**Exhibit10.3**

 

**WEST SUBURBAN BANCORP, INC.**

 

RESTATED EMPLOYMENT AGREEMENT – KEITH W. ACKER

 

This RESTATED EMPLOYMENT AGREEMENT (this “**Agreement**”), is made and entered into as ofthe 8th day of March, 2004 (the “**EffectiveDate**”), by and between WEST SUBURBAN BANCORP, INC., an Illinoiscorporation (the “**Employer**”), andKEITH W. ACKER, an Illinois resident (the “**Executive**”).

 

**RECITALS:**

 

A.            The Employer owns all of the issued and outstandingcapital stock of West Suburban Bank, Lombard, Illinois (the “**Bank**”).

 

B.             The Employer desires to continue to employ the Executiveas an officer of the Employer and of the Bank for a specified term and theExecutive is willing to continue such employment upon the terms and conditionshereinafter set forth.

 

C.             Additionally, the Employer recognizes that circumstancesmay arise which may result in a change in control of the Employer and/or theBank (through acquisition or otherwise) thereby causing uncertainty withrespect to the Executive’s employment without regard to the competence or pastcontributions of the Executive and that such uncertainty may result in the lossto the Employer and/or the Bank of the valuable services provided by theExecutive.  In such circumstances, theEmployer and the Executive wish to provide reasonable security to the Executiveagainst changes in the Executive’s employment relationship with the Employerand/or the Bank.

 

D.            Executive currently serves as theVice President and Chief Operating Officer of Employer and the President and aTrust Officer of the Bank pursuant to that certain Employment Agreement datedMay 1, 1997, as amended pursuant to that certain Amendment to EmploymentAgreement dated January 21, 1999 (as amended, the “**1997 Employment Agreement**”).

 

E.             The parties desire to amend andrestate the 1997 Employment Agreement in accordance with the terms, and subjectto the conditions, set forth herein.

 

**NOW,THEREFORE,** in consideration of the promises and of thecovenants and agreements hereinafter contained, it is covenanted and agreed byand between the parties hereto as follows:

 

**AGREEMENTS:**

 

1.**             TERMOF EMPLOYMENT WITH AUTOMATIC RENEWAL PROVISIONS.  The period of Executive’s employment under this Agreement shallbe deemed to have commenced on the Effective Date and shall continue for aperiod of approximately three (3) years through December 31, 2006.  The term of employment of the Executiveunder this Agreement shall automatically be extended for one (1) additionalyear on December 31st of each year beginning December 31, 2004,unless either the Employer or the Executive notifies the other party, bywritten notice delivered no later than**

 

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**November 1st of suchyear, that the term of employment of the Executive under this Agreement shallnot be extended for an additional year. In addition, upon the occurrence of a Change in Control (as definedbelow), the term of employment of the Executive under this Agreement shall beautomatically renewed and extended to provide a term of employment (inaccordance with the terms, and subject to the conditions, set forth herein)equal to a period of three (3) years from the date of the consummation of theChange in Control.**

 

# 2.             POSITIONAND DUTIES.  The Employer herebycontinues to employ the Executive as the Vice President and Chief OperatingOfficer of the Employer and as the President of the Bank or in such othersenior executive capacity as shall be mutually agreed between the Employer andthe Executive.  During the period of theExecutive’s employment hereunder, the Executive shall devote his best effortsand full business time, energy, skills and attention to the business andaffairs of the Employer and its affiliates, including the Bank.  The Executive’s duties and authority shallconsist of and include all duties and authority customarily performed and heldby persons holding equivalent positions with business organizations similar innature and size to the Employer, as such duties and authority are reasonablydefined, modified and delegated from time to time by the Board of Directors ofthe Employer (the “**Board**”).  The Executive shall have the powersnecessary to perform the duties assigned to him and shall be provided suchsupporting services, staff and other assistance, office space and accoutrementsas shall be reasonably necessary and appropriate in the light of such assignedduties.

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# 3.             COMPENSATION.  As compensation for the services to beprovided by the Executive hereunder, the Executive shall receive the followingcompensation, expense reimbursement and other benefits:

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## (a)           BASESALARY.  The Executive shall receivean aggregate annual minimum base salary at the rate of two hundred eighty-threethousand three hundred ninety-one and 00/100 dollars ($283,391.00) payable ininstallments in accordance with the regular payroll schedule of the Bank (“**Base Salary**”).  Such Base Salary shall be subject to review annually commencingin 2004 and shall be maintained or increased during the term hereof inaccordance with the Employer’s established management compensation policies andpractices.

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## (b)           BONUS.  The Executive shall be eligible for anannual bonus (“**Bonus**”) withrespect to each fiscal year of the Employer in accordance with the Employer’scompensation and bonus policies and practices for senior executiveofficers.  The amount of the Bonus, ifany, shall be determined by the Compensation Committee of the Board (the “**Compensation Committee**”).

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## (c)           CLUBMEMBERSHIP.  The Executive shall bereimbursed for membership dues and other customary charges at the MedinahCountry Club.

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## (d)           DEFERREDCOMPENSATION.  Employer shall makecontributions for the benefit of Executive to the Employer’s Directors andSenior Management Deferred Compensation Plan (“**Deferred Compensation Plan**”), including any successor plan orprogram thereto, in an annual amount of not less than twenty-five thousanddollars ($25,000).

 

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## (e)           VACATIONS. Executive shall receive paid vacation days of at least such number ofpaid vacation days as Executive shall be entitled to receive as of the datehereof in accordance with the Employer’s vacation policy in effect as of thedate hereof.  The method of accrual,forfeiture and scheduling of vacation days shall be in accordance with, andsubject to, the Employer’s general vacation policies and practices.

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## (f)            LONG TERM CARE INSURANCE.  Employer shall provide Executive andExecutive’s spouse with coverage under, and shall pay the premiums with respectto, long term care insurance in accordance with the terms, and subject to theconditions, as the Employer shall provide to other senior executiveofficers.  The Executive acknowledgesthat this benefit shall be subject to the continued availability of such longterm care insurance from the insurer under which this benefit is provided to othersenior executives from time to time.

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## (g)           REIMBURSEMENTOF EXPENSES.  The Executive shall bereimbursed, upon submission of appropriate vouchers and supportingdocumentation, for all travel, entertainment and other out-of-pocket expensesreasonably and necessarily incurred by the Executive in the performance of hisduties hereunder and shall be entitled to attend seminars, conferences andmeetings relating to the business of the Employer consistent with theEmployer’s established policies in that regard.

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## (h)           OTHERBENEFITS.  The Executive shall beentitled to all benefits specifically established for him and, when and to theextent he is eligible therefor, to participate in all plans and benefitsgenerally accorded to senior executives of the Employer, including, but notlimited to the following to the extent provided, if at all, to other seniorexecutives of the Employer:  pension;profit-sharing; employee stock ownership plan; supplemental retirement;incentive compensation; bonus; disability income; split-dollar life insurance;group life; health, medical (including dental, vision and prescription druginsurance, if any) and hospitalization insurance; long term care insurance; andsimilar or comparable plans, and also to perquisites extended to similarlysituated senior executives; provided, however, that such plans, benefits andperquisites shall be no less than those made available to all other employeesof the Employer.

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## (i)            WITHHOLDING.  The Employer shall be entitled to withholdfrom amounts payable to the Executive hereunder, any federal, state or localwithholding or other taxes or charges which it is from time to time required towithhold.  The Employer shall beentitled to rely upon the opinion of its legal counsel with regard to anyquestion concerning the amount or requirement of any such withholding.

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# 4.             CONFIDENTIALITYAND LOYALTY.  The Executive acknowledgesthat heretofore or hereafter during the course of his employment he hasproduced and may hereafter produce and have access to material, records, data,trade secrets and information not generally available to the public(collectively, “**Confidential Information**”)regarding the Employer and its subsidiaries and affiliates.  Accordingly, during and subsequent totermination of this Agreement, the Executive shall hold in confidence and notdirectly or indirectly disclose, use, copy or make lists of any suchConfidential Information, except to the extent that such information is orthereafter becomes lawfully available from public sources, or such disclosureis authorized in writing by the Employer, required by a law or any competentadministrative agency or judicial authority, or otherwise as reasonablynecessary or appropriate in connection

 

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with performance by the Executive of his duties hereunder.  All records, files, documents and othermaterials or copies thereof relating to the Employer’s business which theExecutive shall prepare or use, shall be and remain the sole property of theEmployer, shall not be removed from the Employer’s premises without its writtenconsent, and shall be promptly returned to the Employer upon termination of theExecutive’s employment hereunder.  TheExecutive agrees to abide by the Employer’s reasonable policies, as in effectfrom time to time, respecting avoidance of interests conflicting with those ofthe Employer.  In the event of anyviolation or threatened violation of these restrictions, the Employer, inaddition to and not in limitation of being relieved of all further obligationsunder this Agreement and of any other rights, remedies or damages available tothe Employer under this Agreement or otherwise at law or in equity, shall beentitled to preliminary and permanent injunctive relief to prevent or restrainany such violation by the Executive and any and all persons directly orindirectly acting for or with him, as the case may be.

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# 5.             TERMINATION.

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## (a)                                  AGREEMENTNON-EXTENSION OR EMPLOYMENT TERMINATION BY EMPLOYER AND TERMINATION BYEXECUTIVE.

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### (i)            In the event of the termination ofthe Executive’s employment under this Agreement by the Employer prior to thelast day of the then current term for any reason other than a termination inaccordance with the provisions of paragraph (c) of this Section 5 (TERMINATIONFOR CAUSE), or the non-extension of this Agreement by the Employer inaccordance with the provisions of Section 1, the Employer shall (A) continue topay the Executive the Base Salary then payable to the Executive, (B) continueto pay the Executive an annual Bonus in an amount equal to the average of hismost recent three (3) years’ annual Bonus amounts, and (C) shall continue toprovide coverage for the Executive under all plans and benefits otherwiseprovided to senior executives of the Employer (including without limitation,group health, life, disability and long term care insurance coverage, clubdues, and Deferred Compensation Plan contributions), unless unable to continuesuch coverage by law, for the remainder of the term of this Agreement, provided,however, that in the circumstance where the term of this Agreement is notextended, the Executive must remain employed with the Employer to receive suchpayments and benefits; further provided, that the continued payment of theseamounts by the Employer shall not offset or diminish any compensation orbenefits accrued as of the date of termination or non-extension.  In addition, within thirty (30) days ofExecutive’s termination of employment, the Employer shall pay the Executive (a)such Base Salary and vacation pay (for unused vacation days in accordance withthe Employer’s policies and practices with respect to vacation pay) as shallhave accrued and remains unpaid through the effective date of the termination,(b) Bonuses previously determined by the Compensation Committee for any priorfiscal year(s) that remain unpaid, (c) for all accrued and unused sick days and(d) reimbursement of previously incurred expenses eligible for reimbursementpursuant to the Employer’s policies and practices concerning reimbursement ofexpenses.  Further provided, thatExecutive shall also have such rights to payments, if any, as are providedunder the terms of the Deferred Compensation Plan, the Amended and RestatedLife Insurance Agreement entered into by and between the Employer and Executiveand as amended from time to time and such retirement plans under whichExecutive participated at the time of his termination.

 

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### (ii)           In the event that the Executiveelects to terminate his employment under this Agreement for any reason otherthan a termination in accordance with the provisions of paragraph (b)(CONSTRUCTIVE DISCHARGE) or (f) (CHANGE IN CONTROL) of this Section 5, theEmployer shall pay the Executive a lump sum amount equal to eighteen (18) timesthe sum of (A) the monthly Base Salary then payable to the Executive, plus(B) one twelfth (1/12) of the base annual deferred compensationcontribution made by the Employer under the Deferred Compensation Plan for theyear prior to the Executive’s termination. Payment to the Executive will be made within thirty (30) days of suchtermination.  In addition, within thirty(30) days of Executive’s termination of employment, the Employer shall pay theExecutive (a) such Base Salary and vacation pay (for unused vacation days inaccordance with the Employer’s policies and practices with respect to vacationpay) as shall have accrued and remains unpaid through the effective date of thetermination, (b) Bonuses previously determined by the Compensation Committeefor any prior fiscal year(s) that remain unpaid, (c) for all accrued and unusedsick days, and (d) reimbursement of previously incurred expenses eligible forreimbursement pursuant to the Employer’s policies and practices concerningreimbursement of expenses.    Furtherprovided, that Executive shall also have such rights to payments, if any, asare provided under the terms of the Deferred Compensation Plan, the Amended andRestated Life Insurance Agreement entered into by and between the Employer andExecutive and as amended from time to time and such retirement plans underwhich Executive participated at the time of his termination.

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### (iii)          Unless a Change in Control shall haveoccurred, if the Employer is not in compliance with its minimum capitalrequirements or if the payments required under subparagraph (i) or (ii) abovewould cause the Employer’s capital to be reduced below its minimum capitalrequirements, such payments shall be deferred until such time as the Employer isin capital compliance.

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## (b)           CONSTRUCTIVEDISCHARGE.  If at any time duringthe term of this Agreement, except in connection with a termination pursuant toparagraph (c) (TERMINATION FOR CAUSE) of this Section 5, the Executive isConstructively Discharged (as hereinafter defined) then the Executive shallhave the right, by written notice to the Employer within sixty (60) days ofsuch Constructive Discharge, to terminate his services hereunder, effective asof the thirtieth (30th) day after such notice, and the Executiveshall have no rights or obligations under this Agreement other than as providedin Sections 4 and 7 hereof.  TheExecutive shall in such event be entitled to a lump sum payment of compensationand benefits and continuation of all plans and benefits as if such terminationof his employment was pursuant to subparagraph (a)(i) of this Section 5.

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### (i)            For purposes of this Agreement, theExecutive shall be “**Constructively Discharged**”upon the occurrence of any one of the following events:

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#### (A)          The Executive is not re-elected or isremoved from the positions with the Employer or any affiliate set forth inSection 1 hereof, other than as a result of the Executive’s election orappointment to positions of equal or superior scope and responsibility; or

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#### (B)           The Executive shall fail to be vestedby the Employer with the powers and authority of his appointed office; or

 

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#### (C)           The Employer changes the primaryemployment location of the Executive to a place that is more than thirty (30)miles from the primary employment location as of the Effective Date of thisAgreement; or

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#### (D)          The Employer otherwise commits amaterial breach of its obligations under this Agreement.

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## (c)           TERMINATIONFOR CAUSE.  The Executive’semployment hereunder may be terminated for cause as hereinafter defined.  “**Cause**”shall mean:  (i) the Executive’s death;(ii) a material violation by the Executive of any applicable material law orregulation respecting the business of the Employer; (iii) the Executive beingfound guilty of a felony or an act of dishonesty in connection with theperformance of his duties as an officer of the Employer, or which disqualifiesthe Executive from serving as an officer or director of the Employer; or (iv) thewillful or negligent failure of the Executive to perform his duties hereunderin any material respect.  Executive’semployment under this Agreement may be terminated immediately for any causeexcept under (iv) above.  The Executiveshall be entitled to at least thirty (30) days’ prior written notice of theEmployer’s intention to terminate his employment under (iv) above, specifyingthe grounds for such termination, a reasonable opportunity to cure any conductor act, if curable, alleged as grounds for such termination, and a reasonableopportunity to present to the Board his position regarding any dispute relatingto the existence of such cause.  UponExecutive’s termination for Cause, the Employer shall have no obligations toExecutive other than payment, within thirty (30) days, of (A) such Base Salaryand vacation pay (for unused vacation days in accordance with the Employer’spolicies and practices with respect to vacation pay) as shall have accrued andremains unpaid through the effective date of the termination, (B) Bonusespreviously determined by the Compensation Committee for any prior fiscalyear(s) that remain unpaid, (C) all accrued and unused sick days, and (D)reimbursement for previously incurred expenses eligible for reimbursementpursuant to the Employer’s policies and practices concerning reimbursement ofexpenses.  In addition, Executive shallalso have such rights to payments, if any, as are provided under the terms ofthe Deferred Compensation Plan, the Amended and Restated Life InsuranceAgreement entered into by and between the Employer and Executive and as amendedfrom time to time and such retirement plans under which Executive participatedat the time of his termination.

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## (d)           TERMINATIONUPON DEATH.  Upon Executive’s death,the Employer shall have no obligations to Executive other than payment, withinthirty (30) days, of (i) such Base Salary and vacation pay (for unused vacationdays in accordance with the Employer’s policies and practices with respect tovacation pay) as shall have accrued and remains unpaid through the effectivedate of the termination, (ii) Bonuses previously determined by the CompensationCommittee for any prior fiscal year(s) that remain unpaid, (iii) all accruedand unused sick days, and (iv) reimbursement for previously incurred expenseseligible for reimbursement pursuant to the Employer’s policies and practicesconcerning reimbursement of expenses. In addition, Executive shall also have such rights to payments as are providedunder the Deferred Compensation Plan, the Amended and Restated Life InsuranceAgreement entered into by and between the Employer and Executive and as amendedfrom time to time and such retirement plans under which Executive participatedat the time of his death.  Payment shallbe made to such beneficiary as Executive may designate in writing, or failingsuch designation, to the executor of his estate, in full settlement andsatisfaction of all claims and demands on behalf of

 

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the Executive.  Such paymentsshall be in full settlement and satisfaction of all payments provided for inthis Agreement.

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## (e)           PAYMENTUPON TERMINATION FOR DISABILITY. The Employer may terminate the Executive’s employment hereunder afterthe Executive is determined to be permanently disabled under the Employersponsored disability income insurance program or by a physician engaged by theEmployer.  In the event of a disputeregarding the Executive’s disability, each party shall choose a physician whotogether will choose a third physician to make a final determination.  The Executive shall be entitled to thecompensation and benefits provided for under this Agreement for any periodduring the term of this Agreement and prior to the establishment of theExecutive’s disability during which the Executive is unable to work due to aphysical or mental infirmity.  In theevent of the termination of the Executive’s employment hereunder due to thepermanent disability of the Executive, the Employer shall continue to pay the Executiveeighty percent (80%) of the Base Salary per month then payable to theExecutive, reduced by any amounts received under the Employer sponsoreddisability income insurance program, and shall continue to provide coverage forthe Executive under the health and life insurance programs maintained by theEmployer until the earlier of the date the Executive returns to full-timeemployment, either with the Employer or another employer, or Executive’sdeath.  In addition, the Employer shallpay the Executive, within thirty (30) days of termination, (i) such Base Salaryand vacation pay (for unused vacation days in accordance with the Employer’spolicies and practices with respect to vacation pay) as shall have accrued andremains unpaid through the effective date of the termination, (ii) Bonusespreviously determined by the Compensation Committee for any prior fiscalyear(s) that remain unpaid, (iii) for all accrued and unused sick days, and(iv) reimbursement of previously incurred expenses eligible for reimbursementpursuant to the Employer’s policies and practices concerning reimbursement ofexpenses.  Further provided, thatExecutive shall also have such rights to payments, if any, as are providedunder the terms of the Deferred Compensation Plan, the Amended and RestatedLife Insurance Agreement entered into by and between the Employer and Executiveand as amended from time to time and such retirement plans under whichExecutive participated at the time of his termination.  Notwithstanding anything contained in thisAgreement to the contrary, until the date specified in a notice of terminationrelating to the Executive’s disability, the Executive shall be entitled toreturn to his positions with the Employer as set forth in this Agreement inwhich event no disability of the Executive will be deemed to haveoccurred.  Notwithstanding any otherprovision of this Agreement, in the event of the termination of the Executive’semployment under this Agreement for any reason, if permitted by law, theExecutive may elect to have any disability income insurance policy maintainedby the Employer on his behalf transferred to him, and he shall assume allobligations thereunder.

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## (f)            TERMINATIONUPON CHANGE IN CONTROL.

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### (i)            In the event of a Change in Controland the termination of the Executive’s employment under either (A) or (B)below, the Executive shall be entitled to a lump sum payment equal to three (3)times the sum of the following: (w) his annual Base Salary then payable plus(x) the average of his most recent three (3) years’ annual DeferredCompensation Plan contributions plus (y) the average of his most recent three(3) years’ employee stock ownership plan contributions plus (z) the average ofhis most recent three (3) years’ annual Bonuses.  In the event of a Change in Control, the Employer shall alsoprovide the Executive

 

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with the benefits contemplated in subparagraph (ii) of paragraph (h)(CERTAIN INSURANCE BENEFITS) of this Section 5 below and, upon termination ofthe Executive’s employment under either (A) or (B) below, shall pay theExecutive, within thirty (30) days of termination: (a) such Base Salary andvacation pay (for unused vacation days in accordance with the Employer’spolicies and practices with respect to vacation pay) as shall have accrued andremains unpaid through the effective date of the termination, (b) Bonusespreviously determined by the Compensation Committee for any prior fiscalyear(s) that remain unpaid, (c) for all accrued and unused sick days, and (d)reimbursement of previously incurred expenses eligible for reimbursementpursuant to the Employer’s policies on reimbursement of expenses.  Further provided, that Executive shall alsohave such rights to payments, if any, as are provided under the terms of theDeferred Compensation Plan, the Amended and Restated Life Insurance Agreemententered into by and between the Employer and Executive and as amended from timeto time and such retirement plans under which Executive participated at thetime of his termination.  If theExecutive’s employment has terminated prior to the Change in Control inaccordance with the terms of this Agreement and the Employer has made allrequired payments under any other applicable provision of this Section 5, thenno amount shall be paid under this paragraph (f).  Either of the following shall constitute termination under thisparagraph:

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#### (A)          The Executive terminates hisemployment by a written notice to that effect delivered to the Employer withintwenty-four (24) months after the Change in Control.

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#### (B)           Executive’s employment under thisAgreement is terminated by the Employer either in contemplation of or after theChange in Control.

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### (ii)           Notwithstanding the precedingparagraphs of this Section 5 and except as provided in this subparagraph (ii),in the event that it shall be determined that any payment, benefit or otherentitlement under this Agreement and any other plan or arrangement of theEmployer or the Bank (the “**Total Payments**”)would constitute an “Excess Parachute Payment” within the meaning of Section280G of the Internal Revenue Code of 1986, as amended (the “**Code**”) and thereby be subject to the excisetax imposed by Section 4999 of the Code or any similar successor provision orany interest or penalties with respect to such excise tax (collectively the “**Excise Tax**”), then, except in the case of ade Minimus Excess Amount (as defined below), the Executive shall be entitled toreceive an additional payment (a “**Gross-UpPayment**”) in an amount such that after payment by the Executive ofall taxes imposed upon the Gross-Up Payment (including any federal, state andlocal income, payroll and excise taxes and any interest or penalties imposedwith respect to such taxes), the Executive retains an amount of the Gross UpPayment equal to the Excise Tax imposed upon the Total Payments (not includingany Gross-Up Payment).  If, at a laterdate, the Internal Revenue Service assesses a deficiency against the Executivefor the Excise Tax which is greater than that which was determined at the timesuch amounts were paid, then the Employer shall pay to the Executive the amountof such unreimbursed Excise Tax plus any interest, penalties and reasonableprofessional fees or expenses incurred by the Executive as a result of suchassessment, including all such taxes with respect to any such additionalamount.  The highest marginal tax rateapplicable to individuals at the time of the payment of such amounts will beused for purposes of determining the federal and state income and other taxeswith respect thereto.  The Employershall withhold from any amounts paid under this Agreement the amount of anyExcise Tax or other federal, state or local

 

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taxes then required to be withheld. Computations of the amount of the Gross-Up Payment paid under thissubparagraph shall be conclusively made by the Employer’s independentaccountants, in consultation, if necessary, with the Employer’s independentlegal counsel.  If, after the Executivereceives any Gross-Up Payment or other amount pursuant to this subparagraph,the Executive receives any refund with respect to the Excise Tax, the Executiveshall promptly pay the Employer the amount of such refund within ten (10) daysof receipt by the Executive. Notwithstanding the foregoing, in the event that the amount by which thepresent value of the Total Payments which would constitute an Excess ParachutePayment is less than two percent (2%) of the Total Payments, then such ExcessParachute Payment shall be deemed to be a “**deMinimus Excess Amount**” and the Executive shall not be entitled to aGross-Up Payment.  In such a case, theTotal Payments will be reduced 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 Code Section 280G; provided that suchreduction shall not be made unless the Non-Triggering Amount would be greaterthan the aggregate value of the Total Payments (without such reduction) minusthe amount of Excise Tax required to be paid by Executive thereon.  The allocation of the reduction required bythe preceding sentence shall be determined by the Executive.

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### (iii)          For purposes of this Agreement, theterm “**Change in Control**” shallmean any of the following:

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#### (A)          The consummation of the acquisition byany person (as such term is defined in Section 13(d) or 14(d) of the SecuritiesExchange Act of 1934, as amended (the “**1934Act**”)) of beneficial ownership (within the meaning of Rule 13d-3promulgated under the 1934 Act) of fifty percent (50%) or more of the combinedvoting power of the then outstanding voting securities of the Employer or theBank; or

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#### (B)           The individuals who, as of the datehereof, are members of the Board of the Employer or the Bank cease for anyreason to constitute a majority of the Board, unless the election, ornomination for election by the shareholders, of any new director was approvedby a vote of a majority of the Board, and such new director shall, for purposesof this Agreement, be considered as a member of the Board; or

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#### (C)           Approval by shareholders of theEmployer or the Bank of:  (1) a mergeror consolidation if the shareholders immediately before such merger orconsolidation do not, as a result of such merger or consolidation, own,directly or indirectly, more than fifty percent (50%) of the combined votingpower of the then outstanding voting securities of the entity resulting fromsuch merger or consolidation in substantially the same proportion as theirownership of the combined voting power of the voting securities of the Employeror the Bank outstanding immediately before such merger or consolidation; or (2)a complete liquidation or dissolution or an agreement for the sale or otherdisposition of all or substantially all of the assets of the Employer or theBank.

 

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### Notwithstanding the foregoing, a Change in Controlshall not be deemed to occur solely because fifty percent (50%) or more of thecombined voting power of the then outstanding securities of the Employer or theBank is acquired by:  (1) a trustee orother fiduciary holding securities under one or more employee benefit plansmaintained for employees of the Employer or the Bank; or (2) any corporationwhich, immediately prior to such acquisition, is owned directly or indirectlyby the shareholders in the same proportion as their ownership of stock of theEmployer or the Bank immediately prior to such acquisition.

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## (g)           REGULATORYSUSPENSION AND TERMINATION.

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### (i)            If the Executive is suspended fromoffice and/or temporarily prohibited from participating in the conduct of theEmployer’s affairs by a notice served under Section 8(e)(3) (12 U.S.C. Section1818(e)(3)) or 8(g) (12 U.S.C. Section 1818(g)) of the Federal DepositInsurance Act, as amended, the Employer’s obligations under this contract shallbe suspended as of the date of service, unless stayed by appropriateproceedings.  If the charges in thenotice are dismissed, the Employer shall (A) pay the Executive all of thecompensation withheld while the contract obligations were suspended and (B)reinstate any of the obligations which were suspended.

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### (ii)           If the Executive is removed and/orpermanently prohibited from participating in the conduct of the Employer’saffairs by an order issued under Section 8(e) (12 U.S.C. Section 1818(e)) or8(g) (12 U.S.C. Section 1818(g)) of the Federal Deposit Insurance Act, asamended, all obligations of the Employer under this contract shall terminate asof the effective date of the order, but vested rights of the contractingparties shall not be affected.

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### (iii)          If the Employer is in default asdefined in Section 3(x) (12 U.S.C. Section 1813(x)(1)) of the Federal DepositInsurance Act, as amended, all obligations of the Employer under this contractshall terminate as of the date of default, but this paragraph shall not affectany vested rights of the contracting parties.

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### (iv)          All obligations of the Employer underthis contract shall be terminated, except to the extent determined thatcontinuation of the contract is necessary for the continued operation of theinstitution by the Federal Deposit Insurance Corporation (the “**FDIC**”), at the time the FDIC enters into anagreement to provide assistance to or on behalf of the Employer under theauthority contained in Section 13(c) (12 U.S.C. Section 1823(c)) of the FederalDeposit Insurance Act, as amended, or when the Employer is determined by theFDIC to be in an unsafe or unsound condition. Any rights of the parties that have already vested, however, shall notbe affected by such action.

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### (v)           Any payments made to the Executivepursuant to this Agreement, or otherwise, are subject to and conditioned upontheir compliance with Section 18(k) (12 U.S.C. Section 1828(k)) of the FederalDeposit Insurance Act as amended, and any regulations promulgated thereunder.

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## (h)           CERTAIN INSURANCE BENEFITS.

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### (i)            In the event of the termination ofExecutive’s employment under this Agreement due to the retirement of theExecutive at or after the attainment of age sixty-two (62),

 

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the Employer shall continue to provide the following benefits to theExecutive, at the expense of the Employer, until the Executive’s death: (A)continuing coverage for the Executive and Executive’s Spouse under Employer’shealth, medical, hospitalization and life insurance programs (including dental,vision and prescription drug coverage, if provided immediately prior to the termination);and (B) long term care insurance in accordance with paragraph (f) (LONG TERMCARE INSURANCE) of Section 3 above including making all required paymentsrelating to such insurance coverage.

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### (ii)           After the occurrence of a Change inControl, the Employer shall continue to provide the following benefits to theExecutive, at the expense of the Employer, until the Executive’s death: (A)continuing coverage that is equivalent to the coverage provided underEmployer’s health, medical, hospitalization and life insurance programs(including dental, vision and prescription drug coverage, if providedimmediately prior to the termination) maintained by the Employer at the time ofthe Change in Control; and (B) long term care insurance in accordance withparagraph (f) (LONG TERM CARE INSURANCE) of Section 3 above including makingall required payments relating to such insurance coverage.

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### (iii)          In the event of the termination ofExecutive’s employment under this Agreement other than as contemplated above inthis paragraph (h) or pursuant to paragraph (c) (TERMINATION FOR CAUSE) above,at the election of the Executive (including the estate of the Executive) andthe Executive’s Spouse and provided such action is not prohibited by the policypursuant to which the Executive receives the benefit contemplated in paragraph(f) (LONG TERM CARE INSURANCE) of Section 3 above, the Employer shall take allactions necessary, including, but not limited to a transfer and assignment ofits interests in the long term health insurance provided to the Executivepursuant to paragraph (f) (LONG TERM CARE INSURANCE) of Section 3 above, inorder to facilitate the ability of the Executive and the Executive’s Spouse tocontinue to maintain the long term health insurance at no additional cost tothe Employer.

###  

# 6.             INTERESTIN ASSETS.  Neither the Executive norhis estate shall acquire hereunder any rights in funds or assets of theEmployer, otherwise than by and through the actual payment of amounts payablehereunder; nor shall the Executive or his estate have any power to transfer,assign, anticipate, hypothecate or otherwise encumber in advance any of saidpayments; nor shall any of such payments be subject to seizure for the paymentof any debt, judgment, alimony, separate maintenance or be transferable byoperation of law in the event of bankruptcy, insolvency or otherwise of theExecutive.

#  

# 7.             INDEMNIFICATION.

#  

## (a)           INSURANCE.  The Employer shall provide the Executive(including his heirs, personal representatives, executors and administrators)for the term of this Agreement with coverage under a standard directors’ andofficers’ liability insurance policy at its expense.

##  

## (b)           INDEMNIFICATIONUNDER STATE LAW.  In addition to theinsurance coverage provided for in paragraph (a) of this Section 7, theEmployer shall hold harmless and indemnify the Executive (and his heirs,executors and administrators) to the fullest extent permitted under applicablelaw against all expenses and liabilities reasonably incurred by him inconnection with or arising out of any action, suit or proceeding in which hemay be involved by reason of his

 

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having been an officer of the Employer (whether or not he continues tobe an officer at the time of incurring such expenses or liabilities), suchexpenses and liabilities to include, but not be limited to, judgments, courtcosts and attorneys’ fees and the cost of reasonable settlements.

##  

## (c)           ADVANCEMENTOF EXPENSES.  In the event theExecutive becomes a party, or is threatened to be made a party, to any action,suit or proceeding for which the Employer has agreed to provide insurancecoverage or indemnification under this Section 7, the Employer shall, to thefull extent permitted under applicable law, advance all expenses (includingreasonable attorneys’ fees), judgments, fines and amounts paid in settlement(collectively “**Expenses**”) incurredby the Executive in connection with the investigation, defense, settlement, orappeal of any threatened, pending or completed action, suit or proceeding,subject to receipt by the Employer of a written undertaking from theExecutive:  (i) to reimburse theEmployer for all Expenses actually paid by the Employer to or on behalf of theExecutive in the event it shall be ultimately determined that the Executive isnot entitled to indemnification by the Employer for such Expenses; and (ii) toassign to the Employer all rights of the Executive to indemnification, underany policy of directors’ and officers’ liability insurance or otherwise, to theextent of the amount of Expenses actually paid by the Employer to or on behalfof the Executive.

##  

# 8.             GENERALPROVISIONS.

#  

## (a)           SUCCESSORS.  This Agreement is personal to the Executiveand shall not be assignable by the Executive other than by will or the laws ofdescent and distribution.  ThisAgreement shall inure to the benefit of and be enforceable by the Executive’sdesignated beneficiary, or if none, Executive’s estate.  This Agreement shall be binding upon andinure to the benefit of the Employer and its successors, and any successor ofthe Employer shall be deemed the “Employer” hereunder.  The Employer shall require any successor toall or substantially all of the business and/or assets of the Employer, whetherdirectly or indirectly, by purchase, merger, consolidation, acquisition ofstock, other business combination, or otherwise, by a written agreement in formand substance satisfactory to the Executive, expressly to assume and agree toperform this Agreement in the same manner and to the same extent as theEmployer would be required to perform if no such succession had taken place.

##  

## (b)           ENTIREAGREEMENT; MODIFICATIONS.  ThisAgreement, along with the Amended and Restated Life Insurance Agreement and theParticipation Agreement under the Deferred Compensation Plan, constitutes theentire agreement between the parties respecting the subject matter hereof, andsupersedes the 1997 Employment Agreement and all prior negotiations,undertakings, agreements and arrangements with respect hereto, whether writtenor oral. Except as otherwise explicitly provided herein, this Agreement may notbe amended or modified except by written agreement signed by the Executive andthe Employer.

##  

## (c)           ENFORCEMENTAND GOVERNING LAW.  The provisionsof this Agreement shall be regarded as divisible and separate; if any of saidprovisions should be declared invalid or unenforceable by a court of competentjurisdiction, the validity and enforceability of the remaining provisions shallnot be affected thereby.  This Agreementshall be construed and the legal relations of the parties hereto shall bedetermined in accordance with the laws of the State of Illinois withoutreference to the law regarding conflicts of law.

 

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## (d)           ARBITRATION.  Any dispute or controversy arising under orin connection with this Agreement or the Executive’s employment by the Employershall be settled exclusively by arbitration, conducted by a single arbitratorsitting in a location selected by the Executive within fifty (50) miles of themain office of the Employer, in accordance with the rules of the AmericanArbitration Association (the “**AAA**”)then in effect.  The arbitrator shall beselected by the parties from a list of arbitrators provided by the AAA,provided that no arbitrator shall be related to or affiliated with either ofthe parties.  No later than ten (10)days after the list of proposed arbitrators is received by the parties, theparties, or their respective representatives, shall meet at a mutuallyconvenient location or telephonically. At that meeting, the party who sought arbitration shall eliminate one(1) proposed arbitrator and then the other party shall eliminate one (1)proposed arbitrator.  The parties shallcontinue to eliminate names from the list of proposed arbitrators in thismanner until a single proposed arbitrator remains.  This remaining arbitrator shall arbitrate the dispute.  Each party shall submit, in writing, thespecific requested action or decision it wishes to take, or make, with respectto the matter in dispute, and the arbitrator shall be obligated to choose one(1) party’s specific requested action or decision, without being permitted toeffectuate any compromise position.  Judgmentmay be entered on the arbitrator’s award in any court having jurisdiction;provided, however, that the Executive shall be entitled to seek specificperformance of his right to be paid through the date of termination during thependency of any dispute or controversy arising under or in connection with thisAgreement.

##  

## (e)           LEGALFEES.  All reasonable legal feespaid or incurred by the Executive pursuant to any dispute or question ofinterpretation relating to this Agreement shall be paid or reimbursed by theEmployer if the Executive is successful on the merits pursuant to a legaljudgment, arbitration or settlement.

##  

## (f)            SURVIVAL.  The provisions of Sections 4 and 7 shallsurvive the termination of this Agreement.

##  

## (g)           WAIVER.  No waiver by either party at any time of anybreach by the other party of, or compliance with, any condition or provision ofthis Agreement to be performed by the other party, shall be deemed a waiver ofany similar or dissimilar provisions or conditions at the same time or anyprior or subsequent time.

##  

## (h)           NOTICES. Notices pursuant to this Agreementshall be in writing and shall be deemed given when received; and, if mailed,shall be mailed by United States registered or certified mail, return receiptrequested, postage prepaid; and if to the Employer, addressed to the principalheadquarters of the Employer, attention: Chairman; or, if to the Executive, to the address set forth below theExecutive’s signature on this Agreement, or to such other address as the partyto be notified shall have given to the other.

 

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IN WITNESSWHEREOF, the parties have executed this Agreement as of the date first abovewritten.

 
| WEST SUBURBAN BANCORP, INC. | KEITH W. ACKER |
|-----------------------------|----------------|
|                        |           |
|                        |           |
| By:                         | /s/            | Duane Debs |   | /s/ Keith W. Acker |
| Name:                       | Duane Debs     |   |   |
|                        | President      |   |   |
|                        |           |
|                        | (Address)      |

 

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