Document:

exv10w30

EXHIBIT 10.30

TERM NOTE

			
	$892,300.00
	 	July 3, 2008

     FOR VALUE RECEIVED, GREAT PLAINS LAND DEVELOPMENT COMPANY, LTD., an Ohio limited liability
company (“Borrower”), hereby promises to pay to the order of CITIZENS BANK, an Ohio banking
corporation (“Bank”), which term shall include any holder hereof, the principal sum of Eight
Hundred Ninety-Two Thousand Three Hundred and no/100 Dollars ($892,300.00), or so much thereof as
may be advanced by Bank pursuant to the terms of the Credit Agreement of even date herewith, by and
between Borrower and Bank, as the same may from time to time be amended, modified, revised,
supplemented, substituted, renewed, extended or restated (the “Credit Agreement”), together with
interest on and from the date of advance, at the interest rate and in the manner as described
below.

     The outstanding principal balance of this Note will appear on a supplemental bank record.
However, failure by Bank to maintain such records will not limit or otherwise affect Borrower’s
obligations under this Note or the Credit Agreement. In the absence of manifest error, Bank’s
records as to the principal amount, the Maturity Date, the applicable interest rates, all other
charges hereunder, and each payment of principal and interest received by Bank hereunder, shall be
conclusively deemed to be accurate.

     Borrower promises to make payments of principal plus interest as set forth in Section 2.1 of
the Credit Agreement, which shall be due and payable in the manner and on each date provided for in
Section 2.1 of the Credit Agreement. This Note shall bear interest in the manner set forth in
Section 2.1 of the Credit Agreement; provided, however, that interest on any principal portion that
is not paid when due shall be payable on demand. Any amounts repaid under this Note may not be
re-borrowed.

     The entire unpaid principal balance of this Note, together with accrued interest thereon,
shall be due and payable unless earlier accelerated as provided herein, on the Term Loan Maturity
Date as set forth in the Credit Agreement (herein referred to as “Maturity” or “Maturity Date”).

     This Note is the Term Note referred to in the Credit Agreement, and is entitled to all of the
benefits, and is subject to all of the terms and conditions of, the Credit Agreement. Reference is
made to the Credit Agreement for a description of any additional rights of the holder with respect
to this Note, the right of the holder hereof to declare this Note due prior to its stated Maturity,
and other terms and conditions upon which this Note is issued.

In no event will the interest rate on this Note exceed the highest rate permissible under any law
which a court of competent jurisdiction will, in a final determination, deem applicable hereto. In
the event that a court determines that Bank has received interest and other charges under this Note
in excess of the highest permissible rate applicable hereto, such excess will be deemed received on
account of, and will automatically be applied to reduce the amounts due to Bank from
Borrower

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under this Note, other than interest, and the provisions hereof will be deemed amended to provide
for the highest permissible rate. If there are no such amounts outstanding, Bank will refund to
Borrower such excess.

     All payments received by Bank will be applied first to payment of amounts advanced by Bank on
behalf of Borrower, which may be due for insurance, taxes and attorneys’ fees or other charges to
be paid by Borrower pursuant to the Security Instruments, then to accrued interest and other
charges due on this Note, then to principal in inverse order of Maturity. This Note may not be
changed orally, but only by an instrument in writing.

     The payment of this Note is secured by, among other things: (a) a Security Agreement of even
date herewith by and between Borrower and Bank (the “Security Agreement”), granting a continuing
first security interest in all of Borrower’s assets and all tangible and intangible personal
property now owned and hereafter acquired as described therein and all products and proceeds
thereof (the “Collateral”); (b) an Assignment of Contracts of even date herewith by Borrower in
favor of Bank (the “Assignment of Contracts)” (c) the Credit Agreement; and (d) a Guaranty of even
date herewith from each of Richard M. Osborne, individually as a natural person (“RMO”), Richard M.
Osborne, Trustee under Restated Trust Agreement of January 13, 1995 (“Trust”) and Great Plains
Natural Gas Company, an Ohio corporation (“GPNGC”) (RMO, Trust and GPNGC are collectively, the
“Guarantors”) in favor of Bank (collectively the “Guaranties”). The Security Agreement, the
Assignment of Contracts, the Credit Agreement, the Guaranties and all other instruments executed in
connection with any of the foregoing or as security for this Note, as the same may from time to
time be amended, modified, revised, supplemented, substituted, renewed, extended or restated, have
heretofore and shall hereinafter be collectively referred to as the “Security Instruments.” All of
the terms, agreements, conditions, covenants, warranties, representations, provisions and
stipulations made by or imposed upon Borrower in the Security Instruments are hereby made a part of
this Note to the same extent, and with the same force and effect, as if they were fully recited
herein. All capitalized terms used herein and not otherwise defined shall have the meanings
ascribed to them in the Credit Agreement.

     Upon the failure to make any payment required under this Note, under any of the Security
Instruments, or under any other note, guaranty, mortgage or other obligation of Borrower to Bank
(collectively the “Other Obligations”), when the same becomes due, subject to applicable notice and
grace periods set forth herein or therein, if any, or if Borrower breaches or defaults under any
provision contained in this Note or any of the Security Instruments or the Other Obligations, or
should any term, agreement, condition, covenant, warranty, representation, provision or stipulation
contained in this Note or any of the Security Instruments or the Other Obligations be breached or
proven untrue in any material respect, then the Bank, or holder, shall in addition to any and all
other rights, remedies and recourses available to it, the right and option to declare the entire
unpaid principal balance and accrued interest on this Note and any other sums due to Bank by
Borrower at once due and payable without further demand or presentment for payment to Borrower, and
proceed to foreclose all liens and security interests securing the payment of same and to invoke
all rights, remedies and recourses relating thereto. The notice of the exercise of the option to
accelerate contained in this paragraph is hereby expressly waived by Borrower. Failure of the Bank
or holder
to exercise the option contained in this paragraph shall not constitute a waiver of the right to
exercise the same in the event of any subsequent default.

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     In the event that any payment herein provided for shall become overdue for a period in excess
of ten (10) days, a late charge of five percent (5%) of such amount so overdue shall become
immediately due to Bank or holder, not as a penalty, but as agreed compensation to Bank or holder
for the additional costs and expenses incident to such default in making a payment or payments.
Borrower acknowledges that the exact amount of such costs and expenses may be difficult, if not
impossible, to determine with certainty, and further acknowledges and confesses the amount of such
charge to be a consciously considered, good faith estimate of the actual damage to Bank or holder
by reason of such default. Said charge shall be payable in any event no later than the due date of
the next subsequent payment hereunder. Assessment of the late charge shall not in any event be
deemed to extend the date upon which such installment is due. Failure to pay an assessed late
charge is an event of default. The assessment and/or collection of late charge shall in no way
impair Bank’s right to pursue any other remedies upon default hereunder, nor shall the acceptance
by Bank of any late payment or other performance which does not strictly comply with the terms of
this Note or any of the Security Instruments, be deemed to be a waiver of any rights of Bank
arising as a result of such failure to comply.

     In the event of any default hereunder or an Event of Default under any of the Security
Instruments, the unpaid principal balance of this Note and accrued interest thereon, together with
the late charge set forth in the preceding paragraph and all other sums due to Bank or holder by
Borrower hereunder or under any of the Security Instruments, shall bear interest at the Default
Rate as set forth in the Credit Agreement until all sums are paid in full.

     Borrower promises to pay to Bank all loan fees, other fees and charges due and payable in
accordance with the terms of the Security Instruments.

     Borrower grants to Bank a contractual possessory security interest in, and hereby assigns,
conveys, delivers, pledges and transfers to Bank all Borrower’s right, title and interest in and
to, the accounts of Borrower with Bank (whether checking, savings, or some other account),
including without limitation all accounts held jointly with someone else and all accounts Borrower
may open in the future, excluding, however, all IRA, Keogh and trust accounts. Borrower authorizes
Bank, to the extent permitted by applicable law, to charge or set-off all sums owing on this Note
against any and all such accounts.

     Borrower hereby waives the benefit of any laws which now or hereafter might authorize the stay
of any execution to be issued on any judgment recovered on this Note or the exemption of any
property from levy or sale thereunder. Borrower also waives and releases unto Bank or holder
hereof, all errors, defects and imperfections whatsoever of a procedural notice in the entering of
any judgment or any process or proceedings relating thereto.

     Borrower hereby irrevocably authorizes any attorney-at-law to appear in any court of record in
the State of Ohio, or in any other state or territory of the United States after this Note becomes
due, whether by lapse of time, acceleration of Maturity or otherwise, waive the issuance and
service
of process, admit the Maturity of this Note and confess judgment against the Borrower in favor
of any holder of this Note for the amount then appearing due, together with interest thereon and
costs of suit, and thereupon to release all errors and waive all rights of appeal and stay of
execution.

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Borrower expressly (a) waives a conflict of interest as to any attorney retained by
Bank to confess judgment against the Borrower upon this Note, and (b) consents to the attorney
retained by Bank receiving a legal fee from Bank for legal services rendered for confessing
judgment against the Borrower, upon this Note. A copy of this Note, certified by Bank, may be filed
in each such proceeding in place of filing the original as a warrant of attorney. The authority
and power to appear for and enter judgment against the Borrower, additional exercises thereof or
any imperfect exercise thereof, shall not be extinguished by any judgment entered pursuant thereto.
This warrant of attorney to confess judgment shall remain in full force and effect so long as any
portion of the indebtedness evidenced hereby remains unpaid, and any confession of judgment and
subsequent vacation thereof shall not constitute termination of this warrant of attorney to confess
judgment.

     The remedies of this Note and the aforedescribed Security Instruments securing the same,
providing for the enforcement of the payment of the principal sum thereby secured, together with
the interest thereon, and for the performance of the covenants, conditions and agreements, matters
and things herein and therein contained, are cumulative and concurrent and may be pursued singly or
successively or together, in the reasonable discretion of Bank or holder, and may be exercised as
often as occasion therefor shall occur. The waiver by Bank or any holder hereof of, or failure to
enforce, any covenant or condition of this Note or the Security Instruments, or to declare any
default thereunder or hereunder, shall not operate as a waiver of any subsequent default or affect
the right of the said Bank or holder to exercise any right or remedy not expressly waived in
writing by Bank or holder.

     Borrower hereby unconditionally agrees to pay on demand the costs of collection of this Note,
including, but not limited to, reasonable attorney fees incurred by Bank or holder, whether or not
litigation has been commenced, if collectible in the jurisdiction in which a judgment is rendered
or sought to be enforced. All such amounts shall bear interest at the Default Rate and be secured
by the Security Instruments.

     Borrower hereby acknowledges, warrants and represents that this is not a consumer transaction
and that the principal sum evidenced hereby was not used for any consumer purpose but was used
solely in connection with a commercial or business transaction. Borrower hereby further consents
and agrees that this Note is a “contract of indebtedness” and that the attorneys’ fees and
disbursements referenced are those which are a reasonable amount, all as contemplated by Ohio
Revised Code Section 1301.21, as such Section may hereafter be amended.

     This obligation shall bind Borrower and Borrower’s successors and permitted assigns, as the
case may be, and the benefits hereof shall inure to any holder hereof and its successors and
assigns.

     Borrower does hereby: (a) waive demand, presentment for payment, notice of non-payment,
protest, notice of protest and all other notice (unless notice is specifically otherwise required
in this Note or in the Security Instruments), filing of suit or diligence in collecting this Note,
in enforcing any of the security rights or in proceeding against any of the property which is
collateral for this
Note; (b) agree to any substitution, exchange, addition or release of any such property or the
addition or release of any party or person primarily or secondarily liable herein; (c) agree that
Bank or holder shall not be required first to institute any suit, or to exhaust its remedies
against Borrower or any other person or party in order to enforce payment of this Note; (d) consent
to any extension,

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rearrangement, renewal or postponement of time of payment of this Note and to any
other indulgence with respect hereto without notice, consent or consideration to any of them; and
(e) agree that, notwithstanding the occurrence of any of the foregoing, except as to any such
person expressly released in writing by Bank or holder, Borrower shall be and remain directly and
primarily, liable for all sums due hereunder and under any and all of the Security Instruments.

     If any of the terms or provisions of this Note shall be deemed to be unenforceable or invalid,
the enforceability or validity of the remaining terms and provisions shall not be affected. It is
the intention of Bank or holder, which is signified by acceptance of this Note, that this Note
shall comply with all applicable usury laws now or hereafter in effect. Accordingly, to the extent
that any rate of interest stated in this Note exceeds the maximum rate of interest which may be
charged on loans of the type and nature evidenced by this Note, then said interest shall be abated
and reduced to the extent necessary to conform with the maximum permissible rate.

     BORROWER HEREBY, AND BANK BY ITS ACCEPTANCE HEREOF, EACH WAIVES THE RIGHT OF A JURY TRIAL IN
EACH AND EVERY ACTION ON THIS NOTE OR ANY OF THE SECURITY INSTRUMENTS, IT BEING ACKNOWLEDGED AND
AGREED THAT ANY ISSUES OF FACT IN ANY SUCH ACTION ARE MORE APPROPRIATELY DETERMINED BY THE COURTS.
THIS WAIVER IS KNOWINGLY, INTENTIONALLY AND VOLUNTARILY MADE BY BORROWER AND BORROWER ACKNOWLEDGES
THAT NO ONE HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY
WAY TO MODIFY OR NULLIFY ITS EFFECT. THIS WAIVER SHALL NOT IN ANY WAY AFFECT, WAIVE, LIMIT, AMEND
OR MODIFY BANK’S ABILITY TO PURSUE REMEDIES PURSUANT TO ANY CONFESSION OF JUDGMENT OR COGNOVIT
PROVISION CONTAINED IN THIS NOTE OR ANY OF THE SECURITY INSTRUMENTS. FURTHER, BORROWER HEREBY
CONSENTS AND SUBJECTS ITSELF TO THE JURISDICTION OF COURTS OF THE STATE OF OHIO AND, WITHOUT
LIMITING THE GENERALITY OF THE FOREGOING, TO THE VENUE OF SUCH COURTS IN ANY COUNTY IN WHICH BANK
IS LOCATED.

     The obligations evidenced by this Note may from time to time be evidenced by another note or
notes given in amendment, modification, revision, supplement, substitution, renewal, extension or
restatement hereof. All of the Security Instruments which secure this Note, and any guaranty which
guarantees the obligations evidenced hereby, shall remain in full force and effect notwithstanding
any such amendment, modification, revision, supplement, substitution, renewal, extension or
restatement.

[Remainder of this page intentionally left blank]

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     This Note is being executed and delivered in the State of Ohio, is intended to be performed
in, will be construed and enforceable in accordance with and governed by the internal laws of, the
State of Ohio, without regard to principles of conflicts of law. Borrower agrees that the state and
federal courts in any County where Bank is located shall have jurisdiction over all matters arising
out of this Note, and that service of process in any such proceeding and any notice required
hereunder or under any of the Security Instruments, shall be effective if sent to Borrower at the
address set forth in the Notices section of the Credit Agreement in accordance with the terms
thereof. Borrower represents and warrants to Bank that this Note is being executed and delivered in
the State of Ohio.

     IN WITNESS WHEREOF, Borrower has executed and delivered this Note as of the date first above
written in the State of Ohio.

WARNING—BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU
DO NOT PAY ON TIME, A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE
POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE
CREDITOR, WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE
AGREEMENT, OR ANY OTHER CAUSE.

	 	 	 	 	 
	 	GREAT PLAINS LAND DEVELOPMENT 

COMPANY, LTD.,

an Ohio limited liability company

 	 
	 	By:  	/s/ Thomas J. Smith
 	 
	 	 	Name: 	Thomas J. Smith 	 
	 	 	Title: 	Vice President	 
	 

	 	 	 	 	 
	 	Address: 	
 8500 Station Street

Mentor, Ohio 44060 	 
	 

“Borrower”

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EXHIBIT 10.31

SECURITY AGREEMENT

     This Security Agreement (the “Agreement”) is made effective as of July 3, 2008, by GREAT
PLAINS LAND DEVELOPMENT COMPANY, LTD., an Ohio limited liability company, whose address is 8500
Station Street, Mentor, Ohio 44060 (the “Debtor”), and CITIZENS BANK, with an address at 328 S.
Saginaw Street, Flint, Michigan 48502, for itself and as agent for any affilitate of Citizens
Republic Bancorp (the “Secured Party”). Debtor and Secured Party hereby agree as follows:

WITNESSETH:

     WHEREAS, Debtor is indebted to Secured Party pursuant to, among other things, (i) that certain
Credit Agreement dated of even date herewith by and between Debtor and Secured Party (the “Credit
Agreement”), (ii) that certain Term Note dated of even date herewith executed by Debtor and made
payable to the order of Secured Party, in the principal amount of Eight Hundred Ninety-Two Thousand
Three Hundred and no/100 Dollars ($892,300.00) (said Term Note, as increased, decreased, amended,
modified, revised, supplemented, substituted, renewed, extended or restated from time to time, is
hereinafter collectively referred to as the “Note”), and (iii) such other agreements, instruments
and documents executed or delivered by Debtor in connection with the Credit Agreement or the Note,
or as security therefor or otherwise related thereto (the Credit Agreement, the Note and all other
aforesaid agreements, instruments and documents, as amended, modified, revised, supplemented,
substituted, renewed, extended or restated from time to time, are hereinafter collectively referred
to as the “Loan Documents”).

	1.	 	SECURITY INTEREST; OBLIGATIONS: In consideration of and as security for the full and
complete payment, performance and observance of all Obligations (as hereinafter defined)
Debtor hereby assigns as collateral and grants to Secured Party a security interest in and to
all items of property described in Paragraph 2 of this Agreement. This assignment of
collateral and grant of security interest shall secure all loans, advances, indebtedness and
each and every other obligation or liability of Debtor owed to Secured Party or any affiliate
of Citizens Republic Bancorp, however created, of every kind and description, whether now
existing or hereafter arising and whether direct or indirect, joint or several, primary or as
guarantor or surety, absolute or contingent, due or to become due, liquidated or unliquidated,
matured or unmatured, secured or unsecured, participated in whole or in part, created by trust
agreement, lease, overdraft, agreement, promissory note, guaranty, indemnification, letter of
credit, rate management obligations and/or agreements, credit accommodations or otherwise,
whether or not secured by additional collateral, whether originated with Secured Party or owed
to others and acquired by Secured Party by purchase, assignment or otherwise, and including,
without limitation, all loans, advances, indebtedness and each and every other obligation or
liability arising under the Credit Agreement, the Note and/or the other Loan Documents,
letters of credit, rate management agreements, ISDA Master Agreements and related schedules
and confirmations, and any other indebtedness or obligations, whether now existing or
hereafter arising and issued by Secured Party or any affiliate of Citizens Republic Bancorp
for the benefit of or at the
request of Debtor, all obligations to perform or forbear from performing acts, and all

 

 

	 	 	agreements, instruments and documents evidencing, guarantying or securing or otherwise
executed in connection with any of the foregoing, together with any and all increases,
decreases, amendments, modifications, revisions, supplements, substitutions, renewals,
extensions or restatements thereof, and all expenses and attorneys’ fees incurred or other
sums disbursed by Secured Party under this Agreement or any other document, instrument or
agreement related to any of the foregoing (all of the foregoing obligations set forth in this
Paragraph 1 are hereinafter, collectively referred to as the “Obligations”).

	2.	 	COLLATERAL: Debtor hereby grants to Secured Party a continuing security interest in
all right, title and interest of Debtor in the collateral now existing and hereafter arising
or acquired by Debtor, regardless of where it is located, and is defined as follows (together
with all proceeds and products thereof and all additions and accession thereto, replacements
thereof, supporting obligations therefor, guaranties thereof, insurance or condemnation
proceeds thereof, documents related thereto, all sales of accounts constituting a right to
payment therefrom, all tort or other claims against third parties arising out of damage
thereto or destruction thereof, all property received wholly or partly in trade or exchange
thereof, all fixtures attached or appurtenant thereto, all leases thereof, and all rents,
revenues, issues, profits and all proceeds arising from the sale, lease, license, encumbrance,
collection or any other temporary or permanent disposition thereof, or any other interest
therein, collectively, the “Collateral”):

	 	(a)	 	All Accounts, all Accounts Receivable, all Cash Security, all Inventory, all
Equipment, all General Intangibles, and all Investment Property, in each case whether now
owned or hereafter acquired or received by Debtor; and
	 
	 	(b)	 	All Instruments, Documents, chattel paper, electronic chattel paper, securities,
moneys, cash, letters of credit, letter of credit rights, promissory notes, warrants,
dividends, distributions, commercial tort claims, contracts, agreements, contract rights
or other property, owned by Debtor or in which Debtor has an interest, including but not
limited to, those which are now or hereafter in the possession or control of Secured
Party or in transit by mail or carrier to or in the possession of any third party acting
on behalf of Secured Party, without regard to whether Secured Party received the same in
pledge, for safekeeping, as agent for collection or transmission or otherwise or whether
Secured Party had conditionally released the same, and the proceeds thereof, all rights
to payment from, and all claims against Secured Party, and any deposit accounts of Debtor
with Secured Party, including all demand, time, savings, passbook or other accounts and
all deposits therein; and
	 
	 	(c)	 	All of the Proceeds, products, profits, and rents of Debtor’s Accounts, Accounts
Receivable, Inventory, Equipment, Cash Security, Investment Property and General
Intangibles and all books and records, including computer software, used in connection
with any of the Collateral.

	3.	 	DEFINITIONS: Capitalized terms not otherwise defined in this Agreement shall have the
meanings attributed thereto in the applicable version of the Uniform Commercial Code adopted
in the jurisdiction in the state in which Debtor is organized, or where appropriate,
the jurisdiction in which the collateral is located, as such definitions may be enlarged or
expanded from time to time by legislative amendment thereto or judicial decision (the 

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	 	 	“Uniform Commercial Code”). As used herein the following capitalized terms will have the following
meanings:

	 	(a)	 	“Deposit Account”, “Document”, “Goods”, “Instrument”, and “Proceeds”, have the meanings
as set forth in Ohio Revised Code Sections 1309.102 from time to time, including any
amendments thereof and any substitutions therefor, which definitions are hereby incorporated
by reference as though fully rewritten herein.
	 
	 	(b)	 	“Accounts” means all accounts, accounts receivable, health-care-insurance
receivables, credit card receivables, contracts, contract rights, instruments, documents,
tax refunds from federal, state or local governments and all obligations in any form
including without limitation those arising out of the sale or lease of goods or the
retention of services by Debtor; all guaranties, letters of credit and other security and
supporting obligations for any of the above; all merchandise resumed to or reclaimed by
Debtor, and all books and records (including computer programs, tapes and data processing
software) evidencing an interest in or relating to the above; all winnings in a lottery
or other game of chance operated by a governmental unit or person licensed to operate
such game by a governmental unit and all rights to payment therefrom; and any “Account”
as the same is now or hereafter defined in the Uniform Commercial Code.
	 
	 	(c)	 	“Accounts Receivable” means:

(i) any account receivable, Account, Document, or Instrument owned, acquired, or
received by a Person,

(ii) any other indebtedness owed to or receivable owned, acquired, or received by a
Person of whatever kind and however evidenced, and

(iii) any right, title, and interest in a Person’s Goods which were sold, leased, or
furnished by that Person and gave rise to either (i) or (ii) above, or both of them.
This includes, without limitation,

     (A) any rights of stoppage in transit of a Person’s sold, leased, or
furnished Goods,

     (B) any rights to reclaim a Person’s sold, leased, or furnished Goods, and

     (C) any rights a Person has in such sold, leased, or furnished Goods that
have been returned to or repossessed by that Person.

	 	(d)	 	“Cash Security” means all cash, Instruments, Deposit Accounts, and other cash
equivalents, whether matured or unmatured, whether collected or in the process of
collection, upon which Debtor presently has or may hereafter have any claim, that are
presently or may hereafter be existing or maintained with, issued by, drawn upon, or in
the possession of a bank or is subject to a Deposit Account Control Agreement or Account
Control Agreement as defined herein.

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	 	(e)	 	“Deposit Account Control Agreement” means any authenticated record from a bank or
other financial institution providing that the bank or other financial institution will
comply with instructions originated by a secured party directing disposition of the funds
in the Deposit Account without further consent of the Debtor.
	 
	 	(f)	 	“Equipment” means all goods (excluding inventory, farm products or consumer goods),
machinery, machine tools, equipment, fixtures, office equipment, furniture, furnishings,
motors, motor vehicles, tools, dies, parts, jigs, goods (including, without limitation,
each of the items of equipment set forth on any schedule which is either now or in the
future attached to Secured Party’s copy of this Agreement), and all attachments,
accessories, accessions, replacements, substitutions, additions and improvements thereto,
and all supplies used or useful in connection therewith, and all “Equipment” as same is
now or hereafter defined in the Uniform Commercial Code.
	 
	 	(g)	 	“General Intangibles” means all general intangibles, choses in action, causes of
action, obligations or indebtedness owed to Debtor from any source whatsoever, payment
intangibles, software and all other intangible personal property of every kind and nature
(other than Accounts) including without limitation patents, trademarks, trade names,
service marks, copyrights and applications for any of the above, and goodwill, trade
secrets, permits, licenses, certifications, franchises, rights under agreements,
operating rights, distributorship and distribution agreements, tax refund claims, and all
books and records including all computer programs, disks, tapes, printouts, customer
lists, credit files and other business and financial records, and the equipment
containing any such information, and all “General Intangibles” as same is now or
hereafter defined in the Uniform Commercial Code.
	 
	 	(h)	 	“Inventory” means all goods, supplies, wares, merchandises and other tangible
personal property including raw materials, work in process, supplies and components, and
finished goods, whether held for sale or lease, or furnished or to be furnished under any
contract for service, or used or consumed in business, and also including products of and
accessions to inventory, packing and shipping materials, and all documents of title,
whether negotiable or non-negotiable, representing any of the foregoing, and all
“Inventory” as same is now or hereafter defined in the Uniform Commercial Code.
	 
	 	(i)	 	“Investment Property” means a security, whether certificated or uncertificated,
security entitlement, securities account, commodity contract or commodity account and all
“Investment Property” as same is now or hereafter defined in the Uniform Commercial Code.
	 
	 	(j)	 	“Person” has the meaning as set forth in Ohio Revised Code Section 1301.01 from
time to time, including any amendments thereof and any substitutions therefor, which
definitions are hereby incorporated by reference as though fully rewritten herein.

	4.	 	WARRANTIES AS TO DEBTOR: Debtor hereby represents and warrants to Secured Party as follows:

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	 	(a)	 	It is a limited liability company with its principal place of business located at
the address otherwise set forth herein, and is duly organized, validly existing and in
good standing under the laws of the State of Ohio.
	 
	 	(b)	 	Debtor further warrants that its exact legal name is set forth in the initial
paragraph of this Agreement, and its Taxpayer I.D. No. is _________, and its
Charter No. is 1380041.
	 
	 	(c)	 	Exhibit A attached to this Agreement and incorporated herein by reference
lists the locations of any and all of the Collateral of Debtor.

	5.	 	WARRANTIES AS TO COLLATERAL: Debtor hereby represents and warrants to Secured Party
that:

	 	(a)	 	Except for the security interest hereby granted, Debtor is, and as to any property
which at any time forms a part of the Collateral, shall be, the sole owner of, with good
and marketable title in, each and every item of the Collateral, or otherwise shall have
the full right and power to grant a security interest in the Collateral, free from any
lien, security interest or encumbrance whatsoever.
	 
	 	(b)	 	Each item described as Collateral is, and shall be, valid, and all information
furnished to Secured Party with regard thereto is, and shall be, accurate and correct in
all respects when furnished;
	 
	 	(c)	 	None of the Collateral shall be sold (except for Inventory sold in the ordinary
course of business), assigned, transferred, discounted, hypothecated, or otherwise
subjected to any lien, encumbrance or security interest (except as otherwise provided in
Paragraph 5(a) above), and that Debtor shall defend such Collateral and each and every
part thereof against claims of all persons at any time claiming such Collateral or
claiming any interest therein adverse to Secured Party except as aforesaid;
	 
	 	(d)	 	The provisions of this Agreement are sufficient to create in favor of Secured Party
a valid and continuing first lien on, and valid first security interest in, the types of
Collateral in which a security interest may be perfected by the filing of UCC Financing
Statements, and when such UCC Financing Statements are filed in the requisite filing
offices, and the requisite filing fees are paid, such filings shall be sufficient to
perfect such security interest (other than Equipment affixed to real property so as to
become fixtures);
	 
	 	(e)	 	If any of the Collateral is or will be attached to real estate in such a manner as
to become a fixture under applicable state law, that said real estate is not encumbered
in any way except in favor of Secured Party, or if said real estate is encumbered, Debtor
will secure from the lien holder or the party in whose favor it is or will become so
encumbered a written acknowledgment and subordination to the security interest hereby
granted or a written disclaimer of any interest in the Collateral, in such form as is
acceptable to Secured Party; and

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	 	(f)	 	The financial statements of Debtor submitted to the Secured Party are true and
correct and there are no material adverse changes in the conditions, financial or
otherwise, of Debtor since the date of said financial statements.

	6.	 	DEBTOR’S RESPONSIBILITIES: Debtor covenants with, and represents and warrants to
Secured Party, that Debtor shall:

	 	(a)	 	Upon Secured Party’s request, furnish to Secured Party, in writing, a current list
of all Collateral for the purpose of identifying the Collateral and, further, execute and
deliver such supplemental instruments, documents, agreements and chattel paper, in the
form of assignments or otherwise, as Secured Party shall reasonably require for the
purpose of confirming and perfecting, and continuing the perfection of, Secured Party’s
security interest in any or all of such Collateral, or as is necessary to provide Secured
Party with control over the Collateral or any portion thereof;
	 
	 	(b)	 	At its expense and upon request of Secured Party, furnish copies of invoices issued
by Debtor in connection with the Collateral, furnish certificates of insurance evidencing
insurance on Collateral, furnish proof of payment of taxes and assessments on Collateral,
make available to Secured Party, any and all of Debtor’s books, records, written
memoranda, correspondence, purchase orders, invoices and other instruments or writings
that in any way evidence or relate to the Collateral;
	 
	 	(c)	 	Keep the Collateral insured at all times against risks of loss or damage by fire
(including so-called extended coverage), theft and such other casualties including
collision in the case of any motor vehicle, all in such amounts, under such forms of
policies, upon such terms, for such periods and written by such companies or underwriters
as is satisfactory to Secured Party. In all cases losses shall be payable to Secured
Party and any surplusage shall be paid to Debtor. All policies of insurance shall
provide for at least thirty (30) days prior written notice of cancellation to Secured
Party. Should Debtor at any time fail to purchase or maintain insurance, pay taxes, or
pay for any expense, incident or such insurance, Secured Party may, but is not obligated
to, pay such taxes, order and pay for such necessary items of preservation, maintenance
or protection of the Collateral, and Debtor agrees to reimburse Secured Party for all
expenses incurred under this paragraph;
	 
	 	(d)	 	Pay all taxes or assessments imposed on or with respect to the Collateral;
	 
	 	(e)	 	Keep all of the Collateral in good condition and repair and working order, ordinary
wear and tear excepted, protecting it from weather and other
contingencies which might adversely affect it as secured hereunder, and not permit any waste or damage with respect
thereto;
	 
	 	(f)	 	Notify Secured Party immediately in writing of any information which Debtor has or
may receive which might in any way adversely affect the value of the Collateral or the
rights of Secured Party with respect thereto;

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	 	(g)	 	Notify Secured Party promptly, in writing, of any change in the location of the
Collateral or of any place of business or mailing addresses or the establishment of any
new place of business or mailing address;
	 
	 	(h)	 	Pay all costs of filing any financing, continuation or termination statements with
respect to the security interest created hereby;
	 
	 	(i)	 	Upon the occurrence of an Event of Default or breach of any provision of this
Security Agreement, pay all expenses and reasonable attorneys’ fees of Secured Party; and
Debtor agrees that said expenses and fees shall be secured under this Agreement;
	 
	 	(j)	 	Maintain possession of all Collateral at the location disclosed to Secured Party
and not to remove the Collateral from that location;
	 
	 	(k)	 	Not sell, contract to sell, lease, encumber, or otherwise transfer the Collateral
(other than inventory sold in the ordinary course of business) until the Obligations have
been paid and performed, Debtor acknowledging nonetheless that Secured Party has a
security interest in the proceeds of such Collateral; and
	 
	 	(l)	 	Take any other and further action necessary or desirable as requested by Secured
Party to grant Secured Party control over the Collateral, as “control” is defined in the
applicable version of the Uniform Commercial Code, including without limitation (i)
executing and/or authenticating any assignments, third party agreements, Deposit Account
Control Agreement or any other account control agreement (“Account Control Agreement”),
in a form acceptable to Secured Party; (ii) delivering, or causing the delivery of, any
of the Collateral to the possession of Secured Party; and (iii) obtaining written
acknowledgments of the lien of Secured Party and agreements of subordination to such lien
from third parties in possession of the Collateral in a form acceptable to Secured Party.
Debtor consents to and hereby authorizes any third party in an authenticated record or
agreement between Debtor, Secured Party, and the third party, including but not limited
to depository institutions, securities intermediaries, and issuers of letters of credit
or other support obligations, to accept direction from Secured Party regarding the
maintenance and disposition of the Collateral and the products and proceeds thereof, and
to enter into agreements with Secured Party regarding same, without further consent of
the Debtor.
	 
	 	(m)	 	By signing below, Debtor authenticates this Security Agreement and authorizes
Secured Party, as a secured party, to complete and file with the appropriate filing
office(s): (i) one or more Uniform Commercial Code Financing Statement(s) (UCC-1), describing the
Collateral against which Secured Party has been granted a security interest by Debtor,
pursuant to the terms of this Security Agreement and/or any Collateral described on any
schedules or exhibits attached hereto and incorporated herein by reference; and (ii) one
or more Uniform Commercial Code Financing Statement(s) (UCC-3) to terminate, continue,
assign and/or ammend any previously 

7

 

	 	 	 	filed financing statement relating to this Security
Agreement and/or the Colateral described herein.

	7.	 	ACCOUNTS RECEIVABLE: Debtor hereby agrees that notwithstanding the fact that all or
any part of the Obligations is not matured and Debtor is current in payment according to the
terms of the Obligations, Secured Party shall have the absolute right to take any one or more
of the following actions, upon the occurrence of an Event of Default (as hereinafter defined):

	 	(a)	 	Secured Party may serve written notice on Debtor instructing Debtor to deliver to
Secured Party all subsequent payments on Accounts Receivable which Debtor shall do until
notified otherwise;
	 
	 	(b)	 	Secured Party may notify the account debtor(s) of its security interest and
instruct such account debtor(s) to make further payments on such accounts to Secured
Party instead of to Debtor; and
	 
	 	(c)	 	Secured Party may serve written notice upon Debtor that all subsequent billings or
statements of account rendered to any account debtor shall bear a notation directing the
account debtor(s) to make payment directly to Secured Party. Any payment received by
Secured Party pursuant to this paragraph shall be retained in a separate non-interest
bearing account as security for the payment and performance of all Obligations of Debtor.

	8.	 	POWER OF ATTORNEY: Debtor hereby makes, constitutes and appoints Secured Party its
true and lawful attorney-in-fact to act, with full power of substitution, with respect to the
Collateral in any transaction, legal proceeding, or other matter in which Secured Party is
acting pursuant to this Agreement, including, but not limited to, executing, authentication
and/or filing on its behalf: (i) UCC Financing Statements reflecting the lien of Secured Party
upon the Collateral and any other documents necessary or desirable to perfect or otherwise
continue the security interest granted herein; and (ii) any third party agreements or
assignments to grant Secured Party control over the Collateral, including but not limited to,
third party agreements between Debtor, Secured Party, and depository institutions, securities
intermediaries, and issuers of letters of credit or other support obligations, which third
party agreements direct the third party to accept direction from Secured Party regarding the
maintenance and disposition of the Collateral and the products and proceeds thereof.

	9.	 	EVENTS OF DEFAULT: Any of the following events shall be an “Event of Default”
hereunder:

     (a) An event of default occurs (after any applicable grace period has expired) under any
agreement, instrument or document evidencing, guarantying, securing or otherwise executed or
delivered in connection with any of the Obligations, as “Event of Default” shall be defined
therein, including, but not limited to, the Credit Agreement or the Note.

8

 

     (b) Any representation or warranty of Debtor set forth in this Agreement or in any
agreement, instrument, document, certificate or financial statement evidencing, guarantying,
securing or otherwise related to, this Agreement or any other Obligation shall be materially
inaccurate or misleading.

     (c) Debtor shall fail to maintain in force the insurance required in this Agreement or in
any agreement, instrument, document, certificate or financial statement evidencing,
guarantying, securing or otherwise related to, this Agreement or any other Obligation, or
Debtor shall otherwise default in the observance or performance of any covenant or agreement
set forth in any of the foregoing for a period of thirty (30) days.

	10.	 	REMEDIES. Upon the occurrence of an Event of Default, Secured Party may, without
further notice to Debtor, at Secured Party’s option, declare the Note and all of the
Obligations to become due and payable in its aggregate amount; provided that the Obligations
shall be accelerated automatically and immediately if the Event of Default is a filing under
the Bankruptcy Code. Secured Party may resort to the rights and remedies of a secured party
under the Uniform Commercial Code, including but not limited to the right of a secured party
to (a) enter any premises of Debtor, with or without legal process and take possession of the
Collateral and remove it and any records pertaining thereto and/or remain on such premises and
use it for the purpose of collecting, preparing and disposing of the Collateral; (b) ship,
reclaim, recover, store, finish, maintain and repair the Collateral; and (c) sell the
Collateral at public or private sale. Debtor will be credited with the net proceeds of such
sale only when they are actually received by Secured Party, and any requirement of reasonable
notice of any disposition of the Collateral will be satisfied if such notice is sent to Debtor
ten (10) days prior to such disposition. Debtor will, upon request, assemble the Collateral
and any records pertaining thereto and make them available at a place designated by Secured
Party. Secured Party may use, in connection with any assembly or disposition of the
Collateral, any trademark, trade name, trade style, copyright, patent right, trade secret or
technical process used or utilized by Debtor. No remedy set forth herein is exclusive of any
other available remedy or remedies, but each is cumulative and in addition to every other
remedy given under this Agreement, and of the Obligations, or now or hereafter existing at law
or in equity or by statute. Secured Party may proceed to protect and enforce its rights by an
action at law, in equity or by any other appropriate proceedings. No failure on the part of
Secured Party to enforce any of the rights hereunder shall be deemed a waiver of such rights
or of any Event of Default and no waiver of any Event of Default shall be deemed to be a
waiver of any subsequent Event of Default.

	11.	 	MISCELLANEOUS PROVISIONS:

	 	(a)	 	All rights of Secured Party shall inure to the benefit of its successors and
assigns and all obligations of Debtor shall bind the successors and assigns of Debtor.
	 
	 	(b)	 	Debtor acknowledges and agrees that, in addition to the security interests granted
herein, Secured Party has a banker’s lien and common law right of set-off in and to
Debtor’s deposits, accounts and credits held by Secured Party and Secured Party may

9

 

	 	 	 	apply or set-off such deposits or other sums against the Obligations upon the occurrence of an
Event Default as set forth in this Agreement.

	 	(c)	 	This Agreement contains the entire agreement of the parties with respect to the
subject matter hereof and no oral agreement whatsoever, whether made contemporaneously
herewith or hereafter shall amend, modify or otherwise affect the terms of this
Agreement.
	 
	 	(d)	 	DEBTOR HEREBY WAIVES THE RIGHT TO A TRIAL BY JURY OF ANY MATTERS ARISING OUT OF
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
	 
	 	(e)	 	All rights and liabilities hereunder shall be governed by and construed in
accordance with the laws of the State of Ohio.
	 
	 	(f)	 	Any provision herein which may prove limited or unenforceable under any law or
judicial ruling shall not affect the validity or enforceability of the remainder of this
Agreement.
	 
	 	(g)	 	Debtor hereby further authorizes Secured Party to file UCC Financing Statements on
behalf of Debtor and Secured Party with respect to the Collateral.

Remainder of this page intentionally left blank

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	 	(h)	 	Secured Party is hereby authorized to fill in all blank spaces herein, to correct
patent errors herein, to complete or correct the description of the Collateral, and to
date this Agreement.

	 	 	 
	SECURED PARTY:

	 	DEBTOR:
	 
	 	 
	CITIZENS BANK

	 	GREAT PLAINS LAND DEVELOPMENT COMPANY, LTD.,
	 

	 	an Ohio limited liability company
	 
	 	 
	By:

/s/ David Tholt

	 	By:

/s/ Thomas J. Smith

	Name: David Tholt

	 	Name:
Thomas J. Smith

	Title: Vice President

	 	Title:
Vice President

11

 

EXHIBIT “A”

Location(s) of Debtor

8500 Station Street, Mentor, Ohio 44060

12

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