Document:

a50618956ex10_3.htm

Dyax Corp. has requested that portions of this document be accorded confidential treatment pursuant to Rule 24b-2 promulgated under the Securities Exchange Act of 1934, as amended. Confidential materials omitted and filed separately with the Securities and Exchange Commission.  Asterisks [*****] denote such omission.

CONFIDENTIAL DOCUMENT

Exhibit 10.3

 

COMMERCIAL OUTSOURCING SERVICES AGREEMENT

 

This Commercial Outsourcing Services Agreement (this “Agreement”) is entered into as of February 12, 2013 (the “Effective Date”) by Integrated Commercialization Solutions, Inc. (“ICS”) and Dyax Corp. (the “Company”).

 

Recitals

 

	
A.

	
The Company is in the business of manufacturing, selling, and distributing pharmaceutical and therapeutic products in the United States, which are identified in Schedule A (the “Products”);

 

	
B.

	
ICS is in the business of providing distribution, commercial support and other logistics services;

 

	
C.

	
The Company desires to engage ICS to provide certain warehousing, distribution, order management, data management and specified marketing services related to the Products upon the terms and subject to the conditions in this Agreement; and

 

	
D.

	
ICS desires to provide such services to the Company upon the terms and subject to the conditions in this Agreement.

 

Agreement

 

NOW, THEREFORE, the parties hereby agree as follows:

 

	
1.

	
Appointment as Exclusive Agent.  The Company hereby appoints ICS as the exclusive provider of Services (as defined in Section 2) for Products sold to the Company’s customers (“Customers”) in the United States, Guam, Puerto Rico and the U.S. Territories during the Term (as defined in Section 4.1), as stated in this Agreement.

 

2.        Services to Be Performed

 

	
  

	
2.1

	
Services.  The Company hereby engages ICS to provide the following services with respect to Products (“Services”):

 

	
  

	
2.1.1

	
Customer Services as described in Exhibit B.

 

	
  

	
2.1.2

	
Warehousing and Inventory Program Services as described in Exhibit C.

 

	
  

	
2.1.3

	
Distribution Services as described in Exhibit D.

 

	
  

	
2.1.4

	
Warehousing and Distribution of Sample Products as described in Exhibit E.

 

	
  

	
2.1.5

	
Marketing Materials Fulfillment Services as described in Exhibit F.

 

	
  

	
2.1.6

	
Contract Administration and Chargeback Processing as described in Exhibit G.

 

	
  

	
2.1.7

	
Accounts Receivable Management and Cash Applications as described in Exhibit H.

 

	
  

	
2.1.8

	
Financial Management Services as described in Exhibit I.

 

	
  

	
2.1.9

	
Information Technology Services as described in Exhibit J.

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

 

 

 

	
  

	
2.2

	
ADR Status.  Solely for the limited purpose of compliance with the pedigree requirements of the Prescription Drug Marketing Act and any similar state laws, ICS is considered an “Authorized Distributor of Record” for the Products and a third party logistics provider that does not take title to Product or have general responsibility to direct the Product’s sale or disposition.  This designation will not be construed in a manner that results in ICS being considered a distributor or wholesaler for any other purpose or under any other law or regulation.

 

	
  

	
2.3

	
Taxes.  ICS will not be responsible for collection or payment of any Taxes on behalf of the Company.  “Taxes” means any and all liabilities, losses, expenses, and costs of any kind whatsoever that are, or are in the nature of taxes, fees, assessments, or other governmental charges, including interest, penalties, fines and additions to tax imposed by any federal, state or local government or taxing authority in the United States on or with respect to: (a) the Agreement or any related agreements or any future amendment, supplement, waiver, or consent requested by the Company or any required by the Agreement with respect to the execution, delivery or performance of any thereof, or the issuance, acquisition or subsequent transfer thereof, (b) the return, acquisition, transfer of title, storage, removal, replacement, substitution, purchase, acceptance, possession, rejection, ownership, delivery, non-delivery, use, operation, sale, abandonment, redelivery or other disposition of any interest in Products or any part thereof, (c) the receipts or earnings arising from any interest in Products or any part thereof, (d) any payment made pursuant to this Agreement or to any Products, or (e) otherwise as a result of or by reason of the transactions contemplated by this Agreement.  Taxes do not include taxes imposed upon ICS that are based upon or measured by gross or net income and any franchise Taxes of ICS or any personal property taxes for Products or equipment owned by ICS.

 

3.         Compensation - Fees For Services

 

	
  

	
3.1

	
Compensation.  The Company will compensate ICS for Services in accordance with Schedule B.  ICS will provide [*****] invoices for fees for Services to the Company, and will bill the Company for any pass through charges monthly or as ICS is billed.  The Company must notify ICS of any disputed charges in writing within [*****] days of the date of the invoice covering such charges.  In the absence of any such notice of dispute, all invoices will be deemed to be correct and due in full within [*****] days of the invoice date.  If the Company disputes a portion of an invoice, the Company must pay the undisputed portion of the invoice within [*****] of the invoice date.  A late fee of [*****]% per month (or any portion thereof) will be charged as of the due date on all amounts not paid within [*****] days of the invoice date, except any amount disputed by the Company in good faith.  If any dispute is resolved in favor of ICS, the Company will pay the applicable late fee on such amount from the original due date.

 

	
  

	
3.2

	
Consumer Price Index Changes.  The fees set forth on Schedule B that are expressed in dollars (but not percentages) will be adjusted annually to reflect increases in the Consumer Price Index for All Urban Consumers, U.S. City Average, for all items, 1982-84=100, published by the United States Department of Labor on its website at http://www.bls.gov/cpi (the “CPI-U”).  The adjustment will be effective on the first day of the month following the publication by the United States Department of Labor after each one year anniversary of the Effective Date.  By way of example only, if the Effective Date is January 1, 2008, the adjustment would be effective on February 1, 2009 following publication of the CPI-U on or about January 15, 2009.  Each of the fees set forth on Schedule B will be multiplied by the percent increase in the CPI-U during each prior twelve-month period (for purposes of such calculation, the fees will be the fees set forth on a revised Schedule B provided to the Company on an annual basis).  An example of the calculation of the increase is set forth on Schedule C.  If publication of the CPI-U ceases, or if the CPI-U otherwise becomes unavailable or is altered in such a way as to be unusable, the parties will agree on the use of an appropriate substitute index published by the Bureau or any successor agency.

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

2

 

 

	
  

	
3.3

	
Cost Adjustment.  If ICS can reasonably demonstrate to the Company that the costs to ICS for providing Services have materially increased (or are reasonably likely to increase materially during the following [*****] month period of the Term) as a result of any changes in the any applicable law, treaty, rule or regulation or a final and binding determination of a court or other Governmental Authority (“Requirements of Law”), including the adoption of any new Requirements of Law impacting Services, then ICS may increase the applicable component of the fees for such Services in Schedule B (a “Cost Adjustment”).  ICS must notify the Company of any proposed Cost Adjustment at least [*****] days prior to its effective date.  All Cost Adjustments will be determined under generally accepted accounting principles (GAAP) and cost allocation methods applied on a consistent basis.  If the Company objects to any Cost Adjustment and the parties are unable in good faith to resolve such objection to the reasonable satisfaction of both parties, then either party may terminate this Agreement upon [*****] days’ prior written notice to the other party.

 

	
  

	
3.4

	
Program Ready Date. If the Company requests that ICS delay the launch of Services more than [*****] months beyond the agreed-upon date on the signature page to this Agreement (the “Program Launch Date”), the Company will pay ICS a program ready fee and any associated expenses as specified in Schedule B, including reasonable out-of-pocket costs and other expenses.  The Company will give ICS at least [*****] week’s written notice of changes to the Program Launch Date.  Program ready fees will continue until the Program Launch Date.  After the Program Launch Date, the Company will pay applicable monthly program fees.  For the [*****] during which Services are performed, ICS will prorate any difference between program ready fees and applicable monthly program fees

 

4.        Term and Termination

 

	
  

	
4.1

	
Initial Term.  This Agreement will be effective as of the Effective Date and will continue for [*****] years (the “Term”) unless sooner terminated in accordance with Section 4.  The Term may be extended upon written mutual agreement of the parties, such extension to be negotiated in good faith [*****] months prior to the expiration of the Term.

 

	
  

	
4.2

	
Termination for Breach.

 

	
  

	
4.2.1

	
If a party fails to pay any amount due to the other party under this Agreement, the other party may provide notice to the non-paying party specifying the amount due and notifying the non-paying party that the other party may terminate this Agreement if the non-paying party fails to pay the amount due within [*****] days of the date of the notice.  If the non-paying party fails to pay the amount due within [*****] days of the date of the notice, the other party may terminate this Agreement immediately and, in such event, will provide written notice of termination to the non-paying party.  If non-payment occurs more than [*****] times during any [*****] period, the other party may terminate this Agreement upon [*****] days’ written notice without any opportunity for cure.

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

3

 

 

	
  

	
4.2.2

	
If a party fails to perform any other material obligation under this Agreement, the other party may provide notice to the breaching party describing the breach in detail and notifying the breaching party that the other party may terminate this Agreement if the breaching party’s failure to perform is not cured within [*****] days of the date of the notice.  If the breaching party’s failure to perform is not cured within [*****] days of the date of the notice, then the other party may terminate this Agreement immediately and, in such event, will provide written notice thereof to the breaching party; except that (a) if the breaching party has begun to cure a non-monetary breach within such [*****] days, but the cure is not completed within such [*****] days, the breaching party will have a reasonable time to complete its cure if it diligently pursues the cure until completion, and (b) if such breach occurs more than [*****] times during any [*****] period, the non-breaching party may terminate this Agreement upon [*****] days’ written notice without any opportunity for cure.

 

	
  

	
4.3

	
Termination for Specific Events.  Either party may immediately terminate this Agreement upon written notice to the other party upon the other party’s: (a) filing an application for or consenting to appointment of a trustee, receiver or custodian of its assets; (b) having an order for relief entered in Bankruptcy Code proceedings; (c) making a general assignment for the benefit of creditors; (d) having a trustee, receiver, or custodian of its assets appointed unless proceedings and the person appointed are dismissed within [*****] days; (e) dissolving its existence under applicable state law; (f) insolvency within the meaning of Uniform Commercial Code Section 1-201 or failing generally to pay its debts as they become due within the meaning of Bankruptcy Code Section 303(h)(1), as amended; or (g) certification in writing of its inability to pay its debts as they become due (and either party may periodically require the other to certify its ability to pay its debts as they become due) (each, a “Bankruptcy Event”).  Each party must provide immediate notice to the other party upon a Bankruptcy Event.

 

	
  

	
4.4

	
Expenses. Within [*****] days of expiration or earlier termination of this Agreement for any reason, the Company will (a) pay ICS any amount owed in accordance with this Agreement; (b) return to ICS all hardware, software and other equipment, or pay to ICS the replacement cost of items not returned; and (c) pay non-recoverable expenses for telecommunication, facsimile, postage, shipping and other services incurred by ICS up to the effective date of termination.

 

	
  

	
4.5

	
Survival.  Accrued payment, indemnity and confidentiality obligations, and any provision if its context shows that the parties intended it to survive, will survive expiration or termination of this Agreement and, except as expressly provided, expiration or termination will not affect any obligations arising prior to the expiration or termination date.

 

5.         Recalls; Other FDA Issues

 

	
  

	
5.1

	
Recalls.  If the Company conducts a recall, market withdrawal or field correction of any Products (a “Recall”), the Company will conduct the Recall or designate a third party to do so and be responsible for all Recall expenses.  ICS will comply with the Company’s reasonable requests in the Recall.  If the Recall was not due primarily to ICS’s negligence, the Company must pay or reimburse ICS’s Recall expenses (including reasonable attorneys’ fees).  If the Recall was due primarily to ICS’s negligence, ICS must pay or reimburse the Company’s reasonable documented out-of-pocket Recall expenses (including reasonable attorneys’ fees).  Each party will use commercially reasonable efforts to minimize Recall expenses.  The Company will notify ICS of any proposed Recall as soon as possible and, in any event, will do so within [*****] hours of initiating a Recall.

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

4

 

 

	
  

	
5.2

	
Government Notices.  Each party will provide the other with a copy of any correspondence or notices it receives from the United States Food and Drug Administration (“FDA”), the United States Drug Enforcement Administration (“DEA”) or any counterpart state agency specifically relating to Services or relating to a material violation of any kind that is related to the Company or the Product, whether such violation resulted from an act or omission by the Company or by ICS, no later than [*****] business days following such receipt.  In addition, ICS will provide the Company with any notice relating to Products promptly upon its receipt.  Each party will also provide the other with concurrent copies of any responses to any such correspondence or notices (e.g., such as an FDA 483 notice, warning letters, untitled regulatory letters and establishment inspection reports).  Where reasonably possible, ICS will give prior notice to the Company of any scheduled FDA or DEA inspections of ICS’s facilities specifically relating to any Products, and, if reasonably possible, will afford the Company the opportunity to be present at such inspection and to review and contribute to any written response, to the extent permitted by law.

 

	
6.

	
Legal Compliance.  During the Term, each party will comply with all Requirements of Law.  ICS will comply with Requirements of Law related to storage, handling and distribution of Products.  The Company will comply with Requirements of Law related to importation, manufacture, distribution, labeling, storage, sale and handling of Products.

 

7.        Representations and Warranties

 

	
  

	
7.1

	
By the Company – In General.  The Company represents and warrants to ICS that (a) the Company has authority to enter into and perform this Agreement without restriction and this Agreement is a valid and binding obligation of the Company; (b) the execution, delivery and performance of this Agreement by the Company have been duly authorized by all necessary corporate actions of the Company; (c) the Company has and will maintain, in full force and effect, all licenses and permits required under applicable law for the Company to sell and distribute Products under this Agreement; and (d) as of the Program Launch Date, there is no proceeding or investigation pending or threatened that questions validity of this Agreement, marketing authorizations related to Products or actions under this Agreement.

 

	
  

	
7.2

	
By the Company – Products.    The Company represents and warrants to ICS that, on and after the Program Launch Date, (a) the Products, or any part thereof, have not been materially adversely affected in any way as a result of any legislative or regulatory change, revocation of the right to manufacture, distribute, handle, store, sell or market them or the Company’s breach of this Agreement; (b) no approvals, consents, orders or authorizations of or designation, registration, declaration or filing with any nation, government, state or other political subdivision, or any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government (“Governmental Authority”) are required for Company’s performance of its obligations under this Agreement, other than any approvals already obtained; (c) all Products have been approved by each applicable Governmental Authority for commercial sale and shipment within the United States; and (d) the Company either (i) owns or holds the duly approved Biologics License Application (as such term is used in the Public Health Service Act, Title 21, United States Code), or the duly approved New Drug Application or Abbreviated New Drug Application (as such terms are used in the Federal Food, Drug and Cosmetic Act, Title 21, United States Code), for each of the Products, or (ii) is otherwise considered the “manufacturer” of all Products within the meaning of any applicable federal, state or local law relating to pedigrees.

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

5

 

 

	
  

	
7.3

	
By ICS.  ICS represents and warrants to the Company that (a) ICS has authority to enter into and perform this Agreement without restriction and this Agreement is a valid and binding obligation of ICS; (b) the execution, delivery and performance of this Agreement by ICS has been duly authorized by all necessary corporate actions of ICS; (c) ICS has and will maintain in full force and effect, all licenses and permits required under applicable law for ICS to perform the Services under this Agreement; (d) there is no proceeding or investigation pending or threatened that questions validity of this Agreement, ICS’s licenses to warehouse and distribute pharmaceuticals, or any actions pursuant to this Agreement; and (e) no approval of or filing with any Governmental Authority (within the United States) is required to perform Services, other than any approvals already obtained.

 

	
  

	
7.4

	
Notice of Changes.  The Company and ICS must give prompt written notice to the other if it becomes aware during the Term of any action or development that would cause any warranty in this Section to become untrue.

 

	
8.

	
Trademarks/Data.  Neither party may use the other party’s name, trademarks, service marks, logos, other similar marks, other intellectual property, or other data or information in any manner without its prior written approval, except to perform its obligations under this Agreement.  Data and information that belong to the Company will be any data and information related to Products (including sales information), except “ICS Data.”  ICS Data is data and information that is not specific to Products or the Company and was developed by ICS relating to its processes, reports and Services provided to the Company under this Agreement.  ICS Data, including information and data relating to any of ICS’s customers and their profiles, belongs to ICS.

 

9.        Confidentiality

 

	
  

	
9.1

	
Agreement.  The confidentiality and non-disclosure provisions set forth on Schedule D are hereby incorporated by reference.  The parties will abide by its provisions during the Term and for [*****] years thereafter.  Information disclosed under this Agreement and the terms and conditions of this Agreement (including all attachments) are deemed “Confidential Information” under the Confidentiality Agreement.

 

	
  

	
9.2

	
Termination.  Upon expiration or termination of this Agreement for any reason each party will promptly: (a) return to the other party all documents and other material containing Confidential Information (as defined in the Confidentiality Agreement), including copies, other than those which a party is reasonably required to maintain for legal, tax or valid business purposes; or (b) certify to the other party that it has destroyed all such documentation and other materials.  The obligation to destroy or return does not apply to Confidential Information that is stored on back-up tapes and similar media that are not readily accessible to the party.

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

6

 

 

10.      Remedies

 

	
  

	
10.1

	
Generally.  Rights and remedies under this Agreement are cumulative and in addition to any other available rights or remedies under any agreement, at law or in equity.  The successful party in any legal action arising out of this Agreement, including enforcing its rights in a bankruptcy proceeding, may recover all costs, including reasonable attorneys’ fees.

 

	
  

	
10.2

	
Breach by the Company.  The Company acknowledges the difficulty (if not the impossibility) of ascertaining the amount of damages that would be suffered by ICS if (a) the Company terminates this Agreement without cause or (b) ICS terminates this Agreement following a breach by the Company.  In such event, as compensation and not as a penalty, the Company must pay ICS an early termination fee (the “ETF”) equal to [*****]  ([*****]%) of the aggregate amount of all fees and other sums that, in absence of such termination, would have been paid by the Company to ICS under this Agreement for the remaining months of the Term, with such fees and other sums to be based on [*****] amount paid or owed by the Company to ICS during the [*****] months preceding such termination (or such shorter time as the Agreement has been in effect).  The ETF is in addition to any other claims or amounts owed by the Company to ICS under this Agreement, including Fees for Services performed and costs incurred before the effective date of termination and indemnification obligations under this Agreement and the Continuing Guaranty and Indemnification Agreement described in Section 11.

 

	
  

	
10.3

	
Limitations.  Except for each party’s obligations with respect to confidentiality under Section 9, indemnification under Section 12 and intellectual property under section 13:

 

	
  

	
10.3.1

	
NO PARTY WILL BE LIABLE TO ANY OTHER PARTY FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL OR OTHER SIMILAR DAMAGES ARISING OUT OF OR IN CONNECTION WITH A BREACH OF THIS AGREEMENT, EXCEPT FOR ANY LIABILITY UNDER SECTION 10.2;

 

	
  

	
10.3.2

	
The Company understands and agrees that it holds title and risk of loss to the Products stored at the ICS facility located at 420 International Blvd., Suite 500, Brooks, KY 40109 or 5360 Capital Court #102, Reno, NV 89502 (an “ICS Facility”) under this Agreement, and that ICS will not be liable for damage or loss to Products while at an ICS Facility, other than for liability for third party claims subject to indemnification under Section 12.2, except that:

 

	
  

	
(a)

	
If damage or loss to Products while at the ICS Facility is caused by ICS’s breach of this Agreement, ICS will be liable for the damage or loss up to the amount of the ETF;

 

	
  

	
(b)

	
If damage or loss to Products while at the ICS Facility is caused by ICS’s gross negligence or willful act or omission, then no limitation will apply other than those in Section 10.3.1; and

 

	
  

	
(c)

	
Any damage or loss to Products will be based on the Company’s cost of manufacturing or acquiring Products, not their selling cost.

 

	
  

	
10.4

	
Responsibility.  The Company is responsible for ensuring that it has appropriate insurance in place to protect itself from potential damage or loss to its Products.  The insurance required under Section 14 is a minimum only, and ICS does not represent or warrant that these coverages are sufficient for the Company’s needs.

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

7

 

 

	 	11.	Continuing Guaranty.  The Company has executed and delivered to Distributor’s parent corporation, AmerisourceBergen Corporation, the Continuing Guaranty and Indemnification Agreement attached as Exhibit A (the “Continuing Guaranty”).
	 	 	 
	 	 	The representations, warranties and indemnification provisions contained in the Continuing Guaranty are in addition to those contained in this Agreement.  The Company acknowledges that Products distributed by ICS under this Agreement are covered by the Continuing Guaranty.

 

12.      Indemnification

 

	
  

	
12.1

	
By the Company.  The Company will defend, indemnify and hold harmless ICS and its subsidiaries, parents, affiliated companies, officers, directors, employees, independent contractors, representatives, shareholders, trustees and agents (“Related Parties”) from and against all claims, liabilities, losses, damages, costs and expenses, including reasonable attorneys’ fees (collectively, “Claims”) brought by third parties or the Company’s employees caused by or arising from any (a) act or omission of the Company or its Related Parties, (b) failure of the Company to perform its obligations or to comply with Requirements of Law, (c) breach of any warranty made by the Company in this Agreement (d) claims of patent, trademark, copyright or other infringement related to Products, (e) storage, handling, use, non-use, demonstration, consumption, ingestion, digestion, manufacture, production and assembly of Products and their transportation to ICS, or (f) Taxes imposed against ICS or its Related Parties; except the Company will have no obligations under this Section 12.1 for any Claims to the extent caused by any negligent act or omission of ICS or its Related Parties.

 

	
  

	
12.2

	
By ICS.  ICS will defend, indemnify and hold harmless the Company and its Related Parties from and against all Claims brought by third parties or ICS’s employees against the Company or its Related Parties caused by or arising from any (a) negligent act or omission of ICS or its Related Parties, (b) failure of ICS to perform its obligations or to comply with Requirements of Law, (c) breach of any warranty made by ICS in this Agreement, or (d) making by ICS of representations or warranties with respect to Products to the extent not authorized by the Company; except that ICS will have no obligations under this Section 12.2 for any Claims to the extent caused by any negligent act or omission of the Company or its Related Parties.

 

	
  

	
12.3

	
Procedures.  The obligations and liabilities of the parties with respect to Claims subject to indemnification under this Section 12 (“Indemnified Claims”) are subject to the following terms and conditions:

 

	
  

	
12.3.1

	
Any natural person or entity (a “Person”) claiming a right to indemnification hereunder (“Indemnified Person”) must give prompt written notice to the indemnifying party (“Indemnifying Person”) of any Indemnified Claim, stating its nature, basis and amount, to the extent known.  Each such notice must be accompanied by copies of all relevant documentation, including any summons, complaint or other pleading that may have been served or any written demand or other document.

 

	
  

	
12.3.2

	
With respect to any Indemnified Claim: (a) the Indemnifying Person will defend or settle the Indemnified Claim, subject to provisions of this subsection, (b) the Indemnified Person will, at the Indemnifying Person’s sole cost and expense, cooperate in the defense by providing access to witnesses and evidence available to it, (c) the Indemnified Person will have the right to participate in any defense at its own cost and expense to the extent that, in its judgment, the Indemnified Person may otherwise be prejudiced thereby, (d) the Indemnified Person will not settle, offer to settle or admit liability in any Indemnified Claim without the written consent of an officer of the Indemnifying Person, and (e) the Indemnifying Person will not settle, offer to settle or admit liability as to any Indemnified Claim in which it controls the defense if such settlement, offer or admission contains any admission of fault or guilt on the part of the Indemnified Person, or would impose any liability or other restriction or encumbrance on the Indemnified Person, without the written consent of an officer of the Indemnified Person.

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

8

 

 

	
  

	
12.3.3

	
Each party will cooperate with, and comply with all reasonable requests of, each other party and act in a reasonable and good faith manner to minimize the scope of any Indemnified Claim.

 

	
13.

	
Intellectual Property.  All concepts, inventions, ideas, patent rights, data, trademarks, and copyrights that are related to Products will remain exclusive property of the Company, except those not specific to Products and that relate to the general processes, reports and services developed by ICS and provided to the Company.  Any concepts, inventions, ideas, patent rights, data, trademarks, and copyrights that are developed by ICS that are not specific to Products or that relate to the processes, reports and services developed by ICS will remain the exclusive property of ICS.

 

14.      Insurance

 

	
  

	
14.1

	
By the Company.  The Company will maintain and perform its obligations with respect to insurance set forth in the Continuing Guaranty.

 

	
  

	
14.2

	
By ICS.  During the Term, ICS must maintain the following insurance:

 

	
  

	
14.2.1

	
Workers’ Compensation.  Workers’ compensation statutory coverage as required by law in states where Services are performed;

 

	
  

	
14.2.2

	
Employer’s Liability.  Employer’s liability insurance with a limit of $[*****] for bodily injury by accident per person, $[*****] for bodily injury by accident, all persons and $[*****] bodily injury by disease policy limit;

 

	
  

	
14.2.3

	
General Liability.  Commercial general liability insurance, including personal injury blanket contractual liability and broad form property damage, with a $[*****] combined single limit;

 

	
  

	
14.2.4

	
Umbrella Liability.  Umbrella liability insurance in the amount of $[*****] per occurrence and aggregate;

 

	
  

	
14.2.5

	
Property Insurance.  Property insurance covering the business property of ICS and others while at any unnamed location in the amount of $[*****]; and

 

ICS is not obligated to insure Products against any loss or damage to Products arising from the shipment or storage of Products at the ICS Facility.

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

9

 

 

	
  

	
14.3

	
Self-Insurance.  The insurance required by Section 14 may be made up through a combination of self-insured retention and traditional insurance.

 

	
  

	
14.4

	
Source of Recovery.  Except to the extent that ICS is liable for Product damage or loss under Section 10.3(c), the Company must look for recovery in respect of any such loss or damage solely to the casualty and theft or loss insurance provided by the Company in accordance with Section 14.1 of this Agreement.

 

	
  

	
14.5

	
Notice and Proof of Insurance.  Throughout the Term, ICS will (a) provide prompt written notice to the Company in the event ICS becomes aware or is notified that the insurance described in Section 14.2 will be materially adversely modified or cancelled and (b) provide the Company with proof of such insurance.

 

	
15.

	
Force Majeure.  If the performance of any part of this Agreement by any party will be affected for any length of time by fire or other casualty, government restrictions, war, terrorism, riots, strikes or labor disputes, lock out, transportation delays, electronic disruptions, internet, telecommunication or electrical system failures or interruptions, and acts of God, or any other cause which is beyond control of a party (financial inability excepted), such party will not be responsible for delay or failure of performance of this Agreement for such length of time, except that (a) the affected party will cooperate with and comply with all reasonable requests of the non-affected party to facilitate Services to the extent possible, and (b) the obligation of one party to pay amounts due to any other party will not be subject to the provisions of this Section.

 

16.      Miscellaneous Provisions

 

	
  

	
16.1

	
Notices.  Any notice, request or other document to be given hereunder to a party is effective when received and must be given in writing and delivered in person or sent by overnight courier or registered or certified mail, return receipt requested, as follows:

 

 

	 	If to ICS:	 	Integrated Commercialization Solutions, Inc. 

3101 Gaylord Parkway

Frisco, TX 75034

	 	 	 	 
	 	 	 	 
	 	 	 	With a copy to:
	 	 	 	 
	 	 	 	 
	 	 	 	
AmerisourceBergen Specialty Group, Inc.

Attn: Group General Counsel, 1N-E186

3101 Gaylord Parkway

Frisco, TX 75034

   

	 	If to the Comapany:	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	Attn:	 	 

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

10

 

 

	
  

	
16.2

	
Other Rights.  No waiver of any breach of any one or more of the conditions or covenants of this Agreement by a party will be deemed to imply or constitute a waiver of a breach of the same condition or covenant in the future, or a waiver of a breach of any other condition or covenant of this Agreement.

 

	
  

	
16.3

	
Severability.    If any provision or the scope of any provision of this Agreement is found to be unenforceable or too broad by judicial decree, the parties agree that the provisions will be curtailed only to the extent necessary to conform to law to permit enforcement of this Agreement to its full extent.

 

	
  

	
16.4

	
Entire Agreement; No Reliance.  Each of the parties agrees and acknowledges that this Agreement, including the attachments referred to in this Agreement, (a) constitutes the entire agreement and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, among the parties with respect to the subject matter of this Agreement, including, without limitation, the Distribution Services Agreement (3PL Services) entered into by and between the parties on November 19, 2009, and (b) is not intended to confer any rights or remedies, or impose any obligations, on any person other than the parties.  Each of the parties expressly agrees and acknowledges that, other than those statements expressly set forth in this Agreement, it is not relying on any statement, whether oral or written, of any person or entity with respect to its entry into this Agreement or to the consummation of the transactions contemplated by this Agreement, and each of the parties further waives any claim against the other party that the other party has failed to disclose any fact, occurrence or other matter that relates in any way to its entry into this Agreement.

 

	
  

	
16.5

	
Amendments and Modifications.  This Agreement may be modified only by a written agreement signed by both parties.

 

	
  

	
16.6

	
Assignment.  This Agreement may not be assigned by either party without the prior written consent of the other, which will not be unreasonably withheld, and any attempted assignment will be without effect.  This Agreement will be binding on and will benefit any and all successors, trustees, permitted assigns and other successors in interest of the parties.

 

	
  

	
16.7

	
Applicable Law.  This Agreement will be construed and enforced in accordance with the laws of the State of Texas (excluding the choice of law provisions thereof).

 

	
  

	
16.8

	
Publicity.  Neither party has the right to issue a press release, statement or publication regarding the terms and conditions of or the existence of this Agreement without the prior written consent of the other party.

 

	
  

	
16.9

	
Joint Preparation.  Each party to this Agreement (a) has participated in the preparation of this Agreement, (b) has read and understands this Agreement, and (c) has been represented by counsel of its own choice in the negotiation and preparation of this Agreement.  Each party represents that this Agreement is executed voluntarily and should not be construed against a party solely because it drafted all or a portion of this Agreement.

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

11

 

 

	
16.10

	
Counterparts.  This Agreement may be executed in multiple counterparts, each of which is considered an original and all of which together constitutes one and the same instrument.  Facsimile execution and delivery of this Agreement are legal, valid and binding execution and delivery for all purposes.

 

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

12

 

 

IN WITNESS WHEREOF, the parties execute this Agreement as of the Effective Date.

	
DYAX CORP.

 

 

	 	
INTEGRATED COMMERCIALIZATION SOLUTIONS, INC.

	
By:

	
/s/ Gustav Christensen

	 	
By:

	
/s/Stephen W. McKinnon

	
Name:

	
Gustav Christensen

	 	
Name:

	
Stephen W. McKinnon

	
Title:

	
President and CEO

	 	
Title:

	
SVP, GM

	  	
2/12/2013

	 	  

 

Program Launch Date:  ___________, 201_                                                                                                

[If blank, the Program Launch Date is 60 days after the Effective Date]

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

13

 

 

LIST OF SCHEDULES AND EXHIBITS

 

[This list is to be revised in accordance with the actual Schedules and Exhibits used for each client agreement.]

 

	 	Schedules:	 
	 	 	 
	 	Schedule A	List of Existing Company Products
	 	Schedule B	ICS Summary of Fees
	 	Schedule C	Example of Price Adjustment Calculation
	 	
Schedule D

	
Confidentiality Provisions

	 	 	 
	 	Exhibits:	 
	 	 	 
	 	
Exhibit A

	
Continuing Guaranty and Indemnification Agreement

	 	
Exhibit B

	
Customer Services

	 	
Exhibit C

	
Warehousing and Inventory Program Services

	 	
Exhibit D

	
Distribution Services

	 	
Exhibit E

	
Warehousing and Distribution of Sample Products

	 	
Exhibit F

	
Marketing Materials Fulfillment Services

	 	
Exhibit G

	
Contract Administration and Chargeback Processing

	 	
Exhibit H

	
Accounts Receivable Management and Cash Applications

	 	
Exhibit I

	
Financial Management Services

	 	
Exhibit J

	
IT Services

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

14

 

 

SCHEDULE A 

LIST OF PRODUCTS

 

 

Product Trade Name:  Kalbitor

Generic Name:  ecallantide

NDC Number:  47783-101-01

Kalbitor is a recombinant protein with high affinity and high specificity for human plasma kallikrein and is used in the treatment of Hereditary Angioedema (HAE).

Kalbitor is temperature sensitive and must be stored and shipped at 2-8 degrees Celsius (36-42 degrees Fahrenheit).

Kalbitor is packaged in a single carton containing 1 mL vials and is administered through three subcutaneous injections.

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

15

 

 

SCHEDULE B

ICS SUMMARY OF FEES

[*****]

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

16

 

 

SCHEDULE C

EXAMPLE OF PRICE ADJUSTMENT CALCULATION

[*****]

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

17

 

 

SCHEDULE D

CONFIDENTIALITY PROVISIONS

 

In connection with the Agreement, either party (“Disclosing Party”) may disclose to the other party (“Recipient”) certain of its confidential or proprietary information.

 

	
1.  

	
Definition of Confidential Information.  “Confidential Information” means any confidential or proprietary information that is disclosed or made available by Disclosing Party to Recipient, whether in writing or other tangible form, orally or otherwise.  Confidential Information includes (a) information about processes, systems, strategic plans, business plans, operating data, financial information and other information and (b) any analysis, compilation, study or other material prepared by Recipient (regardless of the form in which it is maintained) that contains or otherwise reflects any information disclosed or made available by Disclosing Party to Recipient.

 

	
2.

	
Exclusions from Confidential Information.  Confidential Information does not include information that:

 

	
  

	
2.1

	
At the time of disclosure to Recipient, is generally available to the public;

 

	
  

	
2.2

	
After disclosure to Recipient, becomes generally available to the public other than as a result of a breach of these provisions by Recipient (including any of its affiliates);

 

	
  

	
2.3

	
Recipient can establish was already in its possession at the time the information was received from Disclosing Party if its source was not known by Recipient to be bound to an obligation of confidentiality with respect to such information;

 

	
  

	
2.4

	
Recipient receives from a third party if its source was not known by Recipient to be bound to an obligation of confidentiality with respect to such information; or

 

	
  

	
2.5

	
Recipient can establish was developed independently by Recipient without use, directly or indirectly, of any Confidential Information.

 

	
2.  

	
Limitations on Disclosure and Use.  Confidential Information must be kept strictly confidential and may not be disclosed or used by Recipient except as specifically permitted by these provisions or as specifically authorized in advance in writing by Disclosing Party.  Recipient may not take any action that causes Confidential Information to lose its confidential and proprietary nature or fail to take any reasonable action necessary to prevent any Confidential Information from losing its confidential and proprietary nature.  Recipient will limit access to Confidential Information to its employees, officers, directors or other authorized representatives (or those of its affiliates) who (a) need to know such Confidential Information in connection with the Agreement and (b) are obligated to Recipient to maintain Confidential Information under terms and conditions at least as stringent as these provisions.  Recipient will inform all such persons of the confidential and proprietary nature of Confidential Information and will take all reasonable steps to ensure they do not breach their confidentiality obligations, including taking any steps Recipient would take to protect its own similarly confidential information.  Recipient will be responsible for any breach of confidentiality obligations by such persons.

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

18

 

 

	
3.  

	
Equitable Relief.  Each party acknowledges that, when it is Recipient, money damages would not be a sufficient remedy for Disclosing Party in the event of any breach of these provisions and that Disclosing Party is entitled to seek specific performance and injunctive or other equitable relief as a remedy for any such breach.  Recipient further agrees to waive any requirement for the posting of any bond in connection with any such remedy.  Such remedy will be in addition to any other available remedies at law or in equity.

 

	
4.  

	
Disclosures Required by Law.  If Recipient is required by law to disclose any Confidential Information, Recipient will give Disclosing Party prompt notice and will use all reasonable means to obtain confidential treatment for any Confidential Information that it is required disclose before making any such disclosure.  If Recipient cannot assure confidential treatment and it has exhausted all reasonable efforts to do so, Recipient may disclose Confidential Information if it first receives a written opinion of its external legal counsel that it is required by law to disclose the information it discloses.  Notwithstanding the foregoing, Disclosing Party may request Recipient to take additional steps to seek confidential treatment before Recipient discloses Confidential Information even though Recipient has otherwise exhausted all reasonable efforts to do so.  In such event, Recipient will undertake such additional steps at Disclosing Party’s expense.

 

	
5.  

	
Term of Confidentiality Provisions.  Confidential Information may be disclosed under these provisions during the Term of the Agreement.  Recipient’s obligation to protect Confidential Information expires [*****] years from the expiration or termination of the Agreement.

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

19

 

 

EXHIBIT A

CONTINUING GUARANTY

(attached)

[Attached either executed or blank form on next page]

 

 

 

 

20

 

 

CONTINUING GUARANTY AND INDEMNIFICATION AGREEMENT

The undersigned guarantees to AmerisourceBergen Corporation and each of its subsidiary companies and their successors that (i) any food, drugs, devices, cosmetics, or other merchandise (“Products”) now or hereafter shipped or delivered by or on behalf of the undersigned and its affiliates (“Guarantors”) to or on the order of AmerisourceBergen Corporation or any of its subsidiaries will not be, at the time of such shipment or delivery, adulterated, misbranded, or otherwise prohibited under applicable federal, state and local laws, including applicable provisions of the Federal Food, Drug and Cosmetic Act, 21 U.S.C. §301 et seq. (“FDCA”), and Sections 351 and 361 of the Federal Public Health Service Act, 42 U.S.C. §§ 262 and 264, and their implementing regulations (“Applicable Laws”), each as amended and in effect at the time of shipment or delivery of such Products; (ii) Products are not, at the time of such shipment or delivery, merchandise that may not otherwise be introduced or delivered for introduction into interstate commerce under Applicable Laws, including FDCA section 301 (21 U.S.C. §331); and (iii) Products are merchandise that may be legally transported or sold under the provisions of any other applicable federal, state or local law.  Guarantors guarantee further that, in the case of food shipments, only those chemicals or sprays approved by federal, state or local authorities have been used, and any residue in excess of the amount allowed by any such authorities has been removed from Products.

 

Guarantors shall promptly defend, indemnify and hold AmerisourceBergen Corporation and each of its subsidiaries harmless against any and all claims, losses, damages, costs, liabilities and expenses, including attorneys’ fees and expenses, arising as a result of (a) any actual or asserted violation of Applicable Laws or by virtue of which Products made, sold, supplied, or delivered by or on behalf of Guarantors may be alleged or determined to be adulterated, misbranded or otherwise not in full compliance with or in contravention of Applicable Laws, (b) the possession, distribution, sale and/or use of, or by reason of the seizure of, any Products of Guarantors, including any prosecution or action whatsoever by any governmental body or agency or by any private party, including claims of bodily injury, death or property damage, (c) any actual or asserted claim that Guarantors’ Products infringe any proprietary or intellectual property rights of any person, including infringement of any trademarks or service names, trade names, trade secrets, inventions, patents or violation of any copyright laws or any other applicable federal, state or local laws, and (d) any actual or asserted claim of negligence, willful misconduct or breach of contract except to the extent arising from the negligence, willful misconduct or breach of contract of AmerisourceBergen or its affiliates.

 

Guarantors shall maintain primary, noncontributory product liability insurance of not less than $5,000,000 per occurrence for claims relating to Products.  This insurance must include AmerisourceBergen Corporation, its subsidiaries and their successors as additional insureds for claims arising out of Products.  Guarantor shall provide for at least thirty days’ advance written notice to AmerisourceBergen Corporation of cancellation or material reduction of the required insurance.  If the required insurance is underwritten on a “claims made” basis, the insurance must include a provision for an extended reporting period (“ERP”) of not less than twenty-four months; Guarantors further agree to purchase the ERP if continuous claims made insurance, with a retroactive date not later than the date of this Agreement, is not continually maintained or is otherwise unavailable.  This insurance shall be with an insurer and in a form acceptable to AmerisourceBergen Corporation, and any deductible or retained risk must be commercially and financially reasonable and acceptable to AmerisourceBergen Corporation.  Guarantors warrant that they have sufficient assets to cover any self-insurance or retained risk.  Upon request, Guarantors will promptly provide satisfactory evidence of the required insurance.

 

Provisions in this Continuing Guaranty and Indemnification Agreement are in addition to, and not in lieu of, any terms set forth in any purchase orders accepted by Guarantors or any separate agreement entered into between AmerisourceBergen Corporation or any of its subsidiaries and Guarantors.  If the language in this Agreement conflicts with the language in any other document, the language in this Agreement controls.

 

 

	 	[Insert Company Name]
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	Name:	 	 
	 	 	 	 
	 	Title:	 	 
	 	 	 	 
	 	Date:	 	 

 

 

21

 

 

  EXHIBIT B

CUSTOMER SERVICES

 

[*****]

 

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

22

 

 

EXHIBIT C

WAREHOUSING AND INVENTORY MANAGEMENT SERVICES

[*****]

 

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

23

 

 

EXHIBIT D

DISTRIBUTION SERVICES

 

[*****]

 

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

24

 

 

EXHIBIT E

WAREHOUSING AND DISTRIBUTION OF SAMPLE PRODUCTS

 

[*****]

 

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

25

 

 

EXHIBIT F

  MARKETING MATERIALS FULFILLMENT SERVICES

 

[*****]

 

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

26

 

 

  EXHIBIT G

  CONTRACT ADMINISTRATION AND CHARGEBACKS PROCESSING

  [*****]

 

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

27

 

 

  EXHIBIT H

  ACCOUNTS RECEIVABLE MANAGEMENT AND CASH APPLICATIONS

[*****]

 

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

28

 

 

EXHIBIT I

  FINANCIAL MANAGEMENT SERVICES

[*****]

 

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

29

 

 

EXHIBIT J

IT SERVICES

 

[*****]

 

 

Confidential materials omitted and filed separately with the Securities and Exchange Commission. 

Asterisks denote such omission.

 

30Exhibit 10.1
    

    
      

    

    
      CHANGE IN CONTROL
    

    
      SUPPLEMENTAL EXECUTIVE COMPENSATION AGREEMENT
    

    
                This Agreement, effective as of the ____ day of May, 2013, by
      and between LNB Bancorp, Inc., an Ohio corporation (the
      "Company"), and ___________ ("Executive"), is to EVIDENCE THAT:
    

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

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

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

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

    
                WHEREAS Executive further acknowledges and agrees that this
      Agreement does not alter Executive's status as an "employee at will"
      with the Company;
    

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

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

    
      (a)       "Bonus Amount" means the highest annual incentive bonus earned
      by Executive from the Company (or its Subsidiaries) during the last
      three (3) completed fiscal years of the Company immediately preceding
      Executive’s Date of Termination.
    

    
      (b)       "Cause" means any one or more of the following:  (i) the
      willful and continued failure of Executive to perform substantially
      Executive's duties with the Company or its Subsidiaries (other than any
      such failure resulting from Executive's Disability or any such failure
      subsequent to Executive being delivered a Notice of Termination without
      Cause by the Company or its Subsidiaries or after Executive delivering a
      Notice of Termination for Good Reason to the Company or its
      Subsidiaries) after a written demand for substantial performance is
      delivered to Executive by the Board which specifically identifies the
      manner in which the Board believes that Executive has not substantially
      performed Executive's duties and provides Executive with ten (10)
      business days to correct such failure; or (ii) the willful engaging by
      Executive in illegal conduct or gross misconduct which is injurious to
      the Company or its Subsidiaries; or (iii) the conviction of Executive
      of, or a plea by Executive of nolo contendere to, a felony; or
      (iv) Executive's breach of or failure to perform any of the
      non-competition and non-disclosure covenants contained in Section 11 of
      this Agreement or contained in any other document signed by Executive
      and by the Company (or any Subsidiary).  For purposes of this paragraph
      (b), no act or failure to act by Executive shall be considered "willful"
      unless done or omitted to be done by Executive in bad faith and without
      reasonable belief that Executive's action or omission was in the best
      interests of the Company and its Subsidiaries.  Any act or failure to
      act based upon authority given pursuant to a resolution duly adopted by
      the Board, based upon the advice of counsel for the Company, or based
      upon the instructions of the Company's chief executive officer or
      another senior officer of the Company shall be conclusively presumed to
      be done, or omitted to be done, by Executive in good faith and in the
      best interests of the Company and its Subsidiaries.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

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

    
      (i)       if individuals who, on the date of this Agreement, constitute
      the Board (the "Incumbent Directors") cease for any reason to constitute
      at least a majority of the Board; provided, however, that: (A) any
      person becoming a director subsequent to the date of this Agreement,
      whose election or nomination for election was approved by a vote of at
      least two-thirds (2/3) of the Incumbent Directors then on the Board
      (either by a specific vote or by approval of the proxy statement of the
      Company in which such person is named as a nominee for director, without
      written objection by such Incumbent Directors to such nomination), shall
      be deemed to be an Incumbent Director; and (B) no individual elected or
      nominated as a director of the Company initially as a result of an
      actual or threatened election contest with respect to directors or any
      other actual or threatened solicitation of proxies by or on behalf of
      any person other than the Board shall be deemed to be an Incumbent
      Director;
    

    
      (ii)      if any "person" (as such term is defined in Section 3(a)(9) of
      the Securities Exchange Act of 1934, as amended (the "Exchange Act") and
      as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or
      becomes a "beneficial owner" (as defined in Rule 13d-3 under the
      Exchange Act), directly or indirectly, of securities of the Company
      representing thirty percent (30%) or more of the combined voting power
      of the Company's then-outstanding securities eligible to vote for the
      election of the Board (the "Company Voting Securities"); provided,
      however, that the events described in this clause (ii) shall not be
      deemed to be a Change in Control by virtue of any of the following
      acquisitions:  (A) by the Company or any Subsidiary; (B) by any employee
      benefit plan sponsored or maintained by the Company or any Subsidiary or
      by any employee stock benefit trust created by the Company or any
      Subsidiary; (C) by any underwriter temporarily holding securities
      pursuant to an offering of such securities; (D) pursuant to a
      Non-Qualifying Transaction (as defined in clause (iii) of this paragraph
      (c), below); (E) pursuant to any acquisition by Executive or by any
      group of persons including Executive (or any entity controlled by
      Executive or any group of persons including Executive); or (F) a
      transaction (other than one described in clause (iii) of this paragraph
      (c), below) in which Company Voting Securities are acquired from the
      Company, if a majority of the Incumbent Directors approves a resolution
      providing expressly that the acquisition pursuant to this subparagraph
      (F) does not constitute a Change in Control under this clause (ii);
    

    
      
        

        

      

      
        
          - 2 -
        

        
          

        

      

      
        

        

      

    

    

    

    
      (iii)     upon the consummation of a merger, consolidation, share
      exchange or similar form of corporate transaction involving the Company
      or any of its Subsidiaries that requires the approval of the Company's
      shareholders, whether for such transaction or the issuance of securities
      in the transaction (a "Business Combination"), unless immediately
      following such Business Combination: (A) more than fifty percent (50%)
      of the total voting power of either (1) the corporation resulting from
      the consummation of such Business Combination (the "Surviving
      Corporation") or, if applicable, (2) the ultimate parent corporation
      that directly or indirectly has beneficial ownership of one hundred
      percent (100%) of the voting securities eligible to elect directors of
      the Surviving Corporation (the "Parent Corporation") is represented by
      Company Voting Securities that were outstanding immediately prior to
      such Business Combination (or, if applicable, represented by shares into
      which such Company Voting Securities were converted pursuant to such
      Business Combination), and such voting power among the holders thereof
      is in substantially the same proportion as the voting power of such
      Company Voting Securities among the holders thereof immediately prior to
      the Business Combination; (B) no person (other than any employee benefit
      plan sponsored or maintained by the Surviving Corporation or the Parent
      Corporation or any employee stock benefit trust created by the Surviving
      Corporation or the Parent Corporation) is or becomes the beneficial
      owner, directly or indirectly, of thirty percent (30%) or more of the
      total voting power of the outstanding voting securities eligible to
      elect directors of the Parent Corporation (or, if there is no Parent
      Corporation, the Surviving Corporation); and (C) at least a majority of
      the members of the board of directors of the Parent Corporation (or, if
      there is no Parent Corporation, the Surviving Corporation) were
      Incumbent Directors at the time of the Board's approval of the execution
      of the initial agreement providing for such Business Combination (any
      Business Combination which satisfies all of the criteria specified in
      (A), (B) and (C) above shall be deemed to be a "Non-Qualifying
      Transaction"); or
    

    
      (iv)      upon liquidation or dissolution of the Company or consummation
      of the sale of all or substantially all of the Company's assets but only
      if, pursuant to such liquidation or sale, the assets of the Company are
      transferred to an entity not owned (directly or indirectly) by the
      Company's shareholders.
    

    
      Notwithstanding the foregoing, a Change in Control shall not be deemed
      to occur solely because any person acquires beneficial ownership of more
      than thirty percent (30%) of Company Voting Securities as a result of
      the acquisition of Company Voting Securities by the Company which
      reduces the number of Company Voting Securities outstanding; provided,
      however, that if (after such acquisition by the Company) such person
      becomes the beneficial owner of additional Company Voting Securities
      that increases the percentage of outstanding Company Voting Securities
      beneficially owned by such person, a Change in Control shall then
      occur.  Notwithstanding anything in this Agreement to the contrary, if
      (A) Executive's employment is terminated prior to a Change in Control
      for reasons that would have constituted a Qualifying Termination if they
      had occurred following a Change in Control, (B) Executive reasonably
      demonstrates that such termination (or event constituting Good Reason)
      was at the request of a third party who had indicated an intention or
      taken steps reasonably calculated to effect a Change in Control, and (C)
      a Change in Control involving such third party (or a party competing
      with such third party to effectuate a Change in Control) does occur,
      then (for purposes of this Agreement) the date immediately prior to the
      date of such termination of employment (or event constituting Good
      Reason) shall be treated as a Change in Control.
    

    
      
        

        

      

      
        
          - 3 -
        

        
          

        

      

      
        

        

      

    

    
      (d)       "Date of Termination" means (1) the effective date on which
      Executive's employment by the Company and its Subsidiaries terminates as
      specified in a prior written notice by the Company, a Subsidiary or
      Executive (as the case may be) to the other, delivered pursuant to
      Section 9, or (2) if Executive's employment by the Company terminates by
      reason of death, the date of death of Executive, or (3) if the Executive
      incurs a Disability, the date of such Disability as determined by a
      physician chosen by the Company. For purposes of determining the timing
      of payments and benefits to Executive under Section 4, the date of the
      actual Change in Control shall be treated as Executive's Date of
      Termination.
    

    
      (e)       "Disability" means Executive's inability to perform
      Executive's then-existing duties with the Company or its Subsidiaries on
      a full-time basis for at least one hundred eighty (180) consecutive days
      as a result of Executive's incapacity due to physical or mental illness.
    

    
      (f)       "Good Reason" means, without Executive's express written
      consent, the occurrence of any of the following events after a Change in
      Control:
    

    
      (i)       (A) any change in the duties or responsibilities (including
      reporting responsibilities) of Executive that is inconsistent in any
      material and adverse respect with Executive's positions, duties,
      responsibilities or status with the Company or its Subsidiaries
      immediately prior to such Change in Control (including any material and
      adverse diminution of such duties or responsibilities), or (B) a
      material and adverse change in Executive's titles or offices (including,
      if applicable, membership on the Board) with the Company or its
      Subsidiaries as existing immediately prior to such Change in Control;
    

    
      (ii)      (A) a reduction by the Company or its Subsidiaries in
      Executive's rate of annual base salary as in effect immediately prior to
      such Change in Control (or as such annual base salary may be increased
      from time to time thereafter), or (B) the failure by the Company or its
      Subsidiaries to pay Executive an annual bonus (if any) in respect of the
      year in which such Change in Control occurs;
    

    
      (iii)     any requirement of the Company or its Subsidiaries that
      Executive:  (A) be based anywhere more than fifty (50) miles from the
      Executive's residence at the time of the Change in Control, or (B)
      travel on Company or Subsidiary business to an extent substantially
      greater than the travel obligations of Executive immediately prior to
      such Change in Control;
    

    
      
        

        

      

      
        
          - 4 -
        

        
          

        

      

      
        

        

      

    

    

    

    
      (iv)      the failure of the Company or its Subsidiaries to continue in
      effect any material employee benefit plan, compensation plan, welfare
      benefit plan or other material fringe benefit plan in which Executive is
      participating immediately prior to such Change in Control or the taking
      of any action by the Company or its Subsidiaries which would materially
      and adversely affect Executive's participation in or reduce Executive's
      benefits under any such plan, unless Executive is permitted to
      participate in other plans providing Executive with substantially
      equivalent benefits in the aggregate; or
    

    
      (v)       the failure of the Company to obtain the assumption (and, if
      applicable, guarantee) agreement from any successor (and Parent
      Corporation) as contemplated in Section 8(b).
    

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

    
      (g)       “Highest Base Salary” means Executive’s highest annual base
      salary (excluding any bonuses) paid to Executive by the Company and by
      any Subsidiary during the Company’s last three (3) fiscal years
      completed immediately prior to the Date of Termination.
    

    
      (h)       "Qualifying Termination" means a termination of Executive's
      employment after a Change in Control and during the Termination Period
      (as defined herein) (i) by the Company or its Subsidiaries other than
      for Cause, or (ii) by Executive for Good Reason.  Termination of
      Executive's employment on account of death or Disability shall not
      constitute a Qualifying Termination.
    

    
      (i)       "Retirement" means the termination of Executive's employment
      with the Company and its Subsidiaries:  (A) on or after the first of the
      month coincident with or next following Executive's attainment of age
      sixty-five (65), or (B) on such later date as may be provided in a
      written agreement between the Company or its Subsidiaries and Executive.
    

    
      (j)       "Subsidiary" means any corporation or other entity in which
      the Company:  (A) has a direct or indirect ownership interest of fifty
      percent (50%) or more of the total combined voting power of the
      then-outstanding securities or interests of such corporation or other
      entity entitled to vote generally in the election of directors, or (B)
      has the right to receive fifty percent (50%) or more of the distribution
      of profits or fifty percent (50%) of the assets upon liquidation or
      dissolution.
    

    
      
        

        

      

      
        
          - 5 -
        

        
          

        

      

      
        

        

      

    

    

    

    
      (k)       "Termination Period" means the two (2) year period beginning
      with a Change in Control and ending two (2) years following such Change
      in Control.
    

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

    
                3.        Term
      of Agreement.  The term of this Agreement shall be effective on
      the date hereof and shall continue in effect until the Company shall
      have given two (2) years' written notice of cancellation; provided,
      however, that (notwithstanding the delivery of any such notice) the term
      of this Agreement shall continue in effect for a period of two (2) years
      after a Change in Control, if such Change in Control shall have occurred
      during the term of this Agreement. Notwithstanding anything in this
      Agreement to the contrary, the term of this Agreement shall terminate if
      Executive or the Company terminates Executive's employment prior to a
      Change in Control.
    

    
                4.        Benefits
      Upon Qualifying Termination of Employment.
    

    
      (a)       Qualifying Termination —
      Cash Payment.  If, during the Termination Period, Executive's
      employment with the Company and its Subsidiaries terminates pursuant to
      a Qualifying Termination, then the Company shall pay to Executive,
      within twenty (20) days following the Date of Termination, a lump sum
      cash amount equal to the sum of (i) one hundred twenty-five percent
      (125%) of Executive's Highest Base Salary, as defined in Section 1(g),
      through the Date of Termination and any base salary and bonuses which
      have been earned and are payable, to the extent not theretofore paid or
      deferred, plus (ii) one hundred twenty-five percent (125%) of
      Executive's Bonus Amount.
    

    
      (b)       Qualifying Termination ―
      Continued Coverage.  If, during the Termination Period, Executive's
      employment with the Company and its Subsidiaries terminates pursuant to
      a Qualifying Termination, the Company shall continue to provide, for a
      period of fifteen (15) months following the Date of Termination,
      Executive (and Executive's dependents, if applicable) with the same
      level of medical insurance benefits upon substantially the same terms
      and conditions (including contributions required by Executive for such
      benefits) as existed immediately prior to Executive's Date of
      Termination (or, if more favorable to Executive, as such benefits and
      terms and conditions existed immediately prior to the Change in
      Control); provided, however, that if Executive is not eligible to
      continue to participate in the Company plan providing such benefits, the
      Company shall otherwise provide such benefits on the same after-tax
      basis as if continued participation had been permitted.  Notwithstanding
      the foregoing, in the event Executive becomes re-employed with another
      employer and becomes eligible to receive medical insurance benefits from
      such employer, the medical insurance benefits described herein shall be
      secondary to such benefits during the period of such eligibility but
      only if (and to the extent that) the Company reimburses Executive for
      any increased cost and provides any additional benefits necessary to
      give Executive the benefits provided hereunder. Executive's accrued
      benefits as of the Date of Termination under the Company's medical
      insurance plan shall be payable in accordance with the terms of such
      plan.
    

    
      
        

        

      

      
        
          - 6 -
        

        
          

        

      

      
        

        

      

    

    

    

    
      Notwithstanding any contrary provision set forth in this Agreement,
      Company's payments to Executive shall be reduced to the extent that such
      payments (together with all other payments by Company to Executive under
      all other written or verbal agreements between Company and Executive)
      constitute an "excess parachute payment" under Section 280G of the
      Internal Revenue Code (as may be periodically amended).
    

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

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

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

    
                8.        Successors;
      Binding Agreement.
    

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

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

    
      
        

        

      

      
        
          - 7 -
        

        
          

        

      

      
        

        

      

    

    

    

    
      (c)       This Agreement shall inure to the benefit of and be
      enforceable by Executive's personal or legal representatives, executors,
      administrators, successors, heirs, distributees, devisees and
      legatees.  If Executive dies while any amounts would be payable to
      Executive hereunder if Executive had continued to live, all such amounts
      (unless otherwise provided herein) shall be paid in accordance with the
      terms of this Agreement to such person or persons appointed in writing
      by Executive to receive such amounts or, if no person is so appointed,
      to Executive's estate.
    

    
                9.        Notice.
    

    
      (a)       For purposes of this Agreement, all notices and other
      communications required or permitted hereunder shall be in writing and
      shall be deemed to have been properly given when delivered or three (3)
      days after deposit in the United States mail, certified and return
      receipt requested, postage prepaid, addressed as follows (or to such
      other address as either Party may have furnished to the other in writing
      in accordance herewith, except that notices of change of address shall
      be effective only upon receipt):
    

    

    

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

        	
           
        
	

        	
          ―
        	
          If to the Company:
        
	

        	
           
        
	

        	

        	
          LNB Bancorp, Inc.
        
	

        	

        	
          457 Broadway
        
	

        	

        	
          Lorain, OH 44052
        
	

        	

        	
          Attn: Senior Vice President of Human Resources
        

    

    

    

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

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

    
      
        

        

      

      
        
          - 8 -
        

        
          

        

      

      
        

        

      

    

    

    

    
                11.       Executive's
      Non-Disclosure and Non-Solicitation Promises.
    

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

    
      (a)       "Competitive Activity" means the performance or rendering of
      any banking services; trust services and investment services; portfolio
      management; retirement planning; administration of employee benefit
      plans; administration of decedents' estates and court-supervised
      accounts, guardianships, and custodial arrangements; personal tax and
      estate tax planning; financial consulting services; investment advising
      services; and any other business activity, service or product which
      competes with any existing or future business activity, service or
      product of the Company.
    

    
      (b)       "Confidential Information" means all of the following (whether
      written or verbal) pertaining to the Company:  (i) trade secrets (as
      defined by Ohio law); customer lists, records and other information
      regarding the Company's customers (whether or not evidenced in writing);
      customer fee or price schedules and fee or price policies; financial
      books, plans, records, ledgers and information; business development
      plans; sales and marketing plans; research and development plans;
      employment and personnel manuals, records, data and policies; business
      manuals, methods and operations; business forms, correspondence,
      memoranda and other records; computer records and related data; and any
      other confidential or proprietary data and information of the Company or
      its customers which Executive encounters during the Employment Term; and
      (ii) all products, technology, ideas, inventions, discoveries,
      developments, devices, processes, business notes, forms and documents,
      business products, computer programs, and other creations (and
      improvements of any of the foregoing), whether patentable or
      copyrightable, which Executive has acquired, developed, conceived or
      made (whether directly or indirectly, whether solicited or unsolicited,
      or whether during normal work hours or during off-time) during the
      Employment Term and which relate to any business activity of the Company
      or are derived from the Confidential Information designated in Subitem
      (i) of this Section 11.1(b).
    

    
      (c)       "Customer" means a person, sole proprietorship, partnership,
      association, organization, corporation, limited liability company, or
      other entity (governmental or otherwise), wherever located:  (i) to or
      for which the Company sells any products or renders or performs services
      either during the 180-day period immediately preceding commencement of
      the Restricted Period or during the Restricted Period, or (ii) which the
      Company solicits or (as demonstrated by plans, strategies or other
      tangible preparation) intends to solicit to purchase products or
      services from the Company either during the 180-day period immediately
      preceding commencement of the Restricted Period or during the Restricted
      Period.
    

    
      
        

        

      

      
        
          - 9 -
        

        
          

        

      

      
        

        

      

    

    

    

    
      (d)       "Employment Term" means, for purposes of this Section 11, the
      period of time starting on the date Executive's employment with the
      Company commenced and terminating at the close of business on the date
      Executive's employment with the Company terminates.
    

    
      (e)       "Restricted Period" means a period of two (2) years (or, if
      shorter, the duration of the Employment Term) commencing on the date the
      Employment Term is terminated by either Party (for any reason, with or
      without cause); provided, however, that such period shall be extended to
      include any period of time during which Executive engages in any
      activity constituting a breach of this Agreement and any period of time
      during which litigation transpires wherein Executive is held to have
      breached this Agreement.
    

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

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

    
      (a)       Confidentiality.  The
      Confidential Information is and, at all times, shall remain the
      exclusive property of the Company, and Executive  (i) shall hold the
      Confidential Information in strictest confidence and in a position of
      trust for the Company, and (ii) except as may be necessary to perform
      Executive's employment duties with the Company, shall not (directly or
      indirectly) use for any purpose, copy, duplicate, disclose, convey to
      any third-party or convert any Confidential Information, either during
      the Employment Term or at any time following termination of the
      Employment Term (by either Party, for any reason, with or without
      cause), and (iii) upon the request of the Company at any time during or
      after the Employment Term, shall immediately deliver to the Company all
      the Confidential Information in Executive's possession and shall neither
      convey to any third-party nor retain any copies or duplicates thereof.
    

    
      (b)       Customers.  During
      the Restricted Period, Executive (or any entity owned or controlled by
      Executive) shall not directly or indirectly (i) solicit from or perform
      for any Customer a Competitive Activity, wherever such Customer is
      located, or (ii) influence (or attempt to influence) any Customer to
      transfer such Customer's patronage or business from the Company, or
      (iii) otherwise interfere with any business relationship of the Company
      with any Customer.
    

    
      
        

        

      

      
        
          - 10 -
        

        
          

        

      

      
        

        

      

    

    

    

    
      (c)       Employees.  During
      the Restricted Period, Executive (or any entity owned or controlled by
      Executive) shall not directly or indirectly (i) employ, engage, contract
      for the services of, or solicit or otherwise induce the services of any
      person who, during the one hundred eighty (180) day period immediately
      preceding commencement of the Restricted Period or during the Restricted
      Period, is or was an employee of the Company, or (ii) otherwise
      interfere with (or attempt to interfere with) any employment
      relationship of the Company with any employee of the Company.
    

    
      (d)       Other Employment.  During
      the Employment Term, Executive shall not perform services (whether or
      not for compensation) as an employee, independent contractor,
      consultant, representative or agent of any person, sole proprietorship,
      partnership, limited liability company, corporation, association (other
      than the Company), organization, or other entity (governmental or
      otherwise) without the prior written consent of the President of the
      Company (or any person expressly designated by the President).
    

    
      (e)       Costs of Enforcement.  Executive
      shall pay all reasonable legal fees, court costs, expert fees,
      investigation costs, and other expenses incurred by the Company in the
      enforcement of this Section 11.
    

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

    
      (a)       during the Employment Term, Executive will materially assist
      the Company in the generation, development or enhancement of certain
      Confidential Information and certain other business assets and
      activities for Company; and
    

    
      (b)       Executive's promises in this Section 11:  (1) were negotiated
      at arm's-length and with ample time for Executive to seek the advice of
      legal counsel, (2) are required for the fair and reasonable protection
      of the Company and the Confidential Information, and (3) do not
      constitute an unreasonable hardship to Executive in working for the
      Company or in subsequently earning a livelihood in Executive's field of
      expertise; and
    

    
      (c)       if Executive breaches (or threatens to breach) any or all of
      the promises in this Section 11:  the secrecy and thereby the value of
      the Confidential Information will be significantly jeopardized; the
      Company will be subject to the immediate risk of material, immeasurable,
      and irreparable damage and harm; the remedies at law for Executive's
      breach shall be inadequate; the Company shall therefore be entitled to
      injunctive relief against Executive in addition to any and all other
      legal or equitable remedies; and
    

    
      (d)       if Executive had not agreed to the restrictive promises in
      this Agreement, the Company would not have signed this Agreement.
    

    
      
        

        

      

      
        
          - 11 -
        

        
          

        

      

      
        

        

      

    

    

    

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

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

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

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

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

    
                16.       Miscellaneous.  No
      provision of this Agreement may be modified or waived unless such
      modification or waiver is agreed to in writing and signed by Executive
      and by a duly authorized officer of the Company. No waiver by either
      Party (at any time) of any breach by the other Party of, or compliance
      with, any condition or provision of this Agreement to be performed by
      such other Party shall be deemed a waiver of similar or dissimilar
      provisions or conditions at the same or at any prior or subsequent time.
      Except as otherwise expressly set forth in this Agreement, the failure
      by Executive or the Company to insist upon strict compliance with any
      provision of this Agreement or to assert any right Executive or the
      Company may have hereunder shall not be deemed to be a waiver of such
      provision or right or any other provision or right of this Agreement.
    

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

    

    

    	
           
        	
          
            LNB Bancorp, Inc.
          

        
	
           
        
	

        	
          By:
        	
           
        
	

        	

        	
          Daniel E. Klimas, President
        

    

    
      
        

        

      

      
        
          - 12 -
        

        
          

        

      

      
        

        

      

    

    

    

    

    

    	
           
        	
          - Company -
        
	

        	
           
        
	

        	
           
        
	

        	
          
            [Name]
          

        
	

        	
           
        
	

        	
          Address
        
	

        	
           
        
	

        	
          City, State
        
	

        	
           
        
	

        	
           
        
	

        	
          - Executive -
        

    

    
      
        

        

      

      
        
          - 13 -
        

        
          

        

      

      
        

        

      

    

    

    

    
      Schedule of Executives Entering Into Change in Control Agreements
    

    
      David Harnett
Frank A. Soltis
Kevin W. Nelson
Kevin G. Ball
John
      D. Simacek
Mary E. Miles

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