Document:

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                                                                   EXHIBIT 10.14

                              EMPLOYMENT AGREEMENT

      AGREEMENT, dated this 3rd day of December 2004, between CFS Bancorp, Inc.,
a Delaware Corporation (the "Company"), a federally chartered savings bank, and
Zoran Koricanac (the "Executive").

                                   WITNESSETH

      WHEREAS, the Executive is presently an officer of Citizens Financial
Services, FSB ("Bank") a wholly owned subsidiary of the Company; and

      WHEREAS, the Company and the desires to be ensured of the Executive's
continued active participation in the business of the Bank and the Company; and

      WHEREAS, the Company desires to enter into an agreement with the Executive
with respect to his employment therewith; and

      WHEREAS, in order to induce the Executive to remain in the employ of the
Company and in consideration of the Executive's agreeing to remain in the employ
of the Company, the parties desire to specify the severance benefits which shall
be due the Executive by the Company in the event that his employment with the
Company is terminated under specified circumstances;

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

      1. DEFINITIONS. The following words and terms shall have the meanings set
forth below for the purposes of this Agreement:

      a) Agreement Date. The "Agreement Date" shall be the date first set forth
above.

      b) Base Salary. "Base Salary" shall have the meaning set forth in Section
4(a) hereof.

      c) Cause. Termination of the Executive's employment for "Cause" shall mean
termination because of 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
material breach of any provision of this Agreement.

      d) Change in Control. "Change in Control" means the occurrence of any of
the following: (i) an event that would be required to be reported in response to
Item 501 of Form 8-K or Item 6(e) of Schedule 14A of Regulation 14A pursuant to
the 1934 Act, or any successor thereto, whether or not any class of securities
of the Company (as defined below) is registered under the 1934 Act; (ii) any
"person" is or becomes the "beneficial owner" (as defined in Rule 13d-3 under
the 1934 Act), directly or indirectly, of securities of the Company representing
20%

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or more of the combined voting power of the Company's then outstanding
securities except for any securities purchased by the Company; or (iii) during
any period of thirty-six consecutive months during the term of an Option,
individuals who at the beginning of such period constitute the Board of
Directors of the Company cease for any reason to constitute at least a majority
thereof unless the election, or the nomination for election by stockholders, of
each new director was approved by a vote of at least two-thirds of the directors
then still in office who were directors at the beginning of the period.

      i)    For purposes of the definition of "Change in Control," a Person or
            group of Persons does not include the CFS Bancorp, Inc. Employee
            Stock Ownership Plan Trust which forms a part of the CFS Bancorp,
            Inc. Employee Stock Ownership Plan (the "ESOP"), or any other
            employee benefit plan, subsidiary or affiliate of the Company, and
            the outstanding shares of common stock of the Company, on a fully
            diluted basis, include all shares owned by the ESOP, whether
            allocated or unallocated to the accounts of participants,
            thereunder.

      ii)   For purposes of the definition of "Change in Control," the term
            "Person" means any natural person, proprietorship, partnership,
            corporation, limited liability company, organization, firm,
            business, joint venture, association, trust or other entity and any
            government agency, body or authority.

      e) Code. "Code" shall mean the Internal Revenue Code of 1986, as amended.

      f) Company. "Company" means CFS Bancorp, Inc. a Delaware Corporation, its
subsidiaries, successors and assigns for purposes of this Agreement.

      g) Definitive Agreement. A "Definitive Agreement" is an agreement entered
into by the Company which is intended to result in a Change of Control of the
Company and which has been publicly announced on a Form 8-K filed by the
Company.

      h) Date of Termination. "Date of Termination" shall mean (i) if the
Executive's employment is terminated for Cause or for Disability, the date
specified in the Notice of Termination, and (ii) if the Executive's employment
is terminated for any other reason, the date on which a Notice of Termination is
given or as specified in such Notice.

      i) Disability. Termination by the Company of the Executive's employment
based on "Disability" shall mean termination because of any physical or mental
impairment which qualifies the Executive for disability benefits under the
applicable long-term disability plan maintained by the Company or the Company
or, if no such plan applies, which would qualify the Executive for disability
benefits under the Federal Social Security System.

      j) Good Reason. Termination by the Executive of the Executive's employment
for "Good Reason" shall mean termination by the Executive within twenty-four
(24) months following a Change in Control of the Company based on:

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      i)    Without the Executive's express written consent, the failure to
            elect or to re-elect or to appoint or to re-appoint the Executive to
            the office of Senior Vice President of the Bank or a material
            adverse change made by the Company in the Executive's functions,
            duties or responsibilities as Senior Vice President of the Company;

      ii)   Without the Executive's express written consent, a reduction by
            either of the Employers in the Executive's Base Salary as the same
            may be increased from time to time or, except to the extent
            permitted by Section 3(b) hereof, a reduction in the package of
            fringe benefits provided to the Executive, taken as a whole;

      iii)  The principal executive office of either of the Employers is
            relocated more than twenty miles from Dyer, Indiana;

      iv)   Any purported termination of the Executive's employment for
            Disability or Retirement which is not effected pursuant to a Notice
            of Termination satisfying the requirements of paragraph (l) below;

      v)    The failure by the Company to obtain the assumption of and agreement
            to perform this Agreement by any successor; or

      vi)   Notification to the Executive pursuant to Section 2(b) hereof that
            his term of employment will not be extended.

      k)    IRS. "IRS" shall mean the Internal Revenue Service.

      l)    Notice of Termination. Any purported termination of the Executive's
employment by the Company for any reason, including without limitation for
Cause, Disability or Retirement, or by the Executive for any reason, including
without limitation for Good Reason, shall be communicated by written "Notice of
Termination" to the other party hereto. For purposes of this Agreement, a
"Notice of Termination" shall mean a dated notice which (i) indicates the
specific termination provision in this Agreement relied upon, (ii) sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of Executive's employment under the provision so indicated, (iii)
specifies a Date of Termination, which shall be not less than thirty (30) nor
more than ninety (90) days after such Notice of Termination is given, except in
the case of the Company's termination of Executive's employment for Cause, which
shall be effective immediately; and (iv) is given in the manner specified in
Section 9 hereof.

      m)    Retirement. "Retirement" shall mean voluntary termination by the
Executive after the Executive attains the age sixty-five (65).

      n)    Trigger Event. A "Trigger Event" shall be the execution of a
Definitive Agreement.

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      2. TERM OF EMPLOYMENT.

      a) As of the Agreement Date, the Company will employ the Executive to
perform such executive and managerial duties at such times and in such manner as
the company may from time to time direct. Unless otherwise provided herein, the
Executive acknowledges and agrees that the Executive serves at the will of the
Company, and that this Agreement shall not be construed as a contract for
employment for a specific term.

      b) Following a Trigger Event, as defined in Section (n), the employment
term of the Executive shall be a period of one year commencing as of the date
thereof (the "Trigger Date"), subject to earlier termination as provided herein.
Beginning on a Trigger Date, and on each day thereafter, the term of this
Agreement shall be extended for a period of one day in addition to the
then-remaining term, provided that the Company has not given notice to the
Executive in writing at least 60 days prior to such day that the term of the
Agreement shall not be extended further. Reference herein to the term of this
Agreement shall refer to both such initial term and such extended terms.

      c) During his employment with the Company, the Executive shall perform
such executive services for the Company as may be consistent with his titles and
from time to time assigned to him by the Company's Board of Directors. The
Executive further agrees to serve without additional compensation as an officer
and director of any of the Company's subsidiaries and agrees that any amounts
received from such corporation may be offset against the amounts due hereunder.
In addition, it is agreed that the Company may assign the Executive to one of
its subsidiaries for payroll purposes.

      3. LOYALTY, CONFIDENTIALITY AND NON-COMPETITION

      a) The Executive shall devote his full time and best efforts to the
performance of his duties while employed with the Company. During such time, the
Executive shall not, at any time or place, either directly or indirectly engage
in any business or activity in competition with the business affairs or
interests of the Company or be a director, officer or consultant to any bank,
savings and loan association, credit union, thrift, savings bank, or similar
institution in the Chicago CMSA.

      b) For purposes of this Agreement, directly or indirectly engaging in any
business activity in competition with the business or affairs of the Company
includes, but is not limited to, serving or acting as an owner, partner, agent,
beneficiary, or employee of any person, firm or corporate entity so engaged;
except that nothing herein contained shall be deemed to prevent or limit the
right of employee to invest any of his surplus funds in the capital stock or
other securities of any corporation whose stock or securities are publicly owned
or are regularly traded on any public exchange, nor shall anything herein
contained be deemed to prevent employee from investing or limit employee's right
to invest his surplus funds in real estate.

      c) All information relating to business of the Company including, but not
limited to, that business obtained or serviced by the Company and all customer
listings, contact lists, expiration

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                                       5

cards, asset reports, instruments, documents, papers and other material used in
connection with such business, shall be the exclusive property of the Company.
The Executive shall keep all such information and material confidential; none of
it will be copied, reproduced or duplicated without the express written
permission of the Company, and Executive shall return all material containing
such information to the Company upon its request or upon termination of
employment. Executive also agrees that he will not utilize the confidential
information or trade secrets of the Company, either directly or indirectly, for
any purposes except performance of his responsibilities and in furtherance of
the Company's business, unless otherwise expressly authorized by the Company in
writing in advance.

      d) Executive agrees that, during his employment, and for a period of one
(1) year following the date of his involuntary termination of employment for
Cause, or his voluntary termination without Good Reason, the Executive:

      i)    will not solicit any of the Company's past or current customers or
            clients for the benefit of anyone other than Company or its
            affiliates;

      ii)   will not divulge the names of any of the Company's past or then
            current customers to any other person, corporation or entity; and

      iii)  will not, either directly or indirectly, induce or solicit any
            person to leave the employ of the Company.

      4. COMPENSATION AND BENEFITS.

      a) The Company shall compensate and pay the Executive for his services
during the term of this Agreement at a minimum base salary of $139,000 per year
("Base Salary"), which may be increased from time to time in such amounts as may
be determined by the Board of Directors of the Company and may not be decreased
without the Executive's express written consent. In addition to his Base Salary,
the Executive shall be entitled to receive during the term of this Agreement
such bonus payments as may be determined by the Board of Directors of the
Employers.

      b) During his employment with the Company, the Executive shall be entitled
to participate in and receive the benefits of any pension or other retirement
benefit plan, profit sharing, stock option, employee stock ownership, or other
plans, benefits and privileges given to employees and executives of the Company,
to the extent commensurate with his then duties and responsibilities, as fixed
by the Board of Directors. The Company shall not make any changes in such plans,
benefits or privileges which would adversely affect the Executive's rights or
benefits thereunder, unless such change occurs pursuant to a program applicable
to all executive officers of the Company and does not result in a
proportionately greater adverse change in the rights of or benefits to the
Executive as compared with any other executive officer of the Company. Nothing
paid to the Executive under any plan or arrangement presently in effect or made
available in the future shall be deemed to be in lieu of the salary payable to
the Executive pursuant to Section 4(a) hereof.

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                                       6

      c) During his employment with the Company, the Executive shall be entitled
to paid annual vacation in accordance with the policies as established from time
to time by the Board of Directors. The Executive shall not be entitled to
receive any additional compensation from the Employers for failure to take a
vacation, nor shall the Executive be able to accumulate unused vacation time
from one year to the next, except to the extent authorized by the Board of
Directors.

      d) During the Executive's employment with the Company, the Company will
provide suitable office space, desk, chairs, filing cabinets, telephones and
other usual and customary office furniture, fixtures and equipment adequate for
the efficient performance of the duties assigned to the Executive.

      e) During the Executive's employment with the Company, the Company will
provide to the Executive, at the Employer's cost, all perquisites which other
Senior Vice Presidents of the Company are generally entitled to receive,
including the payment of his annual dues at a health club.

      f) During the term of this Agreement, the Company will provide to
Executive the use of an automobile of the Company's choice and will replace the
automobile with a new one at no less often than once every four years. The
Company will pay all automobile operating expenses incurred by Executive in the
performance of an Executive's company duties. The Company will procure and
maintain in force an automobile liability policy for the automobile with
coverage, including Executive, in the minimum amount of $1,000,000 combined
single limit on bodily injury and property damage.

      5. EXPENSES. The Company shall reimburse the Executive or otherwise
provide for or pay for all reasonable expenses incurred by the Executive in
furtherance of or in connection with the business of the Company, including, but
not by way of limitation, automobile expenses and other traveling expenses, and
all reasonable entertainment expenses (whether incurred at the Executive's
residence, while traveling or otherwise), subject to such reasonable
documentation and other limitations as may be established by the Board of
Directors of the Company. If such expenses are paid in the first instance by the
Executive, the Company shall reimburse the Executive therefor.

      6. TERMINATION.

      a) The Company shall have the right, at any time upon prior Notice of
Termination, to terminate the Executive's employment hereunder for any reason,
including without limitation termination for Cause, Disability or Retirement,
and the Executive shall have the right, upon prior Notice of Termination, to
terminate his employment hereunder for any reason.

      b) In the event that (i) the Executive's employment is terminated by the
Company following the occurrence of a Trigger Event for other than Cause,
Disability, Retirement or the Executive's death or (ii) such employment is
terminated by the Executive (a) due to a material breach of this Agreement by
the Company, which breach has not been cured within fifteen (15) days after a
written notice of non-compliance has been given by the Executive to the
Employers, or

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(b) for Good Reason, then the Company shall, subject to the provisions of
Section 7 hereof, if applicable:

      A)    pay to the Executive, in either twelve (12) equal monthly
            installments beginning with the first business day of the month
            following the Date of Termination or in a lump sum within five
            business days of the Date of Termination (at the Executive's
            election), a cash severance amount equal to the Executive's Base
            Salary plus cash incentive bonuses earned during the previous year,
            regardless of when paid, and

      B)    maintain and provide for a period ending at the earlier of (i) the
            expiration of the remaining term of employment pursuant hereto prior
            to the Notice of Termination or (ii) the date of the Executive's
            full-time employment by another employer (provided that the
            Executive is entitled under the terms of such employment to benefits
            substantially similar to those described in this subparagraph (B)),
            at no cost to the Executive, the Executive's continued participation
            in all group insurance, life insurance, health and accident
            insurance, disability insurance and other employee benefit plans,
            programs and arrangements offered by the Company in which the
            Executive was entitled to participate immediately prior to the Date
            of Termination excluding stock plans and bonuses, provided, however,
            that in the event that the Executive's participation in any plan,
            program or arrangement as provided in this subparagraph is barred,
            or during such period any such plan, program or arrangement is
            discontinued or the benefits thereunder are materially reduced, the
            Company shall arrange to provide the Executive with benefits
            substantially similar to those which the Executive was entitled to
            receive under such plans, programs and arrangements immediately
            prior to the Date of Termination.

      7. WITHHOLDING. All payments required to be made by the Company hereunder
to the Executive shall be subject to the withholding of such amounts, if any,
relating to tax and other payroll deductions as the Company may reasonably
determine should be withheld pursuant to any applicable law or regulation.

      8. ASSIGNABILITY. The Company may assign this Agreement and its rights and
obligations hereunder in whole, but not in part, to any corporation, bank or
other entity with or into which the Company may hereafter merge or consolidate
or to which the Company may transfer all or substantially all of its assets, if
in any such case said corporation, bank or other entity shall by operation of
law or expressly in writing assume all obligations of the Company hereunder as
fully as if it had been originally made a party hereto, but may not otherwise
assign this Agreement or its rights and obligations hereunder. The Executive may
not assign or transfer this Agreement or any rights or obligations hereunder.

      9. NOTICE. For the purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by certified or
registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth below:

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       a)To the Company:             Corporate Secretary
                                     Citizens Financial Services, FSB
                                     707 Ridge Road
                                     Munster, Indiana  46321

       b)To the Executive:           Zoran Koricanac
                                     2741 Wood Drive
                                     Dyer, IN 46311

      10. AMENDMENT; WAIVER. No provisions of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by the Executive and such officer or officers as may be
specifically designated by the Board of Directors of the Company to sign on its
behalf. No waiver by any party hereto at any time of any breach by any other
party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.

      11. GOVERNING LAW. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the United States
where applicable and otherwise by the substantive laws of the State of Indiana.

      12. NATURE OF OBLIGATIONS. Nothing contained herein shall create or
require the Company to create a trust of any kind to fund any benefits which may
be payable hereunder, and to the extent that the Executive acquires a right to
receive benefits from the Company hereunder, such right shall be no greater than
the right of any unsecured general creditor of the Company.

      13. HEADINGS. The section headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

      14. VALIDITY. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other
provisions of this Agreement, which shall remain in full force and effect.

      15. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

      16. REGULATORY PROHIBITION. Notwithstanding any other provision of this
Agreement to the contrary, the Executive's employment and the terms of this
Agreement is subject to continued approval by the Company's regulators. In the
event of the Executive's termination of employment with the Company for Cause or
by virtue of order by a count or regulatory body, all employment relationships
and managerial duties with the Bank or the Company shall immediately cease.

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                                       9

Furthermore, following such termination, the Executive will not, directly or
indirectly, influence or participate in the affairs or the operations of the
Company.

      17. PAYMENT OF COSTS AND LEGAL FEES. In the event any dispute or
controversy arising under or in connection with this Agreement is resolved in
favor of any party, whether by judgment, arbitration or settlement, the party
shall be entitled to the payment of all legal fees incurred by the prevailing
party in resolving such dispute or controversy.

      18. ENTIRE AGREEMENT. This Agreement embodies the entire agreement between
the Company and the Executive with respect to the matters agreed to herein. All
prior agreements between the Company and the Executive with respect to the
matters agreed to herein are hereby superseded and shall have no force or
effect.

      IN WITNESS WHEREOF, this Agreement has been executed as of the date first
above written.

Attest:                                                 CFS BANCORP, INC.

/s/ Monica F. Sullivan                                  By:
----------------------
                                                        /s/ Thomas F. Prisby
                                                        --------------------

                                                        EXECUTIVE

                                                        /s/ Zoran Koricanac
                                                        -------------------<PAGE>

                                                                   EXHIBIT 10.15

                              AMENDED AND RESTATED
                         SUPPLEMENTAL ESOP BENEFIT PLAN
                              OF CFS BANCORP, INC.
                      AND CITIZENS FINANCIAL SERVICES, FSB

      This Amended and Restated Supplemental ESOP Excess Benefit Plan ("Plan")
of CFS Bancorp, Inc. ("Company") and Citizens Financial Services, FSB ("Bank")
was first adopted effective as of May 17, 1999, and amended and restated
effective as of November 19, 2001. The Plan is established and maintained by the
Company and the Bank for the purpose of permitting the officers listed in
Appendix A attached hereto, (which may be amended by the Company and/or the Bank
from time to time hereafter) who will be participating in the CFS Bancorp, Inc.
Employee Stock Ownership Plan ("ESOP") to receive allocations representing
shares of common stock of the Company pursuant to this Plan in excess of the
number of shares of common stock of the Company which are allocable to their
accounts within the ESOP ("ESOP Allocation") under the limitation imposed by
Sections 401(a)(17), 414 and 415 of the Internal Revenue Code of 1986, as
amended, or as a result of the maximum amount of compensation which may be taken
into consideration for the purposes of the ESOP.

      The Plan is an unfunded plan maintained for the purpose of providing
deferred compensation for selected officers of the Company and the Bank, each of
whom is a member of a select group of management or highly compensated employees
for purposes of Title I of the Employee Retirement Income Security Act of 1974,
as amended ("ERISA").

      Accordingly, the Company and the Bank hereby adopt the Plan pursuant to
the terms and provisions set forth below:

                                   ARTICLE ONE

                                   DEFINITIONS

      In addition to those terms defined above, the following terms shall have
the meanings hereinafter set forth whenever used herein:

1.1. "Board" means the Boards of Directors of the Company and the Bank.

1.2. "Code" means the Internal Revenue Code of 1986, as amended from time to
time, and any regulations relating thereto.

1.3 Change in Control" means the occurrence of any of the following: (i) the
acquisition of control of the Company as defined in 12 C.F.R. Section 574.4,
unless a presumption of control is successfully rebutted or unless the
transaction is exempted by 12 C.F.R. Section 574.3(c)(vii), or any successor to
such sections; (ii) an event that would be required to be reported in response
to Item 1(a) of Form 8-K or Item 6(e) of Schedule 14A of Regulation 14A pursuant
to the

<PAGE>

Securities Exchange Act of 1934, as amended ("Exchange Act"), or any successor
thereto, whether or not any class of securities of the Company is registered
under the Exchange Act; (iii) any "person" (as such term is used in Sections
13(d) and 14(d) of the Exchange Act, but excluding CFS Bancorp, Inc. and any
stock benefit plan, including this Plan, of CFS Bancorp, Inc. or any subsidiary
thereof) is or becomes the "beneficial owner" (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Employer
representing 20% or more of the combined voting power of the Employer's then
outstanding securities; (iv) the stockholders of the Company approve (or, in the
event no approval of the Company's stockholders is required, the Company
consummates) a merger, consolidation, share exchange, division or other
reorganization or transaction involving the Employer ("Fundamental Transaction")
with any other corporation or entity, other than a Fundamental Transaction which
results in both (a) 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 entity) at least 60% of
the combined voting power of the surviving entity immediately after such
Fundamental Transaction, and (b) the members of the Board of Directors of the
Employer immediately prior thereto continuing to represent at least 60% of the
members of the Board of Directors of the surviving entity; or (v) during any
period of three consecutive years, individuals who at the beginning of such
period constitute the Board of Directors of the Company cease for any reason to
constitute at least a majority thereof unless the election, or the nomination
for election by stockholders, of each new director was approved by a vote of at
least two-thirds of the directors then still in office who were directors at the
beginning of the period.

1.4 "Company Common Stock" means shares of common stock of the Company.

1.5 "ESOP Allocation" means the number of shares allocable to the individual
account of a participant in the ESOP pursuant to Article 5 of the ESOP.

1.6 "Participant" means a salaried employee of the Company and/or the Bank who
is a participant in the ESOP, who is a member of a select group of management or
highly compensated employees within the meaning of Section 201 (2) of the ERISA
and who is selected by the Board to participate in the Plan.

1.7 "Plan Year" means the 12-consecutive-month period ending December 31 of each
year.

1.8 "Stock Unit" means a bookkeeping unit used for the purpose of crediting
amounts to the account of a Participant, each such Stock Unit being equivalent
to one share of Company Common Stock.

1.9 "Supplemental ESOP Allocation" shall mean the number of Stock Units
allocated to a Participant's account pursuant to Article Three of the Plan.

1.10 Words in the masculine gender shall include the feminine and the singular
shall include the plural, and vice versa, unless qualified by the context. Any
headings used herein are included for ease of reference only, and are not to be
construed so as to alter the terms hereof.

<PAGE>

                                   ARTICLE TWO

                                   ELIGIBILITY

      A salaried employee of the Company and/or the Bank who is eligible to
receive the benefit of an ESOP Allocation, the total amount of which is reduced
by reason of the limitation on the amount of compensation which may be taken
into account for the purpose of calculating allocations pursuant to Sections
401(a)(17), 414 and 415 of the Code shall be eligible to be selected by the
Boards of Directors of the Company and the Bank to participate in the Plan.

                                  ARTICLE THREE

                          SUPPLEMENTAL ESOP ALLOCATIONS

      A Participant in the Plan shall receive a Supplemental ESOP Allocation of
Stock Units each year at the same time that allocations of Company Common Stock
related to Company Contributions (as such term is defined in Section 4.01 of the
ESOP) are made pursuant to Section 5.04 of the ESOP. The number of Stock Units
allocable to a Participant for any Plan Year shall be an amount equal to the
difference between (a) and (b) below:

            (a) The ESOP Allocation which would have been allocated to the
      Participant for the Plan Year, as determined by Article IV of the ESOP and
      the definition of "Compensation" in Section 2.13 of the ESOP without
      giving effect to the limitation imposed by Sections 401(a)(17), 414 and
      415 of the Code on the maximum amount of compensation which may be taken
      into consideration for the purposes of the ESOP;

            LESS

            (b) The ESOP Allocation actually allocated to the account of the
      Participant in the ESOP for the Plan Year.

Supplemental ESOP Allocations made for the benefit of a Participant for any Plan
Year shall be credited to a bookkeeping account maintained under the Plan in the
name of each Participant.

                                  ARTICLE FOUR

                   INVESTMENT OF SUPPLEMENTAL ESOP ALLOCATIONS

4.1 INVESTMENT OF FUNDS. Investment of amounts credited hereunder to the account
of a Participant shall be treated as if they were actually invested in the ESOP
account of the Participant and shall be credited with gains and losses at the
same time and in the same manner as is applicable to amounts invested in the
ESOP account of such Participant.

<PAGE>

4.2 FORMATION OF TRUST. In connection with the adoption of the Plan, the Company
and the Bank have elected to form a trust ("Trust") in order to permit
contributions from the Company or the Bank to purchase and hold shares of
Company Common Stock and other assets, subject to compliance with all applicable
securities laws. If the Company and the Bank elect to contribute to the Trust to
fund their obligations under the Plan, a Participant shall have no right to
demand the transfer to him of stock or other assets from the Company and the
Bank or from such Trust. Any assets held in the Trust, including shares of
Company Common Stock, may be distributed to a Participant in payment of part or
all of the Company's and the Bank's obligations under the Plan.

                                  ARTICLE FIVE

                             VESTING; DISTRIBUTIONS

  5.1. VESTING. The vested portion of a Participant's account shall be a
  percentage of the total amount credited to the account determined on the basis
  of the Participant's number of Years of Service" (as defined in Section 2.45
  (or any successor thereto) of the ESOP) according to the following schedule:

<TABLE>
<S>                                                     <C>
Years of Service                                        Percentage
Less than 5 years                                            0%
          5                                                100%
</TABLE>

      In determining Years of Service for purposes of vesting under the Plan,
Years of Service with the Company or the Bank prior to adoption of this Plan
shall be included.

      Notwithstanding the above vesting schedule, a Participant shall be 100%
vested in his account upon attainment of "Normal Retirement Date" (as defined in
Section 2.32 (or any successor thereto) of the ESOP).

In addition, notwithstanding the above vesting schedule, a Participant will be
100% vested in his account upon (i) the effective date of a Change of Control of
the Company or (ii) the termination of the Plan.

5.2 Distribution. The vested portion of the amounts credited to a Participant's
account shall be distributed in such number of installments as may be directed
by the Participant in his or her election relating to such account (provided
that the period for payment of such installments shall not exceed ten years and
be more frequent than quarterly) and shall be in the same form and commence at
the same time as benefits shall be distributed to a Participant's pursuant to
Article Seven of the ESOP; provided, however, in the event of a Change in
Control of the Company payments in settlement of a Participant's account
(including an account with respect to which one or more installment payments
have previously been made) shall be made no later than fifteen business days
following the effective date of such Change in Control.

<PAGE>

      If a Participant should die before distribution of the vested portion of
his account pursuant to the Plan has been made to him, any remaining vested
amounts shall be distributed to his beneficiary in the method designated by the
Participant in a writing delivered to the Company and the Bank prior to his
death. If a Participant has not designated a beneficiary, or method of
distribution, or if no designated beneficiary is living on the date of
distribution, such vested amounts shall be distributed to those persons entitled
to receive distributions of the Participant's account under the ESOP and in the
same method as distribution is made under the ESOP.

                                   ARTICLE SIX

                           ADMINISTRATION OF THE PLAN

6.1. ADMINISTRATION BY THE COMPANY AND THE BANK. The Company and the Bank shall
be responsible for the general operation and administration of the Plan and for
carrying out the provisions thereof.

6.2. GENERAL POWERS OF ADMINISTRATION. All provisions set forth in the ESOP with
respect to the administrative powers and duties of the Company and the Bank,
expenses of administration, and procedures for filing claims shall also be
applicable with respect to the Plan, The Company and the Bank shall be entitled
to rely conclusively upon all tables, valuations, certificates, opinions and
reports furnished by any actuary, accountant, controller, counsel or other
person employed or engaged by the Company and the Bank with respect to the Plan.

                                  ARTICLE SEVEN

                            AMENDMENT OR TERMINATION

7.1. AMENDMENT OR TERMINATION. The Company and the Bank reserve the right to
amend or terminate the Plan when, in the sole opinion of the Company and the
Bank such amendment or termination is advisable. Any such amendment or
termination shall be made pursuant to a resolution of the Board and shall be
effective as of the date of such resolution. Notwithstanding the foregoing, this
Plan shall not be amended, modified or terminated in any respect in
contemplation of a Change in Control of the Company. For purposes of this
Section 7.1, an amendment, modification or termination in contemplation of a
Change in Control of the Company shall be deemed to have occurred if a Change in
Control of the Company occurs within twelve months of any amendment,
modification or termination of this Plan. In such event, any such amendment,
modification or termination shall be null and void unless such amendment or
modification has been consented to in writing by the Participants at the time of
such amendment or modification.

<PAGE>

7.2. EFFECT OF AMENDMENT OR TERMINATION. No amendment or termination of the Plan
shall directly or indirectly reduce the vested portion of any account held
hereunder as of the effective date of such amendment or termination. Upon
termination of the Plan, distribution of vested amounts credited to the account
of a Participant shall be made to the Participant or his beneficiary in the
manner and at the time described in Section 5.2 of the Plan. No additional
credits of ESOP Allocations shall be made to the account of a Participant and no
additional Years of Service (within the meaning of Section 5. 1) shall be
credited after termination of the Plan, but the Company and the Bank shall
continue to credit gains and losses pursuant to Article Four until the vested
balance of his account has been fully distributed to the Participant or his
beneficiary.

                                 ARTICLE EIGHT

                               GENERAL PROVISIONS

8.1. PARTICIPANT'S RIGHTS UNSECURED. The right of a Participant or his
designated beneficiary to receive a distribution hereunder shall be an unsecured
claim against the general assets of the Company and the Bank, and neither the
Participant nor a designated beneficiary shall have any rights in or against any
specific assets of the Company and the Bank.

8.2. GENERAL CONDITIONS. Except as otherwise expressly provided herein, all
terms and conditions of the ESOP applicable to an ESOP Allocation will also be
applicable to an allocation of Stock Units pursuant to this Plan. Nothing in
this Plan shall operate or be construed in any way to modify, amend or affect
the terms and provisions of the ESOP.

8.3. NO GUARANTEE OF BENEFITS. Nothing contained in the Plan shall constitute a
guaranty by the Company and the Bank or any other person or entity that the
assets of the Company and the Bank will be sufficient to pay any benefit
hereunder.

8.4. NO ENLARGEMENT OF EMPLOYEE RIGHTS. No Participant shall have any right to
receive a distribution of contributions made under the Plan except in accordance
with the terms of the Plan. Establishment of the Plan shall not be construed to
give any Participant the right to be retained in the service of the Company and
the Bank.

8.5. SPENDTHRIFT PROVISION. No interest of any person or entity in, or right to
receive a distribution under, the Plan shall be subject in any manner to sale,
transfer, assignment, pledge, attachment, garnishment, or other alienation or
encumbrance of any kind; nor may such interest or tight to receive a
distribution be taken, either voluntarily or involuntarily for the satisfaction
of the debts of, or other obligations or claims against, such person or entity,
including claims for alimony, support, separate maintenance and claims in
bankruptcy proceedings.

8.6. APPLICABLE LAW. Federal law shall construed and administered under the laws
of the State of Indiana to the extent such laws are not superseded by federal
law.

<PAGE>

8.7. INCAPACITY OF RECIPIENT. If any person entitled to a distribution under the
Plan is deemed by the Company and the Bank to be incapable of personally
receiving and giving g a valid receipt for such payment, then, unless and until
claim therefor shall have been made by a duly appointed guardian or other legal
representative of such person, the Company and the Bank may provide for such
payment or any part thereof to be made to any other person or institution then
contributing toward or providing for the care and maintenance of such person.
Any such payment shall be a payment for the account of such person and a
complete discharge of any liability of the Company, the Bank and the Plan
therefor.

8.8. CORPORATE SUCCESSORS. The Plan shall not be automatically terminated by the
transfer or sale of assets of the Company and the Bank. However, notwithstanding
anything contained herein to the contrary, this Plan shall automatically
terminate as of the effective date of a Change in Control of the Company, as
defined in Article 1.3 hereof.

8.9. UNCLAIMED BENEFIT. Each Participant shall keep the Company and the Bank
informed of his current address and the current address of his designated
beneficiary. The Company and the Bank shall not be obligated to search for the
whereabouts of any person. If the location of a Participant is not made known to
the Company and the Bank within three years after the date on which payment of
the Participant's account may first be made, payment may be made as though the
Participant had died at the end of the three-year period. If, within one
additional year after such three-year period has elapsed, or, within three years
after the actual death of a Participant, the Company or the Bank is unable to
locate any designated beneficiary of the Participant, then the Company and the
Bank shall have no further obligation to pay any benefit hereunder to such
Participant or designated beneficiary and such benefit shall be irrevocably
forfeited.

8.10. LIMITATIONS ON LIABILITY. Notwithstanding any of the preceding provisions
of the Plan, neither the Company and the Bank nor any individual acting as
employee or agent of the Company and the Bank shall be liable to any
Participant, former Participant or other person for any claim, loss, liability
or expense incurred in connection with the Plan.

      IN WITNESS WHEREOF, CFS Bancorp, Inc. and Citizens Financial Services, FSB
have caused this Plan to be duly amended and restated on this 19th day of
November, 2001.

CFS BANCORP, INC.
Attest:

/s/ Monica F. Sullivan                By /s/ Thomas F. Prisby
----------------------                   ---------------------
Secretary                             CEO and Chairman

CITIZENS FINANCIAL SERVICES, FSB
Attest:

/s/ Monica F. Sullivan                By /s/ James W. Prisby
----------------------                   ---------------------
Secretary                             President

<PAGE>

                                   APPENDIX A

The Company and the Bank have designated the following persons as Participants
in its Amended and Restated Supplemental ESOP Benefit Plan:

                                            Thomas F. Prisby

                                            James W. Prisby

                                            John T. Stephens

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