Document:

Exhibit
10(ii)(8)

 

MANAGEMENT
CONTINUITY AGREEMENT

 

This Management Continuity Agreement (“Agreement”) is made and entered
into as of August 4, 2003, by and between Illini Corporation, an Illinois bank
holding company organized under the laws of the State of Illinois (“Illini”), and Donald L. Deters, 1817 Briar
Meadow Court, St. Louis, Missouri (“Officer”).

 

WITNESSETH

 

WHEREAS,
the Officer is seeking employment with Illini as Senior Vice President with the
salary as set forth in this Agreement;

 

WHEREAS,
Illini wishes to attract and retain highly qualified executives and to achieve
this goal it is in the best interests of Illini to secure the continued
services of the Officer regardless of a change in control of Illini, and to
reward the Officer in accordance with his contributions to Illini’s success;

 

WHEREAS,
Illini and Officer are willing, in order to induce the Officer to remain an
employee of Illini, and to provide the Officer a measure of security with
respect to his employment with Illini in the event of a change in control of
Illini so that the Officer will be in a position to act with respect to a
possible change in control of Illini in the best interests of Illini and its
shareholders without concern as to the Officer’s own financial security, to agree
that employment of the Officer shall be terminable only in accordance with
Section II herein;

 

WHEREAS,
Illini is willing, in
order to compensate the Officer fairly for the Officer’s contribution to the
prosperity of Illini, and in order to induce the Officer to remain in
employment with Illini, to agree that Officer shall be compensated in
accordance with the terms and conditions herein; and

 

NOW,
THEREFORE,
Illini and Officer agree as follows:

 

Section I.  EMPLOYMENT

 

A.  Term.  Illini shall continue to employ Officer as
its Senior Vice President until August 4, 2006,  (the “Term”), unless terminated prior to the expiration of the
Term pursuant to Section II herein.

 

B.  Compensation.  As compensation for services provided to
Illini by Officer pursuant to this Agreement, Illini shall pay the Officer an
annual base salary of $91,500.00, which salary may be increased from time to
time. It is expressly understood that the annual base salary of Officer shall
be allocated between Illini and a subsidiary or subsidiaries of Illini
accordance with the time the Officer may devote to a subsidiary or
subsidiaries.  The Officer shall also be
eligible to participate in any other compensation and benefit plans generally
available to executive employees of Illini of like grade and salary including,
but not limited to, retirement plans, group life, disability, accidental death
and dismemberment, travel and accident, and health and

 

1

 

dental insurance plans, incentive compensation plans, stock
compensation plans, deferred compensation plans, supplemental retirement plans,
qualified and non-qualified incentive stock option plans, and excess benefit
plans. Such other compensation and benefit plans are hereinafter referred to
collectively as the “Compensation and Benefits Plans”.

 

C.  Duties. Officer shall
perform such duties and functions as are assigned to him by the bylaws of
Illini, as amended or restated by the Board of Directors of Illini. Illini
shall provide the Officer with a description of his duties at the inception of
his employment which shall remain unchanged until such time as changes in
duties or function are approved by Illini’s Board of Directors. In the event of
an actual or potential Change in Control (as defined in Section II, H) of
Illini, Officer shall perform his duties and function in a manner that is
consistent with the best interests of Illini and its shareholders, without
regard to the effect that the potential or actual Change in Control may have on
the officer personally.

 

D.  Duty Of Loyalty.  The Officer shall work full-time for Illini
only, or for a subsidiary thereof, provided that:

 

(a) He may also engage in charitable, civic and other
similar activities;

 

(b) With the consent of the Board of Directors of
Illini, he may serve as a director of a business organization not competing
with Illini or a subsidiary thereof; and

 

(c) He may make such investment and reinvestment in
business activities as shall not require a substantial portion of his time.

 

E. Duty
Not To Disclose Confidential Information.  The Officer acknowledges that his
relationship with Illini is one of high trust and confidence, and that he has
access to Confidential Information, as hereinafter defined, of Illini.  The Officer shall not directly or
indirectly, communicate, deliver, exhibit or provide Confidential Information
to any person, firm, partnership, corporation, organization or entity, except
as required in the normal course of the Officer’s duties. The duties contained
in this paragraph shall be binding upon the Officer during the time that he is
employed under this Agreement and following the termination of such employment.
Such duties will not apply to any such Confidential Information that is or
becomes in the public domain through no action on the part of the Officer, is
generally disclosed to third parities by Illini without restriction on such
third parties, or is approved for release by written authorization of the Board
of Directors of Illini or subsidiary thereof. 
The term “Confidential Information” shall mean any and all confidential,
proprietary, or secret information relating to the Illini’s business and the
business of any subsidiary thereof or related companies, services, customers,
business operations, or activities and any and all trade secrets, products,
methods of conducting business, information, skills, knowledge, ideas, know-how
or devices used in, developed by, or pertaining to Illini’s business and the
business of any subsidiary thereof or related companies, and not generally
known, in whole or in part, in any trade or industry in which Illini or any
subsidiary or related company is engaged.

 

2

 

Section
II. TERMINATION

 

A.  Term of Agreement.  This Agreement shall run for an initial term
of three years from its inception. Subject to the approval of the Board of
Directors of Illini, or unless Illini terminates for cause, or Officer
terminates in accordance with Section II, the original agreement shall be extended
each year for one additional year for each year that lapses from the initial
term so that the Agreement maintains a length of three years. In the event of a
termination by Illini for cause, or by the Officer under Section II, all
obligations hereunder shall terminate except as specifically set forth in the
Agreement.

 

B. Voluntary Termination by Officer.
The Officer may voluntarily terminate this Agreement by providing thirty days
notice to Illini, in which event Illini shall have no further obligation to the
Officer hereunder from the date of such termination except to pay Officer
earned but unpaid salary and benefits and to honor vested option rights without
imposing further condition or reduction thereof, and the Officer shall have no
further obligation to Illini hereunder except the duty to not disclose
Confidential Information in accordance with Section I, E.

 

C. Termination By Death Of Officer.
In the event the Officer’s employment with Illini is terminated due to the
Officer’s death, Illini shall have no further obligation to the Officer, his
heirs or legatees hereunder from the date of such termination, except to notify
Officer’s heirs or legatees of earned but unpaid salary and benefits due under
the Compensation and Benefit Plans and the value, terms and condition of vested
option rights, and to pay Officer’s heirs or legatees amounts due officer
hereunder without imposing further condition or reduction thereof and the heirs
and legatees of the Officer shall have no further obligation.

 

D. Termination By Disability Of
Officer. In the event the Officer’s employment with Illini is
terminated due to the Officer’s Permanent Disability, Illini shall have no
further obligation to the Officer hereunder from the date of such termination
except to notify the employee of and pay at the direction of Officer or person
empowered by Officer to direct payment earned but unpaid salary and benefits
due under the Compensation and Benefit Plans and to honor vested option rights
without imposing further condition or reduction thereof, and Illini shall have
no further obligation to Officer or person empowered by Officer to direct
payments due under the Agreement. For purposes of this Agreement, the term
“Permanent Disability” means a physical or mental condition of the Officer
which:

 

1.               Has continued
uninterrupted for six months;

 

2.               Is expected to
continue indefinitely; and

 

3.               Is determined by
Illini to render the Officer incapable of adequately performing his duties.

 

In case of dispute in applying “Permanent
Disability” to a physical or mental condition of Officer, the test of
disability used by the United States Social Security Administration for the

 

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same or similar purposes shall be the final
standard for determining the “Permanent Disability” of the Officer.

 

E.  Termination by Illini Without Cause.  Illini may terminate this Agreement without
cause prior to the Firm Term as hereinafter defined by providing thirty days
notice to the Officer. In such event, the Officer shall have no further
obligation to Illini hereunder, except the duty to not disclose Confidential
Information in accordance with Section I, E, and Illini shall have no further
obligation to the Officer hereunder from the date of such termination except
(i) to pay to the Officer the salary payments described in Section I, B, in the
amount in effect on the date of termination, for a period of twelve months from
the date of termination, (ii) to pay to the Officer earned but unpaid salary
and any other benefits under the Compensation and Benefit Plans without
imposing further condition or reduction thereto, and (iii) to pay to the
Officer reasonable expenses of out placement within the financial institutions
or financial industry during the twelve month period following the date of
termination; provided, however, out placement expenses shall be paid only upon
actually incurring such expense and Officer’s furnishing of evidence thereof to
Illini and shall not include moving or relocation expense; and provided,
however, that any benefit to be provided by a Compensation and Benefit Plan may
be provided by Illini through cash or equivalent value or through a
nonqualified arrangement or arrangements if, in the judgment of Illini,
permitting the Officer to participate in such plan after the date of
termination would adversely affect the tax status of such plan, and if, in the
judgment of the Officer, any proposed cash or equivalent value through a
nonqualified arrangement or arrangement would not materially increase the tax
liabilities of Officer under federal or state income tax or estate tax laws.

 

F.
Termination by Illini With Cause.  Prior to or during the Firm Term, Illini may terminate this
Agreement for Cause.  For purposes of
this Agreement, Cause shall mean;

 

1.               The Officer’s
willful and material breach of a provision of this Agreement;  or

 

2.               The Officer
willfully engages in illegal conduct or gross misconduct, which materially and
demonstrably injures Illini;

 

For purposes of determining whether “Cause” exists, no act or failure
to act on the Officer’s part shall be considered “willful” unless it is done,
or omitted to be done, by the Officer in bad faith or without reasonable belief
by the Officer that his action or omission was in the best interest of Illini.
In the event of the Officer’s termination for Cause, Illini will have no
further obligation to the Officer under the Agreement from the date of such
termination.

 

G.
Termination Following Change in Control.  In the event there is a Change in Control of
Illini, as defined in Section H below, during the Term, and (1) within the
period commencing twelve months prior to the date of a Change in Control and
ending twelve months following the date of the Change in Control (the “Firm
Term”), the Officer’s employment hereunder is terminated by the Illini other
than for Cause, as defined in Section II, F; or (2) Within the Firm Term, the
Officer resigns from his employment hereunder upon thirty days written notice
given

 

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to Illini within thirty days following a material change in the
Officer’s title, authorities or duties, in effect immediately prior to the
Change in Control, a reduction in the compensation or a reduction in benefits
provided pursuant to this Agreement or the Compensation and Benefit Plans below
the amount of compensation and benefits in effect immediately prior to the
Change in Control, or a change of the Officer’s principal place of employment
without his consent to a city more than 25 miles from Springfield, Illinois,
then the Officer shall have no further obligation to Illini hereunder, except
the duty not to disclose Confidential Information in accordance with Section I,
E, and Illini shall have no further obligation to the Officer hereunder from
the date of termination except (i) to pay to the Officer the salary payments
described in Section I, B, in the amount in effect on the date of termination,
for a period of twelve months from the date of termination, (ii) to pay to the
Officer any other benefits due under the Compensation and Benefit Plans without
imposing further condition or reduction thereof, and (iii) to pay to the
Officer reasonable expenses of out placement within the financial institutions
industry or financial industry following the date of termination; provided,
however, out placement expenses shall be paid only upon actually incurring such
expenses and Officer’s furnishing of evidence thereof to the Illini and shall
not include moving or relocation expenses and provided, however, that any
benefit to be provided  by the Illini
through cash of equivalent values or through a nonqualified arrangement or
arrangements if, in the judgment of the Illini, permitting the Officer to
participate in such plan after the date of termination would adversely affect
the tax status of such plan.

 

H.
Change in Control Defined.  A
Change in Control of the Illini shall have occurred:

 

1.               On the fifth day
preceding the scheduled expiration date of a tender offer by, or exchange offer
by any corporation, person, other entity or group (other than Illini or any of
its wholly owned subsidiaries), to acquire Voting Stock of Illini if:

 

i.                  After giving
effect to such offer such corporation, person, other entity or group would own
50% or more of the Voting Stock of Illini;

 

ii.               There shall have
been filed documents with the Securities and Exchange Commission in connection
therewith (or, if no such filing is required, public evidence that the offer
has already commenced); and such corporation, person, other entity or group has
secured all required regulatory approvals to own or control 50% or more of the
Voting Stock of Illini;

 

2.               If the shareholders
of Illini approve a definitive agreement to merge or consolidate Illini with or
into another corporation in a transaction in which neither Illini nor any of
its wholly owned subsidiaries will be the surviving corporation, or to sell or
otherwise dispose of all or substantially all of Illini’s assets to any
corporation, person, other entity or group (other than Illini or any of its
wholly owned subsidiaries), and such definitive agreement is consummated;

 

5

 

i.                  If
any corporation, person, other entity or group (other than Illini or any of its
wholly owned subsidiaries) becomes the Beneficial Owner (as that term is
defined in the Securities and Exchange Commission’s Rule 13d-3 under the
Securities Exchange Act of 1934) of stock representing 50% or more of the
Voting Stock of Illini; or

 

ii.               If during any
period of two consecutive years Continuing Directors cease to comprise a
majority of Illini’s Board of Directors.

 

3.               The term
“Continuing Director’ means:

 

i.                  Any member of
the Board of Directors of the Illini at the beginning of any period of two
consecutive years; and

 

ii.               Any person who
subsequently becomes a member of the Board of Directors of the Illini, if:

 

(1) Such person’s
nomination for election or election to the Board of Directors of Illini is
recommended or approved by resolution of a majority of the Continuing
Directors; or

 

(2) Such person is
included as a nominee in a proxy statement of the Illini  distributed when a majority of the Board of
Directors of Illini consists of Continuing Directors.

 

4.               “Voting Stock”
means those shares of Illini entitled to vote generally in the election of
directors.

 

I.
Termination of Related Offices.  The parties agree that in the event Officer’s employment by
Illini is terminated for any reason, Officer will immediately resign from all
other positions or offices held with Illini, including any directorships with
Illini, or any subsidiaries thereof.

 

J.
Officer’s Costs of Enforcement.  Illini shall pay all expenses of Officer, including but not
limited to attorney’s fees, incurred in enforcing payments by Illini pursuant
to this Agreement.

 

Section III. MISCELLANEOUS

 

A.
Assignment of Officer’s Rights.  The Officer may not assign, pledge or otherwise transfer any of
the benefits of this Agreement either before or after termination of
employment, and any purported assignment, pledge or transfer of any payment to
be made by Illini hereunder shall be void and of no effect.  No payment to be made to the Officer
hereunder shall be subject to the claims of creditors of the Officer.

 

B.
Agreements Binding on Successor.  This
Agreement shall be binding and inure to the benefit of the parties hereto and
their respective successors, assign, personal representatives, heirs, legatees
and beneficiaries.

 

C.
Notices.  Any notice
required or desired to be given under this Agreement shall be deemed given if
in writing and sent by first class mail to the Officer or Illini, at his or its
address as set

 

6

 

forth above, or to such other address of which either the Officer or
Illini shall notify the other in writing.

 

D.
Waiver of Breach.  The
waiver by either party of a breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach by either the
Officer or Illini.

 

E.
Entire Agreement. 
This Agreement contains the entire understanding of the parties and
supersedes prior agreements between Officer and Illini.  It may be modified or amended only by an
agreement in writing signed by the party against whom enforcement of any change
or amendment is sought.

 

G.
Severability of Provisions.  If for any reason any paragraph, term or provision of this
Agreement is held to be invalid or unenforceable, all other valid provisions
herein shall remain in full force and effect and all paragraphs, terms and provisions
of this Agreement shall be deemed to be several in nature. An Offer of
Employment containing various special terms and conditions of the Officer’s
employment was made between Illini and Officer and is attached to this
Agreement and incorporated hereinto by this reference.

 

H.
Governing Law.  This
Agreement is made in, and shall be governed by, the laws of the State of
Illinois.

 

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as
of the day and year first set forth above.

 

	
  ILLINI CORPORATION

  	
  [OFFICER]

  
	
  By: 

  	
  /s/ Burnard K. McHone

  	
   

  	
  /s/ Donald L. Deters

  	
   

  
	
  Its:  President

  	
  Date:

  	
  3-9-04

  	
   

  
	
  Date:  August 4, 2003

  	
   

  
							

 

 

 

7

 

Exhibit
A

 

DESCRIPTION
OF RESPONSIBILITES AND DUTIES

 

[Insert or attach job description.]

 

8

 

ADDENDUM

 

The purpose of this addendum is to provide details of certain additions
to the standard arrangements offered by Illini that represent agreements
between Illini Corporation (“Illini”) and Donald L. Deters regarding the
following employment related expenses and other terms and conditions of his
employment:

 

1.               Illini agreed to
pay Mr. Deters $550.00 per month for three years for the use of a vehicle in
business.  In satisfaction of this
agreement, Illini purchased a vehicle (see attached) and obligated itself to
make payment in lieu of monthly cash payments. Mr. Deters will use the vehicle
at no further cost to himself for three years, at which time he will purchase
the vehicle from Illini at an amount equal to the original purchase price less
$550.00 per month for three years.

 

2.               Merit review after
six months of employment and annually thereafter.

 

3.               Adoption of
incentive stock option plan by June 30, 2004, including a recommendation of a
grant of 5,000 shares.

 

4.               22 personal days,
with 12 personal days for balance of 2003.

 

5.               Illini agreed to
pay fifty per cent (50%) of the commission on the sale of Mr. Deters residence
in St. Louis, and pay temporary housing allowance per attached memo.

 

 

	
  Signed,

  	
  Accepted,

  
	
  ILLINI CORPORATION

  	
   

  
	
   

  	
   

  
	
  Burnard K. McHone, President

  	
  Donald L. Deters

  
	
  Date: 

  	
  3-9-04

  	
   

  	
  Date: 

  	
  3-9-04

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attachment: 
  IC Memo Dated July 28, 2003

  	
   

  
						

 

9Exhibit
10.(ii)(9)

 

MANAGEMENT
CONTINUITY AGREEMENT

 

 

This Management
Continuity Agreement (“Agreement”) is made and entered into as of August 4, 2003 by and between Illini
Corporation, an Illinois bank holding company organized under the laws of the
State of Illinois (“Illini”),
Illini Bank, a bank organized under the Illinois Banking Act (“Bank”), and Dennis B. Guthrie, 304 South
Euclid Avenue, Princeton, Illinois,  (“Officer”).

 

WITNESSETH

 

WHEREAS, the Officer is seeking employment
with Illini and Bank as Chief Financial Officer with the salary as set forth in
this Agreement;

 

WHEREAS, Illini wishes to attract and
retain highly qualified executives and to achieve this goal it is in the best
interests of Illini to secure the continued services of the Officer regardless
of a change in control of Illini, and to reward the Officer in accordance with
his contributions to Illini’s success;

 

WHEREAS, Illini and Officer are willing, in
order to induce the Officer to remain an employee of Illini, and to provide the
Officer a measure of security with respect to his employment with Illini in the
event of a change in control of Illini so that the Officer will be in a
position to act with respect to a possible change in control of Illini in the
best interests of Illini and its shareholders without concern as to the
Officer’s own financial security, to agree that employment of the Officer shall
be terminable only in accordance with Section II herein;

 

WHEREAS, Illini is willing, in order to compensate the Officer fairly for the
Officer’s contribution to the prosperity of Illini, and in order to induce the
Officer to remain in employment with Illini, to agree that Officer shall be
compensated in accordance with the terms and conditions herein; and

 

NOW, THEREFORE, Illini and Officer agree as
follows:

 

Section
I.  EMPLOYMENT

 

A.  Term.  Illini shall continue to employ the Officer
as its Chief Financial Officer until August 4, 2006,  (the “Term”) unless terminated prior to the expiration of the
Term pursuant to Section II herein.

 

B.  Compensation.  As compensation for services provided to
Illini and Bank by the Officer pursuant to this Agreement, Illini shall pay the
Officer an annual base salary of $90,000.00 which salary may be increased from
time to time. It is expressly understood that the annual base salary shall be
allocated between Illini and Bank in accordance with the time devoted to each
position.  The Officer shall also be
eligible to participate in any other compensation and benefit

 

1

 

plans generally available
to executive employees of Illini of like grade and salary including, but not
limited to, retirement plans, group life, disability, accidental death and
dismemberment, travel and accident, and health and dental insurance plans,
incentive compensation plans, stock compensation plans, deferred compensation
plans, supplemental retirement plans, qualified and non-qualified incentive
stock option plans, and excess benefit plans. Such other compensation and benefit
plans are hereinafter referred to collectively as the “Compensation and
Benefits Plans”.

 

C.  Duties.
Officer shall perform such duties and functions as are assigned to him by the
bylaws of Illini and Bank, as amended or restated by the Boards of Directors of
Illini and Bank. Illini shall provide the Officer with a description of his
duties at the inception of his employment which shall remain unchanged until
such time as changes in duties or function are approved by Illini’s Board of
Directors. In the event of an actual or potential Change in Control (as defined
in Section II, H), the Officer shall perform his duties and function in a
manner that is consistent with the best interests of Illini and its
shareholders, without regard to the effect that the potential or actual Change
in Control may have on the officer personally.

 

D.  Duty Of Loyalty.  The Officer shall work full-time for Illini
only, or for a subsidiary thereof, provided that:

 

(a) He may also engage in
charitable, civic and other similar activities;

 

(b) With the consent of
the Board of Directors of Illini, he may serve as a director of a business
organization not competing with Illini; and

 

(c) He may make such
investment and reinvestment in business activities as shall not require a
substantial portion of his time.

 

E. Duty Not To Disclose Confidential Information.  The Officer acknowledges that his
relationship with Illini is one of high trust and confidence, and that he has
access to Confidential Information, as hereinafter defined, of Illini and
Bank.  The Officer shall not directly or
indirectly, communicate, deliver, exhibit or provide Confidential Information
to any person, firm, partnership, corporation, organization or entity, except
as required in the normal course of the Officer’s duties. The duties contained
in this paragraph shall be binding upon the Officer during the time that he is
employed under this Agreement and following the termination of such employment.
Such duties will not apply to any such Confidential Information that is or
becomes in the public domain through no action on the part of the Officer, is
generally disclosed to third parities by Illini without restriction on such
third parties, or is approved for release by written authorization of the Board
of Directors of Illini.  The term
“Confidential

 

2

 

Information” shall mean
any and all confidential, proprietary, or secret information relating to the
Illini’s and Bank’s business, services, customers, business operations, or
activities and any and all trade secrets, products, methods of conducting
business, information, skills, knowledge, ideas, know-how or devices used in,
developed by, or pertaining to Illini’s business and not generally known, in
whole or in part, in any trade or industry in which Illini is engaged.

 

Section
II. TERMINATION

 

A.  Term of Agreement.  This Agreement shall run for an initial term
of three years from its inception. Subject to the approval of the Board of
Directors of Illini, or unless Illini terminates for cause, or Officer
terminates in accordance with Section II, the original agreement shall be
extended each year for one additional year for each year that lapses from the
initial term so that the Agreement maintains a length of three years. In the
event of a termination by Illini for cause, or by the Officer under Section II,
all obligations hereunder shall terminate except as specifically set forth in
the Agreement.

 

B.
Voluntary Termination by Officer. The Officer may voluntarily
terminate this Agreement by providing thirty days notice to Illini, in which
event Illini shall have no further obligation to the Officer hereunder from the
date of such termination except to pay Officer earned but unpaid salary and
benefits and to honor vested option rights without imposing further condition
or reduction thereof, and the Officer shall have no further obligation to
Illini hereunder except the duty to not disclose Confidential Information in
accordance with Section I, E.

 

C.
Termination By Death Of Officer. In the event the Officer’s
employment with Illini is terminated due to the Officer’s death, Illini shall
have no further obligation to the Officer, his heirs or legatees hereunder from
the date of such termination, except to notify Officer’s heirs or legatees of
earned but unpaid salary and benefits due under the Compensation and Benefit
Plans and the value, terms and condition of vested option rights, and to pay
Officer’s heirs or legatees amounts due officer hereunder without imposing
further condition or reduction thereof and the heirs and legatees of the
Officer shall have no further obligation.

 

D.
Termination By Disability Of Officer. In the event the
Officer’s employment with the Illini is terminated due to the Officer’s
Permanent Disability, Illini shall have no further obligation to the Officer
hereunder from the date of such termination except to notify the employee of
and pay at the direction of Officer or

 

3

 

person empowered by
Officer to direct payment earned but unpaid salary and benefits due under the
Compensation and Benefit Plans and to honor vested option rights without
imposing further condition or reduction thereof, and Illini shall have no
further obligation to Officer or person empowered by Officer to direct payments
due under the Agreement. For purposes of this Agreement, the term “Permanent
Disability” means a physical or mental condition of the Officer which:

 

1.               Has
continued uninterrupted for six months;

 

2.               Is
expected to continue indefinitely; and

 

3.               Is
determined by Illini to render the Officer incapable of adequately performing
his duties.

 

In
case of dispute in applying “Permanent Disability” to a physical or mental
condition of Officer, the test of disability used by the United States Social
Security Administration for the same or similar purposes shall be the final
standard for determining the “Permanent Disability” of the Officer.

 

E.  Termination by
Illini Without Cause. 
Illini may terminate this Agreement without cause prior to the Firm Term
as hereinafter defined by providing thirty days notice to the Officer. In such
event, the Officer shall have no further obligation to Illini hereunder, except
the duty to not disclose Confidential Information in accordance with Section I,
E, and Illini shall have no further obligation to the Officer hereunder from
the date of such termination except (i) to pay to the Officer the salary
payments described in Section I, B, in the amount in effect on the date of
termination, for a period of twelve months from the date of termination, (ii)
to pay to the Officer earned but unpaid salary and any other benefits under the
Compensation and Benefit Plans without imposing further condition or reduction,
and (iii) to pay to the Officer reasonable expenses of out placement within the
financial institutions or financial industry during the twelve month period
following the date of termination; provided, however, out placement expenses
shall be paid only upon actually incurring such expense and Officer’s
furnishing of evidence thereof to Illini and shall not include moving or
relocation expense; and provided, however, that any benefit to be provided by a
Compensation and Benefit Plan may be provided by Illini through cash or
equivalent value or through a nonqualified arrangement or arrangements if, in
the judgment of Illini, permitting the Officer to participate in such plan
after the date of termination would adversely affect the tax status of such
plan, and if, in the judgment of the Officer, any proposed cash or equivalent
value through a nonqualified arrangement or arrangement would not materially
increase the tax liabilities of Officer under federal or state income tax or
estate tax laws.

 

4

 

F. Termination by Illini With Cause. Prior
to or during the Firm Term, Illini may terminate this Agreement for Cause.  For purposes of this Agreement, Cause shall
mean;

 

1.               The
Officer’s willful and material breach of a provision of this Agreement;  or

 

2.               The
Officer willfully engages in illegal conduct or gross misconduct, which
materially and demonstrably injures Illini;

 

For purposes of
determining whether “Cause” exists, no act or failure to act, on the Officer’s
part shall be considered “willful” unless it is done, or omitted to be done, by
the Officer in bad faith or without reasonable belief by the Officer that his
action or omission was in the best interest of Illini. In the event of the
Officer’s termination for Cause, Illini will have no further obligation to the
Officer under the Agreement from the date of such termination.

 

G. Termination Following Change in Control.
In the event there is a Change in Control of Illini, as defined in Section H
below, during the Term, and (1) within the period commencing twelve months
prior to the date of a Change in Control and ending twelve months following the
date of the Change in Control (the “Firm Term”), the Officer’s employment
hereunder is terminated by the Illini other than for Cause, as defined in
Section II, F; or (2) Within the Firm Term, the Officer resigns from his
employment hereunder upon thirty days written notice given to Illini within
thirty days following a material change in the Officer’s title, authorities or
duties, in effect immediately prior to the Change in Control, a reduction in
the compensation or a reduction in benefits provided pursuant to this Agreement
or the Compensation and Benefit Plans below the amount of compensation and
benefits in effect immediately prior to the Change in Control, or a change of
the Officer’s principal place of employment without his consent to a city more
than 25 miles from Springfield, Illinois, then the Officer shall have no
further obligation to Illini hereunder, except the duty not to disclose
Confidential Information in accordance with Section I, E, and Illini shall have
no further obligation to the Officer hereunder from the date of termination
except (i) to pay to the Officer the salary payments described in Section I, B,
in the amount in effect on the date of termination, for a period of twelve
months from the date of termination, (ii) to pay to the Officer any other
benefits due under the Compensation and Benefit Plans without imposing further
condition or reduction thereof, and (iii) to pay to the Officer reasonable
expenses of out placement within the financial institutions industry or
financial industry following the date of termination; provided, however, out
placement expenses shall be paid only upon actually incurring such expenses and
Officer’s

 

5

 

furnishing of evidence
thereof to the Illini and shall not include moving or relocation expenses and
provided, however, that any benefit to be provided  by the Illini through cash of equivalent values or through a nonqualified
arrangement or arrangements if, in the judgment of the Illini, permitting the
Officer to participate in such plan after the date of termination would
adversely affect the tax status of such plan.

 

H. Change in Control Defined. A Change in
Control of the Illini shall have occurred:

 

1.               On
the fifth day preceding the scheduled expiration date of a tender offer by, or
exchange offer by any corporation, person, other entity or group (other than
Illini or any of its wholly owned subsidiaries), to acquire Voting Stock of
Illini if:

 

i.                  After
giving effect to such offer such corporation, person, other entity or group
would own 50% or more of the Voting Stock of the Illini;

 

ii.               There
shall have been filed documents with the Securities and Exchange Commission in
connection therewith (or, if no such filing is required, public evidence that
the offer has already commenced); and such corporation, person, other entity or
group has secured all required regulatory approvals to own or control 50% or
more of the Voting Stock of Illini;

 

2.               If
the shareholders of Illini approve a definitive agreement to merger or
consolidate Illini with or into another corporation in a transaction in which
neither Illini nor any of its wholly owned subsidiaries will be the surviving
corporation, or to sell or otherwise dispose of all or substantially all of the
Illini’s assets to any corporation, person, other entity or group (other than
Illini or any of its wholly owned subsidiaries), and such definitive agreement
is consummated;

 

i.                  If
any corporation, person, other entity or group (other than Illini or any of its
wholly owned subsidiaries) becomes the Beneficial Owner (as that term is
defined in the Securities and Exchange Commission’s Rule 13d-3 under the
Securities Exchange Act of 1934) of stock representing 50% or more of the
Voting Stock of Illini; or

 

ii.               If
during any period of two consecutive years Continuing Directors cease to
comprise a majority of Illini’s Board of Directors.

 

3.               The
term “Continuing Director’ means:

 

6

 

i.                  Any
member of the Board of Directors of the Illini at the beginning of any period
of two consecutive years; and

 

ii.               Any
person who subsequently become s a member of the Board of Directors of the
Illini, if:

 

(1) Such person’s
nomination for election or election to the Board of Directors of Illini or
Illini is recommended or approved by resolution of a majority of the Continuing
Directors; or

 

(2) Such person is
included a nominee in a proxy statement of the Illini distributed when a
majority of the Board of Directors of Illini or Illini consists of Continuing
Directors.

 

4.               “Voting
Stock” means those shares of Illini entitled to vote generally in the election
of directors.

 

I. Termination of Related Offices.  The parties agree that in the event
Officer’s employment by Illini is terminated for any reason, Officer will
immediately resign from all other positions or offices held with Illini,
including any directorships with Illini, or any subsidiaries thereof.

 

J. Officer’s Costs of Enforcement.  Illini shall pay all expenses of Officer,
including but not limited to attorney’s fees, incurred in enforcing payments by
Illini pursuant to this Agreement.

 

Section III. MISCELLANEOUS

 

A. Assignment of Officer’s Rights.  The Officer may not assign, pledge or
otherwise transfer any of the benefits of this Agreement either before or after
termination of employment, and any purported assignment, pledge or transfer of
any payment to be made by Illini” hereunder shall be void and of no
effect.  No payment to be made to the
Officer hereunder shall be subject to the claims of creditors of the Officer.

 

B. Agreements Binding on Successor. This
Agreement shall be binding and inure to the benefit of the parties hereto and
their respective successors, assign, personal representatives, heirs, legatees
and beneficiaries.

 

C. Notices.  Any notice required or desired to be given under this Agreement
shall be deemed given if in writing and sent by first class mail to the Officer
or Illini, at his or its address as set forth above, or to such other address
of which either the Officer or Illini shall notify the other in writing.

 

D. Waiver of Breach.  The waiver by either party of a breach of
any provision of this Agreement shall not operate or be construed as a waiver
of any subsequent breach by either the Officer or Illini.

 

7

 

E. Intellectual Property Rights.  Officer
shall have sole and exclusive rights over any intellectual property created by
him while employed under this Agreement, and shall not be subject to claims by
Illini of rights they may have under equity or statute arising from Officer’s
employment with Illini.

 

F. Entire Agreement.  This Agreement contains the entire
understanding of the parties and supersedes prior agreements between Officer
and Illini.  It may be modified or
amended only by an agreement in writing signed by the party against whom
enforcement of any change or amendment is sought.

 

G. Severability of Provisions.   If for any reason any paragraph, term or
provision of this Agreement is held to be invalid or unenforceable, all other
valid provisions herein shall remain in full force and effect and all
paragraphs, terms and provisions of this Agreement shall be deemed to be
several in nature. An Offer of Employment containing various special terms and
conditions of the Officer’s employment was made between Illini and Officer and
is attached to this Agreement and incorporated hereinto by this reference.

 

H. Governing Law.  This Agreement is made in, and shall be governed by, the laws of
the State of Illinois.

 

 

IN WITNESS WHEREOF, the parties have
executed this Agreement as of the day and year first set forth above.

 

 

	
  ILLINI
  CORPORATION

  	
  [OFFICER]

  
	
  ILLINI
  BANK

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Burnard K. McHone

  	
   

  	
  /s/ Dennis B. Guthrie

  	
   

  
	
  Its: 

  	
  President

  	
   

  	
  Date: 

  	
  1-30-04

  	
   

  
	
  Date:

  	
  1-27-04

  	
   

  	
   

  
										

 

8

 

 

Exhibit
A

 

DESCRIPTION
OF RESPONSIBILITES AND DUTIES

 

 

[Insert or attach job
description.]

 

9

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