Document:

EXHIBIT 10.9

 

 
  

					
	Correspondent Banking	 	 Mail Code IL1-1110
 120 South LaSalle Street

Chicago, IL 60603
	 	 312 661 5000
 312 661 9511

  
 October 27, 2004 
  
 Mr. F. Morgan Gasior 
 Chairman and Chief Executive Officer 
 BankFinancial MHC, Inc. 
 BankFinancial Corporation 
 15 W 060 North Frontage Road 
 Burr Ridge, Illinois 60527 
  
 RE:
Commitment to Amend BankFinancial’s Loan Agreement 
  
 Dear Mr.
Gasior: 
  
 You have provided us with a draft prospectus (the
“Prospectus”) outlining a proposed mutual to stock conversion (the “Conversion”) pursuant to which BankFinancial Corporation, a Maryland corporation (“BFC Maryland”) will issue shares of stock to the public, and will
become the successor to BankFinancial MHC, Inc. (“Parent”) and BankFinancial Corporation (“Borrower”), and also will become the sole stockholder of the Bank. 
  
 This letter will constitute the consent of Bank One, NA (“Lender”) to the Conversion and the corporate
reorganization and other steps described in the Prospectus that will be necessary to facilitate and effect the Conversion, and shall evidence Lender’s commitment (the “Commitment”) to amend the Loan Agreement and the other Financing
Agreements in the following respects: 
  

	1.	Amend the definition “Termination Date” for the Term Loan to substitute June 30, 2005 for December 31, 2004. 

  

	2.	Amend the Loan Agreement and the other Financing Agreements to provide that unpaid principal balance plus all accrued but unpaid interest hereunder and any other amounts owing with
respect to the Revolving Note shall be due and payable on December 31, 2005, or such earlier date on which such amount shall become due and payable on account of acceleration by the Lender pursuant to the Loan Agreement and other Financing
Agreements. 

  

	3.	Amend the definition of “Borrower” as necessary to reflect that, upon the consummation of the Conversion, the separate corporate existence of Parent and Borrower will
cease to exist, and that BFC Maryland will become the sole stockholder of the Bank and sole obligor under the Loan Agreement and the other Financing Arrangements. 

  

	4.	Amend the warranties, representations, covenants and other terms and conditions of the Loan Agreement and the other Financing Agreements as necessary to reflect the new corporate
structure and the change in the ownership of the stock of the Bank that will result from the Conversion (all as described in the Prospectus). 

  

	5.	Amend the warranties, representations, covenants and other terms and conditions of the Loan Agreement and the other Financing Agreements as necessary to provide that the Change of
Control and the change in the ownership of the stock of the Bank that will result from the Conversion (all as described in the Prospectus) shall not constitute Events of Default or Defaults. 

 Lender reserves the right to withdraw this Commitment prior to closing as follows: 
  

	 	A.	If an Event of Default or Default occurs under the Loan Agreement or other Financing Agreements. 

  

	 	B.	If Lender is advised prior to the closing of this transaction of any law or regulation which prevents or prohibits Lender from making any credit extensions in accordance with the
terms and conditions contained herein or other conditions which, in the judgment of Lender, have a material adverse effect upon Lender’s ability to provide the Facilities. 

  

	 	C.	This Commitment presumes the full disclosure and accuracy of all pertinent information submitted by the Borrowers to Lender and may be canceled by Lender if any such information is
false, incomplete, or inaccurate in any material respect or if the conditions represented or indicated to exist shall change in any material respect. 

  

	 	D.	All amendments to the Loan Agreement and other Financing Agreements must be satisfactory to Lender in form and content satisfactory. 

  
 If you have any question regarding this Commitment, please feel free to
contact me. 
  
 Bank One, NA 
  

							
	By:	  	 \s\ John L. Spalding

	 	By:	  	 \s\ Gregory S. Pike

	Name:	  	John L. Spalding	 	Name:	  	Gregory S. Pike
	Title:	  	First Vice President	 	Title:	  	Assistant Vice President
		
	Accepted:	 	 
		
	BankFinancial, MHC, Inc.	 	BankFinancial Corporation
				
	By:	  	 \s\ F. Morgan Gasior

	 	By:	  	 \s\ F. Morgan Gasior

	Name:	  	F. Morgan Gasior	 	Name:	  	F. Morgan Gasior
	Title:	  	Chairman and CEO	 	Title:	  	Chairman and CEO

  

 2EXHIBIT 10.10

 BANKFINANCIAL CORPORATION 
 EMPLOYMENT AGREEMENT 
  
 THIS AGREEMENT (“Agreement”) is made effective as of                     ,
200     (the “Effective Date”), by and between BankFinancial Corporation (the “Company”), a Maryland corporation having its principal office at 15 W 060 North Frontage Road, Burr Ridge,
and F. Morgan Gasior (“Executive”). 
  
 WHEREAS, the Board of Directors of the Company (the “Board”) considers the continued availability of Executive’s services to be important to the successful management and conduct of the Company’s business, and
wishes to assure the continued availability of Executive’s full-time services to the Company as provided in this Agreement; and 
  
 WHEREAS, Executive is willing to continue to serve in the employ of the Company on a full-time basis on the terms and conditions set forth herein.

  
 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. 
  
 (a) Position. During the period of employment established by Section 2(a) of this Agreement (the “Employment Period”): (i)
Executive agrees to serve, if elected or appointed to serve, as a director and the Chairman, President and Chief Executive Officer of the Company and BankFinancial, F.S.B. (the “Bank”), (ii) the Board agrees to appoint Executive as the
President and Chief Executive Officer of the Company, and to cause and permit him to hold such positions; and (iii) the Board agrees to appoint Executive as the Chairman of the Board of the Company, and to cause and permit him to hold such position
at all times during which Executive is a director of the Company. 
  
 (b) Duties and Responsibilities. Executive shall have and exercise the same duties, responsibilities, privileges, powers and authority as Executive held and exercised on the Effective Date as the
Chairman, President and Chief Executive Officer of the Company, and such additional duties, responsibilities, privileges, powers and authority commensurate with such positions as the Board may hereafter assign to Executive. Executive shall report
only to the Board and shall not report or be subordinate to any other officers or employees of the Company. 
  
 (c) Faithful Performance. Except for periods of paid time off taken in accordance with Section 3(f) hereof or following a Disability
Determination made in accordance with Section 4(b) hereof, Executive shall devote substantially all of his business time, attention, skill and efforts during the Employment Period to the faithful performance of his duties hereunder, and shall not
engage in any business or activity that interferes with the performance of such duties or conflicts with the business, affairs or interests of the Bank or the Company; provided that, notwithstanding the foregoing, Executive may: (i) perform his
obligations under any Employment Agreement between the Bank and Executive (the “Bank Agreement”); (ii) hold directorships, offices or other positions in one or more other organizations to the extent permitted by the Company’s
Professional Responsibility Policy, as amended from time to time, or as otherwise approved by the Board; and (iii) engage in the occasional practice of law for personal 

 clients provided that the same does not interfere with Executive’s obligation to devote substantially all of his
business time, attention, skill and efforts to the faithful performance of his duties under this Agreement. 
  
 2. TERM OF EMPLOYMENT. 
  
 (a) Term. The Employment Period shall commence as of the Effective Date and shall thereafter continue for a period of thirty-six (36) months (as adjusted on
                    , 200    , as provided below) unless extended as provided herein. On or before
                    , 200    , and on or before
             of each succeeding calendar year during the Employment Period (each an “Anniversary Date”), the Board, subject to the review process set forth in Section 2(b) hereof,
may extend the Employment Period for an additional one (1) year so that the remaining term of the Employment Period shall then be thirty-six (36) months. All references herein to the Employment Period shall mean, for all purposes of this Agreement,
Executive’s Employment Period as initially established by, and as may subsequently be extended pursuant to, this Section 2(a). 
  
 (b) Annual Review. The Board shall review this Agreement and the compensation arrangements provided for herein on or before
                    , 200    , and at least annually thereafter on or before each subsequent Anniversary Date. As
part of each annual review, the Board shall determine whether or not to increase Executive’s Base Salary as provided in Section 3(a) hereof and to extend the Employment Period for an additional one (1) year as provided in Section 2(a) hereof.
The rationale and results of such review, and the justification for any such increase or extension, shall be documented in the minutes of the meeting at which the Board conducted such review. The Board or a committee or representative thereof shall
notify Executive in writing as soon as practicable, and not later than each applicable Anniversary Date, of the results of such review, including its decision whether or not to increase Executive’s Base Salary and to extend the Employment
Period. A decision by the Board not to, or the Board’s failure to, increase Executive’s Base Salary shall not constitute a breach of this Agreement or a “Good Reason” under Section 5(b) hereof. 
  
 3. COMPENSATION AND OTHER BENEFITS. 
  
 (a) Base Salary. During the Employment Period, the Company
shall pay Executive the annual base salary that is reflected in the payroll records of the Company on the Effective Date (“Base Salary”), subject to any discretionary increases that the Board may hereafter elect to make pursuant to this
Section 3(a). Any portion of annual Base Salary that Executive elects to defer under any deferred compensation arrangement that is now or hereafter maintained by the Company shall be considered part of Base Salary for the purposes of this Agreement.
Executive’s Base Salary shall be payable in accordance with the regular payroll practices of the Company. The Board or the Board’s Compensation Committee (the “Compensation Committee”) may increase Executive’s Base Salary at
any time, but shall not reduce Executive’s Base Salary during the Employment Period without the Executive’s express prior written consent. All references herein to Base Salary shall mean, for all purposes of this Agreement,
Executive’s Base Salary as initially established in, and as may subsequently be increased pursuant to, this Section 3(a). 
  

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 (b) Bonuses; Incentive Compensation. In addition to Executive’s Base Salary, Executive
shall be entitled to incentive compensation and bonuses to the extent earned pursuant to any plan or arrangement of the Company in which Executive is eligible to participate during the Employment Period, or to such other extent as the Board or its
Compensation Committee may determine in its discretion to award to Executive. 
  
 (c) Other Compensation. The Company may provide such additional compensation to Executive in such form and in such amounts as may be approved by the Board or the Compensation Committee in its sole
discretion. 
  
 (d) Special Allowances. The Company
shall provide Executive with an automobile allowance and a cellular telephone allowance during the Employment Period in accordance with the standard policies and practices of the Company. 
  
 (e) Reimbursement of Expenses. The Company shall pay or reimburse Executive in accordance with the standard
policies and practices of the Company for all reasonable expenses incurred by Executive during the Employment Period in connection with his employment hereunder or the business of the Company. 
  
 (f) Paid Time Off. Executive shall be entitled to receive not
less than 176 hours of paid time off (“PTO”) per calendar year during the Employment Period in accordance with the PTO policies of the Company as then applicable to senior executive officers of the Company. Executive shall also be entitled
to take time off during all legal holidays approved by the Board for Bank employees generally. Executive shall receive his Base Salary and the other amounts and benefits provided for in Section 3 hereof during all PTO periods and legal holidays.
Except as permitted by the PTO policies of the Company, Executive shall not be entitled to receive any additional compensation for his failure to take PTO or accumulate unused PTO from one year to the next. 
  
 (g) Other Benefits. The Company shall provide Executive with
all other benefits that are now or hereafter provided uniformly to non-probationary full-time employees of the Company during the Employment Period, including, without limitation, benefits under any Section 125 Cafeteria Plan, any group medical,
dental, vision, disability and life insurance plans that are now or hereafter maintained by the Company (collectively, the “Core Plans”), and under any 401(k) plan that is now or hereafter sponsored by the Company, in each case subject to
the Company’s policies concerning employee payments and contributions under such plans. The Company shall not make any changes to any Core Plan that would materially and adversely affect Executive’s rights or benefits under such plan
unless such changes are made applicable to all non-probationary full-time employees of the Company on a non-discriminatory basis. Nothing paid to Executive under any Core Plan or any 401(k) plan shall be deemed to be in lieu of any other
compensation that Executive is entitled to receive under this Agreement. 
  
 (h) Disability Insurance. During the Employment Period, the Company may provide Executive with a disability insurance policy with coverage sufficient to provide Executive with annual disability insurance
payments in an amount equal to not less than sixty percent (60%) of Executive’s Base Salary for a period at least equal to the then remaining term of the Employment Period (the “Disability Policy”) in the event that Executive’s
employment is 
  

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 terminated by reason of a Disability Determination (as defined below). If a Disability Policy is so provided, Executive
shall be responsible for the payment of all premiums on the Disability Policy and shall cooperate with the Company in all respects as necessary or appropriate to enable the Company to procure the Disability Policy, and the Company shall provide
Executive with an annual allowance in an amount sufficient, on an after-tax basis, to equal the annual premiums for the Disability Policy. 
  
 (i) Disability Insurance Adjustment. If Executive receives disability benefits under the Disability Policy or any Core Plan or receives
federal Social Security disability benefits (collectively, “Disability Payments”), the Company’s obligation under Section 3(a) and 6(b) hereof to pay Executive his Base Salary shall be reduced, as of the date the Disability Payments
are first received by Executive, to an amount equal to the difference between Executive’s Base Salary and the Disability Payments that Executive received during each applicable payroll period. The Executive shall make reasonable good faith
efforts to notify the Company of the receipt of Disability Payments. 
  
 (j) Life Insurance. During the Employment Period, the Company may provide Executive with a term life insurance policy with coverage sufficient to provide a death benefit in an amount not less than three (3) times
Executive’s Base Salary, as of the date of this Agreement, containing a rider for inflation based adjustments (the “Life Insurance Policy”), unless such life insurance policy is unobtainable due to the Executive’s failure to
cooperate in obtaining the same or Executive is uninsurable. If a Life Insurance Policy is so provided, the Company shall pay all premiums on the Life Insurance Policy and Executive shall pay all income taxes that become due as a result of the
Company’s payment of such premiums; provided, however, that the Company shall provide Executive with an annual Life Insurance Policy allowance in an amount calculated as follows: (the amount of the annual premiums paid by the Company for the
Life Insurance Policy during that year) divided by (1 – Executive’s income tax rate for that year). Executive shall cooperate with the Company in all respects as necessary or appropriate to enable the Company to procure the Life Insurance
Policy. Executive shall own and have exclusive authority to designate one or more beneficiaries under the Life Insurance Policy. Executive shall have the right to assume responsibility for the payment of the premiums under and to continue the Life
Insurance Policy following the termination of Executive’s employment with the Company, but only if such assumption and continuation are permissible under the terms of the Life Insurance Policy and any costs associated therewith are borne by
Executive. The Life Insurance Policy shall be in addition to any life insurance benefits that the Company now or hereafter provides uniformly to non-probationary full-time employees of the Company during the Employment Period. 
  
 (k) Club Dues. In addition to any other compensation provided
for under this Agreement, the Company shall pay Executive an amount sufficient, on an after-tax basis, to maintain his membership at Olympia Fields Country Club, Olympia Fields, Illinois, during the Employment Period.] 
  
 4. TERMINATION BY THE COMPANY. 
  
 (a) Termination For Cause. The Board may terminate
Executive’s employment with the Company “For Cause” at any time during the Employment Period, subject to the 
  

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 requirements set forth in this Section 4(a) and in Section 7 of this Agreement. A termination “For Cause” shall
mean the Company’s termination of Executive’s full-time employment hereunder because of Executive’s personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to
perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar offenses), or final cease-and-desist order, or a material breach of any provision of this Agreement. Notwithstanding the foregoing,
Executive shall not be deemed to have been terminated For Cause unless and until (i) there shall have been delivered to Executive a written notice of the Board’s intention to terminate Executive’s employment For Cause, specifying the
alleged grounds for such termination; (ii) if the alleged grounds for such termination are a material breach of a provision of this Agreement, providing Executive with a reasonable opportunity to cure, if curable, any conduct or acts alleged to be a
material breach of any provision of this Agreement; (iii) following delivery of such written notice, Executive (together with any counsel selected by him) shall have been given a reasonable opportunity to present to the Board, at a meeting called
and held for or including that purpose, Executive’s position regarding any dispute that exists regarding the alleged grounds for termination For Cause, and (iv) the Board shall adopt a resolution by the affirmative vote of not less than a
majority of its members, finding in good faith and on the basis of reasonable evidence that Executive was guilty of conduct justifying a termination For Cause. The Notice of Termination (as defined in Section 7 below) issued in connection with the
termination of Executive’s employment For Cause shall be accompanied by a copy of such resolution. Should a dispute arise concerning the Executive’s termination For Cause, any review of the For Cause termination in any judicial or
arbitration proceeding will be limited to a determination of whether the Board acted in good faith and on the basis of reasonable evidence. The Board shall also be deemed to have terminated Executive’s employment with the Company For Cause if
Executive’s employment with the Bank is terminated For Cause during the Employment Period in accordance with the requirements set forth in Section 4(a) of the Bank Agreement. 
  
 (b) Termination for Disability. The Board, in its discretion, may terminate Executive’s employment with
the Company at any time from and after the date on which a physician chosen by the Company and reasonably acceptable to Executive or Executive’s personal representatives determines that Executive, due to an accident or a physical or mental
illness, has been, is or will be incapable of fulfilling the duties and responsibilities set forth in Section 1(b) hereof for a period of more than one hundred and eighty (180) days within a one (1) year period (a “Disability
Determination”). Following a Disability Determination, the Board may, in lieu of terminating Executive’s employment by reason of the Disability Determination, appoint one or more other persons to serve as Acting Chairman, Acting President
and Acting Chief Executive Officer of the Company to fulfill, on a temporary basis, the duties and responsibilities of Executive. Any such temporary appointment shall be without prejudice to the Board’s right to thereafter terminate
Executive’s employment based on a Disability Determination made pursuant to this Section 4(b) or as otherwise provided herein. The Board shall also be deemed to have terminated Executive’s employment with the Company based on a
“Disability Determination” if Executive’s employment with the Bank is terminated during the Employment Period based on a “Disability Determination” in accordance with the requirements set forth in Section 4(b) of the Bank
Agreement. 
  

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 (c) Termination Without Cause. The Board, in its discretion, may terminate Executive’s
employment with the Company “Without Cause” at any time, subject to the notification requirements set forth in Section 7 hereof. A termination “Without Cause” shall mean the Board’s termination of Executive’s employment
for any reason other than a termination For Cause or a termination based on a Disability Determination. The Board shall also be deemed to have terminated Executive’s employment with the Company Without Cause if Executive’s employment with
the Bank is terminated during the Employment Period “Without Cause” in accordance with the requirements set forth in Section 4(c) of the Bank Agreement. 
  
 5. TERMINATION BY EXECUTIVE OR BY REASON OF DEATH. 
  
 (a) Termination By Resignation. Executive may, in his discretion, terminate his employment with the Company
“By Resignation” at any time during the Employment Period, subject to the notification requirements set forth in Section 7 hereof. A termination “By Resignation” shall mean Executive’s termination of his employment for any
reason other than a “Good Reason” as such term is defined in Section 5(b) hereof. Executive shall also be deemed to have resigned his employment with the Company, and to have terminated his employment with the Company By Resignation, if
Executive’s employment with the Bank is terminated during the Employment Period By Resignation in accordance with the requirements set forth in Section 5(a) of the Bank Agreement. 
  
 (b) Termination For Good Reason. Executive may terminate Executive’s employment with the Company for
“Good Reason,” subject to the requirements set forth in this Section 5(b) and the notification requirements set forth in Section 7 hereof. A termination for “Good Reason” shall mean Executive’s resignation from the
Company’s employ during the Employment Period based upon any of the following acts, omissions or events, but only if (taken or occurring during the Employment Period without Executive’s prior written express consent (in the manner
specified herein below): (i) a decision by the Board not to elect or re-elect or to appoint or re-appoint Executive to the offices of President and Chief Executive Officer of the Company, and if Executive is elected as a director of the Company, as
the Chairman of the Board of the Company; (ii) a failure by the Board to elect or re-elect or to appoint or re-appoint Executive to the offices of President and Chief Executive Officer of the Company, and if elected as a director of the Company, as
the Chairman of the Board of the Company, or a decision by the Board to remove Executive from any such position; (iii) the failure of the Nominating Committee of the Board (or if there is no Nominating Committee, the failure of the Board) to
nominate and recommend Executive for election by the stockholders of the Company as director of the Company for any term immediately following the expiration Executive’s then existing term as a director ; (iv) a material reduction, imposed by
the Board, of Executive’s functions, duties, powers, privileges, authority or responsibilities; (v) the failure of the Board to extend the Employment Period on or before an applicable Anniversary Date pursuant to Section 2(a) for an additional
one (1) year so that the remaining term thereof will be thirty-six (36) months; (vi) the Board’s relocation of Executive’s principal place of employment to a place that is more than fifteen (15) miles from the city limits of Chicago,
Illinois; (vii) a reduction in Executive’s Base Salary, or a material reduction in the benefits that Executive is entitled to receive under Section 3(d) through (k) of this Agreement; (viii) a liquidation or dissolution of the Company, (ix) a
material uncured breach of this Agreement by the Company; or (x) the occurrence of a “Change in Control” of the Company, as such term is defined in Section 24 hereof. Executive shall have 
  

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 the right to elect to terminate his employment for Good Reason only by giving the General Counsel of the Company a Notice
of Termination (as defined below) within sixty (60) days after the act, omission or event giving rise to said right to elect, provided, however, that the period for Executive to give a Notice of Termination shall be one (1) year from the occurrence
of a Change in Control in the event of a Change in Control. Executive’s prior written consent to an act, omission or event which would otherwise constitute “Good Reason” shall be made in writing, shall be delivered to the Board of
Directors of the Company and shall state specifically the sub-section of this Section 5(b) to which such consent shall apply. Notwithstanding anything herein to the contrary, Executive’s voting (in any capacity) in favor of a Change in Control
shall not be deemed to be consent to the Change in Control for purposes of this Section 5(b). Notwithstanding the foregoing, Executive shall not have a right to elect to terminate his employment (i) based on the events set forth in this Section 5(b)
solely on the basis of the Board’s appointment of an Acting Chairman, Acting President or Acting Chief Executive Officer following a Disability Determination made in accordance with Section 4(b) of this Agreement, or (ii) except in the case of
a Notice of Termination delivered pursuant to Section 5(b)(x) following the occurrence of a Change in Control, if the Company fully rescinds or cures, within ten (10) days after its receipt of Executive’s Notice of Termination, the act,
omission or event giving rise to Executive’s right to elect to terminate his employment for Good Reason. Executive shall also be deemed to have terminated his employment with the Company for Good Reason if Executive’s employment with the
Bank is terminated during the Employment Period for Good Reason in accordance with the requirements set forth in Section 5(b) of the Bank Agreement. 
  
 (c) Termination Upon Death. Executive’s employment with the Company shall terminate immediately upon Executive’s death, without
regard to the notification requirements set forth in Section 7 hereof. 
  
 6.
FINANCIAL CONSEQUENCES OF TERMINATION. 
  
 (a)
Termination For Cause. In the event that Executive’s employment is terminated For Cause during the Employment Period, the Company shall pay Executive the unpaid balance of Executive’s Base Salary through the effective date of
the termination of Executive’s employment (“Earned Salary”), but Executive shall receive no bonus or incentive compensation for the current year (all such amounts shall remain unearned and unvested), and shall receive no compensation
or other benefits (including the compensation and benefits set forth in Section 3(a) through (k) and Section 6 hereof) for any period after the effective date of the termination of Executive’s employment; provided, however, that the right of
Executive to assume and continue the Life Insurance Policy under Section 3(j) hereof, any rights of Executive under any applicable state and federal laws, including ERISA and COBRA, and any rights of Executive that have vested, whether by
application of any state or federal law, the provisions of any contract, employee benefits plan or otherwise, shall not be terminated or prejudiced by a termination For Cause. Upon Executive’s death, any payments due under this Section 6(a)
shall be paid, as applicable, to Executive’s estate, trust or as otherwise required by law. 
  
 (b) Termination for Disability. In the event that Executive’s employment is terminated during the Employment Period based on a
Disability Determination, the Company shall: (i) pay Executive his Earned Salary (as defined above); (ii) pay Executive an amount equal to the annual average of any cash incentive compensation and bonus that Executive received 
  

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 during the immediately preceding two (2) fiscal years, prorated based on the number of days during such year that elapsed
prior to the effective date of the termination of Executive’s employment (“Prorated Incentive Compensation”); (iii) make, for the benefit of Executive, the matching 401(k) plan contribution that Executive is entitled to receive for
the current year, prorated based on the number of days during such year that elapsed prior to the effective date of the termination of Executive’s employment (“Accrued Plan Contribution”), (iv) subject to the disability insurance
adjustment set forth in Section 3(i) hereof, pay Executive the Base Salary that Executive would have been paid pursuant to Section 3(a) hereof from the effective date of termination through the date the Employment Period would have expired if
Executive’s employment had not been sooner terminated based on a Disability Determination; and (v) provide Executive (or upon his death, his surviving spouse and minor children, if any) with the same coverage under the Core Plans (or if
applicable, a Contingent Insurance Stipend under Section 6(h)) that Executive would have been provided pursuant to Section 3(g) hereof from the effective date of termination through the date the Employment Period would have expired if
Executive’s employment had not been sooner terminated based on a Disability Determination (in each case subject to Executive’s payment of the costs and contributions that such plans provide are the responsibility of the insured employee
and the availability of such continued coverage through the Company’s then-current insurance carrier). Except as provided in Section 3(h), Section 3(j) (but only with respect to the assumption and continuation of the Life Insurance Policy) and
this Section 6(b), the Company shall have no obligation to provide Executive with any other compensation or benefits pursuant Section 3(a) through (k) or Section 6 of this Agreement following a termination of Executive’s employment based on a
Disability Determination. Except as provided in Section 6(g) hereof, the amounts payable under Subsections (ii) and (iv) of this Section 6(b) shall be paid in equal installments over the period beginning on the Company’s first regular payroll
date after the effective date of termination and continuing through the Company’s first regular payroll date after the date the Employment Period would have expired if Executive’s employment had not been sooner terminated based on a
Disability Determination. Upon Executive’s death, any payments due under this Section 6(b) shall be paid, as applicable, to Executive’s estate, trust or as otherwise required by law. 
  
 (c) Termination Without Cause. In the event that
Executive’s employment is terminated Without Cause during the Employment Period, the Company shall: (i) pay Executive his Earned Salary (as defined above); (ii) pay Executive his Prorated Incentive Compensation (as defined above); (iii) make,
for the benefit of Executive, the Accrued Plan Contribution (as defined above); (iv) subject to Section 6(h), provide Executive (or upon his death, his surviving spouse and minor children, if any) with coverage under the Core Plans (or if
applicable, a Contingent Insurance Stipend) for a period of thirty-six (36) months from the effective date of the termination of Executive’s Employment (in each case subject to Executive’s payment of the costs and contributions that such
plans provide are the responsibility of the insured employee and the availability of such continued coverage through the Company’s then-current insurance carrier); and (v) pay Executive an amount equal to three (3) times Executive’s
Average Annual Compensation. The term “Average Annual Compensation” shall mean the average of Executive’s annual Compensation based on the most recent three (3) taxable years, or if Executive was employed by the Company for less than
three (3) full taxable years, based on such lesser number of taxable years or portions thereof as Executive was employed by the Company. The term “Compensation” shall mean, for the purposes of the foregoing definition as it relates to any
tax year, all Base Salary, incentive compensation, bonuses, special allowances, other 
  

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 compensation, club dues and other benefits paid by the Company to Executive in such taxable year pursuant to Section 3(a)
through (k) hereof, any director or committee fees paid by the Company to Executive during such tax year, and any other taxable income paid by the Company to Executive during such tax year. Except as provided in Section 3(j) (but only with respect
to the assumption and continuation of the Life Insurance Policy) and this Section 6(c), the Company shall have no obligation to provide Executive with any other compensation or benefits pursuant Section 3(a) through (k) or Section 6 of this
Agreement following a termination of Executive’s employment Without Cause. Except as provided in Section 6(g) hereof, the amounts payable under Sections (ii) and (v) hereof shall be paid in equal installments over the period beginning on the
Company’s first regular payroll date after the effective date of termination and continuing thereafter on each regular payroll date for thirty-six (36) months. Upon Executive’s death, any payments due under this Section 6(c) shall be paid,
as applicable, to Executive’s estate, trust or as otherwise required by law. 
  
 (d) Termination By Resignation. In the event that Executive’s full-time employment is terminated By Resignation during the Employment Period, the Company shall pay Executive his Earned Salary (as
defined above), but Executive shall receive no compensation or other benefits (including the compensation and benefits set forth in Section 3(a) through (k) hereof) for any period after the effective date of the termination of Executive’s
employment; provided, however, that the right of Executive to assume and continue the Life Insurance Policy under Section 3(j) hereof, any rights of Executive under any applicable state and federal laws, including ERISA and COBRA, and any rights of
Executive that have vested, whether by application of any applicable state or federal law, the provisions of any contract, employee benefits plan or otherwise, shall not be terminated or prejudiced by a termination By Resignation. Except as provided
in Section 3(j) (but only with respect to the assumption and continuation of the Life Insurance Policy) and this Section 6(d), the Company shall have no obligation to provide Executive with any other compensation or benefits pursuant Section 3(a)
through (k) or Section 6 of this Agreement following a termination of Executive’s employment By Resignation. 
  
 (e) Termination for Good Reason. In the event that Executive’s employment is terminated by Executive for Good Reason during the
Employment Period, the Company shall pay Executive the same amounts, and shall, subject to Section 6(h) hereof, provide Executive (or upon his death, his spouse and minor children, if any) with the same coverages under the Core Plans (or if
applicable, the same Contingent Insurance Stipend), that Executive would have been paid and provided pursuant to Section 6(c) hereof if his employment had been terminated by the Company Without Cause on the effective date of the termination of
Executive’s employment. Except as provided in Section 3(j) (but only with respect to the assumption and continuation of the Life Insurance Policy) and this Section 6(e), the Company shall have no obligation to provide Executive with any other
compensation or benefits pursuant Section 3(a) through (k) or Section 6 of this Agreement following a termination of Executive’s employment for Good Reason. Except as provided in Section 6(c) and Section 6(g) hereof, the amounts payable under
this Section shall be paid in equal installments over the period beginning on the Company’s first regular payroll date after the effective date of termination and continuing thereafter on each regular payroll date for thirty-six (36) months.
Upon Executive’s death, any payments due under this Section 6(e) shall be paid, as applicable, to Executive’s estate, trust or as otherwise required by law. 
  

 Page 9 of 23 

 (f) Termination Upon Death. In the event Executive’s employment with the Company is
terminated during the Employment Period by reason of Executive’s death, the Company shall, subject to Section 6(h) hereof, provide Executive’s surviving spouse and minor children, if any, with the same coverages under the Core Plans (or if
applicable, the same Contingent Insurance Stipend) that Executive would have been provided pursuant to Section 6(b) hereof if his employment had been terminated by the Company based on a Disability Determination on the date of Executive’s death
(subject to the availability of such continued coverage through the Company’s then-current insurance carrier). In addition, the Company shall pay, as applicable, Executive’s estate or trust, in accordance with the Company’s regular
payroll practices, the Base Salary that Executive would have been paid pursuant to Section 3(a) hereof from the effective date of termination through the date the Employment Period would have expired if Executive’s employment had not been
sooner terminated based on Executive’s death; Notwithstanding the foregoing: (i) the Company shall have no obligation to make such payments if it procures and causes Executive to be insured under the Life Insurance Policy in the amount
specified in, and otherwise in accordance with, Section 3(j) hereof; and (ii) if the Company procures and causes Executive to be insured under a Life Insurance Policy obtained pursuant to Section 3(j) hereof, but the death benefits payable
thereunder are less than the policy amount required Section 3(j) hereof, the Company’s obligation to make such payments shall not be extinguished, but shall be reduced by the amount payable under the Life Insurance Policy; provided that in
either case the Company’s obligations to make such payments shall only be reduced by the amount of death benefits that are actually paid to and received by the beneficiaries under the Life Insurance Policy in accordance with Section 3(j)
hereof. Except as provided in Section 3(j) or this Section 6(f), the Company shall have no obligation to provide Executive’s estate, surviving spouse or minor children with any other compensation or benefits pursuant to Section 3(a) through (k)
or Section 6 of this Agreement following a termination of Executive’s employment by reason of Executive’s death. This provision shall not negate any rights that Executive, his estate or beneficiaries may have to death benefits under any
employee benefit plan of the Company. Except as provided in Section 6(b) and Section 6(g) hereof, any amounts payable under this Section (f) shall be paid in equal installments over the period beginning on the Company’s first regular payroll
date after the date of death and continuing through the Company’s first regular payroll date after the date the Employment Period would have expired if Executive’s employment had not been sooner terminated based on Executive’s death.

  
 (g) Installment Payments; Lump Sum Payment
Election. At the election of the Company, all amounts payable hereunder in installments may be paid in a single lump sum within forty-five (45) days of the effective date of the termination of Executive’s employment. For the purpose of
calculating the amount of the lump sum payment, all amounts payable to Executive in installments, other than any cash incentive compensation payments that are payable in accordance with Section 6(b), Section 6(c), Section 6(e) or Section 6(f) of
this Agreement, any Core Plan contributions that are required to be made by the Company and any Contingent Insurance Stipend payable pursuant to Section 6(h), shall be discounted to reflect the present value of such payments using a discount rate
equal to the then applicable rate for two (2) year United States Treasury Notes. If the Company desires to make such an election, it shall be required to do so in a writing delivered to Executive or if applicable, the executor or personal
representative of Executive’s estate or the trustee of Executive’s trust, within forty-five (45) days of the effective date of the termination of Executive’s employment. Except as provided in 
  

 Page 10 of 23 

 Section 8(f), no payments due Executive under this Agreement shall be reduced solely by reason of the fact that Executive
obtains other employment following termination of his employment with the Company. 
  
 (h) Contingent Insurance Stipend. In the event that the continued medical insurance coverage that the Company is obligated to provide pursuant to Sections 6(b)(v) and 6(c)(iv) (and by operation of such
provisions, pursuant to Sections 6(e) and 6(f)) of this Agreement is not then available, the Company shall pay Executive (or upon his death, his spouse and minor children, if any), during the applicable period, a stipend in an amount sufficient, on
an after-tax basis, to equal the amount that the Company would have contributed for Executive’s benefit during the applicable period under the Company’s Section 125 Cafeteria Plan if Executive had remained in the Company’s employ
during the applicable period. The stipend shall be payable in equal installments during the applicable period on dates coinciding with the Company’s regular payroll dates. 
  
 (i) General Release. In consideration of the Company’s agreements with respect to the monetary payments
provided for in Sections 6(b), 6(c), 6(e) and 6(f) of this Agreement (which payments exceed the nature and scope of that to which Executive would have been legally entitled to receive absent this Agreement), and as a condition precedent to
Executive’s receipt of such payments, Executive (or in the event of Executive’s death, Executive’s executor, trustee, administrator or personal representative, as applicable), shall, at the time the first of any such payments is
tendered, execute and deliver to the Company a general release in favor of the Company and its Affiliates (as defined below), releasing all claims, demands, causes of actions and liabilities arising out of this Agreement, Executive’s employment
or the termination thereof, including, but not limited to, claims, demands, causes of action and liabilities for wages, back pay, front pay, attorney’s fees, other sums of money, insurance, benefits, or contracts; and all claims, demands,
causes of actions and liabilities arising out of or under the statutory, common law or other rules, orders or regulations of the United States or any State or political subdivision thereof, whether now existed or hereinafter enacted or adopted,
including the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act, and no further payments shall be due Executive until such time as all applicable waiting or rescission periods thereunder shall have expired or shall
have been waived. Notwithstanding the foregoing or anything to the contrary herein, the general release shall not release any unperformed obligations of the Company under this Agreement, or of the Bank under its respective Employment Agreement with
Executive. 
  
 7. NOTICE OF TERMINATION. 
  
 Any termination or purported termination by the Company or Executive of
Executive’s employment with the Company shall be communicated by a Notice of Termination to the other party. A “Notice of Termination” shall mean a written notice that shall set forth the effective date of the termination of
Executive’s employment, identify the specific termination provision(s) in this Agreement relied upon, and set forth in reasonable detail the facts and circumstances claimed to provide a basis for the termination of Executive’s employment
under the provision so identified. The party issuing the Notice of Termination shall cause it to be delivered to the other party either in person, by United States mail or via a reputable commercial delivery service (i) not less than thirty (30)
days prior to the effective date of termination in the case of a termination 
  

 Page 11 of 23 

 Without Cause or By Resignation or based on a Disability Determination; (ii) not less than thirty (30) prior to the
effective date of termination and as otherwise provided in Section 4(a) hereof in the case of a termination For Cause; and (iii) as provided in Section 5(b) hereof in the case of a Termination for Good Reason. Notices to the Company shall be
addressed and delivered to the principal headquarters office of the Company, Attention: General Counsel, with a copy concurrently so delivered to General Corporate Counsel to the Company, Barack Ferrazzano Kirschbaum Perlman & Nagelberg, 333
West Wacker Drive, Suite 2700, Chicago, Illinois 60606, to the joint attention of Edwin S. del Hierro and Lynne D. Mapes-Riordan. Notices to the Executive shall be sent to the address set forth below the Executive’s signature on this Agreement,
or to such other address as Executive may hereafter designate in a written notice given to the Company and its counsel. 
  
 8. NON-COMPETITION AND OTHER AGREEMENTS. 
  
 (a) Non-Competition. Executive shall not, during the Non-Competition Period (as hereinafter defined), directly or indirectly,
and in any capacity, including as an individual for Executive’s own account, or as an employee, agent, independent contractor, consultant, officer, director, stockholder, owner or member of any association, corporation (whether for profit or
not for profit), partnership (whether general or limited), limited liability company, trust, firm, any federal, state or local government, agency, commission, board, district or body politic, any other registered or legal entity of any type (each a
“Legal Entity”), or as an employee, agent, independent contractor or consultant of or for any person, compete with the Company in any of the following lines of business: the business of originating or purchasing loans, leases and payment
streams thereunder, accepting deposits, selling or providing insurance, securities, financial planning, and asset management products and services, accepting referrals of any of the foregoing, and other business contracts, relationships or
activities of the Company and any Affiliate (as defined below) of the Company (collectively, “Banking Business”) from a place that is located within five (5) miles of a place where the Company or any Affiliate maintains a branch, office or
other place of business, or has filed a regulatory notice or application to establish a branch, office or other place of business (collectively, the “Restricted Area”). The term “Non-Competition Period” shall mean: (i) the
greater of (A) six (6) months after the effective date of the termination of Executive’s employment, and (B) any period of time during which Executive is entitled to receive payments or benefits pursuant to Section 6(b), 6(c) or 6(e) of this
Agreement on account of a termination based on a Disability Determination, Without Cause or for Good Reason, respectively, which period shall be determined without regard to any election made by the Company to make any payments in a single lump sum
pursuant to Section 6(g) of this Agreement; and (ii) six (6) months from the effective date of the termination of Executive’s employment if such employment is terminated By Resignation or With Cause. Notwithstanding the foregoing or anything to
the contrary herein, Executive shall be entitled to engage in the practice of law during the Non-Competition Period and the foregoing restrictions shall not apply to any activities in which Executive engages that are within the scope of
Executive’s practice of law. The term “Affiliate” means, for all purposes of this Agreement, any Legal Entity that directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control
with, the Company. The following Legal Entities are Affiliates of the Company as of the date of this Agreement: BankFinancial, F.S.B.; Financial Assurance Services, Inc.; and BF Asset Recovery Corporation. 
  

 Page 12 of 23 

 (b) Non-Solicitation. Executive shall not, during the Non-Solicitation Period (as
hereinafter defined), directly or indirectly, either as an individual for Executive’s own account, or as an employee, agent, independent contractor or consultant of or for any person or Legal Entity, or as an officer, director, stockholder,
owner or member of any Legal Entity: (i) call upon or solicit for the purpose of obtaining Banking Business from, or do any Banking Business with, any person or Legal Entity that was or is a customer of the Company or any Affiliate at any time
between the Effective Date of this Agreement and the last day of the Non-Solicitation Period (a “Protected Customer”); (ii) divert or take away from the Company or an Affiliate any existing Banking Business between the Company or an
Affiliate and a Protected Customer; (iii) call upon or solicit for the purpose of obtaining Banking Business from, or do any Banking Business with, any person or Legal Entity from which the Company or an Affiliate purchased loans or personal
property leases (or any payment streams thereunder), or that referred or originated loans or personal property leases (or any payment streams thereunder) to, for or on behalf of the Company or an Affiliate at any time between the Effective Date of
this Agreement and the last day of the Non-Solicitation Period (a “Protected Referral Source”); (iv) divert or take away from the Company or an Affiliate any existing Banking Business between the Company or an Affiliate and a Protected
Referral Source; (v) solicit or induce any Protected Customer or Protected Referral Source to terminate or not renew or continue any Banking Business with the Company or any Affiliate, or to terminate or not renew or continue any contractual
relationship with the Company or any Affiliate; (vi) hire, or assist or cause any person or Legal Entity with which Executive is affiliated or associated in hiring, any person who was or is an employee of the Company or any Affiliate between the
Effective Date of this Agreement and the last day of the Non-Solicitation Period (a “Protected Employee”); (vii) solicit or induce any Protected Employee to terminate his or her employment with the Company or any Affiliate; or (viii)
attempt to do, or conspire with or aid and abet others in doing or attempting to do, any of the foregoing. The term “Non-Solicitation Period” shall mean, except as provided in Section 8(f) below, a period of eighteen (18) months commencing
on the effective date of the termination of Executive’s employment. 
  
 (c) Confidentiality. Executive recognizes and acknowledges that personal information and knowledge thereof regarding the customers of the Company and its Affiliates are protected by state and federal law
and the Privacy Principles of the Company and its Affiliates, as amended from time to time (collectively, “Protected Customer Information”), and that customer lists, trade secrets, nonpublic financial information, and nonpublic past,
present, planned or considered business activities of the Company and its Affiliates and any plans for such business activities (collectively, “Proprietary Information”) are valuable, special and unique assets of the Company. Executive
will not, during or after the Employment Period, disclose any Protected Customer Information or Proprietary Information or his knowledge thereof to any person or Legal Entity other than the Company of any Affiliate, or use any Protected Customer
Information or Proprietary Information to the detriment of the Company, any Affiliate or any of their respective customers or employees, or for the benefit of himself, any person or any Legal Entity, for any reason or purpose whatsoever.
Notwithstanding the foregoing, Executive may (i) disclose and use information that becomes publicly known through no wrongful act or omission of Executive, but only if the disclosure of such information is not restricted by any applicable state or
federal laws or regulations and the information is not received from a person who was or is bound by an obligation not to disclose such information; (ii) disclose and use any financial, banking, business or economic principles, concepts or ideas
that do not constitute Protected 
  

 Page 13 of 23 

 Customer Information or Proprietary Information; (iii) disclose any information regarding the business activities of the
Company or its Affiliates to a governmental authority pursuant to a formal written request made by such governmental authority; and (iv) disclose any information required to be disclosed by Executive pursuant to an order or judicial process issued
by a court of competent jurisdiction; provided, however, that to the extent not prohibited by applicable state or federal law, Executive shall provide the Company or the applicable Affiliate with at least ten (10) days’ prior written notice of
his intention to disclose information pursuant to subparagraph (iii) or (iv) of this Section 8(c). 
  
 (d) Cooperation in Legal Proceedings. During the Employment Period and for a period equal to three (3) years from the effective date of the
termination of Executive’s employment, Executive shall, upon reasonable notice, furnish such cooperation, information and assistance to the Company as may reasonably be required by the Company or any Affiliate of the Company in connection with
any pending or threatened judicial, administrative or arbitration proceeding or any investigation that is based on events or circumstances in which Executive had personal knowledge or involvement and in which the Company or any of its Affiliates is
or may become a party or target, except for proceedings instituted against Executive by the Company or any governmental or regulatory authority, or proceedings instituted by Executive against the Company to enforce the terms of this Agreement or any
other duties or obligations of the Company to Executive. The Company, or if applicable, its Affiliate, shall reimburse Executive for all reasonable costs and expenses incurred by Executive in providing such cooperation, information and assistance.
Unless Executive’s appearance is compelled by a court order or other legal process, Executive shall not be obligated to devote more than two (2) days per calendar month in fulfilling his obligations under this Section 8(d), and the Company or
its Affiliate shall make reasonable accommodations to avoid interfering with any duties that Executive may then have to any client or other employer. Notwithstanding anything to the contrary in this Section 8(d) or this Agreement, while Executive
will be encouraged to voluntarily provide sworn testimony where appropriate, Executive shall have no duty to provide sworn testimony in any judicial, arbitration or discovery proceeding except as may be required by any rule of procedure, subpoena or
judicial process applicable to or enforceable against Executive, and in no case shall Executive be required to provide any testimony that, in the judgment of Executive, might or could expose him to civil liability or compromise his privilege against
self incrimination. Any testimony given by Executive in such a proceeding shall be truthful, but in no event shall the content of any testimony given by Executive in such a proceeding constitute a breach of this Section 8(d) or any other provision
of this Agreement. Executive may condition his providing of assistance and testimony hereunder on his receipt of an undertaking from the Company that it will indemnify him for such actions to the fullest extent permitted by applicable law.

  
 (e) Remedies. Executive and the Company
stipulate that irreparable injury will result to the Company and its Affiliates and their business and property in the event of Executive’s violation of any provision of this Section 8, and agree that, in the event of any such violation by
Executive, the Company, and if applicable, its Affiliates, will be entitled, in addition to any other rights, remedies and money damages that may then be available, to injunctive relief to restrain the violation hereof by Executive, Executive’s
partners, agents, servants, employees and all persons acting for, under the direction or control of or in concert with Executive, and to such other equitable remedies as may then be available. Nothing herein will be construed as prohibiting the
Company or any Affiliate from pursuing any other remedies available to the Company or such Affiliate for such breach or threatened breach, including the recovery of money damages from Executive. 
  

 Page 14 of 23 

 (f) Adjustment of Non-Solicitation Period. The Non-Solicitation Period shall be reduced
from eighteen (18) months to six (6) months, but only with respect to the restrictions set forth in Subsection (b)(i) and Subsection (b)(iii) of Section 8 of this Agreement (and the prohibitions in Subsection (b)(viii) of Section 8 against, aiding,
abetting, inducing or conspiring with others to violate those restrictions), in the event that the Company terminates this Agreement Without Cause or Executive terminates this Agreement for Good Reason, provided that, in either case, Executive
executes and delivers to the Company a writing, acceptable in form and substance to the Company, that releases and waives any and all obligations that the Company may have under Section 6(c) or 6(e) of this Agreement to pay Executive any Base Salary
after the expiration of such six-month period, or to provide Executive (or upon his death, his surviving spouse and minor children, if any) with coverage under the Core Plans after the expiration of such six-month Non-Solicitation Period.
Notwithstanding the foregoing, in the event that the Company has theretofore made a lump sum payment to Executive pursuant to Section 6(g) of this Agreement that included amounts attributable to any period of time after the expiration of such
six-month Non-Solicitation Period, Executive shall refund to the Company all amounts attributable to such period of time as a condition precedent to the reduction of the Non-Solicitation Period from eighteen (18) months to six (6) months.

  
 9. SOURCE OF FUNDS; ALLOCATION. 
  
 All payments provided in this Agreement shall be timely paid in cash or
check from the general funds of the Company; provided, however, that to the extent that any compensation payments and benefits provided for in this Agreement are paid to or received by Executive from the Bank pursuant to the Bank Agreement or
otherwise, such compensation payments and benefits paid by the Bank shall be subtracted from any amounts due simultaneously to Executive under this Agreement. Payments due Executive pursuant to this Agreement and the Bank Agreement shall be
allocated in proportion to the services rendered and time expended on such activities by Executive as determined by the Bank and the Company on a quarterly basis or as required by law. 
  
 10. EFFECT ON PRIOR AGREEMENTS AND EXISTING PLANS. 
  
 This Agreement contains the entire understanding between the parties hereto with respect to Executive’s employment with
the Company, and supersedes any prior offer of employment, employment letter or other agreements or understandings between the Company and Executive, whether oral or written, with respect thereto, except that this Agreement shall not affect or
operate to reduce any benefit or compensation inuring to Executive of a kind provided for in any Core Plan or any separate plan or program established for the benefit of Bank employees generally, or any separate plan or program established after the
date of this Agreement for the specific benefit of Executive. No provision of this Agreement shall be interpreted to mean that Executive is subject to receiving fewer benefits than those available to him without reference to this Agreement.

  

 Page 15 of 23 

 11. MODIFICATION AND WAIVER. 
  
 This Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto and approved
by the Board. 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. Notwithstanding the foregoing, in the event that any provision or the implementation of any provision of this Agreement is finally determined to violate any applicable law,
regulation or other regulatory requirement that is binding on the Company, or to constitute an unsafe and unsound banking practice, Executive and the Company agree to amend such provision to the extent necessary to remove or eliminate such violation
or unsafe and unsound banking practice, and such provision shall then be applicable in the amended form. 
  
 12. NO ATTACHMENT. 
  
 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 effect any such action shall be null, void, and of no effect. 
  

13. REQUIRED PROVISIONS. 
  
 In the event any of the foregoing provisions of this Agreement are in conflict with the provisions of this Section 13, this Section 13 shall prevail.

  
 (a) Rights Not Prejudiced. The Company may
terminate Executive’s employment at any time, but any termination by the Company, other than For Cause, shall not prejudice any right of Executive to compensation or other benefits under this Agreement. Executive shall not have the right to
receive compensation or other benefits for any period after a termination For Cause as provided in Section 6(a) hereof. 
  
 (b) Certain Payments. Any payments made to Executive pursuant to this Agreement, or otherwise, are subject to and conditioned upon
compliance with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. Section 1828(k) and the rules and regulations promulgated thereunder in 12 C.F.R. Part 359. 
  
 14. WITHHOLDING. 
  
 All payments required to be made to Executive under this Agreement shall be subject to the withholding of such amounts, if any, relating to tax and other
payroll deductions as the Company reasonably determines should be withheld pursuant to any applicable state or federal law or regulation. 
  

 Page 16 of 23 

 15. 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 that is not held invalid, and each such other provision and part thereof shall to the full extent consistent with law continue in full force and effect. Without limiting the foregoing, if any
provisions of Section 8 of this Agreement are held to be unenforceable because of the scope, duration or area of applicability, the court making such determination shall have the power to modify such scope, duration or area of applicability, or all
of them, and such provision shall then be applicable in the modified form. 
  
 16. 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. 
  
 17. GOVERNING LAW. 
  
 The validity, interpretation, performance and enforcement of this Agreement shall be governed by the internal laws of the State of Illinois, without
regard or reference to any principles of conflicts of law of the State of Illinois, except to the extent that such internal laws are preempted by the laws of the United States or the regulations of the OTS or any other agency of the United States.

  
 18. DISPUTE RESOLUTION. 
  
 (a) Arbitration. Except for claims, cases or controversies
based on or arising out of Section 8 of this Agreement (“Section 8 Claims”), all claims, cases or controversies arising out of or in connection with either this Agreement, Executive’s employment with the Company or the termination or
cessation of such employment (collectively, “Employment Claims”), whether asserted against the Company, an Affiliate (as defined below), and/or an officer, director or employee of the Company or an Affiliate, and whether based on this
Agreement or existing or subsequently enacted or adopted statutory or common law doctrines, shall be finally settled by arbitration conducted by JAMS Endispute or a successor entity (“JAMS”) in Chicago, Illinois, in accordance with the
then applicable Employment Arbitration Rules and Procedures of JAMS, or in the event JAMS or a successor in interest of JAMS no longer provides arbitration services, by the American Arbitration Association or a successor entity (the “AAA”)
in accordance with its then applicable National Rules for the Resolution of Employment Disputes. The costs and fees imposed by JAMS or the AAA for conducting such arbitration shall be borne equally by Executive and the Company unless the arbitrator
determines otherwise. The award rendered by the arbitrator(s) shall be final and binding upon Executive, the Company and any other parties to such proceeding, and may be entered and enforced as a judgment in any court of competent jurisdiction. The
Employment Claims subject to arbitration hereunder shall include, but shall not be limited to, those arising under the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, as amended, including the amendments of the Civil
Rights Act of 1991, the Older Workers Benefit Protection Act, the Americans with Disabilities Act, the law of 
  

 Page 17 of 23 

 contract, the law of tort, and other claims under federal, state or local statutes, ordinances and rules or the common
law. Executive and the Company acknowledge that by agreeing to arbitration they are relinquishing all rights they have to sue each other for Employment Claims that do not constitute Section 8 Claims and any rights that they may have to a jury trial
on Employment Claims that do not constitute Section 8 Claims. 
  
 (b) Section 8 Claims. All Section 8 Claims shall be brought, commenced and maintained only in a state or federal court of competent jurisdiction situated in the County of Cook or the County of DuPage, State of Illinois.
Executive and the Company each hereby (i) consents to the exercise of jurisdiction over his or its person and property by any court of competent jurisdiction situated in the County of Cook or the County of DuPage, State of Illinois for the
enforcement of any claim, case or controversy based on or arising under Section 8 of this Agreement; (ii) waives any and all personal or other rights to object to such jurisdiction for such purposes; and (iii) waives any objection which it may have
to the laying of venue of any such action, suit or proceeding in any such court. 
  
 19. INDEMNIFICATION AND INSURANCE. 
  
 (a) General. The Company shall indemnify Executive, and shall promptly pay to Executive, in advance of the final disposition of Proceeding to which Executive is a Party by reason of his service in his Official Capacity, the
reasonable Expenses incurred by Executive in such Proceeding, in each case to the maximum extent permitted or required by Maryland law as in effect on the date hereof and as amended from time to time, including, without limitation, Section 2-418 of
the Maryland General Corporation Law (the “MGCL”); provided that: (i) the Company shall not be obligated to pay or advance any amounts otherwise indemnifiable or payable hereunder if and to the extent that Executive has otherwise actually
received such payment or advance under any insurance policy or any other contract or agreement to which Executive is a Party, including, without limitation, the Bank Employment Contract or any directors’ and officers’ liability insurance
policy maintained by the Company, the Bank or any affiliate of either; and (ii) the Company shall only pay and advance Expenses under procedures permitted or required by applicable law. For the purposes of this Section 19, the terms
“Expenses,” “Official Capacity,” “Party” and “Proceeding” shall have the meanings provided in Section 2-418 of the MGCL, as in effect on the date hereof. 
  
 (b) Successful Defense of Claims. If a claim for indemnification under
this Section 19 is based on Executive’s successful defense of a Proceeding, Executive shall be deemed to have been successful in the defense of a claim, issue or matter asserted in such Proceeding if it is dismissed pursuant to a settlement
agreement that is approved by the Company in writing, or if such claim, issue or matter is otherwise dismissed, on the merits or otherwise, with or without prejudice. If Executive is successful in the defense of one or more but less than all claims,
issues or matters asserted or arising in a Proceeding, the Company shall indemnify Executive for all Expenses actually and reasonably incurred by Executive or on his behalf in connection with each claim, issue or matter that Executive has
successfully defended. In such event, Expenses shall be allocated on a reasonable and proportionate basis among the claims, issues and matters that have been successfully defended, and among any that have not been successfully defended. 

 

 Page 18 of 23 

 (c) Procedures. To seek indemnification or the advance of Expenses hereunder, Executive shall
submit to the Company a written request therefor, which shall: (i) describe with reasonable particularity the claim that has been made or threatened against Executive and the reasons why Executive believes that it is lawful and appropriate for the
Company to indemnify and/or pay, advance or reimburse Expenses to Executive in connection therewith; and (ii) contain or include such documentation and information as is reasonably available to Executive and is reasonably necessary to enable the
Board of Directors or a committee thereof, or if applicable, special legal counsel to the Board of Directors, to determine whether to approve, deny or otherwise respond to such request. Such determination shall be made and communicated to Executive
in writing as soon as reasonably practicable, but in no case more than thirty (30) days of the Company’s receipt of Executive’s request. In any Proceeding commenced to enforce Executive’s entitlement to indemnification or the advance
of Expenses, the Company shall have the burden of proving that Executive is not entitled to indemnification or the advance of Expenses, as the case may be. All other procedures with respect to indemnification and the payment, advancement or
reimbursement of Expenses in connection with a Proceeding to which Executive is a Party by reason of his service in his Official Capacity shall be as provided in the charter or bylaws of the Company and Maryland law. 
  
 (d) Survival of Rights and Benefits. The rights and benefits provided
to Executive under this Section 19 shall survive the termination or expiration of this Agreement and shall not be deemed to be exclusive of any other rights or benefits to which Executive may at any time be entitled under Maryland law or any other
applicable law, the charter or bylaws of the Company, or any other agreement to which Executive is a Party. No amendment, alteration or repeal of any applicable Maryland law or any provision of the charter or bylaws of the Company shall: (i) have
the effect of reducing, limiting or restricting the rights and benefits that were available to Executive under this Section 19 based on such law or provision as in effect on the date hereof; or (ii) limit or restrict any right of or benefit to
Executive hereunder in respect of any action taken or omitted by Executive in his official capacity prior to such amendment, alteration or repeal. 
  
 20. COSTS AND LEGAL FEES. 
  
 (a) Payment to Executive. Except as provided in Section 18(a) hereof, in the event any dispute or controversy arising under or in connection
with any provision of this Agreement other than Section 8 hereof is resolved on the merits in favor of Executive pursuant to an arbitration award or final judgment, order or decree of a court of competent jurisdiction (the time for appeal therefrom
having expired and no appeal having been perfected), the Company shall be obligated to pay Executive, within thirty (30) after the date on which such judgment becomes final and not subject to further appeal, all reasonable costs and legal fees paid
or incurred by Executive in connection with such dispute or controversy. 
  
 (b) Payment to the Company. Except as provided in Section 18(a) hereof, in the event any dispute or controversy arising under or in connection with Section 8 of this Agreement is resolved on the merits
in favor of the Company pursuant to an arbitration award or final judgment, order or decree of a court of competent jurisdiction (the time for appeal therefrom having expired and no appeal having been perfected), Executive shall be obligated to pay
the Company, within thirty (30) after the date on which such judgment becomes final and not subject to further appeal, all reasonable costs and legal fees paid or incurred by the Company in connection with such dispute or controversy. 
  

 Page 19 of 23 

 21. NO CONFLICTS. 
  
 Executive has heretofore advised the Company and hereby represents that the execution and delivery of this Agreement and the
performance of the obligations hereunder do not and will not conflict with, or result in any default, violation or breach of any contract or agreement to which Executive is a party, or of any legal duty of Executive. 
  
 22. SURVIVAL. 
  
 The rights and obligations of Executive and the Company under Sections 6, 8,
13, 17, 18, 19 and 20 of this Agreement shall survive the termination of Executive’s employment and the termination or expiration of this Agreement. All other rights and obligations of Executive and the Company shall survive the termination or
expiration of this Agreement shall survive such termination only to the extent that they expressly contemplate future performance and remain unperformed. 
  
 23. SUCCESSORS AND ASSIGNS. 
  
 (a) Continuing Rights and Obligations. This Agreement shall be binding upon, and inure to the benefit of, Executive and his heirs,
executors, administrators and assigns, and the Company and its successors and assigns. The Company shall require any of its respective successors or assigns, whether resulting from a purchase, merger, consolidation, reorganization, conversion or a
transfer of all or substantially all of its business or assets, to expressly and unconditionally to assume and agree to perform its respective obligations under this Agreement, in the same manner and to the same extent that it would be required to
perform such obligations if no such succession or assignment had occurred. 
  
 (b) Payments to Estate or Trust. Any amounts due Executive hereunder shall be paid to Executive’s estate in the event of Executive’s death except as expressly provided herein; provided that,
notwithstanding the foregoing, Executive may, in his discretion, provide for the payment of some or all of such amounts to a trust established by Executive, and may provide for the payment of amounts payable under the Life Insurance Policy to the
beneficiaries designated by Executive. In the event that Executive desires that such amounts be paid to a trust, Executive shall notify the Company of such intention in writing and comply with any requirements of applicable law. 
  
 24. CHANGE IN CONTROL DEFINITION. 
  
 (a) For the purposes of this Agreement, including Section 5(b) hereof, the
term “Change in Control” means any of the following: 
  
 (i) any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (a “Person”), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934), directly or indirectly, of securities of the 
  

 Page 20 of 23 

 Company representing twenty percent (20%) or more of the combined voting power of the Company’s then outstanding
voting securities, provided that, notwithstanding the foregoing and for all purposes of this Section 9.3: (A) the term “Person” shall not include (1) the Company or any of its subsidiaries, (2) an employee benefit plan of the Company or
any of its subsidiaries (including the Plan), and any trustee or other fiduciary holding securities under any such plan, and (3) a corporation or other entity owned, directly or indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company; (B) no Person shall be deemed the beneficial owner of any securities acquired by such Person in an Excluded Transaction (as defined below); and (C) no director or officer of the Company or
any direct or indirect subsidiary of the Company (or any affiliate of any such director or officer) shall, by reason of any or all of such directors or officers acting in their capacities as such, be deemed to beneficially own any securities
beneficially owned by any other such director or officer (or any affiliate thereof); or 
  
 (i) the “Incumbent Directors” (as defined below) cease, for any reason, to constitute a majority of the “Whole Board” (as defined below); or 
  
 (ii) a plan of reorganization, merger, consolidation or similar transaction
involving the Company and one or more other corporations or entities is consummated, other than a plan of reorganization, merger, consolidation or similar transaction that is an “Excluded Transaction” (as defined below), or the
stockholders of the Company approve a plan of complete liquidation of the Company, or a sale, liquidation or other disposition of all or substantially all of the assets of the Company or the Bank is consummated; or 
  
 (iii) a tender offer is made for 20% or more of the outstanding voting
securities of the Company and the stockholders owning beneficially or of record 20% or more of the outstanding voting securities of the Company have tendered or offered to sell their shares pursuant to such tender offer and such tendered shares have
been accepted by the tender offeror; or 
  
 (iv) A “Potential
Change in Control” (as defined below) occurs, and the Board determines, pursuant to the vote of at majority of the Whole Board, with at least two-thirds (2/3) of the Incumbent Directors then in office voting in favor of such determination, to
deem the Potential Change in Control to be a Change in Control for the purposes of this Section 9.3. 
  
 The term “Excluded Transaction” means a plan of reorganization, merger, consolidation or similar transaction that would result in the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving corporation or any parent thereof) at least 50% of the combined
voting power of the voting securities of the entity surviving the plan of reorganization, merger, consolidation or similar transaction (or the parent of such surviving entity) immediately after such plan of reorganization, merger, consolidation or
similar transaction. 
  
 (b) For purposes of the definition of
Change in Control set forth in Section 24(a) above, the term “Incumbent Directors” means: 
  
 (i) the individuals who, on the date hereof, constitute the Board; and 
  

 Page 21 of 23 

 (ii) any new director whose appointment or election by the Board or nomination for election by the
Company’s stockholders was approved or recommended: (A) by the vote of at least two-thirds (2/3) of the Whole Board, with at least two-thirds of the Incumbent Directors then in office voting in favor of such approval or recommendation; or (B)
by a Nominating Committee of the Board whose members were appointed by the vote of at least two-thirds (2/3) of the Whole Board, with at least two-thirds of the Incumbent Directors then in office voting in favor of such appointments. 
  
 (b) For purposes of the definition of Change in Control set forth in Section
24(a) above, the term “Whole Board” means the total number of directors that the Company would have if there were no vacancies on the Board at the time the relevant action or matter is presented to the Board for approval. 
  
 (c) For purposes of the definition of Change in Control set forth in Section
24(a) above, the term “Potential Change in Control” shall mean: 
  
 (i) the public announcement by any Person of an intention to take or to consider taking actions which, if consummated, would constitute a Change in Control; or 
  
 (ii) one or more transactions, events or occurrences that result in a change
in control of the Bank or the Company within the meaning of the Home Owners Loan Act, as amended, and the applicable rules and regulations promulgated thereunder, as in effect at the time of the change in control; or 
  
 (iii) a proxy statement soliciting proxies from stockholders of the Company
is filed or distributed seeking stockholder approval of a plan of reorganization, merger, consolidation or similar transaction involving the Company and one or more other entities, but only if such plan of reorganization, merger, consolidation or
similar transaction has not been approved by the vote of at least two-thirds (2/3) of the Whole Board, with at least two-thirds (2/3) of the Incumbent Directors then in office voting in favor of such plan of reorganization, merger, consolidation or
similar transaction. 
  
 IN WITNESS WHEREOF, BankFinancial
Corporation has caused this Agreement to be executed by its duly authorized officers and directors, and Executive has signed this Agreement as of this              day of
                    , 200    . 
  

 Page 22 of 23 

					
	 BANKFINANCIAL CORPORATION
	 	 EXECUTIVE

			
	 By:
	 	  

	 	

	 	 	 	 	 F. Morgan Gasior

	 Its:
	 	  

	 	 

  
 FMG HC JJB 10-28

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