Document:

Key Employee Long Term Incentive Compensation Plan

 Exhibit 10.22 
 FEDERAL HOME LOAN BANK OF CHICAGO 
 KEY EMPLOYEE LONG TERM INCENTIVE COMPENSATION PLAN 

  

	I.	PURPOSE 

 The purpose of the Federal Home Loan Bank of Chicago Key
Employee Long Term Incentive Compensation Plan (the “Plan”) is to provide additional incentive for the required sustained efforts, decisions, innovation and discipline from certain Bank employees who significantly contribute to the
attainment of long-term goals of the Federal Home Loan Bank of Chicago (“Bank”), and to enhance the retention of such employees by providing such employees with a competitive compensation opportunity which aligns their interests with those
of the Bank’s members. 
 This Plan is an amendment and restatement of the Bank’s Senior Executive Long Term Incentive Plan that was approved by
the Bank’s Board of Directors on July 22, 2008 (the “Prior Plan”), which is hereby superseded and replaced. All participants under the Prior Plan for the 2008 – 2010 performance period, as of the date hereof, shall be deemed
to be Participants under this Plan for all purposes. 
  

	II.	DEFINITIONS 

 The following terms shall have the meanings stated
below unless the context clearly indicates otherwise. 
  

	 	a.	“Board” shall mean the Board of Directors of the Bank. 

  

	 	b.	“Code” shall mean the Internal Revenue Code of 1986, as amended, and all Regulations and pronouncements issued thereunder. 

  

	 	c.	“Committee” shall mean the Personnel and Compensation Committee of the Board of Directors of the Bank. 

  

	 	d.	“Change of Control” of the Bank shall mean the occurrence at any time of any of the following events: 

  

	 	(1)	any person, more than one person acting as a “group” (as defined in section 1.409A-3(i)(5) of the Regulations), acquires ownership of equity securities of the Bank that,
together with equity securities held by such person or group, constitutes more than 50% of the total voting power of the equity securities of the Bank; provided, however, that if any person or group, is considered to own more than 50% of the
total voting power of the equity securities of the Bank, the acquisition of additional equity securities by the same person or group will not be considered a Change of Control under this Agreement. An increase in the percentage of equity securities
of the Bank owned by any person or group as a result of a transaction in which the Bank acquires its own equity securities in exchange for property will be treated as an acquisition of equity securities of the Bank for purposes of this paragraph; or

	 	(2)	during any period of twelve (12) consecutive months, individuals who at the beginning of such period constituted the Board (together with (a) any new or replacement
directors whose election by the Board, or (b) whose nomination for election by the Bank’s shareholders, was approved by a vote of at least a majority of the directors then still in office who were either directors at the beginning of such
period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the directors then in office; or 

  

	 	(3)	the Bank sells or transfers 95% or more of its business and/or assets to another bank or other entity. 

  

	 	e.	“Disability” shall mean a Participant: (1) 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 twelve (12) months, or (2) 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 twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan
covering employees of the Bank. 

  

	 	f.	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended and all Regulations and pronouncements issued thereunder. 

  

	 	g.	“Good Reason” shall mean either of the following: 

 (1) a material reduction by the Bank in the Participant’s base salary, unless such reduction: (i) is associated with a “General Reduction” in compensation among employees in the same job grade or employees who are
similarly situated and such reduction is in response to adverse or declining economic conditions; and (ii) does not exceed 5% of the Participants’ base salary amount in effect at the time of the reduction; or 
 (2) the relocation of the Participant’s principal office assignment to a location more than fifty (50) miles from its location on the date
hereof. 
  

	 	h.	“Group” shall mean the particular Participant group to which an employee of the Bank has been designated for participation in this Plan for a particular Performance
Period pursuant to Article IV. 

  

	 	i.	“Normal Retirement Age” means the date the Participant attains age sixty-five (65). 

  

	 	j.	“Participant” shall mean the Bank’s President and Chief Executive Officer and each other employee of the Bank designated by the Committee to be eligible to
participate in the Plan. Each Participant shall be assigned to a Participant Group, as designated by the Committee pursuant to Article IV. An employee’s Participant Group can be different for different Performance Periods.

  

 2 

	 	k.	“Performance Based Compensation” means compensation that is based on services over a period of at least twelve (12) months and which satisfies the requirements
for “performance based compensation” as such term is used in Section 409A(a)(4) of the Code. 

  

	 	l.	“Performance Goals” has the meaning given to such term in Article V. 

  

	 	m.	“Performance Period” shall mean the period of time selected to measure achievement of Performance Goals. 

  

	 	n.	“Performance Period Award” has the meaning given to such term in Article V. 

  

	 	o.	“Separation from Service” shall mean the earliest date on which a Participant has incurred a “separation from service,” within the meaning of
Section 409A(a)(2) of the Code, with the Bank. For purposes of the foregoing: 

  

	 	(1)	a Participant shall be considered to have incurred a Separation from Service with the Bank if the Participant dies, retires, or otherwise has a termination of employment with the
Bank, and except as otherwise provided in applicable Regulations, the employment relationship shall be treated as continuing intact while the individual is on military leave, sick leave or other bona fide leave of absence if the period of such leave
does not exceed six (6) months or, if longer, so long as the individual retains a right to reemployment with the Bank under an applicable statute or by contract; 

  

	 	(2)	a Participant shall not be deemed to have incurred a termination of employment unless the Participant and the Bank reasonably anticipated that the level of bona fide services the
Participant would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed (whether as an employee or
as an independent contractor) over the immediately preceding thirty-six (36) month period (or the full period of services to the Bank if the Participant has been providing services to the Bank for less than thirty-six (36) months) of the
average level of bona fide services performed (whether as an employee or as an independent contractor) over the immediately preceding twelve (12) month period (or the full period of services to the Bank if the Participant has been providing
services to the Bank for less than twelve (12) months); 

  

	 	(3)	 for purposes of this paragraph (e), the term “Bank” shall mean the Bank and any affiliated bank, provided that in applying Section 1563(a)(1),
(2), and (3) of the Code for purposes of determining a controlled group of corporations under Section 414(b) of the Code, the language “at least fifty percent (50%)” shall be used instead of “at least eighty percent
(80%)” each time it appears in Section 1563(a)(1), (2), and (3) of the Code and in applying Treasury Regulation §1.414(c)-2 for purposes of determining 

  

 3 

	 	 
trades or business (whether or not incorporated) that are under common control for purposes of Section 414(c) of the Code, “at least fifty percent
(50%)” is used instead of “at least eighty percent (80%)” each place it appears in Regulation §1.414(c)-2; and 

  

	 	(4)	where, as part of a sale or other disposition of assets by the Bank to an unrelated service recipient, a Participant would otherwise experience a Separation from Service, the seller
and the buyer may specify whether the Participant providing the services to the seller immediately before the asset purchase transaction and providing services to the buyer after and in connection with the asset purchase transaction has experienced
a Separation from Service, provided that the asset purchase transaction results from bona fide, arm’s length negotiations, all Participants providing services to the seller immediately before the asset purchase transaction and providing
services to the buyer after and in connection with the asset purchase transaction are treated consistently for purposes of applying the provisions of any nonqualified deferred compensation plan, and such treatment is specified in writing no later
than the closing date of the asset purchase transaction. 

  

	III.	ADMINISTRATION 

 The Plan shall be administered by the Committee. In
addition to any authority granted from time to time to the Committee by the Board, the Committee shall have the authority to: (a) prescribe, amend and rescind Plan rules, regulations and procedures consistent with the Plan; (b) approve
Performance Goals and Performance Periods (subject to Board approval); (c) determine from time to time the eligibility of employees of the Bank for participation in the Plan and assign such employees to a Participant Group; (d) delegate
from time to time the performance of functions in connection with the administration of the Plan to such person or persons as it deems appropriate; and (e) take all other action necessary or appropriate for the administration of the Plan. All
such actions by the Committee shall also be consistent with the terms and provisions of the Plan. 
 The Committee shall operate and administer the Plan, for
purposes of applying the provisions of Section 409A of the Code, by adhering to the following rules: 
  

	 	a.	Separate Payments. Each separately identified amount to which the Participant is entitled under the Plan shall be treated as a “separate payment.”

  

	 	b.	Right to a Series of Separate Payments. To the extent permissible under Section 409A of the Code, any series of installment payments under the Plan shall be treated as a
“right to a series of separate payments.” 

  

	 	 c.
	 Short-Term Deferral Exception. Unless otherwise required to comply with Section 409A of the Code, a payment
shall not be treated as a “deferral of compensation” (as such term is described in §1.409A-1(b) of the Regulations) if the Participant actually or constructively receives such payment no later than within two and one-half (2 1/2) months after the end of the later of the taxable year 

  

 4 

	 	 
of the Participant or Bank in which the payment is no longer subject to a “substantial risk of forfeiture” (as such term is described in
§1.409A-1(d) of the Regulations). 

  

	 	d.	Separation Pay Exception. Unless otherwise required to comply with Section 409A of the Code, a payment shall not be treated as a “deferral of compensation” (as
such term is described in §1.409A-1(b) of the Regulations) if such payment satisfies the following requirements: 

  

	 	(1)	the payment is being paid or provided due to the Separation from Service of the Participant, provided, however, the Separation from Service was due to “involuntary
termination” of the Participant by the Bank; 

  

	 	(2)	the payment being paid or provided does not exceed two (2) times the lesser of: 

  

	 	(A)	the Participant’s annualized compensation from the Bank for the calendar year in which the involuntary termination of the Participant’s employment occurs; and

  

	 	(B)	the maximum dollar amount that may be taken into consideration under a qualified plan pursuant to Section 401(a)(17) of the Code for the calendar year in which the involuntary
termination of the Participant’s employment occurs; and 

  

	 	(3)	the payment is required under the Plan to be paid no later than the last day of the second calendar year following the calendar year in which the involuntary termination of the
Participant’s employment occurs. 

  

	IV.	ELIGIBILITY 

 Participants in the Plan for each Performance Period
shall be the President and Chief Executive Officer (the “President”) and those other Bank employees who are recommended by the President, as approved by the Committee in its sole discretion. 
 Before the beginning of each Performance Period, the Committee shall approve those Bank employees who shall be eligible to participate in the Plan for that Performance
Period and shall designate which Participant Group such employee will be in for purposes of that Performance Period. The eligibility of any Participant for any Performance Period is at all times determined in the sole discretion of the Committee and
may be subject to such restrictions as the Committee may in its sole discretion from time to time determine. Restrictions on one Participant’s eligibility need not be applicable or the same as restrictions applicable to any other
Participant’s eligibility. 
 Any employee who is a participant in the Prior Plan as of November 1, 2008 has already been deemed to be ineligible
to participate in the Bank’s Long Term Supplemental Incentive Compensation Plan dated January 22, 2008 (the “2008 – 2009 Supplemental Plan”) for current and future plan periods and has forfeited all Performance Units
previously granted under such 

  

 5 

 
Supplemental Incentive Compensation Plan. Any employee who becomes a new Participant in this Plan on or after November 1, 2008 shall continue to be a
participant under the 2008 – 2009 Supplemental Plan if applicable. 
  

	V.	PERFORMANCE PERIODS AND GOALS 

 The Committee shall establish the
length of each Performance Period for each Group from time to time in its sole discretion. 
 As of the beginning of each Performance Period, the Committee,
with the approval of the Board, shall establish performance criteria, performance goals, performance targets, and target values (collectively the “Performance Goals”) consistent with the purposes of the Plan, as determined in the sole
discretion of the Committee, for that Performance Period, and if appropriate, the weight to be given to each such Performance Goal for that Performance Period. The Performance Goals for each Group of Participant for each Performance Period shall be
evidenced by worksheets and tables approved by the Committee and such worksheets and tables shall be deemed to be an integral part of this Plan. The Committee, with the approval of the Board, may establish separate Performance Goals for any Group
and also shall have the discretion to specify any rules or provisions that may be applicable to any Participant or Performance Period. The Committee may, from time to time thereafter, make appropriate adjustments in Performance Goals to reflect
major unforeseen transactions, events or circumstances which in the Committee’s opinion alter or affect such goals or the basis or assumptions upon which such goals were determined. 
 Within ninety (90) days of the beginning of each Performance Period, the Bank’s Human Resources Department shall send a letter (“Notification Letter”) to each Participant who has been approved by
the Committee to participate in this Plan for that Performance Period. The Notification Letter shall indicate for that Performance Period: (a) the Performance Goals applicable to such category for such Performance Period; and (b) such
other information as may be relevant to such Performance Period. 
 As soon as practicable after the end of each Performance Period, the Committee shall
determine the extent to which the Performance Goals for that period were achieved. 
 Notwithstanding the foregoing, payment to the President of any award
determined to be payable under this Plan shall be subject to the satisfaction of any conditions precedent to such payment that may be contained in the Employment Agreement dated as of May 5, 2008 between the President and the Bank, or any
successor agreement. 
 Notwithstanding any provision in this Article IV to the contrary, the Committee shall take all reasonable actions to qualify
compensation that will be paid upon the satisfaction of Performance Goals as Performance-Based Compensation. 
  

 6 

	VI.	VESTING 

 Except as provided below, if a Participant is actively
employed by the Bank at the end of the Performance Period he shall be vested at the end of such Performance Period in such Participant’s benefits under the Plan for that Performance Period as calculated pursuant to Section VI.a. (the
“Performance Period Award”). 
 If a Participant dies, becomes Disabled, or incurs a Separation from Service on or after attaining his Normal
Retirement Age on a date that is not more than twelve (12) months before the end of a Performance Period, such Participant shall be vested at the end of the corresponding Performance Period in the Performance Period Award he would have received
had his employment with the Bank continued to the end of the Performance Period, multiplied by a fraction, the numerator of which is the number of full months he was employed by the Bank during the Performance Period (excluding any period of
Disability in excess of three months), and the denominator of which is the total number of months in the Performance Period. For purposes of clarity, if a Participant dies, becomes Disabled, or incurs a Separation from Service on or after attaining
his normal Retirement Age on a date that is more than twelve (12) months before the end of a Performance Period, then such Participant shall not be vested in any benefits or rights under this Plan for such Performance Period. 
 In the event of: (i) a Change of Control; or (ii) a termination of the Participant’s employment by the Participant for Good Reason, the Participant shall
be fully vested in any Performance Period Award to the extent an award is applicable at the end of the corresponding Performance Period. Pursuant to Article IV, in the event of a Change of Control, the Committee, in its sole discretion and subject
to Board approval, may make such adjustments and changes to the Performance Criteria and Performance Period as it may deem appropriate in the circumstances. 
 Any award allocation hereunder may be reduced pro rata in the event that a Participant
(1) commences employment with the Bank during a Performance Period, or (2) is absent from the Bank (other than regular vacation) during a Performance Period whether through approved leave or otherwise, Disability, leave under the Family
and Medical Leave Act, a personal leave of absence or military leave. Notwithstanding the foregoing, no employee commencing employment with the Bank after December 31, 2008, in the case of the 2008 – 2010 Performance Period under this
Plan, or more than one-half ( 1/2) of the way through any subsequent Performance Period, shall be entitled to participate in
this Plan for such Performance Period. 
  

	VII.	BENEFITS  

  

	 	a.	 Benefit Value. The benefits to a Participant under the Plan will be the amount determined by multiplying the Participant’s base salary in effect on the
last day of the Performance Period or the last day of the Participant’s employment, as the case may be, by the multiplier determined in accordance with the Performance Goals based upon the achievement of the Performance Goals as established and
determined by the Committee; provided, however, that notwithstanding that the Committee has made a determination that the Performance Goals for a Performance Period have been achieved, the Committee in its sole discretion shall
determine whether an award shall be made to Plan Participants for such 

  

 7 

	 	 
Performance Period. The Committee also may, to the extent it deems appropriate in its sole discretion which shall be conclusive and binding upon all parties
concerned, make awards or adjust awards to compensate for or reflect any significant changes which may have occurred during the Performance Period which alter the basis upon which the Performance Goals were determined or otherwise. Immediately
following the completion of the Performance Period and the determination of the award benefit by the Committee, each eligible Participant will become vested in such benefit in accordance with the vesting rules in Article V.

  

	 	 b.
	 Time of Payment. Except as otherwise provided for herein, payments due hereunder for vested benefits will be made
within two and one-half (2  1/2) months following the end of the Performance Period in which such benefits vested.

  

	 	c.	Form of Payment. A Participant will receive a distribution from the Plan in the form of a lump sum. The Committee may prescribe such rules as it deems necessary regarding the
payment of benefits. 

  

	VIII.	DESIGNATION OF BENEFICIARY  

 In the event of the death of a
Participant, all benefits to which that Participant is entitled but which are unpaid at the time of his death shall be paid to the beneficiary or beneficiaries of that Participant who are designated in writing by the Participant on a form provided
by, filed with and accepted by the Bank, or in the absence of any such designation, to the beneficiary or beneficiaries of that Participant who are entitled to receive the benefits of that Participant which are payable under the qualified defined
benefit pension plan sponsored by the Bank or its successor plan. 
  

	IX.	AMENDMENT OR TERMINATION OF PLAN  

 The Bank may terminate, amend or
modify this Plan at any time and from time to time; provided, however, any such termination, amendment or modification may not divest any Participant of any of his benefits under this Plan which are vested as of the date of such termination,
amendment or modification. 
  

	 	a.	General Rule. The Bank reserves the right to terminate or amend this Plan at any time and from time to time; provided, however, that except as otherwise provided in
Section (b) of this Article VII, no termination or amendment of the Plan shall accelerate the payment of benefits under the Plan in violation of Section 409A of the Code. To the extent that the Committee does not accelerate the timing of
distributions on account of the Plan termination, payment of any remaining benefits under the Plan shall be made at the same time and in the same form as such distribution would have been based upon the most recent effective election made by the
Participant as in effect at the time of the Plan termination. 

  

 8 

	 	b.	Terminations and Liquidations Subject to Certain Conditions. To the extent otherwise permitted by Section 409A of the Code and the Regulations thereunder, the Bank may
terminate and liquidate the Plan if the following requirements are met: 

  

	 	(1)	the termination and liquidation does not occur proximate to a downturn in the financial health of the Bank; 

  

	 	(2)	the Bank terminates and liquidates all plans, agreements, methods, programs and other arrangements sponsored by the Bank that would be aggregated with any terminated and liquidated
plans, agreements, methods, programs and other arrangements under §1.409A-1(c) of the Regulations if the Participant had deferrals of compensation under such plans, agreements, methods, programs and other arrangements; 

 

	 	(3)	no payments in liquidation of the Plan are made within twelve months (12) of the date the Bank takes all necessary action to irrevocably terminate and liquidate the Plan, other
than payments that would be payable under the terms of the Plan if the action to terminate and liquidate the Plan had not been taken; 

  

	 	(4)	all payments are made within twenty-four (24) months of the date the Bank takes all necessary action to irrevocably terminate and liquidate the Plan; and

  

	 	(5)	the Bank does not adopt a new plan that would be aggregated with any terminated and liquidated plan under applicable Treasury Regulations if the same Participant was a employee in
both plans, at any time within three (3) years following the date the Bank takes all necessary action to irrevocably terminate and liquidate the Plan. 

  

	 	c.	Compliance with Code Section 409A. This Plan shall be construed in a manner consistent with the applicable requirements of Section 409A of the Code, and the
Committee, in its sole discretion and without the consent of any Participant or beneficiary may amend the provisions of the Plan if and to the extent that the Committee determines that such amendment is necessary or appropriate to comply with the
applicable requirements of Section 409A of the Code. 

  

	X.	LIMITED RESTRICTIONS ON SETTING ASIDE OR RESERVING ASSETS 

 Notwithstanding the foregoing provisions in this Plan to the contrary, if the Participant is an “applicable covered employee” (defined below), then no amounts or benefits due a Participant shall be transferred to a trust or
otherwise set aside or reserved pursuant to any other arrangement during any “restricted period” (defined below) with respect to the qualified defined benefit plan sponsored by the Bank or its successor plan. For these purposes:

  

 9 

	 	a.	Restricted Period. The term “restricted period” means (1) any period during which the qualified defined benefit plan sponsored by the Bank or its successor
plan is in “at-risk status” (as defined in Section 430(i) of the Code), (2) any period in which the sponsor of the qualified defined benefit plan is a debtor in a case under Title 11, United States Code, or similar Federal or
State law, and (3) the twelve (12) month period beginning on the date which is six (6) months before the termination date of the qualified defined benefit plan if, as of the termination date, the assets of the qualified defined
benefit plan are not sufficient for pay all benefit liabilities (within the meaning of Section 4041 of ERISA) under the qualified defined benefit plan; 

  

	 	b.	Applicable Covered Participant. The term “applicable covered participant” means any (1) covered participant of the sponsor of the qualified defined benefit
plan, (2) covered participant of any member of a controlled group that includes the sponsor of the qualified defined benefit plan, and (3) former employee who was a covered employee at the time of termination of employment with the sponsor
of the qualified defined benefit plan or any member of a controlled group that includes the plan sponsor; and 

  

	 	c.	Covered Participant. The term “covered participant” means an individual described in Section 162(m)(3) of the Code or an individual subject to the requirements
of Section 16(a) of the Securities Exchange Act of 1934. 

  

	XI.	GENERAL PROVISIONS 

  

	 	a.	No Right of Continued Employment. Nothing contained in the Plan shall give any Participant the right to be retained in the employment of the Bank or affect the right of the
Bank to dismiss any Participant. 

  

	 	b.	No Right to Continued Participation or Payments. The participation in this Plan by a Participant for a particular Performance Period shall not guarantee a Participant the
right to participate in the Plan in any subsequent Performance Periods. The payment of any Plan benefits for any Performance Period shall not guarantee a Participant the right to receive any such award or benefits for any subsequent Performance
Period. 

  

	 	c.	No Right of Transfer. The interests of persons entitled to benefits under the Plan are not subject to their debts or other obligations and, except for tax withholding
requirements or as otherwise specifically provided herein, may not be voluntarily or involuntarily sold, transferred, alienated, assigned or encumbered. 

  

	 	d.	Withholding for Taxes. The Bank shall have the right to deduct from all amounts paid under this Plan any taxes required by federal, state or local law to be withheld with
respect to such payments. 

  

	 	e.	 Special Compensation. Except as otherwise provided by law, benefits received under the Plan shall not be included or taken into account in determining
benefits under pension, retirement, profit sharing, group insurance, or any other benefit 

  

 10 

	 	 
plan maintained by the Bank, unless so provided in such plan. Neither the Bank nor the Committee guarantee in any way the deferral of tax liability if a
Participant defers the payment of Plan benefits. 

  

	 	f.	Law to Govern. All questions pertaining to the construction, regulation, validity and effect of the provisions of the Plan shall be determined in accordance with applicable
Federal law. 

  

	 	g.	Funding of Benefits. Benefits payable hereunder to or on account of any Participant shall be paid directly by the Bank from its general assets. The Bank shall not be required
to segregate on its books or otherwise set aside any amount to be used for the payment of benefits under this Plan. 

  

	 	h.	Interpretation. The Committee shall have the sole and complete authority to interpret the provisions of and decide all disputes arising under the Plan, which interpretations
and decisions shall be final and binding on all parties having any interests arising under or by virtue of the Plan. 

  

	 	i.	Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and
the singular shall include the plural. 

  

	 	j.	Litigation. If any Participant, former Participant or beneficiary shall bring a suit or proceeding against the Committee or the Bank, or if any dispute shall arise as to the
person or persons to whom payment or delivery of any funds shall be made by the Bank, the costs (including attorneys’ fees) to the Bank of defending the action, where the result is adverse to the complainant, or pursuant to the authorization of
the court or other forum in which the suit or proceeding is brought, shall be charged against the Plan benefits of the applicable Participant, former Participant or beneficiary, and only the excess of such Plan benefits, if any, over the amount of
such costs shall be payable by the Bank. 

  

	 	k.	Effective Date. The Plan shall be effective beginning January 1, 2008 until modified or revoked by the Bank. 

  

	 	l.	Federal Housing Finance Agency. This Plan shall be maintained in accordance with and is subject to Federal Housing Finance Agency regulations and policies.

 APPROVED THIS 19TH DAY OF 
 DECEMBER, 2008 BY
THE BOARD 
 OF DIRECTORS OF THE FEDERAL 
 HOME LOAN BANK OF
CHICAGO 
  

	
	 /s/ Peter E. Gutzmer

	Its Corporate Secretary

  

 11Benefit Equalization Plan

 Exhibit 10.24.2 
 FEDERAL HOME LOAN BANK OF CHICAGO 
 POST DECEMBER 31, 2004 
 BENEFIT EQUALIZATION PLAN 
 Effective January 1, 2005 
  

					
	Benefit Equalization Plan	  		  	

					
	ARTICLE I	  	DEFINITIONS	  	2
			
	ARTICLE II	  	MEMBERSHIP	  	3
			
	ARTICLE III	  	AMOUNT AND PAYMENT OF PENSION BENEFITS	  	4
			
	ARTICLE IV	  	AMOUNT AND PAYMENT OF THRIFT BENEFITS	  	5
			
	ARTICLE V	  	SOURCE OF PAYMENTS	  	8
			
	ARTICLE VI	  	DESIGNATION OF BENEFICIARIES	  	8
			
	ARTICLE VII	  	ADMINISTRATION OF THE PLAN	  	9
			
	ARTICLE VIII	  	AMENDMENT AND TERMINATION	  	10
			
	ARTICLE IX	  	GENERAL PROVISIONS	  	11

 FEDERAL HOME LOAN BANK OF CHICAGO 
 POST DECEMBER 31, 2005 
 BENEFIT EQUALIZATION PLAN 
 Effective January 1, 2005, the FEDERAL HOME LOAN BANK OF CHICAGO (the “Bank”) established this Post December 31, 2005 Benefit Equalization
Plan (the “Plan”). 
 INTRODUCTION 
 The purpose of this Plan is to provide to certain employees of the Bank the benefits which would have accrued after December 31, 2004 under the Comprehensive Retirement Program of the Financial Institutions Retirement Fund (the
“Retirement Fund”), and benefits equivalent to the salary reduction contributions and matching contributions which would have been available under the Financial Institutions Thrift Plan (the “Thrift Plan”), but for (i) the
limitations placed on benefits and matching contributions for employees by Sections 401(a)(17), 401(k)(3)(A)(ii), 402(g) and 415 of the Internal Revenue Code of 1986, as amended, (ii) the amounts deferred under Sections 4.01 and 4.02 of this
Plan from the definition of “Base Salary” under the Retirement Fund and the Thrift Plan; and (iii) amounts deferred from bonus and incentive compensation. 
 This Plan is intended to constitute a nonqualified unfunded deferred compensation plan for a select group of management or highly compensated employees under Title I of the Employee Retirement Income Security Act of
1974, as amended (ERISA). All benefits payable under this Plan shall be paid solely out of the general assets of the Bank. No benefits under this Plan shall be payable by or from the Retirement Fund or its assets or the Thrift Plan or its assets.

 ARTICLE I. DEFINITIONS 
 When used in
the Plan, the following terms shall have the following meanings: 
  

	1.01	“Account” means the account established and maintained hereunder to record the contributions deemed to be made by the Member and the Bank, as well as the increase
in value attributable to the earnings thereon, all as described hereafter. 

  

	1.02	“Actuary” means the independent consulting actuary retained by the Bank to assist the Committee in its administration of the Plan. 

  

	1.03	“Adoption Date” means the date the Plan is adopted by the Board of Directors. 

  

	1.04	“Bank” means the Federal Home Loan Bank of Chicago. 

  

	1.05	“Beneficiary” means the beneficiary or beneficiaries designated in accordance with Article VI of the Plan to receive the benefit, if any, payable upon the death of
a Member of the Plan. 

  

	1.06	“Board of Directors” means the Board of Directors of the Bank. 

  

					
	Benefit Equalization Plan	  	2	  	

	1.07	“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto. 

  

	1.08	“Code Limitations” means the cap on compensation taken into account by a plan under Code Section 401(a)(17), the limitations on salary deferral contributions
necessary to meet the average deferral percentage (“ADP”) test under Code Section 401(k)(3)(A)(ii), the limitations on employee and matching contributions necessary to meet the average contribution percentage (“ACP”) test
under Code Section 401(m), the dollar limitations on elective deferrals under Code Section 402(g) and the overall limitations on contributions and benefits imposed on qualified plans by Code Section 415, as such provisions may be
amended from time to time, and any similar successor provisions of federal tax law. 

  

	1.09	“Committee” means the Personnel and Compensation Committee of the Board of Directors of the Bank, which is authorized to administer the Plan.

  

	1.10	“Deferral Agreement” means the agreement under which a Member elects to defer compensation under the Plan in accordance with the provisions of Section 4.01.

  

	1.11	“Effective Date” means January 1, 2005. 

  

	1.12	“Eligible Executive” means an employee of the Bank who is a corporate officer and who has been selected to be an Eligible Executive by the Committee.

  

	1.13	“Member” means any person included in the membership of the Plan as provided in Article II. 

  

	1.14	“Plan” means the Federal Home Loan Bank of Chicago Post December 31, 2004 Benefit Equalization Plan, as set forth herein or as it may be amended or restated
from time to time. 

  

	1.15	“Retirement Fund” means the Comprehensive Retirement Program of the Financial Institutions Retirement Fund, a qualified and tax-exempt defined benefit pension plan
and trust under Sections 401(a) and 501(a) of the Code, as adopted and amended by the Bank. 

  

	1.16	“Thrift Plan” means the Financial Institutions Thrift Plan, a qualified and tax-exempt defined contribution plan and trust under Sections 401(a) and 501(a) of the
Code, as adopted and amended by the Bank. 

 ARTICLE II. MEMBERSHIP 
  

	2.01	Each Eligible Executive of the Bank shall become a Member of the Plan for purposes of Article III on the latest of (i) the date on which he is included in the membership of the
Retirement Fund, (ii) the date he is selected as an Eligible Executive, or (iii) the Effective Date. 

  

	2.02	 Each Eligible Executive of the Bank shall become a Member of the Plan for purposes of Article IV on the latest of (i) the date on which he is credited with an
elective 

  

					
	Benefit Equalization Plan	  	3	  	

	 	 
contribution under the Thrift Plan, (ii) the date he is selected as an Eligible Executive, or (iii) the Effective Date.

  

	2.03	A benefit shall be payable under the Plan to or on account of a Member only upon the Member’s retirement, death or other termination of employment with the Bank, except as
provided in Section 4.08. 

  

	2.04	No employee shall have the automatic right to be selected as an Eligible Executive for any year, or, having been selected as an Eligible Executive for one year, be considered an
Eligible Executive for any other year. If a Member ceases to be an Eligible Executive but continues to be employed by the Bank, he shall not be eligible to defer any further portion of his compensation under Sections 4.01 or 4.02 until he shall
again become an Eligible Executive, and the Member shall cease to accrue any further pension benefit under Section 3.01(a)(ii). 

 ARTICLE III. AMOUNT AND PAYMENT OF PENSION BENEFITS 
  

	3.01	The amount, if any, of the annual pension benefit payable to or on account of a Member pursuant to the Plan shall equal the excess of (a) over (b), as determined by the
Committee, where: 

  

	 	(a)	is the annual pension benefit (as calculated by the Retirement Fund on the basis of the “Regular Form” of payment, as defined in the Retirement Fund) that would otherwise
be payable to or on account of the Member by the Retirement Fund if its provisions were administered: 

  

	 	(i)	without regard to the Code Limitations; 

  

	 	(ii)	with the inclusion in the definition of “Base Salary” for the year deferred of any amounts deferred by a Member under Sections 4.01 and 4.02 of this Plan;

  

	 	(b)	is the annual pension benefit (as calculated by the Retirement Fund on the basis of the Regular Form of payment) that is payable to or on account of the Member under the Retirement
Fund. 

 For purposes of this Section 3.01, “annual pension benefit” includes any “Active Service Death
Benefit”, “Retirement Adjustment Payment”, “Annual Increment” and “Single “Purchase Fixed Percentage Adjustment” which the Bank elected to provide its employees under the Retirement Fund. 
  

	 3.02
	 The benefit payable to or on account of a Member pursuant to Section 3.01 shall be paid in the form as elected by
the Member. A member may elect to receive the benefit in the form of a single lump sum, a 50% joint and survivor annuity, a 100% joint and survivor annuity with a ten year certain benefit or a life annuity with a ten year certain benefit. The Member
shall also elect when such benefit shall begin, but not earlier than termination of employment with the Bank or later than age 70 1/2. In the event a Member has failed to make the election required, the Member’s pension benefit payable under this 

  

					
	Benefit Equalization Plan	  	4	  	

	 	 
Plan shall be payable to or on account of the Member in a single lump sum at termination of employment with the Bank. Such elections shall be made in
accordance with the procedures established by the Committee. The Member’s benefit shall be of equivalent actuarial value to the benefit otherwise payable in the Regular Form under the Retirement Fund. For this purpose, equivalent actuarial
value shall be determined by the Actuary under the same actuarial factors and assumptions then used by the Retirement Fund to determine actuarial equivalence under the Retirement Fund. 

  

	3.03	If a Member dies after the date his benefit payments under the Plan had commenced, the only death benefit payable under the Plan in respect of said Member shall be the amount, if
any, payable under the form of payment which the Member had elected. 

  

	3.04	If a Member to whom an annual pension benefit is payable under the Plan dies while in active service or following retirement or other termination of employment but prior to the
commencement of his benefit payment under this Plan, the only death benefit payable under the Plan in respect of said Member shall be the amount, if any, payable under the form of payment which the Member had elected with the adjustments provided
under Section 3.01 above. 

  

	3.05	If a Member is restored to employment with the Bank, payment of any benefits shall cease. Upon his subsequent retirement or termination of employment with the Bank, his benefit
under the Plan shall be recomputed in accordance with Section 3.01, but shall be reduced by the equivalent actuarial value of the amount of any benefit paid by the Plan in respect of his previous retirement or termination of employment, and
such reduced benefit shall be paid to the Member in accordance with the provisions of the Plan. For purposes of this Section 3.05, the equivalent actuarial value of the benefit paid in respect of the Member’s previous retirement or
termination of employment shall be determined by the Actuary utilizing for that purpose the same actuarial factors and assumptions then used by the Retirement Fund to determine actuarial equivalence under the Retirement Fund.

  

	3.06	Notwithstanding any other provision of this Plan, if, on the date payment under the Plan would otherwise commence, the lump sum settlement value of a Member’s benefit
determined by the Actuary does not exceed $5,000, or such other amount as may be determined under Section 411(a)(11) of the Code, then that Member’s benefit shall automatically be paid in the form of a lump sum settlement.

  

	3.07	All annual pension benefits under the Plan shall be paid in monthly, quarterly, or annual installments, as elected by the Member. 

 ARTICLE IV. AMOUNT AND PAYMENT OF THRIFT BENEFITS 
  

	4.01	 If the employee’s salary reduction account contributions under the Thrift Plan for such year have reached the maximum permitted by the Code Limitations as
determined by the Committee, and if the employee has elected to reduce his compensation for the current calendar year in accordance with the provisions of Section 4.03, then such employee shall be credited with an elective contribution addition
under this Plan equal to the reduction in 

  

					
	Benefit Equalization Plan	  	5	  	

	 	 
his compensation made in accordance with such election; provided, however, that the sum of all such elective contribution additions for an employee with
respect to any single calendar year shall not be greater than the excess of (a) over (b), where: 

  

	 	(a)	is an amount equal to the maximum salary reduction account contributions permitted under the Thrift Plan for the calendar year as determined under the Thrift Plan if its provisions
were administered without regard to the Code Limitations and if compensation as defined in the Thrift Plan included any deferrals made under this Section 4.01 or Section 4.02; and 

  

	 	(b)	is an amount equal to his regular account and salary reduction-account contributions actually made under the Thrift Plan for the calendar year. 

 If the reduction in an employee’s compensation under such election is determined to exceed the maximum allowable elective contribution additions for
such year, the excess and any related earnings credited under Section 4.04 shall be paid to such employee within the first two and one-half months of the succeeding calendar year. 
  

	4.02	If a portion of an employee’s regular account contribution or salary reduction account contribution to the Thrift Plan for the preceding year is returned to an employee after
the end of such preceding year on account of the Code Limitations, and if the employee has elected in accordance with the provisions of Section 4.03 to reduce his compensation for the current year by the amount of such Thrift Plan contributions
and related earnings returned to him for the preceding year, then such employee shall be credited with a make-up contribution addition under this Plan equal to the reduction in his compensation made in accordance with such election.

  

	4.03	A Member’s elections under Sections 4.01 and 4.02 shall be made in accordance with the following provisions: 

  

	 	(a)	The Committee shall provide each Member with a Base Salary Deferral Agreement prior to the commencement of the calendar year in which compensation is to be earned and paid. Each
Member shall execute and deliver the Deferral Agreement to the Committee no later than the last business day preceding the calendar year in which compensation is to be earned and paid. The Committee shall provide each Member designated by the
Committee to be allowed to defer bonus and incentive compensation with a Bonus/Incentive Deferral Agreement prior to the determination of such bonus or incentive payments for such calendar year, but not later than June 30th of such year. Such Member shall execute and deliver the Bonus/Incentive Deferral Agreement to the Committee no later than June 30th of such calendar year. 

 Notwithstanding the above, an Eligible Executive who becomes eligible to participate during a calendar year may execute a Deferral Agreement with respect to his elections under Section 4.01 and 4.02 within 30 days of the date he
becomes eligible to participate. An individual who is an Eligible Executive immediately prior to the Adoption Date may file a Deferral Agreement with the 

  

					
	Benefit Equalization Plan	  	6	  	

 
Committee within such period prior to the Adoption Date and in such manner as the Committee may prescribe. With respect to Sections 4.01 and 4.02, the
Deferral Agreement shall only apply to compensation earned by the Member in the payroll periods beginning on or after the later of the date such Agreement is submitted to the Committee or the Adoption Date. 
  

	 	(b)	The Deferral Agreement shall provide for separate elections with respect to elective contribution additions under Section 4.01 and make-up contribution additions under
Section 4.02. Any Member who has been designated by the Committee to be allowed to defer bonus and incentive compensation under the Plan shall complete a separate Bonus/Incentive Deferral Agreement. 

  

	 	(c)	An Eligible Executive’s elections on his Deferral Agreement of the rates at which he authorizes deferrals under Sections 4.01 and 4.02 shall be irrevocable for the calendar
year for which the deferral is elected. Notwithstanding the foregoing, a Member may, in the event of an unforeseeable emergency which results in a severe financial hardship, request a suspension of his salary deferrals under the Plan. The request
shall be made in a time and manner determined by the Committee. The suspension shall be effective with respect to the portion of the calendar year remaining after the Committee’s determination that the Member has incurred a severe financial
hardship. The Committee shall apply standards, to the extent applicable, identical to those described in Section 4.08 in making its determination. 

  

	4.04	For each salary reduction contribution addition credited to a Member under Section 4.01 (except amounts deferred as bonus and incentive deferrals), such Member shall also be
credited with a matching contribution addition under this Plan equal to the matching contribution, if any, that would be credited under the Thrift Plan with respect to such amount if contributed to the Thrift Plan, determined as if the Thrift Plan
were administered in accordance with its terms up to the maximum Code Limitations, and determined after taking into account the Member’s actual salary reduction contributions to and actual matching contributions under the Thrift Plan.

 For each make-up contribution addition credited to a Member under Section 4.02, such Member shall also be credited with
a matching contribution addition under this Plan equal to the matching contribution, if any, that was lost under the Thrift Plan with respect to the contributions returned for the preceding calendar year. 
  

	4.05	 The Committee shall maintain an Account on the books and records of the Bank for each employee who is a Member by reason of amounts credited under Sections 4.01 and
4.02. The salary reduction contribution additions, make-up contribution additions and matching contribution additions of a Member under Sections 4.01, 4.02 and 4.03 shall be credited to the Member’s Account as soon as practical after the date
that the compensation reduced under Section 4.01 or 4.02 would otherwise have been paid to such Member. In addition, the Account of a Member shall be credited as of the end of each calendar quarter with interest at the same rate as the
Bank’s net return on equity after REFCO during each corresponding quarter. In lieu of such rate, the Committee may designate, 

  

					
	Benefit Equalization Plan	  	7	  	

	 	 
from time to time, such other indices of investment performance or investment funds as the measure of investment performance under this Section 4.05. A
Member shall at all times be 100% vested in his Account. 

  

	4.06	The balance credited to a Member’s Account shall be paid to him in a lump sum payment as soon as reasonably practicable after his termination of employment with the Bank.

  

	4.07	If a Member dies prior to receiving the balance credited to his Account under Section 4.06 above, the balance in his Account shall be paid to his Beneficiary in a lump sum
payment as soon as reasonably practicable after his death. 

  

	4.08	While employed by the Bank, a Member may, in the event of an unforeseeable emergency, request a withdrawal from his Account. The request shall be made in a time and manner
determined by the Committee, shall not be for an amount greater than the lesser of (i) the amount required to meet the financial hardship, or (ii) the amount of his Account, and shall be subject to approval by the Committee. For purposes
of this Section 4.08, an unforeseeable emergency means a financial hardship as defined under Code Section 409A, which hardship the Member is unable to satisfy with funds reasonably available from other sources. The circumstances that will
constitute an unforeseeable emergency will depend upon the facts of each case as determined by the Committee. 

 ARTICLE V.
SOURCE OF PAYMENTS 
  

	5.01	All payments of benefits under the Plan shall be paid from, and shall only be a general claim upon, the general assets of the Bank, notwithstanding that the Bank, in its discretion,
may establish a bookkeeping reserve or a grantor trust (as such term is used in Code Sections 671 through 677) to reflect or to aid it in meeting its obligations under the Plan with respect to any Member or prospective Member or Beneficiary. No
benefit provided by the Plan shall be payable from the assets of the Retirement Fund or the Thrift Plan. 

  

	5.02	No Member shall have any right, title or interest whatever in or to any investments which the Bank may make or any specific assets which the Bank may reserve to aid it in meeting
its obligations under the Plan. To the extent that any person acquires a right to receive payments from the Bank under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Bank. 

 ARTICLE VI. DESIGNATION OF BENEFICIARIES 
  

	6.01	Each Member of the Plan may file with the Committee a written designation of one or more persons as the Beneficiary who shall be entitled to receive the amount, if any, payable
under the Plan upon his death. The Member may, from time to time, revoke or change his Beneficiary designation without the consent of any prior Beneficiary by filing a new designation with the Committee. The last such designation received by the
Committee shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Committee prior to the Member’s death, and in no event shall it be effective as to a date prior
to such receipt. 

  

					
	Benefit Equalization Plan	  	8	  	

	6.02	If no such Beneficiary designation is in effect at the time of a Member’s death, or if no designated Beneficiary survives the Member, or if, in the opinion of the Committee,
such designation conflicts with applicable law, the Member’s estate shall be deemed to have been designated his Beneficiary and shall be paid the amount, if any, payable under the Plan upon the Member’s death. If the Committee is in doubt
as to the right of any person to receive such amount, the Committee may retain such amount, without liability for any interest thereon, until the rights thereto are determined, or the Committee may pay such amount into any court of appropriate
jurisdiction and such payment shall be a complete discharge of the liability of the Plan and the Bank therefore. 

 ARTICLE
VII. ADMINISTRATION OF THE PLAN 
  

	7.01	The Committee shall have general authority over and responsibility for the administration and interpretation of the Plan. The Committee shall have full power and discretionary
authority, subject to Board approval, to interpret and construe the Plan, to make all determinations considered necessary or advisable for the administration of the Plan and any trust referred to in Article V, and the calculation of the amount of
benefits payable thereunder, and to review claims for benefits under the Plan. The Committee’s interpretations and constructions of the Plan and its decisions or actions thereunder shall be binding and conclusive on all persons for all
purposes. 

  

	7.02	The Committee shall arrange for the engagement of the Actuary, and if the Committee deems it advisable, it shall arrange for the engagement of legal counsel and certified public
accountants (who may be counsel or accountants for the Bank), and other consultants, and make use of agents and clerical or other personnel, for purposes of the Plan. The Committee may rely upon the written opinions of such Actuary, counsel,
accountants and consultants, and upon any information supplied by the Retirement Fund or the Thrift Plan for purposes of Sections 3.01, 4.01 and 4.02 of the Plan, and delegate to any agent or to any sub-committee or Committee member its authority to
perform any act hereunder, including without limitations those matters involving the exercise of discretion; provided, however, that such delegation shall be subject to revocation at any time at the discretion of the Committee. The Committee shall
report to the Board, or to a committee designated by the Board, at such intervals as shall be specified by the Board or such designated committee, with regard to the matters for which it is responsible under the Plan. 

  

	7.03	No Committee member shall be entitled to act on or decide any matters relating solely to such member or any of his rights or benefits under the Plan. 

  

	7.04	A Committee member shall be reimbursed for any reasonable expenses incurred in connection with his services as a Committee member. No bond or other security need be required of the
Committee or any member thereof in any jurisdiction. 

  

	7.05	 All claims for benefits under the Plan shall be submitted in writing to the Chairman of the Committee. Written notice of the decision on each such claim shall be
furnished with reasonable promptness to the Member or his Beneficiary (the claimant). The claimant may request a review by the Committee of any decision denying the claim in whole or in 

  

					
	Benefit Equalization Plan	  	9	  	

	 	 
part. Such request shall be made in writing, and filed with the Committee within 30 days of such denial. A request for review shall contain all additional
information which the claimant wishes the Committee to consider. The Committee may hold any hearing or conduct any independent investigation which it deems desirable to render its decision, and the decision on review shall be made as soon as
feasible after the Committee’s receipt of the request for review. Written notice of the decision on review shall be furnished to the claimant. For all purposes under the Plan, such decisions on claims (where no review is requested) and
decisions on review (where review is requested) shall be final, binding and conclusive on all interested persons as to all matters relating to the Plan. 

  

	7.06	All expenses incurred by the Committee in its administration of the Plan shall be paid by the Bank. 

 ARTICLE VIII. AMENDMENT AND TERMINATION 
  

	8.01	(a) The Plan may be amended or terminated in any respect at any time by the Committee; provided, however, that no amendment or termination of the Plan shall be effective to reduce
any benefits that accrue before the adoption of such amendment or termination. If and to the extent permitted without violating the requirements of Section 409A of the Code, the Committee may require that all of the Member’s Accounts be
distributed as soon as practicable after such termination. If and to the extent that the Committee does not accelerate the timing of distributions on account of the termination of the Plan, payment of any remaining benefits under the Plan shall be
made at the same times and in the same manner as such distributions would have been made based upon the terms of the Plan, as in effect at the time the Plan is terminated. 

 (b) If and to the extent otherwise permitted by Section 409A and the Treasury Regulations thereunder, the Bank may terminate and liquidate the Plan
if the following requirements are met: 
 (i) the termination and liquidation does not occur proximate to a downturn in the
financial health of the Bank; 
 (ii) the Bank terminates and liquidates all agreements, methods, programs and other
arrangements sponsored by the Bank that would be aggregated with any terminated and liquidated agreements, methods, programs, and other arrangements under Section 1.409A-1(c) of the treasury Regulations if the Member had deferrals of
compensation under all of the agreements, methods, programs, and other arrangements that are terminated and liquidated; 
 (iii) no payments in liquidation of the Plan are made within twelve (12) months of the date the Bank takes all necessary action to irrevocably terminate and liquidate the Plan, other than payments that would be payable under the terms
of the Plan if the action to terminate and liquidate the Plan had not been taken; 
 (iv) all payments are made within
twenty-four (24) months of the date the Bank takes all necessary action to irrevocably terminate and liquidate the Plan; and 
  

					
	Benefit Equalization Plan	  	10	  	

 (v) the Bank does not adopt a new plan that would be aggregated with any terminated and
liquidated plan under applicable Treasury Regulations if the same Member participated in both plans, at any time within three (3) years following the date that the Bank takes all necessary action to irrevocably terminate and liquidate the Plan.

 ARTICLE IX. GENERAL PROVISIONS 
  

	9.01	The Plan shall be binding upon and inure to the benefit of the Bank and its successors, and assigns and the Members, and the successors, assigns, designees and estates of the
Members. The Plan shall also be binding upon and inure to the benefit of any successor bank or organization succeeding to substantially all of the assets and business of the Bank, but nothing in the Plan shall preclude the Bank from merging or
consolidating into or with, or transferring all or substantially all of its assets to, another bank which assumes the Plan and all obligations of the Bank hereunder. The Bank agrees that it will make appropriate provision for the preservation of
Members’ rights under the Plan in any agreement or plan which it may enter into to effect any merger, consolidation, reorganization or transfer of assets. In such a merger, consolidation, reorganization, or transfer of assets and assumption of
Plan obligations of the Bank, the term Bank shall refer to such other bank and the Plan shall continue in full force and effect. 

  

	9.02	Neither the Plan nor any action taken thereunder shall be construed as giving to a Member the right to be retained in the employ of the Bank or as affecting the right of the Bank to
dismiss any Member from its employ. 

  

	9.03	The Bank shall withhold or cause to be withheld from all benefits payable under the Plan all federal, state, local or other taxes required by applicable law to be withheld with
respect to such payments. 

  

	9.04	No right or interest of a Member under the Plan may be assigned, sold, encumbered, transferred or otherwise disposed of and any attempted disposition of such right or interest shall
be null and void. Further, no right or interest of a Member may be reached by any creditor of the Member. 

  

	9.05	If the Committee shall find that any person to whom any amount is or was payable under the Plan is unable to care for his affairs because of illness or accident or because he is a
minor then any payment, or any part thereof, due to such person (unless a prior claim therefor has been made by a duly appointed legal representative), may, if the Committee is so inclined, be paid to such person’s spouse, child or other
relative, an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment. Any such payment shall be in complete discharge of
the liability of the Plan and the Bank therefor. 

  

	9.06	 All elections, designations, requests, notices, instructions, and other communications from a Member, Beneficiary or other person to the Committee required or
permitted under the Plan shall be in such form as is prescribed from time to time by the Committee and shall be mailed by first class mail or delivered to such location as shall be specified 

  

					
	Benefit Equalization Plan	  	11	  	

	 	 
by the Committee and shall be deemed to have been given and delivered only upon actual receipt thereof at such location. 

  

	9.07	The benefits payable under the Plan shall be in addition to all other benefits provided for employees of the Bank and shall not be deemed salary or other compensation by the Bank
for the purpose of computing benefits to which he may be entitled under any other plan or arrangement of the Bank. 

  

	9.08	No Committee member shall be personally liable by reason of any instrument executed by him or on his behalf, or action taken by him, in his capacity as a Committee member nor for
any mistake of judgment made in good faith. The Bank hereby indemnifies and holds harmless the Retirement Fund, the Thrift Plan and each Committee member and each employee, officer or director of the Bank, the Retirement Fund or the Thrift Plan, to
whom any duty, power, function or action in respect of the Plan may be delegated or assigned, or from whom any information is requested for Plan purposes, against any cost or expense (including fees of legal counsel) and liability (including any sum
paid in settlement of a claim or legal action with the approval of the Bank) arising out of anything done or omitted to be done in connection with the Plan, unless arising out of such person’s fraud or bad faith. 

  

	9.09	As used in the Plan, the masculine gender shall be deemed to refer to the feminine, and the singular person shall be deemed to refer to the plural, wherever appropriate.

  

	9.10	The captions preceding the Sections of the Plan have been inserted solely as a matter of convenience and shall not in any manner define or limit the scope or intent of any
provisions of the Plan. 

  

	9.11	The Plan shall be construed according to the laws of the State of Illinois in effect from time to time. 

  

	9.12	This Plan shall be construed in a manner consistent with the applicable requirements of Section 409A of the Code, and the Committee, in its sole discretion and without the
consent of any Member or Beneficiary, may amend the provisions of this Plan if and to the extent that the Committee determines that such amendment is necessary or appropriate to comply with the applicable requirements of Section 409A of the
Code. 

 IN WITNESS WHEREOF, the FEDERAL HOME LOAN BANK OF CHICAGO has caused the Plan to be executed effective as of
January 1, 2005. 
  

	
	Approved by the Board of Directors this 19th day of December, 2008.
	
	 /s/ Peter E. Gutzmer

	Its Corporate Secretary

  

					
	Benefit Equalization Plan	  	12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}]]