Document:

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                                                                   EXHIBIT 10.13

                             BUSINESS LOAN AGREEMENT

Borrower:  KANKAKEE BANCORP, INC.     Lender:  LASALLE BANK NATIONAL ASSOCIATION
           310 S. Schuyler Avenue              MAIN OFFICE
           Kankakee, IL 60901                  135 SOUTH LASALLE STREET
                                               CHICAGO, IL 60603

THIS BUSINESS LOAN AGREEMENT dated February 28, 2003, is made and executed
between KANKAKEE BANCORP, INC. ("Borrower") and LASALLE BANK NATIONAL
ASSOCIATION ("Lender") on the following terms and conditions. Borrower has
received prior commercial loans from Lender or has applied to Lender for a
commercial loan or loans or other financial accommodations, including those
which may be described on any exhibit or schedule attached to this Agreement
("Loan"). Borrower understands and agrees that: (A) in granting, renewing, or
extending any Loan, Lender is relying upon Borrower's representations,
warranties, and agreements as set forth in this Agreement; (B) the granting,
renewing, or extending of any Loan by Lender at all times shall be subject to
Lender's sole judgment and discretion; and (C) all such Loans shall be and
remain subject to the terms and conditions of this Agreement.

TERM. This Agreement shall be effective as of February 28, 2003, and shall
continue in full force and effect until such time as all of Borrower's Loans in
favor of Lender have been paid in full, including principal, interest, costs,
expenses, attorneys' fees, and other fees and charges, or until such time as the
parties may agree in writing to terminate this Agreement.

CONDITIONS PRECEDENT TO EACH ADVANCE. Lender's obligation to make the initial
Advance and each subsequent Advance under this Agreement shall be subject to the
fulfillment to Lender's satisfaction of all of the conditions set forth in this
Agreement and in the Related Documents.

        Loan Documents. Borrower shall provide to Lender the following documents
        for the Loan: (1) the Note; (2) Security Agreements granting to Lender
        security interests in the Collateral; (3) financing statements and all
        other documents perfecting Lender's Security Interests; (4) evidence of
        insurance as required below; (5) together with all such Related
        Documents as Lender may require for the Loan; all in form and substance
        satisfactory to Lender and Lender's counsel.

        Borrower's Authorization. Borrower shall have provided in form and
        substance satisfactory to Lender properly certified resolutions, duly
        authorizing the execution and delivery of this Agreement, the Note and
        the Related Documents. In addition, Borrower shall have provided such
        other resolutions, authorizations, documents and instruments as Lender
        or its counsel, may require.

        Payment of Fees and Expenses. Borrower shall have paid to Lender all
        fees, charges, and other expenses which are then due and payable as
        specified in this Agreement or any Related Document.

        Representations and Warranties. The representations and warranties set
        forth in this Agreement, in the Related Documents, and in any document
        or certificate delivered to Lender under this Agreement are true and
        correct.

        No Event of Default. There shall not exist at the time of any Advance a
        condition which would constitute an Event of Default under this
        Agreement or under any Related Document.

REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Lender, as
of the date of this Agreement, as of the date of each disbursement of loan
proceeds, as of the date of any renewal, extension or modification of any Loan,
and at all times any Indebtedness exists:

        Organization. Borrower is a corporation for profit which is, and at all
        times shall be, duly organized, validly existing, and in good standing
        under and by virtue of the laws of the State of Delaware. Borrower is
        duly authorized to transact business in the State of Illinois and all
        other states in which Borrower is doing business, having obtained all
        necessary filings, governmental licenses and approvals for each state in
        which Borrower is doing business. Specifically, Borrower is, and at all
        times shall be, duly qualified as a foreign corporation in all states in
        which the failure to so qualify would have a material adverse effect on
        its business or financial condition. Borrower has the full power and
        authority to own its properties and to transact the business in which it
        is presently engaged or presently proposes to engage. Borrower maintains
        an office at 310 S. Schuyler Avenue, Kankakee, IL 60901. Unless Borrower
        has designated otherwise in writing, the principal office is the office
        at which Borrower keeps its books and records including its records
        concerning the Collateral. Borrower will notify Lender prior to any
        change in the location of Borrower's state of organization or any change
        in Borrower's name. Borrower shall do all things necessary to preserve
        and to keep in full force and effect its existence, rights and
        privileges, and shall comply with all regulations, rules, ordinances,
        statutes, orders and decrees of any governmental or quasi-governmental
        authority or court applicable to Borrower and Borrower's business
        activities.

        Assumed Business Names. Borrower has filed or recorded all documents or
        filings required by law relating to all assumed business names used by
        Borrower. Excluding the name of Borrower, the following is a complete
        list of all assumed business names under which Borrower does business:
        None.

        Authorization. Borrower's execution, delivery, and performance of this
        Agreement and all the Related Documents have been duly authorized by all
        necessary action by Borrower and do not conflict with, result in a
        violation of, or constitute a default under (1) any provision of
        Borrower's articles of incorporation or organization, or bylaws, or any
        agreement or other instrument binding upon Borrower or (2) any law,
        governmental regulation, court decree, or order applicable to Borrower
        or to Borrower's properties.

        Financial Information. Each of Borrower's financial statements supplied
        to Lender truly and completely disclosed Borrower's financial condition
        as of the date of the statement, and there has been no material adverse
        change in Borrower's financial condition subsequent to the date of the
        most recent financial statement supplied to Lender. Borrower has no
        material contingent obligations except as disclosed in such financial
        statements.

        Legal Effect. This Agreement constitutes, and any instrument or
        agreement Borrower is required to give under this Agreement when
        delivered will constitute legal, valid, and binding obligations of
        Borrower enforceable against Borrower in accordance with their
        respective terms.

        Properties. Except as contemplated by this Agreement or as previously
        disclosed in Borrower's financial statements or in writing to Lender and
        as accepted by Lender, and except for property tax liens for taxes not
        presently due and payable, Borrower owns and has good title to all of
        Borrower's properties free and clear of all Security Interests, and has
        not executed any security documents or financing statements relating to
        such properties. All of Borrower's properties are titled in Borrower's
        legal name, and Borrower has not used or filed a financing statement
        under any other name for at least the last five (5) years.

        Hazardous Substances. Except as disclosed to and acknowledged by Lender
        in writing, Borrower represents and warrants that: (1) During the period
        of Borrower's ownership of Borrower's Collateral, there has been no use,
        generation, manufacture, storage, treatment, disposal, release or
        threatened release of any Hazardous Substance by any person on, under,
        about or from any of the Collateral. (2) Borrower has no knowledge of,
        or reason to believe that there has been (a) any breach or violation of
        any Environmental Laws; (b) any use, generation, manufacture, storage,
        treatment, disposal, release or threatened release of any Hazardous
        Substance on, under, about or from the Collateral by any prior owners or
        occupants of any of the Collateral; or (c) any actual or threatened
        litigation or claims of any kind by any

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                             BUSINESS LOAN AGREEMENT
Loan No: NEW                       (Continued)                            Page 2

        person relating to such matters. (3) Neither Borrower nor any tenant,
        contractor, agent or other authorized user of any of the Collateral
        shall use, generate, manufacture, store, treat, dispose of or release
        any Hazardous Substance on, under, about or from any of the Collateral;
        and any such activity shall be conducted in compliance with all
        applicable federal, state, and local laws, regulations, and ordinances,
        including without limitation all Environmental Laws. Borrower authorizes
        Lender and its agents to enter upon the Collateral to make such
        inspections and tests as Lender may deem appropriate to determine
        compliance of the Collateral with this section of the Agreement. Any
        inspections or tests made by Lender shall be at Borrower's expense and
        for Lender's purposes only and shall not be construed to create any
        responsibility or liability on the part of Lender to Borrower or to any
        other person. The representations and warranties contained herein are
        based on Borrower's due diligence in investigating the Collateral for
        hazardous waste and Hazardous Substances. Borrower hereby (1) releases
        and waives any future claims against Lender for indemnity or
        contribution in the event Borrower becomes liable for cleanup or other
        costs under any such laws, and (2) agrees to indemnify and hold harmless
        Lender against any and all claims, losses, liabilities, damages,
        penalties, and expenses which Lender may directly or indirectly sustain
        or suffer resulting from a breach of this section of the Agreement or as
        a consequence of any use, generation, manufacture, storage, disposal,
        release or threatened release of a hazardous waste or substance on the
        Collateral. The provisions of this section of the Agreement, including
        the obligation to indemnify, shall survive the payment of the
        Indebtedness and the termination, expiration or satisfaction of this
        Agreement and shall not be affected by Lender's acquisition of any
        interest in any of the Collateral, whether by foreclosure or otherwise.

        Litigation and Claims. No litigation, claim, investigation,
        administrative proceeding or similar action (including those for unpaid
        taxes) against Borrower is pending or threatened, and no other event has
        occurred which may materially adversely affect Borrower's financial
        condition or properties, other than litigation, claims, or other events,
        if any, that have been disclosed to and acknowledged by Lender in
        writing.

        Taxes. To the best of Borrower's knowledge, all of Borrower's tax
        returns and reports that are or were required to be filed, have been
        filed, and all taxes, assessments and other governmental charges have
        been paid in full, except those presently being or to be contested by
        Borrower in good faith in the ordinary course of business and for which
        adequate reserves have been provided.

        Lien Priority. Unless otherwise previously disclosed to Lender in
        writing, Borrower has not entered into or granted any Security
        Agreements, or permitted the filing or attachment of any Security
        Interests on or affecting any of the Collateral directly or indirectly
        securing repayment of Borrower's Loan and Note, that would be prior or
        that may in any way be superior to Lender's Security Interests and
        rights in and to such Collateral.

        Binding Effect. This Agreement, the Note, all Security Agreements (if
        any), and all Related Documents are binding upon the signers thereof, as
        well as upon their successors, representatives and assigns, and are
        legally enforceable in accordance with their respective terms.

AFFIRMATIVE COVENANTS. Borrower covenants and agrees with Lender that, so long
as this Agreement remains in effect, Borrower will:

        Notices of Claims and Litigation. Promptly inform Lender in writing of
        (1) all material adverse changes in Borrower's financial condition, and
        (2) all existing and all threatened litigation, claims, investigations,
        administrative proceedings or similar actions affecting Borrower or any
        Guarantor which could materially affect the financial condition of
        Borrower or the financial condition of any Guarantor.

        Financial Records. Maintain its books and records in accordance with
        GAAP, applied on a consistent basis, and permit Lender to examine and
        audit Borrower's books and records at all reasonable times.

        Financial Statements. Furnish Lender with such financial statements and
        other related information at such frequencies and in such detail as
        Lender may reasonably request.

        Additional Information. Furnish such additional information and
        statements, as Lender may request from time to time.

        Insurance. Maintain fire and other risk insurance, public liability
        insurance, and such other insurance as Lender may require with respect
        to Borrower's properties and operations, in form, amounts, coverages and
        with insurance companies acceptable to Lender. Borrower, upon request of
        Lender, will deliver to Lender from time to time the policies or
        certificates of insurance in form satisfactory to Lender, including
        stipulations that coverages will not be cancelled or diminished without
        at least thirty (30) days prior written notice to Lender. Each insurance
        policy also shall include an endorsement providing that coverage in
        favor of Lender will not be impaired in any way by any act, omission or
        default of Borrower or any other person. In connection with all policies
        covering assets in which Lender holds or is offered a security interest
        for the Loans, Borrower will provide Lender with such lender's loss
        payable or other endorsements as Lender may require.

        Insurance Reports. Furnish to Lender, upon request of Lender, reports on
        each existing insurance policy showing such information as Lender may
        reasonably request, including without limitation the following: (1) the
        name of the insurer; (2) the risks insured; (3) the amount of the
        policy; (4) the properties insured; (5) the then current property values
        on the basis of which insurance has been obtained, and the manner of
        determining those values; and (6) the expiration date of the policy. In
        addition, upon request of Lender (however not more often than annually),
        Borrower will have an independent appraiser satisfactory to Lender
        determine, as applicable, the actual cash value or replacement cost of
        any Collateral. The cost of such appraisal shall be paid by Borrower.

        Other Agreements. Comply with all terms and conditions of all other
        agreements, whether now or hereafter existing, between Borrower and any
        other party and notify Lender immediately in writing of any default in
        connection with any other such agreements.

        Loan Proceeds. Use all Loan proceeds solely for Borrower's business
        operations, unless specifically consented to the contrary by Lender in
        writing.

        Taxes, Charges and Liens. Pay and discharge when due all of its
        indebtedness and obligations, including without limitation all
        assessments, taxes, governmental charges, levies and liens, of every
        kind and nature, imposed upon Borrower or its properties, income, or
        profits, prior to the date on which penalties would attach, and all
        lawful claims that, if unpaid, might become a lien or charge upon any of
        Borrower's properties, income, or profits.

        Performance. Perform and comply, in a timely manner, with all terms,
        conditions, and provisions set forth in this Agreement, in the Related
        Documents, and in all other instruments and agreements between Borrower
        and Lender. Borrower shall notify Lender immediately in writing of any
        default in connection with any agreement.

        Operations. Maintain executive and management personnel with
        substantially the same qualifications and experience as the present
        executive and management personnel; provide written notice to Lender of
        any change in executive and management personnel; conduct its business
        affairs in a reasonable and prudent manner.

        Environmental Studies. Promptly conduct and complete, at Borrower's
        expense, all such investigations, studies, samplings and testings as may
        be requested by Lender or any governmental authority relative to any
        substance, or any waste or by-product of any substance defined as toxic
        or a hazardous substance under applicable federal, state, or local law,
        rule, regulation, order or directive, at or affecting any property or
        any facility owned, leased or used by Borrower.

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                             BUSINESS LOAN AGREEMENT
Loan No: NEW                       (Continued)                            Page 3

        Compliance with Governmental Requirements. Comply with all laws,
        ordinances, and regulations, now or hereafter in effect, of all
        governmental authorities applicable to the conduct of Borrower's
        properties, businesses and operations, and to the use or occupancy of
        the Collateral, including without limitation, the Americans With
        Disabilities Act. Borrower may contest in good faith any such law,
        ordinance, or regulation and withhold compliance during any proceeding,
        including appropriate appeals, so long as Borrower has notified Lender
        in writing prior to doing so and so long as, in Lender's sole opinion,
        Lender's interests in the Collateral are not jeopardized. Lender may
        require Borrower to post adequate security or a surety bond, reasonably
        satisfactory to Lender, to protect Lender's interest.

        Inspection. Permit employees or agents of Lender at any reasonable time
        to inspect any and all Collateral for the Loan or Loans and Borrower's
        other properties and to examine or audit Borrower's books, accounts, and
        records and to make copies and memoranda of Borrower's books, accounts,
        and records. If Borrower now or at any time hereafter maintains any
        records (including without limitation computer generated records and
        computer software programs for the generation of such records) in the
        possession of a third party, Borrower, upon request of Lender, shall
        notify such party to permit Lender free access to such records at all
        reasonable times and to provide Lender with copies of any records it may
        request, all at Borrower's expense.

        Compliance Certificates. Unless waived in writing by Lender, provide
        Lender within ninety (90) days after the end of each fiscal year, with a
        certificate executed by Borrower's chief financial officer, or other
        officer or person acceptable to Lender, certifying that the
        representations and warranties set forth in this Agreement are true and
        correct as of the date of the certificate and further certifying that,
        as of the date of the certificate, no Event of Default exists under this
        Agreement.

        Environmental Compliance and Reports. Borrower shall comply in all
        respects with any and all Environmental Laws; not cause or permit to
        exist, as a result of an intentional or unintentional action or omission
        on Borrower's part or on the part of any third party, on property owned
        and/or occupied by Borrower, any environmental activity where damage may
        result to the environment, unless such environmental activity is
        pursuant to and in compliance with the conditions of a permit issued by
        the appropriate federal, state or local governmental authorities; shall
        furnish to Lender promptly and in any event within thirty (30) days
        after receipt thereof a copy of any notice, summons, lien, citation,
        directive, letter or other communication from any governmental agency or
        instrumentality concerning any intentional or unintentional action or
        omission on Borrower's part in connection with any environmental
        activity whether or not there is damage to the environment and/or other
        natural resources.

        Additional Assurances. Make, execute and deliver to Lender such
        promissory notes, mortgages, deeds of trust, security agreements,
        assignments, financing statements, instruments, documents and other
        agreements as Lender or its attorneys may reasonably request to evidence
        and secure the Loans and to perfect all Security Interests.

RECOVERY OF ADDITIONAL COSTS. If the imposition of or any change in any law,
rule, regulation or guideline, or the interpretation or application of any
thereof by any court or administrative or governmental authority (including any
request or policy not having the force of law) shall impose, modify or make
applicable any taxes (except federal, state or local income or franchise taxes
imposed on Lender), reserve requirements, capital adequacy requirements or other
obligations which would (A) increase the cost to Lender for extending or
maintaining the credit facilities to which this Agreement relates, (B) reduce
the amounts payable to Lender under this Agreement or the Related Documents, or
(C) reduce the rate of return on Lender's capital as a consequence of Lender's
obligations with respect to the credit facilities to which this Agreement
relates, then Borrower agrees to pay Lender such additional amounts as will
compensate Lender therefor, within five (5) days after Lender's written demand
for such payment, which demand shall be accompanied by an explanation of such
imposition or charge and a calculation in reasonable detail of the additional
amounts payable by Borrower, which explanation and calculations shall be
conclusive in the absence of manifest error.

LENDER'S EXPENDITURES. If any action or proceeding is commenced that would
materially affect Lender's interest in the Collateral or if Borrower fails to
comply with any provision of this Agreement or any Related Documents, including
but not limited to Borrower's failure to discharge or pay when due any amounts
Borrower is required to discharge or pay under this Agreement or any Related
Documents, Lender on Borrower's behalf may (but shall not be obligated to) take
any action that Lender deems appropriate, including but not limited to
discharging or paying all taxes, liens, security interests, encumbrances and
other claims, at any time levied or placed on any Collateral and paying all
costs for insuring, maintaining and preserving any Collateral. All such
expenditures incurred or paid by Lender for such purposes will then bear
interest at the rate charged under the Note from the date incurred or paid by
Lender to the date of repayment by Borrower. All such expenses will become a
part of the Indebtedness and, at Lender's option, will (A) be payable on demand;
(B) be added to the balance of the Note and be apportioned among and be payable
with any installment payments to become due during either (1) the term of any
applicable insurance policy; or (2) the remaining term of the Note; or (C) be
treated as a balloon payment which will be due and payable at the Note's
maturity.

NEGATIVE COVENANTS. Borrower covenants and agrees with Lender that while this
Agreement is in effect, Borrower shall not, without the prior written consent of
Lender:

        Indebtedness and Liens. (1) Except for trade debt incurred in the normal
        course of business and indebtedness to Lender contemplated by this
        Agreement, create, incur or assume indebtedness for borrowed money,
        including capital leases, (2) sell, transfer, mortgage, assign, pledge,
        lease, grant a security interest in, or encumber any of Borrower's
        assets (except as allowed as Permitted Liens), or (3) sell with recourse
        any of Borrower's accounts, except to Lender.

        Continuity of Operations. (1) Engage in any business activities
        substantially different than those in which Borrower is presently
        engaged, (2) cease operations, liquidate, merge, transfer, acquire or
        consolidate with any other entity, change its name, dissolve or transfer
        or sell Collateral out of the ordinary course of business, or (3) pay
        any dividends on Borrower's stock (other than dividends payable in its
        stock), provided, however that notwithstanding the foregoing, but only
        so long as no Event of Default has occurred and is continuing or would
        result from the payment of dividends, if Borrower is a "Subchapter S
        Corporation" (as defined in the Internal Revenue Code of 1986, as
        amended), Borrower may pay cash dividends on its stock to its
        shareholders from time to time in amounts necessary to enable the
        shareholders to pay income taxes and make estimated income tax payments
        to satisfy their liabilities under federal and state law which arise
        solely from their status as Shareholders of a Subchapter S Corporation
        because of their ownership of shares of Borrower's stock, or purchase or
        retire any of Borrower's outstanding shares or alter or amend Borrower's
        capital structure.

        Loans, Acquisitions and Guaranties. (1) Loan, invest in or advance money
        or assets, (2) purchase, create or acquire any interest in any other
        enterprise or entity, or (3) incur any obligation as surety or guarantor
        other than in the ordinary course of business.

CESSATION OF ADVANCES. If Lender has made any commitment to make any Loan to
Borrower, whether under this Agreement or under any other agreement, Lender
shall have no obligation to make Loan Advances or to disburse Loan proceeds if:
(A) Borrower or any Guarantor is in default under the terms of this Agreement or
any of the Related Documents or any other agreement that Borrower or any
Guarantor has with Lender; (B) Borrower or any Guarantor dies, becomes
incompetent or becomes insolvent, files a petition in bankruptcy or similar
proceedings, or is adjudged a bankrupt; (C) there occurs a material adverse
change in Borrower's financial condition, in the financial condition of any
Guarantor, or in the value of any Collateral securing any Loan; or (D) any
Guarantor seeks, claims or otherwise attempts to limit, modify or revoke such
Guarantor's guaranty of the Loan or any other loan with Lender; or (E) Lender in
good faith deems itself insecure, even though no Event of Default shall have
occurred.

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                             BUSINESS LOAN AGREEMENT
Loan No: NEW                       (Continued)                            Page 4

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a
right of setoff in all Borrower's accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Borrower holds
jointly with someone else and all accounts Borrower may open in the future.
However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Borrower authorizes Lender, to the
extent permitted by applicable law, to charge or setoff all sums owing on the
Indebtedness against any and all such accounts.

DEFAULT. Each of the following shall constitute an Event of Default under this
Agreement:

        Payment Default. Borrower fails to make any payment when due under the
        Loan.

        Other Defaults. Borrower fails to comply with or to perform any other
        term, obligation, covenant or condition contained in this Agreement or
        in any of the Related Documents or to comply with or to perform any
        term, obligation, covenant or condition contained in any other agreement
        between Lender and Borrower.

        Default in Favor of Third Parties. Borrower or any Grantor defaults
        under any loan, extension of credit, security agreement, purchase or
        sales agreement, or any other agreement, in favor of any other creditor
        or person that may materially affect any of Borrower's or any Grantor's
        property or Borrower's or any Grantor's ability to repay the Loans or
        perform their respective obligations under this Agreement or any of the
        Related Documents.

        False Statements. Any warranty, representation or statement made or
        furnished to Lender by Borrower or on Borrower's behalf under this
        Agreement or the Related Documents is false or misleading in any
        material respect, either now or at the time made or furnished or becomes
        false or misleading at any time thereafter.

        Insolvency. The dissolution or termination of Borrower's existence as a
        going business, the insolvency of Borrower, the appointment of a
        receiver for any part of Borrower's property, any assignment for the
        benefit of creditors, any type of creditor workout, or the commencement
        of any proceeding under any bankruptcy or insolvency laws by or against
        Borrower.

        Defective Collateralization. This Agreement or any of the Related
        Documents ceases to be in full force and effect (including failure of
        any collateral document to create a valid and perfected security
        interest or lien) at any time and for any reason.

        Creditor or Forfeiture Proceedings. Commencement of foreclosure or
        forfeiture proceedings, whether by judicial proceeding, self-help,
        repossession or any other method, by any creditor of Borrower or by any
        governmental agency against any collateral securing the Loan. This
        includes a garnishment of any of Borrower's accounts, including deposit
        accounts, with Lender. However, this Event of Default shall not apply if
        there is a good faith dispute by Borrower as to the validity or
        reasonableness of the claim which is the basis of the creditor or
        forfeiture proceeding and if Borrower gives Lender written notice of the
        creditor or forfeiture proceeding and deposits with Lender monies or a
        surety bond for the creditor or forfeiture proceeding, in an amount
        determined by Lender, in its sole discretion, as being an adequate
        reserve or bond for the dispute.

        Events Affecting Guarantor. Any of the preceding events occurs with
        respect to any Guarantor of any of the Indebtedness or any Guarantor
        dies or becomes incompetent, or revokes or disputes the validity of, or
        liability under, any Guaranty of the Indebtedness.

        Change in Ownership. Any change in ownership of twenty-five percent
        (25%) or more of the common stock of Borrower.

        Adverse Change. A material adverse change occurs in Borrower's financial
        condition, or Lender believes the prospect of payment or performance of
        the Loan is impaired.

        Insecurity. Lender in good faith believes itself insecure.

EFFECT OF AN EVENT OF DEFAULT. If any Event of Default shall occur, except where
otherwise provided in this Agreement or the Related Documents, all commitments
and obligations of Lender under this Agreement or the Related Documents or any
other agreement immediately will terminate (including any obligation to make
further Loan Advances or disbursements), and, at Lender's option, all
Indebtedness immediately will become due and payable, all without notice of any
kind to Borrower, except that in the case of an Event of Default of the type
described in the "Insolvency" subsection above, such acceleration shall be
automatic and not optional. In addition, Lender shall have all the rights and
remedies provided in the Related Documents or available at law, in equity, or
otherwise. Except as may be prohibited by applicable law, all of Lender's rights
and remedies shall be cumulative and may be exercised singularly or
concurrently. Election by Lender to pursue any remedy shall not exclude pursuit
of any other remedy, and an election to make expenditures or to take action to
perform an obligation of Borrower or of any Grantor shall not affect Lender's
right to declare a default and to exercise its rights and remedies.

NON-USE FEE. Borrower shall pay to Lender a non-use fee equal to .25% times the
maximum principal amount of this Note minus the daily average of the aggregate
outstanding principal amount of the loan. The non-use fee shall be calculated on
the basis of a year consisting of 360 days for actual days elapsed and shall be
payable quarterly in arrears on the 28th day of each May, August, November and
at maturity.

CONDITION SUBSEQUENT. In addition to the Events of Default set forth elsewhere
herein, an Event of Default shall occur hereunder if, within thirty days of the
date of this Agreement, Borrower shall have failed to deliver to Lender
corporate resolution(s) (i) empowering Larry D. Huffman, President and CEO, and
Ronald J. Walters, Treasurer and CFO, to execute and deliver this Agreement and
the Related Documents, and (ii) ratifying and confirming any and all actions
taken by Messrs. Huffman and Walters in furtherance of the transactions
contemplated herein and therein.

BANK HOLDING COMPANY RIDER. An exhibit, titled "Rider," is attached to this
Agreement and by this reference is made a part of this Agreement just as if all
the provisions, terms and conditions of the Exhibit had been fully set forth in
this Agreement.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of
this Agreement:

        Amendments. This Agreement, together with any Related Documents,
        constitutes the entire understanding and agreement of the parties as to
        the matters set forth in this Agreement. No alteration of or amendment
        to this Agreement shall be effective unless given in writing and signed
        by the party or parties sought to be charged or bound by the alteration
        or amendment.

        Attorneys' Fees; Expenses. Borrower agrees to pay upon demand all of
        Lender's costs and expenses, including Lender's attorneys' fees and
        Lender's legal expenses, incurred in connection with the enforcement of
        this Agreement. Lender may hire or pay someone else to help enforce this
        Agreement, and Borrower shall pay the costs and expenses of such
        enforcement. Costs and expenses include Lender's attorneys' fees and
        legal expenses whether or not there is a lawsuit, including attorneys'
        fees and legal expenses for bankruptcy proceedings (including efforts to
        modify or vacate any automatic stay or injunction), appeals, and any
        anticipated post-judgment collection services. Borrower also shall pay
        all court costs and such additional fees as may be directed by the
        court.

        Caption Headings. Caption headings in this Agreement are for convenience
        purposes only and are not to be used to interpret or define the
        provisions of this Agreement.

        Consent to Loan Participation. Borrower agrees and consents to Lender's
        sale or transfer, whether now or later, of one or more participation
        interests in the Loan to one or more purchasers, whether related or
        unrelated to Lender. Lender may provide, without any

<PAGE>

                             BUSINESS LOAN AGREEMENT
Loan No: NEW                       (Continued)                            Page 5

        limitation whatsoever, to any one or more purchasers, or potential
        purchasers, any information or knowledge Lender may have about Borrower
        or about any other matter relating to the Loan, and Borrower hereby
        waives any rights to privacy Borrower may have with respect to such
        matters. Borrower additionally waives any and all notices of sale of
        participation interests, as well as all notices of any repurchase of
        such participation interests. Borrower also agrees that the purchasers
        of any such participation interests will be considered as the absolute
        owners of such interests in the Loan and will have all the rights
        granted under the participation agreement or agreements governing the
        sale of such participation interests. Borrower further waives all rights
        of offset or counterclaim that it may have now or later against Lender
        or against any purchaser of such a participation interest and
        unconditionally agrees that either Lender or such purchaser may enforce
        Borrower's obligation under the Loan irrespective of the failure or
        insolvency of any holder of any interest in the Loan. Borrower further
        agrees that the purchaser of any such participation interests may
        enforce its interests irrespective of any personal claims or defenses
        that Borrower may have against Lender.

        Governing Law. This Agreement will be governed by, construed and
        enforced in accordance with federal law and the laws of the State of
        Illinois. This Agreement has been accepted by Lender in the State of
        Illinois.

        Choice of Venue. If there is a lawsuit, Borrower agrees upon Lender's
        request to submit to the jurisdiction of the courts of COOK County,
        State of Illinois.

        No Waiver by Lender. Lender shall not be deemed to have waived any
        rights under this Agreement unless such waiver is given in writing and
        signed by Lender. No delay or omission on the part of Lender in
        exercising any right shall operate as a waiver of such right or any
        other right. A waiver by Lender of a provision of this Agreement shall
        not prejudice or constitute a waiver of Lender's right otherwise to
        demand strict compliance with that provision or any other provision of
        this Agreement. No prior waiver by Lender, nor any course of dealing
        between Lender and Borrower, or between Lender and any Grantor, shall
        constitute a waiver of any of Lender's rights or of any of Borrower's or
        any Grantor's obligations as to any future transactions. Whenever the
        consent of Lender is required under this Agreement, the granting of such
        consent by Lender in any instance shall not constitute continuing
        consent to subsequent instances where such consent is required and in
        all cases such consent may be granted or withheld in the sole discretion
        of Lender.

        Notices. Any notice required to be given under this Agreement shall be
        given in writing, and shall be effective when actually delivered, when
        actually received by telefacsimile (unless otherwise required by law),
        when deposited with a nationally recognized overnight courier, or, if
        mailed, when deposited in the United States mail, as first class,
        certified or registered mail postage prepaid, directed to the addresses
        shown near the beginning of this Agreement. Any party may change its
        address for notices under this Agreement by giving formal written notice
        to the other parties, specifying that the purpose of the notice is to
        change the party's address. For notice purposes, Borrower agrees to keep
        Lender informed at all times of Borrower's current address. Unless
        otherwise provided or required by law, if there is more than one
        Borrower, any notice given by Lender to any Borrower is deemed to be
        notice given to all Borrowers.

        Severability. If a court of competent jurisdiction finds any provision
        of this Agreement to be illegal, invalid, or unenforceable as to any
        circumstance, that finding shall not make the offending provision
        illegal, invalid, or unenforceable as to any other circumstance. If
        feasible, the offending provision shall be considered modified so that
        it becomes legal, valid and enforceable. If the offending provision
        cannot be so modified, it shall be considered deleted from this
        Agreement. Unless otherwise required by law, the illegality, invalidity,
        or unenforceability of any provision of this Agreement shall not affect
        the legality, validity or enforceability of any other provision of this
        Agreement.

        Subsidiaries and Affiliates of Borrower. To the extent the context of
        any provisions of this Agreement makes it appropriate, including without
        limitation any representation, warranty or covenant, the word "Borrower"
        as used in this Agreement shall include all of Borrower's subsidiaries
        and affiliates. Notwithstanding the foregoing however, under no
        circumstances shall this Agreement be construed to require Lender to
        make any Loan or other financial accommodation to any of Borrower's
        subsidiaries or affiliates.

        Successors and Assigns. All covenants and agreements contained by or on
        behalf of Borrower shall bind Borrower's successors and assigns and
        shall inure to the benefit of Lender and its successors and assigns.
        Borrower shall not, however, have the right to assign Borrower's rights
        under this Agreement or any interest therein, without the prior written
        consent of Lender.

        Survival of Representations and Warranties. Borrower understands and
        agrees that in extending Loan Advances, Lender is relying on all
        representations, warranties, and covenants made by Borrower in this
        Agreement or in any certificate or other instrument delivered by
        Borrower to Lender under this Agreement or the Related Documents.
        Borrower further agrees that regardless of any investigation made by
        Lender, all such representations, warranties and covenants will survive
        the extension of Loan Advances and delivery to Lender of the Related
        Documents, shall be continuing in nature, shall be deemed made and
        redated by Borrower at the time each Loan Advance is made, and shall
        remain in full force and effect until such time as Borrower's
        Indebtedness shall be paid in full, or until this Agreement shall be
        terminated in the manner provided above, whichever is the last to occur.

        Time is of the Essence. Time is of the essence in the performance of
        this Agreement.

        Waive Jury. All parties to this Agreement hereby waive the right to any
        jury trial in any action, proceeding, or counterclaim brought by any
        party against any other party.

DEFINITIONS. The following capitalized words and terms shall have the following
meanings when used in this Agreement. Unless specifically stated to the
contrary, all references to dollar amounts shall mean amounts in lawful money of
the United States of America. Words and terms used in the singular shall include
the plural, and the plural shall include the singular, as the context may
require. Words and terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code. Accounting
words and terms not otherwise defined in this Agreement shall have the meanings
assigned to them in accordance with generally accepted accounting principles as
in effect on the date of this Agreement:

        Advance. The word "Advance" means a disbursement of Loan funds made, or
        to be made, to Borrower or on Borrower's behalf on a line of credit or
        multiple advance basis under the terms and conditions of this Agreement.

        Agreement. The word "Agreement" means this Business Loan Agreement, as
        this Business Loan Agreement may be amended or modified from time to
        time, together with all exhibits and schedules attached to this Business
        Loan Agreement from time to time.

        Borrower. The word "Borrower" means KANKAKEE BANCORP, INC., and all
        other persons and entities signing the Note in whatever capacity.

        Collateral. The word "Collateral" means all property and assets granted
        as collateral security for a Loan, whether real or personal property,
        whether granted directly or indirectly, whether granted now or in the
        future, and whether granted in the form of a security interest,
        mortgage, collateral mortgage, deed of trust, assignment, pledge, crop
        pledge, chattel mortgage, collateral chattel mortgage, chattel trust,
        factor's lien, equipment trust, conditional sale, trust receipt, lien,
        charge, lien or title retention contract, lease or consignment intended
        as a security device, or any other security or lien interest whatsoever,
        whether created by law, contract, or otherwise.

        Environmental Laws. The words "Environmental Laws" mean any and all
        state, federal and local statutes, regulations and ordinances relating
        to the protection of human health or the environment, including without
        limitation the Comprehensive Environmental Response,

<PAGE>

                             BUSINESS LOAN AGREEMENT
Loan No: NEW                       (Continued)                            Page 6

        Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section
        9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization
        Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials
        Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource
        Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other
        applicable state or federal laws, rules, or regulations adopted pursuant
        thereto.

        Event of Default. The words "Event of Default" mean any of the events of
        default set forth in this Agreement in the default section of this
        Agreement.

        GAAP. The word "GAAP" means generally accepted accounting principles.

        Grantor. The word "Grantor" means each and all of the persons or
        entities granting a Security Interest in any Collateral for the Loan,
        including without limitation all Borrowers granting such a Security
        Interest.

        Guarantor. The word "Guarantor" means any guarantor, surety, or
        accommodation party of any or all of the Loan.

        Guaranty. The word "Guaranty" means the guaranty from Guarantor to
        Lender, including without limitation a guaranty of all or part of the
        Note.

        Hazardous Substances. The words "Hazardous Substances" mean materials
        that, because of their quantity, concentration or physical, chemical or
        infectious characteristics, may cause or pose a present or potential
        hazard to human health or the environment when improperly used, treated,
        stored, disposed of, generated, manufactured, transported or otherwise
        handled. The words "Hazardous Substances" are used in their very
        broadest sense and include without limitation any and all hazardous or
        toxic substances, materials or waste as defined by or listed under the
        Environmental Laws. The term "Hazardous Substances" also includes,
        without limitation, petroleum and petroleum by-products or any fraction
        thereof and asbestos.

        Indebtedness. The word "Indebtedness" means the indebtedness evidenced
        by the Note or Related Documents, including all principal and interest
        together with all other indebtedness and costs and expenses for which
        Grantor is responsible under this Agreement or under any of the Related
        Documents, and all other obligations, debts and liabilities, plus
        interest thereon, of Borrower to Lender, or any one or more of them, as
        well as all claims by Lender against Borrower or any one or more of
        them, whether now existing or hereafter arising, whether related or
        unrelated to the purpose of the Note, whether voluntary or otherwise,
        whether due or not due, direct or indirect, absolute or contingent,
        liquidated or unliquidated and whether Borrower may be liable
        individually or jointly with others, whether obligated as guarantor,
        surety, accommodation party or otherwise, and whether recovery upon such
        amounts may be or hereafter may become barred by any statute of
        limitations, and whether the obligation to repay such amounts may be or
        hereafter may become otherwise unenforceable.

        Lender. The word "Lender" means LASALLE BANK NATIONAL ASSOCIATION, its
        successors and assigns.

        Loan. The word "Loan" means any and all loans and financial
        accommodations from Lender to Borrower whether now or hereafter
        existing, and however evidenced, including without limitation those
        loans and financial accommodations described herein or described on any
        exhibit or schedule attached to this Agreement from time to time.

        Note. The word "Note" means the Note executed by KANKAKEE BANCORP, INC.
        in the principal amount of $1,500,000.00 dated February 28, 2003,
        together with all renewals of, extensions of, modifications of,
        refinancings of, consolidations of, and substitutions for the note or
        credit agreement.

        Permitted Liens. The words "Permitted Liens" mean (1) liens and security
        interests securing Indebtedness owed by Borrower to Lender; (2) liens
        for taxes, assessments, or similar charges either not yet due or being
        contested in good faith; (3) liens of materialmen, mechanics,
        warehousemen, or carriers, or other like liens arising in the ordinary
        course of business and securing obligations which are not yet
        delinquent; (4) purchase money liens or purchase money security
        interests upon or in any property acquired or held by Borrower in the
        ordinary course of business to secure indebtedness outstanding on the
        date of this Agreement or permitted to be incurred under the paragraph
        of this Agreement titled "Indebtedness and Liens"; (5) liens and
        security interests which, as of the date of this Agreement, have been
        disclosed to and approved by the Lender in writing; and (6) those liens
        and security interests which in the aggregate constitute an immaterial
        and insignificant monetary amount with respect to the net value of
        Borrower's assets.

        Related Documents. The words "Related Documents" mean all promissory
        notes, credit agreements, loan agreements, environmental agreements,
        guaranties, security agreements, mortgages, deeds of trust, security
        deeds, collateral mortgages, and all other instruments, agreements and
        documents, whether now or hereafter existing, executed in connection
        with the Loan.

        Security Agreement. The words "Security Agreement" mean and include
        without limitation any agreements, promises, covenants, arrangements,
        understandings or other agreements, whether created by law, contract, or
        otherwise, evidencing, governing, representing, or creating a Security
        Interest.

        Security Interest. The words "Security Interest" mean, without
        limitation, any and all types of collateral security, present and
        future, whether in the form of a lien, charge, encumbrance, mortgage,
        deed of trust, security deed, assignment, pledge, crop pledge, chattel
        mortgage, collateral chattel mortgage, chattel trust, factor's lien,
        equipment trust, conditional sale, trust receipt, lien or title
        retention contract, lease or consignment intended as a security device,
        or any other security or lien interest whatsoever whether created by
        law, contract, or otherwise.

BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN
AGREEMENT AND BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT IS
DATED FEBRUARY 28, 2003.

BORROWER:

KANKAKEE BANCORP, INC.

<TABLE>
<S>                                                                <C>
By: /s/ Larry D. Huffman                                           By: /s/ Ronald J. Walters
   -------------------------------------------------                  --------------------------------------------
    Larry D. Huffman, President & CEO of KANKAKEE                     /or Ronald J. Walters, Treasurer & CFO of
    BANCORP, INC.                                                     KANKAKEE BANCORP, INC.
</TABLE>

<PAGE>

                             BUSINESS LOAN AGREEMENT
Loan No: NEW                       (Continued)                            Page 7

LENDER:

LASALLE BANK NATIONAL ASSOCIATION

By:
   -------------------------------------------------
    Authorized Signer

   LASER PRO Lending. Ver. 5.21.00.003 Copr. Harland Financial Solutions, Inc.
   1997, 2003. All Rights Reserved. - IL C:\APPS\CFI\LPL\C4O.FC TR-12402 PR-44

<PAGE>

                                      RIDER

Borrower:  KANKAKEE BANCORP, INC.     Lender:  LASALLE BANK NATIONAL ASSOCIATION
           310 S. Schuyler Avenue              MAIN OFFICE
           Kankakee, IL  60901                 135 SOUTH LASALLE STREET
                                               CHICAGO, IL 60603

This RIDER is attached to and by this reference is made a part of the Business
Loan Agreement, dated February 28, 2003, and executed in connection with a loan
or other financial accommodations between LASALLE BANK NATIONAL ASSOCIATION and
KANKAKEE BANCORP, INC.

Capitalized terms used herein without definition shall have the respective
meanings given thereto in the Agreement. In the event of a conflict between the
provisions of this Rider and the provisions of the Agreement, the provisions of
this Rider shall prevail.

1.      DEFINITIONS. Unless otherwise defined herein, capitalized terms used
herein without definition shall have the respective meanings given thereto in
the Agreement.

     "FDIC" means Federal Deposit Insurance Corporation.

     "FRS" means Federal Reserve System.

     "GAAP" means generally accepted accounting principles, consistently
     applied.

     "Subsidiary" means KFS Bank, F.S.B., a federal savings bank.

     "Subsidiary Shares" means 100% of the capital stock of the Subsidiary, as
more particularly described in that certain Commercial Pledge Agreement dated as
of February 28, 2003 between Borrower, as grantor, and Lender, as amended from
time to time.

2.      REPRESENTATIONS AND WARRANTIES. In addition to the representation and
warranties set forth in the Agreement, Borrower makes the following
representations and warranties:

(a)     Borrower's primary business is that of a unitary thrift holding company.
All necessary regulatory approvals have been obtained for Borrower to conduct
its business.

(b)     The deposit accounts of the Subsidiary are insured by FDIC.

(c)     None of the Subsidiary Shares constitute margin stock, as defined in
Regulation U of the Board of Governors of FRS.

3.      AFFIRMATIVE COVENANTS. In addition to the affirmative covenants set
forth in the Agreement, Borrower will:

(a)     furnish and deliver to Lender:

(i)     as soon as practicable, and in no event later than forty-five (45) days
after the end of each of the first three calendar quarters of Borrower and the
Subsidiary, a copy of: (1) the balance sheet, profit and loss statement, surplus
statement and any supporting schedules prepared in accordance with GAAP and
signed by the Presidents and Chief Financial Officer of Borrower and the
Subsidiary; and (2) all financial statements, including, but not limited to, all
call reports, filed with any state or federal bank regulatory authority;

(ii)    as soon as practicable, and in no event later than one hundred twenty
(120) days after the end of each calendar year, a copy of: (1) the consolidated
balance sheets as of the end of such year and the consolidated profit and loss
and surplus statements for Borrower and the Subsidiary for such year, audited by
independent certified public accountants satisfactory to Lender and accompanied
by an unqualified opinion; and (2) all financial statements and reports,
including, but not limited to call reports and annual reports, filed annually
with any state or federal regulatory authority;

(iii)   as soon as practicable, and in no event later than forty-five (45) days
after the end of each calendar quarter, copies of the then current loan/asset
watch list, the substandard loan/asset list, the nonperforming loan/asset list
and other real estate owned list of the Subsidiary;

(iv)    immediately after receiving knowledge thereof, notice in writing of all
charges, assessment, actions, suits and proceedings that are proposed or
initiated by, or brought before, any court or governmental department,
commission, board or other administrative agency, in connection with Borrower or
the Subsidiary (other than litigation in the ordinary course of business not
involving the FRS, the FDIC or the Illinois Office of Banks and Real Estate, or
the Office of Thrift Supervision (OTS) which, if adversely decided, would not
have a material effect on the financial condition or operations of Borrower or
the Subsidiary); and

(v)     promptly after the occurrence thereof, notice of any other matter which
has resulted in a materially adverse change in the financial condition or
operations of Borrower or the Subsidiary;

(b)     contemporaneously with the furnishing of a copy of each annual report
and of each quarterly statement provided pursuant to Section 3(a)(i) and (ii)
above, deliver to Lender, a certificate signed by the President and the Chief
Financial Officer of Borrower, containing a computation of the then current
financial ratios specified in Sections 3(c) and (d) below, and stating that no
Event of Default has occurred or is continuing, or, if such event exists,
describing such event and the steps, if any, that are being taken to cure it,
and the time within which such cure will occur;

(c)     maintain such capital as is necessary to cause Borrower to have adequate
capital in accordance with the regulations of the FRS and any requirements or
conditions that the FRS has or may impose on Borrower;

(d)     maintain such capital as is necessary to cause the Subsidiary to be
classified as a "well capitalized" institution in accordance with the
regulations of the FDIC, currently measured on the basis of information filed by
Borrower in its quarterly Consolidated Report of Income and Condition (the "Call
Report") as follows:

(i)     Total Capital to Risk-Weighted Assets of not less than 10%;

(ii)    Tier 1 Capital to Risk-Weighted Assets of not less than 6%; and

(iii)   Tier 1 Capital to average Total Assets of not less than 5%. For purposes
of this clause, the average Total Assets shall be determined on the basis of
information contained in the preceding four (4) Call Reports.

<PAGE>

                                      RIDER
Loan No: NEW                       (Continued)                            Page 2

(e)     cause the Subsidiary's ratio of (a) nonperforming loans plus other real
estate owned to (b) total loans plus other real estate owned to be less than or
equal to three percent (3%) as of the end of each of its fiscal quarters. For
purposes of this clause, "nonperforming loans" shall mean the sum of all
non-accrual loans and loans on which any payment is ninety (90) or more days
past due;

(f)     cause the ratio of the loan and lease loss reserve to the total loans of
the Subsidiary to be not less than one percent (1.0%) at all times;

4.      NEGATIVE COVENANTS. In addition to the negative covenants set forth in
the Agreement, Borrower will not, without Lender's prior written consent:

(a)     engage in any business or activity not permitted by all applicable laws
and regulations, including without limitation, Lender Holding Company Act of
1954, the banking laws of the State of Illinois, the Federal Deposit Insurance
Act and any regulations promulgated thereunder;

(b)     make any loan or advance secured by the capital stock of another bank or
depository institution (except for loans made in the ordinary course of
business), or acquire the capital stock, assets or obligations of or any
interest in another bank or depository institution;

(c)     directly or indirectly create, assume, incur, suffer or permit to exist
any pledge, encumbrance, security interest, assignment, lien or charge of any
kind or character on the Subsidiary Shares or any other capital stock owned by
Borrower;

(d)     cause or allow the percent of Subsidiary Shares to diminish as a
percentage of the outstanding capital stock of the Subsidiary;

(e)     sell, transfer, issue, reissue, exchange or grant any option with
respect to the Subsidiary Shares; or

(f)     engage in any unsafe or unsound banking practices.

5.      EVENTS OF DEFAULT. In addition to the Events of Default set forth in the
Agreement, each of the following shall constitute an Event of Default under the
Agreement:

(a)     if the FRS, the FDIC, the Illinois Office of Banks and Real Estate or
other governmental agency charged with the regulation of bank holding companies
or depository institutions: (i) issues to Borrower or the Subsidiary, or
initiates any action, suit or proceeding to obtain against, impose on or require
from Borrower or the Subsidiary, a cease and desist order or similar regulatory
order, the assessment of civil monetary penalties, articles of agreement, a
memorandum of understanding, a capital directive, a capital restoration plan,
restrictions that prevent or as a practical matter impair the payment of
dividends by the Subsidiary or the payments of any debt by Borrower,
restrictions that make the payment of dividends by the Subsidiary or the payment
of debt by Borrower subject to prior regulatory approval, a notice or finding
under the State of Illinois Banking Act or Section 8(a) of the Federal Deposit
Insurance Act, or any similar enforcement action, measure or proceeding; or (ii)
issues to any officer or director of Borrower or the Subsidiary, or initiates
any action, suit or proceeding to obtain against, impose on or require from any
such officer or director, a cease and desist order or similar regulatory order,
a removal order, a suspension order, or the assessment of civil monetary
penalties;

(b)     if the Subsidiary is notified that it is considered an institution in
"troubled condition" within the meaning of 12 U.S.C. Section 1831i and the
regulations promulgated thereunder, or if a conservator or receiver is appointed
for the Subsidiary

8607116.

THIS RIDER IS EXECUTED ON FEBRUARY 28, 2003.

BORROWER:

KANKAKEE BANCORP, INC.

By: /s/ Larry D. Huffman
   -------------------------------------------------
    Larry D. Huffman, President & CEO of KANKAKEE
    BANCORP, INC.

By: /s/ Ronald J. Walters
   -------------------------------------------------
    /or Ronald J. Walters, Treasurer & CFO of
    KANKAKEE BANCORP, INC.

LENDER:

LASALLE BANK NATIONAL ASSOCIATION

By:
   -------------------------------------------------
    Authorized Signer

   LASER PRO Lending. Ver. 5.21.00.003 Copr. Harland Financial Solutions, Inc.
   1997, 2003. All Rights Reserved. - IL C:\APPS\CFI\LPL\C4O.FC TR-12402 PR-44

<PAGE>

                                 PROMISSORY NOTE

Borrower:  KANKAKEE BANCORP, INC.     Lender:  LASALLE BANK NATIONAL ASSOCIATION
           310 S. Schuyler Avenue              MAIN OFFICE
           Kankakee, IL  60901                 135 SOUTH LASALLE STREET
                                               CHICAGO, IL 60603

<TABLE>
<S>                                        <C>                                   <C>
Principal Amount: $1,500,000.00            Initial Rate: 4.250%                  Date of Note:  February 28, 2003
</TABLE>

PROMISE TO PAY. KANKAKEE BANCORP, INC. ("Borrower") promises to pay to LASALLE
BANK NATIONAL ASSOCIATION ("Lender"), or order, in lawful money of the United
States of America, the principal amount of One Million Five Hundred Thousand &
00/100 Dollars ($1,500,000.00) or so much as may be outstanding, together with
interest on the unpaid outstanding principal balance of each advance. Interest
shall be calculated from the date of each advance until repayment of each
advance.

PAYMENT. Borrower will pay this loan in one payment of all outstanding principal
plus all accrued unpaid interest on February 28, 2004. In addition, Borrower
will pay regular quarterly payments of all accrued unpaid interest due as of
each payment date, beginning May 28, 2003, with all subsequent interest payments
to be due on the same day of each quarter after that. Unless otherwise agreed or
required by applicable law, payments will be applied first to accrued unpaid
interest, then to principal, and any remaining amount to any unpaid collection
costs. The annual interest rate for this Note is computed on a 365/360 basis;
that is, by applying the ratio of the annual interest rate over a year of 360
days, multiplied by the outstanding principal balance, multiplied by the actual
number of days the principal balance is outstanding. Borrower will pay Lender at
Lender's address shown above or at such other place as Lender may designate in
writing.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from
time to time based on changes in an index which is Lender's Prime Rate (the
"Index"). This is the rate Lender charges, or would charge, on 90-day unsecured
loans to the most creditworthy corporate customers. This rate may or may not be
the lowest rate available from Lender at any given time. Lender will tell
Borrower the current Index rate upon Borrower's request. The interest rate
change will not occur more often than each day. Borrower understands that Lender
may make loans based on other rates as well. The Index currently is 4.250% per
annum. The interest rate to be applied to the unpaid principal balance of this
Note will be at a rate equal to the Index, resulting in an initial rate of
4.250% per annum. NOTICE: Under no circumstances will the interest rate on this
Note be more than the maximum rate allowed by applicable law.

PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed
earlier than it is due. Early payments will not, unless agreed to by Lender in
writing, relieve Borrower of Borrower's obligation to continue to make payments
of accrued unpaid interest. Rather, early payments will reduce the principal
balance due. Borrower agrees not to send Lender payments marked "paid in full",
"without recourse", or similar language. If Borrower sends such a payment,
Lender may accept it without losing any of Lender's rights under this Note, and
Borrower will remain obligated to pay any further amount owed to Lender. All
written communications concerning disputed amounts, including any check or other
payment instrument that indicates that the payment constitutes "payment in full"
of the amount owed or that is tendered with other conditions or limitations or
as full satisfaction of a disputed amount must be mailed or delivered to:
LASALLE BANK NATIONAL ASSOCIATION, MAIN OFFICE, 135 SOUTH LASALLE STREET,
CHICAGO, IL 60603.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final
maturity, Lender, at its option, may, if permitted under applicable law,
increase the variable interest rate on this Note to 2.000 percentage points over
the Index. The interest rate will not exceed the maximum rate permitted by
applicable law.

DEFAULT. Each of the following shall constitute an event of default ("Event of
Default") under this Note:

        Payment Default. Borrower fails to make any payment when due under this
        Note.

        Other Defaults. Borrower fails to comply with or to perform any other
        term, obligation, covenant or condition contained in this Note or in any
        of the related documents or to comply with or to perform any term,
        obligation, covenant or condition contained in any other agreement
        between Lender and Borrower.

        Default in Favor of Third Parties. Borrower or any Grantor defaults
        under any loan, extension of credit, security agreement, purchase or
        sales agreement, or any other agreement, in favor of any other creditor
        or person that may materially affect any of Borrower's property or
        Borrower's ability to repay this Note or perform Borrower's obligations
        under this Note or any of the related documents.

        False Statements. Any warranty, representation or statement made or
        furnished to Lender by Borrower or on Borrower's behalf under this Note
        or the related documents is false or misleading in any material respect,
        either now or at the time made or furnished or becomes false or
        misleading at any time thereafter.

        Insolvency. The dissolution or termination of Borrower's existence as a
        going business, the insolvency of Borrower, the appointment of a
        receiver for any part of Borrower's property, any assignment for the
        benefit of creditors, any type of creditor workout, or the commencement
        of any proceeding under any bankruptcy or insolvency laws by or against
        Borrower.

        Creditor or Forfeiture Proceedings. Commencement of foreclosure or
        forfeiture proceedings, whether by judicial proceeding, self-help,
        repossession or any other method, by any creditor of Borrower or by any
        governmental agency against any collateral securing the loan. This
        includes a garnishment of any of Borrower's accounts, including deposit
        accounts, with Lender. However, this Event of Default shall not apply if
        there is a good faith dispute by Borrower as to the validity or
        reasonableness of the claim which is the basis of the creditor or
        forfeiture proceeding and if Borrower gives Lender written notice of the
        creditor or forfeiture proceeding and deposits with Lender monies or a
        surety bond for the creditor or forfeiture proceeding, in an amount
        determined by Lender, in its sole discretion, as being an adequate
        reserve or bond for the dispute.

        Events Affecting Guarantor. Any of the preceding events occurs with
        respect to any guarantor, endorser, surety, or accommodation party of
        any of the indebtedness or any guarantor, endorser, surety, or
        accommodation party dies or becomes incompetent, or revokes or disputes
        the validity of, or liability under, any guaranty of the indebtedness
        evidenced by this Note.

        Change In Ownership. Any change in ownership of twenty-five percent
        (25%) or more of the common stock of Borrower.

        Adverse Change. A material adverse change occurs in Borrower's financial
        condition, or Lender believes the prospect of payment or performance of
        this Note is impaired.

        Insecurity. Lender in good faith believes itself insecure.

LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest immediately due, and then
Borrower will pay that amount.

ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect
this Note if Borrower does not pay. Borrower will pay Lender that amount. This
includes, subject to any limits under applicable law, Lender's attorneys' fees
and Lender's legal expenses, whether or not there is a lawsuit, including
attorneys' fees, expenses for bankruptcy proceedings (including efforts to
modify or vacate any automatic stay or injunction), and appeals. If not
prohibited by applicable law, Borrower also will pay any court costs, in
addition to all other sums provided by

<PAGE>

                                 PROMISSORY NOTE
Loan No: NEW                       (Continued)                            Page 2

law.

JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any
action, proceeding, or counterclaim brought by either Lender or Borrower against
the other.

GOVERNING LAW. This Note will be governed by, construed and enforced in
accordance with federal law and the laws of the State of Illinois. This Note has
been accepted by Lender in the State of Illinois.

CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to
submit to the jurisdiction of the courts of COOK County, State of Illinois.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $20.00 if Borrower
makes a payment on Borrower's loan and the check or preauthorized charge with
which Borrower pays is later dishonored.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a
right of setoff in all Borrower's accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Borrower holds
jointly with someone else and all accounts Borrower may open in the future.
However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Borrower authorizes Lender, to the
extent permitted by applicable law, to charge or setoff all sums owing on the
indebtedness against any and all such accounts.

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under
this Note may be requested either orally or in writing by Borrower or as
provided in this paragraph. Lender may, but need not, require that all oral
requests be confirmed in writing. All communications, instructions, or
directions by telephone or otherwise to Lender are to be directed to Lender's
office shown above. The following persons currently are authorized to request
advances and authorize payments under the line of credit until Lender receives
from Borrower, at Lender's address shown above, written notice of revocation of
their authority: Larry D. Huffman, President & CEO of KANKAKEE BANCORP, INC.;
and /or Ronald J. Walters, Treasurer & CFO of KANKAKEE BANCORP, INC. Borrower
agrees to be liable for all sums either: (A) advanced in accordance with the
instructions of an authorized person or (B) credited to any of Borrower's
accounts with Lender. The unpaid principal balance owing on this Note at any
time may be evidenced by endorsements on this Note or by Lender's internal
records, including daily computer print-outs. Lender will have no obligation to
advance funds under this Note if: (A) Borrower or any guarantor is in default
under the terms of this Note or any agreement that Borrower or any guarantor has
with Lender, including any agreement made in connection with the signing of this
Note; (B) Borrower or any guarantor ceases doing business or is insolvent; (C)
any guarantor seeks, claims or otherwise attempts to limit, modify or revoke
such guarantor's guarantee of this Note or any other loan with Lender; (D)
Borrower has applied funds provided pursuant to this Note for purposes other
than those authorized by Lender; or (E) Lender in good faith believes itself
insecure.

NON-USE FEE. Borrower shall pay to Lender a non-use fee equal to .25% times the
maximum principal amount of this Note minus the daily average of the aggregate
outstanding principal amount of the loan. The non-use fee shall be calculated on
the basis of a year consisting of 360 days for actual days elapsed and shall be
payable quarterly in arrears on the 28th day of each May, August, November and
at maturity.

LIBOR RIDER. An exhibit, titled "Interest Rate Rider," is attached to this Note
and by this reference is made a part of this Note just as if all the provisions,
terms and conditions of the Exhibit had been fully set forth in this Note.

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and
upon Borrower's heirs, personal representatives, successors and assigns, and
shall inure to the benefit of Lender and its successors and assigns.

GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or
remedies under this Note without losing them. Borrower and any other person who
signs, guarantees or endorses this Note, to the extent allowed by law, waive
presentment, demand for payment, and notice of dishonor. Upon any change in the
terms of this Note, and unless otherwise expressly stated in writing, no party
who signs this Note, whether as maker, guarantor, accommodation maker or
endorser, shall be released from liability. All such parties agree that Lender
may renew or extend (repeatedly and for any length of time) this loan or release
any party or guarantor or collateral; or impair, fail to realize upon or perfect
Lender's security interest in the collateral; and take any other action deemed
necessary by Lender without the consent of or notice to anyone. All such parties
also agree that Lender may modify this loan without the consent of or notice to
anyone other than the party with whom the modification is made. The obligations
under this Note are joint and several.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF
THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO
THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

KANKAKEE BANCORP, INC.

<TABLE>
<S>                                                                <C>
By: /s/ Larry D. Huffman                                           By: /s/ Ronald J. Walters
   -------------------------------------------------                  --------------------------------------------
   Larry D. Huffman, President & CEO of KANKAKEE                      /or Ronald J. Walters, Treasurer & CFO of
   BANCORP, INC.                                                      KANKAKEE BANCORP, INC.
</TABLE>

   LASER PRO Lending. Ver. 5.21.00.003 Copr. Harland Financial Solutions, Inc.
   1997, 2003. All Rights Reserved. - IL C:\APPS\CFI\LPL\C4O.FC TR-12402 PR-44

<PAGE>

                               INTEREST RATE RIDER

Borrower:  KANKAKEE BANCORP, INC.     Lender:  LASALLE BANK NATIONAL ASSOCIATION
           310 S. Schuyler Avenue              MAIN OFFICE
           Kankakee, IL  60901                 135 SOUTH LASALLE STREET
                                               CHICAGO, IL 60603

This INTEREST RATE RIDER is attached to and by this reference is made a part of
the Promissory Note, dated February 28, 2003, and executed in connection with a
loan or other financial accommodations between LASALLE BANK NATIONAL ASSOCIATION
and KANKAKEE BANCORP, INC.

        Capitalized words used herein without definition have the respective
meanings assigned to such terms in the Note.

        Notwithstanding anything to the contrary in the Note, the following
provisions shall apply to the Note as of fully set forth therein. In the event
of a conflict between the Note provisions and the provisions of this Rider, the
provisions of this Rider shall prevail.

        The outstanding principal amount of the Note shall bear interest, at
Borrower's option, at the Index (as defined in the Note) or at "Adjusted LIBOR"
(as hereinafter defined). Payments of interest computed at the index shall be
payable in accordance with the Note. Prepayments of principal bearing interest
at the index may be made in accordance with the Note.

        Each portion of the outstanding principal balance of the Note which
bears interest at "Adjusted LIBOR" (hereinafter defined). "Adjusted LIBOR" means
a rate of interest equal to one and three fourths of one percent (1.75%) per
annum in excess of the per annum rate of interest at which U.S. dollar deposits
in an amount comparable to the amount of the relevant LIBOR Loan and for a
period equal to the relevant "Interest Period" (hereinafter defined) are offered
generally to Lender (rounded upward if necessary, to the nearest 1/16 of 1.00%)
in the London Interbank Eurodollar market at 11:00 a.m. (London time) two
banking days prior to the commencement of each Interest Period, such rate to
remain fixed for such Interest Period. "Interest Period" shall mean successive
one, two or three month periods as selected from time to time by Borrower by
notice given to Lender not less than three banking days prior to the first day
of each respective Interest Period; provided that: (i) each such one, two or
three month period occurring after such initial period shall commence on the day
on which the next preceding period expires; (ii) the final Interest Period shall
be such that its expiration occurs on or before the stated maturity date of the
Note; and (iii) if for any reason Borrower shall fail to select timely a period,
then it shall be deemed to have selected the Index. Interest on each LIBOR Loan
shall be payable on the last banking day of each Interest Period with respect
thereto, commencing on the first such date to occur after the date hereof, at
maturity, after maturity on demand, and on the date of any payment hereon on the
amount paid. Borrower hereby further promises to pay to the order of Lender, on
demand, interest on the unpaid principal amount hereof after maturity (whether
by acceleration or otherwise) at the rate most recently borne by such LIBOR Loan
plus 2%.

        Lender's determination of Adjusted LIBOR as provided above shall be
conclusive, absent manifest error. Furthermore, if Lender determines, in good
faith (which determination shall be conclusive, absent manifest error), prior to
the commencement of any Interest Period that (a) U.S. dollar deposits of
sufficient amount and maturity for funding any LIBOR Loan are not available to
Lender in the London Interbank Eurodollar market in the ordinary course of
business, or (b) by reason of circumstances affecting the London Interbank
Eurodollar market, adequate and fair means do not exist for ascertaining the
rate of interest to be applicable to the relevant LIBOR Loan, Lender shall
promptly notify Borrower and such LIBOR Loan shall automatically convert on the
last day of its then-current Interest Period to a loan bearing interest at the
Index.

        If, after the date hereof, the introduction of, or any change in any
applicable law, treaty, rule, regulation or guideline or in the interpretation
or administration thereof by any governmental authority or any central bank or
other fiscal, monetary or other authority having jurisdiction over Lender or its
lending office (a "Regulatory Change"), shall, in the opinion of counsel to
Lender, makes it unlawful for Lender to make or maintain any LIBOR Loan
evidenced hereby, then Lender shall promptly notify Borrower and such LIBOR Loan
shall automatically convert on the last day of its then-current Interest Period
to a loan bearing interest at the Index.

        If, for any reason, any LIBOR Loan is paid prior to the last banking day
of its then-current Interest Period, Borrower agrees to indemnify Lender against
any loss (including any loss on redeployment of the funds repaid), cost or
expense incurred by Lender as a result of such prepayment.

        If any Regulatory Change (whether or not having the force of law) shall
(a) impose, modify or deem applicable any assessment, reserve, special deposit
or similar requirement against assets held by, or deposits in or for the account
of or loans by, or any other acquisition of funds or disbursements by, Lender;
(b) subject Lender or any LIBOR Loan to any tax, duty, charge, stamp tax or fee
or change the basis of taxation of payments to Lender of principal or interest
due from Borrower to Lender hereunder (other than a change in the taxation of
the overall net income of Lender); or (c) impose on Lender any other condition
regarding such LIBOR Loan or Lender's funding thereof, and Lender shall
determine (which determination shall be conclusive, absent manifest error) that
the result of the foregoing is to increase the cost to Lender of making or
maintaining such LIBOR Loan or to reduce the amount of principal or interest
received by Lender hereunder, then Borrower shall pay to Lender, on demand, such
additional amounts as Lender shall, from time to time, determine are sufficient
to compensate and indemnify Lender for such increased cost or reduced amount.

Ver. 109704.

THIS INTEREST RATE RIDER IS EXECUTED ON FEBRUARY 28, 2003.

BORROWER:

KANKAKEE BANCORP, INC.

By: /s/ Larry D. Huffman
   -------------------------------------------------
   Larry D. Huffman, President & CEO of KANKAKEE
   BANCORP, INC.

 By: Ronald J. Walters
    ------------------------------------------------
    /or Ronald J. Walters, Treasurer & CFO of
    KANKAKEE BANCORP, INC.

   LASER PRO Lending. Ver. 5.21.00.003 Copr. Harland Financial Solutions, Inc.
   1997, 2003. All Rights Reserved. - IL C:\APPS\CFI\LPL\C4O.FC TR-12402 PR-44

<PAGE>

                           COMMERCIAL PLEDGE AGREEMENT

Grantor:   KANKAKEE BANCORP, INC.     Lender:  LASALLE BANK NATIONAL ASSOCIATION
           310 S. Schuyler Avenue              MAIN OFFICE
           Kankakee, IL  60901                 135 SOUTH LASALLE STREET
                                               CHICAGO, IL  60603

THIS COMMERCIAL PLEDGE AGREEMENT dated February 28, 2003, is made and executed
between KANKAKEE BANCORP, INC. ("Grantor") and LASALLE BANK NATIONAL ASSOCIATION
("Lender").

GRANT OF SECURITY INTEREST. For valuable consideration, Grantor grants to Lender
a security interest in the Collateral to secure the Indebtedness and agrees that
Lender shall have the rights stated in this Agreement with respect to the
Collateral, in addition to all other rights which Lender may have by law.

COLLATERAL DESCRIPTION. The word "Collateral" as used in this Agreement means
all of Grantor's property (however owned if more than one), in the possession
of, or subject to the control of, Lender (or in the possession of, or subject to
the control of, a third party subject to the control of Lender), whether
existing now or later and whether tangible or intangible in character, including
without limitation each and all of the following:

        100% of the common stock of KFS Bank, F.S.B. (formerly Kankakee Federal
        Savings) and any stock splits, substitutions, proceeds or dividends
        thereof

In addition, the word "Collateral" includes all of Grantor's property (however
owned), in the possession of, or subject to the control of, Lender (or in the
possession of, or subject to the control of, a third party subject to the
control of Lender), whether now or hereafter existing and whether tangible or
intangible in character, including without limitation each of the following:

        (A) All property to which Lender acquires title or documents of title.

        (B) All property assigned to Lender.

        (C) All promissory notes, bills of exchange, stock certificates, bonds,
        investment property, savings passbooks, time certificates of deposit,
        insurance policies, and all other instruments and evidences of an
        obligation.

        (D) All records relating to any of the property described in this
        Collateral section, whether in the form a of writing, microfilm,
        microfiche, or electronic media.

        (E) All Income and Proceeds from the Collateral as defined herein.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a
right of setoff in all Grantor's accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Grantor holds
jointly with someone else and all accounts Grantor may open in the future.
However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Grantor authorizes Lender, to the
extent permitted by applicable law, to charge or setoff all sums owing on the
Indebtedness against any and all such accounts.

REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL. Grantor
represents and warrants to Lender that:

        Ownership. Grantor is the lawful owner of the Collateral free and clear
        of all security interests, liens, encumbrances, registered pledges,
        adverse claims, and any other claims of others except as disclosed to
        and accepted by Lender in writing prior to execution of this Agreement.

        Right to Pledge. Grantor has the full right, power and authority to
        enter into this Agreement and to pledge the Collateral.

        Authority; Binding Effect. Grantor has the full right, power and
        authority to enter into this Agreement and to grant a security interest
        in the Collateral to Lender. This Agreement is binding upon Grantor as
        well as Grantor's successors and assigns, and is legally enforceable in
        accordance with its terms. The foregoing representations and warranties,
        and all other representations and warranties contained in this Agreement
        are and shall be continuing in nature and shall remain in full force and
        effect until such time as this Agreement is terminated or cancelled as
        provided herein.

        No Further Assignment. Grantor has not, and shall not, sell, assign,
        transfer, encumber or otherwise dispose of any of Grantor's rights in
        the Collateral except as provided in this Agreement.

        No Defaults. There are no defaults existing under the Collateral, and
        there are no offsets or counterclaims to the same. Grantor will strictly
        and promptly perform each of the terms, conditions, covenants and
        agreements, if any, contained in the Collateral which are to be
        performed by Grantor.

        No Violation. The execution and delivery of this Agreement will not
        violate any law or agreement governing Grantor or to which Grantor is a
        party, and its certificate or articles of incorporation and bylaws do
        not prohibit any term or condition of this Agreement.

        Financing Statements. Grantor authorizes Lender to file a UCC-1
        financing statement, or alternatively, a copy of this Agreement to
        perfect Lender's security interest. At Lender's request, Grantor
        additionally agrees to sign all other documents that are necessary to
        perfect, protect, and continue Lender's security interest in the
        Property. Grantor will pay all filing fees, title transfer fees, and
        other fees and costs involved unless prohibited by law or unless Lender
        is required by law to pay such fees and costs. Grantor irrevocably
        appoints Lender to execute financing statements and documents of title
        in Grantor's name and to execute all documents necessary to transfer
        title if there is a default. Lender may file a copy of this Agreement as
        a financing statement. If Grantor changes Grantor's name or address, or
        the name or address of any person granting a security interest under
        this Agreement changes, Grantor will promptly notify the Lender of such
        change.

LENDER'S RIGHTS AND OBLIGATIONS WITH RESPECT TO THE COLLATERAL. Lender may hold
the Collateral until all Indebtedness has been paid and satisfied. Thereafter
Lender may deliver the Collateral to Grantor or to any other owner of the
Collateral. Lender shall have the following rights in addition to all other
rights Lender may have by law:

        Maintenance and Protection of Collateral. Lender may, but shall not be
        obligated to, take such steps as it deems necessary or desirable to
        protect, maintain, insure, control, receive, or manage the Collateral,
        including paying of any liens or claims against the Collateral. This may
        include such things as hiring other people, such as attorneys,
        appraisers or other experts. Lender may charge Grantor for any cost
        incurred in so doing. When applicable law provides more than one method
        of perfection of Lender's security interest, Lender may choose the
        method(s) to be used. If the Collateral consists of stock, bonds or
        other securities for which no certificate has been issued, Grantor
        agrees, at Lender's request, either to request issuance of an
        appropriate certificate or to give instructions on Lender's forms to the
        issuer, transfer agent, mutual fund company, or broker, as the case may
        be, to record on its books or records Lender's security interest in the
        Collateral.

<PAGE>

                           COMMERCIAL PLEDGE AGREEMENT
Loan No: NEW                       (Continued)                            Page 2

        Income and Proceeds from the Collateral. Lender may receive all Income
        and Proceeds and add it to the Collateral. Grantor agrees to deliver to
        Lender immediately upon receipt, in the exact form received and without
        commingling with other property, all Income and Proceeds from the
        Collateral which may be received by, paid, or delivered to Grantor or
        for Grantor's account, whether as an addition to, in discharge of, in
        substitution of, or in exchange for any of the Collateral.

        Application of Cash. At Lender's option, Lender may apply any cash,
        whether included in the Collateral or received as Income and Proceeds or
        through liquidation, sale, retirement, split up, dividend, distribution,
        or other disposition of the Collateral, to the satisfaction of the
        Indebtedness or such portion thereof as Lender shall choose, whether or
        not matured.

        Transactions with Others. Lender may (1) extend time for payment or
        other performance, (2) grant a renewal or change in terms or conditions,
        or (3) compromise, compound or release any obligation, with any one or
        more Obligors, endorsers, or Guarantors of the Indebtedness as Lender
        deems advisable, without obtaining the prior written consent of Grantor,
        and no such act or failure to act shall affect Lender's rights against
        Grantor or the Collateral.

        All Collateral Secures Indebtedness. All Collateral shall be security
        for the Indebtedness, whether the Collateral is located at one or more
        offices or branches of Lender. This will be the case whether or not the
        office or branch where Grantor obtained Grantor's loan knows about the
        Collateral or relies upon the Collateral as security.

        Collection of Collateral. Lender at Lender's option may, but need not,
        collect the Income and Proceeds directly from the Obligors. Grantor
        authorizes and directs the Obligors, if Lender decides to collect the
        Income and Proceeds, to pay and deliver to Lender all Income and
        Proceeds from the Collateral and to accept Lender's receipt for the
        payments.

        Power of Attorney. Grantor irrevocably appoints Lender as Grantor's
        attorney-in-fact, with full power of substitution, (a) to demand,
        collect, receive, receipt for, sue and recover all Income and Proceeds
        and other sums of money and other property which may now or hereafter
        become due, owing or payable from the Obligors in accordance with the
        terms of the Collateral; (b) to execute, sign and endorse any and all
        instruments, receipts, checks, drafts and warrants issued in payment for
        the Collateral; (c) to settle or compromise any and all claims arising
        under the Collateral, and in the place and stead of Grantor, execute and
        deliver Grantor's release and acquittance for Grantor; (d) to file any
        claim or claims or to take any action or institute or take part in any
        proceedings, either in Lender's own name or in the name of Grantor, or
        otherwise, which in the discretion of Lender may seem to be necessary or
        advisable; and (e) to execute in Grantor's name and to deliver to the
        Obligors on Grantor's behalf, at the time and in the manner specified by
        the Collateral, any necessary instruments or documents.

        Perfection of Security Interest. Upon Lender's request, Grantor will
        deliver to Lender any and all of the documents evidencing or
        constituting the Collateral. When applicable law provides more than one
        method of perfection of Lender's security interest, Lender may choose
        the method(s) to be used. Upon Lender's request, Grantor will sign and
        deliver any writings necessary to perfect Lender's security interest. If
        any of the Collateral consists of investment property for which no
        certificate has been issued, Grantor agrees, at Lender's option, either
        to request issuance of an appropriate certificate or to execute
        appropriate instructions on Lender's forms instructing the issuer,
        transfer agent, mutual fund company, or broker, as the case may be, to
        record on its books or records, by book-entry, initial transaction
        statement, registered pledge, or otherwise, Lender's security interest
        in the Collateral. Grantor hereby appoints Lender as Grantor's
        irrevocable attorney-in-fact for the purpose of executing any documents
        necessary to perfect, amend, or to continue the security interest
        granted in this Agreement or to demand termination of filings of other
        secured parties. This is a continuing Security Agreement and will
        continue in effect even though all or any part of the Indebtedness is
        paid in full and even though for a period of time Grantor may not be
        indebted to Lender.

LENDER'S EXPENDITURES. If any action or proceeding is commenced that would
materially affect Lender's interest in the Collateral or if Grantor fails to
comply with any provision of this Agreement or any Related Documents, including
but not limited to Grantor's failure to discharge or pay when due any amounts
Grantor is required to discharge or pay under this Agreement or any Related
Documents, Lender on Grantor's behalf may (but shall not be obligated to) take
any action that Lender deems appropriate, including but not limited to
discharging or paying all taxes, liens, security interests, encumbrances and
other claims, at any time levied or placed on the Collateral and paying all
costs for insuring, maintaining and preserving the Collateral. All such
expenditures incurred or paid by Lender for such purposes will then bear
interest at the rate charged under the Note from the date incurred or paid by
Lender to the date of repayment by Grantor. All such expenses will become a part
of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B)
be added to the balance of the Note and be apportioned among and be payable with
any installment payments to become due during either (1) the term of any
applicable insurance policy; or (2) the remaining term of the Note; or (C) be
treated as a balloon payment which will be due and payable at the Note's
maturity. The Agreement also will secure payment of these amounts. Such right
shall be in addition to all other rights and remedies to which Lender may be
entitled upon Default.

LIMITATIONS ON OBLIGATIONS OF LENDER. Lender shall use ordinary reasonable care
in the physical preservation and custody of the Collateral in Lender's
possession, but shall have no other obligation to protect the Collateral or its
value. In particular, but without limitation, Lender shall have no
responsibility for (A) any depreciation in value of the Collateral or for the
collection or protection of any Income and Proceeds from the Collateral, (B)
preservation of rights against parties to the Collateral or against third
persons, (C) ascertaining any maturities, calls, conversions, exchanges, offers,
tenders, or similar matters relating to any of the Collateral, or (D) informing
Grantor about any of the above, whether or not Lender has or is deemed to have
knowledge of such matters. Except as provided above, Lender shall have no
liability for depreciation or deterioration of the Collateral.

REINSTATEMENT OF SECURITY INTEREST. If payment is made by Grantor, whether
voluntarily or otherwise, or by guarantor or by any third party, on the
Indebtedness and thereafter Lender is forced to remit the amount of that payment
(A) to Grantor's trustee in bankruptcy or to any similar person under any
federal or state bankruptcy law or law for the relief of debtors, (B) by reason
of any judgment, decree or order of any court or administrative body having
jurisdiction over Lender or any of Lender's property, or (C) by reason of any
settlement or compromise of any claim made by Lender with any claimant
(including without limitation Grantor), the Indebtedness shall be considered
unpaid for the purpose of enforcement of this Agreement and this Agreement shall
continue to be effective or shall be reinstated, as the case may be,
notwithstanding any cancellation of this Agreement or of any note or other
instrument or agreement evidencing the Indebtedness and the Collateral will
continue to secure the amount repaid or recovered to the same extent as if that
amount never had been originally received by Lender, and Grantor shall be bound
by any judgment, decree, order, settlement or compromise relating to the
Indebtedness or to this Agreement.

DEFAULT. Each of the following shall constitute an Event of Default under this
Agreement:

        Payment Default. Grantor fails to make any payment when due under the
        Indebtedness.

        Other Defaults. Grantor fails to comply with or to perform any other
        term, obligation, covenant or condition contained in this Agreement or
        in any of the Related Documents or to comply with or to perform any
        term, obligation, covenant or condition contained in any other

<PAGE>

                           COMMERCIAL PLEDGE AGREEMENT
Loan No: NEW                       (Continued)                            Page 3

        agreement between Lender and Grantor.

        Default in Favor of Third Parties. Should Grantor or any Grantor default
        under any loan, extension of credit, security agreement, purchase or
        sales agreement, or any other agreement, in favor of any other creditor
        or person that may materially affect any of Grantor's property or
        Grantor's or any Grantor's ability to repay the Indebtedness or perform
        their respective obligations under this Agreement or any of the Related
        Documents.

        False Statements. Any warranty, representation or statement made or
        furnished to Lender by Grantor or on Grantor's behalf under this
        Agreement or the Related Documents is false or misleading in any
        material respect, either now or at the time made or furnished or becomes
        false or misleading at any time thereafter.

        Defective Collateralization. This Agreement or any of the Related
        Documents ceases to be in full force and effect (including failure of
        any collateral document to create a valid and perfected security
        interest or lien) at any time and for any reason.

        Insolvency. The dissolution or termination of Grantor's existence as a
        going business, the insolvency of Grantor, the appointment of a receiver
        for any part of Grantor's property, any assignment for the benefit of
        creditors, any type of creditor workout, or the commencement of any
        proceeding under any bankruptcy or insolvency laws by or against
        Grantor.

        Creditor or Forfeiture Proceedings. Commencement of foreclosure or
        forfeiture proceedings, whether by judicial proceeding, self-help,
        repossession or any other method, by any creditor of Grantor or by any
        governmental agency against any collateral securing the Indebtedness.
        This includes a garnishment of any of Grantor's accounts, including
        deposit accounts, with Lender. However, this Event of Default shall not
        apply if there is a good faith dispute by Grantor as to the validity or
        reasonableness of the claim which is the basis of the creditor or
        forfeiture proceeding and if Grantor gives Lender written notice of the
        creditor or forfeiture proceeding and deposits with Lender monies or a
        surety bond for the creditor or forfeiture proceeding, in an amount
        determined by Lender, in its sole discretion, as being an adequate
        reserve or bond for the dispute.

        Events Affecting Guarantor. Any of the preceding events occurs with
        respect to guarantor, endorser, surety, or accommodation party of any of
        the Indebtedness or guarantor, endorser, surety, or accommodation party
        dies or becomes incompetent or revokes or disputes the validity of, or
        liability under, any Guaranty of the Indebtedness.

        Adverse Change. A material adverse change occurs in Grantor's financial
        condition, or Lender believes the prospect of payment or performance of
        the Indebtedness is impaired.

        Insecurity. Lender in good faith believes itself insecure.

        Failure to Register. Failure of the issuer, transfer agent, mutual fund
        company, or broker, as the case may be, to furnish a written statement
        to Lender recording Lender's security interest to the security, or the
        identification of any adverse claim that may interfere with Lender's
        security interest in the Collateral.

RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this
Agreement, at any time thereafter, Lender may exercise any one or more of the
following rights and remedies:

        Accelerate Indebtedness. Declare all Indebtedness, including any
        prepayment penalty which Grantor would be required to pay, immediately
        due and payable, without notice of any kind to Grantor.

        Collect the Collateral. Collect any of the Collateral and, at Lender's
        option and to the extent permitted by applicable law, retain possession
        of the Collateral while suing on the Indebtedness.

        Sell the Collateral. Sell the Collateral, at Lender's discretion, as a
        unit or in parcels, at one or more public or private sales. Unless the
        Collateral is perishable or threatens to decline speedily in value or is
        of a type customarily sold on a recognized market, Lender shall give or
        mail to Grantor, and other persons as required by law, notice at least
        ten (10) days in advance of the time and place of any public sale, or of
        the time after which any private sale may be made. However, no notice
        need be provided to any person who, after an Event of Default occurs,
        enters into and authenticates an agreement waiving that person's right
        to notification of sale. Grantor agrees that any requirement of
        reasonable notice as to Grantor is satisfied if Lender mails notice by
        ordinary mail addressed to Grantor at the last address Grantor has given
        Lender in writing. If a public sale is held, there shall be sufficient
        compliance with all requirements of notice to the public by a single
        publication in any newspaper of general circulation in the county where
        the Lender is located, setting forth the time and place of sale and a
        brief description of the property to be sold. Lender may be a purchaser
        at any public sale.

        Sell Securities. Sell any securities included in the Collateral in a
        manner consistent with applicable federal and state securities laws. If,
        because of restrictions under such laws, Lender is unable, or believes
        Lender is unable, to sell the securities in an open market transaction,
        Grantor agrees that Lender will have no obligation to delay sale until
        the securities can be registered. Then Lender may make a private sale to
        one or more persons or to a restricted group of persons, even though
        such sale may result in a price that is less favorable than might be
        obtained in an open market transaction. Such a sale will be considered
        commercially reasonable. If any securities held as Collateral are
        "restricted securities" as defined in the Rules of the Securities and
        Exchange Commission (such as Regulation D or Rule 144) or the rules of
        state securities departments under state "Blue Sky" laws, or if Grantor
        or any other owner of the Collateral is an affiliate of the issuer of
        the securities, Grantor agrees that neither Grantor, nor any member of
        Grantor's family, nor any other person signing this Agreement will sell
        or dispose of any securities of such issuer without obtaining Lender's
        prior written consent.

        Rights and Remedies with Respect to Investment Property, Financial
        Assets and Related Collateral. In addition to other rights and remedies
        granted under this Agreement and under applicable law, Lender may
        exercise any or all of the following rights and remedies: (1) register
        with any issuer or broker or other securities intermediary any of the
        Collateral consisting of investment property or financial assets
        (collectively herein, "investment property") in Lender's sole name or in
        the name of Lender's broker, agent or nominee; (2) cause any issuer,
        broker or other securities intermediary to deliver to Lender any of the
        Collateral consisting of securities, or investment property capable of
        being delivered; (3) enter into a control agreement or power of attorney
        with any issuer or securities intermediary with respect to any
        Collateral consisting of investment property, on such terms as Lender
        may deem appropriate, in its sole discretion, including without
        limitation, an agreement granting to Lender any of the rights provided
        hereunder without further notice to or consent by Grantor; (4) execute
        any such control agreement on Grantor's behalf and in Grantor's name,
        and hereby irrevocably appoints Lender as agent and attorney-in-fact,
        coupled with an interest, for the purpose of executing such control
        agreement on Grantor's behalf; (5) exercise any and all rights of Lender
        under any such control agreement or power of attorney; (6) exercise any
        voting, conversion, registration, purchase, option, or other rights with
        respect to any Collateral; (7) collect, with or without legal action,
        and issue receipts concerning any notes, checks, drafts, remittances or
        distributions that are paid or payable with respect to any Collateral
        consisting of investment property. Any control agreement entered with
        respect to any investment property shall contain the following
        provisions, at Lender's discretion. Lender

<PAGE>

                           COMMERCIAL PLEDGE AGREEMENT
 Loan No: NEW                      (Continued)                            Page 4

        shall be authorized to instruct the issuer, broker or other securities
        intermediary to take or to refrain from taking such actions with respect
        to the investment property as Lender may instruct, without further
        notice to or consent by Grantor. Such actions may include without
        limitation the issuance of entitlement orders, account instructions,
        general trading or buy or sell orders, transfer and redemption orders,
        and stop loss orders. Lender shall be further entitled to instruct the
        issuer, broker or securities intermediary to sell or to liquidate any
        investment property, or to pay the cash surrender or account termination
        value with respect to any and all investment property, and to deliver
        all such payments and liquidation proceeds to Lender. Any such control
        agreement shall contain such authorizations as are necessary to place
        Lender in "control" of such investment collateral, as contemplated under
        the provisions of the Uniform Commercial Code, and shall fully authorize
        Lender to issue "entitlement orders" concerning the transfer,
        redemption, liquidation or disposition of investment collateral, in
        conformance with the provisions of the Uniform Commercial Code.

        Foreclosure. Maintain a judicial suit for foreclosure and sale of the
        Collateral.

        Transfer Title. Effect transfer of title upon sale of all or part of the
        Collateral. For this purpose, Grantor irrevocably appoints Lender as
        Grantor's attorney-in-fact to execute endorsements, assignments and
        instruments in the name of Grantor and each of them (if more than one)
        as shall be necessary or reasonable.

        Other Rights and Remedies. Have and exercise any or all of the rights
        and remedies of a secured creditor under the provisions of the Uniform
        Commercial Code, at law, in equity, or otherwise.

        Application of Proceeds. Apply any cash which is part of the Collateral,
        or which is received from the collection or sale of the Collateral, to
        reimbursement of any expenses, including any costs for registration of
        securities, commissions incurred in connection with a sale, attorneys'
        fees and court costs, whether or not there is a lawsuit and including
        any fees on appeal, incurred by Lender in connection with the collection
        and sale of such Collateral and to the payment of the Indebtedness of
        Grantor to Lender, with any excess funds to be paid to Grantor as the
        interests of Grantor may appear. Grantor agrees, to the extent permitted
        by law, to pay any deficiency after application of the proceeds of the
        Collateral to the Indebtedness.

        Election of Remedies. Except as may be prohibited by applicable law, all
        of Lender's rights and remedies, whether evidenced by this Agreement,
        the Related Documents, or by any other writing, shall be cumulative and
        may be exercised singularly or concurrently. Election by Lender to
        pursue any remedy shall not exclude pursuit of any other remedy, and an
        election to make expenditures or to take action to perform an obligation
        of Grantor under this Agreement, after Grantor's failure to perform,
        shall not affect Lender's right to declare a default and exercise its
        remedies.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of
this Agreement:

        Amendments. This Agreement, together with any Related Documents,
        constitutes the entire understanding and agreement of the parties as to
        the matters set forth in this Agreement. No alteration of or amendment
        to this Agreement shall be effective unless given in writing and signed
        by the party or parties sought to be charged or bound by the alteration
        or amendment.

        Attorneys' Fees; Expenses. Grantor agrees to pay upon demand all of
        Lender's costs and expenses, including Lender's attorneys' fees and
        Lender's legal expenses, incurred in connection with the enforcement of
        this Agreement. Lender may hire or pay someone else to help enforce this
        Agreement, and Grantor shall pay the costs and expenses of such
        enforcement. Costs and expenses include Lender's attorneys' fees and
        legal expenses whether or not there is a lawsuit, including attorneys'
        fees and legal expenses for bankruptcy proceedings (including efforts to
        modify or vacate any automatic stay or injunction), appeals, and any
        anticipated post-judgment collection services. Grantor also shall pay
        all court costs and such additional fees as may be directed by the
        court.

        Caption Headings. Caption headings in this Agreement are for convenience
        purposes only and are not to be used to interpret or define the
        provisions of this Agreement.

        Governing Law. This Agreement will be governed by, construed and
        enforced in accordance with federal law and the laws of the State of
        Illinois. This Agreement has been accepted by Lender in the State of
        Illinois.

        Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender's
        request to submit to the jurisdiction of the courts of COOK County,
        State of Illinois.

        No Waiver by Lender. Lender shall not be deemed to have waived any
        rights under this Agreement unless such waiver is given in writing and
        signed by Lender. No delay or omission on the part of Lender in
        exercising any right shall operate as a waiver of such right or any
        other right. A waiver by Lender of a provision of this Agreement shall
        not prejudice or constitute a waiver of Lender's right otherwise to
        demand strict compliance with that provision or any other provision of
        this Agreement. No prior waiver by Lender, nor any course of dealing
        between Lender and Grantor, shall constitute a waiver of any of Lender's
        rights or of any of Grantor's obligations as to any future transactions.
        Whenever the consent of Lender is required under this Agreement, the
        granting of such consent by Lender in any instance shall not constitute
        continuing consent to subsequent instances where such consent is
        required and in all cases such consent may be granted or withheld in the
        sole discretion of Lender.

        Notices. Any notice required to be given under this Agreement shall be
        given in writing, and shall be effective when actually delivered, when
        actually received by telefacsimile (unless otherwise required by law),
        when deposited with a nationally recognized overnight courier, or, if
        mailed, when deposited in the United States mail, as first class,
        certified or registered mail postage prepaid, directed to the addresses
        shown near the beginning of this Agreement. Any party may change its
        address for notices under this Agreement by giving formal written notice
        to the other parties, specifying that the purpose of the notice is to
        change the party's address. For notice purposes, Grantor agrees to keep
        Lender informed at all times of Grantor's current address. Unless
        otherwise provided or required by law, if there is more than one
        Grantor, any notice given by Lender to any Grantor is deemed to be
        notice given to all Grantors.

        Severability. If a court of competent jurisdiction finds any provision
        of this Agreement to be illegal, invalid, or unenforceable as to any
        circumstance, that finding shall not make the offending provision
        illegal, invalid, or unenforceable as to any other circumstance. If
        feasible, the offending provision shall be considered modified so that
        it becomes legal, valid and enforceable. If the offending provision
        cannot be so modified, it shall be considered deleted from this
        Agreement. Unless otherwise required by law, the illegality, invalidity,
        or unenforceability of any provision of this Agreement shall not affect
        the legality, validity or enforceability of any other provision of this
        Agreement.

        Successors and Assigns. Subject to any limitations stated in this
        Agreement on transfer of Grantor's interest, this Agreement shall be
        binding upon and inure to the benefit of the parties, their successors
        and assigns. If ownership of the Collateral becomes vested in a person
        other than Grantor, Lender, without notice to Grantor, may deal with
        Grantor's successors with reference to this Agreement and the
        Indebtedness by way of forbearance or extension without releasing
        Grantor from the obligations of this Agreement or liability under the
        Indebtedness.

<PAGE>

                           COMMERCIAL PLEDGE AGREEMENT
Loan No: NEW                       (Continued)                            Page 5

        Time is of the Essence. Time is of the essence in the performance of
        this Agreement.

        Waive Jury. All parties to this Agreement hereby waive the right to any
        jury trial in any action, proceeding, or counterclaim brought by any
        party against any other party.

DEFINITIONS. The following capitalized words and terms shall have the following
meanings when used in this Agreement. Unless specifically stated to the
contrary, all references to dollar amounts shall mean amounts in lawful money of
the United States of America. Words and terms used in the singular shall include
the plural, and the plural shall include the singular, as the context may
require. Words and terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code:

        Agreement. The word "Agreement" means this Commercial Pledge Agreement,
        as this Commercial Pledge Agreement may be amended or modified from time
        to time, together with all exhibits and schedules attached to this
        Commercial Pledge Agreement from time to time.

        Borrower. The word "Borrower" means KANKAKEE BANCORP, INC., and all
        other persons and entities signing the Note in whatever capacity.

        Collateral. The word "Collateral" means all of Grantor's right, title
        and interest in and to all the Collateral as described in the Collateral
        Description section of this Agreement.

        Default. The word "Default" means the Default set forth in this
        Agreement in the section titled "Default".

        Event of Default. The words "Event of Default" mean any of the events of
        default set forth in this Agreement in the default section of this
        Agreement.

        Grantor. The word "Grantor" means KANKAKEE BANCORP, INC..

        Guaranty. The word "Guaranty" means the guaranty from guarantor,
        endorser, surety, or accommodation party to Lender, including without
        limitation a guaranty of all or part of the Note.

        Income and Proceeds. The words "Income and Proceeds" mean all present
        and future income, proceeds, earnings, increases, and substitutions from
        or for the Collateral of every kind and nature, including without
        limitation all payments, interest, profits, distributions, benefits,
        rights, options, warrants, dividends, stock dividends, stock splits,
        stock rights, regulatory dividends, subscriptions, monies, claims for
        money due and to become due, proceeds of any insurance on the
        Collateral, shares of stock of different par value or no par value
        issued in substitution or exchange for shares included in the
        Collateral, whether voluntary or involuntary, by agreement or by
        operation of law, and all other property Grantor is entitled to receive
        on account of such Collateral, including accounts, documents,
        instruments, chattel paper, investment property, and general
        intangibles.

        Indebtedness. The word "Indebtedness" means the indebtedness evidenced
        by the Note or Related Documents, including all principal and interest
        together with all other indebtedness and costs and expenses for which
        Grantor is responsible under this Agreement or under any of the Related
        Documents, and all other obligations, debts and liabilities, plus
        interest thereon, of Borrower to Lender, or any one or more of them, as
        well as all claims by Lender against Borrower or any one or more of
        them, whether now existing or hereafter arising, whether related or
        unrelated to the purpose of the Note, whether voluntary or otherwise,
        whether due or not due, direct or indirect, absolute or contingent,
        liquidated or unliquidated and whether Borrower may be liable
        individually or jointly with others, whether obligated as guarantor,
        surety, accommodation party or otherwise, and whether recovery upon such
        amounts may be or hereafter may become barred by any statute of
        limitations, and whether the obligation to repay such amounts may be or
        hereafter may become otherwise unenforceable.

        Lender. The word "Lender" means LASALLE BANK NATIONAL ASSOCIATION, its
        successors and assigns.

        Note. The word "Note" means the Note executed by KANKAKEE BANCORP, INC.
        in the principal amount of $1,500,000.00 dated February 28, 2003,
        together with all renewals of, extensions of, modifications of,
        refinancings of, consolidations of, and substitutions for the note or
        credit agreement.

        Obligor. The word "Obligor" means without limitation any and all persons
        obligated to pay money or to perform some other act under the
        Collateral.

        Property. The word "Property" means all of Grantor's right, title and
        interest in and to all the Property as described in the "Collateral
        Description" section of this Agreement.

        Related Documents. The words "Related Documents" mean all promissory
        notes, credit agreements, loan agreements, environmental agreements,
        guaranties, security agreements, mortgages, deeds of trust, security
        deeds, collateral mortgages, and all other instruments, agreements and
        documents, whether now or hereafter existing, executed in connection
        with the Indebtedness.

GRANTOR HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL PLEDGE
AGREEMENT AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED FEBRUARY 28, 2003.

GRANTOR:

KANKAKEE BANCORP, INC.

<TABLE>
<S>                                                                <C>
By: /s/ Larry D. Huffman                                           By: /s/ Ronald J. Walters
   -------------------------------------------------                  --------------------------------------------
   Larry D. Huffman, President & CEO of KANKAKEE                       /or Ronald J. Walters, Treasurer & CFO of
   BANCORP, INC.                                                       KANKAKEE BANCORP, INC.
</TABLE><PAGE>

                                                                   EXHIBIT 10.14

[LOGO OF THE BOND MARKET ASSOCIATION]

MASTER REPURCHASE AGREEMENT

September 1996 Version

Dated as of

Between:       Salomon Smith Barney, Inc.

And            KANKAKEE FED SVGS BANK

1.   APPLICABILITY
     From time to time the parties hereto may enter into transactions in which
     one party ("Seller") agrees to transfer to the other ("Buyer") securities
     or other assets ("Securities") against the transfer of funds by Buyer, with
     a simultaneous agreement by Buyer to transfer to Seller such Securities at
     a date certain or on demand, against the transfer of funds by Seller. Each
     such transaction shall be referred to herein as a "Transaction" and, unless
     otherwise agreed in writing, shall be governed by this Agreement, including
     any supplemental terms or conditions contained in Annex I hereto and in any
     other annexes identified herein or therein as applicable hereunder.

2.   DEFINITIONS
     (a)  "Act of Insolvency", with respect to any party, (i) the commencement
          by such party as debtor of any case or proceeding under any
          bankruptcy, insolvency, reorganization, liquidation, moratorium,
          dissolution, delinquency or similar law, or such party seeking the
          appointment or election of a receiver, conservator, trustee, custodian
          or similar official for such party or any substantial part of its
          property, or the convening of any meeting of creditors for purposes of
          commencing any such case or proceeding or seeking such an appointment
          or election, (ii) the commencement of any such case or proceeding
          against such party, or another seeking such an appointment or
          election, or the filing against a party of an application for a
          protective decree under the provisions of the Securities Investor
          Protection Act of 1970, which (A) is consented to or not timely
          contested by such party, (B) results in the entry of an order for
          relief, such an appointment or election, the issuance of such a
          protective decree or the entry of an order having a similar effect, or
          (C) is not dismissed within 15 days, (iii) the making by such party of
          a general assignment for the benefit of creditors, or (iv) the
          admission in writing by such party of such party's inability to pay
          such party's debts as they become due;

     (b)  "Additional Purchased Securities", Securities provided by Seller to
          Buyer pursuant to Paragraph 4(a) hereof;

<PAGE>

     (c)  "Buyer's Margin Amount", with respect to any Transaction as of any
          date, the amount obtained by application of the Buyer's Margin
          Percentage to the Repurchase Price for such Transaction as of such
          date;

     (d)  "Buyer's Margin Percentage", with respect to any Transaction as of any
          date, a percentage (which may be equal to the Seller's Margin
          Percentage) agreed to by Buyer and Seller or, in the absence of any
          such agreement, the percentage obtained by dividing the Market Value
          of the Purchased Securities on the Purchase Date by the Purchase Price
          on the Purchase Date for such Transaction;

     (e)  "Confirmation", the meaning specified in Paragraph 3(b) hereof;

     (f)  "Income", with respect to any Security at any time, any principal
          thereof and all interest, dividends or other distributions thereon;

     (g)  "Margin Deficit", the meaning specified in Paragraph 4(a) hereof;

     (h)  "Margin Excess", the meaning specified in Paragraph 4(b) hereof;

     (i)  "Margin Notice Deadline", the time agreed to by the parties in the
          relevant Confirmation, Annex I hereto or otherwise as the deadline for
          giving notice requiring same-day satisfaction of margin maintenance
          obligations as provided in Paragraph 4 hereof (or, in the absence of
          any such agreement, the deadline for such purposes established in
          accordance with market practice);

     (j)  "Market Value", with respect to any Securities as of any date, the
          price for such Securities on such date obtained from a generally
          recognized source agreed to by the parties or the most recent closing
          bid quotation from such a source, plus accrued Income to the extent
          not included therein (other than any Income credited or transferred
          to, or applied to the obligations of, Seller pursuant to Paragraph 5
          hereof) as of such date (unless contrary to market practice for such
          Securities);

     (k)  "Price Differential", with respect to any Transaction as of any date,
          the aggregate amount obtained by daily application of the Pricing Rate
          for such Transaction to the Purchase Price for such Transaction on a
          360 day per year basis for the actual number of days during the period
          commencing on (and including) the Purchase Date for such Transaction
          and ending on (but excluding) the date of determination (reduced by
          any amount of such Price Differential previously paid by Seller to
          Buyer with respect to such Transaction);

     (l)  "Pricing Rate", the per annum percentage rate for determination of the
          Price Differential;

     (m)  "Prime Rate", the prime rate of U.S. commercial banks as published in
          The Wall Street Journal (or, if more than one such rate is published,
          the average of such rates);

     (n)  "Purchase Date", the date on which Purchased Securities are to be
          transferred by Seller to Buyer;

2 . September 1996 . Master Repurchase Agreement

<PAGE>

     (o)  "Purchase Price", (i) on the Purchase Date, the price at which
          Purchased Securities are transferred by Seller to Buyer, and (ii)
          thereafter, except where Buyer and Seller agree otherwise, such price
          increased by the amount of any cash transferred by Buyer to Seller
          pursuant to Paragraph 4(b) hereof and decreased by the amount of any
          cash transferred by Seller to Buyer pursuant to Paragraph 4(a) hereof
          or applied to reduce Seller's obligations under clause (ii) of
          Paragraph 5 hereof;

     (p)  "Purchased Securities", the Securities transferred by Seller to Buyer
          in a Transaction hereunder, and any Securities substituted therefor in
          accordance with Paragraph 9 hereof. The term "Purchased Securities"
          with respect to any Transaction at any time also shall include
          Additional Purchased Securities delivered pursuant to Paragraph 4(a)
          hereof and shall exclude Securities returned pursuant to Paragraph
          4(b) hereof;

     (q)  "Repurchase Date", the date on which Seller is to repurchase the
          Purchased Securities from Buyer, including any date determined by
          application of the provisions of Paragraph 3(c) or 11 hereof;

     (r)  "Repurchase Price", the price at which Purchased Securities are to be
          transferred from Buyer to Seller upon termination of a Transaction,
          which will be determined in each case (including Transactions
          terminable upon demand) as the sum of the Purchase Price and the Price
          Differential as of the date of such determination;

     (s)  "Seller's Margin Amount", with respect to any Transaction as of any
          date, the amount obtained by application of the Seller's Margin
          Percentage to the Repurchase Price for such Transaction as of such
          date;

     (t)  "Seller's Margin Percentage", with respect to any Transaction as of
          any date, a percentage (which may be equal to the Buyer's Margin
          Percentage) agreed to by Buyer and Seller or, in the absence of any
          such agreement, the percentage obtained by dividing the Market Value
          of the Purchased Securities on the Purchase Date by the Purchase Price
          on the Purchase Date for such Transaction.

3.   INITIATION; CONFIRMATION; TERMINATION
     (a)  An agreement to enter into a Transaction may be made orally or in
          writing at the initiation of either Buyer or Seller. On the Purchase
          Date for the Transaction, the Purchased Securities shall be
          transferred to Buyer or its agent against the transfer of the Purchase
          Price to an account of Seller.

     (b)  Upon agreeing to enter into a Transaction hereunder, Buyer or Seller
          (or both), as shall be agreed, shall promptly deliver to the other
          party a written confirmation of each Transaction (a "Confirmation").
          The Confirmation shall describe the Purchased Securities (including
          CUSIP number, if any), identify Buyer and Seller and set forth (i) the
          Purchase Date, (ii) the Purchase Price, (iii) the Repurchase Date,
          unless the Transaction is to be terminable on demand, (iv) the Pricing
          Rate or Repurchase Price applicable to the Transaction, and (v) any
          additional terms or conditions of the Transaction not inconsistent
          with this Agreement. The Confirmation, together with this Agreement,
          shall constitute conclusive evidence of the terms agreed between Buyer
          and Seller with respect to the Transaction to which the Confirmation
          relates, unless

                                3 . September 1996 . Master Repurchase Agreement

<PAGE>

          with respect to the Confirmation specific objection is made promptly
          after receipt thereof. In the event of any conflict between the terms
          of such Confirmation and this Agreement, this Agreement shall prevail.

     (c)  In the case of Transactions terminable upon demand, such demand shall
          be made by Buyer or Seller, no later than such time as is customary in
          accordance with market practice, by telephone or otherwise on or prior
          to the business day on which such termination will be effective. On
          the date specified in such demand, or on the date fixed for
          termination in the case of Transactions having a fixed term,
          termination of the Transaction will be effected by transfer to Seller
          or its agent of the Purchased Securities and any Income in respect
          thereof received by Buyer (and not previously credited or transferred
          to, or applied to the obligations of, Seller pursuant to Paragraph 5
          hereof) against the transfer of the Repurchase Price to an account of
          Buyer.

4.   MARGIN MAINTENANCE
     (a)  If at any time the aggregate Market Value of all Purchased Securities
          subject to all Transactions in which a particular party hereto is
          acting as Buyer is less than the aggregate Buyer's Margin Amount for
          all such Transactions (a "Margin Deficit"), then Buyer may by notice
          to Seller require Seller in such Transactions, at Seller's option, to
          transfer to Buyer cash or additional Securities reasonably acceptable
          to Buyer ("Additional Purchased Securities"), so that the cash and
          aggregate Market Value of the Purchased Securities, including any such
          Additional Purchased Securities, will thereupon equal or exceed such
          aggregate Buyer's Margin Amount (decreased by the amount of any Margin
          Deficit as of such date arising from any Transactions in which such
          Buyer is acting as Seller).

     (b)  If at any time the aggregate Market Value of all Purchased Securities
          subject to all Transactions in which a particular party hereto is
          acting as Seller exceeds the aggregate Seller's Margin Amount for all
          such Transactions at such time (a "Margin Excess"), then Seller may by
          notice to Buyer require Buyer in such Transactions, at Buyer's option,
          to transfer cash or Purchased Securities to Seller, so that the
          aggregate Market Value of the Purchased Securities, after deduction of
          any such cash or any Purchased Securities so transferred, will
          thereupon not exceed such aggregate Seller's Margin Amount (increased
          by the amount of any Margin Excess as of such date arising from any
          Transactions in which such Seller is acting as Buyer).

     (c)  If any notice is given by Buyer or Seller under subparagraph (a) or
          (b) of this Paragraph at or before the Margin Notice Deadline on any
          business day, the party receiving such notice shall transfer cash or
          Additional Purchased Securities as provided in such subparagraph no
          later than the close of business in the relevant market on such day.
          If any such notice is given after the Margin Notice Deadline, the
          party receiving such notice shall transfer such cash or Securities no
          later than the close of business in the relevant market on the next
          business day following such notice.

     (d)  Any cash transferred pursuant to this Paragraph shall be attributed to
          such Transactions as shall be agreed upon by Buyer and Seller.

4 . September 1996 . Master Repurchase Agreement

<PAGE>

     (e)  Seller and Buyer may agree, with respect to any or all Transactions
          hereunder, that the respective rights of Buyer or Seller (or both)
          under subparagraphs (a) and (b) of this Paragraph may be exercised
          only where a Margin Deficit or Margin Excess, as the case may be,
          exceeds a specified dollar amount or a specified percentage of the
          Repurchase Prices for such Transactions (which amount or percentage
          shall be agreed to by Buyer and Seller prior to entering into any such
          Transactions).

     (f)  Seller and Buyer may agree, with respect to any or all Transactions
          hereunder, that the respective rights of Buyer and Seller under
          subparagraphs (a) and (b) of this Paragraph to require the elimination
          of a Margin Deficit or a Margin Excess, as the case may be, may be
          exercised whenever such a Margin Deficit or Margin Excess exists with
          respect to any single Transaction hereunder (calculated without regard
          to any other Transaction outstanding under this Agreement).

5.   INCOME PAYMENTS
     Seller shall be entitled to receive an amount equal to all Income paid or
     distributed on or in respect of the Securities that is not otherwise
     received by Seller, to the full extent it would be so entitled if the
     Securities had not been sold to Buyer. Buyer shall, as the parties may
     agree with respect to any Transaction (or, in the absence of any such
     agreement, as Buyer shall reasonably determine in its discretion), on the
     date such Income is paid or distributed either (i) transfer to or credit to
     the account of Seller such Income with respect to any Purchased Securities
     subject to such Transaction or (ii) with respect to Income paid in cash,
     apply the Income payment or payments to reduce the amount, if any, to be
     transferred to Buyer by Seller upon termination of such Transaction. Buyer
     shall not be obligated to take any action pursuant to the preceding
     sentence (A) to the extent that such action would result in the creation of
     a Margin Deficit, unless prior thereto or simultaneously therewith Seller
     transfers to Buyer cash or Additional Purchased Securities sufficient to
     eliminate such Margin Deficit, or (B) if an Event of Default with respect
     to Seller has occurred and is then continuing at the time such Income is
     paid or distributed.

6.   SECURITY INTEREST
     Although the parties intend that all Transactions hereunder be sales and
     purchases and not loans, in the event any such Transactions are deemed to
     be loans, Seller shall be deemed to have pledged to Buyer as security for
     the performance by Seller of its obligations under each such Transaction,
     and shall be deemed to have granted to Buyer a security interest in, all of
     the Purchased Securities with respect to all Transactions hereunder and all
     Income thereon and other proceeds thereof.

7.   PAYMENT AND TRANSFER
     Unless otherwise mutually agreed, all transfers of funds hereunder shall be
     in immediately available funds. All Securities transferred by one party
     hereto to the other party (i) shall be in suitable form for transfer or
     shall be accompanied by duly executed instruments of transfer or assignment
     in blank and such other documentation as the party receiving possession may
     reasonably request, (ii) shall be transferred on the book-entry system of a
     Federal Reserve Bank, or (iii) shall be transferred by any other method
     mutually acceptable to Seller and Buyer.

                                5 . September 1996 . Master Repurchase Agreement

<PAGE>

8.   SEGREGATION OF PURCHASED SECURITIES
     To the extent required by applicable law, all Purchased Securities in the
     possession of Seller shall be segregated from other securities in its
     possession and shall be identified as subject to this Agreement.
     Segregation may be accomplished by appropriate identification on the books
     and records of the holder, including a financial or securities intermediary
     or a clearing corporation. All of Seller's interest in the Purchased
     Securities shall pass to Buyer on the Purchase Date and, unless otherwise
     agreed by Buyer and Seller, nothing in this Agreement shall preclude Buyer
     from engaging in repurchase transactions with the Purchased Securities or
     otherwise selling, transferring, pledging or hypothecating the Purchased
     Securities, but no such transaction shall relieve Buyer of its obligations
     to transfer Purchased Securities to Seller pursuant to Paragraph 3, 4 or 11
     hereof, or of Buyer's obligation to credit or pay Income to, or apply
     Income to the obligations of, Seller pursuant to Paragraph 5 hereof.

          Required Disclosure for Transactions in Which the Seller Retains
          Custody of the Purchased Securities
          Seller is not permitted to substitute other securities for those
          subject to this Agreement and therefore must keep Buyer's securities
          segregated at all times, unless in this Agreement Buyer grants Seller
          the right to substitute other securities. If Buyer grants the right to
          substitute, this means that Buyer's securities will likely be
          commingled with Seller's own securities during the trading day. Buyer
          is advised that, during any trading day that Buyer's securities are
          commingled with Seller's securities, they [will]* [may]** be subject
          to liens granted by Seller to [its clearing bank]* [third parties]**
          and may be used by Seller for deliveries on other securities
          transactions. Whenever the securities are commingled, Seller's ability
          to resegregate substitute securities for Buyer will be subject to
          Seller's ability to satisfy [the clearing] *[any]** lien or to obtain
          substitute securities.

          * Language to be used under 17 C.F.R. B403.4(e) if Seller is a
          government securities broker or dealer other than a financial
          institution.
          ** Language to be used under 17 C.F.R. B403.5(d) if Seller is a
          financial institution.

9.   SUBSTITUTION
     (a)  Seller may, subject to agreement with and acceptance by Buyer,
          substitute other Securities for any Purchased Securities. Such
          substitution shall be made by transfer to Buyer of such other
          Securities and transfer to Seller of such Purchased Securities. After
          substitution, the substituted Securities shall be deemed to be
          Purchased Securities.

     (b)  In Transactions in which Seller retains custody of Purchased
          Securities, the parties expressly agree that Buyer shall be deemed,
          for purposes of subparagraph (a) of this Paragraph, to have agreed to
          and accepted in this Agreement substitution by Seller of other
          Securities for Purchased Securities; provided, however, that such
          other Securities shall have a Market Value at least equal to the
          Market Value of the Purchased Securities for which they are
          substituted.

6 . September 1996 . Master Repurchase Agreement

<PAGE>

10.  REPRESENTATIONS
     Each of Buyer and Seller represents and warrants to the other that (i) it
     is duly authorized to execute and deliver this Agreement, to enter into
     Transactions contemplated hereunder and to perform its obligations
     hereunder and has taken all necessary action to authorize such execution,
     delivery and performance, (ii) it will engage in such Transactions as
     principal (or, if agreed in writing, in the form of an annex hereto or
     otherwise, in advance of any Transaction by the other party hereto, as
     agent for a disclosed principal), (iii) the person signing this Agreement
     on its behalf is duly authorized to do so on its behalf (or on behalf of
     any such disclosed principal), (iv) it has obtained all authorizations of
     any governmental body required in connection with this Agreement and the
     Transactions hereunder and such authorizations are in full force and effect
     and (v) the execution, delivery and performance of this Agreement and the
     Transactions hereunder will not violate any law, ordinance, charter, by-law
     or rule applicable to it or any agreement by which it is bound or by which
     any of its assets are affected. On the Purchase Date for any Transaction
     Buyer and Seller shall each be deemed to repeat all the foregoing
     representations made by it.

11.  EVENTS OF DEFAULT
     In the event that (i) Seller fails to transfer or Buyer fails to purchase
     Purchased Securities upon the applicable Purchase Date, (ii) Seller fails
     to repurchase or Buyer fails to transfer Purchased Securities upon the
     applicable Repurchase Date, (iii) Seller or Buyer fails to comply with
     Paragraph 4 hereof, (iv) Buyer fails, after one business day's notice, to
     comply with Paragraph 5 hereof, (v) an Act of Insolvency occurs with
     respect to Seller or Buyer, (vi) any representation made by Seller or Buyer
     shall have been incorrect or untrue in any material respect when made or
     repeated or deemed to have been made or repeated, or (vii) Seller or Buyer
     shall admit to the other its inability to, or its intention not to, perform
     any of its obligations hereunder (each an "Event of Default"):

     (a)  The nondefaulting party may, at its option (which option shall be
          deemed to have been exercised immediately upon the occurrence of an
          Act of Insolvency), declare an Event of Default to have occurred
          hereunder and, upon the exercise or deemed exercise of such option,
          the Repurchase Date for each Transaction hereunder shall, if it has
          not already occurred, be deemed immediately to occur (except that, in
          the event that the Purchase Date for any Transaction has not yet
          occurred as of the date of such exercise or deemed exercise, such
          Transaction shall be deemed immediately canceled). The nondefaulting
          party shall (except upon the occurrence of an Act of Insolvency) give
          notice to the defaulting party of the exercise of such option as
          promptly as practicable.

     (b)  In all Transactions in which the defaulting party is acting as Seller,
          if the nondefaulting party exercises or is deemed to have exercised
          the option referred to in subparagraph (a) of this Paragraph, (i) the
          defaulting party's obligations in such Transactions to repurchase all
          Purchased Securities, at the Repurchase Price therefor on the
          Repurchase Date determined in accordance with subparagraph (a) of
          this Paragraph, shall thereupon become immediately due and payable,
          (ii) all Income paid after such exercise or deemed exercise shall be
          retained by the nondefaulting party and applied to the aggregate
          unpaid Repurchase Prices and any other amounts owing by the defaulting
          party hereunder, and (iii) the defaulting party shall immediately
          deliver to the nondefaulting party any Purchased Securities subject to
          such Transactions then in the defaulting party's possession or
          control.

                                7 . September 1996 . Master Repurchase Agreement

<PAGE>

     (c)  In all Transactions in which the defaulting party is acting as Buyer,
          upon tender by the nondefaulting party of payment of the aggregate
          Repurchase Prices for all such Transactions, all right, title and
          interest in and entitlement to all Purchased Securities subject to
          such Transactions shall be deemed transferred to the nondefaulting
          party, and the defaulting party shall deliver all such Purchased
          Securities to the nondefaulting party.

     (d)  If the nondefaulting party exercises or is deemed to have exercised
          the option referred to in subparagraph (a) of this Paragraph, the
          nondefaulting party, without prior notice to the defaulting party,
          may:

          (i)  as to Transactions in which the defaulting party is acting as
               Seller, (A) immediately sell, in a recognized market (or
               otherwise in a commercially reasonable manner) at such price or
               prices as the nondefaulting party may reasonably deem
               satisfactory, any or all Purchased Securities subject to such
               Transactions and apply the proceeds thereof to the aggregate
               unpaid Repurchase Prices and any other amounts owing by the
               defaulting party hereunder or (B) in its sole discretion elect,
               in lieu of selling all or a portion of such Purchased Securities,
               to give the defaulting party credit for such Purchased Securities
               in an amount equal to the price therefor on such date, obtained
               from a generally recognized source or the most recent closing bid
               quotation from such a source, against the aggregate unpaid
               Repurchase Prices and any other amounts owing by the defaulting
               party hereunder; and

          (ii) as to Transactions in which the defaulting party is acting as
               Buyer, (A) immediately purchase, in a recognized market (or
               otherwise in a commercially reasonable manner) at such price or
               prices as the nondefaulting party may reasonably deem
               satisfactory, securities ("Replacement Securities") of the same
               class and amount as any Purchased Securities that are not
               delivered by the defaulting party to the nondefaulting party as
               required hereunder or (B) in its sole discretion elect, in lieu
               of purchasing Replacement Securities, to be deemed to have
               purchased Replacement Securities at the price therefor on such
               date, obtained from a generally recognized source or the most
               recent closing offer quotation from such a source.

          Unless otherwise provided in Annex I, the parties acknowledge and
          agree that (1) the Securities subject to any Transaction hereunder are
          instruments traded in a recognized market, (2) in the absence of a
          generally recognized source for prices or bid or offer quotations for
          any Security, the nondefaulting party may establish the source
          therefor in its sole discretion and (3) all prices, bids and offers
          shall be determined together with accrued Income (except to the extent
          contrary to market practice with respect to the relevant Securities).

     (e)  As to Transactions in which the defaulting party is acting as Buyer,
          the defaulting party shall be liable to the nondefaulting party for
          any excess of the price paid (or deemed paid) by the nondefaulting
          party for Replacement Securities over the Repurchase Price for the
          Purchased Securities replaced thereby and for any amounts payable by
          the defaulting party under Paragraph 5 hereof or otherwise hereunder.

     (f)  For purposes of this Paragraph 11, the Repurchase Price for each
          Transaction hereunder in respect of which the defaulting party is
          acting as Buyer shall not

8 . September 1996 . Master Repurchase Agreement

<PAGE>

          increase above the amount of such Repurchase Price for such
          Transaction determined as of the date of the exercise or deemed
          exercise by the nondefaulting party of the option referred to in
          sub-paragraph (a) of this Paragraph,

     (g)  The defaulting party shall be liable to the nondefaulting party for
          (i) the amount of all reasonable legal or other expenses incurred by
          the nondefaulting party in connection with or as a result of an Event
          of Default, (ii) damages in an amount equal to the cost (including all
          fees, expenses and commissions) of entering into replacement
          transactions and entering into or terminating hedge transactions in
          connection with or as a result of an Event of Default, and (iii) any
          other loss, damage, cost or expense directly arising or resulting from
          the occurrence of an Event of Default in respect of a Transaction.

     (h)  To the extent permitted by applicable law, the defaulting party shall
          be liable to the non-defaulting party for interest on any amounts
          owing by the defaulting party hereunder, from the date the defaulting
          party becomes liable for such amounts hereunder until such amounts are
          (i) paid in full by the defaulting party or (ii) satisfied in full by
          the exercise of the nondefaulting party's rights hereunder. Interest
          on any sum payable by the defaulting party to the nondefaulting party
          under this Paragraph 1l(h) shall be at a rate equal to the greater of
          the Pricing Rate for the relevant Transaction or the Prime Rate.

     (i)  The nondefaulting party shall have, in addition to its rights
          hereunder, any rights otherwise available to it under any other
          agreement or applicable law.

12.  SINGLE AGREEMENT
     Buyer and Seller acknowledge that, and have entered hereinto and will enter
     into each Transaction hereunder in consideration of and in reliance upon
     the fact that, all Transactions hereunder constitute a single business and
     contractual relationship and have been made in consideration of each other.
     Accordingly, each of Buyer and Seller agrees (i) to perform all of its
     obligations in respect of each Transaction hereunder, and that a default in
     the performance of any such obligations shall constitute a default by it in
     respect of all Transactions hereunder, (ii) that each of them shall be
     entitled to set off claims and apply property held by them in respect of
     any Transaction against obligations owing to them in respect of any other
     Transactions hereunder and (iii) that payments, deliveries and other
     transfers made by either of them in respect of any Transaction shall be
     deemed to have been made in consideration of payments, deliveries and other
     transfers in respect of any other Transactions hereunder, and the
     obligations to make any such payments, deliveries and other transfers may
     be applied against each other and netted.

13.  NOTICES AND OTHER COMMUNICATIONS
     Any and all notices, statements, demands or other communications hereunder
     may be given by a party to the other by mail, facsimile, telegraph,
     messenger or otherwise to the address specified in Annex II hereto, or so
     sent to such party at any other place specified in a notice of change of
     address hereafter received by the other. All notices, demands and requests
     hereunder may be made orally, to be confirmed promptly in writing, or by
     other communication as specified in the preceding sentence.

                                9 . September 1996 . Master Repurchase Agreement

<PAGE>

14.  ENTIRE AGREEMENT; SEVERABILITY
     This Agreement shall supersede any existing agreements between the parties
     containing general terms and conditions for repurchase transactions. Each
     provision and agreement herein shall be treated as separate and independent
     from any other provision or agreement herein and shall be enforceable
     notwithstanding the unenforceability of any such other provision or
     agreement.

15.  NON-ASSIGNABILITY; TERMINATION
     (a)  The rights and obligations of the parties under this Agreement and
          under any Transaction shall not be assigned by either party without
          the prior written consent of the other party, and any such assignment
          without the prior written consent of the other party shall be null and
          void. Subject to the foregoing, this Agreement and any Transactions
          shall be binding upon and shall inure to the benefit of the parties
          and their respective successors and assigns. This Agreement may be
          terminated by either party upon giving written notice to the other,
          except that this Agreement shall, notwithstanding such notice, remain
          applicable to any Transactions then outstanding.

     (b)  Subparagraph (a) of this Paragraph 15 shall not preclude a party from
          assigning, charging or otherwise dealing with all or any part of its
          interest in any sum payable to it under Paragraph 11 hereof.

16.  GOVERNING LAW
     This Agreement shall be governed by the laws of the State of New York
     without giving effect to the conflict of law principles thereof.

17.  NO WAIVERS, ETC.
     No express or implied waiver of any Event of Default by either party shall
     constitute a waiver of any other Event of Default and no exercise of any
     remedy hereunder by any party shall constitute a waiver of its right to
     exercise any other remedy hereunder. No modification or waiver of any
     provision of this Agreement and no consent by any party to a departure
     here-from shall be effective unless and until such shall be in writing and
     duly executed by both of the parties hereto. Without limitation on any of
     the foregoing, the failure to give a notice pursuant to Paragraph 4(a) or
     4(b) hereof will not constitute a waiver of any right to do so at a later
     date.

18.  USE OF EMPLOYEE PLAN ASSETS
     (a)  If assets of an employee benefit plan subject to any provision of the
          Employee Retirement Income Security Act of 1974 ("ERISA") are intended
          to be used by either party hereto (the "Plan Party") in a Transaction,
          the Plan Party shall so notify the other party prior to the
          Transaction. The Plan Party shall represent in writing to the other
          party that the Transaction does not constitute a prohibited
          transaction under ERISA or is otherwise exempt therefrom, and the
          other party may proceed in reliance thereon but shall not be required
          so to proceed.

10 . September 1996 . Master Repurchase Agreement

<PAGE>

     (b)  Subject to the last sentence of subparagraph (a) of this Paragraph,
          any such Transaction shall proceed only if Seller furnishes or has
          furnished to Buyer its most recent available audited statement of its
          financial condition and its most recent subsequent unaudited statement
          of its financial condition.

     (c)  By entering into a Transaction pursuant to this Paragraph, Seller
          shall be deemed (i) to represent to Buyer that since the date of
          Seller's latest such financial statements, there has been no material
          adverse change in Seller's financial condition which Seller has not
          disclosed to Buyer, and (ii) to agree to provide Buyer with future
          audited and unaudited statements of its financial condition as they
          are issued, so long as it is a Seller in any out-standing Transaction
          involving a Plan Party.

19.  INTENT
     (a)  The parties recognize that each Transaction is a "repurchase
          agreement" as that term is defined in Section 101 of Title 11 of the
          United States Code, as amended (except insofar as the type of
          Securities subject to such Transaction or the term of such Transaction
          would render such definition inapplicable), and a "securities
          contract" as that term is defined in Section 741 of Title 11 of the
          United States Code, as amended (except insofar as the type of assets
          subject to such Transaction would render such definition
          inapplicable).

     (b)  It is understood that either party's right to liquidate Securities
          delivered to it in connection with Transactions hereunder or to
          exercise any other remedies pursuant to Paragraph 11 hereof is a
          contractual right to liquidate such Transaction as described in
          Sections 555 and 559 of Title 11 of the United States Code, as
          amended.

     (c)  The parties agree and acknowledge that if a party hereto is an
          "insured depository institution," as such term is defined in the
          Federal Deposit Insurance Act, as amended ("FDIA"), then each
          Transaction hereunder is a "qualified financial contract," as that
          term is defined in FDIA and any rules, orders or policy statements
          thereunder (except insofar as the type of assets subject to such
          Transaction would render such definition inapplicable).

     (d)  It is understood that this Agreement constitutes a "netting contract"
          as defined in and subject to Title IV of the Federal Deposit Insurance
          Corporation Improvement Act of 1991 ("FDICIA") and each payment
          entitlement and payment obligation under any Transaction hereunder
          shall constitute a "covered contractual payment entitlement" or
          "covered contractual payment obligation", respectively, as defined in
          and subject to FDICIA (except insofar as one or both of the parties is
          not a "financial institution" as that term is defined in FDICIA).

20.  DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS
     The parties acknowledge that they have been advised that:

     (a)  in the case of Transactions in which one of the parties is a broker or
          dealer registered with the Securities and Exchange Commission ("SEC")
          under Section 15 of the Securities Exchange Act of 1934 ("1934 Act"),
          the Securities Investor Protection

                               11 . September 1996 . Master Repurchase Agreement

<PAGE>

          Corporation has taken the position that the provisions of the
          Securities Investor Protection Act of 1970 ("SIPA") do not protect
          the other party with respect to any Transaction hereunder;

     (b)  in the case of Transactions in which one of the parties is a
          government securities broker or a government securities dealer
          registered with the SEC under Section 15C of the 1934 Act, SIPA will
          not provide protection to the other party with respect to any
          Transaction hereunder; and

     (c)  in the case of Transactions in which one of the parties is a financial
          institution, funds held by the financial institution pursuant to a
          Transaction hereunder are not a deposit and therefore are not insured
          by the Federal Deposit Insurance Corporation or the National Credit
          Union Share Insurance Fund, as applicable.

Salomon Smith Barney Inc.                        KANKAKEE FED SVGS BANK.

By:                                              By: /s/ Ronald J. Walters
    ----------------------------                     ---------------------------
Name: Barrie Ringelheim                          Name: Ronald J. Walters
                                                       -------------------------
Title: Director                                  Title: SR. V.P. & Treasurer
                                                        ------------------------
Date:                                            Date:         3/13/2002
     ---------------------------                       -------------------------

12 . September 1996 . Master Repurchase Agreement

<PAGE>

                                     ANNEX I
                        SUPPLEMENTAL TERMS AND CONDITIONS

     This Annex I supplements and forms a part of the Master Repurchase
Agreement dated as of 3/13/2002 (the "Agreement") between Salomon Smith Barney
Inc. and KANKAKEE FED SVGS BNK. Capitalized terms used but not defined in this
Annex I shall have the meanings ascribed to them in the Agreement.

1.   Other Applicable Annexes. In addition to this Annex I and Annex II, the
     following Annexes and any Schedules thereto shall form a part of the
     Agreement and shall be applicable thereunder.

     Schedule B (ERISA Representations)

2.   Definitions. For purposes of the Agreement and this Annex I, the following
     terms shall have the following meanings:

     "Margin Notice Deadline" means 10:00 A.M. New York time.

     "Business Day" or "business day", with respect to any Transaction (other
     than an International Transaction) hereunder, a day on which regular
     trading may occur in the principal market for the Purchased Securities
     subject to such Transaction, which includes shortened trading days, days on
     which trades are permitted to occur but do not in fact occur and days on
     which the Purchased Securities are subject to percentage of movement or
     volume limitations, provided, however, that for purposes of calculating
     Market Value, such term shall mean a day on which regular trading occurs in
     the principal market for the assets the value of which is being determined.
     Notwithstanding the foregoing, (i) for purposes of Paragraph 4 of the
     Agreement, "business day" shall mean any day on which regular trading
     occurs in the principal market for any Purchased Securities or for any
     assets constituting Additional Purchased Securities under any outstanding
     Transaction hereunder and "next business day" shall mean the next day on
     which a transfer of Additional Purchased Securities may be effected in
     accordance with Paragraph 7 of the Agreement, and (ii) in no event shall a
     Saturday or Sunday be considered a business day.

3.   Margin Maintenance. Notwithstanding Paragraph 4 of the Agreement, with
     respect to any International Transaction (other than Transactions in
     English government securities and Transactions in which the Purchase Price
     and Repurchase Price are denominated in U.S. Dollars or which are cleared
     and settled in the U.S.), transfers required to be made by Seller of cash
     or Additional Purchased Securities and Buyer of cash or Purchased
     Securities pursuant to Paragraph 4 of the Agreement shall be made by the
     close of business on the next business day following the business day on
     which notice is given, in the case of notice given at or before the Margin
     Notice Deadline, or by the close of business on the second business day
     following the business day on which notice is given, in the case of notice
     given after the Margin Notice Deadline.

4.   PURCHASE PRICE MAINTENANCE.
     (a)  The parties agree that in any Transaction hereunder whose term extends
          over an income payment date for the Securities subject to such
          transaction, Buyer shall on the date such income is paid transfer to
          or credit to the account of Seller an amount equal to such income
          payment or payments pursuant to Paragraph 5(I) and shall not apply the
          income payment or payments to reduce the amount to be transferred to
          Buyer or Seller upon termination of the Transaction pursuant to
          Paragraph 5(II) of the Agreement.

     (b)  Notwithstanding the definition of Purchase Price in Paragraph 2 of the
          Agreement and the provisions of Paragraph 4 of the Agreement, the
          parties agree (i) that the Purchase Price will not be increased or
          decreased by the amount of any cash transferred by one party to the
          other pursuant to Paragraph 4 of the Agreement and (ii) that transfer
          of such cash shall be treated as if it constituted a transfer of
          Securities (with a Market Value equal to the U.S. dollar amount of
          such cash) pursuant to Paragraph 4(a) or (b), as the case may be
          (including for purposes of the definition of "Additional Purchased
          Securities").

                                       13a

<PAGE>

5.   SUBMISSION TO JURISDICTION AND WAIVER OF IMMUNITY.
     Each party irrevocably and unconditionally (I) submits to the exclusive
     jurisdiction of any United States Federal or New York State court sitting
     in Manhattan, and any appellate court from any such court, solely for the
     purpose of any suit, action or proceeding brought to enforce its
     obligations under the Agreement or relating in any way to the Agreement or
     any Transaction under the Agreement and (II) waives, to the fullest extent
     it may effectively do so, any defense of an inconvenient forum to the
     maintenance of such action or proceeding in any such court and any right of
     jurisdiction on account of its place of residence or domicilo.

     To the extent that either party has or hereafter may acquire any immunity
     (sovereign or otherwise) from any legal action, suit or proceeding, from
     jurisdiction of any court or from set off or any legal process (whether
     service or notice, attachment prior to judgment, attachment in aid of
     execution of judgment, execution of judgment or otherwise) with respect to
     itself or any of its property, such party hereby irrevocably waives and
     agrees not to plead or claim such immunity in respect of any action brought
     to enforce its obligations under the Agreement or relating in any way to
     the Agreement or any Transaction under the Agreement.

     Each party hereto hereby irrevocably waives all right to trial by jury in
     any action or proceeding arising out of or relating to this Agreement or
     any Transaction hereunder.

6.   CROSS DEFAULT.
     Each party to this agreement (such party, "Party X") agrees that, upon the
     insolvency of Party X or any of its affiliates or the default of Party X or
     any of its affiliates under any transaction with the other party hereto or
     any of such other party's affiliates (such other party or any of its
     affiliates, a "Non-Defaulting Party"), each Non-Defaulting Party may,
     without prior notice to Party X: (a) liquidate any transaction between
     Party X and any Non-Defaulting Party (which liquidation may include the
     conversion of amounts denominated in multiple currencies into a single
     currency if deemed necessary or desirable by the Non-Defaulting Party), (b)
     reduce any amounts due and owing to Party X under any transaction between
     Party X and any Non-Defaulting Party by setting off against such amounts
     any amounts due and owing to a Non-Defaulting Party by Party X, and (c)
     treat all security for, and all amounts due and owing to Party X under, any
     transaction between Party X and any Non-Defaulting Party as security for
     all transactions between Party X and any Non-Defaulting Party; provided,
     however, that the exercise of the remedies described in clauses (a), (b)
     and (c) above (or in any other similar provision in any agreement between
     the parties) shall be deemed to occur immediately subsequent to, but
     independent of, the exercise of any netting, liquidation, set-off or other
     similar provision contained in any master agreement between the parties;
     provided, further that each provision and agreement hereof shall be treated
     as independent from any other provision or agreement herein and shall be
     enforceable notwithstanding the unenforceability of any such other
     provision or agreement. For purposes of the foregoing, the term "affiliate"
     shall not include any entity that controls or is under common control with
     Salomon Smith Barney Holdings Inc., but in any event such term shall
     include Salomon Smith Barney Holdings Inc. and any entity controlled by it.

7.   SUBSTITUTIONS.
     (a)  In the case of any Transaction for which the Repurchase Date is other
          than the business day immediately following the Purchase Date and with
          respect to which Seller does not have any existing right to substitute
          substantially the same Securities for Purchased Securities, Seller
          shall have the right, subject to the proviso to this sentence, upon
          notice to Buyer, which notice shall be given at or prior to 10 A.M.
          New York time on such business day, to substitute substantially the
          same Securities for any Purchased Securities; provided, however, that
          Buyer may elect by the close of business on the business day notice is
          received, or by the close of the next business day if notice is given
          after 10 A.M. New York time on such day, not to accept such
          substitution. In the event such substitution is accepted by Buyer,
          such substitution shall be made by Seller's transfer to Buyer of such
          other Securities and Buyer's transfer to Seller of such Purchased
          Securities, and after substitution, the substituted Securities shall
          be deemed to be Purchased Securities. In the event Buyer elects not to
          accept such substitution, Buyer shall offer Seller the right to
          terminate the Transaction.

                                       13b

<PAGE>

     (b)  In the event Seller exercises its right to substitute or terminate
          under sub-paragraph (a), Seller shall be obligated to pay to Buyer, by
          the close of the business day of such substitution or termination, as
          the case may be, an amount equal to (A) Buyer's actual cost (including
          all fees, expenses and commissions) of (i) entering into replacement
          transactions; (ii) entering into or terminating hedge transactions;
          and/or (iii) terminating transactions or substituting securities in
          like transactions with third parties in connection with or as a result
          of such substitution or termination, and (B) to the extent Buyer
          determines not to enter into replacement transactions, the loss
          incurred by Buyer directly arising or resulting from such substitution
          or termination. The foregoing amounts shall be solely determined and
          calculated by Buyer in good faith.

8.   "OPEN" TRANSACTIONS.
     Whenever the parties enter into a Transaction on an "open basis", it is
     understood that the Transaction will terminate on the next succeeding
     Business Day, and that on any day that a Transaction is terminating, the
     parties may enter into a new Transaction (which may be accomplished by
     resetting the rate) which will, itself, terminate on the next succeeding
     Business Day. In all cases, unless the parties have agreed otherwise,
     "open" Transactions will settle following termination in accordance with
     the normal timeframe determined in accordance with market practice.

9.   RESALE OF PURCHASED SECURITIES
     The parties hereto acknowledge that from time to time the Purchased
     Securities may consist of Securities that have not been registered under
     the United States Securities Act of 1933 (the "Securities Act").
     Accordingly, Buyer agrees that if any Purchased Securities consist of
     Securities that have not been registered under the Securities Act, Buyer
     will not resell or otherwise transfer such Purchased Securities except in
     accordance with Regulation S or Rule 144A or other available exemption
     under the Securities Act and in accordance with all applicable laws and
     regulations in each jurisdiction in which it offers, sells or delivers
     Purchased Securities. In addition, if any Purchased Securities consist of
     bearer debt securities issued by a non-U.S. entity and if Buyer resells or
     otherwise transfers any such obligations, Buyer agrees that it will do so
     only under procedures adequate to satisfy the restrictions of applicable
     U.S. Treasury regulations relating to an original issuance of bearer bonds.

10.  LIMITATION OF LIABILITY
     No party shall be required to pay or be liable to the other party for any
     consequential, indirect or punitive damages, opportunity costs or lost
     profits (whether or not arising from its negligence).

11.  In the event of any inconsistency between the provisions of this Annex and
     the provisions of the Master Repurchase Agreement attached hereto, the
     terms contained in this Annex shall prevail.

Salomon Smith Barney Inc.                        KANKAKEE FED SVGS BANK.

By:                                              By: /s/ Ronald J. Walters
   ------------------------                         -------------------------
Name:  Barrie L. Ringelheim                      Name:  Ronald J. Walters
Title: Director                                  Title: SR. V.P. & Treas.

                                       13c

<PAGE>

                                    ANNEX II

             NAMES AND ADDRESSES FOR COMMUNICATIONS BETWEEN PARTIES

Contract Issues:

                            Salomon Smith Barney Inc.
                           Attention: Jason T. Sankey
                            Assistant Vice President
                         390 Greenwich Street, 4th Floor
                               New York, NY 10013
                             Telephone: 212-723-6251
                              Telefax: 212-723-8615

Operations Issues:

                            Salomon Smith Barney Inc.
                                   Ken Dasilva
                      333 West 34/th/ Street - 4/th/ Floor
                               New York, NY 10001
                             Telephone: 212-615-9159

                                       14

<PAGE>

                                   SCHEDULE B

This Schedule B sets forth additional terms and conditions governing
Transactions with parties that may involve "Plan Assets" as defined below.
Unless otherwise defined, capitalized terms used but not defined in this
Schedule shall have the meanings assigned in the Master Repurchase Agreement of
which this Schedule forms part (such agreement, together with this Schedule and
any other Annexes and Schedules or Exhibits attached thereto, shall be referred
to as the "Agreement").

1.   Paragraph 18 of the Master Repurchase Agreement is hereby deleted.

2.   ERISA Representations and Covenants. Each party represents and warrants
(which representations and warranties shall be deemed to be repeated upon
commencement of any Transaction and to continue for the duration of each such
Transaction) that the assets that are used in connection with the execution,
delivery and performance of this Agreement, or the Transactions entered pursuant
hereto, are not the assets of: (i) any employee benefit or other plan subject to
any provision of Title I of the Employee Retirement Income Security Act of 1974,
as amended ("ERISA"); (ii) a plan described in Section 4975 of the United States
Internal Revenue Code of 1986, as amended (the "Code"); (iii) an entity whose
underlying assets include "plan assets" by reason of United States Department of
Labor regulation section 2510.3-101 or otherwise; or (iv) a government plan that
is subject to any federal, state, or local law that is substantially similar to
the provisions of Section 406 of ERISA or Section 4975 of the Code (each a
"Plan").

3.   Change in Fund Character. If a party intends to enter into a Transaction
using the assets of any Plan (the "Plan Party"), the Plan Party shall notify the
other party (the "Non-Plan Party") in writing prior to the use of such Plan
assets for any purpose under this Agreement. In no event shall a Plan Party
enter into a Transaction using Plan assets under this Agreement, unless such
Plan Party amends this Schedule B (i) to disclose in writing the identity of any
such Plans and (ii) to represent and warrant to the satisfaction of the Non-Plan
Party that such Transaction will not constitute a prohibited transaction for
which no exemptive relief is available under ERISA and the reasons therefor. The
Non-Plan Party may enter into such Transaction involving the assets of any such
Plan in reliance upon such representations and warranties of the Plan Party but
shall not be required to so proceed.

4.   Indemnity. The Plan Party, Plan Party's Trustee, Investment advisor, or
named fiduciary, agrees to indemnify and hold the Non-Plan Party, the Non-Plan
Party's affiliates, successors and assigns and any director, officer, employee
or agent of any of the foregoing, harmless from and against, any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs and expenses, including but not limited to reasonable attorneys' fees and
disbursements, related to or arising out of any actions taken by the Non-Plan
Party in reliance upon the representations, warranties and agreements of the
Plan Party under this Schedule B. These indemnification obligations shall
survive the termination of this Agreement.

5.   Termination. If any of the provisions contained in this Schedule B are
breached by a Plan Party, the Non-Plan Party may terminate the Transactions that
are deemed, at the Non-Plan Party's sole discretion, to be in breach of this
Schedule B ("Affected Transactions"). The Plan Party shall pay the Non-Plan
Party a Breakage Fee for all Affected Transactions that are terminated before
their scheduled termination date. "Breakage Fee" shall mean, a fee equal to the
sum of (a) the cost to such Non-Plan Party (including all fees, expenses, and
commissions) of entering into replacement transactions and entering into or
terminating hedge transactions in connection with or as a result of the
termination of the Affected Transaction, and (b) any other loss, damage, cost or
expense directly arising or resulting from the termination of the Affected
Transactions that are incurred by such Non-Plan Party (other than losses or
costs for lost profits or lost opportunities), as determined by such Non-Plan
Party in a commercially reasonable manner, and (c) any other amount due and
payable by such Non-Plan Party to the Plan Party. The determination of the
Breakage Fee hereunder shall be made in accordance with market practice at the
side of the market of such Non-Plan Party.

[Counterparty]                          [Plan Party trustee, investment adviser,
                                        or named fiduciary]

By:_________________________            By: ____________________________
Title:______________________            Title: _________________________

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