Document:

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                                                                   EXHIBIT 10.16

                         FORM OF STOCK OPTION AGREEMENT

This Stock Option Agreement ("Agreement") entered into as of [date of grant] and
between Fluor Corporation, a Delaware corporation (the "Company"), and [name of
recipient] ("Grantee" or "you") evidences the grant to Grantee of a Stock Option
Award under the Fluor Corporation 2003 Executive Performance Incentive Plan
("Plan"). This Option is intended not to be an incentive stock option and
therefore is not subject to the tax treatment provided for under Section 422 of
the Internal Revenue Code.

Section 1  STOCK OPTION AWARD

The Company hereby awards Grantee an Option to purchase up to [number of shares]
shares of Company Common Stock pursuant to this Agreement at a purchase price
per share of [purchase price] (the "Option") (or an aggregate purchase price of
[aggregate purchase price] if this Option is exercised in full), subject to the
terms and conditions set forth herein and in the Plan. The Option may not be
exercised in whole or in part as of the Grant Date, and is exercisable only if
and to the extent provided in the following paragraphs and otherwise subject to
and in accordance with the Plan.

Section 2  VESTING AND EXPIRATION

[Vesting schedule to be determined by the Organization and Compensation
Committee. Certain agreements provide for cliff vesting, time vesting, and/or
acceleration upon the achievement of certain performance targets or maintenance
of a certain stock price for a certain period of time.] Subject to the
provisions below, the right to exercise the Option shall expire on [expiration
date].

If your employment with the Company or any of its subsidiaries terminates for
any reason other than death, Retirement or Disability, then as of the date of
such termination this Option shall expire as to any portion which has not then
become exercisable. If prior to the Option becoming exercisable in full pursuant
to the foregoing paragraph, your employment with the Company or any of its
subsidiaries terminates by reason of your death, Retirement or Disability, or if
a Change of Control of the Company occurs as determined in accordance with the
Plan, then any portion of this Option which has yet to become exercisable shall
become exercisable as of such date. To the extent that this Option is
exercisable immediately after your termination of employment, after taking into
account the vesting provisions set forth in this paragraph, then following such
termination of employment this Option will expire on the earlier of (A) the
fifth (5th) anniversary of the Grant Date, (B) three (3) months following your
termination of employment, if such termination occurred other than on account of
death, Retirement or Disability, or your termination within two years after a
Change of Control of the Company; or (C) the third anniversary of your
termination of employment, if such termination occurred on account of your
death, Retirement or Disability, or your termination within two years after a
Change of Control of the Company. For purposes of this Agreement, "Retirement"
shall mean retirement at or after normal retirement age and "Disability" shall
mean permanent and total disability, all as determined in accordance with
applicable Company personnel policies and the Plan.

SECTION 3  AWARD SUBJECT TO PLAN

This Stock Option Award is made subject to all of the terms and conditions of
the Plan, a copy of which is provided to Grantee herewith, including any terms,
rules or determinations made by the Committee (as defined in the Plan), pursuant
to its administrative authority under the Plan and such further terms as are set
forth in the Plan that are applicable to awards thereunder including, without
limitation, provisions on adjustment of awards, non-transferability,
satisfaction of tax requirements and compliance with other laws. Capitalized
terms used in this Agreement and not defined herein have the meaning set forth
in the Plan.

SECTION 4    RESALE AND TRANSFER RESTRICTIONS

The Company may impose such restrictions, conditions or limitations as it
determines appropriate as to the timing and manner of any resales by the Grantee
or other subsequent transfers by the Grantee of any shares of common stock
issued as a result of the exercise of this Option, including without limitation
(a) restrictions under an insider trading policy, (b) restrictions designed to
delay and/or coordinate the timing and manner of sales by Grantee and other
optionholders and (c) restrictions as to the use of a specified brokerage firm
for such resales or other transfers.

SECTION 5  CONFIDENTIALITY

The Agreement and the Option granted hereunder are conditioned upon Grantee not
disclosing this Agreement or said Option to anyone than Grantee's spouse or
confidential financial advisor or senior management of the Company or members of
the Company's Legal Services, Tax and Human Resources departments during the
period prior to the exercise of said Option. During said period, if disclosure
is made by Grantee to any other person, this Agreement and said Option shall be
null and void and all Options otherwise granted hereunder to Grantee shall
terminate.

<PAGE>
SECTION 6   ENFORCEMENT

This Agreement shall be construed, administered and enforced in accordance with
the laws of the State of California.

SECTION 7  EXECUTION OF AWARD AGREEMENT

Please acknowledge your acceptance of the terms of this Agreement by signing the
original of this Agreement and returning it to Executive Administration. If you
have not signed and returned this Agreement within one month, the Company is not
obligated to provide you any benefit hereunder and may refuse to issue shares to
you under this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first hereinabove written.

                                           FLUOR CORPORATION

                                           by ---------------------------------
                                              [Name]
                                              [Title]

                      Please Sign Here -->
                                              ---------------------------------
                                              Grantee

                                        2
<PAGE>
                       FORM OF RESTRICTED STOCK AGREEMENT

This Restricted Stock Agreement ("Agreement") entered into as of [date of grant]
(the "Grant Date"), by and between Fluor Corporation, a Delaware corporation
(the "Company"), and [name of recipient] ("Grantee" or "you") evidences the
grant to Grantee of a Restricted Stock Award under the Fluor Corporation 2003
Executive Performance Incentive Plan ("Plan").

Section 1. AWARD SUBJECT TO PLAN

This Restricted Stock Award is made subject to all of the terms and conditions
of the Plan, a copy of which is provided to Grantee herewith, including any
terms, rules or determinations made by the Committee (as defined in the Plan),
pursuant to its administrative authority under the Plan and such further terms
as are set forth in the Plan that are applicable to awards thereunder including,
without limitation, provisions on adjustment of awards, non-transferability,
satisfaction of tax requirements and compliance with other laws. Capitalized
terms used in this Agreement and not defined herein have the meaning set forth
in the Plan.

Section 2. RESTRICTED STOCK AWARD

The Company hereby awards Grantee a right to receive up to a total of [number]
Shares of Company common stock pursuant to this Restricted Stock Award, subject
to the terms and conditions set forth herein. Subject to the provisions of
Section 3 and Section 4 hereof, upon the issuance to Grantee of Restricted Stock
hereunder, Grantee shall have all the rights of a shareholder with respect to
the Shares, including the right to vote the Shares and receive all dividends and
other distributions paid or made with respect thereto.

Section 3. RESTRICTIONS ON SALE OR OTHER TRANSFER

Each share of stock awarded to Grantee pursuant to this Agreement shall be
subject to forfeiture to the Company and each share may not be sold or otherwise
transferred except pursuant to the following provisions:

         (a) The Shares shall be held in book entry form with the Company's
             transfer agent until the restrictions set forth herein lapse in
             accordance with the provisions of Section 4 or until the Shares are
             forfeited pursuant to paragraph (c) of this Section 3.

         (b) No such Shares may be sold, transferred or otherwise alienated or
             hypothecated so long as such Shares are subject to the restrictions
             provided for in this Agreement.

         (c) Upon your termination of employment with the Company or its
             subsidiaries for any reason other than those which result in a
             lapse of restrictions pursuant to Section 4(b)(3), then any such
             Shares as to which the foregoing restrictions have yet to lapse
             pursuant to Section 4, shall be forfeited by you and acquired by
             the Company at no cost to the Company on the date of such
             termination of employment.

Section 4. LAPSE OF RESTRICTIONS

         (a) [Performance criteria may be included for certain recipients at the
             discretion of the Organization and Compensation Committee.]

         (b) Subject to satisfaction of the foregoing performance condition, the
             restrictions set forth in Section 3 hereof shall lapse (provided
             that such Shares have not previously been forfeited pursuant to the
             provisions of paragraph (c) of Section 3 hereof) with respect to
             the number of Shares determined as specified below upon the
             occurrence of any of the following events (any such event, a "Vest
             Date"):

             (1) [Vesting schedule to be determined by the Organization and
                 Compensation Committee. Certain agreements provide for cliff
                 vesting, gradual vesting and/or long term "retirement" shares.]

             (2) Notwithstanding the foregoing, the restrictions set forth in
                 Section 3 hereof shall lapse (provided that such Shares have
                 not previously been forfeited pursuant to the provisions of
                 paragraph (c) of Section 3 hereof) upon all Shares which remain
                 subject to the foregoing restrictions, if prior to [insert last
                 vesting date], the employment of the Grantee by the Company or
                 its subsidiaries is terminated on account of death, retirement
                 at or after normal retirement age or permanent and total
                 disability, as determined in accordance with applicable Company
                 personnel policies, or for any reason within two years
                 following a Change of Control of the Company.

         (c) No stock certificate shall be delivered to Grantee or Grantee's
             legal representative as hereinabove provided unless and until the
             statutory amount of federal, state or local tax withholding or
             other employment tax obligations the Company determines is or may
             be required under applicable tax laws or regulations in connection
             with the taxable income resulting from the lapse of the
             restrictions set forth in Section 3 (the "Tax Withholding
             Obligation") has been withheld or paid pursuant to Section 5.

<PAGE>
Section 5. TAX WITHHOLDING

         (a) Unless you pay your Tax Withholding Obligation in accordance with
             Section 5(b), your acceptance of this Award shall constitute your
             instruction to the Company to withhold or sell on your behalf a
             whole number of Shares of Restricted Stock from those Shares of
             Restricted Stock with restrictions lapsing on a Vest Date as the
             Company determines to be appropriate to equal an amount sufficient
             to satisfy your Tax Withholding Obligation. If Shares are withheld
             by the Company, the average of the highest and lowest price per
             share at which Fluor's common stock is sold on the New York Stock
             Exchange on the Vest Date (the "Fair Market Value") will be used to
             calculate the amount of taxable income and the Tax Withholding
             Obligation due to the lapse of the restrictions on the Vest Date.
             The Tax Withholding Obligation on the Vest Date will be divided by
             the Fair Market Value on the Vest Date and rounded up to the
             nearest whole number to determine how many Shares of Restricted
             Stock will be withheld by the Company to pay your Tax Withholding
             Obligation. Certificates for the remaining Shares will be delivered
             to you. To the extent that rounding causes the Fair Market Value of
             the Shares of Restricted Stock withheld to exceed your Tax
             Withholding Obligation, the Company agrees to pay any such excess
             to your federal income tax withholding.

         (b) Notwithstanding the foregoing, you may elect to satisfy your Tax
             Withholding Obligation by notifying the Company's Executive
             Administration at least thirty (30) days prior to the applicable
             Vest Date that you intend to pay the Tax Withholding Obligation
             yourself and (i) by delivering to the Company on or before the Vest
             Date by wire transfer or certified check payable to the Company the
             amount that the Company determines is sufficient to satisfy your
             Tax Withholding Obligation, or (ii) by such other means as the
             Company may permit.

         (c) Regardless of any action the Company takes with respect to any or
             all tax withholding obligations that arise with respect to the
             Restricted Stock Award, you shall remain ultimately liable and
             responsible for all such taxes.

Section 6. CONFIDENTIALITY; NO RIGHT TO CONTINUING EMPLOYMENT

This Agreement and the receipt of any Shares hereunder are conditioned upon
Grantee not disclosing this Agreement or said receipt to anyone other than
Grantee's spouse or confidential financial advisor or senior management of the
Company or members of the Company's Legal Services, Tax and Human Resources
departments during the period prior to the lapse of the restrictions hereunder.
During said period, if disclosure is made by Grantee to any other person,
Grantee hereby agrees to forfeit any Shares received hereunder and to surrender
to the Company the certificates evidencing said Shares. Nothing in the Plan or
this Agreement confers any right to continuing employment with the Company or
its subsidiaries.

Section 7. ENFORCEMENT

This Agreement shall be construed, administered and enforced in accordance with
the laws of the State of California.

Section 8. EXECUTION OF AWARD AGREEMENT

Please acknowledge your acceptance of the terms and conditions of this Agreement
by signing the original of this Agreement and returning it to Executive
Administration. If you have not signed and returned this Agreement within one
month, the Company is not obligated to provide you any benefit hereunder and may
refuse to issue Shares to you under this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first hereinabove written.

                                          FLUOR CORPORATION

                                          by  ---------------------------------
                                              [Name}
                                              [Title]

                     Please Sign Here -->
                                              ---------------------------------
                                              Grantee

                                        2
<PAGE>
                 FORM OF VALUE DRIVER INCENTIVE AWARD AGREEMENT

This Value Driver Incentive Award Agreement ("Agreement") entered into as of
[date of grant], by and between Fluor Corporation, a Delaware corporation (the
"Company"), and [name of recipient] ("Grantee" or "you") evidences and confirms
the following Value Driver Incentive Award by the Committee under the Fluor
Corporation 2003 Executive Performance Incentive Plan (the "Plan").

Section 1. AWARD SUBJECT TO PLAN

Your Value Driver Incentive Award is made subject to all of the terms and
conditions of this Agreement and the Plan, a copy of which is provided to
Grantee herewith, including any terms, rules or determinations made by the
Committee (as defined in the Plan), pursuant to its administrative authority
under the Plan and such further terms as are set forth in the Plan that are
applicable to awards thereunder including, without limitation, provisions on
adjustment of awards, non-transferability, satisfaction of tax requirements and
compliance with other laws. Capitalized terms used in this Agreement and not
defined herein have the meaning set forth in the Plan.

Section 2. PERFORMANCE TARGET AND VALUE OF AWARD

Your Value Driver Incentive Award target amount is [dollar value] payable
subject to Company performance over the [number of years] period ending [date]
(the "Performance Period") with respect to [performance criteria to be
determined by Organization and Compensation Committee. Certain agreements have
net earnings, new awards (dollars), new awards (percentage) new awards gross
margin (dollars) and/or new awards gross margin (percentage) as the performance
criteria]. If [performance criteria] is:

         (a) less than [insert value], you will not be eligible to receive any
             amount of your target amount.

[Additional ranges and amounts may be included]

         (b) greater than [insert value], you will be eligible to receive 200%
             of your target amount.

Section 3. RETENTION PERIOD AND PAYOUT

The actual amount that you are eligible to receive, if any, will be paid to you:

         (a) [may be paid in stock, cash, restricted shares or a combination
             thereof, immediately or over a period of time, as determined by the
             Organization and Compensation Committee.]

Section 4. CONTINUED EMPLOYMENT

This Value Driver Incentive Award is conditioned upon your remaining in the
employment of the Company or its subsidiaries for the Retention Period. You
forfeit your participation if your employment terminates for any reason
(including retirement) at any time prior to the end of the Retention Period
other than termination on account of death or permanent and total disability, as
determined in accordance with applicable Company personnel policies, or
termination within two years after a Change of Control of the Company. If your
employment terminates during the Retention Period as a result of death or
permanent and total disability or within two years after a Change of Control of
the Company, the Value Driver Incentive Award shall become earned and payable in
accordance with its terms, notwithstanding such termination. Nothing in the Plan
or this Value Driver Incentive Award confers any right of continuing employment
with the Company or its subsidiaries.

Section 5. CONFIDENTIALITY

This Agreement and the Value Driver Incentive Award granted hereunder are
conditioned upon Grantee not disclosing this Agreement to anyone other than
Grantee's spouse or confidential financial advisors, senior management of the
Company or members of the Company's Legal Services, Tax and Human Resources
departments. If disclosure is made to any other person, this Award shall be
forfeited.

Section 6. ENFORCEMENT

This Agreement shall be construed, administered and enforced in accordance with
the laws of the State of California.

<PAGE>
Section 7. EXECUTION OF AWARD AGREEMENT

Please acknowledge your acceptance of the terms of this Agreement by signing the
original of this Agreement and returning it to Executive Administration. If you
have not signed and returned this Agreement within one month, the Company is not
obligated to provide you any benefit hereunder and may refuse to make any
payouts to you under this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first hereinabove written.

                                          FLUOR CORPORATION

                                          by  ---------------------------------
                                              [Name]
                                              [Title]

                     Please Sign Here -->
                                              ---------------------------------
                                              Grantee

                                        2
<PAGE>
                  FORM OF RELATIVE PERFORMANCE AWARD AGREEMENT

This Relative Performance Award Agreement ("Agreement") entered into as of [date
of grant], by and between Fluor Corporation, a Delaware corporation (the
"Company"), and [name of recipient] ("Grantee" or "you") evidences and confirms
the following Relative Performance Award by the Committee under the Fluor
Corporation 2003 Executive Performance Incentive Plan (the "Plan").

Section 1. AWARD SUBJECT TO PLAN

Your Relative Performance Award is made subject to all of the terms and
conditions of this Agreement and the Plan, a copy of which is provided to
Grantee herewith, including any terms, rules or determinations made by the
Committee (as defined in the Plan), pursuant to its administrative authority
under the Plan and such further terms as are set forth in the Plan that are
applicable to awards thereunder including, without limitation, provisions on
adjustment of awards, non-transferability, satisfaction of tax requirements and
compliance with other laws. Capitalized terms used in this Agreement and not
defined herein have the meaning set forth in the Plan.

Section 2. PERFORMANCE TARGET AND VALUE OF AWARD

Your Relative Performance Award target amount is [dollar value] payable subject
to Company performance over the [number of years] period ending [date] (the
"Performance Period") with respect to [total shareholder return of the Company's
common stock relative to the total shareholder return of peer group (generally,
S&P 500, S&P 400 Mid-Cap, DJI Heavy Index, or selected peer group companies, as
determined by Organization and Compensation Committee]. If the Company's Total
Shareholder Return over the Performance Period is:

         (a) less than [insert percentage] of the Total Shareholder Return of
             the [peer group], you will not be eligible to receive any amount of
             your target amount.

[Additional ranges and amounts may be included]

         (b) greater than [insert percentage] of the Total Shareholder Return of
             the [peer group], you will be eligible to receive 200% of your
             target amount.

Section 3. RETENTION PERIOD AND PAYOUT

The actual amount that you are eligible to receive, if any, will be paid to you:

         (a) [may be paid in stock, cash, restricted shares or a combination
             thereof immediately or over a period of time, as determined by the
             Organization and Compensation Committee]

Section 4. CONTINUED EMPLOYMENT

This Relative Performance Award is conditioned upon your remaining in the
employment of the Company or its subsidiaries for the Retention Period. You
forfeit your participation if your employment terminates for any reason
(including retirement) at any time prior to the end of the Retention Period
other than termination on account of death or permanent and total disability, as
determined in accordance with applicable Company personnel policies, or
termination within two years after a Change of Control of the Company. If your
employment terminates during the Retention Period as a result of death or
permanent and total disability or within two years after a Change of Control of
the Company, the Relative Performance Award shall become earned and payable in
accordance with its terms, notwithstanding such termination. Nothing in the Plan
or this Relative Performance Award confers any right of continuing employment
with the Company or its subsidiaries.

Section 5. CONFIDENTIALITY

This Agreement and the Relative Performance Award granted hereunder are
conditioned upon Grantee not disclosing this Agreement to anyone other than
Grantee's spouse or confidential financial advisors, senior management of the
Company or

<PAGE>
members of the Company's Legal Services, Tax and Human Resources departments. If
disclosure is made to any other person, this Award shall be forfeited.

Section 6. ENFORCEMENT

This Agreement shall be construed, administered and enforced in accordance with
the laws of the State of California.

Section 7. EXECUTION OF AWARD AGREEMENT

Please acknowledge your acceptance of the terms of this Agreement by signing the
original of this Agreement and returning it to Executive Administration. If you
have not signed and returned this Agreement within one month, the Company is not
obligated to provide you any benefit hereunder and may refuse to make any
payouts to you under this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first hereinabove written.

                                           FLUOR CORPORATION

                                           by  _________________________________
                                               [Name]
                                               [Title]

                         Please Sign Here -->
                                               _________________________________
                                               Grantee<PAGE>

                                                                   EXHIBIT 10.14

                         SEVERANCE AGREEMENT AND RELEASE

      This Severance Agreement and Release ("Agreement") is between Citizens
Financial Services, FSB, a federally chartered savings bank doing business in
Indiana, and CFS Bancorp, Inc., an Indiana corporation (collectively,
"Citizens"), and James W. Prisby ("Executive"), a resident of the State of
Indiana:

                                 I. RECITATIONS

      1.01. Executive currently serves as the Vice Chairman of the Board of
Directors and President and Chief Operating Officer of Citizens, and is a
Director of Citizens.

      1.02. Executive agrees to resign his employment with Citizens and his
service as a Director on Citizens' Board of Directors in consideration of the
payment and benefits set forth in Section IV of this Agreement.

                          II. INTENTION OF THE PARTIES

      2.01. Citizens and Executive intend and expect that Executive shall
surrender and renounce all privileges and rights that derive from his employment
by Citizens (including, but not limited to, the privileges and rights derived
under the Employment Agreement, dated July 21, 2003, between Executive and CFS
Bancorp, Inc. and the Employment Agreement, dated July 21, 2003, between
Executive and Citizens Financial Services, FSB), and the separation thereof, and
service as a Director of Citizens, except any and all rights Executive has
pursuant to any pension or other retirement benefit plan, profit sharing, stock
option, employee stock ownership, or other plans (the "Plans") in which
Executive participated as of the Resignation Date subject to and in accordance
with the applicable provisions thereof.

                          III. AGREEMENTS OF EXECUTIVE

      3.01. RESIGNATION. Executive's employment with Citizens will terminate on
August 20, 2004 (the "Resignation Date"). Effective on the Resignation Date,
Executive will be relieved of all duties for and responsibilities with Citizens.
Executive hereby resigns any and all officer, director and other positions with
Citizens or any of its affiliates or Plans effective on the Resignation Date.

      3.02. CONSIDERATION. With the exception of Executive's accrued, but unused
(if any), vacation time, the severance payment and benefits set forth in Section
IV of this Agreement shall be the only payment and benefits stemming from
Executive's employment with Citizens to which he shall be entitled following his
resignation. Executive agrees that such payment is in addition to any other
payments (if any) owed Executive by Citizens.

      3.03. NO ADMISSION OF LIABILITY. Executive agrees that the payment and
benefits set forth in Section IV of this Agreement shall not be deemed or
construed at any time for any purpose as an admission of liability or violation
of any applicable law by Citizens. Liability for any and all claims is expressly
denied by Citizens.

<PAGE>

      3.04. RELEASE. Executive agrees that in consideration of the payment and
benefits set forth in Section IV of this Agreement, Executive hereby releases
and forever discharges Citizens and its officers, directors, representatives,
successors and assigns, and all persons acting by, through, under, or in concert
with any of them, from all legal and equitable causes of action, that exist or
have accrued as of the date of this Agreement, whether known or unknown,
suspected or unsuspected including, but not limited to, all charges, complaints,
claims, demands, liabilities, and obligations of any kind or nature that could
be asserted against Citizens by reason of Executive's employment relationship
with Citizens, or separation thereof, or by Executive's shareholder relationship
with Citizens. This irrevocable and unconditional release includes, but is not
limited to, claims arising pursuant to the Civil Rights Act of 1866; Title VII
of the Civil Rights Act of 1964, as amended; the Age Discrimination in
Employment Act, as amended ("ADEA"); the Older Workers Benefit Protection Act
("OWBPA"); the Americans with Disabilities Act; the Family and Medical Leave
Act; the Employee Retirement Income Security Act of 1974, as amended; the Fair
Labor Standards Act; the Indiana Wage Payment Act; the Indiana Wage Claims Act;
the Indiana Civil Rights Act; any state wage and hour laws; any state contract
or tort law including, but not limited to, wrongful termination, breach of
contract, breach of fiduciary duty, and infliction of emotional distress; any
claims for attorneys' fees; or claims for any rights to future employment, wages
and benefits with Citizens other than those set forth herein. This is not a
release or discharge of any of Citizens' continuing obligations set forth in
this Agreement.

      3.05. NO HOSTILE ACTION. Executive agrees that he will not, without the
prior written consent of Citizens:

      (a) acquire, offer to acquire, or agree to acquire, directly or
indirectly, by purchase or otherwise, any voting securities or direct or
indirect rights to acquire any voting securities of Citizens or any subsidiary
thereof, or any successor to or person in control of Citizens, or any assets of
Citizens, or any subsidiary or division thereof or of any such successor or
controlling person beyond Executive's beneficial ownership of shares of common
stock (including stock options) of Citizens as of the Resignation Date;

      (b) make, or in any way participate in, directly or indirectly, any
"solicitation" of "proxies" (as such terms are used in the rules of the
Securities and Exchange Commission), devote or seek to advise or influence any
person or entity with respect to the voting of, any voting securities of
Citizens;

      (c) make any public announcement with respect to, or submit a proposal
for, or offer of (with or without conditions), any transaction or shareholder
proposal involving Citizens or its securities or assets;

      (d) form, join or in any way participate in a "group" (as defined in
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) in
connection with any of the foregoing; or

      (e) request Citizens to amend or waive any provision of this paragraph.
Executive will promptly advise Citizens of any inquiry or proposal made to him
with respect to any of the foregoing.

                                       2
<PAGE>

      3.06. CONFIDENTIALITY, NONCOMPETITION AND NONSOLICITATION.

      (a) For a period of three (3) years from the date of execution of this
Agreement, Executive shall not, at any time or place, either directly or
indirectly, engage in any business or activity in competition with the business
affairs or interests of Citizens or be a director, officer or consultant to any
bank, savings and loan association, credit union, thrift, savings bank or
similar institution in the Chicago-Gary-Kenosha CMSA (as reported by the U.S.
Census Bureau). For purposes of this Agreement, "Competition" is defined as
activities typically engaged in by financial institutions, including, but not
limited to, lending, deposit taking, and investments.

      (b) For the purposes of this Agreement, directly or indirectly engaging in
a business activity in competition with the business or affairs of Citizens
includes, but is not limited to, serving or acting as an owner, partner, agent,
beneficiary or employee of any person, firm or corporate entity so engaged;
except nothing herein contained shall be deemed to prevent or limit the right of
Executive to invest any of his surplus funds in the capital stock or other
securities of any corporation whose stock or securities are publicly owned or
are regularly traded on any public exchange, nor shall anything herein contained
be deemed to prevent Executive from investing or limit Executive's right to
invest his surplus funds in real estate.

      (c) Until such time as the information is generally known in the public
domain, all information relating to the business of Citizens, including, but not
limited to, that business obtained or serviced by Executive and all customer
listings, contact lists, expiration cards, asset reports, instruments,
documents, papers and other material used in connection with such business,
shall be considered confidential and proprietary information of Citizens, and
shall be the exclusive property of Citizens. Executive shall keep all such
information and material confidential. Executive shall return any such
information in his possession as of his Resignation Date, including all copies
he has made thereof. Executive represents that he has not directly or indirectly
provided such information to any third parties prior to returning the
information to Citizens.

      (d) Executive agrees that for a period of three (3) years following his
Resignation Date, he will not:

            (i)   solicit any of Citizens' current customers or clients, defined
                  as customers or clients doing business with Citizens in the
                  two (2) year period prior to Executive's Resignation Date, for
                  the purpose of engaging in any activity which could be
                  considered "Competition" as defined herein;

            (ii)  divulge the names of any of Citizens' current customers or
                  clients to any other person, corporation or entity;

            (iii) divulge to anyone, except Citizens or its representatives, any
                  information regarding Citizens' management strategies,
                  marketing information or goals, policies and/or other
                  information regarding the affairs of Citizens,

                                       3
<PAGE>

                  all of which Executive is hereby obligated to keep secret,
                  however and whenever such information comes to his attention;
                  and

            (iv)  either directly or indirectly induce or solicit any person to
                  leave the employ of Citizens.

      3.07. CONFIDENTIALITY OF AGREEMENT. Executive agrees that the terms of
this Agreement are confidential in nature and he will not share the terms of
this Agreement with anyone other than his family, accountant, lawyer or
financial advisor.

      3.08. NON-DISPARAGEMENT. Executive agrees that he shall make no
disparaging comments about Citizens or any of its officers or directors to any
third parties following the execution of this Agreement.

      3.09. VOLUNTARY EXECUTION. Executive acknowledges and agrees that he is
executing this Agreement of his own free will and is not executing this
Agreement under any type of coercion or duress.

      3.10. CONSIDERATION AND WAIVER PERIOD. Executive acknowledges and agrees
that Citizens has informed him that he has a period of time of not less than
twenty-one (21) days within which to consider this Agreement or a reasonable
facsimile thereof. Executive acknowledges that he has been advised by Citizens
that, in the event he executes this document, he is entitled to revoke his
waiver of rights or claims arising under the ADEA and OWBPA within seven (7)
days after executing this document and that said waiver will not and does not
become effective or enforceable until the seven (7) day revocation period has
expired. This revocation must be in writing and personally delivered, or sent by
certified mail, postmarked no later than the seventh (7th) day following the
execution of this Agreement, to Thomas F. Prisby, CFS Bancorp, Inc., 707 Ridge
Road, Munster, Indiana 46321.

                           IV. AGREEMENTS OF CITIZENS

      4.01. SEVERANCE PAYMENT. Following the expiration of any applicable
waiting periods provided in Section 3.10 hereof (provided Executive has not made
a revocation pursuant to Section 10 hereof), and in consideration of Executive's
resignation and the surrender of all rights Executive may have against Citizens
that stem from his employment with or service as an officer or director of
Citizens, or the termination thereof, or as a shareholder of Citizens, Citizens
shall pay Executive in cash or cash equivalent funds, less all withholdings
required by federal, state and local law, the following amounts:

      (a) Six Hundred Thousand Dollars ($600,000.00) within ten (10) days
following the date of executive of this Agreement; and

      (b) Four Hundred Thousand Dollars ($400,000.00) on January 3, 2005.

      Such payment will be in addition to amounts otherwise owed to Executive by
Citizens and is in consideration for the covenants set forth in this Agreement.
Any earned but unpaid portion of Executive's base salary, at his then-effective
annual rate, plus any amounts accrued by

                                       4
<PAGE>

Executive under Citizens' accrued vacation program through the Resignation Date
will be paid to him on the payroll date that coincides with or immediately
follows the Resignation Date.

      4.02. BENEFITS. Executive shall be entitled, following his Resignation
Date, to receive such benefits as are provided under the Plans in which he
participated as of his Resignation Date, subject to and in accordance with the
applicable provisions thereof.

      4.03. COBRA OR RETIREE HEALTH COVERAGE. Executive is entitled, under the
Consolidated Omnibus Budget Reconciliation Act of 1986 ("COBRA"), to continued
health insurance coverage to the same extent that he was covered on his
Resignation Date. He shall be advised of those rights pursuant to a COBRA
notification letter. The qualifying date for COBRA will be the same as
Executive's Resignation Date. In the event Executive chooses to elect retiree
health insurance coverage offered by Citizens, such coverage will be provided
pursuant to the terms of that plan.

      4.04. INDEMNIFICATION. Citizens shall indemnify and hold Executive
harmless from any claims, lawsuits or actions filed against him, which accrued
while he was serving as an officer or Director of Citizens, pursuant to the
terms and conditions of the indemnification provisions of Citizens' By-Laws
and/or Articles of Incorporation or Charter as in effect on the Resignation
Date. Citizens shall also indemnify and hold Executive harmless from any claims,
lawsuits, or actions filed against him in his capacity as a director, officer,
employee or agent of another corporation, association, partnership, joint
venture, trust or other enterprise where Executive serves in such capacity at
the request of Citizens, accruing prior to or including Executive's Resignation
Date, pursuant to the terms and conditions of the indemnification provisions of
Citizens' By-Laws and/or Articles of Incorporation or Charter as in effect on
the Resignation Date.

      4.05. NON-DISPARAGEMENT. Citizens agrees that it, through its officers and
directors, shall make no disparaging comments about Executive to any third
parties following the execution of this Agreement. Executive acknowledges that
Citizens does not have total control over comments made to third parties by
employees in their individual capacities. However, to avoid any non-authorized
comments, Executive agrees to only refer prospective employers to an officer or
Director of Citizens for an employment recommendation.

      4.06. NO ADMISSION OF LIABILITY. Citizens agrees that this Agreement shall
not be deemed or construed at any time for any purpose as an admission of
liability or violation of any applicable law by Executive. Liability for any and
all claims is expressly denied by Executive.

      4.07. AUTHORIZATION. Citizens has the requisite corporate power and
authority to enter into this Agreement and to perform its obligations hereunder,
subject to the terms and conditions hereof.

                           V. AGREEMENT OF ALL PARTIES

      5.01. FURTHER ASSURANCES. Each of the parties hereto shall do, execute,
acknowledge, and deliver or cause to be done, executed, acknowledged, and
delivered at any time and from time to time upon the request of any other
parties hereto, all such further acts, documents, and

                                       5
<PAGE>

instruments as may be reasonably required to effect any of the transactions
contemplated by this Agreement.

      5.02. BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns; provided, however, that neither party hereto may assign this Agreement
without the prior written consent of the other party. Notwithstanding the
foregoing, this Agreement may be assigned, without the prior consent of
Executive, to a successor of Citizens (and Executive hereby consents to the
assignment of the restrictive covenants under this Agreement to a purchaser of
all or substantially all of the assets of Citizens or a transferee, by merger or
otherwise, of all or substantially all of the businesses and assets of Citizens)
and, upon Executive's death, this Agreement shall inure to the benefit of and be
enforceable by Executive's executors, administrators, representatives, heirs,
distributees, devisees, and legatees and all amounts payable hereunder shall be
paid to such persons or the estate of Executive.

      5.03. WAIVER; AMENDMENT. No provision or obligation of this Agreement may
be waived or discharged unless such waiver or discharge is agreed to in writing
and signed by Citizens and Executive. The waiver by any party hereto of a breach
of or noncompliance with any provision of this Agreement shall not operate or be
construed as a continuing waiver or a waiver of any other or subsequent breach
or noncompliance hereunder. Except as expressly provided otherwise herein, this
Agreement may be amended, modified, or supplemented only by a written agreement
executed by Citizens and Executive.

      5.04. HEADINGS. The headings in this Agreement have been inserted solely
for ease of reference and shall not be considered in the interpretation,
construction, or enforcement of this Agreement.

      5.05. SEVERABILITY. All provisions of this Agreement are severable from
one another, and the unenforceability or invalidity of any provision of this
Agreement shall not affect the validity or enforceability of the remaining
provisions of this Agreement; provided, however, that should any judicial body
interpreting this Agreement deem any provision to be unreasonably broad in time,
territory, scope, or otherwise, the parties intend for the judicial body, to the
greatest extent possible, to reduce the breadth of the provision to the maximum
legally allowable parameters rather than deeming such provision totally
unenforceable or invalid.

      5.06. NO COUNTERPARTS. This Agreement may not be executed in counterparts.

      5.07. GOVERNING LAW; JURISDICTION; VENUE. This Agreement shall be governed
by and construed in accordance with the laws of the State of Indiana, without
reference to the choice of law principles or rules thereof. The parties hereto
irrevocably consent to the jurisdiction and venue of the state court for the
State of Indiana located in Hammond, Indiana, or the Federal District Court for
the Northern District of Indiana, Hammond Division, located in Lake County,
Indiana, and agree that all actions, proceedings, litigation, disputes or claims
relating to or arising out of this Agreement shall be brought and tried only in
such courts.

      5.08. ENTIRE AGREEMENT. This Agreement constitutes the entire and sole
agreement between Citizens and Executive with respect to Executive's resignation
and there are no other

                                       6
<PAGE>

agreements or understandings either written or oral with respect thereto. The
parties agree that the (i) the Employment Agreement, dated July 21, 2003,
between Executive and CFS Bancorp, Inc. and (ii) the Employment Agreement, dated
July 21, 2003, between Executive and Citizens Financial Services, FSB, will be
terminated effective as of the Resignation Date and of no further force or
effect or liability thereunder.

      5.09. CONSTRUCTION. The rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of this Agreement. Whenever in this Agreement a singular
word is used, it also shall include the plural wherever required by the context
and vice-versa. All reference to the masculine, feminine, or neuter genders
shall include any other gender, as the context requires.

      5.10. ATTORNEYS' FEES. The prevailing party shall be entitled to
reasonable costs and expenses (including, without limitation, reasonable
attorneys' fees and disbursements) in connection with any legal action to
interpret or enforce any provision of this Agreement or for any breach of this
Agreement.

      5.11. TAXES AND OTHER AMOUNTS. All taxes (other than Citizens' portion of
employment taxes) on the payments specified in Section 4.01 hereof and all other
amounts payable to Executive hereunder and under the Plans and other benefit
plans and programs will be paid by Executive. Citizens will be entitled to
withhold from such payments and benefits (i) applicable income, employment and
other taxes required to be withheld therefrom; (ii) amounts authorized by
Executive; and (iii) other required or appropriate and customary amounts.

      5.12. REVIEW AND CONSULTATION. Citizens and Executive hereby acknowledge
and agree that each (i) has read this Agreement in its entirety prior to
executing it; (ii) understands the provisions and effects of this Agreement;
(iii) has consulted with such attorneys, accountants, and financial and other
advisors as it or he has deemed appropriate in connection with their respective
execution of this Agreement; and (iv) has executed this Agreement voluntarily.
EXECUTIVE HEREBY UNDERSTANDS, ACKNOWLEDGES, AND AGREES THAT THIS AGREEMENT HAS
BEEN PREPARED BY COUNSEL TO CITIZENS AND THAT HE HAS NOT RECEIVED ANY ADVICE,
COUNSEL, OR RECOMMENDATION WITH RESPECT TO THIS AGREEMENT FROM CITIZENS OR ITS
COUNSEL.

                                       7
<PAGE>

      IN WITNESS WHEREOF, this Severance Agreement and Release is executed as of
the day and year stated below.

EXECUTIVE                                   CITIZENS FINANCIAL SERVICES, FSB

/s/ James W. Prisby                         By:   /s/ Brian L. Goins
--------------------------------                --------------------------------
James W. Prisby                             Printed:  Brian L. Goins
                                                     ---------------------------
                                            Title:  Vice President - Corporate
                                                    Counsel
                                                   -----------------------------
Date:   August 20, 2004                     Date:   August 20, 2004
      --------------------------------            ------------------------------

                                            CFS BANCORP, INC.

                                            By:   /s/ Brian L. Goins
                                                --------------------------------
                                            Printed:  Brian L. Goins
                                                     ---------------------------
                                            Title:  Vice President - Corporate
                                                    Counsel
                                                   -----------------------------
                                            Date:   August 20, 2004
                                                  ------------------------------

                                       8

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