Document:

exv10w5

Exhibit 10.5

Execution Version

REGISTRATION RIGHTS AMENDMENT AND JOINDER

by and among

HARBINGER GROUP INC.

and the HOLDERS party hereto

 

Dated: August 5, 2011

 

 

 

REGISTRATION RIGHTS AMENDMENT AND JOINDER

     WHEREAS, CF Turul LLC, a Delaware limited liability company, PECM Strategic Funding L.P., a
Cayman Islands limited partnership, Providence TMT Debt Opportunity Fund II, L.P., a Cayman Islands
limited partnership, and Wilton Re Holdings Limited, a Bermuda limited company (together, the
“Current Parties”), entered into the Registration Rights Agreement, dated as of May 12,
2011 (the “Registration Rights Agreement”), in connection with the purchase by the Current
Parties of Series A Participating Convertible Preferred Stock of the Company (the “Series A
Shares”).

     WHEREAS, Quantum Partners LP, a Cayman Islands exempted limited partnership, DDJ High Yield
Fund, an entity organized under the laws of the Province of Ontario, Canada, General Motors
Hourly-Rate Employes Pension Trust — 7N1H, a trust maintained by General Motors Corporation, a
Delaware corporation, General Motors Salaried Employes Pension Trust — 7N1I, a trust maintained by
General Motors Corporation, Stichting Pensioenfonds Hoogovens, a Dutch pension plan regulated by
the Dutch Central Bank, Caterpillar Inc. Master Retirement Trust, a trust maintained by
Caterpillar, Inc., a Delaware corporation, J.C. Penney Corporation, Inc. Pension Plan Trust, a
trust maintained by J.C. Penney Corporation, Inc., a Delaware corporation, Stichting Bewaarder
Interpolis Pensioenen Global High Yield Pool, a Dutch tax transparent pool of assets, Stichting
Pensioenfonds voor Fysiotherapeuten, a Dutch pension plan regulated by the Dutch Central Bank,
Houston Municipal Employees Pension System, a pension plan organized pursuant to Texas government
code, UAW Retiree Medical Benefits Trust, a trust consisting of three separate employees’
beneficiary associations, DDJ Distressed and Special Situations Fund, L.P., a Delaware limited
partnership, Russell Investment Company — Russell Global Opportunistic Credit Fund, a Massachusetts
business trust, DDJ Capital Management Group Trust — High Yield Investment Fund, a trust maintained
by The Bank of New York Mellon, a New York State chartered bank, as trustee, JHL Capital Group
Master Fund L.P., a Cayman Islands exempted limited partnership, Luxor Capital Partners, LP, a
Delaware limited partnership, Luxor Wavefront, LP, a Delaware limited partnership, Luxor Capital
Partners Offshore Fund, LP, a Cayman Islands limited partnership, OC 19 Master Fund, L.P. — LCG ,
a Cayman Islands limited partnership and GAM Equity Six Inc., a British Virgin Islands company
(collectively, the “New Parties”) desire to purchase Series A-2 Participating Convertible
Preferred Stock of the Company (the “Series A-2 Shares”) pursuant to a Securities Purchase
Agreement, dated as of August 1, 2011 (the “Additional Purchase Agreement”).

     WHEREAS, the Current Parties desire to treat the New Parties as Additional Purchasers under
the Registration Rights Agreement and the New Parties desire to become Additional Purchasers and
Holders, as such terms are used in the Registration Rights Agreement.

 

 

          NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto agree as follows:

          1. The Current Parties, the New Parties and Harbinger Group Inc., a Delaware corporation (the
“Company”), hereby agree that the definitions of the following terms in the Registration
Rights Agreement are hereby amended and restated in their entirety as follows:

          “Additional Purchasers” means, collectively, the New Parties.

          “Certificate of Designation” means the Certificate of Designation of Series A
Participating Convertible Preferred Stock, dated as of May 12, 2011, the Certificate of Designation
of Series A-2 Participating Convertible Preferred Stock, dated as of August 5, 2011.

          “Holder” (collectively, the “Holders”) means each Person who is a purchaser of
Series A Shares pursuant to the Purchase Agreement or the Additional Purchase Agreement for so long
as it holds any Registrable Securities and each of its successors and assigns and direct and
indirect transferees who Beneficially Own Registrable Securities.

          “Series A Shares” means the Company’s Series A Participating Convertible Preferred
Stock and the Company’s Series A-2 Participating Convertible Preferred Stock.

          2. Each New Party hereby accedes to and ratifies the Registration Rights Agreement and
covenants and agrees with the Current Parties and the Company to be bound by the terms of the
Registration Rights Agreement as a “Holder” and to duly and punctually perform and discharge all
liabilities and obligations whatsoever from time to time to be performed or discharged by it under
or by virtue of the Registration Rights Agreement in all respects as if named as a party therein.

          3. The Company and each Existing Party covenants and agrees that each New Party shall be
entitled to all the benefits of the terms and conditions of the Registration Rights Agreement to
the intent and effect that the New Party shall be deemed, with effect from the date on which the
New Party executes this instrument, to be a party to the Registration Rights Agreement as a
“Holder.”

[Remainder of Page Intentionally Left Blank]

2

 

          IN WITNESS WHEREOF, the undersigned have executed, or have caused to be executed, this
Registration Rights Amendment and Joinder on the date first written above.

	 	 	 	 	 	 	 	 	 

	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HARBINGER GROUP INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Francis T. McCarron	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Francis T. McCarron	 	 
	 

	 	 	 	Title:
	 	Executive Vice President & Chief	 	 
	 

	 	 	 	 	 	Financial Officer	 	 

[Signature Page to Registration Rights Amendment and Joinder]

 

 

	 	 	 	 	 	 	 	 	 

	 	 	CF TURUL LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Glenn P. Cummins	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Glenn P. Cummins	 	 
	 

	 	 	 	Title:
	 	Authorized Signatory	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PROVIDENCE TMT DEBT OPPORTUNITY FUND II, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ John Wells	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	John Wells	 	 
	 

	 	 	 	Title:
	 	Authorized Signatory	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PECM STRATEGIC FUNDING L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ John Wells	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	John Wells	 	 
	 

	 	 	 	Title:
	 	Authorized Signatory	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WILTON RE HOLDINGS LIMITED	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Perry H. Braun	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Perry H. Braun	 	 
	 

	 	 	 	Title:
	 	Senior Vice President	 	 

[Signature Page to Registration Rights Amendment and Joinder]

 

 

	 	 	 	 	 	 	 	 	 

	 	 	QUANTUM PARTNERS LP

By: QP GP LLC, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Jay A. Schoenfarber	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Jay A. Schoenfarber	 	 
	 

	 	 	 	Title:
	 	Attorney-in-Fact	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	JHL CAPITAL GROUP MASTER FUND L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ James H. Litinsky	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	James H. Litinsky	 	 
	 

	 	 	 	Title:
	 	Managing Member	 	 
	 

	 	 	 	 	 	JHL Capital Group LLC	 	 

[Signature Page to Registration Rights Amendment and Joinder]

 

 

	 	 	 	 	 
	 	Caterpillar Inc. Master Retirement Trust

By: DDJ Capital Management, LLC, on behalf of Caterpillar
Inc. Master Retirement Trust, in its capacity as investment
manager

 	 
	 	By:  	/s/ David J. Breazzano
 	 
	 	 	Name:  	David J. Breazzano 	 
	 	 	Title:  	President 	 
	 
	 	DDJ Capital Management Group Trust — High Yield

Investment Fund

By: DDJ Capital Management, LLC, in its capacity as

Investment Manager

 	 
	 	By:  	/s/ David J. Breazzano
 	 
	 	 	Name:  	David J. Breazzano 	 
	 	 	Title:  	President 	 
	 
	 	DDJ High Yield Fund

By: DDJ Capital Management, LLC, its attorney-in-fact

 	 
	 	By:  	/s/ David J. Breazzano
 	 
	 	 	Name:  	David J. Breazzano 	 
	 	 	Title:  	President 	 

[Signature Page to Registration Rights  Amendment and Joinder]

 

 

	 	 	 	 	 
	 	General Motors Hourly-Rate Employees Pension Trust —
7N1H

By: State Street Bank and Trust Company, solely in its

capacity as Trustee for General Motors Hourly-Rate

Employees Pension Trust (Account 7N1H), and not in its

individual capacity, as directed by DDJ Capital Management,
LLC, as Investment Manager
 	 
	 
	 	By:  	/s/ Kimberly A. Dinsmore
 	 
	 	 	Name:  	Kimberly A. Dinsmore 	 
	 	 	Title:  	Client Services Officer State Street Bank and
Trust Company 	 
	 
	 	General Motors Salaried Employees Pension Trust — 7N1I

By: State Street Bank and Trust Company, solely in its

capacity as Trustee for General Motors Salaried Employees

Pension Trust (Account 7N1I), and not in its individual

capacity, as directed by DDJ Capital Management, LLC, as

Investment Manager

 	 
	 	By:  	/s/ Kimberly A. Dinsmore
 	 
	 	 	Name:  	Kimberly A. Dinsmore 	 
	 	 	Title:  	Client Services Officer State Street Bank and
Trust Company 	 
	 
	 	Houston Municipal Employees Pension System

By: DDJ Capital Management, LLC, in its capacity as Manager

 	 
	 	By:  	/s/ David J. Breazzano
 	 
	 	 	Name:  	David J. Breazzano 	 
	 	 	Title:  	President 	 

[Signature Page to Registration Rights  Amendment and Joinder]

 

 

	 	 	 	 	 
	 	J.C. Penney Corporation, Inc. Pension Plan Trust

By: DDJ Capital Management, LLC, on behalf of 
J.C. Penney
Corporation, Inc. Pension Plan Trust, in its 
capacity as
investment manager

 	 
	 	By:  	/s/ David J. Breazzano
 	 
	 	 	Name:  	David J. Breazzano 	 
	 	 	Title:  	President 	 
	 
	 	Russell Investment Company — Russell Global

Opportunistic Credit Fund

By: DDJ Capital Management, LLC, in its capacity as 
Money
Manager

 	 
	 	By:  	/s/ David J. Breazzano
 	 
	 	 	Name:  	David J. Breazzano 	 
	 	 	Title:  	President 	 
	 
	 	Stichting Bewaarder Interpolis Pensioenen Global High Yield
Pool

By: Syntrus Achmea Asset Management, as asset manager

By: DDJ Capital Management, LLC, as subadviser

 	 
	 	By:  	/s/ David J. Breazzano
 	 
	 	 	Name:  	David J. Breazzano 	 
	 	 	Title:  	President 	 
	 
	 	Stichting Pensioenfonds Hoogovens

By: DDJ Capital Management, LLC, on behalf of Stichting

Pensioenfonds Hoogovens, in its capacity as Manager

 	 
	 	By:  	/s/ David J. Breazzano
 	 
	 	 	Name:  	David J. Breazzano 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 

[Signature Page to Registration Rights  Amendment and Joinder]

 

 

	 	 	 	 	 
	 	Stichting Pensioenfonds voor Fysiotherapeuten

By: DDJ Capital Management, LLC, in its capacity as

investment manager

 	 
	 	By:  	/s/ David J. Breazzano
 	 
	 	 	Name:  	David J. Breazzano 	 
	 	 	Title:  	President 	 
	 
	 	UAW Retiree Medical Benefits Trust

By: State Street Bank and Trust company, solely in its

capacity as Trustee for UAW Retiree Medical Benefits 
Trust,
as directed by DDJ Capital Management, LLC, and
 not in its
individual capacity

 	 
	 	By:  	/s/ David J. Breazzano
 	 
	 	 	Name:  	David J. Breazzano 	 
	 	 	Title:  	President 	 
	 
	 	DDJ Distressed and Special Situations Fund, L.P.

By: DDJ/GP Distressed and Special Situations, LLC,

its General Partner

By: DDJ Capital Management, LLC, Manager

 	 
	 	By:  	/s/ David J. Breazzano
 	 
	 	 	Name:  	David J. Breazzano 	 
	 	 	Title:  	President 	 

[Signature Page to Registration Rights  Amendment and Joinder]

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	Luxor Capital Partners, LP

 	 
	 	By:  	/s/ Norris Nissim
 	 
	 	 	Name:  	Norris Nissim 	 
	 	 	Title:  	General Counsel 	 
	 
	 	Luxor Capital Partners Offshore Master Fund, LP

 	 
	 	By:  	/s/ Norris Nissim
 	 
	 	 	Name:  	Norris Nissim 	 
	 	 	Title:  	General Counsel 	 
	 
	 	Luxor Wavefront, LP

 	 
	 	By:  	/s/ Norris Nissim
 	 
	 	 	Name:  	Norris Nissim 	 
	 	 	Title:  	General Counsel 	 
	 
	 	GAM Equity Six Inc.

 	 
	 	By:  	/s/ Norris Nissim
 	 
	 	 	Name:  	Norris Nissim 	 
	 	 	Title:  	General Counsel 	 
	 
	 	OC 19 Master Fund, L.P. — LCG

 	 
	 	By:  	/s/ Norris Nissim
 	 
	 	 	Name:  	Norris Nissim 	 
	 	 	Title:  	General Counsel 	 
	 

[Signature Page to Registration Rights  Amendment and Joinder]exv10w1

Exhibit 10.1

 

 

OFFICE PURCHASE AND ASSUMPTION AGREEMENT

by and between

Premier Bank & Trust, National Association

and

The Commercial and Savings Bank of Millersburg, Ohio

Entered into as of the 23rd day of June, 2011

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	1. PURCHASE AND ASSUMPTION
	 	 	1	 
	1.1 Purchase and Sale of Assets
	 	 	1	 
	1.2 Transfer of Assets
	 	 	1	 
	1.3 Acceptance and Assumption
	 	 	4	 
	1.4 Payment of Funds
	 	 	6	 
	2. CONDUCT OF THE PARTIES PRIOR TO CLOSING
	 	 	11	 
	2.1 Covenants of SELLER
	 	 	11	 
	2.2 Covenants of BUYER
	 	 	16	 
	2.3 Covenants of All Parties
	 	 	18	 
	3. REPRESENTATIONS AND WARRANTIES
	 	 	18	 
	3.1 Representations and Warranties of SELLER
	 	 	18	 
	3.2 Representations and Warranties of BUYER
	 	 	23	 
	4. ACTIONS RESPECTING EMPLOYEES AND PENSIONS AND EMPLOYEE BENEFIT PLANS
	 	 	24	 
	4.1 Employment of Employees
	 	 	24	 
	4.2 Terms and Conditions of Employment
	 	 	24	 
	4.3 Compliance with Law
	 	 	26	 
	4.4 Actions to be Taken by SELLER
	 	 	26	 
	5. CONDITIONS PRECEDENT TO CLOSING
	 	 	27	 
	5.1 Conditions to SELLER’s Obligations
	 	 	27	 
	5.2 Conditions to BUYER’s Obligations
	 	 	29	 
	5.3 Waivers of Conditions Precedent
	 	 	32	 
	6. CLOSING
	 	 	32	 
	6.1 Closing and Closing Date
	 	 	32	 
	6.2 SELLER’s Actions at Closing
	 	 	32	 
	6.3 BUYER’s Actions at the Closing
	 	 	35	 
	6.4 Methods of Payment
	 	 	36	 
	6.5 Availability of Closing Documents
	 	 	37	 
	6.6 Effectiveness of Closing
	 	 	37	 
	7. CERTAIN TRANSITIONAL MATTERS
	 	 	37	 
	7.1 Transitional Action by BUYER
	 	 	37	 
	7.2 Transitional Actions by SELLER
	 	 	41	 
	7.3 Overdrafts and Transitional Action
	 	 	46	 
	7.4 ATMs and Debit Cards
	 	 	46	 
	7.5 Environmental Matters
	 	 	48	 
	7.6 Effect of Transitional Action
	 	 	50	 
	8. GENERAL COVENANTS AND INDEMNIFICATION
	 	 	50	 
	8.1 Confidentiality Obligations of BUYER
	 	 	50	 
	8.2 Confidentiality Obligations of SELLER
	 	 	51	 
	8.3 Indemnification by SELLER
	 	 	52	 
	8.4 Indemnification by BUYER
	 	 	53	 
	8.5 Solicitation of Customers by BUYER Prior to Closing
	 	 	54	 
	8.6 Solicitation of Customers by SELLER After the Closing
	 	 	54	 

i 

 

	 	 	 	 	 
	 	 	Page	 
	8.7 Further Assurances
	 	 	55	 
	8.8 Operation of the Offices
	 	 	55	 
	8.9 Information After Closing
	 	 	56	 
	8.10 Individual Retirement Accounts
	 	 	57	 
	8.11 Covenant Not to Compete
	 	 	57	 
	8.12 Non-solicitation of Employees
	 	 	57	 
	9. TERMINATION
	 	 	58	 
	9.1 Termination by Mutual Agreement
	 	 	58	 
	9.2 Termination by SELLER
	 	 	59	 
	9.3 Termination by BUYER
	 	 	60	 
	9.4 Effect of Termination
	 	 	61	 
	10. MISCELLANEOUS PROVISIONS
	 	 	61	 
	10.1 Expenses
	 	 	61	 
	10.2 Certificates
	 	 	61	 
	10.3 Termination of Representations and Warranties
	 	 	62	 
	10.4 Waivers
	 	 	62	 
	10.5 Notices
	 	 	63	 
	10.6 Parties in Interest; Assignment; Amendment
	 	 	64	 
	10.7 Headings
	 	 	64	 
	10.8 Terminology
	 	 	64	 
	10.9 Press Releases
	 	 	66	 
	10.10 Entire Agreement
	 	 	66	 
	10.11 Flexible Structure
	 	 	66	 
	10.12 Governing Law
	 	 	67	 
	10.13 Counterparts
	 	 	67	 
	10.14 Tax Matters
	 	 	67	 

ii 

 

SCHEDULES:

	 	 	 

	Schedule A —
	 	Description of Owned Real Estate

	 	 	 

	Schedule B —
	 	Description of Leased Real Estate and Office Lease

	 	 	 

	Schedule C —
	 	Furniture, Fixtures and Equipment

	 	 	 

	Schedule D —
	 	Assumed Contracts

	 	 	 

	Schedule E —
	 	List of Leases, Safekeeping Items and Agreements

iii 

 

OFFICE PURCHASE AND ASSUMPTION AGREEMENT

     This Office Purchase and Assumption Agreement (this “Agreement”), is made and entered into as
of this 23rd day of June, 2011, by and between The Commercial and Savings Bank of
Millersburg, Ohio, an Ohio banking corporation with its principal office at 91 North Clay Street,
Millersburg, Ohio (“BUYER”) and Premier Bank & Trust, National Association, a national banking
association with its principal office located at 2375 Benden Drive, Suite C, Wooster, Ohio
(“SELLER”).

     WHEREAS, BUYER desires to purchase and assume from SELLER, and SELLER desires to sell and
assign to BUYER, certain assets and liabilities associated with offices of SELLER as hereinafter
described;

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, BUYER and SELLER hereby
agree as follows:

PURCHASE AND ASSUMPTION.

	 	1.1	 	Purchase and Sale of Assets. At the Closing (as defined in Section 6.1
hereof), BUYER shall purchase, acquire and assume, and SELLER shall sell and assign,
the real estate and other assets described in Section 1.2 hereof (collectively, the
“Assets”), and all leases for such real estate on which Offices (as defined below) are
located, all of which are used in and/or relate to business conducted by SELLER at its
branch offices known as and located at the sites described in Schedules A and
B attached hereto and incorporated herein by reference, pursuant to the terms
and conditions, and subject to the exceptions, set forth herein. The foregoing offices
are collectively referred to as the “Offices” and each, individually, as an “Office.”
The transactions contemplated by this Agreement and the purchase of assets and
assumption of liabilities provided for herein is referred to herein as the
“Acquisition.”

	 	1.2	 	Transfer of Assets. Subject to the terms and conditions of this Agreement, SELLER shall assign,
transfer, convey and deliver to BUYER, on and as of the Closing Date (as defined in
Section 6.1 hereof) free and clear of any liens,

 

 

	 	 	 	encumbrances or impairments
whatsoever except those expressly agreed by BUYER, the Assets, which shall include
the following:

	 	(a)	 	Owned Real Estate. All of SELLER’s right, title and
interest in and to the real estate described in attached Schedule A on
which an Office is situated, together with all of SELLER’s rights in and to all
improvements thereon and all easements rights, privileges and appurtenances
associated therewith (the “Owned Real Estate”). Schedule A identifies
the Owned Real Estate by street address, legal description and/or tax parcel
number;

	 	(b)	 	Leased Real Estate. A good and valid leasehold estate,
with terms reasonably acceptable to BUYER (it being understood that assignment
of the Office Lease, as defined below, in its current form or without any
material changes shall be acceptable to BUYER), in the real estate described in
attached Schedule B created by a certain lease agreement (the “Office
Lease”) relating to the referenced Office (the “Leased Real Estate”),
specifically identified on Schedule B by street address, legal
description and tax parcel number. Schedule B also identifies the
Office Lease;

	 	(c)	 	Furniture and Equipment. All of SELLER’s right, title
and interest to the furniture, fixtures and equipment located at the Offices as
of the Closing Date (the “Fixed Assets”), free and clear of any liens or
impairments whatsoever. A preliminary listing of the Fixed Assets is contained
in Schedule C attached hereto, provided, however, that such Fixed
Assets shall specifically exclude, among other items (unless otherwise agreed
by the parties prior to Closing), teller software, branch capture software,
branch capture CPUs, controllers, servers, sign “skins” with SELLER’s name,
printed supplies and documents and other materials bearing any SELLER or
affiliate name and/or logo, network communications
equipment and related devices, leased or licensed software, and marketing
fixtures. A final listing of specific items included in the Fixed Assets
will be provided by SELLER, subject to final approval by BUYER, prior to the
Closing;

2

 

	 	(d)	 	Safe Deposit Business. All of SELLER’s right, title
and interest to the safe deposit business (subject to the allocation of safe
deposit rental payments as provided in Section 1.3(c)(ii) hereof) conducted at
the Offices as of the close of business on the Closing Date;

	 	(e)	 	Cash on Hand. All cash on hand at the Offices as of
the close of business on the Closing Date including vault cash, petty cash, ATM
cash and tellers’ cash;

	 	(f)	 	Prepaid Expenses. All prepaid expenses recorded or
otherwise reflected on the books of SELLER and attributable to the Offices as
of the close of business on the day immediately preceding the Closing Date (a
preliminary listing of which has been provided by SELLER to BUYER as of the
date hereof). A final listing of prepaid expenses will be provided by SELLER
to BUYER, subject to BUYER’s approval, at Closing. Any and all prepaid
expenses incurred by SELLER with respect to the Offices subsequent to the date
hereof shall be subject to the prior written consent of BUYER;

	 	(g)	 	Office Loans. All right, title and interest in and to
all those loans and/or letters of credit set forth in a confidential listing
provided by SELLER to BUYER concurrently with the signing of this Agreement,
together with such other loans and/or letters of credit that BUYER and SELLER
may mutually agree upon prior to the Closing, less any loans that may be
removed from the Office Loans by the mutual agreement of BUYER and SELLER, free
and clear of any and all liens or encumbrances whatsoever (other than interests
of third parties that are subordinate to those of SELLER), and any loans not
over thirty (30) days outstanding that are automatically created as the result
of an overdraft of a Deposit Account
pursuant to an overdraft protection program offered by SELLER (“Overdraft
Loans”), except for those Overdraft Loans which are charged to credit card
accounts not transferred to the BUYER hereunder. Such loans shall be
referred to herein individually and collectively as the

3

 

	 	 	 	“Office Loans.”
BUYER shall have the option, at its sole discretion, to include in the
Office Loans any loans originated by the Offices in the markets served by
such Offices between the date of this Agreement and the Closing. The final
confidential listing of Office Loans will be provided by SELLER to BUYER as
of the Closing;

	 	(h)	 	Records of the Offices. All records and documents
related to the Assets transferred or liabilities assumed by BUYER as may exist
and are available, whether or not physically maintained at the Offices (in
whatever form or medium then maintained by SELLER) including, but not limited
to, those relating to (i) the Deposit Accounts and (ii) the promissory notes,
files and documents and instruments relating to the Office Loans; and

	 	(i)	 	Contracts or Agreements. All of SELLER’s right, title
and interest in and to the maintenance and service agreements related to the
Offices, provided the same are assignable without consent and without cost to
BUYER or SELLER, and any other contracts or agreements listed on Schedule
D annexed hereto and made a part hereof (the “Assumed Contracts”).

	 	 	 	Any other assets of SELLER not included in the foregoing (a) through (i) shall
remain the property of SELLER and shall not be sold or transferred to BUYER pursuant
to this Agreement.

	 	1.3	 	Acceptance and Assumption. Subject to the terms and conditions of this
Agreement, on and as of the Closing on the Closing Date, BUYER shall:

	 	(a)	 	Assets. Receive and accept all of the Assets assigned,
transferred, conveyed and delivered to BUYER by SELLER pursuant to this
Agreement, including those identified in Section 1.2 above;

	 	(b)	 	Deposit Liabilities. Assume and thereafter discharge,
pay in full and perform all of SELLER’s obligations and duties relating to the
Deposit Liabilities attributable to the Offices. The term “Deposit
Liabilities” means all of SELLER’s obligations, duties and liabilities of every
type and character relating to all deposit accounts attributable to the Offices
as of

4

 

	 	 	 	the Closing (a preliminary confidential listing of which has been
provided by SELLER to BUYER as of the date of this Agreement) other than (i)
KEOGH accounts, (ii) deposit accounts securing any loan of SELLER which is not
an Office Loan, for which BUYER assumes no liability, (iii) deposits of SELLER
employees who are not Transferred Employees (as defined below), and (iv)
deposits of current directors of SELLER and its affiliates. The deposit
accounts referred to in the immediately preceding sentence (the “Deposit
Accounts”) include, without limitation, passbook, statement savings, checking,
Money Market and NOW accounts, certificates of deposit and Individual
Retirement Accounts (“IRAs”) for which SELLER has not received, on or before
the Closing Date, the written advice from the account holder of such account
holder’s objection or failure to accept BUYER as successor. The “obligations,
duties and liabilities” referred to in the definition of Deposit Liabilities
include, without limitation, the obligation to pay and otherwise process all
Deposit Accounts in accordance with applicable law and their respective
contractual terms (including the accrual and payment of interest following the
Closing), and the duty to supply all applicable reporting forms for periods
following the Closing Date including, without limitation, IRS Form 1099 reports
relating to the Deposit Accounts to be filed and provided after the Closing
Date relating to interest accrued after the Closing Date;

	 	(c)	 	Liabilities Under Leases/Safe Deposit Business. Assume
and thereafter fully and timely perform and discharge, in accordance with their
respective terms, all of the liabilities and obligations of SELLER arising
after the Closing Date with respect to:

	 	(i)	 	the Office Lease, the Assumed Contracts, and
any safe deposit leases which are sold, assigned or transferred to
BUYER by SELLER pursuant to this Agreement;

5

 

	 	(ii)	 	the safe deposit business of the Offices,
including, but not limited to, the maintenance of all necessary
facilities for the use of safe deposit boxes by the renters thereof
during the periods for which such persons have paid rent therefor in
advance to SELLER, subject to the provisions of the applicable leases
or other agreements relating to such boxes. At the Closing, SELLER
shall pay to BUYER, in the manner specified in Section 6.4 hereof, the
amount of rental payment previously received by SELLER for each such
safe deposit box attributable to and prorated to reflect the period
from and after the Closing Date; and
	 
	 	(iii)	 	all safekeeping items and agreements listed on
Schedule E to this Agreement and delivered to BUYER by SELLER
pursuant to this Agreement, including, but not limited to, all
applicable safekeeping agreements, memoranda, or receipts so delivered
to BUYER by SELLER hereunder; and

	 	(d)	 	Other Liabilities. Fully and timely perform and
discharge, as the same may be or become due, any Assumed Contracts, the Office
Lease, and all additional liabilities and obligations of SELLER as of the date
of this Agreement, which are reflected on the books of SELLER as being
attributable to an Office as of the close of business on the Closing Date and
which are set forth in a listing provided by SELLER at Closing and approved by
BUYER. No additional liabilities and obligations of SELLER shall be incurred
subsequent to the date of this Agreement without the prior written consent of
BUYER.

	 	1.4	 	Payment of Funds. Subject to the terms and conditions hereof, at the Closing:

	 	(a)	 	Consideration. SELLER shall pay and transfer to BUYER,
in the manner specified in Section 6.4 hereof, funds equal to the aggregate
balance of all Deposit Accounts (including interest posted or accrued to such
accounts as of the close of business on the Closing Date) as of the close of
business on the Closing Date, plus $166,000, less an amount
equal to the sum of:

6

 

	 	(i)	 	the amount of cash on hand at the Offices
transferred to BUYER as of the close of business on the Closing Date
pursuant to Section 1.2(e); and
	 
	 	(ii)	 	the book value of the Owned Real Estate as
reflected on SELLER’s books as of the last day of the month ending
immediately prior to the month in which the Closing Date occurs; and
	 
	 	(iii)	 	the net aggregate book value as reflected on
SELLER’s books of the Fixed Assets, as of the last day of the month
ending immediately prior to the month in which the Closing Date occurs;
and
	 
	 	(iv)	 	a premium (the “Premium”) of five percent (5%)
of the aggregate “Eligible Deposits” (as hereinafter defined) of the
Offices as of the close of business on the Closing Date between $70
million and $77 million; provided, however, that if the aggregate
Eligible Deposits are less than $70 million, the Premium shall be $3.5
million, and if the aggregate Eligible Deposits exceed $77 million, the
Premium shall be $3.85 million. If Eligible Deposits exceed the sum of
$77 million as of the Closing, BUYER and SELLER may, by mutual consent,
except certain Deposits from the Acquisition. The term “Eligible
Deposits” shall mean the average aggregate principal balance of all
Deposit Liabilities of the Offices for a period commencing ten (10)
days prior to the Closing Date and ending at the close of business on
the Closing Date, and
	 
	 	(v)	 	the amount of prepaid expenses described in
Section 1.2(f) of this Agreement, prorated as of the close of business
on the day immediately preceding the Closing Date; and
	 
	 	(vi)	 	the outstanding principal balance of the Office
Loans (including Office Loans added between the date of this Agreement
and the Closing Date upon the consent of BUYER and any loans
substituted or added pursuant to this section, less any loans

7

 

	 	 	 	removed upon the mutual agreement of BUYER and SELLER), together with
accrued and unpaid interest thereon and any and all late fees
relating thereto computed as of the close of business on the Closing
Date, less any loan loss reserves for such Office Loans set forth on
the confidential listing provided pursuant to Section 1.2(g), which
shall be updated as of the Closing Date. The aggregate principal
balance of the Office Loans, prior to any reductions for agreed upon
loan loss reserves, shall total $8.5 million. In the event the
aggregate principal balance of the Office Loans as required in the
preceding sentence does not total $8.5 million, SELLER shall have the
right to add or substitute other loans to increase the principal
amount to the required level, which loans shall be subject to the
reasonable approval of BUYER.

	 	 	 	The sum of the foregoing items (i) through (vi) above is the “Acquisition
Consideration.” In the event that the Acquisition Consideration exceeds the
aggregate amount to be transferred by SELLER pursuant to the first paragraph
of this Section 1.4(a), the full amount of such excess shall constitute an
amount due from BUYER to SELLER, and shall be paid to SELLER at the Closing
in the manner specified in Section 6.4 hereof. The parties shall execute a
Preliminary Settlement Statement at the Closing and a Final Settlement
Statement post-Closing in accordance with section 6.4 hereof, in a form
mutually agreed upon by the parties.

	 	(b)	 	Reimbursement and Proration of Certain Expenses. All
other expenses (i) due and payable at times after the Closing Date for periods
prior to the close of business on the Closing Date or (ii) paid prior to the
close of business on the Closing Date for periods following the Closing Date,
including the prepaid expenses described in Section 1.2(f) hereof and deferred
expenses described in Section 1.3(d) hereof, including, without limitation,
real estate taxes and assessments which are a lien but not yet due and payable,
utility payments, payments due on leases assigned, payments due on assigned
service and maintenance contracts and similar

8

 

	 	 	 	expenses relating to the Offices, shall be prorated between SELLER and BUYER
as of the close of business on the day immediately preceding the Closing
Date; provided, however, that all real estate taxes and assessments, to the
extent payable by SELLER and/or BUYER, shall be prorated at the Closing on
the basis of the most recently certified real estate taxes and assessments,
and all utility payments and lease payments shall be prorated on the basis
of the best information available at Closing. Any security deposits
relating to the Leased Real Estate shall be credited to the SELLER at
Closing. With respect to premiums paid to the Federal Deposit Insurance
Corporation (“FDIC”) for deposit insurance for the Deposit Liabilities, the
proration of FDIC insurance premiums will be based on the amount of the
Deposit Liabilities as of the close of business on the Closing Date and the
number of days during any period for which SELLER has prepaid premiums to
the FDIC but during which BUYER has held or will hold the Deposit
Liabilities. Any credits to the SELLER at Closing will be debited from the
amount to be paid in the first paragraph of Section 1.4(a), and any credits
to BUYER shall be added to such amount. For prorations, if any, which
cannot be reasonably calculated as of the Closing, a post-closing adjustment
shall be made in the manner specified in Section 6.4
hereof.

	 	(c)	 	Expenses Relating to Real Property and other Assets.
The transfer (or conveyance) fees relating to the Owned Real Estate and the
costs, fees and expenses of all title commitments, title guaranties and title
examinations relating to the procurement of the Title Commitments related to
the Owned Real Estate and the Leased Real Estate referred to in Sections 2.1(b)
and 5.2(f) herein, shall be allocated to, and shall be borne, solely and
exclusively by SELLER. The costs, fees and expenses relating to the premiums,
including any endorsements for extended coverage, for all title insurance
policies (net of the costs of all title commitments, guaranties and
examinations), recording costs and other similar costs, fees and expenses, if
any, relating to the sale and transfer of the Owned Real Estate or the

9

 

	 	 	 	transfer of SELLER’s interest in the Leased Real Estate including, but not
limited to, any conveyance fees, taxes, recording costs and other similar
fees and expenses relating to the sale and transfer of any other Assets,
shall be allocated to, and shall likewise be borne, solely and exclusively,
by SELLER. To the extent BUYER requests SELLER or its attorneys to seek
certain title endorsements or removal of exceptions noted on the title
commitments, BUYER shall reimburse SELLER at Closing for its attorney fees
related thereto. In no event shall SELLER be required to undertake any
negotiations with the title insurance companies for any matters that relate
to the scope of title insurance coverage or the Permitted Exceptions. As
provided in Section 6.4, BUYER shall be credited at the Closing for all the
costs, fees and expenses allocated to SELLER pursuant to this Section 1.4(c)
but paid by BUYER, and BUYER shall be credited at the Closing for all of the
costs, fees and expenses allocated to BUYER pursuant to this Section 1.4(c)
but paid by SELLER. If this transaction does not close by virtue of a
breach of this Agreement, the breaching party shall be responsible for and
shall, as appropriate, reimburse the other party for its expenses set forth
in this Section 1.4(c). If this transaction does not close for any other
reason, each party shall reimburse the other party upon termination of this
Agreement for such party’s share of expenses pursuant to this Section 1.4(c)
so that each party shall pay the same share of expenses as it would have
paid at Closing.

	 	(d)	 	Insurance Premium Refunds. With respect to the Insured
Office Loans as defined in Section 7.2(j) herein, SELLER shall provide a credit
to BUYER in a sum equal to the unearned premiums relating to the Insured Office
Loans to compensate BUYER, in advance, for estimated refunds otherwise payable
to SELLER in conjunction with future payoffs of such Insured Office Loans prior
to maturity (the “Premium Settlement Payment” herein). Such Premium Settlement
Payment shall be calculated as of the Closing Date and shall appear as a credit
to BUYER in the Final Settlement Statement referenced in Section 6.4 herein.

10

 

	2.	 	CONDUCT OF THE PARTIES PRIOR TO CLOSING.

	 	2.1	 	Covenants of SELLER. SELLER hereby covenants to BUYER that, from the date
hereof until the Closing:

	 	(a)	 	Operation of the Offices. SELLER shall continue to
operate the Offices in a manner substantially equivalent to that employed
immediately prior to the date of this Agreement.
	 
	 	 	 	Notwithstanding the foregoing, between the date of this Agreement and the
Closing Date, except as may be required to obtain the required
authorizations referred to in Section 2.3 of this Agreement and except as
may be otherwise required by a regulatory authority, SELLER shall not,
without the prior consent of BUYER:

	 	(i)	 	permit any Office to engage or participate in
any transaction or incur or sustain any obligation except in the
ordinary course of business;
	 
	 	(ii)	 	permit any Office to transfer to SELLER’s other
operations any Assets, except for (A) supplies, if any, which have
unique function in the business of SELLER and its affiliates and
ordinarily would not be useful to BUYER, (B) cash and other normal
intrabank transfers which may be transferred in the ordinary course of
business in accordance with normal banking practices, (C) any current
loans not included as Office Loans, and (D) any loans originated by the
Offices in the markets served by them after the date hereof and prior
to the Closing that are not included as Office Loans;
	 
	 	(iii)	 	permit the Offices to transfer to SELLER’s
other operations any Deposit Liabilities other than (A) Deposits
Liabilities securing loans made by SELLER which are not Office Loans,
(B) Deposit Liabilities owned in whole or in part by employees of
SELLER who are not Transferred Employees, or (C) Deposit Liabilities of

11

 

	 	 	 	current directors of SELLER or its affiliates, except in the ordinary
course of business at the unsolicited request of depositors, or cause
any of SELLER’s other operations to transfer to the Offices any
Deposit Liabilities, except in the ordinary course of business at the
unsolicited request of depositors; provided, however, that SELLER
shall be permitted to make such transfers of any Deposit Liabilities
to or from the Offices as are in the normal course of business;
	 
	 	(iv)	 	invest in any Fixed Assets on behalf of any
Office, except for commitments made on or before the date of this
Agreement which are disclosed to BUYER on Schedule C of this
Agreement and for replacements of furniture, furnishings and equipment
and normal maintenance and refurbishing purchased or made in the
ordinary course of business;
	 
	 	(v)	 	enter into or amend any continuing contract
(other than those related to Deposit Liabilities, safe deposit
agreements, and loans which are not included as Office Loans), which
cannot be terminated without cause and without payment of any amounts
as a penalty, bonus, premium or other compensation for termination;
	 
	 	(vi)	 	make any change to its customary policies for
setting rates on deposits offered at the Offices.

	 	(b)	 	Title Commitments for Real Estate. SELLER shall
deliver to BUYER, at SELLER’ s expense, with respect to the Owned Real Estate
and Leased Real Estate, no later than thirty (30) days after the date of this
Agreement, a commitment or commitments (the “Title Commitments”), having an
effective date as near as practicable to the date of delivery of such Title
Commitments, from a title insurance company designated by SELLER and reasonably
satisfactory to BUYER, to issue to BUYER as soon as practicable after the
Closing Date, as applicable, an American Land Title Association (“ALTA”) owners
(Form B, 1970, Rev 1984) and/or a leasehold title insurance (1975 Form) policy
having an effective date as of

12

 

	 	 	 	the Closing Date, covering the Owned Real Estate and the Leased Real Estate,
in an amount equal to the book value for the Owned Real Estate as reflected
on SELLER’s books as of the end of the month immediately preceding the month
in which the Closing occurs, and the amount of the leasehold interest, based
on the remaining rental payments due under the balance of the remaining term
of the lease to be transferred to BUYER pursuant to the Office Lease,
subject to the exceptions specified in the Title Commitments. If title to
all or part of the Owned Real Estate or Lease Real Estate is unmarketable or
is subject to any defect, lien, encumbrance, easement, condition,
restriction or encroachment other than the Permitted Exceptions (as defined
below), then BUYER shall provide written notice thereof to SELLER. SELLER
shall have thirty (30) days after written notice thereof from BUYER, to
elect to remedy or remove any such defect, lien, encumbrance, easement,
condition, restriction or encroachment but, if SELLER does not, BUYER may
elect to attempt to cure or remove such defect or encumbrance or other
matter, for a period of thirty (30) days thereafter. If such defect or
encumbrance or other matter is not cured after such thirty (30) day period,
in addition to any other rights which BUYER may have hereunder, BUYER shall
have the right to (i) terminate this Agreement by written notice to SELLER,
(ii) negotiate, at BUYER’S cost, with the title company for certain
endorsements to the standard insurance coverage to address any such defects
or encumbrances, or (iii) waive any objection to such defect or encumbrance
or other matter in which event such defect, encumbrance, or other matter
shall be deemed to be a Permitted Exception. The Owned Real Estate is being
sold by SELLER to BUYER hereunder free and clear of all liens, claims,
encumbrances and rights of tenants in possession except for the Permitted
Exceptions, and the conveyance by limited warranty deed to be delivered by
SELLER pursuant hereto shall be subject only to the Permitted Exceptions.
SELLER also shall execute and deliver to BUYER at the time of Closing such
affidavits and other instruments, if

13

 

	 	 	 	any, as the title insurance company issuing the Title Commitments may
reasonably require to delete any inapplicable standard exceptions appearing
as “Schedule B” items in a standard ALTA owners or leasehold owners
title insurance policy, other than those which may only be deleted by a
survey. SELLER also shall execute and deliver a so-called “FIRPTA”
affidavit at Closing.

	 	(c)	 	Required Authorizations. SELLER shall obtain and
procure all necessary internal corporate and other approvals and
authorizations, if any, required by SELLER to enable it to fully perform all
obligations imposed on it hereunder which must be performed by it at or prior
to the Closing.
	 
	 	(d)	 	Creation of Liens and Encumbrances. With respect to
the Owned Real Estate, SELLER shall not create or allow any liens,
imperfections in title, charges, easements, restrictions or encumbrances other
than the Permitted Exceptions.
	 
	 	(e)	 	Condemnation. If prior to Closing all or any portion
of the Owned Real Estate or Leased Real Estate is taken or is made subject to
eminent domain or other governmental acquisition proceedings, then SELLER shall
promptly notify BUYER thereof, and BUYER may either complete the Closing and
receive the proceeds paid or payable on account of such acquisition proceedings
(which, if received prior to Closing, shall be paid by SELLER to BUYER at
Closing), or terminate this Agreement. If BUYER terminates this Agreement, both
parties shall thereupon be relieved from all further obligations hereunder,
except as may otherwise be expressly provided.
	 
	 	(f)	 	Insurance Proceeds and Casualty Payments. SELLER shall
maintain adequate insurance on all the Owned Real Estate, Leased Real Estate
and Fixed Assets. In the event of any damage or destruction affecting such
Assets between the date hereof and the time of the Closing, SELLER shall
deliver to BUYER at the Closing any such insurance proceeds received by SELLER
as a result thereof (adding into such amount the amount of any

14

 

	 	 	 	deductible), to the extent of the applicable amount in Section 1.4(a)(ii)
with respect to Owned Real Estate and to the extent of the amount set forth
in Section 1.4(a)(iii) with respect to the Fixed Assets, as the case may be,
unless SELLER has repaired or replaced the damaged or destroyed
property.

	 	(g)	 	IRAs. Not later than thirty (30) days prior to the
expected Closing Date, SELLER shall, at SELLER’s expense, mail notice of
SELLER’s resignation as Custodian and the appointment of BUYER as the Successor
Custodian, effective upon Closing, of each IRA maintained at the Offices. The
notice shall include such other information that is mutually agreed upon by
SELLER and BUYER.
	 
	 	(h)	 	Assignment of Office Lease. SELLER shall obtain (i)
any written consent of any such landlord as shall be necessary for the
effective assignment of the Office Lease and the assumption thereof by BUYER as
of the Closing Date, and (ii) any consent necessary to assign or transfer to
BUYER, or substitute BUYER as landlord under, the lease by which a third-party
leases space in the Owned Real Estate, each in form and content reasonably
satisfactory to BUYER, it being understood that, in the case of the foregoing
(i) and (ii), that the assignment of said leases in their current form or
without material changes shall be satisfactory to BUYER. In the event any such
necessary assignment is not obtained, or other arrangements reasonably
satisfactory to BUYER are not made, by the Closing, BUYER may, upon written
notice to SELLER, terminate this Agreement. The assignment and assumption by
BUYER of the Office Lease shall be in a form mutually agreed upon by the
parties and reasonably acceptable to the Lessor under such Office Lease.
	 
	 	(i)	 	SELLER shall permit representatives of BUYER to attend such meetings of
SELLER with regard to the Offices and business of the Offices as BUYER may
reasonably request, to review such books and records of

15

 

	 	 	 	SELLER as may reasonably be relevant to the transactions contemplated
hereby, and to consult with SELLER with regard to any Office Loans.
	 
	 	(j)	 	SELLER shall make available to BUYER the opportunity to include
in the Office Loans, at BUYER’s sole discretion, any new loans originated at
the Offices in the markets served by them between the date hereof and the
Closing Date.
	 
	 	(k)	 	SELLER shall provide to BUYER copies of any blueprints and
schematic drawings it may have in its possession for the Owned Real Estate.

	 	2.2	 	Covenants of BUYER. BUYER hereby covenants to SELLER that, from the date
hereof until the Closing:

	 	(a)	 	Regulatory Applications. BUYER shall prepare and
submit for filing, at no expense to SELLER, any and all applications, filings,
and registrations with, and notifications to, all federal and state authorities
required on the part of BUYER or any affiliate of BUYER for the Acquisition to
be consummated on the terms set forth herein and for BUYER to operate the
Offices following the Closing. BUYER shall provide SELLER with a draft copy of
each application, filing, registration, and notification for SELLER’s approval
prior to filing, which approval by SELLER will not be unreasonably withheld or
delayed. Such applications will be submitted to SELLER in draft form within
thirty (30) days from the date of this Agreement and filed by BUYER without
delay following SELLER’s approval of such applications; provided, however, that
in no event will such applications be filed later than sixty (60) days from the
date of this Agreement. Thereafter, BUYER shall pursue all such applications,
filings, registrations, and notifications diligently and in good faith, and
shall file such supplements, amendments, and additional information in
connection therewith as may be reasonably necessary for the Acquisition to be
consummated on the terms set forth herein and for BUYER to operate the Offices
following the Closing. BUYER shall deliver to SELLER evidence of the filing of
each and all of such applications,

16

 

	 	 	 	filings, registrations and notifications (except for any confidential
portions thereof), and any supplement, amendment or item of additional
information in connection therewith (except for any confidential portions
thereof). BUYER shall also deliver to SELLER a copy of each material
notice, order, opinion and other item of correspondence received by BUYER
from such federal and state authorities (except for any confidential
portions thereof) and shall advise SELLER, at SELLER’s request, of
developments and progress with respect to such matters.
	 
	 	(b)	 	Required Authorizations. BUYER shall obtain and
procure all necessary corporate and other approvals and authorizations, if any,
required on its part to enable it to fully perform all obligations imposed on
it hereunder which must be performed by it at or prior to the Closing.

	 	(c)	 	Satisfaction of Conditions. BUYER shall not
voluntarily undertake any course of action inconsistent with the satisfaction
of the requirements or the conditions applicable to it, or its agreements,
undertakings, obligations, or covenants set forth in this Agreement, and it
shall promptly do all such reasonable acts and take all such reasonable
measures as may be appropriate to enable it to perform as early as possible the
agreements, undertakings, obligations, and covenants herein provided to be
performed by it, and to enable the conditions precedent to SELLER’s obligations
to consummate the Closing of the Acquisition to be fully satisfied.
Additionally, BUYER shall not knowingly, directly or through any existing or
future subsidiary or affiliate, take any action that would be in conflict with,
or result in the denial, delay, termination, or withdrawal of, any of the
regulatory approvals referred to in this Agreement.

	 	(d)	 	Cooperation Regarding Leased Real Estate. BUYER shall,
at SELLER’s request in connection with SELLER’s obtaining the consents
specified in Section 2.1(h), advise, in writing, the lessor of Leased Real
Estate, of BUYER’s intent to assume and comply with the terms of the Office
Lease (as to matters arising from and after the Closing Date) and provide to
such

17

 

	 	 	 	lessor with any financial or other information reasonably requested in
connection therewith.

	 	2.3	 	Covenants of All Parties. SELLER hereby covenants to BUYER, and BUYER hereby
covenants to SELLER that, from the date hereof until the Closing, such party shall
cooperate fully with the other party in attempting to obtain all consents, approvals,
permits, or authorizations which are required to be obtained pursuant to any federal or
state law, or any federal or state regulation thereunder, for or in connection with the
transactions described and contemplated in this Agreement.

	3.	 	REPRESENTATIONS AND WARRANTIES.

	 	3.1	 	Representations and Warranties of SELLER. SELLER represents and warrants to
BUYER as follows:

	 	(a)	 	Good Standing and Power of SELLER. SELLER is a banking
association validly existing under the laws of the United States with corporate
power to own its properties and to carry on its business as presently
conducted. SELLER is an “insured bank” as defined in the Federal Deposit
Insurance Act.

	 	(b)	 	Authorization of Agreement. The execution and delivery
of this Agreement, and the transactions contemplated hereby, have been duly
authorized by all necessary corporate action and shareholder action (if any) on
the part of SELLER, and this Agreement is a valid and binding obligation of
SELLER, subject to the application of applicable bankruptcy, insolvency or
other laws affecting creditors’ rights generally.

	 	(c)	 	Effective Agreement. Subject to the receipt of any and
all necessary regulatory approvals and required consents, the execution,
delivery, and performance of this Agreement by SELLER and the consummation of
the transactions contemplated hereby, will not conflict with, result in the
breach of, constitute a violation or default, result in the acceleration of
payment or other obligations, or create a lien, charge or encumbrance,

18

 

	 	 	 	under any of the provisions of Articles of Association or By-Laws of SELLER,
under any judgment, decree or order, under any law, rule, or regulation of
any government or agency thereof, or under any material contract, material
agreement or material instrument to which SELLER is subject, where such
conflict, breach, violation, default, acceleration or lien would have a
material adverse effect on the Assets or SELLER’s ability to perform its
obligations hereunder.

	 	(d)	 	Title to Real Estate And Other Assets. SELLER or an
affiliate is the sole owner of each of the Assets (other than the Leased Real
Estate and the Owned Real Estate) free and clear of any mortgage, lien,
encumbrance or restrictions of any kind or nature. As to the Owned Real
Estate, SELLER or an affiliate is the sole owner of a fee simple interest in,
and has good and marketable title to, such Owned Real Estate, free and clear of
all liens, claims, encumbrances and rights of tenants in possession except for
the Permitted Exceptions. SELLER or an affiliate has a valid leasehold
interest in the Leased Real Estate pursuant, and subject to, the Office Lease
and has the use of the Leased Real Estate pursuant to the Office Lease.

	 	(e)	 	Zoning Variations. As of the date of this Agreement,
SELLER has no knowledge of receipt of any written notice from any governmental
authority of any uncorrected violations of zoning and/or building codes
relating to the Owned Real Estate or Leased Real Estate, or knowledge of the
intention of any such authority to provide such notice.

	 	(f)	 	Condemnation Proceedings. SELLER has received no
written notice of any pending or threatened, nor is it aware of any
contemplated, condemnation proceeding affecting or relating to the Offices.

	 	(g)	 	Taxes. All federal, state and local payroll,
withholding, property, sales, use and transfer taxes, if any, which are due and
payable by SELLER relating to the Offices prior to the date of Closing shall be
paid in full as of the Closing Date or SELLER shall have made appropriate
provision for

19

 

	 	 	 	such payment in accordance with ordinary business practices. Any
claims for refunds of taxes which have been paid by SELLER shall remain the
property of SELLER.

	 	(h)	 	Operations Lawful. To the knowledge of SELLER, the
conduct of banking business at the Offices is in compliance in all material
respects with all federal, state, county and municipal laws, ordinances and
regulations applicable to conduct of such business.

	 	(i)	 	Third-Party Claims. There are no actions, suits or
proceedings, pending or, to SELLER’s knowledge, threatened against or affecting
SELLER which, if determined adversely to SELLER, could have a material adverse
effect on the aggregate value of the banking business and Assets of the
Offices.

	 	(j)	 	Insurance. SELLER maintains such insurance on the
Offices and the Fixed Assets as may be required or as is customary in the
business of banking.

	 	(k)	 	Labor Relations. No employee located at any of the
Offices is represented, for purposes of collective bargaining, by a labor
organization of any type. SELLER has no knowledge of any efforts during the
past three years to unionize or organize any employees at any Office, and no
material claim related to employees at the Offices under the Fair Labor
Standards Act, National Labor Relations Act, Civil Rights of 1964, Walsh-Healy
Act, Davis Bacon Act, Civil Rights of Act of 1866, Age Discrimination in
Employment Act, Equal Pay Act of 1963, Executive Order No. 11246, Federal
Unemployment Tax Act, Vietnam Era Veterans Readjustment Act, Occupational
Safety and Health Act, Americans with Disabilities Act or any state or local
employment related law, order, ordinance or regulation, no unfair labor
practice, discrimination or wage-and-hour claim is pending or, to the best of
SELLER’s knowledge, threatened against or with respect to SELLER.

20

 

	 	(l)	 	Governmental Notices. SELLER has not received notice
from any federal or state governmental agency indicating that it would oppose
or not approve, if required, the transactions contemplated by this Agreement.

	 	(m)	 	Environmental. There are no actions, proceedings or
investigations pending before any environmental regulatory body, federal or
state court with respect to or threatened against or affecting SELLER in
respect of any Office under any Environmental Law (as defined in Section 7.5)
and in connection with any release of any Hazardous Substance (as defined in
Section 7.5) nor, to the best knowledge e of the executive officers of SELLER,
is there any reasonable basis for the institution of any such actions or
proceedings or investigations which is probable of assertion, nor are there any
such actions or proceedings or investigations in which SELLER is a plaintiff or
complainant. To the knowledge of SELLER, SELLER is not responsible in any
material respect under any applicable Environmental Law for any release by
SELLER or for any release by any other person at or in the vicinity of any
Office of a Hazardous Substance caused by the spilling, leaking, pumping,
pouring, emitting, emptying, discharging, injecting, escaping, leaching,
dumping or disposing of Hazardous Substances into the environment, nor is
SELLER responsible for any material costs (as a result of the acts or omissions
of SELLER, or, to the actual knowledge of the executive officers of SELLER, as
a result of the acts or omissions of any other person) of any remedial action
including, without limitation, costs arising out of security fencing,
alternative water supplies, temporary evacuation and housing and other
emergency assistance undertaken by any environmental regulatory body having
jurisdiction over SELLER to prevent or minimize any actual or threatened
release by SELLER on premises of any Hazardous Substances into the environment
which would endanger the public health or the environment.

	 	(n)	 	Access to Real Estate. To SELLER’s knowledge, no fact
or condition exists which would result in the termination or impairment of
access to the

21

 

	 	 	 	Owned Real Estate from adjoining public or private streets or ways or which
could result in discontinuation of necessary sewer, water, electric, gas,
telephone, or other utilities or services, and sewage, sanitation, plumbing,
refuse disposal, and similar facilities servicing the Owned Real Estate are
in material compliance with applicable governmental regulations.

	 	(o)	 	Mechanic’s Liens. SELLER has paid or will pay in full
prior to Closing all bills and invoices for labor and material of any kind
arising from the ownership, operation, management, repair, maintenance, or
leasing as tenant of the Owned Real Estate and the Leased Real Estate, and no
actual or potential mechanic’s lien or other claims are outstanding or
available to any party in connection with the ownership, operation, management,
repair, maintenance, or leasing as tenant of said properties.

	 	(p)	 	Personal Property. Schedule C is a preliminary
listing of Fixed Assets owned by SELLER and located at the Offices. A final
listing of Fixed Assets will be provided to BUYER by SELLER prior to the
Closing Date.

	 	(q)	 	Assumed Contracts and Office Lease. Schedule D
is a true and accurate schedule of all Assumed Contracts related to the
Offices. Each Assumed Contract is valid and subsisting and in full force and
effect in accordance with its terms and SELLER has no knowledge of any actual
or threatened breach or threatened termination of any such Assumed Contract or
claims or defenses thereto by the other party(ies) thereto.

	 	(r)	 	Office Loans. SELLER is the sole owner of each Office
Loan and no Office Loan is subject to any lien, pledge or encumbrance superior
to the rights of SELLER in such loan, other than liens for taxes which are not
yet due and payable. No consents of any third-parties are required for transfer
of the Office Loans to BUYER as provided in this Agreement. As of the date
hereof the Office Loans are not, and as of the Closing will not be, past due
more than ninety (90) days in accordance with their respective terms or on
non-accrual status on the books of SELLER. SELLER has

22

 

	 	 	 	provided BUYER with the current classification of each Office Loan as of the
date hereof (corresponding to asset classifications by the Office of the
Comptroller of the Currency). As to each Office Loan, such loan is
adequately documented, is enforceable in accordance with its terms, SELLER
has no knowledge of any claims, defenses, or set-off rights by any third
parties with respect thereto, including borrowers, and SELLER has an
enforceable security interest in collateral where applicable.

	 	3.2	 	Representations and Warranties of BUYER. BUYER represents and warrants to
SELLER as follows:

	 	(a)	 	Good Standing and Power of BUYER. BUYER is a banking
corporation validly existing and in good standing under the laws of the State
of Ohio with corporate power to own its properties and to carry on its business
as presently conducted. BUYER is an “insured bank” as defined in the Federal
Deposit Insurance Act.

	 	(b)	 	Authorization of Agreement. The execution and delivery
of this Agreement, and the transactions contemplated hereby, have been duly
authorized by all necessary corporate action on the part of BUYER, and this
Agreement is a valid and binding obligation of BUYER, subject to the
application of applicable bankruptcy, insolvency or other laws affecting
creditors’ rights generally.

	 	(c)	 	Effective Agreement. Subject to the receipt of any and
all necessary regulatory approvals, the execution, delivery, and performance of
this Agreement by BUYER, and the consummation of the transactions contemplated
hereby, will not conflict with, result in the breach of, constitute a violation
or default, result in the acceleration of payment or other obligations, or
create a lien, charge or encumbrance, under any of the provisions of the
Articles of Incorporation, Code of Regulations or other governing documents of
BUYER, under any judgment, decree or order, under any law, rule or regulation
of any government or agency thereof, or under any material agreement, material
contract or material

23

 

	 	 	 	instrument to which BUYER is subject, where such conflict, breach,
violation, default, acceleration or lien would have a material adverse
effect on BUYER’s ability to perform its obligations hereunder.

	 	(d)	 	Governmental Notices. BUYER has not received notice
from any federal or state governmental agency indicating that it would oppose
or not approve, if required, the transactions contemplated by this Agreement
and has no reason to believe any such agency may oppose or not approve the
Acquisition.

	4.	 	ACTIONS RESPECTING EMPLOYEES AND PENSIONS AND EMPLOYEE BENEFIT PLANS.

	 	4.1	 	Employment of Employees.

	 	(a)	 	BUYER shall extend offers of employment, to be effective as of
the Closing Date, to such employees of the Offices as it may, at its sole
discretion, select, and shall provide SELLER with a listing of same not less
than fifteen (15) calendar days prior to the Closing Date. Employees accepting
employment with BUYER are referred to as the “Transferred Employees”. Nothing
contained in this Agreement shall create any rights in any third parties,
including but not limited to SELLER employees, or restrict or prohibit BUYER
and any Transferred Employee from entering into an agreement satisfactory to
both Buyer and the Transferred Employee.

	 	(b)	 	SELLER will cooperate with BUYER, to the extent reasonably
requested and legally permissible, to provide BUYER with information about the
employees of the Offices including, without limitation, providing BUYER with
the personnel files of those employees of the Offices who provide SELLER with
their written consent thereto, and a means to meet with the subject employees.
SELLER’s managerial and supervisory employees will not participate in any way
in the hiring decisions of BUYER.

	 	4.2	 	Terms and Conditions of Employment.
Except as otherwise provided explicitly in this Agreement, the terms of employment
for each Transferred Employee shall

24

 

	 	 	 	be determined solely by BUYER’ s policies, procedures, and programs; provided,
however, that BUYER agrees that each Transferred Employee shall be provided
employment subject to the following terms and conditions:

	 	(a)	 	Except as otherwise specifically provided herein, Transferred
Employees shall be provided employee benefits that are no less favorable in the
aggregate than those provided to similarly situated employees of BUYER. BUYER
shall provide such Transferred Employees with credit for the Transferred
Employee’s period of service with SELLER (including any service credited from
predecessors by merger or acquisition to SELLER) towards the calculation of
eligibility and vesting for such purposes as vacation, sick days, personal
days, severance and other benefits, and participation and vesting in BUYER’s
qualified pension and/or profit sharing 401(k) plans, as such plans may exist
(but not for purposes of funding of accrued pension or profit sharing plans for
such Transferred Employees with respect to any period prior to the Closing
Date).

	 	(b)	 	Each Transferred Employee shall be eligible to participate in
the medical, dental, or other welfare plans of BUYER, as such plans may exist,
on and after the Closing Date, and any pre-existing conditions provisions of
such plans shall be waived with respect to any such Transferred Employees.

	 	(c)	 	Except as provided herein, SELLER shall pay, discharge, and be
responsible for (i) all salary and wages arising out of employment of the
Transferred Employees through the Closing Date, and (ii) any employee benefits
arising under SELLER’s employee benefit plans and employee programs prior to
the Closing Date including but not limited to benefits with respect to claims
incurred prior to the Closing Date but reported after the Closing Date and
benefits inuring to any employees who may have been on leave prior to the
Closing Date. BUYER shall pay, discharge, and be responsible for (i) all
salary and wages arising out of employment of the Transferred Employees after
the Closing Date, and (ii) any employee benefits arising under BUYER’s employee
benefit plans and employee

25

 

	 	 	 	programs after the Closing Date. From and after the Closing Date, Transferred
Employees shall be considered “at will “ employees of BUYER and BUYER shall
pay, discharge, and be responsible for all salary, wages, and benefits arising
out of or relating to the employment of the Transferred Employees by BUYER from
and after the Closing Date, including, without limitation, all claims for
welfare benefits plans incurred on or after the Closing Date. To the extent
permitted under BUYER’s applicable 401(k) plan, SELLER and BUYER shall
cooperate in arranging for the transfer to BUYER’s 401(k) plan, as soon as
practicable after the Closing Date and in a manner that satisfies Sections
414(1) and 411(d)(6) of the Internal Revenue Code, as amended, of those
accounts held under SELLER’s 401(k) plan on behalf of Transferred Employees.

	 	4.3	 	Compliance with Law. SELLER agrees that it shall comply with any and all
applicable requirements, if any, under the Worker Adjustment and Retraining
Notification Act in connection with the transaction contemplated by this Agreement.
SELLER hereby agrees to indemnify and to hold BUYER harmless from and against any and
all liability, loss, cost, and expense, however arising, as a result of the failure of
SELLER to comply with its obligations as set forth in this section.

	 	4.4	 	Actions to be Taken by SELLER. SELLER covenants to BUYER that it will do or
cause the following to occur:

	 	(a)	 	Employee Benefit Programs. From the date hereof
through the Closing Date, SELLER’s obligations to employees of the Offices,
including Transferred Employees, will be as set forth in established policies
of SELLER, and SELLER shall continue its employee benefit programs in full
force and effect. After the Closing, SELLER shall retain the responsibility
and liability for the funding and payment of all claims incurred under such
employee benefit programs through the Closing Date. BUYER shall have no
obligation or liability to compensate Transferred Employees for benefits of any
kind earned, accrued, promised and/or

26

 

	 	 	 	provided to Transferred Employees as employees of SELLER, except with
respect to eligibility and vesting as set forth in Section 4.2 above.

	 	(b)	 	Employees of the Offices. From the date of this
Agreement through the Closing, SELLER shall not, without BUYER’s prior written
consent (i) hire any new employee of any Office or increase the aggregate
full-time equivalent size of the work force at the Offices above the aggregate
normal staffing levels designated by SELLER for the Offices at the date hereof,
(ii) terminate any employee of the Offices, unless such person is terminated
for cause as determined at the sole discretion of SELLER or otherwise pursuant
to existing SELLER policies or procedures, (iii) increase the compensation of
any Transferred Employee except pursuant to existing SELLER policies and
procedures, (iv) promote any employee of the Offices except pursuant to
existing SELLER policies and procedures or (v) transfer or reassign any
employee of the Offices (other than a transfer of any employee who is not a
Transferred Employee, which shall be in SELLER’s sole discretion).

The obligations of SELLER and BUYER pursuant to Sections 4.1 through 4.4 shall survive the
Closing.

5. CONDITIONS PRECEDENT TO CLOSING.

	 	5.1	 	Conditions to SELLER’s Obligations. The obligations of SELLER to consummate
the Acquisition are subject to the satisfaction, or the waiver in writing by SELLER to
the extent permitted by applicable law, of the following conditions at or prior to the
Closing:

	 	(a)	 	Prior Regulatory Approval. All filings and
registrations with, and notifications to, all federal and state authorities
required for consummation of the Acquisition shall have been made, all
approvals and authorizations of all federal and state authorities required for
consummation of the Acquisition shall have been received and shall be in full
force and effect, and all applicable waiting periods shall have expired.

27

 

	 	(b)	 	Corporate Action. The Board of Directors of BUYER
shall have taken all corporate action necessary by it to effectuate this
Agreement and the Acquisition and BUYER shall have furnished SELLER with a
certified copy of each such resolution adopted by the Board of Directors of
BUYER evidencing the same.

	 	(c)	 	Representations and Warranties. The representations
and warranties of BUYER set forth in this Agreement shall be true and correct
in all material respects on the Closing Date with the same effect as though all
such representations and warranties had been made on and as of such date, and
BUYER shall have delivered to SELLER a Certificate to that effect, dated as of
the Closing Date in a form reasonably acceptable to SELLER.

	 	(d)	 	Covenants. Each and all of the covenants and
agreements of BUYER to be performed or complied with at or prior to Closing
pursuant to this Agreement shall have been duly performed or complied with in
all material respects by BUYER, or waived by SELLER, and BUYER shall have
delivered to SELLER a Certificate to that effect, dated as of the Closing Date
in a form reasonably acceptable to SELLER.

	 	(e)	 	No Proceeding or Prohibition. At the time of the
Closing, there shall not be any litigation, investigation, inquiry, or
proceeding pending or threatened in or by any court or agency of any government
or by any third party which in the judgment of the executive officers of
SELLER, with the advice of counsel, presents a bona fide claim to restrain,
enjoin, or prohibit consummation of the transaction contemplated by this
Agreement or which might result in rescission in connection with such
transactions; and SELLER shall have been furnished with a Certificate, in a
form reasonably acceptable to SELLER, dated as of the Closing Date and signed
by the Chairman, President, or such other officer as may be duly authorized by
the Board of Directors of BUYER, to the effect that no such litigation,
investigation, inquiry, or proceeding is pending or, to the best of their
knowledge, threatened.

28

 

	 	(f)	 	SELLER shall have received, in form and substance reasonably
satisfactory to SELLER, all consents, approvals or waivers of third parties
(other than regulatory approvals and consents and approvals related to the
Owned Real Property and Leased Real Property), the failure of which to receive
would materially adversely affect the economic or business benefits of the
Acquisition to SELLER.

	 	5.2	 	Conditions to BUYER’s Obligations. The obligations of BUYER to consummate the
Acquisition are subject to the satisfaction, or the waiver in writing by BUYER to the
extent permitted by applicable law, of the following conditions at or prior to the
Closing:

	 	(a)	 	Prior Regulatory Approval. All filings and
registrations with, and notifications to, all federal and state authorities
required for consummation of the Acquisition and operation of the Offices by
BUYER shall have been made, all approvals and authorizations of all federal and
state authorities required for consummation of the Acquisition and operation of
the Offices by BUYER shall have been received and shall be in full force and
effect, with terms satisfactory to BUYER, and all applicable waiting periods
shall have expired.

	 	(b)	 	Corporate Action. The Board of Directors of SELLER
shall have taken all corporate action necessary to effectuate this Agreement
and the Acquisition and SELLER shall have furnished BUYER with a certified copy
of each such resolution adopted by the Board of Directors of SELLER evidencing
the same.

	 	(c)	 	Representations and Warranties. The representations
and warranties of SELLER set forth in this Agreement shall be true and correct
in all material respects on the Closing Date with the same effect as though all
such representations and warranties had been made on and as of such date
(unless a different date is specifically indicated in such representations and
warranties), and SELLER shall have delivered to BUYER a Certificate to

29

 

	 	 	 	that effect, dated as of the Closing Date in a form reasonably acceptable to
BUYER.

	 	(d)	 	Covenants. Each and all of the covenants and
agreements of SELLER to be performed or complied with pursuant to this
Agreement shall have been duly performed or complied with in all material
respects by SELLER, or waived by BUYER, and SELLER shall have delivered to
BUYER a Certificate to that effect, dated as of the Closing Date in a form
reasonably acceptable to BUYER.

	 	(e)	 	No Proceedings or Prohibitions. At the time of the
Closing, there shall not be any litigation, investigation, inquiry, or
proceeding pending or threatened in or by any court or agency of any government
or by any third party which in the judgment of the executive officers of BUYER,
with the advice of counsel, presents a bona fide claim to restrain, enjoin, or
prohibit consummation of the transactions contemplated by this Agreement or
which might result in rescission in connection with such transactions; and
BUYER shall have been furnished with a Certificate, in a form reasonably
acceptable to BUYER, dated as of the Closing Date and signed by the Chairman,
President, or Vice President, and the Secretary or Assistant Secretary of
SELLER, to the effect that no such litigation, investigation, inquiry, or
proceeding is pending or threatened to the best of their knowledge.

	 	(f)	 	Real Property. The Title Commitments (as defined in
Section 2.1(b) herein) shall have been delivered to BUYER, and updated to or as
close as practicable to (but in no event more than five (5) business days prior
to) the Closing Date, in accordance with the terms of such Section, and such
updated Title Commitment shall not include any special exceptions other than
those set forth in the original Title Commitment and any other Permitted
Exceptions. BUYER shall have been provided the opportunity to inspect the
Owned Real Estate and shall be reasonably satisfied that there are no material
defects or damages to the Owned Real Estate (normal

30

 

	 	 	 	wear and tear excepted) and, in the event there are material defects or
damage, BUYER and SELLER shall have negotiated corresponding adjustments to
the book value of such Owned Real Estate reasonably satisfactory to both
parties.

	 	(g)	 	Fixed Assets. There shall have been no material
alteration in or adjustment to the Fixed Assets except with the written consent
of BUYER. It will not be considered to be a material alteration or adjustment
to the Fixed Assets if (i) there is damage or destruction to the Fixed Assets
as contemplated by Section 2.1(f) herein and SELLER complies with said Section
2.1(f), (ii) SELLER makes additions to the Fixed Assets with the prior written
consent of BUYER, (iii) SELLER makes additions to the Fixed Assets without
BUYER’s consent in order to correct emergency situations which are threatening
to impair SELLER’s operations at an Office, or (iv) additions to Fixed Assets
otherwise permitted by this Agreement.

	 	(h)	 	BUYER shall have received, in form and substance reasonably
satisfactory to BUYER, all consents, approvals or waivers of third parties
(other than regulatory approvals and consents and approvals related to the
Owned Real Property and Leased Real Property), the failure of which to receive
would materially adversely affect the economic or business benefits of the
Acquisition to BUYER.

	 	(i)	 	There shall have been no material adverse change in the
business or prospects of SELLER or the Offices or in the condition of the
Office Loans from the date hereof.

	 	(j)	 	The Office Loans (including Office Loans added between the date
of this Agreement and the Closing Date upon the consent of BUYER and any loans
substituted or added pursuant to the terms of this Agreement) as of the Closing
Date shall have an outstanding principal balance of $8.5 million. In the case
of Office Loans which are set forth on the confidential listing provided
pursuant to Section 1.2(g) concurrently with

31

 

	 	 	 	the signing of this Agreement, no such loan shall have been downgraded from
its classification as of the date of this Agreement.

	 	5.3	 	Waivers of Conditions Precedent. The conditions specified in Sections 5.1 and
5.2 herein shall be deemed satisfied or, to the extent not satisfied, waived if the
Closing occurs unless such failure of satisfaction is reserved in a writing executed by
BUYER and SELLER at or prior to the Closing.

6. CLOSING.

	 	6.1	 	Closing and Closing Date. The Acquisition contemplated by this Agreement shall
be consummated and closed (the “Closing”) at such location as shall be mutually agreed
upon by BUYER and SELLER, on a date to be mutually agreed upon by BUYER and SELLER
which date is after all required regulatory approvals have been obtained and all
applicable regulatory waiting periods associated therewith have expired. The precise
date on which the Closing shall occur (the “Closing Date”) shall be confirmed by the
parties in writing not less than five (5) days after receiving all required regulatory
approvals.

	 	6.2	 	SELLER’s Actions at Closing. At the Closing (unless another time is
specifically stated), SELLER shall, with respect to the Offices:

	 	(a)	 	deliver to BUYER at the Offices such of the Assets purchased
hereunder as shall be capable of physical delivery; and

	 	(b)	 	execute, acknowledge and deliver to BUYER all such limited
warranty deeds (qualified, as necessary, to reflect all Permitted Exceptions),
endorsements, assignments, bills of sale, and other instruments of conveyance,
assignment, and transfer as shall reasonably be necessary or advisable to
consummate the sale, assignment, and transfer of the Assets sold or assigned to
BUYER hereunder and such other documents as the title company may reasonably
require; the originals of all blueprints,construction plans, specifications and plat relating to the Owned Real
Estate, which are now in SELLER’s possession; and such other documents or
instruments as may be reasonably required by BUYER, required by

32

 

	 		 	other provisions of this Agreement, or reasonably necessary to effectuate the
Closing;

	 	(c)	 	execute, acknowledge and deliver to BUYER a duly executed and
recordable assignment to BUYER of the Office Lease and deliver to BUYER any (i)
written consent of any such landlord as shall be necessary for the effective
assignment of the Office Lease and the assumption thereof by BUYER, and (ii)
consent necessary to assign or transfer to BUYER, or substitute BUYER as
landlord under, the lease by which a third-party leases space in the Owned Real
Estate, in each case in form and content reasonably satisfactory to BUYER it
being understood that, in the case of the foregoing (i) and (ii), that the
assignment of said leases in their current form or without material changes
shall be satisfactory to BUYER.

	 	(d)	 	assign, transfer, and make available to BUYER such of the
following records as exist and are available and maintained at the Offices (in
whatever form or medium then maintained by SELLER) pertaining to the Deposit
Liabilities and Office Loans:

	 	(i)	 	signature cards and IRA plan and account
documents (which will be provided in electronic media form and format
acceptable to BUYER and delivered directly to BUYER from SELLER’s image
storage vendor. BUYER shall contract directly with such vendor, at
BUYER’s expense, to obtain paper copies of electronically stored
documents); and

	 	(ii)	 	other orders, contracts, and agreements between
SELLER and depositors of the Offices with respect to the Deposit
Liabilities and borrowers with respect to Office Loans, and records of
similar character (which may be provided, at the option of SELLER, in
electronic format on CD-ROM or otherwise) excepting, specifically (A)
W8 and W9 forms which BUYER may obtain from customers, (B) internally
generated CTR and SAR forms, and

33

 

	 		 	(C) retail loan credit information
(for which no paper-based documents are maintained by SELLER), any
relevant tax forms and documents; and

	 	(iii)	 	a true and accurate trial balance listing of
records of accounts.

	 	(e)	 	assign, transfer, and deliver to BUYER such safe deposit and
safekeeping files and records (in whatever form or medium then maintained by
SELLER) pertaining to the safe deposit business of the Offices transferred to
BUYER hereunder as exist and are available, together with the contents of the
safe deposit boxes maintained at the Offices, as the same exist as of the close
of business on the day immediately preceding the Closing Date (subject to the
terms and conditions of the leases or other agreements relating to the same)
and all securities and other records, if any, held by the Offices for their
customers as of the close of business on the day immediately preceding the
Closing Date (subject to the terms and conditions of the agreements or receipts
relating to the same); and

	 	(f)	 	make available and transfer to BUYER on the Closing Date and
prior to the conclusion of the Closing any funds required to be paid to BUYER
pursuant to the terms of this Agreement; and

	 	(g)	 	execute, acknowledge and deliver to BUYER all certificates and
other documents required to be delivered to BUYER by SELLER at the Closing
pursuant to the terms of this Agreement; and

	 	(h)	 	assign by endorsement in a form reasonably satisfactory to
BUYER the documents and files pertaining to the Office Loans, including, but
not limited to, any and all contracts, promissory notes and other evidence of
indebtedness and liens related to the Office Loans together with the loan file
and records (in whatever form or medium then maintained by SELLER) pertaining
to such Office Loans; and

	 	(i)	 	assign to BUYER all of SELLER’ s rights in and to the Assumed
Contracts which are assignable and which constitute part of the Assets.

34

 

	 	6.3	 	BUYER’s Actions at the Closing. At the Closing (unless another time is
specifically stated in Section 6.4 hereof), BUYER shall:

	 	(a)	 	execute, acknowledge, and deliver to SELLER, to evidence the
assumption of the liabilities and obligations of SELLER by BUYER hereunder, an
instrument of assumption in the form mutually agreed upon by BUYER and SELLER.
Copies of such instrument may be recorded in the public records at the option
of either party hereto. The execution and acknowledgment of such instrument
shall not be deemed to be a waiver of any rights or obligations of any party to
this Agreement;

	 	(b)	 	receive, accept and acknowledge delivery of all Assets, and all
records and documentation relating thereto, sold, assigned, transferred,
conveyed or delivered to BUYER by SELLER hereunder and BUYER shall be
responsible for coordinating with the title companies to effectuate the
recording of limited warranty deeds on or after Closing and securing gap
insurance coverage in the event the limited warranty deeds are recorded
post-closing, at BUYER’S sole cost and expense; and

	 	(c)	 	execute and deliver to SELLER such written receipts for the
Assets, properties, records, and other materials assigned, transferred,
conveyed, or delivered to BUYER hereunder as SELLER may reasonably request at
or before the Closing;

	 	(d)	 	pay to SELLER on the Closing Date and prior to the conclusion
of the Closing any funds required to be paid to SELLER at the Closing pursuant
to the terms of this Agreement;

	 	(e)	 	execute, acknowledge and deliver to SELLER all Certificates and
other documents required to be delivered to SELLER by BUYER at the Closing
pursuant to the terms hereof;

	 	(f)	 	execute, acknowledge and deliver to SELLER an agreement wherein BUYER
assumes obligations with respect to the Office Lease and Assumed Contracts and
the IRAs for all periods following the Closing

35

 

	 	 	 	Date with respect thereto in a form mutually agreed upon by BUYER and SELLER;
and

	 	(g)	 	execute, acknowledge and deliver a letter of credit indemnity
agreement, pertaining to letters of credit, if any, included in the Office
Loans, in a form reasonably acceptable to SELLER.

	 	6.4	 	Methods of Payment. Subject to the adjustment procedures set forth in this
Section 6.4, the transfer of the funds, if any, due to BUYER or to SELLER, as the case
may be, shall be made on the Closing Date in immediately available United States
Dollars. At least two business days prior to the Closing, SELLER and BUYER shall
provide written notice to one another indicating the account and bank to which such
funds shall be wire transferred. In order to facilitate the Closing, the parties agree:
(i) that the amount of funds transferred on the Closing Date, pursuant to Section
1.4(a) hereof, shall be computed based upon (a) the aggregate book value plus accrued
interest of the Office Loans as of the close of business on a day to be agreed between
the parties, not more than seven (7) business days preceding the Closing Date, (b) cash
on hand at the Offices as of the close of business on a day to be agreed between the
parties, not more than seven (7) business days preceding the Closing Date, and (c) the
aggregate balance of all Deposit Accounts (including interest posted or accrued to such
accounts and Individual Retirement Accounts which have become IRAs as a result of the
written appointment of BUYER as the successor custodian and the failure of the account
holders to object to such appointment) as of the close of business on a day to be
agreed between the parties, not more than seven (7) business days preceding the Closing
Date, and the parties shall execute a preliminary closing statement in a form mutually
agreed upon by BUYER and SELLER. Furthermore, within ten (10) business days after the
Closing, the parties shall make appropriate post-closing adjustments, consistent with
the provisions of Section 1.4 hereof, based upon actual Deposit Accounts as of the
Closing Date, Office Loans as of the Closing Date, and cash transactions which took
place on the Closing Date or which took place prior to the Closing
Date but which were not reflected in the Preliminary Closing Statement, and shall
execute the Final

36

 

	 	 	 	Settlement Statement in a form mutually agreed upon by the
parties. In addition, prorations of prepaid and deferred income and expenses that
cannot be reasonably calculated at the Closing shall be settled and paid based on
actual amounts and calculations as soon as possible after the Closing.

	 	6.5	 	Availability of Closing Documents. The documents proposed to be used and
delivered at the Closing shall be made available for examination by the respective
parties not later than 12:00 noon, Ohio time, five (5) days prior to the Closing Date.

	 	6.6	 	Effectiveness of Closing. Upon the satisfactory completion of the Closing,
which does not include and shall not require completion of the adjustment and proration
arrangements set forth in Section 6.4, the Acquisition shall be deemed to be effective
and the Closing shall be deemed to have occurred.

	7.	 	CERTAIN TRANSITIONAL MATTERS.

	 	7.1	 	Transitional Action by BUYER. After the Closing, unless another time is
otherwise indicated:

	 	(a)	 	BUYER shall: (i) pay in accordance with the law and customary
banking practices and applicable Deposit Account contract terms, all properly
drawn and presented checks, negotiable orders of withdrawal, drafts, debits,
and withdrawal orders presented to BUYER by mail, over the counter, through
electronic media, or through the check clearing system of the banking industry,
by depositors of the Deposit Accounts assumed by BUYER hereunder, whether drawn
on checks, negotiable orders or withdrawal, drafts, or withdrawal order forms
provided by BUYER or SELLER; and (ii) in all other respects discharge, in the
usual course of the banking business, the duties and obligations of SELLER with
respect to the balances due and owing to the depositors whose Deposit Accounts
are assumed by BUYER hereunder; provided, however, that any obligations of BUYER pursuant to this Section 7.1 to honor checks, negotiable orders of
withdrawal, drafts, and withdrawal orders on forms provided by SELLER and
carrying its imprint (including its name and transit routing

37

 

	 		 	number) shall not apply to any checks, drafts, withdrawal orders, or returned items (i)
presented to BUYER more than one hundred eighty (180) days following the
Closing Date, or (ii) on which a stop payment has been requested by the
deposit customer. BUYER shall submit and file any required reports on IRS
Form 1099 with respect to interest accrued on Deposit Liabilities after the
Closing Date. The provisions of this subsection 7.1(a) shall in no way
limit BUYER’s duties or obligations arising under Section 1.3(b) hereof.

	 	(b)	 	Not earlier than the time of procurement of all applicable
regulatory approvals required for consummation of the transactions contemplated
by this Agreement nor later than ten days prior to the Closing Date, BUYER
shall notify all depositors of the Offices by letter, acceptable to SELLER,
produced in, if appropriate, several similar, but different forms calculated to
provide necessary and specific information to the owners of particular types of
accounts, of BUYER’s pending assumption of the Deposit Liabilities hereunder,
and, in appropriate instances, notify depositors that on and after the Closing
Date certain SELLER deposit-related services and/or SELLER’ s debit card and
automatic teller machine (“ATM”) services impacted by the transactions
contemplated by this Agreement, will be terminated. As an enclosure to such
notices, BUYER may furnish appropriate depositors with brochures, forms and
other written materials related or necessary to the assumption of the Deposit
Accounts by BUYER and the conversion of said accounts to BUYER accounts,
including the provision of checks and debit and ATM cards to appropriate
depositors using the forms of BUYER with instructions to such depositors to
utilize such BUYER checks and debit and ATM cards on and after the Closing Date
and thereafter to destroy any unused checks on SELLER’s forms and any SELLER
debit and ATM cards. The expenses of the printing, processing and mailing of such letter notices and providing new
BUYER checks and other forms and written materials and replacement debit
and ATM cards to appropriate customers shall be borne by BUYER.

38

 

	 	 	 	Before Closing, except as provided in this paragraph, BUYER will not contact
SELLER’s customers except joint customers in the normal course of business
and except as may occur in connection with advertising or solicitations
directed to the public generally or in the course of obtaining the requisite
regulatory approvals of the transaction. Anything to the contrary herein
notwithstanding, BUYER shall provide, at no cost to SELLER, any and all
notices, communications, and filings which may be required by law,
regulation, or otherwise, relating to any changes in terms and other matters
relating to the Deposit Accounts and the Office Loans occurring subsequent
to the Closing Date. Any and all such notices, communications, and filings
which may be required to be provided prior to the Closing Date shall be
submitted on a timely basis for review by SELLER and shall be subject to the
written approval of SELLER prior to delivery to any third party. BUYER
shall provide, at its sole cost and expense, that any and all customer and
other notices, communications, and filings provided by BUYER hereunder,
including the substance and timing of same, fully comply with the
requirements of applicable law and regulation.

	 	(c)	 	BUYER shall promptly pay to SELLER an amount equivalent to the
amount of any checks, negotiable orders of withdrawal, drafts, withdrawal
orders, or returned items credited as of the close of business on the Closing
Date to a Deposit Account assumed by BUYER hereunder which are returned
uncollected to SELLER or BUYER after the Closing Date. The foregoing shall
include an amount equivalent to holds placed upon such deposit account for
items cashed by SELLER as of the close of business on the Closing Date.

	 	(d)	 	All tasks and obligations concerning the provision of data
processing services to or for the Offices after the Closing, other than those
specifically set forth in Section 7.2(b) herein, if any, are the sole and
exclusive responsibility of, and shall be performed solely and exclusively
by, BUYER.

39

 

	 	(e)	 	Not later than the close of business on the business day
immediately following the Closing Date, BUYER shall supply suitable
government-backed securities as security for any deposits of governmental units
or other public deposits included among the Deposit Liabilities for which
SELLER had provided similar security.

	 	(f)	 	As soon as practicable but not more than ten (10) business days
after the Closing Date, BUYER shall prepare and transmit at BUYER’s expense to
each of the obligors on Office Loans transferred to BUYER pursuant to this
Agreement a notice to the effect that the loan has been transferred and
directing that payment be made to BUYER at the address specified by BUYER, with
BUYER’s name as payee on any checks or other instruments used to make payments,
and, with respect to such loan on which a payment notice or coupon book has
been issued, to issue a new notice or coupon book reflecting the name and an
address of BUYER as the person to whom and place at which payments are to be
made. BUYER shall submit and file any required reports on IRS Form 1098 with
respect to interest collected on Office Loans for the full calendar year in
which the Closing Date occurs including interest collected during the period
prior to the Closing Date.

	 	(g)	 	If the balance due on any Office Loan transferred to BUYER
pursuant to this Agreement has been reduced by SELLER as a result of a payment
by check or draft received prior to the close of business on the Closing Date,
which item is returned unpaid to SELLER after the day immediately preceding the
Closing Date, the asset value represented by the loan transferred shall be
correspondingly increased and an amount in cash equal to such increase shall be
promptly paid by BUYER to SELLER.

	 	(h)	 	BUYER shall use its reasonable best efforts to cooperate with
SELLER in assuring an orderly transition of ownership of the Assets and
responsibility for the liabilities, including the Deposit Liabilities, assumed
by BUYER hereunder.

40

 

	 	(i)	 	BUYER hereby grants to SELLER and its representatives access to
the Offices until the close of business on second business day following the
Closing Date or such other later date and time as the parties may agree, at no
cost or expense to SELLER, for conduct of activities consistent with this
Agreement in conjunction with the transactions contemplated hereby and to
remove from the Offices any assets of SELLER not transferred to BUYER hereunder
without cost to BUYER.

	 	(j)	 	The duties and obligations of Buyer in this Section 7.1 shall
survive the Closing.

	 	7.2	 	Transitional Actions by SELLER. After the Closing, unless another time is
otherwise indicated:

	 	(a)	 	SELLER shall cooperate with BUYER in assuring an orderly
transition of ownership of the Assets and responsibility for the liabilities,
including the Deposit Liabilities, assumed by BUYER hereunder. SELLER shall
provide final statements as of the Closing Date, as appropriate, for the
Deposit Liabilities, reflecting interest and service charges pro-rated to the
close of business on the Closing Date. SELLER shall submit and file any
required reports on IRS Form 1099 with respect to interest paid on Deposit
Liabilities through the Closing Date. SELLER shall provide to BUYER
information regarding interest collected on Office Loans during the calendar
year in which the Closing Date occurs, up to and including the Closing Date.

	 	(b)	 	SELLER’s sole and exclusive responsibilities concerning the
provision of data processing services to or for the Deposit Accounts of the
Offices after the Closing Date, if any, shall be as set forth in this Section
7.2(b). As soon as practicable following the date of this Agreement, SELLER shall
provide BUYER with applicable product functions and specifications relating
to the data processing support required for the Deposit Accounts, Office
Loans, and safe deposit business (if such data processing support currently
is provided with respect to such business) maintained at the

41

 

	 	 	 	Offices (such
Deposit Accounts, Office Loans and safe deposit business, if applicable,
hereinafter called the “Accounts”). As soon as practicable following the
date of this Agreement, SELLER shall provide to BUYER file formats relating
to the Accounts and up to three (3) sets of test tapes or other media
reasonably acceptable to BUYER related to the Accounts in generic form which
are machine readable in form specified by BUYER. By not later than 3:00
P.M. local Wooster, Ohio time on the business day immediately following the
Closing Date, SELLER shall make the foregoing documents and materials
available for pick-up by BUYER. BUYER shall review and analyze such
materials including, but not limited to, the file formats and tapes or other
such media, and shall advise SELLER in writing of any defects or concerns
relating thereto not later than ten (10) business days following receipt
thereof.

	 	(c)	 	Prior to the Closing Date, SELLER shall cooperate with BUYER in
making Transferred Employees available at reasonable times for whatever program
of training BUYER deems advisable; provided, however, that BUYER shall conduct
such training program in a manner that does not materially interfere with or
prevent the performance of the normal duties and activities of such Transferred
Employees, and BUYER shall reimburse SELLER for any employee expenses incurred
by SELLER in connection with such training. BUYER shall make request of SELLER
for training opportunities prior to the Closing Date and consent by SELLER
shall not be unreasonably withheld. Such requests, shall specify the time,
duration and place of such training.

	 	(d)	 	SELLER shall cooperate with BUYER to make provision for the
installation of teller and platform equipment in the Offices subject to
approval by SELLER; provided, however, that BUYER shall arrange for the
installation and placement of such equipment at such times and in a manner
that does not significantly interfere with the normal business activities
and operation of SELLER or the Offices.

42

 

	 	(e)	 	SELLER shall resign as custodian of each IRA account maintained
at the Offices and assign the custodianship of such accounts to BUYER upon
Closing subject to receipt of applicable customer consents and other provisions
of this Agreement including the provisions of section 8.10 hereof.

	 	(f)	 	SELLER shall terminate its ATM/debit card service effective as
of close of business on the business day preceding the Closing Date or such
other date and time as SELLER and BUYER may agree. SELLER shall have no
obligation with respect to conversion or change over with respect to direct
deposit or payroll and retirement payments service relating to the Deposit
Accounts following the Closing and, further, BUYER shall assume all
responsibility and liability with respect thereto following the Closing.
SELLER will continue to redirect and/or pass through relevant Automated
Clearing House (“ACH”) transactions on Deposit Accounts for a period of ninety
(90) days following the Closing Date.

	 	(g)	 	As of the opening of business on the first business day after
the Closing Date, SELLER and BUYER shall provide the appropriate Federal
Reserve Bank (the “FRB”) with all information necessary in order to expedite
the clearing and sorting of all checks, drafts, instruments and other
commercial paper relative to the Deposit Liabilities and/or the Office Loans
(hereinafter collectively referred to as “Paper Items”). BUYER shall bear all
charges and costs imposed by the FRB in connection with the reassignment of
account number ranges for sorting the Paper Items.

	 	 	 	In the event the FRB and/or any other regional or local clearinghouse for
negotiable instruments fails, refuses or is unable to direct sort such Paper
Items for delivery to BUYER with the result that such Paper Items are
presented to SELLER, by not later than 3:00 p.m. local time on each business
day following the Closing and continuing for ninety (90) days after the
Closing, SELLER will make available to BUYER for pick up from SELLER’s
offices or the offices of SELLER’s agent and/or processor

43

 

	 	 	 	all of the Paper
Items which are received by SELLER from the FRB and/or any regional or local
clearinghouse during the morning of each such business day on an
“as-received basis.” At the same time SELLER shall also make available to
BUYER information and records, including but not limited to systems
printouts, concerning such Paper Items and concerning incoming ACH items as
well as outstanding ATM transactions. Such information and records,
including but not limited to systems printouts, will utilize the most recent
account number designated by SELLER for each of the Deposit Accounts and/or
the Office Loans. BUYER shall initiate appropriate Notification of Change
requests relating to appropriate routing matters at the sole expense of
BUYER within thirty (30) days following the Closing Date. Except as
otherwise expressly provided herein, SELLER shall provide the foregoing at
no charge to BUYER for a period not to exceed thirty (30) days from the
Closing Date, except that BUYER shall pay any charges assessed to SELLER by
the FRB, any national or local clearinghouse and/or SELLER’s agent and/or
processor to the extent such assessments relate to the Deposit Accounts or
Office Loans. BUYER shall be responsible for pick up of the data to be
provided by SELLER. Except as otherwise expressly provided herein, BUYER
shall be responsible for processing any and all ACH returns received
subsequent to the Closing directly through the appropriate Federal Reserve
Bank. SELLER and BUYER shall arrange for appropriate daily settlement
between the parties in order that the transmission of all monies associated
with the matters set forth in this Section 7.2(g) might be affected
promptly.

	 	 	 	SELLER shall not be liable to BUYER for any failure to provide the data
required by this Section 7.2(g) to the extent any such failure results from
causes beyond SELLER’s control including war, strike or other labor
disputes, acts of God, errors or failures of the FRB, and/or a participating
regional or local clearinghouse, or equipment failure or other emergency

44

 

	 	 	 	wherein SELLER and/or its agent processor has been unable to process
inclearings from the FRB or such clearinghouse.

	 	(h)	 	SELLER shall, not earlier than the time of procurement of all
regulatory approvals required for consummation of the transaction contemplated
by this Agreement nor later than twenty (20) days prior to the Closing Date,
notify all depositors of the Offices and all borrowers of any Office Loan by
letter acceptable to BUYER, produced in, if appropriate, several similar, but
different forms calculated to provide necessary and specific information to the
owners of particular types of accounts and/or loans, of BUYER’s pending
assumption of the Deposit Liabilities and acquisition of the Office Loans
hereunder, and, in appropriate instances, notify depositors that on and after
the Closing Date certain SELLER deposit-related services and/or SELLER’s debit
card and ATM services, will be terminated. The expenses of the printing,
processing and mailing of such letter notices shall be shared equally by BUYER
and SELLER.

	 	(i)	 	For a period of sixty (60) days after the Closing Date, SELLER
will forward to BUYER, within two (2) business days of receipt, payments
received by SELLER with respect to the Office Loans. BUYER will forward,
within two (2) business days of receipt, payments received by BUYER with
respect to any loans not assigned to BUYER under this Agreement. BUYER and
SELLER further agree to refer customers to the offices of the other when such
customers present payments over the counter to the party not holding their
respective loan. BUYER shall reimburse SELLER within thirty (30) days of
notice by SELLER to BUYER for any payments tendered by borrowers which were
credited to the outstanding balance of any Office Loan prior to the Closing
Date and which are subsequently returned or otherwise withdrawn for any reason
and SELLER shall assign to BUYER any rights of SELLER to recovery of
such payments as against the relevant borrower.

45

 

	 	(j)	 	SELLER shall forward notice to appropriate carriers for
single premium prepaid life and A&H/Disability insurance related to the Office
Loans (the “Insured Office Loans”) of BUYER’s acquisition of the Insured
Office Loans within thirty (30) days following the Closing Date. Such notice
shall identify BUYER as the new obligee of the Insured Office Loans and shall
direct the insurance carriers to forward any premium refunds otherwise payable
to SELLER with respect to the Insured Office Loans following the Closing (the
“Premium Refunds”) to BUYER. In the event that, following the Closing, any
such Insured Office Loans are paid in full prior to maturity and BUYER
receives a Premium Refund, BUYER shall credit the account of such Insured
Office Loan customer with the appropriate portion of any such Premium Refund.
The Premium Settlement Payment by SELLER shall constitute the only obligation
of SELLER to BUYER with respect to matters pertaining to Premium Refunds, and
BUYER shall be responsible for any and all payments or credits due or owing
the Insured Office Loan customers with respect to payment in full of the
Insured Office Loans prior to maturity. The Premium Settlement Payment
defined in Section 1.4(d) herein shall be calculated as of the Closing Date
and based upon SELLER’s actual commission rate on loans with such insurance
coverage.
	 
	 	(k)	 	The duties and obligations of the parties in this section 7.2
shall survive the Closing.

	 	7.3	 	Overdrafts and Transitional Action. Overdrafts on the Deposit Accounts will be
the responsibility and risk of BUYER except to the extent that such overdrafts are
thirty (30) days or more past due..
	 
	 	7.4	 	ATMs and Debit Cards.

	 	(a)	 	SELLER shall provide to BUYER, no later than sixty (60) days
prior to the Closing Date, a test tape, along with a file format or file layout
and a production tape thirty (30) days before the Closing Date, containing
customer name, card number, withdrawal limits, the Deposit Accounts

46

 

	 	 	 	activated by, accessible to or committed to such cards issue dates and/or
open dates, last transaction dates, and expiration dates as to all ATM and
debit cards issued to customers of the Offices and shall notify the
appropriate processor to deactivate the operation of the such ATM and debit
cards completely or to deactivate or disconnect the Deposit Accounts from
such ATM and debit cards no later than the business day cutoff on the date
prior to the Closing Date so that all activity generated by the such ATM
and debit cards shall have settled prior to the Closing Date. All
transactions and activity related to the SELLER ATM and debit cards for
Deposit Accounts transferred to BUYER following the Closing Date which are
received or forwarded to SELLER will be accepted and forwarded by SELLER to
BUYER along with all corresponding funds. SELLER thereafter agrees to
immediately notify its processor to deactivate such ATM and debit cards and
to forward all transactions related thereto directly to BUYER.

	 	(b)	 	SELLER agrees to deactivate the ATMs located at the Offices on
or before the business day cutoff on the day prior to the Closing Date.
Thereafter, BUYER shall reconfigure the ATMs to its standards for activation
after the business day cutoff on the Closing Date.
	 
	 	(c)	 	BUYER and SELLER agree to cooperate with each other to assure
that all transactions originated through the ATM or originated with ATM cards
prior to or on the Closing Date shall be for the account of SELLER and all
transactions originated after the Closing Date shall be for the account of
BUYER. A post closing adjustment shall be made in the manner set forth in
Section 6.4 hereof to reflect all such transactions which cannot be reasonably
calculated as of the Closing.
	 
	 	(d)	 	For a period of four (4) years from the Closing, BUYER shall
permit any customer or employee of SELLER to use BUYER’s ATMs located at the
Offices without the imposition of any transaction fee, surcharge or “foreign
use” charges by BUYER.

47

 

	 	(e)	 	The obligations of the parties under this Section 7.4 shall
survive the Closing.

	 	7.5	 	Environmental Matters.

	 	(a)	 	Within thirty (30) days of the date of this Agreement, SELLER
shall provide to BUYER, at SELLER’s expense, copies of Phase I environmental
site assessments (the “Phase I Assessments” herein) for all Owned Real Estate.
	 
	 	(b)	 	If such Phase I Assessments reasonably indicated the necessity
or desirability of further investigation to determine whether or not an
Environmental Hazard exists at such Owned Real Estate, BUYER shall notify
SELLER in writing, not later than ten (10) days receipt of same, of BUYER’ s
desire to have an environmental consultant selected by BUYER (the
“Environmental Consultant”), to the extent reasonable and appropriate, conduct
Phase II environmental site assessments ( the “Phase II Assessments” herein).
Any such further investigation or testing shall be conducted in such a manner
so as not to interfere with the normal operation of the Office(s) involved.
All such Phase II Assessments shall be (i) conducted at BUYER’s expense, (ii)
treated as information subject to Section 8.1 of this Agreement, and (iii)
completed not less than sixty (60) days after the signing of this Agreement.
	 
	 	(c)	 	SELLER shall have a period of two (2) business days from
receipt of such notice to elect, at its sole option, to consent to conduct of
the Phase II Assessment or BUYER may elect to terminate this Agreement.

	 	(i)	 	In the event that the Phase II Assessment is
conducted and the Environmental Consultant discovers an Environmental
Hazard during any such Phase II Assessment at any single parcel of
Owned Real Estate, the remediation of which, in the reasonable judgment
of the Environmental Consultant, is or would be the responsibility of
BUYER should it acquire such Owned Real Estate, BUYER may, at its sole
option, elect to terminate this

48

 

	 	 	 	Agreement or to lease from SELLER such single parcel of Owned Real
Estate pursuant to a Lease Agreement with terms satisfactory to BUYER
at its sole discretion.
	 
	 	(ii)	 	During the term of such Lease Agreement, in the
event that SELLER shall deliver to BUYER a report of a qualified
environmental engineer or consultant, acceptable in form and content to
BUYER, certifying that the Environmental Hazard, at or on any such
parcel of Owned Real Estate which is the subject of the Lease
Agreement, has been remediated to the extent reasonably required under
applicable Environmental Laws, BUYER may elect to purchase such parcel
of Owned Real Estate at the net book value as of the Closing Date.

	 	(d)	 	BUYER agrees that it and the Environmental Consultant shall
conduct any Phase II Assessments or other investigations pursuant to this
Section with reasonable care and subject to customary practices among
environmental consultants and engineers, including, without limitation,
following completion thereof, the restoration of any site to the extent
practicable to its condition prior to such site assessment or investigation and
the removal of all monitoring wells.
	 
	 	(e)	 	Any lease of a parcel of Owned Real Estate pursuant to this
Section 7.5 shall in no way affect the transfer of any related assets or
liabilities, other than such parcel of Owned Real Estate, to the BUYER at the
Closing.
	 
	 	(f)	 	For purposes of this Section 7.5, the term “Environmental Law”
shall mean any Federal or state law, statute, rule, regulation, code, order,
judgment, decree, injunction, or agreement with any Federal or state
governmental authority, (i) relating to the protection, preservation, or
restoration of the environment (including, without limitation, air, water,
vapor, asbestos, surface water, groundwater, drinking water supply, surface
land, subsurface land, plant and animal life or any other natural resource) or
to human health or safety or (ii) the exposure to, or the use,

49

 

	 	 	 	storage, recycling, treatment, generation, transportation, processing,
handling, labeling, production, release or disposal of hazardous substances,
in each case as amended and now in effect. Environmental Laws include,
without limitation, the Clean Air Act (42 U.S.C. section 7401 et seq.); the
Comprehensive Environmental Response Compensation and Liability Act (42
U.S.C. section 9601 et seq.); the Federal Water Pollution Control Act (33
U.S.C. section 1251 et seq.); the Occupational Safety and Health Act (29
U.S.C. section 651 et seq.).
	 
	 	(g)	 	For purposes of this Section 7.5, the term “Environmental
Hazard” shall mean the presence of any Hazardous Substance in violation of, and
reasonably likely to require material remediation costs under, applicable
Environmental Laws.
	 
	 	(h)	 	For purposes of this Section 7.5, the term “Hazardous
Substance” shall mean any substance, whether liquid, solid, or gas, (i) listed,
identified or designated as hazardous or toxic to a level which requires
remediation under any Environmental Law including, without limitation,
asbestos; (ii) which, applying criteria specified in any Environmental Law, is
hazardous or toxic; or (iii) the use or disposal of which is regulated under
Environmental Law.

	 	7.6	 	Effect of Transitional Action. Except as and to the extent expressly set forth
in this Article 7, nothing contained in this Article 7 shall be construed to be an
abridgment or nullification of the rights, customs and established practices under
applicable banking laws and regulations as they affect any of the matters addressed in
this Article 7.

	8.	 	GENERAL COVENANTS AND INDEMNIFICATION.

	 	8.1	 	Confidentiality Obligations of BUYER. From and after the date hereof, BUYER
and its affiliates and parent company shall treat all information received from SELLER
concerning the business, assets, operations, and financial condition of SELLER and its
affiliates, and its and their
customers (including without limitation the Offices), as confidential, unless and to
the extent that BUYER can

50

 

	 	 	 	demonstrate that such information was already known to
BUYER and its affiliates, if any, or in the public domain or received from a third
person not known by BUYER to be under any obligation to SELLER; and BUYER shall not
use any such information for any purpose except in furtherance of the transactions
contemplated hereby (including in the filing of required regulatory applications,
provided that, if available, a confidential treatment request will be made regarding
such confidential information). Upon any termination of this Agreement, BUYER
shall, and shall cause its affiliates, if any, to, promptly return all documents and
workpapers containing, and all copies of, any such information received from or on
behalf of SELLER in connection with the transactions contemplated hereby. The
covenants of BUYER contained in this Section 8.1 are of the essence and shall
survive any termination of this Agreement, but shall terminate at the Closing, if it
occurs, with respect to any information that is limited solely to the activities and
transactions of the Offices; provided, however, that neither BUYER nor any of its
affiliates shall be deemed to have violated the covenants set forth in this Section
8.1 if BUYER shall be required to disclose any of such confidential information in
compliance with any legal process, order or decree issued by any court or agency of
government of competent jurisdiction. It is expressly acknowledged by SELLER that
all information provided to BUYER related to the Acquisition may be provided to
BUYER’s affiliates as necessary for the purpose of consummating the Acquisition. The
covenants and obligations of BUYER hereunder shall survive the Closing and any
earlier termination of this Agreement.
	 
	 	8.2	 	Confidentiality Obligations of SELLER. From and after the date hereof, SELLER,
its affiliates and its parent corporation shall treat all information received from
BUYER concerning BUYER’s business, assets, operations, and financial condition as
confidential, unless and to the extent SELLER can demonstrate that such information was
already known to SELLER or its affiliates or in the public domain, and SELLER shall not
use any such for any purpose except in furtherance of the transactions contemplated
hereby
(including in the filing of required regulatory applications, provided that, if
available, a

51

 

	 	 	 	confidential treatment request will be made regarding such confidential
information). Upon any termination of this Agreement, SELLER shall promptly return
all documents and workpapers containing, and all copies of, any such information
received from or on behalf of BUYER in connection with the transactions contemplated
hereby. The covenants of SELLER contained in this Section 8.2 are of the essence
and shall survive any termination of this Agreement; provided, however, that neither
SELLER nor any of its affiliates shall be deemed to have violated the covenants set
forth in this Section 8.2 if SELLER shall be required to disclose any of such
confidential information in compliance with any legal process, order or decree
issued by any court or agency of government of competent jurisdiction. It is
expressly acknowledged by BUYER that all information provided to SELLER related to
the Acquisition may be provided to SELLER’s affiliates for the purpose of
consummating the Acquisition. The covenants and obligations of SELLER hereunder
shall survive the Closing and any earlier termination of this Agreement.
	 
	 	8.3	 	Indemnification by SELLER. From and after the Closing Date, SELLER shall
indemnify, hold harmless, and defend BUYER from and against all claims, losses,
liabilities and obligations, including reasonable attorneys’ fees and expenses
(collectively, “Losses”), which BUYER may receive, suffer or incur arising out of,
relating to or in connection with any actions, suits or proceedings (other than any
proceedings to prevent or limit the consummation of the Acquisition) related to (i)
operations and transactions occurring prior to the Closing and which involve the Assets
transferred, the Deposit Liabilities, the Office Loans or the safe deposit business
being transferred to BUYER and (ii) the operations at the Offices prior to the Closing
Date. The obligations of SELLER under this Section 8.3 shall be contingent upon BUYER
giving SELLER written notice (i) of receipt by BUYER of any process and/or pleadings in
or relating to any actions, suits, or proceedings of the kinds described in this
Section 8.3, including copies thereof, and (ii) of the assertion of any claim or demand
relating to the operation of the Offices and/or the Deposit Liabilities or
Office Loans prior to the Closing, including, to the extent known to BUYER, the
identity of the person(s) or entity(ies) asserting such

52

 

	 	 	 	claim or making such demand
and the nature thereof, and including copies of any correspondence or other writings
relating thereto. All notices required by the preceding sentence shall be given
within fifteen days of the receipt by BUYER of any such process or pleadings or any
oral or written notice of the assertion of any such claims or demands. SELLER shall
have the right to take over BUYER’s defense in any such actions, suits, or
proceedings through counsel selected by SELLER, to compromise and/or settle the same
(provided that no such settlement shall be made without BUYER’s prior written
consent unless such settlement solely consists of the payment of money by SELLER and
BUYER receives a complete release in connection therewith) and to prosecute any
available appeals or review of any adverse judgment or ruling that may be entered
therein. The covenants and obligations of SELLER hereunder shall survive the
Closing and any earlier termination of this Agreement. The availability of
indemnification pursuant to this section shall not prevent BUYER from seeking any
other remedy otherwise available to BUYER, including remedies at law or in equity.
	 
	 	8.4	 	Indemnification by BUYER. From and after the Closing Date, BUYER shall
indemnify, hold harmless and defend SELLER from and against Losses which SELLER may
receive, suffer, or incur arising out of, relating to or in connection with (i) SELLER’
s compliance with instructions from BUYER made pursuant to Section 7.4 of this
Agreement and not related to any negligence or malfeasance on the part of SELLER, (ii)
operations and transactions occurring after the Closing and which involve the Assets
transferred, the Deposit Liabilities, the Office Loans, the safe deposit business being
transferred to BUYER or the other obligations and liabilities assumed pursuant to this
Agreement or (iii) the operations at the Offices after the Closing Date. The
obligations of BUYER under this Section 8.4 shall be contingent upon SELLER giving
BUYER written notice (i) of the receipt by SELLER of any process and/or pleadings in or
relating to any actions, suits or proceedings of the kinds described in this Section
8.4, including copies thereof,
and (ii) of the assertion of any claim or demand relating to the Assets transferred
to and/or the Deposit Liabilities or Office Loans and the other obligations and
liabilities assumed by BUYER on or after the Closing,

53

 

	 	 	 	including, to the extent known
to SELLER, the identity of the person(s) or entity(ies) asserting such claim or
making such demand and the nature thereof, and including copies of any
correspondence or other writings relating thereto. All notices required by the
preceding sentence shall be given within fifteen (15) days of the receipt by SELLER
of any such process or pleadings or any oral or written notice of the assertion of
any such claims or demands. BUYER shall have the right to take over SELLER’s
defense in any such actions, suits, or proceedings through counsel selected by
BUYER, to compromise and/or settle the same (provided that no such settlement shall
be made without SELLER’s prior written consent unless such settlement solely
consists of the payment of money by BUYER and SELLER receives a complete release in
connection therewith) and to prosecute any available appeals or review of any
adverse judgment or ruling that may be entered therein. The covenants and
obligations of BUYER hereunder shall survive the Closing and any earlier termination
of this Agreement. The availability of indemnification pursuant to this section
shall not prevent SELLER from seeking any other remedy otherwise available to
SELLER, including remedies at law or in equity.
	 
	 	8.5	 	Solicitation of Customers by BUYER Prior to Closing. At any time prior to the
Closing Date, BUYER will not, and will not permit any of its affiliates to, conduct any
marketing, media or customer solicitation campaign which is specifically and directly
targeted to induce customers whose Deposit Account liabilities are to be assumed or
Office Loans are to be acquired by BUYER pursuant to this Agreement to discontinue
their account or business relationships with SELLER or its affiliates.
	 
	 	8.6	 	Solicitation of Customers by SELLER After the Closing. From the date of this
Agreement and for four (4) years following the Closing Date, SELLER will not directly
solicit (a) deposit accounts from customers whose
Deposit Liabilities and/or Office Loans are assumed or acquired by BUYER pursuant to
this Agreement, (b) refinancing of Office Loans from borrowers whose Office Loans
are being acquired by BUYER hereunder or (c) any persons located within a ten (10)
mile radius of any Office to provide to such persons any retail, commercial,

54

 

	 	 	 	fiduciary, or wealth management services; provided, however, that the foregoing (a),
(b) and (c) shall not apply to (i) existing customers of SELLER offices other than
the Offices or persons who are employees or current directors of SELLER, Ohio Legacy
Corp or any other affiliate of SELLER (ii) any general advertisement or solicitation
by SELLER regarding its banking products or other services, or (iii) any person who
becomes a customer of SELLER or seeks the services provided by SELLER on such
person’s own initiative. The covenants and obligations of SELLER hereunder shall
survive the Closing.
	 
	 	8.7	 	Further Assurances. From and after the date hereof, each party hereto agrees
to execute and deliver such instruments and to take such other actions as the other
party hereto may reasonably request in order to carry out and implement this Agreement.
Without limiting the foregoing, SELLER agrees to execute and deliver such deeds, bills
of sale, acknowledgments, and other instruments of conveyance and transfer as, in the
reasonable judgment of BUYER, shall be necessary and appropriate to vest in BUYER the
legal and equitable title to the Assets of SELLER being conveyed to BUYER hereunder.
Further, BUYER, at its sole cost and expense, shall prepare and shall file, or shall
cause to be prepared and filed, with any appropriate third parties, any and all
documents and notices which are necessary and proper to transfer to BUYER any security
interests and other rights of SELLER in and to collateral securing the Office Loans.
SELLER shall cooperate with BUYER in executing any necessary and proper documents and
notices as may be appropriate in furtherance of the foregoing covenant and consistent
with the terms of this Agreement provided, however, that nothing contained herein shall
relieve BUYER of its obligations as set forth herein. The covenants and obligations of
the parties hereunder shall survive the Closing.
	 
	 	8.8	 	Operation of the Offices. Except as otherwise expressly provided in this
Agreement, after the Closing Date neither SELLER, nor its subsidiaries or affiliates
shall be obligated to provide for any managerial, financial, business, or other
services to the Offices, including without limitation any personnel, employee benefit,
data processing, accounting, risk management, or other services or assistance that may
have been provided to the Offices prior to the close of

55

 

	 	 	 	business on the Closing Date,
and BUYER shall take such action as may, in its judgment, be necessary or advisable to
provide for the ongoing operation and management of, and the provision of services and
assistance to, the Offices after the Closing Date. Upon the Closing, BUYER shall
change the legal name of the Offices and, except for any documents or materials in
possession of the customers of the Offices (including but not limited to deposit
tickets and checks), shall not use and shall cause the Offices to cease using any
signs, stationery, advertising, documents, or printed or written materials that refer
to the Offices by any name that includes the words “Premier Bank and Trust,” “Premier,”
“Ohio Legacy,” the name of any affiliate of SELLER or any derivations thereof.
Preceding the Closing, SELLER shall cooperate with any reasonable requests of BUYER
directed to obtaining specifications for the procurement of new signs of BUYER’s
choosing for installation by BUYER of new signs immediately following the close of
business on the Closing Date; provided, however, that BUYER’s receipt of all sign
specifications shall be obtained by BUYER in a manner that does not significantly
interfere with the normal business activities and operations of the Offices and shall
be at the sole and exclusive expense of BUYER. SELLER Will retain its signs located at
the Offices. BUYER shall remove the “skins” of SELLER’s signs with SELLER’s name and
logo and shall hold them pending retrieval by SELLER. It is understood by the parties
hereto that, with the exception of the “skins,” all mounting facilities, electronics
and components for the signs shall be considered as Fixed Assets for purposes of this
Agreement. The covenants and obligations of the parties hereunder shall survive the
Closing.
	 
	 	8.9	 	Information After Closing. For a period of seven (7) years following the Closing, upon written request of
SELLER to BUYER or BUYER to SELLER, as the case may be, such requested party shall
provide the requesting party with reasonable access to, or copies of, information
and records relating to the Offices which are then in the possession or control of
the requested party reasonably necessary to permit the requesting party or any of
its subsidiaries or affiliates to comply with or contest any applicable legal, tax,
banking, accounting, or regulatory policies or requirements, or any legal or
regulatory proceeding

56

 

	 	 	 	thereunder or requests related to customer relationships at
the Offices prior to Closing. In the event of any such requests, the requesting
party shall reimburse the requested party for the reasonable costs of the requested
party related to such request. The covenants and obligations of the parties
hereunder shall survive the Closing.
	 
	 	8.10	 	Individual Retirement Accounts. All IRAs related to the Offices that shall not
have been transferred to BUYER by the close of business on the thirtieth
(30th) day following the Closing may be retained by SELLER at its option,
and for any such IRAs retained, SELLER shall advise the account holders that it has
withdrawn its resignation as custodian or transfer the amount in such IRAs to the
account holders.
	 
	 	8.11	 	Covenant Not to Compete. From and after the Closing and for a period of four
(4) years following the Closing Date, SELLER and its affiliates shall not, and shall
not enter into any agreement to, (i) provide to any persons located within a ten (10)
mile radius of any Office retail, commercial, fiduciary, or wealth management services,
or (ii) own, operate or use any building, office or other facility or premises located
within a ten (10) mile radius of any Office for the purpose of operating a branch or
loan production office; provided, however, that the foregoing (i) shall not apply to
(A) existing customers of SELLER offices other than the Offices or persons who are
employees or current directors of SELLER, Ohio Legacy Corp or any other affiliate of
SELLER, (B) any general advertisement or solicitation by SELLER regarding its banking
products or other services, or (C) any person who becomes a
customer of SELLER or seeks the services provided by SELLER on such person’s own
initiative. The covenants and obligations of SELLER hereunder shall survive the
Closing.
	 
	 	8.12	 	Non-solicitation of Employees. BUYER and SELLER agree that for a period of
twenty-four (24) months from the date of this Agreement, or for a period of twenty-four
(24) months from such date as this Agreement may be terminated pursuant to Section 9
hereof, neither BUYER nor SELLER nor any of their respective subsidiaries or affiliates
will:

57

 

	 	(a)	 	Directly or indirectly solicit for employment or employ any
persons who are employees of the other party or its subsidiaries or affiliates
on the date hereof (except in the case of BUYER, the employment of any
Transferred Employees after the Closing); or
	 
	 	(b)	 	directly or indirectly solicit for employment or employ any
other persons who are employees of the other party or its subsidiaries or
affiliates on the date hereof and with whom the party has had contact or who
became known to the party solely in conjunction with any phase of the
Acquisition (except in the case of BUYER, the employment of any Transferred
Employees after the Closing) whether prior to execution of this Agreement or
subsequent thereto. As used solely in this Section 8.12(b), the term “solicit”
shall not be deemed to include general advertisements or general solicitations
that are not targeted or directed specifically to individuals who are employees
of the other party or its subsidiaries or affiliates. Subject to the
prohibitions contained in Section 8.12(a), nothing in this Section 8.12(b)
shall prohibit the parties or their respective affiliates or subsidiaries from
hiring a person covered by this Section 8.12(b) who contacts the hiring party
on their own initiative (and not in response to solicitation by the hiring
party in violation of this section) or a person covered by this subsection
8.12(b) who is no longer in the employ of the other party or its subsidiaries
or affiliates at the time of such solicitation.

	 	 	The covenants and obligations of the parties hereunder shall survive the Closing and any
earlier termination of this Agreement.

	9.	 	TERMINATION.

	 	9.1	 	Termination by Mutual Agreement. This Agreement may be terminated and the
transactions contemplated hereby may be abandoned by mutual consent of the parties
authorized by a vote of a majority of the Board of Directors (or by the vote of the
Executive Committee of such Board, if so empowered) of each of SELLER and BUYER.

58

 

	 	9.2	 	Termination by SELLER. This Agreement may be terminated and the transactions
contemplated hereby abandoned by a vote of a majority of the Board of Directors (or by the vote of
the Executive Committee of such Board, if so empowered) of SELLER:

	 	(a)	 	in the event of a material breach by BUYER of this Agreement;
	 
	 	(b)	 	in the event any of the conditions precedent specified in
Section 5.1 of this Agreement (i) has not been met as of the date specified for
such condition in this Agreement or if no date is specified, the Closing Date,
or (ii) in the reasonable determination of SELLER, is not capable of being met,
and in the case of either (i) or (ii), has not been waived by SELLER;
	 
	 	(c)	 	in the event any regulatory approval for the consummation of
the Acquisition is denied by any applicable regulatory authority;
	 
	 	(d)	 	on or after the date which is 180 calendar days following the
date of this Agreement (the “Termination Date”) if the Closing has not then
occurred unless the failure to consummate by such date is due to a breach of
this Agreement by SELLER;
	 
	 	(e)	 	in the event that there is a material adverse change in the
financial condition or results of operation of BUYER, or pending or threatened
litigation or claims with respect to the transactions contemplated by this
Agreement which, in the opinion of SELLER, may hinder or delay the ability of
the parties to consummate the transactions contemplated by this Agreement; or
	 
	 	(f)	 	in the event that BUYER fails to obtain by October 31, 2011,
any required regulatory approval of which it is BUYER’s responsibility to
obtain, and in the event of such a termination BUYER shall pay to SELLER the
actual costs, fees and expenses incurred by SELLER in connection with this
Agreement and the Acquisition, including, without limitation, attorneys’ fees,
filing costs and out of pocket expenses subject to a maximum payment of
$150,000; or

59

 

	 	(g)	 	in the event that SELLER or any of its affiliates receives from
a third party any unsolicited proposal to acquire both of the Offices that
SELLER, in its sole discretion, determines to pursue, and in the event of such
a termination (and only in such event), SELLER shall pay to BUYER a termination
fee of $150,000.

	 	 	 	The payment obligations of BUYER under Section 9.2(f) and the payment obligations of
SELLER under Section 9.2(g) shall survive any termination of this Agreement pursuant
to such sections.
	 
	 	9.3	 	Termination by BUYER. This Agreement may be terminated and the transactions contemplated
hereby abandoned by a vote of a majority of the Board of Directors (or by the vote of the Executive
Committee of such Board, if so empowered) of BUYER:

	 	(a)	 	in the event of a material breach by SELLER of this Agreement;
	 
	 	(b)	 	in the event any of the conditions precedent specified in
Section 5.2 of this Agreement (i) has not been met as of the date specified for
such condition in this Agreement or if no date is specified, the Closing Date,
or (ii) in the determination of BUYER, is not capable of being met, and in the
case of either (i) or (ii), has not been waived by BUYER;
	 
	 	(c)	 	in the event any regulatory approval required for consummation
of the Acquisition is denied by any applicable regulatory authority;
	 
	 	(d)	 	in the event that there is a material adverse change in the
financial condition or results of operation of the Offices, or pending or
threatened litigation or claims with respect to the transactions contemplated
by this Agreement which, in the opinion of BUYER, may hinder or delay the
ability of the parties to consummate the transactions contemplated by this
Agreement;
	 
	 	(e)	 	on or after the Termination Date if the Closing has not then
occurred unless the failure to consummate by such time is due to a breach of
this Agreement by BUYER;

60

 

	 	(f)	 	in the event any regulatory approval required for consummation
of the Acquisition is received but imposes any condition that, in BUYER’s
reasonable judgment, is unduly burdensome, such that the economic or business
benefits of the Acquisition would be materially adversely affected or which
condition would unduly burden the operations of BUYER upon completion of the
Acquisition; or
	 
	 	(g)	 	in the event that SELLER fails to obtain by October 31, 2011,
any required regulatory approval of which it is SELLER’s responsibility to
obtain, and in the event of such a termination SELLER shall pay to BUYER the
actual costs, fees and expenses incurred by BUYER in connection with this
Agreement and the Acquisition, including, without limitation, attorneys’ fees,
filing costs and out of pocket expenses subject to a maximum payment of
$150,000.

	 	 	 	The payment obligation of SELLER under Section 9.3(g) shall survive any termination
of this Agreement pursuant to such section.
	 
	 	9.4	 	Effect of Termination. The termination of this Agreement pursuant to Sections 9.2 or 9.3
of this Article 9 shall not release any party hereto from any liability or obligation to the other
party hereto arising from (i) a breach of any provision of this Agreement occurring prior to the
termination hereof or (ii) the failure of timely satisfaction of conditions precedent to the
obligations of a party to the extent that such failure of timely satisfaction is attributable to
the actions or inactions of such party.

	10.	 	MISCELLANEOUS PROVISIONS.

	 	10.1	 	Expenses. Except as and to the extent specifically allocated otherwise herein, each of
the parties hereto shall bear its own expenses, whether or not the transactions contemplated hereby
are consummated.
	 
	 	10.2	 	Certificates. All statements contained in any certificate (“Certificate”) delivered by or
on behalf of SELLER or BUYER pursuant to this Agreement or in connection with the transactions
contemplated hereby shall be deemed to be

61

 

	 	 	 	representations and warranties of the
party delivering the Certificate hereunder. Each such Certificate shall be executed on behalf
of the party delivering the Certificate by duly authorized officers of such party.

	 	10.3	 	Termination of Representations and Warranties. The respective representations and
warranties of SELLER and BUYER contained or referred to in this Agreement or in any Certificate,
schedule, or other instrument delivered or to be delivered pursuant to this Agreement shall
terminate at the Closing, except for:

	 	(a)	 	those representations and warranties contained in any limited
warranty deeds delivered by SELLER to BUYER at the Closing;
	 
	 	(b)	 	those representations and warranties contained in any bill of
sale relating to the Assets delivered by SELLER to BUYER at Closing;
	 
	 	(c)	 	those representations and warranties contained in any
instrument of assumption or in any Certificate delivered by BUYER to SELLER at
the Closing;
	 
	 	(d)	 	those representations and warranties contained in any
Certificate delivered by SELLER to BUYER at the Closing; and
	 
	 	(e)	 	the representations and warranties of SELLER contained in
Section 3.1(r), which shall only survive for a period of twelve (12) months
following the Closing Date.

	 	10.4	 	Waivers. Each party hereto, by written instrument signed by duly authorized officers of
such party, may extend the time for the performance of any of the obligations or other acts of the
other party hereto and may waive, but only as affects the party signing such instrument:

	 	(a)	 	any inaccuracies in the representations or warranties of the
other party contained or referred to in this Agreement or in any document
delivered pursuant hereto;
	 
	 	(b)	 	compliance with any of the covenants or agreements of the other
party contained in this Agreement;

62

 

	 	(c)	 	the performance (including performance to the satisfaction of a
party or its counsel) by the other party of such of its obligations set out
herein; and
	 
	 	(d)	 	satisfaction of any condition to the obligations of the waiving
party pursuant to this Agreement.

	 	10.5	 	Notices. All notices and other communications hereunder may be made by mail,
hand-delivery or by courier service and notice shall be deemed to have been given when received;
provided, however, if notices and other communications are made by nationally recognized overnight
courier service for overnight delivery, such notice shall be deemed to have been given one business
day after being forwarded to such a nationally recognized overnight courier service for overnight
delivery.

If to SELLER:

Premier Bank & Trust, National Association

6141 Whipple Avenue, N.W.

North Canton, Ohio 44720

Attn: Rick Hull, President

With a copy to:

Vorys, Sater, Seymour and Pease LLP

221 East 4th Street

Suite 200, Atrium Two

Cincinnati, Ohio 45202

Attn: Jason L. Hodges

If to BUYER:

The Commercial and Savings Bank of Millersburg, Ohio

91 North Clay Street

Millersburg, Ohio 44654

With a copy to:

63

 

Bricker & Eckler LLP

100 South 3rd Street

Columbs, Ohio 43215

Attn: Jeffery E. Smith

	 	 	 	or such other person or address as any such party may designate by notice to the
other parties, and shall be deemed to have been given as of the date received.
	 
	 	10.6	 	Parties in Interest; Assignment; Amendment. The rights and obligations of each party
hereto shall be binding upon, by the operation of law or otherwise, and shall inure to the benefit
of, the parties hereto and their respective successors, legal representatives, and assigns. Except
as expressly provided herein, no person who is not a party hereto (or a permitted successor or
assignee of such party) shall have any rights or benefits under this Agreement, either as a third
party beneficiary or otherwise. This Agreement cannot be amended or modified, except by a written
agreement executed by the parties hereto or their respective successors and assigns. This
Agreement may not be assigned by either party hereto without the prior written consent of the
other.
	 
	 	10.7	 	Headings. The headings and table of contents used in this Agreement are inserted for
convenience of reference only and are not intended to be a part of or to affect the meaning or
interpretation of this Agreement.
	 
	 	10.8	 	Terminology. The specific terms that are defined in various provisions of this Agreement
shall apply throughout this Agreement (including without limitation each schedule hereto), unless
expressly indicated otherwise. In addition, the following terms and phrases shall have the
meanings set forth for purposes of this Agreement (including such schedule):

	 	(a)	 	The term “business day” shall mean any day other than a
Saturday, Sunday, or a day on which either SELLER or BUYER is closed in
accordance with applicable law or regulation. Any action, notice, or right
which is to be taken or given or which is to be exercised or lapse on or by

64

 

	 	 	 	a
given date which is not a business day may be taken, given, or exercised, and
shall not lapse, until the next business day following.
	 
	 	(b)	 	The term “affiliate” shall mean, with respect to any person,
any other person directly or indirectly controlling, controlled by or under
common control with such person.
	 
	 	(c)	 	The term “Permitted Exceptions” shall mean, with respect to the
Owned Real Estate and the Leased Real Estate, (i) those five standard
exceptions appearing as Schedule B items in a standard ALTA owners or
leasehold title insurance policy, and any other exceptions, restrictions,
easements, rights of way, and encumbrances referenced in the Title Commitment
delivered by SELLER to BUYER as indicated in Section 2.1(b) of this Agreement
satisfactory to BUYER; (ii) statutory liens for current taxes or assessments
not yet due, or if due not yet delinquent, or the validity of which is being
contested in good faith by appropriate proceedings; (iii) such other liens,
imperfections in title, charges, easements, restrictions, and encumbrances (but
in all cases of Owned Real Estate excluding those which secure borrowed money)
which, individually and in the aggregate, do not materially detract from the
value of, or materially interfere with the present use of, any property subject
thereto or affected thereby as determined by BUYER at its sole discretion; and
(iv) such other exceptions as are approved by BUYER in writing.
	 
	 	(d)	 	The term “person” shall mean any individual, corporation
partnership, limited liability company, association, trust, or other entity,
whether business, personal, or otherwise.
	 
	 	(e)	 	Unless expressly indicated otherwise in a particular context,
the terms “herein,” “hereunder,” “hereto,” “hereof,” and similar references
refer to this Agreement in its entirety and not to specific articles, sections,
schedules, or subsections of this Agreement. Unless expressly indicated
otherwise in a particular context, references in this Agreement to enumerated
articles, sections, and subsections refer to designated portions

65

 

	 	 	 	of this
Agreement (but do not refer to portions of any schedule unless such
Schedule is specifically referenced) and do not refer to any other document.
	 
	 	(f)	 	The term “subsidiary” shall mean a corporation, partnership,
limited liability company, joint venture, or other business organization more
than 50% of the voting securities or interests in which are beneficially owned
or controlled by the indicated parent of such entity.
	 
	 	(g)	 	The term “overdraft protection” shall include all such programs
and product offerings that provide depositor protection for overdrafts
including, but not limited to, features sometimes referred to as “overdraft
privileges” and the loan relationships created thereby.
	 
	 	(h)	 	Capitalized terms used in this Agreement that are defined
elsewhere in this Agreement shall have the meanings ascribed to then, unless
the context otherwise requires.

	 	10.9	 	Press Releases. SELLER or BUYER, as the case may be, shall approve, in writing prior to
issuance, the form and substance of any press release or other public disclosure relating to any
matters relating to this Agreement issued by the other. Nothing contained herein shall restrict or
prohibit BUYER or SELLER from issuance of press releases or public disclosures which, based on the
advice of counsel, are required by applicable law or regulation or stock market requirement and
limited to information necessary for compliance with same.
	 
	 	10.10	 	Entire Agreement. This Agreement supersedes any and all oral or written agreements and
understandings heretofore made relating to the subject matter hereof and contains the entire
agreement of the parties relating to the subject matter hereof. All schedules, exhibits,
appendices to, and documents delivered in connection with, this Agreement are incorporated into
this Agreement by reference and made a part hereof.
	 
	 	10.11	 	Flexible Structure. References in this Agreement to federal or state laws or
regulations, jurisdictions, or chartering or regulatory authorities shall be

66

 

	 	 	 	interpreted broadly to allow maximum flexibility in consummating the transactions
contemplated hereby in light of changing business, economic, and regulatory conditions.
Without limiting the foregoing, in the event SELLER and
BUYER agree in writing to alter the legal structure of the Acquisition contemplated
by this Agreement references in this Agreement to such laws, regulations,
jurisdictions, and authorities shall be deemed to be altered to reflect the laws,
regulations, jurisdictions, and authorities that are applicable in light of such
change.
	 
	 	10.12	 	Governing Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of Ohio and the laws of the United States, as well as regulations issued by
relevant agencies thereof.
	 
	 	10.13	 	Counterparts. This Agreement may be executed in several counterparts and by facsimile
and electronic transmission (including by .pdf), each of which shall be deemed an original, but all
of which together shall constitute one and the same Agreement.
	 
	 	10.14	 	Tax Matters. BUYER and SELLER agree that they will file applicable tax returns and
other related schedules and documents related to their respective interests based on the
allocations in this Agreement.

[Remainder of page intentionally blank; signatures follow]

67

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective officers thereunto duly authorized, all as of the date first above written.

	 	 	 	 	 

	ATTEST:	 	The Commercial and Savings Bank of
	 	 	Millersburg, Ohio
	 
	 	 	 	 
	/s/ Peggy Conn

	 	By:
	 	/s/ Eddie L. Steiner
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:
	 	Chairman
	 

	 	 	 	 
	 
	 	 	 	 
	ATTEST:	 	Premier Bank and Trust, National Association
	 
	 	 	 	 
	/s/ Aubrey Merrill

	 	By:
	 	/s/ Rick L. Hull
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:
	 	President & CEO
	 

	 	 	 	 

68

 

SCHEDULES

TO

OFFICE PURCHASE AND ASSUMPTION AGREEMENT

	 	 	 
	Schedule A —

	 	Description of Owned Real Estate
	 
	 	 
	Schedule B —

	 	Description of Leased Real Estate and Office Lease
	 
	 	 
	Schedule C —

	 	Furniture, Fixtures and Equipment
	 
	 	 
	Schedule D —

	 	Assumed Contracts
	 
	 	 
	Schedule E —

	 	List of Leases, Safekeeping Items and Agreements

 

 

SCHEDULE A

DESCRIPTION OF OWNED REAL ESTATE

[Remainder of page intentionally blank]

A-1

 

SCHEDULE B

DESCRIPTION OF LEASED REAL ESTATE AND OFFICE LEASE

[Remainder of page intentionally blank]

B-1

 

SCHEDULE C

FURNITURE, FIXTURES AND EQUIPMENT

[Remainder of page intentionally blank]

C-1

 

SCHEDULE D

ASSUMED CONTRACTS

[Remainder of page intentionally blank]

 

 

SCHEDULE E

LIST OF LEASES, SAFEKEEPING ITEMS AND AGREEMENTS

[Remainder of page intentionally blank]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}]]