Document:

exv10w1

EXHIBIT 10.1

EXCHANGE AGREEMENT

     This EXCHANGE AGREEMENT (this “Agreement”) is made as of September 30, 2008 (the
“Execution Date”) by and among Echo Therapeutics, Inc., a Delaware corporation (the
“Company”), Platinum Long Term Growth VII, LLC (“Platinum”) and the other investors
listed on the signature page attached hereto (together with Platinum, the “Investors”).

RECITALS

          A. Pursuant to a Note and Warrant Purchase Agreement dated as of February 11, 2008 (the
“Original Purchase Agreement”), the Company issued and sold to the Investors an aggregate
$1,980,212 in principal amount of 8% unsecured senior convertible promissory notes due February 12,
2011 (the “Original Notes”). Pursuant to the terms of the Original Purchase Agreement and
the Original Notes, the Company issued, and will issue for the period July 1, 2008 through
September 30, 2008, an additional aggregate $97,674.01 in principal amount of Original Notes as
interest on the Original Notes (the “PIK Notes,” and together with the Original Notes, the
“Notes”).

          B. The Notes are convertible into shares of the Company’s common stock, par value $0.01 per
share (the “Common Stock”), and otherwise have the rights, preferences, privileges, powers
and restrictions set forth in the Notes.

          C. The Investors currently hold an aggregate $2,355,289.72 in principal amount of Notes
constituting all of the now issued and outstanding Notes except for
the Notes held by Gemini Master Fund Ltd., who is not a party to this
Agreement. For the period July 1, 2008 through
September 30, 2008, the Company owes the Investors interest on the Original Notes in the amount of
$47,492.98 and the Company intends to pay such interest with PIK Notes, which shall be included in
the Notes exchanged in accordance with this Agreement.

          D. The Investors and the Company desire that the Investors exchange all of the Notes for
shares of a newly designated series of the Company’s preferred stock (the “Exchange”), upon
the terms and conditions set forth herein.

          E. The Series A Preferred Stock (as defined herein) is intended to qualify as an exempted
security under Section 3(a)(9) of the Securities Act of 1933, as amended (the “Securities
Act”).

AGREEMENT

     NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for
other good and valuable consideration the receipt and adequacy of which are hereby acknowledged,
the Company and the Investors agree as follows:

ARTICLE I

THE EXCHANGE

 

 

          1.1 Closing. Subject to the terms and conditions set forth in this Agreement, the
Company and the Investors shall exchange an aggregate $2,077,886.01
of Notes for 1,539,176 shares
of the Company’s Series A Preferred Stock, par value $0.01 per share (the “Series A Preferred
Stock”), and the Company shall issue to the Investors five-year warrants (the
“Warrants”), in substantially the form attached hereto as Exhibit A, to purchase a
number of shares of Common Stock equal to 10% of the number of shares of Series A Preferred Stock
issuable to such Investor hereunder at an exercise price per share equal to the Warrant Price (as
defined in the Warrants). The closing of the Exchange and issuance of the Warrants (the
“Closing”) shall take place at the offices of Drinker Biddle & Reath LLP, One Logan Square,
18th and Cherry Sts., Philadelphia, PA 19103, on the date hereof or such other date as
the parties shall agree (the “Closing Date”).

          1.2 Exchange. At the Closing, (i) the Investors shall deliver to the Company the
Notes, (ii) the Company shall deliver to the Investors stock certificates, registered in the names
of the Investors, representing the Series A Preferred Stock allocated among the Investors as
specified in Schedule 2.1 hereto, and (iii) the Company shall deliver to the Investors
Warrants to purchase the number of shares of Common Stock as is set forth opposite the name of such
Investor on Schedule 2.1.

          1.3 Terms of Series A Preferred Stock. The Series A Preferred Stock shall have the
rights, preferences and privileges as set forth in the Certificate of Designation, Preferences and
Rights attached hereto as Exhibit B (the “Certificate of Designation”) to be filed
prior to the Closing by the Company with the Secretary of State of Delaware.

          1.4 Original Notes. Effective as of the Closing Date, the Notes shall be canceled and
shall thereafter represent only the right to receive certificates representing shares of the Series
A Preferred Stock.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

          2.1 Investor Representations and Warranties. Such Investor hereby represents and
warrants to the Company as follows on the Execution Date and the Closing Date:

               (a) Organization; Authority. Such Investor, if not a natural person, is an entity
duly organized, validly existing and in good standing under the laws of the jurisdiction of its
organization. Such Investor has the requisite power and authority to enter into and to consummate
the transactions contemplated by this Agreement and otherwise to carry out its obligations
hereunder. This Agreement has been duly executed by such Investor, and when delivered by such
Investor in accordance with the terms hereof, will constitute the valid and legally binding
obligation of such Investor, enforceable against it in accordance with its terms.

               (b) Ownership of the Notes. Such Investor is the sole owner of all of the Notes set
forth opposite its name on Schedule 2.1 hereof, free and clear of any and all liens, claims
and encumbrances of any kind.

 

 

               (c) Investment Intent. Such Investor is acquiring the Series A Preferred Stock and
Warrants as principal for its own account for investment purposes only and not with a view to or
for distributing or reselling such Series A Preferred Stock or Warrants or any part thereof, except
pursuant to sales that are exempt from the registration requirements of the Securities Act and/or
sales registered under the Securities Act. Such Investor does not have any agreement or
understanding, directly or indirectly, with any person or entity to distribute the Series A
Preferred Stock or Warrants. Notwithstanding anything in this Section 2.1(c) to the
contrary, by making the representations herein, such Investor does not agree to hold the Series A
Preferred Stock or Warrants for any minimum or other specific term and reserves the right to
dispose of the Series A Preferred Stock or Warrants at any time in accordance with or pursuant to a
registration statement or an exemption from the registration requirements under the Securities Act.

               (d) Investor Status. At the time such Investor was offered the Series A Preferred
Stock, it was, and at the date hereof it is, an “accredited investor” as defined in Rule 501(a) of
Regulation D under the Securities Act. Such Investor is not a broker-dealer. Each Investor has
completed an accredited investor certification in the form attached hereto as Exhibit C.

               (e) General Solicitation. Such Investor is not acquiring the Series A Preferred Stock
or Warrants as a result of or subsequent to any advertisement, article, notice or other
communication regarding the Series A Preferred Stock or Warrants published in any newspaper,
magazine or similar media or broadcast over television or radio or presented at any seminar or any
other general solicitation or general advertisement.

               (f) Reliance. Such Investor understands and acknowledges that (i) the Series A
Preferred Stock and Warrants are being offered and sold to it without registration under the
Securities Act in a transaction that is exempt from the registration provisions of the Securities
Act, and (ii) the availability of such exemption depends in part on, and the Company will rely upon
the accuracy and truthfulness of, the foregoing representations, and such Investor hereby consents
to such reliance.

               (g) Brokers and Finders. Such Investor has no knowledge of any person who will be
entitled to or make a claim for payment of any finder fee or other compensation as a result of the
consummation of the transactions contemplated by this Agreement.

          2.2 Company Representations and Warranties. The Company hereby makes the following
representations and warranties to each Investor on the Execution Date and on the Closing Date:

               (a) Organization and Qualification. The Company is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Delaware, with the requisite
corporate power and authority to own and use its properties and assets and to carry on its business
as currently conducted. The Company is duly qualified as a foreign corporation to do business and
is in good standing in every jurisdiction where the nature of the

 

 

business it conducts makes such
qualification necessary, except where the failure to do so would not have a material adverse effect
on the Company.

               (b) Authorization; Enforcement. The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by this Agreement and to
issue the Series A Preferred Stock and the Conversion Shares, as such term is defined in the
Certificate of Designation, upon conversion of the Series A Preferred Stock in accordance with the
terms of the Certificate of Designation, to issue the Warrants and Warrant Shares, as such term is
defined in the Warrants, upon exercise of the Warrants in accordance with the terms of the Warrants
and otherwise to carry out its obligations hereunder and thereunder. The execution, delivery and
performance of this Agreement and the Certificate of Designation and the consummation of the
transactions contemplated hereby and thereby have been duly authorized by the Company’s Board of
Directors, and no further consent or authorization of the Company, its Board of Directors
(including any committee thereof) or any class of the Company’s stockholders is required. This
Agreement, the Warrants and the Certificate of Designation have been duly executed by the Company
and, when delivered in accordance with the terms hereof, will constitute the valid and binding
obligations of the Company enforceable against the Company, in accordance with their terms.

               (c) Issuance of the Series A Preferred Stock. The Series A Preferred Stock, when
issued at the Closing, will be duly authorized, validly issued, fully paid and non-assessable and
will be free and clear of all taxes, liens, options or other encumbrances of any nature.

               (d) No Conflicts. The execution, delivery and performance of this Agreement, the
performance by the Company of its obligations under the Certificate of Designation and the
consummation by the Company of the transactions contemplated hereby and thereby (including, without
limitation, the issuance and reservation for issuance, as applicable, of the Series A Preferred
Stock, Conversion Shares and Warrant Shares will not, (i) result in a violation of the certificate
of incorporation of the Company (the “Certificate of Incorporation”) or the bylaws of the
Company (the “Bylaws”) or (ii) result in a violation of any law, rule, regulation, order,
judgment or decree (including United States federal and state securities laws and regulations and
rules or regulations of any self-regulatory organizations to which either the Company or its
securities are subject) applicable to the Company or by which any property or asset of the Company
is bound or affected. The Company is not in violation of its Certificate of Incorporation, Bylaws
or other organizational documents. The Company is not in default (and no event has occurred which,
with notice or lapse of time or both, would put the Company in default) under, nor has there
occurred any event giving others (with notice or lapse of time or both) any rights of termination,
amendment, acceleration or cancellation of, any agreement,
indenture or instrument to which the Company is a party except for such violations, defaults or
events that have had a material adverse effect.

               (e) Absence of Certain Changes. Since June 30, 2008, there has been no material
adverse change and no material adverse development in the business, properties, operations,
prospects, financial condition or results of operations of the Company, except as disclosed in the
reports, schedules, forms, statements and other documents (including all

 

 

financial statements and
schedules thereto and all exhibits included therein and documents incorporated by reference
therein) required to be filed by the Company with the Securities and Exchange Commission (the
“SEC”) pursuant to the reporting requirements of the Securities Exchange Act of 1934, as
amended, filed before the date hereof. The Company has not taken any steps, and does not currently
expect to take any steps, to seek protection pursuant to any bankruptcy or receivership law nor
does the Company have any knowledge or reason to believe that its creditors intend to initiate
involuntary bankruptcy proceedings with respect to the Company.

               (f) Certain Fees. No fees or commissions will be payable by the Company to any broker,
financial advisor or consultant, finder, placement agent, investment banker, bank or other Person
with respect to the transactions contemplated by this Agreement.

ARTICLE III

OTHER COVENANTS

          3.1 Securities Laws. Such Investor acknowledges that the Series A Preferred Stock and
Warrants have not been registered under the Securities Act and may only be disposed of pursuant to
an available exemption from or in a transaction not subject to the registration requirements of the
Securities Act.

          3.2 Restrictive Legend. Such Investor agrees to the imprinting of the following
legend on the Series A Preferred Stock and the Warrants:

     THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION,
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933 AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

          3.3 Listing/Quotation. The Company shall maintain, so long as any Investor (or any of
their affiliates) owns any Series A Preferred Stock or Warrants, the listing or quotation
of all Conversion Shares and Warrant Shares from time to time issuable upon conversion of the
Series A Preferred Stock on each national securities exchange or automated quotation system on
which shares of Common Stock are listed or quoted from time to time.

          3.4 Reservation of Shares. The Company shall at all times have authorized and
reserved for the purpose of issuance a sufficient number of Conversion Shares and Warrant Shares.

 

 

ARTICLE IV

MISCELLANEOUS

          4.1 Fees and Expenses. Except as set forth in this Section 4.1, each party shall pay
the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all
other expenses incurred by such party incident to the negotiation, preparation, execution, delivery
and performance of this Agreement. The Company shall pay all stamp and other taxes and duties
levied in connection with the issuance of the Series A Preferred Stock.

          4.2 Entire Agreement; Amendments. This Agreement, together with the exhibits and
schedules hereto, contains the entire understanding of the parties with respect to the subject
matter hereof and supersedes all prior agreements and understandings, oral or written, with respect
to such matters, which the parties acknowledge have been merged into such documents, exhibits and
schedules.

          4.3 Notices. Any and all notices or other communications or deliveries required or
permitted to be provided hereunder shall be in writing and shall be deemed given and effective on
the earliest of (i) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section prior to 5:00 p.m. (New York City time)
on a business day, against electronic confirmation thereof, (ii) the business day after the date of
transmission, if such notice or communication is delivered via facsimile at the facsimile telephone
number specified in this Agreement later than 5:00 p.m. (New York City time) on any date, against
electronic confirmation thereof, (iii) the business day following the date of mailing, if sent by
nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom
such notice is required to be given. The address for such notices and communications shall be as
follows:

	 	 	 	 	 
	 

	 	If to the Company:
	 	Echo Therapeutics, Inc.
	 

	 	 	 	10 Forge Parkway
	 

	 	 	 	Franklin, MA 02038
	 

	 	 	 	Facsimile No.: (508) 553-8760
	 

	 	 	 	Attn: Chief Executive Officer
	 
	 	 	 	 
	 

	 	With copies to (which shall
	 	Drinker Biddle & Reath LLP
	 

	 	not constitute notice):
	 	One Logan Square
	 

	 	 	 	18th and Cherry Streets
	 

	 	 	 	Philadelphia, PA 19103-6996
	 

	 	 	 	Facsimile No.: (215) 988-2757
	 

	 	 	 	Attn: Stephen T. Burdumy, Esq.
	 
	 	 	 	 
	 

	 	If to the Investors:
	 	At the address of such Investor set forth on Schedule
2.1 to this Agreement.

or such other address as may be designated in writing hereafter, in the same manner, by such person
or entity.

 

 

          4.4 Amendments; Waivers. No provision of this Agreement may be waived or amended
except in a written instrument signed, in the case of an amendment, by the Company and by Investors
holding a majority of the outstanding principal amount of the Notes as of the date hereof or, in
the case of a waiver, by the party against whom enforcement of any such waiver is sought. No
waiver of any default with respect to any provision, condition or requirement of this Agreement
shall be deemed to be a continuing waiver in the future or a waiver of any other provision,
condition or requirement hereof, nor shall any delay or omission of either party to exercise any
right hereunder in any manner impair the exercise of any such right accruing to it thereafter.

          4.5 Headings. The headings herein are for convenience only, do not constitute a part
of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

          4.6 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties and their successors and permitted assigns. No Investor may assign this
Agreement or any rights or obligations hereunder without the prior written consent of the Company.

          4.7 No Third-Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective successors and permitted assigns and is not for the benefit of,
nor may any provision hereof be enforced by, any other person or entity.

          4.8 Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of New York, without regard to the principles of
conflicts of law thereof. The Company and each Investor irrevocably consent to the jurisdiction of
the United States federal courts and state courts located in the State of New York in any suit or
proceeding based on or arising under this Agreement and irrevocably agree that all claims in
respect of such suit or proceeding may be determined in such courts.

          4.9 Survival. The representations and warranties contained herein shall survive until
the expiration of the first anniversary following the Closing. The agreements and
covenants contained herein shall survive the Closing and the delivery of the Series A
Preferred Stock until the expiration of the applicable statute of limitations (if any) therefor.

          4.10 Execution. This Agreement may be executed in one or more counterparts, all of
which when taken together shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party, it being
understood that all parties need not sign the same counterpart. In the event that any signature is
delivered by facsimile transmission or a scanned copy via electronic mail, such signature shall
create a valid and binding obligation of the party executing (or on whose behalf such signature is
executed) the same with the same force and effect as if such facsimile or scanned signature page
were an original thereof.

          4.11 Severability. In case any one or more of the provisions of this Agreement shall
be invalid or unenforceable in any respect, the validity and enforceability of the remaining

 

 

terms
and provisions of this Agreement shall not in any way be affected or impaired thereby and the
parties will attempt to agree upon a valid and enforceable provision which shall be a reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this
Agreement.

          4.12 Further Assurances. The parties hereto agree that each shall execute and deliver
any and all further agreements, instruments, certificates and other documents, and shall take any
and all action, as any of the parties hereto may reasonably deem necessary or desirable in order to
carry out the intent of the parties to this Agreement.

          4.13 Attorneys’ Fees. If either party shall commence an action or proceeding to
enforce any provisions relating to the obligations to close the transactions contemplated by this
Agreement prior to the Closing, then the prevailing party in such action or proceeding shall be
reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred with
the investigation, preparation and prosecution of such action or proceeding.

[signature page follows]

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Exchange Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above.

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	ECHO THERAPEUTICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Patrick T. Mooney 
	 	 
	 

	 	Name:
	 	Patrick T. Mooney	 	 
	 

	 	Title:	 	Chief Executive Officer	 	 

[Additional Signature Pages Follow]

 

 

	 	 	 	 	 
	INVESTOR:	 	 
	 
	 	 	 	 
	Platinum Long Term Growth VII, LLC	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ Platinum Long Term Growth VII, LLC
 

	 	  
	Title:
	 	 	 	 

[Signature Page to Exchange Agreement]

 

 

	 	 	 	 	 
	INVESTOR:	 	 
	 
	 	 	 	 
	Richard K. Wagner Family Trust 	 	 
	 
	 	 	 	 
	By:

	 	/s/ Richard K. Wagner
 

	 	  
	Name:

	 	Richard K. Wagner	 	 
	Title:

	 	Trustee	 	 

[Signature Page to Exchange Agreement]

 

 

	 	 	 	 	 
	INVESTOR:	 	 
	 
	 	 	 	 
	The Price Family Trust 	 	 
	 
	 	 	 	 
	By:

	 	/s/ Tracy K. Price
 

	 	  
	Name:

	 	Tracy K. Price	 	 
	Title:

	 	Trustee	 	 

[Signature Page to Exchange Agreement]

 

 

	 	 	 	 	 
	INVESTOR:	 	 
	 
	 	 	 	 
	Michael R. Wigley	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ Michael R. Wigley
 

Michael R. Wigley
	 	  
	Title:

	 	Investor	 	 

[Signature Page to Exchange Agreement]

 

 

	 	 	 	 	 
	INVESTOR:	 	 
	 
	 	 	 	 
	Edward J. Mooney	 	 
	 
	 	 	 	 
	By:

	 	/s/ Edward J. Mooney
 

	 	  
	Name:

	 	Edward J. Mooney	 	 
	Title:

	 	Trustee	 	 

[Signature Page to Exchange Agreement]

 

 

	 	 	 	 	 
	INVESTOR:	 	 
	 
	 	 	 	 
	David Wiener Revocable Trust	 	 
	 
	 	 	 	 
	By:

	 	/s/ David Wiener
 

	 	  
	Name:

	 	David Wiener	 	 
	Title:

	 	Trustee	 	 

[Signature Page to Exchange Agreement]

 

 

	 	 	 	 	 
	INVESTOR:	 	 
	 
	 	 	 	 
	Kate Wiener Revocable Trust	 	 
	 
	 	 	 	 
	By:

	 	/s/ Kate Wiener
 

	 	  
	Name:

	 	Kate Wiener	 	 
	Title:

	 	Trustee	 	 

[Signature Page to Exchange Agreement]

 

 

	 	 	 	 	 
	INVESTOR:	 	 
	 
	 	 	 	 
	Rick van der Toorn	 	 
	 
	 	 	 	 
	By:

	 	/s/ Rick van der Toorn
 

	 	  
	Name:

	 	Rick van der Toorn	 	 
	Title:

	 	Investor	 	 

[Signature Page to Exchange Agreement]

 

 

Schedule 2.1

Investors 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Original	 	 	 	 	 	 	Preferred	 	 	 	 
	Investor	 	Notes	 	 	PIK Notes	 	 	Stock*	 	 	Warrants	 
	Platinum Long Term Growth
VII, LLC
	 	 	1,561,740.00	 	 	 	80,721.02	 	 	 	1,216,636	 	 	 	121,663	 
	Richard K. Wagner Family Trust
	 	 	124,899.00	 	 	 	5,059.88	 	 	 	96,264	 	 	 	9,626	 
	The Price Family Trust
	 	 	124,899.00	 	 	 	5,059.88	 	 	 	96,264	 	 	 	9,626	 
	Michael R. Wigley
	 	 	62,449.00	 	 	 	2,529.89	 	 	 	48,131	 	 	 	4,813	 
	Edward J. Mooney
	 	 	31,225.00	 	 	 	1,265.00	 	 	 	24,065	 	 	 	2,406	 
	David Wiener Revocable Trust
	 	 	25,000.00	 	 	 	1,012.78	 	 	 	19,267	 	 	 	1,926	 
	Kate Wiener Revocable Trust
	 	 	25,000.00	 	 	 	1,012.78	 	 	 	19,267	 	 	 	1,926	 
	Rick van der Toorn
	 	 	25,000.00	 	 	 	1,012.78	 	 	 	19,267	 	 	 	1,926	 

 

			
	*	 	Fractional shares issuable upon exchange shall be settled in cash at Closing.<PAGE> 1

                                                                   EXHIBIT 10.1

                                    AGREEMENT

         This Agreement is made by and between PVF Capital Corp. ("PVF") and
Park View Federal Savings Bank (the "Bank") (collectively, the "PVF Parties")
and Steven A. Calabrese, CCAG Limited Partnership and Steven A. Calabrese Profit
Sharing Trust (collectively, the "Calabrese Parties") on behalf of themselves
and their respective affiliates (the PVF Parties and the Calabrese Parties
together, collectively, the "Parties"). In consideration of the covenants,
promises and undertakings set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties hereby agree as follows:

         1. BOARD EXPANSION AND MEMBERSHIP

         (a)    At the "Effective Date," as determined below, the board of
directors of PVF (the "Board") will be expanded from eight to ten members, and
Steven A. Calabrese will be appointed as a director of PVF by the Board. Mr.
Calabrese will be appointed to the class of directors with terms expiring at
PVF's 2009 annual meeting of stockholders. At all times from and after the date
of this Agreement, the Board will appoint, at its sole discretion, all other
persons to fill remaining director positions or vacancies on the Board. Mr.
Calabrese shall receive the normal compensation and benefits paid to directors
of PVF and the Bank while he serves as a director thereof. The Effective Date
shall be determined in the manner set forth below, and shall be the day
following the date that to the reasonable satisfaction of PVF none of the
Calabrese Parties is a "management official" of LNB Bancorp, Inc. ("LNB") or a
"depository institution" subsidiary thereof. Such determination that none of the
Calabrese Parties is a "management official" of LNB or a "depository
institution" subsidiary thereof shall be made when all of the following have
occurred: (i) Mr. Calabrese shall have delivered to LNB a written irrevocable
waiver of his right to designate a nominee and successor nominee to the Board of
Directors of LNB, a copy of which Mr. Calabrese shall provide to PVF; (ii) PVF
shall have received a certificate executed by Mr. Calabrese stating that he is
not a "management official" of LNB or a "depository institution" subsidiary
thereof; and (iii) PVF shall have received certificates executed by each of Mr.
Thomas P. Perciak and Mr. Daniel G. Merkel, each of whom currently is serving as
a director of LNB Bancorp, Inc., that each such individual does not have any
agreement, express or implied, with Mr. Calabrese, nor does he have any other
obligation, to act on behalf of Mr. Calabrese with respect to his
responsibilities as a director of LNB or a "depository institution" subsidiary
thereof. The terms "management official" and "depository institution" shall have
the meanings given to them in 12 C.F.R. Part 563f of the Office of Thrift
Supervision Rules and Regulations.

         (b)    Concurrently with the appointment of Mr. Calabrese as a director
of PVF, the board of directors of the Bank will appoint Mr. Calabrese as a
director of the Bank.

         (c)    Subject to any limitation imposed by law or by any regulatory
authority having jurisdiction over PVF or the Bank, the Board agrees to
renominate Steven A. Calabrese or such substitute nominee he may designate
pursuant to Section 1(d) herein for election as a director of PVF for a
three-year term at PVF's 2009 annual meeting of stockholders and, if he is
reelected by PVF's stockholders at PVF's 2009 annual meeting of stockholders, to
reelect him as a director of the Bank at the Bank's 2009 annual meeting of
stockholders so long as he does not seasonably give notice to the Company and
the Bank that he does not seek such renomination or reelection at the time of
such occurrence.

         (d)    Subject to any limitation imposed by law or by any regulatory
authority having jurisdiction over PVF or the Bank, in the event that any time
prior to the scheduled expiration of his initial term as a director or, if,
pursuant to Section 1(c) herein, he is reelected as a director at PVF's 2009
annual meeting of stockholders, prior to the scheduled expiration of the term to
which he is reelected, Mr. Calabrese is unable to serve as a director, whether
because of resignation, removal or otherwise, Mr. Calabrese shall be entitled to
designate a substitute nominee who is reasonably acceptable to the Board, and
PVF shall cause such

<PAGE> 2

reasonably acceptable nominee to be appointed to the Board to complete Mr.
Calabrese's initial term as a director, provided such substitute nominee shall
agree to be bound by the provisions of Sections 2 and 3 herein. Notwithstanding
the foregoing, if at any time the Calabrese Parties do not beneficially own (as
determined in accordance with Rule 13d-3 promulgated under the Exchange Act), in
the aggregate, at least 4.0% of PVF's outstanding common stock, Mr. Calabrese's
right to designate such substitute nominee shall terminate.

         2. STANDSTILL

         The Calabrese Parties each agree that, beginning as of the date hereof
and continuing for a period of two years from the date of this Agreement, (the
"Standstill Period"), they and their affiliates or associates (as defined in
Rule 12b-2 promulgated pursuant to the Securities Exchange Act of 1934, as
amended (the "Exchange Act")) will not (and they will not assist or encourage
others to), directly or indirectly, in any manner, without prior written
approval of the Board:

         (i)    make, or in any way participate in, alone or in concert with
others, any "solicitation" of "proxies" to vote (as such terms are used in the
proxy rules of the Securities and Exchange Commission promulgated pursuant to
Section 14 of the Exchange Act) or seek to advise or influence in any manner
whatsoever any person with respect to the voting of any voting securities of
PVF, except pursuant to PVF's publication of its proxy statement;

         (ii)   form, join or in any way participate in a "group" within the
meaning of Section 13(d)(3) of the Exchange Act with respect to any voting
securities of PVF;

         (iii)  acquire, offer to acquire or agree to acquire, alone or in
concert with others, by purchase, exchange or otherwise, (a) any of the assets,
tangible and intangible, of PVF or (b) direct or indirect rights, warrants or
options to acquire any assets of PVF;

         (iv)   otherwise act, alone or in concert with others (except in his
expressing views as a director at meetings of the board of directors or a
committee of the board of directors of PVF or the Bank), to seek to offer to PVF
or any of its stockholders any business combination, tender or exchange offer,
restructuring, recapitalization or similar transaction to or with PVF or
otherwise seek, alone or in concert with others to control or change the
management, Board or policies of PVF or nominate any person as a director of PVF
or the Bank who is not nominated by the then incumbent directors, or propose any
matter to be voted upon by the stockholders of PVF;

         (v)    make or cause to be made a proposal for consideration by the
stockholders of PVF; or

         (vi)   announce an intention to do, or enter into any arrangement or
understanding with others to do, any of the actions restricted or prohibited
under clauses (i) through (v) of this Section 2, or publicly announce or
disclose any request to be excused from any of the foregoing obligations of this
Section 2.

         At the 2008 PVF annual meeting of stockholders, the Calabrese Parties
agree to vote all the shares they collectively beneficially own, including
shares owned by Mr. Calabrese's wife or minor children, in favor of the nominees
for election or reelection as director of PVF selected by the Board and
otherwise to support such director candidates. Thereafter, during the Standstill
Period, the Calabrese Parties agree to vote all shares of PVF they or any of
them beneficially own, including shares owned by Mr. Calabrese's wife or minor
children, in favor of the nominees for election or reelection as director of PVF
selected by the Board and agree otherwise to support such director candidates.

                                       2
<PAGE> 3

         Any of the Calabrese Parties may acquire securities (or beneficial
ownership thereof) of PVF provided that such acquisitions are not made in
connection with any of the actions prohibited by this Section 2.

         3.     NON-DISPARAGEMENT

         During the Standstill Period, the Calabrese Parties agree not to
disparage either of the PVF Parties or any officers or directors (including
director nominees) of the PVF Parties or their affiliated entities in any public
forum, and the PVF Parties agree not to disparage any of the Calabrese Parties
or any officers of the Calabrese Parties or their affiliated entities in any
public forum.

         4.     AUTHORITY

         Each of the Parties which is a corporation or other legal entity and
each individual Party executing this Agreement on behalf of a corporation or
other legal entity, represents and warrants that: (a) such corporation or other
legal entity is duly organized, validly authorized and in good standing, and
possesses full power and authority to enter into and perform the terms of this
Agreement; (b) the execution and delivery, and performance of the terms of this
Agreement have been duly and validly authorized by all requisite acts and
consents of the Party or other legal entity and do not contravene the terms of
any other obligation to which the corporation or other legal entity is subject;
and (c) this Agreement constitutes a legal, binding and valid obligation of each
such entity, enforceable in accordance with its terms.

         5.     AMENDMENT IN WRITING

         This Agreement and each of its terms may only be amended, waived,
supplemented or modified in a writing signed by the signatories hereto or their
respective clients.

         6.     TERMINATION

         (a) This Agreement shall terminate, the Standstill Period shall end
immediately and the Parties will have no further obligations hereunder if Mr.
Calabrese has not been appointed as a director at PVF within 14 days following
the date hereof.

         (b)    This Agreement shall terminate and the Standstill Period shall
end immediately and the Parties shall have no further obligations hereunder upon
the receipt by the Secretary of each of PVF and the Bank of written resignations
from Mr. Calabrese or any substitute nominee he has selected pursuant to Section
1(d) herein from the respective boards of directors of PVF and the Bank or if
Mr. Calabrese notifies the Board of his intention not to stand for reelection as
director of PVF at PVF's 2009 annual meeting of stockholders, provided that Mr.
Calabrese also has delivered to the Company and the Bank a written irrevocable
waiver of his rights to be renominated pursuant to Section 1(c) herein and to
designate a successor nominee pursuant to Section 1(d) herein.

         (c)    The provisions of clauses (i) through (vi) of Section 2 of this
Agreement (other than the commitment in clause (iv) of Section 2 not to nominate
any person as a director of PVF or the Bank, which commitment will not terminate
under the circumstances set forth in this Section 6(c)) shall terminate upon a
decision by the Board after the date hereof to engage in substantive
negotiations with any prospective merger partner or partners identified through
a solicitation of indications of interest or otherwise, with respect to (i) any
merger, consolidation, reorganization, recapitalization or other transaction or
series of related transactions that would result in the acquisition, directly or
indirectly, by another person or "group" (within the meaning of Section 13(d)(3)
of the Exchange Act), of securities entitling such person or group to exercise
at least a majority of the total voting power of PVF in the election of
directors (or if PVF is not the

                                       3
<PAGE> 4

surviving or resulting corporation in such a transaction, if the transaction
would result in the acquisition, directly or indirectly, by such person or group
of securities entitling such person or group to exercise at least a majority of
the total voting power of such surviving or resulting corporation), or (ii) the
sale of all or substantially all of the PVF's assets (each of the transactions
referred to in clauses (i) and (ii) of this Section 6(c) are hereinafter
referred to as a "Sale Transaction"). For purposes of this Section 6(c), the
parties agree that the term "substantive negotiations" shall not extend to any
discussions between PVF and any other party prior to the earlier of the time
that such other party has made a written or oral proposal to PVF with respect to
a Sale Transaction (specifying price) and PVF has provided non-public business
or financial information to such other party.

         7.     SPECIFIC PERFORMANCE

         The Parties acknowledge and agree that irreparable injury to the other
party would occur in the event any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached and
that such injury would not be adequately compensable in damages. Therefore,
without prejudice to the rights and remedies otherwise available to it, the
Parties agree that each Party hereto (the "Moving Party") shall be entitled to
specific enforcement of, and injunctive relief to prevent any violation of, the
terms hereof, and the other Parties hereto will not take action, directly or
indirectly, in opposition to the Moving Party seeking such relief on the grounds
that any other remedy or relief is available at law or in equity.

         8.     GOVERNING LAW/VENUE/JURISDICTION

         This Agreement, and the rights and liabilities of the Parties hereto,
shall be governed by and construed in accordance with the laws of the State of
Ohio without regard to conflict of law provisions.

         9.     COUNTERPARTS

         This Agreement may be executed in counterparts, each of which shall be
considered to be an original or true copy of this Agreement. Faxed signatures
shall be presumed valid.

         10.    NONWAIVER

         The failure of any one of the Parties to insist upon strict adherence
to any term of this Agreement on any occasion shall not be considered a waiver
thereof or deprive the Parties of the right thereafter to insist upon strict
adherence to that term or any other term of this Agreement.

         11.    DISCLOSURE OF THIS AGREEMENT

         The parties contemplate PVF will file a Form 8-K attaching this
Agreement and that there will be no other public comments (except as required by
applicable SEC regulations) by the Parties regarding this Agreement other than a
press release by PVF mutually agreed upon factually summarizing this Agreement
and referring to the Form 8-K filing.

         12.    ENTIRE AGREEMENT

         This Agreement constitutes the full, complete and entire understanding,
agreement, and arrangement of and between the Parties with respect to the
subject matter hereof and supersedes any and all prior oral and written
understandings, agreements and arrangements between them. There are no other
agreements, covenants, promises or arrangements between the Parties other than
those set forth in this Agreement.

                                       4
<PAGE> 5
         13.      NOTICE

         All notices and other communications which are required or permitted
hereunder shall be in writing, and sufficient if by same-day hand delivery
(including delivery by courier) or sent by fax, addressed as follows:

         If to the PVF Parties:

                Mr. John R. Male
                Chairman of the Board
                30000 Aurora Road
                Solon, Ohio 44139
                Fax: (440) 914-3916

with a copy to:

                Joel E. Rappoport, Esq.
                Kilpatrick Stockton LLP
                607 14th Street, N.W.
                Suite 900
                Washington, DC 20005-2018
                Fax:  (202) 204-5620

         If to the Calabrese Parties:

                Mr. Steven A. Calabrese
                1110 Euclid Avenue, Suite 300
                Cleveland, OH 44115
                Fax: (216) 696-5499

with a copy to:

                Marc C. Krantz, Esq.
                Kohrman Jackson & Krantz PLL
                One Cleveland Center
                20th Floor
                1375 East Ninth Street
                Cleveland, Ohio 44114-1793
                Fax:  (216) 621-6536

                                       5
<PAGE> 6

         IN WITNESS WHEREOF, the Parties hereto have each executed this
Agreement on the date set forth below.

Dated:   September 30, 2008

For Steven A. Calabrese:                     For PVF Capital Corp.:

/s/ Steven A. Calabrese                  By: /s/ John R. Male
-----------------------------------          --------------------------
Steven A. Calabrese                          John R. Male
                                             Chairman of the Board

For CCAG Limited Partnership:                For Park View Federal Savings Bank:

By:  TGF, Inc., its general partner

/s/ Steven A. Calabrese                  By: /s/ John R. Male
-----------------------------------          --------------------------
Steven A. Calabrese                          John R. Male
President                                    Chairman of the Board

For Steven A. Calabrese Profit Sharing Trust:

/s/ Steven A. Calabrese
-----------------------------------
Steven A. Calabrese
Co-Trustee

                                       6

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