Document:

EX-10.22

Exhibit 10.22

FIRST AMENDMENT TO CREDIT AGREEMENT

     This FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of March 11, 2009 (this “Amendment”), is
executed by and among JAIX LEASING COMPANY, a Delaware corporation (the “Borrower”), the financial
institutions party to the Credit Agreement referred to below (the “Lenders”) and BANK OF AMERICA,
N.A., a national banking association, as administrative agent for the Lenders (in such capacity,
the “Administrative Agent”).

RECITALS:

     The Borrower, the Lenders and the Administrative Agent are parties to a Credit Agreement dated
as of September 30, 2008 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”).

     The Borrower has requested that the Administrative Agent and the Lenders make certain
amendments to the Credit Agreement. The Lenders and the Administrative Agent are willing to grant
the Borrower’s requests subject to the terms and conditions of this Amendment.

     NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

     1. Recitals. The foregoing Recitals are hereby made a part of this Amendment.

     2. Definitions. Capitalized words and phrases used herein within definition shall
have the respective meanings ascribed to such words and phrases in the Credit Agreement.

     (a) In addition, Section 1.01 of the Credit Agreement is hereby amended by adding or amending,
as the case may be, the following defined terms:

     “ERISA Event” means: (a) a Reportable Event with respect to a Plan; (b) a withdrawal
by a member of the Consolidated Group or any ERISA Affiliate from a Plan subject to Section
4063 of ERISA during a plan year in which it was a substantial employer (as defined in
Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a
withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by a member
of the Consolidated Group or any ERISA Affiliate from a Multiemployer Plan or notification
that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to
terminate, the treatment of a Plan amendment as a termination under Section 4041 or 4041A
of ERISA, or the commencement of proceedings by the PBGC to terminate a Plan or
Multiemployer Plan; (e) an event or condition which

 

 

constitutes grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Plan or Multiemployer Plan; or (f) the
imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but
not delinquent under Section 4007 of ERISA, upon a member of the Consolidated Group or any
ERISA Affiliate.

     “Sufficiently Funded” means, as of the most recent determination, the aggregate
“funding target attainment percentage” (as defined in Section 430(d)(2) of the Code) of the
Plans exceeds 70%.

     (a) Section 1.01 of the Credit Agreement is further amended by deleting the defined term
“Unfunded Pension Liability”.

     3. ERISA Compliance. Section 5.12 of the Credit Agreement is hereby amended in its
entirety to read as follows:

     “5.12 ERISA Compliance.

     (a) Each Plan is in compliance in all material respects with the applicable provisions
of ERISA, the Code and other Federal or state Laws. No contribution failure under Section
412 or 430 of the Code, Section 302 or 303 of ERISA or the terms of any Plan has occurred
with respect to any Plan sufficient to give rise to a Lien under Section 303(k) of ERISA or
otherwise to have a Material Adverse Effect. As of the date of the most recent
determination made for purposes of Section 430 of the Code with respect to the Plans, the
Plans were Sufficiently Funded. Each member of the Consolidated Group and each ERISA
Affiliate have made all required contributions to each Plan subject to Section 412 of the
Code, and no application for a funding waiver or an extension of any amortization period
pursuant to Section 412 of the Code has been made with respect to any such Plan.

     (b) There are no pending or, to the knowledge of the Borrower, threatened claims,
actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that
could reasonably be executed to have a Material Adverse Effect. No member of the
Consolidated Group nor any ERISA Affiliate has engaged in any prohibited transaction,
violated the fiduciary responsibility rules with respect to any Plan that has resulted or
could reasonably be expected to result in a Material Adverse Effect. No Plan is deemed an
“at-risk” plan under Section 303(i) of ERISA.

     (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no member
of the Consolidated Group nor any ERISA Affiliate has incurred, or reasonably expects to
incur, any liability under Title IV of ERISA with respect to any Plan (other than premiums
due and not delinquent under Section 4007 of ERISA); (iii) no member of the Consolidated
Group nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability
(and no event has occurred which, with the giving of notice under Section 4219 of

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ERISA, would result in such liability) under Section 4201 or 4243 of ERISA with
respect to a Multiemployer Plan; and (iv) no member of the Consolidated Group nor any ERISA
Affiliate has engaged in a transaction that could be subject to Section 4069 or 4212(c) of
ERISA.”

     4. Financial Statements. Sections 6.01(a) and (b) of the Credit Agreement are hereby
amended in their entirety to read as follows:

     “(a) promptly when available, but in any event within 120 days after the end of each
fiscal year of the Borrower (commencing with the fiscal year ended December 31, 2008), a
consolidated balance sheet of the Consolidated Group and of the Borrower separately as at
the end of such fiscal year, and the related statements of income or operations, changes in
shareholders’ equity, and cash flows for such fiscal year, on a consolidated basis for the
Consolidated Group and for the Borrower separately, setting forth in each case in
comparative form the figures for the previous fiscal year, all in reasonable detail and
prepared in accordance with GAAP, such consolidated statements of the Consolidated Group
and of the Borrower separately to be audited and accompanied by a report and opinion of an
independent certified public accountant of nationally recognized standing reasonably
acceptable to the Required Lenders, which report and opinion shall be prepared in
accordance with generally accepted auditing standards and shall not be subject to any
“going concern” or like qualification or exception or any qualification or exception as to
the scope of such audit;

     (b) promptly when available, but in any event within 45 days after the end of each of
the first three fiscal quarters of each fiscal year of the Consolidated Group (commencing
with the fiscal quarter ended March 31, 2009), a consolidated balance sheet of the
Consolidated Group and of the Borrower separately as at the end of such fiscal quarter, and
the related statements of income or operations, changes in shareholders’ equity, and cash
flows for such fiscal quarter and for the portion of the fiscal year then ended, on a
consolidated basis for the Consolidated Group and for the Borrower separately, setting
forth in each case in comparative form the figures for the corresponding fiscal quarter of
the previous fiscal year and the corresponding portion of the previous fiscal year, all in
reasonable detail, such consolidated statements of the Consolidated Group and of the
Borrower separately to be certified by the chief executive officer, chief financial
officer, treasurer or controller of Consolidated Group and the Borrower, as applicable, as
fairly presenting the financial condition, results of operations, shareholders’ equity and
cash flows of Consolidated Group and the Borrower, as applicable, in accordance with GAAP,
subject only to normal year-end audit adjustments and the absence of footnotes; and”

     5. Notices. A new Section 6.03(f) of the Credit Agreement is hereby added immediately
following Section 6.03(e) of the Credit Agreement to read as follows:

     “(f) if, as of the most recent date of determination: (i) for purposes of Section 430
of the Code, the aggregate “funding shortfall” (as defined in Section

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430(c)(4) of the Code, without reduction of assets of a Plan under Section
430(f)(4)(B) of the Code) of the Plans exceeds $15,000,000 or (ii) the Plans are not
Sufficiently Funded.”

     6. References. From the date hereof, ay and all references in the Loan Documents to
“Fifth Third Bank (Chicago)” shall be deemed to refer to “Fifth Third Bank, a Michigan Banking
Corporation”.

     7. Representations, Warranties And Covenants. To induce Administrative Agent and the
Lenders to enter into this Amendment, the Borrower hereby certifies, represents, warrants and
covenants that:

     (a) Authorization. The Borrower is duly authorized to execute and deliver
this Amendment and is and will continue to be duly authorized to borrow monies under the
Loan Documents, as amended hereby, and to perform their obligations under the Loan
Documents, as amended hereby.

     (b) No Conflicts. The execution and delivery of this Amendment and the
performance by the Borrower of its obligations under the Loan Documents to which the
Borrower is a party, as amended hereby, do not and will not conflict with any provision of
law or of the articles of incorporation or bylaws of the Borrower or of any material
agreement binding upon the Borrower.

     (c) Validity and Binding Effect. Each of the Loan Documents, as amended
hereby, are a legal, valid and binding obligation of the Borrower, enforceable against the
Borrower in accordance with their terms, subject to bankruptcy, insolvency and similar laws
affecting the enforceability of creditors’ rights generally and to general principles of
equity.

     (d) Compliance with Warranties. The representation and warranties set forth
in the applicable Loan Documents, as amended hereby, are true and correct in all material
respects with the same effect as if such representations and warranties had been made on
the date hereof (except to the extent stated to relate to a specific earlier date, in which
case such representations and warranties are true and correct as of such earlier date).

     (e) No Event of Default. As of the date hereof, no Default or Event of
Default under the Loan Documents, as amended hereby, has occurred and is continuing.

     8. Conditions Precedent. This Amendment shall become effective as of the date above
first written after receipt by the Administrative Agent of the following:

     (a) Amendment. This Amendment duly executed by all of the parties hereto.

     (b) Amendment to FreightCar Credit Agreement. The First Amendment to
FreightCar Credit Agreement, duly executed by all of the parties

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thereto.

     (c) Acknowledgement and Agreement of Guarantor. The Acknowledgement and
Agreement of Guarantor set forth at the end of this Amendment, duly executed by such
Guarantor.

     (d) Other Documents. Such other documents, certificates and/or opinions of
counsel as the Administrative Agent or the Lenders may request.

     9. General.

     (a) Governing Law; Severability. This Amendment shall be construed in
accordance with and governed by the internal laws of the State of New York applicable to
contracts made and to be performed entirely within such State, without regard to conflict
of laws principles. Wherever possible each provision of the Loan Documents and this
Amendment shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of the Loan Documents and this Amendment shall be prohibited by
or invalid under such law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision or the
remaining provisions of the Loan Documents and this Amendment.

     (b) Successors and Assigns. This Amendment shall be binding upon the
Borrower, the Administrative Agent, the Lenders and their respective successors and
assigns, and shall inure to the benefit of the Borrower, the Administrative Agent, the
Lenders and their respective successors and assigns.

     (c) Continuing Force and Effect of Loan Documents. Except as specifically
modified or amended by the terms of this Amendment, all other terms and provisions of the
Loan Documents are incorporated by reference herein, and in all respects, shall continue in
full force and effect. The Borrower, the Administrative Agent, and the Lenders by
execution of this Amendment, hereby reaffirms, assumes and binds themselves to all of the
obligations, duties, rights, covenants, terms and conditions that are contained in the Loan
Documents and all other documents executed in connection therewith, including all
guaranties, as applicable.

     (d) Expenses. The Borrower shall pay all reasonable out-of-pocket costs and
expenses of the Administrative Agent (including the reasonable fees, charges and
disbursements of counsel for the Administrative Agent) in connection with the preparation
of this Amendment and other related Loan Documents.

     (e) Release. The Borrower, by signing this Amendment, each hereby absolutely
and unconditionally releases and forever discharges the Administrative Agent and the
Lenders, and any and all participants, parent corporations, subsidiary corporations,
affiliated corporations, insurers, indemnitors, successors and assigns thereof, together
with all of the present and former directors, officers, agents and employees of any of the
foregoing, from any and all claims, demands

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or causes of action of any kind, nature or description, whether arising in law or
equity or upon contract or tort or under any state or federal law or otherwise, which the
Borrower has had, now has or has made claim to have against any such person for or by
reason of any act, omission, matter, cause or thing whatsoever arising from the beginning
of time to and including the date of this Amendment, whether such claims, demands and
causes of action are matured or unmatured or known or unknown.

     (f) Counterparts. This Amendment may be executed in any number of
counterparts and by the different parties hereto on separate counterparts and each such
counterpart shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same Agreement. Receipt of an executed signature page to this
Agreement by facsimile or other electronic transmission shall constitute effective delivery
thereof. Electronic records of executed Loan Documents maintained by the Lenders shall
deemed to be originals.

Signature page follows

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     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above
written.

	 	 	 	 	 
	 	JAIX LEASING COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

(Signature page to First Amendment to Credit Agreement)

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as Administrative

Agent

 	 
	 	By:  	 	 
	 	 	Name:  	Michael Brashler 	 
	 	 	Title:  	Vice President 	 
	 

(Signature page to First Amendment to Credit Agreement)

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	Robert W. Hart 	 
	 	 	Title:  	Senior Vice President 	 
	 

(Signature page to First Amendment to Credit Agreement)

 

 

	 	 	 	 	 
	 	FIFTH THIRD BANK, A MICHIGAN  BANKING 

CORPORATION, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

(Signature page to First Amendment to Credit Agreement)

 

 

ACKNOWLEDGMENT AND AGREEMENT OF GUARANTOR

The undersigned hereby expressly: (a) consents to the execution of the foregoing Amendment; (b)
acknowledges that the Borrower’s “Obligations” (as defined in the Credit Agreement referred to in
the foregoing Amendment) includes all of the obligations and liabilities owing from the Borrower to
the Administrative Agent and the Lenders, including, but not limited to, the obligations and
liabilities of the Borrower to the Administrative Agent and the Lenders under and pursuant to the
Loan Documents, as the case may be, as amended from time to time, and as evidenced by the notes
delivered in connection therewith, as the same may be modified, extended and/or replaced from time
to time; (c) reaffirms, assumes and binds itself in all respects to all of the obligations,
liabilities, duties, covenants, terms and conditions that are contained in the Guaranty Agreement
dated as of September 30, 2008, executed by the undersigned for the benefit of the Administrative
Agent (as amended, restated, supplemented or otherwise modified form time to time, the “Guaranty");
(d) consents to the terms (including, without limitation, the release set forth in Paragraph 9(e)
of the Amendment) and execution thereof; (e) agrees that all such obligations and liabilities under
the Guaranty shall continue in full force and that the execution and delivery of this Amendment to,
and its acceptance by, the Administrative Agent and the Lenders shall not in any manner whatsoever
(i) impair or affect the liability of the undersigned to the Administrative Agent under the
Guaranty; (ii) prejudice, waive, or be construed to impair, affect, prejudice or waive the rights
and abilities of Administrative Agent or the Lenders at law, in equity or by statute, against the
undersigned pursuant to their Guaranty; and/or (iii) release or discharge, nor be construed to
release or discharge, any of the obligations and liabilities owing to the Administrative Agent and
the Lenders by the undersigned under the Guaranty; and (f) represents and warrants that each of the
representation and warranties set forth in the Guaranty are true and correct in all material
respects with the same effect as if such representations and warranties had been made on the date
hereof, (except to the extent stated to relate to a specific earlier date, in which case such
representations and warranties are true and correct as of such earlier date).

	 	 	 	 	 
	 	FREIGHTCAR AMERICA, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

(Acknowledgement to First Amendment to Credit Agreement)EX-10(B)

Exhibit 10(b)

LNB BANCORP, INC.

STOCK APPRECIATION RIGHTS PLAN

(Restated as of December 12, 2008)

ARTICLE 1

General Purpose of Plan; Definitions

     1.1 Name and Purposes. The name of this Plan is the LNB Bancorp, Inc. Stock Appreciation
Rights Plan. The purpose of this Plan is to enable LNB Bancorp, Inc. and its Affiliates to: (i)
attract and retain skilled and qualified officers and key employees who are expected to contribute
to the Company’s success by providing long-term incentive compensation opportunities; (ii) motivate
participants to achieve the long-term success and growth of the Company; and (iii) align the
interests of the participants with those of the Company’s shareholders. In order to achieve this
purpose, this Plan provides for the grant of stock appreciation rights related to the Company’s
Common Shares.

     1.2 Certain Definitions. Unless the context otherwise indicates, the following words used
herein shall have the following meanings whenever used in this instrument:

          (a) “Affiliate” means any corporation, partnership, joint venture or other entity, directly or
indirectly, through one or more intermediaries, controlling, controlled by, or under common control
with the Company, as determined by the Board of Directors in its discretion.

          (b) “Board of Directors” mean the Board of Directors of the Company, as constituted from time
to time.

          (c) “Code” means the Internal Revenue Code of 1986, as amended, and any lawful regulations or
guidance promulgated thereunder. Whenever reference is made to a specific Internal Revenue Code
section, such reference shall be deemed to be a reference to any successor Internal Revenue Code
section or sections with the same or similar purpose.

          (d) “Committee” means the committee administering this Plan as provided in Section 2.1.

          (e) “Common Shares” mean the common shares, $1.00 par value per share, of the Company.

          (f) “Company” means LNB Bancorp, Inc., a corporation organized under the laws of the State of
Ohio and, except for purposes of determining whether a Change in Control has occurred, any
corporation or entity that is a successor to LNB Bancorp, Inc. or substantially all of the assets
of LNB Bancorp, Inc. and that assumes the obligations of LNB Bancorp, Inc. under this Plan by
operation of law or otherwise.

          (g) “Date of Grant” means the date on which the Committee grants an SAR.

          (h) “Director” means a member of the Board of Directors.

 

 

          (i) “Eligible Employee” is defined in Article 4.

          (j) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any lawful
regulations or guidance promulgated thereunder.

          (k) “Exercise Price” means the exercise price per Share related to a Stock Appreciation Right.

          (l) “Fair Market Value” means the closing price of a Share as reported on The Nasdaq Stock
Market, or, if applicable, on any national securities exchange or automated quotation system on
which the Common Shares are principally traded, on the date for which the determination of Fair
Market Value is made, or, if there are no sales of Common Shares on such date, then on the most
recent immediately preceding date on which there were any sales of Common Shares. If the Common
Shares are not, or cease to be, traded on The Nasdaq Stock Market or any national securities
exchange or automated quotation system, the “Fair Market Value” of Common Shares shall be
determined pursuant to a reasonable valuation method prescribed by the Committee. Notwithstanding
the foregoing, as of any date, the “Fair Market Value” of Common Shares shall be determined in a
manner consistent with Code Section 409A and the guidance then-existing thereunder.

          (m) “Independent Director” means a Director who meets the definitions of the terms
“independent director” set forth in The Nasdaq Stock Market, Inc. rules and “non-employee director”
set forth in Rule 16b-3, or any successor definitions adopted by The Nasdaq Stock Market, Inc. and
Securities and Exchange Commission, respectively, and similar requirements under any other
applicable laws and regulations.

          (n) “Plan” means this LNB Bancorp, Inc. Stock Appreciation Rights Plan, as amended from time
to time.

          (o) “Rule 16b-3” is defined in Article 11.

          (p) “Share” or “Shares” mean one or more of the Common Shares.

          (q) “Stock Appreciation Rights” and “SARs” mean any right to receive the appreciation in Fair
Market Value of a specified number of Shares over a specified Exercise Price pursuant to an award
granted under this Plan.

          (r) “Vested” means when the Stock Appreciation Right first becomes exercisable for payment.
The words “Vest” and “Vesting” have meanings correlative to the foregoing.

2

 

ARTICLE 2

Administration

     2.1 Authority and Duties of the Committee.

          (a) The Plan shall be administered by a Committee of at least three Directors who are
appointed by the Board of Directors. Unless otherwise determined by the Board of Directors, the
Compensation and Governance Committee shall serve as the Committee, and all of the members of the
Committee shall be Independent Directors. Notwithstanding the requirement that the Committee
consist exclusively of Independent Directors, no action or determination by the Committee or an
individual then considered to be an Independent Director shall be deemed void because a member of
the Committee or such individual fails to satisfy the requirements for being an Independent
Director, except to the extent required by applicable law.

          (b) The Committee has the power and authority to grant SARs pursuant to the terms of this Plan
to Eligible Employees.

          (c) The Committee has the sole and exclusive authority, subject to any limitations
specifically set forth in this Plan, to:

	 	(i)	 	select the Eligible Employees to whom SARs are granted;
	 
	 	(ii)	 	determine the timing of SARs granted;
	 
	 	(iii)	 	determine the number of Shares relating to each SAR granted hereunder;
	 
	 	(iv)	 	determine the other terms and conditions, not inconsistent with the terms of this Plan, of any
SAR granted hereunder; such terms and conditions include, but are not limited to, the Exercise
Price, the time or times when Stock Appreciation Rights may be exercised (which may be based on
performance objectives), any Vesting, acceleration or waiver of forfeiture restrictions, any
performance criteria applicable to an SAR, and any restriction or limitation regarding any Stock
Appreciation Right, based in each case on such factors as the Committee, in its sole discretion,
shall determine;
	 
	 	(v)	 	determine whether any conditions or objectives related to SARs have been met;
	 
	 	(vi)	 	subsequently modify or waive any terms and conditions of SARs, not inconsistent with the terms
of this Plan;
	 
	 	(vii)	 	adopt, alter and repeal such administrative rules, guidelines and practices governing this Plan
as it deems advisable from time to time;
	 
	 	(viii)	 	promulgate such administrative forms as it from
time to time deems necessary or appropriate for
administration of the Plan;
	 
	 	(ix)	 	construe, interpret, administer and implement the
terms and provisions of this Plan,

3

 

	 	 	 	any SAR and any
related agreements;

	 	(x)	 	correct any defect, supply any omission and
reconcile any inconsistency in or between the Plan,
any SAR and any related agreements; and
	 
	 	(xi)	 	otherwise supervise the administration of this Plan.

          (d) Notwithstanding the foregoing, all decisions made by the Committee pursuant to the
provisions of this Plan are final and binding on all persons, including the Company, its
shareholders and participants, but may be made by their terms subject to ratification or approval
by, the Board of Directors, another committee of the Board of Directors or shareholders.

          (e) The Company shall furnish the Committee with such clerical and other assistance as is
necessary for the performance of the Committee’s duties under the Plan.

     2.2 Delegation of Duties. The Committee may delegate ministerial duties to any other person or
persons, and it may employ attorneys, consultants, accountants or other professional advisers for
purposes of plan administration at the expense of the Company.

     2.3 Limitation of Liability. Members of the Board of Directors, members of the Committee and
Company employees who are their designees acting under this Plan shall be fully protected in
relying in good faith upon the advice of counsel and shall incur no liability except for gross or
willful misconduct in the performance of their duties hereunder.

ARTICLE 3

Limitations on Total SARs Granted Under the Plan

     3.1 Total Stock Appreciation Rights Limit. Subject to the provisions of this Article, SARs may
not be granted for more than an aggregate of 50,000 Shares under this Plan.

     3.2 Participant Limit. SARs may not be granted to any participant in any fiscal year for more
than a maximum of 10,000 Shares under this Plan.

     3.3 SARs Not Exercised. If any outstanding SAR, or portion thereof, expires, or is terminated,
canceled or forfeited without being exercised, the number of Shares related to such expired,
terminated, canceled or forfeited SAR, or portion thereof, shall no longer count toward the limit
expressed in Section 3.1 and shall again be available for the grant of SARs under this Plan.

     3.4 Dilution and Other Adjustments. In the event that the Committee determines that any
dividend or other distribution (whether in the form of cash, Shares, other securities or other
property), recapitalization, stock split, reverse stock split, reorganization, redesignation,
reclassification, merger, consolidation, liquidation, split-up, reverse split, spin-off,
combination, repurchase or exchange of Shares or other securities of the Company, issuance of
warrants or other rights to purchase Shares or other securities of the Company or other similar
corporate transaction or event affects the Shares such that an adjustment is determined by the
Committee to
be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits

4

 

intended to be made available under this Plan, then the Committee may, in such manner as it deems
equitable, adjust any or all of (i) the number and type of Shares (or other securities or other
property) which thereafter may be made the subject of SARs, (ii) the number and type of Shares (or
other securities or other property) subject to outstanding SARs, (iii) the limitations set forth
above and (iv) the purchase or exercise price or any performance objective with respect to any SAR;
provided, however, that the number of Shares or other securities covered by any SAR or to which
such SAR relates is always a whole number. Notwithstanding the foregoing, the foregoing adjustments
shall be made in compliance with Section 409A of the Code, to the extent necessary to avoid its
application or avoid adverse tax consequences thereunder.

ARTICLE 4

Participants

     4.1 Eligibility. Officers and all other key employees of the Company or any of its Affiliates
(each an “Eligible Employee”) who are selected by the Committee in its sole discretion are eligible
to participate in this Plan.

     4.2 Plan Agreements. SARs are contingent upon the participant’s execution of a written
agreement in a form prescribed by the Committee. Execution of a plan agreement shall constitute the
participant’s irrevocable agreement to, and acceptance of, the terms and conditions of the SAR set
forth in such agreement and of the terms and conditions of the Plan applicable to such SAR. Plan
agreements may differ from time to time and from participant to participant.

ARTICLE 5

Grant of Stock Appreciation Rights

     5.1 SAR Grant and Agreement. Each SAR granted under this Plan will be evidenced by minutes of
a meeting, or by a unanimous written consent without a meeting, of the Committee and by a written
agreement dated as of the Date of Grant and executed by the Company and by the appropriate
participant.

     5.2 Terms and Conditions of SARs. Stock Appreciation Rights will be subject to the following
terms and conditions:

          (a) Term. Any unexercised portion of a Stock Appreciation Right granted hereunder shall expire
at the end of the stated term of the Stock Appreciation Right. The Committee shall determine the
term of each Stock Appreciation Right at the time of grant, which term shall not exceed ten years
from the Date of Grant. The Committee may extend the term of a Stock Appreciation Right, in its
discretion, but not beyond the date immediately prior to the tenth anniversary of the original Date
of Grant. If a definite term is not specified by the Committee at the time of grant, then the term
is deemed to be ten years.

          (b) Exercisability. A Stock Appreciation Right is exercisable, in whole or in part, at such
time or times as determined by the Committee at or after the time of grant.

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          (c) Exercise Price. Subject to Section 3.4, the Exercise Price of a Stock Appreciation Right
will never be less than 100% of the Fair Market Value of the related Shares on the Date of Grant.
If a variable Exercise Price is specified at the time of grant, the Exercise Price may vary
pursuant to a formula or other method established by the Committee; provided, however, that such
formula or method will provide for a minimum Exercise Price equal to the Fair Market Value of the
Shares on the Date of Grant. Except as otherwise provided in Section 3.4, no subsequent amendment
of an outstanding Stock Appreciation Right may reduce the Exercise Price to less than 100% of the
Fair Market Value of the Shares on the Date of Grant. Nothing in this Section 5.2(c) shall be
construed as limiting the Committee’s authority to grant premium price Stock Appreciation Rights
which do not become exercisable until the Fair Market Value of the related Shares exceeds a
specified percentage (e.g., 110%) of the Exercise Price; provided, however, that such percentage
will never be less than 100%.

          (d) Method of Exercise. A Stock Appreciation Right may be exercised in whole or in part during
the term by giving written notice of exercise to the Company specifying the number of Shares in
respect of which the Stock Appreciation Right is being exercised. The notice must be given by or on
behalf of a person entitled to exercise the Stock Appreciation Right. Upon the exercise of a Stock
Appreciation Right, subject to satisfaction of projected tax withholding requirements pursuant to
Article 10, the holder of the Stock Appreciation Right is entitled to receive payment in cash equal
in value to the excess of the Fair Market Value of a Share on the exercise date over the Exercise
Price of the SAR multiplied by the number of Stock Appreciation Rights being exercised. At any time
the Fair Market Value of a Share on a proposed exercise date does not exceed the Exercise Price of
the SAR, the holder of the Stock Appreciation Right shall not be permitted to exercise such right.

          (e) SAR Payable Solely in Cash. All Stock Appreciation Rights granted under this Plan shall be
settled solely in cash, subject to the withholding requirements of this Plan. No Shares shall be
issued, paid or delivered under this Plan or any SAR, and no Shares shall be reserved by the
Company for such purpose.

          (f) Early Termination Prior to Expiration. If the employment of an optionee with the Company
or its Affiliates terminates for any reason, all unexercised Stock Appreciation Rights may be
exercised only in accordance with rules established by the Committee or as specified in the
relevant agreement evidencing such Stock Appreciation Rights. Such rules may provide, as the
Committee deems appropriate, for the expiration, continuation, or acceleration of the vesting of
all or part of such Stock Appreciation Rights.

     5.3 Other Terms and Conditions of SAR Grants. Stock Appreciation Rights are subject to such
other terms and conditions, not inconsistent with the provisions of this Plan, as are determined
from time to time by the Committee.

     5.4 Special Limitations. Unless an SAR agreement approved by the Committee provides otherwise,
Stock Appreciation Rights awarded under this Plan are intended to meet the
requirements for exclusion from coverage under Code Section 409A and all Stock Appreciation Right
awards shall be construed and administered accordingly.

6

 

ARTICLE 6

Transfers and Leaves of Absence

     6.1 Transfer of Participant. For purposes of this Plan, the transfer of a participant among
the Company and its Affiliates is deemed not to be a termination of employment.

     6.2 Effect of Leaves of Absence. For purposes of this Plan, the following leaves of absence
are deemed not to be a termination of employment:

          (a) a leave of absence, approved in writing by the Company, for military service, sickness or
any other purpose approved by the Company, if the period of such leave does not exceed 90 days;

          (b) a leave of absence in excess of 90 days, approved in writing by the Company, but only if
the employee’s right to reemployment is guaranteed either by a statute or by contract, and provided
that, in the case of any such leave of absence, the employee returns to work within 30 days after
the end of such leave; and

          (c) any other absence determined by the Committee in its discretion not to constitute a
termination of employment.

ARTICLE 7

Effect of Change in Control

     7.1 Change in Control Defined. “Change in Control” means the occurrence of any of the
following:

          (a) If individuals who, on the effective date of this Plan, constitute the Board of Directors
(the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board of
Directors; provided, however, that:

	 	(i)	 	any person becoming a director subsequent to the effective date of
this Plan, whose election or nomination for election was approved by
a vote of at least two-thirds (2/3) of the Incumbent Directors then
on the Board of Directors (either by a specific vote or by approval
of the proxy statement of the Company in which such person is named
as a nominee for director, without written objection by such
Incumbent Directors to such nomination), shall be deemed to be an
Incumbent Director, and
	 
	 	(ii)	 	no individual elected or nominated as a director of the Company
initially as a result of an actual or threatened election contest
with respect to directors or any other actual or threatened
solicitation of proxies by or on behalf of any person other than the
Board of Directors shall be deemed to be an Incumbent Director;

          (b) If any “person” (as such term is defined in Section 3(a)(9) of the Exchange Act, and as
used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a “beneficial owner”

7

 

(as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company
representing twenty percent (20%) or more of the combined voting power of the Company’s
then-outstanding securities eligible to vote for the election of the Board of Directors (the
“Company Voting Securities”); provided, however, that the events described in this paragraph (b)
shall not be deemed to be a Change in Control by virtue of any of the following acquisitions of
Company Voting Securities:

	 	(i)	 	by the Company or any Subsidiary,
	 
	 	(ii)	 	by any employee benefit plan sponsored or maintained by the Company or any
Subsidiary or by any employee stock benefit trust created by the Company or any
Subsidiary,
	 
	 	(iii)	 	by any underwriter temporarily holding securities pursuant to an offering of
such securities,
	 
	 	(iv)	 	pursuant to a Non-Qualifying Transaction (as defined in paragraph (c), below), or
	 
	 	(v)	 	a transaction (other than one described in paragraph (c), below) in which
Company Voting Securities are acquired from the Company, if a majority of the
Incumbent Directors approves a resolution providing expressly that the
acquisition pursuant to this subparagraph (v) does not constitute a Change in
Control under this paragraph (b);

          (c) The consummation of a merger, consolidation, share exchange or similar form of corporate
transaction involving the Company or any of its Subsidiaries that requires the approval of the
Company’s shareholders, whether for such transaction or the issuance of securities in the
transaction (a “Business Combination”), unless immediately following such Business Combination:

	 	(i)	 	more than fifty percent (50%) of the total voting power of
either (x) the corporation resulting from the consummation of
such Business Combination (the “Surviving Corporation”) or,
if applicable, (y) the ultimate parent corporation that
directly or indirectly has beneficial ownership of one
hundred percent (100%) of the voting securities eligible to
elect directors of the Surviving Corporation (the “Parent
Corporation”) is represented by Company Voting Securities
that were outstanding immediately prior to such
	 
	 	 	 	Business Combination (or, if applicable, represented by
shares into which such Company Voting Securities were
converted pursuant to such Business Combination), and such
voting power among the holders thereof is in substantially
the same proportion as the voting power of such Company
Voting Securities among the holders thereof immediately prior
to the Business Combination,
	 
	 	(ii)	 	no person (other than any employee benefit plan sponsored or
maintained by the Surviving Corporation or the Parent
Corporation or any employee stock benefit trust created by
the Surviving Corporation or the Parent Corporation) is or
becomes the beneficial owner, directly or indirectly, of
twenty percent (20%) or more of the total voting power of the
outstanding voting securities eligible to elect directors of
the 

8

 

	 	 	 	Parent Corporation (or, if there is no Parent
Corporation, the Surviving Corporation), and
	 
	 	(iii)	 	at least a majority of the members of the board of directors
of the Parent Corporation (or, if there is no Parent
Corporation, the Surviving Corporation) were Incumbent
Directors at the time of the Board of Director’s approval of
the execution of the initial agreement providing for such
Business Combination (any Business Combination which
satisfies all of the criteria specified in (i), (ii) and
(iii) of this Section 9.1(c) shall be deemed to be a
“Non-Qualifying Transaction”); or

          (d) If the shareholders of the Company approve a plan of complete liquidation or dissolution
of the Company or a sale of all or substantially all of the Company’s assets but only if, pursuant
to such liquidation or sale, the assets of the Company are transferred to an entity not owned
(directly or indirectly) by the Company’s shareholders.

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any
person acquires beneficial ownership of more than twenty percent (20%) of Company Voting Securities
as a result of the acquisition of Company Voting Securities by the Company which reduces the number
of Company Voting Securities outstanding; provided, however, that if (after such acquisition by the
Company) such person becomes the beneficial owner of additional Company Voting Securities that
increases the percentage of outstanding Company Voting Securities beneficially owned by such
person, a Change in Control shall then occur.

     7.2 Effect of Change in Control. In the event of a Change in Control of the Company, the
Committee shall have the right, in its sole discretion, to:

          (a) accelerate the exercisability of any or all SARs, notwithstanding any limitations set
forth in the Plan or SAR agreement;

          (b) cancel any or all outstanding SARs in exchange for the value of the shares of the
surviving or new corporation, cash, securities, evidences of indebtedness, other property or any
combination thereof receivable in respect of Shares related to the SARs upon consummation of the
transaction in question (the “Acquisition Consideration”), less the applicable exercise price
therefor;

          (c) cause the holders of any or all SARs to have the right thereafter and during the term of
the SAR to receive upon exercise thereof the Acquisition Consideration receivable upon the
consummation of such transaction by a holder of the number of Common Shares to which the SAR
relates, less the applicable exercise price therefor, or to convert such SAR into an appreciation
right relating to the surviving or new corporation in the transaction; or

          (d) take such other action as it deems appropriate to preserve the value of the SAR to the
Participant.

The Committee may provide for any of the foregoing in an SAR agreement in advance, may provide for
any of the forgoing in connection with a Change in Control, or do both. Alternatively, the
Committee shall also have the right to require any purchaser of the Company’s

9

 

 assets or stock, as
the case may be, to take any of the actions set forth in the preceding sentence as such purchaser
may determine to be appropriate or desirable.

          The manner of application and interpretation of the foregoing provisions of this Section 7.2
shall be determined by the Committee in its sole and absolute discretion.

ARTICLE 8

Transferability of SARs

     8.1 SARs Are Non-Transferable. Except as provided in Section 8.2, SARs are non-transferable
and any attempts to assign, pledge, hypothecate or otherwise alienate or encumber (whether by
operation of law or otherwise) any SAR shall be null and void.

     8.2 Inter-Vivos Exercise of SARs; Limited Transferability of Certain SARs. During a
participant’s lifetime, SARs are exercisable only by the participant or, as permitted by applicable
law and notwithstanding Section 8.1 to the contrary, the participant’s guardian or other legal
representative. Notwithstanding Section 8.1 to the contrary, SARs may be transferred by will and by
the laws of descent and distribution and to the extent required by a court order.

ARTICLE 9

Amendment and Discontinuation

     9.1 Amendment or Discontinuation of this Plan. The Board of Directors may amend, alter, or
discontinue this Plan at any time, provided that no amendment, alteration, or discontinuance may be
made:

          (a) which would materially and adversely affect the rights of a participant under any SAR
granted prior to the date such action is adopted by the Board of Directors without the
participant’s written consent thereto; and

          (b) without shareholder approval, if shareholder approval is required under applicable laws,
regulations or exchange requirements.

Notwithstanding the foregoing, this Plan may be amended without affecting participants’ consent to:
(i) comply with any law; (ii) preserve any intended favorable tax effects for the Company, the Plan
or participants; or (iii) avoid any unintended unfavorable tax effects for the Company, the Plan or
participants.

     9.2 Amendment of Grants. The Committee may amend, prospectively or retroactively, the terms of
any outstanding SAR, provided that no such amendment may be inconsistent with the terms of this
Plan (specifically including the prohibition on granting SARs with an Exercise Price less than 100%
of the Fair Market Value of the related Common Shares on the Date of Grant) or would materially and
adversely affect the rights of any holder without his or her written consent.

10

 

ARTICLE 10

Satisfaction of Projected Tax Liabilities

     10.1 In General. The Committee shall cause the Company to withhold any taxes which it
determines it is required by law or required by the terms of this Plan to withhold in connection
with any payments incident to this Plan. The participant or other recipient shall provide the
Committee with such additional information or documentation as may be necessary for the Committee
to discharge its obligations under this Section. The Company may withhold cash in an amount equal
to the amount which the Committee determines is necessary to satisfy the obligation of the Company
to withhold federal, state and local income taxes or other amounts incurred by reason of the grant
or exercise of an SAR or its disposition. Alternatively, the Company may require the holder to pay
to the Company such amounts, in cash, promptly upon demand.

ARTICLE 11

General Provisions

     11.1 No Implied Rights to SARs or Employment. No potential participant has any claim or right
to be granted an SAR under this Plan, and there is no obligation of uniformity of treatment of
participants under this Plan. Neither this Plan nor any SAR thereunder shall be construed as giving
any individual any right to continued employment with the Company or any Affiliate. The Plan does
not constitute a contract of employment, and the Company and each Affiliate expressly reserve the
right at any time to terminate employees free from liability, or any claim, under this Plan, except
as may be specifically provided in this Plan or in an SAR agreement.

     11.2 Other Compensation Plans. Nothing contained in this Plan prevents the Board of Directors
from adopting other or additional compensation arrangements, subject to shareholder approval if
such approval is required, and such arrangements may be either generally applicable or applicable
only in specific cases.

     11.3 Rule 16b-3 Compliance. The Plan is intended to comply with all applicable conditions of
Rule 16b-3 of the Exchange Act, as such rule may be amended from time to time (“Rule 16b-3”). All
transactions involving any participant subject to Section 16(a) of the Exchange Act shall be
subject to the conditions set forth in Rule 16b-3, regardless of whether such conditions are
expressly set forth in this Plan. Any provision of this Plan that is contrary to Rule 16b-3 does
not apply to such participants.

     11.4 Successors. All obligations of the Company with respect to SARs granted under this Plan
are binding on any successor to the Company, whether as a result of a direct or indirect purchase,
merger, consolidation or otherwise of all or substantially all of the business and/or assets of the
Company.

     11.5 Severability. In the event any provision of this Plan, or the application thereof to any
person or circumstances, is held illegal or invalid for any reason, the illegality or invalidity
shall

11

 

not affect the remaining parts of this Plan, or other applications, and this Plan is to be
construed and enforced as if the illegal or invalid provision had not been included.

     11.6 Governing Law. To the extent not preempted by Federal law, this Plan and all SAR
agreements pursuant thereto are construed in accordance with and governed by the laws of the State
of Ohio. This Plan is not intended to be governed by the Employee Retirement Income Security Act
and shall be so construed and administered.

ARTICLE 12

Effective Date

     12.1 Effective Date. The effective date of this LNB Bancorp, Inc. Stock Appreciation Rights
Plan is the date on which the Board of Directors approves it.

ARTICLE 13

Clawback of Plan Payments

     Notwithstanding any provision in the Plan to the contrary, in the event that a grant or
grants, or payment or payments, are made to “senior executive officer(s)” (as that term is defined
in accordance with Section 111(b)(3) of the Emergency Economic Stabilization Act of 2008 (“EESA”))
and it is later determined that the grant or grants, or payment or payments, were based on
materially inaccurate financial statements or on any other materially inaccurate performance metric
criteria, then in such event, to the extent necessary to comply with Section 111(b)(2)(B) of EESA,
shall the full amount of any and all payment(s) that have been made to such senior executive
officer(s) become immediately due and owing to the Company, and the senior executive officer(s) who
received such grant(s) or payment(s) shall forfeit or repay, as applicable, the full amount of such
grant(s) or payment(s) to the Company, in accordance with and in a manner that complies with the
requirements of Section 111(b)(2)(B) of EESA.

12

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