Document:

First Amendment to Limited Liability Company Operating Agreement of Colloral LLC

 Exhibit 10.1 
  
 FIRST AMENDMENT TO LIMITED LIABILITY COMPANY 
 OPERATING AGREEMENT OF COLLORAL LLC 
  
 This Agreement (“Amendment”), dated as of August 29, 2005, is made by and between AutoImmune Inc. and Deseret Laboratories, Inc. and amends the
Limited Liability Company Operating Agreement of Colloral LLC dated as of August 19, 2002 between AutoImmune and Deseret (the “Operating Agreement”). 
  

RECITALS: 
  
 A. The Members of Colloral LLC (the “Company”) have determined that the Company should enter into an agreement with Business Development
Resources, Inc. (“BDR”) under which BDR will market and sell certain products on behalf of the Company. 
  
 B. AutoImmune has agreed to contribute to the Company the capital necessary to fund the Company’s obligations under the BDR Agreement. 
  
 C. In recognition of AutoImmune’s additional capital contribution, the
parties hereto desire to amend the Operating Agreement. 
  
 NOW,
THEREFORE, in consideration of the premises and mutual agreements herein set forth, the parties hereby agree as follows: 
  
 1. The following definitions are hereby added to Section 14: 
  
 “BDR Agreement” means the Sales and Marketing Agreement by and between Business
Development Resources, Inc. and the Company effective May 23, 2005. 
  
 “BDR Funds” means a number calculated by multiplying (i) the percentage of the Company’s revenues during the applicable fiscal period
attributable to sales of any product first marketed or sold under the BDR Agreement by (ii) Company funds determined to be available for distribution under Section 5.1. 
  
 “BDR Profits” means (i) Profits multiplied by (ii) the
percentage of the Company’s revenues during the applicable fiscal period attributable to sales of any product first marketed or sold under the BDR Agreement. 
  
 “BDR Losses” means (i) revenues during the applicable
fiscal period attributable to products first marketed or sold under the BDR Agreement less (ii) the portion of expenses during the applicable fiscal period reasonably attributable to the manufacture, marketing and
sale of such products and less (iii) a portion of expenses during the applicable fiscal period that are not related to the manufacture, marketing or sale of any product (General and 

 Administrative costs), such portion to be determined based upon the percentage of the Company’s
revenues during the applicable fiscal period attributable to sales of any product first marketed or sold under the BDR Agreement. 
  
 2. Section 5.1 of the Operating Agreement is hereby amended by deleting the provision in its entirety and replacing it with the following: 
  
 5.1 Distribution of Company Funds. It is the intention of the
Company to distribute each quarter all cash and liquid assets of the Company other than such cash as the Board deems prudent to maintain in the Company in connection with the operation of the Company’s business. Except as provided in this
Section 5, all Company funds, which are determined by the Board to be available for distribution shall be distributed to the Members on a quarterly basis as follows: 
  
 (a) First, to the Members in proportion to the positive balances in their respective Capital Accounts until the balances
of Members’ Capital Accounts have been reduced to zero1; 
  
 (b) Second, after taking into account any distributions of BDR Funds to
the Members pursuant to Section 5.1(a): 
  
 (i) for remaining BDR Funds, in the following proportions: seventy-five percent (75%) to AI and twenty-five percent (25%) to Deseret, except that, notwithstanding the foregoing, once $5,000,000 has been distributed under this Section
5.1(b)(i) in a fiscal year, any additional BDR Funds will be distributed in the proportions set forth in Section 5.1(b)(ii) below; and 
  
 (ii) for available funds that are not BDR Funds and for any BDR Funds that Section 5.1(b)(i) above directs should be distributed in
accordance with this Section, in the following proportions: sixty percent (60%) to AI and forty percent (40%) to Deseret. 
  
 3. Section 6.1 of the Operating Agreement is hereby amended by deleting the provision in its entirety and replacing it with the following: 
  
 6.1 Allocation of Profits and Losses. 
  
 (a) After giving effect to the allocations set forth in Sections 10.1 and
10.2, and subject to the other provisions of Section 10 and of Section 6.2, Profits for each fiscal year shall be allocated in the following order and priority: 

	1	A portion of the funds distributed under this Section 5.1(a) shall be deemed BDR Funds, such portion to be determined by
multiplying (i) the percentage of revenues during the applicable fiscal period attributable to sales of any product first marketed or sold under the BDR Agreement by (ii) the total funds distributed under this Section 5.1(a).

  

 2 

 (i) First, in proportion to any deficit Capital Account balances, until such deficits
are eliminated2; 
  
 (ii) Second, after taking account of the allocations to the Members pursuant to Section 6.1(a)(i) (if any), the next $5,000,000 in BDR
Profits in the following proportions: (A) seventy-five percent (75%) to AI and (B) twenty-five percent (25%) to Deseret; and 
  
 (iii) Third, any remaining Profits, including, without limitation, any BDR Profits in excess of those allocated under Sections
6.1(a)(i) and (ii), in the following proportions: (A) sixty percent (60%) to AI and (B) forty percent (40%) to Deseret. 
  
 (b) After giving effect to the allocations set forth in Section 10.1 and 10.2, and subject to the other provisions of Section 10, Losses for each
fiscal year shall be allocated in the following order and priority: 
  
 (i) First, to each Member to reduce the balance in its Capital Account to zero3;

  
 (ii) Second, after taking
account of the allocations to the Members pursuant to Section 6.1(b)(i) (if any), the next $5,000,000 in BDR Losses in the following proportions: (A) seventy-five percent (75%) to AI and (B) twenty-five percent (25%) to Deseret; and 

 
 (iii) Third, any remaining Losses, including, without
limitation, any BDR Losses in excess of those allocated under Sections 6.1(b)(i) and (ii), in the following proportions: (A) sixty percent (60%) to AI and (B) forty percent (40%) to Deseret. 
  
 4. Any term used, but not defined, herein is deemed to have the meaning
ascribed to such term in the Operating Agreement. 
  
 5. This
Amendment may be executed in counterparts. Each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts together shall constitute but one and the same instrument. 
  
 6. Except as amended and modified by this Amendment, all of the terms,
provisions, agreements, covenants and conditions of the Operating Agreement are hereby affirmed and ratified. 

	2	A portion of the Profits allocated under this Section 6.1(a)(i) shall be deemed BDR Profits, such portion to be determined
by dividing BDR Profits by the total Profits for the fiscal year. 

	3	A portion of the Losses allocated under this Section 6.1(b)(i) shall be deemed BDR Losses, such portion to be determined by
dividing BDR Losses by the total Losses for the fiscal year. 

  

 3 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and
year first above written. This Amendment may be executed in one or more counterparts all of which shall be considered one and the same Amendment and each of which shall be deemed to be an original. 
  

			
	MEMBERS:
	
	AUTOIMMUNE INC.
		
	By	 	 /s/ Robert C. Bishop, Ph.D.

	 	 	 Robert C. Bishop, Ph.D.
 Chairman and
CEO

	
	DESERET LABORATORIES, INC.
		
	By	 	 /s/ Scott A. Gubler

	 	 	Scott A. Gubler
	 	 	President and CEO

  
 The Managers
hereby approve the foregoing Amendment in accordance with Sections 3.4 and 13.8 of the Operating Agreement. 
  

	
	 /s/ Robert C. Bishop, Ph.D.

	Robert C. Bishop, Ph.D.
	
	 /s/ Scott A. Gubler

	Scott A. Gubler
	
	 /s/ Mark H. Gubler

	Mark H. Gubler

  

 4EXHIBIT 10.3

 Exhibit 10.3 
  
 PROPOSED 
  THREE-YEAR EMPLOYMENT AGREEMENT 
  (BANK/COMPANY) 
  
  THIS AGREEMENT (the “Agreement”), made this
             day of             , 200    , by and among EQUITABLE FINANCIAL
CORP., a federally chartered corporation (the “Company”) EQUITABLE BANK, a federally-chartered savings bank (the “Bank”), and Richard L. Harbaugh (“Executive”). 
   
 WITNESSETH 
  
 WHEREAS, Executive serves in a position of substantial responsibility;

  
 WHEREAS, the Company and the Bank wish to assure the services
of Executive for the period provided in this Agreement; and 
  
 WHEREAS, Executive is willing to serve in the employ of the Bank on a full-time basis for said period. 
  
 NOW, THEREFORE, in consideration of the mutual covenants herein contained, and upon the other terms and conditions hereinafter provided, the parties
hereby agree as follows: 
  
  1. Employment.
Executive is employed as the Chief Executive Officer of the Bank and Chairman of the Board, Chief Executive Officer and President of the Company. Executive shall perform all duties and shall have all powers which are commonly incident to these
offices or which, consistent with these offices, are delegated to him by the Boards of Directors of the Bank or the Company. During the term of this Agreement, Executive also agrees to serve, if elected, as an officer and/or director of any
subsidiary of the Company and the Bank and in such capacity will carry out such duties and responsibilities reasonably appropriate to that office. 
   
 2. Location and Facilities. The Executive will be furnished with the working facilities and staff customary for executive officers with the
title and duties set forth in Section 1 and as are necessary for him to perform his duties. The location of such facilities and staff shall be at the principal administrative offices of the Company and the Bank, or at such other site or sites
customary for such offices. 
  
 3. Term. 

 

	 	a.	The term of this Agreement shall be (i) the initial term, consisting of the period commencing on the date of this Agreement (the “Effective Date”) and ending on the third
anniversary of the Effective Date, plus (ii) any and all extensions of the initial term made pursuant to this Section 3. 

	 	b.	Commencing on the first year anniversary date of this Agreement, and continuing on each anniversary thereafter, the disinterested members of the boards of directors of the Bank and
the Company may extend the Agreement an additional year such that the remaining term of the Agreement shall be thirty-six (36) months, unless Executive elects not to extend the term of this Agreement by giving written notice in accordance with
Section 19 of this Agreement. The Board of Directors of the Bank and the Company (the “Boards”) will review the Agreement and Executive’s performance annually for purposes of determining whether to extend the Agreement and the
rationale and results thereof shall be included in the minutes of the Board’s meeting. The Executive shall receive notice as soon as possible after such review as to whether the Agreement is to be extended. 

   
 4. Base Compensation. 
  

	 	a.	The Company and the Bank agree to pay the Executive during the term of this Agreement a base salary at the rate of
$                     per year, payable in accordance with customary payroll practices. 

   

	 	b.	The Boards shall review annually the rate of the Executive’s base salary based upon factors they deem relevant, and may maintain or increase his salary, provided that no such
action shall reduce the rate of salary below the rate in effect on the Effective Date. 

   

	 	c.	In the absence of action by the Board, the Executive shall continue to receive salary at the annual rate specified on the Effective Date or, if another rate has been established
under the provisions of this Section 4, the rate last properly established by action of the Board under the provisions of this Section 4. 

  
 5. Bonuses. The Executive shall be entitled to participate in discretionary bonuses or other incentive compensation programs that the
Company and the Bank may award from time to time to senior management employees pursuant to bonus plans or otherwise. 
  
 6. Benefit Plans. The Executive shall be entitled to participate in such life insurance, medical, dental, pension, profit sharing,
retirement and stock-based compensation plans and other programs and arrangements as may be approved from time to time by the Company and the Bank for the benefit of their employees. 
  
 7. Vacation and Leave. 
  

	 	a.	The Executive shall be entitled to vacation and other leave in accordance with policy for senior executives, or otherwise as approved by the Boards. 

 

 2 

	 	b.	In addition to paid vacation and other leave, the Executive shall be entitled, without loss of pay, to absent himself voluntarily from the performance of his employment for such
additional periods of time and for such valid and legitimate reasons as the Boards may in their discretion determine. Further, the Boards may grant to the Executive a leave or leaves of absence, with or without pay, at such time or times and upon
such terms and conditions as the Boards in their discretion may determine. 

   
 8. Expense Payments and Reimbursements. The Executive shall be reimbursed for all reasonable out-of-pocket business expenses that he shall incur in connection with his services under this Agreement upon
substantiation of such expenses in accordance with applicable policies of the Company and the Bank. 
  
  9. Automobile Allowance. During the term of this Agreement, the Executive shall be entitled to an automobile allowance on terms no
less favorable that those in effect immediately prior to the execution of this Agreement. Executive shall comply with reasonable reporting and expense limitations on the use of such automobile as may be established by the Bank from time to time, and
the Bank shall annually include on Executive’s Form W-2 any amount of income attributable to Executive’s personal use of such automobile. 
   

10. Loyalty and Confidentiality. 
  

	 	a.	During the term of this Agreement Executive: (i) shall devote all his time, attention, skill, and efforts to the faithful performance of his duties hereunder; provided, however,
that from time to time, Executive may serve on the boards of directors of, and hold any other offices or positions in, companies or organizations which will not present any conflict of interest with the Company and the Bank or any of their
subsidiaries or affiliates, unfavorably affect the performance of Executive’s duties pursuant to this Agreement, or violate any applicable statute or regulation and (ii) shall not engage in any business or activity contrary to the business
affairs or interests of the Company and the Bank. 

  

	 	b.	Nothing contained in this Agreement shall prevent or limit Executive’s right to invest in the capital stock or other securities of any business dissimilar from that of the
Company and the Bank, or, solely as a passive, minority investor, in any business. 

  

	 	c.	 Executive agrees to maintain the confidentiality of any and all information concerning the operation or financial status of the Company and the Bank; the names or
addresses of any of its borrowers, depositors and other customers; any information concerning or obtained from such customers; and any other information concerning the Company and the Bank to which he may be exposed during the course of his
employment. The Executive further agrees that, unless required by law or specifically permitted by the Board in writing, he will not 

  

 3 

 
disclose to any person or entity, either during or subsequent to his employment, any of the above-mentioned information which is not generally known to the
public, nor shall he employ such information in any way other than for the benefit of the Company and the Bank. 
  
 11. Termination and Termination Pay. Subject to Section 12 of this Agreement, Executive’s employment under this Agreement may be
terminated in the following circumstances: 
  

	 	a.	Death. Executive’s employment under this Agreement shall terminate upon his death during the term of this Agreement, in which event Executive’s estate shall be
entitled to receive the compensation due to the Executive through the last day of the calendar month in which his death occurred. 

  

	 	b.	Retirement. This Agreement shall be terminated upon Executive’s retirement under the retirement benefit plan or plans in which he participates pursuant to Section 6 of
this Agreement or otherwise. 

  

	 	c.	Disability. 

  

	 	i.	The Board or Executive may terminate Executive’s employment after having determined Executive has a Disability. For purposes of this Agreement, “Disability” means a
physical or mental infirmity that impairs Executive’s ability to substantially perform his duties under this Agreement and that results in Executive becoming eligible for long-term disability benefits under any long-term disability plans of the
Company and the Bank (or, if there are no such plans in effect, that impairs Executive’s ability to substantially perform his duties under this Agreement for a period of one hundred eighty (180) consecutive days). The Board shall determine
whether or not Executive is and continues to be permanently disabled for purposes of this Agreement in good faith, based upon competent medical advice and other factors that they reasonably believe to be relevant. As a condition to any benefits, the
Board may require Executive to submit to such physical or mental evaluations and tests as it deems reasonably appropriate. 

  

	 	ii.	 In the event of such Disability, Executive’s obligation to perform services under this Agreement will terminate. The Bank will pay Executive, as Disability
pay, an amount equal to one hundred percent (100%) of Executive’s bi-weekly rate of base salary in effect as of the date of his termination of employment due to Disability. Disability payments will be made on a monthly basis and will commence
on the first day of the month following the effective date of Executive’s termination of employment for Disability and end on the earlier of: (A) the date he returns to full-time 

   

 4 

	 	 
employment at the Bank in the same capacity as he was employed prior to his termination for Disability; (B) his death; or (C) upon attainment of age 65. Such
payments shall be reduced by the amount of any short- or long-term disability benefits payable to the Executive under any other disability programs sponsored by the Company and the Bank. In addition, during any period of Executive’s Disability,
Executive and his dependents shall, to the greatest extent possible, continue to be covered under all benefit plans (including, without limitation, retirement plans and medical, dental and life insurance plans) of the Company and the Bank, in which
Executive participated prior to his Disability on the same terms as if Executive were actively employed by the Company and the Bank. 

   

	 	d.	Termination for Cause. 

  

	 	i.	The Board may, by written notice to the Executive in the form and manner specified in this paragraph, terminate his employment at any time, for “Cause”. The Executive
shall have no right to receive compensation or other benefits for any period after termination for Cause. Termination for “Cause” shall mean termination because of, in the good faith determination of the Board, Executive’s:

   

	 	(1)	Personal dishonesty; 

  

	 	(2)	Incompetence; 

  

	 	(3)	Willful misconduct; 

  

	 	(4)	Breach of fiduciary duty involving personal profit; 

  

	 	(5)	Intentional failure to perform stated duties; 

   

	 	(6)	Willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or a final cease-and-desist order; or 

  

	 	(7)	Material breach by Executive of any provision of this Agreement. 

  

	 	ii.	Notwithstanding the foregoing, Executive shall not be deemed to have been terminated for Cause by the Company and the Bank unless there shall have been delivered to Executive a copy
of a resolution duly adopted at a meeting of such Board where in the good faith opinion of the Board, Executive was guilty of the conduct described above and specifying the particulars thereof. 

   

 5 

	 	e.	Voluntary Termination by Executive. In addition to his other rights to terminate under this Agreement, Executive may voluntarily terminate employment during the term of this
Agreement upon at least sixty (60) days prior written notice to the Boards, in which case Executive shall receive only his compensation, vested rights and employee benefits up to the date of his termination. 

  

	 	f.	Without Cause or With Good Reason. 

  

	 	i.	In addition to termination pursuant to Sections 11(a) through 11(e) the Boards, may, by written notice to Executive, immediately terminate his employment at any time for a reason
other than Cause (a termination “Without Cause”) and Executive may, by written notice to the Boards, immediately terminate this Agreement at any time within ninety (90) days following an event constituting “Good Reason” as
defined below (a termination “With Good Reason”). 

   

	 	ii.	Subject to Section 12 of this Agreement, in the event of termination under this Section 11(f), Executive shall be entitled to receive his base salary for the remaining term of the
Agreement paid in one lump sum within ten (10) calendar days of such termination. Also, in such event, Executive shall, for the remaining term of the Agreement, receive the benefits he would have received during the remaining term of the Agreement
under any retirement programs (whether tax-qualified or non-qualified) in which Executive participated prior to his termination (with the amount of the benefits determined by reference to the benefits received by the Executive or accrued on his
behalf under such programs during the twelve (12) months preceding his termination) and continue to participate in any benefit plans of the Company or the Bank that provide health (including medical and dental), or life insurance, or similar
coverage upon terms no less favorable than the most favorable terms provided to senior executives of the Company and the Bank during such period. In the event that the Company and the Bank are unable to provide such coverage by reason of Executive
no longer being an employee, the Company and the Bank shall provide Executive with comparable coverage on an individual policy basis. 

  

	 	iii.	“Good Reason” shall exist if, without Executive’s express written consent, the Company and the Bank materially breach any of their respective obligations under this
Agreement. Without limitation, such a material breach shall be deemed to occur upon any of the following: 

  

	 	(1)	A material reduction in Executive’s responsibilities or authority in connection with his employment with the Company or the Bank; 

  

 6 

	 	(2)	Assignment to Executive of duties of a non-executive nature or duties for which he is not reasonably equipped by his skills and experience; 

  

	 	(3)	A reduction in salary or benefits contrary to the terms of this Agreement, or, following a Change in Control as defined in Section 12 of this Agreement, any reduction in salary or
material reduction in benefits below the amounts to which he was entitled prior to the Change in Control; 

  

	 	(4)	Termination of incentive and benefit plans, programs or arrangements, or reduction of Executive’s participation to such an extent as to materially reduce their aggregate value
below their aggregate value as of the Effective Date; 

  

	 	(5)	A requirement that Executive relocate his principal business office or his principal place of residence outside of the area consisting of a fifty (50) mile radius from the current
main office and any branch of the Bank, or the assignment to Executive of duties that would reasonably require such a relocation; or 

   

	 	(6)	liquidation or dissolution of the Company or the Bank. 

  

	 	iv.	Notwithstanding the foregoing, a reduction or elimination of the Executive’s benefits under one or more benefit plans maintained by the Company or the Bank as part of a good
faith, overall reduction or elimination of such plans or plans or benefits thereunder applicably to all participants in a manner that does not discriminate against Executive (except as such discrimination may be necessary to comply with law) shall
not constitute an event of Good Reason or a material breach of this Agreement, provided that benefits of the type or to the general extent as those offered under such plans prior to such reduction or elimination are not available to other officers
of the Company and the Bank or any company that controls either of them under a plan or plans in or under which Executive is not entitled to participate. 

  

	 	g.	Continuing Covenant Not to Compete or Interfere with Relationships. Regardless of anything herein to the contrary, following a termination by the Company and the Bank or
Executive pursuant to Section 11(f): 

  

	 	i.	Executive’s obligations under Section 10(c) of this Agreement will continue in effect; and 

  

 7 

	 	ii.	During the period ending on the first anniversary of such termination, the Executive shall not serve as an officer, director or employee of any bank holding company, bank, savings
bank, savings and loan holding company, or mortgage company (any of which, a “Financial Institution”) which Financial Institution offers products or services competing with those offered by the Bank from any office within fifty (50) miles
from the main office or any branch of the Bank and shall not interfere with the relationship of the Company and the Bank and any of its employees, agents, or representatives. 

  
 12. Termination in Connection with a Change in Control. For
purposes of this Agreement, a Change in Control means any of the following events: 
  
 (i) Merger: The Company merges into or consolidates with another corporation, or merges another corporation into the Company, and as a result less than a majority of the combined voting power of the resulting
corporation immediately after the merger or consolidation is held by persons who were stockholders of the Company immediately before the merger or consolidation. 
  
 (ii) Acquisition of Significant Share Ownership: There is filed or required to be filed a report on Schedule 13D or
another form or schedule (other than Schedule 13G) required under Sections 13(d) or 14(d) of the Securities Exchange Act of 1934, if the schedule discloses that the filing person or persons acting in concert has or have become the beneficial owner
of 25% or more of a class of the Company’s voting securities, but this clause (b) shall not apply to beneficial ownership of Company voting shares held in a fiduciary capacity by an entity of which the Company directly or indirectly
beneficially owns 50% or more of its outstanding voting securities. 
  
 (iii) Change in Board Composition: During any period of two consecutive years, individuals who constitute the Company’s Board of Directors at the beginning of the two-year period cease for any reason to constitute at least a
majority of the Company’s Board of Directors; provided, however, that for purposes of this clause (iii), each director who is first elected by the board (or first nominated by the board for election by the stockholders) by a vote of at least
two-thirds (2/3) of the directors who were directors at the beginning of the two-year period shall be deemed to have also been a director at the beginning of such period; or 
  
 (iv) Sale of Assets: The Company sells to a third party all or substantially all of its assets. 
  

 8 

 Notwithstanding anything in this Agreement to the contrary, in no event shall reorganization of the Bank
from the mutual holding company form or organization to the full stock holding company form of organization (including the elimination of the mutual holding company) constitute a “Change in Control” for purposes of this Agreement.

  

	 	a.	Termination. If within the period ending two (2) years after a Change in Control, (i) the Company and the Bank shall terminate the Executive’s employment Without Cause,
or (ii) Executive voluntarily terminates his employment With Good Reason, the Company and the Bank shall, within ten calendar days of the termination of Executive’s employment, make a lump-sum cash payment to him equal to 2.99 times the
Executive’s average Annual Compensation over the five (5) most recently completed calendar years ending with the year immediately preceding the effective date of the Change in Control. In determining Executive’s average Annual
Compensation, Annual Compensation shall include base salary and any other taxable income, including but not limited to amounts related to the granting, vesting or exercise of restricted stock or stock option awards, commissions, bonuses (whether
paid or accrued for the applicable period), as well as, retirement benefits, director or committee fees and fringe benefits paid or to be paid to Executive or paid for Executive’s benefit during any such year, profit sharing, employee stock
ownership plan and other retirement contributions or benefits, including to any tax-qualified plan or arrangement (whether or not taxable) made or accrued on behalf of Executive of such year. The cash payment made under this Section 12(a) shall be
made in lieu of any payment also required under Section 11(f) of this Agreement because of a termination in such period. Executive’s rights under Section 11(f) are not otherwise affected by this Section 12. Also, in such event, the Executive
shall, for a thirty-six (36) month period following his termination of employment, receive the benefits he would have received over such period under any retirement programs (whether tax-qualified or nonqualified) in which the Executive participated
prior to his termination (with the amount of the benefits determined by reference to the benefits received by the Executive or accrued on his behalf under such programs during the twelve (12) months preceding the Change in Control) and continue to
participate in any benefit plans of the Company and the Bank that provide health (including medical and dental), or life insurance, or similar coverage upon terms no less favorable than the most favorable terms provided to senior executives of the
Bank during such period. In the event that the Company and the Bank are unable to provide such coverage by reason of the Executive no longer being an employee, the Company and the Bank shall provide the Executive with comparable coverage on an
individual policy. 

   

	 	b.	The provisions of Section 12 and Sections 14 through 25, including the defined terms used is such sections, shall continue in effect until the later of the expiration of this
Agreement or two (2) years following a Change in Control. 

  

 9 

  13. Indemnification and Liability Insurance. Subject to and limited by Section
26(f) of this Agreement, the Bank and the Company shall provide the following: 
   

	 	a.	Indemnification. The Company and the Bank agree to indemnify the Executive (and his heirs, executors, and administrators), and to advance expenses related thereto, to the
fullest extent permitted under applicable law and regulations against any and all expenses and liabilities reasonably incurred by him in connection with or arising out of any action, suit, or proceeding in which he may be involved by reason of his
having been a director or Executive of the Company, the Bank or any of their subsidiaries (whether or not he continues to be a director or Executive at the time of incurring any such expenses or liabilities) such expenses and liabilities to include,
but not be limited to, judgments, court costs, and attorney’s fees and the cost of reasonable settlements, such settlements to be approved by the Board, if such action is brought against the Executive in his capacity as an Executive or director
of the Company and the Bank or any of their subsidiaries. Indemnification for expense shall not extend to matters for which the Executive has been terminated for Cause. Nothing contained herein shall be deemed to provide indemnification prohibited
by applicable law or regulation. Notwithstanding anything herein to the contrary, the obligations of this Section 13 shall survive the term of this Agreement by a period of six (6) years. 

  

	 	b.	Insurance. During the period in which indemnification of the Executive is required under this Section, the Company and the Bank shall provide the Executive (and his heirs,
executors, and administrators) with coverage under a directors’ and Executives’ liability policy at the expense of the Company and the Bank, at least equivalent to such coverage provided to directors and senior Executives of the Company
and the Bank. 

  
  14. Reimbursement of
Executive’s Expenses to Enforce this Agreement. The Company and the Bank shall reimburse the Executive for all reasonable out-of-pocket expenses, including, without limitation, reasonable attorney’s fees, incurred by the Executive
in connection with successful enforcement by the Executive of the obligations of the Company and the Bank to the Executive under this Agreement. Successful enforcement shall mean the grant of an award of money or the requirement that the Company and
the Bank take some action specified by this Agreement: (i) as a result of court order; or (ii) otherwise by the Company and the Bank following an initial failure of the Company and the Bank to pay such money or take such action promptly after
written demand therefor from the Executive stating the reason that such money or action was due under this Agreement at or prior to the time of such demand. 
   
  15. Limitation of Benefits under Certain Circumstances. If the payments and benefits pursuant to Section
12 of this Agreement, either alone or together with other payments and benefits which the Executive has the right to receive from the Company and the Bank, would 

   

 10 

  
constitute a “parachute payment” under Section 280G of the Code, the payments and benefits pursuant to Section 12 shall be reduced or revised, in
the manner determined by the Executive, by the amount, if any, which is the minimum necessary to result in no portion of the payments and benefits under Section 12 being non-deductible to the Company and the Bank 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 and benefits to be made pursuant to Section 12 shall be based upon the opinion of the Company and the Bank’s independent
public accountants and paid for by the Company and the Bank. In the event that the Company, the Bank and/or the Executive do not agree with the opinion of such counsel, (i) the Company and the Bank shall pay to the Executive the maximum amount of
payments and benefits pursuant to Section 12, as selected by the Executive, which such opinion indicates there is a high probability of such payments and benefits being deductible to the Company and the Bank and not subject to the imposition of the
excise tax imposed under Section 4999 of the Code and (ii) the Company and the Bank may request, and the Executive shall have the right to demand that they request, a ruling from the IRS as to whether the disputed payments and benefits pursuant to
Section 12 have such consequences. Any such request for a ruling from the IRS shall be promptly prepared and filed by the Company and the Bank, but in no event later than thirty (30) days from the date of the opinion of counsel referred to above,
and shall be subject to the Executive’s approval prior to filing, which shall not be unreasonably withheld. The Company, the Bank and the Executive agree to be bound by any ruling received from the IRS and to make appropriate payments to each
other to reflect any such rulings, together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code. 
   
 16. Injunctive Relief. If there is a breach or threatened breach of Section 11(g) of this Agreement or the prohibitions upon disclosure
contained in Section 10(c) of this Agreement, the parties agree that there is no adequate remedy at law for such breach, and that the Company and the Bank shall be entitled to injunctive relief restraining the Executive from such breach or
threatened breach, but such relief shall not be the exclusive remedy hereunder for such breach. The parties hereto likewise agree that the Executive, without limitation, shall be entitled to injunctive relief to enforce the obligations of the
Company and the Bank under this Agreement. 
  
 17.
Successors and Assigns. 
  

	 	a.	This Agreement shall inure to the benefit of and be binding upon any corporate or other successor of the Company and the Bank which shall acquire, directly or indirectly, by merger,
consolidation, purchase or otherwise, all or substantially all of the assets or stock of the Company and the Bank. 

  

	 	b.	Since the Company and the Bank are contracting for the unique and personal skills of Executive, Executive shall be precluded from assigning or delegating his rights or duties
hereunder without first obtaining the written consent of the Company and the Bank. 

  

 11 

 18. No Mitigation. Executive shall not be required to mitigate the amount of any payment
provided for in this Agreement by seeking other employment or otherwise and no such payment shall be offset or reduced by the amount of any compensation or benefits provided to Executive in any subsequent employment. 
  
 19. Notices. All notices, requests, demands and other
communications in connection with this Agreement shall be made in writing and shall be deemed to have been given when delivered by hand or 48 hours after mailing at any general or branch United States Post Office, by registered or certified mail,
postage prepaid, addressed to the Company and/or the Bank at their principal business offices and to Executive at his home address as maintained in the records of the Company and the Bank. 
  
 20. No Plan Created by this Agreement. Executive, the Company
and the Bank expressly declare and agree that this Agreement was negotiated among them and that no provision or provisions of this Agreement are intended to, or shall be deemed to, create any plan for purposes of the Employee Retirement Income
Security Act or any other law or regulation, and each party expressly waives any right to assert the contrary. Any assertion in any judicial or administrative filing, hearing, or process that such a plan was so created by this Agreement shall be
deemed a material breach of this Agreement by the party making such an assertion. 
  
 21. Amendments. No amendments or additions to this Agreement shall be binding unless made in writing and signed by all of the parties, except as herein otherwise specifically provided. 
  
 22. Applicable Law. Except to the extent preempted by Federal
law, the laws of the State of Nebraska shall govern this Agreement in all respects, whether as to its validity, construction, capacity, performance or otherwise. 
  
 23. 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. 
  
 24. Headings. Headings contained herein are for convenience of reference only. 
  
 25. Entire Agreement. This Agreement, together with any understanding or modifications thereof as agreed to in
writing by the parties, shall constitute the entire agreement among the parties hereto with respect to the subject matter hereof, other than written agreements with respect to specific plans, programs or arrangements described in Sections 5 and 6.

  
 26. Required Provisions. In the event any of the
foregoing provisions of this Section 26 are in conflict with the terms of this Agreement, this Section 26 shall prevail. 
  

 12 

	 	a.	The Bank’s board of directors may terminate Executive’s employment at any time, but any termination by the Bank, other than Termination for Cause, shall not prejudice
Executive’s right to compensation or other benefits under this Agreement. Executive shall not have the right to receive compensation or other benefits for any period after Termination for Cause as defined in Section 11(d) hereinabove.

   

	 	b.	If Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or 8(g)(1)
of the Federal Deposit Insurance Act, 12 U.S.C. §1818(e)(3) or (g)(1); the Bank’s obligations under this contract shall be suspended as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice are
dismissed, the Bank may in its discretion: (i) pay Executive all or part of the compensation withheld while their contract obligations were suspended; and (ii) reinstate (in whole or in part) any of the obligations which were suspended.

  

	 	c.	If Executive is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under Section 8(e)(4) or 8(g)(1) of the Federal
Deposit Insurance Act, 12 U.S.C. §1818(e)(4) or (g)(1), all obligations of the Bank under this contract shall terminate as of the effective date of the order, but vested rights of the contracting parties shall not be affected.

  

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

  

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

   

	 	f.	Any payments made to employees pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with 12 U.S.C. §1828(k) and FDIC regulation 12
C.F.R. Part 359, Golden Parachute and Indemnification Payments. 

  

 13 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first set forth
above. 
  

					
	Attest:	 	EQUITABLE FINANCIAL CORP.
			
	  

	 	By:	 	

	 	 	 	 	On behalf of the Board of Directors
		
	Attest:	 	EQUITABLE BANK
			
	  

	 	By:	 	

	 	 	 	 	Chairman of the Board of Directors
		
	Witness:	 	EXECUTIVE
	  

	 	  

	 	 	Richard L. Harbaugh

   

 14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]