Document:

EXHIBIT
10.1

    

     

    EMPLOYMENT
AGREEMENT

    FOR

    MARK
A. KLEIN

     

    This
Employment Agreement (“Agreement”) is entered into this 30th day of July, 2010
(“Effective Date”), by and between Rurban Financial Corp., an Ohio corporation
(the “Employer”), and Mark A. Klein (the “Executive”).

     

    WHEREAS, the Executive is
currently employed by the Employer; and

     

    WHEREAS, the Employer desires
to continue to employ the Executive and to enter into an agreement embodying the
terms of such employment; and

     

    WHEREAS, the Executive desires
to continue such employment and enter into such an agreement;

     

    NOW, THEREFORE, in
consideration of the mutual covenants herein contained and other valuable
consideration, the receipt and adequacy of which are agreed to by the parties,
the Employer and the Executive hereby mutually agree as follows:

     

        1. Position and
Duties.  The Executive shall continue to be employed by the
Employer pursuant to the terms and conditions of this Agreement and, if elected
to such position by the Board of Directors of the Employer (the “Board”), shall
serve as the Chief Executive Officer of the Employer.  During the Term
(as defined below):

     

    
      
        	 	(a)	
                The
      Executive shall have the authority commensurate with the Executive’s
      position and such duties as shall be determined from time to time by the
      Board and shall report directly to the Board.  In addition, the
      Executive shall be appointed to fill a vacancy on the Board and shall
      serve the remainder of such term; thereafter, the Executive shall serve as
      a member of the Board, if elected to such position by the shareholders of
      the Employer.

              
	 	 	 
	 	(b) 	
                The
      Executive will further perform such other duties and hold such other
      positions related to the business of the Employer and its Affiliates as
      may from time to time be reasonably requested of the Executive by the
      Board. For purposes of this Agreement, an “Affiliate” shall mean any
      corporation (including any non-profit corporation), general or limited
      partnership, limited liability company, joint venture, trust, association
      or organization which is, directly or indirectly, controlled by, or under
      common control with, the Employer.

              
	 	 	 
	
                 
      

              	
                (c)

              	
                Except
      as otherwise set forth in this Agreement, the Executive will devote all of
      the Executive’s skills and the Executive’s full business time and
      attention to the Executive’s duties hereunder and in furtherance of the
      business and interests of the Employer and its Affiliates and will not
      directly or indirectly render any services of a business, commercial or
      professional nature to any person or organization without the prior
      written consent of the Board; provided, however, that the Executive may
      devote reasonable periods required for: (i) serving as a director, trustee
      or member of a committee of any organization involving no actual,
      potential or perceived conflict of interest with the interests of the
      Employer or any Affiliate; (ii) delivering lectures, fulfilling speaking
      engagements, teaching at educational institutions or business
      organizations; (iii) engaging in charitable and community activities; and
      (iv) managing the Executive’s personal investments, but only if the
      activities set forth in this paragraph do not, individually, or together,
      interfere with the performance of Executive’s duties and responsibilities
      hereunder, as may be reasonably determined by the Board or any committee
      thereof.  Executive agrees to notify, and obtain the written
      approval (which approval shall not be unreasonably withheld) of, the
      Board, the Chairman of the Board or an appropriate committee of the Board
      before engaging in any activity described in subsections (i) or (iii) of
      this Section 2(c).

              

      

    

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
10.1

    

     

    
      	
               
      

            	
              (d)

            	
              Upon
      termination of the Executive’s employment hereunder for any reason, the
      Executive shall cease to hold any position as an officer or director (or
      any other similar position) of the Employer or any Affiliate and shall
      resign from all positions as an officer or director (or any other similar
      position) in all corporations, partnerships, limited liability companies
      or other entities for which the Executive is serving, at the Employer’s
      request, as an officer or director (or in such other similar
      position).

            

    

    

    2.    Term.   The
Term of this Agreement shall commence on the Effective Date and shall end on the
third anniversary thereof, subject to the terms and conditions set forth in this
Agreement; provided, however, that beginning on first anniversary of the
Effective Date and each anniversary thereof, the term shall be automatically
extended for an additional one year period, unless the Employer or the Executive
provides the other party not less than 180 days prior written notice that the
term shall not be so extended.  The initial term, plus any extension
thereof, shall be the “Term”

    

    3.           Compensation.

     

    
      	
               
      

            	
              (a)

            	
              Base
      Salary.  During the Term, the Executive will receive an
      annual base salary of $219,000.  The Board will review the
      Executive’s base salary annually and, in its sole discretion and subject
      to Section 5(f), may recommend increases to the amount of such base salary
      based upon procedures of the Employer that determine adjustments for other
      executives of the Employer.  The initial annual base salary,
      together with any increases, shall be the Executive’s base salary (“Base
      Salary”).  The Base Salary will be payable in accordance with
      the Employer’s regular payroll payment practices but not less frequently
      than monthly.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Annual
      Bonus.  During the Term, the Executive may be eligible
      for an incentive bonus payment in an amount and payable at such time or
      times as determined by the Board in its sole
  discretion.

            

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    EXHIBIT
10.1

     

    4.           Fringe Benefits and
Expenses.

     

    
      	
               
      

            	
              (a)

            	
              Fringe
      Benefits.  During the Term, the Employer will provide the
      Executive with all health and life insurance coverages, disability
      programs, tax-qualified retirement plans, equity compensation programs,
      and similar fringe benefit plans, paid holidays, paid vacation, and such
      other fringe benefits of employment as the Employer may provide from time
      to time to actively employed  and similarly situated employees
      of the Employer.  Notwithstanding any provision contained in
      this Agreement, the Employer may discontinue or terminate at any time any
      employee benefit plan, policy or program described in this Section 4(a),
      now existing or hereafter adopted, to the extent permitted by the terms of
      such plan, policy or program and will not be required to compensate the
      Executive for such discontinuance or termination. Termination or
      discontinuance of any such plan, policy or program shall not give the
      Executive “Good Reason” (as defined below) to terminate the Term and the
      Executive’s employment hereunder.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Expenses.  During
      the Term, the Employer shall reimburse the Executive for all reasonable
      travel, industry, entertainment, and out-of-pocket and miscellaneous
      expenses incurred by the Executive in connection with the performance of
      the Executive’s business activities under this Agreement in accordance
      with the existing policies and procedures of the Employer pertaining to
      reimbursement of such expenses to senior
  executives.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Vehicle.  During
      the Term, the Executive shall remain entitled to the use of any vehicle
      provided by the Employer as of the Effective Date.  The
      provision of any replacement vehicle or payment of a vehicle allowance
      shall be determined by the Board in the sole discretion and shall be
      provided or paid in accordance with the Employer’s policies and procedures
      relating to the provision of vehicles and the payment of vehicle
      allowances, if any, as may be in effect from time to
  time.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Liability
      Insurance.  The Executive shall be covered by any
      liability insurance policies covering directors and officers that the
      Employer elects to carry from time to time; provided, however, that
      nothing in the foregoing shall be construed as a requirement that the
      Employer purchase such liability
insurance.

            

    

    

    5.           Termination of
Employment.  For purposes of this Agreement, any reference to
the Executive’s “termination of employment” (or any form thereof) shall mean the
Executive’s “separation from service” within the meaning of Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”), and Treasury Regulation
§1.409A-1(h).

     

    
      	
               
      

            	
              (a)

            	
              Death of
      Executive.  The Term and the Executive’s employment will
      terminate upon the Executive’s death and the Executive’s beneficiary (as
      designated by the Executive in writing with the Employer prior to the
      Executive’s death) will be entitled to the following payments and
      benefits:

            

    

     

    
      	
               
      

            	
              (i)

            	
              any
      Base Salary that is accrued but unpaid and any business expenses that are
      unreimbursed – all, as of the date of termination of employment;
      and

            

    

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
10.1

    

     

    
      	
               
      

            	
              (ii)

            	
              any
      rights and benefits (if any) provided under plans and programs of the
      Employer, determined in accordance with the applicable terms and
      provisions of such plans and programs (the payments described in Sections
      5(a)(i) and (ii) are hereinafter collectively referred to as the “Accrued
      Obligations”).

            

    

     

    In the
absence of a beneficiary designation by the Executive, or, if the Executive’s
designated beneficiary does not survive him, payments and benefits described in
this Section 5(a) will be paid to the Executive’s estate.  Any
payments due under Section 5(a)(i) shall be made within 30 days after the
date of the Executive’s death.

     

    
      	
               
      

            	
              (b)

            	
              Disability.  The
      Term and the Executive’s employment may be terminated by the Employer upon
      45 days written notice from the Employer following the determination, as
      set forth immediately below, that the Executive suffers from a Permanent
      Disability.  For purposes of this Agreement, “Permanent
      Disability” means a physical or mental impairment that renders the
      Executive incapable of performing the essential functions of the
      Executive’s job, on a full-time basis, even taking into account reasonable
      accommodation required by law, as determined by a physician who is
      selected by the agreement of the Executive and the Employer, for a period
      of greater than 180 days.  During any period that the Executive
      fails to perform the Executive’s duties hereunder as a result of a
      Permanent Disability (“Disability Period”), the Executive will continue to
      receive the Executive’s Base Salary at the rate then in effect for such
      period until the Executive’s employment is terminated pursuant to this
      Section 5(b); provided, however, that payments of Base Salary so made to
      the Executive will be reduced by the sum of the amounts, if any, that were
      payable to the Executive at or before the time of any such salary payment
      under any disability benefit plan or plans of the Employer and that were
      not previously applied to reduce any payment of Base Salary.  In
      the event that the Employer elects to terminate the Executive’s employment
      due to Disability, the Executive will be entitled to payment of the
      Accrued Obligations as described in Section 5(a)(ii) of this
      Agreement.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Termination of
      Employment for Cause.  The Employer may terminate the
      Term and the Executive’s employment upon notice at any time for
      “Cause.”

            

    

     

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
10.1

    

     

    
      	
               
      

            	
              (i)

            	
              For
      purposes of this Agreement, “Cause” means: (A) the willful failure by the
      Executive to substantially perform the Executive’s duties hereunder (other
      than a failure resulting from the Executive’s incapacity because of death
      or disability), after notice from the Employer and
      a failure to cure such violation within twenty (20) days of said notice;
      (B) the willful engaging by the Executive in misconduct injurious to the
      Employer; (C) dishonesty, insubordination or gross negligence of the
      Executive in the performance of the Executive’s duties; (D) the
      Executive’s breach of fiduciary duty involving personal profit; (E) the
      Executive’s violation of any law, rule or regulation governing issuers of
      publicly traded securities or banks or bank officers or any regulatory
      enforcement actions issued by a regulatory authority against the
      Executive; (F) conduct on the part of the Executive which brings public
      discredit to the Employer and, if the effect may be cured, a failure to
      cure within twenty (20) days of the date notice of such conduct is
      delivered to the Executive; (G) the Executive’s conviction of or plea of
      guilty or nolo contendere to a felony (including conviction of or plea of
      guilty or nolo contendere to a misdemeanor that was originally charged as
      a felony but was reduced to a misdemeanor as a result of a plea bargain),
      crime of falsehood or a crime involving moral turpitude, or the actual
      incarceration of the Executive for a period of twenty (20) consecutive
      days or more; (H) an act by the Executive affecting any of the Employer’s
      employees, customers, business associates, contractors or visitors that an
      independent third party decides, after reasonable investigation,
      constitutes unlawful discrimination or harassment or violates the
      Employer’s policy concerning discrimination or harassment; (I) the
      Executive’s theft or abuse of the Employer’s property or the property of
      the Employer’s customers, employees, contractors, vendors or business
      associates; (J) the direction or recommendation of a state or federal bank
      regulatory authority to remove the Executive from the Executive’s
      position(s) with the Employer; (K) the Executive’s willful failure to
      follow the good faith lawful instructions of the Board with regard to its
      operations, after written notice and, if the event may be cured, a failure
      to cure such violation within twenty (20) days of the date said notice is
      delivered to the Executive; (L) material breach of any contract or
      agreement that the Executive entered with the Employer, including a breach
      of any of the obligations described in this Agreement and, if the breach
      may be cured, a failure to cure such breach within twenty (20) days of the
      date notice of such conduct is delivered to the Executive; or (M)
      unauthorized disclosure of the trade secrets or Confidential Information
      (as defined below) of the Employer, of any of its affiliates, trade
      partners or vendors.

            

    

     

    However,
Cause will not arise solely because the Executive is absent from active
employment during periods of vacation, consistent with the Employer’s applicable
vacation policy or other period of absence initiated by the Executive and
approved by the Employer.

     

    
      	
               
      

            	
              (ii)

            	
              In
      the event that the Employer terminates the Executive’s employment for
      Cause, the Executive will be entitled to payment of the Accrued
      Obligations as described in Section 5(a)(ii) of this
      Agreement.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Termination Without
      Cause.  The Employer may terminate the Term and the
      Executive’s employment for any reason upon 60 days prior written notice to
      the Executive.  If the Executive’s employment is terminated by
      the Employer for any reason other than the reasons set forth in
      subsections (a), (b) or (c) of this Section 5, the Executive will be
      entitled to the following payments and
benefits:

            

    

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
10.1

    

     

    
      	
               
      

            	
              (i)

            	
              Payment
      of the Accrued Obligations as described in Section 5(a)(ii) of this
      Agreement.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Continuation
      of the Executive’s Base Salary in effect on the date of the Executive’s
      termination of employment for two years following the date of the
      Executive’s termination.  The payments due under this
      Section 5(d)(ii) shall begin within 60 days following the date of
      termination and be made in accordance with the Employer’s normal payroll
      practices over such period.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Continuation
      of Executive’s group health, dental and vision insurance coverages in
      existence on the date of termination beginning on the date of termination
      and continuing for twelve consecutive months thereafter.  After
      expiration of this period, the Executive shall be eligible to continue
      such coverages provided that the Executive properly elects COBRA
      continuation coverage and pays the applicable
  premiums.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Voluntary Termination
      by Executive.  If the Executive resigns and voluntarily
      terminates the Term and the Executive’s employment with the Employer for
      any reason other than for Good Reason (as defined below), the Executive
      will be entitled to payment of the Accrued Obligations as described in
      Section 5(a)(ii) of this Agreement.

            

    

     

    
      	
               
      

            	
              (f)

            	
              Good Reason
      Termination.   The Executive may resign and
      terminate the Term and the Executive’s employment with the Employer for
      Good Reason upon not less than 60 days prior written notice to the
      Employer.

            

    

     

    
      	
               
      

            	
              (i)

            	
              For purposes of this Agreement,
      the Executive will have “Good Reason” to terminate the Executive’s
      employment with the Employer if any of the following events occur without
      the Executive’s consent (provided the Employer does not cure the effect of
      such event within 30 days following its receipt of written notice of such
      event from the Executive).

            

    

     

    
      	
               
      

            	
              (A)

            	
              The
      assignment of duties and responsibilities inconsistent with Executive’s
      status as Chief Executive Officer of the Employer, unless the Executive
      has simultaneously been promoted to a more senior position and has been
      assigned substantive duties normally associated with that new
      position.

            

    

     

    
      	
               
      

            	
              (B)

            	
              A
      reassignment which requires Executive to move his office more than fifty
      (50) miles from the location of the Employer’s principal executive
      office;

            

    

    

    
      	
               
      

            	
              (C)

            	
              Any
      reduction in the Executive’s Base Salary as in effect on the date hereof
      or as the same may be increased from time to time, except such reductions
      that are the result of a national financial depression, or national or
      bank emergency when such reduction has been implemented for the Employer’s
      senior management, as a group;

            

    

     

    
      
        
        

      

      
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      EXHIBIT
10.1

    
      	
               
      

            	
              (D)

            	
              Any
      requirement that the Executive report to a corporate officer or employee
      instead of reporting directly to the
Board;

            

    

    

    
      	
               
      

            	
              (E)

            	
              Failure
      at any time to obtain an assumption of the obligations under this
      Agreement by any successor, regardless of whether such entity becomes a
      successor as a result of a merger, consolidation, sale of assets or any
      other form of reorganization; and

            

    

    

    
      	
               
      

            	
              (F)

            	
              Any
      action or inaction that constitutes a material breach of this Agreement or
      any unsuccessful attempt to terminate the Executive for
    Cause.

            

    

    

    Notwithstanding the foregoing, Good
Reason shall cease to exist for an event on the 90th day following the later of
its occurrence or the Executive’s knowledge thereof, unless the Executive has
given the Employer written notice of such event and the Executive’s intent to
terminate for Good Reason prior to such date.

    

    
      	
               
      

            	
              (ii)

            	
              In
      the event that the Executive terminates the Term and the Executive’s
      employment with the Employer for Good Reason pursuant to this Section
      5(f), the Executive will be entitled
to:

            

    

    

    
      	
               
      

            	
              (A)

            	
              Payment
      of the Accrued Obligations as described in Section 5(a)(ii) of this
      Agreement; and

            

    

    

    
      	
               
      

            	
              (B)

            	
              Continuation
      of the Executive’s Base Salary in effect on the date of the Executive’s
      termination of employment or, if greater, the Executive’s Base Salary in
      effect immediately prior to any event described in Section 5(f)(i)(C) for
      two years following the date of the Executive’s termination which shall
      begin to be paid within 60 days following the date of termination and be
      payable in accordance with the Employer’s normal payroll practices over
      such period; and

            

    

     

    
      	
               
      

            	
              (C)

            	
              Continuation
      of Executive’s group health, dental and vision insurance coverages in
      existence on the date of termination beginning on the date of termination
      and continuing for twelve consecutive months thereafter.  After
      expiration of this period, the Executive shall be eligible to continue
      such coverages provided that the Executive properly elects COBRA
      continuation coverage and pays the applicable
  premiums.

            

    

     

    
      
        
        

      

      
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      EXHIBIT
10.1

    

     

    
      	
               
      

            	
              (g)

            	
              Cessation of
      Term.  If Employer elects to cease the automatic
      extension of the Term by providing written notice to Executive in
      accordance with the provisions of this Section 1, in lieu of continuing
      Executive’s employment for the remaining Term, Employer may terminate the
      Term and Executive’s employment hereunder and pay Executive the amounts
      set forth in Section 5(d).

            

    

     

    
      	
               
      

            	
              (h)

            	
              Expiration of Term of
      Agreement.  If the Term expires and it is not extended by
      the parties, and subject to the Employer’s right to earlier terminate the
      Term or the Executive’s employment for Cause, the Executive’s employment
      will terminate at the end of such term and the Executive will be entitled
      to payment of the Accrued Obligations as described in Section 5(a)(ii) of
      this Agreement.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Clawback.  Notwithstanding
      the foregoing:

            

    

     

    
      	
              (i)  

            	
              In
      the event that, following the Executive’s termination (other than for
      Cause), within six months following the date of termination, it is later
      discovered that Cause to terminate the Executive existed, the Executive
      shall forfeit any right to future payments or benefits under this
      Agreement (other than payment of the Accrued Obligations described in
      Section 5(d)(ii)) and, at the discretion of the Board, shall repay any
      payments made by the Employer to the Executive within 30 days following
      the determination by the Board that Cause existed, upon receipt of written
      notice of the same.

            

    

    

    
      	
              (ii)  

            	
              If
      the Employer is required to prepare an accounting restatement due to
      material non-compliance of the Employer, as a result of misconduct by the
      Executive, with any financial reporting requirement under any applicable
      laws, the Executive shall reimburse the Employer for all amounts received
      under any incentive compensation plans, programs or arrangements from
      Employer during the 12 month period preceding the date of such
      restatement.

            

    

    

    The
Executive agrees that the Employer shall be entitled to recovery of its
reasonable costs in enforcing any right described in this Section
5(i).

    

    
      	
               
      

            	
              (j)

            	
              Golden Parachute
      Provisions.  Notwithstanding any provision in this
      Agreement to the contrary, if any payments or benefits payable or being
      provided pursuant to this Agreement, together with any payments or
      benefits being provided under any other plan, agreement, or arrangement
      with the Employer, constitute “parachute payments” within the meaning of
      Section 280G or the Code, the payments or benefits will be reduced to
      $1.00 less than the amount that would be considered a “parachute payment”
      within the meaning of Section 280G of the
Code.

            

    

    

    6.           Change of
Control.  In the event of a change of control of the Employer,
the respective rights and obligations of the parties shall be determined
pursuant to the terms of the separate change of control agreement between the
Executive and the Employer.   For purposes of clarity, in the
event that the Executive becomes entitled to receive payments or benefits under
such change in control agreement, the Executive shall not be entitled to receive
the payments described in Section 5(d) or (f).

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
10.1

    

     

    7.           Release. As a condition to
receiving any payments, other than payment of the Accrued Obligations described
in Section 5(a)(ii) and accrued but unpaid bonus (if any), pursuant to this
Agreement, the Executive agrees to release the Employer and all of its
Affiliates, employees and directors from any and all claims that the Executive
may have against the Employer and all of its Affiliates, employees and directors
up to and including the date the Executive signs a Waiver and Release of Claims
(“Release”), and agrees to sign such Release in the form provided by the
Employer.  Notwithstanding anything to the contrary in this Agreement,
the Executive acknowledges that the Executive is not entitled to receive, and
will not receive, any payments pursuant to this Agreement unless and until the
Executive provides the Employer with said Release prior to the first date that
payment is to be made or is to commence.

    

    8.           Regulatory
Limitations.  Except as provided in Section 5(j), if any
payments otherwise payable to the Executive pursuant to this Agreement are
prohibited or limited by any statute, regulation, order, consent decree or
similar limitation in effect at the time the payments would otherwise be paid,
including, without limitation, the provisions of 12 U.S.C. §1828(k) and/or 12
C.F.R. Part 359 (a “Limiting Rule”): (a) the Employer shall pay the maximum
amount that may be paid after applying the Limiting Rule; and (b) shall use
commercially reasonable efforts to obtain the consent of the appropriate agency
or body to pay any amounts that cannot be paid due to the application of the
Limiting Rule.  The Executive agrees that the Employer shall not have
breached its obligations under this Agreement if it is not able to pay all or
some portion of any payment due to the Executive as a result of the application
of a Limiting Rule.

    

    9.           Covenants.

     

    
      	
              (a)  

            	
              Non-Competition.

            

    

     

    
      	
              (i)  

            	
              Executive
      agrees that, during the Term, including any extension thereof, and for a
      period of one year thereafter, the Executive shall not, without the
      express written consent of the Employer, directly or indirectly, either
      for the Executive or for or with any other person, partnership,
      corporation or company, own, manage, control, participate in, consult
      with, render services for, permit the Executive’s name to be used or in
      any other manner engage in any activity of the kind carried on by the
      Employer or any current or future Affiliate within 50 miles of the
      Employer’s principal place of business or of the office maintained by any
      Affiliate as of the date of termination.  For purposes of this
      Agreement, the term “participate” includes any direct or indirect interest
      in any enterprise, whether as an officer, director, employee, consultant,
      partner, investor, sole proprietor, agent, member, representative,
      independent contractor, executive, franchisor, franchisee, creditor, owner
      or otherwise; provided, however, that the foregoing investment limitations
      shall not include passive ownership of less than 1% of the stock of a
      publicly held corporation whose stock is traded on a national securities
      exchange or in the over-the-counter market, so long as Executive has no
      active participation in the business of such
  corporation.

            

    

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
10.1

    

     

    
      	
              (ii)  

            	
              In
      the event of a breach by the Executive of any covenant set forth in this
      Section 9(a), the term of such covenant will be extended by the period of
      the duration of such breach and such covenant will survive any termination
      of this Agreement but only for the limited period of such
      extension.

            

    

     

    
      	
              (b)  

            	
              Non-Solicitation.

            

    

     

    
      	
              (i)  

            	
              Executive
      agrees that, during the Term, including any extension thereof, and for a
      period of one year thereafter, the Executive shall not, without the
      express written consent of the
Employer:

            

    

     

    
      	
              (A)  

            	
              Call
      upon or solicit, either for the Executive or for any other person or firm
      that engages in competition with any business operation of the kind
      actively conducted by the Employer or any current or future Affiliate
      during the Term, any customer with whom the Employer or any current or
      future Affiliate directly conducts business during the Term, any referral
      source of the Employer or any current or future Affiliate during the Term
      (including, solely by way of example, intermediaries and corporations that
      purchase directly from the Employer or any current or future Affiliate);
      or

            

    

     

    
      	
              (B)  

            	
              Interfere
      with any relationship, contractual or otherwise, between the Employer or
      any current or future Affiliate, any customer with whom the Employer or
      any current or future Affiliate directly conducts business during the
      Term, or any referral source of the Employer of any current or future
      Affiliate during the Term; or

            

    

     

    
      	
               
      

            	
              (C)  
      

            	
              Induce
      any person who is at the date of termination or was during any of the 12
      months preceding the date of termination an employee, officer or agent of
      the Employer or any current or future Affiliate to terminate said
      relationship.

            

    

     

    
      	
              (ii)  

            	
              In
      the event of a breach by the Executive of any covenant set forth in this
      Section 9(b), the term of such covenant will be extended by the period of
      the duration of such breach and such covenant will survive any termination
      of this Agreement but only for the limited period of such
      extension.

            

    

     

    
      	
              (c)  

            	
              Confidential
      Information.  Executive will hold in a fiduciary
      capacity, for the benefit of the Employer and its current and future
      Affiliates, all trade secrets, secret or confidential information,
      knowledge, and data relating to the Employer and any current or future
      Affiliate, that shall have been obtained by the Executive in connection
      the Executive’s employment with the Employer and that is not public
      knowledge (other than by acts by the Executive or the Executive’s
      representatives in violation of this Agreement) (collectively,
      “Confidential Information”).  During the Term and after
      termination of the Executive’s employment with the Employer, the Executive
      will not, without the prior written consent of the Employer, communicate
      or divulge any Confidential Information to anyone other than the Employer
      or those designated by it, unless such communication is required pursuant
      to a compulsory proceeding in which the Executive’s failure to provide
      such Confidential Information would subject the Executive to criminal or
      civil sanctions and then only to the extent that the Executive provides
      prior notice to the Employer prior to
  disclosure.

            

    

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
10.1

    

     

    
      	
              (d)  

            	
              Intellectual
      Property. The Executive agrees to communicate to the Employer,
      promptly and fully, and to assign to the Employer all intellectual
      property developed or conceived solely by the Executive, or jointly with
      others, during the Term which is within the scope of either the Employer’s
      business or any current or future Affiliate’s business, or which utilized
      the Employer or Affiliate materials or information.  For
      purposes of this Agreement, “intellectual property” means inventions,
      discoveries, business or technical innovations, creative or professional
      work product, or works of authorship.  The Executive further
      agrees to execute all necessary papers and otherwise to assist the
      Employer, at the Employer’s sole expense, to obtain patents, copyrights or
      other legal protection as the Employer deems fit.  Any such
      intellectual property is to be the property of the Employer whether or not
      patented, copyrighted or published.

            

    

     

    
      	
              (e)  

            	
              Non-Disparagement.  The
      Executive agrees that during the Term and following the termination of the
      Executive’s employment, the Executive shall not make any public statements
      which disparage the Employer or any Affiliate or any of their respective
      directors, officers or employees, and the Employer shall make reasonable
      efforts to prevent its directors, officers or employees from making any
      public statements which disparage the Executive.  Nothing in the
      foregoing is intended to prohibit the Executive or the Company, its
      directors, officers or employees from making truthful statements required
      by order of a court, governmental body or regulatory body having
      appropriate jurisdiction.

            

    

     

    
      	
              (f)  

            	
              Return of
      Property.  The Executive agrees that, upon the
      termination of the Executive’s employment, the Executive shall promptly
      return to Employer any keys, credit cards, passes, confidential documents
      or material, or other property belonging to the Employer, and the
      Executive shall also return all writings, files, records, correspondence,
      notebooks, notes and other documents and things (including any copies
      thereof) containing confidential information or relating to the business
      or proposed business of the Employer or any Affiliate or containing any
      Confidential Information relating to the Employer of any Affiliate, except
      any personal diaries, calendars, rolodexes or personal notes or
      correspondence.

            

    

     

    
      	
              (g)  

            	
              Cooperation.  The
      Executive agrees that during the Term and following the termination of the
      Executive’s employment, the Executive shall be reasonably available to
      testify truthfully on behalf of the Employer or any Affiliate in any
      action, suit, or proceeding, whether civil, criminal, administrative, or
      investigative, and to assist the Employer, or any Affiliate, in all
      reasonable respects in any such action, suit, or proceeding, by providing
      information and meeting and consulting with the Board, or their
      representatives or counsel, or representatives or counsel to Employer, or
      any Affiliate, as requested; provided, however that the same does not
      materially interfere with Executive’s then-current professional
      activities, and that Executive shall be reasonably compensated for his
      time.

            

    

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
10.1

    

     

    The
restrictions described in this Section 9 may be enforced by the Employer and/or
any successor thereto, by an action to recover payments made under this
Agreement, an action for injunction, or an action for damages.  The
provisions of this Section 9 constitute an essential element of this Agreement,
without which the Employer would not have entered into this
Agreement.  Notwithstanding any other remedy available to the Employer
at law or at equity, the parties hereto agree that the Employer or any successor
thereto, will have the right, at any and all times, to seek injunctive relief in
order to enforce the terms and conditions of this Section 9.

     

    If the
scope of any restriction contained in this Section 9 is too broad to permit
enforcement of such restriction to its fullest extent, then such restriction
will be enforced to the maximum extent permitted by law, and Executive hereby
consents and agrees that such scope may be judicially modified accordingly in
any proceeding brought to enforce such restriction.

     

    10.           Representations of
Executive.  The Executive hereby represents and warrants, which
representations and warranties will survive the execution and delivery of this
Agreement, that: (a) Executive is not a party to or otherwise subject to any
other plan, agreement or arrangement that would prohibit Executive from
performing the duties described herein; and (b) Executive has taken all other
steps as may be required by law or by any applicable regulatory body, for
Executive to perform the duties described herein.

     

    11.           Assignment and Survivorship of
Benefits.

     

    
      	
               
      

            	
              (a)

            	
              Employer
      Assignment.  The Employer may not assign this Agreement
      except to an Affiliate.  Notwithstanding the foregoing, the
      Employer’s obligations hereunder shall be binding legal obligations and
      shall inure to the benefit of any successor to all or substantially all of
      the Employer’s business by purchase, merger, consolidation, affiliation or
      otherwise.  The Employer will require any such successor to
      expressly assume the obligations of Employer in the same manner and to the
      same extent that the Employer would be required to perform it if no such
      succession had taken place.  Failure of the Employer to obtain
      this assumption from any successor shall be a material breach of this
      Agreement and shall be considered Good Reason, pursuant to Section
      5(f).

            

    

     

    
      	
               
      

            	
              (b)

            	
              Executive
      Assignment.  No interest of the Executive or the
      Executive’s spouse or any other beneficiary under the Agreement, or any
      right to receive any payment or distribution hereunder, shall be subject
      in any manner to sale, transfer, assignment, pledge, attachment,
      garnishment, or other alienation or encumbrance of any kind, nor may such
      interest or right to receive a payment or distribution be taken,
      voluntarily or involuntarily, for the satisfaction of the obligations or
      debts of, or other claims against, the Executive or the Executive’s spouse
      or other beneficiary, including claims for alimony, support, separate
      maintenance, and claims in bankruptcy
  proceedings.

            

    

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
10.1

    

     

    12.           Notices.  Any notice
given to either party to this Agreement will be in writing, and will be deemed
to have been given when delivered personally or sent by certified mail, postage
prepaid, return receipt requested, duly addressed to the party concerned, at the
address indicated below or to such changed address as such party may
subsequently give notice of:

     

    
      	
            	
              If
      to the Employer: 

            	
              Rurban
      Financial Corp.

            

    

    Attention:
Chair, Board of Directors

    401
Clinton Street

    Defiance,
Ohio 43512

    

    
      	
            	
              If
      to the Executive: 

            	
              Mark
      A. Klein

            

    

    At the
last address on file with the Employer

    

    13.           Taxes.  Anything in
this Agreement to the contrary notwithstanding, all payments and benefits
required to be made or provided hereunder by the Employer to the Executive will
be subject to withholding of such amounts relating to taxes as the Employer may
reasonably determine that it should withhold pursuant to any applicable law or
regulations.  Executive shall be reimbursed for the reasonable costs
of tax preparation assistance for Executive’s personal tax return.

     

    14.           Arbitration; Enforcement of
Rights.  Any controversy or claim arising out of, or relating
to this Agreement, or the breach thereof, except with respect to Section 9, will
be settled by arbitration in Defiance County, Ohio in accordance with the Rules
of the American Arbitration Association, and judgment upon the award rendered by
the arbitrator or arbitrators may be entered in any court having jurisdiction
thereof.  Each party will bear its own costs of arbitration, except
that the parties will share the cost of the arbitrator
equally.  Notwithstanding the foregoing, if the Executive is the
prevailing party in the arbitration, the Employer will reimburse the Executive’s
reasonable costs of arbitration, including reimbursement of reasonable
attorneys’ fees.

     

    15.           No Mitigation.  The
Executive is not required to mitigate the amount of any payment described in
this Agreement by seeking other employment or otherwise, nor will the amount of
any payment or benefit provided for in this Agreement be reduced by any
compensation or benefits the Executive earns, or is entitled to receive, in any
capacity after Termination or by reason of the Executive’s receipt of or right
to receive any retirement or other benefits attributable to
employment.

     

    16.           Governing Law; Captions;
Severance.  This Agreement will be construed in accordance
with, and pursuant to, the laws of the State of Ohio.  The captions of
this Agreement will not be part of the provisions hereof, and will have no force
or effect.  The invalidity or unenforceability of any provision of
this Agreement will not affect the validity or enforceability of any other
provision of this Agreement.  Except as otherwise specifically
provided in this Section 16, the failure of either party to insist in any
instance on the strict performance of any provision of this Agreement or to
exercise any right hereunder will not constitute a waiver of such provision or
right in any other instance.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    17.           Entire Agreement;
Amendment.  This instrument contains the entire agreement of
the parties relating to the subject matter hereof, and the parties have made no
agreement, representations, or warranties relating to the subject matter of this
Agreement that are not set forth herein.  This Agreement may be
amended only by mutual written agreement of the parties.  This
Agreement may be executed in one or more counterparts.

     

    18.           Six-Month Distribution Delay for
Specified Employees.  Notwithstanding anything in this
Agreement to the contrary, in the event that the Executive is a “specified
employee” (as defined in Section 409A of the Code) of the Employer or any
of its Affiliates, as determined pursuant to the Employer’s policy for
identifying specified employees, on the date of the Executive’s termination of
employment and the Executive is entitled to a payment and/or a benefit under
this Agreement that is required to be delayed pursuant to
Section 409A(a)(2)(B)(i) of the Code, then such payment or benefit, as
applicable, shall not be paid or provided (or begin to be paid or provided)
until the first day of the seventh month following the date of the Executive’s
termination of employment (or, if earlier, the date of the Executive’s
death).  The first
payment that can be made to the Executive following such period shall include
the cumulative amount of any payments or benefits that could not be paid or
provided during such period due to the application of Section 409A(a)(2)(B)(i)
of the Code.

     

    19.           Compliance with Section 409A of the
Code.  This
Agreement is intended, and shall be construed and interpreted, to comply with
Section 409A of the Code and if necessary, any provision shall be held null and
void to the extent such provision (or part thereof) fails to comply with Section
409A of the Code or the Treasury Regulations thereunder.  For purposes
of Section 409A of the Code, each payment of compensation under the Agreement
shall be treated as a separate payment of compensation.  Any amounts
payable solely on account of an involuntary termination shall be excludible from
the requirements of Section 409A of the Code, either as separation pay or as
short-term deferrals to the maximum possible extent.  Further, any
reimbursements or in-kind benefits provided under the Agreement shall be made or
provided in accordance with the requirements of Section 409A of the Code,
including, where applicable, the requirement that (a) any reimbursement is for
expenses incurred during the period of time specified in the Agreement, (b) the
amount of expenses eligible for reimbursement, or in-kind benefits provided,
during a calendar year may not affect the expenses eligible for reimbursement,
or in-kind benefits to be provided, in any other calendar year, (c) the
reimbursement of an eligible expense will be made no later than the last day of
the calendar year following the year in which the expense is incurred, and (d)
the right to reimbursement or in-kind benefits is not subject to liquidation or
exchange for another benefit.

     

    20.           Nonexclusivity of
Rights.  Nothing in this Agreement will prevent or limit the
Executive’s continuing or future participation in any incentive, fringe benefit,
deferred compensation, or other plan or program provided by the Employer and for
which the Executive may qualify, nor will anything herein limit or otherwise
affect such rights as the Executive may have under any other agreements with the
Employer.  Amounts that are vested benefits or that the Executive is
otherwise entitled to receive under any plan or program of the Employer at or
after the date of termination of employment, will be payable in accordance with
such plan or program.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    
      EXHIBIT
10.1

    

     

    21.           Remedies
Cumulative.  No remedy conferred upon a party by this Agreement
is intended to be exclusive of any other remedy, and each and every remedy shall
be cumulative and shall be in addition to any other remedy given under this
Agreement or current or future law or in equity. The failure of either party to
insist in any instance on the strict performance of any provision of this
Agreement or to exercise any right hereunder will not constitute a waiver of
such provision or right in any other instance.

     

    22.           Opportunity to
Review.  The Executive represents that the Executive has been
provided with an opportunity to review the terms of this Agreement with legal
counsel.

     

    23.           No Presumption.  The
parties agree that this Agreement is the product of negotiations between parties
representing by legal counsel and that the presumption of interpreting
ambiguities against the drafter of this Agreement shall not apply.

     

    IN
WITNESS WHEREOF, the parties have executed this Agreement on the date first
above written.

     

    
      
        
          	 	RURBAN
      FINANCIAL CORP.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Richard
      L. Hardgrove	 
	 	Its: 	Chairman – Board of
      Directors      	 
	 	 	 	 
	 	 	 	 

        

      

    

    
      
        	 	MARK
      A. KLEIN	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Mark
      A. Klein 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

      

    

     

    
      
        
        

      

      
        -15-Unassociated Document

    
      EXHIBIT
10.2

    

    RURBAN
FINANCIAL CORP.

    SECOND
AMENDED AND RESTATED

    CHANGE
OF CONTROL AGREEMENT

    FOR
MARK A. KLEIN

    

        THIS
AGREEMENT between RFC and the Executive was originally effective as of the first
day of March, 2006 (the “Effective Date”) and was amended and restated effective
December 31, 2008 for the purpose of complying with the requirements of Section
409A of the Code.  Effective as of this 30th day of July, 2010, RFC
and the Executive hereby amend and restate this Agreement in its entirety for a
second time as set forth herein, and remove the Subsidiary as a party
hereto.

     

    WITNESSETH:

     

    WHEREAS,
RFC, the Subsidiary and the Executive previously entered into the Agreement on
March 1, 2006 for the purpose of providing the Executive with the benefits
described therein; and

    

    WHEREAS, RFC, the Subsidiary and the
Executive wish to amend the Agreement to account for the Executive’s new
position as Chief Executive Officer of RFC, to remove the Subsidiary as a party
hereto, and to make other changes to the Agreement as set forth
herein.

    

    NOW,
THEREFORE, in consideration of the services performed in the past and to be
performed in the future, as well as of the mutual promise and covenants herein
contained, the parties agree as follows:

     

    AGREEMENT:

     

    ARTICLE
1: DEFINITIONS

     

    For
purposes of this Agreement, the following capitalized words and phrases shall
have the following meanings unless another context clearly requires another
meaning:

     

        1.1           ACT.  The Securities
Exchange Act of 1934, as amended.

     

        1.2           AGREEMENT.  This
Rurban Financial Corp. Second Amended and Restated Change of Control Agreement
for Mark A. Klein, as it may be amended from time to time.

     

    1.3           ANNUAL DIRECT
SALARY.  The Executive’s annualized base salary based on the
highest base salary rate in effect for any pay period ending with or within the
thirty-six (36) consecutive calendar month period ending on or immediately
before the date on which it is being calculated, multiplied by twelve
(12).  Annual Direct Salary will be determined without including any
employee or fringe benefits, bonuses, incentives or other compensation (other
than base salary) paid or earned during the calculation period.

     

    1.4           CAUSE.  The term
“Cause” shall be defined, for purposes of this Agreement, as the occurrence of
one or more of the following:

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    
      
        EXHIBIT
10.2

         

      

    

    
      	
               
      

            	
              (a)

            	
              The
      willful failure by the Executive to substantially perform his duties
      hereunder (other than a failure attributable to an event that constitutes
      Good Reason or resulting from Executive’s incapacity because of death or
      disability), after notice from RFC, and a failure to cure such violation
      within twenty (20) days of said
notice;

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      willful engaging by the Executive in misconduct injurious to RFC or the
      Change Entity;

            

    

     

    
      	
               
      

            	
              (c)

            	
              Dishonesty,
      insubordination or gross negligence of the Executive in the performance of
      his duties;

            

    

     

    
      	
               
      

            	
              (d)

            	
              Executive’s
      breach of fiduciary duty involving personal
  profit;

            

    

     

    
      	
               
      

            	
              (e)

            	
              Executive’s
      violation of any law, rule or regulation governing issuers of publicly
      traded securities or banks or bank officers or any regulatory enforcement
      actions issued by a regulatory authority against the
      Executive;

            

    

     

    
      	
               
      

            	
              (f)

            	
              Conduct
      on the part of Executive which brings public discredit to RFC or the
      Change Entity and, if the effect may be cured, a failure to cure within
      twenty (20) days of the date notice of such conduct is delivered to the
      Executive;

            

    

     

    
      	
               
      

            	
              (g)

            	
              Executive’s
      conviction of, or plea of guilty or nolo contendere to, a felony
      (including conviction of or plea of guilty or nolo contendere to a
      misdemeanor that was originally charged as a felony but was reduced to a
      misdemeanor as a result of a plea bargain), crime of falsehood or a crime
      involving moral turpitude or the actual incarceration of Executive for a
      period of twenty (20) consecutive days or
more;

            

    

     

    
      	
               
      

            	
              (h)

            	
              An
      act by the Executive affecting any of RFC’s or the Change Entity’s
      employees, customers, business associates, contractors or visitors that an
      independent third party decides, after reasonable investigation,
      constitutes unlawful discrimination or harassment or violates RFC’s or the
      Change Entity’s policy concerning discrimination or
      harassment;

            

    

     

    
      	
               
      

            	
              (i)

            	
              Executive’s
      theft or abuse of RFC’s or the Change Entity’s property or the property of
      RFC’s or the Change Entity’s customers, employees, contractors, vendors or
      business associates;

            

    

     

    
      	
               
      

            	
              (j)

            	
              The
      direction or recommendation of a state or federal bank regulatory
      authority to remove Executive from his position(s) with Corporation or the
      Change Entity;

            

    

     

    
      	
               
      

            	
              (k)

            	
              Executive’s
      willful failure to follow the good faith lawful instructions of the board
      of directors of RFC or the Change Entity with regard to its operations,
      after written notice and, if the event may be cured, a failure to cure
      such violation within twenty (20) days of the date said notice is
      delivered to the Executive;

            

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    
      
        EXHIBIT
10.2

         

      

    

    
      	
               
      

            	
              (l)

            	
              Material
      breach of any contract or agreement that Executive entered into with RFC
      or the Change Entity, including breach of any of the obligations described
      in Article 4 and, if the breach may be cured, a failure to cure such
      breach within twenty (20) days of the date notice of such breach is
      delivered to the Executive;

            

    

     

    
      	
               
      

            	
              (m)

            	
              Unauthorized
      disclosure of the trade secrets or Confidential Information of RFC, the
      Change Entity or any of their affiliates, trade partners or
      vendors;

            

    

     

    
      	
               
      

            	
              (n)

            	
              Any
      intentional cooperation with any party attempting to effect a Change of
      Control unless (i) the board of
      directors of RFC has approved or ratified that action before the Change of
      Control or (ii) that cooperation
      is required by law.

            

    

     

    However,
Cause will not arise solely because the Executive is absent from active
employment during periods of vacation, consistent with RFC’s or the Change
Entity’s applicable vacation policy or other period of absence initiated by the
Executive and approved by RFC or the Change Entity.

     

    Also, if, after the Executive
Terminates employment, RFC or the Change Entity learn that the Executive has
actively concealed conduct or an event that, if discovered before employment
Terminated, would have constituted “Cause,” the provisions of Section 3.1
will be applied retroactively to the date the Executive Terminated employment
and RFC or the Change Entity may recover any and all amounts paid to the
Executive (or to his or her beneficiaries) under this Agreement.

     

    1.5           CHANGE
ENTITY.   The entity resulting from a Change of Control or
succeeding to RFC’s interests as a result of a Change of Control.

     

    1.6           CHANGE OF
CONTROL.  For purposes of this Agreement, the term “Change of
Control” shall mean the earliest of any of the following:

     

    
      	
               
      

            	
              (a)

            	
              Of
      a nature that would be required to be reported in response to Item 6(e) of
      Schedule 14A of Regulation 14A or any successor rule or regulation
      promulgated under the Act;

            

    

     

    
      	
               
      

            	
              (b)

            	
              A
      merger or consolidation of RFC with or purchase of all or substantially
      all of RFC’s assets by another “person” or group of “persons” (as such
      term is defined or used in Sections 3.13(d) and 14(d) of the Act) and, as
      a result of such merger, consolidation or sale of assets, less than a
      majority of the outstanding voting stock of the surviving, resulting or
      purchasing person is owned, immediately after the transaction, by the
      holders of the voting stock of RFC before the transaction, regardless of
      when or how their voting stock was
acquired;

            

    

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    
      
        EXHIBIT
10.2

         

      

    

    
      	
               
      

            	
              (c)

            	
              Any
      “person” (as such term is defined in Section 3(a)(9) of the Act and as
      used in Sections 13(d)(3) and 14(d)(2) of the Act) becomes through any
      means a “beneficial owner” (as defined in Rule 13d-3 under the Act),
      directly or indirectly, of securities of RFC representing fifty percent
      (50%) or more of the combined voting power of RFC’s then outstanding
      securities eligible to vote for the election of RFC’s board of
      directors;

            

    

     

    
      	
               
      

            	
              (d)

            	
              Any
      “person” as defined above, other than RFC, the Executive or RFC’s ESOP, is
      or becomes the “beneficial owner” (as defined in Rule 13d-3 and Rule
      13d-5, or any successor rule or regulation, promulgated under the Act),
      directly or indirectly, of securities of RFC which represent twenty-five
      percent (25%) or more of the combined voting power of the securities of
      RFC, then outstanding but disregarding any securities with respect to
      which that acquirer has filed SEC Schedule 13G indicating that the
      securities were not acquired and are not held for the purpose of or with
      the effect of changing or influencing, directly or indirectly, RFC’s
      management or policies, unless and until that entity or person files SEC
      Schedule 13D, at which point this exception will not apply to such
      securities, including those previously subject to an SEC Schedule 13G
      filing; and

            

    

     

    
      	
               
      

            	
              (e)

            	
              Individuals
      who, on the Effective Date, constituted the board of directors of RFC (the
      “Incumbent Directors”) cease for any reason to constitute at least a
      majority of the members of RFC’s board of directors; provided that any
      person becoming a director subsequent to the Effective Date whose election
      or nomination for election was approved by a vote of at least two-thirds
      of the then Incumbent Directors (either by a specific vote or by approval
      of the proxy statement of RFC in which such person is named as a nominee
      for director, without written objection to such nomination) shall be an
      Incumbent Director; and further provided, however, that no individual
      elected or nominated as a director of RFC initially as a result of an
      actual or threatened election contest with respect to directors or any
      other actual or threatened solicitation of proxies or consents by or on
      behalf of any person other than RFC’s board of directors shall ever be
      deemed to be an Incumbent Director.

            

    

     

    If more
than one event that constitutes a Change of Control occurs during a Protection
Period, the Executive shall be entitled to the amount that produces the largest
after-tax amount generated by any of the Changes of Control.

     

    Notwithstanding any other provision of
this Agreement, the Executive will not be entitled to any amount under this
Agreement if he acted in concert with any person or group (as defined above) to
effect a Change of Control, other than at the specific direction of the board of
directors of RFC and in his capacity as an employee of RFC.

     

        1.7           CODE.  The Internal
Revenue Code of 1986, as amended.

     

    1.8           CONFIDENTIAL
INFORMATION.  Any and all information (other than information
in the public domain) related to RFC’s or the Change Entity’s business,
including all processes, inventions, trade secrets, computer programs, technical
data, drawings or designs; information concerning pricing and pricing policies,
marketing techniques, plans and forecasts; new product information, information
concerning methods and manner of operations and information relating to the
identity and location of all past, present and prospective customers and
suppliers.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    EXHIBIT
10.2

     

    1.9           [intentionally
deleted]

     

    1.10           DATE OF THE CHANGE OF
CONTROL.  For purposes of this Agreement, the “Date of the
Change of Control” shall mean the date the first of any of the events described
in Section 1.5 occurs.

     

    1.11            EXCISE
TAXES.   The tax imposed on any excess parachute payments
by Section 4999 of the Code.

     

    1.12            EXECUTIVE.  Mark A.
Klein, an individual.

     

    1.13            GOOD REASON.  For
purposes of this Agreement, the Executive will have “Good Reason” to terminate
the Executive’s employment with RFC if any of the following events occur during
the Protection Period without the Executive’s consent (provided that RFC does
not cure the effect of such event within thirty (30) days following its receipt
of written notice of such event from the Executive):

     

    
      	
               
      

            	
              (a)

            	
              The
      assignment of duties and responsibilities inconsistent with Executive’s
      status as Chief Executive Officer of RFC, unless the Executive has
      simultaneously been promoted to a more senior position and has been
      assigned substantive duties normally associated with that new
      position;

            

    

     

    
      	
               
      

            	
              (b)

            	
              A
      reassignment which requires Executive to move his office more than fifty
      (50) miles from the location of RFC’s principal executive
      office;

            

    

     

    
      	
               
      

            	
              (c)

            	
              Any
      reduction in the Executive’s Annual Direct Salary as in effect on the date
      hereof or as the same may be increased from time to time, except such
      reductions that are the result of a national financial depression, or
      national or bank emergency when such reduction has been implemented for
      RFC’s or the Change Entity’s senior management, as a
  group;

            

    

     

    
      	
               
      

            	
              (d)

            	
              Any
      requirement that the Executive report to a corporate officer or employee
      instead of reporting directly to the board of directors of RFC or the
      Change Entity;

            

    

     

    
      
        	
                 
      

              	
                (e)

              	
                Failure
      at any time to obtain an assumption of the obligations under this
      Agreement by any successor, regardless of whether such entity becomes a
      successor as a result of a merger, consolidation, sale of assets or any
      other form of reorganization; and

              
	 	 	 
	 	(f)   	Any
      action or inaction that constitutes a material breach of this
      Agreement.

      

    

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

              EXHIBIT 10.2

     

    Notwithstanding the foregoing, Good
Reason shall cease to exist for an event on the ninetieth (90th) day following the later of its
occurrence or the Executive’s knowledge thereof, unless the Executive has given
RFC written notice of such event and the Executive’s intent to terminate for
Good Reason prior to such date.

    

    1.14             NON-COMPETITION
AREA.  The geographic area within fifty (50) miles of RFC’s
main office, as may be amended pursuant to Section 4.1(b).

     

    1.15           NON-COMPETITION
PERIOD.  The period beginning on the effective date of this
Agreement and extending throughout the two (2) year period following the
Executive’s Termination, as may be amended pursuant to Section
4.1(b).

     

    1.16           PROTECTION
PERIOD.  The period beginning on the first day the board of
directors of RFC learns of an event that, if completed, would result in a Change
of Control and ending on the last day of the twelfth (12th) complete calendar
month beginning after the Change of Control or, if longer, sixty (60) days
after: (a) the date the Executive learns of an event that constituted Good
Reason that arose or occurred during the period described above or (b) the
conclusion of an unsuccessful attempt to Terminate the Executive for Cause
during the period described above.

     

    1.17             RFC.  Rurban
Financial Corp., an Ohio corporation having a place of business at
401 Clinton Street, Defiance, Ohio.

     

    1.18             SUBSIDIARY.  The
State Bank and Trust Company, a subsidiary of RFC.

     

    1.19             TERM.  The term of
this Agreement, including any extensions or renewals, as set forth in Article
2.

     

    1.20             TERMINATES.  The
Executive’s “separation from service” within the meaning of Section 409A of the
Code from RFC and all persons with whom RFC would be considered a single
employer under Sections 414(b) and (c) of the Code.

     

    ARTICLE
2: TERM

    

    The Term
of this Agreement shall be from the Effective Date through the end of the
twenty-fourth (24th) consecutive calendar month beginning on or immediately
after the Effective Date.  Unless RFC notifies the Executive in
writing to the contrary at least ninety (90) days before the end of the twelfth
(12th) consecutive calendar month beginning after the Effective Date (and,
thereafter, anniversaries of the Effective Date) the Term of this Agreement will
automatically be extended for an additional twelve (12) calendar month
period.  No such notice of non-renewal may be delivered during any
Protection Period and this Agreement will not expire (except as specifically
provided below) and will remain in effect throughout any Protection Period
regardless of whether that Protection Period ends after the date the Agreement
otherwise would expire.  Notwithstanding the foregoing, this Agreement
will terminate on the earliest of the following to occur:

    

    
      	
               
      

            	
              (a)

            	
              The
      Executive’s employment Terminates before the beginning of the Protection
      Period;

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      Executive agrees, in writing, to terminate this Agreement, whether or not
      it is replaced with a similar agreement;
or

            

    

     

    
      	
               
      

            	
              (c)

            	
              All
      payments due under this Agreement have been fully
  paid.

            

    

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    EXHIBIT
10.2

     

    ARTICLE
3: PAYMENTS UPON TERMINATION

     

    3.1           TERMINATION FOR CAUSE/WITHOUT GOOD
REASON. If the
Executive is Terminated for Cause or voluntarily Terminates without Good Reason,
all rights of the Executive under this Agreement shall cease as of the effective
date of such Termination, except that the Executive shall be entitled to
receive: (a) any accrued salary through the date of such Termination, which
shall be paid within thirty (30) days following the date of Termination; and
(b) any payments and benefits to which he is then entitled under the
employee benefit plans of RFC or the Change Entity as of the date of such
Termination, payable in accordance with the terms of such plan(s).

     

    3.2           TERMINATION WITHOUT CAUSE/FOR GOOD
REASON. If, during a Protection Period, the Executive is involuntarily
Terminated other than for Cause or voluntarily Terminates for Good Reason, RFC
or the Change Entity shall:

     

    
      	
               
      

            	
              (a)

            	
              Within
      thirty (30) days following the Executive’s Termination, pay to the
      Executive a lump sum cash amount equal to two and ninety-nine hundredths
      (2.99) times the Executive’s Annual Direct Salary, subject to applicable
      withholdings and taxes;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Provide
      to the Executive (and the Executive’s family, if applicable, and if the
      Executive had elected family coverage on the day before the date of
      Termination) for a period of three (3) years continued health care, life
      insurance and disability insurance coverage at the same level (both
      separately with respect to each line of coverage and in the aggregate) and
      subject to the same terms that were in effect on the first day of the
      Protection Period.  These benefits will be provided under the
      insured arrangements maintained for active employees without cost to the
      Executive.  However, if RFC or the Change Entity is unable to
      provide these benefits to the Executive through an insured arrangement
      maintained for active employees and with the same tax consequences
      available to active employees (“Equivalent Coverage”), RFC or the Change
      Entity, whichever is appropriate, will distribute to the Executive
      additional cash equal to the Executive’s cost of procuring Equivalent
      Coverage (“Premium Burden”) (provided, however, that the Executives does
      in fact procure Equivalent Coverage), plus an additional cash amount
      sufficient to ensure that after all applicable federal, state and local
      income, employment, wage and excise taxes (including those imposed under
      Section 4999 of the Code with respect to this amount) (the “Gross-Up”),
      the Executive has remaining cash equal to the Premium
      Burden.  Collectively, the Gross-Up and the Premium Burden are
      referred to as the “Welfare Benefit Replacement Cost”.  The
      Executive agrees to make available to RFC or the Change Entity any
      information reasonably necessary to calculate the amount of the Gross-Up;
      and

            

    

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    EXHIBIT
10.2

     

    
      	
               
      

            	
              (c)

            	
              The
      Executive also will be entitled to receive any other payments or benefits
      to which he is then entitled under the terms of any other contract,
      arrangement, agreement, plan or program in which he is or has been a
      participant, payable pursuant to the terms of the applicable contract,
      arrangement, agreement, plan or
program.

            

    

     

    The provisions of this Section 3.2
shall be subject to the following: (i) any continuation of welfare benefits,
other than the health care plan during the applicable COBRA continuation period
described in Section 4980B of the Code, and (ii) any payment of the Welfare
Benefit Replacement Cost made pursuant to Section 3.2(b) shall first be treated
as a “limited payment” within the meaning of Treasury Regulation §1.409A-1(b)(9)(v)(D) and any
payments in excess of the limited payment shall be subject to the following
limitations: (A) no benefit shall be provided, and no payment shall be made for
the Welfare Benefit Replacement Cost incurred beyond the period described in
Section 3.2(b) ; (B) the amount of benefits provided or payments made during any
taxable year of the Executive may not affect the amount of benefits provided or
expenses eligible for payment to the Executive in any other taxable year; (C)
any payment shall  be made by no later than the end of the Executive’s
taxable year following the taxable year of the Executive in which the expense
being paid was incurred; and (D) the right to benefits or payment may not be
subject to liquidation or exchange for another benefit.

     

    3.3           PAYMENT OF MONEY DUE
DECEASED/DISABLED EXECUTIVE.  Subject to the last sentence of
this Section 3.3, if the Executive dies or develops a permanent disability while
employed, the Executive will not be entitled to any benefit under this
Agreement.  For purposes of this Agreement, a permanent disability
shall mean a physical or mental impairment that renders Executive incapable of
performing the essential functions of his job, on a full-time basis, even taking
into account any reasonable accommodation required by law, as determined by a
physician who is selected by the agreement of Executive and RFC, for a period
greater than one hundred eighty (180) days.  However, any amounts or
benefits that become due under Section 3.2 on account of an event occurring
before the Executive dies or becomes disabled will continue to be due and will
be unaffected by the Executive’s death or disability.

     

    3.4           GOLDEN PARACHUTE
PROVISIONS.

     

    
      	
               
      

            	
              (a)

            	
              Cut-Back.  Notwithstanding
      any provision in this Agreement to the contrary (other than Sections
      3.2(b), 5.7 and 5.11, which will apply under the circumstances described
      in those sections), if, as of the Date of the Change of Control, the
      Change Entity (after consulting with an independent accounting or
      compensation consulting subsidiary) determines that the compensation and
      benefits provided to the Executive pursuant to or under this Agreement
      (other than the Welfare Benefit Replacement Cost as defined in
      Section 3.2(b) or the amounts described in Sections 3.2(b), 5.7
      and/or 5.11), either alone or when combined with other compensation and
      benefits received by the Executive, would constitute “excess parachute
      payments” within the meaning of Section 280G of the Code or the
      regulations adopted thereunder, the compensation and benefits payable
      pursuant to or under this Agreement (other than the Welfare Benefit
      Replacement Cost and the amounts described in Sections 5.7 and 5.11)
      shall be reduced to the extent necessary so that no portion thereof shall
      be subject to Excise Taxes.  The Executive or any other party
      entitled to receive the compensation or benefits hereunder may request a
      determination as to whether the compensation or benefit would constitute a
      parachute payment and, if requested, such determination shall be made by
      an independent accounting or compensation consulting subsidiary (other
      than the entity described in the first sentence of this section) selected
      by the Change Entity and approved by the party requesting such
      determination, the fees of which will be borne solely by the Change
      Entity.  Any reduction pursuant to this Section 3.4 shall be
      made in accordance with Section 409A of the Code and the Treasury
      Regulations promulgated thereunder.

            

    

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    EXHIBIT
10.2

     

    
      	
               
      

            	
              (b)

            	
              Subsequent
      Determinations. If the Internal Revenue Service subsequently and
      finally determines that the amount of compensation and benefits (including
      after the reduction applied under Section 3.4(a)) will result in the
      imposition of Excise Taxes, the Executive will immediately remit an
      additional amount to the Change Entity equal to the difference between the
      amount paid (other than the Welfare Benefit Replacement Cost and those
      amounts described in Sections  5.7 and 5.11) and the minimum amount
      necessary to avoid the imposition of Excise
  Taxes.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Audit.  The
      Executive agrees to promptly notify the Change Entity of an assessment or
      inquiry from the Internal Revenue Service relating to payments under this
      Agreement that would, if made final, result in imposition of Excise Taxes
      and also agrees to cooperate with the Change Entity in contesting any
      assessment of Excise Taxes.  However, the Change Entity will
      have complete control over resolution of any claim by the Internal Revenue
      Service that might result in the imposition of Excise Taxes (although it
      will have no dispositive power over any other tax matter that may be
      subject to the same audit) and the Change Entity will bear all costs
      associated with that effort. Any such payment by the Change Entity shall
      be subject to the following limitations: (i) the costs eligible for
      payment shall include any costs arising during the lifetime of the
      Executive; (ii) the amount of costs paid during any taxable year of the
      Executive may not affect the amount of costs eligible for payment in any
      other taxable  of the Executive year; (iii) any costs being paid
      shall be paid no later than December 31 of the year following the year in
      which they were incurred; and (iv) the right to payment may not be subject
      to liquidation or exchange for another
benefit.

            

    

     

    3.5           SIX-MONTH DISTRIBUTION DELAY FOR
SPECIFIED EMPLOYEES.  Notwithstanding anything in this
Agreement to the contrary, in the event that the Executive is a “specified
employee” (as defined in Section 409A of the Code) of RFC, determined pursuant
to RFC’s policy for identifying specified employees, on the date of his
Termination, no payment on account of the Executive’s Termination shall be made
until the first (1st) day of the seventh (7th) month following the date of
Termination (or, if earlier, the date of his death).  The cumulative
amount paid on such day shall include any payments that could not be made during
such period.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    EXHIBIT
10.2

     

    ARTICLE
4: COVENANTS

     

    4.1           NON-COMPETITION.  In
consideration of the benefits provided in this Agreement:

     

    
      	
               
      

            	
              (a)

            	
              Executive
      hereby acknowledges and recognizes the highly competitive nature of the
      business of RFC.  Accordingly, Executive agrees that if a Change
      of Control occurs and provided that Executive receives the payments
      described in Sections 3.1 or 3.2 of this Agreement, then in consideration
      of this benefit during the Non-Competition Period, Executive shall
      not:

            

    

     

    
      	
               
      

            	
              (i)

            	
              Within
      the Non-Competition Area, provide financial or executive assistance to any
      person, firm, corporation or enterprise engaged in (1) the banking or
      financial services industry (including bank holding companies), or
      (2) any other activity in which RFC engaged on the Date of the Change
      of Control; or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Directly
      or indirectly contact, solicit or induce any person, corporation or other
      entity who or which is a customer or referral source of RFC during the
      term of Executive’s employment or on the date of Termination of
      Executive’s employment, to become a customer or referral source for any
      person or entity other than RFC or, if applicable, the Change Entity;
      or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Directly
      or indirectly solicit, induce or encourage any employee of RFC or, if
      applicable, the Change Entity or its subsidiaries, who is employed during
      the term of Executive’s employment or on the date of Termination of
      Executive’s employment, to leave the employ of Corporation or, if
      applicable, the Change Entity or its subsidiaries or to seek, obtain or
      accept employment with any person or entity other than Corporation or, if
      applicable, the Change Entity or its
  subsidiaries.

            

    

     

    
      	
               
      

            	
              (b)

            	
              It
      is expressly understood and agreed that, although Executive and RFC
      consider the restrictions contained in this Section 4.1 reasonable for the
      purpose of preserving for RFC and, if applicable, the Change Entity, its
      good will and other proprietary rights, if a final judicial determination
      is made by a court having jurisdiction that the Non-Competition Area, the
      Non-Competition Period or any other restriction contained in this Section
      4.1 is an unreasonable or otherwise unenforceable restriction against
      Executive, the provisions of this Section 4.1 shall not be rendered void,
      but shall be deemed amended to apply as to such maximum time and territory
      and to such other extent as such court may judicially determine or
      indicate to be reasonable.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      existence of any immaterial claim or cause of action of the Executive
      against RFC or, if applicable, the Change Entity, whether predicated on
      this Agreement or otherwise, shall not constitute a defense to the
      enforcement by RFC of this covenant.  The Executive agrees that
      any breach of the restrictions set forth in this Section 4.1 will result
      in irreparable injury to RFC or, if applicable, the Change Entity, for
      which it will have no adequate remedy at law and RFC or, if applicable,
      the Change Entity, shall be entitled to injunctive relief in order to
      enforce the provisions hereof and/or seek specific performance and
      damages.

            

    

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    EXHIBIT
10.2

     

    Prior to
the application of Section 3.4, RFC and/or the Change Entity will make
reasonable efforts to allocate value to the undertaking described in this
section and to allocate to that calculation the maximum amount due under Section
3.1.

     

    4.2           UNAUTHORIZED
DISCLOSURE.  During the term of Executive’s employment, or at
any later time, the Executive shall not, without the written consent of the
boards of directors of the Subsidiary (or, if applicable, the Change Entity) or
a person authorized by them knowingly use or disclose to any person, other than
an authorized employee of RFC (or, if applicable, the Change Entity), or a
person to whom disclosure is reasonably necessary or appropriate in connection
with the performance by the Executive of his duties as an executive of RFC (or,
if applicable, the Change Entity), any material Confidential Information
obtained by him while in the employ of Corporation (or, if applicable, the
Change Entity) with respect to any of the services, products, improvements,
formulas, designs or styles, processes, customers, customer lists, methods of
business or any business practices of RFC (or, if applicable, the Change Entity)
or affiliates, the disclosure of which could be or will be damaging to RFC (or,
if applicable, the Change Entity) or affiliates; provided, however, that
Confidential Information shall not include any information known generally to
the public (other than as a result of unauthorized disclosure by the Executive
or any person with the assistance, consent or direction of the Executive) or any
information of a type not otherwise considered confidential by persons engaged
in the same business or a business similar to that conducted by RFC or its
subsidiaries or affiliates or any information that must be disclosed as required
by law.

     

    ARTICLE
5: MISCELLANEOUS

     

        5.1           NO EMPLOYMENT
CONTRACT.  This Agreement is not an employment
contract.  Nothing contained herein shall guarantee or assure
Executive of continued employment by RFC or the Change Entity.

     

        5.2           NOTICE.  For the
purposes of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given
when delivered or mailed by United States certified mail, return receipt
requested, postage prepaid, addressed as follows:

     

    
      
        
          	 
      	
                  If
      to the Executive:

                	
                  Mark.
      A. Klein

                
	 
      	 
      	
                  At
      the last address on file with RFC

                
	 
      	 
      	 
      
	 
      	
                  If
      to RFC:

                	
                  Rurban
      Financial Corp.

                
	 
      	 
      	
                  Human
      Resource Director

                
	 
      	 
      	
                  401
      Clinton Street

                
	 
      	 
      	
                  Defiance,
      OH  43512

                
	 	 	 
	 
      	
                  If
      to the Change Entity:

                	
                  At
      the address provided

                

        

      

    

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    EXHIBIT
10.2

     

    or to
such other address as Executive, RFC or the Change Entity may have furnished to
the other in writing in accordance herewith, except that notices of change of
address shall be effective only upon receipt.

     

    5.3           SUCCESSORS; BINDING
AGREEMENT.  This Agreement shall inure to the benefit of and be
binding upon RFC, the Change Entity and Executive, their respective personal
representatives, heirs, assigns or successors; provided, however, that the
Executive may not commute, anticipate, encumber, dispose of or assign any
payment herein except as specifically set forth in Sections 5.12(d) and (e) of
this Agreement.

     

    5.4           SEVERABILITY.  If
any provision of this Agreement is declared unenforceable for any reason, the
remaining provisions of this Agreement shall be unaffected thereby and shall
remain in full force and effect.

     

    5.5           WAIVER;
AMENDMENT.  No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by Executive and an executive officer specifically
designated by the board of directors or RFC or the Change Entity.  No
waiver by either party, at any time, of any breach by the other party of, or
compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.  This
Agreement may be amended or canceled only by mutual agreement of the parties in
writing.

     

    5.6           LIMITATION OF DAMAGES FOR BREACH OF
AGREEMENT.  In the event of a breach of this Agreement, by RFC,
the Change Entity or the Executive, each hereby waives to the fullest extent
permitted by law the right to assert any claim against the others for punitive
or exemplary damages.  In no event shall any party be entitled to the
recovery of attorneys’ fees or costs.

     

    5.7           ARBITRATION.

     

    
      	
               
      

            	
              (a)

            	
              Resolution of
      Disputes.  RFC and Executive recognize that in the event
      a dispute should arise between them concerning the interpretation or
      implementation of this Agreement, lengthy and expensive litigation will
      not afford a practical resolution of the issues within a reasonable period
      of time.  Consequently, each party agrees that all disputes,
      disagreements and questions of interpretation concerning this Agreement,
      except for any claims brought by RFC for equitable relief or an injunction
      to enforce the restrictive covenants contained in Article 4, are to be
      submitted for resolution, in Defiance County, Ohio to the American
      Arbitration Association (the “Association”) in accordance with the
      Association’s National Rules for the Resolution of Employment Disputes or
      other applicable rules then in effect (“Rules”).  RFC or
      Executive may initiate an arbitration proceeding at any time by giving
      notice to the other in accordance with the Rules.  Corporation
      and Executive may, as a matter of right, mutually agree on the appointment
      of a particular arbitrator from the Association’s pool.  The
      arbitrator shall not be bound by the rules of evidence and procedure of
      the courts of the State of Ohio, but shall be bound by the substantive law
      applicable to this Agreement.  The decision of the arbitrator,
      absent fraud, duress, incompetence or gross and obvious error of fact,
      shall be final and binding upon the parties and shall be enforceable in
      courts of proper jurisdiction.  Following written notice of a
      request for arbitration, RFC and Executive shall be entitled to an
      injunction restraining all further proceedings in any pending or
      subsequently filed litigation concerning this Agreement, except as
      otherwise provided herein.

            

    

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    EXHIBIT
10.2

     

    
      	
               
      

            	
              (b)

            	
              Costs.  RFC
      or the Change Entity will bear all reasonable costs associated with any
      dispute arising under this Agreement, including reasonable accounting and
      legal fees incurred by the Executive in connection with the arbitration
      proceedings just described. Any such payment by RFC shall be subject to
      the following limitations: (i) the costs eligible for payment shall
      include any costs arising during the lifetime of the Executive; (ii) the
      amount of costs paid during any taxable year of the Executive may not
      affect the amount of costs eligible for payment in any other
      taxable  of the Executive year; (iii) any costs being paid shall
      be paid no later than December 31 of the year following the year in which
      they were incurred; and (iv) the right to payment may not be subject to
      liquidation or exchange for another
benefit.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Gross-Up.  If
      it is subsequently determined that payment of these costs are excess
      parachute payments, RFC or the Change Entity will fully gross-up the
      Executive for the income, wage, employment and excise taxes associated
      with that payment so that, after all applicable federal, state and local,
      income, wage, employment and excise taxes (plus any assessed interest and
      penalties), the Executive will have incurred no liability (either for
      these fees or the taxes just listed) with respect to the matters
      encompassed in this section.  Any payment pursuant this Section
      19(c) shall be made by no later than the end of the Executive’s taxable
      year following the year in which the Executive remitted payment of the
      taxes being grossed-up.

            

    

     

    
      	
               
      

            	
              If
      otherwise due, payments not being contested under the procedures described
      in this section will not be deferred during the pendency of procedures
      described in this section.

            

    

        

        5.8           LAW GOVERNING.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of Ohio, without regard to its conflicts of law principles.

     

        5.9           VALIDITY.  The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

     

        5.10           HEADINGS.  The
section headings of this Agreement are for convenience only and shall not
control or affect the meaning or construction or limit the scope or intent of
any of the provisions of this Agreement.

     

    5.11           LEGAL FEES.  RFC or
the Change Entity shall pay all reasonable legal, accounting and actuarial fees
and expenses incurred by the Executive in enforcing any right or benefit
provided by this Agreement, as provided in Section 5.7(b).  If it is
subsequently determined that payment of these fees are excess parachute
payments, the Change Entity will fully gross-up the Executive for the income,
wage, employment and excise taxes associated with that payment so that, after
all applicable federal, state and local, income, wage, employment and excise
taxes (plus any assessed interest and penalties), the Executive will have
incurred no liability (either for these fees or the taxes just listed) with
respect to the matters encompassed in this section, as provided in Section
5.7(c).

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    EXHIBIT
10.2

     

    5.12           OTHER PROVISIONS.

     

    
      	
               
      

            	
              (a)

            	
              Except
      as expressly provided in this Agreement, the Executive’s right to receive
      the payments described in this Agreement will not decrease the amount of,
      or otherwise adversely affect, any other benefits payable to the Executive
      under any other plan, agreement or
arrangement.

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      Executive is not required to mitigate the amount of any payment described
      in this Agreement by seeking other employment or otherwise, nor will the
      amount of any payment or benefit provided for in this Agreement be reduced
      by any compensation or benefits the Executive earns, or is entitled to
      receive, in any capacity after Termination or by reason of the Executive’s
      receipt of or right to receive any retirement or other benefits
      attributable to employment.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Except
      as expressly provided elsewhere in this Agreement, the amount of any
      payment made under this Agreement will be reduced by amounts RFC or the
      Change Entity, as applicable, is required to withhold in payment (or in
      anticipation of payment) of any income, wage or employment taxes imposed
      on the payment.

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      right of an Executive or any other person to receive any amount under this
      Agreement may not be assigned, transferred, pledged or encumbered except
      by will or by applicable laws of descent and distribution.  Any
      attempt to assign, transfer, pledge or encumber any amount that is or may
      be receivable under this Agreement will be null and void and of no legal
      effect.  However, this section will not preclude payment of any
      benefit to which a deceased Executive is
  entitled.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Subject
      to the preceding subsection (d), this Agreement inures to the benefit
      of and may be enforced by the Executive’s personal or legal
      representatives, executors, administrators, successors, heirs,
      distributees, devisees and
legatees.

            

    

     

    
      	
               
      

            	
              (f)

            	
              If
      the Executive’s employment relationship shifts between RFC and any related
      entity before a Change of Control or after a Change of Control, between
      the Change Entity and any entity related to the Change Entity and there
      has been no intervening Termination, this Agreement will remain in full
      force and effect and for all purposes of this Agreement, the Executive’s
      new employer will be substituted for the Executive’s prior
      employer.

            

    

     

    
      	
               
      

            	
              (g)

            	
              If
      the Executive’s employer is no longer related to RFC, whether or not as
      part of a transaction that constitutes a Change of Control, this Agreement
      will remain in full force and
effect.

            

    

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    EXHIBIT
10.2

     

    5.13           ENTIRE
AGREEMENT.  This Agreement supersedes any and all prior
agreements, either oral or in writing, between the parties (including such
agreement with any subsidiary of RFC) with respect to payments upon Termination
after a Change of Control, and this Agreement contains all the covenants and
agreements between the parties with respect to same.

     

    5.14           REGULATORY LIMITATIONS.
  Notwithstanding anything to the contrary contained herein,
the Executive acknowledges and agrees that any payments made to the Executive
pursuant to this Agreement, or otherwise, are subject to and conditioned on
compliance with the provisions of 12 U.S.C. §1828(k) and Part 359 of the FDIC’s
regulations (12 C.F.R. Part 359), which provisions contain certain prohibitions
and limitations on the making of “golden parachute” and certain indemnification
payments by FDIC-insured institutions and their holding companies.  In
the event any payments to the Executive pursuant to this Agreement are
prohibited or limited by the provisions of such statute and/or regulation, RFC
or the Change Entity, as applicable, will use its commercially reasonable
efforts to obtain the consent of the appropriate regulatory authorities to the
payment by RFC or the Change Entity, as applicable, to the Executive of the
maximum amount that is permitted (up to the amount payable under the terms of
this Agreement).

     

    5.15           SECTION
409A.   This Agreement is intended to comply with the
requirements of Section 409A of the Code and, to the maximum extent permitted by
law, shall be interpreted, construed and administered consistent with this
intent.  None of RFC, the Subsidiary or any other person shall have
liability in the event this Agreement fails to comply with the requirements of
Section 409A of the Code.  Nothing in this Agreement shall be
construed as the guarantee of any particular tax treatment to the
Executive.

     

    [signature
page attached]

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    EXHIBIT
10.2

     

    IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have
caused this Agreement to be duly executed in their respective names and, in the
case of RFC, by its authorized representative, the day and year above
mentioned.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	RURBAN FINANCIAL
      CORP.	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	
                                  /s/Richard
      L. Hardgrove

                                	 	 	
                                	 
	 	
                                   

                                	 	 	
                                   

                                	 
	 Its:	
                                  Chairman
      – Board of Directors

                                	 	 	
                                   

                                	 

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	EXECUTIVE	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	/s/
      Mark A. Klein	 	 	
                                        	 
	 	
                                           

                                        	 	 	
                                           

                                        	 
	Mark
      A. Klein	 	 	
                                           

                                        	 

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

    

     

    
      
        
        

      

      
        -16-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]