Document:

EX-10.1

 Exhibit 10.1 
 LNB Bancorp, Inc. 
 2012 CEO Incentive Plan 

Section I. PURPOSE 
 The LNB Bancorp,
Inc. 2012 CEO Incentive Plan is designed to reward the CEO with incentive compensation payments for achieving profitability goals and subjective goals. 
 Section II. DEFINITIONS 
 The following terms, as used in this Plan, shall mean: 

 

	A.	Committee. The Compensation Committee of the Board of Directors of LNB Bancorp, Inc., or such other committee as such Board may designate.

  

	B.	Employer or Lorain National Bank. LNB Bancorp, Inc., its subsidiaries and affiliates. 

 

	C.	Employment Agreement. The Employment Agreement, dated as of January 28, 2005, as amended as of July 16, 2008, December 12, 2008 and
December 15, 2009; by and among Daniel E. Klimas, LNB Bancorp, Inc. and The Lorain National Bank. 

  

	D.	Plan period. July 1, 2012 through December 31, 2012. 

 

	E.	Plan. The LNB Bancorp, Inc. 2012 CEO Incentive Plan. 

  

	F.	Incentive Payment. Cash payment earned by CEO on the Incentive Payment Date, as determined in accordance with Section IV and the other terms of this Plan.

  

	G.	Incentive Payment Date: The date on which an Incentive Payment to the CEO is paid, which shall be as soon as reasonably practicable after such payment is
calculated and authorized by the Committee but not later than two and one-half months following the end of the Plan period. 

  

	H.	Profitability. Profitability is defined as income before income tax expense, adjusted to exclude the impact of provision for loan losses, of LNB Bancorp,
Inc. and its consolidated subsidiaries for the Plan period, as determined by the Committee. The Committee has the discretion to adjust for any unforeseen occurrences which may affect the profitability number. 

 

	I.	Profitability Goal. An amount of Profitability established as a goal by the Committee in its discretion and solely for purposes of this Plan, based on the
Employer’s annual budget as determined by its Audit and Finance Committee. This goal will be communicated to the CEO. 

 Section III. ELIGIBILITY 
 The CEO of Employer is eligible to participate in this Plan. The Committee has the authority, in its discretion, to designate the CEO who will participate in the Plan during the Plan period. 

Section IV. AMOUNT OF INCENTIVE PAYMENT 

Subject to the other terms of this Plan, the amount of the Incentive Payment earned by the CEO under this Plan will be determined as a percentage of up to
50% of the CEO’s base salary for 2012, based on Employer’s actual Profitability achievement for the Plan period relative to the Profitability Goal and on other terms as determined, interpreted and established in the sole discretion of the
Committee. 
 Section V. OTHER INCENTIVE PAYMENT TERMS 
  

	A.	Payments and Deductions/Withholding Taxes. 

 Employer will pay the CEO the Incentive Payment on the Incentive Payment Date provided the CEO is an active employee of Employer on that date. The amount of the Incentive Payment, if any, shall be
calculated as provided in Section IV of this Plan. Deductions may also be made at the discretion of Employer and in accordance with applicable law for any amounts the CEO owes to Employer. 
 Employer may withhold from any amounts payable under or in connection with this Plan all federal, state, local and other taxes as may be required to be withheld by Employer under applicable law or
governmental regulation or ruling. 
  

	B.	Incentive Payment Calculation. 

 The Committee will have the sole authority and discretion to evaluate all aspects of the Employer’s incentive compensation awards and to determine performance and the total amount of compensation
available to the CEO in the aggregate. Generally, subject in all cases to terms as determined, interpreted and established in the sole discretion of the Committee, the total amount of compensation available to the CEO under this Plan will be based
upon whether the Employer achieves actual Profitability for the Plan period that equals or exceeds the Profitability Goal and upon the Committee’s evaluation of the CEO’s overall performance. The Committee will determine the distribution
to the CEO, in its sole discretion. 
 The Committee retains the right and authority (in addition to any other rights or remedies of Employer)
not to pay all or any part of an Incentive Payment to the CEO based on operational wrongdoing or misconduct of the CEO, as determined by the Committee in its sole discretion. The Employer must document all such exceptions to this Plan, including but
not limited to, forfeiture of payments. 

  
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 Section VI. GENERAL PROVISIONS 
 1. Administration. The Plan shall be administered by the Committee. The Committee has the sole and exclusive authority, subject to any limitations specifically set forth in this Plan, to: adopt,
amend, alter and repeal this Plan at any time as it deems advisable in its sole discretion from time to time; construe, interpret, administer and implement the terms and provisions of this Plan; and otherwise supervise the administration of this
Plan. Notwithstanding the foregoing, all decisions made by the Committee pursuant to the provisions of this Plan are final and binding on all persons, including CEO, but may be made by their terms subject to ratification or approval by the Board of
Directors of LNB Bancorp, Inc. or another committee of the Board of Directors. 
 2. No Implied Rights to Employment. Neither this Plan
nor any Incentive Payment hereunder shall be construed as giving any individual any right to continued employment or any particular level of salary or benefits with Employer. This Plan does not constitute a contract of employment, and Employer
expressly reserves the right at any time to terminate any CEO free from liability or any claim. 
 3. Other Compensation Plans. Nothing
contained in this Plan prevents Employer from adopting or modifying other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases. 

4. Successors; Amendments. All obligations of Employer with respect to Incentive Payments under this Plan are binding on any successor to
Employer, whether as a result of a direct or indirect purchase, merger, consolidation or otherwise of all or substantially all of the business and/or assets of Employer. The CEO may not assign any rights or obligations under this Plan without the
written consent of Employer. 
 5. Validity. The invalidity or unenforceability of any provision or provisions of this Plan shall not
affect the validity or enforceability of any other provision of this Plan, which shall remain in full force and effect. 
 6. Governing Law;
Interpretation. This Plan shall be construed in accordance with and governed by the laws of the State of Ohio, without giving effect to the conflict of law principles of such State. This Plan is not intended to be governed by the Employee
Retirement Income Security Act and shall be so construed and administered. The headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Plan. 

7. Conflicts with Law. If any provision of the Plan violates local, state or federal law, the applicable law shall control. 

8. Entire Agreement. This Plan embodies the entire agreement and understanding between Employer and the CEO with respect to the subject matter
hereof, and supercedes all prior agreements and understandings relating hereto, except as expressly stated herein. 

  
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 The CEO and Employer have agreed to the terms of this Plan as of the latest date set forth below.

  

							
	“Employee”	 		 		 	
				
	Approved:	 	/s/ Daniel E. Klimas	 	Date:	 	11/2/2012
		 	Daniel E. Klimas	 		 	
				
	“Employer”	 		 		 	
				
	Approved:	 	/s/ James R. Herrick	 	Date:	 	11/2/2012
		 	By: James R. Herrick, Chairman of the Board	 	

  
 4EX-10.1

 Exhibit 10.1 

 
 

 
 Extension, Amendment and Confirmation Letter 

 

			
	To:	  	 Zellstoff- und Papierfabrik Rosenthal GmbH
 Hauptstraße 16
 07366 Blankenstein
 Germany
 (the “Borrower” or “ZPR”)

 

		  	 D&Z Holding GmbH

Hauptstraße 16
 07366
Blankenstein
 Germany
 (the
“Parent”)
  
 D&Z Beteiligungs GmbH

Hauptstraße 16
 07366
Blankenstein
 Germany

(“D&Z Beteiligung”)
  

ZPR Logistik GmbH
 Hauptstraße
16
 07366 Blankenstein

Germany
 (“ZPR
Logistik”)
  
 Mercer International Inc.

Suite 1120, 700 W.Pender Street
 Vancouver, BC
V6C 1G8
 Canada
 (the “Ultimate
Parent”)

 Munich, 04 October 2012 
 Dear Sirs 

  
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 Extension, Amendment and Confirmation Letter in relation to the Revolving Credit Facility Agreement in
the amount of EUR 25,000,000 dated 19 August 2009 (the “Facility Agreement”) and the Shareholders’ Undertaking Agreement dated 19 August 2009 (the “Shareholders Undertaking Agreement”) 

 

	1.	INTRODUCTION 

  

	 	(a)	We (in our capacity as Facility Agent and/or, where the context so requires, as Security Agent) refer to the Facility Agreement. 

 

	 	(b)	We further refer to clause 9.1 of the Facility Agreement which provides that the Borrower shall repay all Loans in full on the Termination Date currently defined as
31 December 2012. 

  

	 	(c)	The extension, amendments and confirmation set out herein shall take effect upon (1) receipt by the Facility Agent of a copy of this letter duly countersigned by
each of the Borrower, the Ultimate Parent, the Parent, D&Z Beteiligung and ZPR Logistik and (2) satisfaction of the conditions set out in clause 6 and such date shall be the “Effective Date”. The Facility Agent shall confirm the
Effective Date to the Borrower promptly upon its occurrence. 

  

	2.	DEFINITIONS 

 Words and
phrases given a meaning in the Facility Agreement, unless otherwise defined herein, have the same meaning when used in this letter. 
  

	3.	EXTENSION 

 Subject to the
other provisions of this letter, we (as Agent acting on the instructions of all the Lenders) propose that the definition of “Termination Date” set out in the Facility Agreement shall be amended to read as follows: 

“Termination Date” means 31 October 2016. 

 

	4.	AMENDMENTS 

 Subject to
the other provisions of this letter, we (as Agent acting on instructions of Lenders constituting at least the Majority Lenders) propose that: 
  

	 	A)	Paragraph (B) of the Introduction of the Facility Agreement shall be amended to read as follows: 

“ZPR operates an ISO 9001 (quality management), ISO 14001 (environmental management) and ISO 50001 (energy management) certified
pulp mill for the production of northern bleached softwood kraft pulp located in Blankenstein, Thüringen, Federal Republic of Germany which has been financed through certain credit facilities.” 

  
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	 	B)	The definition “Rollover Utilisation” of Clause 1.1 of the Facility Agreement shall be amended to read as follows: 

“Rollover Utilisation” means one or more Utilisations: 

 

	 	(a)	made or to be made on the same day that (i) a maturing Loan is due to be repaid or (ii) the Borrower is obliged to pay to the Agent for the Issuing Bank
the amount of any claim under a Bank Guarantee; 

  

	 	(b)	the aggregate amount of which is equal to or less than (i) the maturing Loan or (ii) the amount of the claim under the Bank Guarantee;

  

	 	(c)	in the same currency as (i) the maturing Loan or (ii) the claim under the Bank Guarantee; and 

 

	 	(d)	made or to be made to the Borrower for the purpose of (i) refinancing a maturing Loan or (ii) satisfying the obligations of the Borrower to pay the amount
of a claim under the Bank Guarantee to the Agent for the Issuing Bank;” 

  

	 	C)	Clause 14.1.1 of the Facility Agreement shall be amended to read as follows: 

 “The Borrower shall pay to the Agent (for the account of each Lender) a fee computed at the rate of 0.90 per cent per annum on that Lender’s Available Commitment for the Availability
Period.”  
  

	 	D)	Clause 24.18.1 of the Facility Agreement shall be amended to read as follows: 

“No Obligor shall (and the Parent will procure that no members of the ZPR Group will) without the prior written consent of the
Agent utilize the Facility in an amount exceeding EUR 10,000,000 to acquire any assets (separately or in a series of related acquisitions).” 
  

	5.	CONFIRMATION OF GUARANTEE, SECURITY RIGHTS AND SHAREHOLDERS’ UNDERTAKING AGREEMENT 

 

	 	(a)	The Borrower confirms for the benefit of the Finance Parties that each Security Document shall remain in full force and effect notwithstanding the extension of and
amendments to, the Facility Agreement and that each Security Document shall secure the obligations assumed by the Borrower under the Finance Documents, including the Facility Agreement (as amended). 

 

	 	(b)	Each Guarantor confirms for the benefit of the Finance Parties that all of its obligations under clause 20 of the Facility Agreement
(Guarantee—selbstschuldnerische Bürgschaft) shall remain in full force and effect notwithstanding the extension of and amendments to, the Facility Agreement and that its obligations extend to all obligations assumed by the Borrower
under the Finance Documents, including the Facility Agreement (as amended). 

  
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	 	(c)	The Ultimate Parent, the Parent, ZPR, D&Z Beteiligung and ZPR Logistik as Subordinated Creditors each confirms for the benefit of the Finance Parties that its
undertakings and obligations in the Shareholders’ Undertaking Agreement shall remain in full force and effect and continue to apply notwithstanding the extension of and amendments to, the Facility Agreement. 

 

	6.	EFFECTIVENESS 

 The
extension and amendments proposed in this letter shall be subject to the fulfilment of the following conditions in form and substance satisfactory to the Agent: 
  

	 	(a)	A copy of the constitutional documents of each Original Obligor in the form required by the Agent, including in relation to a German Obligor, an up-to-date officially
certified commercial register extract (beglaubigter Handelsregisterauszug) and the articles of association (Satzung). 

  

	 	(b)	A copy of a resolution of the shareholders, or in the case of the Ultimate Parent a resolution of the directors, of each Original Obligor: 

 

	 	(i)	approving the terms of, and the transactions contemplated by, this letter and resolving that it countersigns this letter; 

 

	 	(ii)	authorising a specified person or persons to countersign this letter; and 

  

	 	(iii)	authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or in connection
with this letter. 

  

	 	(c)	A legal opinion from Sangra Moller in respect of the Ultimate Parent covering: 

 

	 	(i)	its due incorporation, its valid existence, its ability to be sued in its own name and the power to own its assets and carry on the business as it is being conducted;

  

	 	(ii)	the due capacity of (including the power to enter into, perform and take all necessary action to authorise its entry into and performance of, this Extension, Amendment
and Confirmation Letter, the extension of the Shareholder Loan Agreement and the transactions contemplated hereby) and the due execution by the Ultimate Parent in relation to each of this Extension, Amendment and Confirmation Letter, the extension
of the Shareholder Loan Agreement to which it is a party and the transactions contemplated hereby; 

  
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	 	(iii)	the choice of the laws of the Federal Republic of Germany to govern this Extension, Amendment and Confirmation Letter and the Shareholder Loan Agreement to which it is
a party being upheld by the relevant state and federal courts, and 

  

	 	(iv)	recognition and acceptance of final and conclusive judgment against it from any court in the Federal Republic of German by the relevant state and federal courts without
re-trial or examination of the merits of the case; 

  

	 	(d)	Evidence that each of the Shareholder Loan Agreements has been extended for a term until 30 November 2016 or any later date. 

 

	 	(e)	A copy of any other Authorisation or other document, opinion or assurance which the Agent reasonably considers to be necessary or desirable (if it has notified the
Borrower accordingly) in connection with the entry into and performance of the transactions contemplated by this letter or for the validity and enforceability hereof. 

 

	 	(f)	Evidence that the fees, costs and expenses due from the Borrower have been paid or will be paid in accordance with Clause 11 of this letter. 

 

	7.	CONTINUING OBLIGATIONS 

  

	 	(a)	The extension and amendments proposed in this letter are strictly limited to the matters and upon the conditions set out herein and shall not be construed to be the
granting of or a right to any waiver to any other matter. Nothing in this letter shall otherwise affect the rights of any Finance Party. 

  

	 	(b)	Save as expressly amended by this letter, the provisions of the Finance Documents remain in full force and effect. 

 

	8.	REPRESENTATIONS 

 Each
Obligor makes the representations and warranties set out in clause 21 (Representations) of the Facility Agreement to each Finance Party on the date of its respective countersignature of this letter (by reference to the facts and circumstances
then existing). 
  

	9.	FINANCE DOCUMENT 

 This
letter is, subject only to the Borrower’s countersignature hereof, hereby designated a Finance Document. 
  

	10.	EXTENSION FEE 

 The
Borrower shall pay to the Arranger a fee of 1.25 per cent of the Total Commitments, payable on the day falling 10 days after the Effective Date. 

  
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	11.	COST AND EXPENSES 

 The
Borrower shall within five Business Days of demand by the Agent pay to each Finance Party the amount of all costs and expenses (including without limitation all taxes (including stamp tax), fees or other charges and all fees and expenses of
(i) any external advisers and (ii) that Finance Party) reasonably incurred by any of them in connection with the negotiation, preparation, printing, delivery, perfection and execution of this letter. 

 

	12.	MISCELLANEOUS 

  

	 	(a)	Please indicate your acceptance of the provisions hereof by countersigning a copy of this letter and returning it to Ruth Schneider at UniCredit Bank AG, Arabellastr.
14, 81925 Munich, Germany before close of business in Munich on 31October 2012. The offers set out in this letter shall terminate on that date. 

  

	 	(b)	Changes and amendment to this letter shall be made in writing. This also applies to this paragraph 12 (b). 

 

	 	(c)	Nothing in this letter shall be deemed as releasing the Borrower from any of its obligations under the Finance Documents, which shall apply at all times.

  

	 	(d)	This letter may be executed in any number of counterparts and this shall have the same effect as if the signature on the counterparts were on a single copy of this
letter. 

  

	 	(e)	Service of process 

  

	 	(i)	Without prejudice to any other mode of service allowed under any relevant law, the Ultimate Parent irrevocably appoints the Borrower as its agent for service of process
in relation to any proceedings before the courts of Frankfurt/Main, Federal Republic of Germany in connection with this letter and agrees that failure by the process agent to notify it of the process will not invalidate the proceedings concerned.

  

	 	(ii)	If any person appointed as process agent is unable for any reason to act as agent for service of process the Borrower (on behalf of the Ultimate Parent) must
immediately (and in any event within 30 days of such event taking place) appoint another agent on terms acceptable to the Security Agent. Failing this, the Security Agent may appoint another agent for this purpose. 

 

	 	(f)	The provisions of Clause 42 (Jurisdiction) of the Facility Agreement shall be incorporated into this letter as if set out in full in this letter and if
references therein to “this Agreement” are references to this letter. 

  
 - 6 -

	 	(g)	This letter and any non-contractual obligations arising out of or in connection with it are governed by German law. 

  
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	Yours faithfully
	
	/s/ Simon Tutt            /s/ Ruth Schneider
	For and on behalf of

 UniCredit Bank AG 
 in its capacity as Arranger, Agent and Security Agent, Original Lender and Issuing Bank 
  

							
		 		 		 	For and on behalf of
		 		 		 	Zellstoff- und Papierfabrik Rosenthal GmbH
				
	Blankenstein, October 8, 2012	 		 		 	 /s/ Leonhard Nossol

				
		 		 		 	 For and on behalf of

D&Z Holding GmbH

				
	Blankenstein, October 8, 2012 	 		 		 	 /s/ Leonhard Nossol

				
		 		 		 	 For and on behalf of

D&Z Beteiligungs GmbH

				
	Blankenstein, October 8, 2012 	 		 		 	 /s/ Leonhard Nossol

				
		 		 		 	 For and on behalf of
 ZPR
Logistik GmbH

				
	Blankenstein, October 8, 2012	 		 		 	 /s/ Leonhard Nossol

				
		 		 		 	 For and on behalf of

Mercer International Inc.

				
	Vancouver, October 16, 2012 	 		 		 	 /s/ David M. Gandossi

  
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