Document:

EXHIBIT
10.1

 

AMENDED AND RESTATED

ELGIN FINANCIAL SAVINGS BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT
AGREEMENT

 

                THIS AMENDMENT
executed on this 17th day of May, 2004, by and between ELGIN FINANCIAL SAVINGS
BANK, a State/Stock Savings Bank located in Elgin, Illinois (the “Company”),
and RANDY BLACKBURN (the “Executive”), amends and restates the Supplemental
Executive Retirement Agreement dated June 19, 2002.

 

INTRODUCTION

 

                To encourage the
Executive to remain an employee of the Company, the Company is willing to
provide salary continuation benefits to the Executive. The Company will pay the
benefits from its general assets.

 

AGREEMENT

 

                The Company and
the Executive agree as follows:

 

Article I

Definitions

 

                Whenever used in
this Agreement, the following words and phrases shall have the meanings
specified:

 

                1.1           “Change of Control”
means:

 

                (a)           A change in the ownership of the
capital stock of the Company, whereby another corporation, person, or group
acting in concert (hereinafter this Agreement shall collectively refer to any
combination of these three [another corporation, person, or group acting in
concert] as a “Person”) as described in Section 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), acquires, directly or
indirectly, beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of a number of shares of capital stock of
the Company which constitutes fifty percent (50%) or more of the combined
voting power of the Company’s then outstanding capital stock then entitled to
vote generally in the election of directors; or

 

                (b)           The persons who were members of the
Board of Directors of the Company immediately prior to a tender offer, exchange
offer, contested election or any combination of the foregoing, cease to
constitute a majority of the Board of Directors; or

 

                (c)           The adoption by the Board of
Directors of the Company of a merger, consolidation or reorganization plan
involving the Company in which the Company is not the surviving entity, or a
sale of all or substantially all of the assets of the Company. For purposes of
this Agreement, a sale

 

1

 

of all or substantially all of the assets of the Company shall be
deemed to occur if any Person acquires (or during the 12-month period ending on
the date of the most recent acquisition by such Person, has acquired) gross
assets of the Company that have an aggregate fair market value equal to fifty
percent (50%) or more of the fair market value of all of the respective gross
assets of the Company immediately prior to such acquisition or acquisitions; or

 

                (d)           A tender offer or exchange offer is
made by any Person which results in such Person beneficially owning (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) either fifty
percent (50%) or more of the Company’s outstanding shares of Common Stock or
shares of capital stock having fifty percent (50%) or more the combined voting
power of the Company’s then outstanding capital stock (other than an offer made
by the Company), and sufficient shares are acquired under the offer to cause
such person to own fifty percent (50%) or more of the voting power; or

 

                (e)           Any other transactions or series of
related transactions occurring which have substantially the same effect as the
transactions specified in any of the preceding clauses of this
Section 1.1.

 

Notwithstanding the above, certain transfers are permitted within
Section 318 of the Code and such transfers shall not be deemed a Change of
Control under this Section 1.1.

 

                1.2           “Code” means the
Internal Revenue Code of 1986, as amended.

 

                1.3           “Disability”
means the Executive’s suffering a sickness, accident or injury which has been
determined by the carrier of any individual or group disability insurance
policy covering the Executive, or by the Social Security Administration, to be
a disability rendering the Executive totally and permanently disabled. The
Executive must submit proof to the Company of the carrier’s or Social Security
Administration’s determination upon the request of the Company.

 

                1.4           “Early Termination”
means the Termination of Employment before Normal Retirement Age for reasons
other than death, Disability, Termination for Cause or following a Change of
Control.

 

                1.5           “Early Termination Date”
means the month, day and year in which Early Termination occurs.

 

                1.6           “Effective Date”
means May 1, 2004.

 

                1.7           “Normal Retirement Age”
means the Executive’s 65th birthday.

 

                1.8           “Normal Retirement Date”
means the later of the Normal Retirement Age or Termination of Employment.

 

                1.9           “Plan Year”
means a twelve-month period commencing on January 1 and ending on

 

2

 

December 31 of each
year. The initial Plan Year shall commence on the effective date of this
Agreement.

 

                1.10         “Termination for Cause”
See Article 5.

 

                1.11         “Termination of Employment”
means that the Executive ceases to be employed by the Company for any reason,
voluntary or involuntary, other than by reason of a leave of absence approved
by the Company.

 

                1.12         “Years of Employment”
means the total number of twelve-month periods during which the Executive has
been employed by the Company. The Executive was hired by the Company in March,
1997.

 

Article
2

Lifetime
Benefits

 

                2.1           Normal Retirement Benefit.  Upon Termination of
Employment on or after the Normal Retirement Age for reasons other than death,
the Company shall pay to the Executive the benefit described in this
Section 2.1 in lieu of any other benefit under this Agreement.

 

                                                                2.1.1        Amount of Benefit.  The annual benefit under
this Section 2.1 is $36,000 (Thirty-six thousand dollars). The Company’s
Board of Directors, in its sole discretion, may increase the annual benefit
under this Section 2.1.1; however, an increase shall require the
recalculation of Schedule A.

 

                                                                2.1.2        Payment of Benefit.  The Company shall pay the
annual benefit to the Executive in 12 equal monthly installments commencing
with the month following the Executive’s Normal Retirement Date, paying the
annual benefit to the Executive for a period of 15 years.

 

                                                                2.1.3        Benefit Increases.  Commencing on the first
anniversary of the first benefit payment, and continuing on each subsequent
anniversary, the Company’s Board of Directors, at its sole discretion, may
increase the benefit.

 

                2.2           Early Termination Benefit.  Upon Early Termination, the
Company shall pay to the Executive the benefit described in this
Section 2.2 in lieu of any other benefit under this Agreement.

 

                                                                2.2.1        Amount of Benefit   The benefit under this Section 2.2 is the
Early Termination annual Installment set forth on Schedule A for the Plan
Year ending immediately prior to the Early Termination Date, determined by one
of the following two methods: a) if the Executive has completed ten (10)
Years of Employment upon the Effective Date of this Agreement, the Executive
shall be vested in 50 percent of the Accrual Balance set forth on
Schedule A for the first Plan Year and vest in the remaining
50 percent equally over the remaining Plan Years until Normal Retirement
Age, unless otherwise illustrated on Schedule A; or b) if the
Executive has completed less than ten (10) Years of Employment upon the
Effective Date of

 

3

 

this Agreement, the
Executive shall be zero percent vested until completing five (5) Years of
Employment and then vest equally over the remaining Plan Years Until Normal
Retirement Age. An increase in the annual benefit under Section 2.1.1
shall require the recalculation of this benefit on Schedule A. This
benefit is determined by calculating a 15-year fixed annuity from the vested
Accrual Balance, crediting interest on the unpaid balance at an annual rate of
7.50 percent, compounded monthly.

 

                                                                2.2.2        Payment of Benefit.  The Company shall pay the annual
benefit to the Executive in 12 equal monthly installments commencing with the
month following Termination of Employment, paying the annual benefit to the
Executive for a period of 15 years.

 

                                                                2.2.3        Benefit Increases.  Benefit payments may be
increased as provided in Section 2.1.3.

 

                2.3           Disability Benefit.  If the Executive terminates
employment due to Disability prior to Normal Retirement Age, the Company shall
pay to the Executive the benefit described in this Section 2.3 in lieu of
any other benefit under this Agreement.

 

                                                                2.3.1        Amount of Benefit.  The benefit under this
Section 2.3 is the Disability annual Installment set forth on
Schedule A for the Plan Year ending immediately prior to the date in which
Termination of Employment occurs (except during the first Plan Year, the
benefit is the amount set forth for Plan Year 1), determined by one of the
following two methods: a) if the Executive has completed ten (10) Years of
Employment upon the Effective Date of this Agreement, the Executive shall be
vested in 50 percent of the Accrual Balance set forth on Schedule A
for the first Plan Year and vest in the remaining 50 percent equally over
the remaining Plan Years until Normal Retirement Age, unless otherwise
illustrated on Schedule A; or b) if the Executive has completed less
than ten (10) Years of Employment upon the Effective Date of this Agreement,
the Executive shall be zero percent vested until completing five (5) Years of
Employment and then vest equally over the remaining Plan Years Until Normal
Retirement Age. An increase in the annual benefit under Section 2.1.1
would require the recalculation of the Disability benefit on Schedule A.
This benefit is determined by calculating a 15-year fixed annuity from the
vested Accrual Balance, crediting interest on the unpaid balance at an annual
rate of 7.50 percent, compounded monthly.

 

                                                                2.3.2        Payment of Benefit.  The Company shall pay the
annual benefit to the Executive in 12 equal monthly installments commencing
with the month following Termination of Employment, paying the annual benefit
to the Executive for a period of 15 years.

 

                                                                2.3.3        Benefit Increases.  Benefit payments may be
increased as provided in Section 2.1.3.

 

                2.4           Change of Control Benefit.  Upon a Change of Control,
the Company shall pay to the Executive the benefit described in this
Section 2.4 in lieu of any other benefit under this Agreement.

 

4

 

2.4.1        Amount of Benefit.  The benefit under this Section 2.4 is
the Change of Control annual Installment set forth on Schedule A for the
Plan Year ending immediately prior to the date in which Termination of
Employment occurs (except during the first Plan Year, the benefit is the amount
set forth for Plan Year 1), determined by vesting the Executive in the
Normal Retirement Benefit described in Section 2.1.1.

 

2.4.2        Payment of Benefit.  The Company shall pay the annual benefit to
the Executive in 12 equal monthly installments commencing with the month
following Normal Retirement Age, paying the annual benefit to the Executive for
a period of 15 years.

 

2.4.3        Benefit Increases.  Benefit payments may be increased as provided
in Section 2.1.3.

 

2.4.4        Excess Parachute Payment.  Notwithstanding any provision of this
Agreement to the contrary, the Company shall not pay any benefit under this
Agreement to the extent the benefit would create an excise tax under the excess
parachute rules of Section 280G of the Code.

 

Article
3

Death
Benefits

 

3.1           Death During Active
Service.  If the Executive
dies while in the active service of the Company, the Company shall pay to the
Executive’s beneficiary the benefit described in this Section 3.1. This
benefit shall be paid in lieu of the benefits under Article 2.

 

3.1.1        Amount of Benefit.  The annual benefit under this Section 3.1
is the Normal Retirement Benefit amount described in Section 2.1.1.

 

3.1.2        Payment of Benefit.  The Company shall pay the annual benefit to
the Executive’s beneficiary in 12 equal monthly installments commencing with
the month following the Executive’s death, paying the annual benefit to the
Executive’s beneficiary for a period of 15 years.

 

3.2           Death During Payment of a
Lifetime Benefit.  If the
Executive dies after any Lifetime Benefit payments have commenced under this
Agreement but before receiving all such payments, the Company shall pay the
remaining benefits to the Executive’s beneficiary at the same time and in the
same amounts they would have been paid to the Executive had the Executive
survived.

 

3.3           Death After Termination of
Employment But Before Payment of a Lifetime Benefit Commences.  If the Executive is entitled to a Lifetime
Benefit under this Agreement, but dies prior to the commencement of said
benefit payments, the Company shall pay the same benefit payments to the
Executive’s beneficiary that the Executive was entitled to prior to death
except that the benefit payments shall commence on the first day of the month
following the date of the Executive’s death.

 

5

 

Article
4

Beneficiaries

 

4.1           Beneficiary Designations.  The Executive shall designate a beneficiary
by filing a written designation with the Company. The Executive may revoke or
modify the designation at any time by filing a new designation. However,
designations will only be effective if signed by the Executive and received by
the Company during the Executive’s lifetime. The Executive’s beneficiary
designation shall be deemed automatically revoked if the beneficiary
predeceases the Executive, or if the Executive names a spouse as beneficiary
and the marriage is subsequently dissolved. If the Executive dies without a
valid beneficiary designation, all payments shall be made to the Executive’s
estate.

 

4.2           Facility of Payment.  If a benefit is payable to a minor, to a
person declared incompetent, or to a person incapable of handling the
disposition of his or her property, the Company may pay such benefit to the
guardian, legal representative or person having the care or custody of such
minor, incompetent person or incapable person. The Company may require proof of
incompetence, minority or guardianship as it may deem appropriate prior to
distribution of the benefit. Such distribution shall completely discharge the
Company from all liability with respect to such benefit.

 

Article
5

General
Limitations

 

5.1           Termination for Cause.  Notwithstanding any provision of this
Agreement to the contrary, the Company shall not pay any benefit under this
Agreement if the Company terminates the Executive’s employment for:

 

(a)           Conviction of a felony or of a gross
misdemeanor involving moral turpitude; or

 

(b)           Fraud, disloyalty, dishonesty or
willful violation of any law or significant Company policy committed in
connection with the Executive’s employment and resulting in an adverse effect
on the Company.

 

5.2           Suicide or Misstatement.  The Company shall not pay any benefit under
this Agreement if the Executive commits suicide within three years after the
date of this Agreement. In addition, the Company shall not pay any benefit
under this Agreement if the Executive has made any material misstatement of
fact on an employment application or resume provided to the Company, or on any
application for any benefits provided by the Company to the Executive.

 

Article
6

Claims
and Review Procedure

 

6.1           Claims Procedure.  Any person or entity (“claimant”) who has not
received benefits under this Agreement that he or she believes should be paid
shall make a claim for such benefits as follows:

 

 

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6.1.1        Initiation — Written Claim.  The Claimant initiates a claim by submitting
to the Company a written claim for the benefits.

 

6.1.2        Timing of Company Response.  The Company shall respond to such claimant
within 90 days after receiving the claim. If the Company determines that
special circumstances require additional time for processing the claim, the
Company can extend the response period by an additional 90 days by notifying
the claimant in writing, prior to the end of the initial 90-day period, that an
additional period is required. The notice of extension must set forth the
special circumstances and the date by which the Company expects to render its
decision.

 

6.1.3        Notice of Decision.  If the Company denies part or all of the
claim, the Company shall notify the claimant in writing of such denial. The
Company shall write the notification in a manner calculated to be understood by
the claimant. The notification shall set forth:

 

                (a)           The
specific reasons for the denial;

 

                (b)           A
reference to the specific provisions of the Agreement on which the denial is
based;

 

                (c)           A
description of any additional information or material necessary for the
claimant to perfect the claim and an explanation of why it is needed;

 

                (d)           An
explanation of the Agreement’s review procedures and the time limits applicable
to such procedures; and

 

                (e)           A
statement of the claimant’s right to bring a civil action under ERISA
Section 502(a) following an adverse benefit determination on review.

 

6.2           Review Procedure.  If
the Company denies part or all of the claim, the claimant shall have the
opportunity for a full and fair review by the Company of the denial, as
follows:

 

6.2.1        Initiation — Written
Request.  To initiate the
review, the claimant, within 60 days after receiving the Company’s notice of
denial, must file with the Company a written request for review.

 

6.2.2        Additional Submissions —
Information Access.  The
claimant shall then have the opportunity to submit written comments, documents,
records and other information relating to the claim. The Company shall also
provide the claimant, upon request and free of charge, reasonable access to,
and copies of, all documents, records and other information relevant (as
defined in applicable ERISA regulations) to the claimant’s claim for benefits.

 

6.2.3        Considerations on Review.  In considering the review, the Company shall
take into account all materials and information the claimant submits relating
to the claim, without regard to whether such information was submitted or
considered in the initial benefit determination.

 

6.2.4        Timing of Company
Response.  The Company shall
respond in writing to such

 

7

 

claimant within 60 days
after receiving the request for review. If the Company determines that special
circumstances require additional time for processing the claim, the Company can
extend the response period by an additional 60 days by notifying the claimant
in writing, prior to the end of the initial 60-day period, that an additional
period is required.  The notice of
extension must set forth the special circumstances and the date by which the
Company expects to render its decision.

 

6.2.5  Notice of Decision.  The Company shall notify the claimant in
writing of its decision on review.  The
Company shall write the notification in a manner calculated to be understood by
the claimant. The notification shall set forth:

 

                (a)           The specific reasons for the denial;

 

                (b)           A
reference to the specific provisions of the Agreement on which the denial is
based;

 

                (c)           A
statement that the claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records and other
information relevant (as defined in applicable ERISA regulations) to the
claimant’s claim for benefits; and

 

                (d)           A
statement of the claimant’s right to bring a civil action under ERISA
Section 502(a).

 

Article 7

Amendments and Termination

 

This Agreement may be amended or terminated only by a
written agreement signed by the Company and the Executive.

 

Notwithstanding the previous paragraph in this
Article 7, the Company may amend or terminate this Agreement at any time
if, pursuant to legislative, judicial or regulatory action, continuation of the
Agreement would (i) cause benefits to be taxable to the Executive prior to
actual receipt, or (ii) result in significant financial penalties or other
significantly detrimental ramifications to the Company (other than the
financial impact of paying the benefits). 
However, in no event shall this Agreement be terminated under this
section without payment to the Executive of any vested benefit.

 

Article 8

Miscellaneous

 

8.1           Binding Effect.  This
Agreement shall bind the Executive and the Company, and their beneficiaries,
survivors, executors, successors, administrators and transferees.

 

8.2           No Guarantee of Employment. 
This Agreement is not an employment policy or contract. It does not give
the executive the right to remain an employee of the Company, nor does it
interfere with the Company’s right to discharge the Executive. It also does not
require the Executive to remain an employee nor interfere with the Executive’s
right to terminate employment at any time.

 

 

8

 

8.3           Non-Transferability.  Benefits under this Agreement cannot be sold,
transferred, assigned, pledged, attached or encumbered in any manner.

 

8.4           Reorganization.  The Company shall not merge or consolidate
into or with another company, or reorganize, or sell substantially all of its
assets to another company, firm, or person unless such succeeding or continuing
company, firm, or person agrees to assume and discharge the obligations of the
Company under this Agreement. Upon the occurrence of such event, the term “Company”
as used in this Agreement shall be deemed to refer to the successor or survivor
company.

 

8.5           Tax Withholding.  The Company shall withhold any taxes that are
required to be withheld from the benefits provided under this Agreement.

 

8.6           Applicable Law.  The Agreement and all rights hereunder shall
be governed by the laws of the State of Illinois, except to the extent
preempted by the laws of the United States of America.

 

8.7           Unfunded Arrangement.  The Executive and beneficiary are general
unsecured creditors of the Company for the payment of benefits under this
Agreement. The benefits represent the mere promise by the Company to pay such
benefits. The rights to benefits are not subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors. Any insurance on the Executive’s life is a general
asset of the Company to which the Executive and beneficiary have no preferred
or secured claim.

 

8.8           Entire Agreement.  This Agreement constitutes the entire
agreement between the Company and the Executive as to the subject matter
hereof. No rights are granted to the Executive by virtue of this Agreement
other than those specifically set forth herein.

 

8.9           Administration.  The Company shall have powers which are
necessary to administer this Agreement, including but not limited to:

 

(a)           Establishing and revising the method
of accounting for the Agreement;

 

(b)           Maintaining a record of benefit
payments; and

 

(c)           Establishing rules and prescribing
any forms necessary or desirable to administer the Agreement.

 

8.10         Named Fiduciary.  The Company shall be the named fiduciary and
plan administrator under this Agreement. It may delegate to others certain
aspects of the management and operational responsibilities including the
employment of advisors and the delegation of ministerial duties to qualified
individuals.

 

9

 

                IN WITNESS
WHEREOF, the Executive and the Company have signed this Agreement.

 

	
  EXECUTIVE:

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ELGIN FINANCIAL SAVINGS BANK

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Randy Blackburn

  	
   

  	
  By

  	
  /s/ Pat A. Lenart

  
	
  RANDY BLACKBURN

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
  Sr. V.P of HR

  
	
   

  	
   

  	
   

  	
   

  

 

10EXHIBIT
10.2

 

EFS
BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

 

THIS AGREEMENT is adopted
this 17th day of May, 2004, by and between EFS BANK (formerly Elgin Financial
Savings Bank), a State/Stock Savings Bank located in Elgin, Illinois (the “Company”),
and ERIC J. WEDEEN (the “Executive”).

 

INTRODUCTION

 

To encourage the Executive
to remain an employee of the Company, the Company is willing to provide salary
continuation benefits to the Executive. The Company will pay the benefits from
its general assets.

 

AGREEMENT

 

The Company and the
Executive agree as follows:

 

Article
1

Definitions

 

Whenever used in this
Agreement, the following words and phrases shall have the meanings specified:

 

1.1           “Change of Control”
means:

 

(a)           A change in the ownership of the capital stock of the
Company, whereby another corporation, person, or group acting in concert
(hereinafter this Agreement shall collectively refer to any combination of
these three [another corporation, person, or group acting in concert] as a “Person”)
as described in Section 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), acquires, directly or indirectly, beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of a number of shares of capital stock of the Company which
constitutes fifty percent (50%) or more of the combined voting power of the
Company’s then outstanding capital stock then entitled to vote generally in the
election of directors; or

 

(b)           The persons who were members of the Board of Directors of
the Company immediately prior to a tender offer, exchange offer, contested
election or any combination of the foregoing, cease to constitute a majority of
the Board of Directors; or

 

(c)           The adoption by the Board of Directors of the Company of a
merger, consolidation or reorganization plan involving the Company in which the
Company is not the surviving entity, or a sale of all or substantially all of
the assets of the Company. For purposes of this Agreement, a sale of all or
substantially all of the assets of the Company shall be deemed to occur if any
Person

 

 

1

acquires (or during the 12-month period
ending on the date of the most recent acquisition by such Person, has acquired)
gross assets of the Company that have an aggregate fair market value equal to
fifty percent (50%) or more of the fair market value of all of the respective
gross assets of the Company immediately prior to such acquisition or
acquisitions; or

 

(d)           A tender offer or exchange offer is made by any Person
which results in such Person beneficially owning (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) either fifty percent
(50%) or more of the Company’s outstanding shares of Common Stock or shares of
capital stock having fifty percent (50%) or more the combined voting power of
the Company’s then outstanding capital stock (other than an offer made by the
Company), and sufficient shares are acquired under the offer to cause such
person to own fifty percent (50%) or more of the voting power; or

 

(e)           Any other transactions or series of related transactions
occurring which have substantially the same effect as the transactions
specified in any of the preceding clauses of this Section 1.1.

 

Notwithstanding the above, certain transfers
are permitted within Section 318 of the Code and such transfers shall not
be deemed a Change of Control under this Section 1.1.

 

1.2           “Code” means the
Internal Revenue Code of 1986, as amended.

 

1.3           “Disability”
means the Executive’s suffering a sickness, accident or injury which has been
determined by the carrier of any individual or group disability insurance
policy covering the Executive, or by the Social Security Administration, to be
a disability rendering the Executive totally and permanently disabled. The
Executive must submit proof to the Company of the carrier’s or Social Security
Administration’s determination upon the request of the Company.

 

1.4           “Early Termination”
means the Termination of Employment before Normal Retirement Age for reasons
other than death, Disability, Termination for Cause or following a Change of
Control.

 

1.5           “Early Termination Date”
means the month, day and year in which Early Termination occurs.

 

1.6           “Effective Date”
means May 1, 2004.

 

1.7           “Normal Retirement Age”
means the Executive’s 65th birthday.

 

1.8           “Normal Retirement Date”
means the later of the Normal Retirement Age or Termination of Employment.

 

1.9           “Plan Year”
means a twelve-month period commencing on January 1 and ending on
December 31 of each year. The initial Plan Year shall commence on the
effective date of this

 

2

Agreement.

 

1.10         “Termination for Cause” See Article 5.

 

1.11         “Termination of Employment” means that the Executive ceases
to be employed by the Company for any reason, voluntary or involuntary, other
than by reason of a leave of absence approved by the Company.

 

1.12         “Years of Employment” means the total number of twelve-month
periods during which the Executive has been employed by the Company. The
Executive was hired by the Company on November 1, 1994.

 

Article 2

Lifetime Benefits

 

2.1           Normal Retirement Benefit. 
Upon Termination of Employment on or after the Normal Retirement Age for
reasons other than death, the Company shall pay to the Executive the benefit
described in this Section 2.1 in lieu of any other benefit under this
Agreement.

 

2.1.1        Amount of Benefit.  The annual benefit under this
Section 2.1 is $36,000 (Thirty-six thousand dollars). The Company’s Board
of Directors, in its sole discretion, may increase the annual benefit under
this Section 2.1.1; however, an increase shall require the recalculation
of Schedule A.

 

2.1.2        Payment of Benefit.  The Company shall pay the annual benefit to
the Executive in twelve (12) equal monthly installments commencing with the
month following the Executive’s Normal Retirement Date, paying the annual
benefit to the Executive for a period of 15 years.

 

2.1.3        Benefit Increases.  Commencing on the first anniversary of the
first benefit payment, and continuing on each subsequent anniversary, the
Company’s Board of Directors, at its sole discretion, may increase the benefit.

 

2.2           Early Termination Benefit. 
Upon Early Termination, the Company shall pay to the Executive the
benefit described in this Section 2.2 in lieu of any other benefit under this
agreement.

 

2.2.1        Amount of Benefit.  The benefit under this Section 2.2 is
the Early Termination annual Installment set forth on Schedule A for the Plan
Year ending immediately prior to the Early Termination Date, determined by one
of the following two methods: a) if the Executive has completed ten (10)
Years of Employment upon the Effective Date of this Agreement, the Executive
shall be vested in 50 percent of the Accrual Balance set forth on Schedule
A for the first Plan Year and vest in the remaining 50 percent equally
over the remaining Plan Years until Normal Retirement Age, unless otherwise
illustrated on Schedule A; or b) if the Executive has completed less than
(10) Years of Employment upon the Effective Date of

 

3

this Agreement, the executive shall be zero percent
vested until completing five (5) Years of Employment and then vest equally over
the remaining Plan Years Until Normal Retirement Age. An increase in the annual
benefit under Section 2.1.1 shall require the recalculation of this
benefit on Schedule A. This benefit is determined by calculating a 15-year
fixed annuity from the vested Accrual Balance, crediting interest on the unpaid
balance at an annual rate of 7.50 percent, compounded monthly.

 

2.2.2        Payment of Benefit.  The Company shall pay the benefit to the
Executive in One hundred eighty (180) equal monthly installments commencing
within thirty (30) days following Termination of Employment and payable on the
first day of each month thereafter.

 

2.2.3        Benefit Increases.  Benefit payments may be increased as provided
in Section 2.1.3.

 

2.3           Disability Benefit. 
If the Executive terminates employment due to Disability prior to Normal
Retirement Age, the Company shall pay to the Executive the benefit described in
this Section 2.3 in lieu of any other benefit under this Agreement.

 

2.3.1        Amount of Benefit.  The benefit under this Section 2.3 is
the Disability annual Installment set forth on Schedule A for the Plan Year
ending immediately prior to the date in which Termination of Employment occurs
(except during the first Plan Year, the benefit is the amount set forth for
Plan Year 1), determined by one of the following two methods: a) if the
Executive has completed ten (10) Years of Employment upon the Effective Date of
this Agreement, the Executive shall be vested in 50 percent of the Accrual
Balance set forth on Schedule A for the first Plan Year and vest in the
remaining 50 percent equally over the remaining Plan Years until Normal
Retirement Age, unless otherwise illustrated on Schedule A; or b) if the
Executive has completed less than ten (10) Years of Employment upon the
Effective Date of this Agreement, the Executive shall be zero percent vested
until completing five (5) Years of Employment and then vest equally over the
remaining Plan Years Until Normal Retirement Age. An increase in the annual
benefit under Section 2.1.1 would require the recalculation of the
Disability benefit on Schedule A. This benefit is determined by calculating a
15-year fixed annuity from the vested Accrual Balance, crediting interest on
the unpaid balance at an annual rate of 7.50 percent, compounded monthly.

 

2.3.2        Payment of Benefit.  The Company shall pay the benefit to the
Executive in One hundred eighty (180) equal monthly installments commencing
within thirty (30) days following Termination of Employment and payable of the
first day of each month thereafter.

 

2.3.3        Benefit Increases.  Benefit payments may be increased as provided
in Section 2.1.3.

 

2.4           Change of Control Benefit. 
Upon a Change of Control, the Company shall pay to the Executive the
benefit described in this Section 2.4 in lieu of any other benefit under
this Agreement.

 

 

4

2.4.1        Amount of Benefit. The benefit under this Section 2.4
is the Change of Control annual Installment set forth on Schedule A for
the Plan Year ending immediately prior to the date in which Termination of
Employment occurs (except during the first Plan Year, the benefit is the amount
set forth for Plan Year 1), determined by vesting the Executive in the Normal
Retirement Benefit described in Section 2.1.1.

 

2.4.2        Payment of Benefit.
 The Company shall pay the benefit to the
Executive in One hundred eighty (180) equal monthly installments commencing
within thirty (30) days following Normal Retirement Age and payable on the
first of each month thereafter.

 

2.4.3        Benefit Increases.  Benefit payments may be increased as provided
in Section 2.1.3.

 

2.4.4        Excess Parachute Payment
.. Notwithstanding any provision of this Agreement to the contrary, the Company
shall not pay any benefit under this Agreement to the extent the benefit would
be an excess parachute payment under Section 208G of the Code. In such
event, the benefit shall be reduced to the maximum benefit allowed that would
not create an excess parachute payment.

 

Article
3

Death
Benefits

 

3.1           Death During Active Service.  If the Executive dies while in the active
service of the Company, the Company shall pay to the Executive’s beneficiary
the benefit described in this Section 3.1. This benefit shall be paid in
lieu of the benefits under Article 2.

 

3.1.1        Amount of Benefit.
 The annual benefit under this
Section 3.1 is the Normal Retirement Benefit amount described in
Section 2.1.1.

 

3.1.2        Payment of Benefit.
 The Company shall pay the benefit to the
Executive’s beneficiary in One hundred eighty (180) equal monthly installments
commencing within thirty (30) days following the Executive’s death and payable
on the first of each month thereafter.

 

3.2           Death During Payment of a Lifetime Benefit.  If the Executive dies after any Lifetime
Benefit payments have commenced under this Agreement but before receiving all
such payments, the Company shall pay the remaining benefits to the Executive’s
beneficiary at the same time and in the same amounts they would have been paid
to the Executive had the Executive survived.

 

3.3           Death After Termination of Employment But Before Payment of a Lifetime
Benefit Commences.  If the
Executive is entitled to a Lifetime Benefit under this Agreement, but dies
prior to the commencement of said benefit payments, the Company shall pay the
same benefit payments to the Executive’s beneficiary that the Executive was
entitled to prior to death except that the benefit payments shall commence on
the first day of the month following the date of the Executive’s death.

 

5

Article
4

Beneficiaries

 

4.1           Beneficiary Designations.  The Executive shall designate a beneficiary by
filing a written designation with the Company. The Executive may revoke or
modify the designation at any time by filing a new designation. However,
designations will only be effective if signed by the Executive and received by
the Company during the Executive’s lifetime. The Executive’s beneficiary
designation shall be deemed automatically revoked if the beneficiary
predeceases the Executive, or if the Executive names a spouse as beneficiary
and the marriage is subsequently dissolved. If the Executive dies without a
valid beneficiary designation, all payments shall be made to the personal
representative of the Executive’s estate.

 

4.2           Facility of Payment.  If
a benefit is payable to a minor, to a person declared incompetent, or to a
person incapable of handling the disposition of his or her property, the
Company may pay such benefit to the guardian, legal representative or person
having the care or custody of such minor, incompetent person or incapable person.
The Company may require proof of incompetence, minority or guardianship as it
may deem appropriate prior to distribution of the benefit. Such distribution
shall completely discharge the Company from all liability with respect to such
benefit.

 

Article
5

General
Limitations

 

5.1           Termination for Cause.  Notwithstanding any provision of this
Agreement to the contrary, the Company shall not pay any benefit under this
Agreement if the Company terminates the Executive’s employment for:

 

                                                                (a)           Conviction of a felony or of a gross misdemeanor involving
moral turpitude; or

 

                                                                (b)           Fraud, disloyalty, dishonesty or willful violation of any
law or significant Company policy committed in connection with the Executive’s
employment and resulting in an adverse effect on the Company.

 

5.2           Suicide or Misstatement.  The Company shall not pay any benefit under
this Agreement if the Executive commits suicide within three years after the
date of this Agreement. In addition, the Company shall not pay any benefit
under this Agreement if the Executive has made any material misstatement of
fact on an employment application or resume provided to the Company, or on any
application for any benefits by the Company to the Executive.

 

Article
6

Claims
and Review Procedure

 

6.1           Claims Procedure.  Any
person or entity (“claimant”) who has not received benefits under this
Agreement that he or she believes should be paid shall make a claim for such
benefits as follows:

 

6

6.1.1        Initiation - Written Claim.  The claimant initiates a claim by submitting
to the Company a written claim for the benefits.

 

6.1.2        Timing of Company Response.  The Company shall respond to such claimant
within 90 days after receiving the claim. If the Company determines that
special circumstances require additional time for processing the claim, the
Company can extend the response period by an additional 90 days by notifying
the claimant in writing, prior to the end of the initial 90-day period, that an
additional period is required. The notice of extension must set forth the
special circumstances and the date by which the Company expects to render its
decision.

 

6.1.3        Notice of Decision.  If the Company denies part or all of the
claim, the Company shall notify the claimant in writing of such denial. The
Company shall write the notification in a manner calculated to be understood by
the claimant. The notification shall set forth:

 

(a)           The specific reasons for the denial;

 

(b)           A reference to the specific
provisions of the Agreement on which the denial is based;

 

(c)           A description of any additional
information or material necessary for the claimant to perfect the claim and an
explanation of why it is needed;

 

(d)           An explanation of the Agreement’s
review procedures and the time limits applicable to such procedures; and

 

(e)           A statement of the claimant’s right
to bring a civil action under ERISA Section 502(a) following an adverse
benefit determination on review.

 

6.2           Review Procedure.  If
the Company denies part or all of the claim, the claimant shall have the
opportunity for a full and fair review by the Company of the denial, as
follows:

 

6.2.1        Initiation - Written
Request.  To initiate the
review, the claimant, within 60 days after receiving the Company’s notice of
denial, must file with the Company a written request for review.

 

6.2.2        Additional Submissions -
Information Access.  The
claimant shall then have the opportunity to submit written comments, documents,
records and other information relating to the claim. The Company shall also
provide the claimant, upon request and free of charge, reasonable access to,
and copies of, all documents, records and other information relevant (as
defined in applicable ERISA regulations) to the claimant’s claim for benefits.

 

6.2.3        Considerations on Review.  In considering the review, the Company shall
take into account all materials and information the claimant submits relating
to the claim, without regard to whether such information was submitted or
considered in the initial benefit determination.

 

6.2.4        Timing of Company Response.  The Company shall respond in writing to such

 

7

claimant within 60 days after receiving the request
for review. If the Company determines that special circumstances require
additional time for processing the claim, the Company can extend the response
period by an additional 60 days by notifying the claimant in writing, prior to
the end of the initial 60-day period, that an additional period is required.
The notice of extension must set forth the special circumstances and the date
by which the Company expects to render its decision.

 

6.2.5        Notice of Decision.  The Company shall notify the claimant in
writing of its decision on review. The Company shall write the notification in
a manner calculated to be understood by the claimant. The notification shall
set forth:

 

(a)           The specific reasons for denial;

 

(b)           A reference to the specific
provisions of the Agreement on which the denial is based;

 

(c)           A statement that the claimant is
entitled to receive, upon request and free of charge, reasonable access to, and
copies of, all documents, records and other information relevant (as defined in
applicable ERISA regulations) to the claimant’s claim for benefits; and

 

(d)           A statement of the claimant’s right
to bring a civil action under ERISA Section 502(a).

 

Article 7

Amendments and Termination

 

This Agreement may be amended or terminated only by a
written agreement signed by the Company and the Executive.

 

Notwithstanding the previous paragraph in this
Article 7, the Company may amend or terminate this Agreement at any time
if, pursuant to legislative, judicial or regulatory action, continuation of the
Agreement would (i) cause benefits to be taxable to the Executive prior to
actual receipt, or (ii) result in significant financial penalties or other
significantly detrimental ramifications to the Company (other than the
financial impact of paying the benefits). However, in no event shall this
Agreement be terminated under this section without payment to the Executive of
any vested benefit determined as of the end of the Plan Year immediately prior
to such termination and payable in a lump sum within sixty (60) days following
such termination.

 

Article 8

Miscellaneous

 

8.1           Binding Effect.  This
Agreement shall bind the Executive and the Company, and their beneficiaries,
survivors, executors, successors, administrators, and transferees.

 

8.2           No Guarantee of Employment. 
This Agreement is not an employment policy or contract. It does not give
the Executive the right to remain an employee of the Company, nor does it
interfere

 

8

with the Company’s right to discharge the
Executive. It also does not require the Executive to remain an employee nor interfere
with the Executive’s right to terminate employment at any time.

 

8.3           Non-Transferability.  Benefits under this Agreement cannot be sold,
transferred, assigned, pledged, attached or encumbered in any manner.

 

8.4           Reorganization.  The Company shall not merge or consolidate
into or with another company, or reorganize, or sell substantially all of its
assets to another company, firm, or person unless such succeeding or continuing
company, firm, or person agrees to assume and discharge the obligations of the
Company under this Agreement. Upon the occurrence of such event, the term “Company”
as used in this Agreement shall be deemed to refer to the successor or survivor
company.

 

8.5           Tax Withholding.  The Company shall withhold any taxes that are
required to be withheld from the benefits provided under this Agreement.

 

8.6           Applicable Law.  The Agreement and all rights hereunder shall
be governed by the laws of the State of Illinois, except to the extent
preempted by the laws of the United States of America.

 

8.7           Unfunded Arrangement.  The Executive and beneficiary are general
unsecured creditors of the Company for the payment of benefits under this
Agreement. The benefits represent the mere promise by the Company to pay such
benefits. The rights to benefits are not subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors. Any insurance on the Executive’s life is a general
asset of the Company to which the Executive and beneficiary have no preferred
or secured claim.

 

8.8           Entire Agreement.  This Agreement constitutes the entire
agreement between the Company and the Executive as to the subject matter
hereof. No rights are granted to the Executive by virtue of this Agreement other
than those specifically set forth herein.

 

8.9           Administration.  The Company shall have powers which are
necessary to administer this Agreement, including but not limited to:

 

                (a) 
Establishing and revising the method of accounting for the Agreement;

 

                (b) 
Maintaining a record of benefit payments; and

 

                (c) 
Establishing rules and prescribing any forms necessary or desirable to
administer the Agreement.

 

8.10         Designated Fiduciary.  The Company shall be the named fiduciary and
plan administrator under this Agreement. It may delegate to others certain
aspects of the management and operational responsibilities including the
employment of advisors and the delegation of ministerial duties to qualified
individuals.

 

(Signature
Page Following)

 

9

IN WITNESS WHEREOF, the
Executive and the Company have signed this Agreement.

 

	
  EXECUTIVE:

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
  EPS BANK

  
	
   

  	
   

  
	
  /s/ Eric J. Wedeen

  	
   

  	
  By

  	
  /s/ Pat A. Lenart

  
	
  ERIC J. WEDEEN

  	
  Title

  	
  Sr. Vice President

  
				

 

 

10

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