Exhibit 10.11


 


June 28,
2005


 


Eric J. Fernandez


c/o Eric J. Fernandez & Co.


895 West Main Street


West Dundee, Illinois  60118


 


Dear Mr. Fernandez:


 


In connection with the anticipated merger (the “Merger”) of EFC Bancorp, Inc.
(the “Company”) with and into MAF Bancorp, Inc. (the “Purchaser”) as
contemplated by the Agreement and Plan of Reorganization by and between the
Purchaser and the Company (the “Merger Agreement”), the Company, EFS Bank (the “Company
Bank”) and you hereby enter into this agreement (this “Agreement”).  Capitalized terms used but not otherwise
defined in this Agreement shall have the meaning set forth in the Merger
Agreement.


 


1.                                       Options.  Prior to December 31,
2005, you may exercise any and all vested options for the purchase of Company common
stock (the “Options”) that you hold as of the date hereof, such that all income
from such exercise shall be included in your gross income for 2005.  For the avoidance of doubt, and
notwithstanding anything herein to the contrary, any income that you derive
from the exercises of the Options (and sale of the underlying shares) as set
forth in the preceding sentence shall not be taken into account in computing
any benefits under any plan, program or arrangement of Mid America Bank (the “Purchaser
Bank”), the Purchaser, the Company Bank, the Company or their affiliates.


 


2.                                       2005 Directors Retirement Agreement Payment.  Prior to December 23, 2005, the Company
Bank shall pay to you an amount equal to the amount set forth on Exhibit A
as the “2005 Directors Retirement Agreement Payment.”  For the avoidance of doubt, and
notwithstanding anything herein to the contrary, the 2005 Directors Retirement
Agreement Payment shall not be taken into account in computing any benefits
under any plan, program or arrangement of the Purchaser Bank, the Purchaser,
the Company Bank, the Company or their affiliates.


 


3.                                       Representation of Rights.  You hereby represent and warrant that, but
for your rights in respect of outstanding stock options and restricted stock in
respect of Company common stock under the Company’s stock compensation plans,
you are not entitled to or eligible for any other payments or benefits under
any plans, agreements or arrangements of or with the Company or the Company
Bank and hereby waive any rights with respect thereto, including the Company
Bank Directors Retirement Agreement.


 





















 


4.                                       Withholding and Reduction.  The Company or Company Bank will withhold and
deposit all federal, state and local income and employment taxes that are owed,
if any, with respect to all amounts paid or benefits provided to or for you by
the Company or any affiliate pursuant to this Agreement.  You, the Company and the Company Bank agree
that none of the payments and benefits payable or provided to you or for your
benefit under this Agreement or otherwise in connection with the Merger are
expected to constitute an “excess parachute payment” within the meaning of Section 280G
of the Code.  However, notwithstanding
anything to the contrary contained in this Agreement, in no event shall the
aggregate payments or benefits to be made or afforded to you under this
Agreement or otherwise (the “Payments”) constitute an “excess parachute payment”
under Section 280G of the Code and in order to avoid such a result the
Payments will be reduced, if necessary, to an amount such that when aggregated
with all other payments, benefits or distributions in the nature of
compensation to or for your benefit, whether paid, payable or provided pursuant
to this Agreement or otherwise (the “Aggregate Payments”), the value of such
Aggregate Payments shall be equal to three (3) times your “base amount,”
as determined in accordance with Section 280G of the Code, less
$5,000.00.  You hereby agree to report
any amounts paid or benefits provided under this Agreement for purposes of
Federal, state and local income, employment and excise taxes in a manner
consistent with the manner in which the Company or Company Bank reports any
such amounts or benefits for purposes of Federal, state and local income,
employment and excise taxes.


 


5.                                       Successors. 
This Agreement is personal to you and without the prior written consent
of the Company shall not be assignable by you otherwise than by will or the
laws of descent and distribution.  This
Agreement shall inure to the benefit of and be enforceable by your legal
representatives.  This Agreement shall
inure to the benefit of and be binding upon the Company, the Company Bank and
their successors and assigns.  From and
after the Effective Date, the “Company” shall mean the “Purchaser,” and “Company
Bank” shall mean “Purchaser Bank,” except to the extent the context indicates
otherwise.


 


6.                                       Waiver.  Failure
of the Company to demand strict compliance with any of the terms, covenants or
conditions of this Agreement shall not be deemed a waiver of such term,
covenant or condition, nor shall any waiver or relinquishment of any such term,
covenant or condition on any occasion or multiple occasions be deemed a waiver
or relinquishment of such term, covenant or condition.


 


7.                                       Governing Law and Jurisdiction. The Agreement is
governed by and construed under the laws of the State of Illinois, without
regard to conflict of laws rules.  You,
the Company and the Company Bank (a) hereby consent to submit to the
exclusive personal jurisdiction of any Federal court located in the State of
Illinois or any court of the State of Illinois in the event any dispute arises
out of this Agreement or any of the transactions contemplated by this
Agreement, and (b) hereby waive any right to challenge jurisdiction or
venue in such courts with regard to any suit, action, or proceeding under or in
connection with the Agreement.  Each
party to this Agreement also hereby waives any right to trial by jury in
connection with any suit, action, or proceeding under or in connection with
this Agreement.


 


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8.                                       Entire and Final Agreement.  This
Agreement shall supersede any and all prior oral or written representations,
understandings and agreements of the parties with respect to their employment
relationship (including, but not limited to all correspondence, memoranda and
term sheets and the Prior Agreements), and it contains the entire agreement of
the parties with respect to those matters. 
No agreements or representations, oral or otherwise, express or implied,
with respect to the subject matter hereof have been made by either party which
are not set forth expressly in this Agreement. 
Once signed by the parties hereto, no provision of this Agreement may be
modified or amended unless agreed to in writing, signed by you and a duly
authorized officer of the Company and the Company Bank and subject to the prior
written consent of the Purchaser.


 


9.                                       Assignment.  Neither
this Agreement nor any of the rights, obligations or interests arising
hereunder may be assigned by you. 
Neither this Agreement nor any of the rights, obligations or interests
arising hereunder may be assigned by the Company or the Company Bank without
your prior written consent, to a person or entity other than an affiliate or
parent entity of the Company or the Company Bank or its successors or assigns; provided, however,
that, in the event of the merger, consolidation, transfer, or sale of all or
substantially all of the assets of the Company or the Company Bank with or to
any other individual or entity, this Agreement shall, subject to the provisions
hereof, be binding upon and inure to the benefit of such successor and such
successor shall discharge and perform all the promises, covenants, duties, and
obligations of the Company and the Company Bank hereunder.


 


10.                                 Section Headings.  The section headings
contained in this Agreement are inserted for purposes of convenience only and
shall not affect the meaning or interpretation of this Agreement.


 


11.                                 Notices.  All
notices required by this Agreement shall be sent in writing and delivered by
one party to the other by overnight express mail to the following persons and
addresses:


 


	
  If to the Company and Company Bank:

  	
  1695 Larkin Avenue

  
	
   

  	
  Elgin, Illinois 60123

  



 


If to you:                                               At the
most recent address on file at the Company.


 


12.                                 Execution in Counterparts.  This
Agreement may be executed by the parties hereto in counterparts, and each of
which shall be considered an original for all purposes.


 


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If the foregoing is satisfactory, please so indicate
by signing and returning to the Company and the enclosed copy of this letter
whereupon this will constitute our agreement on the subject.


 


	
   

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Barrett
  J. O’Connor

  	
   

  
	
   

  	
  Date: June 28,
  2005

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMPANY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Barrett
  J. O’Connor

  	
   

  
	
   

  	
  Date: June 28,
  2005

  
	
   

  	
   

  
	
  ACCEPTED AND AGREED TO:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Eric J. Fernandez

  	
   

  	
   

  
	
  Eric J. Fernandez

  	
   

  
	
  Date: June 28, 2005

  	
   

  
					



 





















 


EXHIBIT A


 


	
  2005
  Directors Retirement Agreement Payment (Section 2):

  	
   

  	
  $

  	
  41,665