Document:

Exhibit 10iii.1

 

MANAGEMENT

CONTIINUITY  AGREEMENT

 

 

This

Management Continuity Agreement (“Agreement”) is made and entered into as of

this sixteenth day of December, 1999. by and between Illini Corporation, an

Illinois corporation with an office at 3200 West Ties Avenue, Springfield,

Illinois 62707 (the “Company”), and Burnard K. McHone, whose address is 3800

North West Territory Drive, Springfield, Illinois, 62707 (the “Officer”).

 

WITNESSETH

 

WHEREAS,

the Officer is employed by the Company and the Company’s

subsidiary, Illini Bank, an Illinois banking corporation (the “Bank”), as an

officer of the Company and the Bank, respectively, with the title and salary

current at the date of this Agreement as set forth in this Agreement; and

 

WHEREAS,

the Company wishes to attract and retain highly qualified

executives and to achieve this goal it is in the best interests of the Company

and the Bank to secure the continued services of the Officer regardless of a

change in control of the Company; and

 

WHEREAS,

the Company is willing, in order to provide the Officer a measure of security

with respect to his employment with the Company and the Bank in the event of a

change in control of the Company so that the Officer will be in a position to

act with respect to a possible change in control of the Company in the best

interests of the Company and its shareholders, without concern as to the

Officer’s own financial security, and in order to induce the Officer to remain

in employment with the Company and the Bank, to agree that employment of the

Officer shall be terminable only for cause for a limited period after a change

in control of the Company.

 

NOW,

THEREFORE, the Company and the Officer agree as follows:

 

Section 1

Employment

 

1.1    Term. The Company shall

employ the Officer and the Officer shall remain in employment with the Company

and the Bank for a period of three years from the Commencement Date (herein

called the Term). Annually, effective on the anniversary of the 

 

 

Commencement Date, the Term of this Agreement shall be extended for one

additional year, unless the Board of Directors of the Company takes action to

not extend the Term prior to such anniversary of the Commencement Date of this

Agreement. The Term may be otherwise extended by written amendment to this Agreement,

which amendment specifically refers to this Agreement, signed by the Company

and the Officer.

 

1.2   Compensation.

As compensation for services provided to the Company and the Bank by the

Officer pursuant to this Agreement, the Company shall cause the Bank to pay the

Officer an annual base salary of $111,500.00, which salary may be increased

from time to time by the Company or the Bank. The Officer shall also be

eligible to actively participate in any other compensation and benefit plans

generally available to executive employees of the Company or the Bank of like

grade and salary including, but not limited to, retirement plans, group life,

disability, accidental death and dismemberment, travel and accident, and health

and dental insurance plans, incentive compensation plans, stock compensation

plans, stock option plans, deferred compensation plans, supplemental retirement

plans and excess benefit plans. Such other compensation and benefit plans are

hereinafter referred to collectively as the “Compensation and Benefits Plans”.

 

1.3    Duties. The

Officer shall perform such duties and functions as are described in Schedule A

to this Agreement. Such duties shall be updated annually by the Boards of

Directors of the Company and the Bank, or by a duly authorized committee of the

Boards of Directors of the Company and the Bank. In the event of an actual or

potential Change in Control (as defined in Section 2.9), the Officer shall

perform his duties and functions in a manner that is consistent with the best interest

of the Company and its shareholders, without regard to the effect that the

potential or actual Change in Control may have on the Officer personally.

 

1.4    Duty of Loyalty. The

Officer shall work full-time for the Company and the Bank only, provided that:

 

(a)     he may also engage in charitable, civic and

other similar activities;

 

(b)             with the consent of

the Board of Directors of the Company, he may serve as a director of a business

organization not competing with the Company; and

 

(c)              he may make such investments

and reinvestment in business activities as shall not require a substantial

portion of his time.

 

2

 

1.5   Duty Not to

Disclose Confidential Information. The Officer acknowledges

that his relationship with the Company and the Bank is one of high trust and

confidence, and that he has access to Confidential Information (as hereinafter

defined) of the Company and the Bank. The Officer shall not, directly or

indirectly, communicate, deliver, exhibit or provide any Confidential

Information to any person, firm, partnership, corporation, organization or

entity, except as required in the normal course of the Officer’s duties. The

duties contained in this paragraph shall be binding upon the Officer during the

time that he is employed by the Company and following the termination of such

employment. Such duties will not apply to any such Confidential Information

which is or becomes in the public domain through no action on the part of the

Officer, is generally disclosed to third parities by the Company without

restriction on such third parties, or is approved for release by written

authorization of the Board of Directors of the Company. The term “Confidential

Information” shall mean any and all confidential, proprietary, or secret

information relating to the Company’s or the Bank’s business, services,

customers, business operations, or activities and any and all trade secrets,

products, methods of conducting business, information, skills, knowledge,

ideas, know-how or devices used in, developed by, or pertaining to the

Company’s or the Bank’s business and not generally known, in whole or in part,

in any trade or industry in which the Company or the Bank is engaged.

 

Section 2

Termination

 

2.1 Termination of Agreement. Unless sooner

terminated in accordance with the terms of this Section 2, this Agreement shall

terminate at the expiration of the Term, and all obligations hereunder shall

terminate except as specifically set forth in Section 2.5. The Officer may,

with the consent of the Company, continue in the employ of the Company and the

Bank after the expiration of the Term on such terms and conditions as may be

agreed upon by the Company and the Officer.

 

2.2 Termination by  the Officer. The officer may

voluntarily terminate this Agreement by providing thirty days notice to the

Company, in which event the Company shall have no further obligation to the

Officer hereunder from the date of such termination and the Officer shall have

no further obligation to the Company hereunder except the duty to not disclose

Confidential Information in accordance with Section 1.5. In the event the

Officer’s employment with the Company and the Bank is terminated due to the

Officer’s death, the Company shall have no further obligation to the Officer,

his heirs or legatees hereunder from the date of such termination, except to

pay any benefits due under the Compensation and

 

3

 

Benefit Plans. In the

event the Officer’s employment with the Company and the Bank is terminated due

to the Officer’s Permanent Disability, the Company shall have no further

obligation to the Officer hereunder from the date of such termination, except,

to pay benefits due under the Compensation and Benefit Plans. For purposes of

this Agreement, the term “Permanent Disability” means a physical or mental

condition of the Officer which:

 

(a)                         has

continued uninterrupted for six months;

 

(b)                        is

expected to continue indefinitely; and

 

(c)                         is

determined by the Company to render the Officer incapable of adequately

performing his duties under Section 1.3 of this Agreement.

 

2.3  Termination by  the Company Without Cause. The

company may terminate this Agreement without cause prior to the Firm Term (as

hereinafter defined), by providing thirty days notice to the Officer. In such

event, the Officer shall have no further obligation to the Company hereunder,

except the duty to not disclose Confidential Information in accordance with

Section 1.5, and the Company shall have no further obligation to the Officer

hereunder from the date of such termination except (i) to pay to the Officer

the salary payments described in Section 1.2, in the amount in effect on the

date of termination, for a period of twelve months from the date of termination,

(ii) to pay to the Officer any other benefits due under the Compensation and

Benefit Plans for a period of twelve months from the date of termination, and

(iii) to pay to the Officer reasonable expenses of out placement within the

financial institutions industry during the twelve month period following the

date of termination; provided, however, out placement expenses shall be paid

only upon actually incurring such expenses and Officer’s furnishing of evidence

thereof to the Company and shall not include moving or relocation expenses; and

provided, however, that any benefit to be provided by a Compensation and

Benefit Plan may be provided by the Company through cash of equivalent value or

through a nonqualified arrangement or arrangements if, in the judgment of the

Company, permitting the Officer to participate in such plan after the date of

termination would adversely affect the tax status of such plan.

 

2.4   Termination by the

Company With Cause. Prior to or during the Firm Term, the

Company may terminate this Agreement for Cause. For purposes of this Agreement,

Cause shall mean;

 

(a)             the

Officer’s willful and material breach of the provisions of this Agreement after

the Board of Directors delivers a written demand to cure such breach, which

specifically identifies the

 

4

 

manner in which the Board

of Directors believes that the Officer has not substantially performed his

duties, or

 

(b)            the

Officer willfully engages in illegal conduct or gross misconduct which

materially and demonstrably injures the Company or the Bank.

 

For purposes of

determining whether “Cause” exists, no act or failure to act, on the Officer’s

part shall be considered “willful,” unless it is done, or omitted to be done,

by the Officer in bad faith or without reasonable belief by the Officer that

his action or omission was in the best interests of the Company. In the event

of the Officer’s termination for Cause, the Company will have no further

obligation to the Officer under the Agreement from the date of such

termination.

 

 

2.5 Termination following Change in Control. In

the event there is a Change in Control of the Company, as defined in Section

2.6, during the Term, and:

 

(a)            within the period

commencing three months prior to the date of a Change in Control and ending six

months following the date of the Change in Control (the “Firm Term”), the

Officer’s employment hereunder is terminated by the Company other than for

Cause, as defined in Section 2.4; or

 

(b)           within the Firm Term,

the Officer resigns from his employment hereunder upon thirty days written

notice given to the Company within thirty days following a material change in

the Officer’s title, authorities or duties, in effect immediately prior to the

Change in Control, a reduction in the compensation or a reduction in benefits

provided pursuant to this Agreement or the Compensation and Benefit Plans below

the amount of compensation and benefits in effect immediately prior to the

Change in Control, or a change of the Officer’s principal place of employment

without his consent to a city more than 25 miles from Springfield, Illinois,

 

then the Officer shall

have no further obligation to the Company hereunder, except the duty not to

disclose Confidential Information in accordance with Section 1.5, and the

Company shall have no further obligation to the Officer hereunder from the date

of termination except (i) to pay to the Officer the salary payments described

in Section 1.2, in the amount in effect on the date of termination, for a period

of twelve months from the date of termination, (ii) to pay to the Officer any

other benefits due under the Compensation and Benefit Plans for a period of

twelve months from the date of termination and (iii) to pay to the Officer

reasonable expenses of out placement within the financial institutions industry

during the twelve month period following the date of termination; provided,

however, out placement expenses shall be paid only upon actually incurring such

expenses and Officer’s furnishing of evidence thereof to the Company and

 

5

 

shall not include moving

or relocation expenses and provided, however, that any benefit to be provided

by a Compensation  and Benefits Plan may be provided by the Company through cash

of equivalent value or through a nonqualified arrangement or arrangements if.

in the judgment of the Company, permitting the Officer to participate in such

plan after the date of termination would adversely affect the tax status of

such plan.

 

2.6       Change

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

(a)            on the fifth day

preceding the scheduled expiration date of a tender offer by, or exchange offer

by any corporation, person, other entity or group (other than the Company or

any of its wholly owned subsidiaries), to acquire Voting Stock of the Company

if:

 

(i)            after giving effect to

such offer such corporation, person, other entity or group would own 50% or

more of the Voting Stock of the Company~

 

(ii)         there shall have been

filed documents with the Securities and Exchange Commission in connection

therewith (or, if no such filing is required, public evidence that the offer

has already commenced); and

 

(iii)      such corporation, person

other entity or group has secured all required regulatory approvals to own or

control 50% or more of the Voting Stock of the Company;

 

(b)             if the shareholders

of the Company approve a definitive agreement to merger or consolidate the

Company with or into another corporation in a transaction in which neither the

Company nor any of its wholly owned subsidiaries will be the surviving

corporation, or to sell or otherwise dispose of all or substantially all of the

Company’s assets to any corporation, person, other entity or group (other than

the Company or any of its wholly owned subsidiaries), and such definitive

agreement is consummated;

 

(c)              if any corporation,

person, other entity or group (other than the Company or any of its wholly

owned subsidiaries) becomes the Beneficial Owner (as that term is defined in

the Securities and Exchange Commission’s Rule 13d-3 under the Securities

Exchange Act of 1934) of stock representing 50% or more of the Voting Stock of

the Company; or

 

(d)             if during any period

of two consecutive years Continuing Directors cease to comprise a majority of

the Company’s Board of Directors.

 

6

 

The term “Continuing

Director’ means:

 

(a)              any member of the

Board of Directors of the Company at the beginning of any period of two

consecutive years; and

 

 (b)          any person who subsequently becomes a member

of the Board of Directors of the Company, if:

 

(i)                   such person’s

nomination for election or election to the Board of Directors of the Company is

recommended or approved by resolution of a majority of the Continuing

Directors; or

 

(ii)                such person is

included a nominee in a proxy statement of the Company distributed when a

majority of the Board of Directors of the Company consists of Continuing

Directors.

 

“Voting

Stock” shall mean those shares of the Company entitled to vote generally in the

election of directors.

 

2.7

Termination of Related Officers. The parties agree that in

the event Officer’s employment by the Company is terminated for any reason,

Officer will immediately resign from all other positions or offices held with

the Company, including any directorships with the Company or the Bank.

 

2.8   Officer’s Costs of Enforcement.

The Company shall pay all expenses of the Officer, including but not limited to

attorney’s fees, incurred in enforcing payments by the Company pursuant to this

Agreement.

 

Section 3

Miscellaneous

 

3.1    Assignment of Officer’s Rights. The

Officer may not assign, pledge or otherwise transfer any of the benefits of

this Agreement either before or after termination of employment, and any

purported assignment, pledge or transfer of any payment to be made by the

Company hereunder shall be void and of no effect. No payment to be made to the

Officer hereunder shall be subject to the claims of creditors of the Officer.

 

3.2      Agreements Binding on Successor.

This Agreement shall be binding and inure to the benefit of the parties hereto

and their respective successors, assigns, personal representatives, heirs,

legatees and beneficiaries.

 

7

 

3.3   Notices. Any notice

required or desired to be given under this Agreement shall be deemed given if

in writing and sent by first class mail to the Officer or the Company at his or

its address as set forth above, or to such other address of which either the

Officer or the Company shall notify the other in writing.

 

3.4   Waiver of Breach. The

waiver by either party of a breach of any provision of this Agreement shall not

operate or be construed as a waiver of any subsequent breach by either the Officer

or the Company.

 

3.5  Entire  Agreement. This

Agreement contains the entire understanding of the parties and supersedes the

Personal Service Contract between the Officer, the Company and the Bank, which

was effective October 30, 1996. It may be modified or amended only by an

agreement in writing signed by the party against whom enforcement of any change

or amendment is sought.

 

3.6  Severability of Provisions.

If for any reason any paragraph, term or provision of this Agreement is held to

be invalid or unenforceable, all other valid provisions herein shall remain in

full force and effect and all paragraphs, terms and provisions of this

Agreement shall be deemed to be severable in nature.

 

3.7   Governing Law. This Agreement is made in,

and shall be governed by, the laws of the State of Illinois.

 

 

IN

WITNESS WHEREOF, the parties have executed this Agreement as

of the day and year first set forth above.

 

 

	

   

  	

  /s/ Burnard McHone

  	

   

  	

   

  
	

   

  	

  Officer

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  ILLINI CORPORATION

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:  

  	

  /s/Thomas Black

  	

   

  	

   

  
	

   

  	

  Its:

  	

  Chairman

  	

   

  	

   

  

 

8Exhibit 10iii.2

 

MANAGEMENT

CONTINUITY  AGREEMENT

 

 

This Management

Continuity Agreement (“Agreement”) is made and entered into as of this

sixteenth day of December, 1999, by and between Illini Corporation, an Illinois

corporation with an office at 3200 West Ties Avenue, Springfield, Illinois

62707 (the “Company”), and James L. Adkins, whose address is 309 South Vine,

Williamsville, Illinois, 626937 (the “Officer”).

 

WITNESSETH

 

WHEREAS, the Officer is employed by the

Company and the Company’s subsidiary, Illini Bank, an Illinois banking

corporation (the “Bank”), as an officer of the Company and the Bank,

respectively, with the title and salary current at the date of this Agreement

as set forth in this Agreement; and

 

WHEREAS, the Company wishes to attract and

retain highly qualified executives and to achieve this goal it is in the best

interests of the Company and the Bank to secure the continued services of the

Officer regardless of a change in control of the Company; and

 

WHEREAS, the Company is willing, in order

to provide the Officer a measure of security with respect to his employment

with the Company and the Bank in the event of a change in control of the

Company so that the Officer will be in a position to act with respect to a

possible change in control of the Company in the best interests of the Company

and its shareholders, without concern as to the Officer’s own financial

security, and in order to induce the Officer to remain in employment with the

Company and the Bank, to agree that employment of the Officer shall be

terminable only for cause for a limited period after a change in control of the

Company.

 

NOW, THEREFORE, the Company and the Officer

agree as follows:

 

 

Section

1

Employment

 

1.1   Term. The

Company shall employ the Officer and the Officer shall remain in employment

with the Company and the Bank for a period of three years from the Commencement

Date (herein called the Term). Annually, effective on the anniversary of the 

 

 

Commencement Date, the Term of this Agreement shall be extended for one

additional year, unless the Board of Directors of the Company takes action to

not extend the Term prior to such anniversary of the Commencement Date of this

Agreement. The Term may be otherwise extended by written amendment to this

Agreement, which amendment specifically refers to this Agreement, signed by the

Company and the Officer.

 

1.2   Compensation.

As compensation for services provided to the Company and the Bank by the

Officer pursuant to this Agreement, the Company shall cause the Bank to pay the

Officer an annual base salary of $70,000.00, which salary may be increased from

time to time by the Company or the Bank. The Officer shall also be eligible to

actively participate in any other compensation and benefit plans generally

available to executive employees of the Company or the Bank of like grade and

salary including, but not limited to, retirement plans, group life,

disability~, accidental death and dismemberment, travel and accident, and

health and dental insurance plans, incentive compensation plans, stock

compensation plans, stock option plans, deferred compensation plans,

supplemental retirement plans and excess benefit plans. Such other compensation

and benefit plans are hereinafter referred to collectively as the “Compensation

and Benefits Plans”.

 

1.3   Duties.

The Officer shall perform such duties and functions as are described in

Schedule A to this Agreement. Such duties shall be updated annually by the

Boards of Directors of the Company and the Bank, or by a duly authorized

committee of the Boards of Directors of the Company and the Bank. In the event

of an actual or potential Change in Control (as defined in Section 2.9), the

Officer shall perform his duties and functions in a manner that is consistent

with the best interest of the Company and its shareholders, without regard to

the effect that the potential or actual Change in Control may have on the

Officer personally.

 

1.4   Duty of Loyalty.

The Officer shall work full-time for the Company and the Bank only, provided

that:

 

(a)    he may also engage in charitable, civic and

other similar activities;

 

(b)           with the consent of the

Board of Directors of the Company, he may serve as a director of a business

organization not competing with the Company; and

 

(c)            he may make such

investments and reinvestment in business activities as shall not require a

substantial portion of his time.

 

2

 

1.5   Duty Not to

Disclose Confidential Information. The Officer acknowledges

that his relationship with the Company and the Bank is one of high most and

confidence and that he has access to Confidential Information (as hereinafter

defined) of the Company and the Bank. The Officer shall not, directly or

indirectly, communicate, deliver, exhibit or provide any Confidential

Information to any person, firm, partnership corporation, organization or

entity, except as required in the normal course of the Officer’s duties. The

duties contained in this paragraph shall be binding upon the Officer during the

time that he is employed by the Company and following the termination of such

employment. Such duties will not apply to any such Confidential Information

which is or becomes in the public domain through no action on the part of the

Officer, is generally disclosed to third parities by the Company without

restriction on such third parties, or is approved for release by written

authorization of the Board of Directors of the Company. The term “Confidential

Information” shall mean any and all confidential, proprietary, or secret

information relating to the Company’s or the Bank’s business, services,

customers, business operations, or activities and any and all trade secrets,

products, methods of conducting business, information, skills, knowledge,

ideas, know-how or devices used in, developed by, or pertaining to the

Company’s or the Bank’s business and not generally known, in whole or in part,

in any trade or industry in which the Company or the Bank is engaged.

 

Section

2

Termination

 

2.1 Termination of Agreement. Unless sooner  terminated

in accordance with the terms of this Section 2, this Agreement shall terminate

at the expiration of the Term, and all obligations hereunder shall terminate

except as specifically set forth in Section 2.5. The Officer may, with the consent of

the Company, continue in the employ of the Company and the Bank after the

expiration of the Term on such terms and conditions as may be agreed upon by

the Company and the Officer.

 

2.2  Termination by  the Officer. The officer may

voluntarily terminate this Agreement by providing thirty days notice to the

Company, in which event the Company shall have no further obligation to the

Officer hereunder from the date of such termination and the Officer shall have

no further obligation to the Company hereunder except the duty to not disclose

Confidential Information in accordance with Section 1.5. In the event the

Officer’s employment with the Company and the Bank is terminated due to the

Officer’s death, the Company shall have no further obligation to the Officer,

his heirs or legatees hereunder from the date of such termination, except to

pay any benefits due under the Compensation and Benefit Plans. In the event the

Officer’s employment with the Company and the Bank is terminated due to the

Officer’s Permanent Disability, the Company shall have no further obligation to

the Officer hereunder from the date of such termination, except, to pay

benefits due under the Compensation and Benefit Plans. For purposes of this

Agreement, the term “Permanent Disability” means a physical or mental condition

of the Officer which:

 

3

 

(a)           has continued

uninterrupted for six months;

 

(b)          is expected to continue

indefinitely; and

 

(c)           is determined by the

Company to render the Officer incapable of adequately performing his duties

under Section 1.3 of this Agreement.

 

2.3 Termination by the Company Without Cause. The

company may terminate this Agreement without cause prior to the Firm Term (as

hereinafter defined), by providing thirty days notice to the Officer. In such

event, the Officer shall have no further obligation to the Company hereunder,

except the duty to not disclose Confidential Information in accordance with

Section 1.5,

and the Company shall have no further obligation to the Officer

hereunder from the date of such termination except (i) to pay to the Officer

the salary payments described in Section 1.2, in the amount in effect on the

date of termination, for a period of twelve months from the date of

termination, (ii) to pay to the Officer any other benefits due under the

Compensation and Benefit Plans for a period of twelve months from the date of

termination, and (iii) to pay to the Officer reasonable expenses of out

placement within the financial institutions industry during the twelve month

period following the date of termination; provided, however, out placement

expenses shall be paid only upon actually incurring such expenses and Officer’s

furnishing of evidence thereof to the Company and shall not include moving or

relocation expenses; and provided, however, that any benefit to be provided by

a Compensation and Benefit Plan may be provided by the Company through cash of

equivalent value or through a nonqualified arrangement or arrangements if, in

the judgment of the Company, permitting the Officer to participate in such plan

after the date of termination would adversely affect the tax status of such

plan.

 

2.4   Termination by the

Company With Cause. Prior to or during the Firm Term, the

Company may terminate this Agreement for Cause. For purposes of this Agreement,

Cause shall mean;

 

(a)           the Officer’s willful

and material breach of the provisions of this Agreement after the Board of

Directors delivers a written demand to cure such breach, which specifically

identifies the

 

4

 

manner

in which the Board of Directors believes that the Officer has not substantially

performed his duties, or

 

(b)          the Officer willfully

engages in illegal conduct or gross misconduct which materially and demonstrably

injures the Company or the Bank.

 

For purposes of

determining whether “Cause” exists, no act or failure to act, on the Officer’s

part shall be considered “willful,” unless it is done, or omitted to be done,

by the Officer in bad faith or without reasonable belief by the Officer that

his action or omission was in the best interests of the Company. In the event

of the Officer’s termination for Cause, the Company will have no further

obligation to the Officer under the Agreement from the date of such

termination.

 

2.5 Termination following Change in Control. In

the event there is a Change in Control of the Company, as defined in Section

2.6, during the Term, and:

 

(a)           within the period

commencing three months prior to the date of a Change in Control and ending six

months following the date of the Change in Control (the “Firm Term”), the

Officer’s employment hereunder is terminated by the Company other than for

Cause, as defined in Section 2.4; or

 

(b)          within the Firm Term,

the Officer resigns from his employment hereunder upon thirty days written

notice given to the Company within thirty days following a material change in

the Officer’s title, authorities or duties, in effect immediately prior to the

Change in Control, a reduction in the compensation or a reduction in benefits

provided pursuant to this Agreement or the Compensation and Benefit Plans below

the amount of compensation and benefits in effect immediately prior to the

Change in Control, or a change of the Officer’s principal place of employment

without his consent to a city more than 25 miles from Springfield, Illinois,

 

then the Officer shall

have no further obligation to the Company hereunder, except the duty not to

disclose Confidential Information in accordance with Section 1.5, and the Company

shall have no further obligation to the Officer hereunder from the date of

termination except (i) to pay to the Officer the salary payments described in

Section 1.2, in the amount in effect on the date of termination, for a period

of twelve months from the date of termination, (ii) to pay to the Officer any

other benefits due under the Compensation and Benefit Plans for a period of

twelve months from the date of termination and (iii) to pay to the Officer

reasonable expenses of out placement within the financial institutions industry

during the twelve month period following the date of termination; provided,

however, out placement expenses shall be paid only upon actually incurring such

expenses and Officer’s furnishing of evidence thereof to the Company and

 

5

 

shall not include moving

or relocation expenses and provided, however, that any benefit to be provided

by a Compensation and Benefits Plan may be provided by the Company through cash

of equivalent value or through a nonqualified arrangement or arrangements if.

in the judgment of the Company, permitting the Officer to participate in such

plan after the date of termination would adversely affect the tax status of

such plan.

 

2.6        Change

in Control Defined. A Change in Control of the Company shall have

occurred:

 

(a)           on the fifth day

preceding the scheduled expiration date of a tender offer by, or exchange offer

by any corporation, person, other entity or group (other than the Company or

any of its wholly owned subsidiaries), to acquire Voting Stock of the Company

if:

 

(i)             after giving effect

to such offer such corporation, person, other entity or group would own 50% or

more of the Voting Stock of the Company;

 

(ii)          there shall have been

filed documents with the Securities and Exchange Commission in connection

therewith (or, if no such filing is required, public evidence that the offer

has already commenced); and

 

(iii) such corporation,

person other entity or group has secured all required regulatory approvals to

own or control 50% or more of the Voting Stock of the Company;

 

(b)           if the shareholders of

the Company approve a definitive agreement to merger or consolidate the Company

with or into another corporation in a transaction in which neither the Company

nor any of its wholly owned subsidiaries will be the surviving corporation, or

to sell or otherwise dispose of all or substantially all of the Company’s

assets to any corporation, person, other entity or group (other than the

Company or any of its wholly owned subsidiaries), and such definitive agreement

is consummated;

 

(c)            if any corporation,

person, other entity or group (other than the Company or any of its wholly

owned subsidiaries) becomes the Beneficial Owner (as that term is defined in

the Securities and Exchange Commission’s Rule 13d-3 under the Securities

Exchange Act of 1934) of stock representing 50% or more of the Voting Stock of the

Company; or

 

(d)         if

during any period of two consecutive years Continuing Directors cease to

comprise a majority of the Company’s Board of Directors.

 

6

 

The term “Continuing

Director’ means:

 

(a)            any member of the

Board of Directors of the Company at the beginning of any period of two

consecutive years; and

(b)           any person who

subsequently becomes a member of the Board of Directors of the Company if:

 

(i)             such person’s

nomination for election or election to the Board of Directors of the Company is

recommended or approved by resolution of a majority of the Continuing

Directors; or

 

(ii)          such person is included

a nominee in a proxy statement of the Company distributed when a majority of

the Board of Directors of the Company consists of Continuing Directors.

 

“Voting Stock” shall mean

those shares of the Company entitled to vote generally in the election of

directors.

 

2.7   Termination of

Related Officers. The parties agree that in the event

Officer’s employment by the Company is terminated for any reason, Officer will

immediately resign from all other positions or offices held with the Company,

including any directorships with the Company or the Bank.

 

2.8   Officer’s Costs of

Enforcement. The Company shall pay all expenses of the

Officer, including but not limited to attorney’s fees, incurred in enforcing

payments by the Company pursuant to this Agreement.

 

Section

3

Miscellaneous

 

3.1   Assignment of

Officer’s Rights. The Officer may not assign, pledge or

otherwise transfer any of the benefits of this Agreement either before or after

termination of employment, and any purported assignment, pledge or transfer of

any payment to be made by the Company hereunder shall be void and of no effect.

No payment to be made to the Officer hereunder shall be subject to the claims

of creditors of the Officer.

 

3.2   Agreements Binding

on Successor. This Agreement shall be binding and inure to

the benefit of the parties hereto and their respective successors, assigns,

personal representatives, heirs, legatees and beneficiaries.

 

7

 

3.3   Notices. Any notice

required or desired to be given under this Agreement shall be deemed given if

in writing and sent by first class mail to the Officer or the Company at his or

its address as set forth above, or to such other address of which either the

Officer or the Company shall notify the other in writing.

 

3.4   Waiver of Breach. The

waiver by either party of a breach of any provision of this Agreement shall not

operate or be construed as a waiver of any subsequent breach by either the

Officer or the Company.

 

3.5   Entire Agreement. This

Agreement contains the entire understanding of the parties and supersedes the

Personal Service Contract between the Officer, the Company and the Bank, which

was effective October 30, 1996. It may be modified or amended only by an agreement

in writing signed by the party against whom enforcement of any change or

amendment is sought.

 

3.6   Severability of Provisions.

If for any reason any paragraph, term or provision of this Agreement is held to

be invalid or unenforceable, all other valid provisions herein shall remain in

full force and effect and all paragraphs, terms and provisions of this

Agreement shall be deemed to be severable in nature.

 

3.7   Governing Law. This

Agreementis made in, and shall be governed by, the laws of the State of

Illinois.

 

IN

WITNESS WHEREOF, the parties  have executed this Agreement

as of the day and year first set forth above.

 

	

   

  	

  /s/ James L. Adkins

  	

   

  	

   

  
	

   

  	

  Officer

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  ILLINI CORPORATION

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By: 

  	

  /s/ Thomas Black

  	

   

  	

   

  
	

   

  	

  Its:

  	

  Chairman

  	

   

  	

   

  
							

 

8

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