Document:

EXHIBIT 10(b)

 

CHANGE IN CONTROL SEVERANCE AGREEMENT

 

THIS

CHANGE IN CONTROL SEVERANCE AGREEMENT (“Agreement”) is made and entered into as

of this 1st day of March 2000, by and between First Security Federal

Savings Bank (hereinafter referred to as the “Association” whether in mutual or

stock form), and Harry I. Kucewicz (the “Employee”).

 

WHEREAS,

the Employee is currently serving as Treasurer and Chief Financial Officer of

the Association; and

 

WHEREAS,

the Association has converted to capital stock form as a subsidiary of First

SecurityFed Financial, Inc. (the “Holding Company”); and

 

WHEREAS,

the board of directors of the Association (“Board of Directors”) recognizes

that, as is the case with publicly held corporations generally, the possibility

of a change in control of the Holding Company and/or the Association may exist

and that such possibility, and the uncertainty and questions which it may raise

among management, may result in the departure or distraction of key management

personnel to the detriment of the Association, the Holding Company and their

respective stockholders; and

 

WHEREAS,

the Board of Directors believes it is in the best interests of the Association

to enter into this Agreement with the Employee in order to assure continuity of

management of the Association and to reinforce and encourage the continued

attention and dedication of the Employee to the Employee’s assigned duties

without distraction in the face of potentially disruptive circumstances arising

from the possibility of a change in control of the Holding Company or the

Association, although no such change is now contemplated; and

 

WHEREAS,

the Board of Directors has approved and authorized the execution of this

Agreement with the Employee to take effect as stated in Section 2 hereof;

 

NOW,

THEREFORE, in consideration of the foregoing and of’ the respective covenants

and agreements of the parties herein, it is AGREED as follows:

 

1.                                       Definitions.

 

(a)                                  The

term “Change in Control” means (1) an event of a nature that (i) results in a change

in control of the Association or the Holding Company within the meaning of the

Home Owners’ Loan Act of 1933 and 12 C.F.R. Part 574 as in effect on the date

hereof; or (ii) would be required to be reported in response to Item I of the

current report on Form 8-K as in effect on the date hereof, pursuant to Section

13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”); (2)

any person (as the term is used in Section 13(d) and 14(d) of the Exchange Act)

is or becomes the beneficial owner (as defined in Rule l3d-3 under the Exchange

Act), directly or indirectly of securities of the Association or the Holding

Company representing 20% or more of the Association’s or the Holding Company’s

 

 

outstanding securities; (3) individuals who are members

of the board of directors of the Association or the Holding Company on the date

hereof (the “Incumbent Board”) cease for any reason to constitute at least a

majority thereof, provided that any person becoming a director subsequent to

the date hereof whose election was approved by a vote of at least

three-quarters of the directors comprising the Incumbent Board, or whose

nomination for election by the Holding Company’s stockholders was approved by

the nominating committee serving under an Incumbent Board, shall be considered

a member of the Incumbent Board; or (4) a reorganization, merger,

consolidation, sale of all or substantially all of the assets of the

Association or the Holding Company or a similar transaction in which the

Association or the Holding Company is not the resulting entity.  The term “Change in Control” shall not

include an acquisition of securities by an employee benefit plan of the

Association or the Holding Company or the acquisition of securities of the

Association by the Holding Company.

 

(b)                                 The

term “Commencement Date” means March 1, 2000.

 

(c)                                  The

term “Date of Termination” means the earlier of (1) the date upon which the

Association gives notice to the Employee of the termination of the Employee’s

employment with the Association or (2) the date upon which the Employee ceases

to serve as an employee of the Association.

 

(d)                                 The

term “Involuntary Termination” means termination of the employment of Employee

without the Employee’s express written consent, and shall, subject to the last

sentence in this paragraph, include a material diminution of or interference

with the Employee’s duties, responsibilities and benefits as Treasurer and

Chief Financial Officer of the Association, including (without limitation) any

of the following actions unless consented to in writing by the Employee:  (1) a change in the principal workplace of

the Employee to a location outside of a 30 mile radius from the Association’s

headquarters office as of the date hereof; (2) a material demotion of the

Employee; (3) a material reduction in the number or seniority of other

Association personnel reporting to the Employee or a material reduction in the

frequency with which, or in the nature of the matters with respect to which,

such personnel are to report to the Employee, other than as part of a

Association- or Holding Company-­wide reduction in staff; (4) a material

adverse change in the Employee’s salary, other than as part of an overall

program applied uniformly and with equitable effect to all members of the senior

management of the Association or the Holding Company; and (5) a material

permanent increase in the required hours of work or the workload of the

Employee.  The term “Involuntary

Termination” does not include Termination for Cause or termination of employment

due to retirement, death, disability or suspension or temporary or permanent

prohibition from participation in the conduct of the Association’s affairs

under Section 8 of the Federal Deposit Insurance Act (“FDIA”) and shall not

include a material diminution of or interference with the Employee’s duties,

responsibilities and benefits unless the employee or the Association submits

written notice of involuntary termination within 120 days thereof.

 

2

 

(e)                                  The

terms “Termination for Cause” and “Terminated For Cause” mean termination of

the employment of the Employee because of the Employee’s personal dishonesty,

incompetence, willful misconduct, breach of a 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.

 

2.                                       Term.  The term of this Agreement shall be a period

of two years commencing on the Commencement Date, subject to earlier

termination as provided herein. Beginning on the first anniversary of the

Commencement Date, and on each anniversary thereafter until the first anniversary

of the Commencement Date after the Employee reaches age 65, the term of this

Agreement shall be extended for a period of one year in addition to the

then-remaining term, provided that, prior to such anniversary, the Board

of Directors of the Association explicitly reviews and approves the

extension.  Reference herein to the term

of this Agreement shall refer to both such initial term and such extended

terms.

 

3.                                       Severance

Benefits; Regulatory Provisions.

 

(a)                                  Involuntary

Termination in Connection With a Change in Control.  In the event of Involuntary Termination in

connection with or within 24 months after a Change in Control which occurs

during the term of this Agreement, the Association shall, subject to Section 4

of this Agreement, (1) pay to the Employee in a lump sum in cash within 25

business days after the Date of Termination an amount equal to 200% of the

Employee’s “base amount” as defined in Section 280G of the Internal Revenue

Code of 1986, as amended (the “Code”); and (2) provide to the Employee during

the remaining term of this Agreement such health insurance benefits as the

Association maintained for executive officers at the Date of Termination on

terms as favorable to the Employee as applied at the Date of Termination.  The total of payments to the Employee under

this section shall not exceed three times his average compensation from the

Association over the five most recent taxable years (or, if employed by the

Association for a shorter period, over the period of his employment by the

Association).

 

(b)                                 Temporary

Suspension or Prohibition.  If the

Employee is suspended and/or temporarily prohibited from participating in the

conduct of the Association’s affairs by a notice served under Section 8(e)(3)

or (g)(1) of the FDIA, 12 U.S.C. § 1818(e)(3) and (g)(1), the Association’s

obligations under this Agreement shall be suspended as of the date of service,

unless stayed by appropriate proceedings. 

If the charges in the notice are dismissed, the Association may in its

discretion (i) pay the Employee all or part of the compensation withheld while

its obligations under this Agreement were suspended and (ii) reinstate in whole

or in part any of its obligations which were suspended.

 

(c)                                  Permanent

Suspension or Prohibition.  If the

Employee is removed and/or permanently prohibited from participating in the

conduct of the Association’s affairs by an order issued under Section 8(e)(4)

or (g)(1) of the FDIA, 12 U.S.C. §

 

3

 

1818(e)(4) and (g)(1), all obligations of the

Association under this Agreement shall terminate as of the effective date of

the order, but vested rights of the contracting parties shall not be affected.

 

(d)                                 Default

of the Association.  If the

Association is in default (as defined in Section 3(x)(1) of the FDIA), all

obligations under this Agreement shall terminate as of the date of default, but

this provision shall not affect any vested rights of the contracting parties.

 

(e)                                  Termination

by Regulators.  All obligations

under this Agreement shall be terminated, except to the extent determined that

continuation of this Agreement is necessary for the continued operation of the

Association: (1) by the Director of the Office of Thrift Supervision (the

“Director”) or his or her designee, at the time the Federal Deposit Insurance

Corporation or the Resolution Trust Corporation enters into an agreement to

provide assistance to or on behalf of the Association under the authority

contained in Section 13(c) of the FDIA; or (2) by the Director or his or her

designee, at the time the Director or his or her designee approves a

supervisory merger to resolve problems related to operation of the Association

or when the Association is determined by the Director to be in an unsafe or

unsound condition.  Any rights of the

parties that have already vested, however, shall not be affected by any such

action.

 

4.                                       Certain

Reduction of Payments by the Association.

 

(a)                                  Notwithstanding

any other provision of this Agreement, if the value and amounts of benefits

under this Agreement, together with any other amounts and the value of benefits

received or to be received by the Employee in connection with a Change in

Control would cause any amount to be nondeductible by the Association or the

Holding Company for federal income tax purposes pursuant to Section 280G of the

Code, then amounts and benefits under this Agreement shall be reduced (not less

than zero) to the extent necessary so as to maximize amounts and the value of

benefits to the Employee without causing any amount to become nondeductible by

the Association or the Holding Company pursuant to or by reason of such Section

280G.  The Employee shall determine the

allocation of such reduction among payments and benefits to the Employee.

 

(b)                                 Any

payments made to the Employee pursuant to this Agreement, or otherwise, are

subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k) and

any regulations promulgated thereunder.

 

5.                                       No

Mitigation.  The Employee shall not

be required to mitigate the amount of any salary or other payment or benefit

provided for in this Agreement by seeking other employment or otherwise, nor

shall the amount of any payment or benefit provided for in this Agreement be

reduced by any compensation earned by the Employee as the result of employment

by another employer, by retirement benefits after the date of termination or

otherwise.

 

4

 

6.                                       Attorneys

and/or Fees.  If the Employee is

purportedly Terminated for Cause and the Association denies payments and/or

benefits under Section 3(a) of this Agreement on the basis that the Employee

experienced Termination for Cause rather than Involuntary Termination, but it

is determined by a court of competent jurisdiction or by an arbitrator pursuant

to Section 13 that cause as contemplated by Section 2(e) of this Agreement did

not exist for termination of the Employee’s employment, or if in any event it

is determined by any such court or arbitrator that the Association has failed

to make timely payment of any amounts or provision of any benefits owed to the

Employee under this Agreement, the Employee shall be entitled to reimbursement

for all reasonable costs, including attorneys’ fees, incurred in challenging

such termination of employment or collecting such amounts or benefits.  Such reimbursement shall be in addition to

all rights to which the Employee is otherwise entitled under this Agreement.

 

7.                                       No

Assignments.

 

(a)                                  This

Agreement is personal to each of the parties hereto, and neither party may

assign or delegate any of its rights or obligations hereunder without first

obtaining the written consent of the other party; provided, however, that the

Association shall require any successor or assign (whether direct or indirect,

by purchase, merger, consolidation or otherwise) to all or substantially all of

the business and/or assets of the Association, by an assumption agreement in

form and substance satisfactory to the Employee, to expressly assume and agree

to perform this Agreement in the same manner and to the same extent that the

Association would be required to perform it if no such succession or assignment

had taken place. Failure of the Association to obtain such an assumption

agreement prior to the effectiveness of any such succession or assignment shall

be a breach of this Agreement and shall entitle the Employee to compensation

from the Association in the same amount and on the same terms as the

compensation pursuant to Section 3(a) hereof. For purposes of implementing the

provisions of this Section 7(a), the date on which any such succession becomes

effective shall be deemed the Date of Termination.

 

(b)                                 This

Agreement and all rights of the Employee hereunder shall inure to the benefit

of and be enforceable by the Employee’s personal and legal representatives,

executors, administrators, successors, heirs, distributees, devisees and

legatees. If the Employee should die while any amounts would still be payable

to the Employee hereunder if the Employee had continued to live, all such

amounts, unless otherwise provided herein, shall be paid in accordance with the

terms of this Agreement to the Employee’s devisee, legatee or other designee or

if there is no such designee, to the Employee’s estate.

 

8.                                       Notice.  For the purposes of this Agreement, notices

and all other communications provided for in the Agreement shall be in writing

and shall be deemed to have been duly given when personally delivered or sent

by certified mail, return receipt requested, postage prepaid, to the

Association at its home office, to the attention of the Board of Directors with

a copy to the Secretary of the Association, or, if to the Employee, to such

5

 

home or other address as the Employee has most

recently provided in writing to the Association.

 

9.                                       Amendments.  No amendments or additions to this Agreement

shall be binding unless in writing and signed by both parties, except as herein

otherwise provided.

 

10.                                 Headings.  The headings used in this Agreement are

included solely for convenience and shall not affect, or be used in connection

with, the interpretation of this Agreement.

 

11.                                 Severability.  The provisions of this Agreement shall be

deemed severable and the invalidity or unenforceability of any provision shall

not affect the validity or enforceability of the other provisions hereof.

 

12.                                 Governing

Law.  This Agreement shall be

governed by the laws of the United States to the extent applicable and

otherwise by the laws of the State of Illinois.

 

13.                                 Arbitration.  Any dispute or controversy arising under or

in connection with this Agreement shall be settled exclusively by arbitration

in accordance with the rules of the American Arbitration Association then in

effect. Judgment may be entered on the arbitrator’s award in any court having

jurisdiction.

 

6

 

IN

WITNESS WHEREOF, the parties have executed this Agreement as of the day and

year first above written.

 

THIS

AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE

PARTIES.

 

	

  ATTEST:

  	

   

  	

  FIRST

  SECURITY FEDERAL SAVINGS BANK

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Terry

  Gawryk, Secretary

  	

   

  	

  By:

  	

  Julian

  E. Kulas

  
	

   

  	

   

  	

  Its:

  	

  President

  and Chief Executive Officer

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  EMPLOYEE

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Harry

  I. Kucewicz

  

 

7CHANGE IN CONTROL SEVERANCE AGREEMENT

EXHIBIT 10(c)

 

CHANGE IN CONTROL SEVERANCE AGREEMENT

 

THIS

CHANGE IN CONTROL SEVERANCE AGREEMENT (“Agreement”) is made and entered into as

of this 1st day of December 2000, by and between First Security

Federal Savings Bank (hereinafter referred to as the “Association” whether in

mutual or stock form), and Mary H. Korb (the “Employee”).

 

WHEREAS, the Employee is

currently serving as Vice President-Lending of the Association; and

 

WHEREAS,

the Association has converted to capital stock form as a subsidiary of First

SecurityFed Financial, Inc. (the “Holding Company”); and

 

WHEREAS,

the board of directors of the Association (“Board of Directors”) recognizes

that, as is the case with publicly held corporations generally, the possibility

of a change in control of the Holding Company and/or the Association may exist

and that such possibility, and the uncertainty and questions which it may raise

among management, may result in the departure or distraction of key management

personnel to the detriment of the Association, the Holding Company and their

respective stockholders; and

 

WHEREAS,

the Board of Directors believes it is in the best interests of the Association

to enter into this Agreement with the Employee in order to assure continuity of

management of the Association and to reinforce and encourage the continued

attention and dedication of the Employee to the Employee’s assigned duties

without distraction in the face of potentially disruptive circumstances arising

from the possibility of a change in control of the Holding Company or the

Association, although no such change is now contemplated; and

 

WHEREAS,

the Board of Directors has approved and authorized the execution of this

Agreement with the Employee to take effect as stated in Section 2 hereof;

 

NOW,

THEREFORE, in consideration of the foregoing and of the respective covenants

and agreements of the parties herein, it is AGREED as follows:

 

1.                                       Definitions.

 

(a)                                  The term “Change in Control” means (1) an event

of a nature that (i) results in a change in control of the Association or the

Holding Company within the meaning of the Home Owners’ Loan Act of 1933 and 12

C.F.R. Part 574 as in effect on the date hereof; or (ii) would be required to

be reported in response to Item I of the current report on Form 8-K, as in

effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934 (the “Exchange Act”); (2) any person (as the term is used

in Section 13(d) and 14(d) of the Exchange Act) is or becomes the beneficial

owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly

of securities of the Association or the Holding Company representing 20% or

more of the Association’s or the Holding Company’s 

 

 

outstanding securities; (3)

individuals who are members of the board of directors of the Association or the

Holding Company on the date hereof (the “Incumbent Board”) cease for any reason

to constitute at least a majority thereof, provided that any person becoming a

director subsequent to the date hereof whose election was approved by a vote of

at least three-quarters of the directors comprising the Incumbent Board, or

whose nomination for election by the Holding Company’s stockholders was

approved by the nominating committee serving under an Incumbent Board, shall be

considered a member of the Incumbent Board; or (4) a reorganization, merger,

consolidation, sale of all or substantially all of the assets of the

Association or the Holding Company or a similar transaction in which the

Association or the Holding Company is not the resulting entity.  The term “Change in Control” shall not

include an acquisition of securities by an employee benefit plan of the

Association or the Holding Company or the acquisition of securities of the Association

by the Holding Company.

 

(b)                                 The term “Commencement Date” means December 1,

2000.

 

(c)                                  The term “Date of Termination” means the earlier

of (1) the date upon which the Association gives notice to the Employee of the

termination of the Employee’s employment with the Association or (2) the date

upon which the Employee ceases to serve as an employee of the Association.

 

(d)                                 The term “Involuntary Termination” means

termination of the employment of Employee without the Employee’s express

written consent, and shall, subject to the last sentence in this paragraph,

include a material diminution of or interference with the Employee’s duties,

responsibilities and benefits as Vice President-Lending of the Association,

including (without limitation) any of the following actions unless consented to

in writing by the Employee:  (1) a

change in the principal workplace of the Employee to a location outside of a 30

mile radius from the Association’s headquarters office as of the date hereof;

(2) a material demotion of the Employee; (3) a material reduction in the number

or seniority of other Association personnel reporting to the Employee or a

material reduction in the frequency with which, or in the nature of the matters

with respect to which, such personnel are to report to the Employee, other than

as part of a Association- or Holding Company-wide reduction in staff; (4) a

material adverse change in the Employee’s salary, other than as part of an

overall program applied uniformly and with equitable effect to all members of

the senior management of the Association or the Holding Company; and (5) a

material permanent increase in the required hours of work or the workload of

the Employee.  The term “Involuntary

Termination” does not include Termination for Cause or termination of

employment due to retirement, death, disability or suspension or temporary or

permanent prohibition from participation in the conduct of the Association’s

affairs under Section 8 of the Federal Deposit Insurance Act (“FDIA”) and shall

not include a material diminution of or interference with the Employee’s

duties, responsibilities and benefits unless the employee or the Association

submits written notice of involuntary termination within 120 days thereof.

 

2

 

(e)                                  The terms “Termination for Cause” and “Terminated

For Cause” mean termination of the employment of the Employee because of the

Employee’s personal dishonesty, incompetence, willful misconduct, breach of a

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.

 

2.                                       Term.  The term of this Agreement shall be a period

of two years commencing on the Commencement Date, subject to earlier

termination as provided herein. Beginning on the first anniversary of the

Commencement Date, and on each anniversary thereafter until the first

anniversary of the Commencement Date after the Employee reaches age 65, the

term of this Agreement shall be extended for a period of one year in addition

to the then-remaining term, provided that, prior to such anniversary,

the Board of Directors of the Association explicitly reviews and approves the

extension.  Reference herein to the term

of this Agreement shall refer to both such initial term and such extended

terms.

 

3.                                       Severance

Benefits, Regulatory Provisions.

 

(a)                                  Involuntary Termination in Connection With a

Change in Control.  In the event of Involuntary Termination in

connection with or within 24 months after a Change in Control which occurs

during the term of this Agreement, the Association shall, subject to Section 4

of this Agreement, (1) pay to the Employee in a lump sum in cash within 25

business days after the Date of Termination an amount equal to 200% of the

Employee’s “base amount” as defined in Section 280G of the Internal Revenue

Code of 1986, as amended (the “Code”); and (2) provide to the Employee during

the remaining term of this Agreement such health insurance benefits as the

Association maintained for executive officers at the Date of Termination on

terms as favorable to the Employee as applied at the Date of Termination.  The total of payments to the Employee under

this section shall not exceed three times his average compensation from the

Association over the five most recent taxable years (or, if employed by the

Association for a shorter period, over the period of his employment by the

Association).

 

(b)                                 Temporary Suspension or Prohibition.  If the

Employee is suspended and/or temporarily prohibited from participating in the

conduct of the Association’s affairs by a notice served under Section 8(e)(3)

or (g)(1) of the FDIA, 12 U.S.C. § 1818(e)(3) and (g)(1), the Association’s

obligations under this Agreement shall be suspended as of the date of service,

unless stayed by appropriate proceedings. 

If the charges in the notice are dismissed, the Association may in its

discretion (i) pay the Employee all or part of the compensation withheld while

its obligations under this Agreement were suspended and (ii) reinstate in whole

or in part any of its obligations which were suspended.

 

(c)                                  Permanent Suspension or Prohibition.  If the

Employee is removed and/or permanently prohibited from participating in the

conduct of the Association’s affairs by an order issued under Section 8(e)(4)

or (g)(1) of the FDIA, 12 U.S.C. §

 

3

 

1818(e)(4) and (g)(1), all

obligations of the Association under this Agreement shall terminate as of the

effective date of the order, but vested rights of the contracting parties shall

not be affected.

 

(d)                                 Default of the Association.  If the

Association is in default (as defined in Section 3(x)(1) of the FDIA), all obligations

under this Agreement shall terminate as of the date of default, but this

provision shall not affect any vested rights of the contracting parties.

 

(e)                                  Termination by Regulators.  All

obligations under this Agreement shall be terminated, except to the extent

determined that continuation of this Agreement is necessary for the continued

operation of the Association: (1) by the Director of the Office of Thrift

Supervision (the “Director”) or his or her designee, at the time the Federal

Deposit Insurance Corporation or the Resolution Trust Corporation enters into

an agreement to provide assistance to or on behalf of the Association under the

authority contained in Section 13(c) of the FDIA; or (2) by the Director or his

or her designee, at the time the Director or his or her designee approves a

supervisory merger to resolve problems related to operation of the Association

or when the Association is determined by the Director to be in an unsafe or

unsound condition.  Any rights of the

parties that have already vested, however, shall not be affected by any such

action.

 

4.                                       Certain

Reduction of Payments by the Association.

 

(a)                                  Notwithstanding any other provision of this

Agreement, if the value and amounts of benefits under this Agreement, together

with any other amounts and the value of benefits received or to be received by

the Employee in connection with a Change in Control would cause any amount to

be nondeductible by the Association or the Holding Company for federal income

tax purposes pursuant to Section 28OG of the Code, then amounts and benefits

under this Agreement shall be reduced (not less than zero) to the extent

necessary so as to maximize amounts and the value of benefits to the Employee

without causing any amount to become nondeductible by the Association or the

Holding Company pursuant to or by reason of such Section 280G.  The Employee shall determine the allocation

of such reduction among payments and benefits to the Employee.

 

(b)                                 Any payments made to the Employee pursuant to

this Agreement, or otherwise, are subject to and conditioned upon their

compliance with 12 U.S.C. § 1828(k) and any regulations promulgated thereunder.

 

5.                                       No

Mitigation.  The Employee shall not

be required to mitigate the amount of any salary or other payment or benefit provided

for in this Agreement by seeking other employment or otherwise, nor shall the

amount of any payment or benefit provided for in this Agreement be reduced by

any compensation earned by the Employee as the result of employment by another

employer, by retirement benefits after the date of termination or otherwise.

 

4

 

6.                                       Attorneys

and/or Fees.  If the Employee is

purportedly Terminated for Cause and the Association denies payments and/or

benefits under Section 3(a) of this Agreement on the basis that the Employee

experienced Termination for Cause rather than Involuntary Termination, but it

is determined by a court of competent jurisdiction or by an arbitrator pursuant

to Section 13 that cause as contemplated by Section 2(e) of this Agreement did

not exist for termination of the Employee’s employment, or if in any event it

is determined by any such court or arbitrator that the Association has failed

to make timely payment of any amounts or provision of any benefits owed to the

Employee under this Agreement, the Employee shall be entitled to reimbursement

for all reasonable costs, including attorneys’ fees, incurred in challenging

such termination of employment or collecting such amounts or benefits.  Such reimbursement shall be in addition to

all rights to which the Employee is otherwise entitled under this Agreement.

 

7.                                       No

Assignments.

 

(a)                                  This Agreement is personal to each of the parties

hereto, and neither party may assign or delegate any of its rights or

obligations hereunder without first obtaining the written consent of the other

party; provided, however, that the Association shall require any successor or

assign (whether direct or indirect, by purchase, merger, consolidation or

otherwise) to all or substantially all of the business and/or assets of the

Association, by an assumption agreement in form and substance satisfactory to

the Employee, to expressly assume and agree to perform this Agreement in the

same manner and to the same extent that the Association would be required to

perform it if no such succession or assignment had taken place. Failure of the

Association to obtain such an assumption agreement prior to the effectiveness

of any such succession or assignment shall be a breach of this Agreement and

shall entitle the Employee to compensation from the Association in the same

amount and on the same terms as the compensation pursuant to Section 3(a)

hereof.  For purposes of implementing

the provisions of this Section 7(a), the date on which any such succession

becomes effective shall be deemed the Date of Termination.

 

(b)                                 This Agreement and all rights of the Employee

hereunder shall inure to the benefit of and be enforceable by the Employee’s

personal and legal representatives, executors, administrators, successors,

heirs, distributees, devisees and legatees. 

If the Employee should die while any amounts would still be payable to

the Employee hereunder if the Employee had continued to live, all such amounts,

unless otherwise provided herein, shall be paid in accordance with the terms of

this Agreement to the Employee’s devisee, legatee or other designee or if there

is no such designee, to the Employee’s estate.

 

8.                                       Notice.  For the purposes of this Agreement, notices

and all other communications provided for in the Agreement shall be in writing

and shall be deemed to have been duly given when personally delivered or sent

by certified mail, return receipt requested, postage prepaid, to the

Association at its home office, to the attention of the Board of Directors with

a copy to the Secretary of the Association, or, if to the Employee, to such

 

5

 

home or other address as the Employee has most

recently provided in writing to the Association.

 

9.                                       Amendments.  No amendments or additions to this Agreement

shall be binding unless in writing and signed by both parties, except as herein

otherwise provided.

 

10.                                 Headings.  The headings used in this Agreement are

included solely for convenience and shall not affect, or be used in connection

with, the interpretation of this Agreement.

 

11.                                 Severability.  The provisions of this Agreement shall be

deemed severable and the invalidity or unenforceability of any provision shall

not affect the validity or enforceability of the other provisions hereof.

 

12.                                 Governing

Law.  This Agreement shall be

governed by the laws of the United States to the extent applicable and

otherwise by the laws of the State of Illinois.

 

13.                                 Arbitration.  Any dispute or controversy arising under or

in connection with this Agreement shall be settled exclusively by arbitration

in accordance with the rules of the American Arbitration Association then in

effect. Judgment may be entered on the arbitrator’s award in any court having

jurisdiction.

 

6

 

IN

WITNESS WHEREOF, the parties have executed this Agreement as of the day and

year first above written.

 

THIS

AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE

PARTIES.

 

	

  ATTEST:

  	

   

  	

  FIRST

  SECURITY FEDERAL SAVINGS BANK

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Terry

  Gawryk, Secretary

  	

   

  	

  By:

  	

  Julian

  E. Kulas

  
	

   

  	

   

  	

  Its:

  	

  President

  and Chief Executive Officer

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  EMPLOYEE

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Mary

  H. Korb

  

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]