rule, regulation or directive, twelve (12) months prior to the effective date of such Reorganization or (C) twelve (12) months prior to the adoption of a plan or proposal for the liquidation or dissolution
of the Bank, or (2) more than twenty-four (24) months after the effective date of a Reorganization; 
 (iv) The
termination of the Executive’s employment by the Bank or its successor in a Reorganization for Disability; 
 (v) The
death of the Executive; or 
 (vi) The Retirement of the Executive. 
  

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 3. Termination of Employment. 
 (a) Termination by the Bank. The Bank may terminate the employment of the Executive as follows: 
 (i) For Cause upon the adoption of a resolution by the affirmative vote of not less than a majority of the entire membership of the
Bank’s Board of Directors at a meeting of the Board (after reasonable notice to the Executive and an opportunity for the Executive, together with counsel, to be heard by the Board), finding that in the good faith opinion of the Board the
Executive was guilty of conduct set forth in the definition of “Cause” in Section 1 hereof and specifying the particulars thereof in detail. A vote of the Board is not required if the Executive is removed for cause by the Federal
Housing Finance Board pursuant to 12 U.S.C. 1422b(a)(2); 
 (ii) Without Cause; 
 (iii) Upon the Disability of the Executive; and 
 (iv) Upon the death of the Executive. 
 (b) Termination by Executive. The Executive may terminate his employment with the Bank as follows: 
 (i) For Good Reason; 
 (ii) Without Good Reason; or 
 (iii) Upon the Executive’s Retirement, in which case the Executive shall be entitled to all benefits under any retirement plan of the
Bank and other plans to which the Executive is a party. 
 (c) Preservation of Compensated Termination. The provisions
of Sections 3(a) and 3(b) are included in this Agreement for clarification of the rights of termination of the employment relationship between the Bank and the Executive, but such provisions shall not prejudice the Executive’s right to receive
payments or benefits required to be provided to the Executive if any such termination is a “Compensated Termination.” 
 (d) Notice of Termination. 
 (i) Any termination by the Bank for Disability or Cause shall be communicated by
a Notice of Termination; provided, however, that the failure by the Bank to give notice in such circumstances shall not constitute a Compensated Termination. 
  

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 (ii) Any termination of employment by the Executive for Good Reason will be a Compensated
Termination only if the Executive gives Notice of Termination to the Bank therefor within ninety (90) days of the event or occurrence which constitutes “Good Reason”; provided, further, that, if the Executive gives such notice of
termination to the Bank in a timely manner, the Executive shall not be deemed to have waived any of his rights hereunder in the event he remains in the employment of the Bank while he and the Bank engage in good faith discussions to resolve any
event or occurrence which constitutes “Good Reason.” 
 (iii) Any termination by the Bank without Cause or by the
Executive without Good Reason shall be communicated to the other party in accordance with the general notice provisions of this Agreement. 
 4. Payment for Compensated Termination. 
 (a) In the event of a Compensated Termination, the Bank shall pay
or provide the Executive the following: 
 (i) an amount equal to 2.99 times the average of the three (3) preceding
calendar years’ base salary, bonuses, and any other cash compensation (taxable or non-taxable) paid to the Executive during such years; plus 
 (ii) an amount equal to 2.99 times the average of the Executive’s salary deferrals and employer matching contributions under the Bank’s Supplemental Executive Thrift Plan and the Financial Institutions
Thrift Plan for the three (3) preceding calendar years; plus 
 (iii) an amount equal to 2.99 times the average of the
three (3) preceding calendar years’ taxable portion of the Executive’s automobile allowance provided by the Bank; plus 
 (iv) an additional amount under the Bank’s non-qualified Supplemental Executive Retirement Plan (“SERP”), equal to the additional annual benefit under Section 3.1 of the SERP with the benefit under
Section 3.1 (i) being calculated as if: 
  

	 	(w)	the Executive is three (3) years older than his actual age; 

  

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	 	(x)	the Executive had three (3) additional years of service at the same annual rate of compensation (as defined in the Regulations Governing the Comprehensive Retirement Program of
the Financial Institutions Retirement Fund as from time to time amended, and as adopted by the Bank) in effect for the 12 month period ending on the December 31 date which immediately precedes the Compensated Termination (including any
compensation deferred by the Executive); 

  

	 	(y)	the Executive maintained the same deferral election as in effect on the date immediately preceding his Compensated Termination; and 

  

	 	(z)	the SERP continued in effect without change in accordance with its terms as in effect on the date immediately preceding the Compensated Termination. 

 The Bank shall distribute such amount (except the amount provided under Section 4(a)(iv)) in a lump sum in cash within twenty (20) days of the
Payment Determination Date. The amount provided under Section 4(a)(iv) above shall be distributed at the same time as the Executive’s benefit under the SERP is distributed. 
 (b) If the aggregate payments received or to be received by the Executive pursuant to this Agreement exceed the highest amount permissible
without triggering payment of an excise tax under Sections 280G and 4999 of the Internal Revenue Code of 1986, as amended, including without limitation, any successor excise tax, tax penalties or alternative federal tax which is not ordinary federal
income tax (“Code”), the Executive will receive from the Bank an additional gross-up payment sufficient to provide him with the same after-tax benefits as he would have received had the excise tax under the Code not been imposed.

 (c) Notwithstanding Section 4(a), if the Bank is not in compliance with any applicable regulatory capital or
regulatory leverage requirement or if the payment would cause the Bank to fall below applicable regulatory requirements, such payment shall be deferred until such time as the Bank achieves compliance with its regulatory requirement. 
 (d) To the extent the Executive is eligible, he shall continue after a Compensated Termination to be covered by the Bank’s medical
and dental insurance plans in effect immediately prior to the Compensated Termination, for thirty-six (36) months, subject to the Executive’s payment of the Employee’s portion of the cost of such coverage. In the event the Executive
is ineligible under the terms of such plans to continue to be so covered or such plans shall have been modified, the Bank shall provide 

  

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through other sources coverage which is substantially equivalent to the coverage provided immediately prior to the Compensated Termination, subject to the
Executive’s payment of a comparable portion of the cost of such coverage as under the Bank’s medical and dental insurance plans. If during this time period the Executive should enter into employment providing for comparable medical and
dental insurance coverage, his participation in the medical and dental plans provided by the Bank shall cease. 
 (e) The Bank
shall reimburse the Executive for all reasonable legal, accounting, financial advisory and actuarial expenses incurred by the Executive before or at the time of the execution of this Agreement and at the time any payments are made upon the
occurrence of a Compensated Termination. 
 (f) The Executive shall be responsible for the payment of all federal, state and
local income taxes which may be due with respect to any payments made to the Executive pursuant to this Agreement, except for the ordinary federal and state income tax owed by the Executive due to the gross-up payment made to the Executive under
subsection 4(b) of this Agreement. 
 5. No Obligation to Seek Further Employment; No Effect on Other Contractual Rights. 

(a) The Executive shall not be required to seek other employment, nor shall any payment made under this Agreement be reduced by any
compensation received from other employment, except as set forth in the last sentence of Section 4(d). 
 (b) The
provisions of this Agreement, and any payment provided for hereunder, shall not reduce any amounts otherwise payable, or in any way diminish the Executive’s existing rights, or rights which would accrue solely as a result of the passage of
time, under any Plan. 
 6. Successor to the Bank. 
 (a) This Agreement is binding upon the successors and assigns of the Bank. The Bank and its successors and assigns will require any
successor or assign (whether direct or indirect, in a Reorganization, by operation of law, or otherwise) to all or substantially all of the business and/or assets of the Bank, to enter into a written agreement in form and substance satisfactory to
the Executive, expressly, absolutely and unconditionally to assume and agree to perform this Agreement in the same manner and to the same extent that the Bank would be required to perform it if no such succession or assignment had taken place. In
such event, the Bank agrees that it shall pay or shall cause such employer to pay any amounts owed to the Executive pursuant to Section 4 hereof. 
  

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 As used in this Agreement, “Bank” shall mean the Bank as hereinbefore defined and any successor
or assign to its business and/or assets as aforesaid which executes and delivers the agreement provided for in this Section 6 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. If at any time
during the term of this Agreement the Executive is employed by any corporation a majority of the voting securities of which is then owned by the Bank, the term “Bank” shall include such employer. Whether or not another entity becomes the
successor or assign of the Bank under this Agreement, the maximum amount which the Executive may receive from all sources under this Agreement in a Compensated Termination shall be the amounts set forth in Section 4 hereof. 
 (b) This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal and legal representatives, executors,
administrators, successors, heirs, distributees, and legatees. If the Executive should die while any amounts are still payable to him hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the beneficiary designated by notice in writing executed by the Executive and filed with the Bank, or failing such designation, to the Executive’s estate. 
 7. Late Payment of Benefits. Any payment made later than the time provided for in Section 4(a) of this Agreement for whatever reason,
including, without limitation, the reasons set forth in Section 4(c), shall include interest at the Bank’s cost of funds plus five percent (5%), which shall begin to accrue on the tenth (10th) day following the Executive’s
Payment Determination Date. 
 8. Employment Rights. This Agreement shall not confer upon the Executive any right to continue in the
employ of the Bank and shall not in any way affect the right of the Bank to dismiss or otherwise terminate the Executive’s employment at any time and for any reason with or without cause. This Agreement is not intended (i) to be an
employment agreement or (ii) to define all aspects of the employment relationship between the Bank and the Executive including, but not limited to applicable employment or benefit policies of the Bank. To the extent there is any conflict
between the terms hereof and the terms of any employment or benefit policies of the Bank, the terms of this Agreement shall control. Any payments or benefits to which the Executive may be entitled under Section 4 hereof will not constitute
wages for work performed by the Executive. 
 9. Tax Withholding. The Bank will withhold from any amounts payable to Executive under
this Agreement to satisfy all applicable federal, state, local or other withholding taxes. All amounts payable under Section 4(a) are considered “wages” to be reported on Form W-2. The normal withholding rules for wages apply. The
Bank will also withhold any excise taxes owed under Code Section 4999. 
  

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 10. Notice. For purposes of this Agreement, notices and all other communications provided for in
the Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand, delivered by a nationally-recognized overnight courier service, or mailed by United States registered mail, return receipt requested, postage
prepaid, as follows: 
 If to the Bank: 
 Federal Home Loan Bank of Indianapolis 
 8250 Woodfield Crossing Boulevard 
 P.O. Box 60 
 Indianapolis, Indiana 46206 
 Attention: Chair of the Board of Directors 
 With a copy to the President 
 If to the Executive: 
 ______________________________ 
 8250 Woodfield Crossing Boulevard 
 P.O. Box 60 
 Indianapolis, Indiana 46206 
 or such other address as either party may have furnished to the other in writing in accordance
herewith. Any notice shall be effective upon receipt. 
 11. Legal Fees and Expenses. The Bank shall pay all reasonable legal fees and
expenses which the Executive may incur as a result of the Bank’s contesting the validity or enforceability of this Agreement or the calculation of amounts payable hereunder so long as the Executive is wholly or partially successful on the
merits or the parties agree to a settlement of the dispute. 
 12. Term. This Agreement shall remain in effect during the employment
of the Executive by the Bank, its successors or assigns, and shall survive termination of such employment until all payments and benefits, if any, under this Agreement have been paid or satisfied. 
 13. Arbitration. 
 (a)
Disputes regarding this Agreement are subject to the Federal Home Loan Bank of Indianapolis Agreement to Arbitrate by and between the Bank and the Executive dated April 14, 2000 (“Arbitration Agreement”). No cancellation, replacement
or 

  

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modification to the arbitration procedures under the Arbitration Agreement shall be effective unless agreed to in writing by both the Bank and the Executive.
In the event of any conflict between the provisions of this Agreement and the Arbitration Agreement, the provisions of this Agreement shall control. 
 (b) If within thirty (30) days after any Notice of Termination is given, the party receiving such Notice of Termination notifies the other party that a dispute exists concerning the Termination, the parties shall
promptly proceed to arbitration as provided in (a) above. Notwithstanding the pendency of any such dispute, the Bank shall continue to pay the Executive his base salary and provide such other compensation and benefits, all as in effect
immediately prior to the Notice of Termination. If it is determined that the Executive is not entitled to any compensation under Section 4 of this Agreement, the Executive shall return all cash amounts to the Bank promptly following the date of
resolution by arbitration, with interest thereon commencing as of the date of the resolution of the dispute by arbitration at the prime rate of interest as published by the Wall Street Journal from time to time. Any cash amounts paid to the
Executive pending the resolution of the dispute by arbitration shall offset any amounts determined to be due to the Executive under Section 4. 
 14. Miscellaneous. 
 (a) No Modification. No provisions of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing signed by the party or parties hereto to be bound. 
 (b) No Waiver. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 
 (c) Entire Agreement.
No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. 
 (d) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Indiana (excluding
conflicts of laws principles), except to the extent such law is preempted by the laws of the United States. 
 (e)
Headings. Section or paragraph headings contained herein are for convenience of reference only and are not to be considered a part of this Agreement. 
 (f) Validity. The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which shall remain in full force and effect. 
  

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 (g) Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed to be an original but all of which together will constitute one and the same instrument. 
 IN WITNESS WHEREOF, this
Agreement is executed as of the date first above written and is effective as of January 1, 2001. 
  

									
	THE EXECUTIVE:	 		 	FEDERAL HOME LOAN BANK OF INDIANAPOLIS:
					
	  	 	  	 		 	By:	 	  
		 		 		 		 	Chair, Board of Directors
					
		 		 		 	By:	 	  
		 		 		 		 	Vice Chair, Board of Directors

  

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 FIRST AMENDMENT OF KEY EMPLOYEE 
 SEVERANCE AGREEMENT 
 WHEREAS, the FEDERAL HOME LOAN BANK OF
INDIANAPOLIS, a corporation organized under the laws of the United States (the “Bank”) and                      (the
“Executive”), entered into a Key Employee Severance Agreement (the “Agreement”) on                     ,
            ; and 
 WHEREAS, the Board of Directors of the Bank has
determined, in its best business judgment, that the Agreement should be amended to replace the Agreement’s definition of “Disability” with a definition that is provided in Section 409A of the Internal Revenue Code of 1986, as
amended; and 
 WHEREAS, the Executive also desires to amend the definition of “Disability” provided in the Agreement; and

 WHEREAS, pursuant to the authority contained in Section 14(a) of the Agreement, the Bank and the Executive may amend the Agreement by
a writing executed by both the Bank and the Executive; 
 NOW, THEREFORE, pursuant to the amending authority under Section 14(a) of the
Plan, the Agreement is hereby amended by replacing the definition of “Disability” in Section 1 of the Agreement with the following definition, effective as of the earlier of January 1, 2005 or the effective date of the Agreement:

 “Disability shall mean the Executive (i) is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering the
Bank’s employees.” 
 The Agreement shall remain the same in all other respects. 
 IN WITNESS WHEREOF, the Bank, by its duly authorized officers, and the Executive, have executed this First Amendment this     
day of                     , 2005, but effective as stated herein. 
  

									
	THE EXECUTIVE:	 		 	FEDERAL HOME LOAN BANK OF INDIANAPOLIS:
					
	  	 	  	 		 	By:	 	  
		 		 		 		 	Chair, Board of Directors
					
		 		 		 	By:	 	  
		 		 		 		 	Vice Chair, Board of DirectorsExchange Agreement

 Exhibit 4.16 
 This EXCHANGE AGREEMENT, dated as of March 29, 2007 (this “Agreement”), between PNC PREFERRED FUNDING TRUST II, a Delaware statutory trust (together with its successors and assigns “PNC
Delaware”), and The PNC Financial Services Group, Inc., a Pennsylvania corporation (together with its successors and assigns “PNC”), and PNC Bank, National Association, a national banking association (together with its
successors and assigns “PNC Bank”). 
 RECITALS 
 WHEREAS, PNC Delaware will issue 5,000 shares of Fixed-to-Floating Rate Non-cumulative Exchangeable Perpetual Trust Securities, with a liquidation
preference of $100,000 per share (each, a “Trust Security” and collectively, the “Trust Securities”); 
 WHEREAS, each Trust Security will be conditionally exchangeable into one newly issued share of the Series I Non-cumulative Perpetual Fixed-to-Floating Rate Preferred Stock, $1.00 par value and having a liquidation preference of $100,000 per
share, of PNC (the “PNC Preferred Stock”); and 
 WHEREAS, the parties hereto desire to ensure that in the event of the
occurrence of circumstances requiring the exchange of the Trust Securities into the PNC Preferred Stock, PNC will be contractually bound unconditionally to make available PNC Preferred Stock sufficient for exchange of the Trust Securities, and to
effect the exchange of all outstanding Trust Securities into PNC Preferred Stock. 
 NOW THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby expressly acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 
 SECTION 1. Definitions. Whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings: 
 “Agreement” has the meaning specified in the Preamble to this Agreement. 
 “Business Combination” has the meaning specified in Section 3 of this Agreement. 
 “Conditional Exchange” means if the OCC so directs upon the occurrence of a Conditional Exchange Event, each Trust Security then
outstanding shall be automatically exchanged for an equal number of PNC Preferred Stock. 
 A “Conditional Exchange Event”
will occur when: 
 (i) PNC Bank becomes “undercapitalized” under the OCC’s “prompt corrective action” regulations
pursuant to 12 C.F.R. Part 6 (and including any successor rules or regulations); 

 (ii) PNC Bank is placed into conservatorship or receivership; or 
 (iii) the OCC, in its sole discretion, anticipates PNC Bank becoming undercapitalized in the near term or takes a supervisory action that limits the
payment of dividends by PNC Bank and in connection therewith directs a Conditional Exchange. 
 “Distribution Period” has
the meaning set forth in the LLC Agreement. 
 “LLC” means PNC Preferred Funding LLC, a Delaware limited liability company.

 “LLC Agreement” means the Second Amended and Restated Limited Liability Company Agreement of PNC Preferred Funding LLC,
dated as of March 29, 2007, by and among PNC REIT Corp., PNC Preferred Funding Trust I, PNC Preferred Funding Trust II and the Persons, who may from time to time become additional Securityholders (as defined therein) of PNC Preferred
Funding LLC in accordance with the provisions thereof. 
 “OCC” means the Office of the Comptroller of the Currency or any
successor United States Federal bank regulatory authority that is the primary supervisory agency for PNC Bank. 
 “Period”
means in connection with the Series 2007-A Company Preferred Securities and the Trust Securities, the applicable Distribution Period. 
 “Person” means any individual, corporation, association, partnership (general or limited), joint venture, trust, estate, limited liability company, or any legal entity or organization. 
 “PNC” has the meaning set forth in the Preamble to this Agreement. 
 “PNC Bank” has the meaning set forth in the Preamble to this Agreement. 
 “PNC Preferred Stock” has the meaning set forth in the Recitals to this Agreement. 
 “PNC Substitute Preferred Stock” means a class or series of equity securities of a Successor Entity having the preferences, limitations
and relative rights in its articles or certificate of incorporation or other constituent documents that are substantially similar to those set forth in PNC’s amended and restated articles of association, establishing the PNC Preferred Stock.

 “PNC Delaware” has the meaning set forth in the Preamble to this Agreement. 
 “Preamble” means the preamble to this Agreement 
 “Property Trustee” means Wilmington Trust Company, acting not in its individual capacity but solely as Property Trustee on behalf of PNC Delaware pursuant to the Trust Agreement. 
  

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 “Recitals” means the recitals to this Agreement. 
 “Register” has the meaning set forth in the Trust Agreement. 
 “Series 2007-A Company Preferred Securities” means the Series 2007-A Fixed-to-Floating Rate Non-cumulative Perpetual Preferred
Securities of the LLC, Series 2007-A liquidation preference $100,000 per security. 
 “Subsidiary” means, at any time, any
Person the shares of stock or other ownership interests of which having ordinary voting power to elect a majority of the board of directors or other managers of such Person are at the time owned, or the management or policies of which are otherwise
at the time controlled, directly or indirectly through one or more intermediaries (including other Subsidiaries) or both, by another Person. 
 “Successor Entity” means a Person designated by the Board of Directors of PNC (i) that is the surviving, resulting or receiving Person, as applicable, in any Business Combination, (ii) the securities of which are
received in a Business Combination by some or all holders of PNC voting equity securities or (iii) that the Board of Directors of PNC determines to be an acquiror of PNC in a Business Combination. 
 “Trust Agreement” means the Amended and Restated Trust Agreement of PNC Preferred Funding Trust II, dated as of March 29,
2007, among PNC Preferred Funding LLC, as Grantor, Wilmington Trust Company, as Delaware Trustee, and Wilmington Trust Company, as Property Trustee. 
 “Trust Security” has the meaning specified in the Recitals to this Agreement. 
 SECTION 2.
Exchange of the Trust Securities. If at any time after the issuance and sale of the Trust Securities, the OCC directs in writing that the Trust Securities be exchanged into an equal number of PNC Preferred Stock following the occurrence of a
Conditional Exchange Event, then effective on the date and time of the Conditional Exchange: 
 (i) each holder of Trust Securities shall be
unconditionally obligated to surrender to PNC any certificate representing the Trust Securities as set forth in the Trust Agreement; 
 (ii)
PNC shall immediately and unconditionally issue a number of shares of the PNC Preferred Stock equal to the number of Trust Securities then outstanding to the holders of the Trust Securities; and 
 (iii) pursuant to Section 4.08(a)(ii) of the Trust Agreement, effective on the date and time of the Conditional Exchange, all of the Trust Securities
then outstanding will be deemed to be owned by PNC, without any action by PNC Delaware or any other action being necessary or required by any other Person, and Persons who are holders of Trust Securities shall have no rights under such securities,
other than the right to receive PNC Preferred Stock in exchange therefor, as provided herein. 
  

 -3- 

 Until receipts evidencing PNC Preferred Stock are delivered or in the event such replacement receipts are
not delivered, any certificates previously representing the Trust Securities shall be deemed for all purposes to represent PNC Preferred Stock. 
 SECTION 3. Permitted Assignment. (a) In the event that PNC prior to the Conditional Exchange effects, or is the subject of, a merger, consolidation, statutory share exchange, sale of all or substantially all of its assets or
other form of business combination, (i) in which PNC is not the surviving, resulting or receiving entity thereof, or (ii) if PNC is the surviving or resulting entity, shares representing a majority of PNC’s total voting power are
either converted or exchanged into securities of another Person or into cash or other property (any such transaction in either (i) or (ii) being a “Business Combination”), then PNC Bank will, prior to the effectiveness of
such Business Combination, assign, effective upon the consummation of such Business Combination, all of its obligations and rights under this Agreement to a Successor Entity that has PNC Substitute Preferred Stock and, as a result of such
assignment, all references to PNC and PNC Preferred Stock, shall become and be deemed to be references to such Successor Entity or to such PNC Substitute Preferred Stock, respectively. 
 (b) This Section 3 shall apply to any subsequent Business Combination prior to the Conditional Exchange mutatis mutandis. 
 SECTION 4. Representations and Warranties of PNC. PNC hereby represents and warrants that the PNC Preferred Stock will upon issuance, rank senior,
in respect of the right to receive dividends and the right to receive payment out of the assets of PNC, upon voluntary or involuntary dissolution, winding-up or termination of PNC, to PNC’s common stock and at least pari passu with the
most senior preferred stock of PNC, if any, then outstanding, and to any other preferred stock that PNC may issue in the future. 
 SECTION
5. Additional Covenants of PNC. 
 (a) PNC hereby covenants and agrees that: 
 (i) if full dividends or distributions, as applicable, on (1) the Series 2007-A Company Preferred Securities, or (2) the Trust Securities have
not been declared and paid, in each case, for the applicable Period, then PNC will not declare or pay dividends or other distributions with respect to, or redeem, purchase or acquire or make a liquidation payment with respect to, any of its equity
capital securities during the next succeeding Period other than: 
 (A) purchases, redemptions or other acquisitions of shares
of capital stock of PNC in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of employees, officers, directors or consultants; 
 (B) purchases of shares of common stock of PNC pursuant to a contractually binding requirement to buy stock existing prior to the date of
the commencement of the extension period, including under a contractually binding stock repurchase plan; 
  

 -4- 

 (C) any declaration of a dividend in connection with the implementation of a shareholders’ rights
plan, or the redemption or repurchase of any rights under any such plan; 
 (D) as a result of an exchange or conversion of any class or
series of PNC’s capital stock for any other class or series of PNC’s capital stock; or 
 (E) the purchase of fractional interests
in shares of PNC’s capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged; or 
 (F) any stock dividends where the dividend stock is the same as that on which the dividend is being paid; 
 (ii) prior to the issuance of the PNC Preferred Stock, PNC will not issue any class or series of preferred stock ranking senior to the PNC Preferred Stock in respect of the right to receive dividends and the right to receive payments out of
the assets of PNC, upon voluntary or involuntary dissolution, winding-up or termination of PNC; and 
 (iii) it will reserve the PNC Preferred
Stock for issuance in accordance with the terms hereof. 
 (b) The holders of the Trust Securities will be express third-party
beneficiaries of PNC’s representations and warranties set forth in Section 4 and PNC’s covenants set forth in Section 5(a). 
 (c) PNC hereby agrees to contribute to the capital of PNC Bank any and all Trust Securities deemed to be owned by PNC as a result of the Conditional Exchange immediately after such Conditional Exchange. 
 SECTION 6. Notices. (a) All notices provided for in this Agreement shall be in writing, duly signed by the party giving such notice, and
shall be delivered, telecopied or mailed by registered or certified mail, as follows: 
 If given to PNC, at the address set forth below:

 The PNC Financial Services Group, Inc. 
 One PNC Plaza 
 249 Fifth Avenue 
 Pittsburgh, Pennsylvania 15222-2707 
 Attention: Kevin Glass 
 Telephone: (412) 762-4346 
 Facsimile:
(412) 705-0044 
  

 -5- 

 If given to PNC Delaware, at the address set forth below: 
 PNC Preferred Funding Trust II 
 9062 Old
Annapolis Road 
 Columbia, Maryland 21045 
  

			
	Attention:	  	Corporate Trust Secretary PNC Preferred Funding Trust II
	Facsimile:	  	(410) 715-2380

 With a copy to: 
 Richards, Layton & Finger, P.A. 
 One Rodney Square 
 920 King St. 
 Wilmington, DE 19801

  

			
	Attention:	  	Corporate Trust Group
	Facsimile:	  	(302) 651-7701
	Telephone:	  	(302) 651-7500

 And with a copy to: 
 Cleary Gottlieb Steen & Hamilton LLP 
 2000 Pennsylvania Avenue, N.W. 
 Washington, DC 20006 
  

			
	Attention:	  	Kenneth L. Bachman
	Facsimile:	  	(202) 974-1999
	Telephone:	  	(202) 974-1500

 Each such notice, request or other communication shall be effective (i) if given by
telecopier, when transmitted to the number specified in such registration books and the appropriate confirmation is received, (ii) if given by mail, 72 hours after such communication is deposited in the mails with first class postage prepaid,
addressed as aforesaid, or (iii) if given by any other means, when delivered at the address specified above. 
 SECTION 7. Governing
Law. THIS EXCHANGE AGREEMENT AND ALL RIGHTS HEREUNDER AND PROVISIONS HEREOF SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO APPLICABLE CONFLICTS OF LAW PROVISIONS). 
 SECTION 8. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original as against any party
whose signature appears thereon and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the
parties reflected hereon as signatories. 
  

 -6- 

 SECTION 9. Liability of Property Trustee. It is expressly understood and agreed that (a) this
Agreement is executed and delivered by Wilmington Trust Company, not individually or personally, but solely as Property Trustee, in the exercise of the powers and authority conferred and vested in it, pursuant to the Trust Agreement, (b) each
of the representations, undertakings and agreements herein made on the part of PNC Delaware is made and intended not as personal representations, undertakings and agreements by Wilmington Trust Company but is made and intended for the purpose for
binding only PNC Delaware, (c) nothing herein contained shall be construed as creating any liability on Wilmington Trust Company, individually or personally, to perform any covenant either expressed or implied contained herein, all such
liability, if any, being expressly waived by the parties hereto and by any person claiming by, through or under the parties hereto, and (d) under no circumstances shall Wilmington Trust Company be personally liable for the payment of any
indebtedness or expenses of PNC Delaware or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by PNC Delaware under this Agreement or any other related documents. 
  

 -7- 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above
written. 
  

			
	PNC PREFERRED FUNDING TRUST II
	
	By: WILMINGTON TRUST COMPANY, acting not in its individual capacity, but solely as Property Trustee
		
	By:	 	 /s/ Michele C. Harra

	Name:	 	Michele C. Harra
	Title:	 	Financial Services Officer
	
	THE PNC FINANCIAL SERVICES GROUP, INC.
		
	By:	 	 /s/ Kevin Roy Glass

	Name:	 	Kevin R. Glass
	Title:	 	Vice President
	
	PNC BANK, NATIONAL ASSOCIATION
		
	By:	 	 /s/ Lisa M. Kovac

	Name:	 	Lisa M. Kovac
	Title:	 	Vice President

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