Document:

exv10w28xby

EXHIBIT 10.28(b)

GUARANTY

     THIS GUARANTY (this “Guaranty”) is executed and delivered effective as of July 3, 2008, by
RICHARD M. OSBORNE, TRUSTEE UNDER RESTATED TRUST AGREEMENT OF JANUARY 13, 1995, individually as a
natural person, who is a resident of the State of Ohio, with an address at 8500 Station Street,
Mentor, Ohio 44060 (“Guarantor”), in favor of CITIZENS BANK, having an address at 328 S. Saginaw
Street, Flint, Michigan 48502 (“Bank”).

W I T N E S S E T H:

     WHEREAS, Bank has agreed to lend to Great Plains Natural Gas Company, an Ohio corporation
(“Borrower”), a term loan in the principal amount of Two Million Six Hundred Forty-Five Thousand
and no/100 Dollars ($2,645,000.00) (the “Loan”), pursuant to and in accordance with the Credit
Agreement dated of even date herewith by and between Borrower and Bank (the “Credit Agreement”);
and

     WHEREAS, Borrower has executed and delivered to Bank, among other things, a Term Note dated of
even date herewith, in the principal amount of Two Million Six Hundred Forty-Five Thousand and
no/100 Dollars ($2,645,000.00), to evidence its obligation to repay the Loan to be made to it by
Bank and to perform all of its obligations under the Loan Documents (the Term Note, as the same may
from time to time be increased, decreased, amended, modified, revised, supplemented, renewed,
extended or restated, is hereinafter referred to as the “Note”); and

     WHEREAS, the Loan is secured by, among other things, a Security Agreement dated of even date
herewith, by and between Borrower and Bank (the “Security Agreement”) and such other documents
executed in connection with the Credit Agreement, the Note or the Security Agreement (the Credit
Agreement, the Note and the Security Agreement, together with such other documents executed in
connection with any of the foregoing, as the same may from time to time be amended, modified,
revised, supplemented, substituted, renewed, extended or restated, are hereinafter collectively
referred to as the “Loan Documents”); and

     WHEREAS, Guarantor has a direct economic interest in Borrower, and the Loan to Borrower is
given in consideration of this Guaranty and such Loan will inure directly or indirectly to the
benefit of Guarantor, and such benefit is sufficient consideration for the execution and delivery
of this Guaranty in favor of Bank; and

     WHEREAS, Guarantor has agreed to execute and deliver this Guaranty to Bank at the request of
Borrower in order to induce Bank to make and close the Loan and to satisfy a condition precedent to
closing and funding the Loan.

     NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and to induce Bank to make the Loan
to Borrower, Guarantor does hereby agree with Bank as follows:

1. Guarantor hereby irrevocably, absolutely and unconditionally, and jointly and severally with all
other guarantors of the Loan, guarantees to Bank, its successors and assigns, and

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all subsequent holders of the Note, the full and prompt payment and performance of the following
(hereinafter collectively referred to as the “Obligations”): all loans, advances, debts,
liabilities, indebtedness, obligations, covenants, undertakings, promises, agreements, and duties
now or hereafter owing to Bank or any affiliate of Citizens Republic Bancorp from Borrower of any
kind or nature whatsoever, present or future, whether arising by reason of an extension of credit,
opening of a letter of credit, loan, promissory note, guarantee, endorsement, indemnification,
agreement, undertaking, contract, rate management agreement, or in any manner whatsoever, whether
direct or indirect (including those acquired by assignment, participation, purchase, negotiation,
discount or otherwise), matured or unmatured, liquidated or unliquidated, primary or secondary,
absolute or contingent, joint or several, due or to become due, now existing or hereafter arising
and whether or not contemplated by Borrower or Bank on the date hereof, including, but not limited
to, the Note or the other Loan Documents, and all amendments, modifications, revisions,
supplements, substitutions, renewals, extensions or restatements thereof, and all principal,
interest, charges, expenses, costs, fees (including reasonable attorneys’ fees), indemnification
obligations and other sums of any kind thereunder or relating thereto whatsoever. Upon failure of
Borrower to pay or perform any of the Obligations when and as the same becomes due and payable and
the same is not made by Borrower within any applicable grace period, if any, Bank may, at its sole
option, accelerate the payment of the Obligations, all accrued interest and other charges payable
thereunder, in which event Guarantor shall pay to Bank, on demand, the entire amount of the
Obligations. Bank shall not be obligated to proceed against, or exhaust any other remedies it may
have under the Loan Documents or any other documents, or resort to any other security held by Bank,
or proceeding against any other guarantor, and Bank may, at its option, proceed directly and at
once, without notice, against Guarantor, to collect and recover the full amount of the liability
hereunder or any portion thereof. Any and all payments due hereunder shall be made in lawful money
of the United States of America at 328 S. Saginaw Street, Flint, Michigan 48502, or such other
address as Bank may from time to time designate.

     2. Guarantor agrees to promptly notify Bank of any pending or threatened litigation, the
outcome of which could have a material adverse effect on the assets, properties, finances or
prospects of Guarantor. Failure to comply with the requirements of this paragraph shall constitute
a default hereunder and under the Loan Documents.

     3. Guarantor acknowledges that: Guarantor has a direct economic investment or interest in
Borrower, as a partner, shareholder, member, trust beneficiary, or otherwise; that Guarantor is
making this Guaranty in Guarantor’s trust capacity; that Guarantor shall remain liable hereunder
whether or not Guarantor retains any financial interest in Borrower; and that Guarantor has
received sufficient consideration for the execution and delivery of this Guaranty in favor of Bank.

     4. The obligations of Guarantor under this Guaranty shall be irrevocable, absolute and
unconditional, and joint and several with all other guarantors of the Loan and shall remain in full
force and effect until the principal balance of the Note, all accrued but unpaid interest on the
Note, and all other Obligations referred to above in Section 1, shall have been irrevocably and
indefeasibly paid in full and Bank has no further obligation to make advances under the Note.

     5. The obligations of Guarantor under this Guaranty shall not be affected, modified or
impaired upon the happening of any event, including, without limitation, any of the following,
whether or not with notice to or the consent of Guarantor:

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     (a) The amendment, modification, revision, supplement, substitution, renewal, extension or
restatement of any security given by Borrower to Bank to secure repayment of the indebtedness
hereby being guaranteed;

     (b) The waiver, release or termination of any of the covenants, agreements or obligations of
Borrower under the Note or Borrower and/or any other guarantor or under any of the other Loan
Documents or the Obligations;

     (c) The amendment, modification, revision, supplement, substitution, renewal, extension or
restatement (whether material or otherwise) of the Note, any other Loan Documents, the Obligations
or any obligation, covenant or agreement as set forth in the Note, in any of the other Loan
Documents or the Obligations;

     (d) Any failure, omission, delay or lack on the part of Bank to enforce, assert or exercise
any right, power or remedy conferred upon it in this Guaranty, in the Note, in any of the other
Loan Documents or the Obligations, or any other acts or omissions on the part of Bank;

     (e) The voluntary or involuntary liquidation, dissolution, sale or other disposition of all or
substantially all of the assets of Borrower or Guarantor, however effected, or receivership,
insolvency, bankruptcy, assignment for the benefit of creditors, reorganizations, arrangement,
composition with creditors or readjustment or other similar proceedings affecting Borrower,
Guarantor, any other guarantor, or any of the assets of Guarantor, or any allegation or contest of
the validity of this Guaranty, the Note, any of the other Loan Documents or the Obligations, or the
disaffirmance of the Note, any of the other Loan Documents or the Obligations in any such
proceeding;

     (f) The invalidity, illegality or unenforceability of the Note, any of the other Loan
Documents or the Obligations; or of any provision of the Note, any of the other Loan Documents or
the Obligations;

     (g) The existence, value or condition of any other security or guaranty, or failure by Bank to
perfect any lien against, or obtain any security for the Obligations or obtain any other guaranty
of the Obligations, or any action or the absence of any action by Bank in respect of such security
or guaranty (including, without limitation, the release of any such security or guaranty); or

     (h) Any other event or action that would, in the absence of this clause, result in the release
or discharge by operation of law of Guarantor from the performance or observance of any obligation,
covenant or agreement contained in this Guaranty.

     6. If after receipt of any payment of all or any part of the Obligations, Bank is for any
reason compelled to surrender such payment to any person or entity, because such payment is
determined to be void or voidable as a preference, impermissible setoff, diversion of trust funds
or for any other reason (including, without limitation, insolvency, bankruptcy, liquidation or
reorganization of Borrower or any other guarantor) then to the extent of that payment, the
Obligations shall be revived and the obligations of Guarantor under
this Guaranty shall be
continued in effect without reduction or discharge for that payment, and this Guaranty shall
continue in full force notwithstanding any contrary action which may have been taken by Bank in
reliance upon such payment, and any such contrary action so taken shall be without prejudice to any
Bank’s rights under

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this Guaranty and shall be deemed to have been conditioned upon such payment having become final, irrevocable and
indefeasible.

     7. No setoff, counterclaim or reduction, no diminution of an obligation, and no defense of any
kind or nature that Guarantor has or may have against Borrower, Bank or any other guarantor shall
affect, modify or impair the obligations hereunder of Guarantor.

     8. For so long as this Guaranty remains in effect, Guarantor shall not have, and Guarantor
hereby expressly waives, releases and discharges during such time, any and every right of
exoneration, subrogation, contribution, reimbursement and indemnity whatsoever, and any and every
right of recourse to security for the debts and Obligations guaranteed hereby, whether against
Borrower, any other guarantor or otherwise, until the Obligations have been irrevocably and
indefeasibly paid in full. Guarantor hereby indemnifies Bank and agrees to defend and hold
harmless Bank from and against the loss, mitigation, subordination or other consequences adverse to
Bank by reason of this Guaranty being challenged as a preference or suffering any other subjugation
under any bankruptcy or other law, whether state or federal, affecting debtors, creditors and/or
the relationship between and among them. Without limiting the generality of the foregoing, for so
long as this Guaranty remains in effect, any and all debts and obligations of Borrower to Guarantor
(or any other guarantor) whether past, present or future are hereby waived, satisfied and
discharged until the Obligations have been irrevocably and indefeasibly paid in full and Bank has
no further obligations to make advances under the Note.

     9. Guarantor hereby expressly waives notice in writing or otherwise from Bank of Bank’s
acceptance of and reliance on this Guaranty. Guarantor agrees to pay and shall be liable for all
costs, expenses and fees, including all reasonable attorneys’ fees, which may be incurred by Bank
in enforcing or attempting to enforce this Guaranty against Guarantor, whether the same shall be
enforced by suit or otherwise and except as may be limited by law or judicial order or decision
entered in an action to seek recovery of such costs, expenses and fees. Guarantor hereby waives
presentment, demand, protest, notice of non-payment, notice of dishonor and all suretyship
defenses.

     10. This Guaranty shall bind Guarantor and Guarantor’s successors and assigns, and shall inure
to the benefit of Bank and its successors and assigns.

     11. If any clause or provision of this Guaranty is held illegal, invalid or unenforceable by
any court, this Guaranty shall be construed and enforced as if such illegal, invalid or
unenforceable clause or provision had not been contained herein.

     12. No remedy herein conferred upon or reserved to the Bank is intended to be exclusive of
any other available remedy or remedies, but each and every such remedy shall be cumulative and
shall be in addition to every other remedy given under this Guaranty or now or hereafter existing
at law or in equity or by statute. No delay or omission to exercise any right or power accruing
upon any default, omission or failure of performance hereunder shall impair any such right or power
or shall be construed to be a waiver thereof, but any such right and power may be exercised from
time to time and as often as may be deemed expedient by the Bank. In order to entitle the Bank to
exercise any remedy reserved to it in this Guaranty, it shall not be necessary to give any notice,
other than such notice as may be herein expressly required. If any provision contained in this
Guaranty should be breached by any party and thereafter duly waived by the other party, such waiver
shall be limited to the particular breach so waived and shall not be deemed to waive any other
breach hereunder. No waiver, amendment, release or modification of this Guaranty shall be established by

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conduct, custom or course of dealing, but solely by an instrument in writing duly executed by the
parties hereto. This Guaranty may be amended only by a written agreement signed by the parties
hereto and accepted by the Bank.

     13. Guarantor hereby 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 the obligations of
Guarantor become due, whether by lapse of time, acceleration of maturity or otherwise, waive the
issuance and service of process, admit the maturity of the obligations of Guarantor, confess
judgment against Guarantor in favor of any holder of this Guaranty 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. Guarantor expressly (a) waives a conflict of
interest as to any attorney retained by Bank to confess judgment against Guarantor upon this
Guaranty, and (b) consents to the attorney retained by Bank receiving a legal fee from Bank for
legal services rendered for confessing judgment against Guarantor, upon this Guaranty. A copy of
this Guaranty, 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 Guarantor, additional exercises thereof or any imperfect exercise thereof, shall not be
extinguished by any judgment entered pursuant thereto.

     14. This Guaranty is a continuing and unconditional guaranty of payment and performance and
not of collection and Guarantor’s obligations hereunder shall be primary and absolute. This
Guaranty shall be deemed to be a contract made under the laws of the State of Ohio and for all
purposes shall be governed by and construed in accordance with the laws of said State. Guarantor
represents and warrants that this Guaranty is being executed and delivered in the State of Ohio.

     15. Guarantor hereby represents and warrants to Bank that:

     (a) Guarantor is an Ohio trust duly organized, validly existing and in good standing under
the laws of the State of Ohio; that Guarantor has the right, power and authority to execute,
deliver and perform this Guaranty; and that Guarantor has been authorized to enter into this
Guaranty by all necessary and proper action;

     (b) this Guaranty constitutes the legal, valid and binding obligation of Guarantor
enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights generally and by the availability of equitable remedies;

     (c) the execution, delivery and performance of this Guaranty will not violate any provision
of any applicable law or material contractual obligation of Guarantor and will not result in the
creation or imposition of any lien upon or with respect to any property or revenues of Guarantor;
and that the execution, delivery and performance of this Guaranty will not violate any provision of
Guarantor’s Trust Agreement or any other organization or governing documents of Guarantor;

     (d) no consent or authorization of, filing with, or other act by or in respect of, any
arbitrator or governmental authority and no consent of any other person (including, without
limitation, any beneficiary of Guarantor), is required in connection with the execution, delivery,
performance, validity or enforceability of this Guaranty;

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     (e) no actions, suits or proceedings before any court, tribunal, arbitrator or governmental
authority are pending or, to the knowledge of Guarantor, threatened by or against Guarantor or
against any of its properties or with respect to this Guaranty or any of the transactions
contemplated hereby;

     (f) Guarantor shall preserve and maintain its existence, rights, franchises and privileges in
the jurisdiction of the State of Ohio or in any other jurisdiction required by law; and

     (g) It shall not permit any legal or beneficial interest in Guarantor to be sold, assigned,
transferred, pledged or otherwise encumbered.

     16. GUARANTOR HEREBY, AND BANK BY ITS ACCEPTANCE HEREOF, EACH WAIVES THE RIGHT OF A JURY TRIAL
IN EACH AND EVERY ACTION ON THIS GUARANTY OR ANY OF THE OTHER LOAN DOCUMENTS, IT BEING ACKNOWLEDGED
AND AGREED THAT ANY ISSUES OF FACT IN ANY SUCH ACTION ARE MORE APPROPRIATELY DETERMINED BY THE
COURTS. FURTHER, GUARANTOR HEREBY CONSENTS AND SUBJECTS GUARANTOR 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.

     17. Except for a notice required under applicable law to be given in another manner, any
notice or other communication required or permitted to be given by this Guaranty or the other Loan
Documents or by applicable law shall be in writing and shall be deemed received (a) on the date
delivered, if sent by hand delivery to the address set forth on the first page of this Guaranty,
(b) three (3) business days following the date deposited in U.S. mail, certified or registered,
with return receipt requested, or (c) one (1) business day following the date deposited with
Federal Express or other nationally recognized overnight carrier, and in each case delivered to the
address set forth on the first page of this Guaranty. Either party may change its address to
another single address by notice given as herein provided, except any change of address notice must
be actually received in order to be effective. Notwithstanding the foregoing, routine
communications such as statements, invoices, copies of documents, and the like, may be sent by
First Class U.S. Mail.

[Remainder of Page Intentionally Left Blank]

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     18. If the Loan is guaranteed by more than one guarantor, whether in this instrument or by
other instruments, the obligations of Guarantor under this Guaranty shall be joint and several with
all other guarantors.

     IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be executed and delivered to Bank in
the State of Ohio as of the date first above written.

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.

	 	 	 	 	 
	 	 	 
	 	                                   /s/ Richard M. Osborne
 	 
	 	RICHARD M. OSBORNE, TRUSTEE 	 
	 	UNDER RESTATED TRUST

AGREEMENT OF JANUARY 13, 1995 	 

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EXHIBIT 10.29

CREDIT AGREEMENT

     THIS CREDIT AGREEMENT (this “Agreement”) is entered into effective as of the 3rd day of July,
2008, by and between GREAT PLAINS LAND DEVELOPMENT COMPANY, LTD., an Ohio limited liability company
(hereinafter referred to as “Borrower”) and CITIZENS BANK (hereinafter referred to as “Bank”).

Section 1. Definitions.

     1.1 “Account Debtor” means the Person who is obligated on an Account.

     1.2 “Account(s)” means all accounts, accounts receivable, health-care-insurance receivables,
credit card receivables, contract rights, instruments, documents, chattel paper, 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 Borrower; all
guaranties, letters of credit and other security and supporting obligations for any of the above;
all merchandise resumed to or reclaimed by Borrower 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 all
“Accounts” as same is now or hereafter defined in the Uniform Commercial Code.

     1.3 “Affiliate” means, (a) any Person which, directly or indirectly, is in control of, is
controlled by or is under common control with, Borrower, or (b) any person who is a member,
manager, officer or employee (i) of Borrower or (ii) of any Person described in the preceding
clause (a). A Person will be deemed to control another Person if such Person possesses, directly
or indirectly, the power to (a) vote ten percent (10%) or more of the voting equity of such other
Person, or (b) direct or cause the direction of the management and policies of such other Person,
whether through voting securities, by contract or otherwise.

     1.4 “Agreement” means this Credit Agreement either as originally executed or as it may from
time to time be amended, modified, supplemented, substituted, extended, revised, renewed or
restated.

     1.5 “Applicable LIBOR Rate” shall mean the London Interbank Offered Rate for one (1) month
interbank interest settlements, as established by the British Bankers Association (“BBA”), rounded
upwards to the nearest whole multiple of 1/8 of 1%, appearing on Telerate Markets Page 3750 (or any
successor page thereto), or as reported by any generally accepted authoritative source (as
determined in Bank’s sole discretion), in United States dollars at approximately 11:00 A.M. London
time (or as soon thereafter as practicable) two (2) Business Days (as hereinafter defined) prior to
the applicable interest rate adjustment date, all as conclusively determined by Bank. If the BBA
ceases to make such determinations, Bank will select an alternate source for similar quotations, as
determined in Bank’s sole discretion. The initial rate shall be equal to Applicable LIBOR Rate as
of two (2) Business Days prior to the Closing Date. The Applicable LIBOR Rate will change monthly,
commencing on August 1, 2008 and on the first day of each month thereafter, based on the Applicable
LIBOR Rate as of two (2) Business Days prior to the applicable change date.

     1.6 “Assignment of Contracts” means the Assignment of Contracts dated of even date herewith
between Borrower and Bank securing the Obligations, as the same may from time to time be amended,
modified, revised, supplemented, substituted, extended, renewed or restated.

     1.7 “Authorized Borrower Representative” means each of one or more Persons authorized in
writing from time to time by Borrower, with the approval of Bank, to deliver certificates, requests
for disbursements and other documents and material to Bank pursuant to this Agreement.

     1.8 “Business Day” shall mean a day of the year on which banks are not required or authorized
to close in Cleveland, Ohio, and on which dealings are carried on in the London interbank
eurodollar market.

     1.9 “Closing Date” means the date on which this Agreement and the other Loan Documents are
executed and delivered to Bank.

 

 

     1.10 “Collateral” has the meaning assigned to that term in Section 2.4 of this Agreement and
in the Security Agreement.

     1.11 “Current Maturities of Long Term Debt” means that portion of the principal amount of Long
Term Debt which must be repaid during the twelve fiscal months following the date in which the
determination is being made.

     1.12 “Debt Service Coverage Ratio” means the ratio of (a) the sum of Borrower’s combined net
income for a measuring period before interest, taxes, depreciation and amortization, less
distributions, dividends and any extraordinary gains, plus any extraordinary losses, to (b) the sum
of Borrower’s Current Maturities of Long Term Debt and interest expense for such measuring period.

     1.13 “Default Rate” means five percent (5%) in excess of the interest rate otherwise in effect
under amounts outstanding under the Note. In no event will the interest rate accruing under the
Note be increased to be in excess of the maximum interest rate permitted by applicable state or
federal usury laws then in effect.

     1.14 “EBITDA” means on a consolidated basis, the amount of Borrower’s earnings before
interest, taxes, depreciation and amortization expense for the measurement period.

     1.15 “Environmental Permit” means any permit, license, or other authorization issued under any
Hazardous Materials Law with respect to any activities or businesses conducted on or in relation to
the Property.

     1.16 “ERISA” means the Federal Employee Retirement Income Security Act of 1974.

     1.17 “Event(s) of Default” will have the meaning set forth in Section 6.1 of this Agreement.

     1.18 “GAAP” means generally accepted accounting principles set forth from time to time in the
opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board (or agencies with similar functions of comparable stature and authority within the
accounting profession), which are applicable to the circumstances as of the date of determination.

     1.19 “Guaranty” means collectively the Guaranty executed by each Guarantor whereby each
Guarantor irrevocably and unconditionally, and jointly and severally, guarantees to Bank the
payment and performance of all Obligations of Borrower hereunder and under the Loan Documents, as
the same may from time to time be amended, modified, revised, supplemented, substituted, extended,
renewed or restated.

     1.20 “Guarantors” mean collectively Richard M. Osborne, individually as a natural person
(“RMO”), Richard M. Osborne, Trustee under Restated Trust Agreement of January 13, 1995, and Great
Plains Natural Gas Company, an Ohio corporation, jointly and severally.

     1.21 “Hazardous Materials” means petroleum and petroleum products and compounds containing
them, including gasoline, diesel fuel and oil; explosives; flammable materials; radioactive
materials; polychlorinated biphenyls (“PCBs”) and compounds containing them; lead and lead-based
paint, asbestos or asbestos-containing materials in any form that is or could become friable;
underground storage tanks, whether empty or containing any substance; any substance the presence of
which on the Property is prohibited by any federal, state or local authority; any substance that
requires special handling; and any other material or substance now or in the future defined as a
“hazardous substance,” “hazardous material,” “hazardous waste,” “toxic substance,” “toxic
pollutant,” “contaminant,” or “pollutant” within the meaning of any Hazardous Materials Law.

     1.22 “Hazardous Materials Laws” means all federal, state, and local laws, ordinances and
regulations and standards, rules, policies and other governmental requirements, administrative
rulings and court judgments and decrees in effect now or in the future and including all
amendments, that relate to Hazardous Materials and apply to Borrower or to the Property. Hazardous
Materials Laws include, but are not limited to, the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. Section 9601, et seq., the Resource Conservation and
Recovery Act,. 42 U.S.C. Section 6901, et seq., the Toxic Substance Control Act, 15 U.S.C.

2

 

Section 2601, et seq., the Clean Water Act, 33 U.S.C. Section 1251, et seq., and the Hazardous Materials
Transportation Act, 49 U.S.C. Section 1801, and their state analogs.

     1.23 “Indebtedness” means (a) all items (except items of capital stock, capital surplus,
general contingency reserves, retained earnings, deferred income taxes, amounts attributable to
minority interests, if any) which in accordance with generally accepted accounting principles would
be included in determining total liabilities on a consolidated basis as shown on the liability side
of a balance sheet as at the date as of which Indebtedness is to be determined, (b) all
indebtedness secured by any mortgage, pledge, lien or conditional sale or other title retention
agreement to which any property or asset owned or held is subject, whether or not the indebtedness
secured thereby will have been assumed (excluding non-capitalized leases which may amount to title
retention agreements but including capitalized leases), and (c) all indebtedness of others which
Borrower or any Subsidiary of Borrower has directly or indirectly guaranteed, endorsed (otherwise
than for collection or deposit in the ordinary course of business), discounted or sold with
recourse or agreed (contingently or otherwise) to purchase or repurchase or otherwise acquire, or
in respect of which Borrower or any Subsidiary of Borrower has agreed to apply or advance funds
(whether by way of loan, stock purchase, capital contribution or otherwise) or otherwise to become
directly or indirectly liable.

     1.24 “Interest Rate” shall mean the Applicable LIBOR Rate (as adjusted from time to time) PLUS
two hundred twenty-five (225) basis points, as adjusted from time to time as provided herein.

     1.25 “Inventory” means all goods, supplies, wares, merchandises, 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.

     1.26 “Lien” means any security interest, mortgage, pledge, assignment, lien or other
encumbrance of any kind, including interests of vendors or lessors under conditional sale contracts
and capitalized leases.

     1.27 “Loan Documents” means this Agreement, the Term Note, the Security Agreement, the
Guaranty, and every other document or agreement executed by any party evidencing or securing any of
the Obligations, as the same may from time to time be amended, modified, revised, supplemented,
substituted, extended, renewed or restated, and “Loan Document” means any one of the Loan
Documents.

     1.28 “Loan” means the Term Loan.

     1.29 “Long Term Debt” means any Indebtedness or obligation of Borrower which, by its terms, is
not payable in full within one year from the date incurred, or the repayment of which may, at the
option of Borrower, be extended for a period more than one year from the date incurred.

     1.30 “Note” means the Term Note.

     1.31 “Obligation(s)” is used in its most comprehensive sense and includes, without limitation,
all loans, advances, debts, indebtedness, liabilities and obligations (including, principal,
interest, late charges, collection costs, attorneys’ fees and the like) of Borrower owed to Bank
and/or any affiliate of Citizens Republic Bancorp, of every kind, nature and description, whether
now existing or hereafter arising, either created by Borrower alone or together with another or
others, or acquired by Bank or any affiliate of Citizens Republic Bancorp, by purchase, assignment
or otherwise, and whether direct or indirect, primary or as guarantor or surety, secured or unsecured, absolute or contingent, liquidated or unliquidated, whenever and however
arising, whether evidenced by note, draft, letter of credit, application for letter of credit or
otherwise, and any renewals, amendments, modifications, restatements of or substitutes therefor.
The term “Obligations” shall include, but not be limited to, all indebtedness owed by Borrower to
Bank by reason of credit extended or to be extended under this Agreement, Note, the other Loan
Documents, any Rate Management Agreement, and any other document or instrument related to any of
the foregoing. It is Borrower’s express intention that the term “Obligations” shall include, but
not be limited to, all present Obligations of Borrower to Bank, shall extend to all future
Obligations of Borrower to Bank, whether or not such Obligations

3

 

are increased, reduced or entirely
extinguished and thereafter increased, reduced or reincurred, whether or not such Obligations are
related to the indebtedness identified above by class, type or kind and whether or not such
Obligations are specifically contemplated by Borrower and Bank as of the date hereof.

     1.32 “Permitted Liens” has the meaning assigned thereto as set forth in Section 3.9 of this
Agreement.

     1.33 “Person” means and includes an individual, corporation, partnership, trust,
unincorporated organization or association and a government or any department or agency thereof.

     1.34 “Property” means the location where the Collateral is located as described in Exhibit
A to the Security Agreement.

     1.35 “Rate Management Agreement” means any Rate Management Transaction and any other
agreement, device or arrangement providing for payments which are related to fluctuations of
interest rates, exchange rates or forward rates, including, but not limited to, dollar-denominated
or cross-currency interest rate exchange agreements, forward currency exchange agreements, interest
rate cap or collar protection agreements, forward rate currency or interest rate options, puts and
warrants, including without limitation any ISDA Master Agreement between Borrower and Bank, and any
schedules, confirmations and documents and other confirming evidence between the parties confirming
transactions thereunder, all whether now existing or hereafter arising, and in each case as
amended, modified or supplemented from time to time.

     1.36 “Rate Management Obligations” means any and all obligations of Borrower to Bank, whether
absolute, contingent or otherwise and howsoever and whensoever (whether now or hereafter) created,
arising, evidenced or acquired (including all renewals, extensions and modifications thereof and
substitutions therefor), under or in connection with (i) any and all Rate Management Agreements,
and (ii) any and all cancellations, buy backs, reversals, terminations or assignments of any Rate
Management Agreement.

     1.37 “Rate Management Transaction” means any transaction (including an agreement with respect
thereto) now existing or hereafter entered into between Borrower and Bank which is a rate swap
transaction, basis swap, forward rate transaction, commodity swap, commodity option, equity or
equity index swap, equity or equity index option, bond option, interest rate option, foreign
exchange transaction, cap transaction, floor transaction, collar transaction, forward transaction,
currency swap transaction, cross-currency rate swap transaction, currency option or any other
similar transaction (including any option with respect to any of these transactions) or any
combination thereof, whether linked to one or more interest rates, foreign currencies, commodity
prices, equity prices or other financial measures, or any other transaction which is governed by
any ISDA Master Agreement between Borrower and Bank.

     1.38 “Security Agreement” means the Security Agreement dated of even date herewith, between
Borrower and Bank securing the Obligations, as the same may from time to time be amended, modified,
revised, supplemented, substituted, extended, renewed or restated.

     1.39 “Subsidiary” means any corporation or other entity of which Borrower directly or
indirectly owns or controls at the time outstanding stock or ownership interests having under
ordinary circumstances (not depending on the happening of a contingency) voting power to elect a
majority of the board of directors, members or managers of said corporation.

     1.40 “Tangible Net Worth” means a total of the capital stock (less treasury stock), paid-in
surplus, general contingency reserves, subordinated debt, retained earnings (deficit) of Borrower
and any Subsidiary of Borrower as determined on a consolidated basis in accordance with generally
accepted accounting principles consistently applied, after eliminating all inter-company items and
all amounts properly attributable to minority interests, if any, in the stock and surplus of any
Subsidiary, minus the following items (without duplication of deductions) if any, appearing
on the consolidated balance sheet of Borrower:

     (i) Intentionally Omitted

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     (ii) the book amount of all assets which would be treated as intangibles
under generally accepted accounting principles, including, without limitation, such
items as good-will, trademark applications, trade names, service marks, brand
names, copyrights, patents, patent applications and licenses, and rights with
respect to the foregoing; and

     (iii) the amount by which aggregate inventories or aggregate securities
appearing on the asset side of such consolidated balance sheet exceed the lower of
cost or market value (at the date of such balance sheet) thereof;

     (iv) Intentionally Omitted

     (v) Intentionally Omitted

     1.41 “Term Loan” means the Term Loan referred to in Section 2.1 hereof, as the same may from
time to time be amended, modified, revised, supplemented, substituted, extended, renewed or
restated.

     1.42 “Term Note” means the Tern Note dated of even date herewith from Borrower payable to the
order of Bank in the principal amount of Eight Hundred Ninety-Two Thousand Three Hundred and no/100
Dollars ($892,300.00) evidencing the Term Loan, as the same may from time to time be amended,
modified, revised, supplemented, substituted, extended, renewed or restated.

     All financial terms used in this Agreement but not defined in this Section 1 or in the
Security Agreement have the meanings given to them by generally accepted accounting principles,
consistently applied. All other undefined terms have the meanings given to them in the Uniform
Commercial Code as in effect from time to time in the State of Ohio.

Section 2. Loan.

     2.1 Term Loan. Subject to the terms and conditions of this Agreement, Bank hereby
agrees to lend to Borrower a term loan in the principal amount of Eight Hundred Ninety-Two Thousand
Three Hundred and no/100 Dollars ($892,300.00), on the terms and conditions hereinafter set forth
and as set forth in the Term Note. The proceeds of the Term Loan shall be used solely for costs
related to refinancing current Indebtedness of Borrower with National City Bank. The term of the
Term Note shall be payable over a 364-day term with amortization based on a fifteen (15)-year
straight-line level payment principal plus interest amortization period.

Bank acknowledges that Borrower or an Affiliate of Borrower has made application to the Public
Utilities Commission of Ohio (“PUCO”) for approval to enter into a long term note made payable to
Bank and further acknowledges that prior approval of the PUCO must be obtained for any notes
payable for a period of more than twelve months after the date of making the note. Subject to and
only after the receipt of the required approval of the PUCO in Case No. 08-699-GA-AIS on or prior
to the 364th day after the date of the Term Note (the “PUCO Approval”), Bank and
Borrower agree that on the 365th day after the date of the Term Note, the Term Note
shall convert to a four (4)-year term loan payable over a four (4)-year period with amortization
based on a fourteen (14)-year straight-line level payment principal plus interest amortization
period. Upon conversion as foresaid, the Term Loan shall mature on July ___, 2013, unless earlier
accelerated as provided herein or in the Term Note (the “Term Loan Maturity” or “Term Loan Maturity
Date”). If the PUCO Approval is not obtained by the 364th day after the date of the Term
Note, the Term Note shall become due and payable on said 364th day after the date of the
Term Note, which date shall then be the Term Loan Maturity or Term Loan Maturity Date. The Term
Note shall bear interest at a variable rate equal to the Interest Rate per annum. In the event of a
change in the Interest Rate from time to time, the interest rate under the Term Note shall change
without notice as of the first day of each month. Interest shall be calculated based on a 360-day
year and charged for the actual number of days elapsed. After maturity of the Term Note, whether as
stated, by acceleration or otherwise, the Term Note shall bear interest (computed in the same
manner, and with the same effect, as interest hereon prior to maturity but at the higher rate)
payable on demand, at a rate per annum equal to the Default Rate, until paid, and whether before or
after the entry of judgment hereon. Any amounts repaid under the Term Note may not be re-borrowed.
All payments under the Term Note shall be payable in lawful money of the United States of America
to Bank at its office at 328 S. Saginaw Street, Flint, Michigan 48502, or at such place as shall
hereafter be designated by written notice from the holder to

5

 

Borrower. To evidence the Term Loan,
Borrower shall execute and deliver to Bank the Term Note, in the form of Exhibit B attached
hereto, with appropriate insertions, the terms of which are incorporated herein by this reference.
Borrower shall make principal plus interest payments on the Term Loan due and payable monthly and
continuing on the first day of each month, commencing on September 1, 2008, and continuing on the
first day of each and every consecutive month thereafter, with a final payment in the amount of the
then remaining balance of principal, plus interest thereof due and payable in full on Term Loan
Maturity Date. The monthly principal plus interest payment amounts shall be based on the
straight-line level payment principal plus interest amortization schedules set forth above. Upon
each change in the Interest Rate, upward or downward, the amount of the monthly interest payments
will be correspondingly adjusted on the first monthly payment due date following such interest rate
adjustment. Borrower may prepay the principal balance of the Term Note, in whole or in part,
without premium or penalty. However, in the event Borrower and Bank enter into one or more Rate
Management Agreements, pursuant to which Borrower is managing interest rate risk associated
with
the Term Note, under certain circumstances described in the Rate Management Agreement, Borrower may
incur additional financial obligations in the nature of early termination payments (“Termination
Obligations”) if the Term Note is prepaid. Subject to satisfying any applicable Termination
Obligations, Borrower is not legally prohibited from paying all or a portion of the Term Note
balance earlier than it is due, but Borrower should consult with Bank and consider the financial
impact of such action before doing so. In the case of a partial prepayment of the Term Note, a
corresponding adjustment to the Rate Management Agreement (“Partial Termination”) is recommended to
preserve Borrower’s right of consolidated financial accounting treatment for the Term Note and the
Rate Management Agreement. Any such early payments shall not, unless agreed to by Bank in writing,
relieve Borrower of Borrower’s obligation to continue to make payments under the Term Note payment
schedule. Borrower agrees not to send Bank payments marked “paid in full”, “without recourse”, or
similar language. If Borrower sends such a payment, Bank may accept it without losing any of
Bank’s rights under the Term Note, and Borrower will remain obligated to pay any further amount
owed to Bank. All written communications concerning disputed amounts, including any check or other
payment instrument that indicates that the payment constitutes “payment in full” of the amount owed
or that is tendered with other conditions or limitations or as full satisfaction of a disputed
amount must be mailed or delivered to: Citizens Bank, P.O. Box 1790, Flint, Michigan 48501-1790.

     2.3 Loan Fee.

     (a) Fees. Borrower shall pay to Bank a loan fee in the amount of Two Thousand Two
Hundred Thirty-One and no/100 Dollars ($2,231.00) which shall be due and payable on or before the
date hereof, said fee being deemed earned in full upon payment and shall be non-refundable (the
“Loan Fee”).

     (b) Intentionally Omitted.

     2.4 Security. To secure the prompt payment when due of all principal and interest
advanced by Bank pursuant to the Note, as well as for the payment of the Obligations and any and
all other sums owing pursuant to this Agreement or the other Loan Documents, and for the
performance and observance of all of the covenants, agreements and conditions contained in the
Note, this Agreement, all other Loan Documents or with respect to the Obligations, whether now
existing or hereafter arising, either created by Borrower alone or together with another or others,
primary or secondary, secured or unsecured, absolute or contingent, liquidated or unliquidated,
direct or indirect, whether evidenced by note, draft, application for letters of credit or
otherwise, and any and all renewals, amendments, modifications, restatements of or substitutes
therefore: Borrower hereby grants to Bank a first continuing security interest in all of Borrower’s
accounts, chattel paper, instruments and general intangibles, machinery and equipment, inventory and supplies, all furniture and fixtures and interest in joint
ventures or other entities, as more fully described in, and pursuant to, the Security Agreement,
and all additions, substitutions, increments, proceeds and products with respect thereto, whether
now or later acquired, and all contracts as more fully described in, and pursuant to, the
Assignment of Contracts, and all additions, substitutions, increments, proceeds and products with
respect thereto, whether now or later acquired (all of the property described in the Security
Agreement and the Assignment of Contracts are hereinafter collectively referred to as the
“Collateral”). It is Borrower’s express intention that this Agreement and the continuing security
interest granted hereby and pursuant to the Security Agreement, in addition to covering all present
Obligations of Borrower to Bank, including, but not limited to, the Note, shall extend to all
future Obligations of Borrower, whether jointly or severally, to Bank, whether or not such
Obligations are increased, reduced or entirely extinguished and thereafter increased, reduced or
reincurred, and whether or not such Obligations are specifically contemplated by Borrower and Bank
as of the date

6

 

hereof. The absence of any reference to this Agreement in any documents,
instruments or agreements evidencing or relating to any Obligation secured hereby shall not limit
or be construed to limit the scope or applicability of this Agreement.

Section 3. Representations and Warranties. Borrower hereby warrants and represents to Bank
the following:

     3.1 Organization and Qualification. Borrower is a duly organized, validly existing
limited liability company in good standing under the laws of the State of Ohio, has the requisite
company power and authority to own and lease its properties and to carry on its business and to
enter into and perform this Agreement, the Note, the Security Agreement, and the other Loan
Documents, is qualified and licensed to do business in the State of Ohio and each other
jurisdiction in which the nature of business conducted by it makes such qualification necessary or
where the failure to be so qualified would have a material adverse effect on its business, assets
or financial condition, or its performance of its obligations under the Loan Documents. All
information provided to Bank with respect to Borrower and its operations is true and correct in all
material respects.

     3.2 Due Authorization. Borrower has all requisite power and authority to execute and
deliver, and to perform all of its obligations under the Note and the other Loan Documents. The
execution, delivery and performance by Borrower of this Agreement, the Security Agreement, the
Assignment of Contracts, the Note and the other Loan Documents have been duly authorized by all
necessary company action, and will not: (a) contravene any law or any governmental rule or order
binding on Borrower, or its Articles of Organization, Operating Agreement or other governing
documents of Borrower, (b) violate any agreement or instrument by which Borrower is bound, (c)
result in the creation of a Lien on any assets of Borrower except the Lien to Bank granted herein;
(d) violate any provision of any law, rule, regulations, order, writ, judgment, injunction, decree,
determination or award presently in effect having applicability to Borrower; or (e) result in a
breach of or constitute a default under, or cause or permit the acceleration of any obligation owed
under, any indenture or loan or credit agreement, lease, or instrument to which Borrower is a party
or by which Borrower or any of its properties or assets is bound or affected. Borrower has duly
executed and delivered this Agreement, the Security Agreement, the Note and the other Loan
Documents and they are valid and binding obligations of Borrower enforceable against Borrower in
accordance with their respective terms except as limited by equitable principles and by bankruptcy,
insolvency or similar laws affecting the rights of creditors generally. No notice to or consent by
any governmental body is needed in connection with this transaction. The signing persons or
entities of Borrower are fully authorized to execute this Agreement, the Note and the other Loan
Documents on behalf of Borrower.

     3.3 Litigation. There are no suits or proceedings pending or to the best of
Borrower’s knowledge, threatened, against or affecting Borrower or its assets or properties, and no
proceedings before any governmental body are pending or threatened, against Borrower or its assets
or properties.

     3.4 Margin Stock. No part of the Loan shall be used to purchase or carry, or to
reduce or retire or refinance any credit incurred to purchase or carry, any margin stock (within
the meaning of Regulations U and X of the Board of Governors of the Federal Reserve System) or to
extend credit to others for the purpose of purchasing or carrying any margin stock. If requested
by Bank, Borrower shall furnish to Bank statements in conformity with the requirements of Federal
Reserve Form U-1.

     3.5 Business. Borrower is not a party to or subject to any agreement or restriction
which in the opinion of Borrower’s management is so unusual or burdensome that it might have a
material adverse effect on Borrower’s business, properties or prospects.

     3.6 Licenses and Permits. Borrower has obtained any and all licenses, permits,
franchises, governmental authorizations, patents, trademarks, copyrights or other rights necessary
for the ownership of its properties and the advantageous conduct of its business as currently being
conducted. Borrower possesses adequate licenses, patents, patent applications, copyrights,
trademarks, trademark applications, and trade names to continue to conduct its business as
heretofore or hereafter to be conducted by it, without any conflict with the rights of any other
person or entity. All of the foregoing are in full force and effect and none of the foregoing are
known to be in conflict with the rights of others.

7

 

     3.7 Laws and Taxes. Borrower is in compliance with all laws, regulations, rulings,
orders, injunctions, decrees, conditions or other requirements applicable to or imposed upon
Borrower by any law or by any governmental authority, court or agency (collectively, “Requirements
of Law”). Borrower has filed all required tax returns and reports that are now required to be
filed by it in connection with any federal, state and local tax, duty or charge levied, assessed or
imposed upon Borrower or its assets, including unemployment, social security, and real estate
taxes. Borrower has paid all taxes which are now due and payable. No taxing authority has asserted
or assessed any additional tax liabilities against Borrower which are outstanding on the date of
this Agreement, and Borrower has not filed for any extension of time for the payment of any tax.

     3.8 Financial Condition. All financial information relating to Borrower which has
been or may hereafter be delivered to Bank is true and correct in all material respects and has
been prepared in accordance with generally accepted accounting principles consistently applied.
Borrower has no material obligations or liabilities of any kind not disclosed in that financial
information, and there has been no material adverse change in the financial condition of Borrower
nor has Borrower suffered any damage, destruction or loss which has materially adversely affected
its business or assets since the submission of the most recent financial information to Bank.

     3.9 Title. Borrower has good and marketable title to the assets reflected on the most
recent balance sheet submitted to Bank, free and clear from all liens and encumbrances of any kind,
except for (collectively, the “Permitted Liens”): (a) current taxes and assessments not yet due
and payable, (b) assets disposed of in the ordinary course of Borrower’s business, and (c) any
security interests, pledges, assignments or mortgages granted to Bank to secure the repayment or
performance of the Obligations.

     3.10 Defaults. Borrower is in compliance with all material agreements applicable to
it and there does not now exist any default or violation by Borrower of or under any of the terms,
conditions or obligations of (a) its Articles of Organization, Operating Agreement and other
organizational or governing documents, or (b) any indenture, mortgage, deed of trust, franchise,
permit, contract, agreement or other instrument to which Borrower is a party or by which it is
bound, and the consummation of the transactions contemplated by this Agreement shall not result in
such default or violation.

     3.11 Environmental Matters.

     (a) There have been no claims, notices, orders, or directives on environmental
grounds made or delivered to, pending or served on Borrower or its agents, or which Borrower or its
agents are aware, issued by any governmental department or agency having jurisdiction over the
Property, affecting the Property or any part thereof requiring any work to be done upon or about
the Property or any part thereof, including, but not limited to, clean-up orders; or issued or
claimed by any private agency or individual affecting the Property or any part thereof.

     (b) There have not been, are not now and as of the Closing Date, there will be no
solid waste, hazardous wastes, hazardous substances, toxic substances, toxic chemicals, pollutants
or contaminants, underground storage tanks, purposeful dumps, substances, wastes, pollutants,
contaminants or accidental spills in, on or about the Property, or no solid wastes, hazardous
wastes, toxic substances, hazardous substances, pollutants or contaminates, wastes, or pollutants,
that are stored on the Property either by Borrower or by Borrower’s lessees, licensees, invitees or predecessors, except for such amounts used in the ordinary course of Borrower’s or
such lessees’, licensees’, invitees’ or predecessors’ business and in accordance with all
applicable Hazardous Materials Laws.

     (c) There has not been, is not now and as of the Closing Date, there will be no
filtering into ground water or transmission by seepage or other drain or transfer any solid wastes,
hazardous wastes, hazardous substances, toxic substances, pollutants or contaminants, or wastes
which have effected, is now effecting or as of the Closing Date, will effect adjoining sites.

     (d) All definitions of hazardous wastes, toxic substances, or other similar terms
used in this Agreement have the meaning within the Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. 9601 et seq. (“CERCLA”), or if not defined
therein, have such meaning as defined in all other federal, state and local environmental statutes,
rules and regulations.

8

 

     (e) Borrower agrees that Bank shall not assume any liability or obligation for loss,
damage, fines, penalties, claims or duty to clean-up or dispose of wastes or materials on or
relating to the Property, regardless of any inspections of the Property made by Bank prior to the
consummation of this transaction. Borrower agrees to remain fully liable and shall indemnify and
hold harmless Bank from any costs, expenses, clean-up costs, waste disposal costs, litigation
costs, fines, penalties, including without limitation, those costs, expenses, penalties and fines
within the meaning of CERCLA, and any other related liabilities upon the occurrence of a breach of
any of Borrower’s foregoing representations and warranties.

     3.12 Subsidiaries and Partnerships. Borrower has no subsidiaries. Borrower is not a
party to any partnership agreement or joint venture agreement.

     3.13 ERISA. Borrower is in compliance with all of its obligations to contribute to
any employee benefit plan or pension plan regulated by the Federal Employee Retirement Income
Security Act of 1974 (“ERISA”). Borrower has not received notice informing it that it is not in
full compliance with any of the requirements of ERISA, and the regulations promulgated thereunder
and, there exists no event described in Section 4043(3) thereof (“Reportable Event”).

     3.14 Statements. Any certificate or written statement or the most recent projections
furnished prior to the date of this Agreement by Borrower to Bank or any other person in connection
with the negotiation of this Agreement or any of the other Loan Documents or the transactions
contemplated hereby, to the best knowledge of Borrower after reasonable inquiry, does not contain
any untrue statement of a material fact and does not omit any material fact necessary to make the
statements contained herein or therein, in the light of the circumstances under which it was made,
not misleading.

     3.15 Solvency. Borrower is Solvent and upon consummation of the transactions
contemplated by this Agreement will be Solvent. “Solvent” means that: (a) the present fair
salable value of Borrower’s assets is in excess of the total amount of its liabilities (including
contingent liabilities); (b) Borrower does not have unreasonably small capital and is able to pay
its debts as they become due; and (c) Borrower does not intend to or believe it will incur
obligations beyond its ability to pay as they mature.

     3.16 Chief Executive Office and Principal Place of Business. Borrower has its chief
executive office and principal place of business at 8500 Station Street, Mentor, Ohio 44060, and
each other location where Borrower maintains a place of business is set forth on Exhibit
3.16 attached hereto and incorporated herein by this reference.

     3.17 Consents. No authorization, consent, approval, order, license, exemption from,
or filing or registration or qualification with, any court or governmental department, public body,
authority, commission, board, bureau, agency, or instrumentality, not heretofore obtained or not
reasonably obtainable by the date of issuance and delivery of the Note or the other Loan Documents
is or will be required to authorize, or is otherwise required in connection with the following:

     (a) the execution and delivery by Borrower of, and the performance by Borrower of
all of its obligations under, the Note and the other Loan Documents, or

     (b) the creation of the liens, security interests, or other charges or encumbrances
described in the Note or the other Loan Documents.

     3.18 Enforceability. Each of the Loan Documents, when executed and delivered, will
constitute the legal, valid and binding obligation of Borrower (to the extent Borrower is a party
thereto or obligated thereunder), enforceable against Borrower in accordance with its terms, except
as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or
other similar laws in effect from time to time relating to or affecting the enforcement of
creditors’ rights and general principles of equity.

     3.19 No Material Adverse Change. Since the Borrower’s fiscal quarter ended March 31,
2008:

     (a) There has not been any material adverse change or any development involving a prospective
material adverse change, financial or otherwise, in the condition of Borrower, or in the results of
its operations, and

9

 

there have not been any material transactions, obligations or liabilities
entered into or incurred by Borrower other than transactions, obligations or liabilities in the
ordinary course of its business.

     (b) Borrower does not have and has not incurred any material liabilities or obligations,
direct or contingent, which have not been disclosed to Bank. There has been no change in the
properties, the condition (financial or otherwise) or earnings of Borrower, whether or not arising
from transactions in the ordinary course of business, which would materially and adversely affect
Borrower’s ability fully to perform all of its obligations under this Agreement.

     3.20 Tax Liability. Borrower has filed all tax returns (federal, state and local)
required to be filed and has paid all taxes shown thereon to be due and all property taxes due,
including interest and penalties, if any; provided, however, that Borrower shall not be required to
pay and discharge any such tax so long as the legality thereof shall be promptly and actively
contested in good faith and by appropriate proceedings. Borrower has established and will maintain
adequate reserves for tax liabilities, if any (including any tax liabilities contested pursuant to
this Section 3.20).

     3.21 Compliance with Laws. Borrower is and shall remain in compliance in all material
respects with all laws, regulations and requirements applicable to its business and has obtained to
the extent reasonably obtainable by the Closing Date of all authorization, consents, approvals,
orders, licenses, exemptions from, and has accomplished all filings or registrations or
qualifications with, any court or governmental department, public body, authority, commission,
board, bureau, agency or instrumentality, that are necessary for the transaction of its business.
The exact legal name of Borrower (including the name give in its organizational documents) is as
set forth on Page 1 of this Agreement.

Section 4. Affirmative Covenants. For so long as any obligation of Borrower in connection
with this Agreement or any of the other Loan Documents remains outstanding, Borrower shall, unless
Bank otherwise consents in writing, which consent may be withheld in Bank’s sole discretion, do all
of the following:

     4.1 Protection of Security Interest in Collateral. Subject only to the Permitted
Liens, Borrower shall maintain the lien created by the Security Agreement as a first continuing
lien upon the Collateral encumbered thereby, and take such actions and execute and deliver to Bank
such instruments and documents as Bank may reasonably require from time to time at Borrower’s
expense in connection therewith, including without limitation any supplemental security agreements,
financing statements, continuation statements or other instruments and documents extending or
perfecting the security interest of Bank in and to the Collateral as it may exist from time to
time.

     4.2 Books and Records. Borrower shall maintain proper books of account and records
and enter therein complete and accurate entries and records of all of its transactions in
accordance with generally accepted accounting principles and give representatives of Bank access thereto at all reasonable times,
including permission to examine, copy and make abstracts from any such books and records and such
other information which might be helpful to Bank in evaluating the status of the Loan as it may
reasonably request from time to time. Borrower shall give Bank reasonable access to the Collateral
and the other property securing the Obligations for the purpose of performing examinations thereof
and to verify its condition or existence. In addition, Borrower acknowledges and agrees that Bank
shall have the right to make annual (or more frequently during any ongoing Event of Default) field
audits of Borrower’s books and records and of the Collateral, the cost of which shall be borne by
Borrower.

     4.3 Financial Statements. Borrower shall maintain a standard and modern system for
accounting in accordance with generally accepted principles of accounting, consisting of full and
complete books of account and other records reflecting the results of its operations (in
conjunction with any other ventures as well as specifically with respect to the Loan), including
without limitation all contributions of equity or investment capital, and shall furnish or cause to
be furnished to Bank:

     (a) Within sixty (60) days after the end of each fiscal quarter and fiscal year, a
copy of Borrower’s internally prepared financial statements for such quarter, on a consolidated
basis, which statements shall be in reasonable detail, prepared and certified as complete and
correct, subject to changes resulting from year-end

10

 

adjustments, by the principal financial
officer/member of Borrower, and shall be in such form and substance as Bank may require;

     (b) Within one hundred fifty (150) days after the end of each fiscal year, a copy of
Borrower’s audited financial statements, on a consolidated basis, prepared by a firm of independent
certified public accountants reasonably acceptable to Bank, and accompanied by an audit opinion of
such accountants without significant qualification;

     (c) Annually as set forth in RMO’s Guaranty, a copy of RMO’s personal financial
statement, certified by such Guarantor, in such form and substance as Bank may reasonably require;

     (d) Intentionally Omitted;

     (e) Intentionally Omitted;

     (f) Within thirty (30) days after the end of each fiscal quarter, a Compliance
Certificate, in such form and substance as Bank may designate from time to time, signed by the
principal financial officer, member or manager of Borrower, (i) stating he is familiar with all
documents relating to the Loan and Bank and that no Event of Default specified in this Agreement,
nor any event which upon notice or lapse of time, or both would constitute such an Event of
Default, has occurred, or if any such condition or event existed or exists, specifying it and
describing what action Borrower has taken or proposed to take with respect thereto, and (ii)
setting forth, in summary form, figures showing the financial compliance of Borrower with the
financial covenants contained in this Agreement in such form and substance as Bank may require;

     (g) Forthwith upon any member, manager, officer, or director of Borrower obtaining
knowledge of any condition or event which constitutes or, after notice of lapse or time or both,
constitute an Event of Default, a certificate of such person specifying the nature and period of
the existence thereof, and what action Borrower has taken or is taking or proposed to take in
respect thereof;

     (h) Upon request of Bank, a copy of Borrower’s or any Guarantor’s federal or other
income tax return and such other information as Bank may reasonably request, together with any
extension with respect thereto;

     (i) Promptly upon receipt thereof, copies of all letters to management and all
reports submitted to Borrower by independent certified public accountants;

     (j) After written request from Bank, copies of all statements, notices and reports
Borrower shall thereafter send to its members, manager, officers or to any creditor; and

     (k) With reasonable promptness, such other financial, tax and other information of
Borrower and/or any Guarantor as Bank may reasonably request from time to time.

     If at any time Borrower has any Subsidiaries which have financial statements that could be
consolidated with those of Borrower under generally accepted accounting principles, the financial
statements required by subsections (a) and (b) above shall be the financial statements of Borrower
and/or any Guarantor, as applicable, and all such subsidiaries prepared on a consolidated and
consolidating basis.

     4.4 Condition and Repair. Borrower shall maintain its assets in good repair and
working order and shall make all appropriate repairs and replacements thereof.

     4.5 Insurance. At all times while the Obligations are outstanding, maintain (and
provide satisfactory evidence thereof to Bank through certificates of insurance or insurance
binders) the following insurance:

     (a) General liability insurance (including professional liability coverage) in an
amount equal to at least $1,000,000.00 per occurrence and $2,000,000.00 in the aggregate with an
umbrella policy in the amount of at least $5,000,000.00 of additional liability coverage;

11

 

     (b) “All-risk” coverage on the Property, in an amount not less than the replacement
cost thereof, insuring against such potential causes of loss as shall be required by Bank,
including but not limited to loss or damage from wind, fire, ice and subsidence, and, if customary
for the geographic area and if requested by Bank, earthquake; and

     (c) Business interruption insurance equal to not less than twelve (12) months
estimated gross revenues less expenses not ordinarily incurred during the period of business
interruption.

     Each of the policies described in 4.5(a) shall name Bank as an additional insured. Each of
the policies described in 4.5(b) through (c) shall name Bank as additional insured and loss payee
under a standard noncontributory lender loss payable clause, and shall provide that Bank shall
receive not less than thirty (30) days written notice prior to cancellation. The proceeds of any
of the policies described in 4.5(b) through (c) shall be payable by check payable to Bank,
delivered to Bank, and such proceeds shall be applied by Bank, at its sole option, either (i) to
the full or partial payment or prepayment of the Obligations (without premium), or (ii) to the
repair and/or restoration of the Property damaged or taken. Each of the policies described in
4.5(b) through (c) must be written by an insurer having a rating of A or better from Standard &
Poors, and Fitch Investors Service and a Best rating acceptable to Bank.

     4.6 Taxes. Borrower shall pay when due all taxes, assessments and other governmental
charges imposed upon it or its assets, franchises, business, income or profits before any penalty
or interest accrues thereon, and all claims (including, without limitation, claims for labor,
services, materials and supplies) for sums which by law might be a lien or charge upon any of its
assets, provided that (unless any material item or property would be lost, forfeited or materially
damaged as a result thereof) no such charge or claim need be paid if it is being diligently
contested in good faith, if Bank is notified in advance of such contest and if Borrower establishes
an adequate reserve or other appropriate provision required by generally accepted accounting
principles and deposits with Bank cash or bond in an amount acceptable to Bank.

     4.7 Existence; Business. Borrower shall (a) maintain its company existence and not
dissolve or otherwise dispose of or transfer all or a substantial part of its assets without the
consent of Bank, which consent Bank shall be under no obligation to give, (b) engage primarily in
business of the same general character as that now conducted, and (c) refrain from entering into
any lines of business substantially different from the business or activities in which Borrower is
presently engaged. If a sale or other transfer of assets of Borrower is made as permitted by this
Section, the provisions of this Section shall continue in full force and effect and no further sale
or other transfer shall be made except in compliance with the provisions of this Section.

     4.8 Compliance with Laws. Borrower shall comply with all federal, state and local
laws, regulations and orders applicable to Borrower or its assets including, but not limited to,
Requirements of Law and all Hazardous Materials Laws, in all respects material to Borrower’s
business, assets or prospects and shall immediately notify Bank of (a) any violation of any rule,
regulation, statute, ordinance, order or law relating to the public health or the environment, and
(b) of any complaint or notifications received by Borrower regarding to any violation of
environmental or safety and health rule, regulation, statute, ordinance or law.

     4.9 Payment of Indebtedness. Borrower shall pay, discharge or otherwise satisfy at or
before maturity or before they become delinquent, as the case may be, all its Indebtedness and
other obligations of whatever kind or nature, unless the same is being contested in good faith by
Borrower and diligently pursued to completion by appropriate proceedings and with adequate
reserves.

     4.10 Notice of Default. Promptly notify Bank if (a) Borrower learns of the occurrence
of any event which constitutes, or will, with the passage of time or the giving of notice or both,
constitute an Event of Default or a default under this Agreement, the Note or any of the other Loan
Documents, together with a detailed statement by an Authorized Borrower Representative specifying
the nature thereof and what action Borrower is taking or proposes to take with respect thereto, or
(b) Borrower receives any notice from, or the taking of any other action by, the holder of any
promissory note, debenture or other evidence of indebtedness of Borrower or of any security (as
defined in the Securities Act of 1933, as amended) of Borrower with respect to a claimed default,
together with a detailed statement by an Authorized Borrower Representative specifying the notice
given or other action taken by such holder and the nature of the claimed default and what action
Borrower is taking or proposes to take with respect thereto, or (c) Borrower learns of the
existence of any legal, judicial or regulatory proceedings affecting

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Borrower or any of its
properties or assets in which the amount involved is material and is not covered by insurance or
which, if adversely determined, would cause a material adverse change in the business, prospects,
profits, properties, assets or condition (financial or otherwise) of Borrower, or (d) there shall
occur or exist any other event or condition causing a material adverse change in the business,
prospects, profits, properties, assets or condition (financial or otherwise) of Borrower.

     4.11 Depository/Banking Services. Borrower shall maintain a depository relationship
with Bank as long as this Agreement is in effect.

     4.12 Other Amounts Deemed Loans. If Borrower fails to pay any tax, assessment,
governmental charge or levy or to maintain insurance within the time permitted by this Agreement,
or to discharge any Lien prohibited hereby, or to comply with any other obligation, Bank may, but
shall not be obligated to, pay, satisfy, discharge or bond the same for the account of Borrower,
and to the extent permitted by law and at the option of Bank, all monies so paid by Bank on behalf
of Borrower shall be deemed a Loan and part of the Obligations.

     4.13 Maintenance and Furnishing of Property. Maintain its properties, including
without limitation the Property, and each portion thereof (including without limitation fixtures,
equipment, machinery and fixed assets) in good condition and repair, said condition and repair to
be in line with that of comparable facilities; and not permit any waste or damage with respect
thereto.

     4.14 Notice of Litigation. Give notice to Bank, within ten (10) days of Borrower’s
knowledge of any of the following: (i) any litigation materially affecting or relating to Borrower
or the Property; (ii) any dispute between Borrower and any municipal or other governmental
authority relating to the Property, the adverse determination of which might materially affect the
Property; and (iii) any threat or commencement of proceedings in condemnation or eminent domain
relating to the Property.

     4.15 Payment of Loan/Performance of Obligations. Duly and punctually pay or cause to
be paid the principal and interest on each Note in accordance with its terms and duly and
punctually pay and perform or cause to be paid or performed all Obligations hereunder and under the
other Loan Documents.

     4.16 Notification. Borrower shall promptly provide Bank with at least thirty (30)
days prior written notice of: (i) any change in any location where Borrower’s Inventory is
maintained, and any new locations where Borrower’s Inventory is to be maintained; (ii) any change
in the location of the office where Borrower’s records pertaining to its Accounts and contract rights are kept; (iii) the location of any new places
of business for Borrower or Guarantor and the changing or closing of any of their respective
existing places of business; and (iv) any change in Borrower’s name or state of organization; and
(v) any change in Borrower’s place of business.

Section 5. Negative Covenants. Without the prior written consent of Bank, Borrower shall
be prohibited from doing the following:

     5.1 No Debt. Except for any Permitted Liens and vehicles financed in the ordinary
course of Borrower’s business and in accordance with past practices consistently applied and as
shown on Borrower’s financial statement and disclosed to Bank, create, incur, assume, or permit to
exist any Indebtedness except (i) Indebtedness under this Agreement or permitted by this Agreement;
(ii) Indebtedness otherwise owing to Bank; and (iii) Indebtedness for trade debt incurred in the
ordinary course of Borrower’s business subject, however to any limitations thereof as provided
herein.

     5.2 Prepayments. Borrower shall not voluntarily prepay any Indebtedness owing by
Borrower prior to the stated maturity date thereof other than (i) the Obligations and (ii)
Indebtedness to trade creditors where the prepayment will result in a discount on the amount due,
unless the effect of such prepayment will cause an Event of Default hereunder.

     5.3 Leases. Borrower shall not enter into any lease of real property as lessee not
approved in writing by Bank, which approval will not be unreasonably withheld, or enter into any
lease of personal property as lessee, except for leases of personal property in the ordinary course
of Borrower’s business, which shall not exceed aggregate lease payments of $                      in
any fiscal year.

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     5.4 Pledge or Encumbrance of Assets. Other than the Permitted Liens, Borrower shall
not create, incur, assume or permit to exist any Lien, pledge, mortgage, security interest or
encumbrance whatsoever on the Collateral, except for Liens in favor of Bank, and Liens imposed by
law which secure amounts not at the time due and payable.

     5.5 Guarantees and Loans. Except with Bank’s prior written consent, which consent
will not be unreasonably withheld, and in accordance with Borrower’s ordinary course of business
consistent with past business practices consistently applied, Borrower shall not enter into any
direct or indirect guarantees other than by endorsement of checks for deposit nor make any advance
or loan, including, without limitation, loans and advances to employees of Borrower.

     5.6 Capital; Distributions. Borrower shall not issue any additional membership
interests, nor grant any warrants, options or other rights to purchase such membership interests.
Borrower shall not redeem any capital or membership interests in any fiscal year.

     5.7 Merger; Disposition of Assets. Borrower shall not (a) change its capital,
membership or ownership structure, (b) merge or consolidate with any company, corporation or other
entity (c) amend or change its Articles of Organization, Operating Agreement or other
organizational or governing documents, or (d) sell, transfer or otherwise dispose of all or any
substantial part of its assets whether now owned or hereafter acquired.

     5.8 Transactions with Affiliates and Subsidiaries. Except with Bank’s prior written
consent, which consent will not be unreasonably withheld, and in accordance with Borrower’s
ordinary course of business consistent with past business practices consistently applied, Borrower
shall not (a) directly or indirectly issue any guarantee for the benefit of any person, Affiliate
or Subsidy, except for any guarantee in favor of Bank, (b) directly or indirectly make any loans or
advances to or investments in any person, Affiliate or Subsidiary, or (c) enter into any
transaction with any of its Affiliates or Subsidiaries, other than transactions entered into on an
arm’s length basis in the normal course of Borrower’s business.

     5.9 Investments. Borrower shall not purchase or hold beneficially any stock,
securities or evidences or indebtedness of, or make any investment or acquire any interest, in, any
other firm, partnership, corporation or entity other than short term investments of excess working
capital in one or more of the following: (a) investments (of one year or less) in direct or guaranteed obligations of the United States, or any agencies
thereof; and (b) investments (of one year or less) in certificates of deposit of banks or trust
companies organized under the laws of the United States or any jurisdiction thereof, provided that
such banks of trust companies are insured by the Federal Deposit Insurance Corporation and have
capital in excess of $25,000,000.

     5.10 Acquisitions. Borrower shall not purchase or otherwise acquire all or any part
of the business or assets of, or any stock or other evidence of beneficial ownership of, any
company or entity whatsoever, without the prior written consent of Bank.

     5.11 Leases; Investments. Except as otherwise expressly permitted in this Section 5,
Borrower shall not:

     (a) Create, incur, assume or suffer to exist any lease obligation;

     (b) Make any investment in, or make any loan or advance to, any Person, including
but not limited to, any Members or Managers of Borrower; or

     (c) Purchase or acquire obligations owned by others.

     5.13 Liens. Except as otherwise expressly permitted in this Section 5, Borrower shall
not create, incur, assume or permit to exist any lien, pledge, mortgage, security interest, or
other encumbrance whatsoever on the Collateral, or on any of Borrower’s properties, rights, income
or other assets, including, but not limited to, the Collateral whether now owned or hereafter
acquired, other than the Permitted Liens.

14

 

     5.14 Conduct of Business. Borrower shall not:

     (a) Make any material change in the nature of such Borrower’s business as it is
being conducted as of the date hereof;

     (b) Dissolve, merge, consolidate or consummate any similar transaction with or into
any other Person, or otherwise change its identity or company or capital structure;

     (c) Sell, lease, transfer or otherwise dispose of the Collateral (except for the
sale of Inventory in the ordinary course of business), or all or a substantial part of its assets,
whether now owned or hereinafter acquired;

     (d) Change its method of accounting, unless such change is permitted by generally
accepted accounting principles consistently applied, and provided such change does not have the
effect of curing or preventing what would otherwise be an Event of Default had such change not
taken place;

     (e) Change its name, trade name or articles of organization or operating agreement;

     (f) Change its membership or capital structure;

     (g) Change its chief executive office or its principal place of business; or

     (h) Permit a transfer of any legal or equitable interest in its capital or
membership interests to any Person, including, but not limited to, present members of Borrower.

     5.15 Government Regulation. Borrower shall not (a) be or become subject at any time
to any law, regulation, or list of any government agency (including, without limitation, the U.S.
Office of Foreign Asset Control list) that prohibits or limits Bank from making any advance or
extension of credit to Borrower or from otherwise conducting business with Borrower, or (b) fail to
provide documentary and other evidence of Borrower’s identity as may be requested by Bank at any
time to enable Bank to verify Borrower’s identity or to comply with any applicable law or
regulation, including, without limitation, Section 326 of the USA Patriot Act of 2001, 31 U.S.C.
Section 5318.

     5.16 Minimum Tangible Net Worth. Borrower shall not permit its Tangible Net Worth, on
a consolidated basis, to be less than Two Million Three Hundred Twenty-Four Thousand and no/100
Dollars ($2,324,000.00) (the “Initial Tangible Net Worth Amount”), as of the Closing Date, as
calculated by Bank in its reasonable discretion. Thereafter, Borrower shall not permit its Tangible
Net Worth, on a consolidated basis, to be less than the Initial Tangible Net Worth Amount as
positively increased by the “Increase Amount” as of each December 31, with the first Increase
Amount determined as of December 31, 2008 and each December 31 thereafter. The minimum Tangible Net
Worth covenant as required herein shall be tested as of the end of each fiscal quarter and fiscal
year thereafter beginning as of September 30, 2008 and continuing as of the end of each fiscal
quarter and fiscal year thereafter, all as calculated by Bank in its reasonable discretion. As
used herein, “Increase Amount” shall mean an amount equal to fifty percent (50%) of net earnings
before distributions as calculated by Bank in its reasonable discretion. There will be no
deduction for losses.

     5.17 Minimum Debt Service Coverage Ratio. Borrower shall not permit its Debt Service
Coverage Ratio to be less than 1.25 to 1.00, determined as of the end of each fiscal quarter and
fiscal year-end on a rolling four-quarter basis, beginning September 30, 2008, and continuing as of
the end of each fiscal quarter and fiscal year thereafter, all as calculated by Bank in its
reasonable discretion.

Section 6. Events of Default and Remedies.

     6.1 Events of Default. The occurrence of any one or more of the following events
shall constitute an Event of Default hereunder (“Event of Default”):

     (a) Borrower fails to pay any amount owing under the Term Note, this Agreement or any other
Loan Document within ten (10) days of when due, time being of the essence; or

15

 

     (b) Borrower fails to observe or perform or is in default of any covenant, condition or
agreement set forth in Sections 4, 5, or 8 of this Agreement; or

     (c) Any representation or warranty made by Borrower herein or in any of the Loan Documents is
incorrect in any material respect when made or reaffirmed; or

     (d) Borrower or any Guarantor fails to observe or perform any covenant, condition or agreement
to be observed or performed hereunder, or under any other Loan Document, or under any Guaranty, and
the failure or inability of Borrower or any Guarantor to cure such default within thirty (30) days
of the occurrence thereof, provided that such thirty (30) day grace period shall not apply to (i) a
breach of any covenant which in Bank’s good faith judgment is incapable of cure, (ii) any failure
to maintain insurance or permit inspection of the Collateral or of the books and records of
Borrower, (iii) any breach in any affirmative or negative covenant set forth in Sections 4 and 5
hereof, respectively, (iv) any breach of any other subsection of this Section 6.1, or (v) any
breach of any covenant which has already occurred; or

     (e) Borrower or any Guarantor commences a voluntary case under any applicable bankruptcy,
insolvency or other similar law in effect, or makes any general assignment for the benefit of
creditors, or fails generally to pay its debts as such debts become due, or takes any action in
furtherance of any of the foregoing; or

     (f) There is a default under the terms of any Indebtedness or lease of Borrower or any
Subsidiary of Borrower owed to Bank or any other creditor which is not cured within the time period
permitted pursuant to the terms and conditions of such Indebtedness or lease, or an event occurs
which gives any creditor or lessor the right to accelerate the maturity of any such Indebtedness or
lease payments to such creditor or lessor; or

     (g) A final judgment for the payment of money which exceeds $10,000.00 is rendered against
Borrower or any Guarantor and remains undischarged for thirty (30) days during which execution is
not effectively stayed or is not sufficiently bonded over in favor of Bank; or

     (h) Bank shall deem itself insecure in good faith believing that the prospect of repayment of
the Obligations or performance of the covenants and conditions of this Agreement or under any other
Loan Document is materially impaired; or

     (i) A change occurs in the ownership of Borrower’s capital or membership interests; or

     (j) An Event of Default or default occurs under any Loan Document, or any Guarantor of any of
the Obligations denies such Guarantor’s obligation to guaranty any Obligations then existing or
attempts to limit or terminate such Guarantor’s obligation to guaranty any future Obligations; or

     (k) The dissolution, termination, consolidation, liquidation, death or similar event with
respect to or involving Borrower or any Guarantor; or

     (l) The commencement of any foreclosure proceedings, proceedings in aid of execution,
attachment actions, levies against, or the filing by any taxing authority of a lien against any of
the Collateral or any property securing the repayment of any of the Obligations; or

     (m) The loss, theft or substantial damage to the Collateral or any property securing the
repayment of the Obligations if such occurrence is not covered by insurance for which Bank receives
the insurance proceeds with respect thereto within ninety (90) days from the date of loss, or the
result of such occurrence will be, in Bank’s reasonable judgment, the failure or inability of
Borrower to continue substantially normal operation of its business within thirty (30) days of the
date of such occurrence; or

     (n) Intentionally Omitted

     (o) (i) The validity or effectiveness of any of the Loan Documents or its transfer, grant,
pledge, mortgage, or assignment by the party executing such Loan Document is impaired; (ii) any
party executing any of the Loan Documents asserts that any of such Loan Documents is not a legal,
valid and binding obligation of the party thereto

16

 

enforceable in accordance with its terms; (iii)
the security interest or Lien purporting to be created by any of the Loan Documents will for any
reason cease to be a valid, perfected lien subject to no other liens other than Liens permitted by
the terms of this Agreement; or (iv) any Loan Document is amended, hypothecated, subordinated,
terminated or discharged, or if any person is released from any of its covenants or obligations
under any of the Loan Documents except as permitted by Bank in writing; or

     (p) A Reportable Event (as defined in ERISA) occurs with respect to any employee benefit plan
maintained by Borrower for its employees other than a Reportable Event caused solely by a decrease
in employment; or a trustee is appointed by a United States District Court to administer any
employee benefit plan; or the Pension Benefit Guaranty Corporation institutes proceedings to
terminate any of Borrower’s employee benefit plans; or

     (q) There shall occur any material event of default including specifically, but without
limitation, due to non-payment or non-performance, under any loan, agreement, document or
instrument to which Borrower, any Guarantor, or any Subsidiary of Borrower, or any one of them is
now or hereinafter a party, or by which any of Borrower’s, any Guarantor’s or any Subsidiary’s
property is bound, creating or relating to any Indebtedness in favor of Bank or any other creditor,
and such default or event of default is not cured within the period of grace, if any, provided
therein; or

     (r) Borrower or any Guarantor shall: (1) apply for or consent to the appointment of a
receiver, trustee or liquidator for itself or for any of its properties or assets; (2) admit in
writing the inability to pay debts, (3) make a general assignment for the benefit of creditors;
(4) be adjudicated bankrupt or insolvent, or (5) file a voluntary petition in Bankruptcy, or a
petition or answer seeking reorganization or an arrangement with creditors or to take advantage of
any Bankruptcy, reorganization, insolvency, or liquidation law, or an answer admitting the material
allegations of a petition filed against it in any proceeding under any such law; or

     (s) An order shall be entered, without the application or consent of Borrower or any
Guarantor, by any court approving a petition seeking reorganization of Borrower or any Guarantor or
of all or a substantial part of the properties or assets of Borrower or any Guarantor or appointing
a receiver, trustee or liquidator of Borrower or any Guarantor and such order shall continue
unstayed and in effect for a period of sixty (60) days or more. The institution of any garnishment
proceedings by attachment, levy or otherwise, against any deposit balance maintained or any
property deposited with Bank by Borrower or any Guarantor and such proceeding is not discharged
within thirty (30) days of its commencement; or

     (t) Borrower’s or any Guarantor’s failure to deliver or cause to be delivered the financial
statements and information set forth in Section 4.3 hereof within the times required and such
failure is not cured within thirty (30) days following Bank’s written notice to Borrower or any
Guarantor thereof; or

     (u) Nonpayment by Borrower of any Rate Management Obligation when due or the breach by the
Borrower of any term, provision or condition contained in any Rate Management Agreement; or

     (v) The transfer of any of the Collateral except for the sale of Inventory in the ordinary
course of Borrower’s business.

     6.2 Remedies. Upon the occurrence of any Event of Default, Bank may, at its option, do
any or all of the following:

     (a) Cease advancing money under the Note and this Agreement and declare the principal of all
amounts owing under the Note, this Agreement and the other Loan Documents and all other
indebtedness of Borrower to Bank, together with interest thereon, to be forthwith due and payable,
regardless of any other specified maturity or due date, without notice of default, presentment or
demand for payment, protest or notice of nonpayment or dishonor, or other notices or demands of any
kind or character, and without the necessity of prior recourse to any security;

     (b) Implement any remedies available to Bank under or in connection with the Note, this
Agreement and/or the other Loan Documents, and exercising all of the rights and remedies available
to Bank in connection

17

 

therewith and/or as a secured creditor in law or in equity, including without
limitations, foreclosing on or proceeding against any security and exercising any other rights to
security whether under the Loan Documents or any other agreement or as provided by law, all in such
order and in such manner as Bank in its sole discretion may determine;

     (c) If the Event of Default may be cured by Bank by taking actions or making payments of
money, Bank shall have the right (but not the obligation) to take such actions (including without
limitation the retention of attorneys and the commencement or prosecution of actions on its own
behalf or on behalf of Borrower), make such payments and pay for the costs of such actions
(including without limitation reasonable attorneys’ fees and court costs) from its own funds;
provided, that the taking of such actions at Bank’s expense or the making of such payments by Bank
out of Bank’s own funds shall not be deemed to cure such Event of Default, and the same shall not
be so cured unless and until Borrower shall have reimbursed Bank for such payment, together with
interest at the Default Rate, from the date of such payment until the date of reimbursement. If
Bank advances its own funds for such purposes, such funds shall be secured by the Loan Documents,
notwithstanding that such advances may cause the total amount advanced hereunder to exceed the
amount committed to be advanced pursuant to this Agreement, and Borrower shall immediately upon
demand reimburse Bank therefor with interest at the Default Rate, from the date of such advance
until the date of reimbursement; and

     (d) Exercise any and all of its rights under the Note, this Agreement or any of the other Loan
Documents, or otherwise as a secured creditor, including, without limitation, foreclosing on any
security, and exercising any other rights with respect to security whether under the Loan Documents
or any other agreement or as provided by law, all in such order and in such manner as Bank in its
sole discretion may determine.

     6.3 Setoff. If any Event of Default shall occur, Bank is authorized, without notice
to Borrower, to offset and apply to all or any part of the Obligations all moneys, credits and
other property of any nature whatsoever of Borrower now or at any time hereafter in the possession of, in transit to or from,
under the control or custody of, or on deposit with (whether held by Borrower individually or
jointly with another party), Bank, including but not limited to certificates of deposit.

     6.4 Default Rate. After the occurrence of an Event of Default, all amounts of
principal outstanding as of the date of the occurrence of such Event of Default shall bear interest
at the Default Rate, in Bank’s sole discretion, without notice to Borrower. This provision does
not constitute a waiver of any Events of Default or an agreement by Bank to permit any late
payments whatsoever.

     6.5 Late Payment Penalty. If any payment is not paid when due (whether by
acceleration or otherwise after the expiration of applicable notice grace and cure periods, if
any), Borrower agrees to pay to Bank a late payment fee equal to five percent (5%) of the payment
amount then due.

     6.6 No Remedy Exclusive. 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
available under this Agreement, the Loan Documents or as may be now or hereafter existing at law,
in equity or by statute. Borrower waives any requirement of marshalling of assets which may be
secured by any of the Loan Documents. The exercise of any right or remedy by Bank hereunder shall
not in any way constitute a cure or waiver of default hereunder or under the Note or any of the
other Loan Documents, nor invalidate any notice of default or any act done pursuant to any such
notice, nor prejudice Bank in the exercise of any rights hereunder or under the Note or any of the
other Loan Documents, unless in the exercise of said right, Bank realizes all amounts owed to it
under the Note, this Agreement, and any of the other Loan Documents and all Events of Default are
cured. No waiver by Bank of any default or breach by Borrower hereunder shall be implied from any
omission by Bank to take action on account of such default if such default persists or is other
than the default expressly made the subject of the waiver. Any such express waiver shall be
operative only for the time and to the extent therein stated. Any waiver of any covenant, term or
condition contained herein shall not be construed as a waiver of any subsequent breach of the same
covenant, term or condition. The consent or approval by Bank to or of any act by Borrower shall
not be deemed to waive or render unnecessary consent or approval to or of any subsequent act.

     6.7 Effect of Termination. The termination of this Agreement shall not affect any
rights of either party or any obligation of either party to the other, arising prior to the
effective date of such termination, and the

18

 

provisions hereof shall continue to be fully operative
until all transactions entered into, rights created or Obligations incurred prior to such
termination have been fully disposed of, concluded or liquidated. The security interest, lien and
rights granted to Bank hereunder and under the Loan Documents shall continue in full force and
effect, notwithstanding the termination of this Agreement or the fact that no Loan is outstanding
to Borrower, until all of the Obligations, have been paid in full.

Section 7. Conditions Precedent.

     7.1 Conditions to Closing of Loan. Bank shall have no obligation to make or advance
the Loan until Borrower has delivered to Bank on or before the closing date or prior to making any
advance under the Loan, all in such form and substance as Bank may require:

     (a) Executed Note.

     (b) A Resolution of Borrower, in such form and substance as Bank may require, regarding the
authorization of the transactions contemplated hereby.

     (c) Executed Closing Certificate of Borrower regarding the certification of Borrower’s
Articles of Organization, Operating Agreement, members, managers, directors and officers,
accompanied by a copy of all such organizational documents of Borrower referred to therein.

     (d) A Good Standing Certificate for Borrower issued by the Secretary of State of the
jurisdiction of its organization.

     (e) The Loan Fee shall be paid in full.

     (f) Executed Security Agreement.

     (g) Executed Assignment of Contracts.

     (h) All appropriate financing statements and consents or waivers of landlords, warehousemen
and mortgagees, as requested by Bank.

     (i) A Guaranty executed by each Guarantor.

     (j) UCC searches, tax lien and litigation searches, insurance certificates, notices or other
document which Bank may require to reflect, perfect or protect Bank’s first priority lien in the
Collateral and all other property pledged to secure the Obligations and to fully consummate this
transaction.

     (k) All requisite releases of liens, pay-off letters, termination statements and satisfactions
of mortgages necessary to release all liens and encumbrances against the Collateral and any other
property pledged to secure the Loan and all requisite waivers and subordination agreements, in a
form satisfactory to Bank, to be executed and delivered by Borrower’s landlords and mortgagees
which are necessary to grant Bank a first lien in the Collateral, including but not limited to all
Accounts, Accounts Receivable, all Cash Security, all Inventory, all Equipment, all General
Intangibles, and all Investment Property of Borrower.

     (l) A Certificate of Insurance as described in Section 4.5 hereof.

     (m) Intentionally Omitted.

     (n) Intentionally Omitted.

     (o) Intentionally Omitted.

     (p) Intentionally Omitted.

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     (q) Such additional documentation, certifications, information and materials as Bank may
reasonably request.

     7.2 Intentionally Omitted.

Section 8. Environmental Hazards.

     (a) Prohibited Activities and Conditions. Borrower shall not cause or permit any of
the following:

     (i) The presence, use, generation, release, treatment, processing, storage (including
storage in above ground and underground storage tanks), handling, or disposal-of any
Hazardous Materials in, on or under the Property, except in the ordinary course of
Borrower’s existing business; provided, however, that the same is in accordance with all
Hazardous Materials Laws and all other applicable laws;

     (ii) The transportation of any Hazardous Materials to, from, or across the Property,
except in the ordinary course of Borrower’s existing business; provided, however, that the
same is in accordance with all Hazardous Materials Laws and all other applicable laws;

     (iii) Any occurrence or condition on the Property or any other property that is
adjacent to or in the vicinity of the Property, which occurrence or condition is or may be
in violation of any Hazardous Materials Laws; or

     (iv) Any violation of or noncompliance with the terms of any Environmental Permit with
respect to the Property or any property that is adjacent to or in the vicinity of the
Property.

     The matters described in clauses (i) through (iv) above are referred to collectively in this
Section 8 as “Prohibited Activities and Conditions” and individually as a “Prohibited Activity and
Condition.”

     (b) Borrower’s Environmental Representations and Warranties. Borrower represents and
warrants to Bank that:

     (i) Borrower has not at any time caused or permitted any Prohibited Activities and
Conditions.

     (ii) No Prohibited Activities and Conditions exist or, to the best of Borrower’s
knowledge, have existed.

     (iii) The Property does contain any underground storage tanks except those disclosed to
Bank and used in the ordinary course of Borrower’s business and in compliance with all
applicable Hazardous Materials Laws.

     (iv) Borrower has complied with all Hazardous Materials Laws, including all
requirements for notification regarding releases of Hazardous Materials. Without limiting
the generality of the foregoing, Borrower has obtained all Environmental Permits required
for the operation of the Property in accordance with Hazardous Materials Laws now in effect
and all such Environmental Permits are in full force and effect. No event has occurred with
respect to the Property that constitutes, or with the passing of time or the giving of
notice would constitute, noncompliance with the terms of any Environmental Permit.

     (v) There are no actions, suits, claims or proceedings pending or, to the best of
Borrower’s knowledge after reasonable and diligent inquiry, threatened that involves the
Property and allege, arise out of, or relate to any Prohibited Activity and Condition.

     (vi) Borrower has not received any complaint, order, notice of violation or other
communication from any governmental authority with regard to air emissions, water
discharges, noise emissions or Hazardous Materials, or any other environmental, health or
safety matters affecting the Property or any other property that is adjacent to or in the
vicinity of the Property. The representations and

20

 

warranties in this Section 8 shall be
continuing representations and warranties that shall be deemed to be made by Borrower
throughout the term of the Loan until the Obligations have been paid in full.

     (c) Costs of Inspection. Borrower shall pay promptly the costs of any environmental
inspections, tests or audits required by Bank in connection with any foreclosure or deed in lieu of
foreclosure, or required by Bank following a reasonable determination by Bank that Prohibited
Activities and Conditions may exist. Any such costs incurred by Bank (including the fees and
out-of-pocket costs of attorneys and technical consultants whether incurred in connection with any
judicial or administrative process or otherwise) which Borrower fails to pay promptly shall become
an additional part of the Obligations.

     (d) Remedial Work. If any investigation, site monitoring, containment, clean-up,
restoration or other remedial work (“Remedial Work”) is necessary to comply with any Hazardous
Materials Law or order of any governmental authority that has or acquires jurisdiction over the
Property or the use, operation or improvement of the Property under the Hazardous Materials Law,
Borrower shall, by the earlier of (1) the applicable deadline required by Hazardous Materials Law
or (2) 30 days after notice from Bank demanding such action, begin performing the Remedial Work,
and thereafter diligently prosecute it to completion, and shall in any event complete such work by
the time required by applicable Hazardous Materials Law. If Borrower fails to begin on a timely
basis or diligently prosecute any required Remedial Work, Bank may, at its option, cause the
Remedial Work to be completed, in which case Borrower shall reimburse Bank on demand for the cost
of doing so. Any reimbursement due from Borrower to Bank shall become part of the Obligations.

     (e) Indemnity.

     (i) Borrower shall indemnify, hold harmless and defend (A) Bank, (B) any prior or
subsequent owner or holder of the Note, (C) the managers, directors, partners, agents,
shareholders, employees and trustees of any of the foregoing, and (D) the heirs, legal
representatives, successors and assigns (excluding third party purchasers for value) of each
of the foregoing (together, the “Indemnitees”) against all proceedings, claims, damages,
losses, expenses, penalties and costs (whether initiated or sought by any governmental
authority or private parties), including fees and out of pocket expenses of attorneys and
expert witnesses, investigatory fees, and remediation costs, whether incurred in connection
with any judicial or administrative process or otherwise, arising directly or indirectly
from any of the following:

     (1) Any breach of any representation or warranty of Borrower in this Section 8,

     (2) Any failure by Borrower to perform any of its obligations under this
Section 8,

     (3) The existence or alleged existence of any Prohibited Activity and
Condition,

     (4) The presence or alleged presence of Hazardous Materials in, on, around or
under the Property or any other property that is adjacent to or in the vicinity of
the Property, or

     (5) Actual or alleged violation of any Hazardous Materials Law.

     (ii) Borrower shall not, without the prior written consent of those Indemnitees who are
named as parties to a claim or legal or administrative proceeding (a “Claim”) settle or
compromise the Claim if the settlement (A) results in the entry of any judgment that does
not include as an unconditional term the delivery by the claimant or plaintiff to Bank of a
written release of those Indemnitees, reasonably satisfactory in form and substance to Bank;
or (B) may materially and adversely affect any Indemnitee, as determined by such Indemnitee
in its reasonable discretion.

     (iii) The liability of Borrower to indemnify the Indemnitees shall not be limited or
impaired by any of the following, or by any failure of Borrower or Guarantor to receive
notice of or consideration for any of the following:

     (1) Any amendment or modification of any Loan Document.

21

 

     (2) Any extensions of time for performance required by any of the Loan
Documents.

     (3) The accuracy or inaccuracy of any representations and warranties made by
Borrower under this Agreement or any other Loan Document.

     (4) The release of Borrower or any other Person, by Bank or by operation of
law, from performance of any Obligations under any of the Loan Documents.

     (5) The release or substitution in whole or in part of any security for the
Obligations.

     (6) Bank’s failure to properly perfect any lien or security interest given as
security for the Obligations.

     (iv) The provisions of this Section 8 shall be in addition to any and all other
obligations and liabilities that Borrower may have under the applicable law or under the
other Loan Documents, and each Indemnitee shall be entitled to indemnification under this
Section 8 without regard to whether Bank or that Indemnitee has exercised any rights against
the Property or any other security, pursued any rights against Guarantor, or pursued any
other rights available under the Loan Documents or applicable law. If Borrower consists of
more than one person or entity, the obligation of those persons or entities to indemnify the
Indemnitees under this Section 8 shall be joint and several. The obligations of Borrower to indemnify the Indemnitees under this Section 8 shall survive any repayment or discharge
of the Obligations, any foreclosure proceeding, any foreclosure sale, any delivery or any
deed in lieu of foreclosure, and any release of record of the lien of the Security
Agreement.

Section 9. Miscellaneous Provisions.

     9.1 Miscellaneous. This Agreement, the exhibits and the other Loan Documents are the
complete agreement of the parties hereto and supersede all previous understandings relating to the
subject matter hereof. This Agreement may be amended only in writing signed by the party against
whom enforcement of the amendment is sought. This Agreement may be executed in counterparts. If
any part of this Agreement is held invalid, the remainder of this Agreement shall not be affected
thereby. This Agreement is and is intended to be a continuing agreement and shall remain in full
force and effect until each Loan is finally and irrevocably paid in full and the Line of Credit
Facility is terminated. Time is of the essence in this Agreement and the Loan Documents.

     9.2 Waiver by Borrower. Borrower waives notice of non-payment, demand, presentment,
protest or notice of protest of any Accounts or other Collateral, and all other notices (except
those notices specifically provided for in this Agreement); consents to any renewals or extensions
of time of payment thereof; and generally waives any and all suretyship defenses and defenses in
the nature thereof.

     9.3 Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the respective legal representatives, successors and assigns of the parties hereto; however,
Borrower may not assign any of their rights or delegate any of their obligations hereunder. Bank
(and any subsequent assignee) may transfer and assign this Agreement or may assign partial
interests or participation in the Loan to other persons. Bank may disclose to all prospective and
actual assignees and participants all financial, business and other information about Borrower
which Bank may possess at any time.

     9.4 Security. The Obligations are secured as provided herein, in the Security
Agreement, in the Loan Documents and in each other document or agreement which by its terms secures
the repayment or performance of the Obligations.

     9.5 Survival. All representations, warranties, covenants and agreements made by
Borrower herein and in the Loan Documents shall survive the execution and delivery of this
Agreement, the Loan Documents and the issuance of the Note.

     9.6 Delay or Omission. No delay or omission on the part of Bank in exercising any
right, remedy or power arising from any Event of Default shall impair any such right, remedy or
power or any other right, remedy or

22

 

power or be considered a waiver of any right, remedy or power
of any Event of Default nor shall the action or omission to act by Bank upon the occurrence of any
Event of Default impair any right, remedy or power arising as a result thereof or affect any
subsequent Event of Default of the same or different nature.

     9.7 Notices. Any notice or other communication required or permitted to be given by
this Agreement or the other Loan Documents or by applicable law shall be in writing and shall be
deemed received (a) on the date delivered, if sent by hand delivery, (b) three (3) business days
following the date deposited in U.S. mail, certified or registered, with return receipt requested,
or (c) one (1) business day following the date deposited with Federal Express or other nationally
recognized overnight carrier, and in each case addressed as follows to:

	 	 	 	 	 	 	 
	 

	 	To Borrower:	 	Great Plains Land Development Company, Ltd.
	 

	 	 	 	 	 	8500 Station Street
	 

	 	 	 	 	 	Mentor, Ohio 44060
	 

	 	 	 	 	 	Attention: Thomas J. Smith
	 
	 	 	 	 	 	 
	 

	 	To Bank:
	 	Citizens Bank
	 

	 	 	 	 	 	328 S. Saginaw Street
	 

	 	 	 	 	 	Flint, Michigan 48502
	 

	 	 	 	 	 	Attention: Commercial Banking Department
	 
	 	 	 	 	 	 
	 

	 	 
	 	With a copy to:  
	 	Citizens Bank
	 

	 	 	 	 	 	29225 Chagrin Boulevard
	 

	 	 	 	 	 	Pepper Pike, Ohio 44124
	 

	 	 	 	 	 	Attention: Commercial Banking Department

          Either party may change such address by sending notice of the change to the other party.
Notwithstanding the foregoing, routine communications such as copies of invoices, statements,
documents, and the like, may be sent by regular first class U.S. Mail.

     9.8 No Partnership. Nothing contained herein or in any of the Loan Documents is
intended to create or shall be construed to create any relationship between Bank and Borrower other
than as expressly set forth herein or therein and shall not create any joint venture, partnership
or other relationship.

     9.9 Indemnification. If after receipt of any payment of all or part of the
Obligations, Bank is for any reason compelled to surrender such payment to any person or entity,
because such payment is determined to be void or voidable as a preference, impermissible setoff, or
diversion of trust funds, or for any other reason, this Agreement shall continue in full force and
effect and Borrower shall be liable to, and shall indemnify, save and hold Bank, its officers,
directors, attorneys and employees harmless of and from the amount of such payment surrendered.
The provisions of this Section shall be and remain effective notwithstanding any contrary action
which may have been taken by Bank in reliance on such payment, and any such contrary action so
taken shall be without prejudice to Bank’s rights under this Agreement and shall be deemed to have
been conditioned upon such payment becoming final, indefeasible and irrevocable. In addition,
Borrower shall indemnify, defend, save and hold Bank, its officers, directors, attorneys and
employees harmless of, from and against all claims, demands, liabilities, judgments, losses,
damages, costs and expenses, joint or several (including all accounting fees and attorneys’ fees
reasonably incurred), that Bank or any such indemnified party may incur arising out of this
Agreement, any of the Loan Documents or any act taken by Bank hereunder except for the willful
misconduct or gross negligence of such indemnified party. The provisions of this Section shall
survive the termination of this Agreement.

     9.10 Further Assurances. Borrower shall, at its sole cost and expense, upon Bank’s
request, promptly execute and deliver or cause to be executed and deliver to Bank any and all
documents, instruments, agreements and information deemed necessary by Bank, in Bank’s reasonable
discretion, to perfect or to continue the perfection of Bank’s liens created hereunder, to
facilitate the collection of the Collateral or otherwise to give effect to or carry out the terms
or intent of this Agreement or any of the other Loan Documents.

     9.11 No Representations by Bank. By accepting or approving anything required to be
observed, performed or fulfilled, or to be given to Bank pursuant to this Agreement, the Note or
any of the other Loan

23

 

Documents, including any certificate, statement of profit and loss or other
financial statement, survey, appraisal or insurance policy, Bank shall not be deemed to have
warranted or represented the sufficiency, legality, effectiveness or legal effect of the same, or
of any term, provision or condition thereof, and such acceptance or approval thereof shall not be
or constitute any warranty or representation to anyone with respect thereto by Bank. Bank may
accept documents in connection with the Note or any of the other Loan Documents which appear on
their face to be in order, without responsibility for further investigation, regardless of any
notice or information to the contrary.

     9.12 No Third Parties Benefited. This Agreement is made for the purpose of defining
and setting forth certain obligations, rights and duties of Borrower and Bank in connection with
the Loan. It is made for the sole protection of Borrower and Bank, and Bank’s successors and
assigns. No other Person shall have any rights of any nature hereunder or by reason hereof.

     9.13 Prior Agreements; Amendments; Consents. This Agreement contains the entire
agreement between Bank and Borrower with respect to the subject matter hereof, and all prior
negotiations, understandings and agreements with respect thereto are superseded by this Agreement.
No amendment, modification, supplement, termination or waiver of any provision of this Agreement or
any of the Loan Documents, and no consent to any departure by Borrower therefrom, may in any event
be effective unless in writing signed by Bank, and then only in the specific instance and for the
specific purpose given.

     9.14 Inclusion of Expenditures in Indebtedness. All sums paid or expended by Bank under the
terms of this Agreement shall bear interest as provided herein, from the date such sums are paid or
expended, shall be secured by the Note and the Security Agreement and shall be immediately due and
payable by Borrower upon demand.

     9.15 Severability of Provisions. Any provision in any Loan Document that is held to be
inoperative, unenforceable or invalid shall be inoperative, unenforceable or invalid without
affecting the remaining provisions, and to this end the provisions of all Loan Documents are
declared to be severable.

     9.16 Inconsistency with Loan Documents. In the event that any of the provisions of
the Loan Documents are inconsistent with the provisions of this Agreement, the provisions of this
Agreement shall prevail.

     9.17 Headings. Article and section headings in this Agreement are included for
convenience of reference only and are not part of this Agreement for any other purpose.

     9.18 Confession of Judgment. Borrower hereby irrevocably authorizes any
attorney-at-law to appear for Borrower in any court of record in the State of Ohio, or in any other
state or territory of the United States, admit the maturity of the Obligations after the same
become due either by lapse of time or acceleration of maturity or otherwise, and waive the issuing
and service of process and confess judgment against Borrower for the amount then appearing due,
together with costs of suit, and thereupon to waive all errors and all rights of appeal and stay of
execution. Borrower expressly (a) waives a conflict of interest as to any attorney retained by the
holder of the Obligations to confess judgment against Borrower upon the Obligations, and (b)
consents to the attorney retained by the holder hereof receiving a legal fee from such holder for
legal services rendered for confessing judgment against Borrower upon the Obligations. A copy of
this Agreement, certified by the holder hereof, 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 Borrower, or additional exercises thereof or by 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 Obligations
remains unpaid, and any confession of judgment and subsequent vacation thereof shall not constitute
termination of this warrant of attorney to confess judgment.

     9.19 Waiver of Right to Trial By Jury. Borrower and Bank each hereby unconditionally
and irrevocably waives any and all right to trial by jury in any action, suit, counterclaim or
cross-claim arising in connection with, out of or otherwise relating to this Agreement, the other
Loan Documents, the Obligations, any Collateral or any transaction arising therefrom or related
thereto.

24

 

     9.20 Waiver of Special Damages. Borrower waives, to the maximum extent not
prohibited by law, any right Borrower may have to claim or recover from Bank in any legal action or
proceeding any special, exemplary, punitive or consequential damages.

     9.21 USA PATRIOT ACT NOTIFICATION. The following notification is provided to
Borrower pursuant to Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318:

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the
government fight the funding of terrorism and money laundering activities, Federal
law requires all financial institutions to obtain, verify, and record information
that identifies each person or entity that opens an account, including any deposit
account, treasury management account, loan, other extension of credit, or other
financial services product. What this means for Borrower: When Borrower opens an
account, if Borrower is an individual, Bank will ask for Borrower’s name, taxpayer
identification number, residential address, date of birth, and other information
that will allow Bank to identify Borrower, and, if Borrower is not an individual,
Bank will ask for Borrower’s name, taxpayer identification number, business address,
and other information that will allow Bank to identify Borrower. Bank may also ask,
if Borrower is an individual, to see Borrower’s driver’s license or other
identifying documents, and, if Borrower is not an individual, to see Borrower’s
legal organizational documents or other identifying documents. Bank is required to
follow this procedure each time an account is opened, even if Borrower is a current
customer of Bank.

     9.22 Governing Law; Jurisdiction. This Agreement, the Note and the other Loan
Documents shall be governed by, and construed in accordance with, the domestic laws of the State of
Ohio. Borrower agrees that the state and federal courts in or having jurisdiction over Cuyahoga
County, Ohio, has exclusive jurisdiction over all matters arising out of this Agreement, and that
service of process in any such proceeding shall be effective if mailed to Borrower at the address
described in the Notices section of this Agreement.

Section 10. Additional Provisions Relating To Libor Rates; Increased Capital; Taxes.

     10.1. Reserves or Deposit Requirements, Etc. If, at any time, any law, treaty or
regulation (including, without limitation, Regulation D of the Board of Governors of the Federal
Reserve System) or the interpretation thereof by any governmental authority charged with the
administration thereof or any central bank or other fiscal, monetary or other authority shall
impose (whether or not having the force of law), modify or deem applicable any reserve and/or
special deposit requirement against assets held by, or deposits in or for the amount of any Loan
by, Bank, and the result of the foregoing is to increase the cost (whether by incurring a cost or
adding to a cost) to Bank of making or maintaining hereunder such Loan or to reduce the amount of
principal or interest received by Bank with respect to such Loan, then, upon demand by Bank,
Borrower shall pay to Bank from time to time on demand, as additional consideration hereunder,
additional amounts sufficient to fully compensate and indemnify Bank for such increased cost or
reduced amount, assuming (which assumption Bank need not corroborate) such additional cost or
reduced amount was allocable to such Loan; provided, however, Borrower shall only be required to
pay such amounts to the extent that Bank is charging such amounts to the majority of its
similarly-situated borrowers. A certificate as to the increased cost or reduced amount as a result
of any event mentioned in this Section 10.1, setting forth the calculations therefor, shall be
promptly submitted by Bank to Borrower and shall, in the absence of manifest error, be conclusive
and binding as to the amount thereof. Bank shall notify Borrower as promptly as practicable of the
existence of any event that will likely require the payment by Borrower of any such additional
amount under this Section.

     10.2. Tax Law, Etc. In the event that by reason of any law, regulation or requirement
or in the interpretation thereof by an official authority, or the imposition of any requirement of
any central bank whether or not having the force of law, Bank shall, with respect to this Agreement
or any transaction under this Agreement, be subjected to any tax, levy, impost, charge, fee, duty,
deduction or withholding of any kind whatsoever (other than any tax imposed upon the total net
income of Bank), then Bank shall promptly notify Borrower stating the reasons therefor. Borrower
shall thereafter pay to Bank, upon demand from time to time, as additional consideration

25

 

hereunder,
such additional amounts as shall fully compensate Bank for such increased cost or reduced amount. A
certificate as to any such increased cost or reduced amount, setting forth the calculations
therefor, shall be submitted by Bank to Borrower and shall, in the absence of manifest error, be
conclusive and binding as to the amount thereof.

     If Bank receives such additional consideration from Borrower pursuant to this Section 10.2,
Bank shall use reasonable efforts to obtain the benefits of any refund, deduction or credit for any
taxes or other amounts on account of which such additional consideration has been paid and shall
reimburse Borrower to the extent, but only to the extent, that Bank shall receive a refund of such
taxes or other amounts together with any interest thereon or an effective net reduction in taxes or
other governmental charges (including any taxes imposed on or measured by the total net income of
Bank) of the United States or any state or subdivision thereof by virtue of any such deduction or
credit, after first giving effect to all other deductions and credits otherwise available to Bank.
If, at the time any audit of Bank’s income tax return is completed, Bank determines, based on such
audit, that it was not entitled to the full amount of any refund reimbursed to Borrower as
aforesaid or that its net income taxes are not reduced by a credit or deduction for the full amount
of taxes reimbursed to Borrower as aforesaid, Borrower, upon demand of Bank, shall promptly pay to
Bank the amount so refunded to which Bank was not so entitled, or the amount by which the net
income taxes of Bank were not so reduced, as the case may be.

     Any and all payments or reimbursements made hereunder or under this Agreement, the Note or
other Loan Documents shall be made free and clear of and without deduction for any and all Charges,
present or future, taxes, levies, imposts, deductions or withholdings, and all liabilities with
respect thereto of any nature whatsoever imposed by any governmental authority (“Taxes”).
If Borrower is required by law to deduct any Taxes, excluding such Taxes to the extent imposed on
or measured by Bank’s net income by the jurisdiction in which Bank is organized (all such
non-excluded Taxes being referred to herein as “Non-Excluded Taxes”). If Borrower shall be
required by law to deduct any such amounts from or in respect of any sum payable hereunder or under
any other Loan Document to Bank, then the sum payable hereunder shall be increased as may be
necessary so that, after making all required deductions, Bank receives an amount equal to the sum
it would have received had no such deductions been made. If any amounts are payable in respect of
Non-Excluded Taxes pursuant to the preceding sentence, Borrower agrees to reimburse Bank, upon the
written request of Bank, for net additional taxes imposed on or measured by the net income of Bank
and for any withholding of taxes as Bank shall determine are payable by, or withheld from Bank, in
respect of such amounts so paid to or on behalf of Bank pursuant to the preceding sentence and in
respect of any amounts paid to or on behalf of Bank pursuant to this sentence. All required
deductions shall be withheld and paid over to the relevant governmental unit in accordance with
applicable law.

     Borrower will indemnify Bank for the full amount of Non-Excluded Taxes (including any
Non-Excluded Taxes imposed by any jurisdiction on amounts payable under this Section 10.2) paid by
Bank and any liability (including penalties, interest and expenses including reasonable attorney’s
fees and expenses) arising therefrom or with respect thereto whether or not such Non-Excluded Taxes
were correctly or legally asserted. A certificate as to the amount of such payment or liability
prepared by Bank, absent manifest error, shall be final, conclusive and binding for all purposes.
Such indemnification shall be made within ten (10) days after the date Bank makes written demand
therefor.

     10.3. Eurodollar Deposits Unavailable or Interest Rate Unascertainable. In the event
that Bank shall have determined that dollar deposits of the relevant amount for the Loan is not
available to the Bank in the applicable eurodollar market or that, by reason of circumstances
affecting such market, adequate and reasonable means do not exist for ascertaining the Applicable
LIBOR Rate, as the case may be, Bank shall promptly give notice of such determination to Borrower
and Borrower shall be obligated either to prepay the Loan, or to convert the Applicable LIBOR Rate
to an alternative interest rate as determined by Bank.

[Remainder of this page intentionally left blank]

26

 

     10.4. Indemnity. Without prejudice to any other provisions of this Section 10,
Borrower hereby agrees to indemnify Bank against any loss or expense that Bank may sustain or incur
as a consequence of any default by Borrower in payment when due of any amount hereunder in respect
of the Loan, including, but not limited to, any loss of profit, premium or penalty incurred by Bank
in respect of funds borrowed by it for the purpose of making or maintaining the Loan, as determined
by Bank in the exercise of its sole but reasonable discretion. A certificate as to any such loss
or expense shall be promptly submitted by Bank to Borrower and shall, in the absence of manifest
error, be conclusive and binding as to the amount thereof.

     10.5. Changes In Law Rendering Libor Loans Unlawful. If at any time any new law,
treaty or regulation, or any change in any existing law, treaty or regulation, or any
interpretation thereof by any governmental or other regulatory authority charged with the
administration thereof, shall make it unlawful for Bank to continue or effect the funding in the
applicable eurodollar market of the Loan, Bank shall, upon the happening of such event, notify
Borrower thereof in writing stating the reasons therefor, and Borrower shall, on the earlier of
(a) the maturity date or (b) if required by such law, regulation or interpretation, on such date as
shall be specified in such notice, either prepay the Loan in full, or convert the Applicable LIBOR
Rate to an alternative interest rate as determined by Bank. Any such prepayment or conversion
shall be subject to the prepayment fees described in Section 2.1 hereof.

     IN WITNESS WHEREOF, Borrower and Bank have executed this Agreement by their duly authorized
members/officers as of the date first above written.

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 
	 
	 
	 	“Borrower”          

 	 
	 	
CITIZENS BANK

 	 
	 	By:  	/s/ David Tholt
 	 
	 	Name:  
David Tholt 
	 
	 	Title:  Vice President 
	 
	 	 	 
	 	“Bank”          

 	 

27

 

EXHIBIT A

Term Note

[Attach form of note]

28

 

EXHIBIT 3.16

Borrower’s Locations

8500 Station Street, Mentor, Ohio 44060

29

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