Document:

Exhibit 10.7

 

A. J. SMITH FEDERAL SAVINGS BANK

RETIREMENT PLAN

FOR

OUTSIDE DIRECTORS

 

Initially Effective as of December 18, 1995

Amendment and Restatement Effective as of January 1, 2001

 

 

A. J. SMITH FEDERAL SAVINGS BANK

RETIREMENT PLAN

FOR

OUTSIDE DIRECTORS

 

TABLE OF CONTENTS

 

	
ARTICLE I - GENERAL
    	
1
    
	
1.1
    	
Effective Date
    	
1
    
	
1.2
    	
Purpose
    	
1
    
	
1.3.
    	
Intent
    	
1
    
	
ARTICLE II - DEFINITIONS AND   USAGE
    	
2
    
	
2.1
    	
Definitions
    	
2
    
	
2.2
    	
Usage
    	
5
    
	
ARTICLE III - ELIGIBILITY   AND PARTICIPATION
    	
5
    
	
ARTICLE IV — PAYMENT OF   BENEFITS
    	
5
    
	
4.1
    	
Entitlement to Benefit   Payments
    	
5
    
	
4.2
    	
Modification of Benefit   Payments
    	
5
    
	
4.3
    	
Unforeseeable Emergencies
    	
6
    
	
4.4
    	
Hardship Withdrawals
    	
6
    
	
4.5
    	
Accelerated Distributions
    	
7
    
	
4.5.1
    	
Distribution Upon Request
    	
7
    
	
4.5.2
    	
Distribution Upon Change in   Control
    	
7
    
	
ARTICLE V - PAYMENT OF   BENEFITS ON OR AFTER DEATH
    	
8
    
	
5.1
    	
Commencement of Benefit   Payments
    	
8
    
	
5.2
    	
Designation of Beneficiary
    	
8
    
	
ARTICLE VI - ESTABLISHMENT   OF TRUST;
    	
8
    
	
AUTOMATIC FUNDING UPON A CHANGE   IN CONTROL
    	
8
    
	
ARTICLE VII - RIGHTS OF   PARTICIPANTS;TERMINATION OR SUSPENSION UNDER FEDERAL LAW
    	
8
    
	
ARTICLE VIII —   INTERPRETATION OF THE PLAN
    	
9
    
	
ARTICLE IX - LEGAL FEES
    	
10
    
	
ARTICLE X - MISCELLANEOUS   PROVISIONS
    	
10
    
	
10.1
    	
Amendment
    	
10
    
	
10.2
    	
Termination
    	
10
    
	
10.3
    	
No Assignment
    	
10
    
	
10.5
    	
Successors and Assigns
    	
11
    
	
10.6
    	
Governing Law
    	
11
    
	
10.7
    	
No Guarantee of Continued   Service
    	
11
    
	
10.8
    	
Severability
    	
11
    
	
10.9
    	
Notification of Addresses
    	
11
    
	
Appendix A
    	
13
    
	
Appendix B
    	
14
    

 

 

A. J. SMITH FEDERAL SAVINGS BANK

RETIREMENT PLAN FOR OUTSIDE DIRECTORS

 

WHEREAS, A. J. Smith Federal Savings Bank (the “Bank”) recognizes the unique qualifications of its non-employee directors (“Outside Directors”) and the valuable services that they have provided to the Bank; and

 

WHEREAS, in December 1995, the Bank adopted the A. J. Smith Federal Savings Bank Retirement Plan for Directors for the benefit of its Outside Directors and employee directors (“Inside Directors”) in order to provide retirement benefits to such person upon their separation from service; and

 

WHEREAS, the Board of Directors wishes to simplify the administration of the plan and to better recognize the unique contribution provided by each category of director; and

 

WHEREAS, the board believes that the best way to achieve this goal is to amend and restate the A. J. Smith Federal Savings Bank Retirement Plan for Directors into two separate and distinct plans, i.e., one plan for Inside Directors and one plan for Outside Directors;

 

NOW THEREFORE, this Plan shall now be referred to as the A. J. Smith Federal Savings Bank Retirement Plan for Outside Directors.

 

ARTICLE I - GENERAL

 

1.1                               Effective Date

 

The initial effective date for the Retirement Plan for Directors was December 18, 1995.  The provisions of this amended and restated Retirement Plan for Outside Directors shall be effective as of January 1, 2001.  The rights of any person whose status as an Outside Director of the Bank or its affiliates, if any, has terminated shall be determined pursuant to the Plan as in effect on the date of termination, unless a subsequently adopted provision of the Plan is made specifically applicable to such person.

 

1.2                               Purpose

 

The purpose of the Plan is to provide retirement income to a Participant for a designated period of time upon his separation from service from the Board.

 

1.3.                          Intent

 

This Plan is not intended to be an “employee pension benefit plan” under the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”), as none of its Participants are employees of the Bank, or its affiliates.  The Plan is not intended to be a plan described in section 401(a) of the Code or section 3(2)(A) of ERISA.  The obligation of the Bank to make payments under this Plan constitutes nothing more than an unsecured promise to make such

 

 

payments and any property of the Bank that may be set aside for the payment of benefits under the Plan shall in the event of the Bank’s bankruptcy or insolvency, remain subject to the claims of the Bank’s creditors until such benefits are distributed in accordance with Article IV or Article V herein.

 

ARTICLE II - DEFINITIONS AND USAGE

 

2.1                               Definitions

 

Whenever used in this Plan, the following words and phrases have the meanings set forth below unless the context clearly requires a different meaning:

 

“Bank” shall mean A. J. Smith Federal Savings Bank, and any successor thereto.

 

“Beneficiary” shall mean the person or persons whom a Participant may designate as the beneficiary of the Participant’s Benefits under Article V. In the absence of a valid beneficiary designation or in the event a designated beneficiary predeceases the Participant, a Participant’s Beneficiary shall be his estate.

 

“Benefit” or “Benefits” shall mean, collectively, the benefits payable pursuant to Articles IV and V of the Plan.

 

“Benefit Percentage” shall be determined based on the number of the Participant’s full years of service on the Board (whether before or after the Initial Effective Date, but disregarding service on the Board as an Inside-Director if covered at that time by a plan for Inside Directors), and shall be determined according to the following schedule:

 

	
Full Years of Service as
    	
 
    	
 
    	
 
    
	
a Non-Employee Director
    	
 
    	
Percentage
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
10
    	
%
    
	
2
    	
 
    	
20
    	
%
    
	
3
    	
 
    	
30
    	
%
    
	
4
    	
 
    	
40
    	
%
    
	
5
    	
 
    	
50
    	
%
    
	
6
    	
 
    	
60
    	
%
    
	
7
    	
 
    	
70
    	
%
    
	
8
    	
 
    	
80
    	
%
    
	
9
    	
 
    	
90
    	
%
    
	
10 or more
    	
 
    	
100
    	
%
    

 

Notwithstanding the foregoing schedule, an Outside Director’s Benefit Percentage shall accelerate to 100% upon (i) termination of his service on the Board due to his death or Disability, or (ii) a Change in Control.  A former Outside Director’s benefit Percentage will not increase as a result of the occurrence of a Change in Control.

 

2

 

“Board” shall mean the Board of Directors of the Bank.

 

“Change in Control” shall mean any one of the following events:

 

(a)           When the Bank is in the “mutual” form of organization, a “Change in Control” shall be deemed to have occurred if:

 

(i)  as a result of, or in connection with, any exchange offer, merger or other business combination, sale of assets or contested election, any combination of the foregoing transactions, or any similar transaction, the persons who were non-employee directors of the Bank before such transaction cease to constitute a majority of the Board of the Bank or any successor to the Bank;

 

(ii)  the Bank transfers substantially all of its assets to another corporation which is not a wholly-owned subsidiary of the Bank;

 

(iii)  the Bank sells substantially all of the assets of a subsidiary or affiliate;

 

(iv)  any “person” including a “group”, exclusive of the Board or any committee thereof, is or becomes the “beneficial owner”, directly or indirectly, of proxies of the Bank representing twenty-five percent (25 %) or more of the combined voting power of the Bank’s members; or

 

(v)  the Bank is merged or consolidated with another corporation and, as a result of the merger or consolidation, less than seventy percent (70 %) of the outstanding proxies relating to the surviving or resulting corporation are given, in the aggregate, by the former members of the Bank.

 

(b)           If the Bank shall be in the “stock” form of organization, either on a stand-alone basis or as a subsidiary of the Company, a “Change in Control” shall be deemed to have occurred if:

 

(i)  as a result of, or in connection with, any initial public offering, tender offer or exchange offer, merger or other business combination, sale of assets or contested election, any combination of the foregoing transactions, or any similar transaction, the persons who were directors of the Company or the Bank before such transaction cease to constitute a majority of the Board of the Company or the Bank or any successor to the Company or the Bank;

 

(ii)  the Company or the Bank transfers substantially all of its assets to another corporation which is not a wholly-owned subsidiary of the Company or the Bank;

 

(iii)  the Bank sells substantially all of the assets of a subsidiary or affiliate;

 

3

 

(iv)  any “person” including a “group” is or becomes the “beneficial owner”, directly or indirectly, of securities of the Company or the Bank representing twenty-five percent (25%) or more of the combined voting power of the Company’s or the Bank’s outstanding securities (with the terms in quotation marks having the meaning set forth under the Securities Exchange Act of 1934); or

 

(v)  the Company or the Bank is merged or consolidated with another corporation and, as a result of the merger or consolidation, less than seventy percent (70%) of the outstanding voting securities of the surviving or resulting corporation is owned in the aggregate by the former stockholders of the Bank.

 

Notwithstanding the foregoing, a “Change in Control” shall not be deemed to occur solely by reason of a transaction in which the Bank converts to the stock form of organization on a stand-alone basis or as a subsidiary of the Company. The decision of the Board as to whether a Change in Control has occurred shall be conclusive and binding.

 

“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

“Committee” means a Committee of the Board designated by the Board to administer the Plan.  The Committee shall consist of three or more members of the Board or, if no Committee is appointed, the full Board.

 

“Company” shall mean the mutual holding company or stock holding company parent of the Bank.

 

“Disability” shall mean the inability of an Outside Director, due to physical or mental infirmity as determined in the discretion of the Board, to perform the duties required for service on the Board.

 

“Employee” shall mean any person who is employed by the Bank or an affiliate on a full-time basis.

 

“Initial Effective Date” shall mean December 18, 1995.

 

“Inside Director” shall mean a Director who is also an Employee.

 

“Outside Director” shall mean a member of the Board who is not also an Employee.

 

“Participant” means an Outside Director who served on the Board on the Initial Effective Date or who served on the Board after such date and who was appointed by the Board pursuant to Article III to participate in the Plan.

 

“Plan” shall mean the A. J. Smith Federal Savings Bank Retirement Plan for Outside Directors, or its predecessor, the A. J. Smith Federal Savings Bank Retirement Plan for Directors.

 

4

 

“Plan Year” means the period from January 1 to December 31.

 

“Restatement Effective Date” shall mean January 1, 2001.

 

“Trust” shall mean that agreement entered into pursuant to the terms hereof between the Bank and the Trustee.

 

“Trustee” shall mean that person(s) or entity appointed by the Board pursuant to the Trust to hold legal title to the plan assets for the purposes set forth herein.

 

2.2                               Usage.

 

Except where otherwise indicated by the context, any masculine terminology used herein shall also include the feminine and vice versa, and the definition of any term herein in the singular shall also include the plural and vice versa.

 

ARTICLE III - ELIGIBILITY AND PARTICIPATION

 

Those Outside Directors who are participants in the Plan on the Restatement Effective Date shall continue to participate in the Plan.  Additional Outside Directors may be designated as Participants in the Plan by the Board, from time to time, in its sole discretion.  Additional Outside Directors shall commence participation in the Plan as of the first day of the Plan Year designated by the Board.   An Outside Director shall cease to be a Participant when he resigns or is terminated from the Board and: (1) his Benefit is not vested; or (2) his Benefit is distributed to him or on his behalf.

 

ARTICLE IV — PAYMENT OF BENEFITS

 

4.1                               Entitlement to Benefit Payments

 

In the event that a Participant’s service on the Board terminates for any reason other than death, the Participant shall receive 10 annual payments, with the amount of each payment being equal to the product of his Benefit Percentage and $12,000. The payments due to an Outside Director under this Article shall begin on the first day of the second month following the date of the Outside Director’s termination of service on the Board, and shall thereafter be made on the annual anniversary dates of such first payment date.  After the death of the Outside Director, remaining Benefits, if any, shall be payable as set forth in Article V.

 

4.2                               Modification of Benefit Payments

 

The Participant may elect, if such election occurs at least twelve (12) months prior to the distribution of benefits, to receive his distribution in the form of a lump sum or over some other period of years, not to exceed twenty (20).  Any other form of benefit shall be the actuarial equivalent of the benefit set forth in Section 4.1 hereof.  Such elections shall be made on a

 

5

 

document substantially in the form attached hereto as Appendix A.  If the Participants termination of service occurs before a given election becomes effective, then payment from the Plan shall be made in accordance with the Participant’s preceding election, or if none, in accordance with Section 4.1.  An election shall remain effective until the effective date of any subsequent election.

 

4.3                                 Unforeseeable Emergencies

 

Benefits may be paid to a Participant or Beneficiary hereunder in the event of an Unforeseeable Emergency.  An Unforeseeable Emergency means an unanticipated emergency that is caused by an event beyond the control of the participant or Beneficiary, such as a sudden and unexpected illness or accident of the Participant or of a dependent (as defined in Code Section 152(a)), loss of the Participant’s property due to casualty, or other similar extraordinary  and unforeseeable circumstances, and the Unforeseeable Emergency would result in severe financial hardship to the individual if early withdrawal were not permitted.  The circumstances that will constitute an unforeseeable emergency will depend upon the facts of each case, but, in any case, payment may not be made to the extent that such hardship is or may be relieved:

 

(a)                                 Through reimbursement or compensation by insurance or otherwise;

 

(b)                                 By liquidation of the Participant’s assets, to the extent the liquidation of such assets would not itself cause severe financial hardship; or

 

(c)                                  By cessation of deferrals under the Plan.

 

Examples of what are not considered Unforeseeable Emergencies include the need to send a Participant’s child to college or the desire to purchase a home.  An early withdrawal from the Plan pursuant to this provision must be limited to the amount necessary to meet the emergency.

 

4.4                               Hardship Withdrawals

 

Upon finding that a Participant has suffered a severe financial hardship, no rising to the level of an Unforeseeable Emergency, the Committee may, in its sole discretion, make distributions from the Participant’s vested Benefit prior to the time specified for payment of Benefits under the Plan.  Such hardship distributions may be made on account of an immediate and heavy financial need of the Participant for:

 

(a)                                                                                 Medical care as described in Code Section 213(d) for the Participant, the Participant’s spouse or dependent (as defined in Code Section 152);

 

(b)                                                                                 Educational expenses, such as the payment of tuition or related educational fees, or room and board expenses for the next twelve (12) months of postsecondary education for the Participant, the Participant’s spouse or dependent (as defined in Code Section 152);

 

6

 

(c)                                                                                  Costs directly related to the purchase of a principal residence  for the employee (excluding mortgage payments);

 

(d)                                                                                 Payments necessary to prevent the eviction of the Participant from his principal residence  or foreclosure of the mortgage on that residence;

 

(e)                                                                                  Payments for funeral expenses not covered by insurance for a member of the immediate family of the Participant; and

 

(f)                                                                                   Payments to cover the immediate expenses resulting from the divorce of the Participant.

 

The amount of such distribution shall be limited to the amount reasonably necessary to meet the Participant’s requirements during the financial hardship.  A distribution is not treated as necessary to satisfy an immediate and heavy financial need of an employee to the extent the amount of the distribution is in excess of the amount required to relieve the financial need or to the extent the need may be satisfied from other sources that are reasonably available to the Participant, including all nontaxable loans currently available under all plans maintained by the Bank.  This Committee’s determination regarding the Hardship Distribution is to be made on the basis of all the facts and circumstances and based upon the evidence provided to the Committee by the Participant and the Bank, including receipts, invoices, foreclosure notices, or the like, and including information that may be available to the bank or the Committee on other distributions available to the Participant, including nontaxable loans available under all plans maintained by the Bank.

 

No Participant shall be entitled to more than one (1) Hardship Withdrawal from the Plan.

 

4.5          Accelerated Distributions

 

4.5.1       Distribution Upon Request

 

After a Participant has terminated service, notwithstanding previous distribution elections to the contrary, a Participant shall be entitled to receive, upon written request to the Committee, a lump sum distribution equal to ninety percent (90%) of the present value of his vested Benefit balance as of the date on which the Committee receives the written request.  The remaining balance shall be forfeited by the Participant.  The amount payable under this Section shall be paid in a lump sum payment within ninety (90) days following the receipt of the notice by the Committee from the Participant.

 

4.5.2       Distribution Upon Change in Control

 

Upon a Change in Control, all Participants shall have the present value of their vested Benefit paid to them in a lump sum within thirty (30) days of the Change in Control.

 

7

 

ARTICLE V - PAYMENT OF BENEFITS ON OR AFTER DEATH

 

5.1                               Commencement of Benefit Payments.

 

If a Participant dies before payments of his Benefits under the Plan have commenced, or after payments have commenced, but before they are completely paid, and the Participant has designated his spouse as his Beneficiary, then his spouse shall be paid out, or shall continue to be paid out, in accordance with the terms of Article IV. If a Participant dies before payments of his Benefits under the Plan have commenced, or after payments have commenced, but before they are completely paid, and the Participant has a Beneficiary other than his Spouse (as designated by the Participant, or determined by the Committee, in accordance with Section 5.2), then the Participant’s non-spousal Beneficiary shall be entitled to receive the present value of the Participant’s remaining Benefits in the form of a lump sum.

 

5.2                               Designation of Beneficiary.

 

A Participant may, by delivering a written instrument to the Committee in the form attached hereto as Appendix B, designate one or more primary and contingent beneficiaries to receive his Benefit which may be payable to the Participant hereunder following the Participant’s death, and may designate the proportions in which such beneficiaries are to receive such payments. A Participant may change such designations from time to time, and the last written designation filed with the Committee prior to the Participant’s death shall control. If a Participant fails to specifically designate a beneficiary or, if no designated beneficiary survives the Participant, payment shall be made in the following order of priority:

 

(a)           to the Participant’s surviving spouse; or if none,

 

(b)           to the Participant’s children, per stirpes; or if none,

 

(c)                                      to the Participant’s estate.

 

ARTICLE VI - ESTABLISHMENT OF TRUST;

AUTOMATIC FUNDING UPON A CHANGE IN CONTROL

 

The Bank may establish a Trust into which it may contribute assets which may be held subject to the claims of the Bank’s creditors in the event of the Bank’s “Insolvency” as defined in the Trust.  In addition, prior to any Change in Control the Bank shall establish the Trust (if it has not been previously established), and shall contribute to the Trust an amount that is projected to be sufficient to enable the Trust to pay all Benefits that could become payable under the Plan.  In the event of a Change in Control, the Trust shall be irrevocable until all benefits have been paid to all Participants.

 

ARTICLE VII - RIGHTS OF PARTICIPANTS;TERMINATION OR SUSPENSION UNDER FEDERAL LAW

 

The rights of Participants and of their Beneficiaries (if any) shall be solely those of unsecured creditors of the Bank. In the event that the Bank shall establish a Trust, assets of the

 

8

 

Bank may be held by the Trust, subject to claims by general creditors of the Bank by appropriate judicial action as provided by such Trust.

 

If the Participant is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under Sections 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act (“FDIA”) (12 U.S.C. 1818(e)(4) or (g)(1)), all obligations of the Bank under this Plan shall terminate, as of the effective date of the order, but vested rights of the parties shall not be affected.

 

If the Bank is in default (as defined in Section 3(x)(1) of FDIA), all obligations under this Plan shall terminate as of the date of default; however, this Paragraph shall not affect the vested rights of the parties.

 

All obligations under this Plan shall terminate, except to the extent that continuation of this Plan is necessary for the continued operation of the Bank: (i) by the Director of the Office of Thrift Supervision (“Director of OTS”), or his or her designee, at the time that the Federal Deposit Insurance Corporation (“FDIC”) enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained in Section 13(c) of FDIA; or (ii) by the Director of the OTS, or his or her designee, at the time that the Director of the OTS, or his or her designee approves a supervisory merger to resolve problems related to operation of the Bank or when the Bank is determined by the Director of the OTS to be in an unsafe or unsound condition. Such action shall not affect any vested rights of the parties.

 

If a notice served under Section 8(e)(3) or (g)(1) of the FDIA (12 U.S. C. 1818(e)(3) or (g)(1)) suspends and/or temporarily prohibits the Participant from participating in the conduct of the Bank’s affairs, the Bank’s obligations under this Plan shall be suspended as of the date of such service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Bank may in its discretion (i) pay the Participant all or part of the compensation withheld while its contract obligations were suspended, and (ii) reinstate (in whole or in part) any of its obligations which were suspended.

 

To the extent required under federal banking law, the amount payable hereunder shall be reduced to the extent that on the date of an Outside Director’s termination of service as a Director, either (i) the present value of his Benefits exceeds the limitations that are set forth in Regulatory Bulletin 27a of the Office of Thrift Supervision, if in effect on such date, or (ii) such reduction is necessary to avoid subjecting the Bank to a loss of tax deduction under Code section 280G.

 

ARTICLE VIII — INTERPRETATION OF THE PLAN

 

The Committee shall have sole and absolute discretion to administer, construe, and interpret the Plan, and the decisions of the Committee shall be conclusive and binding on all affected parties (unless such decisions are arbitrary and capricious).

 

9

 

ARTICLE IX - LEGAL FEES

 

In the event any dispute shall arise between an Inside Director and the Bank as to the terms and interpretation of the Plan, whether instituted by formal legal proceedings or otherwise, including any action taken by a Director to enforce the terms of this Plan or in defending against any action taken by the Bank, the Bank shall reimburse the Director for all costs and expenses, including reasonable attorney’s fees, arising from such dispute, proceedings or actions; provided that the Inside Director shall return such amounts to the Bank if he fails to obtain a final judgment by a court of competent jurisdiction or obtain a settlement of such dispute, proceedings, or actions substantially in his favor.  Such reimbursements to a Director shall be paid within 10 days of the Director furnishing to the Bank written evidence, which may be in the form, among other things, of a cancelled check or receipt, of any costs or expenses incurred by the Director.  Any such request for reimbursement by a Director shall be made no more frequently than at 30 day intervals.

 

ARTICLE X - MISCELLANEOUS PROVISIONS

 

10.1                        Amendment

 

The Bank reserves the right to amend the Plan in any manner that it deems advisable by a resolution of the Board. No amendment shall, without the Participant’s consent, affect the amount of the Participant’s Benefit at the time the amendment becomes effective or the right of the Participant to receive a distribution of his Benefit.

 

10.2                        Termination

 

The Bank reserves the right to terminate the Plan at any time. No termination shall, without the Participant’s consent, affect the amount of the Participant’s Benefit prior to the termination or the right of the Participant to receive a distribution of his Benefit.

 

10.3                        No Assignment

 

The Participant shall not have the power to pledge, transfer, assign, anticipate, mortgage or otherwise encumber or dispose of in advance any interest in amounts payable under the Plan or any of the payments provided for in the Plan, nor shall any interest in amounts payable or in any payments under the Plan be subject to seizure for payments of any debts, judgments, alimony or separate maintenance, or be reached or transferred by operation of law in the event of bankruptcy, insolvency or otherwise.

 

10.4                        Incapacity.

 

If any person to whom a benefit is payable under the Plan is an infant or if the Administrator determines that any person to whom such benefit is payable is incompetent by reason of physical or mental disability, the Committee may cause the payments becoming due to such person to be made to another person for his benefit. Payments made pursuant to this Section shall, as to such payment, operate as a complete discharge of the Plan, the Bank, and the Committee.

 

10

 

10.5                        Successors and Assigns

 

The provisions of the Plan are binding upon and inure to the benefit of the Bank, its respective successors and assigns, and the Participant, his beneficiaries, heirs, legal representatives and assigns.

 

10.6                        Governing Law

 

The Plan shall be subject to and construed in accordance with the laws of the State of Illinois.

 

10.7                        No Guarantee of Continued Service

 

Nothing contained in the Plan shall be construed to give any Participant the right to be retained on the Board, or any equity or other interest in the assets, business or affairs of the Bank.

 

10.8                        Severability

 

If any provision of the Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions of the Plan, but the Plan shall be construed and enforced as if such illegal or invalid provision had never been included.

 

10.9                        Notification of Addresses

 

Each Participant and each beneficiary shall file with the Committee, from time to time, in writing, the post office address of the Participant, the post office address of each beneficiary, and each change of post office address. Any communication, statement or notice addressed to the last post office address filed with the Committee (or if no such address was filed with the Committee, then to the last post office address of the Participant or beneficiary as shown on the Bank’s records) shall be binding on the Participant and each beneficiary for all purposes of the Plan and neither the Committee nor the Bank shall be obligated to search for or ascertain the whereabouts of any Participant or beneficiary.

 

11

 

IN WITNESS WHEREOF, the Bank has caused this Plan to be executed this 17th day of April, 2001, by its duly authorized officer, effective as of January 1, 2001.

 

	
ATTEST/WITNESS:
    	
A. J. SMITH FEDERAL SAVINGS BANK
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Donna Manuel
    	
 
    	
 
    	
By:   
    	
/s/   Thomas R. Butkus
    
	
 
    	
Title:   Secretary
    	
 
    	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Date:   
    	
4-17-01
    	
 
    	
 
    	
  Date: 
    	
4-17-01
    
							

 

12

 

A. J. SMITH FEDERAL SAVINGS BANK

RETIREMENT PLAN

FOR OUTSIDE DIRECTORS

 

Appendix A

 

FORM OF PAYMENT ELECTION

 

To:                             Administrator, A. J. Smith Federal Savings Bank Retirement Plan for Outside Directors

A. J. Smith Federal Savings Bank 14757 South Cicero Avenue, Midlothian, Illinois 60445

 

Pursuant to Article IV, Section 4.2 of the Plan, the undersigned Participant hereby elects payment of the entire balance of his Memorandum Account in the following optional form:

 

o                                                                                    Lump Sum OR

 

o                                                                                    Annual Installments over            years (not in excess of 20).

 

This election shall become effective as of the January 1, first occurring at least 12-months following the submission of this election to the Administrator and shall remain effective until the effective date of any subsequent, superseding election. If the undersigned’s termination of employment, death or disability, or a Change in Control (as defined in the Plan) occurs before a given election becomes effective, then payment from the Plan shall be made in accordance with the Participant’s preceding election; or, if no election currently is in effect, then payment shall be made in accordance with the first sentence of Section 4.1 of the Plan.

 

Dated at Midlothian, Illinois, this            day of          , 200     

 

	
 
    	
    PARTICIPANT
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Print   Name
    

 

Received on behalf of the

Administrator this

 

          day of             , 200     

 

	
By
    	
 
    	
 
    	
 
    

 

13

 

A. J. SMITH FEDERAL SAVINGS BANK

 

RETIREMENT PLAN FOR OUTSIDE DIRECTORS

 

Appendix B

 

DESIGNATION OF BENEFICIARY

 

AGREEMENT, made this            day of                  , 200    , by and between                        (the “Participant”), and A. J. Smith Federal Savings Bank (the “Bank”).

 

WHEREAS,  the Bank has established that A.J. Smith Federal Savings Bank Retirement Plan for Outside Directors (the “Plan”), and the Participant is eligible to make a beneficiary designation with respect to any survivorship benefits that may become payable under Article V of said Plan;

 

NOW THEREFORE, it is mutually agreed as follows:

 

1.              Primary Beneficiary designation.

 

	
Name of
   Primary Beneficiary
    	
 
    	
Mailing Address
    	
 
    	
Percentage of
   Death Benefit
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
%
    

 

2.                                      Contingent Beneficiary. In the event that the primary beneficiary or beneficiaries named above are not living at the time of the Participant’s death, the participant hereby designates the following person(s) to be his or her contingent beneficiary for purposes of the Plan:

 

	
Name of
   Contingent Beneficiary
    	
 
    	
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3.                                      Effect of Election.  The elections made hereunder shall be revocable during the Participant’s lifetime, shall automatically supersede any prior elections made with respect to Article V of the Plan, and shall become irrevocable upon the Participant’s death.

 

4.              Bank’s Commitment.  The Bank agrees to make payment of the amount due the Participant in accordance with the terms of the Plan and the elections made by the Participant herein.

 

14

 

IN WITNESS WHEREOF, the parties hereto have hereunder set their hands the day and year first above-written.

 

 

	
Witnessed   by:
    	
PARTICIPANT
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Print   Name: 
    	
 
    	
 
    	
Print   Name
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Witnessed by:
    	
 
    	
BANK
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
A.   J. SMITH FEDERAL SAVINGS BANK
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
 
    
	
Print   Name: 
    	
 
    	
 
    	
Title:   
    	
 
    

 

15Exhibit 10.8

 

AGREEMENT BY AND BETWEEN
 A J Smith Federal Savings Bank
 Midlothian, IL

and

The Comptroller of the Currency

 

A J Smith Federal Savings Bank, Midlothian, IL (“Bank”) and the Comptroller of the Currency of the United States of America (“Comptroller”) wish to protect the interests of the depositors, other customers, and shareholders of the Bank, and, toward that end, wish the Bank to operate safely and soundly and in accordance with all applicable laws, rules and regulations.

 

The Comptroller has examined the Bank and has found unsafe and unsound practices relating to management, credit underwriting and administration, and liquidity risk management at the Bank.

 

In consideration of the above premises, it is agreed, between the Bank, by and through its duly elected and acting Board of Directors (“Board”), and the Comptroller, through his authorized representative, that the Bank shall operate at all times in compliance with the articles of this Agreement.

 

ARTICLE I

 

JURISDICTION

 

(1)                                    This Agreement shall be construed to be a “written agreement entered into with the agency” within the meaning of 12 U.S.C. § 1818(b)(l).

 

(2)                                  This Agreement shall be construed to be a “written agreement between such depository institution and such agency” within the meaning of 12 U.S.C. § 1818(e)(l) and 12 U.S.C. § 1818(i)(2).

 

 

(3)                                 This Agreement shall be construed to be a “formal written agreement” within the meaning of 12 C.F.R. §  163.555.  See 12 U.S.C. §  1831i.

 

(4)                                 This Agreement shall be construed to be a “written agreement” within the meaning of 12 U.S.C. §  1818(u)(1)(A).

 

(5)                                 This Agreement shall cause the Bank to not be eligible for “expedited treatment” within the meaning of 12 C.F.R. §  116.5, unless otherwise informed in writing by the Comptroller.

 

(6)                                 All reports or plans which the Bank or Board has agreed to submit to the Assistant Deputy Comptroller pursuant to this Agreement shall be forwarded to the: 

 

Assistant Deputy Comptroller

Chicago Field Office – Downers Grove

2001 Butterfield Rd, Suite 400

Downers Grove, IL 60515-7915

 

ARTICLE II

 

MANAGEMENT

 

(1)                                 The Board must ensure that the Bank has competent management in place on a full time basis to carry out the Board’s policies, ensure compliance with this Agreement, applicable laws, rules and regulations, and manage the day-to-day operations of the Bank in a safe and sound manner.

 

(2)                                 Within 90 days, the Board shall review the organizational structure and composition of the Bank’s management and make changes where appropriate to ensure compliance with Paragraph (1) of this Article, including additions to or deletions from current managerial positions or personnel if necessary.  At a minimum, as part of, or based upon its review, the Board shall:

 

 

(a)                                 delineate and assign specific senior executive officer positions to qualified individuals with defined duties and lines of authority sufficient to cover the scope of duties traditionally assigned to a Chief Executive Officer, Senior Lending Officer, Chief Financial Officer, Chief Operating Officer, and Chief Compliance Officer; and

 

(b)                                 assess each of the Bank’s current executive officers’ experience, other qualifications and performance compared to the position’s duties and lines of authority and make changes if appropriate.

 

The Board’s review, and any changes made or planned as a result, shall be documented and promptly submitted to the Assistant Deputy Comptroller for review.

 

(3)                                 If the Board determines that an officer will continue in his/her position but that the officer’s depth of skills needs improvement, the Board will within 60 days following its review of the report completed pursuant to Paragraph (2) of this Article (which shall be no later than 30 days from the Board’s receipt of the report) develop and implement a written program, with specific time frames, to improve the officer’s supervision and management of the Bank.  At a minimum the written program shall include:

 

(a)                                 an education program designed to ensure that the officer has skills and abilities necessary to supervise effectively;

 

(b)                                 a program to improve the effectiveness of the officer;

 

(c)                                  objectives by which the officer’s effectiveness will be measured; and

 

(d)                                 a performance appraisal program for evaluating performance according to the position’s description and responsibilities and for measuring performance against the Bank’s goals and objectives.

 

 

Upon completion, a copy of the written program shall be submitted to the Assistant Deputy Comptroller for review and no supervisory objection.

 

(4)                                 If a senior executive officer position is or at any time becomes vacant, the Board shall, within 90 days of such vacancy, after complying with the prior notice requirements of 12 C.F.R. §  163.560 or any applicable successor regulation or guidance as specified by the Comptroller, appoint a capable person to the vacant position who shall be vested with sufficient executive authority to ensure the Bank’s compliance with this Agreement and the safe and sound operation of functions within the scope of that position’s responsibility.  If the Bank is unable to locate an acceptable person to fill the vacancy within 90 days, despite its best efforts, the Bank may request an extension of time in writing from the Assistant Deputy Comptroller.

 

(5)                                 Prior to entering into any contract with any person for any senior executive officer position, the Board shall submit the name and qualifications of the individual(s), the proposed terms of employment, and a copy of the contract to the Assistant Deputy Comptroller for a prior written determination of no objection. Prior to submission of such contract to the Assistant Deputy Comptroller, the Board shall ensure that the contract fully complies with the requirements of all applicable laws, regulations, and regulatory guidance, including, but not limited to:

 

(a)                                 12 C.F.R. Part 359 (Golden Parachute and Indemnification Payments);

 

(b)                                 12 C.F.R. §§  163.39 (Employment Contracts) and 163.161(b) (Management and Financial Policies);

 

(c)                                  12 C.F.R. Part 170 – Appendix A, Sections II.I (Compensation, Fees and Benefits) and III (Prohibition on Compensation that Constitutes an Unsafe and Unsound Practice);

 

 

(d)                                 OCC Bulletin 2010-24 (Interagency Guidance on Sound Incentive Compensation Policies), dated June 21, 2010;

 

(e)                                  OTS’ Examination Handbook, Section 310, “Management;” and

 

(f)                                   any applicable successor regulation or guidance as specified by the Comptroller.

 

ARTICLE III

 

CREDIT & COLLATERAL EXCEPTIONS

 

(1)                                 Within ninety (90) days, the Board shall adopt, implement, and thereafter ensure Bank adherence to a written program designed to ensure the Bank obtains and analyzes updated credit and collateral information as necessary to monitor the Bank’s credit risk, properly account for loans, and assign accurate risk-ratings in a timely manner.  At a minimum, with respect to all loans, leases, or other extensions of credit not subject to the Revised Uniform Retail Credit Classification and Account Management Policy (OCC Bulletin 2000-20), the program shall require the Bank to obtain and analyze current and satisfactory credit information, maintain proper collateral documentation, and, where necessary, substantiate the current value of collateral, on an ongoing basis as needed to effectuate the purposes of the program listed above. The Board shall provide a copy of the written program adopted pursuant to this Paragraph to the Assistant Deputy Comptroller promptly upon adoption.

 

(2)                                 If despite prudent efforts the Board and management are unable to obtain the credit information or collateral documentation required by paragraph (1) of this Article, it shall not constitute a violation of this Article so long as the Bank’s ongoing efforts to obtain the information are documented and recorded in the respective credit file.

 

 

(3)                                 Effective immediately, the Bank may grant, extend, renew, alter or restructure any loan, lease, or other extension of credit only after:

 

(a)                                 documenting the specific reason or purpose for the extension of credit;

 

(b)                                 identifying the expected source(s) of repayment in writing;

 

(c)                                  structuring the repayment terms to coincide with the expected source(s) of repayment for the extension of credit;

 

(d)                                 obtaining and analyzing current credit information to appropriately assess the borrower’s cash flow and current financial position, and where repayment is dependent in whole or in part on one or more guarantors, performing an analysis of the guarantors’ current financial position and the guarantors’ and borrower’s global cash flow; and

 

(e)                                  documenting the current value of collateral with adequate supporting material (and in compliance with 12 C.F.R. Part 164 or any applicable successor regulation or guidance as specified by the Comptroller, where applicable), and documenting that the Bank’s security interest has been properly attached and recorded.

 

(4)                                 Failure to adhere to paragraph (3)(c) or to obtain and analyze the information in paragraph (3)(d) of this Article, with respect to a particular credit, shall not constitute a violation if, prior to granting the extension of credit, a majority of the full Board (or a delegated committee thereof) certifies in writing the specific reasons why not adhering to paragraph (3)(c), or not obtaining and analyzing the information required in paragraph (3)(d), would not be detrimental to the best interests of the Bank. A copy of the Board certification shall be maintained in the Bank’s credit file for the respective borrower(s) for subsequent review by the Comptroller in connection with examinations of the Bank.

 

 

ARTICLE IV

 

RISK RATING AND NONACCRUAL RECOGNITION

 

(1)                                 Within ninety (90) days, the Board shall adopt, implement, and thereafter ensure adherence to a written program to ensure that the risk associated with the Bank’s loans and other assets is properly reflected and accounted for on the Bank’s books and records and the Bank does not improperly recognize income. The Bank’s written program shall include, at a minimum, provisions requiring that:

 

(a)                                 the Board shall adopt a loan grading system that is consistent with the criteria set forth in applicable regulations and regulatory guidance, including, but not limited to:

 

(i)                                     12 C.F.R. §  160.160 (Asset Classification);

 

(ii)                                  OTS’ Examination Handbook, Section 260, “Classification of Assets;” and

 

(iii)                                  any applicable successor regulation or guidance as specified by the Comptroller;

 

(b)                                 the Bank’s loans and other assets are graded based upon current facts and existing/reasonable (considering the loan purpose) repayment terms with a focus upon whether the primary repayment source is threatened by a well-defined weakness and whether the credit relies heavily upon secondary repayment sources, especially illiquid collateral or an unsubstantiated guarantor;

 

(c)                                  the Bank’s loans and other assets are timely placed on nonaccrual in accordance with the Instructions for Consolidated Reports of Income and Condition (“Call Report”), the OTS’ Examination Handbook, Section 260,

 

 

“Classification of Assets,” or any applicable successor regulation or regulatory guidance as specified by the Comptroller;

 

(d)                                 lending officers conduct periodic, formal reviews for determining the appropriate risk rating and accrual determination;

 

(e)                                  appropriate analysis and documentation is maintained in the credit files to support the current and previous risk rating or accrual determination for all credit relationships;

 

(f)                                   the lending officers and senior management are assigned responsibility and held accountable for ensuring that the Bank’s loans and other assets are appropriately and timely risk rated, charged off, and placed on nonaccrual;

 

(g)                                  management information systems that periodically provide feedback about the effectiveness of the program by senior management and the individual lending officers.

 

(2)                                 Upon adoption, a copy of the written program adopted pursuant to this Article shall be promptly forwarded to the Assistant Deputy Comptroller for review and determination of no supervisory objection.

 

ARTICLE V

 

ALLOWANCE FOR LOAN AND LEASE LOSSES

 

(1)                                 Within ninety (90) days, the Board shall adopt, implement, and thereafter ensure adherence to written policies and procedures for maintaining an adequate Allowance for Loan and Lease Losses (“ALLL”) in accordance with U.S. generally accepted accounting principles (“GAAP”).  The ALLL policies and procedures shall be consistent with the guidance set forth in the Federal Financial Institutions Examination Council’s “Interagency Policy Statement on the

 

 

Allowance for Loan and Lease Losses” dated December 13, 2006, (OCC Bulletin 2006-47) (“Interagency Statement”) and shall at a minimum include:

 

(a)                                 procedures for determining whether a loan is impaired and measuring the amount of impairment, consistent with GAAP (including FASB ASC 310-10, Receivables - Overall - Subsequent Measurement – Impairment);

 

(b)                                 procedures for segmenting the loan portfolio and estimating loss on groups of loans that are consistent with GAAP (including FASB ASC 450-20, Loss Contingencies). These procedures shall require the Bank to document its estimation of credit losses and its analysis of the nine qualitative factors set forth in the Interagency Statement;

 

(c)                                  procedures for validating the ALLL methodology; and

 

(d)                                 a process for summarizing and documenting, for the Board’s prior review and approval, the amount to be reported in the Consolidated Reports of Condition and Income (“Call Reports”) for the ALLL.

 

(2)           The Board shall adopt, implement, and thereafter ensure adherence to written policies and procedures to ensure that all official and regulatory reports filed by the Bank accurately reflect an adequate ALLL balance as of the date that such reports are submitted.  Any difference between the ALLL balance as determined by the analysis required by this Article and the Bank’s actual ALLL balance shall be remedied through appropriate account adjustments in the quarter it is discovered, prior to the filing of the Call Reports.

 

 

ARTICLE VI

 

TROUBLED DEBT RESTRUCTURINGS

 

(1)           Within sixty (60) days, the Board shall adopt, implement, and ensure adherence to a written Troubled Debt Restructure Policy.  In drafting this policy, the Board shall refer to and comply with OTS Thrift Bulletin 85 (Regulatory and Accounting Issues Related to Modifications and Troubled Debt Restructurings of 1-4 Residential Mortgage Loans), and OTS’ Examination Handbook, Section 240, “Troubled Debt Restructuring.”  The Bank’s policy shall incorporate, but not be limited to, the following:

 

(a)           a definition of troubled debt restructure (“TDR”);

 

(b)                                 management roles and responsibilities with respect to TDRs;

 

(c)                                  requirements regarding collection and analysis of credit and collateral documentation from borrowers in connection with TDRs; and

 

(d)                                 a methodology for determining impairment (consistent with Article V of this Agreement), accrual designation, and risk rating (consistent with Article IV) for TDRs.

 

(2)           Upon adoption, a copy of the policy drafted pursuant to this Article shall be promptly forwarded to the Assistant Deputy Comptroller for review and determination of no supervisory objection.

 

ARTICLE VII

 

LOAN REVIEW

 

(1)           Within ninety (90) days, the Board shall adopt, implement, and thereafter ensure adherence to an independent and on-going loan review system to review the Bank’s loan and lease portfolios to assure the timely identification and categorization of problem credits.  At a

 

 

minimum, the review shall include past due, non-accrual, and insider credits, and all borrowing relationships where the aggregate commercial or commercial real estate debt is in excess of $100,000.  The review shall also include any assets criticized in  the Report of Examination dated “as of” June 30, 2011 (“ROE”), in any subsequent Report of Examination, by internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination.

 

(2)           The system adopted pursuant to paragraph (1) of this Article shall provide for a written report to be filed with the Board within a reasonable period of time following the completion of each review and shall use a loan and lease grading system consistent with the criteria set forth in applicable regulations and regulatory guidance, and Article IV of this Agreement. Such reports shall include, at a minimum, conclusions regarding:

 

(a)                                 the identification, type, rating, and amount of problem loans and leases;

 

(b)                                 the identification and amount of delinquent loans and leases;

 

(c)                                  credit and collateral documentation exceptions;

 

(d)                                 loans and leases not in conformance with the Bank’s lending and leasing policies, and exceptions to the Bank’s lending and leasing policies;

 

(e)                                  the identification and status of credit related violations of law, rule or regulation;

 

(f)                                   loans and leases to executive officers, directors, principal shareholders (and their related interests) of the Bank; and

 

(g)                                  the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (g) of the Article.

 

(3)           Within thirty (30) days of receipt, the Board shall evaluate the loan and lease review report(s) obtained pursuant to paragraph (2) of this Article and shall ensure that

 

 

immediate, adequate, and continuing remedial action, if appropriate, is taken upon all findings noted in the report(s).

 

(4)           After evaluation, a copy of the report and the Board’s response shall be promptly forwarded to the Assistant Deputy Comptroller for review and determination of no supervisory objection.

 

ARTICLE VIII

 

LIQUIDITY MANAGEMENT

 

(1)           Within sixty (60) days the Board and bank management shall adopt, implement, and ensure adherence to a comprehensive formal liquidity management program consistent with the guidelines set forth in the Interagency Policy Statement on Funding and Liquidity Risk Management, OCC Bulletin 2010-13, March 22, 2010.  The Bank’s program shall be written and address, at a minimum, the following requirements:

 

(a)                                 the Board shall revise, implement, and ensure adherence to a comprehensive Contingency Funding Plan that, among other things, addresses ways to improve the Bank’s liquidity position and maintain adequate sources of stable funding given the Bank’ s anticipated liquidity and funding needs under various crisis scenarios;

 

(b)                                 the Bank’s liquidity policy shall be revised to include risk limits, identify specific funding sources, and provide for regular testing of these sources;

 

(c)                                  the Bank’s investment policy shall identify risk limits and concentration limits;

 

(d)                                 the Board shall establish an Asset Liability Committee (ALCO) to be comprised of directors and key management personnel;

 

 

(e)                                  the Bank’s ALCO shall meet on at least a quarterly basis or more regularly as the need arises;

 

(f)                                   minutes from ALCO meetings shall be documented; and

 

(g)                                  a formal sources and uses of funds and projected cash flow report shall be developed and reviewed at each ALCO meeting.

 

(2)           Upon adoption, a copy of the written program adopted pursuant to this Article shall be promptly forwarded to the Assistant Deputy Comptroller for review and determination of no supervisory objection.

 

ARTICLE IX

 

CLOSING

 

(1)           Although the Board has agreed to submit certain programs and reports to the Assistant Deputy Comptroller for review or prior written determination of no supervisory objection, the Board has the ultimate responsibility for proper and sound management of the Bank.

 

(2)           It is expressly and clearly understood that if, at any time, the Comptroller deems it appropriate in fulfilling the responsibilities placed upon him by the several laws of the United States of America to undertake any action affecting the Bank, nothing in this Agreement shall in any way inhibit, estop, bar, or otherwise prevent the Comptroller from so doing.

 

(3)           Any time limitations imposed by this Agreement shall begin to run from the effective date of this Agreement.  Such time requirements may be extended in writing by the Assistant Deputy Comptroller for good cause upon written application by the Board.

 

(4)           The provisions of this Agreement shall be effective upon execution by the parties hereto and its provisions shall continue in full force and effect unless or until such provisions are

 

 

amended in writing by mutual consent of the parties to the Agreement or excepted, waived, or terminated in writing by the Comptroller.

 

(5)           In each instance in this Agreement in which the Board is required to ensure adherence to, and undertake to perform certain obligations of the Bank, it is intended to mean that the Board shall:

 

(a)                                 authorize and adopt such actions on behalf of the Bank as may be necessary for the Bank to perform its obligations and undertakings under the terms of this Agreement, including ensuring that the Bank has necessary processes, personnel, and control systems;

 

(b)                                 require the timely reporting by Bank management of such actions directed by the Board to be taken under the terms of this Agreement;

 

(c)                                  follow-up on any non-compliance with such actions in a timely and appropriate manner; and

 

(d)                                 require corrective action be taken in a timely manner of any non-compliance with such actions.

 

(6)           This Agreement is intended to be, and shall be construed to be, a supervisory “written agreement entered into with the agency” as contemplated by 12 U.S.C. § 1818(b)(l), and expressly does not form, and may not be construed to form, a contract binding on the Comptroller or the United States.  Notwithstanding the absence of mutuality of obligation, or of consideration, or of a contract, the Comptroller may enforce any of the commitments or obligations herein undertaken by the Bank under his supervisory powers, including 12 U.S.C. § 1818(b)(1), and not as a matter of contract law.  The Bank expressly acknowledges that neither the Bank nor the Comptroller has any intention to enter into a contract.  The Bank also expressly acknowledges that no officer or employee of the Office of the Comptroller of the Currency has

 

 

statutory or other authority to bind the United States, the U.S. Treasury Department, the Comptroller, or any other federal bank regulatory agency or entity, or any officer or employee of any of those entities to a contract affecting the Comptroller’s exercise of his supervisory responsibilities. The terms of this Agreement, including this paragraph, are not subject to amendment or modification by any extraneous expression, prior agreements or prior arrangements between the parties, whether oral or written.

 

IN TESTIMONY WHEREOF, the undersigned, authorized by the Comptroller, has hereunto set his hand on behalf of the Comptroller.

 

 

	
/s/   Mark A. Zeihen
    	
 
    	
3/8/2012
    
	
Mark   A. Zeihen
    	
 
    	
Date
    
	
Assistant   Deputy Comptroller
    	
 
    	
 
    
	
Chicago   South Field Office
    	
 
    	
 
    

 

 

IN TESTIMONY WHEREOF, the undersigned, as the duly elected and acting Board of Directors of the Bank, have hereunto set their hands on behalf of the Bank.

 

 

	
/s/   Roger L. Aurelio
    	
 
    	
3/2/12
    
	
Roger   L. Aurelio
    	
 
    	
Date
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Raymond J. Blake
    	
 
    	
3/2/12
    
	
Raymond   J. Blake
    	
 
    	
Date
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Thomas Butkus
    	
 
    	
3/2/12
    
	
Thomas   Butkus
    	
 
    	
Date
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Edward   S. Milen
    	
 
    	
Date
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Richard J. Nogal
    	
 
    	
3/2/12
    
	
Richard   J. Nogal
    	
 
    	
Date

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