Document:

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                                  EXHIBIT 10.8

                              EMPLOYMENT AGREEMENT
                       (As Amended Effective July 1, 1993)

         THIS EMPLOYMENT AGREEMENT is made effective as of this 1st day of July,
1993, by and between First Federal Savings Bank, LaCrosse-Madison, a
federally-chartered savings bank (the "Bank"), and Thomas W. Schini (the
"Executive").

         WHEREAS, Executive has been employed by the Bank for more than thirty
years, and currently serves as its President and Chief Executive Officer
("Corporate Position"); and

         WHEREAS, Executive possesses an intimate knowledge of the business and
affairs of the Bank, including its policies, markets and financial and human
resources; and

         WHEREAS, the Board of Directors of the Bank (the "Board"), recognizes
that Executive's contribution to the growth and success of the Bank has been
substantial and desires to assure the Bank of Executive's continued employment
in an executive capacity and to compensate him therefore; and

         WHEREAS, Executive is desirous of committing himself to serve the Bank
on the terms provided in this Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein set forth, the Bank and Executive agree as follows:

         1. Employment. Bank shall continue to employ Executive and Executive
shall continue to serve Bank under the terms and conditions of this Agreement
(which terms and conditions are intended to amend and supercede the agreement of
July 1, 1987 as previously in effect between the parties), for the period stated
in paragraph 2 below.

         2. Term of Employment. The period of Executive's employment under this
Agreement shall commence on the date set forth above ("Commencement Date") and
shall expire on the third annual anniversary of said Commencement Date, unless
sooner terminated as provided herein. Effective as of any annual anniversary of
the Commencement Date during the term of this Agreement, the term of employment
hereunder may be extended by the action of the Bank's Board of Directors to add
one additional year to the then remaining term of employment hereunder so that
said term is annually restored to a full three-year term. The Board of Directors
or the Executive shall each provide the other with at least forty-five (45)
days' advance written notice of any decision on their respective parts not to
extend the Agreement on the anniversary date. The term of employment under this
Agreement, as in effect from time to time, shall be referred to

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as the "Employment Term."

         3. Position and Duties. Subject to Section 5(iv)(B), Executive shall
serve in his Corporate Position, reporting to the Board, and shall have
supervision and control over, and responsibility for, the operation of the Bank
and shall have such other powers and duties as may from time to time be
prescribed by the Board, provided that such duties are consistent with his
present duties and position as an executive officer of the Bank. Executive shall
devote substantially all his working time and efforts to the business and
affairs of the Bank.

         4. Compensation. As compensation for the services to be provided
pursuant to this Agreement, Executive shall receive from Bank the compensation
and other benefits set forth below:

              (i) Base Salary. During the Employment Term the Executive shall
receive a base salary ("Base Salary") in such amount as may from time to time be
approved by the Board. The Base Salary shall at no time be less than the annual
base salary payable to the Executive on the date of this Agreement. Any increase
in Base Salary or other compensation granted by the Board shall in no way limit
or reduce any other obligation of the Bank under this Agreement and, once
established at an increased specified rate, Executive's Base Salary under this
Agreement shall not thereafter be reduced. Executive's Base Salary and other
compensation shall be paid in accordance with the Bank's regular payroll
practices, as from time to time in effect.

              (ii) Bonus Payments. In addition to Base Salary, Executive shall
be entitled during the Employment Term to receive such bonus payments as the
Board may determine in accordance with the Bank's Management Incentive Plan (the
"Incentive Plan") in effect on the date of this Agreement or as the same may be
amended or modified from time to time for the Bank's executive officers.

              (iii) Other Benefits. During the Employment Term the Bank shall
provide to Executive all other benefits of employment generally made available
to the Bank's executive officers as in effect with other plans or arrangements
providing Executive with at least equivalent benefits there-under. Executive
shall be entitled to participate in or receive benefits under any group health
and life insurance plan, pension plan, stock purchase, incentive savings, stock
option, restricted stock, stock appreciation rights and any other similar plans
or arrangements presently or hereafter made available by the Bank to its
executive officers (collectively the "Benefit Plans"), subject to and on a basis
consistent with the terms, conditions and overall administration of such Benefit
Plans. Executive shall be entitled to vacations and perquisites in accordance
with the Bank's policies as in effect from time to time for its executive

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officers.

         5. Termination. This Agreement may be terminated, subject to payment of
the compensation and other benefits described below, upon the occurrence of any
of the events described below. In case of such termination, the date on which
Executive ceases to be employed under this Agreement, after giving effect to any
prior notice requirement set forth below, is referred to as the "Termination
Date."

              (i) Death; Disability; Retirement. This Agreement shall terminate
upon the death, disability or retirement of Executive. As used in this
Agreement, the term "disability" shall mean Executive's inability, as a result
of physical or mental incapacity, to substantially perform his duties with the
Bank for a period of 180 consecutive days. Any question as to the existence of
Executive's disability upon which the Executive and the Bank cannot agree shall
be determined by a qualified independent physician mutually agreeable to
Executive and the Bank or, if the parties are unable to agree upon a physician
within ten (10) days after notice from either to the other suggesting a
physician, by a physician designated by the then president of the medical
society for the county in which Executive maintains his principal residence,
upon the request of either party. The costs of any such medical examination
shall be borne by the Bank. If Executive is terminated due to disability he
shall be paid 100% of his Base Salary at the rate in effect at the time notice
of termination is given for the remainder of the Employment Term, payable in
substantially equal monthly installments less, in each case, any disability
payments otherwise payable under plans provided by the Bank for disability or
any governmental social security or workers compensation program, and actually
paid to Executive in substantially equal monthly installments.

              As used in this Agreement, the term "retirement" shall mean
Executive's retirement in accordance with and pursuant to any retirement plan of
the Bank generally applicable to its executive officers or in accordance with
any retirement arrangement established with Executive's consent with respect to
Executive.

              If termination occurs for such reason, no additional compensation
shall be payable to the Executive under this Agreement except as specifically
provided in this Agreement. Notwithstanding anything to the contrary contained
in this Agreement, the Executive shall receive all compensation and other
benefits to which he was entitled under Section 4 through the Termination Date
and, in addition, shall receive all other benefits available to him under the
Bank's Benefit Plans as in effect on the date of death, disability or
retirement.

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              (ii) Cause. The Bank may terminate the Executive's employment
under this Agreement for Cause at any time, and thereafter the Bank's
obligations under this Agreement shall cease and terminate. Notwithstanding
anything to the contrary contained in this Agreement, Executive shall receive
all compensation and other benefits to which he was entitled under Section 4
through the Termination Date and, in addition, shall receive all benefits
available to him under the Bank's Benefit Plans as in effect on the Termination
Date. For purposes of this Agreement, "Cause" shall mean (A) the willful and
continued failure by Executive to substantially perform his duties with the Bank
(other than failure resulting from the Executive's incapacity due to physical or
mental illness) after a written demand for substantial performance is delivered
to Executive by the Board, which demand specifically identifies the manner in
which the Board believes Executive has not substantially performed his duties,
(B) any willful act of misconduct by Executive which is materially injurious to
the Bank, monetarily or otherwise, (C) a criminal conviction of Executive for
any act involving dishonesty, breach of trust or a violation of the banking or
savings and loan laws of the State of Wisconsin or the United States, (D) a
criminal conviction of the Executive for the commission of any felony, (E) a
willful breach of fiduciary duty involving personal profit, (F) a willful
violation of any law, rule or regulation or final cease and desist order where
such violations materially, adversely, affect the Bank, (G) incompetence,
personal dishonesty or material breach of any provision of this Agreement which
would have a material adverse impact on the Bank. For purposes of this
Subsection 5(ii), no act, or failure to act, on the Executive's part shall be
deemed "willful" unless done, or omitted to be done, by the Executive not in
good faith and without reasonable belief that the action or omission was in the
best interest of the Bank.

              (iii) Voluntary Termination by Executive. Executive may
voluntarily terminate his employment under this Agreement at any time by giving
at least ninety (90) days prior written notice to the Bank. In such event,
Executive shall receive all compensation and other benefits to which he was
entitled under Section 4 through the Termination Date and, in addition, shall
receive all other benefits available to him under the Bank's Benefit Plans as in
effect on the Termination Date.

              (iv) Termination by Executive After Change in Control. For
purposes of this Agreement, a "change in control" shall mean a change in control
with respect to the Bank or its parent holding company of a nature that would be
required to be reported in response to Item 6(e) of Schedule 14A of Regulation
14A promulgated under the Securities Exchange Act of 1934, as amended ("Exchange
Act") or any successor thereto; provided that, without limitation, such a change
in control shall be deemed to have occurred if (i) any "person" (as such term is
used in Sections

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13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities representing 25% or more of the combined voting power of the Bank or
holding company's then outstanding securities; or (ii) during any period of two
consecutive years, individuals who at the beginning of such period constitute
the Board of Directors of the Bank or company 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. The Executive may terminate his employment under this
Agreement by giving at least ninety (90) days prior written notice to the Bank
at anytime (1) within eighteen (18) months of the effective date of a "change in
control", or (2) after the occurrence, at any time subsequent to a "change in
control," of any of the following events, without Executive's express written
consent:

                   (A) Executive is assigned to any positions, duties or
responsibilities that are materially less significant than his positions, duties
and responsibilities as of the time immediately prior to any change in control;

                   (B) Executive is removed from or the Board fails to re-elect
Executive to any of his Corporate Position, except (1) in connection with
termination of Executive's employment for cause, disability or retirement, or
(2) in connection with any change in control after which the Bank is not the
continuing or surviving corporation, if the successor organization has executed
an agreement as required by Section 8(i)(A) and the removal or failure to
re-elect is limited to his Corporate Position with the Bank;

                   (C) Executive's Base Salary is materially reduced or the
Executive experiences in any year a material reduction of the ratio of his bonus
payment to his Base Salary which is greater than the average reduction in the
ratio of bonus payments to base salaries in such year experienced by all other
executive officers of the Bank or any other material failure by the Bank to
comply with Section 4;

                   (D) Executive is transferred to a location not within a 25
mile radius of the City of LaCrosse, Wisconsin; or

                   (E) The Bank fails to obtain an agreement from any successor
organization as required by Section 8(i)(A).

         (v)      Suspension or Termination Required by the OTS

                   (A) If Executive is suspended and/or temporarily prohibited
from participating in the conduct of the Bank's

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affairs by a notice served under section 8(e)(3), or section 8(g)(1) of the
Federal Deposit Insurance Act (12 U.S.C. ss. 1818(e)(3) and (g)(1), the Bank's
obligations under the Agreement shall be suspended as of the date of service of
the notice unless stayed by appropriate proceedings. If the charges in the
notice are dismissed, Bank shall (1) pay Executive all of the compensation
withheld while its obligations under this Agreement were suspended and (2)
reinstate any of its obligations which were suspended.

                   (B) If Executive is removed and/or permanently prohibited
from participating in the conduct of the Bank's affairs by an order issued under
section 8(e)(4) or section 8(g)(1) of the Federal Deposit Insurance Act (12
U.S.C. ss. 1818(e)(4) or (g)(1) obligations of the Bank under the Agreement
shall terminate as of the effective date of the order, but vested rights of the
Executive to compensation and to any benefits under the Bank's Pension Plan
shall not be affected.

                   (C) If the Bank is in default as defined in section 3(x)(1)
of the Federal Deposit Insurance Act, (12 U.S.C. 1813 (x)(1)) all obligations
under the Agreement shall terminate as of the date of default, except that this
paragraph shall not affect vested rights of the Executive under any qualified
retirement plan nor, in the event the Executive terminates prior to the date of
such default, the Executive's vested rights to continue to receive severance
payments and benefits pursuant to Section 5(vi) of this Agreement.

                   (D) All obligations under the Agreement shall be terminated,
except to the extent determined that continuation of the contract is necessary
for the continued operation of the Bank, (i) by the OTS, at the time the FDIC or
Resolution Trust Corporation ("RTC") enters into an agreement to provide
assistance to or on behalf of the Bank under the authority contained in section
13(c) of the Federal Deposit Insurance Act; or (ii) by the OTS at the time it
approves a supervisory merger to resolve problems related to operation of the
Bank or when the Bank is determined by the OTS to be in an unsafe or unsound
condition. Any rights of the parties that have already vested, however, shall
not be affected by such action, and the Executive shall receive the compensation
and benefits set forth in section 5(vi) of this Agreement.

                   (E) In the event that 12 C.F.R. ss. 563.39, or any successor
regulation, is repealed, this section 5(v) shall cease to be effective on the
effective date of such repeal. In the event that 12 C.F.R. ss. 563.39, or any
successor regulation, is amended or modified, this Agreement shall be revised to
reflect the amended or modified provisions if: (1) the amended or modified
provision is required to be included in this Agreement; or (2) if not so
required, the Executive requests that the

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Agreement be so revised.

         (vi) Termination by the Bank Other Than Due to Death, Disability,
Retirement or For Cause; Termination of Executive. If this Agreement is
terminated by the Bank for any reason other than death, disability, retirement
or for cause as set forth in Section 5(i) or (ii), or is terminated by the
Executive pursuant to Section 5(iv), then, following the Date of Termination:

                   (A) In lieu of any further salary payments to the Executive
for a period subsequent to the Termination Date, the Executive shall receive
severance pay in the form of payments continuing for the remaining unexpired
portion of the Employment Term, fully restored as of the Termination Date, at
the times provided in Section 4(i) and 4 (ii) ("Severance Payments") and based
on his highest rate of Base Salary within the 3 years preceding his Termination
Date and his total cash bonus paid in his most recently completed calendar year
of employment. In the event of a termination as a result of a change in control,
the Executive may elect to receive the Severance Payments calculated above in
one lump-sum, subject to any applicable limitations set forth in Section 6
below; provided that the amount of Severance Payment in connection with a change
in control shall be at least equal to the particular Executive's annual
compensation as of the Termination Date.

                   (B) In addition to the retirement benefits to which the
Executive is entitled under the Bank's Group Pension Plan, 401(k) Plan, and
ESOP, as amended from time to time (the "Retirement Plans"), the Executive shall
receive additional severance retirement benefits payable under this Agreement,
which benefits (except as provided below) shall be determined in accordance
with, and payable in the form and at the times provided in, the respective
Retirement Plans. Such benefits shall be determined as if the Executive were
fully vested under each Retirement Plan and had accumulated (after any
termination under this Agreement) the additional years of credited service
and/or allocations and Employer contributions under each of said Plans that he
would have received had he continued in the employment of the Bank for the
entire Employment Term at the levels of Base Salary and cash bonus used to
calculate the Severance Payments pursuant to subsection 5(vi)(A) above.

                   (C) In addition to all other amounts payable under this
section 5, Executive shall be entitled to coverage under any group health, life,
dental, or other group insurance plans (as well as under any individual life
coverages provided by the Bank on Executive's behalf) for the remainder of the
Employment Term upon his continued payment of any required employee contribution
at the rate in effect as of his Termination Date and to receipt of all benefits
otherwise payable to Executive under (i) any tax qualified Bank plan or
agreement relating to pension or

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retirement benefits, and (ii) any other Bank plan or agreement, regardless of
tax status, established to provide deferred compensation, retirement, or other
benefits for the Executive.

                   (D) If Executive is under fifty-five (55) years of age on the
Termination Date, Executive shall take reasonable steps to obtain employment and
thereby mitigate the amount of compensation and benefits due under Section
5(vi); provided, however, that Executive shall not be required to accept a
position other than one within a 25 mile radius of the City of LaCrosse,
Wisconsin. If the Executive is fifty-five (55) years of age or older on the
Termination Date or if Executive determines upon the advice of a qualified
independent physician that he is physically or medically unable to substantially
perform duties with another employer comparable to those performed by him with
the Bank, the Executive shall have no obligation to seek other employment.
Notwithstanding the foregoing, and regardless of age, during any portion of the
Employment term remaining after the Termination Date, if the Executive becomes
employed on a full-time basis by another employer, then to the extent the
Executive shall receive compensation, benefits or service credit from such other
employer, the aggregate amount of all compensation to be paid and benefits and
service credit to be provided by the Bank under this Agreement shall be
correspondingly reduced.

                   (E) The requirement for mitigation, as set forth in Section 5
(vi)(D) above, shall not apply with respect to any termination under Section
5(iv) subsequent to a change in control.

         6. Limitations on Termination Compensation.

              (i) In the event that the severance benefits payable to the
Executive under Subsection 5(vi) ("Severance Benefits"), or any other payments
or benefits received or to be received by the Executive from the Bank (whether
payable pursuant to the terms of this Agreement, any other plan, agreement or
arrangement with the Bank or any corporation ("Affiliate") affiliated with the
Bank within the meaning of Section 1504 of the Internal Revenue Code of 1954, as
amended (the "Code"), in the opinion of tax counsel selected by the Bank's
independent auditors and acceptable to the Executive, constitute "parachute
payments" within the meaning of Section 280G(b)(2) of the Code, and the present
value of such "parachute payments" equals or exceeds three (3) times the average
of the annual compensation payable to the Executive by the Bank (or an
Affiliate) and includible in the Executive's gross income for federal income tax
purposes for the five (5) calendar years preceding the year in which a change in
ownership or control of the Bank occurred ("Base Amount"), such severance
benefits shall be reduced to an amount the present value of which (when combined
with the present value of any other payments or

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benefits otherwise received or to be received by the Executive from the Bank (or
an Affiliate) that are deemed "parachute payments") is equal to 2.99 times the
Base Amount, notwithstanding any other provision to the contrary in this
Agreement. The Severance Benefits shall not be reduced if (A) the Executive
shall have effectively waived his receipt or enjoyment of any such payment or
benefit which triggered the applicability of this Section 6, or (B) in the
opinion of such tax counsel, the Severance Benefits (in its full amount or as
partially reduced, as the case may be) plus all other payments or benefits which
constitute "parachute payments" within the meaning of Section 280G(b)(2) of the
code are reasonable compensation for services actually rendered, within the
meaning of Section 280G(b)(4) of the code, and such payments are deductible by
the Bank. The Base Amount shall include every type and form of compensation
includible in the Executive's gross income in respect of his employment by the
Bank (or an Affiliate), except to the extent otherwise provided in temporary or
final regulations promulgated under Section 280G(b) of the Code. For purposes of
this Section 6, a "change in ownership or control" shall have the meaning set
forth in Section 280G(b) of the code and any temporary or final regulations
promulgated thereunder. The present value of any non-cash benefit or any
deferred cash payment shall be determined by the Bank's independent auditors in
accordance with the principles of Sections 280G(b)(3) and (4) of the Code.

              (ii) Executive shall have the right to request that the Bank
obtain a ruling from the Internal Revenue Service ("Service") as to whether any
or all payments or benefits deter- mined by such tax counsel are, in the view of
the Service, "para- chute payments" under Section 280G. If a ruling is sought
pursuant to the Executive's request, no severance benefits payable under this
Agreement shall be made to the Executive until after fifteen (15) days from the
date of such ruling. For purposes of this Subsection 6(ii), the Executive and
the Bank agree to be bound by the Service's ruling as to whether payments
constitute "parachute payments" under Section 280G. If the service declines, for
any reason, to provide the ruling requested, the tax counsel's opinion provided
under Sub-section 6(i) with respect to what payments or benefits constitute
"parachute payments" shall control, and the period during which the Severance
Benefits may be deferred shall be extended to a date fifteen (15) days from the
date of the Service's notice indicating that no ruling would be forthcoming.

              (iii) In the event that Section 280G, or any successor statute, is
repealed, this Section 6 shall cease to be effective on the effective date of
such repeal. The parties to this Agreement recognize that final regulations
under Section 280G of the Code may affect the amounts that may be paid under

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this Agreement and agree that, upon issuance of such final regulations this
Agreement may be modified as in good faith deemed necessary in light of the
provisions of such regulations to achieve the purposes of this Agreement, and
that consent to such modifications shall not be unreasonably withheld.

         7. Noncompetition After Voluntary Termination And Duty of
Confidentiality.

              (a) Noncompetition. Executive acknowledges that the development of
personal contacts and relationships is an essential element of the Bank's
business, that the Bank has invested considerable time and money in his
development of such contacts and relationships, that the Bank could suffer
irreparable harm if he were to leave employment and solicit the business of
Bank's customers, and that it is reasonable to protect the Bank against
competitive activities by Executive. Executive covenants and agrees, in
recognition of the foregoing and in consideration of the mutual promises
contained herein, that in the event of a voluntary termination of employment by
Executive pursuant to Section 5(iii), or upon expiration of this Agreement as a
result of Executive's election not to continue automatic annual renewals,
Executive shall not accept employment in La Crosse, Dane or St. Croix counties
with any Significant Competitor of the Bank for a period of eighteen (18) months
following such termination. For purposes of this Agreement, the term Significant
Competitor means any financial institution including, but not limited to, any
commercial bank, savings bank, savings and loan association, credit union, or
mortgage banking corporation which, at the time of termination of Executive's
employment or during the period of this covenant not to compete, (i) maintains a
home, branch or other office in any of said counties, or (ii) has originated
within any of said counties $10,000,000 or more in residential mortgage loans
during any consecutive twelve (12) month period within the thirty-six (36)
months prior to Executive's termination and inclusive of the period covered by
this covenant.

              Executive agrees that the non-competition provisions set forth
herein are necessary for the protection of the Bank and are reasonably limited
as to (i) the scope of activities affected, (ii) their duration and geographic
scope, and (iii) their effect on Executive and the public. In the event
Executive violates the non-competition provisions set forth herein, Bank shall
be entitled, in addition to its other legal remedies, to enjoin the employment
of Executive with any Significant Competitor for the period set forth herein. If
Executive violates this covenant and the Bank brings legal action for injunctive
or other relief, the Bank shall not, as a result of the time involved in
obtaining such relief, be deprived of the benefit of the full period of the
restrictive covenant. Accordingly, the covenant shall be deemed to have the
duration specified herein, computed from the date such relief is granted, but
reduced by any period between

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commencement of the period and the date of the first violation. In addition to
such other relief as may be awarded, if the Bank is the prevailing party it
shall be entitled to reimbursement for all reasonable costs, including
attorneys' fees, incurred in enforcing its rights hereunder.

              (b) Duty of Confidentiality. Executive acknowledges that he will,
as the result of services performed on behalf of the Bank, obtain or otherwise
become aware of confidential and/or proprietary information regarding the Bank's
affairs, including, but not limited to, information relative to (i) customers,
customer accounts and customer lists, (ii) marketing, (iii) customer development
strategies, (iv) financial and economic plans and projections, and (v) other
similar information. Executive agrees that following termination of his
employment for any reason, he will treat all such matters as confidential and
will refrain both from divulging such information in any manner and from the use
of such information for his benefit or for the benefit of any employer
(regardless of whether such employer would constitute a Significant Competitor
under this Agreement) or third-party.

         8. General Provisions.

              (i) Successors; Binding Agreement.

                   (A) The Bank will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Bank ("successor
organization") to expressly assume and agree to perform this Agreement in the
same manner and to the same extent that the Bank would be required to perform it
if no such succession had taken place. As used in this Agreement, "Bank" shall
mean the Bank as hereinbefore defined and any successor to its business and/or
assets as aforesaid which executes and delivers the agreement provided for in
this Section 8 or which otherwise becomes bound by the terms and provisions of
this Agreement by operation of this Agreement or law. Failure of the Bank to
obtain such agreement prior to the effectiveness of any such succession shall be
a breach of this Agreement and shall entitle the Executive as his exclusive
remedy to compensation from the Bank in the same amount and on the same terms as
he would be entitled to under this agreement if he terminated his employment
under Section 5(iv). For purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Termination
Date.

                   (B) No right or interest to or in any payments or benefits
under this Agreement shall be assignable or transferrable in any respect by the
Executive, nor shall any such payment, right or interest be subject to seizure,
attachment or creditor's process for payment of any debts, judgments, or

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obligations of the Executive.

                   (C) This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the Executive and his heirs, beneficiaries and
personal representatives and the Bank and any successor organization.

              (ii) Notice. For the purpose of this Agreement, notices and all
other communications provided for in the Agreement shall be in writing and shall
be deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed as
follows:

               If to the Bank:

               605 State Street
               LaCrosse, WI 54601
               Attn:  Secretary

or if to Executive at the address set forth below the Executive's signature line
of this Agreement, or to such other address as either party may have furnished
to the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

              (iii) Expenses. If any legal proceeding is necessary to enforce or
interpret this Agreement, or to recover damages for breach of it, the prevailing
party, shall be entitled to recover from the other party reasonable attorneys'
fees and necessary costs and disbursements incurred in such litigation, in
addition to any other relief to which such prevailing party may be entitled.

              Notwithstanding the foregoing, in the event of a legal proceeding
to enforce or interpret the terms of this Agreement following a change in
control, Executive shall be entitled to recover from Bank, regardless of the
outcome of said action, necessary costs and disbursements incurred together with
actual attorney's fees up to the greater of (A) $25,000, or (B) thirty percent
(30%) of the amount in dispute between the parties [which amount, for purposes
of this Agreement, shall be deemed to be the difference between the highest
written settlement offer from the Bank and the lowest written settlement offer
(exclusive of any claim for consequential, punitive, or other forms or amounts
of damages not based on specific contract terms) from Executive]. Recovery by
Executive of attorneys fees and costs as provided herein following a change in
control shall be in addition to any other relief to which Executive may be
entitled.

              (iv) Withholding. The Bank shall be entitled to withhold from
amounts to be paid to the Executive under this Agreement any federal, state or
local withholding or other taxes

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of charges which it is from time to time required to withhold. the Bank shall be
entitled to rely on an opinion of counsel if any question as to the amount or
requirement of any such withholding shall arise.

              (v) Miscellaneous. No provision of this Agreement may be amended,
waived or discharged unless such amendment, waiver or discharge is agreed to in
writing and signed by the Executive and such officer as may be specifically
designated by the board. No waiver by either party hereto at any time of any
breach by the 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. No agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter hereof have been made by
either party which are not expressly set forth in this Agreement. The validity,
interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Wisconsin.

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

              (vii) Counterparts. This Agreement may be executed in several
counterparts, each of which together will constitute one and the same
instrument.

              (viii) Headings. Headings contained in this Agreement are for
reference only and shall not affect the meaning or interpretation of any
provision of this Agreement.

              (ix) Effective Date. The effective date of this Agreement shall be
the date indicated in the first paragraph of this Agreement, notwithstanding the
actual date of execution by any party.

         IN WITNESS WHEREOF, the undersigned have duly executed this Agreement
as of the date first above written.

                                              Executive:  Thomas W. Schini

                                              ----------------------------------

                                              ----------------------------------

                                      -13-

<PAGE>   14

                                    (Address)

                                    First Federal Savings Bank,
                     LaCrosse-Madison
                                            (CORPORATE SEAL)

                                    By:
                                       ----------------------------------------

                                    By:
                                       ----------------------------------------

                                      -14-

<PAGE>   15

                              EMPLOYMENT AGREEMENT
                       (As Amended Effective July 1, 1994)

         THIS EMPLOYMENT AGREEMENT is made effective as of this 1st day of July,
1994, by and between First Federal Savings Bank, LaCrosse-Madison, a
federally-chartered savings bank (the "Bank"), and Bradford R. Price (the
"Executive").

         WHEREAS, Executive has been employed by the Bank for a number of years,
and currently serves as its Executive Vice President, Secretary, and Residential
Lending Division Manager ("Corporate Position"); and

         WHEREAS, Executive possesses an intimate knowledge of the business and
affairs of the Bank, including its policies, markets and financial and human
resources; and

         WHEREAS, the Board of Directors of the Bank (the "Board"), recognizes
that Executive's contribution to the growth and success of the Bank has been
substantial and desires to assure the Bank of Executive's continued employment
in an executive capacity and to compensate him therefore; and

         WHEREAS, Executive is desirous of committing himself to serve the Bank
on the terms provided in this Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein set forth, the Bank and Executive agree as follows:

         1. Employment. Bank shall continue to employ Executive and Executive
shall continue to serve Bank under the terms and conditions of this Agreement
(which terms and conditions are intended to amend and supercede the agreement of
July 1, 1987 as previously in effect between the parties), for the period stated
in paragraph 2 below.

         2. Term of Employment. The period of Executive's employment under this
Agreement shall commence on the date set forth above ("Commencement Date") and
shall expire on the third annual anniversary of said Commencement Date, unless
sooner terminated as provided herein. Effective as of any annual anniversary of
the Commencement Date during the term of this Agreement, the term of employment
hereunder may be extended by the action of the Bank's Board of Directors to add
one additional year to the then remaining term of employment hereunder so that
said term is annually restored to a full three-year term. The Board of Directors
or the Executive shall each provide the other with at least forty-five (45)
days' advance written notice of any decision on their respective parts not to
extend the Agreement on the anniversary date. The term of employment under this

<PAGE>   16

Agreement, as in effect from time to time, shall be referred to as the
"Employment Term."

         3. Position and Duties. Subject to Section 5(iv)(B), the Executive
shall serve in his Corporate Position, reporting to the President, and shall
have supervision and control over, and responsibility for, residential lending
activities of the Bank, corporate recordkeeping and shall have such other powers
and duties as may from time to time be prescribed by the President, provided
that such duties are consistent with his present duties and with the Executive's
position as an executive officer of the Bank. The Executive shall devote
substantially all his working time and efforts to the business and affairs of
the Bank.

         4. Compensation. As compensation for the services to be provided
pursuant to this Agreement, Executive shall receive from Bank the compensation
and other benefits set forth below:

              (i) Base Salary. During the Employment Term the Executive shall
receive a base salary ("Base Salary") in such amount as may from time to time be
approved by the Board. The Base Salary shall at no time be less than the annual
base salary payable to the Executive on the date of this Agreement. Any increase
in Base Salary or other compensation granted by the Board shall in no way limit
or reduce any other obligation of the Bank under this Agreement and, once
established at an increased specified rate, Executive's Base Salary under this
Agreement shall not thereafter be reduced. Executive's Base Salary and other
compensation shall be paid in accordance with the Bank's regular payroll
practices, as from time to time in effect.

              (ii) Bonus Payments. In addition to Base Salary, Executive shall
be entitled during the Employment Term to receive such bonus payments as the
Board may determine in accordance with the Bank's Management Incentive Plan (the
"Incentive Plan") in effect on the date of this Agreement or as the same may be
amended or modified from time to time for the Bank's executive officers.

              (iii) Other Benefits. During the Employment Term the Bank shall
provide to Executive all other benefits of employment generally made available
to the Bank's executive officers as in effect with other plans or arrangements
providing Executive with at least equivalent benefits thereunder. Executive
shall be entitled to participate in or receive benefits under any group health
and life insurance plan, pension plan, stock purchase, incentive savings, stock
option, restricted stock, stock appreciation rights and any other similar plans
or arrangements presently or hereafter made available by the Bank to its
executive officers (collectively the "Benefit Plans"), subject to and on a basis
consistent with the terms, conditions and overall administration of such Benefit
Plans. Executive shall be

                                      -2-

<PAGE>   17

entitled to vacations and perquisites in accordance with the Bank's policies as
in effect from time to time for its executive officers.

         5. Termination. This Agreement may be terminated, subject to payment of
the compensation and other benefits described below, upon the occurrence of any
of the events described below. In case of such termination, the date on which
Executive ceases to be employed under this Agreement, after giving effect to any
prior notice requirement set forth below, is referred to as the "Termination
Date."

              (i) Death; Disability; Retirement. This Agreement shall terminate
upon the death, disability or retirement of Executive. As used in this
Agreement, the term "disability" shall mean Executive's inability, as a result
of physical or mental incapacity, to substantially perform his duties with the
Bank for a period of 180 consecutive days. Any question as to the existence of
Executive's disability upon which the Executive and the Bank cannot agree shall
be determined by a qualified independent physician mutually agreeable to
Executive and the Bank or, if the parties are unable to agree upon a physician
within ten (10) days after notice from either to the other suggesting a
physician, by a physician designated by the then president of the medical
society for the county in which Executive maintains his principal residence,
upon the request of either party. The costs of any such medical examination
shall be borne by the Bank. If Executive is terminated due to disability he
shall be paid 100% of his Base Salary at the rate in effect at the time notice
of termination is given for the remainder of the Employment Term, payable in
substantially equal monthly installments less, in each case, any disability
payments otherwise payable under plans provided by the Bank for disability or
any governmental social security or workers compensation program, and actually
paid to Executive in substantially equal monthly installments.

              As used in this Agreement, the term "retirement" shall mean
Executive's retirement in accordance with and pursuant to any retirement plan of
the Bank generally applicable to its executive officers or in accordance with
any retirement arrangement established with Executive's consent with respect to
Executive.

              If termination occurs for such reason, no additional compensation
shall be payable to the Executive under this Agreement except as specifically
provided in this Agreement. Notwithstanding anything to the contrary contained
in this Agreement, the Executive shall receive all compensation and other
benefits to which he was entitled under Section 4 through the Termination Date
and, in addition, shall receive all other benefits available to him under the
Bank's Benefit Plans as in

                                      -3-

<PAGE>   18

effect on the date of death, disability or retirement.

              (ii) Cause. The Bank may terminate the Executive's employment
under this Agreement for Cause at any time, and thereafter the Bank's
obligations under this Agreement shall cease and terminate. Notwithstanding
anything to the contrary contained in this Agreement, Executive shall receive
all compensation and other benefits to which he was entitled under Section 4
through the Termination Date and, in addition, shall receive all benefits
available to him under the Bank's Benefit Plans as in effect on the Termination
Date. For purposes of this Agreement, "Cause" shall mean (A) the willful and
continued failure by Executive to substantially perform his duties with the Bank
(other than failure resulting from the Executive's incapacity due to physical or
mental illness) after a written demand for substantial performance is delivered
to Executive by the Board, which demand specifically identifies the manner in
which the Board believes Executive has not substantially performed his duties,
(B) any willful act of misconduct by Executive which is materially injurious to
the Bank, monetarily or otherwise, (C) a criminal conviction of Executive for
any act involving dishonesty, breach of trust or a violation of the banking or
savings and loan laws of the State of Wisconsin or the United States, (D) a
criminal conviction of the Executive for the commission of any felony, (E) a
willful breach of fiduciary duty involving personal profit, (F) a willful
violation of any law, rule or regulation or final cease and desist order where
such violations materially, adversely, affect the Bank, (G) incompetence,
personal dishonesty or material breach of any provision of this Agreement which
would have a material adverse impact on the Bank. For purposes of this
Subsection 5(ii), no act, or failure to act, on the Executive's part shall be
deemed "willful" unless done, or omitted to be done, by the Executive not in
good faith and without reasonable belief that the action or omission was in the
best interest of the Bank.

              (iii) Voluntary Termination by Executive. Executive may
voluntarily terminate his employment under this Agreement at any time by giving
at least forty-five (45) days prior written notice to the Bank. In such event,
Executive shall receive all compensation and other benefits to which he was
entitled under Section 4 through the Termination Date and, in addition, shall
receive all other benefits available to him under the Bank's Benefit Plans as in
effect on the Termination Date.

              (iv) Termination by Executive After Change in Control. For
purposes of this Agreement, a "change in control" shall mean a change in control
with respect to the Bank or its parent holding company of a nature that would be
required to be reported in response to Item 6(e) of Schedule 14A of Regulation
14A promulgated under the Securities Exchange Act of 1934, as amended ("Exchange
Act") or any successor thereto; provided that, without

                                      -4-

<PAGE>   19

limitation, such a change in control shall be deemed to have occurred if (i) any
"person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities representing 25% or more of
the combined voting power of the Bank or holding company's then outstanding
securities; or (ii) during any period of two consecutive years, individuals who
at the beginning of such period constitute the Board of Directors of the Bank or
company 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. The Executive
may terminate his employment under this Agreement by giving at least ninety (90)
days prior written notice to the Bank at anytime (1) within eighteen (18) months
of the effective date of a "change in control", or (2) after the occurrence, at
any time subsequent to a "change in control," of any of the following events,
without Executive's express written consent:

                   (A) Executive is assigned to any positions, duties or
responsibilities that are less significant than his positions, duties and
responsibilities as of the time immediately prior to any change in control;

                   (B) Executive is removed from or the Board fails to re-elect
Executive to any of his Corporate Position, except (1) in connection with
termination of Executive's employment for cause, disability or retirement, or
(2) in connection with any change in control after which the Bank is not the
continuing or surviving corporation, if the successor organization has executed
an agreement as required by Section 8(i)(A) and the removal or failure to
re-elect is limited to his Corporate Position with the Bank;

                   (C) Executive's Base Salary is materially reduced or the
Executive experiences in any year a material reduction of the ratio of his bonus
payment to his Base Salary which is greater than the average reduction in the
ratio of bonus payments to base salaries in such year experienced by all other
executive officers of the Bank or any other material failure by the Bank to
comply with Section 4;

                   (D) Executive is transferred to a location not within a 25
mile radius of the City of LaCrosse, Wisconsin; or

                   (E) The Bank fails to obtain an agreement from any successor
organization as required by Section 8(i)(A).

                                      -5-
<PAGE>   20

              (v) Suspension or Termination Required by the OTS

                   (A) If Executive is suspended and/or temporarily prohibited
from participating in the conduct of the Bank's affairs by a notice served under
section 8(e)(3), or section 8(g)(1) of the Federal Deposit Insurance Act (12
U.S.C. ss. 1818(e)(3) and (g)(1), the Bank's obligations under the Agreement
shall be suspended as of the date of service of the notice unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, Bank shall
(1) pay Executive all of the compensation withheld while its obligations under
this Agreement were suspended and (2) reinstate any of its obligations which
were suspended.

                   (B) If Executive is removed and/or permanently prohibited
from participating in the conduct of the Bank's affairs by an order issued under
section 8(e)(4) or section 8(g)(1) of the Federal Deposit Insurance Act (12
U.S.C. ss. 1818(e)(4) or (g)(1) obligations of the Bank under the Agreement
shall terminate as of the effective date of the order, but vested rights of the
Executive to compensation and to any benefits under the Bank's Pension Plan
shall not be affected.

                   (C) If the Bank is in default as defined in section 3(x)(1)
of the Federal Deposit Insurance Act, (12 U.S.C. 1813 (x)(1))all obligations
under the Agreement shall terminate as of the date of default, except that this
paragraph shall not affect any vested rights of the Executive under any
qualified retirement plan nor, in the event the Executive terminates prior to
the date of such default, the Executive's vested rights to continue to receive
severance payments and benefits pursuant to section 5(vi) of this Agreement.

                   (D) All obligations under the Agreement shall be terminated,
except to the extent determined that continuation of the contract is necessary
for the continued operation of the Bank, (i) by the OTS, at the time the FDIC or
Resolution Trust Corporation ("RTC") enters into an agreement to provide
assistance to or on behalf of the Bank under the authority contained in section
13(c) of the Federal Deposit Insurance Act; or (ii) by the OTS at the time it
approves a supervisory merger to resolve problems related to operation of the
Bank or when the Bank is determined by the OTS to be in an unsafe or unsound
condition. Any rights of the parties that have already vested, however, shall
not be affected by such action, and the Executive shall receive the compensation
and benefits set forth in section 5(vi) of this Agreement.

                   (E) In the event that 12 C.F.R. ss. 563.39, or any successor
regulation, is repealed, this section 5(v) shall cease to be effective on the
effective date of such repeal. In the event that 12 C.F.R. ss. 563.39, or any
successor regulation, is

                                      -6-

<PAGE>   21

amended or modified, this Agreement shall be revised to reflect the amended or
modified provisions if: (1) the amended or modified provision is required to be
included in this Agreement; or (2) if not so required, the Executive requests
that the Agreement be so revised.

              (vi) Termination by the Bank Other Than Due to Death, Disability,
Retirement or For Cause; Termination of Executive. If this Agreement is
terminated by the Bank for any reason other than death, disability, retirement
or for cause as set forth in Section 5(i) or (ii), or is terminated by the
Executive pursuant to Section 5(iv), then, following the Date of Termination:

                   (A) In lieu of any further salary payments to the Executive
for a period subsequent to the Termination Date, the Executive shall receive
severance pay in the form of payments continuing for the remaining unexpired
portion of the Employment Term, fully restored as of the Termination Date, at
the times provided in Section 4(i) and 4 (ii) ("Severance Payments") and based
on his highest rate of Base Salary within the 3 years preceding his Termination
Date and his total cash bonus paid in his most recently completed calendar year
of employment. In the event of a termination as a result of a change in control,
the Executive may elect to receive the Severance Payments calculated above in
one lump-sum, subject to any applicable limitations set forth in Section 6
below; provided that the amount of Severance Payment in connection with a change
in control shall be at least equal to the particular Executive's annual
compensation as of the Termination Date.

                   (B) In addition to the retirement benefits to which the
Executive is entitled under the Bank's Group Pension Plan, 401(k) Plan, and
ESOP, as amended from time to time (the "Retirement Plans"), the Executive shall
receive additional severance retirement benefits payable under this Agreement,
which benefits (except as provided below) shall be determined in accordance
with, and payable in the form and at the times provided in, the respective
Retirement Plans. Such benefits shall be determined as if the Executive were
fully vested under each Retirement Plan and had accumulated (after any
termination under this Agreement) the additional years of credited service
and/or allocations and Employer contributions under each of said Plans that he
would have received had he continued in the employment of the Bank for the
entire Employment Term at the levels of Base Salary and cash bonus used to
calculate the Severance Payments pursuant to subsection 5(vi)(A) above.

                   (C) In addition to all other amounts payable under this
section 5, Executive shall be entitled to coverage under any group health, life,
dental, or other group insurance plans (as well as under any individual life
coverages provided by the Bank on Executive's behalf) for the remainder of the
Employment Term

                                      -7-

<PAGE>   22

upon his continued payment of any required employee contribution at the rate in
effect as of his Termination Date and to receipt of all benefits otherwise
payable to Executive under (i) any tax qualified Bank plan or agreement relating
to pension or retirement benefits, and (ii) any other Bank plan or agreement,
regardless of tax status, established to provide deferred compensation,
retirement, or other benefits for the Executive.

                   (D) If Executive is under fifty-five (55) years of age on the
Termination Date, Executive shall take reasonable steps to obtain employment and
thereby mitigate the amount of compensation and benefits due under Section
5(vi); provided, however, that Executive shall not be required to accept a
position other than one within a 25 mile radius of the City of LaCrosse,
Wisconsin. If the Executive is fifty-five (55) years of age or older on the
Termination Date or if Executive determines upon the advice of a qualified
independent physician that he is physically or medically unable to substantially
perform duties with another employer comparable to those performed by him with
the Bank, the Executive shall have no obligation to seek other employment.
Notwithstanding the foregoing, and regardless of age, during any portion of the
Employment term remaining after the Termination Date, if the Executive becomes
employed on a full-time basis by another employer, then to the extent the
Executive shall receive compensation, benefits or service credit from such other
employer, the aggregate amount of all compensation to be paid and benefits and
service credit to be provided by the Bank under this Agreement shall be
correspondingly reduced.

                   (E) The requirement for mitigation, as set forth in Section 5
(vi)(D) above, shall not apply with respect to any termination under Section
5(iv) subsequent to a change in control.

         6. Limitations on Termination Compensation.

            (i) In the event that the severance benefits payable to the
Executive under Subsection 5(vi) ("Severance Benefits"), or any other payments
or benefits received or to be received by the Executive from the Bank (whether
payable pursuant to the terms of this Agreement, any other plan, agreement or
arrangement with the Bank or any corporation ("Affiliate") affiliated with the
Bank within the meaning of Section 1504 of the Internal Revenue Code of 1954, as
amended (the "Code"), in the opinion of tax counsel selected by the Bank's
independent auditors and acceptable to the Executive, constitute "parachute
payments" within the meaning of Section 280G(b)(2) of the Code, and the present
value of such "parachute payments" equals or exceeds three (3) times the average
of the annual compensation payable to the Executive by the Bank (or an
Affiliate) and includible in the Executive's gross income for federal income tax
purposes for the five (5)

                                      -8-
<PAGE>   23

calendar years preceding the year in which a change in ownership or control of
the Bank occurred ("Base Amount"), such severance benefits shall be reduced to
an amount the present value of which (when combined with the present value of
any other payments or benefits otherwise received or to be received by the
Executive from the Bank (or an Affiliate) that are deemed "parachute payments")
is equal to 2.99 times the Base Amount, notwithstanding any other provision to
the contrary in this Agreement. The Severance Benefits shall not be reduced if
(A) the Executive shall have effectively waived his receipt or enjoyment of any
such payment or benefit which triggered the applicability of this Section 6, or
(B) in the opinion of such tax counsel, the Severance Benefits (in its full
amount or as partially reduced, as the case may be) plus all other payments or
benefits which constitute "parachute payments" within the meaning of Section
280G(b)(2) of the code are reasonable compensation for services actually
rendered, within the meaning of Section 280G(b)(4) of the code, and such
payments are deductible by the Bank. The Base Amount shall include every type
and form of compensation includible in the Executive's gross income in respect
of his employment by the Bank (or an Affiliate), except to the extent otherwise
provided in temporary or final regulations promulgated under Section 280G(b) of
the Code. For purposes of this Section 6, a "change in ownership or control"
shall have the meaning set forth in Section 280G(b) of the code and any
temporary or final regulations promulgated thereunder. The present value of any
non-cash benefit or any deferred cash payment shall be determined by the Bank's
independent auditors in accordance with the principles of Sections 280G(b)(3)
and (4) of the Code.

              (ii) Executive shall have the right to request that the Bank
obtain a ruling from the Internal Revenue Service ("Service") as to whether any
or all payments or benefits determined by such tax counsel are, in the view of
the Service, "parachute payments" under Section 280G. If a ruling is sought
pursuant to the Executive's request, no severance benefits payable under this
Agreement shall be made to the Executive until after fifteen (15) days from the
date of such ruling. For purposes of this Subsection 6(ii), the Executive and
the Bank agree to be bound by the Service's ruling as to whether payments
constitute "parachute payments" under Section 280G. If the service declines, for
any reason, to provide the ruling requested, the tax counsel's opinion provided
under Subsection 6(i) with respect to what payments or benefits constitute
"parachute payments" shall control, and the period during which the Severance
Benefits may be deferred shall be extended to a date fifteen (15) days from the
date of the Service's notice indicating that no ruling would be forthcoming.

              (iii) In the event that Section 280G, or any successor statute, is
repealed, this Section 6 shall cease to be effective

                                      -9-
<PAGE>   24

on the effective date of such repeal. The parties to this Agreement recognize
that final regulations under Section 280G of the Code may affect the amounts
that may be paid under this Agreement and agree that, upon issuance of such
final regulations this Agreement may be modified as in good faith deemed
necessary in light of the provisions of such regulations to achieve the purposes
of this Agreement, and that consent to such modifications shall not be
unreasonably withheld.

         7.   Noncompetition After Voluntary Termination And Duty of
Confidentiality.

              (a) Noncompetition. Executive acknowledges that the development of
personal contacts and relationships is an essential element of the Bank's
business, that the Bank has invested considerable time and money in his
development of such contacts and relationships, that the Bank could suffer
irreparable harm if he were to leave employment and solicit the business of
Bank's customers, and that it is reasonable to protect the Bank against
competitive activities by Executive. Executive covenants and agrees, in
recognition of the foregoing and in consideration of the mutual promises
contained herein, that in the event of a voluntary termination of employment by
Executive pursuant to Section 5(iii), or upon expiration of this Agreement as a
result of Executive's election not to continue automatic annual renewals,
Executive shall not accept employment in La Crosse, Dane or St. Croix counties
with any Significant Competitor of the Bank for a period of eighteen (18) months
following such termination. For purposes of this Agreement, the term Significant
Competitor means any financial institution including, but not limited to, any
commercial bank, savings bank, savings and loan association, credit union, or
mortgage banking corporation which, at the time of termination of Executive's
employment or during the period of this covenant not to compete, (i) maintains a
home, branch or other office in any of said counties, or (ii) has originated
within any of said counties $10,000,000 or more in residential mortgage loans
during any consecutive twelve (12) month period within the thirty-six (36)
months prior to Executive's termination and inclusive of the period covered by
this covenant.

              Executive agrees that the non-competition provisions set forth
herein are necessary for the protection of the Bank and are reasonably limited
as to (i) the scope of activities affected, (ii) their duration and geographic
scope, and (iii) their effect on Executive and the public. In the event
Executive violates the non-competition provisions set forth herein, Bank shall
be entitled, in addition to its other legal remedies, to enjoin the employment
of Executive with any Significant Competitor for the period set forth herein. If
Executive violates this covenant and the Bank brings legal action for injunctive
or other relief, the Bank shall not, as a result of the time involved in
obtaining

                                     -10-
<PAGE>   25

such relief, be deprived of the benefit of the full period of the restrictive
covenant. Accordingly, the covenant shall be deemed to have the duration
specified herein, computed from the date such relief is granted, but reduced by
any period between commencement of the period and the date of the first
violation. In addition to such other relief as may be awarded, if the Bank is
the prevailing party it shall be entitled to reimbursement for all reasonable
costs, including attorneys' fees, incurred in enforcing its rights hereunder.

              (b) Duty of Confidentiality. Executive acknowledges that he will,
as the result of services performed on behalf of the Bank, obtain or otherwise
become aware of confidential and/or proprietary information regarding the Bank's
affairs, including, but not limited to, information relative to (i) customers,
customer accounts and customer lists, (ii) marketing, (iii) customer development
strategies, (iv) financial and economic plans and projections, and (v) other
similar information. Executive agrees that following termination of his
employment for any reason, he will treat all such matters as confidential and
will refrain both from divulging such information in any manner and from the use
of such information for his benefit or for the benefit of any employer
(regardless of whether such employer would constitute a Significant Competitor
under this Agreement) or third-party.

         8.   General Provisions.

              (i) Successors; Binding Agreement.

                   (A) The Bank will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Bank ("successor
organization") to expressly assume and agree to perform this Agreement in the
same manner and to the same extent that the Bank would be required to perform it
if no such succession had taken place. As used in this Agreement, "Bank" shall
mean the Bank as hereinbefore defined and any successor to its business and/or
assets as aforesaid which executes and delivers the agreement provided for in
this Section 8 or which otherwise becomes bound by the terms and provisions of
this Agreement by operation of this Agreement or law. Failure of the Bank to
obtain such agreement prior to the effectiveness of any such succession shall be
a breach of this Agreement and shall entitle the Executive as his exclusive
remedy to compensation from the Bank in the same amount and on the same terms as
he would be entitled to under this agreement if he terminated his employment
under Section 5(iv). For purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Termination
Date.

                   (B) No right or interest to or in any payments or

                                      -11-
<PAGE>   26
benefits under this Agreement shall be assignable or transferrable in any
respect by the Executive, nor shall any such payment, right or interest be
subject to seizure, attachment or creditor's process for payment of any debts,
judgments, or obligations of the Executive.

                    (C) This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the Executive and his heirs, beneficiaries and
personal representatives and the Bank and any successor organization.

              (ii) Notice. For the purpose of this Agreement, notices and all
other communications provided for in the Agreement shall be in writing and shall
be deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed as
follows:

              If to the Bank:

              605 State Street
              LaCrosse, WI 54601
              Attn: Chief Executive Officer

or if to Executive at the address set forth below the Executive's signature line
of this Agreement, or to such other address as either party may have furnished
to the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

              (iii) Expenses. If any legal proceeding is necessary to enforce or
interpret this Agreement, or to recover damages for breach of it, the prevailing
party, shall be entitled to recover from the other party reasonable attorneys'
fees and necessary costs and disbursements incurred in such litigation, in
addition to any other relief to which such prevailing party may be entitled.

              Notwithstanding the foregoing, in the event of a legal proceeding
to enforce or interpret the terms of this Agreement following a change in
control, Executive shall be entitled to recover from Bank, regardless of the
outcome of said action, necessary costs and disbursements incurred together with
actual attorney's fees up to the greater of (A) $25,000, or (B) thirty percent
(30%) of the amount in dispute between the parties [which amount, for purposes
of this Agreement, shall be deemed to be the difference between the highest
written settlement offer from the Bank and the lowest written settlement offer
(exclusive of any claim for consequential, punitive, or other forms or amounts
of damages not based on specific contract terms) from Executive]. Recovery by
Executive of attorneys fees and costs as provided herein following a change in
control shall be in addition to any other relief to which Executive may be
entitled.

                                      -12-
<PAGE>   27

              (iv) Withholding. The Bank shall be entitled to withhold from
amounts to be paid to the Executive under this Agreement any federal, state or
local withholding or other taxes of charges which it is from time to time
required to withhold. the Bank shall be entitled to rely on an opinion of
counsel if any question as to the amount or requirement of any such withholding
shall arise.

              (v) Miscellaneous. No provision of this Agreement may be amended,
waived or discharged unless such amendment, waiver or discharge is agreed to in
writing and signed by the Executive and such officer as may be specifically
designated by the board. No waiver by either party hereto at any time of any
breach by the 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. No agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter hereof have been made by
either party which are not expressly set forth in this Agreement. The validity,
interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Wisconsin.

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

              (vii) Counterparts. This Agreement may be executed in several
counterparts, each of which together will constitute one and the same
instrument.

              (viii) Headings. Headings contained in this Agreement are for
reference only and shall not affect the meaning or interpretation of any
provision of this Agreement.

              (ix) Effective Date. The effective date of this Agreement shall be
the date indicated in the first paragraph of this Agreement, notwithstanding the
actual date of execution by any party.

        IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as
of the date first above written.

                                        Executive:  Bradford R. Price

                                        ------------------------------------

                                      -13-

<PAGE>   28

                                      ------------------------------------
                                      (Address)

                                      First Federal Savings Bank,
                                                       LaCrosse-Madison
                                      (CORPORATE SEAL)

                                      By:
                                          ------------------------------------

                                      By:
                                          ------------------------------------

                                      -14-

<PAGE>   29

                              EMPLOYMENT AGREEMENT
                       (As Amended Effective July 1, 1994)

        THIS EMPLOYMENT AGREEMENT is made effective as of this 1st day of July,
1994, by and between First Federal Savings Bank, LaCrosse-Madison, a
federally-chartered savings bank (the "Bank"), and Jack C. Rusch (the
"Executive").

        WHEREAS, Executive has been employed by the Bank for a number of years,
and currently serves as its Executive Vice President, Treasurer, and Finance and
Administrative Division Manager ("Corporate Position"); and

        WHEREAS, Executive possesses an intimate knowledge of the business and
affairs of the Bank, including its policies, markets and financial and human
resources; and

        WHEREAS, the Board of Directors of the Bank (the "Board"), recognizes
that Executive's contribution to the growth and success of the Bank has been
substantial and desires to assure the Bank of Executive's continued employment
in an executive capacity and to compensate him therefore; and

        WHEREAS, Executive is desirous of committing himself to serve the Bank
on the terms provided in this Agreement.

        NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein set forth, the Bank and Executive agree as follows:

        1. Employment. Bank shall continue to employ Executive and Executive
shall continue to serve Bank under the terms and conditions of this Agreement
(which terms and conditions are intended to amend and supercede the agreement of
July 1, 1987 as previously in effect between the parties), for the period stated
in paragraph 2 below.

        2. Term of Employment. The period of Executive's employment under this
Agreement shall commence on the date set forth above ("Commencement Date") and
shall expire on the third annual anniversary of said Commencement Date, unless
sooner terminated as provided herein. Effective as of any annual anniversary of
the Commencement Date during the term of this Agreement, the term of employment
hereunder may be extended by the action of the Bank's Board of Directors to add
one additional year to the then remaining term of employment hereunder so that
said term is annually restored to a full three-year term. The Board of Directors
or the Executive shall each provide the other with at least forty-five (45)
days' advance written notice of any decision on their respective parts not to
extend the Agreement on the anniversary date. The term of employment under this

<PAGE>   30

Agreement, as in effect from time to time, shall be referred to as the
"Employment Term."

        3. Position and Duties. Subject to Section 5(iv)(B), the Executive shall
serve in his Corporate Position, reporting to the President, and shall have
supervision and control over, and responsibility for, the finance and
administration of the Bank and shall have such other powers and duties as may
from time to time be prescribed by the President, provided that such duties are
consistent with his present duties and with the Executive's position as an
executive officer of the Bank. The Executive shall devote substantially all his
working time and efforts to the business and affairs of the Bank.

        4. Compensation. As compensation for the services to be provided
pursuant to this Agreement, Executive shall receive from Bank the compensation
and other benefits set forth below:

              (i) Base Salary. During the Employment Term the Executive shall
receive a base salary ("Base Salary") in such amount as may from time to time be
approved by the Board. The Base Salary shall at no time be less than the annual
base salary payable to the Executive on the date of this Agreement. Any increase
in Base Salary or other compensation granted by the Board shall in no way limit
or reduce any other obligation of the Bank under this Agreement and, once
established at an increased specified rate, Executive's Base Salary under this
Agreement shall not thereafter be reduced. Executive's Base Salary and other
compensation shall be paid in accordance with the Bank's regular payroll
practices, as from time to time in effect.

              (ii) Bonus Payments. In addition to Base Salary, Executive shall
be entitled during the Employment Term to receive such bonus payments as the
Board may determine in accordance with the Bank's Management Incentive Plan (the
"Incentive Plan") in effect on the date of this Agreement or as the same may be
amended or modified from time to time for the Bank's executive officers.

              (iii) Other Benefits. During the Employment Term the Bank shall
provide to Executive all other benefits of employment generally made available
to the Bank's executive officers as in effect with other plans or arrangements
providing Executive with at least equivalent benefits thereunder. Executive
shall be entitled to participate in or receive benefits under any group health
and life insurance plan, pension plan, stock purchase, incentive savings, stock
option, restricted stock, stock appreciation rights and any other similar plans
or arrangements presently or hereafter made available by the Bank to its
executive officers (collectively the "Benefit Plans"), subject to and on a basis
consistent with the terms, conditions and overall administration of such Benefit
Plans. Executive shall be

                                      -2-

<PAGE>   31

entitled to vacations and perquisites in accordance with the Bank's policies as
in effect from time to time for its executive officers.

        5. Termination. This Agreement may be terminated, subject to payment of
the compensation and other benefits described below, upon the occurrence of any
of the events described below. In case of such termination, the date on which
Executive ceases to be employed under this Agreement, after giving effect to any
prior notice requirement set forth below, is referred to as the "Termination
Date."

              (i) Death; Disability; Retirement. This Agreement shall terminate
upon the death, disability or retirement of Executive. As used in this
Agreement, the term "disability" shall mean Executive's inability, as a result
of physical or mental incapacity, to substantially perform his duties with the
Bank for a period of 180 consecutive days. Any question as to the existence of
Executive's disability upon which the Executive and the Bank cannot agree shall
be determined by a qualified independent physician mutually agreeable to
Executive and the Bank or, if the parties are unable to agree upon a physician
within ten (10) days after notice from either to the other suggesting a
physician, by a physician designated by the then president of the medical
society for the county in which Executive maintains his principal residence,
upon the request of either party. The costs of any such medical examination
shall be borne by the Bank. If Executive is terminated due to disability he
shall be paid 100% of his Base Salary at the rate in effect at the time notice
of termination is given for the remainder of the Employment Term, payable in
substantially equal monthly installments less, in each case, any disability
payments otherwise payable under plans provided by the Bank for disability or
any governmental social security or workers compensation program, and actually
paid to Executive in substantially equal monthly installments.

              As used in this Agreement, the term "retirement" shall mean
Executive's retirement in accordance with and pursuant to any retirement plan of
the Bank generally applicable to its executive officers or in accordance with
any retirement arrangement established with Executive's consent with respect to
Executive.

              If termination occurs for such reason, no additional compensation
shall be payable to the Executive under this Agreement except as specifically
provided in this Agreement. Notwithstanding anything to the contrary contained
in this Agreement, the Executive shall receive all compensation and other
benefits to which he was entitled under Section 4 through the Termination Date
and, in addition, shall receive all other benefits available to him under the
Bank's Benefit Plans as in

                                      -3-

<PAGE>   32

effect on the date of death, disability or retirement.

              (ii) Cause. The Bank may terminate the Executive's employment
under this Agreement for Cause at any time, and thereafter the Bank's
obligations under this Agreement shall cease and terminate. Notwithstanding
anything to the contrary contained in this Agreement, Executive shall receive
all compensation and other benefits to which he was entitled under Section 4
through the Termination Date and, in addition, shall receive all benefits
available to him under the Bank's Benefit Plans as in effect on the Termination
Date. For purposes of this Agreement, "Cause" shall mean (A) the willful and
continued failure by Executive to substantially perform his duties with the Bank
(other than failure resulting from the Executive's incapacity due to physical or
mental illness) after a written demand for substantial performance is delivered
to Executive by the Board, which demand specifically identifies the manner in
which the Board believes Executive has not substantially performed his duties,
(B) any willful act of misconduct by Executive which is materially injurious to
the Bank, monetarily or otherwise, (C) a criminal conviction of Executive for
any act involving dishonesty, breach of trust or a violation of the banking or
savings and loan laws of the State of Wisconsin or the United States, (D) a
criminal conviction of the Executive for the commission of any felony, (E) a
willful breach of fiduciary duty involving personal profit, (F) a willful
violation of any law, rule or regulation or final cease and desist order where
such violations materially, adversely, affect the Bank, (G) incompetence,
personal dishonesty or material breach of any provision of this Agreement which
would have a material adverse impact on the Bank. For purposes of this
Subsection 5(ii), no act, or failure to act, on the Executive's part shall be
deemed "willful" unless done, or omitted to be done, by the Executive not in
good faith and without reasonable belief that the action or omission was in the
best interest of the Bank.

              (iii) Voluntary Termination by Executive. Executive may
voluntarily terminate his employment under this Agreement at any time by giving
at least forty-five (45) days prior written notice to the Bank. In such event,
Executive shall receive all compensation and other benefits to which he was
entitled under Section 4 through the Termination Date and, in addition, shall
receive all other benefits available to him under the Bank's Benefit Plans as in
effect on the Termination Date.

              (iv) Termination by Executive After Change in Control. For
purposes of this Agreement, a "change in control" shall mean a change in control
with respect to the Bank or its parent holding company of a nature that would be
required to be reported in response to Item 6(e) of Schedule 14A of Regulation
14A promulgated under the Securities Exchange Act of 1934, as amended ("Exchange
Act") or any successor thereto; provided that, without

                                      -4-

<PAGE>   33

limitation, such a change in control shall be deemed to have occurred if (i) any
"person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities representing 25% or more of
the combined voting power of the Bank or holding company's then outstanding
securities; or (ii) during any period of two consecutive years, individuals who
at the beginning of such period constitute the Board of Directors of the Bank or
company 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. The Executive
may terminate his employment under this Agreement by giving at least ninety (90)
days prior written notice to the Bank at anytime (1) within eighteen (18) months
of the effective date of a "change in control", or (2) after the occurrence, at
any time subsequent to a "change in control," of any of the following events,
without Executive's express written consent:

                   (A) Executive is assigned to any positions, duties or
responsibilities that are less significant than his positions, duties and
responsibilities as of the time immediately prior to any change in control;

                   (B) Executive is removed from or the Board fails to re-elect
Executive to any of his Corporate Position, except (1) in connection with
termination of Executive's employment for cause, disability or retirement, or
(2) in connection with any change in control after which the Bank is not the
continuing or surviving corporation, if the successor organization has executed
an agreement as required by Section 8(i)(A) and the removal or failure to
re-elect is limited to his Corporate Position with the Bank;

                   (C) Executive's Base Salary is materially reduced or the
Executive experiences in any year a material reduction of the ratio of his bonus
payment to his Base Salary which is greater than the average reduction in the
ratio of bonus payments to base salaries in such year experienced by all other
executive officers of the Bank or any other material failure by the Bank to
comply with Section 4;

                   (D) Executive is transferred to a location not within a 25
mile radius of the City of LaCrosse, Wisconsin; or

                   (E) The Bank fails to obtain an agreement from any successor
organization as required by Section 8(i)(A).

                                      -5-

<PAGE>   34

              (v)  Suspension or Termination Required by the OTS

                   (A) If Executive is suspended and/or temporarily prohibited
from participating in the conduct of the Bank's affairs by a notice served under
section 8(e)(3), or section 8(g)(1) of the Federal Deposit Insurance Act (12
U.S.C. ss. 1818(e)(3) and (g)(1), the Bank's obligations under the Agreement
shall be suspended as of the date of service of the notice unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, Bank shall
(1) pay Executive all of the compensation withheld while its obligations under
this Agreement were suspended and (2) reinstate any of its obligations which
were suspended.

                   (B) If Executive is removed and/or permanently prohibited
from participating in the conduct of the Bank's affairs by an order issued under
section 8(e)(4) or section 8(g)(1) of the Federal Deposit Insurance Act (12
U.S.C. ss. 1818(e)(4) or (g)(1) obligations of the Bank under the Agreement
shall terminate as of the effective date of the order, but vested rights of the
Executive to compensation and to any benefits under the Bank's Pension Plan
shall not be affected.

                   (C) If the Bank is in default as defined in section 3(x)(1)
of the Federal Deposit Insurance Act, (12 U.S.C. 1813 (x)(1))all obligations
under the Agreement shall terminate as of the date of default, except that this
paragraph shall not affect any vested rights of the Executive under any
qualified retirement plan nor, in the event the Executive terminates prior to
the date of such default, the Executive's vested rights to continue to receive
severance payments and benefits pursuant to section 5(vi) of this Agreement.

                   (D) All obligations under the Agreement shall be terminated,
except to the extent determined that continuation of the contract is necessary
for the continued operation of the Bank, (i) by the OTS, at the time the FDIC or
Resolution Trust Corporation ("RTC") enters into an agreement to provide
assistance to or on behalf of the Bank under the authority contained in section
13(c) of the Federal Deposit Insurance Act; or (ii) by the OTS at the time it
approves a supervisory merger to resolve problems related to operation of the
Bank or when the Bank is determined by the OTS to be in an unsafe or unsound
condition. Any rights of the parties that have already vested, however, shall
not be affected by such action, and the Executive shall receive the compensation
and benefits set forth in section 5(vi) of this Agreement.

                   (E) In the event that 12 C.F.R. ss. 563.39, or any successor
regulation, is repealed, this section 5(v) shall cease to be effective on the
effective date of such repeal. In the event that 12 C.F.R. ss. 563.39, or any
successor regulation, is

                                      -6-

<PAGE>   35

amended or modified, this Agreement shall be revised to reflect the amended or
modified provisions if: (1) the amended or modified provision is required to be
included in this Agreement; or (2) if not so required, the Executive requests
that the Agreement be so revised.

              (vi) Termination by the Bank Other Than Due to Death, Disability,
Retirement or For Cause; Termination of Executive. If this Agreement is
terminated by the Bank for any reason other than death, disability, retirement
or for cause as set forth in Section 5(i) or (ii), or is terminated by the
Executive pursuant to Section 5(iv), then, following the Date of Termination:

                   (A) In lieu of any further salary payments to the Executive
for a period subsequent to the Termination Date, the Executive shall receive
severance pay in the form of payments continuing for the remaining unexpired
portion of the Employment Term, fully restored as of the Termination Date, at
the times provided in Section 4(i) and 4 (ii) ("Severance Payments") and based
on his highest rate of Base Salary within the 3 years preceding his Termination
Date and his total cash bonus paid in his most recently completed calendar year
of employment. In the event of a termination as a result of a change in control,
the Executive may elect to receive the Severance Payments calculated above in
one lump-sum, subject to any applicable limitations set forth in Section 6
below; provided that the amount of Severance Payment in connection with a change
in control shall be at least equal to the particular Executive's annual
compensation as of the Termination Date.

                   (B) In addition to the retirement benefits to which the
Executive is entitled under the Bank's Group Pension Plan, 401(k) Plan, and
ESOP, as amended from time to time (the "Retirement Plans"), the Executive shall
receive additional severance retirement benefits payable under this Agreement,
which benefits (except as provided below) shall be determined in accordance
with, and payable in the form and at the times provided in, the respective
Retirement Plans. Such benefits shall be determined as if the Executive were
fully vested under each Retirement Plan and had accumulated (after any
termination under this Agreement) the additional years of credited service
and/or allocations and Employer contributions under each of said Plans that he
would have received had he continued in the employment of the Bank for the
entire Employment Term at the levels of Base Salary and cash bonus used to
calculate the Severance Payments pursuant to subsection 5(vi)(A) above.

                   (C) In addition to all other amounts payable under this
section 5, Executive shall be entitled to coverage under any group health, life,
dental, or other group insurance plans (as well as under any individual life
coverages provided by the Bank on Executive's behalf) for the remainder of the
Employment Term

                                      -7-

<PAGE>   36

upon his continued payment of any required employee contribution at the
rate in effect as of his Termination Date and to receipt of all benefits
otherwise payable to Executive under (i) any tax qualified Bank plan or
agreement relating to pension or retirement benefits, and (ii) any other Bank
plan or agreement, regardless of tax status, established to provide deferred
compensation, retirement, or other benefits for the Executive.

                   (D) If Executive is under fifty-five (55) years of age on the
Termination Date, Executive shall take reasonable steps to obtain employment and
thereby mitigate the amount of compensation and benefits due under Section
5(vi); provided, however, that Executive shall not be required to accept a
position other than one within a 25 mile radius of the City of LaCrosse,
Wisconsin. If the Executive is fifty-five (55) years of age or older on the
Termination Date or if Executive determines upon the advice of a qualified
independent physician that he is physically or medically unable to substantially
perform duties with another employer comparable to those performed by him with
the Bank, the Executive shall have no obligation to seek other employment.
Notwithstanding the foregoing, and regardless of age, during any portion of the
Employment term remaining after the Termination Date, if the Executive becomes
employed on a full-time basis by another employer, then to the extent the
Executive shall receive compensation, benefits or service credit from such other
employer, the aggregate amount of all compensation to be paid and benefits and
service credit to be provided by the Bank under this Agreement shall be
correspondingly reduced.

                   (E) The requirement for mitigation, as set forth in Section 5
(vi)(D) above, shall not apply with respect to any termination under Section
5(iv) subsequent to a change in control.

         6.   Limitations on Termination Compensation.

              (i) In the event that the severance benefits payable to the
Executive under Subsection 5(vi) ("Severance Benefits"), or any other payments
or benefits received or to be received by the Executive from the Bank (whether
payable pursuant to the terms of this Agreement, any other plan, agreement or
arrangement with the Bank or any corporation ("Affiliate") affiliated with the
Bank within the meaning of Section 1504 of the Internal Revenue Code of 1954, as
amended (the "Code"), in the opinion of tax counsel selected by the Bank's
independent auditors and acceptable to the Executive, constitute "parachute
payments" within the meaning of Section 280G(b)(2) of the Code, and the present
value of such "parachute payments" equals or exceeds three (3) times the average
of the annual compensation payable to the Executive by the Bank (or an
Affiliate) and includible in the Executive's gross income for federal income tax
purposes for the five (5)

                                      -8-

<PAGE>   37

calendar years preceding the year in which a change in ownership or control of
the Bank occurred ("Base Amount"), such severance benefits shall be reduced to
an amount the present value of which (when combined with the present value of
any other payments or benefits otherwise received or to be received by the
Executive from the Bank (or an Affiliate) that are deemed "parachute payments")
is equal to 2.99 times the Base Amount, notwithstanding any other provision to
the contrary in this Agreement. The Severance Benefits shall not be reduced if
(A) the Executive shall have effectively waived his receipt or enjoyment of any
such payment or benefit which triggered the applicability of this Section 6, or
(B) in the opinion of such tax counsel, the Severance Benefits (in its full
amount or as partially reduced, as the case may be) plus all other payments or
benefits which constitute "parachute payments" within the meaning of Section
280G(b)(2) of the code are reasonable compensation for services actually
rendered, within the meaning of Section 280G(b)(4) of the code, and such
payments are deductible by the Bank. The Base Amount shall include every type
and form of compensation includible in the Executive's gross income in respect
of his employment by the Bank (or an Affiliate), except to the extent otherwise
provided in temporary or final regulations promulgated under Section 280G(b) of
the Code. For purposes of this Section 6, a "change in ownership or control"
shall have the meaning set forth in Section 280G(b) of the code and any
temporary or final regulations promulgated thereunder. The present value of any
non-cash benefit or any deferred cash payment shall be determined by the Bank's
independent auditors in accordance with the principles of Sections 280G(b)(3)
and (4) of the Code.

              (ii) Executive shall have the right to request that the Bank
obtain a ruling from the Internal Revenue Service ("Service") as to whether any
or all payments or benefits determined by such tax counsel are, in the view of
the Service, "parachute payments" under Section 280G. If a ruling is sought
pursuant to the Executive's request, no severance benefits payable under this
Agreement shall be made to the Executive until after fifteen (15) days from the
date of such ruling. For purposes of this Subsection 6(ii), the Executive and
the Bank agree to be bound by the Service's ruling as to whether payments
constitute "parachute payments" under Section 280G. If the service declines, for
any reason, to provide the ruling requested, the tax counsel's opinion provided
under Subsection 6(i) with respect to what payments or benefits constitute
"parachute payments" shall control, and the period during which the Severance
Benefits may be deferred shall be extended to a date fifteen (15) days from the
date of the Service's notice indicating that no ruling would be forthcoming.

              (iii) In the event that Section 280G, or any successor statute, is
repealed, this Section 6 shall cease to be effective

                                      -9-

<PAGE>   38

on the effective date of such repeal. The parties to this Agreement recognize
that final regulations under Section 280G of the Code may affect the amounts
that may be paid under this Agreement and agree that, upon issuance of such
final regulations this Agreement may be modified as in good faith deemed
necessary in light of the provisions of such regulations to achieve the purposes
of this Agreement, and that consent to such modifications shall not be
unreasonably withheld.

         7.   Noncompetition After Voluntary Termination And Duty of
Confidentiality.

              (a) Noncompetition. Executive acknowledges that the development of
personal contacts and relationships is an essential element of the Bank's
business, that the Bank has invested considerable time and money in his
development of such contacts and relationships, that the Bank could suffer
irreparable harm if he were to leave employment and solicit the business of
Bank's customers, and that it is reasonable to protect the Bank against
competitive activities by Executive. Executive covenants and agrees, in
recognition of the foregoing and in consideration of the mutual promises
contained herein, that in the event of a voluntary termination of employment by
Executive pursuant to Section 5(iii), or upon expiration of this Agreement as a
result of Executive's election not to continue automatic annual renewals,
Executive shall not accept employment in La Crosse, Dane or St. Croix counties
with any Significant Competitor of the Bank for a period of eighteen (18) months
following such termination. For purposes of this Agreement, the term Significant
Competitor means any financial institution including, but not limited to, any
commercial bank, savings bank, savings and loan association, credit union, or
mortgage banking corporation which, at the time of termination of Executive's
employment or during the period of this covenant not to compete, (i) maintains a
home, branch or other office in any of said counties, or (ii) has originated
within any of said counties $10,000,000 or more in residential mortgage loans
during any consecutive twelve (12) month period within the thirty-six (36)
months prior to Executive's termination and inclusive of the period covered by
this covenant.

              Executive agrees that the non-competition provisions set forth
herein are necessary for the protection of the Bank and are reasonably limited
as to (i) the scope of activities affected, (ii) their duration and geographic
scope, and (iii) their effect on Executive and the public. In the event
Executive violates the non-competition provisions set forth herein, Bank shall
be entitled, in addition to its other legal remedies, to enjoin the employment
of Executive with any Significant Competitor for the period set forth herein. If
Executive violates this covenant and the Bank brings legal action for injunctive
or other relief, the Bank shall not, as a result of the time involved in
obtaining

                                      -10-

<PAGE>   39

such relief, be deprived of the benefit of the full period of the restrictive
covenant. Accordingly, the covenant shall be deemed to have the duration
specified herein, computed from the date such relief is granted, but reduced by
any period between commencement of the period and the date of the first
violation. In addition to such other relief as may be awarded, if the Bank is
the prevailing party it shall be entitled to reimbursement for all reasonable
costs, including attorneys' fees, incurred in enforcing its rights hereunder.

              (b) Duty of Confidentiality. Executive acknowledges that he will,
as the result of services performed on behalf of the Bank, obtain or otherwise
become aware of confidential and/or proprietary information regarding the Bank's
affairs, including, but not limited to, information relative to (i) customers,
customer accounts and customer lists, (ii) marketing, (iii) customer development
strategies, (iv) financial and economic plans and projections, and (v) other
similar information. Executive agrees that following termination of his
employment for any reason, he will treat all such matters as confidential and
will refrain both from divulging such information in any manner and from the use
of such information for his benefit or for the benefit of any employer
(regardless of whether such employer would constitute a Significant Competitor
under this Agreement) or third-party.

         8.   General Provisions.

              (i)  Successors; Binding Agreement.

                   (A) The Bank will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Bank ("successor
organization") to expressly assume and agree to perform this Agreement in the
same manner and to the same extent that the Bank would be required to perform it
if no such succession had taken place. As used in this Agreement, "Bank" shall
mean the Bank as hereinbefore defined and any successor to its business and/or
assets as aforesaid which executes and delivers the agreement provided for in
this Section 8 or which otherwise becomes bound by the terms and provisions of
this Agreement by operation of this Agreement or law. Failure of the Bank to
obtain such agreement prior to the effectiveness of any such succession shall be
a breach of this Agreement and shall entitle the Executive as his exclusive
remedy to compensation from the Bank in the same amount and on the same terms as
he would be entitled to under this agreement if he terminated his employment
under Section 5(iv). For purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Termination
Date.

                   (B) No right or interest to or in any payments or

                                      -11-

<PAGE>   40

benefits under this Agreement shall be assignable or transferrable in any
respect by the Executive, nor shall any such payment, right or interest be
subject to seizure, attachment or creditor's process for payment of any debts,
judgments, or obligations of the Executive.

                   (C) This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the Executive and his heirs, beneficiaries and
personal representatives and the Bank and any successor organization.

              (ii) Notice. For the purpose of this Agreement, notices and all
other communications provided for in the Agreement shall be in writing and shall
be deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed as
follows:

              If to the Bank:

              605 State Street
              LaCrosse, WI 54601
              Attn: Secretary

or if to Executive at the address set forth below the Executive's signature line
of this Agreement, or to such other address as either party may have furnished
to the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

              (iii) Expenses. If any legal proceeding is necessary to enforce or
interpret this Agreement, or to recover damages for breach of it, the prevailing
party, shall be entitled to recover from the other party reasonable attorneys'
fees and necessary costs and disbursements incurred in such litigation, in
addition to any other relief to which such prevailing party may be entitled.

              Notwithstanding the foregoing, in the event of a legal proceeding
to enforce or interpret the terms of this Agreement following a change in
control, Executive shall be entitled to recover from Bank, regardless of the
outcome of said action, necessary costs and disbursements incurred together with
actual attorney's fees up to the greater of (A) $25,000, or (B) thirty percent
(30%) of the amount in dispute between the parties [which amount, for purposes
of this Agreement, shall be deemed to be the difference between the highest
written settlement offer from the Bank and the lowest written settlement offer
(exclusive of any claim for consequential, punitive, or other forms or amounts
of damages not based on specific contract terms) from Executive]. Recovery by
Executive of attorneys fees and costs as provided herein following a change in
control shall be in addition to any other relief to which Executive may be
entitled.

                                      -12-

<PAGE>   41

              (iv) Withholding. The Bank shall be entitled to withhold from
amounts to be paid to the Executive under this Agreement any federal, state or
local withholding or other taxes of charges which it is from time to time
required to withhold. the Bank shall be entitled to rely on an opinion of
counsel if any question as to the amount or requirement of any such withholding
shall arise.

              (v) Miscellaneous. No provision of this Agreement may be amended,
waived or discharged unless such amendment, waiver or discharge is agreed to in
writing and signed by the Executive and such officer as may be specifically
designated by the board. No waiver by either party hereto at any time of any
breach by the 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. No agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter hereof have been made by
either party which are not expressly set forth in this Agreement. The validity,
interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Wisconsin.

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

              (vii) Counterparts. This Agreement may be executed in several
counterparts, each of which together will constitute one and the same
instrument.

              (viii) Headings. Headings contained in this Agreement are for
reference only and shall not affect the meaning or interpretation of any
provision of this Agreement.

              (ix) Effective Date. The effective date of this Agreement shall be
the date indicated in the first paragraph of this Agreement, notwithstanding the
actual date of execution by any party.

         IN WITNESS WHEREOF, the undersigned have duly executed this Agreement
as of the date first above written.

                                          Executive:  Jack C. Rusch

                                          ------------------------------------

                                      -13-

<PAGE>   42

                                          ------------------------------------
                                          (Address)

                                          First Federal Savings Bank,
                                                           LaCrosse-Madison
                                          (CORPORATE SEAL)

                                          By:
                                             --------------------------------

                                          By:
                                             --------------------------------

                                      -14-

<PAGE>   43
                              EMPLOYMENT AGREEMENT
                       (As Amended Effective July 1, 1998)

        THIS EMPLOYMENT AGREEMENT is made effective as of this 1st day of July,
1998, by and between First Federal Savings Bank, LaCrosse-Madison, a
federally-chartered savings bank (the "Bank"), and Joseph M. Konradt (the
"Executive").

        WHEREAS, Executive has been employed by the Bank for a number of years,
and currently serves as its Senior Vice President and Retail Banking Division
Manager ("Corporate Position"); and

        WHEREAS, Executive possesses an intimate knowledge of the business and
affairs of the Bank, including its policies, markets and financial and human
resources; and

        WHEREAS, the Board of Directors of the Bank (the "Board"), recognizes
that Executive's contribution to the growth and success of the Bank has been
substantial and desires to assure the Bank of Executive's continued employment
in an executive capacity and to compensate him therefore; and

        WHEREAS, Executive is desirous of committing himself to serve the Bank
on the terms provided in this Agreement.

        NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein set forth, the Bank and Executive agree as follows:

        1. Employment. Bank shall continue to employ Executive and Executive
shall continue to serve Bank under the terms and conditions of this Agreement
(which terms and conditions are intended to amend and supersede the agreement of
July 1, 1994 as previously in effect between the parties), for the period stated
in paragraph 2 below.

        2. Term of Employment. The period of Executive's employment under this
Agreement shall commence on the date set forth above ("Commencement Date") and
shall expire on the third annual anniversary of said Commencement Date, unless
sooner terminated as provided herein. Effective as of any annual anniversary of
the Commencement Date during the term of this Agreement, the term of employment
hereunder may be extended by the action of the Bank's Board of Directors to add
one additional year to the then remaining term of employment hereunder so that
said term is annually restored to a full three-year term. The Board of Directors
or the Executive shall each provide the other with at least forty-five (45)
days' advance written notice of any decision on their respective parts not to
extend the Agreement on the anniversary date. The term of employment under this
Agreement, as in effect from time to time, shall be referred to

<PAGE>   44

as the "Employment Term."

        3. Position and Duties. Subject to Section 5(iv)(B), Executive shall
serve in his Corporate Position, reporting to the Board, and shall have
supervision and control over, and responsibility for, the operation of the Bank
and shall have such other powers and duties as may from time to time be
prescribed by the Board, provided that such duties are consistent with his
present duties and position as an executive officer of the Bank. Executive shall
devote substantially all his working time and efforts to the business and
affairs of the Bank.

        4. Compensation. As compensation for the services to be provided
pursuant to this Agreement, Executive shall receive from Bank the compensation
and other benefits set forth below:

              (i) Base Salary. During the Employment Term the Executive shall
receive a base salary ("Base Salary") in such amount as may from time to time be
approved by the Board. The Base Salary shall at no time be less than the annual
base salary payable to the Executive on the date of this Agreement. Any increase
in Base Salary or other compensation granted by the Board shall in no way limit
or reduce any other obligation of the Bank under this Agreement and, once
established at an increased specified rate, Executive's Base Salary under this
Agreement shall not thereafter be reduced. Executive's Base Salary and other
compensation shall be paid in accordance with the Bank's regular payroll
practices, as from time to time in effect.

              (ii) Bonus Payments. In addition to Base Salary, Executive shall
be entitled during the Employment Term to receive such bonus payments as the
Board may determine in accordance with the Bank's Management Incentive Plan (the
"Incentive Plan") in effect on the date of this Agreement or as the same may be
amended or modified from time to time for the Bank's executive officers.

              (iii) Other Benefits. During the Employment Term the Bank shall
provide to Executive all other benefits of employment generally made available
to the Bank's executive officers as in effect with other plans or arrangements
providing Executive with at least equivalent benefits there-under. Executive
shall be entitled to participate in or receive benefits under any group health
and life insurance plan, pension plan, stock purchase, incentive savings, stock
option, restricted stock, stock appreciation rights and any other similar plans
or arrangements presently or hereafter made available by the Bank to its
executive officers (collectively the "Benefit Plans"), subject to and on a basis
consistent with the terms, conditions and overall administration of such Benefit
Plans. Executive shall be entitled to vacations and perquisites in accordance
with the Bank's policies as in effect from time to time for its executive

                                      -2-

<PAGE>   45

officers.

        5. Termination. This Agreement may be terminated, subject to payment of
the compensation and other benefits described below, upon the occurrence of any
of the events described below. In case of such termination, the date on which
Executive ceases to be employed under this Agreement, after giving effect to any
prior notice requirement set forth below, is referred to as the "Termination
Date."

              (i) Death; Disability; Retirement. This Agreement shall terminate
upon the death, disability or retirement of Executive. As used in this
Agreement, the term "disability" shall mean Executive's inability, as a result
of physical or mental incapacity, to substantially perform his duties with the
Bank for a period of 180 consecutive days. Any question as to the existence of
Executive's disability upon which the Executive and the Bank cannot agree shall
be determined by a qualified independent physician mutually agreeable to
Executive and the Bank or, if the parties are unable to agree upon a physician
within ten (10) days after notice from either to the other suggesting a
physician, by a physician designated by the then president of the medical
society for the county in which Executive maintains his principal residence,
upon the request of either party. The costs of any such medical examination
shall be borne by the Bank. If Executive is terminated due to disability he
shall be paid 100% of his Base Salary at the rate in effect at the time notice
of termination is given for the remainder of the Employment Term, payable in
substantially equal monthly installments less, in each case, any disability
payments otherwise payable under plans provided by the Bank for disability or
any governmental social security or workers compensation program, and actually
paid to Executive in substantially equal monthly installments.

              As used in this Agreement, the term "retirement" shall mean
Executive's retirement in accordance with and pursuant to any retirement plan of
the Bank generally applicable to its executive officers or in accordance with
any retirement arrangement established with Executive's consent with respect to
Executive.

              If termination occurs for such reason, no additional compensation
shall be payable to the Executive under this Agreement except as specifically
provided in this Agreement. Notwithstanding anything to the contrary contained
in this Agreement, the Executive shall receive all compensation and other
benefits to which he was entitled under Section 4 through the Termination Date
and, in addition, shall receive all other benefits available to him under the
Bank's Benefit Plans as in effect on the date of death, disability or
retirement.

                                      -3-

<PAGE>   46

              (ii) Cause. The Bank may terminate the Executive's employment
under this Agreement for Cause at any time, and thereafter the Bank's
obligations under this Agreement shall cease and terminate. Notwithstanding
anything to the contrary contained in this Agreement, Executive shall receive
all compensation and other benefits to which he was entitled under Section 4
through the Termination Date and, in addition, shall receive all benefits
available to him under the Bank's Benefit Plans as in effect on the Termination
Date. For purposes of this Agreement, "Cause" shall mean (A) the willful and
continued failure by Executive to substantially perform his duties with the Bank
(other than failure resulting from the Executive's incapacity due to physical or
mental illness) after a written demand for substantial performance is delivered
to Executive by the Board, which demand specifically identifies the manner in
which the Board believes Executive has not substantially performed his duties,
(B) any willful act of misconduct by Executive which is materially injurious to
the Bank, monetarily or otherwise, (C) a criminal conviction of Executive for
any act involving dishonesty, breach of trust or a violation of the banking or
savings and loan laws of the State of Wisconsin or the United States, (D) a
criminal conviction of the Executive for the commission of any felony, (E) a
willful breach of fiduciary duty involving personal profit, (F) a willful
violation of any law, rule or regulation or final cease and desist order where
such violations materially, adversely, affect the Bank, (G) incompetence,
personal dishonesty or material breach of any provision of this Agreement which
would have a material adverse impact on the Bank. For purposes of this
Subsection 5(ii), no act, or failure to act, on the Executive's part shall be
deemed "willful" unless done, or omitted to be done, by the Executive not in
good faith and without reasonable belief that the action or omission was in the
best interest of the Bank.

              (iii) Voluntary Termination by Executive. Executive may
voluntarily terminate his employment under this Agreement at any time by giving
at least ninety (90) days prior written notice to the Bank. In such event,
Executive shall receive all compensation and other benefits to which he was
entitled under Section 4 through the Termination Date and, in addition, shall
receive all other benefits available to him under the Bank's Benefit Plans as in
effect on the Termination Date.

              (iv) Termination by Executive After Change in Control. For
purposes of this Agreement, a "change in control" shall mean a change in control
with respect to the Bank or its parent holding company of a nature that would be
required to be reported in response to Item 6(e) of Schedule 14A of Regulation
14A promulgated under the Securities Exchange Act of 1934, as amended ("Exchange
Act") or any successor thereto; provided that, without limitation, such a change
in control shall be deemed to have occurred if (i) any "person" (as such term is
used in Sections

                                      -4-

<PAGE>   47

13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities representing 25% or more of the combined voting power of the Bank or
holding company's then outstanding securities; or (ii) during any period of two
consecutive years, individuals who at the beginning of such period constitute
the Board of Directors of the Bank or company 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. The Executive may terminate his employment under this
Agreement by giving at least ninety (90) days prior written notice to the Bank
at anytime (1) within eighteen (18) months of the effective date of a "change in
control", or (2) after the occurrence, at any time subsequent to a "change in
control," of any of the following events, without Executive's express written
consent:

                   (A) Executive is assigned to any positions, duties or
responsibilities that are materially less significant than his positions, duties
and responsibilities as of the time immediately prior to any change in control;

                   (B) Executive is removed from or the Board fails to re-elect
Executive to any of his Corporate Position, except (1) in connection with
termination of Executive's employment for cause, disability or retirement, or
(2) in connection with any change in control after which the Bank is not the
continuing or surviving corporation, if the successor organization has executed
an agreement as required by Section 8(i)(A) and the removal or failure to
re-elect is limited to his Corporate Position with the Bank;

                   (C) Executive's Base Salary is materially reduced or the
Executive experiences in any year a material reduction of the ratio of his bonus
payment to his Base Salary which is greater than the average reduction in the
ratio of bonus payments to base salaries in such year experienced by all other
executive officers of the Bank or any other material failure by the Bank to
comply with Section 4;

                   (D) Executive is transferred to a location not within a 25
mile radius of the City of LaCrosse, Wisconsin; or

                   (E) The Bank fails to obtain an agreement from any successor
organization as required by Section 8(i)(A).

              (v) Suspension or Termination Required by the OTS

                   (A) If Executive is suspended and/or temporarily prohibited
from participating in the conduct of the Bank's

                                      -5-

<PAGE>   48

affairs by a notice served under section 8(e)(3), or section 8(g)(1) of the
Federal Deposit Insurance Act (12 U.S.C. ss. 1818(e)(3) and (g)(1), the Bank's
obligations under the Agreement shall be suspended as of the date of service of
the notice unless stayed by appropriate proceedings. If the charges in the
notice are dismissed, Bank shall (1) pay Executive all of the compensation
withheld while its obligations under this Agreement were suspended and (2)
reinstate any of its obligations which were suspended.

                   (B) If Executive is removed and/or permanently prohibited
from participating in the conduct of the Bank's affairs by an order issued under
section 8(e)(4) or section 8(g)(1) of the Federal Deposit Insurance Act (12
U.S.C. ss. 1818(e)(4) or (g)(1) obligations of the Bank under the Agreement
shall terminate as of the effective date of the order, but vested rights of the
Executive to compensation and to any benefits under the Bank's Pension Plan
shall not be affected.

                   (C) If the Bank is in default as defined in section 3(x)(1)
of the Federal Deposit Insurance Act, (12 U.S.C. 1813 (x)(1)) all obligations
under the Agreement shall terminate as of the date of default, except that this
paragraph shall not affect vested rights of the Executive under any qualified
retirement plan nor, in the event the Executive terminates prior to the date of
such default, the Executive's vested rights to continue to receive severance
payments and benefits pursuant to Section 5(vi) of this Agreement.

                   (D) All obligations under the Agreement shall be terminated,
except to the extent determined that continuation of the contract is necessary
for the continued operation of the Bank, (i) by the OTS, at the time the FDIC or
Resolution Trust Corporation ("RTC") enters into an agreement to provide
assistance to or on behalf of the Bank under the authority contained in section
13(c) of the Federal Deposit Insurance Act; or (ii) by the OTS at the time it
approves a supervisory merger to resolve problems related to operation of the
Bank or when the Bank is determined by the OTS to be in an unsafe or unsound
condition. Any rights of the parties that have already vested, however, shall
not be affected by such action, and the Executive shall receive the compensation
and benefits set forth in section 5(vi) of this Agreement.

                   (E) In the event that 12 C.F.R. ss. 563.39, or any successor
regulation, is repealed, this section 5(v) shall cease to be effective on the
effective date of such repeal. In the event that 12 C.F.R. ss. 563.39, or any
successor regulation, is amended or modified, this Agreement shall be revised to
reflect the amended or modified provisions if: (1) the amended or modified
provision is required to be included in this Agreement; or (2) if not so
required, the Executive requests that the

                                      -6-

<PAGE>   49

Agreement be so revised.

              (vi) Termination by the Bank Other Than Due to Death, Disability,
Retirement or For Cause; Termination of Executive. If this Agreement is
terminated by the Bank for any reason other than death, disability, retirement
or for cause as set forth in Section 5(i) or (ii), or is terminated by the
Executive pursuant to Section 5(iv), then, following the Date of Termination:

                   (A) In lieu of any further salary payments to the Executive
for a period subsequent to the Termination Date, the Executive shall receive
severance pay in the form of payments continuing for the remaining unexpired
portion of the Employment Term, fully restored as of the Termination Date, at
the times provided in Section 4(i) and 4 (ii) ("Severance Payments") and based
on his highest rate of Base Salary within the 3 years preceding his Termination
Date and his total cash bonus paid in his most recently completed calendar year
of employment. In the event of a termination as a result of a change in control,
the Executive may elect to receive the Severance Payments calculated above in
one lump sum, subject to any applicable limitations set forth in Section 6
below; provided that the amount of Severance Payment in connection with a change
in control shall be at least equal to the particular Executive's annual
compensation as of the Termination Date.

                   (B) In addition to the retirement benefits to which the
Executive is entitled under the Bank's Group Pension Plan, 401(k) Plan, and
ESOP, as amended from time to time (the "Retirement Plans"), the Executive shall
receive as additional severance retirement benefits payable under this
Agreement, which benefits (except as provided below) shall be determined in
accordance with, and payable in the form and at the times provided in, the
respective Retirement Plans. Such benefits shall be determined as if the
Executive were fully vested under each Retirement Plan and had accumulated
(after any termination under this Agreement) the additional years of credited
service and/or allocations and Employer contributions under each of said Plans
that he would have received had he continued in the employment of the Bank for
the entire Employment Term at the levels of Base Salary and cash bonus used to
calculate the Severance Payments pursuant to subsection 5(vi)(A) above.

                   (C) In addition to all other amounts payable under this
section 5, Executive shall be entitled to coverage under any group health, life,
dental, or other group insurance plans (as well as under any individual life
coverages provided by the Bank on Executive's behalf) for the remainder of the
Employment Term upon his continued payment of any required employee contribution
at the rate in effect as of his Termination Date and to receipt of all benefits
otherwise payable to Executive under (i) any tax qualified Bank plan or
agreement relating to pension or

                                      -7-

<PAGE>   50

retirement benefits, and (ii) any other Bank plan or agreement, regardless of
tax status, established to provide deferred compensation, retirement, or other
benefits for the Executive.

                   (D) If Executive is under fifty-five (55) years of age on the
Termination Date, Executive shall take reasonable steps to obtain employment and
thereby mitigate the amount of compensation and benefits due under Section
5(vi); provided, however, that Executive shall not be required to accept a
position other than one within a 25 mile radius of the City of LaCrosse,
Wisconsin. If the Executive is fifty-five (55) years of age or older on the
Termination Date or if Executive determines upon the advice of a qualified
independent physician that he is physically or medically unable to substantially
perform duties with another employer comparable to those performed by him with
the Bank, the Executive shall have no obligation to seek other employment.
Notwithstanding the foregoing, and regardless of age, during any portion of the
Employment term remaining after the Termination Date, if the Executive becomes
employed on a full-time basis by another employer, then to the extent the
Executive shall receive compensation, benefits or service credit from such other
employer, the aggregate amount of all compensation to be paid and benefits and
service credit to be provided by the Bank under this Agreement shall be
correspondingly reduced.

                   (E) The requirement for mitigation, as set forth in Section 5
(vi)(D) above, shall not apply with respect to any termination under Section
5(iv) subsequent to a change in control.

        6.      Limitations on Termination Compensation.

              (i) In the event that the severance benefits payable to the
Executive under Subsection 5(vi) ("Severance Benefits"), or any other payments
or benefits received or to be received by the Executive from the Bank (whether
payable pursuant to the terms of this Agreement, any other plan, agreement or
arrangement with the Bank or any corporation ("Affiliate") affiliated with the
Bank within the meaning of Section 1504 of the Internal Revenue Code of 1954, as
amended (the "Code"), in the opinion of tax counsel selected by the Bank's
independent auditors and acceptable to the Executive, constitute "parachute
payments" within the meaning of Section 280G(b)(2) of the Code, and the present
value of such "parachute payments" equals or exceeds three (3) times the average
of the annual compensation payable to the Executive by the Bank (or an
Affiliate) and includible in the Executive's gross income for federal income tax
purposes for the five (5) calendar years preceding the year in which a change in
ownership or control of the Bank occurred ("Base Amount"), such severance
benefits shall be reduced to an amount the present value of which (when combined
with the present value of any other payments or

                                      -8-

<PAGE>   51

benefits otherwise received or to be received by the Executive from the Bank (or
an Affiliate) that are deemed "parachute payments") is equal to 2.99 times the
Base Amount, notwithstanding any other provision to the contrary in this
Agreement. The Severance Benefits shall not be reduced if (A) the Executive
shall have effectively waived his receipt or enjoyment of any such payment or
benefit which triggered the applicability of this Section 6, or (B) in the
opinion of such tax counsel, the Severance Benefits (in its full amount or as
partially reduced, as the case may be) plus all other payments or benefits which
constitute "parachute payments" within the meaning of Section 280G(b)(2) of the
code are reasonable compensation for services actually rendered, within the
meaning of Section 280G(b)(4) of the code, and such payments are deductible by
the Bank. The Base Amount shall include every type and form of compensation
includible in the Executive's gross income in respect of his employment by the
Bank (or an Affiliate), except to the extent otherwise provided in temporary or
final regulations promulgated under Section 280G(b) of the Code. For purposes of
this Section 6, a "change in ownership or control" shall have the meaning set
forth in Section 280G(b) of the code and any temporary or final regulations
promulgated thereunder. The present value of any non-cash benefit or any
deferred cash payment shall be determined by the Bank's independent auditors in
accordance with the principles of Sections 280G(b)(3) and (4) of the Code.

              (ii) Executive shall have the right to request that the Bank
obtain a ruling from the Internal Revenue Service ("Service") as to whether any
or all payments or benefits deter- mined by such tax counsel are, in the view of
the Service, "para- chute payments" under Section 280G. If a ruling is sought
pursuant to the Executive's request, no severance benefits payable under this
Agreement shall be made to the Executive until after fifteen (15) days from the
date of such ruling. For purposes of this Subsection 6(ii), the Executive and
the Bank agree to be bound by the Service's ruling as to whether payments
constitute "parachute payments" under Section 280G. If the service declines, for
any reason, to provide the ruling requested, the tax counsel's opinion provided
under Sub-section 6(i) with respect to what payments or benefits constitute
"parachute payments" shall control, and the period during which the Severance
Benefits may be deferred shall be extended to a date fifteen (15) days from the
date of the Service's notice indicating that no ruling would be forthcoming.

              (iii) In the event that Section 280G, or any successor statute, is
repealed, this Section 6 shall cease to be effective on the effective date of
such repeal. The parties to this Agreement recognize that final regulations
under Section 280G of the Code may affect the amounts that may be paid under
this Agreement and agree that, upon issuance of such final regulations

                                      -9-

<PAGE>   52

this Agreement may be modified as in good faith deemed necessary in light of the
provisions of such regulations to achieve the purposes of this Agreement, and
that consent to such modifications shall not be unreasonably withheld.

        7.      Noncompetition After Voluntary Termination And Duty of
Confidentiality.

                   (a) Noncompetition. Executive acknowledges that the
development of personal contacts and relationships is an essential element of
the Bank's business, that the Bank has invested considerable time and money in
his development of such contacts and relationships, that the Bank could suffer
tirreparable harm if he were to leave employment and solicit the business of
Bank's customers, and that it is reasonable to protect the Bank against
competitive activities by Executive. Executive covenants and agrees, in
recognition of the foregoing and in consideration of the mutual promises
contained herein, that in the event of a voluntary termination of employment by
Executive pursuant to Section 5(iii), or upon expiration of this Agreement as a
result of Executive's election not to continue automatic annual renewals,
Executive shall not accept employment in La Crosse, Dane or St. Croix counties
with any Significant Competitor of the Bank for a period of eighteen (18) months
following such termination. For purposes of this Agreement, the term Significant
Competitor means any financial institution including, but not limited to, any
commercial bank, savings bank, savings and loan association, credit union, or
mortgage banking corporation which, at the time of termination of Executive's
employment or during the period of this covenant not to compete, (i) maintains a
home, branch or other office in any of said counties, or (ii) has originated
within any of said counties $10,000,000 or more in residential mortgage loans
during any consecutive twelve (12) month period within the thirty-six (36)
months prior to Executive's termination and inclusive of the period covered by
this covenant.

                   Executive agrees that the non-competition provisions set
forth herein are necessary for the protection of the Bank and are reasonably
limited as to (i) the scope of activities affected, (ii) their duration and
geographic scope, and (iii) their effect on Executive and the public. In the
event Executive violates the non-competition provisions set forth herein, Bank
shall be entitled, in addition to its other legal remedies, to enjoin the
employment of Executive with any Significant Competitor for the period set forth
herein. If Executive violates this covenant and the Bank brings legal action for
injunctive or other relief, the Bank shall not, as a result of the time involved
in obtaining such relief, be deprived of the benefit of the full period of the
restrictive covenant. Accordingly, the covenant shall be deemed to have the
duration specified herein, computed from the date such relief is granted, but
reduced by any period between

                                      -10-

<PAGE>   53

commencement of the period and the date of the first violation. In addition to
such other relief as may be awarded, if the Bank is the prevailing party it
shall be entitled to reimbursement for all reasonable costs, including
attorneys' fees, incurred in enforcing its rights hereunder.

                   (b) Duty of Confidentiality. Executive acknowledges that he
will, as the result of services performed on behalf of the Bank, obtain or
otherwise become aware of confidential and/or proprietary information regarding
the Bank's affairs, including, but not limited to, information relative to (i)
customers, customer accounts and customer lists, (ii) marketing, (iii) customer
development strategies, (iv) financial and economic plans and projections, and
(v) other similar information. Executive agrees that following termination of
his employment for any reason, he will treat all such matters as confidential
and will refrain both from divulging such information in any manner and from the
use of such information for his benefit or for the benefit of any employer
(regardless of whether such employer would constitute a Significant Competitor
under this Agreement) or third-party.

        8.      General Provisions.

              (i) Successors; Binding Agreement.

                   (A) The Bank will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Bank ("successor
organization") to expressly assume and agree to perform this Agreement in the
same manner and to the same extent that the Bank would be required to perform it
if no such succession had taken place. As used in this Agreement, "Bank" shall
mean the Bank as hereinbefore defined and any successor to its business and/or
assets as aforesaid which executes and delivers the agreement provided for in
this Section 8 or which otherwise becomes bound by the terms and provisions of
this Agreement by operation of this Agreement or law. Failure of the Bank to
obtain such agreement prior to the effectiveness of any such succession shall be
a breach of this Agreement and shall entitle the Executive as his exclusive
remedy to compensation from the Bank in the same amount and on the same terms as
he would be entitled to under this agreement if he terminated his employment
under Section 5(iv). For purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Termination
Date.

                   (B) No right or interest to or in any payments or benefits
under this Agreement shall be assignable or transferrable in any respect by the
Executive, nor shall any such payment, right or interest be subject to seizure,
attachment or creditor's process for payment of any debts, judgments, or

                                      -11-

<PAGE>   54

obligations of the Executive.

                   (C) This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the Executive and his heirs, beneficiaries and
personal representatives and the Bank and any successor organization.

              (ii) Notice. For the purpose of this Agreement, notices and all
other communications provided for in the Agreement shall be in writing and shall
be deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed as
follows:

              If to the Bank:

              605 State Street
              LaCrosse, WI 54601
              Attn:  Secretary

or if to Executive at the address set forth below the Executive's signature line
of this Agreement, or to such other address as either party may have furnished
to the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

              (iii) Expenses. If any legal proceeding is necessary to enforce or
interpret this Agreement, or to recover damages for breach of it, the prevailing
party, shall be entitled to recover from the other party reasonable attorneys'
fees and necessary costs and disbursements incurred in such litigation, in
addition to any other relief to which such prevailing party may be entitled.

              Notwithstanding the foregoing, in the event of a legal proceeding
to enforce or interpret the terms of this Agreement following a change in
control, Executive shall be entitled to recover from Bank, regardless of the
outcome of said action, necessary costs and disbursements incurred together with
actual attorney's fees up to the greater of (A) $25,000, or (B) thirty percent
(30%) of the amount in dispute between the parties [which amount, for purposes
of this Agreement, shall be deemed to be the difference between the highest
written settlement offer from the Bank and the lowest written settlement offer
(exclusive of any claim for consequential, punitive, or other forms or amounts
of damages not based on specific contract terms) from Executive]. Recovery by
Executive of attorneys fees and costs as provided herein following a change in
control shall be in addition to any other relief to which Executive may be
entitled.

                                      -12-

<PAGE>   55

              (iv) Withholding. The Bank shall be entitled to withhold from
amounts to be paid to the Executive under this Agreement any federal, state or
local withholding or other taxes of charges which it is from time to time
required to withhold. the Bank shall be entitled to rely on an opinion of
counsel if any question as to the amount or requirement of any such withholding
shall arise.

              (v) Miscellaneous. No provision of this Agreement may be amended,
waived or discharged unless such amendment, waiver or discharge is agreed to in
writing and signed by the Executive and such officer as may be specifically
designated by the board. No waiver by either party hereto at any time of any
breach by the 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. No agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter hereof have been made by
either party which are not expressly set forth in this Agreement. The validity,
interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Wisconsin.

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

              (vii) Counterparts. This Agreement may be executed in several
counterparts, each of which together will constitute one and the same
instrument.

              (viii) Headings. Headings contained in this Agreement are for
reference only and shall not affect the meaning or interpretation of any
provision of this Agreement.

              (ix) Effective Date. The effective date of this Agreement shall be
the date indicated in the first paragraph of this Agreement, notwithstanding the
actual date of execution by any party.

                                      -13-

<PAGE>   56

        IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as
of the date first above written.

                                   Executive:

                                   ------------------------------------
                                   Joseph M. Konradt

                                   ------------------------------------

                                   ------------------------------------
                                   (Address)

                                   First Federal Savings Bank,
                                   LaCrosse-Madison
                                   (CORPORATE SEAL)

                                   By:
                                      ---------------------------------

                                   By:
                                      ----------------------------------

                                      -14-

<PAGE>   57

                              EMPLOYMENT AGREEMENT
                       (As Amended Effective July 1, 1994)

        THIS EMPLOYMENT AGREEMENT is made effective as of this 1st day of July,
1994, by and between First Federal Savings Bank, LaCrosse-Madison, a
federally-chartered savings bank (the "Bank"), and Jack C. Rusch (the
"Executive").

        WHEREAS, Executive has been employed by the Bank for a number of years,
and currently serves as its Executive Vice President, Treasurer, and Finance and
Administrative Division Manager ("Corporate Position"); and

        WHEREAS, Executive possesses an intimate knowledge of the business and
affairs of the Bank, including its policies, markets and financial and human
resources; and

        WHEREAS, the Board of Directors of the Bank (the "Board"), recognizes
that Executive's contribution to the growth and success of the Bank has been
substantial and desires to assure the Bank of Executive's continued employment
in an executive capacity and to compensate him therefore; and

        WHEREAS, Executive is desirous of committing himself to serve the Bank
on the terms provided in this Agreement.

        NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein set forth, the Bank and Executive agree as follows:

        1. Employment. Bank shall continue to employ Executive and Executive
shall continue to serve Bank under the terms and conditions of this Agreement
(which terms and conditions are intended to amend and supercede the agreement of
July 1, 1987 as previously in effect between the parties), for the period stated
in paragraph 2 below.

        2. Term of Employment. The period of Executive's employment under this
Agreement shall commence on the date set forth above ("Commencement Date") and
shall expire on the third annual anniversary of said Commencement Date, unless
sooner terminated as provided herein. Effective as of any annual anniversary of
the Commencement Date during the term of this Agreement, the term of employment
hereunder may be extended by the action of the Bank's Board of Directors to add
one additional year to the then remaining term of employment hereunder so that
said term is annually restored to a full three-year term. The Board of Directors
or the Executive shall each provide the other with at least forty-five (45)
days' advance written notice of any decision on their respective parts not to
extend the Agreement on the anniversary date. The term of employment under this

<PAGE>   58

Agreement, as in effect from time to time, shall be referred to as the
"Employment Term."

        3. Position and Duties. Subject to Section 5(iv)(B), the Executive shall
serve in his Corporate Position, reporting to the President, and shall have
supervision and control over, and responsibility for, the finance and
administration of the Bank and shall have such other powers and duties as may
from time to time be prescribed by the President, provided that such duties are
consistent with his present duties and with the Executive's position as an
executive officer of the Bank. The Executive shall devote substantially all his
working time and efforts to the business and affairs of the Bank.

        4. Compensation. As compensation for the services to be provided
pursuant to this Agreement, Executive shall receive from Bank the compensation
and other benefits set forth below:

              (i) Base Salary. During the Employment Term the Executive shall
receive a base salary ("Base Salary") in such amount as may from time to time be
approved by the Board. The Base Salary shall at no time be less than the annual
base salary payable to the Executive on the date of this Agreement. Any increase
in Base Salary or other compensation granted by the Board shall in no way limit
or reduce any other obligation of the Bank under this Agreement and, once
established at an increased specified rate, Executive's Base Salary under this
Agreement shall not thereafter be reduced. Executive's Base Salary and other
compensation shall be paid in accordance with the Bank's regular payroll
practices, as from time to time in effect.

              (ii) Bonus Payments. In addition to Base Salary, Executive shall
be entitled during the Employment Term to receive such bonus payments as the
Board may determine in accordance with the Bank's Management Incentive Plan (the
"Incentive Plan") in effect on the date of this Agreement or as the same may be
amended or modified from time to time for the Bank's executive officers.

              (iii) Other Benefits. During the Employment Term the Bank shall
provide to Executive all other benefits of employment generally made available
to the Bank's executive officers as in effect with other plans or arrangements
providing Executive with at least equivalent benefits thereunder. Executive
shall be entitled to participate in or receive benefits under any group health
and life insurance plan, pension plan, stock purchase, incentive savings, stock
option, restricted stock, stock appreciation rights and any other similar plans
or arrangements presently or hereafter made available by the Bank to its
executive officers (collectively the "Benefit Plans"), subject to and on a basis
consistent with the terms, conditions and overall administration of such Benefit
Plans. Executive shall be

                                       -2-

<PAGE>   59

entitled to vacations and perquisites in accordance with the Bank's policies as
in effect from time to time for its executive officers.

        5. Termination. This Agreement may be terminated, subject to payment of
the compensation and other benefits described below, upon the occurrence of any
of the events described below. In case of such termination, the date on which
Executive ceases to be employed under this Agreement, after giving effect to any
prior notice requirement set forth below, is referred to as the "Termination
Date."

              (i) Death; Disability; Retirement. This Agreement shall terminate
upon the death, disability or retirement of Executive. As used in this
Agreement, the term "disability" shall mean Executive's inability, as a result
of physical or mental incapacity, to substantially perform his duties with the
Bank for a period of 180 consecutive days. Any question as to the existence of
Executive's disability upon which the Executive and the Bank cannot agree shall
be determined by a qualified independent physician mutually agreeable to
Executive and the Bank or, if the parties are unable to agree upon a physician
within ten (10) days after notice from either to the other suggesting a
physician, by a physician designated by the then president of the medical
society for the county in which Executive maintains his principal residence,
upon the request of either party. The costs of any such medical examination
shall be borne by the Bank. If Executive is terminated due to disability he
shall be paid 100% of his Base Salary at the rate in effect at the time notice
of termination is given for the remainder of the Employment Term, payable in
substantially equal monthly installments less, in each case, any disability
payments otherwise payable under plans provided by the Bank for disability or
any governmental social security or workers compensation program, and actually
paid to Executive in substantially equal monthly installments.

              As used in this Agreement, the term "retirement" shall mean
Executive's retirement in accordance with and pursuant to any retirement plan of
the Bank generally applicable to its executive officers or in accordance with
any retirement arrangement established with Executive's consent with respect to
Executive.

              If termination occurs for such reason, no additional compensation
shall be payable to the Executive under this Agreement except as specifically
provided in this Agreement. Notwithstanding anything to the contrary contained
in this Agreement, the Executive shall receive all compensation and other
benefits to which he was entitled under Section 4 through the Termination Date
and, in addition, shall receive all other benefits available to him under the
Bank's Benefit Plans as in

                                      -3-

<PAGE>   60

effect on the date of death, disability or retirement.

              (ii) Cause. The Bank may terminate the Executive's employment
under this Agreement for Cause at any time, and thereafter the Bank's
obligations under this Agreement shall cease and terminate. Notwithstanding
anything to the contrary contained in this Agreement, Executive shall receive
all compensation and other benefits to which he was entitled under Section 4
through the Termination Date and, in addition, shall receive all benefits
available to him under the Bank's Benefit Plans as in effect on the Termination
Date. For purposes of this Agreement, "Cause" shall mean (A) the willful and
continued failure by Executive to substantially perform his duties with the Bank
(other than failure resulting from the Executive's incapacity due to physical or
mental illness) after a written demand for substantial performance is delivered
to Executive by the Board, which demand specifically identifies the manner in
which the Board believes Executive has not substantially performed his duties,
(B) any willful act of misconduct by Executive which is materially injurious to
the Bank, monetarily or otherwise, (C) a criminal conviction of Executive for
any act involving dishonesty, breach of trust or a violation of the banking or
savings and loan laws of the State of Wisconsin or the United States, (D) a
criminal conviction of the Executive for the commission of any felony, (E) a
willful breach of fiduciary duty involving personal profit, (F) a willful
violation of any law, rule or regulation or final cease and desist order where
such violations materially, adversely, affect the Bank, (G) incompetence,
personal dishonesty or material breach of any provision of this Agreement which
would have a material adverse impact on the Bank. For purposes of this
Subsection 5(ii), no act, or failure to act, on the Executive's part shall be
deemed "willful" unless done, or omitted to be done, by the Executive not in
good faith and without reasonable belief that the action or omission was in the
best interest of the Bank.

              (iii) Voluntary Termination by Executive. Executive may
voluntarily terminate his employment under this Agreement at any time by giving
at least forty-five (45) days prior written notice to the Bank. In such event,
Executive shall receive all compensation and other benefits to which he was
entitled under Section 4 through the Termination Date and, in addition, shall
receive all other benefits available to him under the Bank's Benefit Plans as in
effect on the Termination Date.

              (iv) Termination by Executive After Change in Control. For
purposes of this Agreement, a "change in control" shall mean a change in control
with respect to the Bank or its parent holding company of a nature that would be
required to be reported in response to Item 6(e) of Schedule 14A of Regulation
14A promulgated under the Securities Exchange Act of 1934, as amended ("Exchange
Act") or any successor thereto; provided that, without

                                      -4-

<PAGE>   61

limitation, such a change in control shall be deemed to have occurred if (i) any
"person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities representing 25% or more of
the combined voting power of the Bank or holding company's then outstanding
securities; or (ii) during any period of two consecutive years, individuals who
at the beginning of such period constitute the Board of Directors of the Bank or
company 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. The Executive
may terminate his employment under this Agreement by giving at least ninety (90)
days prior written notice to the Bank at anytime (1) within eighteen (18) months
of the effective date of a "change in control", or (2) after the occurrence, at
any time subsequent to a "change in control," of any of the following events,
without Executive's express written consent:

                   (A) Executive is assigned to any positions, duties or
responsibilities that are less significant than his positions, duties and
responsibilities as of the time immediately prior to any change in control;

                   (B) Executive is removed from or the Board fails to re-elect
Executive to any of his Corporate Position, except (1) in connection with
termination of Executive's employment for cause, disability or retirement, or
(2) in connection with any change in control after which the Bank is not the
continuing or surviving corporation, if the successor organization has executed
an agreement as required by Section 8(i)(A) and the removal or failure to
re-elect is limited to his Corporate Position with the Bank;

                   (C) Executive's Base Salary is materiallly reduced or the
Executive experiences in any year a material reduction of the ratio of his bonus
payment to his Base Salary which is greater than the average reduction in the
ratio of bonus payments to base salaries in such year experienced by all other
executive officers of the Bank or any other material failure by the Bank to
comply with Section 4;

                   (D) Executive is transferred to a location not within a 25
mile radius of the City of LaCrosse, Wisconsin; or

                   (E) The Bank fails to obtain an agreement from any successor
organization as required by Section 8(i)(A).

                                      -5-

<PAGE>   62

              (v)      Suspension or Termination Required by the OTS

                   (A) If Executive is suspended and/or temporarily prohibited
from participating in the conduct of the Bank's affairs by a notice served under
section 8(e)(3), or section 8(g)(1) of the Federal Deposit Insurance Act (12
U.S.C. ss. 1818(e)(3) and (g)(1), the Bank's obligations under the Agreement
shall be suspended as of the date of service of the notice unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, Bank shall
(1) pay Executive all of the compensation withheld while its obligations under
this Agreement were suspended and (2) reinstate any of its obligations which
were suspended.

                   (B) If Executive is removed and/or permanently prohibited
from participating in the conduct of the Bank's affairs by an order issued under
section 8(e)(4) or section 8(g)(1) of the Federal Deposit Insurance Act (12
U.S.C. ss. 1818(e)(4) or (g)(1) obligations of the Bank under the Agreement
shall terminate as of the effective date of the order, but vested rights of the
Executive to compensation and to any benefits under the Bank's Pension Plan
shall not be affected.

                   (C) If the Bank is in default as defined in section 3(x)(1)
of the Federal Deposit Insurance Act, (12 U.S.C. 1813 (x)(1))all obligations
under the Agreement shall terminate as of the date of default, except that this
paragraph shall not affect any vested rights of the Executive under any
qualified retirement plan nor, in the event the Executive terminates prior to
the date of such default, the Executive's vested rights to continue to receive
severance payments and benefits pursuant to section 5(vi) of this Agreement.

                   (D) All obligations under the Agreement shall be terminated,
except to the extent determined that continuation of the contract is necessary
for the continued operation of the Bank, (i) by the OTS, at the time the FDIC or
Resolution Trust Corporation ("RTC") enters into an agreement to provide
assistance to or on behalf of the Bank under the authority contained in section
13(c) of the Federal Deposit Insurance Act; or (ii) by the OTS at the time it
approves a supervisory merger to resolve problems related to operation of the
Bank or when the Bank is determined by the OTS to be in an unsafe or unsound
condition. Any rights of the parties that have already vested, however, shall
not be affected by such action, and the Executive shall receive the compensation
and benefits set forth in section 5(vi) of this Agreement.

                   (E) In the event that 12 C.F.R. ss. 563.39, or any successor
regulation, is repealed, this section 5(v) shall cease to be effective on the
effective date of such repeal. In the event that 12 C.F.R. ss. 563.39, or any
successor regulation, is

                                      -6-

<PAGE>   63

amended or modified, this Agreement shall be revised to reflect the amended or
modified provisions if: (1) the amended or modified provision is required to be
included in this Agreement; or (2) if not so required, the Executive requests
that the Agreement be so revised.

              (vi) Termination by the Bank Other Than Due to Death, Disability,
Retirement or For Cause; Termination of Executive. If this Agreement is
terminated by the Bank for any reason other than death, disability, retirement
or for cause as set forth in Section 5(i) or (ii), or is terminated by the
Executive pursuant to Section 5(iv), then, following the Date of Termination:

                   (A) In lieu of any further salary payments to the Executive
for a period subsequent to the Termination Date, the Executive shall receive
severance pay in the form of payments continuing for the remaining unexpired
portion of the Employment Term, fully restored as of the Termination Date, at
the times provided in Section 4(i) and 4 (ii) ("Severance Payments") and based
on his highest rate of Base Salary within the 3 years preceding his Termination
Date and his total cash bonus paid in his most recently completed calendar year
of employment. In the event of a termination as a result of a change in control,
the Executive may elect to receive the Severance Payments calculated above in
one lump-sum, subject to any applicable limitations set forth in Section 6
below; provided that the amount of Severance Payment in connection with a change
in control shall be at least equal to the particular Executive's annual
compensation as of the Termination Date.

                   (B) In addition to the retirement benefits to which the
Executive is entitled under the Bank's Group Pension Plan, 401(k) Plan, and
ESOP, as amended from time to time (the "Retirement Plans"), the Executive shall
receive additional severance retirement benefits payable under this Agreement,
which benefits (except as provided below) shall be determined in accordance
with, and payable in the form and at the times provided in, the respective
Retirement Plans. Such benefits shall be determined as if the Executive were
fully vested under each Retirement Plan and had accumulated (after any
termination under this Agreement) the additional years of credited service
and/or allocations and Employer contributions under each of said Plans that he
would have received had he continued in the employment of the Bank for the
entire Employment Term at the levels of Base Salary and cash bonus used to
calculate the Severance Payments pursuant to subsection 5(vi)(A) above.

                   (C) In addition to all other amounts payable under this
section 5, Executive shall be entitled to coverage under any group health, life,
dental, or other group insurance plans (as well as under any individual life
coverages provided by the Bank on Executive's behalf) for the remainder of the
Employment Term

                                      -7-

<PAGE>   64

upon his continued payment of any required employee contribution at the rate in
effect as of his Termination Date and to receipt of all benefits otherwise
payable to Executive under (i) any tax qualified Bank plan or agreement relating
to pension or retirement benefits, and (ii) any other Bank plan or agreement,
regardless of tax status, established to provide deferred compensation,
retirement, or other benefits for the Executive.

                   (D) If Executive is under fifty-five (55) years of age on the
Termination Date, Executive shall take reasonable steps to obtain employment and
thereby mitigate the amount of compensation and benefits due under Section
5(vi); provided, however, that Executive shall not be required to accept a
position other than one within a 25 mile radius of the City of LaCrosse,
Wisconsin. If the Executive is fifty-five (55) years of age or older on the
Termination Date or if Executive determines upon the advice of a qualified
independent physician that he is physically or medically unable to substantially
perform duties with another employer comparable to those performed by him with
the Bank, the Executive shall have no obligation to seek other employment.
Notwithstanding the foregoing, and regardless of age, during any portion of the
Employment term remaining after the Termination Date, if the Executive becomes
employed on a full-time basis by another employer, then to the extent the
Executive shall receive compensation, benefits or service credit from such other
employer, the aggregate amount of all compensation to be paid and benefits and
service credit to be provided by the Bank under this Agreement shall be
correspondingly reduced.

                   (E) The requirement for mitigation, as set forth in Section 5
(vi)(D) above, shall not apply with respect to any termination under Section
5(iv) subsequent to a change in control.

        6.      Limitations on Termination Compensation.

              (i) In the event that the severance benefits payable to the
Executive under Subsection 5(vi) ("Severance Benefits"), or any other payments
or benefits received or to be received by the Executive from the Bank (whether
payable pursuant to the terms of this Agreement, any other plan, agreement or
arrangement with the Bank or any corporation ("Affiliate") affiliated with the
Bank within the meaning of Section 1504 of the Internal Revenue Code of 1954, as
amended (the "Code"), in the opinion of tax counsel selected by the Bank's
independent auditors and acceptable to the Executive, constitute "parachute
payments" within the meaning of Section 280G(b)(2) of the Code, and the present
value of such "parachute payments" equals or exceeds three (3) times the average
of the annual compensation payable to the Executive by the Bank (or an
Affiliate) and includible in the Executive's gross income for federal income tax
purposes for the five (5)

                                      -8-

<PAGE>   65

calendar years preceding the year in which a change in ownership or control of
the Bank occurred ("Base Amount"), such severance benefits shall be reduced to
an amount the present value of which (when combined with the present value of
any other payments or benefits otherwise received or to be received by the
Executive from the Bank (or an Affiliate) that are deemed "parachute payments")
is equal to 2.99 times the Base Amount, notwithstanding any other provision to
the contrary in this Agreement. The Severance Benefits shall not be reduced if
(A) the Executive shall have effectively waived his receipt or enjoyment of any
such payment or benefit which triggered the applicability of this Section 6, or
(B) in the opinion of such tax counsel, the Severance Benefits (in its full
amount or as partially reduced, as the case may be) plus all other payments or
benefits which constitute "parachute payments" within the meaning of Section
280G(b)(2) of the code are reasonable compensation for services actually
rendered, within the meaning of Section 280G(b)(4) of the code, and such
payments are deductible by the Bank. The Base Amount shall include every type
and form of compensation includible in the Executive's gross income in respect
of his employment by the Bank (or an Affiliate), except to the extent otherwise
provided in temporary or final regulations promulgated under Section 280G(b) of
the Code. For purposes of this Section 6, a "change in ownership or control"
shall have the meaning set forth in Section 280G(b) of the code and any
temporary or final regulations promulgated thereunder. The present value of any
non-cash benefit or any deferred cash payment shall be determined by the Bank's
independent auditors in accordance with the principles of Sections 280G(b)(3)
and (4) of the Code.

              (ii) Executive shall have the right to request that the Bank
obtain a ruling from the Internal Revenue Service ("Service") as to whether any
or all payments or benefits determined by such tax counsel are, in the view of
the Service, "parachute payments" under Section 280G. If a ruling is sought
pursuant to the Executive's request, no severance benefits payable under this
Agreement shall be made to the Executive until after fifteen (15) days from the
date of such ruling. For purposes of this Subsection 6(ii), the Executive and
the Bank agree to be bound by the Service's ruling as to whether payments
constitute "parachute payments" under Section 280G. If the service declines, for
any reason, to provide the ruling requested, the tax counsel's opinion provided
under Subsection 6(i) with respect to what payments or benefits constitute
"parachute payments" shall control, and the period during which the Severance
Benefits may be deferred shall be extended to a date fifteen (15) days from the
date of the Service's notice indicating that no ruling would be forthcoming.

              (iii) In the event that Section 280G, or any successor statute, is
repealed, this Section 6 shall cease to be effective

                                      -9-

<PAGE>   66

on the effective date of such repeal. The parties to this Agreement recognize
that final regulations under Section 280G of the Code may affect the amounts
that may be paid under this Agreement and agree that, upon issuance of such
final regulations this Agreement may be modified as in good faith deemed
necessary in light of the provisions of such regulations to achieve the purposes
of this Agreement, and that consent to such modifications shall not be
unreasonably withheld.

        7.      Noncompetition After Voluntary Termination And Duty of
Confidentiality.

              (a) Noncompetition. Executive acknowledges that the development of
personal contacts and relationships is an essential element of the Bank's
business, that the Bank has invested considerable time and money in his
development of such contacts and relationships, that the Bank could suffer
irreparable harm if he were to leave employment and solicit the business of
Bank's customers, and that it is reasonable to protect the Bank against
competitive activities by Executive. Executive covenants and agrees, in
recognition of the foregoing and in consideration of the mutual promises
contained herein, that in the event of a voluntary termination of employment by
Executive pursuant to Section 5(iii), or upon expiration of this Agreement as a
result of Executive's election not to continue automatic annual renewals,
Executive shall not accept employment in La Crosse, Dane or St. Croix counties
with any Significant Competitor of the Bank for a period of eighteen (18) months
following such termination. For purposes of this Agreement, the term Significant
Competitor means any financial institution including, but not limited to, any
commercial bank, savings bank, savings and loan association, credit union, or
mortgage banking corporation which, at the time of termination of Executive's
employment or during the period of this covenant not to compete, (i) maintains a
home, branch or other office in any of said counties, or (ii) has originated
within any of said counties $10,000,000 or more in residential mortgage loans
during any consecutive twelve (12) month period within the thirty-six (36)
months prior to Executive's termination and inclusive of the period covered by
this covenant.

              Executive agrees that the non-competition provisions set forth
herein are necessary for the protection of the Bank and are reasonably limited
as to (i) the scope of activities affected, (ii) their duration and geographic
scope, and (iii) their effect on Executive and the public. In the event
Executive violates the non-competition provisions set forth herein, Bank shall
be entitled, in addition to its other legal remedies, to enjoin the employment
of Executive with any Significant Competitor for the period set forth herein. If
Executive violates this covenant and the Bank brings legal action for injunctive
or other relief, the Bank shall not, as a result of the time involved in
obtaining

                                      -10-

<PAGE>   67

such relief, be deprived of the benefit of the full period of the restrictive
covenant. Accordingly, the covenant shall be deemed to have the duration
specified herein, computed from the date such relief is granted, but reduced by
any period between commencement of the period and the date of the first
violation. In addition to such other relief as may be awarded, if the Bank is
the prevailing party it shall be entitled to reimbursement for all reasonable
costs, including attorneys' fees, incurred in enforcing its rights hereunder.

              (b) Duty of Confidentiality. Executive acknowledges that he will,
as the result of services performed on behalf of the Bank, obtain or otherwise
become aware of confidential and/or proprietary information regarding the Bank's
affairs, including, but not limited to, information relative to (i) customers,
customer accounts and customer lists, (ii) marketing, (iii) customer development
strategies, (iv) financial and economic plans and projections, and (v) other
similar information. Executive agrees that following termination of his
employment for any reason, he will treat all such matters as confidential and
will refrain both from divulging such information in any manner and from the use
of such information for his benefit or for the benefit of any employer
(regardless of whether such employer would constitute a Significant Competitor
under this Agreement) or third-party.

        8.      General Provisions.

              (i) Successors; Binding Agreement.

                   (A) The Bank will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Bank ("successor
organization") to expressly assume and agree to perform this Agreement in the
same manner and to the same extent that the Bank would be required to perform it
if no such succession had taken place. As used in this Agreement, "Bank" shall
mean the Bank as hereinbefore defined and any successor to its business and/or
assets as aforesaid which executes and delivers the agreement provided for in
this Section 8 or which otherwise becomes bound by the terms and provisions of
this Agreement by operation of this Agreement or law. Failure of the Bank to
obtain such agreement prior to the effectiveness of any such succession shall be
a breach of this Agreement and shall entitle the Executive as his exclusive
remedy to compensation from the Bank in the same amount and on the same terms as
he would be entitled to under this agreement if he terminated his employment
under Section 5(iv). For purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Termination
Date.

                   (B) No right or interest to or in any payments or

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<PAGE>   68

benefits under this Agreement shall be assignable or transferrable in any
respect by the Executive, nor shall any such payment, right or interest be
subject to seizure, attachment or creditor's process for payment of any debts,
judgments, or obligations of the Executive.

                   (C) This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the Executive and his heirs, beneficiaries and
personal representatives and the Bank and any successor organization.

              (ii) Notice. For the purpose of this Agreement, notices and all
other communications provided for in the Agreement shall be in writing and shall
be deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed as
follows:

                If to the Bank:

                605 State Street
                LaCrosse, WI 54601
                Attn:    Secretary

or if to Executive at the address set forth below the Executive's signature line
of this Agreement, or to such other address as either party may have furnished
to the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

              (iii) Expenses. If any legal proceeding is necessary to enforce or
interpret this Agreement, or to recover damages for breach of it, the prevailing
party, shall be entitled to recover from the other party reasonable attorneys'
fees and necessary costs and disbursements incurred in such litigation, in
addition to any other relief to which such prevailing party may be entitled.

              Notwithstanding the foregoing, in the event of a legal proceeding
to enforce or interpret the terms of this Agreement following a change in
control, Executive shall be entitled to recover from Bank, regardless of the
outcome of said action, necessary costs and disbursements incurred together with
actual attorney's fees up to the greater of (A) $25,000, or (B) thirty percent
(30%) of the amount in dispute between the parties [which amount, for purposes
of this Agreement, shall be deemed to be the difference between the highest
written settlement offer from the Bank and the lowest written settlement offer
(exclusive of any claim for consequential, punitive, or other forms or amounts
of damages not based on specific contract terms) from Executive]. Recovery by
Executive of attorneys fees and costs as provided herein following a change in
control shall be in addition to any other relief to which Executive may be
entitled.

                                      -12-

<PAGE>   69

              (iv) Withholding. The Bank shall be entitled to withhold from
amounts to be paid to the Executive under this Agreement any federal, state or
local withholding or other taxes of charges which it is from time to time
required to withhold. the Bank shall be entitled to rely on an opinion of
counsel if any question as to the amount or requirement of any such withholding
shall arise.

              (v) Miscellaneous. No provision of this Agreement may be amended,
waived or discharged unless such amendment, waiver or discharge is agreed to in
writing and signed by the Executive and such officer as may be specifically
designated by the board. No waiver by either party hereto at any time of any
breach by the 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. No agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter hereof have been made by
either party which are not expressly set forth in this Agreement. The validity,
interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Wisconsin.

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

              (vii) Counterparts. This Agreement may be executed in several
counterparts, each of which together will constitute one and the same
instrument.

              (viii) Headings. Headings contained in this Agreement are for
reference only and shall not affect the meaning or interpretation of any
provision of this Agreement.

              (ix) Effective Date. The effective date of this Agreement shall be
the date indicated in the first paragraph of this Agreement, notwithstanding the
actual date of execution by any party.

        IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as
of the date first above written.

                                            Executive:  Milne J. Duncan

                                            ------------------------------------

                                      -13-

<PAGE>   70

                                            ------------------------------------
                                            (Address)

                                            First Federal Savings Bank,
                                                              LaCrosse-Madison
                                               (CORPORATE SEAL)

                                            By:
                                               ---------------------------------

                                            By:
                                               ---------------------------------

                                      -14-

<PAGE>   71

                              EMPLOYMENT AGREEMENT
                       (As Amended Effective July 1, 1994)

        THIS EMPLOYMENT AGREEMENT is made effective as of this 1st day of July,
1994, by and between First Federal Savings Bank, LaCrosse-Madison, a
federally-chartered savings bank (the "Bank"), and Robert P. Abell (the
"Executive").

        WHEREAS, Executive has been employed by the Bank for a number of years,
and currently serves as its Senior Vice President and Commercial Real Estate
Lending Division Manager ("Corporate Position"); and

        WHEREAS, Executive possesses an intimate knowledge of the business and
affairs of the Bank, including its policies, markets and financial and human
resources; and

        WHEREAS, the Board of Directors of the Bank (the "Board"), recognizes
that Executive's contribution to the growth and success of the Bank has been
substantial and desires to assure the Bank of Executive's continued employment
in an executive capacity and to compensate him therefore; and

        WHEREAS, Executive is desirous of committing himself to serve the Bank
on the terms provided in this Agreement.

        NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein set forth, the Bank and Executive agree as follows:

        1. Employment. Bank shall continue to employ Executive and Executive
shall continue to serve Bank under the terms and conditions of this Agreement
(which terms and conditions are intended to amend and supercede the agreement of
July 1, 1987 as previously in effect between the parties), for the period stated
in paragraph 2 below.

        2. Term of Employment. The period of Executive's employment under this
Agreement shall commence on the date set forth above ("Commencement Date") and
shall expire on the second annual anniversary of said Commencement Date, unless
sooner terminated as provided herein. Effective as of any annual anniversary of
the Commencement Date during the term of this Agreement, the term of employment
hereunder may be extended by the action of the Bank's Board of Directors to add
one additional year to the then remaining term of employment hereunder so that
said term is annually restored to a full two-year term. The Board of Directors
or the Executive shall each provide the other with at

<PAGE>   72

least forty-five (45) days' advance written notice of any decision on their
respective parts not to extend the Agreement on the anniversary date. The term
of employment under this Agreement, as in effect from time to time, shall be
referred to as the "Employment Term."

        3. Position and Duties. Subject to Section 5(iv)(B), the Executive shall
serve in his Corporate Position, reporting to the President, and shall have
supervision and control over, and responsibility for, commercial and real estate
lending functions of the Bank and shall have such other powers and duties as may
from time to time be prescribed by the President, provided that such duties are
consistent with his present duties and with the Executive's position as an
executive officer of the Bank. The Executive shall devote substantially all his
working time and efforts to the business and affairs of the Bank.

        4. Compensation. As compensation for the services to be provided
pursuant to this Agreement, Executive shall receive from Bank the compensation
and other benefits set forth below:

           (i)   Base Salary. During the Employment Term the Executive shall
receive a base salary ("Base Salary") in such amount as may from time to time be
approved by the Board. The Base Salary shall at no time be less than the annual
base salary payable to the Executive on the date of this Agreement. Any increase
in Base Salary or other compensation granted by the Board shall in no way limit
or reduce any other obligation of the Bank under this Agreement and, once
established at an increased specified rate, Executive's Base Salary under this
Agreement shall not thereafter be reduced. Executive's Base Salary and other
compensation shall be paid in accordance with the Bank's regular payroll
practices, as from time to time in effect.

           (ii)  Bonus Payments. In addition to Base Salary, Executive shall be
entitled during the Employment Term to receive such bonus payments as the Board
may determine in accordance with the Bank's Management Incentive Plan (the
"Incentive Plan") in effect on the date of this Agreement or as the same may be
amended or modified from time to time for the Bank's executive officers.

           (iii) Other Benefits. During the Employment Term the Bank shall
provide to Executive all other benefits of employment generally made available
to the Bank's executive officers as in effect with other plans or arrangements
providing Executive with at least equivalent benefits thereunder. Executive
shall be entitled to participate in or receive benefits under any group health
and life insurance plan, pension plan, stock purchase, incentive savings, stock
option, restricted stock, stock appreciation rights and any other similar plans
or arrangements presently or hereafter made available by the Bank to its

                                      -2-

<PAGE>   73

executive officers (collectively the "Benefit Plans"), subject to and on a basis
consistent with the terms, conditions and overall administration of such Benefit
Plans. Executive shall be entitled to vacations and perquisites in accordance
with the Bank's policies as in effect from time to time for its executive
officers.

        5. Termination. This Agreement may be terminated, subject to payment of
the compensation and other benefits described below, upon the occurrence of any
of the events described below. In case of such termination, the date on which
Executive ceases to be employed under this Agreement, after giving effect to any
prior notice requirement set forth below, is referred to as the "Termination
Date."

           (i)   Death; Disability; Retirement. This Agreement shall terminate
upon the death, disability or retirement of Executive. As used in this
Agreement, the term "disability" shall mean Executive's inability, as a result
of physical or mental incapacity, to substantially perform his duties with the
Bank for a period of 180 consecutive days. Any question as to the existence of
Executive's disability upon which the Executive and the Bank cannot agree shall
be determined by a qualified independent physician mutually agreeable to
Executive and the Bank or, if the parties are unable to agree upon a physician
within ten (10) days after notice from either to the other suggesting a
physician, by a physician designated by the then president of the medical
society for the county in which Executive maintains his principal residence,
upon the request of either party. The costs of any such medical examination
shall be borne by the Bank. If Executive is terminated due to disability he
shall be paid 100% of his Base Salary at the rate in effect at the time notice
of termination is given for the remainder of the Employment Term, payable in
substantially equal monthly installments less, in each case, any disability
payments otherwise payable under plans provided by the Bank for disability or
any governmental social security or workers compensation program, and actually
paid to Executive in substantially equal monthly installments.

           As used in this Agreement, the term "retirement" shall mean
Executive's retirement in accordance with and pursuant to any retirement plan of
the Bank generally applicable to its executive officers or in accordance with
any retirement arrangement established with Executive's consent with respect to
Executive.

           If termination occurs for such reason, no additional compensation
shall be payable to the Executive under this Agreement except as specifically
provided in this Agreement. Notwithstanding anything to the contrary contained
in this Agreement, the Executive shall receive all compensation and other

                                      -3-

<PAGE>   74

benefits to which he was entitled under Section 4 through the Termination Date
and, in addition, shall receive all other benefits available to him under the
Bank's Benefit Plans as in effect on the date of death, disability or
retirement.

           (ii)  Cause. The Bank may terminate the Executive's employment under
this Agreement for Cause at any time, and thereafter the Bank's obligations
under this Agreement shall cease and terminate. Notwithstanding anything to the
contrary contained in this Agreement, Executive shall receive all compensation
and other benefits to which he was entitled under Section 4 through the
Termination Date and, in addition, shall receive all benefits available to him
under the Bank's Benefit Plans as in effect on the Termination Date. For
purposes of this Agreement, "Cause" shall mean (A) the willful and continued
failure by Executive to substantially perform his duties with the Bank (other
than failure resulting from the Executive's incapacity due to physical or mental
illness) after a written demand for substantial performance is delivered to
Executive by the Board, which demand specifically identifies the manner in which
the Board believes Executive has not substantially performed his duties, (B) any
willful act of misconduct by Executive which is materially injurious to the
Bank, monetarily or otherwise, (C) a criminal conviction of Executive for any
act involving dishonesty, breach of trust or a violation of the banking or
savings and loan laws of the State of Wisconsin or the United States, (D) a
criminal conviction of the Executive for the commission of any felony, (E) a
willful breach of fiduciary duty involving personal profit, (F) a willful
violation of any law, rule or regulation or final cease and desist order where
such violations materially, adversely, affect the Bank, (G) incompetence,
personal dishonesty or material breach of any provision of this Agreement which
would have a material adverse impact on the Bank. For purposes of this
Subsection 5(ii), no act, or failure to act, on the Executive's part shall be
deemed "willful" unless done, or omitted to be done, by the Executive not in
good faith and without reasonable belief that the action or omission was in the
best interest of the Bank.

           (iii) Voluntary Termination by Executive. Executive may voluntarily
terminate his employment under this Agreement at any time by giving at least
forty-five (45) days prior written notice to the Bank. In such event, Executive
shall receive all compensation and other benefits to which he was entitled under
Section 4 through the Termination Date and, in addition, shall receive all other
benefits available to him under the Bank's Benefit Plans as in effect on the
Termination Date.

           (iv)  Termination by Executive After Change in Control. For purposes
of this Agreement, a "change in control" shall mean a change in control with
respect to the Bank or its parent holding company of a nature that would be
required to be reported

                                      -4-

<PAGE>   75

in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the
Securities Exchange Act of 1934, as amended ("Exchange Act") or any successor
thereto; provided that, without limitation, such a change in control shall be
deemed to have occurred if (i) any "person" (as such term is used in Sections
13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities representing 25% or more of the combined voting power of the Bank or
holding company's then outstanding securities; or (ii) during any period of two
consecutive years, individuals who at the beginning of such period constitute
the Board of Directors of the Bank or company 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. The Executive may terminate his employment under this
Agreement by giving at least ninety (90) days prior written notice to the Bank
at anytime (1) within eighteen (18) months of the effective date of a "change in
control", or (2) after the occurrence, at any time subsequent to a "change in
control," of any of the following events, without Executive's express written
consent:

                 (A)   Executive is assigned to any positions, duties or
responsibilities that are less significant than his positions, duties and
responsibilities as of the time immediately prior to any change in control;

                 (B)   Executive is removed from or the Board fails to re-elect
Executive to any of his Corporate Position, except (1) in connection with
termination of Executive's employment for cause, disability or retirement, or
(2) in connection with any change in control after which the Bank is not the
continuing or surviving corporation, if the successor organization has executed
an agreement as required by Section 8(i)(A) and the removal or failure to
re-elect is limited to his Corporate Position with the Bank;

                 (C)   Executive's Base Salary is materially reduced or the
Executive experiences in any year a material reduction of the ratio of his bonus
payment to his Base Salary which is greater than the average reduction in the
ratio of bonus payments to base salaries in such year experienced by all other
material executive officers of the Bank or any other failure by the Bank to
comply with Section 4;

                 (D)   Executive is transferred to a location not within a 25
mile radius of the City of LaCrosse, Wisconsin; or

                 (E)   The Bank fails to obtain an agreement from any successor
organization as required by Section 8(i)(A).

                                      -5-

<PAGE>   76

                 (v)   Suspension or Termination Required by the OTS

                       (A)  If Executive is suspended and/or temporarily
prohibited from participating in the conduct of the Bank's affairs by a notice
served under section 8(e)(3), or section 8(g)(1) of the Federal Deposit
Insurance Act (12 U.S.C. ss. 1818(e)(3) and (g)(1), the Bank's obligations under
the Agreement shall be suspended as of the date of service of the notice unless
stayed by appropriate proceedings. If the charges in the notice are dismissed,
Bank shall (1) pay Executive all of the compensation withheld while its
obligations under this Agreement were suspended and (2) reinstate any of its
obligations which were suspended.

                       (B)  If Executive is removed and/or permanently
prohibited from participating in the conduct of the Bank's affairs by an order
issued under section 8(e)(4) or section 8(g)(1) of the Federal Deposit Insurance
Act (12 U.S.C. ss. 1818(e)(4) or (g)(1) obligations of the Bank under the
Agreement shall terminate as of the effective date of the order, but vested
rights of the Executive to compensation and to any benefits under the Bank's
Pension Plan shall not be affected.

                       (C)  If the Bank is in default as defined in section
3(x)(1) of the Federal Deposit Insurance Act, (12 U.S.C. 1813 (x)(1)) all
obligations under the Agreement shall terminate as of the date of default,
except that this paragraph shall not affect any vested rights of the Executive
under any qualified retirement plan nor, in the event the Executive terminates
prior to the date of such default, the Executive's vested rights to continue to
receive severance payments and benefits pursuant to section 5(vi) of this
Agreement.

                       (D)  All obligations under the Agreement shall be
terminated, except to the extent determined that continuation of the contract is
necessary for the continued operation of the Bank, (i) by the OTS, at the time
the FDIC or Resolution Trust Corporation ("RTC") enters into an agreement to
provide assistance to or on behalf of the Bank under the authority contained in
section 13(c) of the Federal Deposit Insurance Act; or (ii) by the OTS at the
time it approves a supervisory merger to resolve problems related to operation
of the Bank or when the Bank is determined by the OTS to be in an unsafe or
unsound condition. Any rights of the parties that have already vested, however,
shall not be affected by such action, and the Executive shall receive the
compensation and benefits set forth in section 5(vi) of this Agreement.

                       (E)  In the event that 12 C.F.R. ss. 563.39, or any
successor regulation, is repealed, this section 5(v) shall cease to be effective
on the effective date of such repeal. In the event that 12 C.F.R. ss. 563.39, or
any successor regulation, is

                                      -6-

<PAGE>   77

amended or modified, this Agreement shall be revised to reflect the amended or
modified provisions if: (1) the amended or modified provision is required to be
included in this Agreement; or (2) if not so required, the Executive requests
that the Agreement be so revised.

                 (vi)  Termination by the Bank Other Than Due to Death,
Disability, Retirement or For Cause; Termination of Executive. If this Agreement
is terminated by the Bank for any reason other than death, disability,
retirement or for cause as set forth in Section 5(i) or (ii), or is terminated
by the Executive pursuant to Section 5(iv), then, following the Date of
Termination:

                       (A)  In lieu of any further salary payments to the
Executive for a period subsequent to the Termination Date, the Executive shall
receive severance pay in the form of payments continuing for the remaining
unexpired portion of the Employment Term, fully restored as of the Termination
Date, at the times provided in Section 4(i) and 4(ii) ("Severance Payments")
and based on his highest rate of Base Salary within the 3 years preceding his
Termination Date and his total cash bonus paid in his most recently completed
calendar year of employment. In the event of a termination as a result of a
change in control, the Executive may elect to receive the Severance Payments
calculated above in one lump-sum, subject to any applicable limitations set
forth in Section 6 below; provided that the amount of Severance Payment in
connection with a change in control shall be at least equal to the particular
Executive's annual compensation as of the Termination Date.

                       (B)  In addition to the retirement benefits to which the
Executive is entitled under the Bank's Group Pension Plan, 401(k) Plan, and
ESOP, as amended from time to time (the "Retirement Plans"), the Executive shall
receive additional severance retirement benefits payable under this Agreement,
which benefits (except as provided below) shall be determined in accordance
with, and payable in the form and at the times provided in, the respective
Retirement Plans. Such benefits shall be determined as if the Executive were
fully vested under each Retirement Plan and had accumulated (after any
termination under this Agreement) the additional years of credited service
and/or allocations and Employer contributions under each of said Plans that he
would have received had he continued in the employment of the Bank for the
entire Employment Term at the levels of Base Salary and cash bonus used to
calculate the Severance Payments pursuant to subsection 5(vi)(A) above.

                       (C)  In addition to all other amounts payable under this
section 5, Executive shall be entitled to coverage under any group health, life,
dental, or other group insurance plans (as well as under any individual life
coverages provided by the Bank on Executive's behalf) for the remainder of the
Employment Term

                                      -7-

<PAGE>   78

upon his continued payment of any required employee contribution at the rate in
effect as of his Termination Date and to receipt of all benefits otherwise
payable to Executive under (i) any tax qualified Bank plan or agreement relating
to pension or retirement benefits, and (ii) any other Bank plan or agreement,
regardless of tax status, established to provide deferred compensation,
retirement, or other benefits for the Executive.

                       (D)  If Executive is under fifty-five (55) years of age
on the Termination Date, Executive shall take reasonable steps to obtain
employment and thereby mitigate the amount of compensation and benefits due
under Section 5(vi); provided, however, that Executive shall not be required to
accept a position other than one within a 25 mile radius of the City of
LaCrosse, Wisconsin. If the Executive is fifty-five (55) years of age or older
on the Termination Date or if Executive determines upon the advice of a
qualified independent physician that he is physically or medically unable to
substantially perform duties with another employer comparable to those performed
by him with the Bank, the Executive shall have no obligation to seek other
employment. Notwithstanding the foregoing, and regardless of age, during any
portion of the Employment term remaining after the Termination Date, if the
Executive becomes employed on a full-time basis by another employer, then to the
extent the Executive shall receive compensation, benefits or service credit from
such other employer, the aggregate amount of all compensation to be paid and
benefits and service credit to be provided by the Bank under this Agreement
shall be correspondingly reduced.

                       (E)  The requirement for mitigation, as set forth in
Section 5(vi)(D) above, shall not apply with respect to any termination under
Section 5(iv) subsequent to a change in control.

        6. Limitations on Termination Compensation.

           (i)   In the event that the severance benefits payable to the
Executive under Subsection 5(vi) ("Severance Benefits"), or any other payments
or benefits received or to be received by the Executive from the Bank (whether
payable pursuant to the terms of this Agreement, any other plan, agreement or
arrangement with the Bank or any corporation ("Affiliate") affiliated with the
Bank within the meaning of Section 1504 of the Internal Revenue Code of 1954, as
amended (the "Code"), in the opinion of tax counsel selected by the Bank's
independent auditors and acceptable to the Executive, constitute "parachute
payments" within the meaning of Section 280G(b)(2) of the Code, and the present
value of such "parachute payments" equals or exceeds three (3) times the average
of the annual compensation payable to the Executive by the Bank (or an
Affiliate) and includible in the Executive's gross income for federal income tax
purposes for the five (5)

                                      -8-

<PAGE>   79

calendar years preceding the year in which a change in ownership or control of
the Bank occurred ("Base Amount"), such severance benefits shall be reduced to
an amount the present value of which (when combined with the present value of
any other payments or benefits otherwise received or to be received by the
Executive from the Bank (or an Affiliate) that are deemed "parachute payments")
is equal to 2.99 times the Base Amount, notwithstanding any other provision to
the contrary in this Agreement. The Severance Benefits shall not be reduced if
(A) the Executive shall have effectively waived his receipt or enjoyment of any
such payment or benefit which triggered the applicability of this Section 6, or
(B) in the opinion of such tax counsel, the Severance Benefits (in its full
amount or as partially reduced, as the case may be) plus all other payments or
benefits which constitute "parachute payments" within the meaning of Section
280G(b)(2) of the code are reasonable compensation for services actually
rendered, within the meaning of Section 280G(b)(4) of the code, and such
payments are deductible by the Bank. The Base Amount shall include every type
and form of compensation includible in the Executive's gross income in respect
of his employment by the Bank (or an Affiliate), except to the extent otherwise
provided in temporary or final regulations promulgated under Section 280G(b) of
the Code. For purposes of this Section 6, a "change in ownership or control"
shall have the meaning set forth in Section 280G(b) of the code and any
temporary or final regulations promulgated thereunder. The present value of any
non-cash benefit or any deferred cash payment shall be determined by the Bank's
independent auditors in accordance with the principles of Sections 280G(b)(3)
and (4) of the Code.

           (ii)  Executive shall have the right to request that the Bank obtain
a ruling from the Internal Revenue Service ("Service") as to whether any or all
payments or benefits determined by such tax counsel are, in the view of the
Service, "parachute payments" under Section 280G. If a ruling is sought pursuant
to the Executive's request, no severance benefits payable under this Agreement
shall be made to the Executive until after fifteen (15) days from the date of
such ruling. For purposes of this Subsection 6(ii), the Executive and the Bank
agree to be bound by the Service's ruling as to whether payments constitute
"parachute payments" under Section 280G. If the service declines, for any
reason, to provide the ruling requested, the tax counsel's opinion provided
under Subsection 6(i) with respect to what payments or benefits constitute
"parachute payments" shall control, and the period during which the Severance
Benefits may be deferred shall be extended to a date fifteen (15) days from the
date of the Service's notice indicating that no ruling would be forthcoming.

                                      -9-

<PAGE>   80

           (iii) In the event that Section 280G, or any successor statute, is
repealed, this Section 6 shall cease to be effective on the effective date of
such repeal. The parties to this Agreement recognize that final regulations
under Section 280G of the Code may affect the amounts that may be paid under
this Agreement and agree that, upon issuance of such final regulations this
Agreement may be modified as in good faith deemed necessary in light of the
provisions of such regulations to achieve the purposes of this Agreement, and
that consent to such modifications shall not be unreasonably withheld.

        7. Noncompetition After Voluntary Termination And Duty of
Confidentiality.

           (a)   Noncompetition. Executive acknowledges that the development of
personal contacts and relationships is an essential element of the Bank's
business, that the Bank has invested considerable time and money in his
development of such contacts and relationships, that the Bank could suffer
irreparable harm if he were to leave employment and solicit the business of
Bank's customers, and that it is reasonable to protect the Bank against
competitive activities by Executive. Executive covenants and agrees, in
recognition of the foregoing and in consideration of the mutual promises
contained herein, that in the event of a voluntary termination of employment by
Executive pursuant to Section 5(iii), or upon expiration of this Agreement as a
result of Executive's election not to continue automatic annual renewals,
Executive shall not accept employment in La Crosse, Dane or St. Croix counties
with any Significant Competitor of the Bank for a period of eighteen (18) months
following such termination. For purposes of this Agreement, the term Significant
Competitor means any financial institution including, but not limited to, any
commercial bank, savings bank, savings and loan association, credit union, or
mortgage banking corporation which, at the time of termination of Executive's
employment or during the period of this covenant not to compete, (i) maintains a
home, branch or other office in any of said counties, or (ii) has originated
within any of said counties $10,000,000 or more in residential mortgage loans
during any consecutive twelve (12) month period within the thirty-six (36)
months prior to Executive's termination and inclusive of the period covered by
this covenant.

           Executive agrees that the non-competition provisions set forth herein
are necessary for the protection of the Bank and are reasonably limited as to
(i) the scope of activities affected, (ii) their duration and geographic scope,
and (iii) their effect on Executive and the public. In the event Executive
violates the non-competition provisions set forth herein, Bank shall be
entitled, in addition to its other legal remedies, to enjoin the employment of
Executive with any Significant Competitor for the period set forth herein. If
Executive violates this covenant and

                                      -10-

<PAGE>   81

the Bank brings legal action for injunctive or other relief, the Bank shall not,
as a result of the time involved in obtaining such relief, be deprived of the
benefit of the full period of the restrictive covenant. Accordingly, the
covenant shall be deemed to have the duration specified herein, computed from
the date such relief is granted, but reduced by any period between commencement
of the period and the date of the first violation. In addition to such other
relief as may be awarded, if the Bank is the prevailing party it shall be
entitled to reimbursement for all reasonable costs, including attorneys' fees,
incurred in enforcing its rights hereunder.

           (b)   Duty of Confidentiality. Executive acknowledges that he will,
as the result of services performed on behalf of the Bank, obtain or otherwise
become aware of confidential and/or proprietary information regarding the Bank's
affairs, including, but not limited to, information relative to (i) customers,
customer accounts and customer lists, (ii) marketing, (iii) customer development
strategies, (iv) financial and economic plans and projections, and (v) other
similar information. Executive agrees that following termination of his
employment for any reason, he will treat all such matters as confidential and
will refrain both from divulging such information in any manner and from the use
of such information for his benefit or for the benefit of any employer
(regardless of whether such employer would constitute a Significant Competitor
under this Agreement) or third-party.

        8. General Provisions.

           (i)   Successors; Binding Agreement.

                 (A)   The Bank will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Bank ("successor
organization") to expressly assume and agree to perform this Agreement in the
same manner and to the same extent that the Bank would be required to perform it
if no such succession had taken place. As used in this Agreement, "Bank" shall
mean the Bank as hereinbefore defined and any successor to its business and/or
assets as aforesaid which executes and delivers the agreement provided for in
this Section 8 or which otherwise becomes bound by the terms and provisions of
this Agreement by operation of this Agreement or law. Failure of the Bank to
obtain such agreement prior to the effectiveness of any such succession shall be
a breach of this Agreement and shall entitle the Executive as his exclusive
remedy to compensation from the Bank in the same amount and on the same terms as
he would be entitled to under this agreement if he terminated his employment
under Section 5(iv). For purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Termination
Date.

                                      -11-

<PAGE>   82

                 (B)   No right or interest to or in any payments or benefits
under this Agreement shall be assignable or transferrable in any respect by the
Executive, nor shall any such payment, right or interest be subject to seizure,
attachment or creditor's process for payment of any debts, judgments, or
obligations of the Executive.

                 (C)   This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the Executive and his heirs, beneficiaries and
personal representatives and the Bank and any successor organization.

           (ii)  Notice. For the purpose of this Agreement, notices and all
other communications provided for in the Agreement shall be in writing and shall
be deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed as
follows:

           If to the Bank:

           605 State Street
           LaCrosse, WI 54601
           Attn:    Secretary

or if to Executive at the address set forth below the Executive's signature line
of this Agreement, or to such other address as either party may have furnished
to the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon receipt.

           (iii) Expenses. If any legal proceeding is necessary to enforce or
interpret this Agreement, or to recover damages for breach of it, the prevailing
party, shall be entitled to recover from the other party reasonable attorneys'
fees and necessary costs and disbursements incurred in such litigation, in
addition to any other relief to which such prevailing party may be entitled.

           Notwithstanding the foregoing, in the event of a legal proceeding to
enforce or interpret the terms of this Agreement following a change in control,
Executive shall be entitled to recover from Bank, regardless of the outcome of
said action, necessary costs and disbursements incurred together with actual
attorney's fees up to the greater of (A) $25,000, or (B) thirty percent (30%) of
the amount in dispute between the parties [which amount, for purposes of this
Agreement, shall be deemed to be the difference between the highest written
settlement offer from the Bank and the lowest written settlement offer
(exclusive of any claim for consequential, punitive, or other forms or amounts
of damages not based on specific contract terms) from Executive]. Recovery by
Executive of attorneys fees and costs as provided

                                      -12-

<PAGE>   83

herein following a change in control shall be in addition to any other relief to
which Executive may be entitled.

           (iv)   Withholding. The Bank shall be entitled to withhold from
to be paid to the Executive under this Agreement any federal, state or
local withholding or other taxes of charges which it is from time to time
required to withhold. the Bank shall be entitled to rely on an opinion of
counsel if any question as to the amount or requirement of any such withholding
shall arise.

           (v)    Miscellaneous. No provision of this Agreement may be amended,
waived or discharged unless such amendment, waiver or discharge is agreed to in
writing and signed by the Executive and such officer as may be specifically
designated by the board. No waiver by either party hereto at any time of any
breach by the 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. No agreements or representations, oral or otherwise,
express or implied, with respect to the subject matter hereof have been made by
either party which are not expressly set forth in this Agreement. The validity,
interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Wisconsin.

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

           (vii)  Counterparts. This Agreement may be executed in several
counterparts, each of which together will constitute one and the same
instrument.

           (viii) Headings. Headings contained in this Agreement are for
reference only and shall not affect the meaning or interpretation of any
provision of this Agreement.

           (ix)   Effective Date. The effective date of this Agreement shall be
the date indicated in the first paragraph of this Agreement, notwithstanding the
actual date of execution by any party.

     IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as of
the date first above written.

                                    Executive:  Robert P. Abell

                                    ------------------------------------

                                      -13-

<PAGE>   84

                                    ------------------------------------
                                    (Address)

                                    First Federal Savings Bank,
                                                     LaCrosse-Madison
                                       (CORPORATE SEAL)

                                     By:
                                          -------------------------------

                                     By:
                                          -------------------------------

                                      -14-<PAGE>   1
                                                                    Exhibit 10.4

                          MELLON FINANCIAL CORPORATION
                     LONG-TERM PROFIT INCENTIVE PLAN (1996)

I.       Purposes

The purposes of this Long-Term Profit Incentive Plan (1996), as amended and
restated, are to promote the growth and profitability of Mellon Financial
Corporation ("Corporation") and its Affiliates, to provide officers and other
key executives of the Corporation and its Affiliates with the incentive to
achieve long-term corporate objectives, to attract and retain officers and other
key executives of outstanding competence, and to provide such officers and key
executives with an equity interest in the Corporation.

II.      Definitions

The following terms shall have the meanings shown:

2.1 "Affiliate" shall mean any corporation, limited partnership or other
organization in which the Corporation owns, directly or indirectly, 50% or more
of the voting power.

2.2 "Award" shall mean Options, SARs, Performance Units, Restricted Stock,
Deferred Share Awards and Deferred Cash Incentive Awards, as defined in and
granted under the Plan.

2.3 "Board of Directors" shall mean the Board of Directors of the Corporation.

2.4 "Change in Control Event" shall mean any of the following events:

         (a) The occurrence with respect to the Corporation of a "control
transaction", as such term is defined in Section 2542 of the Pennsylvania
Business Corporation Law of 1988, as of August 15, 1989; or

         (b) Approval by the stockholders of the Corporation of (i) any
consolidation or merger of the Corporation where either (x) the holders of
voting stock of the Corporation immediately before the merger or consolidation
will not own more than 50% of the voting shares of the continuing or surviving
corporation immediately after such merger or consolidation or (y) the Incumbent
Directors immediately before the merger or consolidation will not hold more than
50% (rounded to the next whole person) of the seats on the board of directors of
the continuing or surviving corporation, or (ii) any sale, lease or exchange or
other transfer (in one transaction or a series of related transactions) of all
or substantially all the assets of the Corporation; or

         (c) A change of 25% (rounded to the next whole person) in the
membership of the Board of Directors within a 12-month period, unless the
election or nomination for election by stockholders of each new director within
such period (i) was approved by the vote of 85%

<PAGE>   2

(rounded to the next whole person) of the directors then still in office who
were in office at the beginning of the 12-month period and (ii) was not as a
result of an actual or threatened election with respect to directors or any
other actual or threatened solicitation of proxies by or on behalf of any person
other than the Board of Directors. As used in this Section 2.4, the term
"Incumbent Director" means as of any time a director of the Corporation (x) who
has been a member of the Board of Directors continuously for at least 12 months
or (y) whose election or nomination as a director within such period met the
requirements of clauses (i) and (ii) of the preceding sentence.

2.5 "Code" shall mean the Internal Revenue Code of 1986, as amended, and any
successor statute of similar import, and regulations thereunder, in each case as
in effect from time to time. References to sections of the Code shall be
construed also to refer to any successor sections.

2.6 "Committee" shall mean the Human Resources Committee of the Board of
Directors, or any successor committee.

2.7 "Common Stock" shall mean Common Stock of the Corporation.

2.8 "Deferred Cash Incentive Award" shall mean an Award granted pursuant to
Article VII of the Plan.

2.9 "Deferred Share Award" shall mean an Award granted pursuant to Article VIII,
Section 8.7, of the Plan.

2.10 "Fair Market Value" shall mean the closing price of a share of Common Stock
in the New York Stock Exchange Composite Transactions on the relevant date, or,
if no sale shall have been made on such exchange on that date, the closing price
in the New York Stock Exchange Composite Transactions on the last preceding day
on which there was a sale.

2.11 "Incentive Stock Option" shall mean an option qualifying under Section 422
of the Code granted by the Corporation.

2.12 "Options" shall mean rights to purchase shares of Common Stock granted
pursuant to Article IV of the Plan.

2.13 "Participant" shall mean an eligible employee who is granted an Award under
the Plan.

2.14 "Performance Goals" shall mean goals established by the Committee in
compliance with Section 162(m) of the Code covering a performance period set by
the Committee and based on maintenance of or changes in one or more of the
following objective business criteria: earnings or earnings per share; return on
equity, assets or investment; revenues; expenses; stock price; market share;
charge-offs; or non-performing assets. Performance Goals shall be established by
the Committee in connection with the grant of Performance Units and Deferred
Cash Incentive Awards and may be established in connection with the grant of
Restricted Stock. Performance

                                       2
<PAGE>   3

Goals may be applicable to a business unit or to the Corporation as a whole and
need not be the same for each of the foregoing types of Awards or for each
individual receiving the same type of Award. The Committee may retain the
discretion to reduce (but not to increase) the portion of any Award which will
be earned based on achieving Performance Goals.

2.15 "Performance Units" shall mean units granted pursuant to Article VI of the
Plan.

2.16 "Plan" shall mean the Mellon Financial Corporation Long-Term Profit
Incentive Plan (1996), as amended and restated.

2.17 "Reload Option Rights" and "Reload Options" shall have the meanings set
forth in Article IV of the Plan.

2.18 "Restricted Stock" shall mean any share of Common Stock granted pursuant to
Article VIII of the Plan.

2.19 "Rule 16b-3" shall mean Rule 16b-3 promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as amended from
time to time, or any successor rule.

2.20 "SAR" shall mean any stock appreciation right granted pursuant to Article V
of the Plan.

III      General

3.1 Administration.

         (a) The Plan shall be administered by the Committee, each member of
which shall at the time of any action under the Plan be (i) a "non-employee
director" as then defined under Rule 16b-3 and (ii) an "outside director" as
then defined under Section 162(m) of the Code.

         (b) The Committee shall have the authority in its sole discretion from
time to time: (i) to designate the employees eligible to participate in the
Plan; (ii) to grant Awards under the Plan; (iii) to prescribe such limitations,
restrictions and conditions upon any such Award as the Committee shall deem
appropriate; and (iv) to interpret the Plan, to adopt, amend and rescind rules
and regulations relating to the Plan, and to make all other determinations and
take all other action necessary or advisable for the implementation and
administration of the Plan. A majority of the Committee shall constitute a
quorum, and the action of a majority of members of the Committee present at any
meeting at which a quorum is present, or acts unanimously adopted in writing
without the holding of a meeting, shall be the acts of the Committee.

         (c) All actions of the Committee shall be final, conclusive and binding
upon the Participant. No member of the Committee shall be liable for any action
taken or decision made in good faith relating to the Plan or any Award
thereunder.

                                       3
<PAGE>   4

3.2 Eligibility. The Committee may grant Awards under the Plan to any full-time
corporate officer, key executive, administrative or professional employee of the
Corporation or any of its Affiliates. In granting such Awards and determining
their form and amount, the Committee shall give consideration to the functions
and responsibilities of the employee, his or her potential contributions to
profitability and to the sound growth of the Corporation and such other factors
as the Committee may deem relevant.

3.3 Effective and Expiration Dates of Plan. The amended and restated Plan shall
become effective on the date (herein referred to as the "effective date")
approved by the holders of a majority of the shares present or represented and
entitled to vote at the 1996 Annual Meeting of Shareholders of the Corporation.
No Award shall be granted after December 31, 2005, except that Reload Options
may be granted pursuant to Reload Option Rights then outstanding.

3.4 Aggregate and Individual Limitations on Awards.

         (a) The aggregate number of shares of Common Stock reserved for issue
under the Plan on and after its effective date shall not exceed 58,400,000
shares, subject to adjustments pursuant to Section 9.7. No more than 4,000,000
shares of Common Stock may be issued as Restricted Stock. Shares of Common Stock
which may satisfy Awards granted under the Plan may be either authorized and
unissued shares of Common Stock or authorized and issued shares of Common Stock
held in the Corporation's treasury or issued and outstanding shares of Common
Stock held by any employee stock benefit trust established by the Corporation.

         (b) For purposes of paragraph (a) of this Section 3.4, shares of Common
Stock that are actually issued upon exercise of an Option shall be counted
against the total number of shares reserved for issuance, except that when
Options are exercised by the delivery of shares of Common Stock the charge
against the shares reserved for issuance shall be limited to the net new shares
of Common Stock issued. In addition to shares of Common Stock actually issued
pursuant to the exercise of Options, there shall be deemed to have been issued
under the Plan a number of shares of Common Stock equal to (i) the number of
shares issued pursuant to SARs which shall have been exercised pursuant to the
Plan, (ii) the number of Performance Units which shall have been paid in shares
of Common Stock pursuant to the Plan and (iii) the number of shares of
Restricted Stock which shall have been granted pursuant to the Plan. For
purposes of paragraph (a) of this Section 3.4, the payment of a Deferred Cash
Incentive Award shall not be deemed to result in the issuance of any shares of
Common Stock in addition to those issued pursuant to the exercise of the related
Option.

         (c) For purposes of paragraph (a) of this Section 3.4, any shares of
Common Stock subject to an Option which for any reason either terminates
unexercised, or expires except by reason of the exercise of a related SAR, and
any shares of Restricted Stock granted under this Plan or any shares of Common
Stock covered by a Deferred Share Award which are surrendered or forfeited to
the Corporation, shall again be available for issuance under the Plan.

         (d) The maximum number of shares of Common Stock available for grants
of Options or SARs to any one Participant under the Plan during a calendar year
shall not exceed

                                       4
<PAGE>   5

4,000,000 shares. The limitation in the preceding sentence shall be interpreted
and applied in a manner consistent with Section 162(m) of the Code. To the
extent consistent with Section 162(m) of the Code, a Reload Option (A) shall be
deemed to have been granted at the same time as the original underlying Option
grant and (B) shall not be deemed to increase the number of shares covered by
the original underlying Option.

IV.      Options

4.1 Grant. The Committee may from time to time, subject to the provisions of the
Plan, in its discretion grant Options to Participants to purchase for cash or
shares of Common Stock the number of shares of Common Stock allotted by the
Committee. In the discretion of the Committee, any Options or portions thereof
granted pursuant to this Plan may be designated as Incentive Stock Options. The
aggregate Fair Market Value (determined as of the time the Incentive Stock
Option is granted) of Common Stock and any other stock of the Corporation or any
parent, subsidiary or affiliate corporation with respect to which such Incentive
Stock Options are exercisable for the first time by a Participant in any
calendar year under all plans of the Corporation, its subsidiaries and
affiliates shall not exceed $100,000 or such sum as may from time to time be
permitted under Section 422 of the Code. The Committee shall also have the
authority, in its discretion, to award reload option rights ("Reload Option
Rights") in conjunction with the grant of Options with the effect described in
Section 4.7. Reload Option Rights may be awarded either at the time an Option is
granted or, except in the case of Incentive Stock Options, at any time
thereafter during the term of the Option.

4.2 Option Agreements. The grant of any Option shall be evidenced by a written
"Stock Option Agreement" executed by the Corporation and the Participant,
stating the number of shares of Common Stock subject to the Option evidenced
thereby and such other terms and conditions of the Option as the Committee may
from time to time determine.

4.3 Option Price. The option price for the Common Stock covered by any Option
granted under the Plan shall in no case be less than 100% of the Fair Market
Value of said Common Stock on the date of grant. Except as otherwise provided in
the Stock Option Agreement, the option price of an Option may be paid in whole
or in part by delivery to the Corporation of a number of shares of Common Stock
having a Fair Market Value on the date of exercise equal to the option price or
portion thereof to be paid; provided, however, that no shares may be delivered
in payment of the option price of an Option unless such shares, or an equivalent
number of shares, shall have been held by the Participant (or other person
entitled to exercise the Option) for at least six months prior to such delivery.

4.4 Term of Options. The terms of each Option granted under the Plan shall be
for such period as the Committee shall determine, but for not more than 10 years
from the date of grant thereof. Each Option shall be subject to earlier
termination as provided in Sections 4.6 and 5.4 hereof.

4.5 Exercise of Options. Each Option granted under the Plan shall be exercisable
on such date or dates during the term thereof and for such number of shares of
Common Stock as may be

                                       5
<PAGE>   6

provided in the Stock Option Agreement evidencing its grant. Pursuant to the
terms of the Stock Option Agreement or otherwise, the Committee may change the
date on which an outstanding Option becomes exercisable; provided, however, that
an exercise date designated in a Stock Option Agreement may not be changed to a
later date without the consent of the holder of the Option. Notwithstanding any
other provision of this Plan, unless expressly provided to the contrary in the
applicable Stock Option Agreement, all Options granted under the Plan shall
become fully exercisable immediately and automatically upon the occurrence of a
Change in Control Event.

4.6 Termination of Employment. Except as otherwise provided in the Stock Option
Agreement:

         (a) If termination of employment of a Participant is due to retirement
after age 55 with the written consent of the Corporation or an Affiliate, the
Participant shall have the right to exercise his or her Options within the
period of two years after such retirement, to the extent such Options were
exercisable at the time of retirement; provided, however, that such
post-retirement exercise period may be extended by action of the Committee for
up to the full term of such Options.

         (b) If a Participant shall die while employed by the Corporation or an
Affiliate or within a period following termination of employment during which
the Option remains exercisable under paragraphs (a), (c) or (d) of this Section
4.6, his or her Options may be exercised to the extent exercisable by the
Participant at the time of his or her death within a period of two years from
the date of death by the executor or administrator of the Participant's estate
or by the person or persons to whom the Participant shall have transferred such
right by will or by the laws of descent and distribution.

         (c) If termination of employment of a Participant is by reason of the
total and permanent disability of the Participant covered by a disability plan
of the Corporation or an Affiliate then in effect, the Participant shall have
the right to exercise his or her Options within the period of two years after
the date of termination of employment, to the extent such Options were
exercisable at the time of termination of employment.

         (d) In the event the employment of a Participant is terminated by the
Corporation or an Affiliate without cause within two years after the occurrence
of a Change in Control Event, the Participant shall have the right to exercise
his or her Options within one year after the date such termination occurred, to
the extent such Options were exercisable at the time of such termination of
employment. For purposes of this paragraph, "without cause" shall mean any
termination of employment where it cannot be shown that the employee has (i)
willfully failed to perform his or her employment duties for the Corporation or
an Affiliate, (ii) willfully engaged in conduct that is materially injurious to
the Corporation or an Affiliate, monetarily or otherwise, or (iii) committed
acts that constitute a felony under applicable federal or state law or
constitute common law fraud. For purposes of this paragraph, no act or failure
to act on the Participant's part shall be considered "willful" unless done, or
omitted to be done, by him or her not in good

                                       6
<PAGE>   7

faith and without reasonable belief that his or her action or omission was in
the best interest of the Corporation or Affiliate.

         (e) In the event all employment of a Participant with the Corporation
or an Affiliate is terminated for any reason other than as stated in the
preceding paragraphs (a) - (d), his or her Options shall terminate upon such
termination of employment.

         (f) Notwithstanding the foregoing, in no event shall an Option granted
hereunder be exercisable after the expiration of its term.

4.7 Reload Option Rights. Reload Option Rights if awarded with respect to an
Option shall entitle the original grantee of the Option (and unless otherwise
determined by the Committee, in its discretion, only such original grantee),
upon exercise of the Option or any portion thereof through delivery of shares of
Common Stock, automatically to be granted on the date of such exercise an
additional Option (a "Reload Option") (i) for that number of shares of Common
Stock not greater than the number of shares delivered by the Participant in
payment of the option price of the original Option and any withholding taxes
related thereto, (ii) having an option price not less than 100% of the Fair
Market Value of the Common Stock covered by the Reload Option on the date of
grant of such Reload Option, (iii) having an expiration date not later than the
expiration date of the original Option so exercised and (iv) otherwise having
terms permissible for the grant of an Option under the Plan. Subject to the
preceding sentence and the other provisions of the Plan, Reload Option Rights
and Reload Options shall have such terms and be subject to such restrictions and
conditions, if any, as shall be determined, in its discretion, by the Committee.
In granting Reload Option Rights, the Committee, may, in its discretion, provide
for successive Reload Option grants upon the exercise of Reload Options granted
hereunder. Unless otherwise determined by the Committee, in its discretion,
Reload Option Rights shall entitle the Participant to be granted Reload Options
only if the underlying Option to which they relate is exercised by the
Participant during employment with the Corporation or any of its Affiliates.
Except as otherwise specifically provided herein or required by the context, the
term Option as used in this Plan shall include Reload Options granted hereunder.

                                       7
<PAGE>   8

V.       SARs

5.1 Grant. SARs may be granted by the Committee as stand-alone SARs or in tandem
with all or any part of any Option granted under the Plan. SARs which are
granted in tandem with an Option may be granted either at the time of the grant
of such Option or, except in the case of an Incentive Stock Option, at any time
thereafter during the term of such Option.

5.2 SAR Agreements. The grant of any SAR shall be evidenced by the related Stock
Option Agreement or by a written "Stock Appreciation Rights Agreement" executed
by the Corporation and the Participant, stating the number of shares of Common
Stock covered by the SAR, the base price of a stand-alone SAR and such other
terms and conditions of the SAR as the Committee may from time to time
determine. The base price for stand-alone SARs (the "base price") shall be such
price as the Committee, in its sole discretion, shall determine but shall not be
less than 100% of the Fair Market Value per share of the Common Stock covered by
the stand-alone SAR on the date of grant.

5.3 Payment. SARs shall entitle the Participant upon exercise to receive the
amount by which the Fair Market Value of a share of Common Stock on the date of
exercise exceeds the option price of any tandem Option or the base price of a
stand-alone SAR, multiplied by the number of shares in respect of which the SAR
shall have been exercised. In the sole discretion of the Committee, the
Corporation may pay all or any part of its obligation arising out of a SAR
exercise in (i) cash, (ii) shares of Common Stock or (iii) cash and shares of
Common Stock. Payment shall be made by the Corporation as soon as practicable
after the date of exercise.

5.4 Exercise of Tandem Award. If SARs are granted in tandem with an Option (i)
the SARs shall be exercisable at such time or times and to such extent, but only
to such extent, that the related Option shall be exercisable, (ii) the exercise
of the related Option shall cause a share for share reduction in the number of
SARs which were granted in tandem with the Option; and (iii) the payment of SARs
shall cause a share for share reduction in the number of shares covered by such
Option.

5.5 Termination of Employment. Except as otherwise provided in the Stock
Appreciation Rights Agreement:

         (a) If termination of employment of a Participant is due to retirement
after age 55 with the written consent of the Corporation or an Affiliate, the
Participant shall have the right to exercise his or her stand-alone SARs within
the period of two years after such retirement, to the extent such SARs were
exercisable at the time of retirement; provided, however, that such
post-retirement exercise period may be extended by action of the Committee for
up to the full term of such SARs.

         (b) If a Participant shall die while employed by the Corporation or an
Affiliate thereof or within a period following termination of employment during
which the SARs remain exercisable under paragraphs (a), (c) or (d) of this
Section 5.5, his or her stand-alone SARs may be exercised to the extent
exercisable by the Participant at the time of his or her death within a

                                       8
<PAGE>   9

period of two years from the date of death by the executor or administrator of
the Participant's estate or by the person or persons to whom the Participant
shall have transferred such right by will or by the laws of descent and
distribution.

         (c) If termination of employment of a Participant is by reason of the
total and permanent disability of the Participant covered by a disability plan
of the Corporation or an Affiliate then in effect, the Participant shall have
the right to exercise his or her stand-alone SARs within the period of two years
after the date of termination of employment, to the extent such SARs were
exercisable at the time of termination of employment.

         (d) In the event all employment of a Participant with the Corporation
or an Affiliate is terminated without cause within two years after the
occurrence of a Change in Control Event, the Participant shall have the right to
exercise his or her stand-alone SARs within one year after the date such
termination occurred, to the extent such stand-alone SARs were exercisable at
the time of such termination of employment. For purposes of this paragraph,
"without cause" shall have the meaning provided in Section 4.6(d).

         (e) In the event all employment of a Participant with the Corporation
or an Affiliate is terminated for any reason other than as stated in the
preceding paragraphs (a) - (d), his or her stand-alone SARs shall terminate upon
such termination of employment.

         (f) Notwithstanding the foregoing, in no event shall a stand-alone SAR
granted hereunder be exercisable after the expiration of its term.

VI.      Performance Units

6.1 Grant. The Committee may from time to time grant one or more Performance
Units to eligible employees. Performance Units shall represent the right of a
Participant to receive shares of Common Stock or cash at a future date upon the
achievement of Performance Goals which are established by the Committee.

6.2 Performance Unit Agreements. The grant of any Performance Unit shall be
evidenced by a written "Performance Unit Agreement", executed by the Corporation
and the Participant stating the amount of cash and/or number of shares of Common
Stock covered by the Performance Unit and such other terms and conditions of the
Performance Unit as the Committee may determine, including the performance
period to be covered by the award and the Performance Goals to be achieved.

6.3 Payment. After the completion of a performance period, performance during
such period shall be measured against the Performance Goals set by the
Committee. If the Performance Goals are met or exceeded, the Committee shall
certify that fact in writing in the Committee minutes or elsewhere and certify
the amount to be paid to the Participant under the Performance Unit. In the sole
discretion of the Committee, the Corporation may pay all or any part of its
obligation under the Performance Unit in (i) cash, (ii) shares of Common Stock
or (iii) cash and

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<PAGE>   10

shares of Common Stock. Payment shall be made by the Corporation as soon as
practicable after the certification of achievement of the Performance Goals.

6.4 Termination of Employment. To be entitled to receive payment under a
Performance Unit, a Participant must remain in the employment of the Corporation
or an Affiliate through the end of the applicable performance period; except
that this limitation shall not apply where a Participant's employment is
terminated by the Corporation or an Affiliate without cause (as defined in
Section 4.6(d)) following the occurrence of a Change in Control Event.

6.5 Maximum Cash Payment. The maximum amount that may be paid in cash or in Fair
Market Value of Common Stock (to be valued no later than three days after the
date the Committee certifies the achievement of the Performance Goals) under all
Performance Units paid to any one Participant during a calendar year shall in no
event exceed $1,000,000.

VII.     Deferred Cash Incentive Awards

7.1 Granting of Deferred Cash Incentive Awards. Deferred Cash Incentive Awards,
as hereafter described, may be granted in conjunction with all or any part of
any Option (other than an Incentive Stock Option) granted under the Plan, either
at the time of the grant of such Option or at any time thereafter during the
term of such Option.

7.2 Deferred Cash Incentive Agreements. Deferred Cash Incentive Awards shall
entitle the holder of an Option to receive from the Corporation an amount of
cash equal to the aggregate exercise price of all Options exercised by such
Participant in accordance with the terms of a written "Deferred Cash Incentive
Agreement" executed by the Corporation and the Participant. Deferred Cash
Incentive Agreements shall specify the conditions under which Deferred Cash
Incentive Awards become payable, the conditions under which Deferred Cash
Incentive Awards are forfeited and any other terms and conditions as the
Committee may from time to time determine. Under no circumstances may a Deferred
Cash Incentive Award be applied to any purpose other than the payment of the
exercise price of a properly exercised related Option.

7.3 Pre-established Performance Goals.

         (a) Except in the event of death, total and permanent disability
covered by a disability plan of the Corporation or an Affiliate then in effect
or the occurrence of a Change in Control Event, any Deferred Cash Incentive
Award shall only be earned and become payable if the Corporation achieves
Performance Goals which are established for a calendar year or longer period by
the Committee. After the completion of a performance period, performance during
such period shall be measured against the Performance Goals set by the
Committee. If the Performance Goals are met or exceeded, the Committee shall
certify that fact in writing in the Committee minutes or elsewhere.

         (b) The amount payable to a Participant upon achieving the Performance
Goals set by the Committee for the Deferred Cash Incentive Award shall be equal
to the option price of the related Option, which shall be the Fair Market Value
of the shares of Common Stock subject to

                                       10
<PAGE>   11

the Option on the date the Option is granted. No individual may in any calendar
year receive payment of Deferred Cash Incentive Awards with respect to Options
for more than 3,000,000 shares of Common Stock.

VIII.    Restricted Stock

8.1 Award of Restricted Stock. The Committee may from time to time, subject to
the provisions of the Plan and such other terms and conditions as it may
prescribe, grant one or more shares of Restricted Stock to eligible employees.
In the discretion of the Committee, shares of Restricted Stock may be granted
alone, in addition to or in tandem with other Awards granted under the Plan
and/or cash awards made outside of the Plan.

8.2 Restricted Stock Agreements. Each award of Restricted Stock under the Plan
shall be evidenced by a written Restricted Stock Agreement executed by the
Corporation and the Participant in such form as the Committee shall prescribe
from time to time in accordance with the Plan.

8.3 Restrictions. Shares of Restricted Stock issued to a Participant may not be
sold, assigned, transferred, pledged, hypothecated or otherwise disposed of,
except by will or the laws of descent and distribution, for such period as the
Committee shall determine, beginning on the date on which the Award is granted
(the "Restricted Period"). The Committee may also impose such other restrictions
and conditions on the shares or the release of the restrictions thereon as it
deems appropriate, including the achievement of Performance Goals established by
the Committee. In determining the Restricted Period of an Award, the Committee
may provide that the foregoing restrictions shall lapse with respect to
specified percentages of the awarded shares on specified dates following the
date of such Award or all at once.

8.4 Stock Certificate. As soon as practicable following the making of an award,
the Restricted Stock shall be registered in the Participant's name in
certificate or book-entry form. If a certificate is issued, it shall bear an
appropriate legend referring to the restrictions and it shall be held by the
Corporation on behalf of the Participant until the restrictions are satisfied.
If the shares are registered in book-entry form, the restrictions shall be
placed on the book-entry registration. Except for the transfer restrictions, and
subject to such other restrictions, if any, as determined by the Committee, the
Participant shall have all other rights of a holder of shares of Common Stock,
including the right to receive dividends paid with respect to the Restricted
Stock and the right to vote such shares. As soon as is practicable following the
date on which transfer restrictions on any shares lapse, the Corporation shall
deliver to the Participant the certificates for such shares, provided that the
Participant shall have complied with all conditions for delivery of such shares
contained in the Restricted Stock Agreement or otherwise reasonably required by
the Corporation.

8.5 Termination of Employment.

         (a) Unless expressly provided to the contrary in the applicable
Restricted Stock Agreement, all restrictions placed upon Restricted Stock shall
lapse immediately upon (i)

                                       11
<PAGE>   12

termination of the Participant's employment with the Corporation or an Affiliate
if, and only if, such termination is by reason of the Participant's death, total
and permanent disability covered by a disability plan of the Corporation or an
Affiliate then in effect or (except where Performance Goals have been set for
the Award) retirement after age 55 with the written consent of the Corporation
or an Affiliate or (ii) the occurrence of a Change in Control Event. In
addition, the Committee may in its discretion (except where Performance Goals
have been set for the Award) allow restrictions on Restricted Stock to lapse
prior to the date specified in a Restricted Stock Agreement.

         (b) Except as otherwise provided in the Restricted Stock Agreement,
upon the effective date of a termination for any reason not specified in
paragraph (a) of this Section 8.5, all shares then subject to restrictions
immediately shall be forfeited to the Corporation without consideration or
further action being required of the Corporation. For purposes of this paragraph
(b), the effective date of a Participant's termination shall be the date upon
which such Participant ceases to perform services as an employee of the
Corporation or any of its Affiliates, without regard to accrued vacation,
severance or other benefits or the characterization thereof on the payroll
records of the Corporation or Affiliate.

8.6 Maximum Award. The compensation payable to a Participant upon achieving any
Performance Goals set by the Committee for Restricted Stock shall be equal to
the Fair Market Value of a share of Common Stock for each share of Restricted
Stock that is granted. No individual Participant may in any one calendar year
receive payment of a Restricted Stock Award (where Performance Goals have been
set for the Award) covering more than 400,000 shares of Common Stock.

8.7 Deferred Share Award.

         (a) A Deferred Share Award shall entitle the Participant to receive
from the Corporation a number of shares of Common Stock on a deferred payment
date specified by the Participant. Participants shall be entitled to elect a
Deferred Share Award as permitted by the Committee (a "Deferred Share Award
Election").

         (b) Except as otherwise provided by the Committee, a Deferred Share
Award Election (i) may be offered only with respect to a potential Restricted
Stock Award or an outstanding Restricted Stock Award with at least one year to
derestriction, (ii) shall have derestriction conditions identical as nearly as
practicable to those of the Restricted Stock Award, (iii) shall specify a
payment commencement date and form, which may occur no earlier than January 1 of
the year following termination of employment on or after age 55 with five
credited years of employment with the Corporation or an Affiliate and no later
than January 1 of the year following age 70, in one lump sum payment or in equal
annual payments over 5 or 10 years; provided, however, that payment following
derestriction of the Award upon a termination of employment prior to age 55 or
on or after age 55 with less than five years of credited employment with the
Corporation or an Affiliate shall be made in a lump sum payment no later than
March 1 of the year following such termination of employment.

                                       12
<PAGE>   13

         (c) Except as otherwise provided by the Committee, a Deferred Share
Award shall entitle the Participant to receive dividend equivalents payable no
earlier than the date payment is elected for the Deferred Share Award. Dividend
equivalents shall be calculated on the number of shares covered by the Deferred
Share Award as soon as practicable after the date dividends are payable on the
Common Stock.

         (d) A Deferred Share Award shall be evidenced by a written Deferred
Share Award Agreement executed by the Corporation and the Participant in such
form as the Committee shall prescribe from time to time in accordance with the
Plan.

         (e) Deferred Share Awards shall be subject to the same aggregate and
individual limitations set under the Plan for Restricted Stock Awards and shall
be subject to adjustment as provided in Section 9.7.

IX.      Miscellaneous

9.1 General Restriction. Each Award under the Plan shall be subject to the
requirement that, if at any time the Committee shall determine that any listing
or registration of the shares of Common Stock or any consent or approval of any
governmental body, or any other agreement or consent is necessary or desirable
as a condition of the granting of an Award or issuance of Common Stock or cash
in satisfaction thereof, such Award may not be consummated unless such
requirement is satisfied in a manner acceptable to the Committee.

9.2 Non-Assignability. No Award under the Plan shall be assignable or
transferable by a Participant, except by will or by the laws of descent and
distribution or by such other means as the Committee may approve from time to
time. During the life of the Participant, such Award shall be exercisable only
by such Participant or by such other persons as the Committee may approve from
time to time.

9.3 Withholding Taxes. Whenever the Corporation proposes or is required to issue
or transfer shares of Common Stock under the Plan, the Corporation shall have
the right to require the Participant to remit to the Corporation an amount
sufficient to satisfy any federal, state, local or other withholding tax
requirements prior to the delivery of any certificate for such shares. Whenever
under the Plan payments are to be made in cash, such payments shall be net of an
amount sufficient to satisfy any federal, state, local or other withholding tax
requirements.

9.4 No Right to Employment. Nothing in the Plan or in any agreement entered into
pursuant to it shall confer upon any Participant the right to continue in the
employment of the Corporation or an Affiliate or affect any right which the
Corporation or an Affiliate may have to terminate the employment of such
Participant.

9.5 Non-Uniform Determinations. The Committee's determinations under the Plan
(including without limitation its determinations of the employees to receive
Awards, the form, amount and timing of such Awards, the terms and provisions of
such Awards and the establishment of performance goals and performance periods)
need not be uniform and may be

                                       13
<PAGE>   14

made by it selectively among employees who receive, or are eligible to receive,
Awards under the Plan, whether or not such persons are similarly situated.

9.6 No Rights as Shareholders. Participants as such shall have no rights as
shareholders of the Corporation, except as provided in Section 8.4, unless and
until shares of Common Stock are registered in their name.

9.7 Adjustments of Stock. If there is any change in the Common Stock by reason
of any stock split, stock dividend, spin-off, split-up, spin-out,
recapitalization, merger, consolidation, reorganization, combination or exchange
of shares, or any other similar transaction, the number and kind of shares
available for grant under the Plan or subject to or granted pursuant to an Award
and the price thereof, or other numeric limitations under the Plan, as
applicable, shall be appropriately adjusted by the Committee or the Board.

9.8 Amendment or Termination of the Plan. The Committee or the Board may at any
time terminate the Plan or any part thereof and may from time to time amend the
Plan as it may deem advisable. Any such action of the Committee or the Board may
be taken without the approval of the Corporation's shareholders, but only to the
extent that such shareholder approval is not required by applicable law or
regulation, including specifically Rule 16b-3, or the rules of any stock
exchange on which the Common Stock is listed. The termination or amendment of
the Plan shall not, without the consent of the Participant, adversely affect
such Participant's rights under an Award previously granted.

9.9 Awards to Foreign Nationals and Employees Outside the United States. To the
extent the Committee deems it necessary, appropriate or desirable to comply with
foreign law or practice and to further the purpose of the Plan, the Committee
may, without amending the Plan, (i) establish special rules applicable to Awards
granted to Participants who are foreign nationals, are employed outside the
United States, or both, including rules that differ from those set forth in this
Plan, and (ii) grant Awards to such Participants in accordance with those rules.

9.10 Previously Granted Awards. Awards outstanding on the date of shareholder
approval of this amended and restated Plan shall continue to be governed by and
construed in accordance with the Plan as in effect prior to amendment and
restatement; except that outstanding Deferred Cash Incentive Awards shall be
subject to the limitations of new Section 7.3(a) and (b) of the Plan and, to the
extent required by Section 162(m) of the Code, a grant of a Reload Option shall
be subject to the limitation of new Section 3.4(d) of the Plan.

December 1999

                                       14

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