Change in Control Agreement with Mark Tyrpin



 Exhibit 10.8 
 FIRST FEDERAL BANK 
 CHANGE IN CONTROL AGREEMENT 
 This AGREEMENT is entered into effective and made as of September 27, 2000, by and between First Federal Bank (the “Bank”), a federally
chartered savings institution, with its principal administrative offices at 109 East Depot Street, Colchester, Illinois 62326, and First Federal Bancshares, Inc. (the “Holding Company”), a corporation organized under the laws of the State
of Delaware and the holding company of the Bank and Mark Tyrpin (“Executive”). 
 WHEREAS, the Bank recognizes the substantial
contribution Executive has made to the Bank and wishes to continue to protect Executive’s position with the Bank for the period provided in this Agreement in the event of a Change in Control (as defined in this Agreement); and 
 WHEREAS, Executive has agreed to continue serve in the employ of the Bank. 
 NOW, THEREFORE, in consideration of the contribution and responsibilities of Executive, and upon the other terms and conditions hereinafter provided, the parties hereto agree as follows: 
  

	1.	TERM OF AGREEMENT. 

 The period of this Agreement
shall be deemed to have commenced as of the date first above written and shall continue for a period of twenty-four (24) full calendar months from the date of this Agreement. Commencing on September 27, 2000, and at each anniversary date
thereafter, the Board of Directors of the Bank (the “Board”) may extend the term of this Agreement for an additional year so that the remaining term is a full twenty-four (24) calendar months, unless Executive elects not to extend the
term of the Agreement by providing written notice to the Board in accordance with Section 5 of the Agreement. The Board will review the Agreement and Executive’s performance annually for purposes of determining whether to extend the term
of the Agreement, and the results of such review shall be included in the minutes of the Board’s meeting. 
  

	2.	CHANGE IN CONTROL. 

 (a) Upon the occurrence of a
Change in Control (as defined in paragraph (b) of this Section 2), Executive shall be entitled to the payments and benefits provided for in Section 3 of this Agreement upon Executive’s termination of employment on or after the
date the Change in Control occurs due to: (i) Executive’s dismissal at any time during the term of this Agreement; or (ii) Executive’s resignation at any time during the term of this Agreement following any demotion, or loss of
title, office or significant authority, or reduction in Executive’s annual compensation or benefits, or relocation of Executive’s principal place of employment by more than 25 miles from its location immediately prior to the Change in
Control; provided, however, Executive may consent in writing to any such demotion, loss, reduction or relocation. The effect of any written consent of Executive under this Section 2(a) shall be strictly limited to the terms specified in such
written consent. 
 (b) For purposes of this Agreement, a “Change in Control” of the Bank or Holding Company shall mean an event of
a nature that: (i) would be required to be reported in response to Item 1(a) of the Current Report on Form 8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the
“Exchange Act”); or (ii) results in a Change in Control of the Bank or the Holding Company within the meaning of the Home Owners’ Loan Act of 1933 and the Rules and Regulations promulgated by the Office of Thrift Supervision
(“OTS”) (or 








 
its predecessor agency), as in effect on the date hereof (provided, that in applying the definition of change in control or presumptive change in control or
acting in concert or presumptive acting in concert as set forth under the Rules and Regulations of the OTS, ownership by a person or group, including a presumptive group, of at least 15% of the voting stock of the Bank or the Holding Company shall
be required, and provided further that ownership of stock by a tax qualified employee benefit plan of the Bank or the Holding Company shall not be subject to presumptions of control or acting in concert); or (iii) without limitation such a
Change in Control shall be deemed to have occurred at such time as (A) any “person” (as the term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Bank or the Holding Company representing 25% or more of the Bank’s or the Holding Company’s outstanding securities except for any securities of the Bank purchased by the
Holding Company in connection with the conversion of the Bank to the stock form and any securities purchased by any employee benefit plan of the Bank or the Holding Company, or (B) individuals who constitute the board of directors on the date
hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date hereof whose election was approved by a vote of at least three-quarters of
the directors comprising the Incumbent Board (or members who were nominated by the Incumbent Board), or whose nomination for election by the Holding Company’s stockholders was approved by the same Nominating Committee serving under an Incumbent
Board (or members who were nominated by the Incumbent Board), shall be, for purposes of this clause (B), considered as though he were a member of the Incumbent Board, or (C) a plan of reorganization, merger, consolidation, sale of all or
substantially all the assets of the Bank or the Holding Company or similar transaction occurs in which the Bank or Holding Company is not the resulting entity. 
 (c) Notwithstanding any other provision of this Agreement, Executive shall not have the right to receive termination benefits under this Agreement upon Executive’s Termination for Cause. The term
“Termination for Cause” shall mean termination because of Executive’s personal dishonesty, incompetence, willful misconduct, any breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful
violation of any law, rule, regulation (other than traffic violations or similar offenses) or final cease and desist order, or any material breach of this Agreement. In determining incompetence, the acts or omissions shall be measured against
standards of professional competence generally prevailing for officers having comparable positions in the savings institutions industry. Notwithstanding the foregoing, Executive shall not be deemed to have been Terminated for Cause unless and until
there shall have been delivered to Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-fourths of the members of the Board at a meeting of the Board called and held for that purpose (after reasonable notice
to Executive and an opportunity for Executive, together with counsel, to be heard before the Board and which such meeting shall be held not more than 30 days from the date of notice during which period Executive may be suspended with pay), finding
that in the good faith opinion of the Board, Executive was guilty of conduct justifying Termination for Cause and specifying the particulars thereof in detail. Executive shall not have the right to receive compensation or other benefits for any
period after Termination for Cause except for compensation or benefits already vested. Any stock options and related limited rights granted to Executive under any stock option plan, or any unvested awards granted to Executive under any restricted
stock benefit plan of the Holding Company or its subsidiaries, shall become null and void effective upon Executive’s receipt of a Notice of Termination For Cause pursuant to Section 5 of this Agreement except all benefits shall be deemed
to have remained in effect if Executive is reinstated, and shall not be exercisable by or delivered to Executive at any time subsequent to such Termination For Cause. 
  

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	3.	TERMINATION BENEFITS. 

 (a) Upon the occurrence of a
Change in Control, followed at any time by the termination of Executive’s employment in accordance with the provisions of Section 2 of this Agreement, the Bank shall be obligated to pay Executive, or in the event of Executive’s
subsequent death, Executive’s beneficiary or beneficiaries, or Executive’s estate, as the case may be, a sum equal to two (2) times Executive’s average annual compensation for the five most recently completed taxable years of
Executive. For purposes of this Subsection 3(a), annual compensation shall include base salary and any other taxable income, including but not limited to amounts related to the granting, vesting or exercise of restricted stock or stock option
awards, commissions, bonuses, severance payments, retirement benefits, director or committee fees and fringe benefits paid or to be paid to Executive or paid for Executive’s benefit during any such year, as well as profit sharing, employee
stock ownership plan and other retirement contributions or benefits (other than defined benefit pension benefits), including any tax-qualified or non-tax-qualified plan or agreement (whether or not taxable) made or accrued on behalf of Executive for
such year. In addition, for purposes of determining his vested accrued benefit, Executive shall be credited either under the defined benefit pension plan maintained by the Bank or, if not permitted under such plan, under a separate arrangement, with
the additional “years of service” that he would have earned for vesting and benefit accrual purposes for the remaining term of the Agreement had his employment not terminated. At the election of Executive, which election is to be made
prior to or within thirty (30) days of the Date of Termination on or following a Change in Control, such payment may be made in a lump sum (without discount for early payment) on or immediately following the Date of Termination (which may be
the date a Change in Control occurs) or paid in equal monthly installments during the twenty-four (24) months following Executive’s termination. In the event that no election is made, payment to Executive will be made on a monthly basis
during the remaining twenty-four (24) month term of the Agreement. Such payments shall not be reduced in the event Executive obtains other employment following termination of employment. However, in the event the Bank is not in compliance with
its minimum capital requirements or if such payments pursuant to this Section 3 would cause the Bank’s capital to be reduced below its minimum regulatory capital requirements, such payments shall be deferred until such time as the Bank or
successor thereto is in capital compliance. 
 (b) Upon the occurrence of a Change in Control and Executive’s termination of employment
in accordance with the provisions of Section 2 of this Agreement, the Bank will cause to be continued any life, medical, health and disability or dental insurance plan or arrangement in which Executive participates (each being a “Welfare
Benefit Plan”) substantially identical to the benefit coverage maintained by the Bank for Executive and any of his dependents covered under such plans prior to the Change in Control. Such coverage shall cease upon the expiration of thirty-six
(36) full calendar months following the Date of Termination. In the event Executive’s or Executive’s covered dependent’s participation in any such plan or program is barred, the Holding Company shall arrange to provide Executive
and his dependents with benefits coverage substantially similar to those which Executive and his dependents would otherwise have been entitled to receive under such plans and programs by operation of this provision or provide their economic
equivalent to Executive and Executive’s dependents. 
  

	4.	CHANGE IN CONTROL RELATED PROVISIONS. 

 Notwithstanding the preceding paragraphs of Section 3, in no event shall the aggregate payments or benefits to be made or afforded to Executive under this Agreement (the “Termination 

  

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Benefits”) constitute an “excess parachute payment” under Section 280G of the Code or any successor thereto, and in order to avoid such a
result the Termination Benefits will be reduced, if necessary, to an amount (the “Non-Triggering Amount”), the value of which is one dollar ($1.00) less than an amount equal to three (3) times Executive’s “base amount,”
as determined in accordance with said Section 280G. The allocation of any reduction required with respect to the Termination Benefits shall be determined by Executive. 
  

	5.	NOTICE OF TERMINATION. 

 (a) Any purported
termination by the Bank, or by Executive, shall be communicated by a Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in detail the facts and circumstances claimed to provide a basis for termination of Executive”s employment under the provision so indicated. 
 (b) “Date of Termination” shall mean the date specified in the Notice of Termination (which, in the case of Termination for Cause, shall not be
less than thirty (30) days from the date such Notice of Termination is given). 
 (c) If, within thirty (30) days after any Notice
of Termination is given, the party receiving such Notice of Termination notifies the other party that a reasonable dispute exists concerning the termination, the Date of Termination shall be the date on which the dispute is finally determined,
either by mutual written agreement of the parties, by a binding arbitration award, or by a final judgment, order or decree of a court of competent jurisdiction (the time for appeal therefrom having expired and no appeal having been perfected) and
provided further that the Date of Termination shall be extended by a notice of dispute only if such notice is given in good faith and the party giving such notice pursues the resolution of such dispute with reasonable diligence. Notwithstanding the
pendency of any such dispute, the Bank will continue to pay Executive’s base salary and continue to cover Executive under each Welfare Benefit Plan in which Executive participated when the notice giving rise to the dispute was given until the
dispute is finally resolved in accordance with this Agreement. Amounts paid under this Section 5(c) are in addition to all other amounts due under this Agreement and shall not be offset against or reduce any other amounts due under this
Agreement. 
  

	6.	SOURCE OF PAYMENTS. 

 The parties to this Agreement
intend that all payments provided for in this Agreement shall be paid in cash, check or other mutually agreed upon method from the general funds of the Bank. Further, the Holding Company guarantees such payment and provision of all amounts and
benefits due hereunder to Executive and, if such amounts and benefits due from the Bank are not timely paid or provided by the Bank, such amounts and benefits shall be paid or provided by the Holding Company. 
  

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	7.	EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFIT PLANS. 

 This Agreement contains the entire understanding between the parties hereto and supersedes any prior agreement between the Bank and Executive, except that this Agreement shall not affect or operate to reduce any benefit or compensation
inuring to Executive of a kind elsewhere provided. No provision of this Agreement shall be interpreted to mean that Executive is subject to receiving fewer benefits than those available to Executive without reference to this Agreement. 

Nothing in this Agreement shall confer upon Executive the right to continue in the employ of the Bank or shall impose on the Bank or its subsidiaries
any obligation to employ or retain Executive in its employ for any period. 
  

	8.	NO ATTACHMENT. 

 (a) Except as required by law, no
right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment by
operation of law, and any attempt, voluntary or involuntary, to affect any such action shall be null, void, and of no effect. 
 (b) This
Agreement shall be binding upon, and inure to the benefit of, Executive, the Bank and their respective successors and assigns. 
  

	9.	MODIFICATION AND WAIVER. 

 (a) This Agreement may
not be modified or amended except by an instrument in writing signed by the parties hereto. 
 (b) No term or condition of this Agreement
shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written waiver shall be deemed a
continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that
specifically waived. 
  

	10.	REQUIRED REGULATORY PROVISIONS. 

 (a) The Board may
terminate Executive’s employment at any time, but any termination by the board of directors, other than Termination for Cause, shall not prejudice Executive’s right to compensation or other benefits under this Agreement. Executive shall
not have the right to receive compensation or other benefits for any period after Termination for Cause as defined in Section 2 of this Agreement. 
 (b) If Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or 8(g)(1) of the Federal Deposit
Insurance Act (12 U.S.C. §1818(e)(3) or (g)(1)), the Bank’s obligations under this contract shall be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Bank may in
its discretion (i) pay Executive all or part 

  

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of the compensation withheld while their contract obligations were suspended and (ii) reinstate (in whole or in part) any of the benefit obligations
which were suspended. 
 (c) If Executive is removed and/or permanently prohibited from participating in the conduct of the Bank’s
affairs by an order issued under Section 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act (12 U.S.C. §1818(c)(4) or (g)(1)), all obligations of the Bank under this contract shall terminate as of the effective date of the order, but
vested rights of the contracting parties shall not be affected. 
 (d) If the Bank is in default as defined in Section 3(x)(1) of the
Federal Deposit Insurance Act, all obligations of the Bank under this contract shall terminate as of the date of default, but this paragraph shall not affect any vested rights of the contracting parties. 
 (e) All obligations under this contract shall be terminated, except to the extent determined that continuation of the contract is necessary for the
continued operation of the institution: (i) by the Director of the Office of Thrift Supervision (or his or her designee) at the time the Federal Deposit Insurance Corporation or the Resolution Trust Corporation enters into an agreement to
provide assistance to or on behalf of the Bank under the authority contained in Section 13(c) of the Federal Deposit Insurance Act; or (ii) by the Director of the Office of Thrift Supervision (or his or her designee) at the time the
Director (or his or her designee) approves a supervisory merger to resolve problems related to operation of the Bank or when the Bank is determined by the Director to be in an unsafe or unsound condition. Any rights of the parties that have already
vested, however, shall not be affected by such action. 
 (f) Any payments made to Executive pursuant to this Agreement, or otherwise, are
subject to and conditioned upon compliance with 12 U.S.C. §1828(k) and any rules and regulations promulgated thereunder. 
  

	11.	REINSTATEMENT OF BENEFITS UNDER BANK AGREEMENT. 

 In
the event Executive is suspended and/or temporarily prohibited from participating in the conduct of the Bank’s affairs by a notice described in Section 10(b) of this Agreement (the “Notice”) during the term of this Agreement and
a Change in Control, as defined herein, occurs, the Bank will assume its obligation to pay and Executive will be entitled to receive all of the termination benefits provided for under Section 3 of this Agreement upon the Bank’s receipt of
a dismissal of charges in the Notice of Termination. 
  

	12.	SEVERABILITY. 

 If, for any reason, any provision of
this Agreement, or any part of any provision, is held invalid, such invalidity shall not affect any other provision of this Agreement or any part of such provision not held so invalid, and each such other provision and part thereof shall to the full
extent consistent with law continue in full force and effect. 
  

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	13.	HEADINGS FOR REFERENCE ONLY. 

 The headings of
sections and paragraphs herein are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement. In addition, references herein to the masculine shall apply to both the
masculine and the feminine. 
  

	14.	GOVERNING LAW. 

 The validity, interpretation,
performance, and enforcement of this Agreement shall be governed by the laws of the State of Illinois. 
  

	15.	ARBITRATION. 

 Any dispute or controversy arising
under or in connection with this Agreement shall be settled exclusively by arbitration, conducted before a panel of three arbitrators sitting in a location selected by Executive within fifty (50) miles from the location of the Bank, in
accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction; provided, however, that Executive shall be entitled to seek specific
performance of Executive’s right to be paid until the Date of Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement. 
  

	16.	PAYMENT OF LEGAL FEES. 

 All reasonable legal fees
paid or incurred by Executive pursuant to any dispute or question of interpretation relating to this Agreement shall be paid or reimbursed by the Bank if Executive is successful pursuant to a legal judgment, arbitration or settlement. 
  

	17.	INDEMNIFICATION. 

 The Bank shall provide Executive
(including his or her legal representatives, successors and assigns) with coverage under a standard directors’ and officers’ liability insurance policy at its expense and shall indemnify Executive (including his or her legal
representatives, successors and assigns) for reasonable costs and expenses incurred by Executive in defending or settling any judicial or administrative proceeding, or threatened proceeding, whether civil, criminal or otherwise, including any appeal
or other proceeding for review. 
 Indemnification by the Bank shall be made only upon the final judgment on the merits in the favor of
Executive, in case of settlement, in case of final judgment against Executive or in the case of final judgment in favor of Executive other than on the merits, if a majority of the disinterested directors of the Bank determine Executive was acting in
good faith within the scope of Executive’s employment or authority in accordance with 12 C.F.R. Section 545.121(c)(iii). 
 Any
such indemnification of Executive must conform with the notice provisions of 12 C.F.R. Section 545.121(c)(iii) to indemnify Executive to the fullest for such expenses and liabilities to include, but not to be limited to, judgments, court costs
and attorneys’ fees and the cost of reasonable settlements, such settlements to be approved by the Board, if such action is brought against Executive in his or her capacity as an officer or director of the Bank, however, shall not extend to
matters as to which Executive is finally adjudged to be liable for willful misconduct in the performance of his or her duties. 
  

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	18.	SUCCESSOR TO THE BANK. 

 The Bank shall require any
successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all the business or assets of the Bank, expressly and unconditionally to assume and agree to perform the Bank’s
obligations under this Agreement, in the same manner and to the same extent that the Bank would be required to perform if no such succession or assignment had taken place. 
  

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 SIGNATURES 
 IN WITNESS WHEREOF, First Federal Bank and First Federal Bancshares, Inc. have caused this Agreement, to be executed by their duly authorized officers, and Executive has signed this Agreement on November 13,
2000. 
  

									
	 ATTEST:
	 		 	 FIRST FEDERAL BANK

			
	/s/ Ronald A. Feld	 		 	 /s/ James J. Stebor

	 Ronald A. Feld
	 		 	 For the Entire Board of Directors

	 Secretary
	 		 	
			
	 SEAL
	 		 	
			
	 ATTEST:
	 		 	 FIRST FEDERAL BANCSHARES, INC.

		 		 	 (Guarantor)

			
	/s/ Ronald A. Feld	 	 By:
	 	 /s/ James J. Stebor

	 Ronald A. Feld
	 		 	 For the Entire Board of Directors

	 Secretary
	 		 	
			
	 SEAL
	 		 	
			
	 WITNESS:
	 		 	 EXECUTIVE

			
	/s/ Cathy D. Pendell	 		 	 /s/ Mark Tyrpin

		 		 	 Mark Tyrpin


  

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