Document:

CFS Bancorp Inc Form 8-K Exhibit 10.7

    
      
        
          Exhibit
            10.7

           

          EMPLOYMENT
            AGREEMENT

        

        

        

        AGREEMENT
          dated this 1st
          day of
          July 2006 between Citizens Financial Bank (the "Bank"), a federally chartered
          savings bank, and Thomas L. Darovic (the "Executive").

         

        

        WITNESSETH

        

        WHEREAS,
          the Executive is presently an officer of CFS Bancorp, Inc. (the "Corporation")
          and the Bank (together, the "Employers");

         

        WHEREAS,
          the Employers desire to be ensured of the Executive's continued active
          participation in the business of the Employers;

         

        WHEREAS,
          the Corporation and the Bank desire to enter into separate agreements with
          the
          Executive with respect to his employment by each of the Employers;
          and

         

        WHEREAS,
          in order to induce the Executive to remain in the employ of the Employers
          and in
          consideration of the Executive's agreeing to remain in the employ of the
          Employers, the parties desire to specify the severance benefits which shall
          be
          due the Executive by the Bank in the event that his employment with the
          Bank is
          terminated under specified circumstances;

         

        NOW
          THEREFORE, in consideration of the mutual agreements herein contained,
          and upon
          the other terms and conditions hereinafter provided, the parties hereby
          agree as
          follows:

         

        
          	1)  	
                  Definitions.
                    

                

        

         

        The
          following words and terms shall have the meanings set forth below for the
          purposes of this Agreement:

         

        
          	a)  	
                  Average
                    Annual Compensation. The
                    Executive's "Average Annual Compensation" for purposes of this
                    Agreement
                    shall be deemed to mean the average Base Salary, cash bonuses
                    and amounts
                    allocated to the Executive under any qualified employee benefit
                    plans of
                    the Employers for the preceding three years.

                

        

         

        
          	b)  	
                  Base
                    Salary.
                    "Base Salary" shall have the meaning set forth in Section 4(a)
                    hereof.

                

        

         

        
          	c)  	
                  Cause.
                    Termination of the Executive's employment for "Cause" shall mean
                    termination because of personal dishonesty, incompetence, willful
                    misconduct, breach of fiduciary duty involving personal profit,
                    intentional failure to perform stated duties, willful violation
                    of any
                    law, rule or regulation (other than traffic violations or similar
                    offenses) or final cease-and-desist order or material breach
                    of any
                    provision of this Agreement.

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	d)  	
                  Change
                    in Control. “Change
                    in Control” means the occurrence of any of the following: (i) an event
                    that would be required to be reported in response to Item 5.01
                    of Form 8-K
                    or Item 6(e) of Schedule 14A of Regulation 14A pursuant to the
                    1934
                    Securities and Exchange Act of 1934, as amended (1934 Act), or
                    any
                    successor thereto, whether or not any class of securities of
                    the
                    Corporation is registered under the 1934 Act; (ii) any “person” is or
                    becomes the “beneficial owner” (as defined in Rule 13d-3 under the 1934
                    Act), directly or indirectly, of securities of the Corporation
                    representing 20% or more of the combined voting power of the
                    Corporation’s
                    then outstanding securities; or (iii) during any period of thirty-six
                    consecutive months, individuals who at the beginning of such
                    period
                    constitute the Board of Directors of the Corporation cease for
                    any reason
                    to constitute at least a majority thereof unless the election,
                    or the
                    nomination for election by stockholders, of each new director
                    was approved
                    by a vote of at least two-thirds of the directors then still
                    in office who
                    were directors at the beginning of the period.

                

        

         

        
          	i)  	
                  For
                    purposes of the definition of “Change in Control,” a Person or group of
                    Persons does not include the CFS Bancorp, Inc. Employee Stock
                    Ownership
                    Plan Trust which forms a part of the CFS Bancorp, Inc. Employee
                    Stock
                    Ownership Plan (the “ESOP”), or any other employee benefit plan,
                    subsidiary or affiliate of the Corporation, and the outstanding
                    shares of
                    common stock of the Corporation, on a fully diluted basis, include
                    all
                    shares owned by the ESOP, whether allocated or unallocated to
                    the accounts
                    of participants, thereunder.

                

        

         

        
          	ii)  	
                  For
                    purposes of the definition of “Change in Control,” the term “Person” means
                    any natural person, proprietorship, partnership, corporation,
                    limited
                    liability company, organization, firm, business, joint venture,
                    association, trust or other entity and any government agency,
                    body or
                    authority.

                

        

         

        
          	e)  	
                  Code.
                    "Code" shall mean the Internal Revenue Code of 1986, as
                    amended.

                

        

         

        
          	f)
                    	
                  Date
                    of Termination.
                    "Date of Termination" shall mean (i) if the Executive's employment
                    is
                    terminated for Cause or for Disability, the date specified in
                    the Notice
                    of Termination, and (ii) if the Executive's employment is terminated
                    for
                    any other reason, the date on which a Notice of Termination is
                    given or as
                    specified in such Notice.

                

        

         

        
          	g)  	
                  Disability.
                    Termination by the Bank of the Executive's employment based on
                    "Disability" shall mean termination because of any physical or
                    mental
                    impairment which qualifies the Executive for disability benefits
                    under the
                    applicable long-term disability plan maintained by the Employers
                    or any
                    subsidiary or, if no such plan applies, which would qualify the
                    Executive
                    for disability benefits under the Federal Social Security
                    System.

                

        

         

        
          	h)  	
                  Good
                    Reason. Termination
                    by the Executive of the Executive's employment for "Good Reason"
                    shall
                    mean termination by the Executive within twelve months following
                    a Change
                    in Control of the Corporation based
                    on:

                

        

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        
          	i)  	
                  Without
                    the Executive's express written consent, the failure to elect
                    or to
                    re-elect or to appoint or to re-appoint the Executive to the
                    offices of
                    Executive Vice President of Retail Banking for the Bank or a
                    material
                    adverse change made by the Employers in the Executive's functions,
                    duties
                    or responsibilities as an Executive Vice President of the
                    Bank;

                

        

         

        
          	ii)  	
                  Without
                    the Executive's express written consent, a reduction by either
                    of the
                    Employers in the Executive's Base Salary as the same may be increased
                    from
                    time to time or, except to the extent permitted by Section 4(b)
                    hereof, a
                    reduction in the package of fringe benefits provided to the Executive,
                    taken as a whole;

                

        

         

        
          	iii)  	
                  The
                    principal executive office of either of the Employers is relocated
                    more
                    than ten miles from Munster, Indiana or, without the Executive's
                    express
                    written consent, either of the Employers require the Executive
                    to be based
                    anywhere other than an area in which the Employers' principal
                    executive
                    office is located, except for required travel on business of
                    the Employers
                    to an extent substantially consistent with the Executive's present
                    business travel obligations;

                

        

         

        
          	iv)  	
                  Any
                    purported termination of the Executive's employment for Disability
                    or
                    Retirement which is not effected pursuant to a Notice of Termination
                    satisfying the requirements of paragraph (k) below;
                    or

                

        

         

        
          	vi)  	
                  The
                    failure by the Bank to obtain the assumption of and agreement
                    to perform
                    this Agreement by any successor.

                

        

         

        
          	i)  	
                  IRS.“IRS”
                    shall mean the Internal Revenue
                    Service.

                

        

         

        
          	j)  	
                  Key
                    Employee.
                    "Key
                    Employee"
                    means an employee who is:

                

        

         

        
          	i)  	
                  An
                    officer of the Corporation having annual compensation greater
                    than
                    $140,000;

                

        

         

        
          	ii)  	
                  A
                    five-percent owner of the Corporation;
                    or

                

        

         

        
          	iii)  	
                  A
                    one-percent owner of the Corporation having an annual compensation
                    greater
                    than $150,000.

                

        

         

        For
          purposes of determining who is an officer for purposes of Section 1(j)(i),
          no
          more than 50 employees (or, if lesser, the greater of three or 10 percent
          of the
          employees) shall be treated as officers, and those categories of employees
          listed in Code Section 414(q)(5) shall be excluded. The
          $140,000 amount shall be adjusted at the same time and in the same manner
          as
          under Code Section 415(d), except that the base period shall be the calendar
          quarter beginning July 1, 2001, and any increase under this sentence which
          is
          not a multiple of $5,000 shall be rounded to the next lower multiple of
          $5,000.

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        

        
          	k)  	
                  Notice
                    of Termination.
                    Any purported termination of the Executive's employment by the
                    Bank for
                    any reason, including without limitation for Cause, Disability
                    or
                    Retirement, or by the Executive for any reason, including without
                    limitation for Good Reason, shall be communicated by written
                    "Notice of
                    Termination" to the other party hereto. For purposes of this
                    Agreement, a
                    "Notice of Termination" shall mean a dated notice which (i) indicates
                    the
                    specific termination provision in this Agreement relied upon,
                    (ii) sets
                    forth in reasonable detail the facts and circumstances claimed
                    to provide
                    a basis for termination of Executive's employment under the provision
                    so
                    indicated, (iii) specifies a Date of Termination, which shall
                    be not less
                    than 30 nor more than 90 days after such Notice of Termination
                    is given,
                    except in the case of the Bank's termination of Executive's employment
                    for
                    Cause, which shall be effective immediately; and (iv) is given
                    in the
                    manner specified in Section 11
                    hereof.

                

        

         

        
          	l)  	
                  Retirement.
                    "Retirement" shall mean voluntary termination by the Executive
                    after the
                    Executive attains the age 55, with at least five years of active
                    service.

                

        

         

        
          	m)  	
                  Separation
                    from Service.
                    "Separation
                    from Service"
                    means the date on which the Executive dies, retires or otherwise
                    experiences a Termination of Employment with the Corporation.
                    Provided,
                    however, a Separation from Service does not occur if the Executive
                    is on
                    military leave, sick leave, or other bona fide leave of absence
                    (such as
                    temporary employment by the government) if the period of such
                    leave does
                    not exceed six months, or if the leave is for a longer period,
                    so long as
                    the individual’s right to reemployment with the Corporation is provided
                    either by statute or by contract. If the period of leave exceeds
                    six
                    months and the Executive’s right to reemployment is not provided either by
                    statute or contract, there shall be a Separation from Service
                    on the first
                    date immediately following such six-month period. Executive shall
                    incur a
                    "Termination
                    of Employment"
                    when a termination of employment is incurred under Proposed Treasury
                    Regulation 1.409A-1(h)(ii) or any final version of such Proposed
                    Regulation.

                

        

         

        
          	n)  	
                  Specified
                    Employee.
                    “Specified Employee” means an employee who is a “Key Employee” if the
                    Corporation’s stock is publicly traded on an established securities
                    market. An employee shall be a Specified Employee for the twelve-month
                    period beginning on the April 1st
                    following any calendar year in which the employee is a Key
                    Employee.

                

        

         

        
          	2)  	
                  Term
                    of Employment.

                

        

         

        
          	a)  	
                  The
                    Bank hereby employs the Executive as its Executive Vice President
                    of
                    Retail Banking, and the Executive hereby accepts said employment
                    and
                    agrees to render such services to the Bank on the terms and conditions
                    set
                    forth in this Agreement. The term of this Agreement shall be
                    a period of
                    twelve months commencing as of the date hereof (the "Commencement
                    Date"),
                    subject to earlier termination as provided herein. Reference
                    herein to the
                    term of this Agreement shall refer to both such initial term
                    and any
                    extended terms. The Board of Directors of the Bank shall review
                    on a
                    periodic basis (and no less 

                

        

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        
          	  	
                  frequently
                    than annually) whether to permit further extensions of the term
                    of this
                    Agreement. As part of such review, the Board of Directors shall
                    consider
                    all relevant factors, including the Executive's performance hereunder,
                    and
                    shall either expressly approve further extensions of the time
                    of this
                    Agreement or decide to provide notice to the
                    contrary.

                

        

         

        
          	b)  	
                  During
                    the term of this Agreement, the Executive shall perform such
                    executive
                    services for the Bank as may be consistent with his titles and
                    from time
                    to time assigned to him by the Bank’s Board of Directors.
                    The Executive further agrees to serve without additional compensation
                    as
                    an officer and director of any of the Bank's subsidiaries and
                    agrees that
                    any amounts received from such corporation may be offset against
                    the
                    amounts due hereunder. In addition, it is agreed that the Bank
                    may assign
                    the Executive to one of its subsidiaries for payroll
                    purposes.

                

        

         

        
          	3)  	
                  Loyalty,
                    Confidentiality and
                    Non-Competition

                

        

         

        
          	a)  	
                  The
                    Executive shall devote his full time and best efforts to the
                    performance
                    of his employment under this Agreement. During the term of this
                    Agreement,
                    the Executive shall not, at any time or place, either directly
                    or
                    indirectly engage in any business or activity in competition
                    with the
                    business affairs or interests of the Employers or be a director,
                    officer
                    or consultant to any bank, savings and loan association, credit
                    union,
                    thrift, savings bank, or similar institution in the Chicago
                    CMSA.

                

        

         

        
          	b)  	
                  For
                    a period of one year from the date of voluntary termination,
                    or
                    termination for Cause, the Executive shall not, at any time or
                    place,
                    either directly or indirectly engage in any business or activity
                    in
                    competition with the business affairs or interests of the Employers
                    or be
                    a director, officer or consultant to any bank, savings and loan
                    association, credit union, thrift, savings bank, or similar institution
                    in
                    the Chicago CMSA. 

                

        

         

        
          	c)  	
                  For
                    purposes of this Agreement, directly or indirectly engaging in
                    any
                    business activity in competition with the business or affairs
                    of the
                    Employers includes, but is not limited to, serving or acting
                    as an owner,
                    partner, agent, beneficiary, or employee of any person, firm
                    or corporate
                    entity so engaged; except that nothing herein contained shall
                    be deemed to
                    prevent or limit the right of Executive to invest any of his
                    surplus funds
                    in the capital stock or other securities of any corporation whose
                    stock or
                    securities are publicly owned or are regularly traded on any
                    public
                    exchange, nor shall anything herein contained be deemed to prevent
                    employee from investing or limit employee's right to invest his
                    surplus
                    funds in real estate. 

                

        

         

        
          	d)  	
                  All
                    information relating to business of the Employers including,
                    but not
                    limited to, that business obtained or serviced by Executive and
                    all
                    customer listings, contact lists, expiration cards, asset reports,
                    instruments, documents, papers and other material used in connection
                    with
                    such business, shall be the exclusive property of the Employers.
                    Executive
                    shall keep all such information and material confidential; none
                    of it
                    shall be 

                

        

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  copied,
                    reproduced or duplicated without the express written permission
                    of the
                    Employers, and Executive shall return all material containing
                    such
                    information to Employers upon their request or upon termination
                    of
                    employment. Executive also agrees that he or she shall not utilize
                    the
                    confidential information or trade secrets of the Employers, either
                    directly or indirectly, for any purposes except performance of
                    the
                    Executive's responsibilities and in furtherance of the Employers’
                    business, unless otherwise expressly authorized by Employers
                    in writing in
                    advance.

                

        

         

        
          	e)  	
                  Executive
                    agrees that, during his employment, and for a period of one year
                    following
                    the date of his involuntary termination of employment for Cause,
                    or his
                    voluntary termination without Good Reason, the
                    Executive:

                

        

         

        
          	i)  	
                  shall
                    not solicit any of the Employers’ past or current customers or clients for
                    the benefit of anyone other than Employers or their
                    affiliates;

                

        

         

        
          	ii)  	
                  shall
                    not divulge the names of any of the Employers’ past or then current
                    customers to any other person, corporation or
                    entity;

                

        

         

        
          	iii)  	
                  shall
                    not divulge to anyone, except the Employers or their representatives,
                    any
                    information regarding their management strategies, marketing
                    information
                    or goals, policies and/or other information regarding the affairs
                    of the
                    Employers, all of which Executive is hereby obligated to keep
                    secret,
                    however and whenever such information comes to his or her attention;
                    and

                

        

         

        
          	iv)  	
                  shall
                    not, either directly or indirectly, induce or solicit any person
                    to leave
                    the employ of the Employers.

                

        

         

        
          	4)  	
                  Compensation
                    and Benefits. 

                

        

         

        
          	a)  	
                  The
                    Employers shall compensate and pay the Executive for his services
                    during
                    the term of this Agreement at a minimum base salary of $171,000
                    per year
                    ("Base Salary"), which may be increased from time to time in
                    such amounts
                    as may be determined by the Boards of Directors of the Employers
                    and may
                    not be decreased without the Executive's express written consent.
                    In
                    addition to his Base Salary, the Executive shall be entitled
                    to receive
                    during the term of this Agreement such bonus payments as may
                    be determined
                    by the Boards of Directors of the
                    Employers.

                

        

         

        
          	b)  	
                  During
                    the term of this Agreement, the Executive shall be entitled to
                    participate
                    in and receive the benefits of any pension or other retirement
                    benefit
                    plan, profit sharing, stock option, employee stock ownership,
                    or other
                    plans, benefits and privileges given to employees and executives
                    of the
                    Employers, to the extent commensurate with his then duties and
                    responsibilities, as fixed by the Boards of Directors of the
                    Employers.
                    The Bank shall not make any changes in such plans, benefits or
                    privileges
                    which would adversely affect the Executive's rights or benefits
                    thereunder, unless such change occurs

                

        

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  pursuant
                    to a program applicable to all executive officers of the Bank
                    and does not
                    result in a proportionately greater adverse change in the rights
                    of or
                    benefits to the Executive as compared with any other executive
                    officer of
                    the Bank. Nothing paid to the Executive under any plan or arrangement
                    presently in effect or made available in the future shall be
                    deemed to be
                    in lieu of the salary payable to the Executive pursuant to Section
                    4(a)
                    hereof.

                

        

         

        
          	c)  	
                  During
                    the term of this Agreement, the Executive shall be entitled to
                    paid annual
                    vacation in accordance with the policies as established from
                    time to time
                    by the Boards of Directors of the Employers. The Executive shall
                    not be
                    entitled to receive any additional compensation from the Employers
                    for
                    failure to take a vacation, nor shall the Executive be able to
                    accumulate
                    unused vacation time from one year to the next, except to the
                    extent
                    authorized by the Boards of Directors of the
                    Employers.

                

        

         

        
          	d)  	
                  In
                    the event the Executive's employment is terminated due to Disability
                    or
                    Retirement, and
                    provided the Employee is not otherwise employed in a position
                    providing
                    substantially similar benefits, the Employer will continue, at
                    its cost
                    and for the remaining term of this Agreement, life and medical
                    insurance
                    coverage for the Executive and his spouse at substantially similar
                    levels
                    of coverage and benefits as the Employers provide at such time
                    for its
                    then existing senior executives. 

                

        

         

        
          	e)  	
                  The
                    Executive's compensation, benefits and expenses shall be paid
                    by the
                    Corporation and the Bank in the same proportion as the time and
                    services
                    actually expended by the Executive on behalf of each respective
                    Employer.

                

        

         

        
          	f)  	
                  During
                    the term of the Agreement, the Employers shall provide suitable
                    office
                    space, desk,
                    chairs, filing cabinets, telephones and other usual and customary
                    office
                    furniture, fixtures and equipment adequate for the efficient
                    performance
                    of the duties assigned to the
                    Executive.

                

        

         

        
          	g)  	
                  During
                    the term of this Agreement, the Employers shall provide to the
                    Executive,
                    at the Employer's cost, all perquisites which other senior executives
                    of
                    the Company are otherwise generally entitled to receive. 

                

        

         

        
          	h)  	
                  During
                    the term of this Agreement, the Bank
                    shall provide to Executive the use of an automobile with an average
                    annual
                    lease cost not to exceed $10,000 per year. The Bank agrees to
                    replace the
                    automobile with a new one at Executive's request no more often
                    than once
                    every three years. The Bank shall pay all automobile operating
                    expenses
                    incurred by Executive in the performance of Executive's duties.
                    The Bank
                    shall procure and maintain in force an automobile liability policy
                    for the
                    automobile with coverage, including Executive, in the minimum
                    amount of
                    $1,000,000 combined single limit on bodily injury and property
                    damage.

                

        

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        

        
          	5)  	
                  Expenses. 
                    The
                    Employers shall reimburse the Executive or otherwise provide
                    for or pay
                    for all reasonable expenses incurred by the Executive in furtherance
                    of or
                    in connection with the business of the Employers, including,
                    but not by
                    way of limitation, automobile expenses and other traveling expenses,
                    and
                    all reasonable entertainment expenses (whether incurred at the
                    Executive's
                    residence, while traveling or otherwise), subject to such reasonable
                    documentation and other limitations as may be established by
                    the Boards of
                    Directors of the Employers. If such expenses are paid in the
                    first
                    instance by the Executive, the Employers shall reimburse the
                    Executive
                    therefor.

                

        

         

        
          	6)  	
                  Termination.

                

        

         

        
          	a)  	
                  The
                    Bank shall have the right, at any time upon prior Notice of Termination,
                    to terminate the Executive's employment hereunder for any reason,
                    including without limitation termination for Cause, Disability
                    or
                    Retirement, and the Executive shall have the right, upon prior
                    Notice of
                    Termination, to terminate his employment hereunder for any
                    reason.

                

        

         

        
          	b)  	
                  In
                    the event that (i) the Executive's employment is terminated by
                    the Bank
                    for Cause or (ii) the Executive terminates his employment hereunder
                    other
                    than for Disability, Retirement, death or Good Reason, the Executive
                    shall
                    have no right pursuant to this Agreement to compensation or other
                    benefits
                    for any period after the applicable Date of
                    Termination.

                

        

         

        
          	c)  	
                  In
                    the event that the Executive's employment is terminated as a
                    result of
                    Disability, Retirement or the Executive's death during the term
                    of this
                    Agreement, the Executive shall have no right pursuant to this
                    Agreement to
                    compensation or other benefits for any period after the applicable
                    Date of
                    Termination, except as provided for in Section 4(d)
                    hereof.

                

        

         

        
          	d)  	
                  In
                    the event that (i) the Executive's employment is terminated by
                    the Bank
                    for other than Cause, Disability, Retirement or the Executive's
                    death or
                    (ii) such employment is terminated by the Executive (a) due to
                    a material
                    breach of this Agreement by the Bank, which breach has not been
                    cured
                    within fifteen days after a written notice of non-compliance
                    has been
                    given by the Executive to the Employers, or (b) for Good Reason,
                    then the
                    Bank shall, subject to the provisions of Section 7 hereof, if
                    applicable:

                

        

         

        
          	i)  	
                  pay
                    to the Executive, a cash severance amount equal to the Executive's
                    Average
                    Annual Compensation paid by the Bank, in two equal installments,
                    with the
                    first installment to be paid on the first business day of the
                    month
                    following the Executive’s Date of Termination and the second installment
                    to be paid no later than January 15th
                    of
                    the calendar year following the year in which the first installment
                    was
                    paid; and

                

        

         

        
          	ii)  	
                  maintain
                    and provide for a period ending at the earlier of (i) the expiration
                    of
                    the remaining term of employment pursuant hereto prior to the
                    Notice of
                    Termination or (ii) the date of the Executive's full-time employment
                    by
                    another employer (provided that the Executive is entitled under
                    the terms
                    of such employment to benefits substantially similar to those
                    described in
                    this subparagraph, at no cost to the

                

        

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        
          	  	
                  Executive,
                    the Executive's continued participation in all group insurance,
                    life
                    insurance, health and accident insurance, disability insurance
                    and other
                    employee benefit plans, programs and arrangements offered by
                    the Bank in
                    which the Executive was entitled to participate immediately prior
                    to the
                    Date of Termination (excluding (x) stock option and restricted
                    stock plans
                    of the Employers, (y) bonuses and other items of cash compensation
                    included in Average Annual Compensation and (z) other benefits, or
                    portions thereof, included in Average Annual Compensation), provided
                    that
                    in the event that the Executive's participation in any plan,
                    program or
                    arrangement as provided in this subparagraph is barred, or during
                    such
                    period any such plan, program or arrangement is discontinued
                    or the
                    benefits thereunder are materially reduced, the Bank shall arrange
                    to
                    provide the Executive with benefits substantially similar to
                    those which
                    the Executive was entitled to receive under such plans, programs
                    and
                    arrangements immediately prior to the Date of
                    Termination.

                

        

         

        
          	e)  	
                  If
                    at the time of the Executive’s Separation from Service, for any reason
                    other than death, the Executive meets the definition of a Specified
                    Employee, payment of all amounts under subsections 6(d)(i) and
                    (ii) and
                    7(a) shall be suspended for six months following the Executive’s
                    Separation from Service. In such event, the first installment
                    shall be
                    paid on the first day following the end of the six-month suspension
                    period. The second installment shall be paid no later than January
                    15th
                    of
                    the calendar year following the year in which the first installment
                    was
                    paid. If the Executive incurs a Separation from Service due to
                    death,
                    regardless of whether the Executive meets the definition of a
                    Specified
                    Employee, payment of his benefit shall not be suspended. Provided,
                    however, that the six-month suspension period shall not apply
                    to the
                    provision of any group insurance, life insurance, health and
                    accident
                    insurance or disability insurance under subsection
                    6(d)(ii).

                

        

         

        
          	7)  	
                  Limitation
                    of Benefits under Certain Circumstances.   If
                    the payments and benefits pursuant to Section 6 hereof, either
                    alone or
                    together with other payments and benefits which the Executive
                    has the
                    right to receive from the Bank, would constitute a "parachute
                    payment"
                    under Section 280G of the Code, the payments and benefits payable
                    by the
                    Bank pursuant to Section 6 hereof shall be reduced, in the manner
                    determined by the Executive, by the amount, if any, which is
                    the minimum
                    necessary to result in no portion of the payments and benefits
                    payable by
                    the Bank under Section 6 being non-deductible to the Bank pursuant
                    to
                    Section 280G of the Code and subject to the excise tax imposed
                    under
                    Section 4999 of the Code. The parties hereto agree that the present
                    value
                    of the payments and benefits payable pursuant to this Agreement
                    to the
                    Executive upon termination shall be limited to three (3) times
                    the
                    Executive's Average Annual Compensation. The determination of
                    any
                    reduction in the payments and benefits to be made pursuant to
                    Section 6
                    shall be based upon the opinion of independent counsel selected
                    by the
                    Bank's independent public accountants and paid by the Bank. Such
                    counsel
                    shall be reasonably acceptable to the Bank and the Executive;
                    shall
                    promptly prepare the foregoing opinion, but in no event later
                    than thirty
                    (30) days from the Date of Termination; and may use such actuaries
                    as such
                    counsel deems necessary or advisable for the purpose. Nothing
                    contained
                    herein shall result in a reduction of any payments or benefits
                    to which
                    the Executive may be entitled upon

                

        

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        
          	  	
                  termination
                    of employment under any circumstances other than as specified
                    in this
                    Section 7, or a reduction in the payments and benefits specified
                    in
                    Section 6 below zero.

                

        

         

        
          	8)  	
                  Mitigation;
                    Exclusivity of Benefits.

                

        

         

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

                

        

         

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

                

        

         

        
          	9)  	
                  Withholding. 
                    All payments required to be made by the Bank hereunder
                    to the
                    Executive shall be subject to the withholding of such amounts,
                    if any,
                    relating to tax and other payroll deductions as the Bank may
                    reasonably
                    determine should be withheld pursuant to any applicable law or
                    regulation.

                

        

         

        
          	10)  	
                  Assignability.
                    The Bank may assign this Agreement and its rights and
                    obligations
                    hereunder in whole, but not in part, to any corporation, bank
                    or other
                    entity with or into which the Bank may hereafter merge or consolidate
                    or
                    to which the Bank may transfer all or substantially all of its
                    assets, if
                    in any such case said corporation, bank or other entity shall
                    by operation
                    of law or expressly in writing assume all obligations of the
                    Bank
                    hereunder as fully as if it had been originally made a party
                    hereto, but
                    may not otherwise assign this Agreement or its rights and obligations
                    hereunder. The Executive may not assign or transfer this Agreement
                    or any
                    rights or obligations hereunder.

                

        

         

        
          	11)  	
                  Notice. 
                    For
                    the purposes of this Agreement, notices and all other communications
                    provided for in this Agreement shall be in writing and shall
                    be deemed to
                    have been duly given when delivered or mailed by certified or
                    registered
                    mail, return receipt requested, postage prepaid, addressed to
                    the
                    respective addresses set forth
                    below:

                

        

         

        
          	a)  	
                  To
                    the Bank:      
Corporate
                    Secretary

                

        

        Citizens
          Financial Bank

        707
          Ridge
          Road

        Munster,
          Indiana 46321

        

        
          	b)  	
                  To
                    the Corporation:   Corporate
                    Secretary

                

        

        CFS
          Bancorp, Inc.

        707
          Ridge
          Road

        Munster,
          Indiana 46321

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

        
        

         

        
          	  	
                  To
                    the Executive:     
                     Thomas
                    L. Darovic

                

        

        
          [Address
            Redacted]

           

           

        

        
          	12)  	
                  Amendment;
                    Waiver.  No
                    provisions of this Agreement may be modified, waived or discharged
                    unless
                    such waiver, modification or discharge is agreed to in writing
                    and signed
                    by the Executive and such officer or officers as may be specifically
                    designated by the Board of Directors of the Bank to sign on its
                    behalf. No
                    waiver by any party hereto at any time of any breach by any other
                    party
                    hereto of, or compliance with, any condition or provision of
                    this
                    Agreement to be performed by such other party shall be deemed
                    a waiver of
                    similar or dissimilar provisions or conditions at the same or
                    at any prior
                    or subsequent time.

                

        

         

        
          	13)  	
                  Governing
                    Law.  The validity,
                    interpretation, construction and performance of this Agreement
                    shall be
                    governed by the laws of the United States where applicable and
                    otherwise
                    by the substantive laws of the State of
                    Indiana.

                

        

         

        
          	14)  	
                  Nature
                    of Obligations.  Nothing
                    contained herein shall create or require the Bank to create a
                    trust of any
                    kind to fund any benefits which may be payable hereunder, and
                    to the
                    extent that the Executive acquires a right to receive benefits
                    from the
                    Bank hereunder, such right shall be no greater than the right
                    of any
                    unsecured general creditor of the
                    Bank.

                

        

         

        
          	15)  	
                  Headings. 
                    The
                    section headings contained in this Agreement are for reference
                    purposes
                    only and shall not affect in any way the meaning or interpretation
                    of this
                    Agreement.

                

        

         

        
          	16)  	
                  Validity. 
                    The
                    invalidity or unenforceability of any provision of this Agreement
                    shall
                    not affect the validity or enforceability of any other provisions
                    of this
                    Agreement, which shall remain in full force and
                    effect.

                

        

         

        
          	17)  	
                  Counterparts. 
                    This
                    Agreement may be executed in one or more counterparts, each of
                    which shall
                    be deemed to be an original but all of which together shall constitute
                    one
                    and the same
                    instrument.

                

        

         

        
          	18)  	
                  Regulatory
                    Actions.  The
                    following provisions shall be applicable to the parties to the
                    extent that
                    they are required to be included in employment agreements between
                    a
                    savings association and its employees pursuant to Section 563.39(b)
                    of the
                    Regulations Applicable to All Savings Associations, 12 C.F.R.
§563.39(b),
                    or any successor thereto, and shall be controlling in the event
                    of a
                    conflict with any other provision of this Agreement, including
                    without
                    limitation Section 6 hereof.

                

        

         

        
          	a)  	
                  If
                    the Executive is suspended from office and/or temporarily prohibited
                    from
                    participating in the conduct of the Employers' affairs pursuant
                    to notice
                    served under Section 8(e)(3) or Section 8(g)(1) of the Federal
                    Deposit
                    Insurance Act ("FDIA") (12 U.S.C. §§1818(e)(3) and 1818(g)(1)), the
                    Employers' obligations under this Agreement shall be suspended
                    as of the
                    date of service, unless stayed by appropriate proceedings.  If the
                    charges in the 

                

        

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  notice
                    are dismissed, the Employers may, in their discretion: (i) pay
                    the
                    Executive all or part of the compensation withheld while its
                    obligations
                    under this Agreement were suspended, and (ii) reinstate (in whole
                    or in
                    part) any of its obligations which were
                    suspended.

                

        

         

        
          	b)  	
                  If
                    the Executive is removed from office and/or permanently prohibited
                    from
                    participating in the conduct of the Employers' affairs by an
                    order issued
                    under Section 8(e)(4) or Section 8(g)(1) of the FDIA (12 U.S.C.
                    §§1818(e)(4) and (g)(1)), all obligations of the Employers under
                    this
                    Agreement shall terminate as of the effective date of the order,
                    but
                    vested rights of the Executive and the Employers as of the date
                    of
                    termination shall not be affected.

                

        

         

        
          	c)  	
                  If
                    the Bank is in default, as defined in Section 3(x)(1) of the
                    FDIA (12
                    U.S.C. §1813(x)(1)), all obligations under this Agreement shall terminate
                    as of the date of default, but vested rights of the Executive
                    and the
                    Employers as of the date of termination shall not be
                    affected.

                

        

         

        
          	d)  	
                  All
                    obligations under this Agreement shall be terminated pursuant
                    to 12 C.F.R.
                    §563.39(b)(5) (except to the extent that it is determined that
                    continuation of the Agreement for the continued operation of
                    the Employers
                    is necessary): (i) by the Director of the Office of Thrift Supervision
                    ("OTS"), or his/her designee, at the time the Federal Deposit
                    Insurance
                    Corporation ("FDIC") enters into an agreement to provide assistance
                    to or
                    on behalf of the Bank under the authority contained in Section
                    13(c) of
                    the FDIA (12 U.S.C. §1823(c)); or (ii) by the Director of the OTS, or
                    his/her designee, at the time the Director or his/her designee
                    approves a
                    supervisory merger to resolve problems related to operation of
                    the Bank or
                    when the Bank is determined by the Director of the OTS to be
                    in an unsafe
                    or unsound condition, but vested rights of the Executive and
                    the Employers
                    as of the date of termination shall not be
                    affected.

                

        

         

        
          	19)  	
                  Regulatory
                    Prohibition.  Notwithstanding
                    any other provision of this Agreement to the contrary, any payments
                    made
                    to the Executive pursuant to this Agreement, or otherwise, are
                    subject to
                    and conditioned upon their compliance with Section 18(k) of the
                    Federal
                    Deposit Insurance Act (12 U.S.C. §1828(k)) and the regulations promulgated
                    thereunder, including 12 C.F.R. Part 359. In the event of the
                    Executive's termination of employment with the Bank for Cause,
                    all
                    employment relationships and managerial duties with the Bank
                    shall
                    immediately cease regardless of whether the Executive remains
                    in the
                    employ of the Corporation following such termination. Furthermore,
                    following such termination for Cause, the Executive shall not,
                    directly or
                    indirectly, influence or participate in the affairs or the operations
                    of
                    the Bank.

                

        

         

        
          	20)  	
                  Payment
                    of Costs and Legal Fees and Reinstatement of Benefits. 
                    In
                    the event any dispute or controversy arising under or in connection
                    with
                    the Executive's termination is resolved in favor of the Executive,
                    whether
                    by judgment, arbitration or settlement, the Executive shall be
                    entitled to
                    the payment of (a) all legal fees incurred by the Executive in
                    resolving such dispute or controversy, and (2) any back-pay,
                    including Base Salary, bonuses and any other cash
                    

                

        

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

         

        
          	  	
                  compensation,
                    fringe benefits and any compensation and benefits due to the
                    Executive
                    under this Agreement

                

        

         

        
          	21)  	
                  Entire
                    Agreement.  This
                    Agreement embodies the entire agreement between the Bank and
                    the Executive
                    with respect to the matters agreed to herein. All prior agreements
                    between
                    the Bank and the Executive with respect to the matters agreed
                    to herein
                    are hereby superseded and shall have no force or effect. Notwithstanding
                    the foregoing, nothing contained in this Agreement shall affect
                    the
                    agreement of even date being entered into between the Corporation
                    and the
                    Executive.

                

        

         

         

        IN
          WITNESS WHEREOF, this Agreement has been executed as of the date first
          above
          written.

         

         

        
 

        
          Attest:                         CITIZENS
            FINANCIAL BANK
 

           

          /s/
            Monica F. Sullivan               By:
            /s/
            Brian L.Goins      

           

           

                                     EXECUTIVE

          

          

          

                                /s/
            Thomas L.
            Darovic    

                                      Thomas
            L.
            Darovic

        

        

        

        

        

        
          
            
            

          

          
            13CFS Bancorp Inc Form 8-K Exhibit 10.8

    
      Exhibit
        10.8

    

    
      
         
EMPLOYMENT
        AGREEMENT

      

      

      AGREEMENT
        dated this 1st day of July 2006 between CFS Bancorp, Inc. (the "Corporation"),
        an Indiana corporation, and Charles V. Cole (the "Executive").

      

      

      WITNESSETH

      

      WHEREAS,
        the Executive is presently an officer of the Corporation and Citizens Financial
        Bank (the "Bank") (together, the "Employers");

      

      WHEREAS,
        the Employers desire to be ensured of the Executive's continued active
        participation in the business of the Employers;

      

      WHEREAS,
        the Corporation and the Bank desire to enter into separate agreements with
        the
        Executive with respect to his employment by each of the Employers;
        and

      

      WHEREAS,
        in order to induce the Executive to remain in the employ of the Employers
        and in
        consideration of the Executive's agreeing to remain in the employ of the
        Employers, the parties desire to specify the severance benefits which shall
        be
        due the Executive by the Corporation in the event that his employment with
        the
        Corporation is terminated under specified circumstances;

      

      NOW
        THEREFORE, in consideration of the mutual agreements herein contained, and
        upon
        the other terms and conditions hereinafter provided, the parties hereby agree
        as
        follows:

      

      
        	1)  	
                Definitions.  

              

      

      

      The
        following words and terms shall have the meanings set forth below for the
        purposes of this Agreement:

      

      
        	a)  	
                Average
                  Annual Compensation.
                  The Executive's "Average Annual Compensation" for purposes of this
                  Agreement shall be deemed to mean the average Base Salary, cash
                  bonuses
                  and amounts allocated to the Executive under any qualified employee
                  benefit plans of the Employers for the preceding three
                  years.

              

      

      

      
        	b)  	
                Base
                  Salary.
                  "Base Salary" shall have the meaning set forth in Section 4(a)
                  hereof.

              

      

      

      
        	c)  	
                Cause.
                  Termination of the Executive's employment for "Cause" shall mean
                  termination because of personal dishonesty, incompetence, willful
                  misconduct, breach of fiduciary duty involving personal profit,
                  intentional failure to perform stated duties, willful violation
                  of any
                  law, rule or regulation (other than traffic violations or similar
                  offenses) or final cease-and-desist order or material breach of
                  any
                  provision of this Agreement.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	d)  	
                Change
                  in Control.
                  “Change
                  in Control” means the occurrence of any of the following: (i) an event
                  that would be required to be reported in response to Item 5.01
                  of Form 8-K
                  or Item 6(e) of Schedule 14A of Regulation 14A pursuant to the
                  Securities
                  and Exchange Act of 1934 Act, as amended (1934 Act), or any successor
                  thereto, whether or not any class of securities of the Corporation
                  is
                  registered under the 1934 Act; (ii) any “person” is or becomes the
                  “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly
                  or indirectly, of securities of the Corporation representing 20%
                  or more
                  of the combined voting power of the Corporation’s then outstanding
                  securities; or (iii) during any period of thirty-six consecutive
                  months,
                  individuals who at the beginning of such period constitute the
                  Board of
                  Directors of the Corporation cease for any reason to constitute
                  at least a
                  majority thereof unless the election, or the nomination for election
                  by
                  stockholders, of each new director was approved by a vote of at
                  least
                  two-thirds of the directors then still in office who were directors
                  at the
                  beginning of the period. 

              

      

      

      
        	i)  	
                For
                  purposes of the definition of “Change in Control,” a Person or group of
                  Persons does not include the CFS Bancorp, Inc. Employee Stock Ownership
                  Plan Trust which forms a part of the CFS Bancorp, Inc. Employee
                  Stock
                  Ownership Plan (the “ESOP”), or any other employee benefit plan,
                  subsidiary or affiliate of the Corporation, and the outstanding
                  shares of
                  common stock of the Corporation, on a fully diluted basis, include
                  all
                  shares owned by the ESOP, whether allocated or unallocated to the
                  accounts
                  of participants, thereunder.

              

      

      

      
        	ii)  	
                For
                  purposes of the definition of “Change in Control,” the term “Person” means
                  any natural person, proprietorship, partnership, corporation, limited
                  liability company, organization, firm, business, joint venture,
                  association, trust or other entity and any government agency, body
                  or
                  authority.

              

      

      

      
        	e)  	
                Code.
                  "Code"
                  shall mean the Internal Revenue Code of 1986, as
                  amended.

              

      

      

      
        	f)  	
                Date
                  of Termination.
                  "Date of Termination" shall mean (i) if the Executive's employment
                  is
                  terminated for Cause or for Disability, the date specified in the
                  Notice
                  of Termination, and (ii) if the Executive's employment is terminated
                  for
                  any other reason, the date on which a Notice of Termination is
                  given or as
                  specified in such Notice.

              

      

      

      
        	g)  	
                Disability.
                  Termination by the Corporation of the Executive's employment based
                  on
                  "Disability" shall mean termination because of any physical or
                  mental
                  impairment which qualifies the Executive for disability benefits
                  under the
                  applicable long-term disability plan maintained by the Employers
                  or any
                  subsidiary or, if no such plan applies, which would qualify the
                  Executive
                  for disability benefits under the Federal Social Security
                  System.

              

      

      

      
        	h)  	
                Good
                  Reason.
                  Termination by the Executive of the Executive's employment for
                  "Good
                  Reason" shall mean termination by the Executive within twelve months
                  following a Change in Control of the Corporation based
                  on:

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
        	(i)  	
                Without
                  the Executive's express written consent, the failure to elect or
                  to
                  re-elect or to appoint or to re-appoint the Executive to the offices
                  of
                  Chief Financial Officer of the Employers or a material adverse
                  change made
                  by the Employers in the Executive's functions, duties or responsibilities
                  as Chief Financial Officer of the
                  Employers;

              

      

      

      
        	(ii)  	
                Without
                  the Executive's express written consent, a reduction by either
                  of the
                  Employers in the Executive's Base Salary as the same may be increased
                  from
                  time to time or, except to the extent permitted by Section 4(b)
                  hereof, a
                  reduction in the package of fringe benefits provided to the Executive,
                  taken as a whole;

              

      

      

      
        	(iii)  	
                The
                  principal executive office of either of the Employers is relocated
                  more
                  than ten miles from Munster, Indiana or, without the Executive's
                  express
                  written consent, either of the Employers require the Executive
                  to be based
                  anywhere other than an area in which the Employers' principal executive
                  office is located, except for required travel on business of the
                  Employers
                  to an extent substantially consistent with the Executive's present
                  business travel obligations;

              

      

      

      
        	(iv)  	
                Any
                  purported termination of the Executive's employment for Disability
                  or
                  Retirement which is not effected pursuant to a Notice of Termination
                  satisfying the requirements of paragraph (k) below;
                  or

              

      

      

      
        	(v)  	
                The
                  failure by the Corporation to obtain the assumption of and agreement
                  to
                  perform this Agreement by any
                  successor.

              

      

      

      
        	i)  	
                IRS.
                  "IRS"
                  shall mean the Internal Revenue
                  Service.

              

      

      

      
        	j)  	
                Key
                  Employee.
                  "Key
                  Employee"
                  means an employee who is:

              

      

      

      i) An
        officer of the Corporation having annual compensation greater than
        $140,000;

      ii) A
        five-percent owner of the Corporation; or

      iii)
        A
        one-percent owner of the Corporation having an annual compensation greater
        than
        $150,000.

      

      For
        purposes of determining who is an officer for purposes of Section 1(j)(i),
        no
        more than 50 employees (or, if lesser, the greater of three or 10 percent
        of the
        employees) shall be treated as officers, and those categories of employees
        listed in Code Section 414(q)(5) shall be excluded. The
        $140,000 amount shall be adjusted at the same time and in the same manner
        as
        under Code Section 415(d), except that the base period shall be the calendar
        quarter beginning July 1, 2001, and any increase under this sentence which
        is
        not a multiple of $5,000 shall be rounded to the next lower multiple of
        $5,000.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      
        	k)  	
                Notice
                  of Termination.
                  Any purported termination of the Executive's employment by the
                  Corporation
                  for any reason, including without limitation for Cause, Disability
                  or
                  Retirement, or by the Executive for any reason, including without
                  limitation for Good Reason, shall be communicated by written "Notice
                  of
                  Termination" to the other party hereto. For purposes of this Agreement,
                  a
                  "Notice of Termination" shall mean a dated notice which (i) indicates
                  the
                  specific termination provision in this Agreement relied upon, (ii)
                  sets
                  forth in reasonable detail the facts and circumstances claimed
                  to provide
                  a basis for termination of the Executive's employment under the
                  provision
                  so indicated, (iii) specifies a Date of Termination, which shall
                  be not
                  less than 30 nor more than 90 days after such Notice of Termination
                  is
                  given, except in the case of the Corporation's termination of the
                  Executive's employment for Cause, which shall be effective immediately;
                  and (iv) is given in the manner specified in Section 11
                  hereof.

              

      

      

      
        	l)  	
                Retirement.
                  "Retirement" shall mean voluntary termination by the Executive
                  after the
                  Executive attains the age 55, with at least five years of active
                  service.

              

      

      

      
        	m)  	
                Separation
                  from Service.
                  "Separation
                  from Service"
                  means the date on which the Executive dies, retires or otherwise
                  experiences a Termination of Employment with the Corporation. Provided,
                  however, a Separation from Service does not occur if the Executive
                  is on
                  military leave, sick leave, or other bona fide leave of absence
                  (such as
                  temporary employment by the government) if the period of such leave
                  does
                  not exceed six months, or if the leave is for a longer period,
                  so long as
                  the individual’s right to reemployment with the Corporation is provided
                  either by statute or by contract. If the period of leave exceeds
                  six
                  months and the Executive’s right to reemployment is not provided either by
                  statute or contract, there shall be a Separation from Service on
                  the first
                  date immediately following such six-month period. Executive shall
                  incur a
                  "Termination
                  of Employment"
                  when a termination of employment is incurred under Proposed Treasury
                  Regulation 1.409A-1(h)(ii) or any final version of such Proposed
                  Regulation.

              

      

      

      
        	n)  	
                Specified
                  Employee.
                  “Specified Employee” means an employee who is a “Key Employee” if the
                  Corporation’s stock is publicly traded on an established securities
                  market. An employee shall be a Specified Employee for the twelve-month
                  period beginning on the April 1st
                  following any calendar year in which the employee is a Key
                  Employee.

              

      

      

      
        	2)  	
                Term
                  of Employment.

              

      

      

      
        	a)  	
                The
                  Corporation hereby employs the Executive as Chief Financial Officer,
                  and
                  the Executive hereby accepts said employment and agrees to render
                  such
                  services to the Corporation on the terms and conditions set forth
                  in this
                  Agreement. The term of this Agreement shall be a period of 18 months
                  commencing as of the date hereof (the "Commencement Date"), subject
                  to
                  earlier termination as provided herein. Beginning on the day following
                  the
                  Commencement Date, and on each day thereafter, the term of this
                  Agreement
                  shall be extended for a period of one day in addition to the
                  then-remaining term, provided that the Corporation has not given
                  notice to
                  the Executive in writing 

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	 	
                at
                  least 60 days prior to such day that the term of this Agreement
                  shall not
                  be extended further. Reference herein to the term of this Agreement
                  shall
                  refer to both such initial term and such extended terms. The Board
                  of
                  Directors of the Corporation shall review on a periodic basis (and
                  no less
                  frequently than annually) whether to permit further extensions
                  of the term
                  of this Agreement. As part of such review, the Board of Directors
                  shall
                  consider all relevant factors, including the Executive's performance
                  hereunder, and shall either expressly approve further extensions
                  of the
                  time of this Agreement or decide to provide notice to the
                  contrary.

              

      

       

      
        	b)  	
                During
                  the term of this Agreement, the Executive shall perform such executive
                  services for the Corporation as may be consistent with his titles
                  and from
                  time to time assigned to him by the Corporation's Board of
                  Directors.
                  The Executive further agrees to serve without additional compensation
                  as
                  an officer and director of any of the Corporation's subsidiaries
                  and
                  agrees that any amounts received from such corporation may be offset
                  against the amounts due hereunder. In addition, it is agreed that
                  the
                  Corporation may assign the Executive to one of its subsidiaries
                  for
                  payroll purposes.

              

      

      

      
        	3)  	
                 Loyalty,
                  Confidentiality and
                  Non-Competition

              

      

      

      
        	a)  	
                The
                  Executive shall devote his or her full time and best efforts to
                  the
                  performance of his employment under this Agreement. During the
                  term of
                  this Agreement, the Executive shall not, at any time or place,
                  either
                  directly or indirectly engage in any business or activity in competition
                  with the business affairs or interests of the Corporation or be
                  a
                  director, officer or consultant to any bank, savings and loan association,
                  credit union, thrift, savings bank, or similar institution in the
                  Chicago
                  CMSA.

              

      

      

      
        	b)  	
                For
                  a period of 18 months from the date of voluntary termination, or
                  termination for Cause, the Executive shall not, at any time or
                  place,
                  either directly or indirectly engage in any business or activity
                  in
                  competition with the business affairs or interests of the Corporation
                  or
                  be a director, officer or consultant to any bank, savings and loan
                  association, credit union, thrift, savings bank, or similar institution
                  in
                  the Chicago CMSA.

              

      

      

      
        	c)  	
                For
                  purposes of this Agreement, directly or indirectly engaging in
                  any
                  business activity in competition with the business or affairs of
                  the
                  Corporation includes, but is not limited to, serving or acting
                  as an
                  owner, partner, agent, beneficiary, or employee of any person,
                  firm or
                  corporate entity so engaged; except that nothing herein contained
                  shall be
                  deemed to prevent or limit the right of Executive to invest any
                  of his
                  surplus funds in the capital stock or other securities of any corporation
                  whose stock or securities are publicly owned or are regularly traded
                  on
                  any public exchange, nor shall anything herein contained be deemed
                  to
                  prevent Executive from investing or limit Executive's right to
                  invest his
                  surplus funds in real estate.

              

      

      

      
        	d)  	
                All
                  information relating to business of the Employers including, but
                  not
                  limited to, that business obtained or serviced by Executive and
                  all
                  customer listings, contact lists, 

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	 	
                expiration
                  cards, asset reports, instruments, documents, papers and other
                  material
                  used in connection with such business, shall be the exclusive property
                  of
                  the Employers. Executive shall keep all such information and material
                  confidential; none of it shall be copied, reproduced or duplicated
                  without
                  the express written permission of the Employers, and Executive
                  shall
                  return all material containing such information to the Employers
                  upon
                  their request or upon termination of employment. Executive also
                  agrees
                  that he or she shall not utilize the confidential information or
                  trade
                  secrets of the Employers, either directly or indirectly, for any
                  purposes
                  except performance of the Executive's responsibilities and in furtherance
                  of the Employers’ business, unless otherwise expressly authorized by the
                  Employers in writing in advance.

              

      

       

      
        	e)  	
                Executive
                  agrees that, during his employment, and for a period of 18 months
                  following the date of his involuntary termination of employment
                  for Cause,
                  or his voluntary termination without Good Reason, the
                  Executive:

              

      

      

      
        	i)  	
                shall
                  not solicit any of the Employers’ past or current customers or clients for
                  the benefit of anyone other than the Employers or their
                  affiliates;

              

      

      
        	ii)  	
                shall
                  not divulge the names of any of the Employers’ past or then current
                  customers to any other person, corporation or
                  entity;

              

      

      
        	iii)  	
                shall
                  not divulge to anyone, except the Employers or their representatives,
                  any
                  information regarding their management strategies, marketing information
                  or goals, policies and/or other information regarding the affairs
                  of the
                  Employer, all of which Executive is hereby obligated to keep secret,
                  however and whenever such information comes to his or her attention;
                  and

              

      

      
        	iv)  	
                shall
                  not, either directly or indirectly, induce or solicit any person
                  to leave
                  the employ of the Employers.

              

      

      

      
        	4)  	
                Compensation
                  and Benefits.

              

      

      

      
        	a)  	
                The
                  Employers shall compensate and pay the Executive for his services
                  during
                  the term of this Agreement at a minimum base salary of $177,000
                  per year ("Base
                  Salary"), which may be increased from time to time in such amounts
                  as may
                  be determined by the Boards of Directors of the Employers and may
                  not be
                  decreased without the Executive's express written consent. In addition
                  to
                  his Base Salary, the Executive shall be entitled to receive during
                  the
                  term of this Agreement such bonus payments as may be determined
                  by the
                  Boards of Directors of the
                  Employers.

              

      

      

      
        	b)  	
                During
                  the term of this Agreement, the Executive shall be entitled to
                  participate
                  in and receive the benefits of any pension or other retirement
                  benefit
                  plan, profit sharing, stock option, employee stock ownership, or
                  other
                  plans, benefits and privileges given to employees and executives
                  of the
                  Employers, to the extent commensurate with his then duties and
                  responsibilities, as fixed by the Boards of Directors of the Employers.
                  The Corporation shall not make any changes in such plans, benefits
                  or
                  privileges which would adversely affect the Executive's rights
                  or benefits
                  thereunder, unless such change occurs

              

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      
        	  	
                pursuant
                  to a program applicable to all executive officers of the Corporation
                  and
                  does not result in a proportionately greater adverse change in
                  the rights
                  of or benefits to the Executive as compared with any other executive
                  officer of the Corporation. Nothing paid to the Executive under
                  any plan
                  or arrangement presently in effect or made available in the future
                  shall
                  be deemed to be in lieu of the salary payable to the Executive
                  pursuant to
                  Section 4(a) hereof.

              

      

      
      

       

      
        	c)  	
                During
                  the term of this Agreement, the Executive shall be entitled to
                  paid annual
                  vacation in accordance with the policies as established from time
                  to time
                  by the Boards of Directors of the Employers. The Executive shall
                  not be
                  entitled to receive any additional compensation from the Employers
                  for
                  failure to take a vacation, nor shall the Executive be able to
                  accumulate
                  unused vacation time from one year to the next, except to the extent
                  authorized by the Boards of Directors of the
                  Employers.

              

      

      

      
        	d)  	
                In
                  the event the Executive's employment is terminated due to Disability
                  or
                  Retirement, and
                  provided the Employee is not otherwise employed in a position providing
                  substantially similar benefits, the Employer will continue, at
                  its cost
                  and for the remaining term of this Agreement, life and medical
                  insurance
                  coverage for the Executive and his spouse at substantially similar
                  levels
                  of coverage and benefits as the Employers provide at such time
                  for its
                  then existing senior executives. 

              

      

      

      
        	e)  	
                The
                  Executive's compensation, benefits and expenses shall be paid by
                  the
                  Corporation and the Bank in the same proportion as the time and
                  services
                  actually expended by the Executive on behalf of each respective
                  Employer. 

              

      

      

      
        	f)  	
                During
                  the term of the Agreement, the Employers shall provide suitable
                  office
                  space, desk,
                  chairs, filing cabinets, telephones and other usual and customary
                  office
                  furniture, fixtures and equipment adequate for the efficient performance
                  of the duties assigned to the
                  Executive.

              

      

      

      
        	g)  	
                During
                  the term of this Agreement, the Employers shall provide to the
                  Executive,
                  at the Employer's cost, all perquisites which other senior executives
                  of
                  the Company are otherwise generally entitled to
                  receive.

              

      

      

      
        	5)  	
                Expenses.
                  The Employers shall reimburse the Executive or otherwise provide
                  for or
                  pay for all reasonable expenses incurred by the Executive in furtherance
                  of or in connection with the business of the Employers, including,
                  but not
                  by way of limitation, automobile expenses and other traveling expenses,
                  and all reasonable entertainment expenses (whether incurred at
                  the
                  Executive's residence, while traveling or otherwise), subject to
                  such
                  reasonable documentation and other limitations as may be established
                  by
                  the Boards of Directors of the Employers. If such expenses are
                  paid in the
                  first instance by the Executive, the Employers shall reimburse
                  the
                  Executive therefor.

              

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      
        	6)  	
                Termination.

              

      

      

      
        	a)  	
                The
                  Corporation shall have the right, at any time upon prior Notice
                  of
                  Termination, to terminate the Executive's employment hereunder
                  for any
                  reason, including without limitation termination for Cause, Disability
                  or
                  Retirement, and the Executive shall have the right, upon prior
                  Notice of
                  Termination, to terminate his employment hereunder for any
                  reason.

              

      

      

      
        	b)  	
                In
                  the event that (i) the Executive's employment is terminated by
                  the
                  Corporation for Cause or (ii) the Executive terminates his employment
                  hereunder other than for Disability, Retirement, death or Good
                  Reason, the
                  Executive shall have no right pursuant to this Agreement to compensation
                  or other benefits for any period after the applicable Date of
                  Termination.

              

      

      

      
        	c)  	
                In
                  the event that the Executive's employment is terminated as a result
                  of
                  Disability, Retirement or the Executive's death during the term
                  of this
                  Agreement, the Executive shall have no right pursuant to this Agreement
                  to
                  compensation or other benefits for any period after the applicable
                  Date of
                  Termination, except as provided for in Section 4(d)
                  hereof.

              

      

      

      
        	d)  	
                In
                  the event that (i) the Executive's employment is terminated by
                  the
                  Corporation for other than Cause, Disability, Retirement or the
                  Executive's death or (ii) such employment is terminated by the
                  Executive
                  (a) due to a material breach of this Agreement by the Corporation,
                  which
                  breach has not been cured within fifteen days after a written notice
                  of
                  non-compliance has been given by the Executive to the Employers,
                  or (b)
                  for Good Reason, then the Corporation
                  shall:

              

      

      

      
        	i)  	
                pay
                  to the Executive, a cash severance amount equal to 150% of that
                  portion of
                  the Executive’s Average Annual Compensation paid by the Corporation, in
                  two equal
                  installments, with the first installment to be paid on the first
                  business
                  day of the month following the Executive’s Date of Termination and the
                  second installment to be paid no later than January 15th
                  of
                  the calendar year following the year in which the first installment
                  was
                  paid; and

              

      

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      
        	ii)  	
                maintain
                  and provide for a period ending at the earlier of (i) the expiration
                  of
                  the remaining term of employment pursuant hereto prior to the Notice
                  of
                  Termination or (ii) the date of the Executive's full-time employment
                  by
                  another employer (provided that the Executive is entitled under
                  the terms
                  of such employment to benefits substantially similar to those described
                  in
                  this subparagraph, at no cost to the Executive, the Executive's
                  continued
                  participation in all group insurance, life insurance, health and
                  accident
                  insurance, disability insurance and other employee benefit plans,
                  programs
                  and arrangements offered by the Corporation in which the Executive
                  was
                  entitled to participate immediately prior to the Date of Termination
                  (excluding (x) stock option and restricted stock plans of the
                  Employers, (y) bonuses and other items of cash compensation included
                  in Average Annual Compensation, and (z) other benefits, or portions
                  thereof, included in Average Annual Compensation), provided that
                  in the
                  event that the Executive's participation in any plan, program or
                  arrangement as provided in this subparagraph is barred, or during
                  such
                  period any such plan, program or arrangement is discontinued or
                  the
                  benefits thereunder are materially reduced, the Corporation shall
                  arrange
                  to provide the Executive with benefits substantially similar to
                  those
                  which the Executive was entitled to receive under such plans, programs
                  and
                  arrangements immediately prior to the Date of
                  Termination.

              

      

      

      
        	e)  	
                If
                  at the time of the Executive’s Separation from Service, for any reason
                  other than death, the Executive meets the definition of a Specified
                  Employee, payment of all amounts under subsections 6(d)(i), 6(d)(ii)
                  and
                  7(a) shall be suspended for six months following the Executive’s
                  Separation from Service. In such event, the first installment shall
                  be
                  paid on the first day following the end of the six-month suspension
                  period. The second installment shall be paid no later than January
                  15th
                  of
                  the calendar year following the year in which the first installment
                  was
                  paid. If the Executive incurs a Separation from Service due to
                  death,
                  regardless of whether the Executive meets the definition of a Specified
                  Employee, payment of his benefit shall not be suspended. Provided,
                  however, that the six-month suspension period shall not apply to
                  the
                  provision of any group insurance, life insurance, health and accident
                  insurance or disability insurance under subsection
                  6(d)(ii).

              

      

      

      
        	7)  	
                Payment
                  of Additional Benefits under Certain
                  Circumstances.

              

      

      

      
        	a)  	
                If
                  the payments and benefits pursuant to Section 6 hereof, either
                  alone or
                  together with other payments and benefits which the Executive has
                  the
                  right to receive from the Employers (including, without limitation,
                  the
                  payments and benefits which the Executive would have the right
                  to receive
                  from the Bank pursuant to Section 6 of the Agreement between the Bank
                  and the Executive dated this even date ("Bank Agreement"), before
                  giving
                  effect to any reduction in such amounts pursuant to Section 7 of the
                  Bank Agreement), would constitute a "parachute payment" as defined
                  in
                  Section 280G(b)(2) of the Code (the "Initial Parachute Payment,"
                  which
                  includes the amounts paid pursuant to clause (i) below), then the
                  Corporation shall pay to the Executive, a cash amount in two equal
                  installments, with the first installment to be paid on the first
                  business
                  day of the month following the Date
                  of 

              

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
        	  	
                Termination
                  and the second installment to be paid no later than January 15th
                  of
                  the calendar year following the year in which the first installment
                  was
                  paid. The cash amount shall be equal to the sum of the
                  following:

              

      

      
      

       

      
        	i)  	
                the
                  amount by which the payments and benefits that would have otherwise
                  been
                  paid by the Bank to the Executive pursuant to Section 6 of the Bank
                  Agreement are reduced by the provisions of Section 7 of the Bank
                  Agreement;

              

      

      

      
        	ii)  	
                twenty
                  percent (or such other percentage equal to the tax rate imposed
                  by
                  Section 4999 of the Code) of the amount by which the Initial
                  Parachute Payment exceeds the Executive's "base amount" from the
                  Employers, as defined in Section 280G(b)(3) of the Code, with the
                  difference between the Initial Parachute Payment and the Executive's
                  base
                  amount being hereinafter referred to as the "Initial Excess Parachute
                  Payment";

              

      

      

      
        	iii)  	
                such
                  additional amount (tax allowance) as may be necessary to compensate
                  the
                  Executive for the payment by the Executive of state and federal
                  income and
                  excise taxes on the payment provided under clause (ii) above and
                  on any
                  payments under this clause (iii). In computing such tax allowance,
                  the
                  payment to be made under clause (ii) above shall be multiplied
                  by the
                  "gross up percentage" ("GUP"). The GUP shall be determined as
                  follows:

              

      

      

      GUP
        = Tax
        Rate / 1 - Tax Rate

       

      
        	iv)  	
                Tax
                  Rate

              

      

      

      The
        Tax
        Rate for purposes of computing the GUP shall be the highest marginal federal
        and
        state income and employment-related tax rate, including any applicable excise
        tax rate, applicable to the Executive in the year in which the payment under
        clause (ii) above is made.

      

      
        	v)  	
                Notwithstanding
                  the foregoing, if it shall subsequently be determined in a final
                  judicial
                  determination or a final administrative settlement to which the
                  Executive
                  is a party that the actual excess parachute payment as defined
                  in Section
                  280G(b)(1) of the Code is different from the Initial Excess Parachute
                  Payment (such different amount being hereafter referred to as the
                  "Determinative Excess Parachute Payment"), then the Corporation's
                  independent tax counsel or accountants shall determine the amount
                  (the
                  "Adjustment Amount") which either the Executive must pay to the
                  Corporation or the Corporation must pay to the Executive in order
                  to put
                  the Executive (or the Corporation, as the case may be) in the same
                  position the Executive (or the Corporation, as the case may be)
                  would have
                  been if the Initial Excess Parachute Payment had been equal to
                  the
                  Determinative Excess Parachute Payment. In determining the Adjustment
                  Amount, the independent tax counsel or accountants shall take into
                  account
                  any and all taxes (including any penalties and interest) paid by
                  or for
                  the Executive or refunded to the Executive or for the Executive's
                  benefit.
                  As soon as practicable after the Adjustment

              

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        	  	
                Amount
                  has been so determined, the Corporation shall pay the Adjustment
                  Amount to
                  the Executive or the Executive shall repay the Adjustment Amount
                  to the
                  Corporation, as the case may
                  be.

              

      
        	b)  	
                In
                  each calendar year that the Executive receives payments of benefits
                  under
                  this Section 7, the Executive shall report on his state and federal
                  income tax returns such information as is consistent with the
                  determination made by the independent tax counsel or accountants
                  of the
                  Corporation as described above. The Corporation shall indemnify
                  and hold
                  the Executive harmless from any and all losses, costs and expenses
                  (including without limitation, reasonable attorneys' fees, interest,
                  fines
                  and penalties) which the Executive incurs as a result of so reporting
                  such
                  information. The Executive shall promptly notify the Company in
                  writing
                  whenever the Executive receives notice of the institution of a
                  judicial or
                  administrative proceeding, formal or informal, in which the federal
                  tax
                  treatment under Section 4999 of the Code of any amount paid or
                  payable
                  under this Section 7 is being reviewed or is in dispute. The
                  Corporation shall assume control, at its expense, over all legal
                  and
                  accounting matters pertaining to such federal tax treatment (except
                  to the
                  extent necessary or appropriate for the Executive to resolve any
                  such
                  proceeding with respect to any matter unrelated to amounts paid
                  or payable
                  pursuant to this Section) and the Executive shall cooperate fully
                  with the
                  Corporation in any such proceeding. The Executive shall not enter
                  into any
                  compromise or settlement or otherwise prejudice any rights the
                  Corporation
                  may have in connection therewith without the prior consent of the
                  Corporation.

              

      

      

      
        	8)  	
                Mitigation;
                  Exclusivity of Benefits.

              

      

      

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

              

      

      

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

              

      

      

      
        	9)  	
                Withholding.
                  All payments required to be made by the Corporation hereunder to
                  the
                  Executive shall be subject to the withholding of such amounts,
                  if any,
                  relating to tax and other payroll deductions as the Corporation
                  may
                  reasonably determine should be withheld pursuant to any applicable
                  law or
                  regulation.

              

      

      

      
        	10)  	
                Assignability.
                  The Corporation may assign this Agreement and its rights and obligations
                  hereunder in whole, but not in part, to any corporation, bank or
                  other
                  entity with or into which the Corporation may hereafter merge or
                  consolidate or to which the Corporation may transfer all or substantially
                  all of its assets, if in any such case said corporation, bank or
                  other
                  entity shall by operation of law or expressly in writing assume
                  all
                  obligations of the Corporation hereunder as fully as if it had
                  been
                  originally made a party hereto, but may not otherwise assign this
                  

              

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	 	
                Agreement
                  or its rights and obligations hereunder. The Executive may not
                  assign or
                  transfer this Agreement or any rights or obligations
                  hereunder.

              

      

       

      
        	11)  	
                Notice.
                  For the purposes of this Agreement, notices and all other communications
                  provided for in this Agreement shall be in writing and shall be
                  deemed to
                  have been duly given when delivered or mailed by certified or registered
                  mail, return receipt requested, postage prepaid, addressed to the
                  respective addresses set forth
                  below:

              

      

      

      
        	a)  	
                To
                  the Corporation:         
                  Corporate
                  Secretary

              

      

          CFS
        Bancorp,
        Inc.

          707
        Ridge
        Road

          Munster,
        Indiana 46321

      

      
        	b)  	
                To
                  the
                  Bank:              
                       Corporate
                  Secretary

              

      

          Citizens
        Financial Bank

          707
        Ridge
        Road

          Munster,
        Indiana 46321

      

      
        	c)
                 	
                To
                  the Executive:        Charles
                  V. Cole

              

      

          [Address
        Redacted]

      

      

      
        	12)  	
                Amendment;
                  Waiver.
                  No
                  provisions of this Agreement may be modified, waived or discharged
                  unless
                  such waiver, modification or discharge is agreed to in writing
                  and signed
                  by the Executive and such officer or officers as may be specifically
                  designated by the Board of Directors of the Corporation to sign
                  on its
                  behalf. No waiver by any party hereto at any time of any breach
                  by any
                  other party hereto of, or compliance with, any condition or provision
                  of
                  this Agreement to be performed by such other party shall be deemed
                  a
                  waiver of similar or dissimilar provisions or conditions at the
                  same or at
                  any prior or subsequent time.

              

      

      

      
        	13)  	
                Governing
                  Law.
                  The validity, interpretation, construction and performance of this
                  Agreement shall be governed by the laws of the United States where
                  applicable and otherwise by the substantive laws of the State of
                  Indiana.

              

      

      

      
        	14)  	
                Nature
                  of Obligations.
                  Nothing contained herein shall create or require the Corporation
                  to create
                  a trust of any kind to fund any benefits which may be payable hereunder,
                  and to the extent that the Executive acquires a right to receive
                  benefits
                  from the Corporation hereunder, such right shall be no greater
                  than the
                  right of any unsecured general creditor of the
                  Corporation.

              

      

      

      
        	15)  	
                Headings.
                  The section headings contained in this Agreement are for reference
                  purposes only and shall not affect in any way the meaning or
                  interpretation of this Agreement.

              

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
        	16)  	
                Validity.
                  The invalidity or unenforceability of any provision of this Agreement
                  shall not affect the validity or enforceability of any other provisions
                  of
                  this Agreement, which shall remain in full force and
                  effect.

              

      

      

      
        	17)  	
                Counterparts.
                  This Agreement may be executed in one or more counterparts, each
                  of which
                  shall be deemed to be an original but all of which together shall
                  constitute one and the same
                  instrument.

              

      

      

      
        	18)  	
                Regulatory
                  Prohibition.
                  Notwithstanding any other provision of this Agreement to the contrary,
                  any
                  payments made to the Executive pursuant to this Agreement, or otherwise,
                  are subject to and conditioned upon their compliance with Section
                  18(k) of
                  the Federal Deposit Insurance Act (12 U.S.C. §1828(k)) and the regulations
                  promulgated thereunder, including 12 C.F.R. Part 359. In the event of
                  the Executive's termination of employment with the Bank for Cause,
                  all
                  employment relationships and managerial duties with the Bank shall
                  immediately cease regardless of whether the Executive remains in
                  the
                  employ of the Corporation following such termination. Furthermore,
                  following such termination for Cause, the Executive shall not,
                  directly or
                  indirectly, influence or participate in the affairs or the operations
                  of
                  the Bank.

              

      

      

      
        	19)  	
                Payment
                  of Costs and Legal Fees and Reinstatement of
                  Benefits.
                  In
                  the event any dispute or controversy arising under or in connection
                  with
                  the Executive's termination is resolved in favor of the Executive,
                  whether
                  by judgment, arbitration or settlement, the Executive shall be
                  entitled to
                  the payment of (a) all legal fees incurred by the Executive in
                  resolving such dispute or controversy, and (b) any back-pay,
                  including Base Salary, bonuses and any other cash compensation,
                  fringe
                  benefits and any compensation and benefits due to the Executive
                  under this
                  Agreement.

              

      

      

      
        	20)  	
                Indemnification.
                  The Corporation shall provide the Executive (including his heirs,
                  executors and administrators) with coverage under a standard directors'
                  and officers' liability insurance policy at its expense, or in
                  lieu
                  thereof, shall indemnify the Executive (and his heirs, executors
                  and
                  administrators) to the fullest extent permitted under Indiana law
                  against
                  all expenses and liabilities reasonably incurred by him in connection
                  with
                  or arising out of any action, suit or proceeding in which he may
                  be
                  involved by reason of his having been a director or officer of
                  the
                  Corporation (whether or not he continues to be a director or officer
                  at
                  the time of incurring such expenses or liabilities). Such expenses
                  and
                  liabilities shall include, but shall not be limited to, judgments,
                  court
                  costs and attorneys' fees and the cost of reasonable
                  settlements.

              

      

      

      
        	21)  	
                Entire
                  Agreement.
                  This Agreement embodies the entire agreement between the Corporation
                  and
                  the Executive with respect to the matters agreed to herein. All
                  prior
                  agreements between the Corporation and the Executive with respect
                  to the
                  matters agreed to herein are hereby superseded and shall have no
                  force or
                  effect. Notwithstanding the foregoing, nothing contained in this
                  Agreement
                  shall affect the agreement of even date being entered into between
                  the
                  Bank and the Executive.

              

      

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, this Agreement has been executed as of the date first above
        written.

      

      

      

      

      

      
        
          Attest:                         CFS
            BANCORP, INC.

          
 

           

          /s/
            Monica F. Sullivan               By:
            /s/
            Brian L.Goins      

           

           

                                     EXECUTIVE

          

          

          

                                /s/
            Charles V.
            Cole    

                                      Charles
            V.
            Cole

           

          
 

          
            
              
              

            

            
              14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]