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EXHIBIT 10.5

 

FIRST AMENDMENT

TO THE

FIRST FEDERAL SAVINGS BANK OF THE MIDWEST

SUPPLEMENTAL EMPLOYEES’ INVESTMENT PLAN FOR SALARIED
EMPLOYEES

 

 

THIS AMENDMENT (the “Amendment”)
to the First Federal Savings Bank of the Midwest Supplemental Employees’ Investment
Plan for Salaried Employees (the “Plan”) is hereby adopted on the 29th day of
January, 2007 by MetaBank (formerly known as First Federal Savings Bank of the
Midwest).

 

RECITALS

 

WHEREAS, First Federal
Savings Bank of the Midwest adopted the Plan effective October 1, 1993 for
the benefit of a select group of senior management personnel;

 

WHEREAS, First Federal
Savings Bank of the Midwest subsequently became known as MetaBank (the “Company”);

 

WHEREAS, Section 7.1
of the Plan authorizes the Company to amend the Plan by action of its Board of
Directors; and

 

WHEREAS, the Company
now desires to amend the Plan to comply with final regulations issued under Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”);

 

NOW, THEREFORE, the Company
hereby amends the Plan, generally effective January 1, 2008, as follows:

 

Section 5.1 is amended to read as
follows:

 

5.1
Distribution.  All amounts
credited to a Participant’s Supplemental Account, including gains and losses
credited in accordance with Section 4.1 of the Plan, shall be distributed
to or with respect to the Participant upon the Participant’s separation from
service (as defined in Treasury Regulation Section 1.409A-1(h)) with the
Company and all affiliates thereof for any reason including death.  Such amounts shall be distributed in a lump
sum cash payment within ninety (90) days after the date of the Participant’s
separation from service; provided,
however, that if the Participant is a “specified employee” (as such term is
defined in Code Section 409A and the regulations or other guidance in
effect thereunder) on the date of his or her separation from service, the
amounts in the Participant’s Supplemental Account shall be paid in a lump sum
on the six-month anniversary of the date of his or her separation from service
(or, if earlier, as soon as administratively feasible after his or her death).

 

If
a Participant dies before the full amount of his or her Supplemental Account
has been distributed, any remaining amount shall be distributed in a lump sum
cash payment as soon as administratively feasible following the Participant’s
date of death to the beneficiary designated by the Participant in a writing
delivered to the Company prior to his or her death.  If a Participant has not designated a
beneficiary or if no designated beneficiary is living on the date of
distribution, such remaining amount shall be distributed to the Participant’s
estate.

 

Section 7.1 is amended so the first
sentence thereof reads as follows:

 

The
Company intends the Plan to be permanent but reserves the right to amend or
terminate the Plan when, in the sole opinion of the Company, such amendment or
termination is advisable; provided,
however, that any Plan termination shall comply with the requirements of Code Section 409A.

 

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Section 7.2 is amended so the second
sentence thereof reads as follows:

 

Upon
termination of the Plan, distribution of amounts in the Supplemental Account
shall be made to the Participant or his or her beneficiary in a lump sum cash
payment within the timeframe required under Code Section 409A.

 

Section 8.2 is amended so the first
sentence thereof reads as follows:

 

Except
as otherwise expressly provided herein or prohibited by Code Section 409A
or the regulations or other guidance in effect thereunder, all terms and
conditions of the Qualified Plan applicable to a Qualified Plan Contribution,
other than provisions governing the time and form of payment, will also apply
to a Supplemental Contribution to be made hereunder.

 

A new Section 8.11 is added to the
Plan to read as follows:

 

8.11
Code Section 409A.  It is
intended that any benefit provided under this Plan will not be subject to the
additional tax and interest under Code Section 409A (the “Section 409A
Tax”).  The Plan provisions will be
construed in favor of complying with any applicable requirements of Code Section 409A
as necessary to prevent the imposition of a Section 409A Tax.  The Company will amend the Plan
(retroactively, if necessary) to comply with Code Section 409A, including
amendment to enable the Participants to prevent the imposition of, or to reduce
the amount of, any Section 409A Tax. 
Neither the Company nor any Participant has (a) an obligation to
bring any potential Section 409A Tax to the attention of the other party
or (b) any liability for any Section 409A Tax or any other reporting
or withholding obligation to the other party.

 

In all other respects, the Plan shall
remain unchanged and in full force and effect.

 

IN WITNESS WHEREOF, this Amendment has been
executed and delivered on the date first set forth above.

 

	
   

  	
  METABANK    

  
	
   

  	
   

  
	
   

  	
  /s/
  E. Wayne Cooley

  
	
   

  	
  E.
  Wayne Cooley

  
	
   

  	
  Chairman,
  Compensation Committee

  

 

2EXHIBIT 10.6

 

FIRST AMENDMENT

TO THE

METABANK EMPLOYMENT AGREEMENT

WITH

JAMES S. HAAHR

 

 

THIS AMENDMENT (the “Amendment”)
is entered into on the date set forth on the signature page hereof by and
between MetaBank (the “Company”) and James S. Haahr  (the
“Employee”).

 

RECITALS

 

WHEREAS, the Company
and the Employee previously entered into an employment agreement dated September 27,
1993 (the “Employment Agreement”);

 

WHEREAS, the Company
and the Employee desire to amend the Employment Agreement to comply with Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”); and

 

WHEREAS, pursuant to Section 13
of the Employment Agreement, the Employment Agreement may be amended by written
agreement of the parties thereto;

 

NOW, THEREFORE, the parties
hereby agree to amend the Employment Agreement, generally effective January 1,
2008, as follows:

 

Section 2(b) is amended to read
as follows:

 

(b) Discretionary
Bonuses.  The Employee shall be
entitled to participate in an equitable manner with all other executive
officers of the Bank in discretionary bonuses as authorized and declared by the
Board of Directors of the Bank to its executive employees.  Any such discretionary bonus shall be payable
to the Employee at the time bonuses are paid to executive officers in
accordance with the Bank’s policies and practices; provided,
however, that any such bonus shall be paid no later than March 15 of the
year following the year in which the bonus is earned and vested.  No other compensation provided for in this Agreement
shall be deemed a substitute for the Employee’s right to participate in such
bonuses when and as declared by the Board of Directors.

 

Section 2(c) is amended to read
as follows:

 

(c) Expenses.  During the term of his employment hereunder,
the Employee shall be entitled to receive prompt reimbursement for all
reasonable expenses he incurs (in accordance with policies and procedures at
least as favorable to the Employee as those presently applicable to the senior
executive officers of the Bank) in performing services hereunder, provided that the Employee properly accounts for such
expenses in accordance with Bank policy. 
Such expense reimbursements shall be paid no later than the end of the
Employee’s taxable year following the taxable year in which the Employee incurs
the expenses.  The amount of expenses
eligible for reimbursement during a taxable year may not affect the expenses
eligible for reimbursement in any other taxable year, and the Employee’s right
to an expense reimbursement may not be liquidated or exchanged for another
benefit.

 

Section 6(a) is amended so the
first paragraph thereof reads as follows:

 

(a) The
Board of Directors may terminate the Employee’s employment at any time, but any
termination by the Bank’s Board of Directors, other than termination for cause,
shall not prejudice the Employee’s right to compensation or other benefits
under the Agreement.  If the employment
of the Employee is involuntarily terminated, other than for “cause” as provided
in this Section 6(a) or pursuant to any of Sections 6(d) through
6(g), or by reason of death or disability as provided in Sections 6(c) or
7, the Employee shall be entitled to receive:

 

(i) his
then-applicable salary for the then-remaining term of the Agreement as
calculated in accordance with Section 4 hereof, payable in installments
not less frequently than biweekly, in 

 

1

 

accordance
with the Bank’s regular payroll practices and procedures, subject to the
customary withholding tax and other employee taxes as required with respect to
compensation paid by a corporation to an employee, provided
that if the Employee is a “specified employee” (as such term is defined in Code
Section 409A and the regulations or other guidance in effect thereunder)
at the time of his employment termination and his employment terminates under
circumstances that require a distribution delay under Code Section 409A,
the commencement of biweekly installments of the Employee’s continued salary
payments shall be delayed for six months and the installments that otherwise
would have been paid during that six-month period shall be paid in a lump sum
on the six-month anniversary of the Employee’s employment termination date (or,
if earlier, as soon as administratively feasible after his death); and

 

(ii) health
insurance benefits as maintained by the Bank for the benefit of its senior
executive employees or its employees generally over the then-remaining term of
the Agreement as calculated in accordance with Section 4 hereof, provided that if the duration of such health insurance
benefits extends beyond the end of the applicable continuation coverage period
under the Consolidated Omnibus Budget Reconciliation Act (COBRA), (A) the
amount of benefits provided during one calendar year shall not affect the
amount of benefits provided during a subsequent calendar year (except with
respect to health plan maximums), (B) the benefits may not be exchanged or
substituted for other forms of compensation to the Employee, and (C) any
reimbursement or payment under the benefit arrangement will be paid in
accordance with applicable plan terms and no later than the last day of the
Employee’s taxable year following the taxable year in which he incurred the
expense giving rise to such reimbursement or payment.

 

Section 6(h) is amended to read
as follows:

 

(h) In
the event the Bank purports to terminate the Employee for cause, but it is
determined by a court of competent jurisdiction or by an arbitrator pursuant to
Section 17 that cause did not exist for such termination, or if in any
event it is determined by any such court or arbitrator that the Bank has failed
to make timely payment of any amounts owed to the Employee under this
Agreement, the Employee shall be entitled to reimbursement for all reasonable
costs, including attorneys’ fees, incurred in challenging such termination or
collecting such amounts; provided,
however, that (i) the Employee shall have no right to cost reimbursements
until the court or arbitrator enters a final and binding opinion that cause did
not exist for the Employee’s termination or that the Bank has failed to pay
amounts due to the Employee under this Agreement, and (ii) cost
reimbursements will be paid no later than March 15 of the year following
the year in which the court or arbitrator enters its final and binding
opinion.  Such reimbursement shall be in
addition to all rights to which the Employee is otherwise entitled under this
Agreement.

 

Section 9(c) is amended so the
last sentence thereof reads as follows:

 

In
the event that the Advisory Firm, based on controlling precedent or other
substantial authority, determines that an Underpayment has occurred, any such
Underpayment shall be promptly paid by the Bank to or for the benefit of the
Employee together with interest at the applicable federal rate provided for in Section 7872(f)(2) of
the Code, provided that such Underpayment and
interest shall be paid no later than two and a half months after the date on
which the Advisory Firm informs the Bank of its determination that an
Underpayment has occurred.

 

A new Section 18 is added to the
Employment Agreement to read as follows:

 

18.
Code Section 409A.  It is
intended that any income or payments to the Employee provided under this
Agreement will not be subject to the additional tax and interest under Code Section 409A
(the “Section 409A Tax”).  The
provisions of the Agreement will be construed in favor of complying with any 

 

2

 

applicable
requirements of Code Section 409A as necessary to prevent the imposition
of a Section 409A Tax.  The Bank and
the Employee agree to amend the Agreement (retroactively, if necessary) to
comply with Code Section 409A, including amendment to enable the Employee
to prevent the imposition of, or to reduce the amount of, any Section 409A
Tax.  The Bank and the Employee shall
reasonably cooperate to give full effect to this provision and the consent to
any amendment described in the preceding sentence shall not be unreasonably
withheld by either party.  The parties
agree that neither party has (a) an obligation to bring any potential Section 409A
Tax to the attention of the other party or (b) any liability for any Section 409A
Tax or any other reporting or withholding obligation to the other party.

 

In all other respects, the Employment
Agreement shall remain unchanged and in full force and effect.

 

IN WITNESS WHEREOF, this Amendment has been
executed and delivered by the parties hereto this 28th day of January, 2008.

 

	
   

  	
  METABANK    

  
	
   

  	
   

  
	
   

  	
  /s/
  E. Wayne Cooley

  
	
   

  	
  E.
  Wayne Cooley

  
	
   

  	
  Chairman,
  Compensation Committee

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE  

  
	
   

  	
   

  
	
   

  	
  /s/ James S. Haahr

  
	
   

  	
  James S. Haahr

  

 

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