Document:

EX-10.4

 

Exhibit 10.4

Interest Rate Swap Transaction (REVISION)

The purpose of this letter agreement is to confirm the terms and conditions of the Transaction
entered into between:

JPMORGAN CHASE BANK, N.A.

(“JPMorgan”)

and

HARRIS INTERACTIVE INC

(the “Counterparty”)

on the Trade Date and identified by the JPMorgan Deal Number specified below (the “Transaction”).
This letter agreement constitutes a “Confirmation” as referred to in the Master Agreement specified
below, and supersedes any previous confirmation or other writing with respect to the transaction
described below.

The definitions and provisions contained in the 2006 ISDA Definitions (the “Definitions”), as
published by the International Swaps and Derivatives Association, Inc. are incorporated into this
Confirmation. In the event of any inconsistency between those definitions and provisions and this
Confirmation, this Confirmation will govern.

This Confirmation supplements, forms part of, and is subject to, the ISDA Master Agreement dated as
of 23 August 2007, as amended and supplemented from time to time (the ‘Agreement’), between
JPMORGAN CHASE BANK N.A. (‘JPMorgan’) and HARRIS INTERACTIVE INC (the ‘Counterparty’). All
provisions contained in the Agreement govern this Confirmation except as expressly modified below.

Page 1 of 7

 

 

The terms of the particular Interest Rate Swap Transaction to which this Confirmation relates are
as follows:

	 	 	 
	A. TRANSACTION DETAILS
	 	 
	 
	 	 
	JPMorgan Deal Number(s):

	 	6900043624393 / 00115009143
	 
	 	 
	Notional Amount:

	 	As set forth in the Notional Amount Schedule hereto
	 
	 	 
	Trade Date:

	 	23 August 2007
	 
	 	 
	Effective Date:

	 	21 September 2007
	 
	 	 
	Termination Date:

	 	21 September 2012 subject to adjustment in
accordance with the Modified Following Business
Day Convention.
	 
	 	 
	Fixed Amounts:
	 	 
	 
	 	 
	Fixed Rate Payer:

	 	Counterparty
	 
	 	 
	Fixed Rate Payer Payment Dates:

	 	The last day of each December, March, June and
September in each year, from and including 31
December 2007 to and including the Termination
Date, subject to adjustment in accordance with the
Modified Following Business Day Convention and
there will be an adjustment to the Calculation
Period.
	 
	 	 
	Fixed Rate:

	 	5.08000 percent
	 
	 	 
	Fixed Rate Day Count Fraction:

	 	Actual/360
	 
	 	 
	Business Days:

	 	New York, London
	 
	 	 
	Floating Amounts:
	 	 
	 
	 	 
	Floating Rate Payer:

	 	JPMorgan
	 
	 	 
	Floating Rate Payer Payment Dates:

	 	The last day of each December, March, June and
September in each year, from and including 31
December 2007 to and including the Termination
Date, subject to adjustment in accordance with the
Modified Following Business Day Convention and
there will be an adjustment to the Calculation
Period.

Page 2 of 7

 

 

	 	 	 
	Floating Rate for initial Calculation Period:
	 	5.23750 percent
	 
	 	 
	Floating Rate Option:
	 	USD-LIBOR-BBA
	 
	 	 
	Designated Maturity:
	 	3 Month
	 
	 	 
	Spread:
	 	None
	 
	 	 
	Floating Rate Day Count Fraction:
	 	Actual/360
	 
	 	 
	Reset Dates:
	 	The first day of each Calculation Period.
	 
	 	 
	Compounding:
	 	Inapplicable
	 
	 	 
	Business Days:
	 	New York, London
	 
	 	 
	Calculation Agent:
	 	JPMorgan, unless otherwise stated in the Agreement.

Notional Amount Schedule:

	 	 	 	 	 
	Effective From:	 	Notional Amount:
	21 September 2007
	 	USD	34,625,000.00	 
	31 December 2007
	 	USD	32,893,750.00	 
	31 March 2008
	 	USD	31,162,500.00	 
	30 June 2008
	 	USD	29,431,250.00	 
	30 September 2008
	 	USD	27,700,000.00	 
	31 December 2008
	 	USD	25,968,750.00	 
	31 March 2009
	 	USD	24,237,500.00	 
	30 June 2009
	 	USD	22,506,250.00	 
	30 September 2009
	 	USD	20,775,000.00	 
	31 December 2009
	 	USD	19,043,750.00	 
	31 March 2010
	 	USD	17,312,500.00	 
	30 June 2010
	 	USD	15,581,250.00	 

Page 3 of 7

 

 

	 	 	 	 	 
	Effective From:	 	Notional Amount:
	30 September 2010
	 	USD	13,850,000.00	 
	31 December 2010
	 	USD	12,118,750.00	 
	31 March 2011
	 	USD	10,387,500.00	 
	30 June 2011
	 	USD	8,656,250.00	 
	30 September 2011
	 	USD	6,925,000.00	 
	30 December 2011
	 	USD	5,193,750.00	 
	30 March 2012
	 	USD	3,462,500.00	 
	29 June 2012
	 	USD	1,731,250.00	 

B. ACCOUNT DETAILS

	 	 	 
	Payments to JPMorgan in USD:

	 	JPMORGAN CHASE BANK, N.A.

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

BIC: CHASUS33XXX
AC No: 099997979
	 
	 	 
	Payments to Counterparty in USD:

	 	As per your standard settlement instructions.
	 
	 	 
	C. OFFICES
	 	 
	 
	 	 
	JPMorgan:

	 	NEW YORK
	 
	 	 
	Counterparty:

	 	ROCHESTER

D. GOVERNING LAW

The laws of the State of New York, provided, however, that upon execution of the Master Agreement,
this Confirmation shall be governed by the law governing such Master Agreement.

E. DOCUMENTS TO BE DELIVERED

Each party shall deliver to the other, at the time of its execution of this Confirmation, evidence
of the incumbency and specimen signature of the person(s) executing this Confirmation, unless such
evidence has been previously supplied and remains true and in effect.

Page 4 of 7

 

 

F. RELATIONSHIP BETWEEN PARTIES

Each party will be deemed to represent to the other party on the date on which it enters into a
Transaction that (absent a written agreement between the parties that expressly imposes affirmative
obligations to the contrary for that Transaction):

(a) Non-Reliance. It is acting for its own account, and it has made its own independent decisions
to enter into that Transaction and as to whether that Transaction is appropriate or proper for it
based upon its own judgment and upon advice from such advisers as it has deemed necessary. It is
not relying on any communication (written or oral) of the other party as investment advice or as a
recommendation to enter into that Transaction; it being understood that information and
explanations related to the terms and conditions of a Transaction shall not be considered
investment advice or a recommendation to enter into that Transaction. No communication (written or
oral) received from the other party shall be deemed to be an assurance or guarantee as to the
expected results of that Transaction.

(b) Assessment and Understanding. It is capable of assessing the merits of and understanding (on
its own behalf or through independent professional advice), and understands and accepts, the terms,
conditions and risks of that Transaction. It is capable of assuming, and assumes the risks of that
Transaction.

(c) Status of Parties. The other party is not acting as a fiduciary for or an adviser to it in
respect of that Transaction.

Page 5 of 7

 

 

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing a
copy of this Confirmation and returning it to us or by sending to us a letter, telex or facsimile
substantially similar to this letter, which letter, telex or facsimile sets forth the material
terms of the Transaction to which this Confirmation relates and indicates agreement to those terms.
When referring to this Confirmation, please indicate: JPMorgan Deal Number(s): 6900043624393 /
00115009143

	 	 	 	 	 
	JPMorgan Chase Bank, N.A.	 	 
	 
	 	 	 	 
	/s/ Carmine Pilla	 	 
	 	 	 
	Name:

	 	Carmine Pilla	 	 
	Title:

	 	Vice President	 	 
	 
	 	 	 	 
	Accepted and confirmed as of the date first written:	 	 
	HARRIS INTERACTIVE INC	 	 
	 
	 	 	 	 
	/s/ Ronald E. Salluzzo	 	 
	 	 	 
	Name:

	 	Ronald E. Salluzzo	 	 
	Title:

	 	Chief Financial Officer	 	 
	Your reference number:                     	 	 

Page 6 of 7

 

 

Client Service Group

All queries regarding confirmations should be sent to:

JPMorgan Chase Bank, N.A.

	 	 	 
	Contacts
	 	 
	JPMorgan Contact

	 	Telephone Number
	 
	 	 
	Client Service Group

	 	(001) 3026344960
	 
	 	 
	Group E-mail address:
	 	 
	Facsimile:

	 	(001) 888 803 3606
	Telex:
	 	 
	Cable:
	 	 

Please quote the JPMorgan deal number(s): 6900043624393 / 00115009143.

Page 7 of 7EX-10.5

 

Exhibit 10.5

COMPENSATION ARRANGEMENT WITH EXECUTIVE OFFICER

     On October 18, 2007 the Compensation Committee of Harris Interactive Inc. approved an increase
in the annual base salary for Eric W. Narowski, Principal Accounting Officer, from $155,000 to
$170,000.EX-10.1

 

Exhibit 10.1

CHANGE IN CONTROL

SUPPLEMENTAL EXECUTIVE COMPENSATION AGREEMENT

This Agreement, effective as of the 8th day of August, 2007, by and between LNB BANCORP,

INC., an Ohio corporation (the “Company”), and DAVE S. HARNETT (“Executive”), is to EVIDENCE THAT:

     WHEREAS the Company considers the establishment and maintenance of a sound and vital
management team for the Company and its Subsidiaries (as defined in Section 1) to be essential to

protecting and enhancing the best interests of the Company and its shareholders; and

     WHEREAS the Company recognizes that, as is the case with many publicly held corporations, the
possibility of a change in control may arise and that such possibility may result in the departure
or distraction of management personnel to the detriment of the Company and its shareholders; and

     WHEREAS the Board of Directors of the Company (the “Board”) has determined that it is in the
best interests of the Company and its shareholders to secure Executive’s continued services for the
Company and/or its Subsidiaries and to ensure Executive’s continued and undivided dedication to
Executive’s duties in the event of any occurrence of a Change in Control (as defined in Section 1)
of the Company; and

     WHEREAS Executive and the Company acknowledge that the terms and conditions of this
Agreement shall apply only if a Change in Control occurs, except for the covenants contained in
Section 11 which shall apply in all circumstances; and

     WHEREAS Executive further acknowledges that this Agreement does not alter Executive’s status
as an “employee at will” with the Company;

     NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein
contained, and intending to be legally bound hereby, the Company and Executive (collectively, the
“Parties” and, individually, a “Party”) hereby agree as follows:

     1. Definitions. As used in this Agreement, the following terms shall have the
respective meanings set forth below:

(a) “Bonus Amount” means one (1) year of Executive’s base salary.

(b) “Cause” means any one or more of the following: (i) the willful and continued

failure of Executive to perform substantially Executive’s duties with the Company
or its Subsidiaries (other than any such failure resulting from Executive’s
Disability or any such failure subsequent to Executive being delivered a Notice of
Termination without Cause by the Company or its Subsidiaries or after Executive
delivering a Notice of Termination for Good Reason to the Company or its
Subsidiaries) after a written demand for substantial performance is delivered to
Executive by the Board which specifically identifies the manner in which the Board
believes that Executive has not substantially performed Executive’s duties and
provides Executive with three (3) days to correct such failure, or (ii) the willful
engaging by Executive in illegal conduct or gross misconduct which is injurious to
the Company or its Subsidiaries, or (iii) the conviction of Executive

42

 

of, or a plea
by Executive of nolo contendere to, a felony, or (iv) Executive’s breach of or
failure to perform any of the non-competition and non-disclosure covenants
contained in Section 11 of this Agreement or contained in any other document signed
by Executive and by the Company (or any Subsidiary). For purpose of this paragraph
(b), no act or failure to act by Executive shall be considered “willful” unless
done or omitted to be done by Executive in bad faith and without reasonable belief
that Executive’s action or omission was in the best interests of the Company and
its Subsidiaries. Any act or failure to act based upon authority given pursuant to
a resolution duly adopted by the Board, based upon the advice of counsel for the
Company, or based upon the instructions of the Company’s chief executive officer or
another senior officer of the Company shall be conclusively presumed to be done, or
omitted to be done, by Executive in good faith and in the best interests of the
Company and its Subsidiaries.

     (c) “Change in Control” means the occurrence of any one of the following events:

	 	(i)	 	if individuals who, on the date of this Agreement, constitute
the Board (the “Incumbent Directors”) cease for any reason to constitute at
least a majority of the Board; provided, however, that: (A) any person
becoming a director subsequent to the date of this Agreement, 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 (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 (B) 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 shall be deemed to be an Incumbent
Director;
	 
	 	(ii)	 	if any “person” (as such term is defined in Section 3(a)(9)
of the Securities Exchange Act of 1934, as amended (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” (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 (the “Company Voting Securities”); provided,
however, that the events described in this paragraph (ii) shall not be
deemed to be a Change in Control by virtue of any of the following
acquisitions: (A) by the Company or any Subsidiary, (B) 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, (C) by any underwriter temporarily holding securities pursuant
to an offering of such securities, (D) pursuant to a Non-Qualifying
Transaction (as defined in clause (iii) of this paragraph (c), below), (E)
pursuant to any acquisition by Executive or by any group of persons
including Executive (or any entity controlled by Executive or any group of
persons including Executive), or (F) a transaction (other than one
described in clause (iii) of this paragraph (c), below) in which Company
Voting Securities are acquired from the Company, if a majority of the
Incumbent Directors approves a resolution

43

 

	 	 	 	providing expressly that the
acquisition pursuant to this subparagraph (F) does not constitute a Change
in Control under this clause (ii);
	 
	 	(iii)	 	upon 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: (A) 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, (B) 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 Parent Corporation (or, if there is no Parent
Corporation, the Surviving Corporation), and (C) 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’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 (A), (B) and (C) above shall be deemed to be a
“Non-Qualifying Transaction”); or
	 
	 	(iv)	 	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.

44

 

	 	 	 	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.
	 
	 	 	 	Notwithstanding anything in this Agreement to the contrary, if (A) Executive’s employment
is terminated prior to a Change in Control for reasons that would have constituted a
Qualifying Termination if they had occurred following a Change in Control, (B) Executive
reasonably demonstrates that such termination (or event constituting Good Reason) was at
the request of a third party who had indicated an intention or taken steps reasonably
calculated to effect a Change in Control, and (C) a Change in Control involving such third
party (or a party competing with such third party to effectuate a Change in Control) does
occur, then (for purposes of this Agreement) the date immediately prior to the date of such
termination of employment (or event constituting Good Reason) shall be treated as a Change
in Control.

	 	(d)	 	“Date of Termination” means (1) the effective date on which Executive’s
employment by the Company and its Subsidiaries terminates as specified in a

prior written notice by the Company, a Subsidiary or Executive (as the
case may be) to the other, delivered pursuant to Section 9, or (2) if
Executive’s employment by the Company terminates by reason of death, the
date of death of Executive, or (3) if the Executive incurs a Disability,
the date of such Disability as determined by a physician chosen by the
Company. For purposes of determining the timing of payments and benefits
to Executive under Section 4, the date of the actual Change in Control
shall be treated as Executive’s Date of Termination. (e) “Disability”
means Executive’s inability to perform Executive’s then-existing duties
with the Company or its Subsidiaries on a full-time basis for at least one
hundred eighty (180) consecutive days as a result of Executive’s
incapacity due to physical or mental illness.
	 
	 	(f)	 	“Good Reason” means, without Executive’s express written consent, the
occurrence of any of the following events after a Change in Control:

	 	(i)	 	(A) any change in the duties or responsibilities (including reporting
responsibilities) of Executive that is inconsistent in any material
and
adverse respect with Executive’s positions, duties, responsibilities
or
status with the Company or its Subsidiaries immediately prior to such
Change in Control (including any material and adverse diminution of
such duties or responsibilities), or (B) a material and adverse
change in Executive’s titles or offices (including, if applicable,
membership on the Board) with the Company or its Subsidiaries as
existing immediately prior to such Change in Control;
	 
	 	(ii)	 	(A)a reduction by the Company or its
Subsidiaries in Executive’s rate of annual base salary as in effect
immediately prior to such Change in Control (or as such annual base
salary may be increased from time to time thereafter), or (B) the
failure by the Company or its Subsidiaries to pay

45

 

	 	 	 	Executive an annual
bonus (if any) in respect of the year in which such Change in Control
occurs;
	 
	 	(iii)	 	any requirement of the Company or its
Subsidiaries that Executive: (A) be based anywhere more than fifty
(50) miles from the office where Executive is located at the time of
the Change in Control, or (B) travel on Company or Subsidiary
business to an extent substantially greater than the travel
obligations of Executive immediately prior to such Change in Control;
	 
	 	(iv)	 	the failure of the Company or its
Subsidiaries to continue in effect any material employee benefit
plan, compensation plan, welfare benefit plan or other material
fringe benefit plan in which Executive is participating immediately
prior to such Change in Control or the taking of any action by the
Company or its Subsidiaries which would materially and adversely
affect Executive’s participation in or reduce Executive’s benefits
under any such plan, unless Executive is permitted to participate in
other plans providing Executive with substantially equivalent
benefits in the aggregate; or
	 
	 	(v)	 	the failure of the Company to obtain the
assumption (and, if applicable, guarantee) agreement from any
successor (and Parent Corporation) as contemplated in Section 8(b).

Notwithstanding any contrary provision in this Agreement: (A) an isolated, insubstantial
and inadvertent action taken in good faith and which is remedied by the Company within ten
(10) days after receipt of notice thereof given by Executive shall not constitute Good
Reason; and (B) Executive’s right to terminate employment for Good Reason shall not be
affected by Executive’s Disability; and (C) Executive’s continued employment shall not
constitute a consent to, or a waiver of rights with respect to, any event or condition
constituting Good Reason (provided, however, that Executive must provide notice of
termination of employment within thirty (30) days following Executive’s knowledge of an
event constituting Good Reason or such event shall not constitute Good Reason under this
Agreement).

	 	(g)	 	“Qualifying Termination” means a termination of Executive’s
employment after a Change in Control and during the Termination Period (as
defined herein) (i) by the Company or its Subsidiaries other than for Cause,
or (ii) by Executive for Good Reason. Termination of Executive’s employment on
account of death or Disability shall not constitute a Qualifying Termination.
	 
	 	(h)	 	“Subsidiary” means any corporation or other entity in which the Company:
(A) has a direct or indirect ownership interest of fifty percent (50%) or
more of the total combined voting power of the then-outstanding securities
or interests of such corporation or other entity entitled to vote
generally in the election of directors, or (B) has the right to receive
fifty percent (50%) or more of the distribution of profits or fifty
percent (50%) of the assets upon liquidation or dissolution.

46

 

	 	(i)	 	“Termination Period” means the two (2) year period from the
effective date of this Agreement.

     2. Obligation of Executive. In the event of a tender or exchange offer, proxy contest,
or the execution of any agreement which, if consummated, would constitute a Change in Control,
Executive agrees (as a condition to receiving any payments and benefits hereunder) not to
voluntarily leave the employ of the Company (other than as a result of Disability or an event which
would constitute Good Reason if a Change in Control had occurred) until the Change in Control
occurs or, if earlier, such tender or exchange offer, proxy contest, or agreement is terminated or
abandoned.

     3. Term of Agreement. The term of this Agreement shall be effective for a two (2) year
period from the date hereof.

     4. Benefits Upon Qualifying Termination of Employment. If during the Termination

     Period Executive’s employment with the Company and its Subsidiaries terminates pursuant to a

Qualifying Termination, then the Company shall pay to Executive, within twenty (20) days following
the Date of Termination, a lump sum cash amount equal to the Bonus Amount, as defined in Section
1.1(a). Notwithstanding any contrary provision set forth in this Agreement, Company’s payments to
Executive shall be reduced to the extent that such payments (together with all other payments by
Company to Executive under all other written or verbal agreements between Company and Executive)
constitute an “excess parachute payment” under Section 280G of the Internal Revenue Code (as may be
periodically amended).

     5. Withholding Taxes. The Company shall withhold from all payments due to Executive
hereunder all taxes which, by applicable federal, state, local or other law, the Company is
required to withhold therefrom.

     6. Reimbursement of Expenses. If any contest or dispute shall arise under this
Agreement involving the alleged failure or refusal of the Company or any of its Subsidiaries to
perform fully in accordance with the terms hereof, the Company shall reimburse Executive for all
reasonable legal fees and expenses, if any, incurred by Executive with respect to such contest or
dispute, together with interest in an amount equal to the prime rate of Lorain National Bank from
time to time in effect (but in no event higher than the legal rate permissible under applicable
law), such interest to accrue from the date the Company becomes obligated to pay such fees and
expenses through the date of payment thereof; provided, however, that this Section 6 shall apply
only if (and to the extent that) the Company is held to have breached or violated its duties and
obligations hereunder to Executive.

     7. Scope of Agreement. Executive acknowledges that Executive is employed by the
Company as an “employee at will” and that nothing in this Agreement shall be deemed to change
Executive’s status as an employee at will or to entitle Executive to continued employment with the
Company or its Subsidiaries. If Executive’s employment with the Company and its Subsidiaries
terminates prior to a Change in Control or the term of this Agreement expires, Executive shall have
no further rights under this Agreement (except as otherwise expressly provided hereunder).

     8. Successors; Binding Agreement.

	 	(a)	 	This Agreement shall not be terminated by any Business Combination. In the
event of any Business Combination, the provisions of this Agreement shall
be binding upon the Surviving Corporation, and such Surviving Corporation
shall be treated as the Company hereunder.

47

 

	 	(b)	 	The Company agrees that, in connection with any Business Combination,
Company will cause any successor entity to the Company unconditionally to
assume (and, for any Parent Corporation in such Business Combination, to
guarantee), by written instrument delivered to Executive (or Executive’s
beneficiaries or estate), all of the obligations of the Company hereunder.
Failure of the Company to obtain such assumption or guarantee prior to the
effectiveness of any such Business Combination that constitutes a Change
in Control shall be a breach of this Agreement and shall constitute Good
Reason hereunder and, further, shall entitle Executive to compensation
from the Company in the same amount and on the same terms as Executive
would be entitled hereunder as if Executive’s employment were terminated
following a Change in Control by reason of a Qualifying Termination. For
purposes of implementing this Section 8(b), the date on which any such
Business Combination becomes effective shall be deemed the date Good
Reason occurs and shall be the Date of Termination, if so requested by
Executive.

     9.  Notice.

	 	(a)	 	For purposes of this Agreement, all notices and other
communications required or permitted hereunder shall be in writing and shall
be deemed to have been properly given when delivered or five (5) days after
deposit in the United States mail, certified and return receipt requested,
postage prepaid, addressed as follows (or to such other address as either
Party may have furnished to the other in writing in accordance herewith,
except that notices of change of address shall be effective only upon
receipt):

— If to the Executive, at the address set forth below in the
signatory provision below; and

—  If to the Company:

      LNB Bancorp, Inc.

     457 Broadway

     Lorain, OH 44052

      Attn: Mary Miles

	 	(b)	 	A written notice of Executive’s Date of Termination by the Company or
Executive, as the case may be, to the other Party shall (i) indicate the
specific
termination provision in this Agreement relied upon, (ii) to the extent
applicable, set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive’s employment under
the provision so indicated, and (iii) specify the Date of Termination,
which date shall be not less than fifteen (15) days (thirty (30) days, if
termination is by the Company for Disability) nor more than sixty (60)
days after the giving of such notice. The failure by Executive or the
Company to set forth in such notice any fact or circumstance which
contributes to a showing of Good Reason or Cause shall not waive any right
of either Party or preclude either Party from asserting such fact or
circumstance in enforcing such Party’s rights hereunder.

48

 

     10. Full Settlement; Resolution of Disputes. The Company’s obligation to make payment
under this Agreement and otherwise to perform its obligations hereunder shall be in lieu and in
full settlement of all other severance payments to Executive (payable because of a Change in
Control) under any other severance or employment agreement between Executive and the Company and
its Subsidiaries (if any) and under any severance plan of the Company and its Subsidiaries (if
any). In no event shall Executive be obligated to seek other employment or take other action by way
of mitigation of the amounts payable to Executive under any of the provisions of this Agreement
and, except as provided in Section 4, such amounts shall not be reduced whether or not Executive
obtains other employment. Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration in Lorain County, Ohio, by three arbitrators
in accordance with the rules of the American Arbitration Association then in effect. Judgment may
be entered on the arbitrators’ award in any State court having jurisdiction in Lorain County, Ohio.
Except as otherwise provided in Section 6, each Party shall pay such Party’s costs and expenses
incurred in connection with any arbitration proceeding pursuant to this Section and the Parties
shall each pay fifty percent (50%) of the costs of the arbitration
proceedings.

     11. Executive’s Non-Disclosure and Non-Competition Promises.

          11.1 Definitions. For purposes of this Section 11, the Parties agree to and understand
the following definitions:

	 	(a)	 	“Competitive Activity” means the performance or rendering of any
banking services; trust services and investment services; portfolio
management; retirement planning; administration of employee benefit
plans; administration of decedents’ estates and court-supervised accounts,
guardianships, and custodial arrangements; personal tax and estate tax
planning; financial consulting services; investment advising services; and
any other business activity, service or product which competes with any
existing or future business activity, service or product of the Company.
	 
	 	(b)	 	“Confidential Information” means all of the following (whether written
or verbal) pertaining to the Company: (i) trade secrets (as defined by
Ohio law); Client or Customer lists, records and other information
regarding the Company’s Clients or Customers (whether or not evidenced
in writing); Client or Customer fee or price schedules and fee or price
policies; financial books, plans, records, ledgers and information;
business development plans; sales and marketing plans; research and
development plans; employment and personnel manuals, records, data
and policies; business manuals, methods and operations; business forms,
correspondence, memoranda and other records; computer records and
related data; and any other confidential or proprietary data and
information of the Company or its Clients or Customers which Executive
encounters during the Employment Term; and (ii) all products,
technology, ideas, inventions, discoveries, developments, devices,
processes, business notes, forms and documents, business products,
computer programs, and other creations (and improvements of any of the
foregoing), whether patentable or copyrightable, which Employee has
acquired, developed, conceived or made (whether directly or indirectly,
whether solicited or unsolicited, or whether during normal work hours or
during off-time) during the Employment Term or during the Restricted

49

 

	 	 	 	Period and which relate to any business activity of the Company or are
derived from the Confidential Information designated in Subitem (i) of
this Section 11.1(b).
	 
	 	(c)	 	“Client” or “Customer” means a person, sole proprietorship, partnership,
association, organization, corporation, limited liability company, or other
entity (governmental or otherwise), wherever located: (i) to or for which
the Company sells any products or renders or performs services either
during the 180-day period immediately preceding commencement of the
Restricted Period or during the Restricted Period, or (ii) which the
Company solicits or (as demonstrated by plans, strategies or other
tangible preparation) intends to solicit to purchase products or services
from the Company either during the 180-day period immediately
preceding commencement of the Restricted Period or during the Restricted
Period.
	 
	 	(d)	 	“Employment Term” means the period of time starting on the date
Executive’s employment with the Company commences and terminating
at the close of business on the date Executive’s employment with the
Company terminates.
	 
	 	(e)	 	“Restricted Period” means a period of one (1) year (or, if shorter, the
duration of the Employment Term) commencing on the date the
Employment Term is terminated by either Party (for any reason, with or
without cause); provided, however, that such period shall be extended to
include any period of time during which Employee engages in any
activity constituting a breach of this Agreement and any period of time
during which litigation transpires wherein Employee is held to have

breached this Agreement.
	 
	 	(f)	 	“Company” means, for purposes of this Section 11, LNB Bancorp, Inc.
and The Lorain National Bank (a national bank association), all direct
and indirect parent and subsidiary entities thereof, and all entities related
to LNB Bancorp, Inc., The Lorain National Bank or to such parent and
subsidiary entities by common ownership.

     11.2 Executive’s Promises. Expressly in consideration for the Company’s promises
made in this Agreement, Executive promises and agrees that:

	 	(a)	 	Confidentiality. The Confidential Information is and, at all times, shall
remain the exclusive property of the Company, and Executive
(i) shall hold the Confidential Information in strictest confidence and in a
position of trust for the Company and its Clients and Customers, and
(ii) except as may be necessary to perform Executive’s employment
duties with the Company, shall not (directly or indirectly) use for any
purpose, copy, duplicate, disclose, convey to any third-party or convert
any Confidential Information, either during the Employment Term or at
any time following termination of the Employment Term (by any Party,
for any reason, with or without cause), and (iii) upon the request of the

50

 

	 	 	 	Company at any time during or after the Employment Term, shall
immediately deliver to the Company all the Confidential Information in
Executive’s possession and shall neither convey to any third-party nor
retain any copies or duplicates thereof; and
	 
	 	(b)	 	Clients and Customers. During the Restricted Period, Executive (or any
entity owned or controlled by Executive) shall not directly or indirectly:
(i) solicit from or perform for any Client or Customer a Competitive
Activity, wherever such Client or Customer is located, or (ii) influence
(or attempt to influence) any Client or Customer to transfer such Client’s
or Customer’s patronage or business from the Company, or
(iii) otherwise interfere with any business relationship of the Company
with any Client or Customer; and
	 
	 	(c)	 	Employees. During the Restricted Period, Executive (or any entity
owned or controlled by Executive) shall not directly or indirectly:
(i) employ, engage, contract for the services of, or solicit or otherwise
induce the services of any person who, during the one hundred eighty
(180)-day period immediately preceding commencement of the
Restricted Period or during the Restricted Period, is or was an employee
of the Company, or (ii) otherwise interfere with (or attempt to interfere
with) any employment relationship of the Company with any employee
of Bank.
	 
	 	(d)	 	Other Employment. During the Employment Term, Executive shall not
perform services (whether or not for compensation) as an employee,
independent contractor, consultant, representative or agent of any person,
sole proprietorship, partnership, limited liability company, corporation,
association (other than the Company), organization, or other entity
(governmental or otherwise) without the prior, written consent of the
President of the Company (or any person expressly designated by the
President).
	 
	 	(e)	 	Costs of Enforcement. Executive shall pay all reasonable legal fees,
court costs, expert fees, investigation costs, and other expenses incurred
by the Company in the enforcement of this Section 11.

     11.3 Importance of Executive’s Promises. Executive understands and agrees that:

	 	(a)	 	during the Employment Term, Executive will materially assist the Company in the generation, development or enhancement of certain
Confidential Information, Clients and Customers and certain other
business assets and activities for Company; and
	 
	 	(b)	 	Executive’s promises in this Section 11: (1) were negotiated
at arm’slength and with ample time for Executive to seek the advice of legal
counsel, (2) are required for the fair and reasonable protection of the
Company and the Confidential Information, and (3) do not constitute an
unreasonable hardship to Executive in working for the Company or in
subsequently earning a livelihood in Executive’s field of expertise; and

51

 

	 	(c)	 	if Executive breaches (or threatens to breach) any or all of the promises
in this Section 11: the secrecy and thereby the value of the Confidential
Information will be significantly jeopardized; the Company will be
subject to the immediate risk of material, immeasurable, and irreparable
damage and harm; the remedies at law for Executive’s breach shall be
inadequate; the Company shall therefore be entitled to injunctive relief
against Executive in addition to any and all other legal or equitable
remedies; and
	 
	 	(d)	 	if Executive had not agreed to the restrictive promises in this Agreement,
the Company would not have signed this Agreement.

     11.4 Extent and Continuation of Executive’s Promises. Executive’s promises, duties
and obligations made in this Section 11 shall apply to Executive irrespective of whether a Change
in Control occurs and shall survive the voluntary or involuntary cessation or
termination of the Employment Term by either Party (for any reason, with or without cause). If any
of the restrictions contained in this Section 11 are ever judicially held to exceed the limitations
permitted by law, then such restrictions shall be deemed to be reformed to comply with the maximum
limitations permitted by law. The existence of any claim or cause of action by Executive against
the Company (whether or not derived from or based upon Executive’s employment with the Company)
shall not constitute a defense to the Company’s enforcement of any covenant, duty or obligation of
Executive in this Section 11.

     12. Employment with Subsidiaries. For purposes of this Agreement, any and all
references to Executive’s employment with the Company shall be deemed to include Executive’s
employment by any Subsidiary and, with respect to such employment by a Subsidiary, the term
“Company” as used in this Agreement shall be deemed to include any Subsidiary which employs
Executive.

     13. Survival. The respective obligations and benefits afforded to the Company and
Executive as provided in Sections 4 (to the extent that payments or benefits are owed as a result
of the termination of employment that occurs during the Termination Period), 5, 6, 8, 10 and 11
shall survive the termination of this Agreement and the term of this Agreement.

     14. Governing Law; Validity. The interpretation, construction and performance of this
Agreement shall be governed by and construed and enforced in accordance with the internal laws of
the State of Ohio without regard to the principle of conflicts of laws. The invalidity or
unenforceability of any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, which other provisions shall remain in full force and
effect. All Parties hereby agree that exclusive venue for all litigation arising hereunder lies
solely with the State Courts of Lorain County, Ohio and each Party hereby submits and agrees to the
personal jurisdiction of such Lorain County State Courts.

     15. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original and all of which together shall constitute one and the same instrument.

     16. Miscellaneous. No provision of this Agreement may be modified or waived unless
such modification or waiver is agreed to in writing and signed by Executive and by a duly
authorized officer of the Company. No waiver by either Party (at any time) of any breach by the
other Party of, or compliance with, any condition or provision of this Agreement to be performed by
such other Party shall be deemed a waiver of similar or dissimilar provisions or conditions at the
same or at any prior or subsequent time. Except as otherwise expressly set forth in this Agreement,
the failure by Executive or the Company to insist upon strict compliance with any provision of this
Agreement or to assert any right

52

 

Executive or the Company may have hereunder shall not
be deemed to be a waiver of such provision or right or any other provision or right of this
Agreement.

[Document Continued on Next Page]

53

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly
authorized officer of the Company and Executive has executed this Agreement as of the day and year
first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	LNB BANCORP, INC.
	 	 
	 
	 	 	 	 	 	 
	      /s/ Mary E. Miles

	 	 	 	By: /s/ Daniel E. Klimas	 	 
	 

	 	 	 	 	 	 
	(Signature of First Witness)

	 	 	 	                Daniel Klimas, President	 	 
	 
	 	 	 	 	 	 
	     /s/ Karla Mileti

	 	 	 	- Company -	 	 
	 
	 	 	 	 	 	 
	(Signature of Second Witness)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	     /s/ Mary E. Miles

	 	 	 	/s/ Dave S. Harnett	 	 
	 

	 	 	 	 	 	 
	(Signature of First Witness)

	 	 	 	               Dave S. Harnett	 	 
	 
	 	 	 	 	 	 
	     /s/ Karla Mileti

	 	 	 	457 Broadway	 	 
	 

	 	 	 	 	 	 
	(Signature of Second Witness)

	 	 	 	       Address

Lorain, Ohio 44052	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	         City, State	 	 
	 

	 	 	 	                — Executive -	 	 

54

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]