Exhibit 10.6
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EXPENSE ALLOCATION AGREEMENT
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This Expense Allocation Agreement (the "Agreement") is made between
Cheviot Financial Corp. (in formation) ("Cheviot Financial"), a Federal
corporation, Cheviot Mutual Holding Company (in formation) ("MHC"), a federal
corporation, and Cheviot Savings Bank (the "Bank"), an Ohio chartered stock
savings and loan association chartered by the Ohio Division of Financial
Institutions under the laws of the State of Ohio and a wholly-owned subsidiary
of Cheviot Financial.
WHEREAS, Cheviot Financial and MHC have not acquired any additional
premises, furniture or equipment or employed any additional employees but rather
will utilize and intend to continue to utilize the premises, furniture,
equipment and employees of the Bank as necessary; and
WHEREAS, because of the limited scope of Cheviot Financial's and MHC's
activities, the general and administrative expenses attributable to Cheviot
Financial's and MHC's use of the premises, furniture, equipment and employees to
conduct such activities is reasonably expected to be minimal; and
WHEREAS, the Bank, Cheviot Financial and MHC have determined that it is
appropriate to allocate the general and administrative expenses that are
incurred by the Bank, Cheviot Financial, MHC or the combined entities and to
provide a mechanism for Cheviot Financial and MHC to reimburse the Bank for
expenses incurred by the Bank that are attributable to the activities of Cheviot
Financial or MHC;
NOW, THEREFORE, the Bank, Cheviot Financial and MHC hereby agree as
follows:
1. Cheviot Financial and MHC shall pay all fees and other
expenses that are attributable solely to the operations of
Cheviot Financial or MHC, respectively. Such expenses shall
include, but not necessarily be limited to: (i) all fees
required to be paid by Cheviot Financial or MHC to the Office
of Thrift Supervision or any other governmental authority; and
(ii) all fees and expenses of any professionals or other
agents in connection with the preparation of any reports or
filings of Cheviot Financial or MHC to any regulatory or
governmental authority;
2. Cheviot Financial and MHC shall pay to the Bank on a quarterly
basis for the use of the Bank's equipment and employees by
Cheviot Financial or MHC as such amount is determined by the
Boards of Directors of the Bank, Cheviot Financial and MHC. In
no event shall the payments made by Cheviot Financial or MHC
to the Bank be less than the fair market value of the goods
and services received.
3. It is the intent of the parties that all dealings between
Cheviot Financial, MHC and the Bank comply with Section 11(a)
of the Home Owners' Loan Act, Sections
23A and 23B of the Federal Reserve Act, and other applicable
laws and regulations.
4. This Agreement constitutes the entire agreement of the parties
with respect to the subject matter hereof and can be amended
or otherwise modified only by means of a writing signed by
both of the parties.
5. This Agreement shall remain in effect: until written notice of
termination is delivered by either party to the other.
IN WITNESS WHEREOF, the Bank, Cheviot Financial and MHC have executed
this Agreement by their duly authorized officers as of this _____ day of , 2003.
CHEVIOT FINANCIAL CORP.
(in formation)
By:
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Xxxxxx X. Xxxxxxxx
President and Chief
Executive Officer
CHEVIOT MUTUAL HOLDING COMPANY
(in formation)
By:
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Xxxxxx X. Xxxxxxxx
President and Chief
Executive Officer
CHEVIOT SAVINGS BANK
By:
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Xxxxxx X. Xxxxxxxx
President and Chief
Executive Officer
