Document:

exv10w6

 

EXHIBIT 10.6

The Director Fee Continuation Agreement attached is the agreement by and between First Federal
Savings Bank (the “Bank”) and John J. LaCarte. Such agreement is substantially identical in all
material respects to the agreements by and between the Bank and Joseph U. Frye and by and between
the Bank and Jack M. McGinley. It is also substantially identical to the agreement by and between
the Bank and John M. McGinley, except that (i) in Section III.A of John M. McGinley’s agreement,
the Benefit Payment Date is based upon the date he actually retires following his seventy-fifth
birthday, rather than his sixty-fifth birthday, and (ii) his annual benefit as described in Section
IV is equal to four hundred dollars for each full year he has served the Bank, rather than one
hundred dollars.

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DIRECTOR FEE CONTINUATION AGREEMENT

     THIS AGREEMENT, made and entered into this 30th day of June, 1999 by and between First Federal
Savings Bank, a Bank organized and existing under the laws of the United States, (hereinafter
referred to as the, “Bank”), and John J. LaCarte, a member of the Board of Directors of the Bank
(hereinafter referred to as the “Director”).

WITNESSETH:

     WHEREAS, it is the consensus of the Board of Directors that the Director’s services to the
Bank in the past have been of exceptional merit and have constituted an invaluable contribution to
the general welfare of the Bank and in bringing it to its present status of operating efficiency,
and its present position in its field of activity;

     WHEREAS, the Director’s experience, knowledge of the affairs of the Bank, reputation, and
contacts in the industry are so valuable that assurance of the Director’s continued services is
essential for the future growth and profits of the Bank and it is in the best interests of the Bank
to arrange terms of continued employment for the Director so as to reasonably assure the Director’s
remaining in the Bank’s employment during the Director’s lifetime or until the age of retirement,

     WHEREAS, it is the desire of the Bank that the Director’s services be retained as herein
provided;

     WHEREAS, the Director is willing to continue in the employ of the Bank provided the Bank
agrees to pay the Director’s or the Director’s beneficiary(ies) certain benefits in accordance with
the terms and conditions hereinafter set forth;

     ACCORDINGLY, it is the desire of the Bank and the Director to enter into this agreement under
which the Bank will agree to make certain payments to the Director at retirement or the Director’s
beneficiary(ies) in the event of the Director’s death pursuant to this Agreement;

     FURTHERMORE, it is the intent of the parties hereto that this Director Plan be considered an
unfunded arrangement maintained primarily to provide supplemental retirement benefits for the
Director, and to be considered a non–qualified benefit plan for purposes of the Employee Retirement
Security Act of 1974, as amended (“ERISA”). The Director is fully advised of the Bank’s financial
status and has had substantial input in the design and operation of this benefit plan; and

     NOW THEREFORE, in consideration of services performed in the past and to be performed in the
future as well as of the mutual promises and covenants herein contained it is agreed as follows:

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	I.	 	SERVICE
	 
	 	 	The Director will continue to serve the Bank in such capacity and with such duties and
responsibilities as may be assigned, and with such compensation as may be determined from
time to time by the Board of Directors of the Bank.
	 
	II.	 	FRINGE BENEFITS
	 
	 	 	The fee continuation benefits provided by this agreement are granted by the Bank as a fringe
benefit to the Director and are not part of any fee reduction plan or an arrangement
deferring a bonus or a fee increase. The Director has no option to take any current payment
or bonus in lieu of these fee continuation benefits except as set forth hereinafter.
	 
	III.	 	BENEFIT PAYMENT DATE AND NORMAL RETIREMENT AGE

	 	A.	 	The Benefit Payment Date:
	 
	 	 	 	The Benefit Payment Date shall be the date that the Director actually retires
following his sixty–fifth (65th) birthday and completing ten (10) full
years of service with the Bank from the date of first service.
	 
	 	B.	 	Normal Retirement Age:
	 
	 	 	 	Normal Retirement Age shall mean the date on which the Director attains age
seventy-five (75),

	IV.	 	RETIREMENT BENEFIT AND POST-RETIREMENT DEATH BENEFIT
	 
	 	 	Upon the Director’s retirement, the Bank, commencing with the first day of the month
following the Benefit Payment Date [Subparagraph III (A)], shall pay the Director an annual
benefit equal to one hundred dollars ($100.00) for each full year the Director served the
Bank from the date of first service to the date of retirement (including any partial year
that the Director has served in the year of retirement), payable in equal annual
installments for a period of ten (10) years. provided that if less than ten (10) such annual
payments have been made prior to the death of the Director, the Bank shall either, at the
discretion of the Bank, continue such monthly payments to the individual or individuals the
Director may have designated in writing and filed with the Bank until the full number of ten
(10) annual payments have been made, or make the total amount of said payment due in a lump
sum to said beneficiary(ies). In the absence of any effective designation of beneficiary, any such amounts becoming due and payable upon the death of the
Director shall be payable to the duly qualified executor or administrator of the Director’s
estate. Said payments due hereunder shall begin the first day of the second month following
the decease of the Director. Provided, however, that anything hereinabove to the contrary
notwithstanding, no death benefit shall be payable hereunder if the Director dies on or
before the 30th day of June, 2001.

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	V.	 	DEATH BENEFIT PRIOR TO RETIREMENT
	 
	 	 	In the event the Director should die while actively serving the Bank at any time after the
date of this Agreement but prior to the Director retiring from active service on the Board
of Directors, the Bank will pay an annual benefit equal to one hundred dollars ($100.00) for
each full year of service from the date of first service to the date of death (including any
partial year that the Director has served in the year of death), in either, at the
discretion of the Bank, a lump sum or equal annual installments for a period of ten (10)
years to such individual or individuals as the Director may have designated in writing and
filed with the Bank. In the absence of any effective designation of beneficiary, any such
amounts becoming due and payable upon the death of the Director shall be payable to the duly
qualified executor or administrator of the Director’s estate. Said monthly payments shall
begin the first day of the second month following the decease of the Director. Provided,
however, that anything herein above to the contrary notwithstanding, no death benefit shall
be payable hereunder if the Director dies on or before the 30th day of June, 2001.
	 
	VI.	 	BENEFIT ACCOUNTING
	 
	 	 	The Bank shall account for this benefit using the regulatory accounting principles of the
Bank’s primary federal regulator. The Bank shall establish an accrued liability retirement
account for the Director into which appropriate reserves shall be accrued.
	 
	VII.	 	VESTING
	 
	 	 	Director’s interest in the benefits that are the subject of this Agreement shall be subject
to an annual vesting percentage of ten percent (10%) for each full year of service with the
Bank from the date of first service (to a maximum of 100%).
	 
	VIII.	 	OTHER TERMINATION OF SERVICE
	 
	 	 	Subject to Subparagraph VIII (i) herein below, in the event that the service of the Director
shall terminate prior to retirement from active service, as provided in Paragraph III, by
the Director’s voluntary action, or by the Director’s discharge by the Bank without cause,
then this Agreement shall terminate upon the date of such termination of service and the
Bank shall pay to the Director as severance compensation an amount of money equal to the
accrued balance of Director, liability reserve account multiplied by the Director’s
cumulative vested percentage (Paragraph VII). This severance compensation shall be paid in
ten (10) equal annual installments with interest equal to the one–year Treasury bill as of
the date of termination. In the event the Director’s death should occur after such severance but prior to the
completion of the annual payments provided for in this Paragraph VIII, the remaining
installments, or a lump sum, at the discretion of the Bank, shall be paid to such individual

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	 	 	or individuals as the Director may have designated in writing and filed with the Bank. In
the absence of any effective designation or beneficiary, any such
amounts shall be payable to the duly qualified executor or administrator of the Director’s estate. Said
monthly payments shall begin the first day of the second month following the decease of the
Director. Provided however, that anything herein above to the contrary notwithstanding, no
death benefit shall be payable hereunder if the Director dies on or before the 30th day of
June, 2001.

	 	(i)	 	Discharge for Cause: Should the Director be discharged
“for cause”, as it relates to this Agreement, at any time, all Benefits under
this Agreement shall be forfeited. The term “for cause”, as it relates to this
Agreement, shall mean willful gross negligence or willful gross neglect or the
conviction of a felony, fraud, or dishonesty involving the Bank and further
resulting in an adverse effect on the Bank. If a dispute arises as to discharge
“for cause”, such dispute shall be resolved by arbitration as set forth in this
agreement.

	IX.	 	CHANGE OF CONTROL
	 
	 	 	For purposes of this Agreement, a “Change in Control” of the Company or the Bank shall be
deemed to occur if and when (a) an offer or other than the Company purchases shares of the
common stock of the Company or the Bank pursuant to a tender or
exchange offer for such shares, (b) any person (as such term is used in Sections 13(d) and 14(d) (2) of the
Securities Exchange Act of 1934) is or becomes the beneficial owner, directly or indirectly,
of securities of the Company or the Bank representing twenty–five percent (25%) or more of
the combined voting power of the Company’s or Bank’s then outstanding securities, (c) the
membership of the board of directors of the Company or the Bank changes as the result of a
contested election, such that individuals who were directors at the beginning of any
twenty–four (24) month period (whether commencing before or after the date of adoption of
this Plan) do not constitute a majority of the Board at the end of such period, or (d) sale
or disposition of all or substantially all of the Company’s or Bank’s assets, or a plan of
partial or complete liquidation is approved by the directors or the shareholders of the
Company or the Bank. Upon a Change of Control, if the Director subsequently suffers a
Termination of Service (voluntary or involuntary), except for cause, then the Director shall
receive the accrued balance of the Director’s liability reserve account upon attaining
Normal Retirement Age [Subparagraph III (B)], as if the Director had been continuously
serving the Bank until the Director’s Normal Retirement Age. Provided however, that anything
herein above to the contrary notwithstanding, no death benefit shall be payable hereunder if
the Director dies on or before the 30th day of Tune, 2001.
	 
	X.	 	RESTRICTIONS ON FUNDING
	 
	 	 	The Bank shall have no obligation to set aside, earmark or entrust any fund or money with
which to pay its obligations under this Director Plan. The Directors, their

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	 	 	beneficiary(ies), or any successor in interest shall be and remain simply a general creditor
of the Bank in the same manner as any other creditor having a general claim for matured
and unpaid compensation.
	 
	 	 	The Bank reserves the absolute right, at its sole discretion, to either fund the obligations
undertaken by this Director Plan or to refrain from funding the same and to determine the
extent, nature and method of such funding. Should the Bank elect to fund this Director Plan,
in whole or in part, through the purchase of life insurance, mutual funds, disability
policies or annuities, the Bank reserves the absolute right, in its sole discretion, to
terminate such funding at any time, in whole or in part. At no time shall any Director be
deemed to have any lien nor right, title or interest in or to any specific funding
investment or to any assets of the Bank.
	 
	 	 	If the Bank elects to invest in a life insurance, disability or annuity policy upon the life
of the Director, then the Director shall assist the Bank by freely submitting to a physical
exam and supplying such additional information necessary to obtain such insurance or
annuities.
	 
	XI.	 	MISCELLANEOUS

	 	A.	 	Alienability and Assignment Prohibition:
	 
	 	 	 	Neither the Director, nor the Director’s surviving spouse, nor any other
beneficiary(ies) under this Director Plan shall have any power or right to transfer,
assign, anticipate, hypothecate, mortgage, commute, modify or otherwise encumber in
advance any of the benefits payable hereunder nor shall any of said benefits be
subject to seizure for the payment of any debts, judgments, alimony or separate
maintenance owed by the Director or the Director’s beneficiary(ies), nor be
transferable by operation of law in the event of bankruptcy, insolvency or
otherwise. In the event the Director or any beneficiary attempts assignment,
commutation, hypothecation, transfer or disposal of the benefits hereunder, the
Bank’s liabilities shall forthwith cease and terminate.
	 
	 	B.	 	Binding Obligation of the Bank and any Successor in Interest:
	 
	 	 	 	The Bank shall not merge or consolidate into or with another bank or sell
substantially all of its assets to another bank, firm or person until such bank,
firm or person expressly agrees, in writing, to assume and discharge the duties and
obligations of the Bank under this Director Plan. This Director Plan shall be
binding upon the parties hereto, their successors, beneficiaries, heirs and personal
representatives.
	 

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	 	C.	 	Amendment or Revocation:
	 	 	 	It is agreed by and between the parties hereto that, during the lifetime of the
Director, this Director Plan may be amended or revoked at any time or times, in
whole or in part, by the mutual written consent of the Director and the Bank.
	 
	 	D.	 	Gender:
	 
	 	 	 	Whenever in this Director Plan words are used in the masculine or neuter gender,
they shall be read and construed as in the masculine, feminine or neuter gender,
whenever they should so apply.
	 
	 	E.	 	Effect on Other Bank Benefit Plans:
	 
	 	 	 	Nothing contained in this Director Plan shall affect the right of the Director to
participate in or be covered by any qualified or non–qualified pension,
profit–sharing, group, bonus or other supplemental compensation or fringe benefit
plan constituting a part of the Bank’s existing or future compensation structure.
	 
	 	F.	 	Headings:
	 
	 	 	 	Headings and subheadings in this Director Plan are inserted for reference and
convenience only and shall not be deemed a part of this Director Plan.
	 
	 	G.	 	Applicable Law:
	 
	 	 	 	The validity and interpretation of this Agreement shall be governed by the laws of
the Commonwealth of Pennsylvania.
	 
	 	H.	 	12 U.S.C. § 1828(k):
	 
	 	 	 	Any payments made to the Director pursuant to this Director Plan, or otherwise, are
subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k) or any
regulations promulgated thereunder.
	 
	 	I.	 	Partial Invalidity:
	 
	 	 	 	If any term, provision, covenant, or condition of this Director Plan is determined
by an arbitrator or a court, as the case may be, to be invalid, void, or
unenforceable, such determination shall not render any other term, provision,
covenant, or condition invalid, void, or unenforceable, and the Director Plan shall
remain in full force and effect notwithstanding such partial invalidity.
	 
	 	J.	 	Continuation as Director:
	 
	 	 	 	Neither this Agreement nor the payments of any benefits thereunder shall be

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	 	 	 	construed as giving to the Director any right to be retained as a member of the
Board of Directors of the Bank.

	XII.	 	ERISA PROVISION

	 	A.	 	Named Fiduciary and Plan Administrator:
	 
	 	 	 	The “Named Fiduciary and Plan Administrator” of this Director Plan shall be First
Federal Savings Bank until its resignation or removal by the Board. As Named
Fiduciary and Plan Administrator, the Bank shall be responsible for the management,
control and administration of the Director Plana The Named Fiduciary may delegate to
others certain aspects of the management and operation responsibilities of the
Director Plan including the employment of advisors and the delegation of ministerial
duties to qualified individuals.
	 
	 	B.	 	Claims Procedure and` Arbitration:
	 
	 	 	 	In the event a dispute arises over benefits under this Director Plan and benefits
are not paid to the Director (or to the Director’s beneficiary(ies) in the case of
the Director’s death) and such claimants feel they are entitled to receive such
benefits, then a written claim must be made to the Named Fiduciary and Plan
Administrator named above within ninety (90) days from the date payments are
refused. The Named Fiduciary and Plan Administrator shall review the written claim
and if the claim is denied, in whole or in part, they shall provide in writing
within ninety (90) days of receipt of such claim its specific reasons for such
denial, reference to the provisions of this Director Plan upon which the denial is
based and any additional material or information necessary to perfect the claim.
Such written notice shall further indicate the additional steps to be taken by
claimants if a further review of the claim denial is desired. A claim shall be
deemed denied if the Named Fiduciary and Plan Administrator fail to take any action
within the aforesaid ninety (90) day period.
	 
	 	 	 	If claimants desire a second review they shall notify the Named Fiduciary and Plan
Administrator in writing within ninety (90) days of the first claimdenial. Claimants
may review this Director Plan or any documents relating thereto and submit any
written issues and comments it may feel appropriate. In their sole discretion, the
Named Fiduciary and Plan Administrator shall then review the second claim and
provide a written decision within ninety (90) days of receipt of such claim. This
decision shall likewise state the specific reasons for the decision and shall
include reference to specific provisions of the Plan Agreement upon which the
decision is based.
	 
	 	 	 	If claimants continue to dispute the benefit denial based upon completed

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	 	 	 	performance of this Director Plan or the meaning and effect of the terms and conditions thereof,
then claimants may submit the dispute to a Board of Arbitrators for final
arbitration. Said Board shall consist of one member selected by the claimant, one
member selected by the Bank, and the third member selected by the first two members.
The Board of Arbitrators shall operate under the rules specified in the Pennsylvania
Uniform Arbitration Act. The parties hereto agree that they and their heirs,
personal representatives, successors and assigns shall be bound by the decision of
such Board of Arbitrators with respect to any controversy properly submitted to it
for determination.
	 
	 	 	 	Where a dispute arises as to the Bank’s discharge of the Director for “cause”, such
dispute shall likewise be submitted to arbitration as above-described and the
parties hereto agree to be bound by the decision thereunder.

	XIII.	 	TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE LAW, RULES OR REGULATIONS
	 
	 	 	The Bank is entering into this Agreement upon the assumption that certain existing tax laws,
rules and regulations will continue in effect in their current form. If any said assumptions
should change and said change has a detrimental effect on this Director Plan, then the Bank
reserves the right to terminate or modify this Agreement accordingly. Upon a Change of
Control (Paragraph IX), this paragraph shall become null and void effective immediately upon
said Change of Control.

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     IN WITNESS WHEREOF, the parties hereto acknowledge that each has carefully read this Agreement
and executed the original thereof on the 30th day of June, 1999 and that, upon execution, each has
received a conforming copy.

	 	 	 	 	 	 
	 	 	FIRST FEDERAL SAVINGS BANK

(Monessen, Pennsylvania)

 	 
	/s/
Rita Fraino 	 	By:  	/s/
Robert L. Breslow
 	 
	Witness	 	Title: Senior Vice President 	 
	 	 	 	 
	 
	 	 	 
	/s/
Rita Fraino 	 	  	/s/
John J. LaCarte
 	 
	Witness 	 	 	John J. LaCarte 	 
	 	 	 	 

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BENEFICIARY DESIGNATION FORM FOR THE DIRECTOR FEE CONTINUATION AGREEMENT

PRIMARY DESIGNATION:

	 	 	 	 	 
	Name
	 	Address
	 	Relationship

SECONDARY (CONTINGENT) DESIGNATION:

All sums payable under the Director Fee Continuation Agreement by reason of my death shall be paid
to the Primary Beneficiary, if he or she survives me, and if no Primary Beneficiary shall survive
me, then to the Secondary (Contingent) Beneficiary.

	 	 	 
	/s/
John J. LaCarte

John J. LaCarte

	 	7/13/99

11exv10w7

 

Exhibit 10.7

The Executive Supplemental Retirement Plan Agreement attached is the agreement by and between First
Federal Savings Bank (the “Bank”) and Robert L. Breslow. Such agreement is substantially identical
in all material respects (except as otherwise noted below) to the other agreements listed below
which are not being filed as separate exhibits to this Registration Statement.

Parties to Executive Supplemental Retirement Plan Agreement:

The Bank and DaCosta Smith, III (1)

The Bank and Peter D. Griffith (2)

(1) Mr. Smith’s Executive Supplemental Retirement Plan Agreement with the Bank is substantially
identical to Mr. Breslow’s agreement except for the description of the life insurance contract in
the second paragraph of Section I.I, which reads:

	 	 	 	 	 
	Insurance Company:

	 	Lincoln Benefit Plan

	Policy Form:

	 	Flexible Premium Adjustable Life

	Policy Name:

	 	Ultra Achiever

	Insured’s Age and Sex:

	 	43, Male

	Riders:

	 	None

	Ratings:

	 	According to the health of the insured

	Option:

	 	Level Death Benefit

	Face Amount:

	 	$2,027,110

	Premiums Paid:

	 	$500,000

	Number of Premium Payments:

	 	One

	Assumed Purchase Date:

	 	June 1, 1999

(2) Mr. Griffith’s Executive Supplemental Retirement Plan Agreement with the Bank is
substantially identical to Mr. Breslow’s agreement except (i) the Benefit Calculation Date and
Benefit Payment Date defined in Section I.C are based upon his sixty-eighth birthday, rather than
his sixty-fifth birthday and (ii) the description of the life insurance contract in the second
paragraph of Section I.I, which reads:

	 	 	 	 	 
	Insurance Company:

	 	Lincoln Benefit Plan

	Policy Form:

	 	Flexible Premium Adjustable Life

	Policy Name:

	 	Ultra Achiever

	Insured’s Age and Sex:

	 	58, Male

	Riders:

	 	None

	Ratings:

	 	According to the health of the insured

	Option:

	 	Level Death Benefit

	Face Amount:

	 	$4,418,851

	Premiums Paid:

	 	$1,600,000

	Number of Premium Payments:

	 	One

	Assumed Purchase Date:

	 	June 1, 1999

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EXECUTIVE SUPPLEMENTAL RETIREMENT PLAN

AGREEMENT

     This Agreement, made and entered into this 30th day of June, 1999, by and between First
Federal Savings Bank, a Bank organized and existing under the laws of the United States of America,
hereinafter referred to as “the Bank”, and Robert L. Breslow, a Key Employee and the Executive of
the Bank, hereinafter referred to as “the Executive.

     The Executive has been in the employ of the Bank for several years and has now and for years
past faithfully served the Bank. It is the consensus of the Board of Directors of the Bank (the
Board) that the Executive’s services have been of exceptional merit, in excess of the compensation
paid and an invaluable contribution to the profits and position of the Bank in its field of
activity. The Board further believes that the Executive’s experience, knowledge of corporate
affairs, reputation and industry contacts are of such value and his continued services are so
essential to the Bank’s future growth and profits that it would suffer severe financial loss should
the Executive terminate his services.

     Accordingly, it is the desire of the Bank and the Executive to enter into this Agreement under
which the Bank will agree to make certain payments to the Executive upon the Executive’s retirement
and, alternatively, to the Executive’s beneficiary(ies) in the event of the Executive’s premature
death while employed by the Bank.

     It is the intent of the parties hereto that this Agreement be considered an arrangement
maintained primarily to provide supplemental retirement benefits for the Executive, as a member of
a select group of management or highly–compensated employees of the Bank for purposes of the
Employee Retirement Security Act of 1974 (ERISA). The Executive is fully advised of the Bank’s
financial status and has had substantial input in the design and operation of this benefit plan.

     Therefore, in consideration of the Executive’s services performed in the past and those to be
performed in the future and based upon the mutual promises and covenants herein contained, the Bank
and the Executive, agree as follows:

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	I.	 	DEFINITIONS

	A.	 	Effective Date:
	 
	 	 	The Effective Date of this Agreement shall be June 1, 1999.
	 
	B.	 	Plan Year:
	 
	 	 	Any reference to “Plan Year shall mean a calendar year from January 1 to December
31. In the year of implementation, the term “Plan Year” shall mean the period from
the effective date to December 31 of the year of the effective date.
	 
	C.	 	(i) Benefit Calculation Date: Benefit Calculation Date shall mean
December 31S` of each calendar year commencing in the year in which the Executive
attains his sixty-eighth (65th) birthday and continuing until the death of the
Executive.
	 
	 	 	(ii) Benefit Payment Date: The Benefit Payment, Date for the Index
Retirement Benefit [Subparagraph I (H)J shall be thirty (30) days following the
Benefit Calculation Date stated above. The Benefit Payment Date for the
Pre-Retirement Account [Subparagraph I (G)] shall be thirty (30) days following the
Executive’s sixty-eighth (65th) birthday.
	 
	D.	 	Early Retirement:
	 
	 	 	Early Retirement Date shall mean a retirement from service which is effective prior
to the Normal Retirement Age stated herein, provided the Executive has attained age
fifty-five (55) and has completed twenty (20) full years of service with the Bank
from the date of first service.
	 
	E.	 	Normal Retirement Age:
	 
	 	 	Normal Retirement Age shall mean the date on which the Executive attains age
sixty-five (65) and has completed twenty (20) full years of service with the Bank
from the date of first service.
	 
	F.	 	Termination of Service:
	 
	 	 	Termination of Service shall mean either: (i) A voluntary resignation of service by
the Executive; or (ii) The Bank’s discharge of the Executive without cause
(“cause”defined in Subparagraph III (E) hereinafter), prior to the Normal Retirement
Age or Early Retirement Date.
	 
	G.	 	Pre-Retirement Account:

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	 	 	A Pre-Retirement Account shall be established as a liability reserve account on the
books of the Bank for the benefit of the Executive. Prior to the Executive receiving
benefits hereunder, such liability reserve account shall be increased or decreased
each Plan Year by an amount equal to the annual earnings or loss for that Plan Year
determined by the Index (described in Subparagraph I (I) hereinafter), less the
Opportunity Cost for that Plan Year (described in Subparagraph I (J) hereinafter).
	 
	H.	 	Index Retirement Benefit:
	 
	 	 	The Index Retirement Benefit for the Executive for any year shall be equal to the
excess of the annual earnings (if any) determined by the Index [Subparagraph I (I)]
for that Plan Year less the Opportunity Cost [Subparagraph I (J)] for that Plan
Year.
	 
	 	 	Notwithstanding any provision herein to the contrary, the Index Retirement Benefit
for each year shall in no event exceed one hundred percent (100%) of the Executive’s
compensation received in the Executive’s final year of employment offset by the
Bank’s contribution to the Executive’s 401(k), the Bank’s contribution to profit
sharing, and the Bank’s contribution to any other qualified retirement plan of the
Executive while employed by the Bank, and fifty percent (50%) of total social
security. The aforestated offset amounts shall be determined on a joint and survivor
basis.
	 
	I.	 	Index:
	 
	 	 	The Index for any Plan Year shall be the aggregate annual after–tax income from the
life insurance contracts described hereinafter as defined by FASB Technical Bulletin
854. This Index shall be applied as if such insurance contracts were purchased on
the effective date hereof.

	 	 	 	 	 
	Insurance Company:

	 	Lincoln Benefit Plan

	Policy Form:

	 	Flexible Premium Adjustable Life

	Policy Name:

	 	Ultra Achiever

	Insured’s Age and Sex:

	 	46, Male

	Riders:

	 	None

	Ratings:

	 	According to the health of the insured

	Option:

	 	Level Death Benefit

	Face Amount:

	 	$3,238,160

	Premiums Paid:

	 	$700,000

	Number of Premium Payments:

	 	One

	Assumed Purchase Date:

	 	June 1, 1999

	 	 	If such contracts of life insurance are
actually purchased by the Bank then the

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	 	 	actual
policies as of the dates they were purchased
shall be used in calculations under this
Agreement. If such contracts of life insurance
are not purchased or are subsequently
surrendered or lapsed, then the Bank shall
receive annual policy illustrations that
assume the above-described policies were
purchased from the above named insurance
company(ies) on the Effective Date from which
the increase in policy value will be used to
calculate the amount of the Index.
	 
	 	 	In either case, references to the life insurance contract are merely for purposes of
calculating a benefit. The Bank has no obligation to purchase such life insurance
and, if purchased, the Executive and the Executive’s beneficiary(ies) shall have no
ownership interest in such policy and shall always have no greater interest in the
benefits under this Agreement than that of an unsecured general creditor of the
Bank.
	 
	J.	 	Opportunity Cost:
	 
	 	 	The Opportunity Cost for any Plan Year shall be calculated by taking the sum of the
amount of premiums set forth in the Indexed policies described above plus the amount
of any after-tax benefits paid to the Executive pursuant to this Agreement
(Paragraph III hereinafter) plus the amount of all previous
years after-tax
Opportunity Cost, and multiplying that sum by the average after-tax Opportunity Cost
calculated at the end of the third quarter for the Plan Year. The Opportunity Cost
shall be the weekly average yield on the U.S. Treasury securities adjusted to a
constant maturity of one year, as made available by the Federal Reserve Board as
of September 30`h, plus one hundred and twenty (120) basis points.
	 
	K.	 	Change of Control:
	 
	 	 	For purposes of this Agreement, a “Change in Control” of the Company or the Bank
shall be deemed to occur if and when (a) an offeror other than the Company
purchases shares of the common stock of the Company or the Bank pursuant to a tender or
exchange offer for such shares, (b) any person(as such term is used in Sections
13(d) and 14(d) (2) of the Securities Exchange Act of 1934) is or becomes the
beneficial owner, directly or indirectly, of securities of the Company or the Bank
representing twenty-five percent (25%) or more of the combined voting power of the
Company’s or Bank’s then outstanding securities, (c) the membership of the board of
directors of the Company or the Bank changes as the result of a contested election,
such that individuals who were directors at the beginning of any
twenty-four (24)
month period (whether commencing before or after the date of adoption of this Plan)
do not constitute a majority of the Board at the end of such period, or (d) sale or
disposition of all or substantially all of the Company’s or Bank’s assets, or a plan
of partial or complete liquidation is approved by the directors or the shareholders
of the Company or the Bank.

5

 

	II.	 	EMPLOYMENT
	 
	 	 	No provision of this Agreement shall be deemed to restrict or limit any existing employment
agreement by and between the Bank and the Executive, nor shall any conditions herein create
specific employment rights to the Executive nor limit the right of the Employer to discharge
the Executive with or without cause. In a similar fashion, no provision shall limit the
Executive’s rights to voluntarily sever his employment at any time.
	 
	III.	 	INDEX BENEFITS
	 
	 	 	The following benefits provided by the Bank to the Executive are in the nature of a fringe
benefit and shall in no event be construed to effect nor limit the Executive’s current or
prospective salary increases, cash bonuses or profit-sharing distributions or credits.

	A.	 	Retirement Benefits:
	 
	 	 	Should the Executive continue to be employed by the Bank until “Normal Retirement
Age” defined in Subparagraph I (E), the Executive shall be entitled to receive the
balance in his Pre–Retirement Account [as defined in Subparagraph I (GA in a lump
sum on the Executive’s Benefit Payment Date [Subparagraph I (G)(ii)]. In addition to
these payments, commencing at the Executive’s Benefit Payment Date [Subparagraph I
(C)(ii)], the Index Retirement Benefit (as defined in Subparagraph I (H) above) for
each year shall be paid to the Executive until the Executive’s death subject to the
maximum amount of the Index Retirement Benefit payment.
	 
	B.	 	Early Retirement:
	 
	 	 	Should the Executive elect Early Retirement subsequent to the Early Retirement Date
[Subparagraph I (D)], the Executive shall be entitled to receive the percentage
stated below that corresponds to the age of said Executive at his/her early
retirement (to a maximum of 100%), times the balance in the Pre–Retirement Account
paid in a lump sum commencing thirty (30) days following said Early Retirement Date.
In addition to these payments and commencing in conjunction therewith, the
percentage stated below that corresponds to the age of said Executive at his/her
early retirement (to a maximum of 100%), times the Index Retirement Benefit for each
year shall be paid to the Executive until death subject to the maximum amount of the
Index Retirement Benefit payments.

	 	 	 	 	 
	Early Retirement Age	 	Percentage of Benefits
	 
	55

	 	 	50	%
	56

	 	 	55	%
	57

	 	 	60	%
	58

	 	 	65	%

6

 

	 	 	 	 	 
	 	 	 
	59

	 	 	70	%
	60

	 	 	75	%
	61

	 	 	80	%
	62

	 	 	85	%
	63

	 	 	90	%
	64

	 	 	95	%
	65

	 	 	100	%

	C.	 	Termination of Service:

	(i)	 	Voluntary Resignation of Service: Subject to Subparagraph
III (D) hereinafter, should the Executive suffer a Termination of
Service as defined in Subparagraph I (E) (i.e. a voluntary
resignation of service prior to Normal Retirement Age or the Early
Retirement Date), the Executive shall be entitled to receive the
balance in the Pre-Retirement Account as of the date of said
termination payable in a lump sum thirty (30) days following said
termination. The Executive shall not receive the Index Retirement
Benefit at any time.
	 
	(ii)	 	Bank’s Discharge of the Executive Without Cause: Subject
to Subparagraph Ill (D) hereinafter, should the Bank discharge the
Executive without cause prior to the Normal Retirement Age, the
Executive shall receive the benefits set forth in Subparagraph III
(A) herein, as if the Executive had been employed by the Bank until
Normal Retirement Age, and the Executive shall begin receiving the
benefits thirty (30) days from said termination.
	 
	(iii)	 	Disability: In the event the Executive becomes
disabled prior to Termination of Service, and the Executive’s employment is
terminated because of such disability, he shall receive the benefits as set
forth in Subparagraph III (C)(ii) hereinabove, “Disability” shall be as defined
in the Bank’s long-term disability policy. If no such disability policy exists,
then disability shall be determined by three (3) physicians selected as
follows: (i) by the Bank; (ii) by the Executive; and (iii) by the two (2)
physicians selected by the Bank and the Executive as set forth herein.
	 

7

 

	D.	 	Death:
	 
	 	 	Should the Executive die prior to having received the full balance of the
Pre–Retirement Account, the unpaid balance of the Pre–Retirement Account shall be
paid in a lump sum to the beneficiary selected by the Executive and filed with the
Bank. In the absence of or a failure to designate a beneficiary, the unpaid balance
shall be paid in a lump sum to the personal representative of the Executive’s
estate.
	 
	E.	 	Discharge for Cause:
	 
	 	 	Should the Executive be discharged “for cause”, as it relates to this Agreement, at
any time, all Benefits under this Agreement shall be forfeited. The term “for
cause’‘, as it relates to this Agreement, shall mean willful gross negligence or
willful gross neglect or the conviction of a felony, fraud, or dishonesty involving
the Bank and further resulting in an adverse effect on the Bank. If a dispute arises
as to discharge “for cause”, such dispute shall be resolved by arbitration as set
forth in this Agreement.
	 
	F.	 	Death Benefit:
	 
	 	 	Except as set forth above, there is no death benefit provided under this Agreement.

	IV.	 	RESTRICTIONS UPON FUNDING
	 
	 	 	The Bank shall have no obligation to set aside, earmark or entrust any fund or money with
which to pay its obligations under this Agreement. The Executive, the Executive’s
beneficiary(ies) or any successor in interest to the Executive shall be and remain simply a
general creditor of the Bank in the same manner as any other creditor having a general claim
for matured and unpaid compensation.
	 
	 	 	The Bank reserves the absolute right, at its sole discretion, to either fund the obligations
undertaken by this Agreement or to refrain from funding the same and to determine the exact
nature and method of such funding. Should the Bank elect to fund this Agreement, in whole or
in part, through the purchase of life insurance, mutual funds, disability policies or
annuities, the Bank reserves the absolute right, in its sole discretion, to terminate such
funding at any time, in whole or in part. At no time shall the Executive be deemed to have
any lien or right, title or interest in or to any specific funding investment or to any
assets of the Bank.
	 
	 	 	If the Bank elects to invest in a life insurance, disability or annuity policy upon the life
of the Executive, then the Executive shall assist the Bank by freely submitting to a
physical exam and supplying such additional information necessary to obtain such insurance
or annuities.

8

 

	V.	 	CHANGE OF CONTROL
	 
	 	 	Upon a Change of Control (as defined in Subparagraph I (K) herein), if the Executive’s
employment is subsequently terminated, except for cause, then the Executive shall receive
the benefits promised in this Agreement as if the Executive had been employed until the
Normal Retirement Age and the Executive shall begin receiving the benefits thirty (30) days
following said termination. The Executive will also remain eligible for all promised death
benefits in this Agreement. In addition, no sale, merger or consolidation of the Bank shall
take place unless the new or surviving entity expressly acknowledges the obligations under
this Agreement and agrees to abide by its terms.
	 
	VI.	 	MISCELLANEOUS

	A.	 	Alienability and Assignment Prohibition:
	 
	 	 	Neither the Executive, his/her surviving spouse nor any other beneficiary under this
Agreement shall have any power or right to transfer, assign, anticipate,
hypothecate, mortgage, commute, modify or otherwise encumber in advance any of the
benefits payable hereunder nor shall any of said benefits be subject to seizure for
the payment of any debts, judgments, alimony or separate maintenance owed by the
Executive or the Executive’s beneficiary(ies), nor be transferable by operation of
law in the event of bankruptcy, insolvency or otherwise. In the event the Executive
or any beneficiary attempts assignment, commutation, hypothecation, transfer or
disposal of the benefits hereunder, the Bank’s liabilities shall forthwith cease and
terminate.
	 
	B.	 	Binding Obligation of Bank and any Successor in Interest:
	 
	 	 	The Bank expressly agrees that it shall not merge or consolidate into or with
another bank or sell substantially all of its assets to another bank, firm or person
until such bank, firm or person expressly agrees, in writing, to assume and
discharge the duties and obligations of the Bank under this Agreement. This
Agreement shall be binding upon the parties hereto, their successors,
beneficiary(ies), heirs and personal representatives.
	 
	C.	 	Revocation:
	 
	 	 	It is agreed by and between the parties hereto that, during the lifetime of the
Executive, this Agreement may be amended or revoked at any time or times; in whole
or in part, by the mutual written assent of the Executive and the Bank.

9

 

	D.	 	Gender:
	 
	 	 	Whenever in this Agreement words are used in the masculine or neuter gender, they
shall be read and construed as in the masculine, feminine or neuter gender, whenever
they should so apply.
	 
	E.	 	Effect on Other Bank Benefit Plans:
	 
	 	 	Nothing contained in this Agreement shall affect the right of the Executive to
participate in or be covered by any qualified or non-qualified pension,
profit-sharing, group, bonus or other supplemental compensation or fringe benefit
plan constituting a part of the Bank’s existing or future compensation structure.
	 
	F.	 	Headings:
	 
	 	 	Headings and subheadings in this Agreement are inserted for reference and
convenience only and shall not be deemed a part of this Agreement.
	 
	G.	 	Applicable Law:
	 
	 	 	The validity and interpretation of this Agreement shall be governed by the laws of
the United States of America.

	VII.	 	ERISA PROVISION

	A.	 	Named Fiduciary and Plan Administrator:
	 
	 	 	The “Named Fiduciary and Plan Administrator” of this Plan shall be First Federal
Savings Bank until its removal by the Board. As Named Fiduciary and Administrator,
the Bank shall be responsible for the management, control and administration of the
Salary Continuation Agreement as established herein. The Named Fiduciary may
delegate to others certain aspects of the management and operation responsibilities
of the plan including the employment of advisors and the delegation of ministerial
duties to qualified individuals.
	 
	B.	 	Claims Procedure and Arbitration:
	 
	 	 	In the event a dispute arises over benefits under this Agreement and benefits are
not paid to the Executive (or to his beneficiary in the case of the Executive’s
death) and such claimants feel they are entitled to receive such benefits, then a
written claim must be made to the Plan Administrator named above within ninety (90)
days from the date payments are refused. The Plan Administrator shall review the
written claim and if the claim is denied, in whole or in part, they shall provide in
writing within ninety (90) days of receipt of such claim their specific

10

 

	 	 	reasons for
such denial, reference to the provisions of this Agreement upon which the denial is
based and any additional material or information necessary to perfect the claim.
Such written notice shall further indicate the additional steps to be taken by
claimants if a further review of the claim denial is desired. A claim shall be
deemed denied if the Plan Administrator fails to take any action within the
aforesaid ninety-day period.
	 
	 	 	If claimants desire a second review they shall notify the Plan Administrator in
writing within ninety (90) days of the first claim denial. Claimants may review this
Agreement or any documents relating thereto and submit any written issues and
comments they may feel appropriate. In its sole discretion, the Plan Administrator
shall then review the second claim and provide a written decision within ninety (90)
days of receipt of such claim. This decision shall likewise state the specific
reasons for the decision and shall include reference to specific provisions of this
Agreement upon which the decision is based.
	 
	 	 	If claimants continue to dispute the benefit denial based upon completed performance
of this Executive Plan or the meaning and effect of the terms and conditions
thereof, then claimants may submit the dispute to a Board of Arbitrators for final
arbitration. The Board shall consist of one member selected by the chairman, one
member selected by the Bank, and the third member selected by the first two members.
The Board of Arbitrators shall operate under the rules specified in the Pennsylvania
Uniform Arbitration Act. The parties hereto agree that they and their heirs,
personal representatives, successors and assigns shall be bound by the decision of
such Board of Arbitrators with respect to any controversy properly submitted to it
for determination.
	 
	 	 	Where a dispute arises as to the Bank’s discharge of the Executive for “cause”, such
dispute shall likewise be submitted to arbitration as above described and the
parties hereto agree to be bound by the decision thereunder.

11

 

     IN WITNESS WHEREOF, the parties hereto acknowledge that each has carefully read this Agreement
and executed the original thereof on the 30th day of June, 1999 and that, upon execution, each has
received a conforming copy.

	 	 	 
	 

	FIRST FEDERAL SAVINGS BANK

(Monessen, Pennsylvania)
	 
	/s/
Rita Fraino

Witness

	By:	/s/ Peter D. Griffith
Title: President
	 

	 	 	 
	/s/ Rita Fraino

Witness

	 	/s/ Robert L. Breslow
Robert L. Breslow

12

 

BENEFICIARY DESIGNATION FORM FOR THE EXECUTIVE SUPPLEMENTAL

RETIREMENT PLAN AGREEMENT

PRIMARY DESIGNATION:

	 	 	 	 	 
	Name
	 	Address
	 	Relationship

SECONDARY (CONTINGENT) DESIGNATION:

All sums payable under the Executive Supplemental Retirement Plan Agreement by reason of my death
shall be paid to the Primary Beneficiary, if he or she survives me, and if no Primary Beneficiary
shall survive me, then to the Secondary (Contingent) Beneficiary.

	 	 	 
	/s/ Robert L. Breslow

Robert L. Breslow

	 	7/13/99

Date

13

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