Document:

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Exhibit 10.7

TIERONE BANK

AMENDED AND RESTATED EMPLOYEE SEVERANCE PLAN

ARTICLE I

ESTABLISHMENT OF THE PLAN

     TierOne Bank (the “Bank” or the “Employer”) hereby amends and restates its 2002 Employee
Severance Plan (as amended and restated, the “Plan”), effective as of July 27, 2006.

     This Plan is being amended and restated in order to comply with the requirements of Section
409A of the Code (as defined below), including the guidance issued to date by the Internal Revenue
Service (the “IRS”) and the proposed regulations issued by the IRS in the fall of 2005.

ARTICLE II

PURPOSE OF THE PLAN

     The purpose of this Plan is to provide certain specified benefits to eligible employees as
provided herein whose employment is terminated in connection with or subsequent to a Change in
Control of either the Bank or the Bank’s parent corporation, TierOne Corporation (the “Company”).
The Bank and the Company are hereinafter collectively referred to as the “Employers”.

ARTICLE III

DEFINITIONS

     3.01 Annual Compensation. An Employee’s “Annual Compensation” for purposes of this Plan shall
be deemed to mean the aggregate base salary and cash incentive compensation earned by or paid to
the Employee by the Employers or any subsidiary thereof during the calendar year immediately
preceding the calendar year in which the Date of Termination occurs; provided, however, for
purposes of this Plan the Employee’s Annual Compensation does not include deferred compensation
earned by the Employee in a prior year but received in the calendar year immediately preceding the
calendar year in which the Date of Termination occurs.

     3.02 Cause. Termination of an Employee’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.
For purposes of this paragraph, no act or failure to act on the Employee’s part shall be considered
“willful” unless done, or omitted to be done, by the Employee not in good faith and without
reasonable belief that the Employee’s action or omission was in the best interests of the
Employers.

     3.03 Change in Control. “Change in Control” shall mean a change in the ownership of the Bank
or the Company, a change in the effective control of the Bank or the Company or a

 

 

change in the ownership of a substantial portion of the assets of the Bank or the Company as
provided under Section 409A of the Code and the regulations thereunder.

     3.04 Code. “Code” shall mean the Internal Revenue Code of 1986, as amended.

     3.05 Committee. “Committee” means a committee of two or more directors appointed by the Board
of Directors of the Bank pursuant to Article VII hereof.

     3.06 Date of Termination. “Date of Termination” shall mean (i) if an Employee’s employment is
terminated for Cause, the date on which the Notice of Termination is given, and (ii) if an
Employee’s employment is terminated for any other reason, the date specified in the Notice of
Termination.

     3.07 Disability. Disability” shall mean the Employee (i) is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months, or (ii) is, by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, receiving income replacement benefits for a period of not less
than three months under an accident and health plan covering employees of the Bank.

     3.08 Employee. “Employee” shall mean any person who at the time has been employed by the Bank
for at least 12 continuous months, excluding any Employee who has an employment or change in
control agreement with either of the Employers.

     3.09 Good Reason. Termination by an Employee of the Employee’s employment for “Good Reason”
shall mean termination by the Employee following a Change in Control based on:

     (i) Without the Employee’s express written consent, a reduction in the Employee’s base
salary as in effect immediately prior to the date of the Change in Control or as the same
may be increased from time to time thereafter;

     (ii) Without the Employee’s express written consent, the assignment of any duties or
responsibilities which are substantially diminished as compared with the Employee’s duties
and responsibilities immediately prior to a Change in Control or a material change in the
Employee’s reporting responsibilities, titles or offices as an Employee and as in effect
immediately prior to such a Change in Control, or any removal of the Employee from or any
failure to re-elect the Employee to any of such responsibilities, titles or offices, except
in connection with the termination of the Employee’s employment for Cause, Disability or
Retirement or as a result of the Employee’s death or by the Employee other than for Good
Reason;

     (iii) A change in the Employee’s principal place of employment by a distance in excess
of 50 miles from its location immediately prior to the Change in Control;

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     (iv) Any purported termination of the Employee’s employment for Disability or
Retirement which is not effected pursuant to a Notice of Termination satisfying the
requirements of Section 3.11 below; or

     (v) The failure by the Employers to obtain the assumption of and agreement to perform
this Plan by any successor as contemplated in Article V hereof.

     3.10 IRS. “IRS” shall mean the Internal Revenue Service.

     3.11 Notice of Termination. Following a Change in Control, any purported termination of an
Employee’s employment by the Employers for any reason or by an Employee 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 Plan, a “Notice of Termination” shall mean a dated notice
which (i) indicates the specific termination provision in this Plan relied upon, (ii) sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Employee’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 Employers’ termination of the Employee’s employment
for Cause, which shall be effective immediately; and (iv) is given in the manner specified in
Article VIII hereof.

     3.12 Retirement. “Retirement” shall mean voluntary termination by the Employee in accordance
with the Employers’ retirement policies, including early retirement, generally applicable to their
salaried Employees.

ARTICLE IV

BENEFITS

     4.01 Payments and Benefits Upon Termination.

     (a) If an Employee’s employment is terminated within one year subsequent to a Change in
Control by (i) the Employers for other than Cause, Disability, Retirement or the Employee’s death
or (ii) the Employee for Good Reason, then the Employers shall pay to the Employee a lump sum cash
severance amount equal to one twelfth (1/12th) of the Employee’s Annual Compensation for each year
of service with the Employers, subject to a minimum of one twelfth (1/12th) of Annual Compensation
and a maximum of 100% of Annual Compensation, plus any accrued but unused vacation leave.

     (b) If the payments pursuant to Section 4.01(a) hereof, either alone or together with other
payments and benefits which the Employee has the right to receive from the Employers, would
constitute a “parachute payment” under Section 280G of the Code, the payments payable by the
Employers pursuant to Section 4.01(a) hereof shall be reduced by the minimum amount necessary to
result in no portion of the payments payable by the Employers under Section 4.01(a) being
non-deductible to the Employers pursuant to Section 280G of the Code and subject to the excise tax
imposed under Section 4999 of the Code. The determination of any reduction in the payments to be
made pursuant to Section 4.01(a) shall be based upon the opinion of independent

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counsel selected by the Bank and paid by the Bank. Such counsel shall promptly prepare the
foregoing opinion, but in no event later than thirty (30) days from the Date of Termination, and
may use such actuaries as such counsel deems necessary or advisable for the purpose.

     (c) Nothing contained herein shall result in a reduction of any payments or benefits to which
the Employee may be entitled upon termination of employment under any circumstances other than as
specified in Section 4.01(b) set forth above, or a reduction in the payments and benefits specified
in Section 4.01(a) below zero.

     4.02 Mitigation; Exclusivity of Benefits.

     (a) An Employee shall not be required to mitigate the amount of any benefits hereunder by
seeking other employment or otherwise, nor shall the amount of any such benefits be reduced by any
compensation earned by the Employee as a result of employment by another employer after the Date of
Termination or otherwise.

     (b) The specific arrangements referred to herein are not intended to exclude any other
benefits which may be available to an Employee upon a termination of employment with the Employers
pursuant to employee benefit plans of the Employers or otherwise.

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

     4.04. Source of Payments. It is intended by the parties hereto that all payments provided in
this Plan shall be paid in cash or check from the general funds of the Bank. Further, the Company
guarantees such payment and provision of all amounts and benefits due hereunder to the Executive
and, if such amounts and benefits due from the Bank are not timely paid or provided by the Bank,
such amounts and benefits shall be paid or provided by the Company.

     4.05. No Attachment. Except as required by law, no right to receive payments under this Plan
shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge,
pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment by
operation of law, and any attempt, voluntary or involuntary, to affect any such action shall be
null, void, and of no effect.

ARTICLE V

ASSIGNMENT

     The Employers may assign this Plan and its rights and obligations hereunder in whole, but not
in part, to any corporation, bank or other entity with or into which the Bank or the Company may
hereafter merge or consolidate or to which the Bank or the Company may transfer all or
substantially all of its respective 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 Employers
hereunder as fully as if it had been originally made a party hereto, but may not otherwise assign

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this Plan or their rights and obligations hereunder. An Employee may not assign or transfer
any rights or benefits due hereunder.

ARTICLE VI

DURATION AND EFFECTIVE DATE OF PLAN

     6.01 Duration. Except in the event of a Change in Control, this Plan is subject to change or
termination, in whole or in part, at any time without notice, in the Board’s sole discretion. In
the event of a Change in Control, this Plan may not be terminated or amended to reduce the benefits
provided hereunder for a period of 13 months from the date of the Change in Control. In addition,
notwithstanding anything in this Plan to the contrary, the Employers may amend in good faith any
terms of this Plan, including retroactively, in order to comply with Section 409A of the Code.

     6.02 Effective Date. This Plan was originally effective as of October 1, 2002, and the
amendment and restatement of the Plan is effective as of July 27, 2006.

ARTICLE VII

ADMINISTRATION

     7.01 Duties of the Committee. This Plan shall be administered and interpreted by the
Committee, as appointed from time to time by the Board of Directors of the Bank pursuant to Section
7.02. The Committee shall have the authority to adopt, amend and rescind such rules, regulations
and procedures as, in its opinion, may be advisable in the administration of this Plan, including,
without limitation, rules, regulations and procedures with respect to the operation of this Plan.
The interpretation and construction by the Committee of any provisions of this Plan or any rule,
regulation or procedure adopted by it pursuant thereto shall be final and binding in the absence of
action by the Board of Directors of the Bank.

     7.02 Appointment and Operation of the Committee. The members of the Committee shall be
appointed by, and will serve at the pleasure of, the Board of Directors of the Bank. The Board from
time to time may remove members from, or add members to, the Committee, provided the Committee
shall continue to consist of two or more members of the Board. The Committee shall act by vote or
written consent of a majority of its members. Subject to the express provisions and limitations of
this Plan, the Committee may adopt such rules, regulations and procedures as it deems appropriate
for the conduct of its affairs. It may appoint one of its members to be chairman and any person,
whether or not a member, to be its secretary or agent. The Committee shall report its actions and
decisions to the Board at appropriate times but in no event less than one time per calendar year.

     7.03 Limitation on Liability. Neither the members of the Board of Directors of the Bank nor
any member of the Committee shall be liable for any action or determination made in good faith with
respect to this Plan or any rule, regulation or procedure adopted by it pursuant thereto. If a
member of the Board or the Committee is a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, by reason of anything done or not done by him in such capacity

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under or with respect to this Plan, the Bank shall, subject to the requirements of applicable
laws and regulations, indemnify such member against all liabilities and expenses (including
attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred
by him in connection with such action, suit or proceeding if he acted in good faith and in a manner
he reasonably believed to be in the best interests of the Bank and, with respect to any criminal
action or proceeding, had no reasonable cause to believe his conduct was unlawful.

ARTICLE VIII

MISCELLANEOUS

     8.01 Notice. For the purposes of this Plan, notices and all other communications provided for
in this Plan 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, with
respect to the Bank, Secretary, TierOne Bank, 1235 N Street, Lincoln, Nebraska 68508, and with
respect to an Employee, to the home address thereof set forth in the records of the Bank at the
date of any such notice.

     8.02 Governing Law. The validity, interpretation, construction and performance of this Plan
shall be governed by the laws of the United States where applicable and otherwise by the
substantive laws of the State of Nebraska.

     8.03 Nature of Employment and Obligations.

     (a) Nothing contained herein shall be deemed to create other than a terminable at will
employment relationship between the Employers and an Employee, and the Employers may terminate an
Employee’s employment at any time, subject to providing any payments specified herein in accordance
with the terms hereof.

     (b) Nothing contained herein shall create or require the Employers to create a trust of any
kind to fund any benefits which may be payable hereunder, and to the extent that an Employee
acquires a right to receive benefits from the Employers hereunder, such right shall be no greater
than the right of any unsecured general creditor of the Employers.

     8.04 Headings. The section headings contained in this Plan are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Plan.

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

     8.06 Regulatory Provisions. Notwithstanding any other provision of this Plan to the contrary,
any payments made to an Employee pursuant to this Plan, or otherwise, are subject to and
conditioned upon their compliance with (a) Section 18(k) of the Federal Deposit Insurance Act (12
U.S.C. §1828(k)) and the regulations promulgated thereunder, including 12 C.F.R. Part 359, and (b)
12 C.F.R. §563.39.

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Exhibit 10.8

AMENDED AND RESTATED

1993 SUPPLEMENTAL RETIREMENT PLAN AGREEMENT

     THIS AMENDED AND RESTATED 1993 SUPPLEMENTAL RETIREMENT PLAN AGREEMENT (“Agreement”) was
originally made and entered into as of October 27, 1993 (the “Prior Agreement”) and is hereby
amended and restated as of July 27, 2006, by and between TierOne Bank, a federally chartered
savings bank with its principal office in Lincoln, Nebraska (the “Bank”), and Gilbert G.
Lundstrom, (the “Executive”).

     The Agreement is intended to be an unfunded plan qualifying as a “top hat” plan for purposes
of Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and for
purposes of the Internal Revenue Code of 1986, as amended (the “Code”). The Agreement is being
amended and restated in order to comply with the requirements of Section 409A of the Code and the
proposed regulations issued by the IRS. No benefits payable under this Agreement shall be deemed
to be grandfathered for purposes of Section 409A of the Code.

RECITALS

     A. The Executive is currently employed by the Bank pursuant to the terms of a separate amended
and restated Employment Agreement executed as of July 27, 2006 (the “Employment Agreement”).

     B. The Bank recognizes the value of the services to be performed by the Executive and wishes
to encourage his continued employment.

     C. The Executive wishes to be assured that he will be entitled to a certain minimum amount of
additional compensation (a) if he becomes Disabled (as defined in the Employment Agreement) while
in the employ of the Bank; (b) for some definite period of time from and after his Retirement (as
defined below) from active service with the Bank; or (c) that his family will be entitled to such
compensation from and after his death either while in the employ of the Bank or after his
Retirement.

     D. The parties hereto wish to provide the terms and conditions upon which the Bank shall pay
such additional compensation to the Executive after his Disability or Retirement or to his
designated beneficiary in event of his death.

     E. The Bank desires to amend and restate the Prior Agreement in order to make changes to
comply with Section 409A of the Code, as well as certain other changes;

     NOW, THEREFORE, in consideration of the premises and of the mutual promises herein contained,
the parties agree as follows:

     1. Retirement. In consideration of the Executive’s remaining in the employ of the
Bank until his Retirement, the Bank agrees that, from and after the Retirement of the Executive
from the active service of the Bank on or after age sixty-five (65), the Bank shall thereafter pay
to the Executive an annual Supplemental Benefit (as defined herein) for a period of fifteen (15)

 

 

years from and after his Retirement, with the annual benefit payable in twelve (12) equal
monthly installments. The first monthly installment shall be paid on the first day of the month
following the lapse of six months after the date of his Retirement (or, if earlier, upon the death
of the Executive), and shall be followed by 179 monthly payments. For purposes of this Agreement,
the term “Retirement” shall mean a voluntary termination by the Executive of his employment with
the Bank on or after the date he reaches age 65 in accordance with the Bank’s retirement policies
generally applicable to salaried employees, provided that such termination of employment also
constitutes a separation from service with the Bank within the meaning of Section 409A of the Code
and the regulations thereunder.

     2. Supplemental Benefit. For purposes of this Agreement, “Supplemental Benefit” means
an amount calculated as follows: (A) the average annual compensation (excluding bonuses and
incentive compensation) received by the Executive from the Bank during the three years of
employment affording the highest such average; as reduced by (B) the annual amount paid under the
Bank’s qualified defined benefit pension plan or any disability insurance benefits purchased by the
Bank; and (C) multiplying such amount by 50% to determine the benefit payable hereunder as a
Supplemental Benefit.

     3. Death After Retirement. The Bank further agrees that, in the event of the
Executive’s death after his Retirement but prior to completing fifteen (15) years of monthly
payments, the Bank will continue to make Supplemental Benefit payments during the remainder of said
fifteen (15) year period to the Executive’s Beneficiary (as defined in the Employment Agreement).

     4. Disability. The Bank agrees that, in the event of the Disability (as defined in
the Employment Agreement) of the Executive while in the employ of the Bank, it shall pay an annual
Supplemental Benefit for up to ten (10) years, payable in equal monthly installments commencing
with the first day of the month following the lapse of six months after the date the Executive is
replaced as provided in Section 7(a) of the Employment Agreement (i) until discontinuance of such
Disability and employment is fully restored to the Executive; (ii) until the Executive becomes
eligible for the benefits provided at Retirement hereunder, which Retirement benefits shall be
exclusive of and in addition to any Disability payments, or (iii) until the death of the Executive,
whichever shall first occur. For all purposes of this Agreement, the Executive shall be considered
to be in the employ of the Bank to receive customary fringe benefits (or service credits therefor,
as the case may be) during the continuance of such disability.

     5. Death Prior to Retirement. The Bank agrees that, in the event of the Executive’s
death prior to his Retirement, the Bank will make Supplemental Benefit payments for a fifteen (15)
year period to the Executive’s Beneficiary (as defined in the Employment Agreement), with the
monthly benefits determined as set forth in Sections 1 and 2 above and commencing as of the first
day of the month following his death.

     6. Noncompetition. In consideration of the foregoing agreements of the Bank and of
the payments to be made by the Bank pursuant hereto, the Executive hereby agrees that, so long as
he remains in the active employ of the Bank, he will devote substantially all of his time, skill,
diligence and attention to the business of the Bank, and will not actively engage, either directly

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or indirectly, in any business or other activity which is or may be deemed to be in any way
competitive with or adverse to the best interests of the business of the Bank.

     7. Termination. In the event that the employment of the Executive is terminated for
any reason other than Cause (as defined in the Employment Agreement), the Bank agrees to fund a
separate split dollar policy pursuant to the Executive’s Split Dollar Agreement with the Bank dated
January 2, 1994, as amended (the “Split Dollar Agreement”) to the point of “N-Pay” and cause
ownership of such policy to be transferred if the policy is purchased in accordance with the terms
of the Split Dollar Agreement. This payment is to be made in one lump sum on the first day of the
month following the lapse of six months after the date the Executive’s employment terminates. For
purposes hereof, “N-Pay” means that the cash value of dividend additions within the policy,
together with projected further dividends, are estimated to be sufficient to pay all remaining
additional premiums required by the terms of the policy; provided, however, that if the future
dividends actually paid are less than the assumed dividends, the Bank will not be required to pay
any deficiency.

     8. Other Benefits and Programs. It is expressly understood by the parties hereto that
this Agreement relates exclusively to additional compensation for the Executive’s services and any
benefits payable under this Agreement shall be independent of, and in addition to, any other
benefits or compensation payable under the Employment Agreement of even date herewith or as may
hereinafter be amended from time to time. This Agreement does not involve a reduction in salary or
foregoing of an increase in future salary by the Executive, nor does the Agreement in any way
affect or reduce the proposed or future compensation of the Executive.

     9. Benefits Not Funded. This Agreement represents a contractual promise to pay by the
Bank, assuming satisfaction by the Executive of the requirements herein, and that said promise to
pay is not represented by notes or secured or funded in any way. If the Bank, solely at its own
discretion, shall acquire a life insurance or annuity contract or any other asset in connection
with the liabilities assumed by it hereunder, it is expressly agreed that neither the Executive nor
any Beneficiary hereunder shall have any right with respect to, or claim against, such contract or
other asset. Such contract or other asset shall not be held in any way as collateral security for
the fulfilling of the obligations of the Bank under this Agreement. Such contract or other asset
shall be and remain a general, unpledged and unrestricted asset of the Bank. The Executive may
unilaterally change the person or persons who are to receive payments hereunder following his
death, including provisions for payment to a trust or trusts, notwithstanding any other provision
hereof, by written instrument executed by him and delivered to the Bank during the Executive’s
lifetime.

     10. Nonalienation of Benefits. Neither the Executive, his designated Beneficiary nor
any other beneficiary under this Agreement shall have any power or right to transfer, assign,
anticipate, hypothecate or otherwise encumber any part or all of the amounts payable by the Bank
hereunder, nor shall such amounts be subject to seizure by any creditor of any such beneficiary, by
a proceeding at law or in equity, and no such benefit shall be transferable by operation of law in
the event of bankruptcy, insolvency or death of the Executive, his spouse, his designated
beneficiary or any other beneficiary hereunder. Any such attempted assignment or

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transfer shall be void and shall terminate this Agreement, and the Bank shall thereupon have
no further liability hereunder.

     11. Binding Effect. This Agreement, and any amendment hereto, shall be binding upon
and inure to the benefit of the Bank, its successors and assigns, and the Executive, and his
beneficiaries, heirs, executors, administrators and legal representatives.

     12. Amendment and Termination of the Agreement. This Agreement may not be amended,
altered or modified, except by a written instrument signed by the parties hereto, or their
respective successors or assigns, and may not otherwise be amended or terminated except as provided
in Section 13. Notwithstanding anything in this Agreement to the contrary, the Board of Directors
of the Bank may amend in good faith any terms of this Agreement, including retroactively, in order
to comply with Section 409A of the Code.

13. Effect of Amendment or Termination.

          (a) General. No amendment or termination of the Agreement shall directly or indirectly
reduce the Executive’s benefit held hereunder as of the effective date of such amendment or
termination. A termination of the Agreement will not be a distributable event, except in the three
circumstances set forth in Section 13(b) below.

          (b) Termination. Under no circumstances may the Agreement permit the acceleration of
the time or form of any payment under the Agreement prior to the payment events specified herein,
except as provided in this Section 13(b). The Bank may, in its discretion, elect to terminate the
Agreement in any of the following three circumstances and accelerate the payment of the entire
unpaid balance of the Participant’s vested benefits as of the date of such payment in accordance
with Section 409A of the Code:

	 	(i)	 	the Agreement is terminated within the 30 days preceding a
Change in Control of the Association (as defined in the Employment Agreement)
and (1) all substantially similar arrangements sponsored by the Bank and/or
TierOne Corporation (the “Corporation”) are terminated, and (2) the Executive
and all participants under the substantially similar arrangements receive all
of their benefits under the terminated arrangements within 12 months of the
date of termination of the arrangements,
	 
	 	(ii)	 	the Agreement is terminated and (1) all arrangements sponsored
by the Bank and/or the Corporation that would be aggregated with the Agreement
under Treasury Regulation ' 1.409A-1(c) if the Executive participated in
all of the arrangements are terminated, (2) no payments other than payments
that would be payable under the terms of the arrangements if the termination
had not occurred are made within 12 months of the termination of the
arrangements; (3) all payments are made within 24 months of the termination of
the arrangements; and (4) neither the Bank nor the Corporation adopts a new
arrangement that would be aggregated with the Plan under Treasury Regulation
' 1.409A-1(c) if the Executive

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	 	 	 	participated in both arrangements, at any time within five years following
the date of termination of the Agreement, or
	 
	 	(iii)	 	the Agreement is terminated within 12 months of a corporate
dissolution taxed under Section 331 of the Code, or with the approval of a
bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), provided that the amounts
deferred by the Executive under the Agreement are included in the Executive’s
gross income in the later of (1) the calendar year in which the termination of
the Agreement occurs, or (2) the first calendar year in which the payment is
administratively practicable.

     14. Scope of Claims Procedures. This Section is based on final regulations issued by
the Department of Labor and published in the Federal Register on November 21, 2000 and codified at
29 C.F.R. Section 2560.503-1. If any provision of this Section conflicts with the requirements of
those regulations, the requirements of those regulations will prevail.

     14.1 Initial Claim. The Participant or any beneficiary who believes he or she is
entitled to any benefit under the Plan (a “Claimant”) may file a claim with the Bank. The Bank
shall review the claim itself or appoint an individual or an entity to review the claim.

          (a) Initial Decision. The Claimant shall be notified within ninety (90) days after
the claim is filed whether the claim is allowed or denied, unless the Claimant receives written
notice from the Bank or appointee of the Bank prior to the end of the ninety (90) day period
stating that special circumstances require an extension of the time for decision, such extension
not to extend beyond the day which is one hundred eighty (180) days after the day the claims is
filed.

          (b) Manner and Content of Denial of Initial Claims. If the Bank denies a claim, it
must provide to the Claimant, in writing or by electronic communication:

	 	(i)	 	The specific reasons for the denial;
	 
	 	(ii)	 	A reference to the provision of the Agreement upon which the
denial is based;
	 
	 	(iii)	 	A description of any additional information or material that
the Claimant must provide in order to perfect the claim;
	 
	 	(iv)	 	An explanation of why such additional material or information
is necessary;
	 
	 	(v)	 	Notice that the Claimant has a right to request a review of the
claim denial and information on the steps to be taken if the Claimant wishes to
request a review of the claim denial; and

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	 	(vi)	 	A statement of the Participant’s right to bring a civil action
under Section 502(a) of ERISA following a denial on review of the initial
denial.

     14.2 Review Procedures.

          (a) Request For Review. A request for review of a denied claim must be made in
writing to the Bank within sixty (60) days after receiving notice of denial. The decision upon
review will be made within sixty (60) days after the Bank’s receipt of a request for review, unless
special circumstances require an extension of time for processing, in which case a decision will be
rendered not later than one hundred twenty (120) days after receipt of a request for review. A
notice of such an extension must be provided to the Claimant within the initial sixty (60) day
period and must explain the special circumstances and provide an expected date of decision.

          The reviewer shall afford the Claimant an opportunity to review and receive, without charge,
all relevant documents, information and records and to submit issues and comments in writing to the
Bank. The reviewer shall take into account all comments, documents, records and other information
submitted by the Claimant relating to the claim regardless of whether the information was submitted
or considered in the initial benefit determination.

          (b) Manner and Content of Notice of Decision on Review. Upon completion of its review
of an adverse claim determination, the Bank will give the Claimant, in writing or by electronic
notification, a notice containing:

	 	(i)	 	its decision;
	 
	 	(ii)	 	the specific reasons for the decision;
	 
	 	(iii)	 	the relevant provisions of the Agreement on which its decision
is based;
	 
	 	(iv)	 	a statement that the Claimant is entitled to receive, upon
request and without charge, reasonable access to, and copies of, all documents,
records and other information in the Bank’s files which is relevant to the
Claimant’s claim for benefits;
	 
	 	(v)	 	a statement describing the Claimant’s right to bring an action
for judicial review under Section 502(a) of ERISA; and
	 
	 	(vi)	 	if an internal rule, guideline, protocol or other similar
criterion was relied upon in making the adverse determination on review, a
statement that a copy of the rule, guideline, protocol or other similar
criterion will be provided without charge to the Claimant upon request.

     14.3 Calculation of Time Periods. For purposes of the time periods specified in this
Section, the period of time during which a benefit determination is required to be made begins at

6

 

the time a claim is filed in accordance with the procedures herein without regard to whether
all the information necessary to make a decision accompanies the claim. If a period of time is
extended due to a Claimant’s failure to submit all information necessary, the period for making the
determination shall be tolled from the date the notification is sent to the Claimant until the date
the Claimant responds.

     14.4 Legal Action. If the Bank fails to follow the claims procedures required by this
Section, a Claimant shall be deemed to have exhausted the administrative remedies available under
the Agreement and shall be entitled to pursue any available remedy under Section 502(a) of ERISA on
the basis that the Agreement has failed to provide a reasonable claims procedure that would yield a
decision on the merits of the claim. A Claimant’s compliance with the foregoing provisions of this
Section is a mandatory requisite to a Claimant’s right to commence any legal action with respect to
any claims for benefits under the Agreement.

     14.5 Review by the Bank. Notwithstanding anything in this Agreement to the contrary,
the Bank may determine, in its sole and absolute discretion, to review any claim for benefits
submitted by a Claimant under this Agreement.

     15. Notice. Any notice, consent or demand required or permitted to be given under the
provisions of this Agreement shall be in writing, and shall be signed by the party giving or making
the same. If such notice, consent or demand is mailed to a party hereto, it shall be sent by
United States mail, postage prepaid, addressed to such party’s last known address as shown on the
records of the Bank. The date of such mailing shall be deemed the date of notice, consent or
demand.

     16. Applicable Law. This Agreement, and the rights of the parties hereunder, shall be
governed by and construed in accordance with the laws of the State of Nebraska.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement, in duplicate, as of the
27th day of July 2006.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	ATTEST:	 	 	 	TIERONE BANK	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	/s/ Judith A. Klinkman	 	 	 	By:	 	/s/ James A. Laphen	 	 
	 

	 	 
Assistant
Secretary
	 	 	 	Title:	 	 
President
and Chief Operating Officer	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 	 	/s/ Gilbert G. Lundstrom
	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Gilbert G. Lundstrom, Executive
	 	 

7

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