**Exhibit 10.16**

 

**ELGINFINANCIAL SAVINGS BANK**

**DIRECTORRETIREMENT AGREEMENT**

 

THISAGREEMENT is adopted this 20th day of  June, 2002, by and between ELGIN FINANCIAL SAVINGS BANK, aState/Stock Savings Bank located in Elgin, Illinois (the “Company”) and LARRY M.NARUM (the “Director”).

 

**INTRODUCTION**

 

Toencourage the Director to remain a member of the Company’s Board of Directors,the Company is willing to provide retirement benefits to the Director.  The Company will pay the benefits from itsgeneral assets.

 

**AGREEMENT**

 

TheDirector and the Company agree as follows:

 

**Article 1**

**Definitions**

 

Whenever used in thisAgreement, the following words and phrases shall have the meanings specified:

 

1.1                                 *“Changeof Control”* means:

 

(a)                                  A change in theownership of the capital stock of the Company, whereby another corporation,person, or group acting in concert (hereinafter this Agreement shallcollectively refer to any combination of these three [another corporation,person, or group acting in concert] as a “Person”) as described in Section14(d)(2) of the Securities Exchange Act of 1934, as amended (the “ExchangeAct”), acquires, directly or indirectly, beneficial ownership (within themeaning of Rule 13d-3 promulgated under the Exchange Act) of a number of sharesof capital stock of the Company  whichconstitutes fifty percent (50%) or more of the combined voting power of theCompany’s  then outstanding capitalstock then entitled to vote generally in the election of directors; or

 

(b)                                 The persons whowere members of the Board of Directors of the Company immediately prior to atender offer, exchange offer, contested election or any combination of theforegoing, cease to constitute a majority of the Board of Directors; or

 

(c)                                  The adoption bythe Board of Directors of the Company of a merger, consolidation orreorganization plan involving the Company in which the Company is not thesurviving entity, or a sale of all or substantially all of the assets of theCompany.  For purposes of thisAgreement, a sale

 

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of all or substantially all of the assets ofthe Company shall be deemed to occur if any Person acquires (or during the12-month period ending on the date of the most recent acquisition by suchPerson, has acquired) gross assets of the Company that have an aggregate fairmarket value equal to fifty percent (50%) or more of the fair market value ofall of the respective gross assets of the Company immediately prior to suchacquisition or acquisitions; or

 

(d)                                 A tender offeror exchange offer is made by any Person which results in such Personbeneficially owning (within the meaning of Rule 13d-3 promulgated under theExchange Act) either fifty percent (50%) or more of the Company’s outstandingshares of Common Stock or shares of capital stock having fifty percent (50%) ormore the combined voting power of the Company’s then outstanding capital stock(other than an offer made by the Company), and sufficient shares are acquiredunder the offer to cause such person to own fifty percent (50%) or more of thevoting power; or

 

(e)                                  Any othertransactions or series of related transactions occurring which havesubstantially the same effect as the transactions specified in any of thepreceding clauses of this Section 1.1.

 

Notwithstandingthe above, certain transfers are permitted within Section 318 of the Code andsuch transfers shall not be deemed a Change of Control under this Section 1.1.

 

1.1                                 “*Code*”means the Internal Revenue Code of 1986, as amended.

 

1.2                                 “*Disability*”means the Director’s suffering a sickness, accident or injury which has beendetermined by the carrier of any individual or group disability insurancepolicy covering the Director, or by the Social Security Administration, to be adisability rendering the Director totally and permanently disabled.  The Director must submit proof to theCompany of the carrier’s or Social Security Administration’s determination uponthe request of the Company.

 

1.3                                 *“Early Termination”* means theTermination of Service before Normal Retirement Age for reasons other thandeath, Disability, Termination for Cause or following a Change of Control.

 

1.4                                 “*EarlyTermination Date*” means the month, day and year in which EarlyTermination occurs.

 

1.5                                 “*EffectiveDate*” means January 1, 2002.

 

1.6                                 “*NormalRetirement Age*” means the Director’s 70th birthday.

 

1.7                                 “*NormalRetirement Date*” means the later of the Normal Retirement Age orTermination of Service.

 

1.8                                 “*Plan**Year*”means each 12-month period from the Effective Date.

 

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1.9                                 “*Terminationfor Cause*” See Section 5.2.

 

1.10                           “*Terminationof Service*” means that the Director ceases to be a member of theCompany’s Board of Directors for any reason, voluntarily or involuntarily,other than by reason of a leave of absence approved by the Company.

 

1.11                           “*Years ofService*” means the total number of twelve-month periods during whichthe Director has served on the Company’s Board of Directors.  The Director was appointed to the Board ofDirectors of the Company in January, 2001.

 

**Article 2**

**LifetimeBenefits**

** **

2.1                                 *Normal Retirement Benefit*.  Upon Termination of Service on or afterNormal Retirement Age****for reasons other than death, the Companyshall pay to the Director the benefit described in this Section 2.1 in lieu ofany other benefit under this Agreement.

 

2.1.1                        *Amount of Benefit*.  The annual benefit under this Section 2.1 is $15,500 (FifteenThousand Five Hundred Dollars).  TheCompany’s Board of Directors, in its sole discretion, may increase the annualbenefit under this Section 2.1.1; however, any increase shall require therecalculation of Schedule A.

 

2.1.2                        *Payment of Benefit*.  The Company shall pay the annual benefit to the Director in 12equal monthly installments payable on the first day of each month commencingwith the month following the Director’s Normal Retirement Date, paying theannual benefit to the Director for a period of 10 years.

 

2.1.3                        Benefit*Increases*.  Commencing on the first anniversary of thefirst benefit payment, and continuing on each subsequent anniversary, theCompany’s Board of Directors, in its sole discretion, may increase the benefit.

 

2.2                                 *Early Termination Benefit*.  Upon Early Termination, the Company shallpay to the Director the benefit described in this Section 2.2 in lieu of anyother benefit under this Agreement.

 

2.2.1                        *Amount of Benefit*.  The benefit under this Section 2.2 is theEarly Termination annual Installment set forth on Schedule A for the Plan Yearending immediately prior to the Early Termination Date, determined by zerovesting prior to the Director completing ten (10) Years of Service andthereafter the Director becomes 100 percent vested in the Accrual Balance.  An increase in the annual benefit underSection 2.1.1 shall require the recalculation of this benefit on ScheduleA.  This benefit is determined bycalculating a 10-year fixed annuity from the Accrual Balance, creditinginterest on the unpaid balance at an annual rate of 7.50 percent, compoundedmonthly.

 

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2.2.2                        *Payment of Benefit*.  The Company shall pay the annual benefit tothe Director in 12 equal monthly installments commencing with the monthfollowing Termination of Service, paying the annual benefit to the Director fora period of 10 years.

 

2.2.3                        *Benefit Increases*.  Benefit payments may be increased as provided in Section 2.1.3.

 

2.3                                 *Disability Benefit.*  If the Director terminates Service due toDisability prior to Normal Retirement Age, the Company shall pay to theDirector the benefit described in this Section 2.3 in lieu of any other benefitunder this Agreement.

 

2.3.1*                       **Amount of Benefit.*  The benefit under this Section 2.3 is theDisability annual Installment set forth in Schedule A for the Plan Year endingimmediately prior to the date in which Termination of Service occurs,determined by zero vesting prior to the Director completing ten (10) Years ofService and thereafter the Director becomes 100 percent vested in the AccrualBalance.  An increase in the annualbenefit under Section 2.1.1 would require the recalculation of this benefit onSchedule A.  This benefit is determinedby calculating a 10-year fixed annuity from the Accrual Balance, creditinginterest on the unpaid balance at an annual rate of 7.50 percent, compoundedmonthly.

 

2.3.2                        *Payment of Benefit.*  The Company shall pay the annual benefitamount to the Director in 12 equal monthly installments commencing with themonth following Termination of Service, paying the annual benefit to theDirector for a period of 10 years.

 

2.3.3                        *Benefit Increases*.  Benefit payments may be increased as provided in Section 2.1.3.

 

2.4*                                **Change of Control Benefit*.  Upon a Change of Control, the Company shallpay to the Director the benefit described in this Section 2.4 in lieu of anyother benefit under this Agreement.

 

2.4.1*                       **Amount of Benefit.*  The annual benefit under this Section 2.4 isthe Change of Control annual Installment set forth on Schedule A for the PlanYear ending immediately prior to the date in which Termination of Serviceoccurs, determined by vesting the Director in the Normal Retirement Benefitdescribed in Section 2.1.1.

 

2.4.2                        *Payment of Benefit**.******* The Company shall pay the annual benefit to the Director in 12equal monthly installments commencing with the month following the NormalRetirement Age, paying the annual benefit to the Director for a period of 10years.

 

2.4.3                        *Benefit Increases*.  Benefit payments may be increased as provided in Section 2.1.3.

 

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**Article 3**

**DeathBenefits**

** **

3.1                                 *Death During Active Service*.  If the Director dies while in the activeservice of the Company, the Company shall pay to the Director’s beneficiary thebenefit described in this Section 3.1. This benefit shall be paid in lieu of the Lifetime Benefits under Article2.

 

3.1.1                        *Amount of Benefit*.  The annual benefit under this Section 3.1 is the Pre-retirementDeath Benefit annual Installment set forth on Schedule A for the Plan Yearending immediately prior to the date in which death occurs, determined byvesting the Director in 100 percent of the Accrual Balance. An increase in theannual benefit under Section 2.1.1 would require the recalculation of thisbenefit on Schedule A.  This benefit isdetermined by calculating a 10-year fixed annuity from the Accrual Balance,crediting interest on the unpaid balance at an annual rate of 7.50 percent,compounded monthly.

 

3.1.2                        *Payment of Benefit*.  The Company shall pay the annual benefit to the Director’sbeneficiary in 12 equal monthly installments commencing with the monthfollowing the Director’s death, paying the annual benefit to the Director’sbeneficiary for a period of 10 years.

 

3.2                                 *Death During Payment of a LifetimeBenefit*.  If the Director dies afterany Lifetime Benefit payments have commenced under this Agreement but beforereceiving all such payments, the Company shall pay the remaining benefits tothe Director’s beneficiary at the same time and in the same amounts they wouldhave been paid to the Director had the Director survived.

 

3.3                                 *Death After Termination ofEmployment But Before Payment of a Lifetime Benefit Commences.*** **If the Director is entitled to a Lifetime Benefit under this Agreement,but dies prior to the commencement of said benefit payments, the Company shallpay the same benefit payments to the Director’s beneficiary that the Directorwas entitled to prior to death except that the benefit payments shall commenceon the first day of the month following the date of the Director’s death.

 

**Article 4**

**Beneficiaries**

 

4.1                                 *Beneficiary Designations*.  The Director shall designate a beneficiaryby filing a written designation with the Company.  The Director may revoke or modify the designation at any time byfiling a new designation.  However,designations will only be effective if signed by the Director and received bythe Company during the Director’s lifetime. The Director’s beneficiary designation shall be deemed automaticallyrevoked if the beneficiary predeceases the Director or if the Director names aspouse as beneficiary and the marriage is subsequently dissolved.  If the Director dies without a validbeneficiary designation, all payments shall be made to the Director’s estate.

 

4.2                                 *Facility of Payment*.  If a benefit is payable to a minor, to aperson declared incompetent

 

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or to a person incapable of handling thedisposition of his or her property, the Company may pay such benefit to theguardian, legal representative or person having the care or custody of suchminor, incapacitated person or incapable person.  The Company may require proof of incompetence, minority orguardianship as it may deem appropriate prior to distribution of thebenefit.  Such distribution shall completelydischarge the Company from all liability with respect to such benefit.

 

**Article 5**

**GeneralLimitations**

 

5.1                                 *Excess Parachute Payment*.  Notwithstanding any provision of thisAgreement to the contrary, the Company shall not pay any benefit under thisAgreement to the extent the benefit would create an excise tax under the excessparachute rules of Section 280G of the Code.

 

5.2                                 *Termination for Cause*.  Notwithstanding any provision of thisAgreement to the contrary, the Company shall not pay any benefit under thisAgreement if the Company terminates the Director’s service for:

 

(a)                                  Conviction of afelony or of a gross misdemeanor involving moral turpitude; or

(b)                                 Fraud, disloyalty,dishonesty or willful violation of any law or significant Company policycommitted in connection with the Director’s service and resulting in an adverseeffect on the Company.

 

5.3                                 *Suicide or Misstatement*.  The Company shall not pay any benefit underthis Agreement if the Director commits suicide within three years after thedate of this Agreement.  In addition,the Company shall not pay any benefit under this Agreement if the Director hasmade any material misstatement of fact on an employment application or resumeprovided to the Company, or on any application for any benefits provided by theCompany to the Director.

 

**Article 6**

**Claims andReview Procedure**

 

6.1                                 *ClaimsProcedure*.  Any personor entity (“claimant”) who has not received benefits under this Agreement thathe or she believes should be paid shall make a claim for such benefits asfollows:

 

6.1.1                        *Initiation– Written Claim*.  Theclaimant initiates a claim by submitting to the Company a written claim for thebenefits.

 

6.1.2                        *Timing ofCompany Response.*  The Companyshall respond to such claimant within 90 days after receiving the claim.  If the Company determines that specialcircumstances require additional time for processing the claim, the Company canextend the response period by an additional 90 days by notifying the claimantin writing, prior to the end of the initial 90-day period, that an additionalperiod is required.  The notice ofextension must 

 

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setforth the special circumstances and the date by which the Company expects torender its decision.

 

6.1.3                        *Notice ofDecision*.  If theCompany denies part or all of the claim, the Company shall notify the claimantin writing of such denial.  The Companyshall write the notification in a manner calculated to be understood by theclaimant.  The notification shall set forth:

 

(a)                                  The specificreasons for the denial,

(b)                                 A reference tothe specific provisions of the Agreement on which the denial is based,

(c)                                  A description of anyadditional information or material necessary for the claimant to perfect theclaim and an explanation of why it is needed,

(d)                                 An explanation of theAgreement’s review procedures and the time limits applicable to suchprocedures, and

(e)                                  A statement of theclaimant’s right to bring a civil action under ERISA Section 502(a) followingan adverse benefit determination on review.

 

6.2                                 *ReviewProcedure*.  If theCompany denies part or all of the claim, the claimant shall have theopportunity for a full and fair review by the Company of the denial, asfollows:

 

6.2.1                        *Initiation– Written Request*.  Toinitiate the review, the claimant, within 60 days after receiving the Company’snotice of denial, must file with the Company a written request for review.

 

6.2.2                        *Additional*Submissions*– Information Access*.  The claimant shall then have the opportunityto submit written comments, documents, records and other information relatingto the claim.  The Company shall alsoprovide the claimant, upon request and free of charge, reasonable access to,and copies of, all documents, records and other information relevant (asdefined in applicable ERISA regulations) to the claimant’s claim for benefits.

 

6.2.3                        *Considerationson Review*.  Inconsidering the review, the Company shall take into account all materials andinformation the claimant submits relating to the claim, without regard towhether such information was submitted or considered in the initial benefitdetermination.

 

6.2.4                        *Timing ofCompany Response*.  TheCompany shall respond in writing to such claimant within 60 days afterreceiving the request for review.  Ifthe Company determines that special circumstances require additional time forprocessing the claim, the Company can extend the response period by anadditional 60 days by notifying the claimant in writing, prior to the end ofthe initial 60-day period, that an additional period is required.  The notice of extension must set forth the specialcircumstances and the date by which the Company expects to render its decision.

 

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6.2.5                        *Notice ofDecision*.  TheCompany shall notify the claimant in writing of its decision on review.  The Company shall write the notification ina manner calculated to be understood by the claimant.  The notification shall set forth:

 

(a)                                  The specific reasons for thedenial,

(b)                                 A reference to the specificprovisions of the Agreement on which the denial is based,

(c)                                  A statement that theclaimant is entitled to receive, upon request and free of charge, reasonableaccess to, and copies of, all documents, records and other information relevant(as defined in applicable ERISA regulations) to the claimant’s claim for benefits,and

(d)                                 A statement of theclaimant’s right to bring a civil action under ERISA Section 502(a).

 

**Article 7**

**Amendmentsand Termination**

 

This Agreement may beamended or terminated only by a written agreement signed by the Company and theDirector.

 

Notwithstanding the previousparagraph in this Article 7, the Company may amend or terminate this Agreementat any time if, pursuant to legislative, judicial or regulatory action,continuation of the Agreement would (i) cause benefits to be taxable to the Directorprior to actual receipt, or (ii) result in significant financial penalties orother significantly detrimental ramifications to the Company (other than thefinancial impact of paying the benefits). However, in no event shall this Agreement be terminated under thissection without payment to the Director of any vested benefit.

 

**Article 8**

**Miscellaneous**

 

8.1                                 *Binding Effect*.  This Agreement shall bind the Director andthe Company, and their beneficiaries, survivors, executors, successors,administrators and transferees.

 

8.2                                 *No Guarantee of Service*.  This Agreement is not a contract forservices.  It does not give the Directorthe right to remain in the service of the Company, nor does it interfere withthe shareholder’s rights to discharge the Director.  It also does not require the Director to remain in the service ofthe Company nor interfere with the Director’s right to terminate services atany time.

 

8.3                                 *Non-Transferability*. Benefitsunder this Agreement cannot be sold, transferred, assigned, pledged, attachedor encumbered in any manner.

 

8.4                                 *Reorganization. *The Company shall not mergeor consolidate into or with another company, or reorganize, or sellsubstantially all of its assets to another company, firm, or person 

 

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unless such succeeding or continuing company,firm, or person agrees to assume and discharge the obligations of the Companyunder this Agreement.  Upon theoccurrence of such event, the term “Company” as used in this Agreement shall bedeemed to refer to the successor or survivor company.

 

8.5                                 *Tax Withholding*.  The Company shall withhold any taxes thatare required to be withheld from the benefits provided under this Agreement.

 

8.6                                 *Applicable Law*.  The Agreement and all rights hereunder shallbe governed by the laws of the State of Illinois, except to the extentpreempted by the laws of the United States of America.

 

8.7                                 *Unfunded Arrangement*.  The Director and beneficiary are generalunsecured creditors of the Company for the payment of benefits under thisAgreement.  The benefits represent themere promise by the Company to pay such benefits.  The rights to benefits are not subject in any manner to anticipation,alienation, sale, transfer, assignment, pledge, encumbrance, attachment, orgarnishment by creditors.  Any insuranceon the Director’s life is a general asset of the Company to which the Directorand beneficiary have no preferred or secured claim.

 

8.8                                 *Entire Agreement. *This Agreement constitutesthe entire agreement between the Company and the Director as to the subjectmatter hereof.  No rights are granted tothe Director by virtue of this Agreement other than those specifically setforth herein.

 

8.9                                 *Administration. *The Company shall havepowers which are necessary to administer this Agreement, including but notlimited to:

 

(a)                                  Establishingand revising the method of accounting for the Agreement;

(b)                                 Maintaining arecord of benefit payments; and

(c)                                  Establishingrules and prescribing any forms necessary or desirable to administer theAgreement; and

(d)                                 Interpretingthe provisions of the Agreement.

 

8.10                           *Named Fiduciary.*The Companyshall be the named fiduciary and plan administrator under the Agreement.  The named fiduciary may delegate to otherscertain aspects of the management and operation responsibilities of the planincluding the Service of advisors and the delegation of ministerial duties toqualified individuals.

 

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IN WITNESS WHEREOF, theDirector and a duly authorized Company officer have signed this Agreement.

 
| DIRECTOR:           |   | COMPANY:                      |
|---------------------|--------|-------------------------------|
|                |   |                          |
|                |   | ELGIN  FINANCIAL SAVINGS BANK |
|                |   |                          |
| /s/  Larry M. Narum |   | By                            | /s/  Barrett J. O'Connor |
| LARRY  M. NARUM     |   | Title                         | President/CEO |
|                     |        |                               |  |  |

 

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**BENEFICIARYDESIGNATION**

 

**ELGINFINANCIAL SAVINGS BANKDIRECTOR RETIREMENT AGREEMENT**

 

**LARRY M. NARUM**

 

I designate the following as beneficiary ofany death benefits under this Agreement:

 

Primary: Larry M. Narum, as Trustee of the Larry M. Narum Revocable Trust datedAugust 30, 1995 and restated December 11, 2001.

 

Contingent:                                                                                                                                                                          

 

                                                                                                                                                                                                       

 

**Note:  To name a trust as beneficiary, pleaseprovide the name of the trustee(s) and the exact name and date of thetrust agreement.**

 

I understand that I may change thesebeneficiary designations by filing a new written designation with theCompany.  I further understand that thedesignations will be automatically revoked if the beneficiary predeceases me,or, if I have named my spouse as beneficiary and our marriage is subsequentlydissolved.

 

 
| Signature | /s/  Larry M. Narum |   |
|-----------|---------------------|--------|
|      |
| Date      | 06/20/02            |   |
|           |                     |        |  |

 

 

Receivedby the Company this 1st day of July, 2002.

 

 
| By     | /s/  Barrett J. O'Connor |   |
|--------|--------------------------|--------|
|   |
| Title  | President/CEO            |   |
|        |                          |        |  |

 

 

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| Clark/Bardes Consulting |   | **Elgin Financial Savings Bank**             |
|-------------------------|--------|----------------------------------------------|
| Banking Practice        |   | **Director Retirement Agreement-Schedule A** |

 

Larry Narum
|                                                                                               |
|----------------------------------------------------------------------------------------------------|
| **DOB: 8/21/1946  Plan Anniv Date: 1/1/2003   Retirement Age: 70  Payments: Monthly Installments** |   | **Early Termination** |   | **Disability** |   | **Change of Control** |   | **Preretirement Death Benefit** |
|                                                                                               | **Installment** |   | **Installment** |   | **Installment** |   |   |
|                                                                                               | **Payable Immediately** |   | **Payable Immediately** |   | **Payable at 70** |   | **Installment** |
| **Period  Ending  Dec of**                                                                         |   | **Age** |   | **Benefit Level (2)** |   | **Accrual Balance** |   | **Vesting** |   | **Based On Accrual** |   | **Vesting** |   | **Based On Accrual** |   | **Vesting** |   | **Based On Benefit** |   | **Based On Accrual** |
|                                                                                               |   |   |   | **(1)** |   | **(2)** |   | **(3)** |   | **(4)** |   | **(5)** |   | **(6)** |   | **(7)** |   | **(8)** |   | **(9)** |
| 2002(1)                                                                                            |   | 56 |   | 15,500 |   | 4,277 |   | 0 | % | 0 |   | 0 | % | 0 |   | 100 | % | 15,500 |   | 605 |
| 2003                                                                                               |   | 57 |   | 15,500 |   | 8,885 |   | 0 | % | 0 |   | 0 | % | 0 |   | 100 | % | 15,500 |   | 1,258 |
| 2004                                                                                               |   | 58 |   | 15,500 |   | 13,852 |   | 0 | % | 0 |   | 0 | % | 0 |   | 100 | % | 15,500 |   | 1,961 |
| 2005                                                                                               |   | 59 |   | 15,500 |   | 19,204 |   | 0 | % | 0 |   | 0 | % | 0 |   | 100 | % | 15,500 |   | 2,718 |
| 2006                                                                                               |   | 60 |   | 15,500 |   | 24,971 |   | 0 | % | 0 |   | 0 | % | 0 |   | 100 | % | 15,500 |   | 3,535 |
| 2007                                                                                               |   | 61 |   | 15,500 |   | 31,186 |   | 0 | % | 0 |   | 0 | % | 0 |   | 100 | % | 15,500 |   | 4,415 |
| 2008                                                                                               |   | 62 |   | 15,500 |   | 37,884 |   | 0 | % | 0 |   | 0 | % | 0 |   | 100 | % | 15,500 |   | 5,363 |
| 2009                                                                                               |   | 63 |   | 15,500 |   | 45,102 |   | 0 | % | 0 |   | 0 | % | 0 |   | 100 | % | 15,500 |   | 6,385 |
| 2010                                                                                               |   | 64 |   | 15,500 |   | 52,880 |   | 0 | % | 0 |   | 0 | % | 0 |   | 100 | % | 15,500 |   | 7,486 |
| 2011                                                                                               |   | 65 |   | 15,500 |   | 61,262 |   | 100 | % | 8,672 |   | 100 | % | 8,672 |   | 100 | % | 15,500 |   | 8,672 |
| 2012                                                                                               |   | 66 |   | 15,500 |   | 70,294 |   | 100 | % | 9,951 |   | 100 | % | 9,951 |   | 100 | % | 15,500 |   | 9,951 |
| 2013                                                                                               |   | 67 |   | 15,500 |   | 80,028 |   | 100 | % | 11,329 |   | 100 | % | 11,329 |   | 100 | % | 15,500 |   | 11,329 |
| 2014                                                                                               |   | 68 |   | 15,500 |   | 90,518 |   | 100 | % | 12,813 |   | 100 | % | 12,813 |   | 100 | % | 15,500 |   | 12,813 |
| 2015                                                                                               |   | 69 |   | 15,500 |   | 101,821 |   | 100 | % | 14,414 |   | 100 | % | 14,414 |   | 100 | % | 15,500 |   | 14,414 |
| Aug  2016                                                                                          |   |   |   | 15,500 |   | 109,496 |   | 100 | % | 15,500 |   | 100 | % | 15,500 |   | 100 | % | 15,500 |   | 15,500 |
| First Payment Date of September 1, 2016                                                            |

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(1) Assumes an implementation date of January1, 2002.  The first line reflects 12months of data, January 2002 through December 2002.

 
| /s/  Larry Narum |   | /s/  Barrett J. O'Connor      |   | 7/1/02 |
|------------------|--------|-------------------------------|--------|--------|
| Participant      |   | Elgin  Financial Savings Bank |   | Date   |

 

 

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