Document:

EX-10.12

 

Exhibit 10.12

PURCHASE AND ASSUMPTION AGREEMENT

     This PURCHASE AND ASSUMPTION AGREEMENT (the “Agreement”) is made to be effective as of the
sixth day of June, 2007, between Ohio Legacy Bank N.A., a national banking association having its
principal office in Wooster, Ohio (the “Seller”), and The First Knox- National Bank of Mount
Vernon, a national banking association having its principal office in Mount Vernon, Ohio (the
“Purchaser”):

WITNESSETH:

     WHEREAS, the Seller desires, upon the terms and conditions hereinafter set forth, to sell and
assign certain assets and assign certain deposit and other liabilities of or associated with its
branch office located in Millersburg, Ohio (the “Branch”);

     WHEREAS, the Purchaser desires to purchase certain assets and assume certain deposit and other
liabilities of or associated with the Branch upon the terms and conditions hereinafter set forth;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements, covenants and
provisions contained herein, and for other good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

PURCHASE AND SALE OF ASSETS

     1.1 Time and Place of Closing. The closing of the transactions contemplated hereby
(the “Closing”) shall occur on September 21, 2007, provided that the Purchaser has received all
regulatory approvals necessary to consummate such transactions and all applicable statutory waiting
periods have expired on or before such date. In the event that the Purchaser has not received all
regulatory approvals necessary to consummate such transactions or all applicable statutory waiting
periods have not expired prior to September 21, 2007, the Closing shall occur on October 19, 2007,
or on such other date to be mutually agreed upon by the Purchaser and the Seller, which date shall
be after the receipt of all necessary regulatory approvals and the expiration of all applicable
statutory waiting periods, but in no event later than October 31, 2007. The effective time (the
“Effective Time”) shall be 5:00 p.m., local time, on the day on which the Closing occurs (the
“Closing Date”). The Closing shall be held at the offices of Critchfield, Critchfield & Johnston,
Ltd., 138 East Jackson Street, Millersburg, Ohio 44654 at 10:00 a.m., local time, or such other
time and location as the parties may agree.

     1.2 Purchase of Assets. The Seller agrees to sell, transfer, convey, assign and
deliver to the Purchaser, and the Purchaser shall purchase and receive from the Seller, the
following assets, properties and rights located at or attributed to the Branch (the “Assets”), free
and clear of all Liens (as hereafter defined):

	 	(a)	 	all loans of Seller administered at the Branch as of the Effective Time (the
“Loans”), together with all security thereon and collateral relating thereto and all

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	 	 	 	rights in relation thereto, then booked at or in respect of the Branch at their
respective then outstanding principal amounts, which shall reflect any writedowns
arising from adverse classifications, together with accrued interest receivables
thereon and associated accrued late fees (“Late Fees”), but excluding loan loss
reserves and general reserves; provided, however, the Loans shall not include: (i)
any credit card loans; (ii) any loans which are on a nonaccrual basis; (iii) any
loans which are 30 days or more past due; (iv) any accrued late fees that are not
collected by the Purchaser within 30 days after the Closing Date; (v) any loans on
Seller’s watch list; (vi) any loans as of the Effective Time in foreclosure; (vii)
any loans graded by Seller as “6” or higher (worse); (viii) any overdrafts that are
not collected by the Purchaser within 30 days after the Closing Date; (ix) any loans
not purchased pursuant to Section 7.1(e)(ii); and (x) any late fees not collected by
Purchaser within thirty (30) days of Closing Date shall be repurchased by Seller
provided Purchaser makes a claim for such within sixty (60) days of Closing.
Notwithstanding the foregoing, Purchaser will accept the “Russell Stevens Loan,” and
the “Ling” and “Luera Mountain Investment” Loans are subject to the option of
Purchaser to reject such loans at Closing or to accept such loans without recourse;

	 	(b)	 	all overdrafts associated with Deposit Liabilities (as hereafter defined)
transferred as contemplated under Section 1.4, provided that such overdrafts are less
than 30 days old as of the Effective Time;
	 
	 	(c)	 	all right, title and interest held by the Seller regarding the building,
improvements, and real estate associated with the operation of the Branch (the “Real
Property Lease”), together with any option to purchase the underlying real property and
leasehold improvements thereon, and all other rights, licenses, permits, and deposits
related to the Real Property Lease;
	 
	 	(d)	 	all right, title, and interest of Seller in and to any leases of tangible
personal property pertaining to or associated with the Branch, including but not
limited to, the personal property as listed on Schedule 1.2(d) (the “Personal Property
Leases”);
	 
	 	(e)	 	all equipment, personal property, furniture and fixtures, together with any
manufacturers’ warranties or maintenance or service agreements related thereto which
are in effect as of the Effective Time and are assignable to the Purchaser, located at
or used in operation of the Branch, including but not limited to the items listed on
attached Schedule 1.2(e) (the “Fixed Assets”). The Fixed Assets sold shall not include
any items listed on Schedule 1.3(c);
	 
	 	(f)	 	all petty cash, teller cash, ATM cash, cash and vault cash maintained at the
Branch as of the Effective Time, the exact amounts of which will be certified by the
Seller at Closing;
	 
	 	(g)	 	all safe deposit contracts and leases for the safe deposit boxes located at the
Branch as of the Effective Time along with all safe deposit stacks in the vaults

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	 	 	 	and all keys and combination codes thereto and all prepaid rent for any safe deposit
contracts;

	 	(h)	 	all records and original documents (if available), combinations, manuals, keys,
security codes and the like related to the Assets or the Deposit Liabilities as of the
Effective Time;
	 
	 	(i)	 	All of the books and records (or copies thereof) relating to the Branch which
(i) are maintained in the ordinary course of business at the Branch, (ii) are
reasonably required to comply with all applicable laws, regulations, rules and sound
business practices, or (iii) are necessary for Purchaser’s ownership of the Assets
and/or accounts associated with the Deposit Liabilities (the “Records”). In the event
Purchaser requests, after the Closing Date, in writing, that Seller provide to
Purchaser information contained in the books and records which have been retained by
Seller insofar as they relate to the operations of the Branch, the Assets and/or
accounts as of the Effective Time, Seller shall provide such information as soon as
reasonably practicable;
	 
	 	(j)	 	All right, title and interest of Seller in and to all claims, causes of action,
and demands, including warranties against contractors, manufacturers and suppliers
relating to the Assets; and
	 
	 	(k)	 	All Deposit Liabilities as defined in Section 1.4 hereof.

     The term “Liens” shall mean any security interests, liens, mortgages or other encumbrances,
but shall not include: (a) any imperfections of title which, individually or collectively do not
materially and adversely affect the value of the Assets to the Purchaser or impair the Purchaser’s
use of the Assets; (b) liens for current taxes not yet due and payable; and (c) any encumbrances on
any of the Assets that secure any debt, liability or other obligation of the Seller which is
assumed by the Purchaser under this Agreement.

     1.3 Assets Not Sold. The following are expressly excluded from the Assets:

	 	(a)	 	the Seller’s trademarks, tradenames, medallion program stamps, signs, logos and
proprietarily marked stationery, forms, labels, shipping materials, brochures,
advertising material and similar property;
	 
	 	(b)	 	assets, if any, relating to trust accounts (other than Individual Retirement
Accounts (“IRAs”)) administered at the Branch;
	 
	 	(c)	 	the assets, if any, listed on Schedule 1.3(c); and
	 
	 	(d)	 	the Seller’s rights in and to the routing and transit numbers of the Branch.

     1.4 Assumption of Liabilities. The Purchaser agrees, subject to Section 1.5 hereof
and the other terms and conditions of this Agreement, that on and after the Effective Time, it will
assume and thereafter fully and timely perform and discharge, in accordance with their terms:

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	 	(a)	 	all deposit liabilities of every kind and description, including, without
limitation, time and demand accounts, certificates of deposit, savings accounts,
checking accounts, sweep accounts, and Individual Retirement Accounts (“IRAs”) assigned
to the Branch as of the Effective Time and all other liabilities and obligations of the
Seller relating to the deposit accounts assigned to the Branch as of the Effective
Time, whether represented by collected or uncollected funds (the “Deposit
Liabilities”), including without limitation the items listed on Schedule 1.4 (a), the
exact balances and accrued interest of which will be certified by the Seller at
Closing; provided, however, the Deposit Liabilities shall not include any liabilities
described in Section 1.5 below;
	 
	 	(b)	 	all liabilities and obligations of the Seller under the Loans as of the
Effective Time;
	 
	 	(c)	 	all liabilities and obligations of the Seller under the Personal Property
Leases and the Real Property Lease as of the Effective Time;
	 
	 	(d)	 	all liabilities and obligations of the Seller arising as of the Effective Time
under all safe deposit contracts and leases for the safe deposit boxes located at the
Branch as of the Effective Time; and
	 
	 	(e)	 	In connection with any IRAs, Purchaser shall assume, in addition to the deposit
liability, the plan pertaining thereto and the custodial arrangement in connection
therewith.

     No assurance is being given by the Seller that the present customers of the Branch will become
or remain customers of the Purchaser.

     1.5 Liabilities Not Assumed. The Purchaser will not assume the following liabilities
or obligations of the Seller:

	 	(a)	 	any securities brokerage account maintained by the Seller for a customer of the
Branch;
	 
	 	(b)	 	any deposit accounts designated as closed prior to the Effective Time;
	 
	 	(c)	 	any liability associated with traveler’s checks, cashier’s checks or other
official bank checks issued by the Seller prior to the Closing Date; and
	 
	 	(d)	 	Any other liability of Seller not specifically assumed by Purchaser under Section 1.4
above.

     1.6 Safe Deposit Box Business.

	 	(a)	 	As of the Effective Time, the Purchaser will assume and discharge the Seller’s
obligations with respect to the safe deposit business at the Branch in accordance with
the terms and conditions of contracts or rental agreements related to such

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	 	 	 	business, and the Purchaser will maintain all facilities necessary for the use of
such safe deposit boxes by persons entitled to use them.

	 	(b)	 	As of the Effective Time, the Seller shall transfer, assign, and deliver the
Records related to such safe deposit box business to the Purchaser, and the Purchaser
shall maintain and safeguard all such Records and be responsible for granting access to
and protecting the contents of the safe deposit boxes at the Branch.

     1.7 Documentation of Transactions. On the Closing Date: (i) the Purchaser shall
execute and deliver a document evidencing the liabilities assumed pursuant to Section 1.4 in
substantially the form attached hereto as Exhibit A; (ii) the Seller and the Purchaser shall
execute and deliver a bill of sale in substantially the form attached hereto as Exhibit B; and
(iii) with respect to any IRA which includes as one or more of its assets a Deposit Liability, the
Seller and the Purchaser shall execute and deliver a transfer document in substantially the form
attached hereto as Exhibit C.

     1.8 Assumption Subject to Certain Terms. The Deposit Liabilities being assumed by the
Purchaser pursuant to this Agreement shall be assumed subject to the terms and conditions of
deposit agreed to by the Seller and its customers and any other written agreements relating thereto
and the laws, rules and regulations applicable thereto.

ARTICLE II

PURCHASE PRICE

     2.1 Payment. The Purchaser shall pay the Seller by wire transfer of immediately
available funds on the Closing Date an amount equal to (i) the principal amount of the Loans
(excluding loan loss and general reserves) as shown on the books of the Seller as of the Effective
Time, (ii) the amount of the petty, teller, ATM and vault cash maintained at the Branch determined
in accordance with Section 1.2(f) hereof, (iii) the sum of $____________, reflecting the net
book value of the Fixed Assets, and (iv) a premium for the Deposit Liabilities equal to seven and
seventeen one hundredths percent (7.17%) of such Deposit Liabilities. The amounts set forth in (i)
through (iv) above shall be paid net of the Deposit Liabilities. Such amount shall be further
adjusted in accordance with Section 2.2 and Section 2.3 on the Closing Date and thereafter. The
payment formula referred to above is for the sole purpose of determining the amount of cash
transferable at the Closing Date and shall not constitute an allocation of the purchase price for
the Branch to any particular Asset being transferred or liability being assumed.

     2.2 Calculations. Solely for purposes of facilitating the calculation of the cash due
Seller on the Closing Date, Seller shall provide Purchaser, no later than five (5) business days
before the Closing Date, and as of the most recent month-end, a Preliminary Closing Statement in
the form attached as Schedule 2.2(a), based on the net book value of the Assets to be sold and
Deposit Liabilities and other liabilities to be transferred and assumed hereunder on that date as
reflected on the books of Seller, and the cash due to Seller at the Closing shall be based upon
such Preliminary Closing Statement. Within ten (10) business days after the Closing Date, Seller
shall provide to Purchaser a Final Closing Statement in the form attached as Schedule 2.2(b)

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based on the net book value as of the close of business on the Closing Date of the Assets sold
and Deposit Liabilities and other liabilities transferred and assumed pursuant to this Agreement.
Any objection by Purchaser to such Final Closing Statement must be raised in a written notice
delivered to Seller within five (5) business days after Purchaser receives such Final Closing
Statement. In the event any such objection is raised, the parties will work together in good faith
to resolve the dispute as promptly as possible. Within two (2) business days of the receipt of an
undisputed Final Closing Statement or, if there is any dispute, within two (2) business days of the
resolution of such dispute, appropriate additional consideration shall be paid by Purchaser, or
appropriate refund made by Seller, as the case may be. If the parties are unable to resolve their
dispute, such matter shall be submitted to Crowe Chizek and Company, LLC, whose decision shall be
final and binding.

     2.3 Pro-Rata Adjustment of Income and Expenses. All rents, utility payments, real and
personal property taxes and similar expenses and charges relating to the physical plant of the
Branch, and the FICO assessment made by the Federal Deposit Insurance Corporation (“FDIC”) and
other expenses relating to the Deposit Liabilities assumed and/or the operation of the Branch,
shall be prorated between the parties as of the Closing Date on the basis of a 365-day year. To
the extent any such item has been prepaid by the Seller for a period extending beyond the Closing
Date, there shall be an adjustment in such amount to the payment contemplated by Section 2.1 in
favor of the Seller. Any unearned noninterest income associated with the Branch, except as
otherwise specifically provided in this Agreement, shall also be adjusted pro rata between the
parties as of the Closing Date. Any expense relating to the Branch which is attributable to the
period on and after the Closing Date will be paid by the Purchaser. In the event Purchaser, as of
the Effective Time, paid to Seller an amount equal to an overdraft and such overdraft has not been
collected by Purchaser within thirty (30) days of Closing, Purchaser shall have the right to
receive payment from Seller in an amount equal to the price paid by Purchaser to Seller for such
overdraft provided that the Purchaser shall transfer to Seller the account relating to such
overdraft.

     2.4 Allocation of Purchase Price. The purchase price and liabilities assumed by the
Purchaser pursuant to this Agreement shall be allocated on an allocation schedule to be agreed upon
by the Purchaser and the Seller within 30 days after the Closing Date. This allocation is intended
to comply with the allocation method required by Section 1060 of the Internal Revenue Code of 1986,
as amended (the “Code”), and the Treasury Department regulations promulgated thereunder. The
Purchaser and the Seller shall cooperate to comply with all substantive and procedural requirements
of Section 1060 and any Treasury Department regulations thereunder, and the allocation shall be
adjusted if and to the extent necessary to comply with the requirements of Section 1060. Purchaser
and Seller (and their affiliates) shall report, act, and file all tax returns (including, without
limitation, Internal Revenue Service Form 8594) in all respects and for all purposes consistent
with such allocation. Neither Purchaser nor Seller shall take any position (whether in audits, tax
returns, or otherwise) that is inconsistent with such allocation unless required to do so by
applicable law.

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ARTICLE III

ADDITIONAL OBLIGATIONS OF PURCHASER AND SELLER

     3.1 Regulatory Approvals.

	 	(a)	 	The Purchaser shall, within 30 days following the date of this Agreement,
prepare and file all applications, as required by law, with the appropriate federal
and/or state regulatory authorities for approval to purchase the Assets and assume the
liabilities and obligations of the Seller being assumed hereunder, to establish a
branch at the location of the Branch and to effect in all other respects the
transactions contemplated hereby (the “regulatory approvals”). The Purchaser agrees to
(i) make draft copies of the applications (except for any confidential portions
thereof) available to the Seller and its counsel prior to filing, (ii) process the
applications in a diligent manner and on a priority basis, (iii) request confidential
treatment by the appropriate federal and/or state regulatory authorities of all
non-public information submitted in the applications, (iv) provide the Seller and its
counsel promptly with a copy of the applications as filed (except for any confidential
portions thereof) and all material notices, orders, opinions, correspondence and other
documents with respect thereto, and (v) use its best efforts to obtain all regulatory
approvals. The Purchaser and the Seller agree to cooperate and use their best efforts
to obtain all consents and approvals of all third parties and to do all things
necessary to consummate the transactions contemplated by this Agreement.
	 
	 	(b)	 	The Seller shall, as soon as is practicable, notify the proper regulatory
authorities of its intent to terminate operation of the Branch and to consummate the
transactions contemplated hereby and thereafter shall (i) comply with the normal and
usual requirements imposed by such regulatory authorities applicable to effectuate such
transactions and (ii) use its best efforts to obtain any required permission of such
regulatory authorities to cease operating the Branch.

     3.2 Full Access. The Seller shall furnish the Purchaser with such additional
financial and operating data and other information as to its business and properties at the Branch
as the Purchaser may, from time to time, reasonably request and as shall be available including,
without limitation, information required for inclusion in any and all regulatory applications
necessary to effect the transaction contemplated hereby. The Seller shall also afford to the
officers and authorized representatives of the Purchaser access to the employees of the Seller in
accordance with Sections 3.3, 4.1 and 4.3 hereof. The Purchaser shall indemnify the Seller from
and against all costs, damages, claims and liabilities, including reasonable attorneys’ fees,
arising out of the negligence of the Purchaser or its agents or employees in conducting such
investigations. Nothing in this Section 3.2 shall be deemed to require the Seller to breach any
obligation of confidentiality or to reveal any proprietary information, trade secrets or marketing
or strategic plans.

     3.3 Confidentiality. The Purchaser will hold, and will cause its officers, directors,
employees and agents to hold, in strict confidence and not disclose to any other person or entity

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without the prior written consent of the Seller (a) the terms of this Agreement and the
transaction described herein and (b) all information received by the Purchaser from or with respect
to the Seller in connection with this Agreement and the transactions contemplated hereby, and
Seller will hold, and will cause its officers, directors, employees and agents to hold, in strict
confidence and not disclose to any other person or entity without the prior written consent of the
Purchaser (c) the existence of this Agreement, (d) the terms of this Agreement and the transaction
described herein, and (e) all information received by the Seller from or with respect to the
Purchaser in connection with this Agreement and the transactions contemplated hereby. The terms of
this Section 3.3 shall not prohibit the disclosure of information (i) as may be otherwise publicly
available otherwise than through the wrongful dissemination of such information by the Purchaser or
Seller, as the case may be, and their officers, directors, employees or agents, (ii) as may be
required to be disclosed by applicable law, or (iii) as is required to obtain the Government
Approvals. The Seller and the Purchaser agree that neither shall make any public announcement or
public comment in any form whatsoever regarding this Agreement or the transactions contemplated
herein without obtaining the prior approval of the other party.

     3.4 Conversion of Accounts; Transfer and Delivery of Assets and Deposit Liabilities.
Prior to the Closing Date, the Seller shall assist the Purchaser, in ways to be mutually agreed
upon by the Seller and the Purchaser, in preparing the Purchaser’s data processing system to
receive the transferred Loans and Deposit Liabilities.

	 	(a)	 	Such assistance shall include, but shall not be limited to, the following:

	 	(i)	 	As soon as practicable following the date of this Agreement and
not later than July 13, 2007, the Seller shall deliver to the Purchaser data
and descriptive information and such other reasonable and customary information
(including ACH) with data conversion relating to the Deposit Liabilities and
the Loans in an FTP data file using an EBCDIC format (the “Compatible Data
File”) containing, among other information, customer name, address, card
number, withdrawal limits, the Deposit Liabilities activated by, accessible to
or related in any manner to customers of the Branch;
	 
	 	(ii)	 	on or before August 24, 2007, an updated Compatible Data File;
	 
	 	(iii)	 	On the Closing Date, Seller shall deliver to the Purchaser a
final Compatible Data File, which Compatible Data File shall constitute the
Seller’s Records maintained as of and current through the Effective Time with
respect to the Deposit Liabilities and the Loans; and
	 
	 	(iv)	 	The Seller shall deliver to the Purchaser trial balance reports
with each Compatible Data File delivered pursuant to this Section 3.4(a).

	 	(b)	 	As of the Effective Time, the Seller shall:

	 	(i)	 	deliver to the Purchaser such of the Assets as shall be capable
of physical delivery;

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	 	(ii)	 	execute, acknowledge and deliver to the Purchaser all such
endorsements, assignments, bills of sale and other instruments of conveyance,
assignment and transfer as, in the reasonable judgment of the Purchaser shall
be necessary and appropriate to consummate the sale and transfer of the Assets
to the Purchaser and to vest in the Purchaser the legal and equitable title to
the Assets, free and clear of all Liens, except as otherwise permitted in this
Agreement;
	 
	 	(iii)	 	assign, transfer and deliver to the Purchaser such of the
following Records pertaining to the Deposit Liabilities as exist and are
available in whatever form or medium as maintained by the Seller:

	 	(A)	 	orders and contracts between the Seller and
depositors at the Branch and Records of similar character, with
signature cards delivered as soon as practicable after the Closing (the
Seller shall also provide interim research assistance on an as needed
basis); and
	 
	 	(B)	 	records of account;

	 	(iv)	 	provide customers a bank statement for each transferred
account, for both Deposit Liabilities and loans as is practicable; and
	 
	 	(v)	 	assign, transfer and deliver to the Purchaser the promissory
notes, security agreements, collateral, and related agreements or information
relating to or evidencing all Loans to the extent these agreements exist and in
whatever form or medium as maintained by the Seller.

	 	(c)	 	On the Closing Date, the Seller will deactivate the ATM machine maintained by
the Branch and will close the Branch at 2:00 p.m., local time, in order to facilitate
the conversion process. All existing ATM and debit cards pertaining to customers of
the Millersburg Branch office will be deactivated as of the close of business on the
Closing Date and must be reissued by the Purchaser immediately prior to the computer
conversion. The Seller shall also remove all of its proprietary forms and proprietary
software from any personal computers at the Branch included in the Assets. Seller, at
its own expense, will notify customers of the Branch, in writing at least thirty (30)
calendar days prior to the Closing Date, provided all regulatory approvals have been
obtained, or at such later date as all regulatory approvals have been obtained, that as
of the opening of business on the Closing Date, all ATM access cards issued by Seller
to customers of the Branch who will not have ATM-accessible accounts with Seller after
the Closing, and all debit cards issued by Seller to customers of the Branch who will
not have demand accounts with Seller after the Closing, will be void or terminated, as
the case may be. In connection with this notice, Purchaser may forward a communication
notifying such customers that replacement ATM access cards and debit cards will be
reissued by Purchaser and forwarded to customers prior to the Closing Date with
instructions for activation after the Closing Date.

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	 	(d)	 	Limitation of Repetitive and Burdensome Requests. The Purchaser will
limit its frequency of requests for information so as not to be burdensome to Seller or
repetitive of information previously supplied.

     3.5 Retention of and Access to Files Following the Closing Date.

	 	(a)	 	The Purchaser agrees that it will preserve and safely keep, for as long as may
be required by applicable law, all of the files, books of account and records of the
Branch referred to in this Agreement for the joint benefit of itself and the Seller,
and that it will permit the Seller or its representatives, at any reasonable time and
at the Seller’s expense, to inspect, make extracts from or copies of, any such files,
books of account or records as the Seller shall deem necessary.
	 
	 	(b)	 	In the event that some of the Seller’s records concerning the Assets or the
Deposit Liabilities cannot reasonably be segregated from the Seller’s records regarding
accounts not transferred pursuant to this Agreement, the Seller will not deliver such
records to the Purchaser but will preserve and safely keep such records for as long as
may be required by applicable law. For a period of twelve (12) calendar months after
the Closing Date, the Seller shall provide research and account history services
related to any such records to the Purchaser at the Purchaser’s request. Such services
shall be provided on the same service schedule as services then provided by the Seller
to its customers, and the Purchaser shall pay the same rates for such services as the
Seller then charges its existing customers. Such services do not include information
required to be provided by the Seller under Sections 1.2(i) and 3.2. Following such
twelve (12) month period, the Seller will permit the Purchaser or Purchaser’s
representatives, at reasonable times and at the Purchaser’s expense, to inspect, make
extracts from or copies of such records which relate to the Assets or the Deposit
Liabilities.
	 
	 	(c)	 	The Seller agrees to transfer and deliver to the Purchaser on the Closing Date
all safe deposit box contents, including without limitation, securities, papers,
valuables and other items (collectively, “Safekeeping Items”), held by the Seller in
safekeeping for its customers at the Branch, together with all records, keys,
combination codes, etc., relating thereto (in whatever form or medium then maintained
by the Seller). The Purchaser agrees to assume, honor and discharge, from and after
the Effective Time, the duties and obligations of the Seller with respect to such
Safekeeping Items and shall be entitled to any right or benefit arising from such
safekeeping business from and after the Effective Time. The Purchaser agrees to
execute as of the Effective Time a receipt for such Safekeeping Items.

     3.6 Consents to Assignment of Contracts. Seller shall use its best efforts to obtain
on or before the Closing Date consents to the assignment of the Personal Property Leases and Real
Property Lease to Purchaser all at the same terms, including charges or fees, as are currently
stated in or associated with the Personal Property Leases and Real Property Lease.

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     3.7 Payment of Items After the Closing Date. Following the Closing Date:

	 	(a)	 	The Purchaser agrees to pay in accordance with law and customary banking
practices all properly drawn and presented checks, drafts and withdrawal orders
presented to the Purchaser by mail, over the counter or through the check clearing
system of the banking industry, by depositors related to the Deposit Liabilities,
whether drawn on the checks, withdrawal or draft forms provided by the Seller or by the
Purchaser, and in all other respects to discharge, in the usual course of the banking
business, the duties and obligations of the Seller with respect to the balances due and
owing to the depositors with respect to whom the Purchaser has assumed the Deposit
Liabilities.
	 
	 	(b)	 	If any of such depositors, instead of accepting the obligation of the Purchaser
to pay the Deposit Liabilities, shall demand payment from the Seller for all or any
part of any such Deposit Liabilities, the Seller shall not be liable or responsible for
making such payment.
	 
	 	(c)	 	After the Effective Time, the Seller shall be and have the rights and
obligations of a “Collecting Bank” or “Intermediary Bank” under Article 4 of the
Uniform Commercial Code (including the right to chargeback dishonored items) as then in
effect in Ohio with respect to items drawn on the accounts associated with Deposit
Liabilities transferred which are received by the Seller for processing. Items
received for processing against the Deposit Liabilities shall be grouped and delivered
to the Purchaser within the time limits provided by the Uniform Commercial Code in a
special cash letter separately identified as “Transferred Accounts Cash Letter.” For
purposes of paying the Purchaser’s obligations to the Seller under this Section 3.7,
the Purchaser will establish a settlement account with the Seller at the Closing Date
in a collected amount equal to $250,000, which amount will be maintained by the
Purchaser for a period of sixty (60) days following the Closing Date, against which
will be (i) debited the checks, returns and items hereafter referred to in this
sentence and (ii) charged amounts in accordance with Section 3.7(d) hereof to provide,
among other things, for the settlement by the Purchaser of checks, returns and items
which are presented to the Seller within sixty (60) days after the Closing Date and
which are drawn on or chargeable to accounts associated with Deposit Liabilities
transferred to the Purchaser. In order to reduce the continuing charges to the Seller
through the check clearing system of the banking system which will result from check
forms of the Seller being used after the Closing Date by the depositors whose accounts
associated with Deposit Liabilities are assumed, the Purchaser agrees, at its cost and
expense, and without charge to such depositors, to notify such depositors as soon as
possible after the Closing Date of the Purchaser’s assumption of the Deposit
Liabilities and furnish each depositor of an assumed account with checks on the forms
of the Purchaser with instructions to utilize the Purchaser’s checks and to destroy
unused checks of the Seller. After the expiration of 60 days from the Closing Date,
the Seller will dishonor checks, drafts or withdrawal orders drawn on the Deposit
Liabilities unless the Seller and the Purchaser agree to

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	 	 	 	extend the 60 day period and extend the provision for a settlement account as
necessary. The Purchaser agrees to arrange for the transportation directly and pay
the expenses of transporting from the Seller to the Purchaser all checks, drafts,
orders of withdrawal, cash letters, magnetic tapes and other items related to the
Seller’s receipt of items relating to the Deposit Liabilities after the Closing
Date. These transportation expenses may be charged against the settlement account
of the Purchaser. Seller shall give Purchaser a regular accounting of debits and
Purchaser shall indemnify Seller from and against any claims resulting from a return
of items not in accordance with the requirements of the Uniform Commercial Code or
Regulation CC to its clearing account. Purchaser shall indemnify and hold Seller
harmless from any claims of wrongful dishonor based on such returns.

	 	(d)	 	Purchaser agrees to pay promptly to the Seller an amount equivalent to the
amount of any checks, drafts or withdrawal orders credited by the Seller before the
Closing Date to such transferred account that are returned to the Seller unpaid within
sixty (60) days after the Closing Date. Upon receipt thereof, the Seller shall
immediately forward any such check, draft or other item to the Purchaser, and subject
to the time limitations referenced herein, the Purchaser shall remit to the Seller the
amount of any such item(s).

     3.8 ACH. Prior to Closing, Seller agrees to supply a complete Automated Clearing
House (“ACH”) warehouse listing of any ACH transactions scheduled or pending with respect to the
Deposit Liabilities as of the Closing Date and for a period of ninety (90) days after the Closing
Date and such additional listings and schedules as Purchaser shall reasonably request in order to
notify ACH originators of the transactions contemplated by this Agreement. As soon as practicable
following the Closing Date, the Purchaser will notify all originators effecting debits or credits
to the accounts of the Deposit Liabilities of the purchase and assumption transaction contemplated
by this Agreement. For a period of ninety (90) days beginning on the Closing Date, Seller will
honor all ACH items related to accounts of Deposit Liabilities which are mistakenly routed or
presented to Seller. Seller will make no charge to Purchaser for honoring such items, and will use
its best efforts to transmit to Purchaser via facsimile to a fax number identified by Purchaser, by
10:00 a.m. or as soon as practicable thereafter, each day’s ACH data that is to be posted that day.
Items mistakenly routed or presented after the 90-day period may be returned to the presenting
party. Seller and Purchaser shall make arrangements to provide for the daily settlement with
immediately available funds by Purchaser of any ACH items honored by Seller.

     3.9 Notice to Customers. Prior to Closing, Seller shall provide Purchaser with an
intermediate customer list on the accounts to be assumed, identical to the list used by Seller for
notification purposes. As of the Effective Time, Seller shall provide a final customer list of the
assumed accounts. On such date as the Purchaser may reasonably specify (but in no case prior to
receipt of all necessary regulatory approvals), Seller shall notify the holders of the accounts and
safe deposit business to be assumed and the Loans to be purchased, that, subject to closing
requirements, Purchaser will be assuming the duties and liabilities of the accounts or
responsibility for the Asset being purchased.

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The notification will be based on the list referred to in the preceding paragraph and a log
maintained at the Branch of new accounts opened since the date of said list. Seller shall provide
Purchaser with a copy of said log up to the date of Seller’s mailing. Purchaser shall send
notifications to the same holders five (5) days following Seller’s mailing which is to be completed
not less than forty-five (45) days prior to Closing, setting out the details of its administration
of the accounts to be assumed. Each party shall obtain the approval of the other on its
notification letter(s) prior to mailing, which approvals shall not be unreasonably withheld or
delayed. Holders of deposit accounts opened following the notifications contemplated above and
prior to the Closing will be given a copy of both the Purchaser’s and Seller’s notification letters
by Seller at the time the account is opened.

     3.10 Retirement Accounts. The parties acknowledge that Seller is acting as custodian
and holds certain of the deposits for participants in IRAs and Keogh Accounts (“Retirement
Accounts”) and that Purchaser desires to act as custodian thereof from and after the Effective
Time, to the extent permitted under the applicable custodial agreements. The parties shall confer
and determine at least thirty (30) days prior to the Closing Date which, if any, of the Retirement
Accounts cannot be transferred to Purchaser under this Agreement. Seller shall be responsible for
federal and state income tax reporting of Retirement Accounts accepted by Purchaser from January 1,
2007 through the Effective Time. Purchaser shall be responsible for all federal and state income
tax reporting commencing on the day after the Effective Time for the Retirement Accounts assumed by
Purchaser through the end of the calendar year. Seller shall deliver to Purchaser all Records from
January 1, 2007 through the Closing Date pertaining to the Retirement Accounts assumed hereunder.
In connection with Retirement Accounts, Purchaser shall assume, in addition to the Deposit
Liability, the plan pertaining thereto and the custodial arrangement in connection therewith.

     3.11 Other Liabilities. Purchaser shall assume only those liabilities and obligations
of the Seller that are provided for in this Agreement. This Agreement shall not be construed as
creating rights or remedies against the Purchaser by third parties other than with respect to those
liabilities and obligations assumed hereunder.

     3.12 Back-up Withholding. Any amounts required by any governmental agencies to be
withheld from any of the accounts associated with the Deposit Liabilities (the “Withholding
Obligations”) will be handled as follows:

	 	(a)	 	Any Withholding Obligations required to be remitted to the appropriate
governmental agency prior to the Effective Time will be withheld and remitted by Seller
and Seller shall provide Purchaser with satisfactory evidence thereof at Closing;
	 
	 	(b)	 	At Closing, Seller will remit to Purchaser all sums withheld by Seller pursuant
to Withholding Obligations together with satisfactory detail thereof which funds are or
may be required to be remitted to governmental agencies on or after the Effective Time.
Any Withholding Obligations required to be remitted to the appropriate governmental
agency on or after the Effective Time will be remitted by Purchaser. Purchaser and
Seller shall mutually indemnify and hold harmless

13

 

	 	 	 	the other from and against any claim relating to Withholding Obligations which is
the responsibility of the other hereunder.

     3.13 Overdrafts. Subject to Section 2.3, any overdrafts approved on the Closing Date
with respect to the ledger date for the immediately preceding day and thereafter will be the
responsibility and risk of Purchaser, since Purchaser’s criteria for approving or rejecting
overdrafts will be put in effect on the day before the Closing Date. All overdrafts approved
before the Closing Date will be the responsibility and risk of Seller.

     3.14 Loan Payments and Information Received After the Closing Date. The Seller agrees
to forward promptly (which shall mean, for the first thirty (30) days following the Closing Date,
delivery by an overnight courier service at Purchaser’s expense) to the Purchaser:

	 	(a)	 	any payments (properly endorsed without recourse as necessary) which are
received by the Seller on or after the Effective Time that relate to the Loans and to
provide sufficient information so that any such payments may be properly applied to the
extent such information is available to the Seller; and
	 
	 	(b)	 	any notices or other correspondence received on or after the Effective Time
that relate to the Loans or other Assets.

     3.15 Seller Identification. On the Effective Time, the Purchaser shall substitute its
name and logo for the name and logo of the Seller on all signs at the Branch. The Seller will in a
timely manner remove at the Seller’s expense, all signs that carry the name and logo of the Seller.
The Purchaser agrees to replace promptly all written or electronic materials bearing the Seller’s
name and/or logo used in the ordinary course of banking business, including stationery and forms,
with written or electronic materials bearing the Purchaser’s name and/or logo, including without
limitation, new coupon books for Loans.

     3.16 Indemnification.

	 	(a)	 	Seller shall indemnify, hold harmless and defend the Purchaser from and against
all claims, losses, liabilities, demands and obligations, including reasonable
attorneys’ fees and expenses of litigation, arising out of or relating to (i)
operations at the Branch (including injury or damage to persons or property) before the
Effective Time (whether pursuant to any actions, suits or proceedings commenced or
threatened before the Effective Time (other than proceedings to prevent or limit the
consummation of the transactions contemplated hereby) or otherwise) or (ii) the
inaccuracy of any representation or warranty made by Seller herein or in any agreement
delivered pursuant hereto or the breach by the Seller of any agreement contained herein
or in any agreement delivered pursuant hereto. It is understood that the obligations
of the Seller under this subsection (a) shall survive the Closing Date. On and after
the Closing Date, the Seller shall maintain in full force and effect a financial
institution blanket fidelity bond which provides coverage for losses related to
incidents which occurred prior to the Effective Time, including computer crime, on a
discovery basis.

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	 	(b)	 	The Purchaser shall indemnify, hold harmless and defend the Seller from and
against all claims, losses, liabilities, demands and obligations, including reasonable
attorneys’ fees and expenses of litigation, arising out of or relating to (i)
operations at the Branch by Purchaser as of the Effective Time, or (ii) the inaccuracy
of any representation or warranty made by Purchaser herein or in any agreement
delivered pursuant hereto or the breach by the Purchaser of any agreement contained
herein or in any agreement delivered pursuant hereto. To the extent any item which is
the subject of any claim, loss, liability, demand or obligation has been prepaid by the
Seller for a period extending beyond the Closing Date, there shall be an adjustment in
such amount to the payment in Section 2.1 in favor of the Seller. It is understood
that the obligations of the Purchaser under this subsection (b) shall survive the
Closing Date.
	 
	 	(c)	 	A claim for indemnity under Sections 3.16(a) or (b) hereof may be made by the
claiming party at any time prior to twelve (12) months after the Closing Date by the
giving of written notice thereof to the other party. Such written notice shall set
forth in reasonable detail the basis upon which such claim for indemnity is made. In
the event that any such claim is made within such 12 month period, the indemnity
relating to such claim shall survive until such claim is resolved. Claims not made
within such twelve (12) month period shall cease and no indemnity shall be made
therefor.
	 
	 	(d)	 	In the event that any person or entity not party to this Agreement shall make
any demand or claim or file or threaten to file any lawsuit, which demand, claim or
lawsuit may result in any liability, damage or loss to one party hereto of the kind for
which such party is entitled to indemnification pursuant to Sections 3.16(a) or (b)
hereof, then, after written notice is provided by the indemnified party to the
indemnifying party of such demand, claim or lawsuit, the indemnifying party shall have
the option, at its cost and expense, to retain counsel for the indemnified party to
defend any such demand, claim or lawsuit. In the event that the indemnifying party
shall fail to respond within ten business days after receipt of such notice of any such
demand, claim or lawsuit, then the indemnified party shall retain counsel and conduct
the defense of such demand, claim or lawsuit as it may in its discretion deem proper,
at cost and expense of the indemnifying party. In effecting the settlement of any such
demand, claim or lawsuit, an indemnified party shall act in good faith, shall consult
with the indemnifying party and shall enter into only such a settlement as the
indemnifying party shall approve (the indemnifying party’s approval will be implied if
it does not respond within five (5) business days of its receipt of the notice of such
a settlement offer).

     3.17 Right to Intervene. In the event that any claim, protest, suit or other
proceeding is instituted or threatened against the Purchaser relating to this Agreement or the
Loans, other Assets or liabilities transferred to or assumed by Purchaser hereunder, the Seller
shall have the right, at its discretion and expense, to intervene in such matter, and the Purchaser
hereby agrees to give prompt and prior notice thereof to the Seller and consents to such
intervention.

15

 

     3.18 Assumption of Risks.

	 	(a)	 	If the building or other improvements of the Branch are destroyed or materially
damaged by fire or other casualty prior to the Closing Date and shall not be
substantially repaired or replaced or shall not have insurance coverage which in the
reasonable determination of the Purchaser is sufficient to repair or replace such
building or other improvements, the Purchaser shall have the right to terminate this
Agreement with regard to the Branch or to accept the Branch as damaged together with
any rights of the Seller to receive insurance proceeds or to exercise any other rights
of the Seller following their assignment to the Purchaser on the Closing Date.
	 
	 	(b)	 	As of the Effective Time, the Seller will discontinue any casualty and
liability insurance coverage maintained with respect to the premises of the Branch and
all Assets. The Purchaser shall be solely responsible for all casualty losses and
liability claims arising after the Effective Time.
	 
	 	(c)	 	On the Closing Date, the Seller will discontinue providing any security for
persons and property at the Branch and the Purchaser assumes all liabilities arising
out of injury or damage to persons and property after the Effective Time.

     3.19 Information Reporting. With respect to the Loans and Deposit Liabilities
purchased and assumed by the Purchaser pursuant to this Agreement, the Seller shall be responsible
for reporting to the customer and to the Internal Revenue Service (and any state or local taxing
authority as required) all interest paid or earned and similar information for all periods prior to
the Effective Time and the Purchaser shall be responsible for reporting such information for all
periods on and after the Effective Time. The Purchaser agrees to indemnify the Seller for any
penalty, interest, claim, fee (including reasonable attorneys’ fees and expenses) or other
liability or expense which may be imposed upon or asserted against the Seller as a result of the
Purchaser’s failure to comply with its obligations under this Section 3.19. The Seller agrees to
indemnify the Purchaser for any penalty, interest, claim, fee (including reasonable attorneys’ fees
and expenses) or other liability or expense which may be imposed upon or asserted against the
Purchaser as a result of the Seller’s failure to comply with its obligations under this Section
3.19.

     3.20 Restrictive Covenants of the Seller.

	 	(a)	 	The Seller shall not (i) maintain any list of the deposit customers at the
Closing Date of the Branch for the purpose of marketing loans or attracting deposits,
(ii) specifically target and solicit customers of the Branch using any customer or
mailing list compiled by Seller prior to Closing which consists primarily of customers
of the Branch; provided, however, these restrictions shall not restrict general mass
mailings, telemarketing calls, statement stuffers and other similar communications
directed to all customers of the Seller or its affiliates, or to the public or
newspaper, radio, television or Internet advertisements of a general nature or
otherwise prevent the Seller from taking such actions as may be required to comply with
any applicable federal or state laws, rules or regulations. The

16

 

	 	 	 	foregoing restrictions notwithstanding, the Seller and its affiliates may continue
to maintain as customers any commercial, trust, mortgage loan, securities sales, and
bank card customers serviced from the Seller’s offices other than the Branch, and
may continue to solicit such business relationships without restriction after the
Closing Date.
	 
	 	(b)	 	For a period of twelve (12) months after the Closing Date, the Seller shall not
solicit for employment any person who is now employed at the Branch and continues to be
employed without interruption after the Closing Date (it being understood that
advertising and other recruiting efforts aimed at the general public shall not violate
the terms of this covenant).

     3.21 Restrictive Covenant of the Purchaser. For a period of twelve (12) months after
the Closing Date, the Purchaser shall not solicit for employment any employees of the Seller whose
place of employment is within forty-five (45) miles of the Branch (it being understood that
advertising and other recruiting efforts aimed at the general public shall not violate the terms of
this covenant).

ARTICLE IV

SELLER’S EMPLOYEES AT BRANCH

     4.1 Employment of Existing Branch Employees. After the execution of this Agreement,
Purchaser agrees to interview as soon as practicable all employees of the Seller who are then
assigned to the Branch (“Employees”) as identified on Schedule 4.1, and shall notify Seller within
twenty (20) days of execution hereof whether Purchaser will offer employment to such Employees. As
of the Effective Time, the Employees who accept the Purchaser’s offer of employment will become
employees of the Purchaser and will cease to be employees of the Seller. Seller is responsible for
the filing of Form W-2s with the Internal Revenue Service and any required filing with state tax
authorities with respect to wages and benefits paid to each such retained Employee for periods
ending on or prior to the Effective Time. Any Employees not hired by Purchaser shall remain the
responsibility of the Seller, and Purchaser shall have no liability or obligation to any such
Employees.

     Except for the employment agreement to be offered to Robert E. Boss, it is understood and
agreed that (i) Purchaser’s employment of any retained Employee as set forth in this Section 4.1
shall not constitute a commitment, contract or understanding (express or implied) of an obligation
on the part of Purchaser to a post-Closing employment relationship of any fixed term or duration or
upon any terms or conditions other than those that Purchaser may establish pursuant to individual
offers of employment, and (ii) employment offered by Purchaser is “at will” and may be terminated
by Purchaser or by a retained Employee at any time for any reason (subject to any written
commitments to the contrary made by Purchaser or a retained Employee and legal restrictions).
Nothing in this Agreement shall be deemed to prevent or restrict in any way the right of Purchaser
to terminate, reassign, promote or demote any of the retained Employees after the Effective Time or
to change adversely or favorably the title, powers, duties, responsibilities, functions, locations,
salaries, other compensation or terms or conditions of employment of such retained Employees.

17

 

     4.2 Credit for Service. The Purchaser shall grant to the retained employees credit
for their respective service with the Seller for purposes of determining their participation,
eligibility and vesting rights, but not for purposes of benefit accrual, in any pension, thrift,
profit-sharing, life insurance, disability and other employee benefit plans or programs now or
hereafter maintained by or on behalf of the Purchaser, and with regard to any medical insurance
plan covering the Purchaser’s employees, there shall be an open enrollment period for the retained
employees who have been employed on a full-time basis by the Seller for a period of more than
twelve (12) months without regard to any preexisting conditions of such retained employees or their
dependents. Seller shall provide Purchaser with a copy of its certificate of insurance with
respect to such retained employees for the prior 12-month period.

     4.3 Employee Contact. Prior to the Closing Date, and except as provided in Section
4.1, the Purchaser agrees not to contact any of the Employees unless receiving prior consent from
the Seller. As soon as reasonably practicable following the date hereof, Seller will cooperate
with Purchaser, to the extent reasonably requested and legally permissible, to provide Purchaser
with information about the Employees, including providing Purchaser with the personnel files of
those Employees who provide Seller with their written consent thereto and a means to meet with the
Employees. The Seller shall provide the officers and authorized representatives of the Purchaser
with an opportunity to meet with the Employees prior to the Closing Date for training purposes,
provided that Purchaser shall pay or reimburse the travel and meal expenses of such Employees in
connection with such training, at reasonable times without interfering with the Branch’ normal
business and operations, or the affairs of the Seller directly related to the Branch. The Seller
shall also provide the officers and authorized representatives of the Purchaser an opportunity to
meet with the Seller’s employees located in Wooster who have technical and operational expertise
with respect to the operations of the Branch for purposes of such employees providing technical or
operational assistance to the Purchaser prior to the Closing Date.

     4.4 COBRA. The Seller will comply with the Consolidated Omnibus Budget Reconciliation
Act of 1985 (“COBRA”), for all of the Seller’s former employees and other qualifying beneficiaries
for whom COBRA qualifying events occurred before or coincident with the Effective Time and the
Purchaser shall have no responsibility for any such coverage. The Seller shall pay and discharge
and be responsible for any employee benefits arising under Seller’s employee benefit plans and
employee programs prior to the Effective Time, including benefits with respect to claims incurred
prior to the Effective Time but reported after the Effective Time and benefits to employees on
temporary leave of absence for medical purposes or on short term disability immediately prior to
the Effective Time (“Leave Employees”) prior to such Leave Employees beginning work with Purchaser.
The Seller shall indemnify and hold the Purchaser harmless from all loss, cost, damage or expense,
including reasonable attorneys’ fees, arising as a result of any alleged violation of COBRA or the
Workers Adjustment and Retraining Notification Act to which the Seller is subject or is alleged to
be subject.

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ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE SELLER

     The Seller hereby represents and warrants to the Purchaser as follows, which representations
and warranties shall survive the Closing Date as provided in Section 11.4 hereof:

     5.1 Corporate Organization. The Seller is a national banking association duly
organized, validly existing and in good standing under the laws of the United States. The Seller
has the corporate power and authority to own and operate its properties at the Branch, including
without limitation, the Assets, to carry on its business at the Branch as presently conducted, to
execute, deliver and perform this Agreement and to effect the transactions and all related
agreements contemplated hereby.

     5.2 Corporate Authority. The execution and delivery of this Agreement and all related
agreements by the Seller, and the consummation by the Seller of the transactions contemplated
hereby, have been duly authorized by all necessary corporate actions on the part of the Seller.
This Agreement and all related agreements executed and delivered by the Seller pursuant hereto have
been and will be duly executed by the Seller and constitute and will constitute the valid and
binding obligations of the Seller enforceable against the Seller in accordance with their
respective terms, subject to the provisions of federal and other applicable bankruptcy, insolvency,
reorganization, moratorium, receivership, conservatorship or similar laws relating to or affecting
the enforcement of creditors’ rights generally, now or hereafter in effect, and subject to general
equity principles, which may limit enforcement of certain remedies.

     5.3 Assets.

	 	(a)	 	Seller has good and marketable title to the Assets, and upon consummation of
the transactions contemplated herein, Purchaser will have good and marketable title to
the Assets, free and clear of all Liens.
	 
	 	(b)	 	Each Loan is a valid loan enforceable against obligor in accordance with its
terms, subject to bankruptcy, insolvency and other laws affecting creditors’ rights and
to general principles of equity; the Seller is the sole owner of each Loan, no
participation therein having been sold; no Loan is pledged or encumbered; the principal
balance of each Loan as shown on the Seller’s books and records is true and correct as
of the last date shown thereon; all Loans (and any notes, other evidences of
indebtedness or security agreements associated therewith) will be transferred to the
Purchaser without recourse and without any warranties or representations as to the
collectability of the Loans, the value of the collateral securing the Loans or the
creditworthiness of any maker, guarantors or other obligors thereof.
	 
	 	(c)	 	The Seller has delivered to the Purchaser complete and correct copies of all of
the Personal Property Leases and Real Property Lease. All such Leases are valid and
subsisting and there does not exist with respect to the Seller’s obligations thereunder
any material default or event or condition which, after notice or lapse

19

 

	 	 	 	of time or both, would constitute a material default thereunder. To the knowledge
of the Seller, there is no condemnation proceeding pending or threatened which would
preclude or impair the use of the Branch as presently being used in the conduct of
business of the Seller.

	 	(d)	 	The Fixed Assets are all of the material tangible assets owned or leased by the
Seller and used by it to conduct the business of the Branch as of the date hereof. The
banking equipment which constitutes a part of the Fixed Assets, taken as a whole, is in
good operating condition and repair, giving consideration to its age and use and
subject to ordinary wear and tear, and will be received in “AS IS” condition, with no
other warranties by the Seller as to its condition or future performance, except those
warranties related to title. The Seller has good and marketable title to said Fixed
Assets.
	 
	 	(e)	 	No notice of any violation of zoning laws, building or fire codes or other
statutes, ordinances or regulations relating to the operation of the Branch has been
received by the Seller. To Seller’s knowledge, there are no zoning ordinances,
material building codes, use or occupancy restrictions pending or, to Seller’s
knowledge, threatened with respect to the Branch and to Seller’s knowledge, the Branch
has been operated in all material respects in accordance with applicable laws, rules,
and regulations.
	 
	 	(f)	 	The Seller makes no covenant, representation or warranty as to the suitability
of the Fixed Assets or as to the physical condition thereof for any purpose whatsoever.
The Purchaser acknowledges that it has inspected the Fixed Assets, observed their
physical characteristics and existing conditions, and has been afforded the opportunity
to conduct such investigation of the Fixed Assets as it deems necessary for the purpose
of acquiring the Fixed Assets, for the Purchaser’s intended use, and the Purchaser
hereby waives any and all objections to or claims with respect to any and all physical
characteristics and existing conditions of the Fixed Assets. The Purchaser further
acknowledges and agrees that the Fixed Assets and the Real Property Lease are to be
assigned or sold and conveyed to, and purchased and accepted by, the Purchaser in their
present condition, “AS IS” and with all faults, and the Purchaser hereby assumes the
risk that adverse past, present or future physical characteristics and conditions may
not have been revealed by its inspection or investigation. Seller makes no
representations or warranties as to the real estate or building where the Branch is
located. Purchaser intends to acquire the building and real estate in a separate
transaction and will rely solely on such documents and to such parties to the agreement
for any representations or warranties relating thereto.

     5.4 No Violation. Neither the execution and delivery by the Seller of this Agreement
or any related agreements, nor the consummation by the Seller of the transactions contemplated
hereby or thereby, will violate, conflict with or result in a default under (i) the Articles of
Association or By-Laws of the Seller, (ii) any provision of any agreement (except for the Personal
Property Leases) or any other restriction to which the Seller is a party or by which the

20

 

Seller or any of its properties is bound, or (iii) any statute, law, decree, regulation or
order of any governmental authority once the regulatory approvals are obtained.

     5.5 Loans. Each Loan was made in the ordinary course of business, was not known to be
uncollectible at the time it was made, and accrues interest (except for Loans recorded as
non-accrual) in accordance with the terms of the Loan. Each Loan to be purchased pursuant to
Section 1.2 hereof, was made, funded and remains in material compliance with all applicable laws,
orders and regulations. To the knowledge of the Seller, the records of the Seller regarding all
Loans outstanding are accurate in all material respects and the risk classifications for the Loans
outstanding are, in the best judgment of the management of the Seller, appropriate. Each Loan that
is secured by collateral is secured by a perfected mortgage or security interest in the collateral
in favor of Seller as mortgagee or secured party. No collateral has been released from the lien
granted to Seller, unless approved by Seller and documented in its files. To the knowledge of the
Seller, each Loan is the legal, valid and binding obligation of the obligor and any guarantor,
subject to bankruptcy, insolvency, fraudulent conveyance and other law of general applicability
relating to or affecting creditors’ rights and to general principles of equity, and no defense,
offset or counterclaim has been asserted with respect to any such Loan. Unless approved by Seller
and documented in its files, no material provision of any Loan to be purchased pursuant to this
Agreement has been waived.

     5.6 Deposits. All of the Deposit Liabilities were, to the knowledge of Seller, issued
and remain in compliance in all material respects with all applicable laws, orders and regulations
and are insured by FDIC to the maximum extent provided in the rules and regulations of the FDIC,
and were acquired in the ordinary course of business. To the knowledge of Seller, no action is
pending or threatened by the FDIC with respect to the termination of such insurance. The Deposit
Liabilities are in all material respects genuine and enforceable obligations of Seller. The
balance of each deposit account included in the Deposit Liabilities as shown on Seller’s books and
records as of the close of business on the Closing Date will be true and correct in all material
respects. To the knowledge of Seller, the Deposit Liabilities are not subject to any claims with
respect to such Deposit Liabilities that are superior to the rights of the persons shown on the
records delivered to Purchaser indicating the owners of the Deposit Liabilities, other than claims
against such owners of the Deposit Liabilities, such as state and federal tax liens, garnishments
and other judgment claims, which have matured or may mature into claims against the respective
Deposit Liabilities The Seller has the right to transfer or assign each of the Deposit Liabilities
to the Purchaser subject to receipt of applicable regulatory approvals.

     5.7 Statements True and Correct. No representation or warranty made by the Seller nor
any statement, certificate or instrument furnished or to be furnished to the Purchaser by the
Seller pursuant to this Agreement or in connection with the transactions contemplated by this
Agreement, contains or will contain any material untrue statement of fact or omits or will omit to
state a material fact necessary to make the statements therein not misleading. The information
relating to the Branch provided or to be provided by the Seller will not omit to state a material
fact required to be stated therein or necessary to make such statements contained therein not
misleading.

     5.8 Compliance with Laws. To the knowledge of the Seller, the Seller has complied in
all material respects with all laws, regulations and orders applicable to the operation of the

21

 

Branch. No notice or warning material to the current business or operations or future
prospects of the Branch has been received from any governmental authority with respect to any
failure or alleged failure of the Seller to comply in any respect with any law, regulation or
order.

     5.9 Environmental Matters. To the knowledge of Seller, there are no present or past
conditions on the Branch involving or resulting from a past or present storage, spill, discharge,
leak, emission, injection, escape, dumping or release of any kind whatsoever of any hazardous
materials or from any generation, transportation, treatment, storage, disposal, use or handling of
any hazardous materials. Seller has not received notice of, nor are there outstanding or, to the
knowledge of Seller, pending, any public or private claims, lawsuits, citations, penalties,
unsatisfied abatement obligations or notices or orders of non-compliance relating to the
environmental condition of the Branch. The Branch is not currently undergoing remediation or
cleanup of hazardous materials or other environmental conditions. To the Seller’s knowledge, there
is no material environmental defect in or associated with the real property on which the Branch is
operated resulting from actions or omissions to act of the Seller. The Seller has not received
written notification from any person that any hazardous substance, as defined under Section 104(14)
of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended
(“CERCLA”), has been disposed of, buried beneath, percolated beneath or otherwise exists on the
Real Property or the Leased Property.

     5.10 Limitation of Warranties. EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT,
THE SELLER EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE
FIXED ASSETS, REAL PROPERTY OR THE LEASED PROPERTY OR WITH RESPECT TO ANY ASSETS BEING TRANSFERRED
TO OR LIABILITIES BEING ASSUMED BY THE PURCHASER, INCLUDING, WITHOUT LIMITATION, THE IMPLIED
WARRANTIES OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE.

     5.11 Litigation. There are no claims, actions, suits or proceedings of any kind in
any court or before any governmental authority or arbitration board or tribunal which are pending,
or to the knowledge of Seller, threatened or contemplated, against, or otherwise affecting Seller
and/or the Assets or the Deposit Liabilities or other liabilities being assumed by Purchaser
hereunder or that challenges the validity or legality of the transactions contemplated by this
Agreement. There is no decree, judgment or order of any kind in existence, against, affecting or
restraining Seller or any of its officers, employees, or directors, from taking any actions of any
kind in connection with the performance of this Agreement and the transactions contemplated herein.

     5.12 Employee Matters. Except as disclosed on Schedule 5.12, there are no employment
contracts, change in control agreements, termination benefit agreements or severance agreements
between Seller and any of the Employees. Seller is not a party to any contract or arrangement with
any union relating to the business conducted at the Branch and Seller is not aware of any pending
organizational efforts at the Branch. Schedule 5.12 sets forth a true and correct list of any and
all bonus or incentive or other compensation arrangements or commitments, other than benefit plans
applicable to all Employees of Seller, for the Employees individually or as a group. Purchaser
agrees to keep such information in strictest confidence and

22

 

to confine knowledge of such of its officers and personnel who have a need to know such
information in connection with the performance of their respective duties.

     5.13 No Broker Fees. The parties represent to each other that no brokers’ fees were
involved in arranging this transaction except for the fee due Ryan Beck & Company to be paid by
Seller, and that no other broker’s fee or commission is due and payable. Each party will indemnify
the other in the event a broker claims a fee or commission due as a result of this transaction and
the party through which the broker makes a claim shall be responsible for any such claim and shall
hold the other party harmless therefrom.

     5.14 Taxes. Seller shall be responsible for any and all local, state, federal and
foreign tax (“Tax”) liability of any nature or kind whatsoever payable by Seller, relating to or
arising from its operations in general or the operations of the Branch in particular, which arose,
accrued, were payable or related to the Branch prior to the Effective Time, and no Tax shall attach
to, or negatively affect in any manner, Purchaser or the Assets, Deposit Liabilities, Real Property
Leases, Personal Property Leases, Fixed Assets or any other asset or property acquired or assumed
by Purchaser pursuant to this Agreement where the obligation for the payment of such Tax was the
responsibility of Seller.

     5.15 Books, Records, Documentation, Etc. To the knowledge of Seller, the books and
records of the Branch are correct, accurate and complete in all material respects, have been
maintained in a consistent and customary manner, and are in material compliance with all applicable
federal and state laws and regulations and customary banking practices. The deposit and lending
related forms, notices, statements and related documentation, as well as Seller’s policies,
procedures and practices with respect thereto used at the Branch, comply in all material respects
with applicable federal and state laws and regulations and customary banking practices.

ARTICLE VI

REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PURCHASER

     The Purchaser hereby represents and warrants to the Seller as follows, which representations
and warranties shall survive the Closing Date as provided in Section 11.4 hereof:

     6.1 Corporate Organization. The Purchaser is a national banking association duly
organized, validly existing and in good standing under the laws of the United States of America.
The Purchaser has the corporate power and authority to own the Assets being acquired, to assume the
liabilities and obligations being assumed hereunder, including, without limitation, the Deposit
Liabilities and Personal Property Leases, to execute, deliver and perform this Agreement and to
effect the transactions contemplated hereby.

     6.2 Corporate Authority. The execution and delivery of this Agreement and all related
agreements by the Purchaser, and the consummation by the Purchaser of the transactions contemplated
hereby, have been duly authorized by all necessary corporate actions on the part of the Purchaser.
This Agreement and all related agreements executed and delivered by the Purchaser pursuant hereto,
including, without limitation, all instruments confirming the assumption by the Purchaser of the
obligations and liabilities of the Seller contemplated hereby,

23

 

have been and will be duly executed by the Purchaser and constitute and will constitute the
valid and binding obligations of the Purchaser enforceable against the Purchaser in accordance with
their respective terms, subject to the provisions of federal and other applicable bankruptcy,
insolvency, reorganization, moratorium, receivership, conservatorship or similar laws relating to
or affecting the enforcement of creditors’ rights generally, now or hereafter in effect, and
subject to general equity principles, which may limit enforcement of certain remedies.

     6.3 No Violation. Neither the execution and delivery by the Purchaser of this
Agreement or any related agreements, nor the consummation by the Purchaser of the transactions
contemplated hereby or thereby, will violate, conflict with or result in a default under (i) the
Articles of Association or By-Laws of the Purchaser, (ii) any provision of any material agreement
or any other material restriction to which the Purchaser is a party or by which the Purchaser or
any of its properties is bound, or (iii) any material statute, law, decree, regulation or material
order of any governmental authority once the regulatory approvals are obtained.

ARTICLE VII

CONDUCT OF BUSINESS PENDING THE CLOSING DATE

     7.1 Conduct of Business. Pending the Closing Date, and except as otherwise consented
to by the Purchaser:

	 	(a)	 	The Seller shall carry on the business of the Branch substantially in the same
manner as heretofore, and the Seller shall not, with regard to the Branch, engage in
any activities or transactions outside its ordinary course of business as conducted as
of the date hereof except for activities or transactions contemplated by this
Agreement, provided however, that the Seller need not, in its sole discretion,
advertise or promote new or substantially new customer services in the principal market
area of the Branch.
	 
	 	(b)	 	The Seller shall use its best efforts to preserve its business operation as
conducted at the Branch, maintain generally the employment of Employees at the Branch
except that the Seller shall not be precluded from making employment-related
determinations on a case-by-case basis, preserve for the Purchaser the good will of its
customers and others doing business with the Branch, not reduce the service charges on
any deposit product or fee-based product (e.g., money orders, cashier’s checks) unless
such reduction is implemented generally in Seller’s other branches, and cooperate with
and assist the Purchaser in assuring the orderly transition of such business from the
Seller to the Purchaser. Nothing herein shall be construed as requiring the Seller to
engage in any activities or efforts outside the ordinary course of business as
presently conducted.
	 
	 	(c)	 	The Seller shall not: (i) grant any increase in compensation or benefits to the
employees or officers of the Branch except as part of the Seller’s normal annual
compensation review process or required by contract or law, which increases shall not
exceed 5% in the aggregate for all such employees and officers; (ii) pay any bonus
except pursuant to the Seller’s normal annual compensation program; or

24

 

	 	 	 	(iii) enter into any severance, change in control or termination benefit agreements
with any Employees or officers at the Branch.

	 	(d)	 	Except as may be required by regulatory authorities, Seller shall not, without
the prior consent of Purchaser: (i) transfer to Seller’s other offices any Assets;
(ii) transfer to Seller’s other offices any Deposit Liabilities (it being understood
that any deposits not being transferred pursuant hereto are not included in such
prohibition against transfer) except upon the unsolicited request of a depositor in the
ordinary course of business; (iii) transfer, assign, encumber or otherwise dispose of
or enter into any contract, agreement or understanding, or negotiate with any party
with respect to entering into a contract, agreement or understanding, to transfer,
assign, encumber or otherwise dispose of any or all of the Assets or Deposit
Liabilities except in the ordinary course of business or pursuant to this Agreement;
(iv) invest in any fixed assets or improvements to the Branch except for improvements
currently in progress and except for replacements of furniture, furnishings and
equipment purchased or made in the ordinary course of business; (v) enter into any
contract, commitment, lease or other transaction relating to the Branch, which requires
aggregate future payments in excess of $7,500 or (vi) sponsor any promotional programs
to increase the deposit liabilities at the Branch or offer interest rates on deposits
that exceed prevailing market rates or offer interest rates on deposits at the Branch
that are more favorable than the rates offered at Seller’s other branch within the same
pricing region of the Seller as the Branch.
	 
	 	(e)	 	Loan Review. The Seller shall provide Purchaser the following loan
review opportunities with respect to all loans made at the Branch on or after April 1,
2007:

	 	(i)	 	With respect to loans made after April 1, 2007, until the
execution of the Agreement, Purchaser shall be provided an opportunity to
review a list of loans made and where requested by Purchaser, shall be entitled
to examine Seller’s credit files relating to such loans:
	 
	 	(ii)	 	With respect to loans made after the execution of this
Agreement, Purchaser shall be entitled to exercise the rights as provided in
(i) immediately above as to all loans and shall be entitled to as of the
Effective Time to accept or reject any loans or renewals in amounts equal to or
greater than One Hundred Thousand Dollars ($100,000.00). If Purchaser has not
elected to reject any such loan as of the Effective Time, Purchaser shall be
deemed to have elected to purchase such loan which shall become a loan subject
to all terms and conditions of this Agreement.

	 	(f)	 	Successor Trustee. The Seller shall designate a successor trustee,
which may be Purchaser (the “Successor Trustee”), as to any IRA or Keogh plan account
constituting a Deposit Liability, and transfer the trusteeship of all such IRA and
Keogh plan accounts to the Successor Trustee as of the Effective Time in form and
substance acceptable to Purchaser.

25

 

ARTICLE VIII

CONDITIONS TO PURCHASER’S OBLIGATIONS

     The obligations of the Purchaser to complete the transactions provided for in this Agreement
are conditioned upon the fulfillment, at or before the Closing Date, of each of the following
conditions (all or any of which may be waived in whole or in part by the Purchaser except for the
conditions in Section 8.5 and 8.8 which cannot be waived by the Purchaser):

     8.1 Representations and Warranties True. The representations and warranties made by
the Seller in this Agreement that are qualified by a reference to materiality shall have been true
and correct in all respects when made and shall be true and correct in all respects on and as of
the Closing Date as though such representations and warranties were made at and as of such time
and, the representations and warranties made by Seller in this Agreement that are not so qualified
shall have been true and correct in all material respect when made and shall be true and correct in
all material respects at and as of the Closing Date as though such representations and warranties
were made at and as of such time.

     8.2 Obligations Performed. The Seller shall have performed and complied in all
material respects with all obligations and agreements required by this Agreement to be performed or
complied with by it prior to or at the Closing Date.

     8.3 Certificate of Compliance. The Seller shall have delivered to the Purchaser a
certificate of its President or any Executive Vice President, dated at the Closing Date, certifying
the fulfillment of each of the foregoing conditions.

     8.4 No Adverse Litigation. On the Closing Date, no action, suit or proceeding shall
be threatened or pending against the Purchaser or the Seller which might reasonably be expected to
(i) materially and adversely affect the business, properties and assets of the Branch or (ii)
materially and adversely affect the transactions contemplated by this Agreement.

     8.5 Regulatory Approvals. The Purchaser shall have received from the appropriate
regulatory authorities all regulatory approvals (i) of the transactions contemplated hereby and
(ii) to operate the Branch as branch of Purchaser, and all notice and waiting periods required by
law shall have passed. The Seller shall not have been notified by any regulatory authority that
discontinued operation of the Branch by the Seller would be a violation of any statute, regulation
or policy of any regulatory authority, and no proceedings to enjoin, prohibit, restrain, or
invalidate transactions contemplated by this Agreement shall have been instituted or threatened,
and any conditions of any regulatory approvals shall have been met. Such regulatory approvals
shall not have imposed any condition which is materially disadvantageous or burdensome to
Purchaser.

     8.6 Purchase of Real Estate. Purchaser is able to negotiate and execute an agreement
satisfactory to Purchaser for the purchase of the real estate and building where the Branch is
operated.

     8.7 Employment Agreement. Purchaser is able to negotiate and execute an employment
agreement with Robert Boss satisfactory to Purchaser.

26

 

     8.8 Approvals. Purchaser shall have obtained approval from the Board of Directors of
Purchaser, the Board of Directors of Park National Corporation and received regulatory approval
from the Office of the Comptroller of the Currency. Purchaser shall timely and diligently seek
such approvals.

ARTICLE IX

CONDITIONS TO THE SELLER’S OBLIGATIONS

     The obligations of the Seller to complete the transactions provided for in this Agreement are
conditioned upon the fulfillment, at or before the Closing Date, of each of the following
conditions (all or any of which may be waived by the Seller except for the conditions in Section
9.5 which cannot be waived by the Seller):

     9.1 Representations and Warranties True. The representations and warranties made by
the Purchaser in this Agreement that are qualified by a reference to materiality shall have been
true and correct in all respects when made and shall be true and correct in all respects on and as
of the Closing Date as though such representations and warranties were made at and as of such time
and, the representations and warranties made by Purchaser in this Agreement that are not so
qualified shall have been true and correct in all material respects when made and shall be true and
correct in all material respects at and as of the Closing Date as though such representations and
warranties were made at and as of such time.

     9.2 Obligations Performed. The Purchaser shall have performed and complied in all
material respects with all obligations and agreements required by this Agreement to be performed or
complied with by it prior to or at the Closing Date.

     9.3 Certificate of Compliance. The Purchaser shall have delivered to the Seller a
certificate of its President or any Executive Vice President, dated at the Closing Date, certifying
the fulfillment of each of the foregoing conditions.

     9.4 No Adverse Litigation. On the Closing Date, no action, suit or proceeding shall
be threatened or pending against the Purchaser or the Seller which might reasonably be expected to
materially and adversely affect the transactions contemplated by this Agreement.

     9.5 Regulatory Approvals. The Purchaser shall have received from the appropriate
regulatory authorities all regulatory approvals (i) of the transactions contemplated hereby and
(ii) to operate the Branch as branch of Purchaser, and all notice and waiting periods required by
law shall have passed. The Seller shall not have been notified by any regulatory authority that
discontinued operation of the Branch by the Seller would be a violation of any statute, regulation
or policy of any regulatory authority, and no proceedings to enjoin, prohibit, restrain, or
invalidate transactions contemplated by this Agreement shall have been instituted.

27

 

ARTICLE X

TERMINATION

     10.1 Methods of Termination. This Agreement may be terminated in any one of the
following ways:

	 	(a)	 	at any time on or before the Closing Date by the mutual consent in writing of
the Purchaser and the Seller;
	 
	 	(b)	 	on the Closing Date by the Purchaser in writing if the conditions set forth in
Article VIII of this Agreement shall not have been met by the Seller or waived in
writing by the Purchaser;
	 
	 	(c)	 	on the Closing Date by the Seller in writing if the conditions set forth in
Article IX of this Agreement shall not have been met by the Purchaser or waived in
writing by the Seller,
	 
	 	(d)	 	at any time on or before the Closing Date by the Purchaser or the Seller in
writing if the other shall have been in breach of any representation or warranty in any
material respect (as if such representation or warranty had been made on and as of the
date hereof and on the date of the notice of breach referred to below), or in breach of
any covenant, undertaking or obligation contained herein and such breach has not been
cured by the earlier of thirty (30) calendar days after the giving of notice to the
breaching party of such breach or the Closing Date;
	 
	 	(e)	 	by either the Seller or the Purchaser in writing at any time after any of the
regulatory approvals has been denied; provided, however, that termination by the Seller
pursuant to this provision shall be subject to Section 5.4 hereof; and
	 
	 	(f)	 	by either the Seller or the Purchaser in writing if the transactions
contemplated hereby are not consummated on or before October 31, 2007, in which case
this Agreement shall be null and void, unless the failure of such occurrence is due to
the failure of the party seeking to so terminate to perform or observe any of its
agreements and conditions set forth herein.

     10.2 Procedure Upon Termination. In the event of termination pursuant to Section 10.1
hereof, written notice thereof shall forthwith be given to the other party, and this Agreement
shall terminate and be null and void upon receipt of such notice immediately unless an extension is
consented to by the party having the right to terminate. If this Agreement is terminated as
provided herein:

	 	(a)	 	each party will return to the party furnishing the same all documents, work
papers and other materials of the other party, including photocopies or other
duplications or summaries thereof, relating to the transaction contemplated by this
Agreement, whether obtained before or after the execution hereof;

28

 

	 	(b)	 	all information received by either party hereto with respect to the business of
the other party (other than information which is a matter of public knowledge or which
has heretofore been or is hereafter published in any publication for public
distribution or filed as public information with any governmental authority) shall not
at any time be used for any business purpose by such party or disclosed by such party
to third person; and
	 	(c)	 	Each party will pay its own expenses except as set forth in Section 11.5.

The requirements of this Section 10.2 shall be deemed to survive the termination of this Agreement.

     10.3 Effect of Termination. The termination of this Agreement shall not release any
party hereto from any liability or obligation to the other party hereto arising from a breach of
any provision of this Agreement occurring prior to the termination hereof.

ARTICLE XI

MISCELLANEOUS PROVISIONS

     11.1 Amendment and Modification. The parties hereto by mutual consent may amend,
modify and supplement this Agreement in such manner as may be agreed upon by them in writing.

     11.2 Waiver or Extension. Either party by written instrument signed by its duly
authorized officers may extend the time for the performance of any of the obligations or other acts
of the other party and may waive (i) any inaccuracies in the representations or warranties
contained herein or in any document delivered pursuant hereto or (ii) compliance with any of the
undertakings, obligations, covenants or other acts contained herein or in any such documents;
provided, however, that neither party may waive the requirement for obtaining the regulatory
approvals.

     11.3 Assignment. This Agreement and all of the provisions hereof shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and permitted
assigns, but neither this Agreement nor any of the rights, interests or obligations hereunder shall
be assigned prior to the Closing Date by either of the parties hereto without the prior written
consent of the other.

     11.4 Survival of Representations and Warranties. The representations, warranties and
conditions set out in this Agreement shall not survive beyond eighteen (18) months after the
Closing Date except as expressly provided to the contrary herein or unless the context otherwise
requires.

     11.5 Payment of Expenses. Except as otherwise specifically provided in this
Agreement, each party hereto shall bear and pay all costs and expenses incurred by it or on its
behalf in connection with this Agreement and the transactions contemplated hereunder. Except as
otherwise expressly provided herein, any expenses, fees and costs necessary for any

29

 

regulatory approvals or for any notice to depositors of the assumption of the Deposit
Liabilities provided for in this Agreement shall be paid by the Purchaser.

     11.6 Breaches of Agreements with Third Parties. If the assignment of any material
claim, contract, license, lease, or commitment (or any material claim or right or any benefit
arising thereunder) without the consent of a third party would constitute a breach thereof or
materially affect the rights of the Purchaser or the Seller thereunder, then such assignment shall
be made subject to such consent or approval being obtained.

     11.7 Addresses for Notices, Etc. All notices, requests, demands, consents and other
communications provided for hereunder and under the related documents shall be in writing and shall
be deemed to have been duly given when delivered by hand (with written confirmation of receipt), by
facsimile transmission (confirmed in writing) or by registered or certified mail, postage prepaid,
to such party at its address or facsimile number set forth below or such other address or facsimile
number as such party may specify by notice to the parties hereto:

	 	 	 	 	 
	 

	 	If to the Seller to:
	 	D. Michael Kramer
	 

	 	 	 	President and Chief Executive Officer
	 

	 	 	 	Ohio Legacy Bank N.A.
	 

	 	 	 	305 West Liberty Street
	 

	 	 	 	Wooster, OH 44691
	 

	 	 	 	Facsimile: (330) 263-0063
	 
	 	 	 	 
	 

	 	Copy to:
	 	Daniel H. Plumly, Esq.
	 

	 	 	 	Critchfield, Critchfield & Johnston, Ltd.
	 

	 	 	 	225 N. Market Street
	 

	 	 	 	Wooster, OH 44691
	 

	 	 	 	Facsimile: (330) 263-9278
	 
	 	 	 	 
	 

	 	If to the Purchaser to:
	 	Gordon E. Yance
	 

	 	 	 	President and Chief Executive Officer
	 

	 	 	 	The First-Knox National Bank of Mount Vernon
	 

	 	 	 	One South Main Street
	 

	 	 	 	Mount Vernon, OH 43050-1270
	 

	 	 	 	Facsimile: (740) 397-3570
	 
	 	 	 	 
	 

	 	Copy to:
	 	Elizabeth Turrell Farrar, Esq.
	 

	 	 	 	Vorys, Sater, Seymour and Pease LLP
	 

	 	 	 	52 East Gay Street
	 

	 	 	 	Columbus, OH 43215
	 

	 	 	 	Facsimile: (614) 719-4708

     11.8 Counterparts. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

30

 

     11.9 Headings. The headings of the Sections and Articles of this Agreement are
inserted for convenience only and shall not constitute a part hereof.

     11.10 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Ohio and applicable federal law.

     11.11 Severability. If any provision of this Agreement is invalid or unenforceable,
the balance of this Agreement shall remain in effect.

     11.12 Third Party Beneficiaries. This Agreement is made and entered into for the sole
protection and benefit of the parties hereto, and no other person, persons, entity or entities
shall have the right of action hereon, right to claim any right or benefit from the terms contained
herein, or be deemed a third party beneficiary hereunder.

     11.13 Mutual Assistance. The parties shall reasonably cooperate with each other and
shall at their own cost and expense provide reasonable assistance to each other in carrying out the
intent of this Agreement.

     11.14 Use of the term “Party.” The use of the term “party” is generally used to
denote any party to this Agreement, and such term shall be interpreted to mean any signatory to
this Agreement.

     11.15 Waiver. No failure on the part of a party to exercise, and no delay in
exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any such right, power or remedy by a party preclude any other or
further exercise thereof or the exercise of any other right, power or remedy.

     11.16 Tax Matters. Purchaser and Seller agree to utilize, or cause their respective
affiliates to utilize, the alternate procedure set forth in Revenue Procedure 2004-53 with respect
to wage reporting.

     11.17 Further Assurances. The parties agree to execute and deliver all such further
documents, instruments and agreements as may be reasonably necessary to consummate the transactions
contemplated by this Agreement.

     11.18 Agreement Complete. This Agreement and the schedules hereto contains the entire
understanding between the parties hereto with respect to the transactions contemplated hereby; all
prior negotiations and agreements between the parties hereto are superseded by this Agreement; and
there are no representations, warranties, understandings or agreements other than those expressly
set forth herein, except as modified in writing concurrently herewith or subsequent hereto, which
writing shall be executed by duly authorized officers of the parties, respectively.

31

 

     11.19 No Construction Against Drafter. This Agreement shall be interpreted to give it
fair meaning, and any ambiguity shall not be construed against either party as the primary drafter
hereof.

[Signatures on following page]

32

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
duly authorized officers as of the day and year first written above.

	 	 	 	 	 
	 	OHIO LEGACY BANK N.A.

 	 
	 	By:  	 	 
	 	 	D. Michael Kramer, President and 	 
	 	 	Chief Executive Officer 	 
	 
	 	THE FIRST-KNOX NATIONAL BANK OF

MOUNT VERNON

 	 
	 	By:  	 	 
	 	 	Gordon E. Yance, President and 	 
	 	 	Chief Executive Officer 	 
	 

33EX-10.1

 

EXHIBIT 10.1

OPTIONAL ADVANCE DEMAND NOTE

FIRST NIAGARA BANK

			
	Buffalo, New York
	 	June 15, 2007

1. DEFINITIONS. For purposes of this Note:

a. “Borrower” means MINRAD INC., a Delaware corporation having an office at 50 Cobham Drive,
Orchard Park, New York 14127.

b. “Breakage Costs” means all resulting loss or expense incurred by Lender, including, without
limitation, any loss or expense incurred in obtaining, liquidating or reemploying deposits from
third parties. A statement as to the amount of such loss or expense, prepared in good faith and in
reasonable detail by Lender and submitted by Lender to Borrower, shall be conclusive and binding
for all purposes absent manifest error in computation.

c. “Business Day” means any day of the year of which banking institutions in Lockport, New York
are not authorized or required by law or other governmental action to be closed in New York State
and, to the extent the LIBOR Rate is applicable, on which dealings are carried out in the London
interbank market.

d. “Collateral” means any collateral, subordination, guaranty, endorsement or other security or
assurance of payment, whether now existing or hereafter arising or accruing, that now or hereafter
secures the payment of or is otherwise applicable to the Outstanding Principal Account or any
interest or other amount payable pursuant to this Note and remaining unpaid.

e. “Credit” means a line of credit made available by Lender to Borrower in the maximum principal
amount equal to the Limiting Principal Amount.

f. “Demand” means any demand by Lender for the payment of the Outstanding Principal Amount.

g. “Interest Period” means the thirty (30), sixty (60) or ninety (90) day period selected by
Borrower for which the LIBOR Rate is in effect for a LIBOR Loan.

h. “Lender” means FIRST NIAGARA BANK, a federally chartered financial institution having its chief
executive office at 6950 South Transit Road, P.O. Box 514, Lockport, New York 14095-0514.

i. “Letter of Credit” means, individually, and “Letters of Credit” means, collectively, letters of
credit issued, from time to time by Lender, pursuant to the Letter of Credit Limit.

21

 

j. “Letter of Credit Limit” means TWO HUNDRED FIFTY THOUSAND AND 00/100 ($250,000.00).

k. “LIBOR Interest Determination Date” means a Business Day that is three (3) Business Days prior
to the commencement of each Interest Period.

l. “LIBOR Loan” means any portion of this Note bearing interest, from time to time, based upon the
LIBOR Rate plus the LIBOR Margin.

m. “LIBOR Margin” means three percent (3.0%).

n. “LIBOR Rate” means the rate of interest per annum determined by Lender applicable to any
Interest Period, equal to the average rate per annum which the offices of various leading banks
located in London, England offer for deposits in U.S. Dollars in the London Interbank Eurodollar
Market at approximately 11:00 a.m. (London time) on a LIBOR Interest Determination Date in an
amount equal to the amount or the applicable advance or LIBOR Loan on the applicable LIBOR Interest
Determination Date.

o. “Limiting Principal Amount” means FIVE MILLION AND 00/100 DOLLARS ($5,000,000.00), inclusive of
the aggregate stated amount of all issued and outstanding Letters of Credit.

p. “Loan” means any loan by Lender pursuant to the Credit, to include but not be limited to
request for issuance of a Letter of Credit.

q. “Loan Request” means any oral (including, but not limited to, telephonic), written or other
(including, but not limited to, facsimile) request for a Loan.

r. “Outstanding Principal Amount” means the outstanding principal amount of this Note.

s. “Prime Rate” means, for any day, the rate then in effect on such day and designated by Lender
as its prime rate of interest.

t. “Prime Loan” means any portion of this Note bearing interest from time to time based upon the
Prime Rate.

u. “Rate Election Notice” means a written notice in the form attached as Schedule A, fully
completed and signed on behalf of Borrower.

v. “Rate Option” means, so long as such option is available to Borrower, the choice of interest
rates in accordance with Section 3. a. (ii) of this Note.

w. “Reserve Percentage” means that percentage which is specified three (3) Business Days before the
first day of the month by the Board of Governors of the Federal Reserve System (or any successor)
or any other governmental or quasi-governmental authority with jurisdiction over Lender for
determining the maximum reserve requirement (including, but not limited to, any basic,
supplemental, marginal, or emergency reserve requirement) for Lender with respect to liabilities or
assets constituting or including (among other liabilities) “Eurocurrency liabilities”

22

 

(as defined in Regulation D of the Board of Governors of the Federal Reserve System) applicable
hereto.

2. PAYMENT; PREPAYMENT. For value received, Borrower promises to pay to the order of Lender in
lawful money of the United States and immediately available funds at any of the banking offices of
Lender:

a. Upon Demand by Lender, the Outstanding Principal Amount.

b. Payments of interest only, to be due and payable on the first day of each month, calculated on
the basis of a 360-day year for the actual number of days each year (365 or 366, as applicable), on
the Outstanding Principal Amount from and including the date of this Note to but not including the
date the Outstanding Principal Amount is paid in full at a rate per year that:

     (i) on each day before any Demand, shall be the rate in effect such day equal to (x) for
Prime Loans, the Prime Rate, or (y) for LIBOR Loans, the LIBOR Rate plus the LIBOR Margin,

     (ii) on each day after any Demand, shall be the total of (x) two percent (2%) and (y) the
rate in effect such date as the Prime Rate (provided, however, that (I) in no event shall such
interest be payable at a rate in excess of the maximum rate permitted by applicable law and (II)
solely to the extent necessary to result in such interest not being payable at a rate in excess
of such maximum rate, any amount that would be treated as part of such interest under a final
judicial interpretation of applicable law shall be deemed to have been a mistake and
automatically canceled, and, if received by Lender, shall be refunded to Borrower, it being the
intention of Lender and Borrower that such interest not be payable at a rate in excess of such
maximum rate), and

     (iii) if the Prime Rate or LIBOR Rate becomes unavailable, shall be the rate of another
index that is selected by Lender in its sole discretion and has a historical movement
substantially similar to that of such index and would have resulted in a rate substantially
similar to the rate of such index at the time such index becomes available.

c. If any of the Outstanding Principal Amount or any interest or other amount payable pursuant to
this Note is not paid by the eleventh (11th) day after the date it becomes due, whether
pursuant to any Demand or otherwise, a late charge of 6% thereof.

d. Each cost and expense (including, but not limited to, the reasonable fees and disbursements of
counsel, whether retained for advice, litigation or any other purpose) incurred by Lender in
endeavoring to (i) collect any of the Outstanding Principal Amount or any interest or other amount
payable pursuant to this Note, (ii) preserve or exercise any right or remedy of Lender pursuant to
this Note or (iii) preserve or exercise any right or remedy of Lender to enforce or realize upon
any Collateral.

Borrower shall have the option before any Demand of paying the Outstanding Principal Amount to
Lender in full or part at any time and from time to time without premium or penalty, except as
later provided.

23

 

Borrower shall not at any time permit, and Lender shall not at any time be obligated to permit, the
Outstanding Principal Amount to exceed the Limiting Principal Amount.

3. LOAN REQUESTS; APPLICABLE INTEREST RATE; RATE SELECTION(S); RATE CONVERSION(S).

a. Loan Requests.

     (i) On not less than one (1) nor more than five (5) Business Days’ notice, Borrower may
from time to time deliver to Lender a Loan Request, each Loan Request for a LIBOR Loan to be in
a minimum amount of One Hundred Thousand Dollars ($100,000.00) and integral multiples of One
Thousand Dollars ($1,000.00).

     (ii) Each Loan Request shall be irrevocable and shall specify (w) the amount requested as
the principal amount of such Loan; (x) the Business Day of Lender on which such Loan is
requested to be made; (y) whether the requested Loan is to be a Prime Loan or a LIBOR Loan, (z)
if the requested Loan is to be a LIBOR Loan, the applicable Interest Period, and, with respect a
Loan for a Letter of Credit such additional information and supporting detail as Lender may
request.

     (iii) The decision whether to honor such Loan Request and make such Loan shall be in the
sole discretion of Lender. Lender may treat as made by Borrower and rely upon, and Borrower
shall be bound by, any Loan Request that Lender in good faith believes to be valid and to have
been made in the name or on behalf of Borrower by any agent or representative of Borrower, and
Lender shall not incur any liability to Borrower or any other person as a direct or indirect
result of honoring such Loan Request and making such Loan.

b. Rate Absent LIBOR Rate Election. Unless, in accordance with this Note, Borrower has selected
the LIBOR Rate with respect to a portion of this Note, such portion of this Note shall be deemed to
be a Prime Loan, and such Prime Loan shall continue in effect until the earlier of when the LIBOR
Rate and Interest Period are available and properly selected, or until this Note is paid in full.

c. Rate Conversion Election. Borrower may elect to (i) convert any portion of a Prime Loan to a
LIBOR Loan, (ii) convert a LIBOR Loan to a Prime Loan, or (iii) continue any LIBOR Loan or Prime
Loan as a new loan of the same type provided, however, LIBOR Loans may only be converted on the
expiration date of the applicable Interest Period. Borrower’s option shall be elected by providing
a fully completed Rate Election Notice to Lender by 11:00 a.m. eastern United States at least three
(3) Business Days prior to the effective date of the requested rate change. Any such Rate Election
Notice electing the LIBOR Rate shall be irrevocable.

d. Restrictions on availability of LIBOR Rate; Implementation of Prime-based Rate; Supplemental
Charges.

     (i) If Lender determines (which determination shall be conclusive and binding upon
Borrower, absent manifest error) (A) that dollar deposits in an amount approximately equal

24

 

to advances outstanding hereunder are not generally available at such time in the London
interbank market for deposits in dollars, (B) that the rate at which such deposits are being
offered will not adequately and fairly reflect the cost to Lender of maintaining a LIBOR Rate on
the advances outstanding hereunder due to circumstances affecting the London interbank market
generally, (C) that reasonable means do not exist for ascertaining a LIBOR Rate, or (D) that a
LIBOR Rate would be in excess of the maximum interest rate which Borrower may by law pay, then,
in any such event, Lender shall so notify Borrower and all portions of Loans bearing interest at
a LIBOR Rate that are so affected shall, as of the date of such notification with respect to an
event described in clause (B) or (D) above, or as of the expiration of the month with respect to
an event described in clause (A) or (C) above, bear interest at the Prime Rate until such time
as the situations described in this subsection d. (i) are no longer in effect.

     (ii) If, because of the introduction of or any change in, or because of any judicial,
administrative, or other governmental interpretation of, any law or regulation, it becomes
unlawful for Lender to make, fund, or maintain any advance at a LIBOR Rate, then (A) Lender
shall notify Borrower that Lender is no longer able to maintain the interest rate at a LIBOR
Rate, (B) the interest rate for any portion of the Loans for which the interest rate is then the
LIBOR Rate plus the LIBOR Margin shall automatically be converted to the Prime Rate, and (C)
Borrower shall pay to Lender the amount of Breakage Costs incurred in connection with such
conversion. Except as otherwise provided in this Note, the applicable interest rate shall
remain at the Prime Rate until such time as the situation described herein is no longer in
effect and Borrower elects to convert the Prime Loan to a LIBOR Loan.

     (iii) If, because of the introduction of or any change in, or because of any judicial,
administrative, or other governmental interpretation of, any law or regulation, there shall be
any increase in the cost to Lender of making, funding, maintaining, or allocating capital to any
Loan bearing interest at a LIBOR Rate, including a change in the Reserve Percentage, then
Borrower shall, from time to time upon demand by Lender, pay to Lender additional amounts
sufficient to compensate Lender for such increased cost.

e. Breakage Costs. If Borrower repays any advance bearing interest at the LIBOR Rate plus the
LIBOR Margin prior to the end of the Interest Period, Borrower shall reimburse Lender on demand for
the Breakage Costs. Calculation of the Breakage Costs shall be made as though Lender shall have
actually funded the relevant Loan through deposits or other funds acquired from third parties for
such purpose; provided, however, that Lender may fund any Loan bearing interest at the LIBOR Rate
plus the LIBOR Margin in any manner it sees fit and the foregoing assumption shall be utilized only
for purposes of calculation of amounts payable under this subsection. Lender will be entitled to
the Breakage Costs regardless of whether the prepayment is voluntary or involuntary (including
demand or acceleration of this Note upon Borrower’s default).

4. RIGHT TO MODIFY, RESTRICT, SUSPEND OR TERMINATE. The Credit is available subject to Lender’s
continuing review and right of modification, restriction, suspension or termination at any time for
any reason in the sole discretion of Lender. No modification, restriction, suspension or
termination of the Credit shall affect Borrower’s obligation to repay the principal amount of each
Loan, Borrower’s obligation to pay interest on the outstanding principal

25

 

amount of each Loan or any other obligation of Borrower to Lender pursuant to this Note or
otherwise.

5. SCHEDULE OF ADVANCES OR LOAN ACCOUNT. There shall be payable as principal pursuant to this Note
only so much of the Limiting Principal Amount as shall have been advanced by Lender as a Loan or
Loans and is outstanding. Lender shall set forth on its account records (including, but not
limited to, any computerized records) annotations evidencing (a) the date and principal amount of
each Loan, (b) the date and amount of each payment applied to the Outstanding Principal Amount and
(c) the Outstanding Principal Amount after each Loan and each such payment. Each such annotation
shall, in the absence of manifest error, be conclusive and binding upon Borrower. No failure by
Lender to make and no error by Lender in making any annotation on such attached schedule or any
such similar schedule or loan account shall affect Borrower’s obligation to repay the principal
amount of each Loan, Borrower’s obligation to pay interest on the outstanding principal amount of
each Loan or any other obligation of Borrower to Lender pursuant to this Note or otherwise.

6. PURPOSE OF LOANS. Borrower shall not obtain any Loan for any purpose other than for working
capital and issuance of Letters of Credit, the latter not to exceed, in the aggregate, the Letter
of Credit Limit.

7. Letter of Credit Fee. Issuance of each Letter of Credit shall require the payment of an
issuance fee of 1% of the stated amount thereof, together with such other customary fees as Lender
then charges for letters of credit.

8. FINANCIAL INFORMATION. Borrower shall provide, in form, detail and content satisfactory to
Lender, the following:

a. Within 120 days after the end of each fiscal year of Minrad International, Inc.
(“International”), a copy of its annual report filed under Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) (10K), which shall reflect consolidated data
for International, Borrower and all other subsidiaries of International;

b. Within 45 days after the end of each fiscal quarter of International, a copy of International’s
periodic report filed under Section 13 or 15(d) of the Exchange Act filings for such quarter, which
shall reflect consolidated data for International, Borrower and all other subsidiaries of
International;

c. Upon Lender’s request, a then-current accounts receivable aging report for Borrower and
International in reasonable detail; and

d. Such other financial and other information relating to the Collateral, Borrower or to any
guarantor of the Credit as Lender may reasonably request from time to time.

Borrower shall pay a late charge of $100 for failure to furnish each described item by the date
specified plus an additional late charge of $100 each month thereafter until such item is so
provided.

26

 

9. AMOUNTS IMMEDIATELY DUE. The Outstanding Principal Amount and all interest and other amounts
payable pursuant to this Note and remaining unpaid shall, without any notice, demand, presentment
or protest of any kind (each of which is knowingly, voluntarily, intentionally and irrevocably
waived by Borrower), automatically become immediately due if Borrower commences or there is
commenced against Borrower any bankruptcy or insolvency proceeding.

10. GOVERNING LAW. This Note shall be governed by and construed, interpreted and enforced in
accordance with the law of the State of New York and the federal law of the United States without
regard to the law of any other jurisdiction.

11. WAIVER OF TRIAL BY JURY AND CLAIMS TO CERTAIN DAMAGES. BORROWER KNOWINGLY, VOLUNTARILY,
INTENTIONALLY AND IRREVOCABLY WAIVES EACH RIGHT BORROWER MAY HAVE TO A TRIAL BY JURY WITH RESPECT
TO, AND EACH RIGHT TO ASSERT ANY CLAIM FOR DAMAGES (INCLUDING, BUT NOT LIMITED TO, PUNITIVE
DAMAGES) IN ADDITION TO ACTUAL DAMAGES IN, ANY ACTION OR OTHER LEGAL PROCEEDING, WHETHER BASED ON
ANY CONTRACT OR NEGLIGENT, INTENTIONAL OR OTHER TORT OR OTHERWISE, ARISING OUT OF OR OTHERWISE
RELATING TO (a) THE CREDIT, ANY LOAN OR COLLATERAL, THIS NOTE OR ANY OTHER WRITING HERETOFORE OR
HEREAFTER EXECUTED IN CONNECTION WITH THE CREDIT OR ANY LOAN OR COLLATERAL, (b) ANY TRANSACTION
ARISING OUT OF OR OTHERWISE RELATING TO THE CREDIT, ANY LOAN OR COLLATERAL, THIS NOTE OR ANY SUCH
OTHER WRITING OR (c) ANY NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT OF THE CREDIT, ANY
LOAN OR COLLATERAL, THIS NOTE OR ANY SUCH OTHER WRITING.

	 	 	 	 	 
	 	MINRAD INC.

 	 
	 	By:  	/s/ William H. Burns, Jr.
 	 
	 	 	William H. Burns, Jr. 	 
	 	 	Chief Executive Officer 	 
	 

27

 

SCHEDULE A TO OPTIONAL ADVANCE DEMAND NOTE DATED JUNE 15, 2007

IN AN AMOUNT NOT TO EXCEED $5,000,000.00

IRREVOCABLE INTEREST RATE ELECTION NOTICE

	 	 	 	 	 
	From:

	 	MINRAD, INC	 	 
	 
	 	 	 	 
	To:

	 	FIRST NIAGARA BANK	 	 
	 
	 	 	 	 
	Today’s Date:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Effective Date of Rate Election: (not sooner than the next Business Day)                                                             
	 
	 	 	 	 
	Elected Rate:

	 	o     30 day LIBOR	 	 
	 
	 	 	 	 
	 

	 	o      60 day LIBOR	 	 
	 
	 	 	 	 
	 

	 	o      90 day LIBOR	 	 
	 
	 	 	 	 
	 

	 	o      Prime Rate	 	 
	 
	 	 	 	 
	Loan Amount for which this Election is made:                                                              *	 	 
	 
	 	 	 	 
	 

	 	* Not less than $100,000, if electing a LIBOR Rate	 	 

	 	 	 	 	 
	 	MINRAD INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

[to be signed by any of William H. Burns, Jr.; Richard Tamulski, Vice President and Treasurer; and
William Rolfe, Vice President, Controller and Acting Chief Financial Officer]

28

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