Document:

ex104.htm

    Exhibit
      10.4

    

    EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT is made effective as of the 1stday
      of November,
      2007 (the “Effective Date”).

    

    AMONG:

    

    GOMES
      AND GOMES, INC. dba EMPIRE ELECTRIC, a corporation formed pursuant to
      the laws of the State of California and having an office for business located
      at
      4801 Seaport Blvd., West Sacramento, CA 95691 ("Employer") and wholly owned
      subsidiary of WPCS INTERNATIONAL INCORPORATED, a corporation
      formed pursuant to the laws of the State of Delaware (“Parent”);

    

    AND

    

    JUDY
      L.GOMES, an individual having an address at 4801 Seaport Blvd., West
      Sacramento, CA 95691 (“Employee”)

    

    

    WHEREAS,
      Employee has agreed to continue to serve as an Employee of Employer,
      and Employer has agreed to hire Employee as such, pursuant to the terms and
      conditions of this Employment Agreement (the “Agreement”).

    

    NOW
      THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of the
      premises and the mutual covenants, agreements, representations and warranties
      contained herein and other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, Employee and Employer hereby
      agree
      as follows:

    

    ARTICLE
      1

    EMPLOYMENT

    

    Employer
      hereby affirms, renews and extends the employment of Employee as General
      Manager, and Employee hereby affirms, renews and accepts such employment by
      Employer for the “Term” (as defined in Article 3 below), upon the terms and
      conditions set forth herein.

    

    ARTICLE
      2

    DUTIES

    

    During
      the Term, Employee shall serve Employer faithfully, diligently and to the best
      of her ability, under the direction and supervision of the Board of Directors
      of
      Employer and shall use her best efforts to promote the interests and goodwill
      of
      Employer and any affiliates, successors, assigns, subsidiaries, and/or future
      purchasers of Employer. Employee shall render such services during the Term
      at
      Employer’s principal place of business in West Sacramento, California or at such
      other place of business within a 25 mile radius of West Sacramento, California
      as may be determined by the Board of Directors of Employer, as Employer may
      from
      time to time reasonably require of him, and shall devote all of her business
      time to the performance thereof.

    

    ARTICLE
      3

    TERM

    

    The
      “Term” of this Agreement shall commence on the Effective Date and continue
      thereafter for a term of two (2) years, as may be extended or earlier terminated
      pursuant to the terms and conditions of this Agreement.

     

    
      
        1

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      4

    COMPENSATION

    Salary

    

    4.1

    Employer
      shall pay to Employee an annual salary (the “Salary”) of Eighty-Four Thousand
      Dollars ($84,000.00), payable in equal installments at the end of such regular
      payroll accounting periods as are established by Employer, or in such other
      installments upon which the parties hereto shall mutually agree, and in
      accordance with Employer’s usual payroll procedures, but no less frequently than
      monthly.   If this Agreement is extended for additional periods,
      the salary increases will be determined by the Employer’s Board of
      Directors.

    

    Benefits

    

    4.2

    During
      the Term, Employee shall be entitled to participate in all medical and other
      employee benefit plans, including vacation, sick leave, retirement accounts
      and
      other employee benefits provided by Employer to similarly situated employees
      on
      terms and conditions no less favorable than those offered to such employees.
      Such participation shall be subject to the terms of the applicable plan
      documents, Employer’s generally applicable policies, and the discretion of the
      Board of Directors or any administrative or other committee provided for in,
      or
      contemplated by, such plan.

    

    Expense
      Reimbursement

    

    4.3

    Employer
      shall reimburse Employee for reasonable and necessary expenses incurred by
      him
      on behalf of Employer in the performance of her duties hereunder during the
      Term
      in accordance with Employer's then customary policies, provided that such
      expenses are adequately documented.

    

    

    Bonus

    4.4

    In
      addition to the Salary, Employee shall be eligible to receive bonuses, based
      on
      the financial performance of the Employer, at the discretion of the Board of
      Directors of the Employer or Parent.

    

    

    ARTICLE
      5

    OTHER
      EMPLOYMENT

    

    During
      the Term of this Agreement, Employee shall devote substantially all of her
      business and professional time and effort, attention, knowledge, and skill
      to
      the management, supervision and direction of Employer’s business and affairs as
      Employee’s highest professional priority. Except as provided below, Employer
      shall be entitled to all benefits, profits or other issues arising from or
      incidental to all work, services and advice performed or provided by Employee.
      Provided that the activities listed below do not materially interfere with
      the
      duties and responsibilities under this Agreement, nothing in this Agreement
      shall preclude Employee from devoting reasonable periods required
      for:

    
      	
               

            	
              (a)

            	
              Serving
                as a member of any organization involving no conflict of interest
                with
                Employer, provided that Employee must obtain the written consent
                of
                Employer;

            

    

    

    
      	
               

            	
              (b)

            	
              Serving
                as a consultant in her area of expertise to government, commercial
                and
                academic panels where it does not conflict with the interests of
                Employer;
                and

            

    

    

    
      	
               

            	
              (c)

            	
              Managing
                her personal investments or engaging in any other non-competing
                business

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      6

    CONFIDENTIAL
      INFORMATION/INVENTIONS

    

    Confidential
      Information

    

    6.1

    Employee
      shall not, in any manner, for any reasons, either directly or indirectly,
      divulge or communicate to any person, firm or corporation, any confidential
      information concerning any matters not generally known or otherwise made public
      by Employer which affects or relates to Employer’s business, finances, marketing
      and/or operations, research, development, inventions, products, designs, plans,
      procedures, or other data (collectively, “Confidential Information”) except in
      the ordinary course of business or as required by applicable law. Without regard
      to whether any item of Confidential Information is deemed or considered
      confidential, material, or important, the parties hereto stipulate that as
      between them, to the extent such item is not generally known, such item is
      important, material, and confidential and affects the successful conduct of
      Employer’s business and goodwill, and that any breach of the terms of this
      Section 6.1 shall be a material and incurable breach of this Agreement.
      Confidential Information shall not include (i) information in the public domain
      at the time of the disclosure of such information by Employee, (ii) information
      that is disclosed by Employee with the prior consent of Employer, or (iii)
      in
      connection with a legal or governmental proceeding provided that Employee has
      delivered prior written notice thereof to Employer and has reasonably cooperated
      (at Employer’s expense) with any efforts by Employer to prevent such
      disclosure.

    

    Documents

    

    6.2

    Employee
      further agrees that all documents and materials furnished to Employee by
      Employer and relating to the Employer’s business or prospective business are and
      shall remain the exclusive property of Employer. Employee shall deliver all
      such
      documents and materials, not copied, to Employer upon demand therefore and
      in
      any event upon expiration or earlier termination of this Agreement. Any payment
      of sums due and owing to Employee by Employer upon such expiration or earlier
      termination shall be conditioned upon returning all such documents and
      materials, and Employee expressly authorizes Employer to withhold any payments
      due and owing pending return of such documents and materials.

    

    Inventions

    

    6.3

    All
      ideas, inventions, and other developments or improvements conceived or reduced
      to practice by Employee, alone or with others, during the Term of this
      Agreement, whether or not during working hours, that are within the scope of
      the
      business of Employer or that relate to or result from any of Employer’s work or
      projects or the services provided by Employee to Employer pursuant to this
      Agreement, shall be the exclusive property of Employer. Employee agrees to
      assist Employer, at Employer’s expense, to obtain patents and copyrights on any
      such ideas, inventions, writings, and other developments, and agrees to execute
      all documents necessary to obtain such patents and copyrights in the name of
      Employer.

    

    Disclosure

    

    6.4

    During
      the Term, Employee will promptly disclose to the Board of Directors of Employer
      full information concerning any interest, direct or indirect, of Employee (as
      owner, shareholder, partner, lender or other investor, director, officer,
      employee, consultant or otherwise) or any member of her immediate family in
      any
      business that is actually known to Employee to purchase or otherwise obtain
      services or products from, or to sell or otherwise provide services or products
      to, Employer or to any of its suppliers or customers.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      7

    COVENANT
      NOT TO COMPETE

    

    Except
      as
      expressly permitted in Article 5 above, during the Term of this Agreement and
      for a period of two(2) years after the later of the Effective Date or the
      termination of the Employee’s employment by the Employer, Employee shall not
      engage in any of the following competitive activities , (a) engaging, directly
      or indirectly, in any business or activity competitive to any business or
      activity engaged in, or proposed to be engaged in, by Employer or (b) soliciting
      or taking away or interfering with any contractual relationship of any employee,
      agent, representative, contractor, supplier, vendor, customer, franchisee,
      lender or investor of Employer, or using, for the benefit of any person or
      entity other than Employer, any Confidential Information of Employer. The
      foregoing covenant prohibiting competitive activities shall survive the
      termination of this Agreement and shall extend, and shall remain enforceable
      against Employee, with respect to any business or activity that Employer is
      engaging in as of the termination date of this Agreement and the territory
      for
      such business or activity, for the period of two (2) years following the date
      this Agreement is terminated. In addition, during the two-year period following
      such expiration or earlier termination, neither Employee nor Employer or Parent
      shall make or, to the extent within its control, permit the making of any
      negative statement of any kind concerning Employer or its affiliates, or their
      directors, officers or agents or Employee, except in connection with any legal
      or governmental proceedings or actions. Nothing in this Article 7 shall be
      deemed, however, to prevent Employee from owning securities of any
      publicly-owned corporation engaged in any such business, provided that the
      total
      amount of securities of each class owned by Employee in such publicly-owned
      corporation (other than Parent) does not exceed two percent (2%) of the
      outstanding securities of such class.

    

    ARTICLE
      8

    SURVIVAL

    

    Employee
      agrees that the provisions of Articles 6, 7 and 9, and Employer agrees that
      the
      last sentence of Article 7, shall survive expiration or earlier termination
      of
      this Agreement for any reasons, whether voluntary or involuntary, with or
      without cause, and shall remain in full force and effect
      thereafter.  Notwithstanding the foregoing, if this Agreement is
      terminated upon the dissolution of Employer, the filing of a petition in
      bankruptcy by Employer or upon an assignment for the benefit of creditors of
      the
      assets of Employer, Articles 6, 7 and 9 shall be of no further force or
      effect.

    

    ARTICLE
      9

    INJUNCTIVE
      RELIEF

    

    Employee
      acknowledges and agrees that the covenants and obligations of Employee set
      forth
      in Articles 6 and 7 with respect to non-competition, non-solicitation,
      confidentiality and Employer’s property relate to special, unique and
      extraordinary matters and that a violation of any of the terms of such covenants
      and obligations will cause Employer irreparable injury for which adequate
      remedies are not available at law. Therefore, Employee agrees that Employer
      shall be entitled to an injunction, restraining order or such other equitable
      relief (without the requirement to post bond) as a court of competent
      jurisdiction may deem necessary or appropriate to restrain Employee from
      committing any violation of the covenants and obligations referred to in this
      Article 9. These injunctive remedies are cumulative and in addition to any
      other
      rights and remedies Employer may have at law or in equity.

    

    ARTICLE
      10

    TERMINATION

    

    Termination
      by Employee

    

    10.1

    Employee
      may terminate this Agreement for Good Reason at any time upon 30 days’ written
      notice to Employer, provided the Good Reason has not been cured within such
      period of time.

    

    Good
      Reason

    

    10.2

    In
      this
      Agreement, “Good Reason” means, without Employee’s prior written consent, the
      occurrence of any of the following events, unless Employer shall have fully
      cured all grounds for such termination within thirty (30) days after Employee
      gives notice thereof:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              (i)

            	
              any
                reduction in her then-current
                Salary;

            

    

    

    
      	
               

            	
              (ii)

            	
              any
                material failure to timely grant, or timely honor, any equity or
                long-term
                incentive award;

            

    

    

    
      	
               

            	
              (iii)

            	
              failure
                to pay or provide required compensation and
                benefits;

            

    

    

    
      	
               

            	
              (iv)

            	
              any
                material diminution in her title or duties or the assignment to him
                of
                duties not customarily associated with Employee’s position as General
                Manager of Employer;

            

    

    

    
      	
               

            	
              (v)

            	
              any
                relocation of Employee’s office as assigned to him by Employer, to a
                location more than 25 miles from the assigned
                location;

            

    

    

    
      	
               

            	
              (vi)

            	
              the
                failure of Employer to obtain the assumption in writing of its obligation
                to perform the Employment Agreement by any successor to all or
                substantially all of the assets of Employer or upon a merger,
                consolidation, sale or similar transaction of Employer
                or;

            

    

    

    
      	 	(vii) 	the
              voluntary or involuntary dissolution of Employer, the filing of a petition
              in bankruptcy by Employer or upon an assignment for the benefit of
              creditors of the assets of Employer.

    

              

    The
      written notice given hereunder by Employee to Employer shall specify in
      reasonable detail the cause for termination, and such termination notice shall
      not be effective until thirty (30) days after Employer’s receipt of such notice,
      during which time Employer shall have the right to respond to Employee’s notice
      and cure the breach or other event giving rise to the termination.

    

    Termination
      by Employer

    

    10.3

    Employer
      may terminate its employment of Employee under this Agreement for cause at
      any
      time by written notice to Employee. For purposes of this Agreement, the term
      “cause” for termination by Employer shall be (a) a conviction of or plea of
      guilty or nolo contendere by Employee to a felony, or any crime
      involving fraud or embezzlement; (b) the refusal by Employee to perform her
      material duties and obligations hereunder; (c) Employee’s willful and
      intentional misconduct in the performance of her material duties and
      obligations; or (d) if Employee or any member of her family makes any personal
      profit arising out of or in connection with a transaction to which Employer
      is a
      party or with which it is associated without making disclosure to and obtaining
      the prior written consent of Employer. The written notice given hereunder by
      Employer to Employee shall specify in reasonable detail the cause for
      termination. In the case of a termination for the causes described in (a) and
      (d) above, such termination shall be effective upon receipt of the written
      notice. In the case of the causes described in (b) and (c) above, such
      termination notice shall not be effective until thirty (30) days after
      Employee’s receipt of such notice, during which time Employee shall have the
      right to respond to Employer’s notice and cure the breach or other event giving
      rise to the termination.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Severance

    

    10.4

    Upon
      a
      termination of this Agreement without Good Reason by Employee or with cause
      by
      Employer, Employer shall pay to Employee all accrued and unpaid compensation
      and
      expense reimbursement as of the date of such termination, subject to the
      provision of Section 6.2. Upon a termination of this Agreement with Good Reason
      by Employee or without cause by Employer, Employer shall pay to Employee all
      accrued and unpaid compensation and expense reimbursement as of the date of
      such
      termination, including any pro-rated bonus, and the “Severance
      Payment.”  The Severance Payment shall be payable in a lump sum,
      subject to Employer’s statutory and customary withholdings.  If the
      termination of Employee hereunder is by Employee with Good Reason, the Severance
      Payment shall be paid by Employer within five (5) business days of the
      expiration of any applicable cure period. If the termination of Employee
      hereunder is by Employer without cause, the Severance Payment shall be paid
      by
      Employer within five (5) business days of termination.  The “Severance
      Payment” shall equal the amount of the Salary payable to Employee under Section
      4.1 of this Agreement from the date of such termination until the end of the
      Term of this Agreement (prorated for any partial month).

    

    Termination
      Upon Death

    

    10.5

    If
      Employee dies during the Term of this Agreement, this Agreement shall terminate,
      except that Employee’s legal representatives shall be entitled to receive any
      earned but unpaid compensation or expense reimbursement, including any pro-rated
      bonus, due hereunder through the date of death.

    

    Termination
      Upon Disability

    

    10.6

    If,
      during the Term of this Agreement, Employee suffers and continues to suffer
      from
      a “Disability” (as defined below), then Employer may terminate this Agreement by
      delivering to Employee thirty (30) calendar days’ prior written notice of
      termination based on such Disability, setting forth with specificity the nature
      of such Disability and the determination of Disability by Employer. For the
      purposes of this Agreement, “Disability” means Employee’s inability, with
      reasonable accommodation, to substantially perform Employee’s duties, services
      and obligations under this Agreement due to physical or mental illness or other
      disability for a continuous, uninterrupted period of sixty (60) calendar days
      or
      ninety (90) days during any twelve month period.  Upon any such
      termination for Disability, Employee shall be entitled to receive any earned
      but
      unpaid compensation or expense reimbursement, including any pro-rated bonus,
      due
      hereunder through the date of termination.

    

    ARTICLE
      11

    PERSONNEL
      POLICIES, CONDITIONS, AND BENEFITS

    

    Except
      as
      otherwise provided herein, Employee’s employment shall be subject to the
      personnel policies and benefit plans which apply generally to Employer’s
      employees as the same may be interpreted, adopted, revised or deleted from
      time
      to time, during the Term of this Agreement, by Employer in its sole discretion.
      During the Term hereof, Employee shall be entitled to vacation during each
      year
      of the Term at the rate of three (3) weeks per year. Employee shall take such
      vacation at a time approved in advance by Employer, which approval will not
      be
      unreasonably withheld but will take into account the staffing requirements
      of
      Employer and the need for the timely performance of Employee's
      responsibilities.

    

    

    ARTICLE
      12

    BENEFICIARIES
      OF AGREEMENT

    

    This
      Agreement shall inure to the benefit of Employer and any affiliates, successors,
      assigns, parent corporations, subsidiaries, and/or purchasers of Employer as
      they now or shall exist while this Agreement is in effect.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      13

    GENERAL
      PROVISIONS

    

    No
      Waiver

    

    13.1

    No
      failure by either party to declare a default based on any breach by the other
      party of any obligation under this Agreement, nor failure of such party to
      act
      quickly with regard thereto, shall be considered to be a waiver of any such
      obligation, or of any future breach.

    

    Modification

    

    13.2

    No
      waiver
      or modification of this Agreement or of any covenant, condition, or limitation
      herein contained shall be valid unless in writing and duly executed by the
      parties to be charged therewith.

    

    Choice
      of Law/Jurisdiction

    

    13.3

    This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Washington, without regard to any conflict-of-laws principles. Employer
      and Employee hereby consent to personal jurisdiction before all courts in the
      State of Washington, and hereby acknowledge and agree that New Jersey is and
      shall be the most proper forum to bring a complaint before a court of
      law.

    

    Entire
      Agreement

    

    13.4

    This
      Agreement embodies the whole agreement between the parties hereto regarding
      the
      subject matter hereof and there are no inducements, promises, terms, conditions,
      or obligations made or entered into by Employer or Employee other than contained
      herein.

    

    Severability

    

    13.5

    All
      agreements and covenants contained herein are severable, and in the event any
      of
      them, with the exception of those contained in Articles 1 and 4 hereof, shall
      be
      held to be invalid by any competent court, this Agreement shall be interpreted
      as if such invalid agreements or covenants were not contained
      herein.

    

    Headings

    

    13.6

    The
      headings contained herein are for the convenience of reference and are not
      to be
      used in interpreting this Agreement.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Independent
      Legal Advice

    

    13.7

    Employer
      has obtained legal advice concerning this Agreement and has requested that
      Employee obtain independent legal advice with respect to same before executing
      this Agreement.  Employee, in executing this Agreement, represents and
      warranties to Employer that she has been so advised to obtain independent legal
      advice, and that prior to the execution of this Agreement she has so obtained
      independent legal advice, or has, in her discretion, knowingly and willingly
      elected not to do so.

    

    No
      Assignment

    

    13.8

    Employee
      may not assign, pledge or encumber her interest in this Agreement nor assign
      any
      of her rights or duties under this Agreement without the prior written consent
      of Employer.

    

    Notices

    

    13.9

    All
      notices and other communications under this Agreement shall be in writing and
      shall be deemed given when delivered personally, mailed by certified mail,
      return receipt requested, or via recognized overnight courier service with
      all
      charges prepaid or billed to the account of the sender to the parties (and
      shall
      also be transmitted by facsimile to the Persons receiving copies thereof) at
      the
      following addresses (or to such other address as a party may have specified
      by
      notice given to the other party pursuant to this provision):

    

    
      	
              (a)  

            	
              Company:
                
                Empire
                  Electric

                4081
                  Seaport Blvd.

                West
                  Sacramento, CA 95691

                Attn:  Mr.
                  Harold Gomes

                Phone:  (916)
                  373-9153

                Facsimile:  (916)
                  373-0964

              

            

    

    

    

    
      	
              (b)  

            	
              Employee:
                
                Judy
                  L. Gomes

                Empire
                  Electric

                4081
                  Seaport Blvd.

                West
                  Sacramento, CA 95691

                Phone:  (916)
                  373-9153

                Facsimile:  (916)
                  373-0964

              

            

    

    

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF the parties have executed this Employment Agreement
      effective as of the day and year first above written.

    

    
      	 	 	 	GOMES
              AND GOMES, INC. dba EMPIRE
              ELECTRIC	 
	 	 	 	 	 
	
              /s/HAROLD
                L.
                GOMES

            	 	 	
              /s/
                JUDY L.
                GOMES

            	 
	
              Harold
                L.
                Gomes

            	 	 	
              Judy
                L.  Gomes

            	 
	
              President

            	 	 	
               

            	 

    

     

    
    

    

    

    9Exhibit 10.5

EMPLOYMENT AGREEMENT

          This
Agreement (“Agreement”) is made effective as of the _______ day of
_______________, 2007, by and among KAISER FEDERAL BANK (the “Bank”), a
federally chartered stock savings bank, with its principal administrative
office at 1359 N. Grand Ave., Covina, California 91724 and KAY HOVELAND
(“Executive”). Any reference to the “Company” herein shall mean KAISER FEDERAL
FINANCIAL GROUP, INC., the holding company of the Bank. The Company is a party
to this Agreement for the sole purpose of guaranteeing the payments required
hereunder, except as otherwise provided herein.

          WHEREAS,
Executive is currently employed as the President and Chief Executive Officer of
the Bank; and 

          WHEREAS,
the Bank desires to assure itself of the continued services of Executive
pursuant to the terms of this Agreement.

          NOW,
THEREFORE, in consideration of the mutual covenants
herein contained, and upon the other terms and conditions hereinafter provided,
the parties hereby agree as follows:

	
 

	
 

	
1.

	
POSITION AND RESPONSIBILITIES

          During
the period of her employment hereunder, Executive agrees to serve as President
and Chief Executive Officer of the Bank. During said period, Executive also
agrees to serve, if elected, as an officer and director of any subsidiary or
affiliate of the Bank or the Company.

	
 

	
 

	
2.

	
TERMS AND DUTIES

          (a)
The term of this Agreement and the period of Executive’s employment hereunder
shall begin as of the date first above written and shall continue for
thirty-six (36) full calendar months thereafter. Commencing July 1, 2008 and
continuing on the first day of July of each year thereafter (the “Anniversary
Date”), this Agreement shall renew for an additional year such that the remaining
term shall be thirty-six (36) months, provided, however, that in order for
the Agreement to renew, the disinterested members of the Board of Directors of
the Bank (the “Board”) must take the following actions prior to each
non-renewal notice period (as described in the next sentence): (i) at least
sixty (60) days prior to the Anniversary Date, conduct a comprehensive
performance evaluation and review of Executive for purposes of determining
whether to extend the Agreement; and (ii) affirmatively approve the renewal or
non-renewal of the Agreement, which decision shall be included in the minutes
of the Board’s meeting. If the decision of such disinterested members of the
Board is not to renew the Agreement, then the Board shall provide the Executive
with a written notice of non-renewal (“Non-Renewal Notice”) at least thirty
(30) days and not more than sixty (60) days prior to any Anniversary Date ,
such that this Agreement shall terminate at the end of thirty-six (36)
months following such Anniversary Date. 

          (b)
During the period of her employment hereunder, except for periods of
absence occasioned by illness, reasonable vacation periods, and reasonable
leaves of absence, Executive

shall
faithfully perform her duties hereunder including activities and services
related to the organization, operation and management of the Bank.

	
 

	
 

	
3.

	
COMPENSATION AND REIMBURSEMENT

          (a)
The compensation specified under this Agreement shall constitute the salary and
benefits paid for the duties described in Section 2(b). The Bank shall pay
Executive as compensation a salary of not less than $350,000 per year (“Base
Salary”). Such Base Salary shall be payable in accordance with the customary
payroll practices of the Bank. During the period of this Agreement, Executive’s
Base Salary shall be reviewed at least annually; the first such review will be
made no later than July 1 of each year during the term of this Agreement and
shall be effective from that date through the end of the next succeeding June.
Such review shall be conducted by a Committee designated by the Board, and the
Board may increase, but not decrease, Executive’s Base Salary (any increase in
Base Salary shall become the “Base Salary” for purposes of this Agreement). In
addition to the Base Salary provided in this Section 3(a), the Bank shall
provide Executive at no cost to Executive with all such other benefits as are
provided uniformly to permanent full-time employees of the Bank.

          (b)
The Bank will provide Executive with employee benefit plans, arrangements and
perquisites substantially equivalent to those in which Executive was
participating or otherwise deriving benefit from immediately prior to the
beginning of the term of this Agreement, and the Bank will not, without
Executive’s prior written consent, make any changes in such plans, arrangements
or perquisites which would adversely affect Executive’s rights or benefits
thereunder, except for amendments that are generally applicable to all
employees. Without limiting the generality of the foregoing provisions of this
Section 3(b), Executive will be entitled to participate in or receive benefits
under any employee benefit plans including but not limited to, retirement
plans, supplemental retirement plans, pension plans, profit-sharing plans,
health-and-accident plans, medical coverage or any other employee benefit plan
or arrangement made available by the Bank in the future to its senior
executives and key management employees, subject to and on a basis consistent
with the terms, conditions and overall administration of such plans and
arrangements. Executive will be entitled to incentive compensation and bonuses
as provided in any plan of the Bank in which Executive is eligible to
participate (and she shall be entitled to a pro rata distribution under any
incentive compensation or bonus plan as to any year in which a termination of
employment occurs, other than Termination for Cause). Nothing paid to Executive
under any such plan or arrangement will be deemed to be in lieu of other compensation
to which Executive is entitled under this Agreement.

          (c)
In addition to the Base Salary provided for by Section 3(a), the Bank shall pay
or reimburse Executive for all reasonable travel and other reasonable expenses
incurred by Executive in performing her obligations under this Agreement and
may provide such additional compensation in such form and such amounts as the
Board may from time to time determine.

	
 

	
 

	
4.

	
OUTSIDE ACTIVITIES

          Executive
may serve as a member of the board of directors of business, community and
charitable organizations subject to the approval of the Board, provided that in
each case such service shall not materially interfere with the performance of
her duties under this Agreement or

2

present any
conflict of interest. Such service to and participation in outside
organizations shall be presumed for these purposes to be for the benefit of the
Bank, and the Bank shall reimburse Executive her reasonable expenses associated
therewith.

	
 

	
 

	
5.

	
WORKING FACILITIES AND EXPENSES

          Executive’s
principal place of employment shall be at the Bank’s principal executive
offices. The Bank shall provide Executive, at her principal place of
employment, with a private office, stenographic services and other support
services and facilities suitable to her position with the Bank and necessary or
appropriate in connection with the performance of her duties under this
Agreement. The Bank shall reimburse Executive for her ordinary and necessary
business expenses incurred in connection with the performance of her duties
under this Agreement, including, without limitation, fees for memberships in
such clubs and organizations that Executive and the Board mutually agree are
necessary and appropriate to further the business of the Bank, and travel and
reasonable entertainment expenses. Reimbursement of such expenses shall be made
upon presentation to the Bank of an itemized account of the expenses in such
form as the Bank may reasonably require. 

	
 

	
 

	
6.

	
PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION

          (a)
The provisions of this Section 6 shall apply upon the occurrence of an Event of
Termination (as herein defined) during Executive’s term of employment under
this Agreement. As used in this Agreement, an “Event of Termination” shall mean
and include any one or more of the following:

          
(i)     the involuntary termination by the Bank of
Executive’s full-time employment hereunder for any reason other than (A)
Retirement, death or Disability, as defined in Section 7 below, or (B)
Termination for Cause as defined in Section 8 hereof; or

          (ii)     Executive’s
voluntary resignation from the Bank’s employ, upon

	
 

	
 

	
 

	
          (A)     a
  material diminution in Executive’s base compensation;

	
 

	
 

	
 

	
          (B)     a
  material diminution in Executive’s authority duties or responsibilities;

	
 

	
 

	
 

	
          (C)     a
  requirement that Executive must report to a corporate officer or employee
  instead of reporting directly to the Board;

	
 

	
 

	
 

	
          (D)     a
  material diminution in the budget over which Executive retains authority;

	
 

	
 

	
 

	
          (E)     a
  change in the geographic location at which Executive must perform her duties
  that is more than twenty-five (25) miles from the location of Executive’s
  principal workplace on the date of this Agreement; or

	
 

	
 

	
 

	
          (F)     any
  other action or inaction that constitutes a material breach by the Bank of
  this Agreement.

3

Upon the
occurrence of any event described in clauses (ii) (A), (B), (C), (D), (E) or
(F), above, Executive shall have the right to elect to terminate her employment
under this Agreement by resignation upon sixty (60) days prior written notice
given within a reasonable period of time not to exceed ninety (90) days after
the initial event giving rise to said right to elect; provided, however that
the Bank shall have at least thirty (30) days to cure such condition and
provided that Executive actually terminates employment within two years after
the initial occurrence of such event. Notwithstanding the preceding sentence,
in the event of a continuing breach of this Agreement by the Bank, Executive,
after giving due notice within the prescribed time frame of an initial event
specified above, shall not waive any of her rights solely under this Agreement
and this Section 6 by virtue of the fact that Executive has submitted her
resignation but has remained in the employment of the Bank and is engaged in
good faith discussions to resolve any occurrence of an event described in
clauses (A), (B), (C), (D), (E) or (F) above. 

          (iii)     (A)
Executive’s involuntary termination by the Bank (other than Termination for
Cause) on the effective date of, or at any time following, a Change in Control,
or (B) Executive’s resignation from employment with the Bank or the Company (or
any successor thereto) following a Change in Control as a result of any event
described in Section 6(a)(ii)(A), (B), (C), (D), (E) or (F) above. For these
purposes, a Change in Control of the Bank or the Company shall mean a change in
control of a nature that: (i) would be required to be reported in response to
Item 5.01 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
Company within the meaning of the Home Owners’ Loan Act, as amended, and
applicable rules and regulations promulgated thereunder (collectively, the
“HOLA”) as in effect at the time of the Change in Control; 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
Company representing 25% or more of the combined voting power of Company’s
outstanding securities, except for any securities purchased by the Bank’s
employee stock ownership plan or trust; or (b) individuals who constitute the
Board 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 whose nomination for election by the
Company’s stockholders was approved by the same Nominating Committee serving
under an Incumbent Board, shall be, for purposes of this clause (b), considered
as though he or she 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 Company or similar transaction in which the Bank or
Company is not the surviving institution occurs or is effected; or (d) a proxy
statement soliciting proxies from stockholders of the Company, by someone other
than the current management of the Company is distributed, seeking stockholder
approval of a plan of reorganization, merger or consolidation of the Company or
similar transaction with one or more corporations as a result of which the
outstanding shares of the class of securities then subject to the plan are
exchanged for or converted into cash or property or securities not issued by
the Company; or (e) a tender offer is made for 25% or more of the voting
securities of the Company and the shareholders owning beneficially or of record
25% or more of the outstanding securities of the Company have

4

tendered or offered
to sell their shares pursuant to such tender offer and such tendered shares
have been accepted by the tender offeror. 

          (b)
Upon the occurrence of an Event of Termination within thirty (30) days after
the Date of Termination, as defined in Section 9(b), the Bank shall pay
Executive, or, in the event of her subsequent death, her beneficiary or
beneficiaries, or her estate, as the case may be, as severance pay or
liquidated damages, or both, a sum equal to (i) the Executive’s earned but unpaid
Base Salary and benefits, plus (ii) three (3) times the sum of (A) Base Salary
and (B) the highest rate of bonus awarded to Executive during the prior three
(3) years; provided, however, that such Event of Termination must qualify as a
“Separation from Service” as defined in Internal Revenue Code (“Code”) Section
409A and the regulations thereunder. Notwithstanding the foregoing, to the
extent Executive is a “Specified Employee” as defined in Code Section 409A, and
such earlier payment would trigger penalties under Code Section 409A, then such
payment shall be made on the first day of the seventh month following
Executive’s Separation from Service. Such payment shall not be reduced in the
event Executive obtains other employment following Separation from Service.

          (c)
Upon the occurrence of an Event of Termination, the Bank will cause to be
continued, at the Bank’s expense, life insurance coverage and non-taxable
medical and dental insurance coverage, if any, substantially identical to the
coverage maintained by the Bank for Executive prior to her termination,
provided, however, such medical coverage shall cease upon the earlier of (i)
thirty-six (36) months from the Date of Termination or (ii) the date Executive
becomes eligible for Medicare coverage, provided further, that if Executive is
covered by family coverage or coverage for herself and a spouse, then the
Executive’s family or spouse shall continue to be covered for the remainder of
the thirty-six (36) month period or, in the case of the spouse, until the
spouse becomes eligible for Medicare coverage or obtains healthcare coverage
elsewhere, whichever period is less.

          (d)
Within thirty (30) days of Executive’s Separation from Service in connection
with an Event of Termination (provided, however, that, to the extent Executive
is a “Specified Employee” as defined in Code Section 409A, and such earlier
payment would trigger penalties under Code Section 409A, then such payment
shall be made on the first day of the seventh month following Executive’s
Separation from Service), the Bank shall pay Executive a lump sum equal to the
present value of the Bank’s contributions that would have been made on her
behalf under each of the Bank’s 401(k) Plan and Employee Stock Ownership Plan
(and any other defined contribution plan maintained by the Bank in which
Executive participates) as if she had continued working for the Bank for a
thirty-six (36) month period following her Separation from Service earning her
actual final rate of Base Salary as of the Date of Termination and as if she
had made the maximum amount of employee contributions permitted, if any, under
such plan or plans. Such present values are to be determined using a discount
rate equal to the short-term Internal Revenue Service’s “applicable federal
rate” for the month before the date of the Separation from Service, compounded
annually.

          (e)
Notwithstanding anything to the contrary herein, Executive’s resignation for
any reason other than those set forth in clauses 6(a)(ii)(A), (B), (C), (D),(E)
or (F) shall not entitle Executive to any payments under Section 6 of this
agreement.

5

	
 

	
 

	
7.

	
TERMINATION UPON RETIREMENT, DISABILITY OR DEATH

          For
purposes of this Agreement, termination by the Bank of Executive’s employment
based on “Retirement” shall mean termination of Executive’s employment by the Board
upon Executive’s attainment of age 62, or such later date as determined by the
Board. Upon termination of Executive’s employment because of Retirement,
Executive shall be entitled to all benefits under any retirement plan of the
Bank and other plans to which Executive is a party, but Executive shall not be
entitled to the Termination Benefits specified in Section 6. 

          In
the event Executive is unable to perform her duties under this Agreement on a
full-time basis for a period of six (6) consecutive months by reason of
“Disability” within the meaning of Code Section 409A, the Bank may terminate
this Agreement, provided that the Bank shall continue to be obligated to pay Executive
her Base Salary at the rate in effect at the Date of Termination for the
remaining term of the Agreement, or one year, whichever is the longer period of
time, and provided further that any amounts actually paid to Executive pursuant
to any disability insurance or other similar such program which the Bank has
provided or may provide on behalf of its employees or pursuant to any workman’s
or Social Security disability program shall reduce the Base Salary to be paid
to Executive pursuant to this paragraph. 

          In
the event of Executive’s death during the term of the Agreement, her estate,
legal representatives or named beneficiaries (as directed by Executive in
writing) shall be paid Executive’s Base Salary at the rate in effect at the
time Executive’s death for a period of one (1) year from the date of
Executive’s death, and the Bank will continue to provide non-taxable medical
and dental and other benefits normally provided for an Executive’s family for
one (1) year after Executive’s death.

	
 

	
 

	
8.

	
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, or regulation (other than minor traffic
violations or similar offenses) or final cease-and-desist order, or material
breach of any provision of this Agreement. In determining incompetence, the
acts or omissions shall be measured against standards generally prevailing in
the savings institutions industry. Executive shall not have the right to
receive Base Salary or other compensation for any period after Termination for
Cause. Any stock options or other incentives granted to Executive under any
plan of the Bank, the Company or any subsidiary or affiliate thereof (whether
vested or unvested), shall become null and void effective upon Executive’s
receipt of Notice of Termination for Cause pursuant to Section 9 hereof. 

	
 

	
 

	
9.

	
NOTICE

          (a)
Any purported termination by the Bank or by Executive shall be communicated by
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 reasonable detail the facts and circumstances

6

claimed to
provide a basis for termination of Executive’s employment under the provision
so indicated.

          (b)
“Date of Termination” shall mean (A) if Executive’s employment is terminated
for Disability, thirty (30) days after a Notice of Termination is given
(provided that she shall not have returned to the performance of her duties on
a full-time basis during such thirty (30) day period), and (B) if her
employment is terminated for any other reason, the date specified in the Notice
of Termination.

          (c)
If the party receiving a Notice of Termination desires to dispute or contest
the basis or reasons for termination, the party receiving the Notice of
Termination must notify the other party within thirty (30) days after receiving
the Notice of Termination that such a dispute exists, and shall pursue the
resolution of such dispute in good faith and with reasonable diligence pursuant
to Section 20 of this Agreement. During the pendency of any such dispute,
neither the Company nor the Bank shall be obligated to pay Executive Base
Salary or other compensation beyond the Date of Termination. Any amounts paid
to Executive upon resolution of such dispute under this Section shall be offset
against or reduce any other amounts due under this Agreement.

	
 

	
 

	
10.

	
POST-TERMINATION OBLIGATIONS

          (a)
All payments and benefits to Executive under this Agreement shall be subject to
Executive’s compliance with paragraph (b) of this Section and Section 11 during
the term of this Agreement and for one (1) full year after the expiration or
termination hereof.

          (b)
Executive shall, upon reasonable notice, furnish such information and
assistance to the Bank as may reasonably be required by the Bank in connection
with any litigation in which it or any of its subsidiaries or affiliates is, or
may become, a party.

	
 

	
 

	
11.

	
NON-COMPETITION

          (a)
Upon any termination of Executive’s employment hereunder, other than a
termination, (whether voluntary or involuntary) in connection with a Change in
Control, as a result of which the Bank is paying Executive benefits under
Section 6 of this Agreement, Executive agrees not to compete with the Bank
and/or the Company for a period of one (1) year following such termination
within twenty-five (25) miles of any existing branch of the Bank or any
subsidiary of the Company or within twenty-five (25) miles of any office for
which the Bank, the Company or a Bank subsidiary of the Company has filed an
application for regulatory approval to establish an office, determined as of
the effective date of such termination, except as agreed to pursuant to a
resolution duly adopted by the Board. Executive agrees that during such period
and within said area, cities, towns and counties, Executive shall not work for
or advise, consult or otherwise serve with, directly or indirectly, any entity
whose business materially competes with the depository, lending or other
business activities of the Bank and/or the Company. The parties hereto,
recognizing that irreparable injury will result to the Bank and/or the Company,
its business and property in the event of Executive’s breach of this Subsection
11(a) agree that in the event of any such breach by Executive, the Bank and/or
the Company will be entitled, in addition to any other remedies and damages
available, to an injunction to restrain the violation hereof by Executive,
Executive’s partners, agents, servants,

7

employers,
employees and all persons acting for or with Executive. Executive represents
and admits that Executive’s experience and capabilities are such that Executive
can obtain employment in a business engaged in other lines and/or of a
different nature than the Bank and/or the Company, and that the enforcement of
a remedy by way of injunction will not prevent Executive from earning a
livelihood. Nothing herein will be construed as prohibiting the Bank and/or the
Company from pursuing any other remedies available to the Bank and/or the
Company for such breach or threatened breach, including the recovery of damages
from Executive. 

          (b)
Executive recognizes and acknowledges that the knowledge of the business
activities and plans for business activities of the Bank and affiliates
thereof, as it may exist from time to time, is a valuable, special and unique
asset of the business of the Bank. Executive will not, during or after the term
of her employment, disclose any knowledge of the past, present, planned or
considered business activities of the Bank or affiliates thereof to any person,
firm, corporation, or other entity for any reason or purpose whatsoever (except
for such disclosure as may be required to be provided to any federal banking
agency with jurisdiction over the Bank or Executive). Notwithstanding the
foregoing, Executive may disclose any knowledge of banking, financial and/or
economic principles, concepts or ideas which are not solely and exclusively
derived from the business plans and activities of the Bank, and Executive may
disclose any information regarding the Bank or the Company which is otherwise
publicly available. In the event of a breach or threatened breach by Executive
of the provisions of this Section, the Bank will be entitled to an injunction
restraining Executive from disclosing, in whole or in part, the knowledge of
the past, present, planned or considered business activities of the Bank or
affiliates thereof, or from rendering any services to any person, firm,
corporation, other entity to whom such knowledge, in whole or in part, has been
disclosed or is threatened to be disclosed. Nothing herein will be construed as
prohibiting the Bank from pursuing any other remedies available to the Bank for
such breach or threatened breach, including the recovery of damages from
Executive.

	
 

	
 

	
12.

	
SOURCE OF PAYMENTS

          All
payments provided in this Agreement shall be timely paid in cash or check from
the general funds of the Bank. The Company, however, guarantees 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 Company.

	
 

	
 

	
13.

	
NO EFFECT ON EMPLOYEE BENEFITS PLANS OR PROGRAMS

          The
Board may terminate Executive’s employment at any time, but, any termination of
Executive’s employment, other than Termination for Cause shall have no effect
on or prejudice the vested rights of Executive under the Company’s or the
Bank’s qualified or non-qualified retirement, pension, savings, thrift,
profit-sharing or stock bonus plans, group life, health (including
hospitalization, medical and major medical), dental, accident and long term
disability insurance plans or other employee benefit plans or programs, or
compensation plans or programs in which Executive was a participant. Executive
shall not have the right to receive any Base

8

Salary or
other compensation for any period after Termination for Cause as defined in
Section 8, except as otherwise required by applicable law.

	
 

	
 

	
14.

	
REQUIRED REGULATORY PROVISIONS

          (a)
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) (12 USC §1818(e)(3)) or 8(g)(1) (12 USC §1818(g)(1)) of
the Federal Deposit Insurance Act (“FDIA”), as amended by the Financial
Institutions Reform, Recovery and Enforcement Act of 1989, the Bank’s obligations
under this Agreement 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 of the Base Salary
or other compensation withheld while its contract obligations were suspended
and (ii) reinstate (in whole or in part) any of its obligations which were
suspended.

          (b)
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) (12
U.S.C. §1818(e)(4)) or 8(g)(1) (12 U.S.C. §1818(g)(1)) of the FDIA, all
obligations of the Bank under this Agreement shall terminate as of the
effective date of the order, but vested rights of the contracting parties shall
not be affected.

          (c)
If the Bank is in default as defined in Section 3(x)(1) (12 U.S.C. §1813(x)(1))
of the FDIA, all obligations under this Agreement shall terminate as of the
date of default, but this paragraph shall not affect any vested rights of the
contracting parties.

          (d)
All obligations under this Agreement shall be terminated, except to the extent
determined that continuation of this Agreement is necessary for the continued
operation of the Bank, (i) by the Director of OTS or a designee, at the time
the FDIC enters into an agreement to provide assistance to or on behalf of the
Bank under the authority contained in Section 13(c) (12 U.S.C. §1823(c)) of the
FDIA; or (ii) by the Director of OTS or a designee at the time the Director of
OTS or a designee approves a supervisory merger to resolve problems related to
operations of the Bank or when the Bank is determined by the Director of OTS or
a designee 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.

          (e)
Notwithstanding anything herein contained to the contrary, any payments to
Executive by the Company, whether pursuant to this Agreement or otherwise, are subject
to and conditioned upon their compliance with Section 18(k) of the FDIA, 12
U.S.C. § 1828(k), and the regulations promulgated thereunder in 12 C.F.R. Part
359.

	
 

	
 

	
15.

	
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.

9

          (b)
This Agreement shall be binding upon, and inure to the benefit of, Executive,
the Bank and the Company and their respective successors and assigns.

	
 

	
 

	
16.

	
ENTIRE AGREEMENT; MODIFICATION AND WAIVER

          (a)
This instrument contains the entire agreement of the parties relating to the
subject matter hereof, and supercedes in its entirety any and all prior
agreements, understandings or representations relating to the subject matter
hereof, except that the parties acknowledge that this Agreement shall not
affect any of the rights and obligations of the parties under any agreement or
plan entered into with or by the Bank or the Company pursuant to which the
Executive may receive Base Salary or other compensation except as set forth in
Section 12 hereof. No modifications of this Agreement shall be valid unless
made in writing and signed by the parties hereto. 

          (b)
This Agreement may not be modified or amended except by an instrument in
writing signed by the parties hereto.

          (c)
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 as to any act other than that specifically
waived.

	
 

	
 

	
17.

	
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.

	
 

	
 

	
18.

	
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.

	
 

	
 

	
19.

	
GOVERNING LAW

          This
Agreement shall be governed by the laws of the State of California but only to
the extent not superseded by federal law.

	
 

	
 

	
20.

	
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, one of whom shall be selected by the Bank, one of whom shall be
selected by Executive and the third of whom shall be selected by the other two
arbitrators. The panel shall sit in a location within fifty (50)

10

miles from the
location of the Bank, in accordance with the rules of the Judicial Mediation
and Arbitration Systems (JAMS) then in effect. Judgment may be entered on the
arbitrators award in any court having jurisdiction; provided, however, that
Executive shall be entitled to seek specific performance of her right to be
paid Base Salary and other compensation until the Date of Termination during
the pendency of any dispute or controversy arising under or in connection with
this Agreement.

	
 

	
 

	
21.

	
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, provided that the dispute or interpretation has been
settled by Executive and the Bank or resolved in Executive’s favor and provided
that such payment or reimbursement shall be made not later than two and
one-half (2 1⁄2) months after the end of the taxable year in which such fees were
incurred.

	
 

	
 

	
22.

	
INDEMNIFICATION

          The
Bank shall provide Executive (including her heirs, executors and
administrators) with coverage under a standard directors and officers liability
insurance policy at its expense. Subject to 12 C.F.R. §545.121, the Bank or the
Company, shall indemnify Executive (and her heirs, executors and
administrators) to the fullest extent permitted under applicable law against
all expenses and liabilities reasonably incurred by her in connection with or arising
out of any action, suit or proceeding in which she may be involved by reason of
having been a director or officer of the Bank or the Company (whether or not
she continues to be a director or officer at the time of incurring such
expenses or liabilities), such expenses and liabilities to include, but not be
limited to, judgments, court costs and attorneys fees and the cost of
reasonable settlements (such settlements must be approved by the Board of
Directors of the Bank or the Company). If such action, suit or proceeding is
brought against Executive in her capacity as an officer or director of the
Bank, however, such indemnification shall not extend to matters as to which
Executive is finally adjudged to be liable for willful misconduct in the performance
of her duties.

	
 

	
 

	
23.

	
SUCCESSORS AND ASSIGNS

          The
Bank and/or the Company 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 or the Company, expressly
and unconditionally to assume and agree to perform the Bank’s and the Company’s
obligations under this Agreement, in the same manner and to the same extent
that the Bank and/or the Company would be required to perform if no such
succession or assignment had taken place.

[Signature Page Follows]

11

SIGNATURES

          IN
WITNESS WHEREOF, the Bank and the Company have caused this Agreement to be
executed and their seals to be affixed hereunto by their duly authorized
officers, and Executive has signed this Agreement, as of the day and date first
above written.

	
 

	
 

	
 

	
 

	
ATTEST:

	
KAISER FEDERAL BANK

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	

	
 

	

	
 

	
 

	
Name

	
 

	
 

	
 

	
Title

	
 

	
 

	
 

	
 

	
 

	
ATTEST:

	
KAISER FEDERAL FINANCIAL GROUP, INC.

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	

	
 

	

	
 

	
 

	
Name

	
 

	
 

	
 

	
Title

	
 

	
 

	
 

	
 

	
 

	
WITNESS:

	
EXECUTIVE

	
 

	
 

	
 

	
 

	

	

	
 

	
Kay Hoveland

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}]]