KL Felicitas Foundation



|Impact First Investment | Program Related Investment |

| | Sustainability Investment |

|Financial First Investment | Mission Related Investment |

| |      Social Component Investment |

Investment Name: Shorebank Jumbo Certificate of Deposit Investment Amount Considered: $300,000, duration, interest

Investment Due Diligence by: Raúl Pomares Signature: _____________________________ Date:

Mission Due Diligence by: Charly and Lisa Kleissner Signature: ______________________________ Date:

Summary Description of Investment:. ShoreBank is a Chicago-based community financial institution with explicit “triple bottom-line goals:” building wealth for community members, promoting a healthier environment, and generating operating profit. ShoreBank provides Community Development Loans from ShoreBank are made to businesses, individuals, nonprofits, and faith-based organizations located in communities where median incomes and housing values are below the regions’ medians. ShoreBank’s Conservation Loans finance activities that positively contribute to preserving natural resources, including the energy-efficient renovation of residential and commercial properties.

ShoreBank Jumbo CDs are a time deposits with ShoreBank in maturities ranging from 30 days to five years and pay….

Main Contacts:

|Debbie Kobak | |

|Foundation Market Strategist, Mission-Based Deposits| |

|333 S State St, Lobby Level | |

|Chicago IL 60604 | |

|deborah_kobak@ | |

Supporting Documents:

|Meeting with ShoreBank on September 21, 2008 | |

|ShoreBank 2007 Triple-Bottom-Line Report | |

|ShoreBank Website: | |

|Investment Due Diligence (Investment Advisor) |

|Investment Structure & Portfolio Implications |

|1: What investment due diligence process will be required to assess the financial viability of | Investment identified by Investment Advisor |+1 |

|this opportunity? |Investment identified by Foundation Principal | |

| |Investment placed after financial due diligence by Investment Advisor | |

| |Investment placed at Foundation’s discretion | |

| |

|2: | |+1 |

|What is the structure of the investment under consideration? |Certficiate of Deposit, FDIC Insured | |

|Is the investment structure ideally suited to achieve both the appropriate risk adjusted rate |Yes No | |

|of return while promoting the foundation’s impact objectives? | | |

| |

|3: | | |+1 |

|What is the asset class? |Cash and Equivalents |Hedge Funds | |

| |Fixed Income |Venture Capital | |

| |Notes/Other debt obligations |Real Estate | |

| |Public Equity |Real Assets | |

| |Private Equity |Notes: | |

| |Notes: | | |

| |

|4: | |0 |

|Will members of the Foundation play an active role in the investment? |Yes No | |

|If so, will questions of self-dealing arise? |b. | |

|Investment Monitoring & Reporting |

|5: |5a: |5b: |0 |

|What is the financial benchmark that will be used to evaluate this investment? |Market indices |< 1 year | |

|a. Over what period(s) of time will we measure the investment performance? |Specify: CODI |3-5 years | |

| |Absolute Return |5-10 years | |

| |Specify: |10-20 years | |

| |Peer Group Comparison |> 20 years | |

| |Specify: |Notes: | |

| | | | |

| |Notes: | | |

|Mission Due Diligence (Foundation Directors and Philanthropic Advisors) |

|Mission Alignment |

|6: |ShoreBank primarily impacts communities located in urban areas. Although the target |+1 |

|How does this investment align with the impact objectives of the Foundation? |population differs with that of the Foundation, the social and economic impact sought is | |

|In what area(s) does the Foundation believe this investment will contribute the greatest degree|otherwise aligned with that of the foundation. ShoreBank’s goal of preservation of natural| |

|of Mission impact? |resources and the environment is also aligned with the Foundation’s core value of | |

| |sustainability. | |

| |This investment will deliver the greatest Mission Impact in the areas of community | |

| |empowerment through economic and social change. ShoreBank’s real estate loans, loans to | |

| |small business and nonprofits, and conservation loans strengthen underserved and | |

| |disinvested communities and accelerates wealth creation among low- and moderate-income | |

| |families. | |

| |

|7: | |0 |

|Are there any elements of this investment that are contrary to any value(s) of the Foundation? |Yes No | |

| | | |

|If so, how is this being addressed? | | |

|Relationship & Reputation |

|8: | |+1 |

|How well does the Foundation know the investment and/or strategy? |The Foundation has made several similar cash savings investments in the past. | |

|What is the nature and duration of this relationship? |The Foundation became familiar with ShoreBank through a highly respected peer referral. | |

|Have members of the foundation made site visit(s)? |Yes No | |

| |Notes: Members of the Foundation Board have met principals and other bank representatives | |

| |at industry events. | |

| |

|9: | |+1 |

|Have other Foundations recognized this as a PRI or social investment? |Yes No | |

|Do other respected partners of the foundation have a relationship with or experience with this | | |

|investment? |Yes No | |

| |Notes: Numerous other Foundations have invested in ShoreBank. | |

| |

|10: | |+1 |

|How integral to the success of the investment is Mission Impact? |ShoreBank is wholly dedicated to serving economically disadvantaged communities by | |

|How much personal financial capital have the investment principals and/or founders committed to|ushering in and ensuring sustainable economic development. To this end, Shorebank will | |

|the investment? |use proceeds from this investment to provide loans and loan guarantees to nonprofit | |

| |organizations throughout the United States to alleviate the burden of unpredictable and | |

| |uneven cash flows. With the availability of loans on favorable terms, these nonprofit | |

| |organizations can continue implementing their own social and environmental programming | |

| |Unknown | |

|Mission Impact Monitoring & Reporting |

|Question 11: | |+1 |

|What approach will be used to evaluate the Mission Impact of the investment? |ShoreBank releases an annual “Triple Bottom-Line” report detailing the amount and nature | |

|What is the proposed nature and scale of the Mission Impact, e.g. in 1 year, 3 years, |of its investments in communities and towards its environmental and sustainability goals. | |

|long-term? |ShoreBank monitors conservation and community development credits, triple bottom-line | |

| |investing, and total mission-related investing. | |

| |Long term, in excess of five years. Although the term of the individual CD is short, the | |

| |Foundation anticipates rolling the investment into a newer CD upon maturity. | |

| |

|Question 12: | |+1 |

|Will the Investment Manager provide Mission Impact reporting? |Yes No | |

| |Notes: As described above in ShoreBank’s annual report. | |

| |

|Question 13: | |+1 |

|Does the investment scale, accelerate, support or re-enforce other SMSIs in the investment or |Yes No | |

|grant portfolios? |Notes: CDs with ShoreBank form a ladder portfolio of CDs, including those from Southern | |

| |Bancorp, creating a CD portfolio diversified across interest rates, duration, and regional| |

| |mission impact. | |

|Additional Comments or Observations |

| | | |

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