Document:

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                                                                   EXHIBIT 10(u)

                              BIG LOTS STORES, INC.

                    SUPPLEMENTAL DEFINED BENEFIT PENSION PLAN

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                                 BIG LOTS, INC.

                    SUPPLEMENTAL DEFINED BENEFIT PENSION PLAN

                                    PREAMBLE

Effective January 1, 1996, Consolidated Stores Corporation adopted the
Consolidated Stores Corporation Supplemental Defined Benefit Pension Plan, for a
select group of highly compensated employees to ensure that the overall
retirement pension benefit said group of highly compensated employees would
receive would be equal to what the benefit would have been had the Consolidated
Stores Corporation Defined Benefit Pension Plan not been amended to freeze said
employees' accrued retirement pension benefits.

Effective January 1, 2001, the name of the Company changed to Big Lots Stores,
Inc. and effective as of such date the name of this Plan changed to the Big Lots
Stores Supplemental Defined Benefit Pension Plan.

Effective as of January 1, 2003, the Plan is again amended and restarted in its
entirety to incorporate certain administrative changes, including the Plan name
change.

This Plan is an unfunded, supplemental executive deferred compensation plan
structured to benefit such employees described above in a manner that provides
said employees full pension benefits and that provides the incentive for said
employees to improve the profitability, competitiveness and growth of Big Lots,
Inc. and its affiliates.

                                       -1-

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                                    ARTICLE I

                                   DEFINITIONS

1.1      "Basic Retirement Plan" means the Big Lots Stores Defined Benefit
         Pension Plan, as amended and restated effective as of January 1, 1997,
         with further amendments through January 1, 2002.

1.2      "Basic Retirement Benefit" means the annual benefit to which a
         Participant is entitled from the Basic Retirement Plan, in the form of
         a single life annuity commencing on his Retirement Date and ending on
         the first day of the month during which his death occurs. The Basic
         Retirement Plan Benefit assumes immediate commencement of benefits with
         applicable early payment reductions as may be applied under the Basic
         Retirement Pan.

1.3      "Beneficiary" means the person, persons or entity designated by the
         Participant to receive any benefits payable under the Plan.

1.4      "Change in Control" shall have the same meaning as prescribed in
         Section 5.2.

1.5      "Committee" means the three individuals serving as the Chief Executive
         Officer, the Chief Financial Officer and the Executive Vice President,
         Human Resources of the Company. The Committee is authorized to
         establish Plan policy and review Plan discretionary decisions pursuant
         to the terms of this Plan.

1.6      "Company" means, as of May 16, 2001, Big Lots Stores, Inc., an Ohio
         corporation. Previous to May 16, 2001, Company means Consolidated
         Stores Corporation, a Delaware corporation.

1.7      "Compensation" means remuneration in the form described in Section
         1.10(a) of the Basic Retirement Plan.

1.8      "Credited Service" means service as defined in Section 1.31(b) of the
         Basic Retirement Plan.

1.9      "Effective Date" means January 1, 2002, the effective date of this
         amended and restated Plan.

1.10     "Employer" means the Company and/or an applicable participating Related
         Company or any successor to the business thereof.

1.11     "Final Average Compensation" means the average monthly Compensation of
         a Participant as defined in Section 1.10(b) of the Basic Retirement
         Plan.

1.12     "Participant" means any individual who is eligible to participate in
         this Plan pursuant to Article II of this Plan.

                                       -2-

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1.13     "Plan" means the Consolidated Stores Supplemental Defined Benefit
         Pension Plan, the terms of which are set forth herein, as it may be
         amended from time to time. Effective May 16, 2001, Plan means the Big
         Lots Stores Supplemental Defined Benefit Pension Plan.

1.14     "Plan Administrator" means the Company, notwithstanding the fact that
         certain administrative functions under or with respect to this Plan
         have been delegated to the Committee pursuant to the provisions of
         Article VII of this Plan.

1.15     "Related Company" means:

         (a) any corporation included within a `controlled group of corporation"
             of which the Company is a member, as determined under Code Section
             414(b) and (m) and Regulations issued pursuant thereto (except
             that, with respect to the benefit limitation under Section 1 of
             Schedule II of the Basic Retirement Plan, such determination will
             be made after substituting the phrase "more than fifty percent
             (50%)" for the phrase "at least eighty percent (80%)" each place it
             appears in Code Section 1563(a)(1)); and any partnership, sole
             proprietorship, trust, estate, or corporation included within

                  i.       a parent-subsidiary group of trades of businesses
                           under common control,

                  ii.      a brother-sister group of trades or businesses under
                           common control, or

                  iii.     a combined group of trades or businesses under common
                           control, as determined under Code Section 414(c) and
                           Regulations issued pursuant thereto.

         (b) any other entity designated as a Related Company by the Company.

1.16     "Retirement Date" means that date a Participant is otherwise eligible
         to retire under the terms of the Basic Retirement Plan

1.17     "Supplemental Retirement Benefit" or "Supplement Benefit" means the
         annual benefit payable in accordance with the terms of this Plan.

                                       -3-

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                                   ARTICLE II

                                  PARTICIPATION

2.1      An Employee of the Employer who is a participant in the Basic
         Retirement Plan shall be eligible to participate in this Plan provided
         the following conditions have been met:

         (a) the Employee was an active participant in the Basic Retirement Plan
             on December 31, 1996; and

         (b) the Employee was a `highly compensated employee' on December 31,
             1996, as that term is defined in Code Section 414(q) as of December
             31, 1996.

2.2      An existing Employee of the Employer who was not a `highly compensated
         employee' on December 31, 1995, who subsequently becomes a `highly
         compensated employee' (as that term is defined in Code Section 414(q)
         for the Plan Year in which the determination is made) shall become a
         Participant in this Plan.

2.3      Notwithstanding any other provision of this Plan to the contrary, any
         other Employee of the Employer who is hired after March 31, 1994 or who
         is rehired after his prior service has been forfeited under Section
         3.4(c) of the Basic Retirement Plan, and who, as a result, is not
         eligible to become a participant in the Basic Retirement Plan shall be
         not eligible to participate in this Plan.

                                       -4-

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                                   ARTICLE III

                     ELIGIBILITY FOR AND AMOUNT OF BENEFITS

3.1      Each Participant who is eligible to retire under the terms of the Basic
         Retirement Plan and who has met the eligibility requirements of this
         Plan pursuant to Article II shall be entitled to receive a monthly
         Supplemental Pension, in the normal form of payment, as described in
         Section 7.1 of the Basic Retirement Plan, in an amount equal to:

               (a) one percent (1%) of a Participant's Final Average
                   Compensation multiplied by the Participant's Credited Service
                   (not to exceed 25 years) minus

               (b) the greater of (1) or (2) below where:

                        (1) is the accrued retirement pension of the Participant
                            as determined under the Basic Retirement Plan in
                            effect as of December 31, 1995, assuming the
                            Participant terminated employment with the Company
                            on March 31, 1996 or such later date that the
                            Participant was determined to be a Highly
                            Compensated Employee under the terms of the Basic
                            Retirement Plan.

                        (2) is the accrued retirement pension of the Participant
                            as determined under Section 5.1 of the Basic
                            Retirement Plan as in effect on December 31, 1995,
                            without regard to Section 5.1(c) of the Basic
                            Retirement Plan.

3.2      An Employee who becomes a Participant in this Plan shall remain a
         Participant until his termination of employment with the Company. To
         the extent a Participant is not entitled to a vested accrued retirement
         pension under the terms of the Basic Retirement Plan upon termination
         of employment with the Company other than by reason of death,
         disability, or retirement (as those terms are described and used in the
         Basic Retirement Plan), neither the Participant nor any Beneficiary nor
         any other person shall have a right to any benefit from this Plan with
         respect to such Participant.

                                       -5-

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                                   ARTICLE IV

                        FORM AND COMMENCEMENT OF BENEFITS

4.1      Supplemental Plan Benefits payable to a Participant or Beneficiary
         pursuant to Article III shall be payable in the same form and manner as
         is applicable to the Basic Retirement Plan Benefit payable to the
         Participant or Beneficiary under the Basic Retirement Plan. If a Basic
         Retirement Plan Benefit is payable as described in Section 7.1 of the
         Basic Retirement Plan, then his Supplemental Plan Benefit shall be
         subject to adjustment by the same reduction factors as are applicable
         under the Basic Retirement Plan with respect to the Basic Retirement
         Plan Benefit of the Participant.

4.2      A Supplemental Plan Benefit payable to a Participant or Beneficiary
         pursuant to this Plan shall commence on the same date as benefits
         commence to the Participant or Beneficiary pursuant to the terms of the
         Basic Retirement Plan.

4.3      The death benefit payable to the Beneficiary(ies) of a deceased
         eligible Participant shall be either (a) or (b) below, minus (c) below:

               (a) a lump sum amount equal to the actuarial equivalent (as that
                   term is defined in Section 1.1 of the Basic Retirement Plan
                   as of the date of the Participant's death) of the
                   Participant's accrued Supplemental Plan Benefit, reduced for
                   early payment as described in Section 5.2 of the Basic
                   Retirement Plan, and computed on the assumption that the
                   Participant had separated from employment with the Company on
                   his date of death, survived to the earliest retirement age
                   under the Plan and died on the day after that earliest
                   retirement age; or

               (b) a monthly life annuity that is the survivorship portion of
                   the qualified joint and survivor annuity as defined in
                   Section 7.2 of the Basic Retirement Plan, assuming that the
                   Participant had separated from employment with the Company on
                   his date of death, survived to the earliest retirement age
                   under the Plan and died on the day after that earliest
                   retirement age;

               (c) the death benefit determined and payable pursuant to Section
                   6.1 of the Basic Retirement Plan.

4.4      The designation of Beneficiary(ies) and the manner of payment shall be
         as described in Article VI of the Basic Retirement Plan.

                                       -6-

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                                    ARTICLE V

                            AMENDMENT AND TERMINATION

5.1      The Company intends the Plan to be permanent but reserves the right to
         amend or terminate the Plan when, in it sole discretion, such amendment
         or termination is advisable. Any such amendment or termination shall be
         made pursuant to a resolution of the board of directors of the Company
         and shall be effective as of the date of such resolution. No amendment
         or termination of the Plan shall directly or indirectly deprive any
         Participant or Beneficiary of any portion of any Supplemental Plan
         Benefit payment that has commenced prior to the effective date of the
         resolution amending or terminating the Plan.

5.2      In the event of Change in Control of the Company, the Committee may
         effect immediate lump sum payment of the accrued Supplemental Plan
         Benefit to applicable Participants. For purposes of this Section 5.2,
         "Change in Control" means:

               (a) any person or group (as defined in Section 13(d) of the
                   Securities Exchange Act of 1934) other than the Company or
                   its affiliates becomes the beneficial owner of, or has the
                   right to acquire (by contract, warrant, option, conversion of
                   convertible securities or otherwise), twenty percent (20%) or
                   more of the outstanding equity securities of Big Lots Stores,
                   Inc, an Ohio corporation, entitled to vote for the election
                   of directors;

               (b) a majority of the board of directors of the Company is
                   replace within any period of two years or less by directors
                   not approved by a majority of the directors of the Company in
                   office at the beginning of such period (or their successors
                   so approved), or a majority of the board of directors of the
                   Company at any date consists of persons not so approved; or

               (c) the stockholders of the Company approve an agreement to merge
                   or consolidate the Company with another corporation other
                   than the Company or an affiliate thereof or an agreement to
                   sell or otherwise dispose of all or substantially all of the
                   Company's assets to an entity other than the Company or an
                   affiliate thereof.

                                       -7-

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                                   ARTICLE VI

                                   COMMITTEE

6.1      The Committee of this Plan, which shall be the same committee that
         administers the Big Lots Stores, Inc. Defined Benefit Pension Plan,
         shall administer this Plan in accordance with the intention of the
         board of directors of the Company as expressed herein.

6.2      No Committee member at any time hereunder who is a Participant shall
         have any vote in any decision of the Committee made primarily with
         respect to such Committee member of such member's benefits hereunder.
         All actions of the Committee may be taken with or without a meeting and
         shall be in writing and signed by a majority of the members of the
         Committee.

                                       -8-

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                                   ARTICLE VII

                                 ADMINISTRATION

7.1      The Committee as described in Article VI which is the same committee
         that oversees the administrative functions under the Big Lots Stores,
         Inc. Defined Benefit Pension Plan shall have the primary administrative
         responsibility with respect to this Plan. All policy and discretionary
         decisions as well as administrative decisions shall be the
         responsibility of the Committee and they shall be made in conjunction
         with and not inconsistent with the policy and administrative decisions
         made by the Committee as they relate to the Big Lots Stores, Inc.
         Defined Benefit Pension Plan. The Committee shall interpret the
         provisions of the Plan where necessary and follow procedures for the
         administration of the Plan that are consistent with the provisions of
         the Basic Retirement Plan.

7.2      Expenses incurred by the Committee and the Plan Administrator in the
         administration of the Plan, including the fees and compensation of
         suitors, actuaries, accountants, legal counsel and other counsel
         retained by the Committee to carry out the intent and purpose of this
         Plan, shall be paid by the Company and/or applicable Employer.

7.3      The Committee shall keep such records as are reasonably needed to
         effectuate the purposes of the Plan. Any forms needed to carry out the
         provisions of this Plan shall be established and maintained by the Plan
         Administrator.

7.4      All determinations made by the Committee regarding the purpose and
         intent of this Plan as well as the benefits payable under this Plan,
         eligibility to participate, etc., shall be made in the sole and
         absolute discretion of the Committee. Such decisions shall be binding
         on all Participants, Beneficiaries, successors, assigns, executors,
         administrators, heirs, next-of-kin, and distributes of all the
         foregoing.

7.5      Except as provided by law, no benefit, payment or distribution under
         this Plan shall be subject either to the claim of any creditor of a
         Participant or Beneficiary, or to attachment, garnishment, levy,
         execution or other legal or equitable process, by any creditor of such
         Participant. No such Participant shall have any right to alienate,
         commute, anticipate or assign all or any portion of any benefit,
         payment or distribution under this Plan.

                                       -9-

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                                  ARTICLE VIII

                        PARTICIPATING RELATED COMPANIES

8.1      Any Employer that is a Related Company and that is authorized by the
         board of directors of the Company to participate in this Plan may elect
         to participate by action of its own board of directors and by entering
         into an agreement, a copy of which shall be attached hereto and made a
         part of this Plan.

8.2      the Company may, at any time and in its discretion, determine to
         exclude any Employer from this Plan. Any Employer may similarly elect
         to withdraw its participation at any time after the expiration of the
         sixty (60) day period immediately following receipt by the Plan
         Administrator of the Employer's written intention to withdraw.

8.3      A sale or liquidation of an Employer by the Company such that the
         Company no longer owns 50% of such Employer, or the Employer is
         liquidated, the Company shall assume payment of such Employer's
         remaining obligations and liabilities under this Plan.

                                      -10-

<PAGE>

                                   ARTICLE IX

                            MISCELLANEOUS PROVISIONS

9.1      Nothing contained herein shall require the Company or any Employer to
         continue any Participant in its employ, or require any Participant to
         continue in the employ of the Company or any Employer, nor does the
         Plan create any rights or any Participant or Beneficiary or any
         obligations on the part of the Company or any Employer other than those
         set forth herein. The benefits payable under this Plan shall be
         independent of, and in addition to, an y other employment agreements
         that may exist from time to time concerning any other compensation of
         benefits payable by the Company.

9.2      The sole interest of each Participant and each Beneficiary under this
         Plan shall be to receive the deferred compensation benefits provided
         herein as and when the same shall become due and payable in accordance
         with the terms hereof; and, neither any Participant nor any Beneficiary
         shall have any right, title or interest (legal or equitable) in or to
         any of the specific property or assets of the Company or any
         participating Employer. All benefits hereunder shall be paid solely
         from the general assets of the Company or applicable Employers and no
         Employer shall maintain any separate fund or other separated assets to
         provide any benefits hereunder. In no manner shall any property of any
         Participant or Beneficiary be used as collateral security for the
         performance of the obligations imposed by this Plan on the Company or
         any Employer. The rights of a Participant or Beneficiary hereunder
         shall be solely those of an unfunded and unsecured creditor in respect
         to the promise of the Company or Employer to make contributions to the
         Plan or to pay benefits to the Participant or Beneficiary in the
         future.

9.3      Notwithstanding any provisions of the Plan to the contrary, the Company
         or any Employer may in its sole and absolute discretion determine and
         offset any amount to be paid to a Participant under the Plan against
         any amount that such Participant may owe to such Employer.

9.4      All benefit payments made under this Plan to any Participant or
         Beneficiary shall be subject to applicable withholding and to such
         other deductions as shall at the time of such payment be required under
         applicable federal, state, or local law. Determinations by the Plan
         Administrator as to withholding shall be bonding on the Participant and
         Beneficiary(ies).

                                      -11-

<PAGE>

                                    ARTICLE X

                               GENERAL PROVISIONS

10.1     This Plan shall constitute a plan that is unfounded and that is
         maintained primarily for the purpose of providing deferred compensation
         in the form of retirement benefit for a select group of highly
         compensated employees, as determined by the board of directors of the
         Company in its sole and absolute discretion.

10.2     The laws of the State of Ohio shall be the controlling state law in all
         matters relating to the Plan and shall apply to the extent that the
         Plan is not preempted by any law of the United States of America.

10.3     If any provision of this Plan is held invalid or unenforceable, such
         invalidity or unenforceability shall not affect any other provisions
         hereof and this Plan shall be construed and enforced as if such
         provision had not been included.

IN WITNESS WHEREOF, the Company has caused the Plan to be signed, adopted and
dated this 26th day of March, 2004.

                             BIG LOTS STORES, INC.

                             By: /s/ Albert J. Bell
                                --------------------------
                             Title: Vice Chairman & Chief Administrative Officer

(Corporate Seal)

/s/ Charles W. Haubiel II
-----------------------------
Attest:

Vice President, General Counsel & Corporate Secretary
Title:

                                      -12-Exhibit 10(A)

 

Exhibit 10(a)

SECOND AMENDED AND RESTATED

LOAN PARTICIPATION AGREEMENT

     This Second Amended and Restated Loan Participation Agreement (this
“Agreement”) is made and entered into as of March 30, 2004, between The
Huntington National Bank (“Transferor”) and Huntington Preferred Capital
Holdings, Inc., an Indiana corporation (“Transferee”).

RECITALS

     A. The parties have previously entered into a certain Amended and Restated
Loan Participation Agreement, dated as of May 12, 2003 (the “Original
Agreement”), whereby Transferor has transferred and will continue to transfer
to Transferee participation interests in certain loans (the “Loans”) made by
Transferor or an affiliate of Transferor to various borrowers (collectively,
the “Borrowers”), as such Loans have been and may be identified from time to
time by Transferor pursuant to Section 2 below, or substituted for other Loans
previously transferred by Transferor to Transferee, pursuant to such Section 2.

     B. The parties desire to amend and restate the Original Agreement.

AGREEMENT

     1. Definitions.

          (a) “Loan Documents” shall mean any and all loan agreements evidencing or
otherwise relating to any of the Loans, together with any and all commitment
letters, promissory notes, real estate mortgages, assignments and security
agreements, financing statements, pledge agreements, letters of credit,
applications and agreements for standby letters of credit, letter of credit
reimbursement agreements, subordination agreements, waivers, affidavits, fire
and extended coverage insurance policies, guarantees, title insurance policies,
applications, reports, surveys, documents required to be maintained by lenders
pursuant to any applicable federal or state regulations, any and all
amendments, modifications or supplements to any of the foregoing from time to
time, and all other relevant documents pertaining to any of the Loans.

          (b) “Collateral” shall mean the real property, fixtures, equipment,
inventory, accounts, chattel paper, instruments, documents, general
intangibles, securities and all other property and property rights in which
Transferor has been granted a mortgage, lien or security interest in connection
with any of the Loans.

          (c) “Origination Fees” shall mean the origination, commitment, or other
fees collected at the time of origination of a particular Loan.

          (d) “Participation” and “Participation Interest” shall mean the interest
of Transferee in the Loans and in the associated Origination Fees, equal to up
to a one hundred percent (100%) interest in each of the Loans and associated
Origination Fees.

 

 

          (e) “Participation Share,” “Pro Rata Share,” “pro rata,” and “ratably”
shall mean a share in the same proportion as the respective percentage
ownership interests of Transferor and Transferee in the Loans and associated
Origination Fees.

     2. Transfer of Participation Interests; Substitution of Interests.

          (a) Transferee shall from time to time buy from Transferor or from an
affiliate of Transferor, without recourse, a continuing undivided fractional
Participation Interest, and Transferor shall from time to time sell to
Transferee, or cause an affiliate or affiliates of Transferor to sell to
Transferee, such Participation Interests. The purchase price for a particular
Participation Interest transferred shall be Transferee’s Participation Share of
Transferor’s carrying value for the Loan, which is the outstanding principal
balance of the Loan and interest earned thereon but not collected, net of
unearned income, if any, less an allowance for loan losses. Transfers of
Participation Interests by Transferor or an affiliate of Transferor to
Transferee hereunder may, upon the mutual agreement of the parties at the time
any such transfers are made, be made (i) as additional contributions to the
capital of Transferee, (ii) in exchange for the payment of cash by Transferee
to Transferor or appropriate affiliate of Transferor, (iii) in consideration of
the issuance to Transferor or appropriate affiliate of Transferor of shares of
the capital stock of Transferee, or (iv) for such other consideration as the
parties shall mutually agree.

          (b) At the time of any transfer of a Participation Interest, Transferor
will assign to Transferee, without recourse, Transferee’s Participation Share
of Transferor’s beneficial right, title and interest in the Loans and
associated Origination Fees, including any Collateral for the Loans, and any
uncollected payments or collections on account of the Loans. Transferor shall
hold title to the Loans, including any Collateral payments and collections as
agent for Transferee.

          (c) Upon the mutual agreement of the parties, Transferor may from time to
time substitute a Participation Interest in a Loan or group of Loans and the
associated Origination Fees (the “New Loans”) having a fair market value (as
determined by the mutual agreement of the parties) equivalent to the
Participation Interest in a Loan or group of Loans and the associated
Origination Fees previously transferred to Transferee hereunder (the “Old
Loans”), whereupon the Participation Interest previously granted by Transferor
to Transferee in the Old Loans will be canceled and Transferee shall have a
Participation Interest in the New Loans. Such a substitution may be made as
part of a purchase or other transfer of additional Participation Interests in
accordance with paragraph (a) above. Any amounts payable by Transferor to
Transferee hereunder on account of the Old Loans, prorated through the date of
the substitution, shall be paid by Transferor to Transferee at the time of such
substitution.

          (d) Each of the Loans which shall be subject to this Agreement shall be
(i) identified on a completed “Certificate of Participation” in the form of
Exhibit A attached hereto, which shall be delivered by Transferor to Transferee
and shall contain at least the name of each Borrower, the date of the
promissory note evidencing each Loan, the original principal amount of each
Loan, the amount of any associated Origination Fees, and the purchase price
associated

-2-

 

with the same; or (ii) otherwise identified electronically or in the loan
files for the Loans, in a manner that is mutually agreeable to Transferor and
Transferee and sufficient to properly identify the Loans.

     3. Representations and Warranties. At the time of transfer of
Participation Interests to Transferee, Transferor represents and warrants that
Transferor has good title to the Loans and has full right, power, and authority
to grant and convey the Participation in the Loans provided for herein to
Transferee, and, at the time of transfer of Participation Interests to
Transferee, the Loans are free and clear of all encumbrances or other interests
of any other person.

     4. Transferee’s Risk. Transferee acknowledges and agrees that Transferor
has made no representation or warranty and has no responsibility as to: (i)
the collectibility of the Loans; (ii) the Borrowers’ creditworthiness or
financial condition; (iii) the legality, validity, binding effect or
enforceability of the Loan Documents; (iv) the filing, recording or taking of
any other action with respect to the Loan Documents; (v) any other matter
having any relation to the Loans, the Loan Documents, this Agreement, the
Borrowers, or any other person or entity except as otherwise specifically set
forth herein. Transferee acknowledges that Transferor has made available to it
copies of the Loan Documents requested by Transferee. Transferee acknowledges
and agrees that it has made its own independent investigation and determination
with respect to the foregoing matters and accepts full responsibility therefor.
The sale of the Participation Interests by Transferor to Transferee pursuant
to this Agreement shall be and is without recourse of any nature.

     5. Custody and Ownership of Loan Documents and Collateral. Transferor
shall have and maintain physical possession of all the Loan Documents and
Collateral, to the extent that possession is necessary to perfect a security
interest in any Collateral. Transferor shall use reasonable care to safeguard
and protect the Loan Documents and Collateral. Transferor is authorized to
deal with the Loans in Transferor’s own name, subject to the terms and
conditions of this Agreement, and, as far as third parties are concerned, to
act on behalf of Transferee as though Transferor were the sole owner of the
Loans; provided, however, that all of Transferor’s actions with respect to the
Loans will be subject to this Agreement.

     6. Nature of Transferee’s Participation Interest. Transferee’s
obligations hereunder constitute absolute, unconditional and continuing
obligations to make funds or credit available to Transferor for Transferor to
extend credit to any of the Borrowers and pay letters of credit issued for the
account of any of the Borrowers pursuant to the terms of the Loan Documents and
will be unaffected by (i) any amendment or waiver of any term of the Loan
Documents, (ii) any extension, overadvance, indulgence, settlement or
compromise granted or agreed to in relation to the Loan Documents, (iii) the
release of any Collateral or any guaranty of the Loans, (iv) any invalidity,
unenforceability, or insufficiency of the Loan Documents or of any drafts or
other documents submitted in connection with draws under any letters of credit,
(v) any default by or insolvency of any of the Borrowers, (vi) any act or
omission on Transferor’s part relating to this Agreement or the Loan Documents
(absent gross negligence or willful misconduct), (vii) the absence of notice to
Transferee of any of the foregoing, (viii) any requirement that Transferor take
any action against any of the Borrowers or any other person liable on the
Loans, and (ix) any defenses in law or equity which Transferee may have to the
full discharge of its obligation under this Agreement (absent gross negligence
or willful misconduct by Transferor).

-3-

 

     7. Servicing of the Loans. Transferor shall service the Loans on behalf
of both Transferee and Transferor as follows:

          (a) Except as otherwise specifically set forth in this Agreement,
Transferor will perform the servicing for the Loans or will cause an affiliate
of Transferor to service the Loans in a manner substantially the same as for
similar work performed by Transferor on its own behalf. For this purpose,
servicing shall include all communications with any of the Borrowers and third
parties, making of all advances and issuing of letters of credit provided for
under the Loan Documents (subject to receipt from Transferee of its
Participation Share of each such advance), receipt of all collections under the
Loans and remittance of the same to the party entitled thereto, inspections of
the Collateral, and all other acts incidental thereto. Transferor shall use
good faith efforts, or shall cause its affiliate to use good faith efforts, to
collect all payments due under the Loans as they become due and payable and to
enforce all obligations of the Borrowers to the extent necessary to protect the
interests of Transferor and Transferee. Transferor shall administer all Loan
collections, including any escrows, in accordance with all applicable laws and
regulations. Transferee agrees that such funds may be commingled with
Transferor’s general funds.

          (b) Transferor shall have the right, in the exercise of its reasonable
discretion and in accordance with prudent banking practices, to give consents,
waivers and modifications of the Loan Documents to the same extent as if the
Loans were wholly-owned by Transferor; provided, however, that Transferor shall
not grant or agree to any (i) waiver of any payment default, (ii) extension of
the maturity, (iii) reduction of the rate or rates of interest with respect to
the Loans, (iv) forgiveness or reduction of the principal sum of the Loans, (v)
increase in the lending formula or advance rates, and (vi) waiver of any right
to elect to foreclose on any Loan in default, and (vii) amendment or
modification of the financial covenants contained in the Loan Documents that
would make such financial covenants less restrictive with respect to any of the
Borrowers without the prior written consent of Transferee, except that
Transferor shall be permitted to grant or agree to any of such consents,
waivers or modifications pursuant to and in accordance with guidelines and
limitations provided by Transferee to Transferor in writing from time to time.
Transferor shall have the right to accept payment or prepayment of the whole
principal sum and accrued interest in accordance with the terms of the Loans,
waive prepayment charges in accordance with Transferor’s policy for Loans in
which no participation is granted, and accept additional security for the
Loans.

          (c) On or before the date of execution of the Loan Documents, with respect
to the principal sums already advanced and outstanding pursuant to the Loans as
of such date, and on or before any later date when funds are to be disbursed to
any of the Borrowers pursuant to the Loans or a drawing occurs under any letter
of credit, Transferee shall pay to Transferor its pro rata share, in accordance
with its Participation Interest, of the amount of the disbursement or letter of
credit payment (or, with respect to principal sums already advanced and
outstanding as of the date of the execution of the Loan Documents, the
aggregate principal balance of the Loans as of such date), in funds available
for immediate use, by 2:00 p.m., Columbus, Ohio, time, on the same banking day
on which the advance is made (or, with respect to the principal sums already
advanced and outstanding pursuant to the Loan Documents as of the date of the

-4-

 

execution of the Loan Documents, provided, however, that Transferor shall
use its best efforts to give Transferee advance notice of such funding request
no later than 10:00 a.m., Columbus, Ohio, time, on such day. If Transferee
fails or refuses to make payment to Transferor as required herein, then
Transferor, without limitation, shall be entitled to pursue all remedies and
rights permitted by this Agreement, law, or equity against Transferee and
further shall be entitled to, but not be required to, (i) fund Transferee’s Pro
Rata Share of the disbursement, and (ii) accrue interest on any unpaid amount
at the Federal Funds Rate, and (iii) withhold from Transferee all interest,
principal, fees and late charges attributable to Transferee’s Pro Rata Share
thereof through the date Transferee funds its Pro Rata Share thereof and pays
the interest due thereon, plus any additional cost or expense, including
without limitation, reasonable attorneys’ fees, incurred by Transferor as a
result of Transferee’s failure to pay, and (iv) offset against Transferee’s Pro
Rata Share all sums received by Transferor in connection with the Loans until
reimbursed by Transferee for such payment and interest thereon. All payments
received by Transferor in respect of the Loans shall be distributed pro rata to
Transferee promptly after Transferor shall have collected such payment or
payments in immediately available funds.

          (d) Transferor and Transferee shall share in proportion to their
Participation Shares in all payments of principal and interest made on the
Loans after the date of transfer of the Participation Interests. Transferor
and Transferee shall share in any prepayment, late charges, or any other fees
or charges associated with the Loans which are actually collected subsequent to
the time of transfer of the associated Participation Interest, in proportion to
their Participation Shares, unless otherwise provided in the servicing fee
arrangement referenced in paragraph 7(h). Transferor shall not be required to
remit any such principal, interest, prepayment, late charge, or any other fee
or charge associated with the Loans, unless it is actually collected from the
Borrowers.

          (e) To the extent not reimbursed by the Borrowers, and without limiting
the obligation of the Borrowers to do so, Transferee agrees to reimburse
Transferor, to the extent of Transferee’s pro rata share, for any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind whatsoever, including
without limitation disbursements necessary in the judgment of Transferor to
preserve or protect any Collateral (but excluding costs of ordinary overhead
and salaried expense of Transferor’s clerical and supervisory personnel), that
may at any time be imposed on, incurred by, or asserted against Transferor in
any way relating to the Loans, the Loan Documents, any letters of credit issued
pursuant to the Loan Documents or the Loan Documents, any collateral, the
transactions contemplated thereby or hereby, or any action taken or omitted by
Transferor under or in connection with any of the foregoing provided, however,
that Transferee shall not be liable for the payment of any portion of the
foregoing which result directly from Transferor’s gross negligence or willful
misconduct. The covenants contained in this paragraph shall survive the
termination of this Agreement and the expiration of any letters of credit
issued pursuant to the Loan Documents.

          (f) Transferor shall at all times keep proper books and records in
accordance with generally accepted accounting principles consistently applied,
reflecting all transactions in connection with the Loans. All such records
shall be accessible for inspection by Transferee at all reasonable times during
Transferor’s business hours. Transferor shall use its best efforts to

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provide the following information to Transferee within a reasonable time
after such information becomes available to Transferor:

               (i) The accrual status of the Loans;

               (ii) The status of principal and interest payments;

               (iii) Financial statements of the Borrowers; and

               (iv) Information regarding the value of the Collateral and
the status of Transferor’s liens.

          (g) Transferor may accept deposits from, make Loans or otherwise extend
credit to any of the Borrowers and generally engage in any kind of banking
relationship with, any of the Borrowers or any other person or entity having
obligations relating to the Loans, the Loan Documents, or any related agreement
and receive payment on such Loans or extensions of credit and otherwise act
with respect thereto freely and without accountability in the same manner as if
this Agreement did not exist. Transferor, without liability, may rely upon the
advice of legal counsel, accountants or other experts (including those retained
by the Borrowers) and upon any written communication or any telephone
conversation which Transferor believes to be genuine and correct or to have
been signed, sent or made by the proper person or entity, shall not be required
to make any inquiry concerning the performance by the Borrowers or any other
person or entity of any of its obligations and liabilities to third parties or
under or in respect of the Loan Documents or the Loans, and shall have no
obligation to make any claim against, or assert any lien upon, any property
held by Transferor or to assert any offset.

          (h) In consideration of the performance of the loan servicing obligations
provided under this paragraph 7, Transferee shall pay to Transferor a loan
servicing fee. The amount and terms of such fee shall be determined by the
mutual agreement of the parties from time to time during the term of this
Agreement and shall be subject to review and adjustment at any time during the
term of this Agreement. Transferor shall provide to Transferee, on or before
the date that is ten days after the end of each month during the term of this
Agreement, a written statement specifying the amount of the servicing fee
payable for the preceding month and the basis for the calculation of such fee.
Transferor shall be entitled to deduct the amount of such fees from any and all
amounts otherwise due and payable by Transferor to Transferee from time to time
under the terms of this Agreement.

     8. Delinquency and Foreclosure. In the event of any default of any of the
Borrowers, which default shall be continuing for more than 30 days, Transferor
shall use its best efforts to give Transferee notice of such default.
Transferor may take such action as it deems advisable, including exercising
Transferee’s right to commence foreclosure actions or accept deeds in lieu of
foreclosure, pursuant to and in accordance with guidelines and limitations
provided by Transferee to Transferor in writing from time to time.
Notwithstanding the above, Transferor shall at all times take such action as
Transferee may recommend in writing to Transferor as necessary to protect the
interests of both Transferor and Transferee, including, but

-6-

 

not limited to, commencement of foreclosure actions or acceptance of deeds
in lieu of foreclosure.

     9. Participation Not a Security. Transferee represents and warrants to
Transferor that (i) Transferee does not consider the acquisition of its
Participation Interest hereunder to constitute the “purchase” or “sale” of a
“security” within the meaning of the Securities Act of l933, the Securities
Exchange Act of l934 or Rule l0b-5 promulgated thereunder, the Trust Indenture
Act of l939, the securities laws of the State of Ohio, any other applicable
securities statute or law, or any rule or regulations under any of the
foregoing, (ii) such Participation Interests constitute a commercial
transaction by Transferee with Transferor regarding Transferee’s Participation
Interests in the obligations of the Borrowers under the Loans and the
associated Origination Fees and do not represent an “investment” (as that term
is commonly understood) in Transferor or the Borrowers, (iii) Transferee is
purchasing its Participation Interests hereunder for its own account in respect
of a commercial transaction made in the ordinary course of its commercial
banking business and not with a view to or in connection with any subdivision,
resale, or distribution thereof, and (iv) Transferee is engaged in the business
of entering into commercial transactions (including transactions of the nature
contemplated herein and in the Loans), can bear the economic risk related to
the purchase of the same, and has had access to all information deemed
necessary by it in making its decision whether or not to purchase the same.

     10. Successors and Assigns. Transferor shall not assign this Agreement in
whole, but may assign to one or more participants all or part of Transferor’s
ownership interest in the Loans. Transferee shall have no right to assign or
further participate any of its Participation Interest to anyone other than a
subsidiary or other affiliate of Transferor or Transferee without the prior
written consent of Transferor. Except as otherwise provided herein, this
Agreement shall be binding upon and inure to the benefit of the respective
successors and assigns of the parties.

     11. Notices. All notices hereunder shall be in writing and shall be
personally delivered to the address or addresses of the party receiving the
notice or mailed to such party at such address or addresses by certified or
registered mail, return receipt requested, postage prepaid. Either party may
change its address or addresses for notices and designate or change the
location in which payments to such party will be made by a notice to the other
party. Notices which are mailed shall be deemed received by the addressee on
the third working day following the date of such mailing. Notices to
Transferor shall be addressed as follows:

	 
	The Huntington National Bank

	41 South High Street

	Columbus, Ohio 43287

	Attention: General Counsel

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Notices to Transferee shall be addressed to Transferee as follows:

	 
	Huntington Preferred Capital Holdings, Inc.

	201 North Illinois, Suite 1800

	Indianapolis, Indiana 46204

	Attention: President

     12. Relationship of Parties. With respect to the purchase and sale of
Participation Interests, Transferor and Transferee shall occupy the
relationship of buyer and seller of a property interest. There is not intended
hereby and shall not be construed to exist any fiduciary relationship between
Transferee and Transferor, or any partnership or joint venture between
Transferee and Transferor. With respect to servicing, Transferor shall be an
independent contractor of Transferee. In no event shall either party be
considered an agent or employee of the other party.

     13. Interpretation. This Agreement and the rights and obligations of the
respective parties hereunder shall be governed by and interpreted in accordance
with the laws of the State of Indiana.

     14. Amendments. This Agreement may not be amended, altered or modified
except by a written instrument signed by both the parties.

[signatures appear on the following page]

-8-

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date set forth above.

	 	 	 	 	 	 	 
	 	 	THE HUNTINGTON NATIONAL BANK
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ John D. Van Fleet	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	John D. Van Fleet, Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	HUNTINGTON PREFERRED CAPITAL HOLDINGS, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Cindy L. Keitch	 	 
	

	 	 	 	
 	 	 
	

	 	 	 	Cindy L. Keitch, President	 	 

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Exhibit A

Certificate of Participation

The Huntington National Bank

41 South High Street

Columbus, Ohio 43287

Date: _____________

Huntington Preferred Capital Holdings, Inc.

201 North Illinois, Suite 1800

Indianapolis, Indiana 46204

Attention: President

	 	 	 
	Re:

	 	Second Amended and Restated Loan Participation Agreement
between us dated as of March 30, 2004

Ladies and Gentlemen:

     Pursuant to the terms of the above-referenced Second Amended and Restated
Loan Participation Agreement, this will confirm that, as of this date, we have
transferred and assigned to you a certain undivided interest in the loan or
loans described in the attached schedule, which are hereafter to be subject to
the Second Amended and Restated Loan Participation Agreement.

     This Certificate of Participation is in addition to all previous
Certificates issued pursuant to the Second Amended and Restated Loan
Participation Agreement.

	 	 	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	

	 	
 	 	 
	

	 	Name:	 	 	 	 
	

	 	 	 	
 	 	 
	

	 	Title:	 	 	 	 
	

	 	 	 	
 	 	 

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Schedule

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Borrower
	 	Date of Note
	 	Principal Amount
	 	Amount of Origination Fees
	 	Purchase Price

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

-11-

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