Document:

Unassociated Document

    EXHIBIT 10.16

     

    Capital Group
Communications, Inc. Agreement

     

    
      	
               
      

            	
              CONSULTING
      AGREEMENT

            

    

     

    This
Consulting Agreement (the “Agreement”), effective as of March 8, 2010 is entered
into by and between, China Wi-Max Communications, Inc (herein referred to as the
“Company”) and Capital Group Communications, Inc., a California corporation with
principal address at 80 Liberty Ship Way Suite 7, Sausalito CA 94965 (herein
referred to as the “Consultant”).  As used in this Agreement, the
term, “Parties,” shall refer to the Company and Consultant jointly.

     

    WHEREAS:

     

    
      	
              A.

            	
              The
      Company seeks to engage the services of Consultant to assist the Company
      in its efforts to gain greater recognition and awareness among relevant
      investors in the public capital
markets.

            

    

    
      	
              B.

            	
              The
      Company is familiar with Consultant and Consultant’s skills and
      expertise.

            

    

    
      	
              C.

            	
              The
      Parties acknowledge and agree that Consultant has completed a preliminary
      review and evaluation of the Company and the challenges facing the Company
      in the investor relations marketplace and the Company and Consultant have
      had discussions regarding these and other matters relating to the
      Company’s investor relations
objectives.

            

    

    
      	
              D.

            	
              Consultant
      is willing to assist the Company to better develop investor recognition
      and awareness in the public capital
markets.

            

    

    
      	
              E.

            	
              Subject
      to the terms and conditions of this Agreement, the Company hereby engages
      the services of Consultant to represent the Company in investors'
      communications and public relations with existing shareholders, brokers,
      dealers and other investment professionals and to consult with management
      concerning such Company activities.

            

    

     

    NOW
THEREFORE THE PARTIES AGREE AS FOLLOWS:

     

    1.00           Commencement
and Term of Consulting Services from Consultant.

     

    The
Company hereby agrees to retain the Consultant to act in a consulting capacity
to the Company, and Consultant hereby agrees to provide certain consulting
services to the Company as described in Section 2.00 of this Agreement for a
period of Twelve (12) months from the date at which a copy of this Agreement is
executed and delivered to Consultant with the Fees (defined in Section 4.00 of
this Agreement) (the “Term”).

     

    2.00           Duties
of Consultant.

     

    Including
amendment A of this Agreement, Consultant agrees that it shall provide the
following specified consulting services on a best efforts basis:

     

    2.01           Present
the company to Consultant’s online network of Brokers, Analyst and
Institutions.

     

    2.02           Assist
the Company in further reviewing the preliminary evaluation and assessment
prepared by Consultant in evaluating and assessing the challenges facing the
Company in communicating with the investor marketplace.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.03           Consult
and assist the Company, as appropriate, in: (1) developing and implementing
plans and means for presenting the Company and its business plans, strategy and
personnel to the financial community (using Consultant’s database of licensed
brokers, analyst, institutions and fund managers); and (2) establishing an image
for the Company in the financial community through an extensive grass roots
marketing program.

     

    2.04           With
the cooperation of the Company and during the Term, maintain target investor
awareness of the Company's plans, strategy and personnel, as they may evolve
during the Term, and consult and assist the Company in communicating appropriate
information regarding such plans, strategy and personnel to Consultant’s
designated subscribers.

     

    2.05           Provide
assistance to the Company with respect to its shareholder
relations.

     

    2.06           At
the Company’s request and subject to the Company’s securing its own rights to
the use of its names, marks, and logos, Consultant shall assist the Company in
the use of its corporate symbols, logos, and names to enhance the presentation
of said symbols, logos and names, and other matters relating to the Company’s
corporate image.

     

    2.07           Upon
the Company's direction and approval, Consultant shall disseminate information
regarding the Company to Consultant’s online newsgroups and its members and
provide re-direction from yahoo.com finance, investment community professionals
and the general investing public.

     

    2.08           At
the Company's request, review business plans, strategies, mission statements
budgets, proposed transactions and other plans for the purpose of advising the
Company of the public relations implications thereof.

     

    3.00           Allocation
of Time and Energies.

     

    The
Consultant hereby agrees to use its best efforts to perform and discharge
faithfully the responsibilities which may be assigned to the Consultant from
time to time by the officers and duly authorized representatives of the Company
in connection with the conduct of the Company’s financial, public relations and
communications activities, subject to compliance with applicable state and
federal securities laws and regulations.

     

    3.01           The
Parties acknowledge and agree that the services provided by Consultant and staff
shall diligently and thoroughly provide the consulting services required
hereunder.  The services to be provided by Consultant shall not be
measured by the number of hours devoted by Consultant’s staff on a per day basis
and Consultant and the Company agree that Consultant shall perform the duties
set forth in Section 2.00 of this Agreement in a diligent and professional
manner.  The Parties acknowledge and agree that a disproportionately
large amount of the effort to be expended and the costs to be incurred by the
Consultant and the benefits to be received by the Company are expected to occur
within or shortly after the first two (2) months from the commencement of the
Term of this Agreement.  It is expressly understood that Consultant's
performance of its duties hereunder will in no way be measured by the price of
the Company's common stock, nor the trading volume of the Company's common
stock.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.02  Additionally,
CGC agrees to the following specific IR duties:

     

    
    

     

    
      	
              a)  Create
      a 2 page fact sheet

            	 b) Create
      Comparable List
	 	 
	
              c) Create Facebook
      (fan page) 

            	
              d) Make
      200 Calls per week to CGC Database

            
	 	 
	
              e) Create Corporate
      Video 

            	f) Publish Video on
      YouTube
	 	 
	
              g) Target Comparable
      Company Institutions, Funds and
Shareholders

            

    

     

    4.00           Compensation
to Consultant for Consulting Services.

     

    In
consideration for the consulting services rendered to the Company as described
in Section 2.00 of this Agreement, together with other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Company hereby agrees to pay Consultant the following consulting fees (the
“Fees”):

     

    
      	
              4.01

            	
              Payment
      of Commencement Fee to Consultant by the Company. In consideration for
      Consultant’s undertaking a preliminary evaluation of the Company and
      Consultant’s preliminary assessment of the challenges and difficulties
      facing the Company, the Company shall pay and deliver to Consultant (at
      Consultant’s address stated on the first page of this
      Agreement).

            

    

     

    4.01.01                      Issue
and deliver to Consultant, at Consultant’s address stated on this Agreement, one
(1) or more stock certificates (the “Certificates”) representing 1,300,000
shares of the companies common stock.  Each Certificate shall bear a
restricted securities legend in accordance with the Securities Act of
1933.  These Fees shall be for all purposes non-refundable in every
respect.  In the event that the Company later elects to terminate this
Agreement at any time following the commencement of the Term, the Fee shall not
be refunded and no amount or portion of either shall be due or returned to the
Company.  In addition, the Company’s Corporate Secretary shall execute
and deliver the Certificate of Corporate Secretary (attached hereto as Exhibit
B) with a manually executed copy of this Agreement.

     

     

    4.01.02                      Deliver
a true and accurate photocopy of the Board of Directors’ resolution duly adopted
by the Company’s Board of Directors authorizing the issuance of the Shares and
approving this Agreement.

     

     

    
      	
              4.02

            	
              The
      Parties hereto acknowledge and agree that Consultant has foregone
      significant alternative opportunities in entering into this Agreement and
      assuming the obligations set forth in Section 2.00 of this
      Agreement.  The Company further acknowledges and agrees that it
      derives substantial benefit from the execution of this Agreement and the
      ability to announce its relationship with
  Consultant.

            

    

     

     

    4.03           The
shares of the Common Stock issued as a Fee shall constitute payment for
Consultant’s agreement to consult to the Company and are a non-refundable,
non-apportion able, and non-ratable retainer and the Fee are not and shall not
be construed as a prepayment for future services.  In the event that
the Company terminates this Agreement prior to the completion of the Term of
this Agreement, for any reason whatsoever, it is agreed and understood that the
Fee shall not be refundable or returned to the Company.

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.00           Representations
of Each of the Parties.

     

    5.01           Representations
of Consultant. Consultant acknowledges that the shares of Common Stock to be
issued to Consultant as the Stock Fee pursuant to this Agreement have not been
registered under the Securities Act of 1933 (the “1933 Act”), and accordingly
are “restricted securities” within the meaning of Rule 144 of the 1933
Act.  As such, the Shares may not be resold or transferred unless the
Company has received an opinion of counsel reasonably satisfactory to the
Company that such resale or transfer is exempt from the registration
requirements of the 1933 Act.  Further, Consultant agrees that in
connection with the acquisition of Shares hereunder, the Consultant represents
and warrants to the Company, to the best of its/his knowledge, as follows: (1)
Consultant acknowledges that the Consultant has been afforded the opportunity to
ask questions of and receive answers from duly authorized officers or other
representatives of the Company concerning an investment in the Shares, and any
additional information which the Consultant has requested; (2) Consultant has
had experience in investments in restricted and publicly traded securities; and
(3) Consultant has had experience in investments in speculative securities and
other investments which involve the risk of loss of
investment.  Consultant acknowledges that an investment in the Shares
is speculative and involves the risk of loss. Consultant has the requisite
knowledge to assess the relative merits and of the investment without the
necessity of relying upon other advisors, and Consultant can afford the risk of
loss of his entire investment in the Shares.  Consultant is (i) an
accredited investor, as that term is defined in Regulation D promulgated under
the Securities Act of 1933, and (ii) a purchaser described in Section 25102 (f)
(2) of the California Corporate Securities Law of 1968, as amended. In addition,
Consultant is acquiring the Shares for the Consultant’s own account for
long-term investment and not with a view toward resale or distribution thereof
except in accordance with applicable securities laws.

     

    5.02           Representations
of the Company RE: General.  The Company represents that: (1) it has
the requisite authority and power to enter into this Agreement; (2) this
Agreement and the obligations recited hereunder have been approved by the
Company’s Board of Directors; (3) the shares of the Company’s Common Stock
issued to Consultant are free from the claims and interests of any third party;
and (4) the Stock Fee are non-refundable and any termination or attempted
cancellation of this Agreement shall not give the Company or any other person
the right to receive the refund or return of either or both of said
fees.

     

    5.03           Representations
of the Company RE: Valuation of the Shares.  The Company represents
that: (1) the shares issued to Consultant in payment of the Stock Fee are
restricted securities; (2) the Stock Fee has been and for all purposes will be
valued at no more than the amount set forth in Exhibit B attached to and
incorporated by reference herein; (3) the value accorded the shares issued to
Consultant in payment of the Stock Fee is not inconsistent with any values
accorded shares of the Company’s Common Stock issued in similar amounts within a
reasonable time period prior to or contemporaneous with the payment of the Stock
Fee to Consultant;  and (4) the value accorded the Stock Fee takes
into account the lack of liquidity of the Stock Fee and the lack of
marketability of the block of stock represented by the Stock Fee.

     

    6.00           Additional
Representations of the Company.

     

    In
addition, the Company represents that Company, and not Consultant, is
responsible to perform any and all due diligence on such lender, equity
purchaser or acquisition candidate introduced to it by Consultant under this
Agreement, prior to Company receiving funds or closing on any
acquisition.  However, Consultant shall undertake its best efforts to
avoid the introduction of any third party which is known to Consultant to have
had a prior reputation or history of questionable, unethical, or illicit
activities.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.00           Assignment
of Agreement & Assignment of Rights and Obligations.

     

    Consultant’s
services under this contract are offered to Company only and may not be assigned
by the Company to any other person or entity with which Company merges or which
acquires the Company or substantially all of its assets. In the event of said
merger or acquisition, all compensation to Consultant herein under the schedules
set forth herein shall remain due and payable, and any compensation received by
the Consultant may be retained in the entirety by Consultant, all without any
reduction or pro-rating and shall be considered and remain fully paid and
non-assessable. Company shall assure that in the event of any merger,
acquisition, or similar change of form of entity that its successor entity shall
agree to complete all obligations to Consultant, including the provision and
transfer of all compensation herein, and the preservation of the value thereof
consistent with the rights granted to Consultant by the Company herein, and to
Shareholders.

     

    8.00           Obligation
for Expenses.

     

    Consultant
agrees to pay for all its expenses (phone, mailing, labor, etc.), other than
extraordinary items (travel required by/or specifically requested by the
Company, luncheons or dinners to large groups of investment professionals, mass
faxing to a sizable percentage of the Company's constituents, investor
conference calls, print advertisements in publications, etc.) approved by the
Company prior to its incurring an obligation for reimbursement.

     

    9.00           Indemnification
of Consultant and Consultant’s Employees and Agents by the Company.

     

    The
Company hereby agrees to indemnify and hold Consultant and Consultant’s
employees and agents (the “Indemnified Parties”) harmless against (i) any and
all liabilities, obligations, losses, damages, claims, actions, asserted against
any one or more of the Indemnified Parties, based upon, resulting from or
arising out of any misstatement or omission of material fact contained in one or
more of the statements, representations, press releases, announcements, reports,
or filings made or prepared by the Company or its agents and (ii) any cost or
expense (including reasonable attorneys' fees and court costs) incurred by the
Indemnified Parties or any of them in connection with the foregoing (including,
without limitation, any cost or expense incurred by the Indemnified Parties in
enforcing their rights pursuant to this Section 9.00).  No demand or
claim for indemnification under this Section 9.00 may be made after 11:59 p.m.,
California time, on the date six (6) years following the last date at which
services were rendered to the Company under this Agreement or any extension
thereof.

     

    9.01           Obligation
for Compliance with Securities Laws.  The Parties agree that the
Company shall assume and remain at all times responsible for all information,
statements,  and documents released or provided to Consultant and for
compliance with Regulation FD or any other provisions of the Securities Exchange
Act of 1934 (the “1934 Act Obligations”).

     

    10.00           Agree
To Opinion Shares:

     

    Company
agrees to immediately cause an opinion on shares within 7 business days of
request.

     

    11.00           Further
Assurance.

     

    Each of
the parties shall hereafter execute all documents and do all acts reasonably
necessary to effect the provisions of this Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    12.00           Successors.

     

    The
provisions of this Agreement shall be deemed to obligate, extend to and inure to
the benefit of the successors, assigns, transferees, grantees, and indemnities
of each of the Parties to this Agreement.

     

    13.00           Independent
Counsel.

     

    Each of
the Parties to this Agreement acknowledges and agrees that it has been
represented by independent counsel of its own choice throughout all negotiations
which preceded the execution of this Agreement and the transactions referred to
in this Agreement, and each has executed this Agreement with the consent and
upon the advice of said independent counsel.  Each party represents
that he or it fully understands the provisions of this Agreement, has consulted
with counsel concerning its terms and executes this Agreement of his or its own
free choice without reference to any representations, promises or expectations
not set forth herein.

     

    14.00           Integration.

     

    This
Agreement, after full execution, acknowledgment and delivery, memorializes and
constitutes the entire agreement and understanding between the parties and
supersedes and replaces all prior negotiations and agreements of the parties,
whether written or unwritten.  Each of the Parties to this Agreement
acknowledges that no other party, nor any agent or attorney of any other party
has made any promises, representations, or warranty whatsoever, express or
implied, which is not expressly contained in this Agreement; and each party
further acknowledges that he or it has not executed this Agreement in reliance
upon any belief as to any fact not expressly recited hereinabove.

     

    15.00           Attorneys
Fees.

     

    In the
event of a dispute between the parties concerning the enforcement or
interpretation of this Agreement, the prevailing party in such dispute, whether
by legal proceedings or otherwise, shall be reimbursed immediately for the
reasonably incurred attorneys' fees and other costs and expenses by the other
Parties to the dispute.

     

    16.00           Interpretation
& Right to Specific Performance.

     

    Wherever
the context so requires: the singular number shall include the plural; the
plural shall include the singular; and the masculine gender shall include the
feminine and neuter genders.  In the event that either party to this
Agreement commits a breach of its obligations under this Agreement, the other
party shall be entitled to specific performance in addition to any other
remedies to which they may be entitled.

     

    17.00                      Captions
& Exhibits.

     

    The
captions by which the sections and subsections of this Agreement are identified
are for convenience only, and shall have no effect whatsoever upon its
interpretation.

     

    18.00                      MISC

     

    19.00           Counterparts.

     

    This
Agreement may be executed in any number of counterparts.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    20.00           Expenses
Associated With This Agreement.

     

    Each of
the parties hereto agrees to bear its own costs, attorney’s fees and related
expenses associated with this Agreement.

     

    21.00           Arbitration.

     

    Any
dispute or claim arising to or in any way related to this Agreement shall be
settled by arbitration in Sausalito, California. All arbitration shall be
conducted in accordance with the rules and regulations of the American
Arbitration Association ("AAA").  AAA shall designate an arbitrator
from an approved list of arbitrators following both parties' review and deletion
of those arbitrators on the approved list having a conflict of interest with
either party. Each party shall pay its own expenses associated with such
arbitration (except as set forth in Section 11.05 Above).  A demand
for arbitration shall be made within a reasonable time after the claim, dispute
or other matter has arisen and in no event shall such demand be made after the
date when institution of legal or equitable proceedings based on such claim,
dispute or other matter in question would be barred by the applicable statutes
of limitations.  The decision of the arbitrators shall be rendered
within 60 days of submission of any claim or dispute, shall be in writing and
mailed to all the parties included in the arbitration. The decision of the
arbitrator shall be binding upon the parties and judgment in accordance with
that decision may be entered in any court having jurisdiction
thereof.

     

    22.00           Power
to Bind.

     

    A
responsible officer of the Company has read and understands the contents of this
Agreement and is empowered and duly authorized on behalf of the Company to
execute it.

     

    23.00           Confidentiality.

     

    The
parties hereto agree that the terms of this Agreement and all documents
constituting parts of this transaction shall be kept strictly confidential
except to the extent necessary to protect the rights of the parties hereto or to
satisfy the Company’s obligations under the Securities Exchange Act of 1934 and
the rules adopted by the Securities and Exchange Commission
hereunder.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

     

    
      	
              China
      Wi Max Inc:

               

              By: _________________________________

              Name
      (print): __________________________

              Title:
      ________________________________

              Address:
      _____________________________

               

            	
              Capital
      Group Communications:

               

              By: _____________________________

              Devin
      Bosch

              CEO

              Capital
      Group Communications, Inc

              80
      Liberty Ship Way, Suite 7 Sausalito, CA
94965

            

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    EXHIBIT
B

     

    CERTIFICATE
OF CORPORATE SECRETARY

     

    I,
_______________________ do hereby certify that I am the duly elected Corporate
Secretary of _____________________________________, a
_____________________corporation (the “Company”).

     

    I also
warrant and represent that the Consulting Agreement between the Company and
Consultant has been duly approved by the Company’s Board of Directors and the
shares of the Company’s Common Stock issued to Consultant as described in the
Agreement as a Stock Fee have been duly issued and earned by Consultant under
the terms of the Agreement and that all of the Stock Fee are fully earned and
paid for by Consultant. For all intensive purposes the fee shall be valued at
$00.001 per share.

     

    THIS
CERTIFICATE IS DELIVERED TO CONSULTANT FOR THE PURPOSE OF SUPPORTING THE
OBLIGATIONS OF THE COMPANY AS RECITED IN THE AGREEMENT.

     

    
      
        	Signed:	
                 

              	 	
                 

              	 
	 	
                 

              	 	
                 

              	 
	Name
      (print): 	 	 	 	 
	 	 	 	 	 
	Title:Unassociated Document

    Exhibit
4.1

     

    WESTERN
RESERVE BANCORP, INC.

    AMENDED
EMPLOYEE STOCK PURCHASE PLAN

    [This
document constitutes part of a prospectus covering securities that have been
registered under the Securities Act of 1933.]

    

    ARTICLE
I.  INTRODUCTION

    

    Section
1.01  Purpose.  The purpose of this Employee Stock
Purchase Plan (the "Plan") is to provide employees of Western Reserve Bancorp,
Inc., an Ohio corporation (the "Company"), and its subsidiaries and related
corporations with an opportunity to share in the ownership of the Company by
providing them with a convenient means for regular purchases of the Company's
Common Stock, without par value per share, and thus to develop a stronger
incentive to work for the continued success of the Company.

    

    Section
1.02  Nonqualified Plan.  It is not intended that the
Plan be a qualified plan under the Internal Revenue Code of 1986, as amended
(the "Code").  All Employees in the Plan will have the same rights and
privileges consistent with the provisions of the Plan.

    

    Section
1.03  Definitions.  For purposes of the Plan, the
following terms will have the meanings set forth below:

    

    (a)  "Affiliate" means any
parent or subsidiary corporation of the Company, as defined in Section 424(e)
and 424(f) of the Code, whether now or hereafter acquired or
established.

    

    (b)  "Committee" means the
committee appointed under Section 7.01.

    

    (c)  "Company" means Western
Reserve Bancorp, Inc., an Ohio corporation, and its successors by merger or
consolidation.

    

    (d)  "Employee" means any
employee of the Company or an Affiliate, including an officer.

    

    (e)  "Fair Market Value" as
of a given date means the value of the Common Stock as reasonably determined by
the Committee, but which is not less than the midpoint between the highest and
lowest price per share for transactions in the Company’s Common Stock over the
twenty business days immediately preceding the date as of which the Fair Market
Value of the Company’s Common Stock is being determined.

    

    (f)  "Plan" means this
Western Reserve Bancorp, Inc. Employee Stock Purchase Plan.

    

    (g)  "Purchase Period" means
a calendar quarter, or such other period beginning and ending on such business
days as may be designated by the Committee.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    (h)  "Stock" means the
Company's Common Stock, without par value, as it may be adjusted for changes in
the stock of the Company as described in Article VIII of the Plan.

    

    

    ARTICLE
II.  ELIGIBILITY AND PARTICIPATION

    

    Section
2.01  Eligible Employees.  All Employees are eligible
to participate in the Plan.

    

    Section
2.02  Election to Participate.  An Employee may elect
to participate in the Plan for a given Purchase Period by filing a form provided
by the Company and by the Employee having regular payroll deductions or paying
cash to the Company for such purchases at any time during the Purchase
Period.

    

    Section
2.03  Voluntary Participation.  An Employee’s
participation in the Plan is voluntary and participation is not a condition of
employment nor does participation guarantee that an Employee will be retained as
an employee.

    

    

    ARTICLE
III.  RIGHT TO PURCHASE SHARES

    

    Section
3.01  Number of Shares.  Each Employee will have the
right to purchase during the Purchase Period any number of whole shares of Stock
at the price specified in Section 3.02, subject to the limitation that no more
than $3,000 may be used to purchase Stock under the Plan by any one Employee in
any one calendar year.  However, if the purchases for all Employees
would otherwise cause the aggregate number of shares of Stock to be sold under
the Plan to exceed the number specified in Section 7.03, each Employee will be
allocated a pro rata portion of the Stock to be sold.

    

    Section
3.02  Purchase Price.  The purchase price for a
Purchase Period shall be the Fair Market Value as reasonably determined by the
Committee as of the last business day of the Purchase Period.

    

    

    ARTICLE
IV.  NONTRANSFERABILITY

    

    Section
4.01  Nontransferable Right to Purchase. The right to purchase
Stock under this Plan may not be assigned, transferred, pledged or hypothecated
(whether by operation of law or otherwise) and will not be subject to execution,
attachment or similar process.

    

    

    ARTICLE
V.  FORM OF OWNERSHIP

    

    Section
5.01  Delivery. The Company may maintain the interest of
Employees in the Plan in uncertificated form.  Promptly after the last
day of each Purchase Period and subject to the terms and conditions as the
Committee in its sole discretion may impose, the Company will deliver to the
Employee a report showing his or her ownership interest, or, at the option of
the Company, the Company may deliver a certificate representing the Stock
purchased during the Purchase Period under the terms of the
Plan.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    Section
5.02  Securities Laws.  The Company shall not be
required to issue or deliver any certificate representing Stock prior to
registration under the Securities Act of 1933, as amended or the Company
determining an exemption from such registration is available, and registration,
qualification or obtaining an appropriate exemption under any applicable state
law.  The delivery of certificates may be deferred until such
registration or determination of exemption is accomplished.  In the
event an exemption from registration is relied upon to issue Stock under this
Plan, the Company may impose restrictions on the transfer on the stock as it
deems necessary or appropriate.

    

    Section
5.03  Completion of Purchase.  An Employee will have
no interest in the Stock purchased until an appropriate entry is made on the
records of the Company if the stock is to be held in uncertificated form, or
until a certificate representing the Stock is issued to the
Employee.

    

    Section
5.04  Form of Ownership.  The
uncertificated interests in book entry form or the stock certificates
representing Stock issued under the Plan will be registered in the name of the
Employee, jointly in the name of the Employee and another person, or in a trust
for the benefit of the Employee, as the Employee may direct on a form provided
by the Company.

    

    

    ARTICLE
VI.  EFFECTIVE DATE AND AMENDMENT OR

    TERMINATION
OF PLAN

    

    Section
6.01  Effective Date.  The Plan will become effective
on January 1, 2004.

    

    Section
6.02  Powers of Board/Termination.  The Board of
Directors of the Company may at any time amend or terminate the
Plan.  The Plan shall remain in place until terminated by the Board of
Directors of the Company or until all shares of Stock authorized under the Plan
have been issued.

    

    

    ARTICLE
VII.  ADMINISTRATION

    

    Section
7.01  Appointment of Committee.  The Board of
Directors of the Company shall appoint a Committee to administer the Plan
consisting of three or more persons (who may but need not be directors of the
Company or of an Affiliate).  The Board will determine the size of the
Committee and will have the power to remove and replace the
members.  Until otherwise decided by the Board of Directors, the
Compensation Committee of the Board of Directors of the Company shall act as the
designated Committee.

    

    Section
7.02  Powers of Committee.  Subject to the
provisions of the Plan, the Committee will have full authority to administer the
Plan, including authority to interpret and construe any provision of the Plan,
to establish deadlines by which the various administrative forms must be
received in order to be effective, and to adopt such other rules and regulations
for administering the Plan as it may deem appropriate.  The Committee
shall have full authority to determine whether all or any part of the Stock
acquired pursuant to the Plan shall be subject to restrictions on the
transferability thereof or any other restrictions affecting in any manner an
Employee's rights with respect thereto.  Any such restrictions shall
be contained in the form by which an Employee elects to participate in the Plan
pursuant to Section 2.02, or, with respect to “affiliates” of the Company, as
defined in Rule 144 of the Securities and Exchange Commission, as set forth in
such legend or stop order placed on the certificates or uncertificated interests
in book entry form representing Stock issued under the Plan as the Board of
Directors or Committee shall determine.  Decisions of the Committee
will be final and binding on all parties who have an interest in the
Plan.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    Section
7.03  Stock to be Sold.  The Stock to be issued and
sold under the Plan may be treasury stock or authorized but unissued Stock.
Except as provided in Section 8.01, the aggregate number of shares of Stock to
be sold under the Plan will not exceed 16,250 common shares.

    

    Section
7.04  Notices.  Notices to the Committee should be
addressed as follows:

    

    
      	 
      	
              Western
      Reserve Bancorp, Inc.

            
	 
      	
              4015
      Medina Road

            
	 
      	
              Medina,
      Ohio  44256

            
	 
      	
              Attention:

            	
              Compensation
      Committee – Employee Stock Purchase
Plan

            

    

    

    

    ARTICLE
VIII.  ADJUSTMENT FOR CHANGES

    IN
STOCK OF COMPANY

    

    Section
8.01  Stock Dividend or Reclassification.  If the
outstanding shares of Stock are increased, decreased, changed into or exchanged
for a different number or kind of securities of the Company, through
reorganization, recapitalization, reclassification, stock dividend, stock split,
reverse stock split or otherwise, an appropriate adjustment shall be made in the
maximum numbers and/or kind of securities to be sold under this Plan with a
corresponding adjustment in the purchase price to be paid.

    

    

    ARTICLE
IX.  APPLICABLE LAW

    

    Rights to purchase Stock granted under
this Plan shall be construed and shall take effect in accordance with the laws
of the State of Ohio.

    
      
         

      

      
        4

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