Document:

Exhibit 4.4

Exhibit 4.4

Execution Version

CONTINUING SECURITY AGREEMENT

This CONTINUING SECURITY AGREEMENT is entered into as of October 27, 2010 by and between
                                        , an Ohio                     , having its principal office at 250 East Broad Street,
Columbus, Ohio 43215 (the “Debtor”), and Fifth Third Bank, having its principal office at 21 East
State Street, Columbus, Ohio 43215 (the “Bank”).

Background Information

A. The Debtor and the Bank are entering into a Credit Agreement of even date herewith (as it
may be amended, modified, supplemented, extended, renewed, restated or replaced from time to time,
the “Loan Agreement”). The Debtor is entering into this Continuing Security Agreement (as it may
be amended, modified, supplemented, extended, renewed, restated or replaced from time to time, the
“Security Agreement”) in order to induce the Bank to enter into and extend credit from time to time
to the Debtor, including without limitation, under the Loan Agreement.

B. The Debtor is a member of a holding Company system as defined in Ohio Revised Code Section
3901.32; accordingly, Debtor is not granting a security interest in any property which would not be
permitted under the Insurance Laws of the State of Ohio.

Provisions

NOW, THEREFORE, as an inducement to and in consideration of the Bank providing such credit
facilities, the mutual obligations contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Debtor and the Bank do hereby
agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1 Terms Defined in Loan Agreement. All capitalized terms used herein and
not otherwise defined shall have the meanings assigned to such terms in the Loan Agreement.

Section 1.2 Terms Defined in Ohio Uniform Commercial Code. Terms defined in the Ohio
Uniform Commercial Code which are not otherwise defined in this Security Agreement are used herein
as defined in the Ohio Uniform Commercial Code as in effect from time to time (the “UCC”).
References to articles and sections of articles of the UCC shall refer to such articles and
sections as enacted by the State of Ohio and in effect from time to time.

Section 1.3 Definitions of Certain Terms Used Herein. As used in this Security
Agreement, in addition to the terms defined in the Background Information section above, the
following terms shall have the following meanings:

 

 

 

“Accounts” means “account” as defined in Article 9 of the UCC, which definition, as of
the date of this Security Agreement, means a right to payment of a monetary obligation, whether or
not earned by performance, (i) for property that has been or is to be sold, leased, licensed,
assigned, or otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a
policy of insurance issued or to be issued, (iv) for a secondary obligation incurred or to be
incurred, (v) for energy provided or to be provided, (vi) for the use or hire of a vessel under a
charter or other contract, (vii) arising out of the use of a credit or charge card or information
contained on or for use with the card or (viii) as winnings in a lottery or other game of chance
operated or sponsored by a state, governmental unit of a state, or Person licensed or authorized to
operate the game by a state or governmental unit of a state. “Account” includes a
Health-Care-Insurance Receivable. “Account” does not include (i) rights to payment evidenced by
Chattel Paper or an Instrument, (ii) Commercial Tort Claims, (iii) Deposit Accounts, (iv)
Investment Property, (v) Letter-of-Credit Rights or letters of credit or (vi) rights to payment for
money or funds advanced or sold, other than rights arising out of the use of a credit or charge
card or information contained on or for use with the card.

“Article” means a numbered article of this Security Agreement, unless another document
is specifically referenced.

“Chattel Paper” means “chattel paper” as defined in Article 9 of the UCC, which
definition, as of the date of this Security Agreement, means a record that evidences both a
monetary obligation and a security interest in specific Goods, a security interest in specific
Goods and Software used in the Goods, a security interest in specific Goods and license of Software
used in the Goods, a lease of specific Goods, or a lease of specific Goods and license of Software
used in the Goods. “Monetary obligation” means a monetary obligation secured by the Goods or owed
under a lease of the Goods and includes a monetary obligation with respect to Software used in the
Goods. If a transaction is evidenced by records that include an Instrument or series of
Instruments, the group of records taken together constitutes Chattel Paper. “Chattel Paper” does
not include (i) charters or other contracts involving the use or hire of a vessel or (ii) records
that evidence a right to payment arising out of the use of a credit or charge card or information
contained on or for use with the card.

“Collateral” means all Commercial Tort Claims pursuant to Section 4.9, Deposit
Accounts, Electronic Chattel Paper, Equipment, Fixtures, General Intangibles, Goods, Inventory,
Letter-of-Credit Rights, Payment Intangibles, Receivables, Software, Stock Rights, Supporting
Obligations and Other Collateral, wherever located, in which the Debtor now has or hereafter
acquires any right or interest, and the proceeds, insurance proceeds and products thereof, together
with all books and records, customer lists, credit files, software, computer files, programs,
printouts and other computer materials and records related thereto. Notwithstanding anything to the
contrary herein, “Collateral” shall not include any Collateral in which a security interest cannot
be granted by Debtor under the Ohio Insurance Laws.

“Commercial Tort Claim” means “commercial tort claim” as defined in Article 9 of the
UCC, which definition, as of the date of this Security Agreement, means a claim arising in tort
with respect to which (a) the claimant is an organization or (b) the claimant is an individual and

 

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the
claim: (i) arose in the course of the claimant’s business or profession and (ii) does not
include damages arising out of personal injury to or the death of an individual.

“Control” shall have the meaning set forth in Article 8 or, if applicable, in Section
9-104, 9-105, 9-106 or 9-107 of Article 9, of the UCC.

“Default” means an event described in Section 5.1.

“Deposit Account” means “deposit account” as defined in Article 9 of the UCC, which
definition, as of the date of this Security Agreement, means a demand, time, savings, passbook, or
similar account maintained with a bank, but does not include Investment Property or Accounts
evidenced by an Instrument.

“Documents” means “document” as defined in Article 9 of the UCC, which definition, as
of the date of this Security Agreement, means a document of title or a receipt of the type
described in division (B) of section 1307.06 of the Ohio Revised Code.

“Electronic Chattel Paper” means “electronic chattel paper” as defined in Article 9 of
the UCC, which definition, as of the date of this Security Agreement, means Chattel Paper evidenced
by a record consisting of information stored in an electronic medium.

“Equipment” means “equipment” as defined in Article 9 of the UCC, which definition, as
of the date of this Security Agreement, means Goods other than Inventory, Farm Products, or
consumer goods.

“Exhibit” refers to a specific exhibit to this Security Agreement, unless another
document is specifically referenced.

“Fixtures” means “fixtures” as defined in Article 9 of the UCC, which definition, as
of the date of this Security Agreement, means all Goods which become so related to particular real
estate that an interest in such Goods arises under real property law.

“General Intangibles” means “general intangible” as defined in Article 9 of the UCC,
which definition, as of the date of this Security Agreement, means any personal property, including
things in action, other than Accounts, Chattel Paper, Commercial Tort Claims, Deposit Accounts,
Documents, Goods, Instruments, Investment Property, Letter-of-Credit Rights, letters of credit,
money, and oil, gas, or other minerals before extraction. “General Intangible” includes Payment
Intangibles and Software.

“Goods” means “goods” as defined in Article 9 of the UCC, which definition, as of the
date of this Security Agreement, means all things that are movable when a security interest
attaches. “Goods” includes (i) Fixtures, (ii) standing timber that is to be cut and removed under
a conveyance or contract for sale, (iii) the unborn young of animals, (iv) crops grown, growing, or
to be grown, even if the crops are produced on trees, vines, or bushes and (v) manufactured homes.
“Goods” also includes a computer program embedded in Goods and any supporting information provided
in connection with a transaction relating to the program if (i) the program is

 

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associated with the Goods in such a manner that it customarily is considered part of the Goods or
(ii) by becoming the owner of the Goods, a person acquires a right to use the program in connection
with the Goods. “Goods” does not include a computer program embedded in Goods that consist solely
of the medium in which the program is embedded. “Goods” does not include Accounts, Chattel Paper,
Commercial Tort Claims, Deposit Accounts, Documents, General Intangibles, Instruments, Investment
Property, Letter-of-Credit Rights, letters of credit, money, or oil, gas or other minerals before
extraction.

“Health-Care-Insurance Receivable” means a “health-care-insurance receivable” as
defined in Article 9 of the UCC, which definition, as of the date of this Security Agreement, means
an interest in or claim under a policy of insurance which is a right to payment of a monetary
obligation for health-care goods or services provided.

“Hedging Contracts” means, interest rate swap agreements, interest rate cap agreements
and interest rate collar agreements, or any other agreements or arrangements entered into between
the Debtor and the Bank and designed to protect the Debtor against fluctuations in interest rates
or currency exchange rates.

“Hedging Obligations” means, with respect to the Debtor, all liabilities of the Debtor
to the Bank under Hedging Contracts.

“Instruments” means “instrument” as defined in Article 9 of the UCC, which definition,
as of the date of this Security Agreement, means a negotiable instrument or any other writing that
evidences a right to the payment of a monetary obligation, is not itself a security agreement or
lease, and is of a type that in ordinary course of business is transferred by delivery with any
necessary indorsement or assignment. “Instrument” does not include (i) Investment Property, (ii)
letters of credit or (iii) writings that evidence a right to payment arising out of the use of a
credit or charge card or information contained on or for use with the card.

“Inventory” means “inventory” as defined in Article 9 of the UCC, which definition, as
of the date of this Security Agreement, means Goods, other than farm products, which: (i) are
leased by a Person as lessor; (ii) are held by a Person for sale or lease or to be furnished under
contracts of service; (iii) are furnished by a Person under a contract of service; or (iv) consist
of raw materials, work in process, or materials used or consumed in a business.

“Investment Property” means “investment property” as defined in Article 9 of the UCC,
which definition, as of the date of this Security Agreement, means a Security, whether certificated
or uncertificated; a security entitlement; a securities account; a commodity contract or a
commodity account.

“Letter-of-Credit Rights” means “letter-of-credit right” as defined in Article 9 of
the UCC, which definition, as of the date of this Security Agreement, means a right to payment or
performance under a letter of credit, whether or not the beneficiary has demanded or is at the time
entitled to demand payment or performance. “Letter-of-Credit Right” does not include the right of
a beneficiary to demand payment or performance under a letter of credit.

 

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“Obligations” means any and all existing and future indebtedness, obligation and
liability of every kind, nature and character, direct or indirect, absolute or contingent
(including all renewals, extensions and modifications thereof and all fees, costs and expenses
incurred by the Bank in connection with the preparation, administration, collection or enforcement
thereof), of the Debtor to the Bank or any branch, subsidiary or Affiliate thereof, including
without limitation all existing and future indebtedness, obligations and liabilities arising under
or pursuant to this Security Agreement, the Loan Agreement, any promissory note or notes now or
hereafter issued under the Loan Agreement, and the other Loan Documents.

“Other Collateral” means any property of the Debtor, other than real estate, not
included within the defined terms Accounts, Chattel Paper, Commercial Tort Claims, Deposit
Accounts, Documents, Electronic Chattel Paper, Equipment, Fixtures, General Intangibles, Goods,
Health-Care-Insurance Receivables, Instruments, Inventory, Investment Property, Letter-of-Credit
Rights, Payment Intangibles, Pledged Deposits, Software, Stock Rights and Supporting Obligations,
including, without limitation, all timber to be cut, money, cash on hand, and other deposits
(general or special, time or demand, provisional or final) with any bank or other financial
institution, it being intended that the Collateral include all property and assets of the Debtor
other than real estate.

“Payment Intangibles” means “payment intangible” as defined in Article 9 of the UCC,
which definition, as of the date of this Security Agreement, means a General Intangible under which
the account debtor’s principal obligation is a monetary obligation.

“Pledged Deposits” means all time deposits of money (other than Deposit Accounts and
Instruments), whether or not evidenced by certificates, and all rights to receive interest on said
deposits.

“Receivables” means the Accounts, Chattel Paper, Documents, Health-Care-Insurance
Receivables, Investment Property, Instruments or Pledged Deposits, and any other rights or claims
to receive money which are General Intangibles or which are otherwise included as Collateral.

“Section” means a numbered section of this Security Agreement, unless another document
is specifically referenced.

“Secured Obligations” means the Obligations and Hedging Obligations entered into with
the Bank or its Affiliates.

“Security” has the meaning set forth in Article 8 of the UCC.

“Software” means “software” as defined in Article 9 of the UCC, which definition, as
of the date of this Security Agreement, means a computer program and any supporting information
provided in connection with a transaction relating to the program. “Software” does not include a
computer program that is included in the definition of Goods.

 

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“Stock Rights” means any Securities, dividends or other distributions and any other
right or property which the Debtor shall receive or shall become entitled to receive for any reason
whatsoever with respect to, in substitution for or in exchange for any Securities or other
ownership interests in a corporation, partnership, joint venture, limited liability company or
other entity constituting Collateral and any Securities, any right to receive Securities and any
right to receive earnings, in which the Debtor now has or hereafter acquires any right, issued by
an issuer of such Securities.

“Supporting Obligations” means “supporting obligation” as defined in Article 9 of the
UCC, which definition, as of the date of this Security Agreement, means a Letter-of-Credit Right or
secondary obligation that supports the payment or performance of an Account, Chattel Paper, a
Document, a General Intangible, an Instrument, or Investment Property.

“UCC” has the meaning set forth in Section 1.2.

“Unmatured Default” means an event which but for the lapse of time or the giving of
notice, or both, would constitute a Default.

The foregoing definitions shall be equally applicable to both the singular and plural forms of
the defined terms.

ARTICLE II

GRANT OF SECURITY INTEREST

The Debtor hereby pledges, assigns and grants to the Bank and (to the extent specifically
provided herein) its Affiliates, a security interest in all of the Debtor’s right, title and
interest in and to the Collateral to secure the prompt and complete payment and performance of the
Secured Obligations.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

The Debtor represents and warrants to the Bank that:

Section 3.1 Title, Authorization, Validity and Enforceability. The Debtor has good
and valid rights in or the power to transfer and title to the Collateral with respect to which it
has purported to grant a security interest hereunder, free and clear of all Liens except for Liens
permitted under Section 4.1(f) and has full power and authority to grant to the Bank the security
interest in such Collateral pursuant hereto. The execution and delivery by the Debtor of this
Security Agreement has been duly authorized by proper corporate proceedings, and this Security
Agreement constitutes a legal, valid and binding obligation of the Debtor and creates a security
interest which is enforceable against the Debtor in all now owned and hereafter acquired
Collateral. When financing statements have been filed in the appropriate offices against the Debtor
in the locations listed on Exhibit E, the Bank will have a fully perfected first priority

 

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security interest in that Collateral in which a security interest may be perfected by filing,
subject only to Liens permitted under Section 4.1(f), certain of which, from time to time, may
(with the consent of the Bank or as otherwise set forth in the Loan Agreement) be senior in
priority to the security interest granted herein.

Section 3.2 Conflicting Laws and Contracts. Neither the execution and delivery by the
Debtor of this Security Agreement, the creation and perfection of the security interest in the
Collateral granted hereunder, nor compliance with the terms and provisions hereof will violate any
law, rule, regulation, order, writ, judgment, injunction, decree or award binding on the Debtor or
the Debtor’s articles of incorporation or code of regulations, the provisions of any indenture,
instrument or agreement to which the Debtor is a party or is subject, or by which it, or its
property, is bound, or conflict with or constitute a default thereunder, or result in the creation
or imposition of any Lien pursuant to the terms of any such indenture, instrument or agreement
(other than any Lien of the Bank and Liens permitted under Section 4.1(f)).

Section 3.3 Type and Jurisdiction of Organization. The Debtor is a corporation
organized under the laws of the State of Ohio.

Section 3.4 Principal Location. The Debtor’s mailing address, the location of its
place of business (if it has only one) or its chief executive office (if it has more than one place
of business), and the location of the books and records relating to the Receivables is disclosed in
Exhibit A; the Debtor has no other places of business except as set forth in Exhibit
A.

Section 3.5 Property Locations. The Inventory, Equipment and Fixtures are located
solely at the locations described in Exhibit A. All of said locations are owned by the
Debtor except for locations (i) which are leased by the Debtor as lessee and designated in Part B
of Exhibit A and (ii) at which Inventory is held in a public warehouse or is otherwise held
by a bailee or on consignment as designated in Part C of Exhibit A, with respect to which
Inventory the Debtor has delivered bailment agreements, warehouse receipts, financing statements or
other documents satisfactory to the Bank to protect the Bank’s security interest in such Inventory.

Section 3.6 No Other Names. The Debtor does not conduct business under any name
except the name in which it has executed this Security Agreement, which is the exact name as it
appears in the Debtor’s organizational documents, as may be amended, as filed with the Debtor’s
jurisdiction of organization and has not conducted business under any name except as disclosed on
Exhibit A.

Section 3.7 No Default. No Unmatured Default or Default exists.

Section 3.8 Accounts and Chattel Paper. The names of the obligors, amounts owing, due
dates and other information with respect to the Accounts and Chattel Paper are and will be
correctly stated in all records of the Debtor relating thereto and in all invoices and reports with
respect thereto furnished to the Bank by the Debtor from time to time. As of the time when each
Account or each item of Chattel Paper arises, the Debtor shall be deemed to have represented and
warranted that such Account or Chattel Paper, as the case may be, and all records relating thereto,
are genuine and in all respects what they purport to be.

 

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Section 3.9 Filing Requirements. None of the Equipment is covered by any certificate
of title, except for any motor vehicles owned by Debtor. None of the Collateral is of a type for
which security interests or liens may be perfected by filing under any federal statute except for
patents, trademarks and copyrights held by the Debtor and described in Part C of Exhibit B.
The legal description, county and street address of the property on which any Fixtures are located
is set forth in Exhibit C together with the name and address of the record owner of each
such property.

Section 3.10 No Financing Statements. No financing statement describing all or any
portion of the Collateral which has not lapsed or been terminated naming the Debtor as debtor has
been filed in any jurisdiction except (i) financing statements naming the Bank as the secured
party, (ii) as described in Exhibit D and (iii) as permitted by Section 4.1(f).

ARTICLE IV

COVENANTS

From the date of this Security Agreement, and thereafter until this Security Agreement is
terminated:

Section 4.1 General.

(a) Inspection. The Debtor shall permit the Bank, by its representatives and agents
(i) to inspect the Collateral, (ii) to examine and make copies of the records of the Debtor
relating to the Collateral and (iii) to discuss the Collateral and the related records of the
Debtor with, and to be advised as to the same by, the Debtor’s officers and employees (and, in the
case of any Receivable, with any Person which is or may be obligated thereon), all at such
reasonable times and intervals as the Bank may determine, and all at the Debtor’s expense.

(b) Taxes. The Debtor shall pay when due all taxes, assessments and governmental
charges and levies upon the Collateral, except those which are being contested in good faith by
appropriate proceedings and with respect to which no Lien exists.

(c) Records and Reports; Notification of Default. The Debtor shall maintain complete
and accurate books and records with respect to the Collateral, and furnish to the Bank such reports
relating to the Collateral as the Bank shall from time to time request. The Debtor shall give
prompt notice in writing to the Bank of the occurrence of any Unmatured Default or Default and of
any other development, financial or otherwise, which might materially and adversely affect the
Collateral.

(d) Financing Statements and Other Actions; Defense of Title. The Debtor hereby
authorizes the Bank to file, and if requested shall execute and deliver to the Bank, all financing
statements and other documents and take such other actions as may from time to time be requested by
the Bank in order to maintain a first perfected security interest in, and, if applicable, Control
of, the Collateral. The Debtor shall take any and all actions necessary to defend title to

 

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the Collateral against all Persons and to defend the security interest of the Bank in the
Collateral and the priority thereof against any Lien not expressly permitted hereunder.
 

(e) Disposition of Collateral. The Debtor shall not sell, lease or otherwise dispose
of the Collateral except (i) prior to the occurrence of an Default or an Unmatured Default,
dispositions specifically permitted pursuant to the Loan Agreement, (ii) until such time following
the occurrence of a Default or an Unmatured Default as the Debtor receives a notice from the Bank
instructing the Debtor to cease such transactions, sales or leases of Inventory in the ordinary
course of business and (iii) until such time as the Debtor receives a notice from the Bank pursuant
to Article VII, proceeds of Inventory and Accounts collected in the ordinary course of business.

(f) Liens. The Debtor shall not create, incur, or suffer to exist any Lien on the
Collateral except (i) the security interest created by this Security Agreement, (ii) existing Liens
described in Exhibit D and (iii) other Liens permitted pursuant to Section 6.13 of the Loan
Agreement.

(g) Change in Corporate Existence, Type or Jurisdiction of Organization, Location,
Name. The Debtor will:

(i) preserve its existence as a corporation and not, in one transaction or a series of
related transactions, merge into or consolidate with any other entity, or sell all or
substantially all of its assets;

(ii) not change its state of incorporation;

(iii) not maintain its place of business (if it has only one) or its chief executive
office (if it has more than one place of business) at a location other than a location
specified on Exhibit A; and

(iv) not (A) have any Inventory, Equipment or Fixtures or proceeds or products thereof
(other than Inventory and proceeds thereof disposed of as permitted by Section 4.1(e)) at a
location other than a location specified in Exhibit A, (B) change its name or
taxpayer identification number or (C) change its mailing address,

unless the Debtor shall have given the Bank not less than 30 days’ prior written notice of
such event or occurrence and the Bank shall have either (x) determined that such event or
occurrence will not adversely affect the validity, perfection or priority of the Bank’s
security interest in the Collateral, or (y) taken such steps (with the cooperation of the
Debtor to the extent necessary or advisable) as are necessary or advisable to properly
maintain the validity, perfection and priority of the Bank’s security interest in the
Collateral.

(h) Other Financing Statements. The Debtor shall not authorize the filing of any
financing statement naming it as debtor covering all or any portion of the Collateral, except as
permitted by Section 4.1(f).

 

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Section 4.2 Receivables.

(a) Certain Agreements on Receivables. The Debtor shall not make or agree to make any
discount, credit, rebate or other reduction in the original amount owing on a Receivable or accept
in satisfaction of a Receivable less than the original amount thereof, except that, prior to the
occurrence of a Default or an Unmatured Default, the Debtor may reduce the amount of Accounts
arising from the sale of Inventory in accordance with its present policies and in the ordinary
course of business.

(b) Collection of Receivables. Except as otherwise provided in this Security
Agreement, the Debtor shall collect and enforce, at the Debtor’s sole expense, all amounts due or
hereafter due to the Debtor under the Receivables.

(c) Delivery of Invoices. The Debtor shall deliver to the Bank immediately upon its
request after the occurrence and during the continuance of a Default or an Unmatured Default
duplicate invoices with respect to each Account bearing such language of assignment as the Bank
shall specify.

(d) Disclosure of Counterclaims on Receivables. If (i) any discount, credit or
agreement to make a rebate or to otherwise reduce the amount owing on a Receivable exists or (ii)
if, to the knowledge of the Debtor, any dispute, setoff, claim, counterclaim or defense exists or
has been asserted or threatened with respect to a Receivable, the Debtor shall disclose such fact
to the Bank in writing in connection with the inspection by the Bank of any record of the Debtor
relating to such Receivable and in connection with any invoice or report furnished by the Debtor to
the Bank relating to such Receivable.

Section 4.3 Inventory and Equipment.

(a) Maintenance of Goods. The Debtor shall do all things necessary to maintain,
preserve, protect and keep the Inventory and the Equipment in good repair and working and saleable
condition.

(b) Insurance.

(i) The Debtor shall (A) maintain fire and extended coverage insurance on the Inventory
and Equipment containing a lender’s loss payable clause in favor of the Bank, and providing
that said insurance will not be terminated except after at least 30 days’ written notice
from the insurance company to the Bank, (B) maintain such other insurance on the Collateral
for the benefit of the Bank as the Bank shall from time to time request, (C) furnish to the
Bank upon the request of the Bank from time to time the originals of all policies of
insurance on the Collateral and certificates with respect to such insurance and (D) maintain
general liability insurance naming the Bank as an additional insured.

(ii) In the event of any loss or damage to any Collateral occasioned by fire or other
hazard, the Debtor shall give immediate written notice to the insurance carrier and

 

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to the Bank. The Bank shall have the right, on behalf of the Debtor, to make proof of
loss, to adjust and compromise any claim under insurance policies, to appear in and
prosecute any action arising from such insurance policies, to collect and receive insurance
proceeds, and to deduct therefrom the Bank’s reasonable expenses incurred in the collection
of such proceeds; provided however, that nothing contained in this Section 4.3 shall require
Bank to incur any expense or take any action hereunder. In the event of any such loss or
damage, provided that no Unmatured Default or Default shall have then occurred and be
continuing and the aggregate amount of such insurance proceeds received and/or equity funds
which may be provided by the Debtor will be sufficient, in the Bank’s reasonable judgment,
to pay all projected costs of the restoration, repair or replacement of the Collateral, the
Debtor, at its option, shall have the right to (x) have the balance of such insurance
proceeds used for the purpose of reimbursing the Debtor for the cost of such restoration,
repair or replacement of the Collateral, or (y) apply the balance of such proceeds to the
payment of the Secured Obligations, whether or not then due, in such order of application as
determined by the Bank; provided further, that if a Default or an Unmatured Default shall
have occurred and be continuing or the aggregate amount of such insurance proceeds and/or
equity funds will not be sufficient, in the Bank’s reasonable judgment, to pay all projected
costs of the restoration, repair or replacement of the Collateral, the Bank, at its option,
shall have the right to (A) have the balance of such insurance proceeds used for the purpose
of reimbursing the Debtor for the cost of such restoration, repair and replacement of the
Collateral or (B) apply the balance of such proceeds to the payment of the Secured
Obligations, whether or not then due, in such order of application as determined by the
Bank. In either case, all such insurance proceeds shall be paid to and held by the Bank for
disbursement and use in accordance with the terms of this Security Agreement and the Debtor
hereby assigns to the Bank all rights of Debtor in and to any insurance proceeds paid as a
result of any such loss or damage.

(iii) If the insurance proceeds held by the Bank are to be used to reimburse Debtor for
the cost of restoration, repair or replacement of the Collateral, the Debtor shall,
notwithstanding the adequacy of the insurance proceeds, promptly restore, repair and/or
replace the Collateral, such that the Collateral shall be at least equal in value and
general use as it was prior to the damage or destruction.

Section 4.4 Instruments; Securities; Chattel Paper; Documents and Pledged Deposits.
The Debtor shall (i) hold in trust for the Bank upon receipt, and upon the request of the Bank at
any time and from time to time deliver to the Bank any Chattel Paper, Securities and Instruments
constituting Collateral, (ii) upon the designation of any Pledged Deposits (as set forth in the
definition thereof), deliver to the Bank such Pledged Deposits which are evidenced by certificates
included in the Collateral endorsed in blank, marked with such legends and assigned as the Bank
shall specify and (iii) upon the Bank’s request, after the occurrence and during the continuance of
a Default, deliver to the Bank (and thereafter hold in trust for the Bank upon receipt and
immediately deliver to the Bank) any Document evidencing or constituting Collateral.

 

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Section 4.5 Pledged Deposits. The Debtor shall not withdraw all or any portion of any
Pledged Deposit or fail to rollover said Pledged Deposit without the prior written consent of the
Bank.

Section 4.6 Deposit Accounts. The Debtor shall (i) upon the Bank’s request, cause
each bank or other financial institution in which it maintains (A) a Deposit Account to enter into
a control agreement with the Bank, in form and substance satisfactory to the Bank in order to give
the Bank Control of the Deposit Account or (B) other deposits (general or special, time or demand,
provisional or final) to be notified of the security interest granted to the Bank hereunder and
cause each such bank or other financial institution to acknowledge such notification in writing and
(ii) upon the Bank’s request after the occurrence and during the continuance of a Default, deliver
to each such bank or other financial institution a letter, in form and substance acceptable to the
Bank, transferring ownership of the Deposit Account to the Bank or transferring dominion and
Control over each such other deposit to the Bank until such time as no Unmatured Default or Default
exists.

Section 4.7 Federal, State or Municipal Claims. The Debtor shall notify the Bank of
any Collateral which constitutes a claim against the United States government or any state or local
government or any instrumentality or agency thereof, the assignment of which claim is restricted by
federal, state or municipal law.

Section 4.8 Letter of Credit Rights. The Debtor will upon the Bank’s request cause
each issuer of a letter of credit to consent to the assignment of proceeds of the letter of credit
in order to give the Bank Control of the Letter-of-Credit Rights to such letter of credit.

Section 4.9 Commercial Tort Claims. If the Debtor shall at any time hold or acquire a
Commercial Tort Claim, the Debtor shall immediately notify the Bank in a writing signed by the
Debtor of the details thereof and grant to the Bank in such writing a security interest therein and
in the proceeds thereof, all upon the terms of this Security Agreement, with such writing to be in
form and substance satisfactory to the Bank. Without limiting the obligations of the Debtor set
forth in the preceding sentence, the Debtor irrevocably authorizes the Bank at any time and from
time to time after receipt of any such notice and appoints the Bank as its attorney in fact to sign
on behalf of the Debtor any such writing necessary or desirable in the Bank’s sole discretion to
grant, perfect and to maintain the perfection and priority of the Bank’s security interest in any
such Commercial Tort Claim. The Debtor authorizes the Bank to file appropriate UCC financing
statements with respect to any such Commercial Tort Claims.

Section 4.10 Electronic Chattel Paper and Transferable Records. If the Debtor at any
time holds or acquires an interest in any Electronic Chattel Paper or any “transferable record”, as
that term is defined in Section 201 of the federal Electronic Signatures in Global and National
Commerce Act, or in §16 of the Uniform Electronic Transactions Act as in effect in any relevant
jurisdiction, the Debtor shall promptly notify the Bank thereof and, at the request of the Bank,
shall take such action as the Bank may reasonably request to vest in the Bank Control under Section
9-105 of the UCC of such Electronic Chattel Paper or control under Section 201 of the federal
Electronic Signatures in Global and National Commerce Act or, as the case may be, §16 of the
Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such

 

- 12 -

 

transferable record. The Bank agrees with the Debtor that the Bank will arrange, pursuant to
procedures satisfactory to the Bank and so long as such procedures will not result in the Bank’s
loss of Control, for the Debtor to make alterations to the Electronic Chattel Paper or transferable
record permitted under Section 9-105 of the UCC or, as the case may be, Section 201 of the federal
Electronic Signatures in Global and National Commerce Act or §16 of the Uniform Electronic
Transactions Act for a party in Control to make without loss of Control, unless a Default has
occurred and is continuing or would occur after taking into account any action by the Debtor with
respect to such Electronic Chattel Paper or transferable record.

Section 4.11 Uncertificated Securities and Certain Other Investment Property. The
Debtor will permit the Bank from time to time to cause the appropriate issuers (and, if held with a
securities intermediary, such securities intermediary) of uncertificated securities or other types
of Investment Property not represented by certificates which are Collateral to mark their books and
records with the numbers and face amounts of all such uncertificated securities or other types of
Investment Property not represented by certificates and all rollovers and replacements therefor to
reflect the Lien of the Bank granted pursuant to this Security Agreement. At the request of the
Bank, the Debtor will take any actions necessary to cause (i) the issuers of uncertificated
securities which are Collateral and which are Securities and (ii) any financial intermediary which
is the holder of any Investment Property, to cause the Bank to have and retain Control over such
Securities or other Investment Property. Without limiting the foregoing, at the request of the
Bank the Debtor will, with respect to Investment Property held with a financial intermediary, cause
such financial intermediary to enter into a control agreement with the Bank in form and substance
satisfactory to the Bank.

Section 4.12 Stock and Other Ownership Interests.

(a) Changes in Capital Structure of Issuers. The Debtor will not (i) permit or suffer
any issuer of privately held corporate securities or other ownership interests in a corporation,
partnership, joint venture or limited liability company constituting Collateral to dissolve,
liquidate, retire any of its capital stock or other Instruments or Securities evidencing ownership,
reduce its capital or merge or consolidate with any other entity, or (ii) vote any of the
Instruments, Securities or other Investment Property in favor of any of the foregoing.

(b) Issuance of Additional Securities. The Debtor will not permit or suffer the
issuer of privately held corporate securities or other ownership interests in a corporation,
partnership, joint venture or limited liability company constituting Collateral to issue any such
securities or other ownership interests, any right to receive the same or any right to receive
earnings, except to the Debtor or as otherwise permitted under the Loan Agreement.

(c) Registration of Pledged Securities and other Investment Property. The Debtor will
permit any registerable Collateral to be registered in the name of the Bank or its nominee at any
time at the option of the Bank.

(d) Exercise of Rights in Pledged Securities and other Investment Property. The
Debtor will permit the Bank or its nominee at any time after the occurrence of a Default, without
notice, to exercise all voting and corporate rights relating to the Collateral, including, without

 

- 13 -

 

limitation, exchange, subscription or any other rights, privileges, or options pertaining to
any corporate securities or other ownership interests or Investment Property in or of a
corporation, partnership, joint venture or limited liability company constituting Collateral and
the Stock Rights as if it were the absolute owner thereof.

ARTICLE V

EVENTS OF DEFAULT

Section 5.1 Events of Default. The occurrence of any one or more of the following
events shall constitute a Default:

(a) Any representation or warranty made by or on behalf of the Debtor under or in connection
with this Security Agreement shall be materially false as of the date on which made.

(b) The breach by the Debtor of any of the terms or provisions of Article IV or Article VII.

(c) The breach by the Debtor (other than a breach which constitutes a Default under Section
5.1(a) or 5.1(b)) of any of the terms or provisions of this Security Agreement which is not
remedied within twenty (20) days after written notice from Bank.

(d) Any material portion of the Collateral shall be transferred or otherwise disposed of,
either voluntarily or involuntarily, in any manner not permitted by Section 4.1(e) or 8.7 or shall
be lost, stolen, damaged or destroyed.

(e) Any Secured Obligation shall not be paid when due, whether at stated maturity, upon
acceleration, or otherwise.

(f) The occurrence of any “Default” under, and as defined in, the Loan Agreement.

Section 5.2 Acceleration and Remedies. Upon the acceleration of the Obligations under
the Loan Agreement, the Obligations and, to the extent provided for under the Hedging Contracts
evidencing the same, the Hedging Obligations, shall immediately become due and payable without
presentment, demand, protest or notice of any kind, all of which are hereby expressly waived, and
the Bank may exercise any or all of the following rights and remedies:

(a) Those rights and remedies provided in this Security Agreement, the Loan Agreement, or any
other Loan Document, provided that this Section 5.2(a) shall not be understood to limit any
rights or remedies available to the Bank prior to a Default.

(b) Those rights and remedies available to a secured party under the UCC (whether or not the
UCC applies to the affected Collateral) or under any other applicable law (including, without
limitation, any law governing the exercise of a bank’s right of setoff or bankers’ lien) when a
debtor is in default under a security agreement.

 

- 14 -

 

(c) Without notice except as specifically provided in Section 8.1 or elsewhere herein, sell,
lease, assign, grant an option or options to purchase or otherwise dispose of the Collateral or any
part thereof in one or more parcels at public or private sale, for cash, on credit or for future
delivery, and upon such other terms as the Bank may deem commercially reasonable.

The Bank may comply with any applicable state or federal law requirements in connection with any
disposition of the Collateral and compliance will not be considered to adversely affect the
commercial reasonableness of any sale of the Collateral. Bank may disclaim any warranties that
might arise in connection with the sale, lease or other disposition of the Collateral and has no
obligation to provide any warranties at such time.

If, after the Loan Agreement has terminated by its terms and all of the Obligations have been paid
in full, there remain Hedging Obligations outstanding, the Bank may exercise the remedies provided
in this Section 5.2 upon the occurrence of any event which would allow or require the termination
or acceleration of any Hedging Obligations pursuant to the terms of the agreement governing any
Hedging Contract.

Section 5.3 Debtor’s Obligations Upon a Default. Upon the request of the Bank after
the occurrence of a Default, the Debtor shall:

(a) Assembly of Collateral. Assemble and make available to the Bank the Collateral
and all records relating thereto at any place or places designated by the Bank which are reasonably
convenient to both the Debtor and the Bank.

(b) Secured Party Access. Permit the Bank, by the Bank’s representatives and agents,
to enter any premises where all or any part of the Collateral, or the books and records relating
thereto, or both, are located, to take possession of all or any part of the Collateral and to
remove all or any part of the Collateral.

Section 5.4 License. The Bank is hereby granted a license or other right to use,
following the occurrence and during the continuance of a Default, without charge, the Debtor’s
labels, patents, copyrights, rights of use of any name, trade secrets, trade names, trademarks,
service marks, customer lists and advertising matter, or any property of a similar nature, as it
pertains to the Collateral, in completing production of, advertising for sale, and selling any
Collateral, and, following the occurrence and during the continuance of a Default, the Debtor’s
rights under all licenses and all franchise agreements shall inure to the Bank’s benefit. In
addition, the Debtor hereby irrevocably agrees that the Bank may, following the occurrence and
during the continuance of a Default, sell any of the Debtor’s Inventory directly to any Person,
including without limitation Persons who have previously purchased the Debtor’s Inventory from the
Debtor and in connection with any such sale or other enforcement of the Bank’s rights under this
Security Agreement, may sell Inventory which bears any trademark owned by or licensed to the Debtor
and any Inventory that is covered by any copyright owned by or licensed to the Debtor and the Bank
may finish any work in process and affix any trademark owned by or licensed to the Debtor and sell
such Inventory as provided herein.

 

- 15 -

 

ARTICLE VI

WAIVERS, AMENDMENTS AND REMEDIES

No delay or omission of the Bank to exercise any right or remedy granted under this Security
Agreement shall impair such right or remedy or be construed to be a waiver of any Default or an
acquiescence therein, and any single or partial exercise of any such right or remedy shall not
preclude any other or further exercise thereof or the exercise of any other right or remedy. No
waiver, amendment or other variation of the terms, conditions or provisions of this Security
Agreement whatsoever shall be valid unless in writing signed by the Bank and then only to the
extent in such writing specifically set forth. All rights and remedies contained in this Security
Agreement or by law afforded shall be cumulative and all shall be available to the Bank until the
Secured Obligations have been paid in full.

ARTICLE VII

PROCEEDS; COLLECTION OF RECEIVABLES

Section 7.1 Lockboxes. Upon request of the Bank after the occurrence of a Default,
the Debtor shall execute and deliver to the Bank irrevocable lockbox agreements in the form
provided by or otherwise acceptable to the Bank, which agreements shall be accompanied by an
acknowledgment by the bank where the lockbox is located of the Lien of the Bank granted hereunder
and of irrevocable instructions to wire all amounts collected therein to a special collateral
account at the Bank.

Section 7.2 Collection of Receivables. The Bank may at any time in its sole
discretion after the occurrence of an Unmatured Default or a Default, by giving the Debtor written
notice, elect to require that the Receivables be paid directly to the Bank. In such event, the
Debtor shall, and shall permit the Bank to, promptly notify the account debtors or obligors under
the Receivables of the Bank’s interest therein and direct such account debtors or obligors to make
payment of all amounts then or thereafter due under the Receivables directly to the Bank. Upon
receipt of any such notice from the Bank, the Debtor shall thereafter hold in trust for the Bank,
all amounts and proceeds received by it with respect to the Receivables and Other Collateral and
immediately and at all times thereafter deliver to the Bank all such amounts and proceeds in the
same form as so received, whether by cash, check, draft or otherwise, with any necessary
endorsements. The Bank shall hold and apply funds so received as provided by the terms of Sections
7.3 and 7.4.

Section 7.3 Special Collateral Account. The Bank may require all cash proceeds of the
Collateral to be deposited in a special non-interest bearing cash collateral account with the Bank
and held there as security for the Secured Obligations. The Debtor shall have no control
whatsoever over said cash collateral account. If no Unmatured Default or Default has occurred or
is continuing, the Bank shall from time to time deposit the collected balances in said cash
collateral account into the Debtor’s general operating account with the Bank. If any Unmatured
Default or Default has occurred and is continuing, the Bank may, from time to time, apply the

 

- 16 -

 

collected balances in said cash collateral account to the payment of the Secured Obligations
whether or not the Secured Obligations shall then be due.
 

Section 7.4 Application of Proceeds. Any proceeds of the Collateral received or
collected by Bank shall be applied by the Bank to payment of the Secured Obligations in the
following order unless a court of competent jurisdiction shall otherwise direct:

(a) FIRST, to payment of all costs and expenses of the Bank incurred in connection with the
collection and enforcement of the Secured Obligations or of the security interest granted to the
Bank pursuant to this Security Agreement;

(b) SECOND, to payment of that portion of the Secured Obligations constituting accrued and
unpaid interest and fees owing to the Bank or its affiliates;

(c) THIRD, to payment of the principal of the Secured Obligations and the net early
termination payments and any other Hedging Obligations then due and unpaid from the Debtor to the
Bank or its affiliates, owing to each of them;

(d) FOURTH, to payment of any Secured Obligations (other than those listed above) pro rata
among those parties to whom such Secured Obligations are due in accordance with the amounts owing
to each of them; and

(e) FIFTH, the balance, if any, after all of the Secured Obligations have been satisfied,
shall be deposited by the Bank into the Debtor’s general operating account with the Bank.

ARTICLE VIII

GENERAL PROVISIONS

Section 8.1 Notice of Disposition of Collateral; Condition of Collateral. The Debtor
hereby waives notice of the time and place of any public sale or the time after which any private
sale or other disposition of all or any part of the Collateral may be made. To the extent such
notice may not be waived under applicable law, any notice made shall be deemed reasonable if sent
to the Debtor, addressed as set forth in Section 8.16, at least 10 days prior to (i) the date of
any such public sale or (ii) the time after which any such private sale or other disposition may be
made. The Bank shall have no obligation to clean-up or otherwise prepare the Collateral for sale.

Section 8.2 Compromises and Collection of Collateral. The Debtor and the Bank
recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors with
respect to certain of the Receivables, that certain of the Receivables may be or become
uncollectible in whole or in part and that the expense and probability of success in litigating a
disputed Receivable may exceed the amount that reasonably may be expected to be recovered with
respect to a Receivable. In view of the foregoing, the Debtor agrees that the Bank may at any time
and from time to time, if a Default has occurred and is continuing, compromise with the obligor on
any Receivable, accept in full payment of any Receivable such amount as the Bank in

 

- 17 -

 

its sole discretion shall determine or abandon any Receivable, and any such action by the Bank
shall be commercially reasonable so long as the Bank acts in good faith based on information known
to it at the time it takes any such action.

Section 8.3 Secured Party Performance of Debtor Obligations. Without having any
obligation to do so, the Bank may perform or pay any obligation which the Debtor has agreed to
perform or pay in this Security Agreement and the Debtor shall reimburse the Bank for any amounts
paid by the Bank pursuant to this Section 8.3. The Debtor’s obligation to reimburse the Bank
pursuant to the preceding sentence shall be a Secured Obligation payable on demand.

Section 8.4 Authorization for Secured Party to Take Certain Action. The Debtor
irrevocably authorizes the Bank at any time and from time to time in the sole discretion of the
Bank and appoints the Bank as its attorney in fact (i) to execute on behalf of the Debtor as debtor
and/or to file initial financing statements, amendments of financing statements, correction
statements with respect to financing statements and other documents necessary or desirable in the
Bank’s sole discretion to perfect and to maintain the perfection and priority of the Bank’s
security interest in the Collateral, including to file in any filing office in the State of Ohio or
any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto
that (a) indicate the Collateral (1) as all assets and/or personal property of the Debtor or words
of similar effect, regardless of whether any particular asset comprised in the Collateral falls
within the scope of Article 9 of the UCC or the Uniform Commercial Code of such jurisdiction, or
(2) as being of an equal or lesser scope or with greater detail, and (b) provide any other
information required by part 5 of Article 9 of the of the UCC or the Uniform Commercial Code of
such other jurisdiction for the sufficiency or filing office acceptance of any financing statement
or amendment, including (1) whether the Debtor is an organization, the type of organization and any
organizational identification number issued to the Debtor, and (2) in the case of a financing
statement filed as a fixture filing or indicating Collateral as as-extracted collateral or timber
to be cut, a sufficient description of real property to which the Collateral relates, (ii) to
indorse and collect any cash proceeds of the Collateral, (iii) to contact and enter into one or
more agreements with the issuers of uncertificated securities which are Collateral and which are
Securities or with financial intermediaries holding other Investment Property as may be necessary
or advisable to give the Bank Control over such Securities or other Investment Property, (iv)
subject to the terms of Section 4.1(e), to enforce payment of the Receivables in the name of the
Bank or the Debtor, (v) to apply the proceeds of any Collateral received by the Bank to the Secured
Obligations as provided in Article VII, (vi) to discharge past due taxes, assessments, charges,
fees or Liens on the Collateral (except for such Liens as are specifically permitted hereunder),
and the Debtor agrees to reimburse the Bank on demand for any payment made or any expense incurred
by the Bank in connection therewith, and (vii) to grant to the Bank in writing a security interest
in Commercial Tort Claims and in the proceeds thereof as set forth in Section 4.9, which security
interest shall be upon the terms of this Security Agreement, with such writing to be in form and
substance satisfactory to the Bank, provided that this authorization shall not relieve the
Debtor of any of its obligations under this Security Agreement or under the Loan Agreement. The
Debtor hereby ratifies and authorizes the filing by the Bank of any financing statement with
respect to the Collateral made prior to the date hereof.

 

- 18 -

 

Section 8.5 Specific Performance of Certain Covenants. The Debtor acknowledges and
agrees that a breach of any of the covenants contained in Sections 4.1(e), 4.1(f), 4.4, 5.3, or 8.7
or in Article VII will cause irreparable injury to the Bank, that the Bank has no adequate remedy
at law in respect of such breaches and therefore agrees, without limiting the right of the Bank to
seek and obtain specific performance of other obligations of the Debtor contained in this Security
Agreement, that the covenants of the Debtor contained in the Sections referred to in this Section
8.5 shall be specifically enforceable against the Debtor.

Section 8.6 Use and Possession of Certain Premises. Upon the occurrence of a Default,
the Bank shall be entitled to occupy and use any premises owned or leased by the Debtor where any
of the Collateral or any records relating to the Collateral are located until the Secured
Obligations are paid or the Collateral is removed therefrom, whichever first occurs, without any
obligation to pay the Debtor for such use and occupancy.

Section 8.7 Dispositions Not Authorized. The Debtor is not authorized to sell or
otherwise dispose of the Collateral except as set forth in Section 4.1(e) and notwithstanding any
course of dealing between the Debtor and the Bank or other conduct of the Bank, no authorization to
sell or otherwise dispose of the Collateral (except as set forth in Section 4.1(e)) shall be
binding upon the Bank unless such authorization is in writing signed by the Bank.

Section 8.8 Benefit of Agreement. The terms and provisions of this Security Agreement
shall be binding upon and inure to the benefit of the Debtor and the Bank and their respective
successors and assigns (including all Persons who become bound as a debtor to this Security
Agreement), except that the Debtor shall not have the right to assign its rights or delegate its
obligations under this Security Agreement or any interest herein, without the prior written consent
of the Bank.

Section 8.9 Survival of Representations. All representations and warranties of the
Debtor contained in this Security Agreement shall survive the execution and delivery of this
Security Agreement.

Section 8.10 Taxes and Expenses. Any taxes (including income taxes) payable or ruled
payable by Federal or State authority in respect of this Security Agreement shall be paid by the
Debtor, together with interest and penalties, if any. The Debtor shall reimburse the Bank for any
and all out-of-pocket expenses and internal charges (including reasonable attorneys’, auditors’ and
accountants’ fees and reasonable time charges of attorneys, paralegals, auditors and accountants
who may be employees of the Bank) paid or incurred by the Bank in connection with the preparation,
execution, delivery, administration, collection and enforcement of this Security Agreement and in
the audit, analysis, administration, collection, preservation or sale of the Collateral (including
the expenses and charges associated with any periodic or special audit of the Collateral). Any and
all costs and expenses incurred by the Debtor in the performance of actions required pursuant to
the terms hereof shall be borne solely by the Debtor.

Section 8.11 Headings. The title of and section headings in this Security Agreement
are for convenience of reference only, and shall not govern the interpretation of any of the terms
and provisions of this Security Agreement.

 

- 19 -

 

Section 8.12 Termination. This Security Agreement shall continue in effect
(notwithstanding the fact that from time to time there may be no Secured Obligations outstanding)
until (i) the Loan Agreement has terminated pursuant to its express terms and (ii) all of the
Secured Obligations have been indefeasibly paid and performed in full and no commitments of the
Bank to the Debtor which would give rise to any Secured Obligations are outstanding.

Section 8.13 Entire Agreement. This Security Agreement embodies the entire agreement
and understanding between the Debtor and the Bank relating to the Collateral and supersedes all
prior agreements and understandings between the Debtor and the Bank relating to the Collateral.

Section 8.14 CHOICE OF LAW. THIS SECURITY AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF
OHIO, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

Section 8.15 Indemnity. The Debtor hereby agrees to indemnify the Bank, and its
successors, assigns, agents and employees, from and against any and all liabilities, damages,
penalties, suits, costs, and expenses of any kind and nature (including, without limitation, all
expenses of litigation or preparation therefor whether or not the Bank is a party thereto) imposed
on, incurred by or asserted against the Bank, or its successors, assigns, agents and employees, in
any way relating to or arising out of this Security Agreement, or the manufacture, purchase,
acceptance, rejection, ownership, delivery, lease, possession, use, operation, condition, sale,
return or other disposition of any Collateral (including, without limitation, latent and other
defects, whether or not discoverable by the Bank or the Debtor, and any claim for patent, trademark
or copyright infringement).

Section 8.16 Notices.

(a) Sending Notices. Any notice required or permitted to be given under this Security
Agreement shall be sent (and deemed received) in the manner and to the addresses set forth in
Section 9.13 of the Loan Agreement.

(b) Change in Address for Notices. Each of the Debtor and the Bank may change the
address for service of notice upon it by a notice in writing to the other party.

[Signatures appear on following page]

 

- 20 -

 

IN WITNESS WHEREOF, the Debtor and the Bank have executed this Security Agreement as of the
date first above written.

	 	 	 	 	 	 	 
	 	 	DEBTOR:	 	 
	 
	 	 	 	 	, 

	 
	 	 	 
an Ohio                     	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 
	 
	 	 	 	 	 	 
	 	 	BANK:	 	 
	 
	 	 	 	 	 	 
	 	 	Fifth Third Bank	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 
	 

	 	 	 	William J. Whitley, Vice President	 	 

Signature Page to

Continuing Security Agreement

 

- 21 -

 

EXHIBIT A

(See Sections 3.4, 3.5, 3.6, 4.1(g) and 8.16 of Security Agreement)

Place of Business (if it has only one) or Chief Executive Office (if more than one place of
business) and Mailing Address:

250 E. Broad St., 7th Floor

Columbus, Ohio 43215

Location(s) of Receivables Records (if different from Place of Business or Chief Executive Office
above):

Locations of Inventory, Equipment and Fixtures:

A. Properties Owned by the Debtor:

250 E. Broad St., 7th Floor

Columbus, Ohio 43215

B. Properties Leased by the Debtor (Include Landlord’s Name):

N/A

C. Public Warehouses or other Locations pursuant to Bailment or Consignment Arrangements
(include name of Warehouse Operator or other Bailee or Consignee):

N/A

Prior Business Names:

N/A

 

 

 

EXHIBIT B

(See Section 3.9 of Security Agreement)

A. Patents, copyrights, trademarks protected under federal law*:

N/A

 

	 	 	 
	*	 	For (i) trademarks, show the trademark itself, the registration date and the registration number;
(ii) trademark applications, show the trademark applied for, the application filing date and the
serial number of the application; (iii) patents, show the patent number, issue date and a brief
description of the subject matter of the patent; and (iv) patent applications, show the serial
number of the application, the application filing date and a brief description of the subject
matter of the patent applied for. Any licensing agreements for patents or trademarks should be
described on a separate schedule.

 

 

 

EXHIBIT C

(See Section 3.9 of Security Agreement)

Street address of property on which

Fixtures are located:

250 E. Broad St., 7th Floor

Columbus, Ohio 43215

Name and Address of Record Owner (if not the Debtor):

 

 

 

 

 

 

EXHIBIT D

(See Sections 3.10 and 4.1(f) of Security Agreement)

EXISTING LIENS ON THE COLLATERAL

	 	 	 	 	 	 	 
	Secured Party	 	Collateral	 	Principal Balance	 	Maturity
	 
	 	 	 	 	 	 
	N/A
	 	 	 	 	 	 

 

 

 

EXHIBIT E

(See Section 3.1 of Security Agreement)

OFFICES IN WHICH FINANCING STATEMENTS HAVE BEEN FILED

Secretary of State of the State of OhioExhibit 4.5

Exhibit 4.5

Execution Version

STOCK PLEDGE AGREEMENT

This STOCK PLEDGE AGREEMENT (this “Agreement”) is made as of October 27, 2010 by Bancinsurance
Corporation, an Ohio corporation (the “Pledgor”), in favor of Fifth Third Bank, an Ohio banking
corporation (the “Bank”).

Background Information

A. The Pledgor is the owner of 100% of the issued and outstanding shares of common stock of
Ohio Indemnity Company, an Ohio domiciled stock, property and casualty insurance company (the
“Issuer”).

B. The Bank and the Pledgor are entering into a certain Credit Agreement of even date herewith
(the “Credit Agreement”) pursuant to which the Bank has agreed to extend the following credit
facilities to the Pledgor: (1) a term loan in the original principal amount of $10,000,000 (“Term
Loan”); and (2) a revolving line of credit with a maximum aggregate principal amount of $5,000,000
(the “Line of Credit”, and collectively with the Term Loan, the “Loans”).

C. The execution of this Agreement and the delivery of the Pledged Stock (as hereinafter
defined) to the Bank are conditions precedent to the Bank’s obligation to extend the Loans.

D. To induce the Bank to extend the Loans and in order to secure the payment and performance
of the Obligations (as hereinafter defined), Pledgor has agreed to pledge to Bank all of the
Collateral (as hereinafter defined) now or hereafter owned or acquired by Pledgor as security for
the Obligations, subject to the terms of this Agreement.

E. The Pledgor is a member of a holding Company system as defined in Ohio Revised Code Section
3901.32; accordingly, Pledgor is not pledging any property which would not be permitted under the
Insurance Laws of the State of Ohio.

Provisions

NOW, THEREFORE, in consideration of the premises and in order to induce the Bank to extend the
Loans, the Pledgor hereby agrees with the Bank as follows:

Section 1. Defined Terms.

Unless otherwise defined herein, terms defined in the Credit Agreement shall have such defined
meanings when used herein.

“Collateral” shall mean all property at any time pledged or required to be pledged to
the Bank hereunder, including the Pledged Stock, and all payments to be made by the Issuer pursuant
thereto, income therefrom and proceeds thereof.

 

 

 

“Obligations” means all unpaid principal of and accrued and unpaid interest on the
Term Loan, all accrued and unpaid fees and all expenses, reimbursements, indemnities and any other
obligations of the Pledgor to the Bank or to any indemnified party related to the Term Loan.

“Pledged Stock” shall mean all of the shares of common stock of the Issuer owned by
the Pledgor evidenced by share certificate number(s) 87 and 88, together with all shares,
certificates, options, rights or other distributions issued as an addition to, in substitution or
in exchange for, or on account of, any such shares, and all proceeds of all the foregoing, now or
hereafter owned or acquired by the Pledgor.

Section 2. Pledge.

(a) The Pledgor hereby pledges, assigns, hypothecates, transfers and delivers to the Bank all
Collateral including the Pledged Stock and agrees to pledge all additional shares of capital stock
of the Issuer that the Pledgor may hereafter acquire with respect thereto, and grants to the Bank a
first and best lien on and security interest in (i) the Pledged Stock; (ii) all certificates,
shares, notes, obligations, distributions, securities and other property issued or delivered from
time to time in lieu of or in substitution for or with respect to the Pledged Stock; (iii) all
present and future security and collateral for any of the foregoing; and (iv) all payments or other
proceeds under or with respect to any of the foregoing, as collateral security for the due and
punctual performance by the Pledgor of all its obligations under this Agreement and the due and
punctual payment and performance by the Pledgor of all Obligations.

(b) The Pledgor shall deliver to the Bank the certificate(s) for the Pledged Stock and a stock
transfer power(s) in the form of the Stock Transfer Power attached hereto as Exhibit A duly
endorsed in blank simultaneously herewith.

(c) At any time the Bank, at its option, may have any part or all of the Pledged Stock
registered in its name or that of its nominee, and the Pledgor hereby covenants that, upon the
Bank’s request, the Pledgor will cause the Issuer, the transfer agent or registrar of the Pledged
Stock to effect such registration, subject to compliance with Insurance Laws which require notices
and consents, including but not limited to the approval of a Form A by the Ohio Department of
Insurance and any other applicable state insurance department. If that shall be done prior to an
Event of Default (as defined in Section 5), the Pledgor shall nevertheless retain all voting rights
with respect to the Pledged Stock, and, for that purpose, the Bank shall execute and deliver to the
Pledgor all necessary proxies (which proxies shall in any event expire automatically upon the
occurrence of an Event of Default and the Bank’s compliance with all Insurance Laws and its receipt
of all required approvals thereunder). Subject to the Bank’s compliance with Insurance Laws and
the receipt of all required approvals, immediately and without further notice, upon the occurrence
of an Event of Default, whether or not the Pledged Stock shall have been registered in the name of
the Bank or its nominee, the Bank or its nominee shall have, with respect to the Pledged Stock, the
right to exercise all voting rights as to the Pledged Stock, all other corporate rights and all
conversion, exchange, subscription or other rights, privileges or options pertaining thereto as if
it were the absolute owner thereof, including, without limitation, the right to exchange any or all
of the Pledged Stock upon the merger,

 

2

 

consolidation, reorganization, recapitalization or other readjustment of the issuer thereof,
or upon the exercise by such issuer of any right, privilege or option pertaining to any of the
Pledged Stock, and, in connection therewith, to deliver any of the Pledged Stock to any committee,
depository, transfer agent, registrar or other designated agency upon such terms and conditions as
it may determine, all without liability except to account for property actually received by it;
provided, however, that (i) the Bank shall have no duty to exercise any of the aforesaid rights,
privileges or options and shall not be responsible for any failure to do so or delay in so doing;
and (ii) the Bank may by written notice to the Pledgor relinquish, either partially or completely
in accordance with any terms or conditions the Bank may set forth in such notice, any or all voting
rights the Bank may acquire pursuant to this Section 2(c). The Bank acknowledges that its
enforcement rights are limited by Insurance Laws, and more specifically, that prior approval of
state insurance regulators may be required prior to any action associated with the Pledged Stock.

(d) So long as no Event of Default shall have occurred, the Pledgor shall have the right to
receive and retain all cash dividends and other cash payments with respect to the Pledged Stock as
permitted by the Credit Agreement. Upon the occurrence of an Event of Default, the right of the
Pledgor to receive any such cash dividends and other cash payments shall terminate immediately.

Section 3. Notice to the Issuer and Registrar.

Immediately upon the execution of this Agreement, the Pledgor shall give notice of the pledge
of the Pledged Stock pursuant to the terms hereof, in the form of the Notice of Pledge attached
hereto as Exhibit B, to the Issuer and the Issuer’s stock registrar/transfer agent, if any.

Section 4. Distributions, etc.

If the Pledgor shall become entitled to receive or shall receive, in connection with any of
the Pledged Stock, any Collateral, including, without limitation:

(a) stock certificates, including, but without limitation, any certificates representing a
stock dividend issued in connection with any increase or reduction of capital, reclassification,
merger, consolidation, sale of assets, combination of shares, stock split, spin-off or split-off;

(b) options, warrants or rights, whether as an addition to, or in substitution or in exchange
for, any of the Pledged Stock, or otherwise; or

(c) dividends or distributions payable in money (subject to the right of the Pledgor to
receive and retain such dividends and distributions in accordance with Section 2(d) hereof) or
other property, including securities issued by any entity other than the Issuer,

then the Pledgor shall accept the same as the Bank’s agent and hold the same in trust on behalf of
and for the benefit of the Bank, segregated from the other assets of the Pledgor and deliver the
same forthwith to the Bank, in the exact form received, with the endorsement of the Pledgor when
necessary and/or appropriate undated powers, duly executed in blank, to be held by the

 

3

 

Bank, subject to the terms hereof, as additional collateral security for the Obligations. Any sums
paid upon or in respect of the Pledged Stock or other Collateral upon the liquidation or
dissolution of the Pledgor or the Issuer shall be paid over to the Bank, to be held by it in trust
as additional collateral security for the Obligations. All sums of money and property so paid or
distributed in respect of the Pledged Stock or other Collateral which are received by the Pledgor
shall, until paid or delivered to the Bank, be held by the Pledgor in trust, segregated from the
other assets of the Pledgor, as additional collateral security for the Obligations.

Section 5. Events of Default.

(a) The occurrence of any of the following events shall constitute an “Event of Default”:

(i) the Pledgor shall default in the observance or performance of any term, covenant or
agreement contained herein;

(ii) the Pledgor shall default in the observance or performance of any term, covenant or
agreement contained in the Credit Agreement or any other Loan Document which is not cured within
any applicable cure period; or

(iii) any Default as such terms are defined in the Credit Agreement shall occur and be
continuing or a “default” or “event of default” in any other Loan Document as such terms are
defined therein shall occur and be continuing.

(b) Upon the occurrence and during the continuance of any Event of Default, the Bank, without
demand of performance or other demand, advertisement or notice of any kind (except the notice
specified below regarding public or private sale) to or upon the Pledgor or any other person (all
and each of which demands, advertisements and/or notices are hereby expressly waived), may
forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof,
and/or may forthwith sell, assign, give option or options to purchase, contract to sell or
otherwise dispose of and deliver said Collateral, or any part thereof, in one or more parcels at
public or private sale or sales, at any exchange, broker’s board or at the Bank’s offices or
elsewhere upon such terms and conditions as it may deem advisable and at such prices as it may deem
best, for cash or on credit or for future delivery without assumption of any credit risk, with the
right to the Bank upon any such sale or sales, public or private, to purchase the whole or any part
of said Collateral so sold, free of any right or equity of redemption in the Pledgor, which right
or equity is hereby expressly waived or released. The Bank shall apply the net proceeds of any
such collection, recovery, receipt, appropriation, realization or sale, after deducting all
reasonable costs and expenses of every kind incurred therein or incidental to the care, safekeeping
or otherwise of any and all of the Collateral, including reasonable attorneys’ fees and legal
expenses, to the payment in whole or in part of the Obligations in such order as the Bank may
elect, and only after so paying over such net proceeds and after the payment by the Bank of any
other amount required by any provision of law, need the Bank account for the surplus, if any, to
the Pledgor. The Pledgor agrees that, to the extent permitted by law, the Bank need not give more
than 10 days’ notice of the time and place of any public sale or of the time after which a

 

4

 

private sale or other intended disposition is to take place and that such notice is reasonable
notification of such matters. No notification need be given to the Pledgor if the Pledgor has
signed after default a statement renouncing or modifying any right to notification of sale or other
intended disposition. In addition to the rights and remedies granted to it in this Agreement and
in any other instrument or agreement securing, evidencing or relating to any of the Obligations,
the Bank shall have all the rights and remedies of a secured party under the Uniform Commercial
Code as adopted in the State of Ohio. All waivers by the Pledgor of rights (including rights to
notice) and all rights and remedies afforded the Pledgor herein, and all other provisions of this
Agreement, are expressly made subject to any applicable mandatory provisions of law limiting, or
imposing conditions (including conditions as to reasonableness) upon, such waivers or the
effectiveness thereof or any such rights and remedies. Any sale or other disposition of the
Collateral shall be in compliance with all provisions of applicable law (including applicable
Insurance Laws, securities laws and applicable provisions of the Uniform Commercial Code of the
State of Ohio). The Bank may comply with any applicable state or federal law requirements in
connection with any disposition of the Collateral and compliance will not be considered to
adversely affect the commercial reasonableness of any sale of the Collateral. The Bank may
disclaim any warranties that might arise in connection with the sale or other disposition of the
Collateral and has no obligation to provide any warranties at such time.

Section 6. The Bank’s Appointment as Attorney-in-Fact.

(a) The Pledgor hereby irrevocably constitutes and appoints the Bank and any officer or agent
thereof, with full power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of Pledgor and in the name of the Pledgor or
in its own name, from time to time in the Bank’s discretion, for the purpose of carrying out the
actions and to execute any and all documents and instruments which may be necessary or desirable to
accomplish the purposes of this Agreement and, without limiting the generality of the foregoing,
hereby gives the Bank the power and right, on behalf of the Pledgor, without notice to or assent by
the Pledgor to do the following: (i) to ask, demand, collect, receive and give acquittances and
receipts for any and all moneys due and to become due under the Collateral; (ii) in the name of the
Pledgor or its own name or otherwise, to take possession of and endorse and collect any checks,
drafts, notes, acceptances or other instruments for the payments of moneys due under the
Collateral; (iii) to file any claim or to take any other action or proceeding in any court of law
or equity or otherwise deemed appropriate by the Bank for the purpose of collecting any and all
such moneys due under the Collateral whenever payable; (iv) to pay or discharge taxes, liens,
security interests or other encumbrances levied or placed on or threatened against the Collateral;
(v) to direct any party liable for any payment under the Collateral to make payment of any and all
moneys due and to become due thereunder directly to the Bank or as the Bank shall direct; (vi) to
receive payment of any receipt for any and all moneys, claims and other amounts due and to become
due at any time in respect of or arising out of any Collateral; (vii) to commence and prosecute any
suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect
the Collateral or any part thereof and to enforce any other right to respect of the Collateral;
(viii) to defend any suit, action or proceeding brought against the Pledgor with respect to any
Collateral; and (ix) to settle, compromise or adjust any suit, action or proceeding described above
and, in connection therewith, to give such

 

5

 

discharges or releases as the Bank may deem appropriate, at the Pledgor’s expense, at any
time, or from time to time, all acts and things which the Bank deems necessary to protect, preserve
or realize upon the Collateral and the Bank’s security interest therein, in order to effect the
intent of this Agreement, all as fully and effectively as the Pledgor might do.

The Pledgor hereby ratifies all that said attorney shall lawfully do or cause to be done by
virtue hereof. This power of attorney is a power coupled with an interest and shall be
irrevocable.

(b) The powers conferred on the Bank hereunder are solely to protect its interests in the
Collateral and shall not impose any duty upon it to exercise any such powers. The Bank shall be
accountable only for amounts that it actually receives as a result of the exercise of such powers
and neither it nor any of its officers, directors, employees or agents shall be responsible to the
Pledgor for any act or failure to act.

(c) The Pledgor also authorizes the Bank, at any time and from time to time, to execute, in
connection with any sale of the Collateral, any endorsements, assignments or other instruments of
conveyance or transfer with respect to the Collateral.

Section 7. Representations and Warranties of the Pledgor.

The Pledgor represents and warrants that:

(a) the Pledgor is the legal record and beneficial owner of the Pledged Stock, subject to no
pledge, lien, mortgage, hypothecation, security interest, charge, option or other encumbrance

whatsoever, except the lien and security interest created by this Agreement;

(b) the Pledged Stock constitutes 100% of the presently issued and outstanding shares of
common stock of the Issuer;

(c) subject to restrictions under Insurance Laws, the Pledgor has full power, authority and
legal right to pledge, and grant a security interest in, the Pledged Stock and the other Collateral
pursuant to this Agreement;

(d) this Agreement constitutes a legal, valid and binding obligation of the Pledgor, and is
enforceable against the Pledgor in accordance with its terms;

(e) except for the restrictions under Insurance Laws, no consent of any other person or
entity, including the Issuer, and no consent, license, permit, approval or authorization or,
exemption by, notice or report to, or registration, filing or declaration with, any governmental
authority, domestic or foreign, is required to be obtained by Pledgor in connection with the
execution, delivery or performance of this Agreement or the grant of the security interest in and
pledge of the Pledged Stock hereunder, in each case which has not been obtained or made, as the
case may be, and is not in full force and effect;

 

6

 

(f) the execution, delivery and performance of this Agreement will not violate any provision
of any applicable law or regulation or of any order, judgment, writ, award or decree of any court,
arbitrator or governmental authority, domestic or foreign, or of the articles of incorporation or
the code of regulations of the Issuer or of any securities issued by the Issuer, or of any
mortgage, indenture, lease, contract, or other agreement, instrument or undertaking to which the
Pledgor or the Issuer is a party or which purports to be binding upon the Pledgor or the Issuer, or
upon any of the Pledgor’s or the Issuer’s assets, and will not result in the creation or imposition
of any lien, charge or encumbrance on or security interest in any of the assets of the Pledgor or
the Issuer, except as contemplated by this Agreement; and

(g) no litigation, investigation or proceeding of or before any arbitrator or governmental
authority is pending or, to the knowledge of the Pledgor, threatened by or against the Pledgor or
the Issuer, or against any of his or its properties or revenues, with respect to this Agreement.

Section 8. Covenants of the Pledgor.

The Pledgor covenants and agrees that, subject to compliance with Insurance Laws:

(a) the Pledgor shall defend the right, title and security interest of the Bank in and to the
Pledged Stock, the proceeds thereof and all other Collateral against the claims and demands of all
persons whomsoever;

(b) the Pledgor shall have like title to and right to pledge any other property at any time
hereafter pledged to the Bank as Collateral hereunder and will likewise defend the right of the
Bank thereto and security interest therein;

(c) the Pledgor shall not sell, convey or otherwise dispose of any of the Pledged Stock or
other Collateral or any interest therein or create, incur or permit to exist any pledge, mortgage,
lien, charge, encumbrance or any security interest whatsoever in, or with respect to, any of the
Pledged Stock, any other Collateral, or the proceeds thereof, other than that created hereby; and

(d) the Pledgor shall not consent to, approve of or permit the issuance of any (i) additional
shares of any class of capital stock by the Issuer; (ii) securities convertible voluntarily by the
holder thereof or automatically upon the occurrence or nonoccurrence of any event or condition
into, or exchangeable for, any such shares; or (iii) warrants, options, rights or other commitments
entitling any person or entity to purchase or otherwise acquire any such shares.

Section 9. Limitation of Liability.

Except as set forth in this Agreement, beyond the exercise of reasonable care to assure the
safe custody of the Pledged Stock while held hereunder, the Bank shall have no duty or liability to
preserve rights pertaining thereto and shall be relieved of all responsibility for the Pledged
Stock upon surrendering it or tendering surrender of it to the Pledgor in accordance with the terms
hereof.

 

7

 

Section 10. Further Assurances.

The Pledgor agrees that at any time and from time to time upon the written request of the
Bank, the Pledgor will execute and deliver such further documents and do such further acts and
things as the Bank may reasonably request in order to affect the purposes of this Agreement. The
Bank agrees that at any time and from time to time upon the written request of the Pledgor, the
Bank will execute and deliver such further documents and do such further acts and things as the
Pledgor may reasonably request in order to affect the purposes of this Agreement or compliance with
Insurance Laws.

Section 11. Severability.

Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.

Section 12. No Waiver; Cumulative Remedies.

The Bank shall not by any act, delay, omission or otherwise be deemed to have waived any of
its rights or remedies hereunder and no waiver shall be valid unless in writing, signed by the
Bank, and then only to the extent therein set forth. A waiver by the Bank of any right or remedy
hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Bank
would otherwise have on any future occasion. No failure to exercise, nor any delay in exercising
on the part of the Bank, any right, power or privilege hereunder shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, power or privilege hereunder preclude any
other or further exercise thereof or the exercise of any other right, power or privilege. The
rights and remedies herein provided are cumulative and may be exercised singly or concurrently, and
are not exclusive of any rights or remedies provided by law or agreement to Bank.

Section 13. Waivers, Amendments.

None of the terms or provisions of this Agreement may be waived, altered, modified or amended
except by an instrument in writing, duly executed by the Bank and the Pledgor. This Agreement and
all obligations of the Pledgor hereunder shall be binding upon the Pledgor’s heirs, personal
representatives, successors and permitted assigns, and shall, together with the rights and remedies
of the Bank hereunder, inure to the benefit of the Bank and its successors and assigns; provided,
however, that the Pledgor may not assign this Agreement without the prior written consent of the
Bank.

 

8

 

Section 14. Amendments, Modifications and Waivers with Respect to Obligations.

The Pledgor hereby consents that, without the necessity of any reservation of rights against
it, and without notice to or further assent by the Pledgor, any demand for payment of any of the
Obligations made by the Bank may be rescinded by the Bank and any of the Obligations continued, and
the Obligations, or the liability of any party upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may, from time to time, in
whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived,
surrendered, or released by the Bank, and the Notes, the Credit Agreement, any other Loan Documents
and any collateral in connection therewith may be amended, modified, supplemented, extended,
restated, replaced or terminated, in whole or in part, and the security at any time held by the
Bank for the payment of the Obligations may be sold, exchanged, waived, surrendered or released,
all without the necessity of any reservation of rights against the Pledgor and without notice to or
further assent by the Pledgor, which will remain bound hereunder, notwithstanding any such renewal,
extension, modification, acceleration, compromise, amendment, supplement, extension, restatement,
replacement, termination, sale, exchange, waiver, surrender or release. Except as set forth in
Section 20 of this Agreement, the Bank shall have no obligation to protect, secure, perfect or
insure any other collateral security document or property subject thereto at any time held as
security for the Obligations. The Pledgor waives any and all notice of the creation, renewal,
extension or accrual of any of the Obligations and notice of or proof of reliance of the Bank upon
this Agreement, and the Obligations, and any of them, shall conclusively be deemed to have been
created, contracted or incurred in reliance upon this Agreement, and all dealings between the
Pledgor and the Bank shall likewise be conclusively presumed to have been made or consummated in
reliance upon this Agreement. The Pledgor waives diligence, presentment, protest, notice of intent
to accelerate and notice of acceleration, demand for payment and notice of default or nonpayment to
or upon the Pledgor with respect to the Obligations.

Section 15. Reinstatement.

This Agreement shall remain in full force and effect and continue to be effective should any
petition be filed by or against the Pledgor for liquidation or reorganization, should the Pledgor
become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee
be appointed for all or any significant part of the Pledgor’s assets, and shall continue to be
effective or be reinstated, as the case may be, if at any time payment and performance of the
Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount,
or must otherwise be restored or returned by any obligee of the Obligations, whether as a “voidable
preference”, “fraudulent conveyance”, or otherwise, all as though such payment or performance had
not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored
or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and
not so rescinded, reduced, restored or returned.

Section 16. Indemnity.

Except for the expenses related to a loss of the Pledged Stock by the Bank as set forth in
Section 20, the Pledgor hereby agrees to indemnify, pay and hold harmless Bank and the officers,

 

9

 

directors, employees and counsel of Bank (collectively, the “Indemnitees”) from and against
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs, expenses and disbursements of any kind or nature whatsoever (including the fees and
disbursements of counsel for such Indemnitee) in connection with any investigative, administrative
or judicial proceeding, whether or not such Indemnitee shall be designated a party thereto and
including any such proceeding initiated by or on behalf of the Pledgor or the Issuer, which may be
imposed on, incurred by or asserted against such Indemnitee as a result of or in connection with
this Agreement or the enforcement by Bank of its rights and remedies hereunder, except that the
Pledgor shall have no obligation hereunder to an Indemnitee with respect to any liability resulting
from the gross negligence or willful misconduct of such Indemnitee, as determined by a court of
competent jurisdiction. To the extent that the undertaking set forth in the immediately preceding
sentence may be unenforceable, the Pledgor shall contribute the maximum portion which the Pledgor
is permitted to pay and satisfy under applicable law to the payment and satisfaction of all such
indemnified liabilities incurred by the Indemnitees.

Section 17. Governing Law.

This Agreement shall be construed in accordance with the internal laws (but without regard to
the conflict of laws provisions) of the State of Ohio, but giving effect to federal laws applicable
to national banks.

Section 18. Consent to Jurisdiction.

The Pledgor hereby irrevocably submits to the non exclusive jurisdiction of any United States
federal or Ohio state court sitting in Columbus, Ohio in any action or proceeding arising out of or
relating to this Agreement or any of the other Loan Documents and the Pledgor hereby irrevocably
agrees that all claims in respect of such action or proceeding may be heard and determined in any
such court and irrevocably waives any objection it may now or hereafter have as to the venue of any
such suit, action or proceeding brought in such a court or that such court is an inconvenient
forum. Nothing herein shall limit the right of the Bank to bring proceedings against the Pledgor
in the courts of any other jurisdiction. Any judicial proceeding by the Pledgor against the Bank
or any Affiliate of the Bank involving, directly or indirectly, any matter in any way arising out
of, related to, or connected with this Agreement or any other Loan Document shall be brought only
in a court in Columbus, Ohio.

Section 19. Notices.

Notices from one party to another relating to this Agreement shall be deemed effective if
given in the manner as provided in the Credit Agreement.

Section 20. Continuing Security Interest.

This Agreement shall create a continuing security interest in the Collateral and shall remain
in full force and effect until the indefeasible payment and satisfaction in full of the Term Loan,
at which point this Agreement shall terminate. The Bank shall deliver to the Pledgor, upon

 

10

 

termination of this Agreement such of the Pledged Stock as shall not have been sold or
otherwise disposed of pursuant to this Agreement. Upon termination of this Agreement, the Pledged
Stock shall be delivered to Pledgor within ten (10) Business Days thereof.

Section 21. Registration Rights.

If any of the Pledged Stock is not registered under the Securities Act of 1933, as amended,
and the Issuer proposes to register any of its securities, the Pledgor will give the Bank notice of
that fact. In addition, and at no cost to the Bank, the Pledgor will use its best efforts to
induce the Issuer to register the Pledged Stock so that they may be disposed of by public sale or
other public disposition. Upon the completion of registration, the Pledgor will deliver
certificates without any restrictive legend in exchange for the unregistered Pledged Stock. The
Pledgor shall indemnify and hold the Bank harmless against any loss, claim, damage or liability
arising out of the registration process, and will reimburse Bank for any legal or other expenses
incurred by the Bank as a result.

Section 22. WAIVER OF JURY TRIAL.

THE PLEDGOR AND THE BANK HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY
ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE
RELATIONSHIP ESTABLISHED THEREUNDER.

Section 23. Waiver of Subrogation; Other Waivers.

The Pledgor expressly waives any and all rights of subrogation, contribution, reimbursement,
indemnity, exoneration, implied contract, recourse to security or any other claim (including any
claim, as that term is defined in the Federal Bankruptcy Code, and any amendments) which it may now
have or later acquire against any other party directly or contingently liable for the Obligations
arising from the existence or performance of the Pledgor’s obligations under this Agreement, until
the Obligations and all indebtedness and amounts secured hereby are indefeasibly paid in full. The
Pledgor irrevocably waives acceptance hereof, presentment, demand, protest and, to the fullest
extent permitted by law, any notice not provided for herein, as well as any requirement that at any
time any action be taken by any party against any other party. The Pledgor hereby waives all
defenses including but not limited to all defenses based upon suretyship and impairment of
collateral.

Section 24. Agreement Unconditional.

The obligations of the Pledgor hereunder shall be unconditional and absolute and, without
limiting the generality of the foregoing, shall not be released, discharged or otherwise affected
by:

(a) any extension, renewal, settlement, compromise, waiver or release in respect of any of the
indebtedness and amounts secured hereby, by operation of law or otherwise, or any

 

11

 

 obligation of any
other party with respect to any of the indebtedness and amounts secured hereby, or any Event of
Default;

(b) any modification or amendment of or supplement to the Credit Agreement or any other Loan
Document;

(c) any release, nonperfection or invalidity of any direct or indirect security for any
obligation of any other party under the Credit Agreement or any other Loan Document, or any
obligations of any other party with respect to any of the indebtedness and amounts secured hereby,
or any action or failure to act by the Bank or any affiliate of the Bank with respect to any
property securing the indebtedness and amounts secured hereby;

(d) any change in the corporate or other existence, structure or ownership of any other party
with respect to any of the indebtedness and amounts secured hereby, or any insolvency, bankruptcy,
reorganization or other similar proceeding affecting any other party with respect to the
indebtedness and amounts secured hereby, or its assets or any resulting release or discharge of any
obligation of any other party with respect to any of the indebtedness and amounts secured hereby;

(e) the existence of any claim, setoff or other rights which the Pledgor may have at any time
against any other party with respect to any of the indebtedness and amounts secured hereby, the
Bank or any other party, whether in connection herewith or any unrelated transactions;

(f) any invalidity or unenforceability relating to or against any other party with respect to
any of the indebtedness and amounts secured hereby, for any reason related to the Credit Agreement
or the other Loan Documents, or any provision of applicable law or regulation purporting to
prohibit the payment by any other party with respect to any of the all indebtedness and amounts
secured hereby; or

(g) any other act or omission to act or delay of any kind by the Bank or any other party or
any other circumstance whatsoever which might, but for the provisions of this paragraph, constitute
a legal or equitable discharge of the Pledgor’s obligations hereunder or its grant of the lien and
security interest in the Collateral hereunder.

[Balance of page intentionally left blank]

 

12

 

IN WITNESS WHEREOF, the Pledgor has executed and delivered this Agreement as of the date first
above written.

	 	 	 	 	 	 	 
	 	 	PLEDGOR:	 	 
	 
	 	 	 	 	 	 
	 	 	Bancinsurance Corporation,

an Ohio corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Matthew C. Nolan, Vice President,

Chief Financial Officer, Treasurer

and Secretary
	 	 
	 
	 	 	 	 	 	 
	 	 	Address:   250 East Broad Street, 7th Floor
Columbus, Ohio 43215
	 	 

 

13

 

EXHIBIT A

Stock Transfer Power

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto Fifth Third Bank,
an Ohio banking corporation, thirty-seven thousand three hundred thirty-two (37,332) shares of the
common stock of Ohio Indemnity Company, (the “Company”), standing in its name on the books of the
Company represented by Certificate Nos. 87 and 88, and does hereby irrevocably constitute and
appoint                                                              to transfer the said units on the books of the Company,
with full power of substitution in the premises.

	 	 	 	 	 
	Dated: October ____, 2010 	Bancinsurance Corporation,

an Ohio corporation

 	 
	 	By:  	 	 
	 	 	Matthew C. Nolan, Vice President, 	 
	 	 	Chief Financial Officer, Treasurer
and Secretary 	 
	 

 

 

 

EXHIBIT B

Notice of Pledge

October ___, 2010

	TO:	 	 Ohio Indemnity Company

250 E. Broad Street, 7th Floor

Columbus, Ohio 43215

Attn: President

	 
	RE:	 	 Pledge of Common Stock of Ohio Indemnity Company (the “Company”)

To Whom It May Concern:

You are hereby notified that the undersigned has granted a security interest in and pledged all of
the shares of Common Stock owned by it on the books and records of the Company to Fifth Third Bank,
an Ohio banking corporation (the “Bank”) pursuant to the terms and conditions of that certain Stock
Pledge Agreement executed by the undersigned in favor of the Bank, dated as of October _____, 2010.

Please deem any instructions by the Bank which you receive regarding the exercise of any rights
with respect to the shares as if such instructions were made by the undersigned to you, until
further instruction from the Bank.

	 	 	 	 	 
	 	Bancinsurance Corporation,

an Ohio corporation

 	 
	 	By:  	 	 
	 	 	Matthew C. Nolan, Vice President, 	 
	 	 	Chief Financial Officer, Treasurer
and Secretary

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