Document:

Certificate of Deposit Assumption Agreement dated November 11, 2004

 Exhibit 10.126 
  
 CERTIFICATE OF DEPOSIT ASSUMPTION AGREEMENT 
  
 Dated as of 
  
 November 11, 2004 
  
 Between 
  
 GEAUGA SAVINGS BANK 
  
 And 
  
 PAN AMERICAN BANK
FSB 

 CERTIFICATE OF DEPOSIT ASSUMPTION AGREEMENT, dated as of November 11, 2004, between Geauga Savings
Bank, an Ohio state chartered savings bank in Newbury, Ohio (“Purchaser”), and Pan American Bank, FSB, a federal savings bank (“Seller”). 
  
 RECITALS 
  
 A. Seller. Seller is a federal savings bank with its principal executive offices located in Burlingame, California. 
  
 B. Purchaser. Purchaser is a FDIC insured, Ohio state chartered
savings bank, with its principal executive offices located in Newbury, Ohio. 
  
 C. The Transactions. Pursuant to the terms and conditions set forth below, Purchaser desires to assume and receive from Seller, and Seller desires to transfer to Purchaser, the internet deposit liabilities of
Seller and cash equaling the principal and accrued interest on the assumed deposit liabilities (the “Business”). 
  
 NOW, THEREFORE, in consideration of their mutual promises and obligations and intending to be legally bound hereby, the parties agree as follows:

  
 ARTICLE 1 
  
 CERTAIN DEFINITIONS 
  
 1.1 Certain Definitions. As used in this Agreement, the terms below
shall have the meanings set forth below. 
  
 “Accrued
Interest” on any deposit at any date means interest that is accrued on such deposit to such date and not yet posted to such deposit accounts or paid to the depositor. 
  
 “Affiliate” of a person means any person directly or indirectly controlling or controlled by or under direct or
indirect common control with such person. 
  
 “Agreement” means this Certificate of Deposit Assumption Agreement, including all schedules, exhibits and addenda as modified, amended or extended from time to time. 
  
 “Assumed Deposits” means all Money Desk CDs existing on the Closing Date and assumed by Purchaser as of the
Closing as referenced on Exhibit A hereto. 

 “Bank Merger Act” means Section 18(c) of the Federal Deposit Insurance Act, as amended.

  
 “Brokered Deposits” shall mean deposits which if
assumed by Purchaser may be classified as “brokered deposits” by Purchaser’s regulators. 
  
 “Business” shall have the meaning specified in Recital C. 
  
 “Business Day” means a day on which Seller is open for business and which is not a Saturday or Sunday. 

 
 “Cash” means the face amount of the Money Desk CDs as of the
Closing. 
  
 “Closing” and “Closing Date”
refer to the closing for the assumption of the Business to be held at such time and date as provided for in Article 10 hereof. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “FDIC” means the Federal Deposit Insurance Corporation. 
  
 “Information” shall have the meaning set forth in Section 7.2(b).

  
 “Losses” means losses, liabilities, damages
(including forgiveness or cancellation of obligations), expenses, costs and legal fees and disbursements collectively. 
  
 “Material Adverse Effect” means a material adverse effect on the conditions, financial or otherwise, results of operations or prospects of the
Business, or on the consummation of the transactions contemplated hereby. 
  
 “Money Desk CDs” mean, as of any date, the principal amount and accrued but unpaid interest of certificates of deposit booked by Seller through the internet, provided, however, that Money Desk CDs
shall not include any deposit liabilities which, by law or contract (including the terms of any relevant deposit agreement), either Purchaser is not permitted to assume or Seller is not permitted to sell, transfer, assign or otherwise dispose of.

  
 “Purchase Premium” means the principal amount of the
Money Desk CDs multiplied by 34 basis points, plus accrued interest. 
  
 “Records” means all records and original documents in Seller’s possession which pertain to and are utilized by Seller to administer, reflect, monitor, evidence or record information respecting the Business and the Money Desk
CDs. 
  

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 “Regulatory Approvals” means all approvals, permits, authorizations, waivers or consents of
governmental agencies or authorities necessary or appropriate to permit consummation of the transactions contemplated herein and includes, without limitation, approval of the FDIC under the Bank Merger Act, and expiration of any applicable waiting
period provided for in the Bank Merger Act without commencement of any action challenging Purchaser’s assumption of the Assumed Deposits hereunder by the United States Department of Justice. 
  
 “Statement” means the statement reflecting the Cash and Money Desk
CDs to be transferred at the Closing, plus the Purchase Premium, all calculated as of 10:00 a.m. pacific standard time on the Closing Date. The Statement shall be prepared by Seller, in consultation with Purchaser. 
  
 “Taxes” means any federal, state or local taxes, including but not
limited to taxes on or measured by income, estimated income, franchise, capital stock, employee withholding, non-resident alien withholding, backup withholding, social security, occupation, unemployment, disability, value added taxes, taxes on
services, real property, personal property, sales, use, excise, transfer, gross receipts, inventory and merchandise, business privilege, and other taxes or governmental fees or charges or amounts required to be withheld and paid over to any
government in respect of any tax or governmental fee or charge, including any interest, penalties, or additions to tax on the foregoing whether or not disputed. 
  

“Transactions” shall have the meaning set forth in Section 9.1(d). 
  
 ARTICLE 2 
  
 THE TRANSACTIONS 
  
 2. Transfer and Consideration. Subject to the terms and conditions set forth in this Agreement, at the Closing Purchaser shall assume the Assumed
Deposits and the obligation to pay the Accrued Interest thereon, and receive the Cash (including all accrued but unpaid interest as of Closing) plus the Purchase Premium as set forth on the Statement (subject to any adjustments pursuant to Section
2.2 or 8.4, if applicable), and Seller shall pay and deliver the Cash plus the Purchase Premium to Purchaser, and assign, transfer, convey and deliver to Purchaser all of Seller’s right, title and interest in and to the Assumed Deposits.

  

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 ARTICLE 3 
  

LIMITATION OF LIABILITIES ASSUMED 
  
 3.1 Limitation of Liabilities Assumed. Except as otherwise expressly provided in this Agreement, neither Purchaser nor any of its Affiliates shall
assume pursuant hereto any liabilities, obligations or duties of Seller or any of its Affiliates of any kind or nature, whether or not accrued or fixed, absolute or contingent, determined or determinable (including, without limitation, any
penalties, fines or compensatory or punitive damages of any kind whatsoever), existing at the time of or arising out of or relating to acts, events or omissions to act that occurred at or prior to the Closing. Seller shall retain and duly perform
any and all such liabilities, obligations or duties other than those for and arising out of, the Assumed Deposits to the extent expressly provided otherwise under this Agreement. 
  
 ARTICLE 4 
  
 TRANSITIONAL MATTERS 
  
 4.1 Certain Procedures. Promptly after the execution of this Agreement, Seller will meet with Purchaser to investigate, confirm and agree upon
mutually acceptable procedures for transaction settlement and data processing services, to the extent necessary for orderly consummation of the transactions contemplated hereby. The agreed upon procedures will be documented by memorandum or other
written form. If Purchaser elects to conduct an automatic data processing conversion, each party shall bear its own costs in connection with such conversion. 
  
 4.2 Customers. To the extent required by applicable law or regulation, after execution of this Agreement and prior to Closing, Seller and Purchaser
shall, either individually or jointly, notify the depositors of the Money Desk CDs of the transactions contemplated hereby. As promptly as practicable following Closing, each of Seller and Purchaser shall provide, or join in providing where
appropriate, all notices to such depositors of the Assumed Deposits and other persons that Seller or Purchaser, as the case may be, is required to give by any regulatory authority having jurisdiction, or under applicable law or the terms of any
other agreement between Seller and any customer in connection with the transactions contemplated hereby. All costs and expenses of any notice or communication sent or published by Purchaser or Seller shall be the responsibility of the party sending
such notice or communication and all costs and expenses of any joint notice or communication shall be shared equally by Seller and Purchaser. 
  
 4.3 Assumption of Obligations. Following the Closing, Purchaser shall assume and thereafter timely discharge any and all of the duties and
obligations of Seller with respect to the Assumed Deposits not retained by the Seller and arising after the Closing, including but not limited to, those which may arise under account agreements, applicable laws, regulations, Operating Circulars of
the Federal Reserve Banks, agreements and rules of automated clearing houses and other payment systems which relate thereto. 
  

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 4.4 Maintenance of Records. Through the Closing Date, Seller will maintain the Records relating to
the Money Desk CDs in accordance with safe and sound banking practices and in a manner consistent with past practice, which is understood by Seller to be generally in accordance with GAAP. On the Closing Date, Seller shall assign, transfer, and
deliver to the Purchaser all Records relating to the Assumed Deposits. The Purchaser agrees that it shall retain, for as long as may be required by applicable law and in accordance with customary business practices, all of the Records for the joint
benefit of itself and the Seller. From and after the Closing Date, Purchase shall provide Seller reasonable access to any applicable Records in such party’s possession relating to matters arising on or before the Closing Date and reasonably
necessary in connection with any claim, action, litigation or other proceeding involving the Assumed Deposits and the party requesting access to such Records. 
  

4.5 Interest Reporting and Withholding. 
  
 (a) Purchaser shall report to the applicable taxing authorities and holders of Assumed Deposits, with respect to all periods on and after January 1 of the
year in which the Closing Date shall occur, all interest credited to, withheld from and early withdrawal penalties imposed upon the Assumed Deposits. Any amounts required by any governmental agencies to be withheld from any of the Assumed Deposits
through the Closing Date will be withheld by Seller in accordance with applicable law or appropriate notice from any governmental agency and will be remitted by Seller to the appropriate agency on or prior to the applicable due date. Any such
withholding required to be made subsequent to the Closing Date shall be withheld by Purchaser in accordance with applicable law or appropriate notice from any governmental agency and will be remitted by Purchaser to the appropriate agency on or
prior to the applicable due date. On the Closing Date, Seller shall: (1) provide Purchaser with all requisite interest reporting and withholding documentation so that Purchaser may discharge its obligations under this paragraph; and (2) pay to
Purchaser that portion of any sums withheld by Seller from any Assumed Deposits which are or may be required to be remitted by Purchaser pursuant to the foregoing. Seller shall directly remit to the applicable governmental agency that portion of any
such sums that are required to be remitted by Seller. 
  
 (b)
Purchaser shall be responsible for delivering to payees all IRS notices with respect to information reporting and tax identification numbers required to be delivered for the year in which the Closing Date will occur with respect to the Assumed
Deposits. Seller shall provide all such information it has to assist Purchaser in fulfilling its responsibility hereunder. 
  
 (c) Purchaser will make all required reports to applicable Tax or other governmental authorities, with respect to all periods on and after January 1 of
the year in which the Closing Date shall occur, concerning all interest and points received by the Purchaser and Seller, to the extent such information has been provided by seller. 
  

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 (d) At Purchaser’s option, Seller shall cause DHI Computing Service, Inc. to provide its reporting
and other services to Purchaser for the year 2004 to allow Purchaser to perform its obligations hereunder. 
  
 ARTICLE 5 
  
 REPRESENTATIONS AND WARRANTIES OF SELLER 
  
 Seller represents and warrants as follows: 
  
 5.1
Corporate Organization and Authority. Seller is a federally chartered savings bank, duly organized, validly existing and in good standing under the laws of the United States of America and has the requisite power and authority to conduct the
business now being conducted at its banking offices, and to accept and maintain the Money Desk CDs and Assumed Deposits. Seller is a member of SAIF and the Money Desk CDs and Assumed Deposits maintained at its banking offices are insured by SAIF,
subject to applicable FDIC coverage limitations. Seller has the requisite corporate power and authority and has taken all corporate action necessary in order to execute and deliver this Agreement and to consummate the transactions contemplated
hereby. This Agreement is a valid and binding agreement of Seller enforceable in accordance with its terms subject, as to enforcement, to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity principles. 
  
 5.2 No Conflict; Licenses and Permits; Compliance with Laws and Regulations. The execution, delivery and performance of this Agreement by Seller
does not, and will not, (i) violate any provision of its charter or by-laws or (ii) violate or constitute a breach of, or default under, any law, rule, regulation, judgment, decree, ruling or order of any court, government or governmental agency to
which Seller is subject or under any agreement or instrument of Seller, or to which Seller is subject or is a party or by which Seller is otherwise bound, or to which any of the Money Desk CDs are subject, which violation, breach, contravention or
default referred to in this clause would have a Material Adverse Effect, individually or in the aggregate. Seller has all material licenses, franchises, permits, certificates of public convenience, orders and other authorizations of all federal,
state and local governments and governmental authorities necessary for the lawful conduct of its business at its banking offices as now conducted and all such licenses, franchises, permits, certificates of public convenience, orders and other
authorizations are valid and in good standing and are not subject to any suspension, modification or revocation or proceedings related thereto. 
  
 5.3 Approvals and Consents. Except as required to obtain the Regulatory Approvals, no notices, reports or other filings are required to be made, as
of the date hereof, by Seller with, nor are any consents, registrations, approvals, permits or 

  

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authorizations required to be obtained, as of the date hereof, by Seller from, any governmental or regulatory authorities in connection with the execution
and delivery of this Agreement by Seller and the consummation by Seller of the transactions contemplated hereby. 
  
 5.4 Litigation and Liabilities. To Seller’s knowledge, no action, suit, proceeding or investigation is pending, or threatened against Seller
at law, in equity or otherwise, in, before or by any court or governmental agency or authority, related to the Money Desk CDs or the Assumed Deposits and for which no insurance coverage is maintained by Seller. There is no action, suit, proceeding
or investigation pending or, to Seller’s knowledge, threatened against Seller at law, in equity or otherwise, in, before, or by any court or governmental agency or authority related to the Money Desk CDs. There are no unsatisfied judgments or
outstanding orders, injunctions, decrees, stipulations or awards (whether rendered by a court, an administrative agency or by an arbitrator) against Seller or any of its subsidiaries or against any of its or their properties, assets or businesses
that, if resolved adversely would, individually or in the aggregate, have a Material Adverse Effect. Seller shall provide Purchaser with a schedule at Closing listing any such items described in this section. 
  
 5.5 Regulatory Matters. There are no pending, or, to the knowledge of
Seller, threatened, disputes or controversies between Seller and any federal, state or local governmental authority that, individually or in the aggregate, directly involve or reasonably could be expected to have a Material Adverse Effect.

  
 5.6 Brokers’ Fees. Except for Pimco Advisors CD
Distributors, LLC, (whose fee shall be paid by Seller), Seller has not employed any broker or finder or incurred any liability for any brokerage fees, commissions or finders’ fees in connection with the transactions contemplated by this
Agreement. 
  
 5.7 Compliance With Laws. The Business has
been conducted in substantial compliance with all federal, state and local laws, regulations and ordinances applicable thereto, except for any failures to comply that would not, individually or in the aggregate, result in a Material Adverse Effect,
and Seller has not been in violation of the Bank Secrecy Act, the USA Patriot Act, or their related statutes and regulations. 
  
 5.8 Agreements with Regulatory Authorities. Seller is not a party to any written order, decree, agreement or memorandum of understanding with, or
commitment letter or similar submission to, any federal or state governmental agency or authority charged with the supervision or regulation of depository institutions or engaged in the insurance of deposits nor has Seller been advised by any such
regulatory authority that such authority is contemplating issuing or requesting (or is considering the appropriateness of issuing or requesting) any such order, decree, agreement, memorandum of understanding, commitment letter of submission, which
order, decree, agreement, memorandum of understanding, commitment letter or submission either (i) could reasonably be expected to prevent or impair the ability of Seller to perform its obligations under this Agreement in any material respect, or
(ii) could impair the validity or consummation of this Agreement or the transactions contemplated hereby. 
  

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 5.9 Books and Records. Since December 31, 2000, the books, accounts and records relating to the
Money Desk CDs and the Assumed Deposits have been maintained in accordance with safe and sound banking practices and in a manner consistent with past practice, which is generally in accordance with generally accepted accounting principles.

  
 5.10 Brokered Deposits. Excluding deposits to Primary
Financial as Custodian for various Credit Unions, seller is not aware of any Brokered Deposits among the Assumed Deposits. 
  
 ARTICLE 6 
  
 REPRESENTATIONS AND WARRANTIES OF PURCHASER 
  
 Purchaser represents and warrants as follows: 
  
 6.1 Corporate Organization and Authority. Purchaser is a state chartered banking association, duly organized, validly existing and in good standing
under the laws of the State of Ohio and the United States of America, as applicable. Purchaser has the requisite corporate power and authority and has taken all corporate action necessary in order to execute and deliver this Agreement, to consummate
the transactions contemplated hereby, to assume and maintain the Assumed Deposits. This Agreement is a valid and binding agreement of Purchaser enforceable in accordance with its terms subject, as to enforcement, to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles. Purchaser is a member of SAIF and its deposits are insured by the FDIC,
subject to applicable FDIC coverage limitations. 
  
 6.2 No
Conflict; Licenses and Permits; Compliance with Laws and Regulations. The execution, delivery and performance of this Agreement by Purchaser does not, and will not, violate any provision of its charter or by-laws or violate or constitute a
breach or contravention of or default under any law, rule, regulation, order, judgment, decree or filing of any government, governmental authority or court to which Purchaser is subject or under any agreement or instrument of Purchaser, or to which
Purchaser is otherwise bound, which violation, breach, contravention or default, individually or in the aggregate, (i) could be expected to prevent or impair the ability of Purchaser to perform its obligations under this Agreement in any material
respect or (ii) could impair the validity or consummation of this Agreement or the transactions contemplated hereby. 
  
 6.3 Approvals and Consents. Except as required to obtain the Regulatory Approvals, no notices, reports or other filings are required to be made by
Purchaser with, nor are any consents, registrations, approvals, permits or authorizations required to be 

  

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obtained by Purchaser from, any governmental or regulatory authorities in connection with the execution and delivery of this Agreement by Purchaser and the
consummation of the transactions contemplated hereby by Purchaser. 
  
 6.4 Agreements with Regulatory Authorities. Purchaser is not a party to any written order, decree, agreement or memorandum of understanding with, or commitment letter or similar submission to, any federal or state governmental agency
or authority charged with the supervision or regulation of depository institutions or engaged in the insurance of deposits nor has Purchaser been advised by any such regulatory authority that such authority is contemplating issuing or requesting (or
is considering the appropriateness of issuing or requesting) any such order, decree, agreement, memorandum or understanding, commitment letter or submission, in each case which order, decree, agreement, memorandum of understanding, commitment letter
or submission (i) could reasonably be expected to prevent or impair the ability of Purchaser to perform its obligations under this Agreement in any material respect or (ii) could impair the validity or consummation of this Agreement or the
transactions contemplated hereby. 
  
 6.5 Brokers’
Fees. Purchaser has not employed any broker or finder or incurred any liability for any brokerage fees, commissions or finders’ fees in connection with the transactions contemplated by this Agreement. 
  
 ARTICLE 7 
  
 COVENANTS OF THE PARTIES 
  
 7.1 Activity in the Ordinary Course. From the date hereof, and until the Closing Date, Seller shall conduct the Business in the ordinary and usual
course following substantially the same practices and standards, including, without limitation, practices with respect to the keeping of the books, accounts and records of the Money Desk CDs, as they have been consistently applied since December 31,
2000 and will not enter into any transaction with respect to any of the Money Desk CDs or make any commitment with respect to the Money Desk CDs except in the ordinary and usual course of business consistent with past practice. From the date hereof
and until the Closing Date, Seller shall not, without the prior written consent of Purchaser: 
  
 (i) Offer interest rates or terms on any Money Desk CDs which are not determined in a way consistent with past practice and procedure; 
  
 (ii) Take, or permit its Affiliates to take, any action impairing Purchaser’s rights in any Money Desk CD. 

 
 7.2 Access and Confidentiality. 
  
 (a) Between the date of this Agreement and the Closing Date, Seller shall
afford to Purchaser and its officers, employees, agents and representatives reasonable 

  

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access to the properties, books, records, contracts, documents, files and other information of or relating to the Money Desk CDs and Assumed Deposits. Seller
shall cause its personnel to be reasonably available during normal business hours, to an extent not disruptive of ongoing operations, to provide information and assistance in connection with Purchaser’s investigation of matters relating to the
Money Desk CDs and Assumed Deposits and to familiarize Purchaser with basic policies and operational procedures of Seller relating to the Money Desk CDs and Assumed Deposits. 
  
 (b) Each party to this Agreement shall hold, and shall cause its respective directors, officers, employees, agents,
consultants and advisors to hold, in strict confidence, unless disclosure to a bank regulatory authority is necessary in connection with any Regulatory Approval or unless compelled to disclose by judicial or administrative process or, in the written
opinion of its counsel, by other requirements of law or the applicable requirements of any regulatory agency or relevant stock exchange, all non-public records, books, contracts, instruments, computer data and other data and information
(collectively, “Information”) concerning (i) depositors of the Money Desk CDs or (ii) the other party (or, if required under a contract with a third party, such third party) furnished it by such other party or its representatives
pursuant to this Agreement (except to the extent that such Information can be shown to have been (a) previously known by such party on a non-confidential basis, (b) in the public domain through no fault of such party or (c) later lawfully acquired
from other sources by the party to which it was furnished), and neither party shall release or disclose such Information to any other person, except its auditors, attorneys, financial advisors, bankers, other consultants and advisors and, to the
extent permitted above, to bank regulatory authorities. 
  
 7.3
Regulatory Approvals. As soon as practicable after the date of this Agreement, and no later than five (5) Business Days from the date hereof, Purchaser and Seller, shall prepare and file any applications to federal or state regulatory
authorities for approvals necessary, including all Regulatory Approvals, for such party to consummate the transactions contemplated by this Agreement. Purchaser and Seller shall each use its good faith efforts to obtain each such approval, will
cooperate in connection therewith (including the furnishing of any undertaking or commitments which may be required to obtain the Regulatory Approvals to the extent deemed reasonable by the undertaking or committing party) and provide the other with
copies of any applications and all correspondence relating thereto prior to filing, other than material filed in connection therewith under a claim of confidentiality. 
  
 7.4 Delivery of Records at Closing. At or prior to the Closing, Seller will deliver to Purchaser all Records
pertaining to the Assumed Deposits. Purchaser acknowledges that any of the Records provided may not be originals, but may be copies retrieved from Seller’s electronic records system if Seller is unable to provide the originals. 
  
 7.5 Further Assurances. Purchaser and Seller agree to use all
reasonable efforts to satisfy or cause to be satisfied as soon as practicable their respective obligations hereunder and the conditions precedent to the Closing. Each of Seller and Purchaser will 

  

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execute, acknowledge and deliver such instruments and take such other actions as the other party may reasonably require in order to carry out the intent of
this Agreement. On and after the Closing Date, each party will promptly deliver to the other all mail and other communications which are properly addressable or deliverable to the other as a consequence of the transactions pursuant to this
Agreement; and without limitation of the foregoing, on and after the Closing Date, Seller shall promptly forward any mail, communications or other material relating to the Assumed Deposits, to such employees of Purchaser at such addresses as may
from time to time be specified by Purchaser in writing. 
  
 7.6
Notices of Default. Seller and Purchaser shall each promptly give written notice to the other upon becoming aware of any event which causes or constitutes a breach of any of their respective representations, warranties, covenants or
agreements contained in this Agreement. 
  
 ARTICLE 8

  
 TAXES 
  
 8.1 Liability of Seller. Seller shall be liable for and indemnify
Purchaser for all Taxes imposed on such Assumed Deposits or payments in respect thereof for (i) any taxable year or period that ends on or before the Closing Date and (ii), with respect to any taxable year or period beginning before and ending after
the Closing Date, the portion of such taxable year or period ending on and including the Closing Date. 
  
 8.2 Liability of Purchaser. Purchaser shall be liable for and indemnify Seller for all Taxes imposed on Assumed Deposits or payments in respect
thereof for (i) any taxable year or period that begins after the Closing Date and (ii), with respect to any taxable year or period beginning before and ending after the Closing Date, the portion of such taxable year beginning after the Closing Date.

  
 8.3 Proration of Taxes. Except as otherwise agreed to
by the parties, whenever it is necessary to determine the liability for Taxes for a portion of a taxable year or period that begins before and ends after the Closing Date, the determination of the Taxes for the portion of the year or period ending
on, and the portion of the year or period beginning after, the Closing Date shall be determined by assuming that the taxable year or period ended at the close of business on the Closing Date. 
  
 8.4 Payment of Amount Due under Article 8. Any payment by Seller to
Purchaser, or to Seller from Purchaser, under this Article 8 to the extent due at the Closing may be offset against any payment due the other party at the Closing. All subsequent payments under this Article 8 shall be made as soon as practicable.

  

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 ARTICLE 9 
  

CONDITIONS TO CLOSING 
  
 9.1 Conditions to Obligations of Purchaser. Unless waived in writing by Purchaser, the obligation of Purchaser to consummate the transactions
contemplated by this Agreement to be consummated at the Closing is conditioned upon fulfillment, at or before the Closing, of each of the following conditions: 
  

(a) Governmental Consents. All consents, approvals and authorizations required to be obtained prior to the Closing from governmental and
regulatory authorities in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby, including the Regulatory Approvals, shall have been made or obtained, and shall remain in full force
and effect, all waiting periods applicable to the consummation of the transactions contemplated hereby shall have expired or been terminated and all required regulatory filings shall have been made. 
  
 (b) Orders. No court or governmental or regulatory authority of
competent jurisdiction shall have enacted, issued, promulgated, enforced or entered any statute, rule, regulation, judgment, decree, injunction or other order (whether temporary, preliminary or permanent) which is in effect and would result in a
Material Adverse Effect. 
  
 (c) Representations and
Warranties. Each of the representations and warranties of Seller contained in this Agreement shall be true when made and in all material respects as of the Closing Date, with the same effect as though such representations and warranties had been
made on and as of the Closing Date (except that representations and warranties that are made as of a specific date need be true only on and as of such date); each of the covenants and agreements of Seller to be performed on or prior to the Closing
Date shall have been duly performed ; and Purchaser shall have received at the Closing a certificate to the foregoing effect, dated as of the Closing Date and executed by the President or any Vice President of Seller. 
  
 (d) Board Resolutions; Incumbency Certificates. Purchaser shall have
received from Seller certified resolutions or unanimous consents of the Board of Directors of Seller authorizing the execution and delivery of this Agreement, the consummation of the transactions contemplated by this Agreement (the
“Transactions”) and certificates as to incumbency and signatures of officers authorized to execute this Agreement. 
  
 9.2 Conditions to Obligations of Seller. Unless waived in writing by Seller, the obligation of Seller to consummate the transactions contemplated
by this Agreement to be consummated at the Closing, is conditioned upon fulfillment, at or before the Closing, of each of the following conditions: 
  
 (a) Governmental Consents. All consents, approvals, permits and authorizations required to be obtained prior to the Closing from governmental and
regulatory authorities 

  

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in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby, including the Regulatory
Approvals, shall have been made or obtained and shall remain in full force and effect; and all waiting periods applicable to the consummation of the transactions contemplated hereby shall have expired or been terminated and all required regulatory
filings shall have been made. 
  
 (b) Orders. No court or
governmental or regulatory authority of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered any statute, rule, regulation, judgment, decree, injunction or other order (whether temporary, preliminary or permanent)
which is in effect and would result in a Material Adverse Effect. 
  
 (c) Representations and Warranties. Each of the representations and warranties of Purchaser contained in this Agreement shall be true when made and in all material respects as of the Closing Date, with the same effect as though such
representations and warranties had been made on and as of the Closing Date (except that representations and warranties that are made as of a specific date need be true only on and as of such date); each of the covenants and agreements of Purchaser
to be performed on or prior to the Closing Date shall have been duly performed ; and Seller shall have received at the Closing a certificate to the foregoing effect, dated as of the Closing Date and executed by the President or any Vice President of
Purchaser. 
  
 (d) Board Resolutions; Incumbency
Certificates. Seller shall have received from Purchaser certified resolutions or unanimous consents of the Board of Directors of Purchaser authorizing the execution and delivery of this Agreement, the consummation of the Transactions and
certificates as to incumbency and signatures of officers authorized to execute this Agreement. 
  
 ARTICLE 10 
  
 CLOSING
PROCEDURES 
  
 10.1 The Closing. The closing of the
Transactions (the “Closing”) shall be on the date (the “Closing Date”) mutually agreeable to the parties hereto following receipt of all required consents and Regulatory Approvals; provided, however, that
such Closing Date shall be no later than January 15, 2005. The Closing shall be deemed to occur at 10:00 a.m. pacific standard time on the Closing Date. 
  
 10.2. Payments On The Closing Date. At the Closing, Seller shall pay Purchaser the amount set forth on the Statement, less any adjustments pursuant
to the terms of this Agreement. Seller shall make payment to Purchaser on the Closing Date by a wire transfer of immediately available United States dollars no later than 2:00 p.m. pacific standard time, to an account designated in writing by
Purchaser. Purchaser shall provide Seller with wire instructions prior to the Closing Date. 
  

 14 

 10.3 Deliveries by Seller. At the Closing, Seller will deliver to Purchaser: 
  
 (a) Such instruments of assignment as to the Assumed Deposits as shall be
necessary to effect the assignment by Seller of the Assumed Deposits to Purchaser in accordance with the terms hereof; and 
  
 (b) The certificate specified in Section 9.1(c). 
  
 (c) The certificate and resolutions (or consents) set forth in 9.1(d). 
  
 10.4 Deliveries by Purchaser. At the Closing, Purchaser will deliver to Seller: 
  
 (a) Such instruments of assumption as to the Assumed Deposits as shall be
necessary to effect the assumption by Purchaser of such Assumed Deposits in accordance with the terms hereof; and 
  
 (b) The certificate specified in Section 9.2(c). 
  
 (c) The certificate and resolutions (or consents) set forth in 9.2(d). 
  
 ARTICLE 11 
  
 TERMINATION 
  
 11.1 Termination. This Agreement may be terminated at any time prior to the Closing Date: 
  
 (a) By the mutual consent of Purchaser and Seller; 
  
 (b) By Seller or Purchaser, in the event of a material breach by the other of
any representation, warranty or agreement contained herein which is not cured or cannot be cured within fifteen (15) days after written notice of such termination has been delivered to the breaching party; provided, however, that termination
pursuant to this Section 11.1(b) shall not relieve the breaching party of liability for such breach or otherwise; 
  
 (c) By Seller or Purchaser, in the event that the Closing has not occurred by January 15, 2005, unless the failure to so consummate by such time is due to
a breach of this Agreement by the party seeking to terminate; or 
  
 (d) By Seller or Purchaser at any time after the final denial or revocation of any Regulatory Approval. 
  
 11.2 Effect of Termination. In the event of termination of this Agreement and abandonment of the transactions contemplated hereby pursuant to
Section 11.1, no party hereto (or any of its directors, officers, employees, agents or Affiliates) shall have 

  

 15 

 
any further obligation to any other party hereunder, except as provided in Section 7.2(b) and except that nothing herein will relieve any party from
liability for any breach of this Agreement; provided that in no event shall the defaulting party be liable for an amount in excess of the non-defaulting party’s out of pocket expenses. 
  
 ARTICLE 12 
  
 INDEMNIFICATION 
  
 12.1 Indemnification. 
  
 (a) Seller shall indemnify and hold harmless Purchaser and any person
directly or indirectly controlling Purchaser, from and against any and all Losses which Purchaser may suffer, incur or sustain arising out of or attributable to (i) any misrepresentation or any breach of any representation or warranty made by Seller
pursuant to this Agreement, (ii) any breach of any agreement to be performed by Seller pursuant to this Agreement, (iii) any third party claim, penalty asserted, legal action or administrative proceeding based upon any action taken or omitted to be
taken by Seller or resulting from any transaction or event occurring prior to the Closing, relating in any such case to the Business, the Money Desk CDs, or the Assumed Deposits, or (iv) any liability, obligation or duty of Seller relating to the
operation of the businesses of Seller other than the Business. 
  
 (b) Purchaser shall indemnify and hold harmless Seller and any person directly or indirectly controlling Seller, from and against any and all Losses which Seller may suffer, incur or sustain arising out of or attributable to (i) any
misrepresentation or breach of any representation or warranty made by Purchaser pursuant to this Agreement, (ii) any breach of any agreement to be performed by Purchaser pursuant to this Agreement, (iii) any claim, penalty asserted, legal action or
administrative proceeding based upon any action taken or omitted to be taken by Purchaser or resulting from any transaction or event occurring after the Closing, relating in any such case to the Assumed Deposits, or (iv) any liability, obligation or
duty of Purchaser relating to the operation of any businesses of Purchaser. 
  
 (c) To exercise its indemnification rights under this Section 12.1 as the result of an assertion against it of any claim or potential liability for which indemnification is provided, the indemnified party shall
promptly notify the indemnifying party of the assertion of such claim, discovery of any such potential liability or the commencement of any action or proceeding in respect of which indemnity may be sought hereunder. The indemnified party shall
advise the indemnifying party of all facts relating to such assertion within the knowledge of the indemnified party, and shall afford the indemnifying party the opportunity, at the indemnifying party’s sole cost and expense, to defend against
such claims for liability. In any such action or proceeding, the indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at its own expense unless (i) the indemnifying party and the
indemnified party mutually agree to the retention of such counsel or (ii) the named parties 

  

 16 

 
to any such suit, action, or proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party, and in the
reasonable judgment of the indemnified party, representation of the indemnifying party and the indemnified party by the same counsel would be inadvisable due to actual or potential differing or conflicts of interests between them. 
  
 (d) The indemnified party shall have the right to settle or compromise any
claim or liability subject to indemnification under this Section 12.1, and to be indemnified from and against all Losses resulting therefrom, unless the indemnifying party, within sixty (60) days calendar days after receiving written notice of the
claim or liability in accordance with Section 12.1(c) above, notifies the indemnified party that it intends to defend against such claim or liability and undertakes such defense, or, if required in a shorter time than sixty (60) calendar days, the
indemnifying party makes the requisite response to such claim or liability asserted. Settlement of any indemnity claim by an indemnifying party shall be subject to the reasonable approval of the indemnified party to the extent of any non-monetary
aspect. 
  
 ARTICLE 13 
  
 MISCELLANEOUS 
  
 13.1 Survival. The parties’ respective representations and
warranties contained in this Agreement shall survive. 
  
 13.2
Assignment. Neither this Agreement nor any of the rights, interests or obligations of either party hereunder may be assigned by either of the parties hereto without the prior written consent of the other party. 
  
 13.3 Binding Effect. This Agreement and all of the provisions hereof
shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Except as expressly provided in Section 12.1, the parties hereto intend that this Agreement shall not benefit or create any
right or cause of action in or on behalf of any person other than the parties hereto. 
  
 13.6 Notices. All notices, requests, demands, consents and other communications given or required to be given under this Agreement and under the related documents shall be in writing and delivered to the
applicable party at the address indicated below: 
  

			
	 If to Seller:
	  	 Pan American Bank, FSB

	 	  	 3990 Westerly Place, Suite 200

	 	  	 Newport Beach, California 92660

	 	  	 Attention: Garland Koch

	 	  	 Chief Financial Officer

	 	  	 (949) 224-1910 (Facsimile)

  

 17 

			
	 With a Copy To:
	  	 
		
	 	  	 Manatt, Phelps & Phillips, LLP

	 	  	 1001 Page Mill Road, Building 2

	 	  	 Palo Alto, California 94304

	 	  	 Attention: Angelee H. Harris

	 	  	 (650) 213-0260 (Facsimile)

		
	 If to Purchaser:
	  	 Geauga Savings Bank

	 	  	 10800 Kinsman Road

	 	  	 Newbury, Ohio 44065

		
	 	  	 Attention: Jennifer Brickman

	 	  	 Treasurer

	 	  	 (440) 564-9185 (Facsimile)

  
 or, as to each party at such other
address as shall be designated by such party in a written notice to the other party complying as to delivery with the terms of this Section. Any notices shall be in writing, including telegraphic or facsimile communication, and may be sent by
registered or certified mail, return receipt requested, postage prepaid, or by fax, or by overnight delivery service. Notice shall be effective upon actual receipt thereof. 
  
 13.7 Incorporation. All Schedules and Exhibits attached hereto and to which reference is made herein are incorporated
by references as if fully set forth herein. 
  
 13.8 Governing
Law. This Agreement shall be governed by and interpreted in accordance with the laws of state of California applicable to contracts made and entirely to be performed therein. 
  
 13.9 Entire Agreement. This Agreement contains the entire understanding of and all agreements between the parties
hereto with respect to the subject matter hereof and supersedes any prior or contemporaneous agreement or understanding, oral or written, pertaining to any such matters which agreements or understandings shall be of no force or effect for any
purpose; provided, however, that the terms of any confidentiality agreement between the parties hereto previously entered into, to the extent not inconsistent with any provisions of this Agreement, shall continue to apply. This Agreement may
not be amended or supplemented in any manner except by mutual agreement of the parties and as set forth in a writing signed by the parties hereto or their respective successors in interest. 
  
 13.10 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  

 18 

 13.11 Headings. The headings used in this Agreement are inserted for purposes of convenience of
reference only and shall not limit or define the meaning of any provisions of this Agreement. 
  
 13.12 Waiver. The waiver of any breach of any provision under this Agreement by any party shall not be deemed to be a waiver of any preceding or subsequent breach under this Agreement. No such waiver shall be
effective unless in writing. 
  
 13.13 Amendments. This
Agreement may be amended, modified, superseded or canceled, and any of the terms, representations, warranties or covenants hereof may be waived, only by written instrument executed by Seller and Purchaser or, in the case of a waiver, by the party
waiving compliance. 
  
 13.14 Expenses. Unless specifically
provided otherwise in this Agreement, each party shall bear and pay all costs and expenses which it incurs, or which may be incurred on its behalf in connection with the preparation of this Agreement and consummation of the transactions described
herein, and the expenses, fees, and costs necessary for any approvals of the appropriate regulatory authorities. 
  
 13.15 Severability. If any provision of this Agreement or portion thereof is held invalid, illegal, void or unenforceable by reason of any rule of
law, administrative or judicial provision or public policy, such provision shall be ineffective only to the extent invalid, illegal, void or unenforceable, and the remainder of such provision and all other provisions of this Agreement shall
nevertheless remain in full force and effect. 
  
 IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers as of the date first above written. 
  

							
	 Pan American Bank FSB
	 	 Geauga Savings Bank

				
	 By
	 	 /s/ Garland Koch

	 	 By
	 	 /s/ Lloyd V. Clemmer

	 Its
	 	 Chief Financial Officer
	 	 Its
	 	 Chief Financial Officer

  

 19 

 EXHBIIT A 
  

ASSUMED DEPOSITS 
  

 20Severance Pay Plan for Salaried Employees

 Exhibit No. 10.8 
  
 SEVERANCE PAY PLAN FOR SALARIED EMPLOYEES 
  
 OF 
  
 ARMSTRONG WORLD INDUSTRIES, INC. 
  
 The Severance Pay Plan for Salaried Employees of Armstrong World Industries, Inc. (the “Plan”) has been authorized by the Board of Directors of Armstrong World
Industries, Inc. to be effective on and after May 1, 1989. This Plan supersedes, with the exception of the Armstrong Employment Protection Plan, all prior separation pay policies, practices, and plans of the Company whether in writing or otherwise.

  
 1. DEFINITIONS 
  
 1.01 “Affiliate” shall mean any company which is related to the
employing company as a member of a controlled group of corporations in accordance with Section 414(b) of the Code, or as a trade or business under common control in accordance with Section 414(c) of the Code, or any other entity to the extent it is
required to be treated as an Affiliated Company in accordance with Section 414(o) of the Code, or any organization which is part of an affiliated service group in accordance with Section 414(m) of the Code. For purposes under the Plan of determining
whether an individual is an employee and the period of employment of such individual, each company shall be considered an Affiliate only for the period or periods during which such company is a member of the controlled group or under common control.

  
 1.02 “Company” shall mean Armstrong World
Industries, Inc., and any subsidiary or parent corporation of Armstrong World Industries, Inc. that shall have adopted this Plan. 
  
 1.03 “Committee” shall mean the Severance Pay Committee where membership shall include at least three salaried employees of the Company who are
appointed by the President to administer the Plan. 
  
 1.04
“Date of Termination” shall mean the date on which an eligible Participant terminates service pursuant to Subsection 2.02 hereof. 
  
 1.05 “Disability” shall mean such incapacity due to physical or mental illness or injury as causes an Employee to be absent from employment
duties for 180 consecutive calendar days. 
  
 1.06
“Employee” shall mean an individual who is either a Regular Full-Time Salaried Employee or Regular Part-Time Salaried Employee. 
  
 1.07 “Eligible Earnings” shall mean the Employee’s unadjusted annual base salary. 
  
 1.08 “Reasonable Alternative Employment” shall mean an offer of
employment where (i) the base salary is equal to at least 90% of the employee’s current base salary, and (ii) the distance between the employee’s residence or current place of employment and the new place of employment is within 50 miles,
or the distance of the employee’s current commute, whichever is greater. 

 1.09 “Regular Full-Time Employee” shall mean any individual who is employed by the Company on a
salaried basis as an employee on a continuing basis and is expected to work the normal number of work hours for the location as determined by the Company. 
  
 1.10 “Regular Part-Time Employee” shall mean any individual who is employed by the Company on a salaried basis as an employee on a continuing
basis and is expected to work for the Company less than the normal number of work hours. 
  
 1.11 “Weekly Eligible Earnings” shall mean Eligible Earnings divided by 52. 
  
 1.12 “Years of Service” shall mean the eligible Participant’s period of service with the Company, including partial years. A Participant
who is a key executive as designated by the Board of Directors, or its delegate, will receive credit for years of service for employment prior to such Participant’s Company employment. 
  
 2. PARTICIPATION AND ELIGIBILITY 
  
 2.01 Participants. The participants in the Plan are all Regular
Full-Time or Regular Part-Time Employees of the Company. Any employee who was previously employed by the Company and is rehired shall be entitled to credit for any prior period(s) of employment with the Company for the purpose of calculating Years
of Service referenced in Section 1.12 and Section 3.01, in the event that the Employee’s reemployment is terminated under conditions which would otherwise entitle the Employee to benefits under the Plan. Any Employee who was previously employed
by the Company and who terminated employment and received benefits under this Plan and is subsequently reemployed by the Company shall not be entitled to receive credit for any prior period of employment for which benefits have been paid under this
Plan. 
  
 2.02 Eligibility. 
  

	 	(a)	Any Participant who is involuntarily terminated (1) due to a reduction in the workforce of the office on location where he/she is employed; (2) due to the elimination of the
Employee’s position; or (3) any other reason approved in the Committee’s sole discretion, will be eligible for severance benefits, provided the Participant is not otherwise excluded from receiving benefits under Paragraph (b) below.

  

	 	(b)	Any Participant whose employment with the Company is terminated by the Company for any of the reasons listed below shall not be eligible for benefits under the Plan:

  

	 	(1)	because of the death or Disability of the Employee; 

  

	 	(2)	by the Company due to deliberately engaging in gross misconduct which is demonstrably and materially injurious to the Company, monetarily or otherwise, including but not limited to
fraud or embezzlement by the Employee; 

  

 - 2 - 

	 	(3)	by the Employee; 

  

	 	(4)	by the Company in connection with the sale or transfer of a plant, unit, division, or subsidiary of the Company to a successor (whether by reason of a sale of stock or assets), and
the Employee (i) continues employment with the successor organization or (ii) is offered Reasonable Alternative Employment by the successor, regardless of whether the Employee accepts or rejects the employment offer; 

  

	 	(5)	by the Company and the Employee refuses to accept an offer of Reasonable Alternative Employment with the Company or any Affiliate. 

  

	 	(c)	Generally, any Participant whose employment with the Company is terminated by the Company due to unacceptable job performance or for other disciplinary reasons (such as attendance
issues or insubordination) shall not be eligible for benefits under the Plan unless otherwise approved in the Committee’s sole discretion. 

  
 2.03 Effect of Participant’s Eligibility to Retire. No eligible Participant will be denied severance benefits solely because such Participant
is also eligible for retirement benefits under another plan of the Company. 
  
 2.04 Reservation of Rights. The Company reserves the right for the Committee to depart from the schedule listed in the Appendix where the eligible Participant’s attendance, job performance, or other
job-related conduct appears to the Company to justify an upward or downward adjustment in benefits. However, in no event shall the maximum benefit payable under the Plan exceed twice such Participant’s annual compensation, as defined in 29
C.F.R. Section 2510.3-2(b)(2); nor shall the maximum payment period exceed 24 months after the termination of the Participant’s employment. 
  
 2.05 Classification of Employees to Whom the Plan Does Not Relate. The severance policies and procedures contained in this Plan do not apply to
employees classified by the Company as temporary or hourly-paid employees. 
  
 3. BENEFITS 
  
 3.01 Amount
and Schedule of Benefit Payments. The Company will provide severance pay and benefits, as described in paragraphs (a) through (e) below, to a Participant eligible for benefits under this Plan. 
  

	 	(a)	Accrued Salary. Any accrued salary not yet paid to the Participant for services performed prior to the Date of Termination shall be paid in compliance with state law, but not
later than 20 calendar days following the Date of Termination. 

  

 - 3 - 

	 	(b)	Vacation Pay. The Participant will be reimbursed for vacation pay to the Date of Termination in accordance with Company policy. 

  

	 	(c)	Severance Pay. The Participant shall be paid a severance amount related to the Participant’s Years of Service and Eligible Earnings. The amount of severance payment
shall be calculated using the schedule in the Appendix. Weeks of severance for partial years of service will be calculated proportionately. 

  

	 	(d)	Mode of Payment. After the eligible Participant has satisfied all conditions precedent to receive severance benefits, such benefits will be paid to the Participant in a lump
sum within 30 days of termination, unless the Plan administrator approves payment by salary continuation or some combination of periodic and lump sum payments. Participants who are notified in writing of their eligibility for severance benefits
under the Plan on or after March 1, 2005 will receive a lump sum payment of such benefit within 30 days of termination, provided that the eligible Participant has satisfied all conditions precedent to receive severance benefits.

  

	 	(e)	Insurance Benefits. An eligible Participant’s insurance benefits shall be determined in accordance with the applicable insurance benefit plan. 

 
 3.02 Other Circumstances that Can Result in Disqualification,
Forfeiture, Reduction or Suspension of Severance Benefits. 
  

	 	(a)	Elective Deductions. An eligible Participant may elect to have insurance premiums for Company-sponsored insurance plans deducted from severance payments.

  

	 	(b)	Legally Required Deductions. Appropriate federal, state and local taxes will be withheld from all severance payments. 

  

	 	(c)	Effect of Rehire or Reinstatement (Or an Offer of Same). If an eligible Participant is granted severance benefits and the Participant is either rehired or reinstated as a
regular salaried employee on a regular full-time basis by the Company (or is offered rehire or reinstatement on a full-time basis by the Company) before the end of the pay continuation period, then the Participant forfeits any unpaid severance
payments for the periods following rehire or reinstatement (or the date of offer of same). In addition, to the extent the number of weeks of severance paid to the Participant exceeds the length of the Participant’s break in service, the
Participant will be required to refund or reimburse the Company for the excess severance already paid to the Participant. 

  

	 	(d)	Effect of Sale of Portion of Business Assets. Any Participant whose employment with the Company is terminated during or in anticipation of a sale of some, but not all, assets
of the Company is not entitled to severance benefits if the purchaser of such assets offers Reasonable Alternative Employment to the Participant, and such offer of employment is made by the purchaser within no later than eight (8) weeks after the
termination of the Participant’s employment by the Company. Any severance paid to the Participant shall be repaid to the Company. 

  

 - 4 - 

	 	(e)	Effect of Participant Misconduct. Any Participant who accepts severance benefits is obligated to reimburse the Company for the full amount of such payments if the Participant
subsequently discloses any of the Company’s trade secrets, violates any written covenants between the Participant and the Company, or otherwise engages in conduct that may adversely affect the Company’s reputation or business relations.
Likewise, a Participant who engages in such conduct shall forfeit any right to any unpaid severance payments. 

  

	 	(f)	Effect of Employee Solicitation. Any participant who accepts severance benefits is obligated to reimburse the Company for the full amount of such payments if during the
two-year period following the Participant’s Date of Termination, the Participant subsequently acts to approach, canvas, solicit or otherwise endeavor to entice away any employee of the Company or any Affiliate. Likewise, a Participant who
engages in such conduct shall forfeit any right to any unpaid severance payments. 

  

	 	(g)	Effect of Adverse Economic Conditions. The Company may permanently suspend benefits under severance allowances in pay status (1) in the event of the Company’s
insolvency, liquidation, or bankruptcy reorganization or (2) in the event the cost of providing such benefits would lead to the Company’s insolvency, liquidation, or bankruptcy reorganization. 

  

	 	(h)	Effect of Other Severance Pay Laws. Any severance benefits provided by the Company under this Plan shall be reduced dollar-for-dollar by any severance, separation, or any
other termination pay benefit that the Company or any Affiliate is required to pay to an eligible Participant under any federal or state law. 

  

	 	(i)	Effect of Catastrophes and Other Extraordinary Events. Severance payments will not be made if the Participant’s employment is terminated because of fire, flood,
explosion, bombing, earthquake or other disaster causing damage to the location facilities or when strikes, work stoppages or civil disturbances prevent continued operations. 

  

	 	(j)	Effect of Temporary Layoffs. Severance payments will not be made if a layoff is deemed to be temporary and of limited duration, e.g., a need for inventory reduction in a
production facility or activities closely aligned with it. During such periods, Participants are encouraged to take any available vacation to which they may be entitled. 

  

	 	(k)	 Non-Compete Agreement. The Participant who has been involuntarily terminated may be required to execute a Non-Compete Agreement when the Committee determines
that such an Agreement is required to protect the Company. Any Participant who is asked to execute a Non-Compete Agreement will receive additional severance in an amount not less than One Thousand Dollars ($1,000) as consideration for the
Non-Compete Agreement. 

  

 - 5 - 

	 	 
The Non-Compete Agreement must be signed and returned to the Company within 60 days after the Participant’s termination date in order for the
Participant to receive any benefits under this Plan. 

  
 3.03 Condition Precedent to Severance Payments. For the Employee who becomes eligible for severance payments under the Plan, severance payments will not be paid under any circumstances until the eligible Participant executes a
Company approved release of the Participant’s then existing rights and claims against the Company. The release must be signed and returned to the Company within 30 days after the Participant’s Date of Termination in order for the
Participant to receive benefits under this Plan. 
  
 3.04
Impact of Armstrong Employment Protection Plan. Notwithstanding anything to the contrary in this Plan, in the event the Participant’s Date of Termination coincides with or follows a change in control, as defined in the Armstrong
Employment Protection Plan, no benefits will be paid under this Plan. This Plan applies only in the case of an eligible Participant whose employment has been terminated by the Company prior to the change in control and who is otherwise eligible to
receive a benefit hereunder. 
  
 4. AMENDMENT OR
TERMINATION. 
  
 The Board of Directors of the Company may by
written resolution terminate or amend this Plan at any time, provided that no amendment or termination of the Plan may adversely affect the amount, type, or timing of payment of benefits due and payable hereunder with respect to Participants whose
employment has been terminated, except as provided in Section 3.02 of this Plan. Notwithstanding the foregoing, the Board of Directors has delegated the authority to amend the Plan to the Retirement Committee; provided, however, that the Board of
Directors reserves the right to rescind or modify such delegation at any time and for any reason and retains the right to amend the Plan itself at any time. 
  
 5. ADMINISTRATION 
  
 5.01 Responsibility for administration of the Plan shall be vested in the Committee, which shall have the sole and exclusive discretionary authority to
determine conclusively all questions arising in connection with the administration, interpretation and application of the Plan, either by general rules or by particular decisions, including (but not limited to) questions regarding eligibility for
benefits hereunder and the amount, form and timing of payments thereof, and any other matter (including any question of fact) raised by a claimant or identified by the Committee. Any such determination by the Committee shall be binding and
conclusive upon all persons. The Committee may correct any defect, supply any information, or reconcile any inconsistency in such manner and to such extent as shall be deemed necessary or advisable by it to carry out the purpose of this Plan. The
Committee may delegate administrative tasks as necessary to persons who are not Committee members. 
  
 5.02 All expenses of administering the Plan shall be borne by the Company. No member of the Committee shall receive any remuneration for service in such
capacity. However, expenses of the Committee or its members paid or incurred in connection with administering the Plan shall be reimbursed by the Company. 
  

 - 6 - 

 5.03 The Company may purchase insurance to cover potential liability of the Plan’s fiduciaries. The
Plan may purchase insurance for its fiduciaries and/or for itself to cover liability and losses occurring by reason of the act or omission of a fiduciary. 
  
 5.04 The Plan is unfunded and all severance payments under the Plan shall be made from the general assets of the Company. 
  
 6. SUCCESSORS; BINDING AGREEMENT 
  
 6.01 In the event of a sale or transfer of a plant, unit, division, or
subsidiary of the Company to a successor (whether by reason of a sale of stock or assets) by means of which any Employee continues employment with the successor organization or is offered employment with the successor organization, the Company shall
not be obliged to negotiate with the successor organization over whether to establish any severance pay plan, policy, or practice with respect to such Employees or whether to cover such Employees under any existing severance pay plan, policy, or
practice already maintained by the successor organization. 
  
 6.02 All rights of an eligible Employee hereunder shall inure to the benefit of and be enforceable by such Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.
If an eligible Employee should die after having satisfied all conditions precedent to the receipt of such benefits, but prior to receiving all amounts of benefits payable hereunder, all such amounts, unless otherwise provided herein, shall be paid
in a lump sum in accordance with the terms of this Plan to the Employee’s devisee, legatee, or other designee or, if there be no such designee, to the Employee’s estate. 
  
 7. ARBITRATION. 
  

Any dispute or controversy arising under or in connection with this Plan shall be settled exclusively by arbitration in Lancaster County, Pennsylvania,
in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. 
  
 8. MISCELLANEOUS 
  

8.01 No amount payable under the Plan shall be subject to assignment, transfer, sale, pledge, encumbrance, alienation or change by an eligible Employee
or the beneficiary of such Employee except as may be required by law. 
  
 8.02 Neither the Plan nor any action taken hereunder shall be construed either (1) as giving any individual employed by the Company any right to receive severance benefits of a type or in any amount similar to the benefits described in
Section 3.01 above, unless the individual qualifies for benefits under this Plan; or (2) as giving any Employee any right to be retained in the employ of the Company. 
  

 - 7 - 

 8.03 Payments of benefits under this Plan shall be made in lieu of payments of any severance benefits of
a type similar to the benefits described in Section 3.01 above that may be offered under any written or unwritten severance pay policy maintained by the Company and there shall be no duplication of benefits previously paid under any such policy.

  
 8.04 This Plan shall be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania except to the extent preempted by the Employee Retirement Income Security Act or any other federal law. 
  
 8.05 The invalidity or unenforceability of any provision of this Plan shall not affect the validity or enforceability of any
other provision of this Plan, which shall remain in full force and effect. 
  
 8.06 Any notice or other communication provided for in this Plan shall be in writing and, unless otherwise expressly stated herein, shall be deemed to have been duly given if mailed by United States registered mail,
return receipt requested, postage prepaid addressed in the case of an Employee to the Employee’s office at the Company with a copy to the Employee’s residence and in the case of the Company to its principal executive offices, attention of
the Severance Plan Administrator. 
  
 As Amended Through March 15, 2005

  

 - 8 - 

 The APPENDIX 
 Severance Pay Schedule 
 Effective July 1, 2001 
  

			
	 Years of Service

	 	 Number of Weeks

	 1 or less
	 	2.0
	 2
	 	2.0
	 3
	 	3.0
	 4
	 	4.0
	 5
	 	5.0
	 6
	 	6.0
	 7
	 	7.0
	 8
	 	8.0
	 9
	 	9.0
	 10
	 	10.0
	 11
	 	11.0
	 12
	 	12.0
	 13
	 	13.0
	 14
	 	14.0
	 15
	 	16.0
	 16
	 	18.0
	 17
	 	20.0
	 18
	 	22.0
	 19
	 	24.0
	 20
	 	26.0
	 21
	 	28.0
	 22
	 	30.0
	 23
	 	32.0
	 24
	 	34.0
	 25
	 	36.0
	 26
	 	38.0
	 27 or more
	 	39.0

  
  

 SEVERANCE PAYMENT RELEASE AND 
 COVENANT TO NOT SUE 
  
 ARMSTRONG ADVISES YOU TO CONSULT AN ATTORNEY 
  
 In exchange for the severance pay and benefits which you will receive, you (and anyone acting on your behalf) agree to give up every past or present right or claim of any kind that is related to your employment with Armstrong World
Industries, Inc., Armstrong Wood Products, Inc., or any other entity related to Armstrong World Industries, Inc. (“Armstrong” or the “Company”) and the Company’s termination of your employment. You agree to give up such
rights and claims against the Company, as well as anyone related to the Company, such as the Company’s parents, subsidiaries, employees, officers, directors and agents (“Released Parties”), and agree not to file a lawsuit or initiate
any proceedings related to such rights and claims against any of them. 
  
 These
rights and claims include, but are not limited to, those which could arise under Title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act (ADEA), or any other federal, state, or local law, statute or
regulation; claims based upon any express or implied contract; or claims for wrongful or retaliatory discharge; or for any tort, contractual or any other common-law claim. You also acknowledge and agree that the Released Parties have no obligation
to hire or re-hire you; and you specifically agree and acknowledge that you will not seek to be hired or rehired by any of these entities, and in the event you do, the Released Parties may refuse to consider you. 
  
 In addition, you agree never to sue any Released Party in any forum for any claim covered by
the above waiver and release language, except that you may bring a claim under the ADEA to challenge this Agreement. If you violate this Agreement by suing any Released Party, other than under the ADEA, you shall be liable to the Released Party for
its reasonable attorneys’ fees and other litigation costs incurred in defending against such a suit. Alternatively, and to the extent permitted by law, in the event you sue any Released Party (other than under the ADEA), you may, at the
Released Party’s option, be required to return all monies and other benefits paid to you pursuant to this Agreement. 
  
 However, you do maintain the right to (1) receive the severance benefits under the terms of this Release, (2) receive your vested retirement or pension benefits under the
terms of any Armstrong pension plan for which you are eligible, (3) receive benefits or exercise rights under the terms of any other plan or program that may be available to you and for which you qualify, including the right to pursue any claims
review procedures or other rights provided by the terms of these plans, and (4) elect health care coverage under the federal continuation of health coverage law known as “COBRA” or under any applicable state law concerning continuation of
health coverage. 
  
 You agree that during the two year period following your
termination date, you will not directly or indirectly, on behalf of yourself or on behalf of any other person, firm, partnership, corporation, association or other entity, (1) call upon any of the customers or clients of the Company (or potential
customers or clients of the Company whose business you solicited on behalf of the Company or whose needs you gained information about during his employment) for the purpose of soliciting to provide or providing any products or services similar to
those provided by the Company; and/or (2) solicit, contact or induce any person to leave the employ of the Company. 

 You also agree that you have had time to review and consider this information, that you have received information about
the various benefits to which you are entitled and that you have read and understood this information. Accordingly, it will be appreciated if you would sign a copy of this Release indicating your understanding of, concurrence and voluntary agreement
with the plan outlined above. This Release must be signed and returned to the Company within 30 days after your termination date in order for you to receive the severance payment. If you fail to sign and return the Release within 30 days after your
termination date, you will forfeit the severance payment. 
  
 You further
acknowledge and agree that: 
  

	 	1.	The severance benefits provided pursuant to this Release constitute consideration for this Release, in that these are benefits to which you would not have been entitled had you not
signed this Release. 

  

	 	2.	You have been given a period of at least twenty-one (21) days within which to consider this Release and review any documents. 

  

	 	3.	This Release does not waive any claims that you may have which arise after the date you sign this Release. 

  

	 	4.	This Release is not effective or enforceable for seven (7) days after you sign it and you may revoke it during that time by sending a written revocation to the human resources
representative for your department. 

  
 I sign this form as my own
free act and deed, and I hereby release any rights and claims as set forth above in exchange for the severance payment and benefits I am receiving. 
  

					
	  

	 	 	  	  

	Signature of Employee	 	 	  	Date
			
	  

	 	 	  	 
	Please print name	 	 	  	 

  
  

 Non-Compete Agreement 
  
 THIS AGREEMENT, made this     day of
            , 20    , by and between
                                 (hereinafter called “Employee”) and
Armstrong World Industries, Inc., a Pennsylvania corporation (hereinafter called “Company”). 
  
 WHEREAS, Employee has been involuntarily terminated and is conditionally entitled to receive certain severance benefits from the Company including
severance pay; 
  
 AND WHEREAS, the Employee has had access to
confidential, proprietary information and trade secrets and has agreed to enter into this Non-Compete Agreement in consideration of receipt of severance pay and other severance benefits. 
  
 NOW, THEREFORE, in consideration of the Company providing the Employee with severance pay and other severance benefits, and
intending to be legally bound hereby, the Company and the Employee agree as follows: 
  
 1. The Company agrees to provide Employee with severance pay and other severance benefits under various plans of the Company. 
  
 2. Employee agrees that for a period of two years from the date of this Agreement that Employee will not, without the Company’s prior written
consent, directly or indirectly, own an interest in, manage, operate, join, control, lend money or render financial or other assistance to or participate in or be connected with, as an officer, employee, partner, stockholder, consultant, or
otherwise, any individual, partnership, firm, corporation or other business organization or entity that, at such time, is engaged in the businesses now conducted by the Company, or its subsidiaries, anywhere within the geographical territory of the
United States of America. The foregoing notwithstanding, Employee may make such investments that are permitted under Armstrong’s CORPORATE REFERENCE GUIDE covering Conflicts of Interest and Outside Work By Employees. 

 3. Without intending to limit the remedies available to the Company, Employee acknowledges that a breach
of any covenant contained in this Agreement may result in material, irreparable damage to the Company for which there is no adequate remedy at law, that it will not be possible to measure damages for such breach of this Agreement. In the event of
such breach, the Company shall be entitled to obtain a temporary restraining order and/or preliminary or permanent injunction restraining the Employee from engaging in activities prohibited by this Agreement and in addition to any other damages to
which the Company may be entitled, the Employee will reimburse the Company for the full amount of severance pay already paid to such Employee and the Employee will forfeit any right to any unpaid severance payments. 
  
 4. The Employee agrees and consents that injunctive relief may be sought
ex parte in any state or federal court of record in the Commonwealth of Pennsylvania, or in any state and county in which such violation may occur, or in any other court having jurisdiction at the election of the Company. The Employee
agrees to and hereby submits to in personam jurisdiction before each and every such court for that purpose. 
  
 5. This Agreement shall be governed and construed in accordance with the laws of the Commonwealth of Pennsylvania. 
  
 IN WITNESS WHEREOF, the parties have entered into this Agreement effective as
of the date first above written. 
  

	
	 EMPLOYEE:

	
	  

	  
 COMPANY:

	  
 Armstrong World Industries,
Inc.

	  
 BY:

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