Document:

EX-10.2 SUPPLEMENTAL INDENTURE DATED 9-4-07

 

Exhibit 10.2

SUPPLEMENTAL INDENTURE

     SUPPLEMENTAL INDENTURE (the “Supplemental Indenture”), dated as of September 4, 2007 between
PRG-Schultz International, Inc., a Georgia corporation (the “Company”), and U.S. Bank National
Association, as Trustee (the “Trustee”), to the Indenture between the Company and the Trustee,
dated as of March 17, 2006, as amended or supplemented from time to time, applicable to the 10%
Senior Convertible Notes due 2011 (the “Indenture”).

W I T N E S S E T H:

     WHEREAS, the Company has requested the Trustee to enter into this Supplemental Indenture for
the purpose of amending the Indenture in accordance with Sections 9.02 and 9.06 of the Indenture,
as more particularly described below; and

     WHEREAS, consents of the Holders of at least a majority in aggregate principal amount of the
Notes (as defined in the Indenture) to the execution of this Supplemental Indenture, in accordance
with Section 9.02 of the Indenture, have been delivered to the Trustee.

     NOW, THEREFORE, intending to be legally bound hereby, the parties hereto agree as follows:

ARTICLE I

AMENDMENTS TO THE INDENTURE

     Section 1.1 Section 3.01 of the Indenture is amended hereby by deleting the first paragraph
thereof in its entirety and replacing such first paragraph with the following:

     The Notes are not redeemable unless one of the following has occurred: (i) payment in
full by the Company of the Non-Convertible Notes including without limitation, accrued but
unpaid interest, pre-payment penalties, fees and other expenses due thereunder or (ii) the
issuance by the Company of a redemption notice for the redemption in full, but not in part,
of the Non-Convertible Notes, so long as such redemption date for the Non-Convertible Notes
is on or prior to the applicable redemption date for the Notes (the conditions described in
clauses (i) and (ii), the “OPTIONAL REDEMPTION CONDITIONS”). On and after the first date
on which either of the Optional Redemption Conditions has occurred, the Company may, at its
option, redeem the Notes at any time and from time to time (subject to the provisions of
Section 3.02 hereof regarding prior notice to the Trustee), on any date prior to Stated
Maturity, upon notice as set forth in Section 3.04, at a redemption price of $1,000 per
$1,000 principal amount of Notes (the “OPTIONAL REDEMPTION PRICE”), plus any interest
accrued but not paid prior to (but not including) the Optional Redemption Date.

     Section 1.2 Section 3.02 of the Indenture is hereby amended by deleting the first sentence
thereof in its entirety and replacing such first sentence with the following:

 

 

     If the Company elects to redeem Notes pursuant to the redemption provisions of Section
3.01 hereof, it shall notify the Trustee at least 15 days prior but not more than 60 days
prior to the Redemption Date of such intended Redemption Date, the principal amount of
Notes to be redeemed and the CUSIP numbers of the Notes to be redeemed.

     Section 1.3 Section 3.04 of the Indenture is hereby amended by deleting the second sentence
thereof in its entirety and replacing such second sentence with the following:

     Subject to Section 3.04 hereof, such notice shall be given not less than 15 nor more
than 60 days prior to the Redemption Date for redemption pursuant to Section 3.01.

ARTICLE II

EFFECTIVE TIME

     The effectiveness of this Supplemental Indenture shall be subject to the execution and
delivery by the parties hereto. Upon the satisfaction of this condition precedent, this
Supplemental Indenture shall become effective without any further action by any Person as of the
date hereof.

ARTICLE III

MISCELLANEOUS PROVISIONS

     Section 3.1 The Indenture, as amended and modified by this Supplemental Indenture, is in all
respects ratified and confirmed; this Supplemental Indenture shall be deemed part of the Indenture
in the manner and to the extent herein and therein provided; and all the terms, conditions, and
provisions of the Indenture shall remain in full force and effect, as amended and modified hereby.

     Section 3.2 This Supplemental Indenture shall be deemed to be a contract made under the laws
of the State of New York, and for all purposes shall be construed in accordance therewith.

     Section 3.3 The recitals herein contained are made by the Company and not by the Trustee, and
the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no
representation as to the validity or sufficiency of this Supplemental Indenture.

     Section 3.4 This Supplemental Indenture may be executed in any number of counterparts and by
different parties thereto on separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall
constitute but one and the same agreement.

     Section 3.5 Capitalized terms used herein without definition have the meanings assigned such
terms in the Indenture.

[signature page to immediately follow]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and their respective corporate seals to be hereunto affixed and attested, all as of the
date hereof.

	 	 	 	 	 
	 	PRG-SCHULTZ INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Peter Limeri
 	 
	 	Name:	  	Peter Limeri 	 
	 	Title:	  	Chief Financial Officer and Treasurer 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	/s/ Paul L. Henderson
 	 
	 	Name:	  	Paul L. Henderson 	 
	 	Title:	 	Assistant Vice PresidentEX-10.1

 

Exhibit 10.1

THE CROGHAN COLONIAL BANK

EMPLOYMENT AGREEMENT WITH STEVEN C. FUTRELL

DATED AND EFFECTIVE AUGUST 29, 2007

            THIS EMPLOYMENT AGREEMENT, effective as of August 29, 2007 (this “Agreement”), is made by and
between The Croghan Colonial Bank (the “Bank”), and Steven C. Futrell (the “Executive”).

            WHEREAS, the parties previously entered into an Employment Agreement dated and effective as of
April 16, 2001 and a subsequent Employment Agreement dated and effective as of April 16, 2004; and

            WHEREAS, the parties wish to continue the employment relationship between the Bank and the
Executive on the terms and conditions herein provided;

            NOW THEREFORE, in consideration of the foregoing and of the respective covenants and
agreements set forth below, the parties hereto agree as follows:

Section 1. Certain Definitions.

	 	a.	 	“Annual Base Salary” shall have the meaning set forth in Section 5.a.
	 
	 	b.	 	“Board” shall mean the Board of Directors of the Bank or any committee thereof
duly created or authorized by the Board to act in its behalf.
	 
	 	c.	 	The Bank shall have “Cause,” in the discretion of the Board, to Terminate the
Executive’s employment hereunder upon Executive’s:

	 	i.	 	willful and material failure to perform his duties hereunder,
other than any such failure resulting from the Executive’s Disability, as
determined by the Board;
	 
	 	ii.	 	conviction of a felony or a crime involving moral turpitude; or
	 
	 	iii.	 	fraud or personal dishonesty.

	 	d.	 	“Bank” shall have the meaning set forth in the preamble hereto.
	 
	 	e.	 	“Code” shall mean the Internal Revenue Code of 1986, as amended.
	 
	 	f.	 	“Corporate Transaction” shall mean a “change in control event” under
Treasury Regulations §§1.409A-3(i)(5)(v), 1.409A-3(i)(5)(vi)(A)(1) and
1.409A-3(i)(5)(vii) promulgated under Code §409A, with respect to either the Bank or
Croghan, which includes certain changes in ownership, certain changes in

 

 

	 	 	 	effective control due to the acquisition of common shares, or certain changes in the
ownership of a substantial portion of assets.

	 	g.	 	“Croghan” shall mean Croghan Bancshares, Inc.
	 
	 	h.	 	“Date of Termination” shall mean:

	 	i.	 	if the Executive’s employment is Terminated by his death, the
date of his death, or
	 
	 	ii.	 	if the Executive’s employment is Terminated pursuant to any
other provision of Section 6.a. of this Agreement, the date specified in the
Notice of Termination.

	 	i.	 	“Disability” shall mean the absence of the Executive from the Executive’s
duties to the Bank on a full-time basis for a total of six (6) months during any twelve
(12) month period as a result of incapacity due to any injury or to mental or physical
illness which is determined to be reasonably likely to extend beyond the completion of
the Term by a physician selected by the Bank and acceptable to the Executive or the
Executive’s legal representative (such agreement as to acceptability not to be withheld
unreasonably).
	 
	 	j.	 	“Effective Date” shall mean the date first set forth in the preamble hereto.
	 
	 	k.	 	“Executive” shall have the meaning set forth in the preamble hereto.
	 
	 	l.	 	“Good Reason” shall mean any action or inaction that constitutes a material
breach by the Bank, or any successor, of this Agreement that occurs without the consent
of the Executive; provided that (i) the Executive provides notice of such condition to
the Bank within thirty (30) days of the initial existence of the condition, (ii) the
Bank does not remedy the condition within thirty (30) days following receipt of such
notice (the “Cure Period”), and (iii) the Executive Terminates within ten (10) days
following the end of the Cure Period.
	 
	 	m.	 	“Notice of Termination” shall have the meaning set forth in Section 6.b. of
this Agreement.
	 
	 	n.	 	“Severance Period” shall have the meaning set forth in Section 7.a.i. or
7.a.ii. of this Agreement.
	 
	 	o.	 	“Term” shall have the meaning set forth in Section 2 of this Agreement.
	 
	 	p.	 	“Termination” shall mean a “separation from service” as defined under Treasury
Regulation §1.409A-1(h).

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Section 2. Employment.

The Bank shall employ the Executive and the Executive shall work in the employ of the Bank for the
period set forth in this Section 2, in the position or positions set forth in Section 3, and upon
the other terms and conditions herein provided. The term of this Agreement shall
commence upon the effective date of this Extension and end on the third anniversary thereof (the
“Term”). The parties agree to confer, in good faith, six (6) months prior to the
termination of this Agreement on any extension or renegotiation. If the time period specified in
this Agreement should expire before any written extension or renegotiation is completed, both
parties agree that the terms and conditions of this Agreement shall remain in full force and effect
until a new agreement between the parties is reached, a written extension of this Agreement is
signed by the parties or either party gives notice of its intention not to extend this Agreement or
enter into a new agreement. The parties agree that the purpose of this Section 2 of this Agreement
is to provide continuity of the rights and obligations of both parties in the event a new agreement
or extension of this Agreement is not completed by expiration of the Term. This Section 2 is not
meant to create and does not create a guarantee of employment to Executive.

Section 3. Position and Duties.

	 	a.	 	The Executive shall serve as the President and Chief Executive Officer of the
Bank. In such capacity, the Executive shall have such customary responsibilities,
duties, and authority as may from time to time be assigned by the Board. The Executive
shall devote substantially all his working time and efforts to the business and affairs
of the Bank. The Executive shall not be required to perform any of his duties in a
manner inconsistent with applicable law or the Bank’s Code of Ethics and Standards of
Conduct. Except as modified herein, Executive’s employment shall be subject to all
rules and regulations applicable to employees of the Bank as those rules and
regulations may be altered or amended from time to time. The Executive will be
evaluated on his performance annually by a committee of the Board.
	 
	 	b.	 	If elected or appointed thereto, and only for the duration of such elected term
or appointment, Executive shall, in addition to the position(s) set forth in Section
3.a. of this Agreement, serve as a director of the Bank and/or any of its subsidiaries,
and/or in one or more executive offices of any other subsidiaries of the Bank.

Section 4. Place of Performance.

In connection with his employment during the Term, the Executive shall be based in Fremont, Ohio.

Section 5. Compensation and Related Matters.

	 	a.	 	Annual Base Salary. The Executive shall receive an Annual Base Salary of
$194,900, effective January 1, 2007. The Executive’s Annual Base Salary shall be
subject to adjustment during the Term in accordance with the salary administration
program currently in effect for all Bank employees.

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	 	b.	 	Benefits. The Executive shall be entitled to participate in the employee
benefit plans, programs, and arrangements of the Bank now or hereafter in effect which
are applicable to the senior officers of the Bank, subject to and on a basis consistent
with the terms, conditions, and overall administration thereof.
	 
	 	c.	 	Expenses. The Bank shall reimburse the Executive for all reasonable travel and
other business expenses incurred by him in the performance of his duties to the Bank,
in accordance with the Bank’s expense reimbursement policy.
	 
	 	d.	 	Vacation. Notwithstanding any other provision in the Bank’s employee handbook,
the Executive shall be entitled to six (6) weeks paid vacation per year effective as of
January 1, 2007.

Section 6. Termination.

	 	a.	 	The Executive’s employment hereunder may be Terminated by the Bank or the
Executive, as applicable, without any breach of this Agreement only under the following
circumstances:

	 	i.	 	Death. The Executive’s employment hereunder shall Terminate
upon his death.
	 
	 	ii.	 	Disability. If the Executive has incurred a Disability, the
Bank may give the Executive written notice of its intention to Terminate the
Executive’s employment. In such event, the Executive’s employment with the
Bank shall Terminate effective on the 30th day after receipt of such notice by
the Executive, provided that within 30 days after such receipt, the Executive
shall not have returned to full-time performance of his duties. The Executive
shall continue to receive his Annual Base Salary until the Date of Termination.
	 
	 	iii.	 	Cause. The Bank may Terminate the Executive’s employment
hereunder for Cause.
	 
	 	iv.	 	Good Reason. The Executive may Terminate his employment for
Good Reason.
	 
	 	v.	 	Without Cause. The Bank may Terminate the Executive’s
employment hereunder without Cause. If within 24 months following a Corporate
Transaction the acquiring entity Terminates Executive, such Termination shall
be considered a Termination without Cause.
	 
	 	vi.	 	Resignation without Good Reason. The Executive may resign his
employment without Good Reason upon sixty (60) days prior written notice to the
Bank; provided that, if the Executive Retires, as defined in

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	 	 	 	Section 7.g.i. of this Agreement, he shall make a good faith effort to
provide the Bank with one (1) year prior written notice.

	 	b.	 	Notice of Termination. Any Termination of the Executive’s employment by the
Bank or by the Executive under this Section 6, other than Termination pursuant to
Section 6.a.i. of this Agreement, shall be communicated by written notice to the other
party hereto indicating the specific Termination provision in this Agreement relied
upon, setting forth in reasonable detail the facts and circumstances claimed to provide
a basis for Termination of the Executive’s employment under the provision so indicated,
and specifying a Date of Termination which, except in the case of Termination for
Cause, shall be at least fourteen (14) days following the date of such notice (a
“Notice of Termination”).

Section 7. Severance Payments.

	 	a.	 	Termination without Cause or for Good Reason. If the Executive is Terminated
without Cause pursuant to Section 6.a.v. of this Agreement or Terminates for Good
Reason pursuant to Section 6.a.iv. of this Agreement, the Executive shall be entitled
to the following:

	 	i.	 	A severance payment equal to two times the Annual Base Salary
of the Executive on the Date of Termination payable in a lump sum within sixty
(60) days after the Date of Termination.
	 
	 	ii.	 	A payment equal to seven (7) percent of the severance payment
the Executive is entitled to receive pursuant to Section 7.a.i. of this
Agreement, plus an additional payment equal to all federal, state and local
income and employment taxes incurred due to such additional severance payment,
payable in a lump sum within sixty (60) days after the Date of Termination.
The intent of this payment is to compensate the Executive for matching
contributions the Bank would have paid to his account under the Bank’s 401(k)
Profit Sharing Plan if the Executive remained employed by the Bank.
	 
	 	iii.	 	For the duration of the applicable continuation coverage period
under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
(“COBRA”), the Executive shall be eligible to participate in any health
insurance plans maintained by the Bank (including coverage of his spouse);
provided, that the Executive pays that portion of any health insurance premium
(necessary to cover both the Executive and his spouse) which would have
otherwise been paid by the Executive for coverage under the Bank’s plan(s)
during his employment (determined as of the Date of Termination). At the end
of such COBRA continuation coverage period, the Executive, if Retired (as
defined in Section 7.g.i. of this Agreement), shall be eligible to participate,
at his own expense, in any health insurance plan as provided in Section 7.g.ii
of this Agreement. Within five (5) working days following the end of the COBRA

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	 	 	 	continuation coverage period, the Bank shall make a lump sum payment to the
Executive in an amount equal to (A) the difference between the total health
insurance premium (necessary to cover both the Executive and his spouse) and
that portion of the premium which would otherwise have been paid by the
Executive for coverage under the Bank’s plan(s) during his employment,
multiplied by (B) the difference between 24 and the number of months in the
COBRA continuation coverage period.

	 	iv.	 	For a period of twenty-four (24) months following the Date of
Termination, the Bank will provide the Executive with the benefits (at
substantially the level in effect for each benefit upon the Date of
Termination) listed on Schedule 1, attached hereto.

	 	b.	 	Termination Due to a Corporate Transaction. If the Executive is Terminated
within twenty-four (24) months following a Corporate Transaction pursuant to Section
6.a.v. of this Agreement, the Executive shall be entitled to the following:

	 	i.	 	A severance payment equal to three (3) times the Annual Base
Salary of the Executive on the Date of Termination payable in a lump sum within
sixty (60) days after the Date of Termination.
	 
	 	ii.	 	A payment equal to seven (7) percent of the severance payment
the Executive is entitled to receive pursuant to Section 7.b.i. of this
Agreement, plus an additional payment equal to all federal, state and local
income and employment taxes incurred due to such additional severance payment,
payable in a lump sum within sixty (60) days after the Date of Termination.
The intent of this payment is to compensate the Executive for matching
contributions the Bank would have paid to his account under the Bank’s 401(k)
Profit Sharing Plan if the Executive remained employed by the Bank.
	 
	 	iii.	 	For the duration of the applicable COBRA continuation coverage
period, the Executive shall be eligible to participate in any health insurance
plans maintained by the Bank (including coverage of his spouse); provided, that
the Executive pays that portion of any health insurance premium (necessary to
cover both the Executive and his spouse) which would have otherwise been paid
by the Executive for coverage under the Bank’s plan(s) during his employment
(determined as of the Date of Termination). At the end of such COBRA
continuation coverage period, the Executive, if Retired (as defined in Section
7.g.i. of this Agreement), shall be eligible to participate, at his own
expense, in any health insurance plan as provided in Section 7.g.ii of this
Agreement. Within five (5) working days following the end of the COBRA
continuation coverage period, the Bank shall make a lump sum payment to the
Executive in an amount equal to (A) the difference between the total health
insurance premium (necessary to cover both the Executive and his spouse) and
that portion of the premium which would otherwise have been paid by the

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	 	 	 	Executive for coverage under the Bank’s plan(s) during his employment,
multiplied by (B) the difference between 36 and the number of months in the
COBRA continuation coverage period.

	 	iv.	 	For the period beginning on the Date of Termination and ending
on the last day of the second taxable year of the Executive following the
taxable year during which the Date of Termination occurred (the “Continuation
Period”), the Bank will provide the Executive with the benefits (at
substantially the level in effect for each benefit upon the Date of
Termination) listed on Schedule 1, attached hereto. On the last day of
the Continuation Period, the Bank shall pay to the Executive in a single lump
sum payment an amount equal to the premiums required to be paid to continue the
benefits described in this Section 7.b.iv. through the 36th month
following the Date of Termination. The amount of such premiums shall be equal
to the aggregate amount of the monthly premiums in effect at the end of the
Continuation Period, multiplied by the number of months remaining in the
36-month period following the Date of Termination after the Continuation
Period. Such payment shall be made within the five (5) working days following
the end of the Continuation Period.

	 	 	The payments required by this Section 7. b. shall be in lieu of any payments to which the
Executive would otherwise be entitled under Section 7.a. of this Agreement. Furthermore,
the Bank shall require, as part of any Corporate Transaction, that the entity with which the
Bank engages in the Corporate Transaction assumes all liability for the severance payments
and benefits to be made and/or provided to the Executive under this Section 7.b.

	 	c.	 	Reduction in Force. The payments required by Sections 7.a. and 7.b. of this
Agreement shall be in lieu of any payments to which the Executive would otherwise be
entitled under the Bank’s general severance policy pertaining to reductions in force.
	 
	 	d.	 	Six-Month Distribution Delay. If the Executive is a “specified employee,”
within the meaning of Code §409A and as determined under Croghan’s policy for
determining specified employees, on the Date of Termination, all payments and benefits
under this Section 7 (other than payments and benefits that are short-term deferrals,
as defined in Treasury Regulation §1.409A-1(b)(4), or that are treated as separation
pay under Treasury Regulation §1.409A-1(b)(9)(iii) or §1.409A-1(b)(9)(v)) shall not be
paid or provided (or commence to be paid or provided) until the first business day
after the date that is six (6) months following the Date of Termination (or, if
earlier, the Executive’s death). The payment made on the first business day after the
date that is six (6) months following the Date of Termination shall include the
cumulative amount of any amounts that could not be paid or provided during such
six-month period.
	 
	 	e.	 	Code §280G. Notwithstanding any other provision herein or in any other plan or
arrangement maintained by the Bank or any of its affiliates to the contrary, to the

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	 	 	 	extent that any payment or distribution of any type to or for the benefit of the
Executive by the Bank or any of its affiliates, whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or otherwise
(collectively, the “Total Payments”) is or will be subject to the excise tax imposed
under Code §4999, or similar successor provision, then the Total Payments shall be
reduced (but not below zero) so that the maximum amount of the Total Payments after
reduction shall be one dollar ($1.00) less than the amount which would cause the
Total Payments to be subject to the excise tax imposed under Code §4999. Any such
reduction shall be made by reducing any cash severance benefits. Unless the Bank
and the Executive otherwise agree in writing, any determination required under this
Section 7.e. shall be made in writing by the financial accountants of the Bank whose
determination shall be conclusive and binding upon the Bank and the Executive for
all purposes. The Bank and the Executive shall furnish to the accountants such
information and documents as the accountants may reasonably request in order to make
a determination under this Section 7.e.

	 	f.	 	Survival. The expiration or termination of the Term shall not impair the
rights or obligations of any party hereto which shall have accrued hereunder prior to
such expiration.
	 
	 	g.	 	Retiree Medical Benefits.

	 	i.	 	The Executive shall be eligible for “Retirement” upon attaining
the age of fifty-five (55) and completing six (6) consecutive years of service
with the Bank. The Bank and the Executive hereby acknowledge that application
of this definition entitles the Executive to Retire at anytime during the
Term.
	 
	 	ii.	 	On the Date of Termination, if the Bank provides medical insurance that
permits retired employees of the Bank to participate in such plan at the
retiree’s expense, the Executive, if Retired, shall be eligible to participate,
at his own expense, in such medical insurance plan. However, on the Date of
Termination, if the Bank does not provide medical insurance that permits
retired employees of the Bank to participate in such plan, then the Bank shall
pay to the Executive, if Retired, a lump sum payment within sixty (60) days
after the Date of Termination equal to the present value of, that portion of
any health insurance premium paid by the Executive for comparable private
family medical insurance coverage which exceeds the premiums that would have
otherwise been paid by the Executive for coverage under the Bank’s plan
(determined as of the last date the Bank maintained such a Plan), multiplied by
the actuarially determined life expectancy of the Executive.

Section 8. Competition.

	 	a.	 	Executive shall not, at any time during the Term, and, if Executive’s
employment is Terminated by the Executive without Good Reason, or by the Bank for
Cause,

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	 	 	 	then during the twenty-four (24) month period following such Date of Termination,
without the prior written consent of the Board, directly or indirectly engage in, or
have any interest in or manage or operate any Bank or financial institution located
within a fifty (50) mile radius of Fremont, Ohio, whether such engagement occurs in
the capacity of a director, officer, employee, agent, representative, partner,
security holder, consultant, or otherwise or solicit any customer or employee of the
Bank for any purpose; provided, however, that Executive shall be permitted to
acquire a stock interest in such a corporation provided such stock is publicly
traded and the stock so acquired is not more than one (1) percent of the outstanding
shares of such corporation.

	 	b.	 	In the event that the provisions of Section 8.a. of this Agreement shall be
determined by any court of competent jurisdiction to be unenforceable by reason of its
extending for too great a period of time or over too great a geographical area or by
reason of its being too extensive in any other respect, then such provisions shall be
interpreted to extend only over the maximum period of time for which it may be
enforceable, and/or over the maximum geographical area as to which it may be
enforceable, and/or to the maximum extent in all other respects as to which it may be
enforceable, all as determined by such court in such action.

Section 9. Nondisclosure of Proprietary Information.

	 	a.	 	Except as required in the faithful performance of the Executive’s duties
hereunder or pursuant to Section 9.c. of this Agreement, Executive shall, in
perpetuity, maintain in confidence and shall not directly or indirectly use,
disseminate, disclose, or publish, or use for his benefit or the benefit of any person,
firm, corporation, or other entity any confidential or proprietary information or trade
secrets of or relating to the Bank, including, without limitation, information with
respect to the Bank’s operations, processes, products, inventions, business practices,
finances, principals, vendors, suppliers, customers, potential customers, marketing
methods, costs, prices, contractual relationships, regulatory sums, compensation paid
to employees or other terms of employment, or deliver to any person, firm, corporation
or other entity any document, record, notebook, computer program, or similar repository
of or containing any such confidential or proprietary information or trade secrets. The
parties hereby stipulate and agree that as between them the foregoing matters are
important, material, confidential, and proprietary information and trade secrets and
affect the successful conduct of the business of the Bank.
	 
	 	b.	 	Upon Termination of Executive for any reason, the Executive shall promptly
deliver to the Bank all correspondence, drawings, manuals, letters, notes, notebooks,
reports, programs, plans, proposals, financial documents, or any other documents which
either concern the Bank’s customers, business plans, marketing strategies, products, or
processes, or which contain proprietary information or trade secrets of the Bank.

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	 	c.	 	Executive may respond to a lawful and valid subpoena or other legal process
seeking any of the information or material referred to in Sections 9.a. or 9.b. of this
Agreement, but shall give the Bank the earliest possible notice thereof, and shall, as
much in advance of the return date as possible, make available to the Bank and its
counsel the documents and other information sought and shall assist such counsel in
resisting or otherwise responding to such process.

Section 10. Injunctive Relief.

The Executive recognizes and acknowledges that a breach of the covenants contained in Sections 8
and 9 of this Agreement would cause irreparable damage to the Bank and its goodwill, the exact
amount of which would be difficult or impossible to ascertain, and that the remedies at law for any
such breach would be inadequate. Accordingly, Executive agrees that in the event of a breach of
any of the covenants contained in Sections 8 and 9 of this Agreement, in addition to any other
remedy which may be available at law or in equity, the Bank shall be entitled to specific
performance and injunctive relief.

Section 11. Successors and Assigns.

This Agreement shall be binding upon and inure to the benefit of the Bank, the Executive, and their
respective successors, assigns, personnel and legal representatives, executors, administrators,
heirs, distributes, devisees, and legatees, as applicable; provided, however, that the Executive
acknowledges that this Agreement is a personal services contract and is therefore not assignable by
Executive.

Section 12. Governing Law.

This Agreement shall be governed, construed, interpreted, and enforced in accordance with the laws
of the State of Ohio.

Section 13. Validity.

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

Section 14. Notices.

Any notice, request, claim, demand, document, or other communication hereunder to any party shall
be effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally
or sent by fax, electronic mail, or certified or registered mail, postage prepaid, as follows:

	 	a.	 	If to the Bank:

Pamela J. Swint, AVP/Human Resources Manager

The Croghan Colonial Bank

323 Croghan Street

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	 	 	 	Fremont, OH 43420

	 	b.	 	If to the Executive, to him at the address set forth below under his signature
on the last page of this Agreement; or to any other address as any party shall have
specified for itself by notice in writing to the other parties.

Section 15. Counterparts.

This Agreement may be executed in several counterparts, each of which shall be deemed to be an
original, but all of which together will constitute one and the same agreement, which shall be
sufficiently evidenced by any one of such original counterparts.

Section 16. Scope of Agreement.

The terms of this Agreement are intended by the parties to constitute the final expression of their
agreement with respect to the employment of the Executive by the Bank and may not be contradicted
by evidence of any prior or contemporaneous agreement. The parties further intend that this
Agreement shall constitute the complete and exclusive statement of its terms and that no extrinsic
evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding to
vary the terms of this Agreement.

Section 17. Amendments and Waivers.

This Agreement may not be modified, amended, or terminated except by an instrument in writing,
signed by the Executive and by a member of the Board acting under the express authority of the
Board. No right or power under this Agreement, including but not limited to any right of
Termination by either party under Section 6 of this Agreement, shall be waived except by an
instrument in writing, signed by the party whose right or power is thereby being waived. No such
waiver shall operate as a waiver of, or estoppel with respect to, any other or subsequent failure.
No failure to exercise and no delay in exercising any right, remedy, or power hereunder shall
preclude any other or further exercise of such or any other right, remedy, or power provided herein
or by law or in equity.

Section 18. No Inconsistent Actions.

The parties hereto shall not voluntarily undertake or fail to undertake any action or course of
action inconsistent with the provisions or essential intent of this Agreement. Furthermore, it is
the intent of the parties hereto to act in a fair and reasonable manner with respect to the
interpretation and application of the provisions of this Agreement.

Section 19. Arbitration.

Any dispute or controversy arising under or in connection with this Agreement shall be settled
exclusively by arbitration, conducted before a panel of three arbitrators in accordance with the
rules of the American Arbitration Association then in effect. The arbitration shall be held at a
location mutually agreed to by the parties. If no agreement can be reached, then the arbitration
shall be held in Toledo, Ohio at a location designated by the arbitration chairperson. The Bank

11

 

shall be entitled to pick one arbitrator and Executive shall pick an arbitrator. The two
arbitrators so chosen shall submit names for a third arbitrator to Bank and Executive. The third
arbitrator chosen shall serve as chairperson. Following the selection of arbitrators, a time for
arbitration mutually convenient to all parties shall be chosen. Judgment may be entered on the
arbitrator’s award in any court having jurisdiction; provided, however, that the Bank shall be
entitled to seek a restraining order or injunction in any court of competent jurisdiction to
prevent any continuation of any violation of the provisions of Sections 8 or 9 of this Agreement
and the Executive hereby consents that such restraining order or injunction may be granted without
the necessity of the Bank’s posting any bond; and provided further that the Executive shall be
entitled to seek specific performance of his right to be paid until the Date of Termination during
the pendency of any dispute or controversy arising under or in connection with this Agreement. The
fees and expenses of the arbitrators shall be borne by the Bank.

            IN WITNESS WHEREOF, the parties have executed this Employment Agreement by and between The
Croghan Colonial Bank and Steven C. Futrell on August 29, 2007.

	 	 	 	 	 	 	 
	BANK

	 	 
	 	EXECUTIVE
	 	 
	 
	 	 	 	 	 	 
	/s/ Daniel W. Lease

	 	 	 	/s/ Steven C. Futrell	 	 
	 

	 	 	 	 	 	 
	Name: Daniel W. Lease

	 	 	 	Steven C. Futrell	 	 
	Title:   Chairman, Compensation Committee

	 	 	 	Address: 297 Greenbriar Cir.	 	 
	 

	 	 	 	Fremont, Ohio 43420	 	 

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SCHEDULE 1

Benefits Pursuant to Sections 7.a.iv. and 7.b.iv. of

the Employment Agreement with Steven C. Futrell

As provided in Sections 7.a.iv and 7.b.iv of the Employment Agreement (the “Agreement”) by and
between The Croghan Colonial Bank (the “Bank”) and Steven C. Futrell (the “Executive”), the Bank
shall provide to the Executive the following benefits to the extent the Executive was entitled to
participate in the following plans and programs maintained by the Bank immediately prior to the
Date of Termination as defined in the Agreement, at the same premium cost to the Executive and at
the same coverage level as in effect immediately preceding the Date of Termination:

	 	(1)	 	Dental Insurance
	 
	 	(2)	 	Vision Insurance
	 
	 	(3)	 	Provident Life Insurance
	 
	 	(4)	 	Voluntary Benefits (Life & Long Term Care, Cancer, Heart/Stroke)
	 
	 	(5)	 	Employee Assistance Program (End of month of DOT)
	 
	 	(6)	 	2002 Stock Option Plan (no awards have been granted)
	 
	 	(7)	 	Supplemental Retirement Plan/Bank-Owned Life Insurance ($25,000 death benefit
 — non-forfeiture)
	 
	 	(8)	 	Fremont Country Club Fees
	 
	 	(9)	 	Rotary Service Club Fees

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