Document:

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                                                                      04/99

                       CENTRAL PACIFIC BANK AND SUBSIDIARY
                      1999 ANNUAL EXECUTIVE INCENTIVE PLAN

PURPOSE:

The purpose of this plan is to reinforce the mission and corporate goals of CPB
Inc. and Central Pacific Bank (CPB). The plan is designed to help CPB attract,
retain and motivate a talented executive team. This team's performance, both as
a team and as individuals, contributes directly to serving CPB's customers and
communities, sustaining CPB's strong financial performance, and adding value for
the shareholders.

DEFINITIONS:

The following terms will have the indicated meanings throughout this document.
Whenever appropriate, words used in the singular may include the plural and
vice-versa.

"Plan" will be used throughout as a description of this particular incentive
plan.

"Company" will be used throughout as Central Pacific Bank and its subsidiaries.

"Compensation Committee" will be used throughout as the Compensation Committee
of the Board of Directors of the Company.

"CEO" will be used throughout as Chairman of the Board and Chief Executive
Officer of CPB Inc.

"Participant" will be used throughout as the individual in a given position who
is eligible to participate in this Plan.

"Base salary" will be used throughout as the base salary, excluding any other
bonus, commission payments, or other extra cash compensation on an annualized
basis, paid to the Participant on the last day of the calendar year. For
example, a Participant who is paid a monthly salary of $10,000 as of the last
day of 1999 will have an annualized base salary of $120,000 for purposes of
calculating any annual incentive payment.

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ADMINISTRATION:

The Plan will be administered by the Compensation Committee, as ratified by the
Board of Directors, who may delegate certain aspects of recordkeeping and
administration to specified individuals, at their sole discretion. The
Compensation Committee, or its specific delegates, is given full authority to
develop such rules, regulations, record keeping procedures, and communications
deemed necessary to administer the Plan and interpret its provisions. Any
determination, decision, or action of the Compensation Committee (as ratified by
the Board of Directors) in connection with this plan will be considered final
and binding upon all Participants and any person validly claiming access to a
potential award.

Payment of any award amounts will be made after audited financial statements are
made available, but no later than April 1st of the year following the Plan year.

PARTICIPATION:

Any full-time active employee of the Company who has been granted the corporate
title of Senior Vice President or above (e.g., Executive Vice President,
President) is ELIGIBLE to participate in the plan. The CEO will present annually
names, with position responsibility, to the Compensation Committee for approval
and inclusion in the Plan. The Board will approve this Participant list no later
than January 30 of the plan year. Participants will be notified in writing no
later than February 1 of the Plan year. This communication will notify
Participants of their participation and the target percentages of their
incentive.

To be eligible, the employee must have been placed on full-time active status
with the corporate title of Senior Vice President or above, no later than
October 1, 1999. Participants becoming eligible after January 1, 1999 will be
eligible for consideration of payment, pro-rated by the first day of the month
on which they met the eligibility requirements. For example, a Participant
meeting eligibility requirements on April 1, 1999 will be eligible, once
approved by the Compensation Committee, for consideration for 9/12 or 3/4 of the
potential award. Any exception to these minimum eligibility requirements must be
recommended by the CEO and approved by the Compensation Committee.

A participant must have received at least an "Accomplished" performance
appraisal rating during the calendar year to be eligible for consideration for
payment. Any exceptions from this provision must be recommended by the CEO and
approved by the Compensation Committee, at their sole discretion.

All participants in this Plan will become INELIGIBLE for participation in ANY
OTHER CPB INCENTIVE BONUS PROGRAMS.

<PAGE>

FUNDING:

The plan will be funded according to the success of CPB as measured by the
following (a) return on equity (ROE), (b) return on assets (ROA) and (c)
Efficiency Ratio. All three criteria are standard banking industry performance
measurements.

Each measure will fund the total incentive pool as follows: (a) ROE will fund
50%, (b) ROA will fund 25% and (c) Efficiency Ratio will fund 25%. For each
measure, performance below a defined measure will produce no incentive pool;
e.g., for 1999 these values are 10.25% for ROE, 1.00% for ROA and 62% for
Efficiency Ratio. Each measure will also have a maximum payout percentage; e.g.,
150% of the target pool for ROE of 17% and 150% of the target pool for ROA of
1.20% and 150% of the target pool for Efficiency Ratio of 60%. The actual amount
of the pool funded will be extrapolated, using the determined scale values,
between the minimum funded value of 25% of the pool and maximum of 150%.

The target amounts funded are calculated as the sum of each Participant's target
incentive, expressed as a percentage of base salary, multiplied by that
individual's base salary.

Total payout to all participants will be limited to twenty (20) percent of the
increase in net operating income over the 1999 budget.

The funding of the pool is described graphically in the attached diagram.

ALLOCATION OF AWARDS:

The calculation of any actual awards will be based on each Participant's base
salary, annualized, as of the last day of the calendar year (e.g., for this
Plan, December 31, 1999).

The awards, expressed as a percentage of base salary, are shown, by corporate
title, in the following table; e.g., a target incentive of 25% for Senior Vice
President. These target awards will be adjusted by the percentage of the target
pool that is funded through corporate performance. For example, if 75% of the
pool were funded, the target award for Senior Vice Presidents would be 18.75%.

ACTUAL AWARDS:

Actual awards will be calculated according to the mix of three performance
elements shown in the following table: 1) corporate (ROE, ROA and Efficiency
Ratio); 2) unit/production objectives; and 3) a discretionary amount.

The unit/production objectives will be agreed upon between each Participant and
the immediate supervising Officer by January 30 of the Plan year. These
objectives will emphasize those aspects of CPB's performance for which the
Participant is held accountable. These objectives will be submitted to the CEO
for review and thereafter reported to the Board of Directors for its approval
and subsequent filing of the report.

<PAGE>

                              Central Pacific Bank

                               Determining Payouts
<TABLE>
<CAPTION>

====================================================================================================================
                                                 Groups
====================================================================================================================
          Measures                      CEO                 COO               EVP/Group              SVPs
                                                                               Manager
------------------------------- ------------------- -------------------- ---------------------- --------------------
<S>                                   <C>                 <C>                 <C>                   <C>
          Corporate                    100%                100%                  50%                 50%
------------------------------- ------------------- -------------------- ---------------------- --------------------
       Unit/Production                   0%                  0%                  25%                 30%
         Objectives
------------------------------- ------------------- -------------------- ---------------------- --------------------
        Discretionary                    0%                  0%                  25%                 20%
------------------------------- ------------------- -------------------- ---------------------- --------------------
            Total                      100%                100%                 100%                100%
------------------------------- ------------------- -------------------- ---------------------- --------------------
        Targets as a                    30%                 30%                  30%                 25%
            % of
         Base Salary
=============================== =================== ==================== ====================== ====================
</TABLE>

The discretionary percentages will be recommended by the CEO to the Compensation
Committee for approval. These percentages and amounts may be used to reward
individual or team accomplishments not specifically measured by either corporate
financial performance or specific individual objectives.

PROJECTED COST OF THE PLAN:

See attached for estimates of payouts and list of participants.

TERMINATION OF EMPLOYMENT:

The Participant must remain actively employed by the Company on the last day of
the designated calendar year (1999 for this Plan) to be considered eligible for
any potential payment under this Plan. The Compensation Committee, at their sole
discretion must approve any exceptions to this provision.

NON-TRANSFERABILITY OF AWARD:

An award, or potential award, granted under this Plan shall not be assignable or
transferable by the Participant other than by will or the laws of descent and
distribution.

<PAGE>

NO RIGHT TO EMPLOYMENT:

This Plan does not constitute a contract between the Company and its employees.
Neither establishing this Plan or taking any action as a result of the Plan
shall be construed as giving any employee the right to be retained by the
Company for any period of time, or to be employed in any particular position, at
any particular rate of pay, or to provide any other job-related benefits.

AMENDMENT OR TERMINATION OF PLAN:

The Compensation Committee, with ratification from the Board of Directors, may
from time to time or at any time amend or terminate the Plan at their sole
discretion. Review and amendment of the Plan is expected annually when a new
Plan document will be considered for establishment. Amendment or termination of
the Plan is not expected within a Plan year, but that right is retained by the
Compensation Committee.

<PAGE>

This Plan has been approved and ratified for the Plan year 1999 on the 14th day
of April, 1999 by the CPB Board of Directors as indicated below.

<TABLE>
<S>                                            <C>
/s/ Joichi Saito                                April 14, 1999
--------------------------------------------   ---------------
/s/ Joseph F. Blanco                            April 14, 1999
--------------------------------------------   ---------------
/s/ Paul Devens                                 April 14, 1999
--------------------------------------------   ---------------
/s/ Alice F. Guild                              April 14, 1999
--------------------------------------------   ---------------
/s/ Dennis L. Hirota                            April 14, 1999
--------------------------------------------   ---------------
/s/ Clayton K. Honbo                            April 14, 1999
--------------------------------------------   ---------------
/s/ Stanley W. Hong                             April 14, 1999
--------------------------------------------   ---------------
/s/ Paul Kosasa                                 April 14, 1999
--------------------------------------------   ---------------
/s/ Gilbert J. Matsumoto                        April 14, 1999
--------------------------------------------   ---------------
/s/ Daniel M. Nagamine                          April 14, 1999
--------------------------------------------   ---------------
/s/ Naoaki Shibuya                              April 14, 1999
--------------------------------------------   ---------------
/s/ Minoru Ueda                                 April 14, 1999
--------------------------------------------   ---------------
</TABLE>

<PAGE>

                      1999 ANNUAL EXECUTIVE INCENTIVE PLAN
                                  PARTICIPANTS

<TABLE>
<S>                                       <C>
Joichi Saito                                Chairman of the Board & CEO
Naoaki Shibuya                              President & COO
Austin Imamura                              EVP Credit Administration Group Mgr.
Neal Kanda                                  EVP Finance & Operations Group Mgr.
Wayne Kirihara                              SVP & Retail Banking Group Mgr.
Alwyn Chikamoto                             SVP & Commercial Finance Group Mgr.
Walter Horikoshi                            SVP & Credit and Legal Div. Mgr.
Raymond Kurosu                              SVP & Operations Div. Mgr.
David Chang                                 SVP & Information Services Div. Mgr.

</TABLE><PAGE>

                                                                 Exhibit (10)(d)

                            COMPENSATION AND BENEFITS
                             ASSURANCE AGREEMENT FOR

                            OLD SECOND BANCORP, INC.

                               (AMENDED 3/1/2000)

                                    Page 19
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CONTENTS

<TABLE>
<CAPTION>

                                                                             PAGE

<S>               <C>                                                          <C>
Section 1.        Term of Agreement                                            1

Section 2.        Severance Benefits                                           2

Section 3.        Excise Tax                                                   5

Section 4.        Successors and Assignments                                   6

Section 5.        Restrictive Covenants                                        6

Section 6.        Miscellaneous                                                7

Section 7.        Contractual Rights and Legal Remedies                        8

</TABLE>

                                    Page 20
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COMPENSATION AND BENEFITS ASSURANCE AGREEMENT

         This COMPENSATION AND BENEFITS ASSURANCE AGREEMENT (this "Agreement")
is made, entered into, and is effective as of this 1ST DAY OF APRIL, 2000 (the
"Effective Date") by and between Old Second Bancorp, Inc. (hereinafter referred
to as the "Company") and ________________________________, (hereinafter referred
to as the "Executive").

         WHEREAS, the Executive is presently employed by The Old Second National
Bank of Aurora, Aurora, Illinois (the "Bank"), in a key management capacity; and

         WHEREAS, the Executive possesses considerable experience and knowledge
of the business and affairs of the Company concerning its policies, methods,
personnel, and operations; and

         WHEREAS, the Company is the holder, directly and indirectly, of all of
the issued and outstanding stock of the Bank; and

         WHEREAS, the Company is desirous of assuring the continued employment
of the Executive in a key management capacity, and the Executive is desirous of
having such assurances.

         NOW THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements of the parties set forth in this Agreement, and of
other good and valuable consideration including, but not limited to, the
Executive's continuing employment with the Company, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally
bound, agree as follows:

SECTION 1.        TERM OF AGREEMENT

         This Agreement will commence on the Effective Date and shall continue
in effect for one full calendar year (through March 31, 2001) (the "Initial
Term").

                  The term of this Agreement automatically shall be extended for
one additional year at the end of the initial Term, and then again after each
successive one-year period thereafter (each such one-year period following the
Initial Term a "Successive Period"). However, either party may terminate this
Agreement at the end of the Initial Term, or at the end of any Successive Period
thereafter, by giving the other party written notice of intent not to renew
delivered at least ninety (90) calendar days prior to the end of such Initial
Term or Successive Period. Except as otherwise provided, if such notice is
properly delivered by either party, this Agreement, along with all corresponding
rights, duties, and covenants, shall automatically expire at the end of the
Initial Term or Successive Period then in progress.

         In the event that a "Change in Control" of the Company occurs (as such
term is hereinafter defined) during the Initial Term or any Successive Period,
upon the effective date of such Change in Control, the term of this Agreement
shall automatically and irrevocably be renewed for a period of twenty-four (24)
full calendar months from the effective date of such Change in Control (such
24-month period being hereinafter referred to as the "Extended Period"). This
Agreement shall thereafter automatically terminate following the twenty-four
(24) month Change-in-Control renewal period. Further, this Agreement shall be
assigned to, and shall be assumed by, the purchaser in such Change in Control,
as further provided in Section 4 herein.

SECTION 2.        SEVERANCE BENEFITS

         2.1. RIGHT TO SEVERANCE BENEFITS. The Executive shall be entitled to
receive from the Company Severance Benefits as described in Paragraph 2.3 and
Section 3 herein, if during the term of this Agreement there has been a Change
in Control of the Company or the Bank (as defined in Paragraph 2.4 herein) and
if, within the Extended Period, the Executive's employment with the Bank shall
end for any reason specified in Paragraph 2.2 herein as being a Qualifying
Termination. The Severance Benefits described in Paragraphs 2.3(a) and 2.3(b)
herein shall be paid in cash to the Executive in a single lump sum as soon as
practicable following the Qualifying Termination, but in no event later than
thirty (30) calendar days from such date. Notwithstanding the foregoing,
Severance Benefits which become due pursuant to the circumstances described in
Paragraphs 2.2(c) and 4.1 shall be paid immediately.

                                    Page 21
<PAGE>

         2.2. QUALIFYING TERMINATION. The occurrence of any one or more of the
following events (i.e., a "Qualifying Termination") within the Extended Period
shall trigger the payment of Severance Benefits to the Executive, as such
benefits are described under Paragraph 2.3 herein:

                    (a) The Bank's involuntary termination of the Executive's
               employment without Cause (as such term is defined in Paragraph
               2.6 herein);

                    (b) The Executive's voluntary termination of employment for
               Good Reason (as such term is defined in paragraph 2.5 herein);
               and

          (c)  The Company or the Bank, or any successor company, commits a
               material breach of any of the provisions of this Agreement
               including, but not limited to the Company failing to obtain the
               assumption of, or the successor company refusing to assume the
               obligations of this Agreement pursuant to Paragraph 4.1 herein.

         A Qualifying Termination shall not include a termination of the
Executive's employment within ____________ (__) calendar months after a Change
in Control by reason of death, disability, the Executive's voluntary termination
without Good Reason, or the Bank's involuntary termination of the Executive's
employment for Cause.

         2.3. DESCRIPTION OF SEVERANCE BENEFITS. In the event that the Executive
becomes entitled to receive Severance Benefits, as provided in Paragraphs 2.1
and 2.2 herein, the Company (or the Bank at the direction of the Company) shall,
within the time limits stated in Paragraph 2.1, pay to the Executive and provide
the Executive with the following:

         (a) A lump-sum cash amount equal to the Executive's unpaid Base Salary
(as such term is defined in Paragraph 2.7 herein), accrued vacation pay,
unreimbursed business expenses, and all other items earned by and owed to the
Executive through and including the date of the Qualifying Termination. Such
payment shall constitute full satisfaction for these amounts owed to the
Executive.

         (b)      A lump-sum cash amount equal to ___ (_) multiplied by the
                  greater of the Executive's annual rate of Base Salary in
                  effect upon the date of the Qualifying Termination, or the
                  Executive's annual rate of Base Salary in effect immediately
                  prior to the occurrence of the Change in Control.

         (c)      Immediate 100% vesting of all stock options, and any other
                  awards which had been provided to the Executive by the Bank
                  under any incentive compensation plan.

         (d)      At the exact same cost to the Executive, and at the same
                  coverage level as in effect as of the Executive's date of
                  Qualifying Termination (subject to changes in coverage levels
                  applicable to all employees generally), a continuation of the
                  Executive's (and the Executive's eligible dependents') health
                  insurance coverage for twenty-four (24) months from the date
                  of the Qualifying Termination. The applicable COBRA health
                  insurance benefit continuation period shall begin at the end
                  of this twenty-four (24) month benefit continuation period.

                  The providing of health insurance benefits by the Company
                  shall be discontinued prior to the end of the twenty-four (24)
                  month continuation period in the event that the Executive
                  subsequently becomes covered under the health insurance
                  coverage of a subsequent employer which does not contain any
                  exclusion or limitation with respect to any preexisting
                  condition of the Executive or the Executive's eligible
                  dependents. For purposes of enforcing this offset provision,
                  the Executive shall have duty to inform the Company as to the
                  terms and conditions of any subsequent employment and the
                  corresponding benefits earned from such employment. The
                  Executive shall provide, or cause to provide, to the Company
                  in writing correct, complete, and timely information
                  concerning the same.

         (e)      The Executive shall be entitled to receive standard
                  outplacement services from a nationally recognized
                  outplacement firm of the Executive's selection, for a period
                  of up to one (1) year from the Executive's date

                                    Page 22
<PAGE>

                  of Qualifying Termination. However, such service shall be at
                  the Company's expense to a maximum amount not to exceed twenty
                  thousand dollars ($20,000).

         2.4.     DEFINITION OF "CHANGE IN CONTROL." "Change in Control" of the
Company or the Bank means, and shall be deemed to have occurred upon, the first
to occur of any of the following events:

         (a)      Any Person or Persons acting in concert (other than those
                  Persons in control of the Company or the Bank as of the
                  Effective Date, or other than a trustee or other fiduciary
                  holding securities under an employee benefit plan of the
                  Company, or a corporation owned directly or indirectly by the
                  stockholders of the Company in substantially the same
                  proportions as their ownership of the stock Company) becomes
                  the Beneficial Owner, directly or indirectly, of securities of
                  the Company or the Bank representing twenty percent (20%) or
                  more of the combined voting power of the Company's or the
                  Bank's then outstanding securities; or

         (b)      During any period of ___(__) consecutive years (not including
                  any period prior to the Effective Date), individuals who at
                  the beginning of such period constitute the Board of Directors
                  of the Company cease for any reason to constitute a majority
                  thereof; or

         (c)      The stockholders of the Company approve: (i) a plan of
                  complete liquidation of the Company or the Bank; or (ii) an
                  agreement for the sale or disposition of all or substantially
                  all of the Company's or the Bank's assets; or (iii) a merger,
                  consolidation, or reorganization of the Company or the Bank
                  with or involving any other corporation or bank, other than a
                  merger, consolidation, or reorganization that would result in
                  the voting securities of the Company outstanding immediately
                  prior thereto continuing to represent (either by remaining
                  outstanding or by being converted into voting securities of
                  the surviving entity) at least seventy five (75%) of the
                  combined voting power of the voting securities of the Company
                  (or such surviving entity) outstanding immediately after such
                  merger, consolidation, or reorganization.

However, in no event shall a "Change in Control" be deemed to have occurred,
with respect to the Executive, if the Executive is part of a purchasing group
which consummates the Change-in-Control transaction. The Executive shall be
deemed "part of a purchasing group" for purposes of the preceding sentence if
the Executive is an equity participant in the purchasing company or group
(except for: (i) passive ownership of less than one percent (1%) of the stock of
the purchasing company; or (ii) ownership of equity participation in the
purchasing company or group which is otherwise not significant, as determined
prior to the Change in Control by a majority of the nonemployee continuing
Directors).

         2.5.  DEFINITION OF "GOOD REASON." "Good Reason" shall mean,
without the Executive's express written consent, the occurrence by any one or
more of the following within the Extended Period:

         (a)      The assignment of the Executive to duties inconsistent with
                  the Executive's position, duties, responsibilities, and status
                  as an officer of the Bank, or a reduction or alteration in the
                  nature or status of the Executive's authorities, duties, or
                  responsibilities from those in effect as of ninety (90)
                  calendar days prior to the Change in Control, other than an
                  insubstantial and inadvertent act that is remedied by the
                  Company promptly after receipt of notice thereof given by the
                  Executive.

         (b)      The Bank's requiring the Executive to be based at a location
                  in excess of twenty-five (25) miles from the location of the
                  Executive's principal job location or office immediately prior
                  to the Change in Control; except for required travel on the
                  Bank's business to an extent consistent with the Executive's
                  then present business travel obligations.

         (c)      A reduction by the Bank of the Executive's Base Salary in
                  effect on the Effective Date, or as the same shall be
                  increased from time to time.

         (d)      The failure of the Bank to keep in effect any of the Bank's
                  compensation, health and welfare benefits, or perquisite
                  programs under which the Executive receives value, as such
                  programs exist immediately prior to the Change in Control, or
                  the failure of the Bank to meet the funding requirements, if
                  any, of each of the programs. However, the replacement of an
                  existing program with a new program will be permissible (and
                  not grounds for a Good Reason termination) if done for all
                  employees generally.

                                    Page 23
<PAGE>

         (e)      Any breach by the Company of its obligation under Section 4 of
                  this Agreement or any failure of a successor company to assume
                  and agree to perform the Company's entire obligations under
                  this Agreement, as required by Section 4 herein.

         The Executive's right to terminate employment for Good Reason shall not
be affected by the Executive's incapacity due to physical or mental illness. The
Executive's continued employment shall not constitute consent to, or a waiver of
rights with respect to, any circumstance constituting Good Reason herein.

         2.6      DEFINITION OF "CAUSE." "Cause" shall mean the occurrence of
any one or more of the following:

         (a)      A demonstrably willful and deliberate act or failure to act by
                  the Executive (other than as a result of incapacity due to
                  physical or mental illness) which is committed in bad faith,
                  without reasonable belief that such action or inaction is in
                  the best interests of the Company, which causes actual
                  material financial injury to the Bank and which act or
                  inaction is not remedied within fifteen (15) business days of
                  written notice from the Bank; or

         (b)      The Executive's conviction for committing an act of fraud,
                  embezzlement, theft, or any other act constituting a felony
                  involving moral turpitude which causes material harm,
                  financial or otherwise, to the Bank.

         2.7      OTHER DEFINED TERMS. The following terms shall have the
meanings set forth below:

         (a)      "Base Salary" means, at any time, the then-regular annual rate
                  of pay which the Executive is receiving as salary, excluding
                  amounts: (i) designated by the Company as payment toward
                  reimbursement of expenses; of (ii) received under incentive or
                  other bonus plans, regardless of whether or not the amounts
                  are deferred.

         (b)      "Beneficial Owner" shall have the meaning ascribed to such
                  term in Rule 13d-3 of the General Rules and Regulations under
                  the Exchange Act (as such term is defined below).

         (c)      "Exchange Act" means the Securities Exchange Act of 1934, as
                  amended from time to time, or any successor act thereto.

         (d)      "Person" shall have the meaning ascribed to such term in
                  Section 3(a)(9) of the Exchange Act and used in Sections 13(d)
                  and 14(d) thereof, including a "group" as defined in Section
                  13(d) thereof.

SECTION 3.        EXCISE TAX

         3.1. EXCISE TAX PAYMENT. If any portion of the Severance Benefits or
any other payment under this Agreement, or under any other agreement with, or
plan of the Company or Bank, including but not limited to stock options and
other long-term incentives (in the aggregate "Total Payments") would constitute
an "excess parachute payment," such that a golden parachute excise tax is due,
the Company (or the Bank at the Company's direction) shall provide to the
Executive, in cash, an additional payment in an amount to cover the full cost of
any excise tax and the Executive's state and federal income and employment taxes
on this additional payment (cumulatively, the "Gross-Up Payment"). This Gross-Up
Payment shall be made a soon as possible following the date of the Executive's
Qualifying Termination, but in no event later than thirty (30) calendar days of
such date.

         For purposes of this Agreement, the term "excess parachute payment"
shall have the meaning assigned to such term in Section 280G of the Internal
Revenue Code, as amended (the "Code"), and the term "excise tax" shall mean the
tax imposed on such excess parachute payment pursuant to Sections 280G and 4999
of the Code.

         3.2. SUBSEQUENT RECALCULATION. In the event the Internal Revenue
Service subsequently adjusts the excise tax computation herein described, the
Company (or the Bank at the Company's direction) shall reimburse the Executive
for the full amount necessary to make the Executive whole on an after-tax basis
(less any amounts received by the Executive that the Executive would not have
received had the computations initially been computed as subsequently adjusted),
including the

                                    Page 24
<PAGE>

value of any underpaid excise tax, and any related interest and/or penalties due
to the Internal Revenue Service.

SECTION 4.        SUCCESSORS AND ASSIGNMENTS

         4.1. SUCCESSORS. The Company will require any successor (whether via a
Change in Control, direct or indirect, by purchase, merger, consolidation, or
otherwise) of the Company or the Bank to expressly assume and agree to perform
the obligations under this Agreement in the same manner and to the same extent
that the Company would be required to perform it if no such succession had taken
place.

         Failure of the Company to obtain such assumption and agreement prior to
the effectiveness of any such succession shall, as of the date immediately
preceding the date of a Change in Control, automatically give the Executive Good
Reason to collect, immediately, full benefits hereunder as a Qualifying
Termination.

         4.2. ASSIGNMENT BY EXECUTIVE. This Agreement shall inure to the benefit
of and be enforceable by the Executive's personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees, and
legatees. If an Executive should die while any amount is still payable to the
Executive hereunder, had the Executive continued to live, all such amounts,
unless otherwise provided herein, shall be paid in accordance with the terms of
this Agreement to the Executive's devisee, legatee, or other designee, or if
there is no such designee, to the Executive's estate.

         An Executive's rights hereunder shall not otherwise be assignable.

SECTION 5.        RESTRICTIVE COVENANTS

         5.1. COVENANTS. Without the prior written consent of the Company, and
where the Executive is entitled to receive the Severance Benefits pursuant to
the terms of this Agreement, during the 24-month period next following the
Executive's termination of employment with the Bank, the Executive shall not,
directly or indirectly:

         (a)      DISCLOSURE OF INFORMATION. Use, attempt to use, disclose, or
                  otherwise make known to any person or entity (other than the
                  Board of Directors of the Company or the Bank):

                  (i)      Any confidential or proprietary knowledge or
                           information, including without limitation, lists of
                           customers, processes, and systems, as well as any
                           data and records pertaining thereto, which the
                           Executive may acquire in the course of his
                           employment.

                  (ii)     Any confidential or proprietary knowledge or
                           information of a confidential nature (including but
                           not limited to all unpublished matters) relating to,
                           within limitation, the business, properties,
                           accounting, books and records, computer systems and
                           programs, or memoranda of the Company or the Bank.

         5.2 ACKNOWLEDGMENT OF COVENANTS. The parties hereto acknowledge that
the Executive's services are of a special, extraordinary, and intellectual
character which gives him unique value, and that the business of the Company and
its subsidiaries is highly competitive, and that violation of any of the
covenants provided in this Section 5 would cause immediate, immeasurable, and
irreparable harm, loss and damage to the Company not adequately compensable by a
monetary award. The Executive acknowledges that the time and scope of activity
restrained by the provisions of this Section 5 are reasonable and do not impose
a greater restraint than is necessary to protect the goodwill of the Company's
business. The Executive further acknowledges that he and the Company have
negotiated and bargained for the terms of this Agreement and that the Executive
has received adequate consideration for entering into the Agreement. In the
event of any such breach or threatened breach by the Executive of any one or
more of such covenants, the Company shall be entitled to such equitable and
injunctive relief as may be available to restrain the Executive from violating
the provisions hereof. Nothing herein shall be construed as prohibiting the
Company from pursuing any other remedies available at law or in equity for such
breach or threatened breach, including the recovery of damages and the immediate
termination of the employment of the Executive hereunder.

SECTION 6.        MISCELLANEOUS

         6.1. (a) ADMINISTRATION. This Agreement shall be administered by the
Board of Directors of the Company, or

                                    Page 25
<PAGE>

by a Committee of the Board consisting of Board members designated by the Board
(the "Compensation Committee"). The Compensation Committee (with the approval of
the Board, if the Board is not the Compensation Committee) is authorized to
interpret this Agreement, to prescribe and rescind rules and regulations, and to
make all other determinations necessary or advisable for the administration of
this Agreement. In fulfilling its administrative duties hereunder, the
Compensation Committee may rely on outside counsel, independent accountants, or
other consultants to render advice or assistance.

                  (b) CLAIMS PROCEDURE. If the Executive believes that he is
being denied a benefit to which he is entitled under the Agreement, he may file
a written request for such benefit with the Company, setting forth his claim.
Upon receipt of the claim, the Company shall advise the Executive that a reply
will be forthcoming within 15 days and shall, in fact, deliver such reply with
such period. The Company may, however, extend the reply period for an additional
15 days for reasonable cause. If the claim is denied in whole or in part, the
Company shall adopt a written opinion, using language calculated to be
understood by the Executive, setting forth:

                        (i)   The specific reason or reasons for such denied;

                        (ii)  The specific reference to pertinent provisions of
                              this Agreement on which such denial is based;

                        (iii) A description of any additional material or
                              information necessary for the Executive to perfect
                              his claim and an explanation why such material or
                              such information is necessary;

                        (iv)  Appropriate information as to the steps to be
                              taken if the Executive wishes to submit the claim
                              for review; and

                        (v)   The time limits for requesting the review under
                              (c) below.

                  (c) REQUEST FOR CLAIM DECISION REVIEW. Within 30 days after
receipt by the Executive of the written opinion described above, the Executive
may request in writing that the President of the Company review the description
of the Company. Such request must be addressed to the President of the Company,
at its then principal place of business. The Executive of his duly authorized
representative may, but need not, review the pertinent documents and submit
issues and comments in writing for consideration by the Company. If the
Executive does not request a review of the Company's determination by the
President of the Company within such 30-day period, he shall be barred and
estopped from challenging the Company's determination. Within 30 days after the
President's receipt of a request for review, he will review the Company's
determination. After considering all materials presented by the Executive, the
President will render a written opinion, written in a manner calculated to be
understood by the Executive, setting forth specific reasons for the decision and
containing specific references to the pertinent provisions of this Agreement on
which the decision is based.

         6.2. NOTICES. Any notice required to be delivered to the Company, the
Compensation Committee or the President of the Company by the Executive
hereunder shall be properly delivered to the Company when personally delivered
to (including by a reputable overnight courier), or actually received through
the U.S. mail, postage prepaid, by:

         Old Second Bancorp, Inc.
         37 South River Street
         Aurora, IL  60506

         Any notice required to be delivered to the Executive by the Company,
the Compensation Committee or the President of the Company hereunder shall be
properly delivered to the Executive when personally delivered to (including by a
reputable overnight courier), or actually received through he U.S. mail, postage
prepaid, by the Executive at his last known address as reflected on the books
and records of the Company.

SECTION 7.        CONTRACTUAL RIGHTS AND LEGAL REMEDIES

         7.1. CONTRACTUAL RIGHTS TO BENEFITS. This Agreement establishes in the
Executive a right to the benefits to which the Executive is entitled hereunder.
However, except as expressly stated herein, nothing herein contained shall
require or be

                                    Page 26
<PAGE>

deemed to require, or prohibit or be deemed to prohibit, the Company to
segregate, earmark, or otherwise set aside any funds or other assets, in trust
or otherwise, to provide for any payments to be made or required hereunder.

         7.2. LEGAL FEES AND EXPENSES. The Company shall pay all legal fees,
costs of litigation, prejudgment interest, and other expenses which are incurred
in good faith by the Executive as a result of the Company's refusal to provide
the Severance Benefits to which the Executive becomes entitled under this
Agreement. In addition, if the Executive shall resort to either litigation or
arbitration in order to secure the payment by the Company of the Severance
Benefits, and the Executive is successful in such litigation or arbitration,
then the Company shall also pay to the Executive an additional amount equal to
25% of the Severance Benefits. Whether or not the Executive has been successful
in such litigation or arbitration shall also be determined in the same
proceeding.

         7.3. ARBITRATION. The Executive shall have the right and option to
elect (in lieu of litigation) to have any dispute or controversy arising under
or in connection with this Agreement settled by arbitration, conducted before a
panel of three (3) arbitrators sitting in a location selected by the Executive
within fifty (50) miles from the location of his or her job with the Company, in
accordance with the rules of the American Arbitration Association then in
effect. The Executive's election to arbitrate, as herein provided, and the
decision of the arbitrators in that proceeding, shall be binding on the Company
and Executive.

         Judgment may be entered on the award of the arbitrator in any court
having jurisdiction. All expenses of such arbitration, including the fees and
expenses of the counsel for the Executive, shall be borne by the Company.

         7.4. UNFUNDED AGREEMENT. This Agreement is intended to be an unfunded
general asset promise for a select, highly compensated member of the Company's
management and, therefore, is intended to be exempt from the substantive
provisions of the Employee Retirement Income Security Act of 1974 as amended.

         7.5. EXCLUSIVITY OF BENEFITS. Unless specifically provided herein,
neither the provisions of this Agreement nor the benefits provided hereunder
shall reduce any amounts otherwise payable, or in any way diminish the
Executive's rights as an employee of the Company, whether existing now or
hereafter, under any compensation and/or benefit plans (qualified or
nonqualified), programs, policies, or practices provided by the Company, for
which the Executive may qualify.

         Vested benefits or other amounts which the Executive is otherwise
entitled to receive under any plan, policy, practice, or program of the Company,
at or subsequent to the Executive's date of Qualifying Termination, shall be
payable in accordance with such plan, policy, practice, or program except as
expressly modified by this Agreement.

         7.6. INCLUDABLE COMPENSATION. Severance Benefits provided hereunder
shall not be considered "includable compensation" for purposes of determining
the Executive's benefits under any other plan or program of the Company.

         7.7. EMPLOYMENT STATUS. Nothing herein contained shall be deemed to
create an employment agreement between the Company and the Executive providing
for the employment of the Executive by the Company for any fixed period of time.
The Executive's employment with the company is terminable at will by the Company
or the Executive and each shall have the right to terminate the Executive's
employment with the Company at any time, with or without Cause, subject to the
Company's obligation to provide Severance Benefits as required hereunder.

                  In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to the Executive under any of the provisions of this Agreement, nor shall the
amount of any payment hereunder be reduced by any compensation earned by the
Executive as a result of employment by another employer, other than as provided
in Paragraph 2.3(d) herein.

         7.8. ENTIRE AGREEMENT. This Agreement represents the entire agreement
between the parties with respect to the subject matter hereof, and supersedes
all prior discussion, negotiations, and agreements concerning the subject matter
hereof, including, but not limited to, any prior severance agreement made
between the Executive and the Company.

         7.9. TAX WITHHOLDING. The Company shall withhold from any amounts
payable under this Agreement all federal, state, city, or other taxes as legally
required to be withheld.

                                    Page 27
<PAGE>

         7.10. WAIVER OF RIGHTS. Except as otherwise provided herein, the
Executive's acceptance of Severance Benefits, the Gross-Up Payment (if
applicable), and any other payments required hereunder shall be deemed to be a
waiver of all rights and claims of the Executive against the company pertaining
to any matters arising under this Agreement.

         7.11. SEVERABILITY. In the event any provision of the Agreement shall
be held illegal or invalid for any reason, the illegality or invalidity shall
not affect the remaining parts of the Agreement, and the Agreement shall be
construed and enforced as if the illegal or invalid provision had not been
included.

         7.12. APPLICABLE LAW. To the extent not preempted by the laws of the
United States, the laws of the State of Illinois shall be the controlling law in
all matters relating to the Agreement.

         IN WITNESS WHEREOF, the Company has executed this Agreement, to be
effective as of the day and year first written above.

ATTEST:                                            OLD SECOND BANCORP, INC.

By:                                    By:
  ---------------------------              ---------------------------------
                                       Title:
                                             -------------------------------

                                       -------------------------------------
                                       Name

                                    Page 28
<PAGE>

                          SCHEDULE A TO EXHIBIT (10)(d)

                                         Length of Agreement if
Executive's Name                         Change of Control Occurs
----------------                         ------------------------

William B. Skoglund                               3 Years

George Starmann III                               2 Years

J. Douglas Cheatham                               2 Years

                                    Page 29
<PAGE>

                                                     Exhibit 22

                                               LIST OF SUBSIDIARIES

SUBSIDIARIES OF THE COMPANY

The Old Second National Bank of Aurora

Yorkville National Bank

Kane County Bank and Trust Company

Bank of Sugar Grove

Burlington Bank

Maple Park Mortgage

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